CPA Advanced Level

Advanced Public Financial Management flashcards

Read the question, say the answer to yourself, then turn the card to check. The first 10 of 60 cards are free; the rest come with the subject.

Card 1 of 60

Jump to a card

Complete Flashcard Reference

Review every card in this deck. Open any card to reveal its answer. The first 10 are free; the other 50 come with the subject.

What are the four principles of public finance in Article 201 of the Constitution?

1. Openness and accountability, including public participation in financial matters. 2. Equitable sharing of the burden and benefits of resource use and public borrowing between present and future generations. 3. Prudent and responsible use of public money. 4. Clear fiscal reporting.

Under the Public Procurement and Asset Disposal Act, 2015, how long is the standstill after notification of intention to enter into a contract, and how long does a bidder have to seek review?

Standstill: fourteen days from the date of notification (section 87). Review: within fourteen days of notification (sections 167 to 175), heard by the Public Procurement Administrative Review Board.

How does the Contingency Fund differ from the Equalisation Fund in purpose?

Contingency Fund: urgent, unforeseen national expenditure that cannot wait for the ordinary appropriation process. An emergency purpose. Equalisation Fund: basic services for marginalised areas, to bring them up to the national average standard. A development purpose.

Against what anchor is Kenya's public debt now measured, and which law introduced it?

Fifty-five per cent of GDP in present value terms. Introduced by the Public Finance Management (Amendment) Act, 2023, replacing the earlier fixed KES 10 trillion nominal ceiling.

A state corporation is incorporated as a company. Which Act governs it: the Companies Act or the State Corporations Act?

Both, at the same time. Companies Act: its corporate form, directors' duties and standard corporate reporting. State Corporations Act (Cap 446): its public mandate, government-directed governance and ministerial oversight.

To whom does public sector internal audit report, and why the split?

Functionally to the audit committee, so its findings stay independent of the management whose activities it reviews. Administratively to the Accounting Officer, for resourcing.

Under Article 229, what is the Auditor-General's term, and what are the two deadlines for audit reports?

Term: a single term of eight years, appointed with the approval of the National Assembly. Audit: every public entity within six months of the end of its financial year. Consideration: Parliament or the county assembly must consider the report within three months (Article 229(8)).

What are Consolidated Fund Services, and why do they need no annual appropriation?

Payments the Constitution or an Act charges directly on the Consolidated Fund: chiefly public debt service (interest and principal) and the salaries and pensions of constitutional office holders. They are kept out of the annual appropriation so that political pressure in budget negotiations cannot disrupt obligations that must be met.

What are the three classes of county revenue?

Equitable share: the county's constitutionally mandated share of nationally raised revenue. Own-source revenue: raised locally, such as property rates, business permits and county fees and charges. Grants: conditional and unconditional transfers from the national government or development partners.

What limits do Articles 222 and 223 set on a vote on account and a supplementary budget?

Vote on account (Article 222): at most half of the estimates of expenditure for that year tabled in the National Assembly. Tabled estimates of KES 1,200,000,000 allow KES 600,000,000. Supplementary budget (Article 223): at most ten per cent of the approved budget. A budget of KES 1,500,000,000 allows KES 150,000,000.

What are the six stages of the PFM cycle, in order?