17Corporate governance
(1) Every county government entity to which the Act and these Regulations apply shall include in their annual financial report as provided in section 164 of the Act, a statement by each entity's Accounting Officer on compliance of the entity with these Regulations under this part
(2) Where the entity is not fully compliant with these Regulations, the Accounting Officer of that entity shall identify the reasons for non-compliance and indicate the steps being taken to become compliant.
(3) The statements made in the report under this regulation shall be submitted to the County Executive Committee Member.
18Establishment of Public Finance Management Standing Committee
(1) There is established in every county government entity a public finance management standing committee to provide strategic guidance to the entity on public finance management matters.
(2) Each standing committee shall comprise of the following—
- (a) the Accounting Officer as chairperson of the committee;
- (b) an officer designated by the accounting officer as secretary of the committee and who shall be either the head of the finance or accounts units or head of both finance and accounts units of the entity; and
- (c) heads of departments or administrative units dealing with public finance management matters.
(3) The Standing Committee shall meet as often as is necessary, but at least once every quarter so as to coordinate management of public finance for entities and shall be accountable to the County Executive Committee Member responsible for the entity or in case of County Assembly, to the Speaker.
(4) The Standing Committee may establish sub-committees for the better carrying out of its roles and responsibilities under this regulation.
19Roles and responsibilities of the standing committee
(1) The Standing Committee shall generally be responsible for the following—
- (a) ensuring that there is prioritization on resources allocated to a county government entity for the smooth implementation of the entities mission, strategy, goals, risk policy plans and objectives;
- (b) regularly review, monitor budget implementation and advice on the entities accounts, major capital expenditures and review performance and strategies at least on a quarterly basis;
- (c) identifying risks and implementation of appropriate measures to manage such risks or anticipated changes impacting on the entity;
- (d) review on a regular basis the adequacy and integrity of the entity's internal control, acquisition and divestitures and management information systems including compliance with applicable laws, Regulations, Rules and guidelines;
- (e) establish and implement a system that provides necessary information to the stakeholders including stakeholder communication policy for the entity in line with Article 35 of the Constitution;
- (f) monitor the effectiveness of the corporate governance practices under which the entity operates and propose revisions as may be required from time to time;
- (g) monitoring timely resolution of audit issues; and
- (h) any other matter referred to it from time to time by the responsible County Executive Committee Member or in the case of County Assembly, the Speaker.
(2) The Standing Committee shall submit a quarterly report of its work including any recommendations to the responsible County Executive Committee Member or in case of County Assembly, to the Speaker.
20Governor’s Warrants
(1) Once the Annual County Appropriation Bill or County Supplementary Bill(s) have been assented to, the County Executive Committee Member shall obtain Governor's warrants authorizing issues from the County Revenue Fund in accordance with the respective County Appropriation legislation.
(2) The Governor's warrants in paragraph (1) shall then be transmitted to the Controller of Budget by the County Executive Committee Member to authorize withdrawals in accordance with Article 228 of the Constitution.
21County Treasury warrant
On receipt of the Governor's warrants, the County Executive Committee Member shall issue a County Treasury warrant granting authority to Accounting Officers to incur expenditure for the year in respect of their votes.
22Responsibilities of Accounting Officers
(1) Accounting Officers shall in accordance with Article of 226(2) of the Constitution and section 149 (1) of the Act, be accountable to the County Assembly—
- (a) for ensuring the most effective means of achieving desired program outcomes are used;
- (b) for maintaining effective systems of internal Control and the measures taken to ensure that they are effective; and
- (c) for measures taken to prepare the financial reports that reflect a true and fair financial position of the entity.
(2) In addition to the responsibilities of Accounting Officers provided in the Act, an Accounting Officer designated under the Act or any other Act, shall—
- (a) comply with any tax, levy, duty, pension, commitments and audit commitments as may be provided for by legislation;
- (b) if he or she reasonably believes that an unauthorized, or irregular expenditure has occurred, he or she shall immediately report, in writing, particulars of the expenditure to the relevant authority with a copy to the County Treasury; or
- (c) before transferring any funds to an entity within or outside the county government, ensure that there is a written assurance from the entity that that entity implements effective, efficient and transparent financial management and internal control systems, or, if such written assurance is not or cannot be given, render the transfer of the funds subject to conditions and remedial measures requiring the entity to establish and implement effective, efficient and transparent financial management and internal control systems;
- (d) enforce compliance with any prescribed conditions if the county government entity gives financial assistance to any other county government entity or person in accordance with the law;
- (e) take into account all relevant financial considerations, including issues of propriety, regularity and value for money, when policy proposals affecting the Accounting Officer's responsibilities are considered, and when necessary, bring those considerations to the attention of the relevant authority;
- (f) promptly consult and seek the prior views of the County Treasury on economic viability and financial implications on any new county government entity which a county department intends to establish or in the establishment of which it took the initiative;
- (g) not commit county government entity to any liability for which money has not been appropriated provided that expenditure for projects or programs implemented beyond one financial year is provided for in the subsequent financial years; and
- (h) comply, and ensure compliance by county government entities with the provisions of the Act and these Regulations.
23Delegation by the Accounting Officer
(1) The Accounting Officer of a county government entity may delegate to a public officer, in writing, any of the Accounting Officer's powers or functions under the Act or these Regulations.
(2) In exercising powers and functions under a delegation, the public officer shall comply with any lawful directions of the Accounting Officer.
(3) The delegation in this regulation may include the authority to incur expenditure in accordance with any limits prescribed by the Accounting Officer.
(4) Delegation of power does not take away the responsibility of the accountability from the Accounting Officer.
24Designation of Authority to Incur Expenditure by the Accounting Officer
(1) An accounting officer may authorize a public officer Designation of under their county government entity to be an Authority to Incur Authority to Incur Expenses (AIE) Holder.
(2) An accounting officer who finds it necessary to authorize a public officer in another county government entity or a national government entity to incur official expenditure on his or her behalf, should do so by issuing an Authority to Incur Expenditure addressed to the Accounting Officer of the county government entity or national government entity.
(3) The designation of AIE Holder shall be in writing in the form prescribed by the National Treasury.
(4) An accounting officer shall maintain a register of all AIE Holders designated under this Act.
(5) Where an accounting officer delegates this authority, the accounting officer shall remain responsible for any expenditure incurred as a result of that delegation.