Kenya Kajiado County 2018

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Aggregate expenditure outturn was below 85% of the approved aggregate budgeted expenditure in all of the last three years

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Variance in expenditure composition by administrative/functional classification was more than 15% in at least two of the last three years.

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Variance in expenditure composition by economic classification was more than 15% in at least two of the last three years

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Actual expenditure charged to a contingency vote was on average less than 3% of the original budget (0.7% on average).

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Actual revenue was below 85% of budgeted revenue in two of the last three years.

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AFSs do not present the breakdown of the local revenue, and hence the composition variance could not be calculated

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Budget formulation, execution, and reporting are based on administrative and economic classification that can produce consistent documentation comparable with GFS standards (at level 2 of the GFS standard for the economic classification).

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Two basic elements and one additional element fulfil the PEFA criteria requirements.

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Data required for scoring the component was not available.

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Data required for scoring the component was not available.

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The financial reports of the extra-budgetary units were not available.

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Not applicable at the level of subnational government.

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Not applicable at the level of subnational government.

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Performance plans are published in Annual Development Plans (ADPs), detailed for all ministries by program objectives, key performance indicators, and outputs.

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The county government has not established a unit to conduct performance evaluation.

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Information on resources received by frontline service delivery units is collected and recorded in the budget implementation review reports, but the source of funds is not included, and no survey has been carried out in one of the last three years.

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Evaluation of the efficiency or effectiveness of the service delivery units has not been carried out for the last three fiscal years.

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Public access to fiscal information does not fulfil any basic element and fulfils only one additional element.

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The county is yet to constitute any public corporations.

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Kajiado County does not have further devolved units.

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Contingent liabilities and other fiscal risks have not been specified in the budget but have been outlined in the CBROP and the CFSP.

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No rigorous economic analyses techniques are employed for major investment projects beyond the public participation.

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The Budget and Planning Unit is responsible for project selection but the selection criteria is not documented. Most of the practices and rules have not been formalized and evidence showing the major investment projects selected by the cabinet before their inclusion in the budget was not provided.

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Projections of the total capital cost of major investment projects, together with the capital costs for the forthcoming budget year, are included in the budget documents.

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The total cost and physical progress of major investment projects are monitored by a team, which has been constituted by the county. But no information on implementation of major investment projects has been provided.

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The government maintains a record of its holdings in major categories of financial assets, which are included into the report of the OAG published online. However, information on assets and liabilities is contained in the bank reconciliation statement is not complete, especially those relating to the defunct local authorities.

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The government maintains a register of its holdings of fixed assets, which is not complete and information on their usage and age is generally not available.

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Procedures and rules for the transfer or disposal of nonfinancial assets are not established yet. The county has not disposed of any assets except cash and cash equivalent. The county has not set up any rule related to transfers of assets for the defunct authorities.

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Though the counties are not authorized to incur debt, there was a pre-existing debt inherited from OlKejuado County Council. This debt has been serviced and records are maintained annually but no reconciliation is performed.

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Primary legislation grants authorization to borrow and issue new debt, but documented policies and procedures have not been established yet.

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A current medium-term DMS has been established but is not publicly available yet. The DMS establishes an allocation for debt servicing, but no evidence has been provided yet.

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The county only provides a situational analysis of key macroeconomic indicators (growth, inflation, exchange rate, interest rates) at the national level in the CSFP.

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The county only provides a situational analysis of key macroeconomic indicators (growth, inflation, exchange rate, interest rates) at the national level in the CSFP.

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The county does not do any scenario building and sensitivity analysis.

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The county does not prepare estimates of the fiscal impact of all proposed changes in revenue and expenditure, except for a few cases.

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The government has adopted, submitted to the legislature, and published a fiscal strategy. But this strategy does not include explicit time-based quantitative fiscal goals and targets together with qualitative objectives for at least the budget year and the following two FYs.

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The government prepares an internal report on the progress made against its fiscal strategy. Such a report has been prepared for at least the last completed FY. However, an explanation of the reasons for any deviation from the objectives and targets set is not provided in the CBROP.

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The county government prepares medium-term expenditure estimates by administrative, economic, and functional classification, which are presented in both budget estimates and the CSFP

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The expenditure ceilings (in the CSFP and budget estimates) are approved after issuance of the budget circular.

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The county has only prepared strategic plans for education, health, and agriculture. The strategic plans are not aligned with the budget estimates. Budget estimates are mainly guided by the ADP, which is based on the CIDP.

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There is no consistency in medium-term estimates for the different MTEF periods and the budget documents do not provide an explanation for the changes.

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A clear annual budget calendar exists, is generally adhered to, and allows budgetary units at least four weeks from receipt of the budget circular to meaningfully complete their detailed estimates on time.

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A comprehensive budget circular is issued to budgetary units, covering total budget expenditure for the full FY. The budget circular does not include ministry ceilings. The approval of ceilings by the cabinet are approved only before sending the budget to the County Assembly.

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The Executive has submitted the annual budget proposal to the legislature at least two months before the start of the FY in each of the last three years.

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The Executive has submitted the annual budget proposal to the legislature at least two months before the start of the FY in each of the last three years.

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The procedures for budget scrutiny include specialized review committees, technical support, and negotiation procedures and arrangements for public consultation.

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The budget estimates for 2014/15, 2015/16 and 2016/17 were discussed, adopted, and approved by the County Assembly on 30thJune of each of the respective years

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The rules and guidelines enabling budget adjustments through the supplementary budget (including reallocations) are found in the PFM Act and are adhered to in most instances. Extensive administrative reallocations may be permitted, and the total amount of expenditure can be exceeded by 10% of the total amount of the budget.

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Entities collecting revenues provide payers with access to information on the main revenue obligation areas but not on redress processes and procedures, while the mechanism is in place. The County Revenue Administration Act presents only the procedure for reduction of taxes, fees, and charges

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The county does not have a risk assessment framework in place for assessing and prioritizing risks.

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Entities collecting the majority of government revenue undertake audits and fraud investigations. The majority of planned audits and investigations have been completed. However, no evidence that a compliance improvement plan was used has been provided

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No record of revenue arrears is kept. The only list of arrears provided is for property rates, cumulatively from July 2014 to April 2017. One cannot ascertain the age of the arrears.

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No record of revenue arrears is kept. The only list of arrears provided is for property rates, cumulatively from July 2014 to April 2017. One cannot ascertain the age of the arrears.

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The revenue collectors deposit the revenue collection accounts held at the KCB weekly.

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There is no complete reconciliation of assessments, collections, arrears, and transfers.

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Cash balances are consolidated on a yearly basis.

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The county prepares cash flow forecast for the fiscal year, which is broken down by month but is not updated.

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Budgetary units are provided reliable information on commitment ceilings at least a quarter in advance.

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Significant in-year adjustments to budget allocations take place no more than twice a year and are done in a transparent and predictable way.

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Yearly pending bills are mentioned in the AFS, but the stock of arrears is not established.

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The county government does not maintain a register of individual creditors or ledgers. In addition, the county government did not have an analysis of the pending bills or any other records indicating the existence of the pending bills.

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Reconciliation of the payroll with personnel records takes place only annually. Staff hiring and promotion is checked against the approved budget before authorization.

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Required changes to the personnel records and payroll are updated at least monthly, generally in time for the following month’s payments. Retroactive adjustments are rare. Data shows corrections of slightly more than 3% of salary payments.

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Sufficient controls exist to ensure integrity of 75% of payroll. However, 25% staff are paid through the manual system; hence, authority to change records and payroll is not restricted.

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Sufficient controls exist to ensure integrity of 75% of payroll. However, 25% staff are paid through the manual system; hence, authority to change records and payroll is not restricted.

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Database or records are maintained for contracts, including data on what has been procured, value of procurement, and who has been awarded contracts. However, the database is not connected to the IFMIS; hence, the accuracy of procurement methods for goods, services, and works could not be verified.

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The total value of contracts awarded through competitive methods in the last completed FY represents less than 60% of the total value of contracts.

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At least three of the key procurement information elements are complete and are made available to the public.

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The procurement complaint system meets all the criteria.

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Segregation of duties is prescribed throughout the expenditure process. Responsibilities are clearly laid down for most key steps while further details may be needed in a few areas.

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Expenditure commitment control procedures exist, which provide partial coverage and are partially effective.

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All payments should be made according to regular procedures through the IFMIS, but the data enabling scoring of the component was not provided

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Internal audit is operational for the County Executive and the County Assembly, which are central government entities collecting all budgeted government revenue and expenditure.

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Audits were conducted, but no quality assurance process showing that internal audit activities are focused on evaluations of the adequacy and effectiveness of internal controls was disclosed.

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Annual audit programs are performed annually and most programmed audits have been completed in FY2015/16.

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Management provides a partial response to audit recommendations within 12 months of the audit report being produced for three entities audited

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Bank reconciliation takes place at least monthly, however, bank reconciliation regarding extra budgetary units was not provided.

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Suspense accounts are reconciled and cleared monthly but evidences have not been provided

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The county prepares imprest reconciliation monthly. However, some items are not cleared on time. Imprest account reconciliations have not been provided.

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IFMIS is used for recording and processing budget data originating from the national government. An examination unit ensures data integrity by pre-audit of payments before they are passed into the system. But no audit trail is available for local resources.

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Budget reports are prepared quarterly. This report has its own format but budget items are easily comparable to the initial budget.

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Budget execution reports are prepared quarterly and within one month from the end of that quarter

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There may be concerns regarding data accuracy, which are not highlighted in the report. Data is consistent and useful for analysis of budget execution, but no analysis of the budget execution is provided on at least a half-yearly basis. Expenditure is captured at the payment stage.

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Financial reports for budgetary county government are prepared annually. They include information on revenue, expenditures, and cash balances. They are comparable with the approved budget.

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The AFS were presented for external audit on September 30 2016, but were complete only by June 8, 2017, which was within 12 months after the end of the year.

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The county prepares financial statements as per the cash basis but some drawbacks are raised by the report of the Auditor General and gaps are not explained in reports.

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The OAG is using ISSAIs on all external audits of national and county governments, but public establishments are not regularly audited.

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Audit report of AFS 2015/16 was submitted to the legislature within three months from receipt of the financial reports.

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Audited MDAs provide a formal response to audit findings, but it is not necessarily comprehensive and timely. A progress report on the issues raised during FY2014/15 is put in annex of the audit report for FY2015/16.

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The SAI operates independently from the executive with respect to procedures for the appointment and removal of the Head of the SAI, the planning of audit engagements, arrangements for publicizing reports, and the approval and execution of the SAI’s budget. This independence is assured by law. The SAI has unrestricted and timely access to records, documentation, and information.

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Scrutiny of audit reports is completed within 12 months in most instances. However, this could not be verified due to lack of supporting documentation.

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In-depth hearings on key findings of audit reports should take place occasionally, but only the external audit for the year 2013/14 has been fully completed and discussed and no evidence of hearings was provided.

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The assembly has a process for monitoring implementation of audit recommendations. However, no record of recommendations by the legislatures for actions to be taken up by the Executive was provided

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Committee reports have not been provided.

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Transfers have been at least 95 per cent of the original budget estimate in two of the last three years.

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The difference between the original budget estimate and actual transfers and grants was less than 5 percent or less in two of the last three years. The score for this component is B.

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Quarterly transfers should be released quarterly, but the effective dates were not provided and important delays were reported in CFSP and in the press.