County Budget Implementation Review Report

Office of the Controller of Budget; Office of the Controller of Budget

dc.contributor.author	Office of the Controller of Budget
dc.contributor.author	Office of the Controller of Budget
dc.date.accessioned	2021-09-10T10:47:24Z
dc.date.available	2021-09-10T10:47:24Z
dc.date.issued	2014-11
dc.identifier.uri	http://192.168.150.44/handle/123456789/558
dc.description	The adoption of a new Constitution in 2010 heralded hope by Kenyans for equitable development across the country. This new Constitution embraced devolved governance structure and created forty seven county governments with the objective of bringing services and development closer to the people. In order to ensure that citizens get services from the devolved govemments, the Constitution established several oversight institutions. One of these institutions is the Office of the Controller of Budget (OCOB) that was established under Article 228. Its mandate is to oversee and report on implementation of the budgets of the national and county governments. Specifically, Articles 228 (6) requires the Controller of Budget (COB) to submit to each House of Parliament a report on the implementation of the budgets of the national and county governments every four months This is the sixth report in a series of quarterly budget implementation review reports since the establishment of county governments. The report covers the period, July to September, 2014 and is prepared in accordance with Article 228(6) of the Constitution. The report presents revenue and expenditure performance of each of the forty seven county governments during the period under review. It is largely based on analysis of expenditure reports from Counties and data generated from the Integrated Financial Management System (IFMIS). It is also informed by continuous monitoring of exchequer issues and reviews, and, trends from prior reporting periods. While this report provides the status of budget implementation by county govemments, it also provides an assessment on the implementation of the recommendations made by OCOB to address the challenges that faced budget implementation in FY 2013/14. The production of this report has been made possible because of the hard work and dedication of OCOB and county government staff and other stakeholders. I take this opportunity to acknowledge and appreciate all those who have contributed to the production of this report, particularly, the County Budget Coordinators and the Fiscal Analysts who spent several hours analysing financial reports from the forty seven county governments. This budget implementation review report is one of the tools the OCOB uses to disseminate information to the Public on budget implementation as stipulated under Section 39(8) of the PFMA. We expect that the information contained in this report will not only be useful to the Legislature, but also the Executive, stakeholders and the public at large in enhancing awareness on the status of budget implementation and in advancing effective management of public resources.	en_US
dc.description.abstract	This is the sixth report by the Office of the Controller of Budget (OCOB) in a series of quarterly County Governments Budget Implementation Review Reports (CBIRR) and the first CBIRR for the Financial Year 2014115. It covers the period July to September 2014. The report presents key highlights and the status of county budget implementation. It analyses revenue by counties and expenditure against budgeted estimates. During the first quarter of FY 2014/15, the aggregate annual budget estimates for the 47 County Governments amounted to Kshs.311.05 billion, comprising of Kshs.l76.49 billion (57 per cent) as recurrent expenditure allocation and Kshs.134.56 billion (43 per cent) as development expenditure allocation. This combined budget was to be financed by Kshs.226.66 billion as the national equitable share of revenue, Kshs.l5.l7 billion as conditional grant from the National Government, and Kshs.63.07 billion from local revenue sources. The Counties also budgeted for Kshs.27.42being unspent balances brought forward from the FY 20t3114. The Conditional grant of Kshs.15.77 billion includes Kshs.733.65 million from Danish International Development Agency (DANIDA), to the Health Sector. During the first quarter of FY 2014/15, the total revenue available to the Counties amounted to Kshs.84.0 billion comprising of Kshs.37.88 billion from the National Government, Kshs.6.25 billion as local revenue, and Kshs.39.25 billion as balance brought forward from the FY 2013/14. The Kshs.37.88 billion from the National Government consisted of Kshs.28.52 billion advanced by the National Treasury and Kshs.9.06 billion which was transferred from the Consolidated Fund to various County Revenue Funds. The Controller of Budget approved transfer of Kshs.62.89 billion from the County Revenue Funds to the various county operational accounts during the period. These funds consisted of Kshs.41.76 billion (66 per cent of total releases) for recurrent expenditure and Kshs.21.13 billion (34 per cent of total releases) for development expenditure. During this period, total expenditure by counties was Kshs.44.24 billion, consisting of Kshs.33.83 billion (74 per cent) for recurrent activities and Kshs.11.41 billion (26 per cent) for development activities. The expenditure for the period under review was 70.4 per cent of the funds released and translates to an absorption rate of 14.2 per cent of the annual county budgets. Recurrent expenditure during the period was 78.6 per cent of the funds released representing an absorption rate of 18.6 per cent of the annual recurrent budget, while development expenditure was 54.0 per cent of the funds released and translating to an absorption rate of 8.5 per cent of the annual development budget. Homa Bay County registered the highest absorption of the annual budget at 26.8 per cent within the first quarter of the year followed by Mandera County at 23 per cent, and Bomet County at 20.5 per cent. The counties that recorded the least absoqption of their annual budget during the period were Kisumu, Mombasa and Turkanaat4.33 per cent, 7 .7 per cent and 7.4 per cent respectively. It was also noted that three counties, namely; Nairobi City, Homa Bay, and Mandera reported higher expenditure than the funds released by the OCOB at 135.6 per cent, 132.3 per cent, and 101.2 per cent respectively due to spending of local revenue at source. County Governments faced various budget implementation challenges during the first quarter of FY 2014115. These included: delayed disbursement of funds by the National Treasury non-adoption of the Integrated Financial Management Information System (IFMIS) by some County Assemblies, lack of effective internal audit arrangements, and, lapses in financial controls by some County Treasuries. The OCOB recommends that County Assemblies should fast track the adoption of IFMIS and G-PAY systems to enhance efficiency and control of financial transactions. In addition, there is need for all counties to establish effective internal audit functions. This recommendation that has been highlighted in previous reports should therefore, be prioritized. Further, the National Treasury should ensure timely disbursement of funds to the county governments for effective budget implementation.	en_US
dc.description.sponsorship	Mrs. Agnes N. Odhiambo	en_US
dc.language.iso	en_US	en_US
dc.subject	Controller of Budget	en_US
dc.subject	County Budget Implementation Review	en_US
dc.subject	Mrs. Agnes N. Odhiambo	en_US
dc.title	County Budget Implementation Review Report	en_US
dc.title.alternative	First Quarter FY 2014/2015	en_US
dc.type	Technical Report	en_US