- The regulations stipulates that the controller of budget has exclusive mandate to authorise withdrawal of all public funds.
- They include the Consolidated Fund and its components, Equalization Fund, a County Revenue Fund and its components; or any other public fund.
Image: BY MATHEWS NDANYI
National and County government entities that exceed budget ceilings in their expenditures now risk being denied funds by the National Treasury in new regulations.
The Controller of Budget Regulations, 2021 gazetted by COB Margaret Nyakang’o last Friday provides tough requirements for the entities requisitioning for funds.
The regulations gazetted last Friday stipulates procedures for and requirement to be fulfilled by the Treasury and county treasuries seeking CoB’s approval to withdraw funds.
The document stipulates the CoB’s power to monitor, evaluate and report to Parliament, a county assembly, the national and county Treasury on budget implementation of the entities.
According to the new rules, national and county government bodies that ignore set expenditure limits shall risk being starved of funds.
“Where a national government entity or county government entity fails to comply with the budgetary ceilings, the CoB may decline to approve a request for withdrawal of funds giving reasons thereof,” the regulations reads in part.
“Or make a recommendation to the National Treasury for stoppage of funds,” the document adds.
In her quarterly and annual budget implementation review reports, Nyakang’o has often indicted several entities for ignoring the expenditures.
County assemblies, for instance, have been indicted for splurging huge amounts of taxpayers’ money on travel, hospitality and sitting allowances.
County executives and the national government have also been on the spot for using far much beyond the set 35 per cent of their revenues on personnel emolument.
The regulations apply to Parliament, Judiciary, county assemblies, the national treasury, county treasuries, National and County government entities commissions and independent offices, state officers and accounting officers.
The regulations stipulates that the controller of budget has exclusive mandate to authorise withdrawal of all public funds.
They include the Consolidated Fund and its components, Equalisation Fund, a County Revenue Fund and its components; or any other public fund.
It states that the approval for withdrawal of funds issued by the Controller of Budget shall be valid for seven days.
“Upon expiry, the National Treasury or a County Treasury shall resubmit the requisition for approval of withdrawal of funds in accordance with these regulations,” it reads in part.
According the rules, a request from the Treasury for withdrawal for development expenditure for a national government entity shall be made in a requisition form accompanied by several supporting documentations.
They include a schedule of development expenditure in line with the request and up to date project implementation status report, whether ongoing or stalled projects, relating to the request.
The form shall be accompanied by up to date schedule of pending bills and payment plan and bank statement reflecting the settled pending bills in apparent effort to compel the entities to clear pending bills before engaging in new commitments.
They will provide a bank statement of development operational account and an extract of the budget estimates approved by the National Assembly or a county assembly.
For recurrent expenditure, the form shall be accompanied by a summary of the monthly payroll report from an integrated personnel and payroll database.
For payment of salaries, a schedule and analysis of salaries for staff to be paid outside an integrated personnel and payroll database and the reasons thereof.
This is meant to eradicate the scenario where unscrupulous officer pay salaries to ghost workers.
The regulations also provide tough requirements to the Treasury in the requisition for funds to pay public debt.
In case of domestic debt, the requisition shall be supported by a schedule stating redemption amount, interest, bank charges and any other fees and expenses relating to the borrowing.
The CBK cash call ups, an up to date schedule of repayments and analysis of debt level in relation with set ceilings as provided for in section 15 of the PFM Act, 2012 shall be provided.
A monthly overdraft schedule for the overdraft facility shall also be attached.
For external debt, shall be supported by a loan agreement stipulating the terms and conditions a schedule of the loan agreement stating principal payment, and interest, bank charges, commitment fee, penalties, if any, and any other fees and expenses relating to the loan.
There shall also be an up-to-date schedule of repayments, analysis of debt level in relation with set ceilings as provided in Section 15 of the PFM Act, 2012.
Also required is a legal opinion from the Office of the Attorney General and demand note or invoice for settlement of the principal.
The CoB may conduct investigations on his or her own motion or upon a complaint made by a member of the public on any matter on implementation of the budgets of the national, it states.
-Edited by SKanyara