Part XV – PUBLIC FUNDS

197Criteria for the establishment of a county public fund

(1) The establishment of a county public Fund shall at the minimum meet the following requirements—

• (a) be initiated through a proposal by the County Executive Committee Member responsible for the county government entity under which the functions of the Fund fall, clearly setting out the justifications and submit it to the County Executive Committee Member;
• (b) the County Executive Committee Member responsible for the county government entity shall certify in writing that the functions and the public services to be delivered through the Fund cannot be delivered through the structure of budget appropriations;
• (c) provide a clear justification as to why a Fund structure is deemed appropriate for improved service delivery in light of the legislative and policy mandate of the county government entity;
• (d) the administration costs of the Fund shall be a maximum of three (3%) percent of the approved budgets of the Fund;
• (e) the County Executive Committee Member responsible for the county government entity functions shall confirm in writing that the establishment of the Fund and its continued existence will not depend on annual financing from the county exchequer;
• (f) a Fund that has a lifespan of less than two years shall not be approved unless it is for unforeseen and urgent need;
• (g) the County Executive Committee Member shall grant approval in writing before establishment of the Fund;
• (h) the County Executive Committee Member responsible for the entity shall demonstrate how the activities of the proposed County Public Fund will fit in the overall Medium Term Plan and County Fiscal Strategy Paper; and
• (i) the initial approval for establishment of a county public Fund shall be for a maximum period of ten (10) years, beyond which the County Executive Committee and County Assembly approvals shall be sought.

(2) Despite the provisions of paragraph (1) of this regulation, the County Executive Committee Member may from time to time issue further guidelines on the establishment of county public Funds.

198Management and winding up of a county public fund

The County Executive Committee Member shall provide for the management, operation and winding up procedure in the guidelines for establishing each Fund which shall be in accordance with the Act and these Regulations.

199Winding up of a county public Fund

(1) Where the lifespan of a Fund lapses, the process of winding up shall commence within six (6) months from the date of the lapse.

(2) The final report after winding up the Fund shall be submitted to the Auditor-General for audit and the County Assembly.

(3) A county public Fund may also be dissolved if the County Executive Committee Member responsible for a department operating a county public Fund considers that the county public Fund has successfully completed the specific objective for which it was created.