KASNEB Advanced Public Financial Management - Question 1b

Explain THREE circumstances under which money may be withdrawn from the Consolidated Fund only. ... [Click to view full question and step-by-step solution]

December 2024

1a

Management of Consolidated Fund Services and Exchequer Accounts

The National Treasury shall include various information in the financial statements of contingencies fund submitted to the Auditor General under section 23 of Public Finance Management Act.

Highlight FIVE types of information contained in the financial statements in respect to the Contingencies Fund.

1b

Management of Consolidated Fund Services and Exchequer Accounts

Explain THREE circumstances under which money may be withdrawn from the Consolidated Fund only.

1c

Internal Auditing in the Public sector

The existence of an independent Audit Committee is recognised internationally as an important feature of good corporate governance.

Required:

(i) In the context of Public Finance Management Act, define the term “audit committee”.

(ii) Assess FIVE roles of audit committees in the management of public funds.

2a

Management of Consolidated Fund Services and Exchequer Accounts

The Public Finance Management (PFM) Act empowers the Cabinet Secretary for National Treasury to establish a national government public fund with the approval of the national assembly and appoint an administrator to manage the funds.

Required:

(i) Explain TWO responsibilities of an administrator of a public fund.

(ii) Describe the procedure of winding up a public fund by the Cabinet Secretary for the National Treasury.

2b

Public sector Budgeting and Planning The role of Accounting officer in management of Public Funds

(i) Examine FOUR responsibilities of accounting officers of a government department in preparing annual estimates of expenditure in the budget preparation process as per the Public Finance Management Act.

(ii) Assess FOUR factors that must be considered in the determination of budget ceilings contained in the Budget Policy Statement.

3a

Management of Revenues in County Governments

Majority of county governments have been experiencing difficulties in meeting their revenue targets and sustaining their operations. Despite efforts to improve their revenue collection, these counties continue to face significant challenges that hinder their financial sustainability and service delivery.

Required:

(i) Identify FIVE challenges experienced by the counties in attaining financial sustainability and service delivery objectives.

(ii) Examine FIVE ways in which automation and computerisation of county revenues collection could be used to address the challenges identified in (a) (i) above.

3b

Management of Public Debts in both National and County Governments

As per the Public Finance Management Act 2012, the Cabinet Secretary should submit to Parliament a record of all guarantees given by the national government not later than seven days after receiving a request to do so from either House of Parliament. In addition, as per as per section 58 (1) and (2), the Cabinet Secretary may guarantee a loan to a county government or any other borrower on behalf of the national government and that loan should be approved by Parliament.

Required:

(i) Explain FOUR matters which the Cabinet Secretary must include in the report submitted to parliament in respect of every guarantee to the county government.

(ii) Examine SIX circumstances under which the Cabinet Secretary of finance should not guarantee a loan as per the above provisions.

4a

Public sector Budgeting and Planning

Discuss FIVE roles of parliamentary budget office as provided for in section 10 of Public Finance Management Act, 2012.

4b

Public sector procurement

Persons involved in public procurement and asset disposal proceedings shall subscribe to ethical standards in accordance with the public procurement and asset disposal law and other relevant legislation.

With reference to the above statement, examine FIVE roles of the government in ensuring professionalism and ethical practices in public procurement and asset disposal processes.

5a

Public Sector Investment and enterprise management

Evaluate THREE strategies that the National Treasury could implement to enhance the performance and governance of public enterprises in Kenya.

5b

Public Financial Management Reforms in Kenya

Describe THREE key reforms implemented in the recent years by the Kenyan government to enhance public financial management.

5c

The role of Accounting officer in management of Public Funds

An accounting officer is responsible to the National Treasury to ensure that the resources of the ministry, department, agency or commissions are used in a way that is lawful and authorised effective, efficient economical and transparent.

In relation to the above statement, explain FOUR roles of an accounting officer.

December 2024

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