PFM Quiz & FAQs

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?

  1. Provide means of  administering  the powers vested  in  the Cabinet  Secretary  for  the  National  Treasury
  2. Harmonize  and  standardize   application of the Constitution, PFM Act 2012 and other Laws throughout government  service  in  controlling  and  managing  Public finances
  3. Set  out  a  standardized  financial management  system  capable  of  producing accurate  and  reliable  accounts  free  from  errors &  fraud
  4. All the Above

What does the PFM Act 2015 Regulations require on overall compliance with the regulations?

  1. 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.
  2. 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.
  3. 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.
  4. 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?

  1. Raising of revenue and making of expenditures
  2. Banking arrangements, including opening of bank accounts and investment of moneys
  3. Establishment and dissolution of private and state corporations
  4. Establishment and management of public funds
  5. None of the above

What of the following comprise the minimum details contained in the AIE issued to a public officer  

  1. The AIE number and to whom it is issued
  2. The authorized total expenditure
  3. The account code to which the expenditure is to be debited
  4. A description of the expenditure item
  5. 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?

  1. Temporary or Safari Imprest
  2. Standing Imprest
  3. Special Imprest
  4. Permanent Imprest