Advanced Public Financial Management cheat sheet

Introduction to public financial management

• Public financial management covers the full cycle of raising, allocating, spending and accounting for public resources, governed by Chapter Twelve of the Constitution.
• Article 201 sets four principles of public finance: openness and accountability with public participation, equitable sharing of the burden and benefits, prudent and responsible use of public money, and clear fiscal reporting.
• The Public Finance Management Act, 2012 gives Chapter Twelve effect for both national and county government, turning its principles into budget processes, reporting duties and institutional roles.
• The Act's budget process turns the priorities in development plans into funded programmes, which makes it a policy implementation tool, not merely an accounting framework.
• The PFM cycle runs from planning to budgeting, budget execution and revenue collection, accounting and reporting, audit and oversight, and evaluation, which feeds back into the next planning cycle.