Integrated, Simplified, Improved
What constitutes the design of the PFM Legal Framework?
The PFM Legal Framework is firmly anchored in Article 201 of the constitution and gives effect to ‘The Principles of public finance’ and in particular, the principles cover:
- Openness, accountability, and public participation in PFM;
- Equitable sharing of revenues;
- Equitable sharing of burdens and benefits of public borrowing;
- Fiscal discipline is observed
What key areas does the PFM Act prevail in case of any inconsistency with other legislation(s)-(PFMA 6)
- Preparation and submission of budget estimates; including the time for doing so;
- Preparation and submission of accounts for audit, including the time for doing so;
- Banking arrangements, including opening of bank accounts and investment of moneys;
- Raising of revenue and making of expenditures;
- Borrowing, lending and loan guarantees;
- Establishment and managment of public funds
- Establishment and dissolution of state corporations
What is the objective of the PFM Act 2012? (PFMA 3)
- Ensure that Public finances are managed at both the national and the county levels of government in accordance with the principles set out in the Constitution
- Ensure that Public Officers who are given responsibility for managing the finances are accountable to the public for the management of those finances through Parliament and County Assemblies.
What is the main aim of the PFM Regulations 2015? (PFMR 4)
- Provide means of administering the powers vested in the Cabinet Secretary (CS) for the National Treasury under the Constitution, the Act and any other related legislation;
- Harmonize and standardize their application throughout government service in controlling & managing the finances;
- Set out a standardized financial management system for use in government service, capable of producing accurate & reliable accounts free from errors, fraud & which will be useful in management decisions and statutory reporting.
- Provide for the conduct of fiscal relations between the national and county governments;
- Ensure accountability, transparency and the effective, economic and efficient collection and utilization of public resources
What are the main functions/duties of the Audit Committee? (PFMR 175)
- Support the Accounting Officers with regard to their responsibilities for issues of risk, control and governance and associated assurance but the responsibility over the management of risk, control and governance processes remains with the management of the concerned entity;
- Follow up on the implementation of the recommendations of internal and external auditors.
Test Your Knowledge Now!
What is the Objective of the PFM Act 2015 Regulations?
- Provide means of administering the powers vested in the Cabinet Secretary for the National Treasury
- Harmonize and standardize application of the Constitution, PFM Act 2012 and other Laws throughout government service in controlling and managing Public finances
- Set out a standardized financial management system capable of producing accurate and reliable accounts free from errors & fraud
- All the Above
What does the PFM Act 2015 Regulations require on overall compliance with the regulations?
- All Accounting Officers shall ensure that all public officers under their Control have access to copies of the Regulations and the public officers shall ensure they are fully conversant with the contents of the Regulations.
- All Cabinet Secretaries shall ensure that all public officers under their Control have access to copies of the Regulations and the public officers shall ensure they are fully conversant with the contents of the Regulations.
- The National Assembly shall ensure that all public officers have access to copies of the Regulations and the public officers shall ensure they are fully conversant with the contents of the Regulations.
- None of the above
There are areas where the PFM Act 2012 prevails in case of any inconsistency between it and other legislations. Which of the following is not an area where the PFM Act prevails in case of inconsistency with the other legislations?
- Raising of revenue and making of expenditures
- Banking arrangements, including opening of bank accounts and investment of moneys
- Establishment and dissolution of private and state corporations
- Establishment and management of public funds
- None of the above
What of the following comprise the minimum details contained in the AIE issued to a public officer
- The AIE number and to whom it is issued
- The authorized total expenditure
- The account code to which the expenditure is to be debited
- A description of the expenditure item
- All of the above
Imprests are issued for a specific purpose as stipulated in the PFM Regulations 2015. Which of the following is not among the three classes of imprests?
- Temporary or Safari Imprest
- Standing Imprest
- Special Imprest
- Permanent Imprest