CPFM Module I

Budgeting, Revenue and Cash Management flashcards

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Complete Flashcard Reference

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What are the five stages of the public sector budget cycle, in order?

1. Preparation, guided by the Budget Policy Statement and the MTEF. 2. Approval by the National Assembly or County Assembly. 3. Execution, spending in line with the approved allocations. 4. Monitoring and reporting during the year. 5. Evaluation and audit after the year closes, whose findings feed the next year's preparation.

How does the National Treasury's budget role differ from the Controller of Budget's?

National Treasury: prepares and coordinates the budget, issuing the Budget Policy Statement and MTEF, consolidating estimates and submitting the budget for approval. Controller of Budget: an independent constitutional office (Article 228) that oversees implementation and authorises withdrawals from public funds only when satisfied they are lawful.

What is a vote on account, and what is its ceiling? Work it for tabled estimates of KES 2,600 billion.

Under Article 222, a vote on account authorises limited interim spending where the budget is not approved by the start of the financial year, so essential functions continue. It may not exceed half of the estimates of expenditure for that year tabled in the National Assembly. 2,600 x 50% = KES 1,300 billion.

By what date must the County Fiscal Strategy Paper reach the county assembly?

By 28 February (section 117 of the PFM Act). Compare the national Budget Policy Statement, which goes to Parliament by 15 February.

What is a Receiver of Revenue?

An officer formally designated as responsible for collecting a specific stream of public revenue on behalf of government, with clear accountability for it. It is a formal role, not anyone who handles cash: informal or undocumented collection is a control failure.

How does the Commission on Revenue Allocation's role differ from the Office of the Controller of Budget's?

CRA: an independent constitutional commission that recommends how nationally raised revenue is shared between national and county governments, and among counties. OCOB: oversees the implementation of county budgets and authorises withdrawals from county public funds once the money is received.

What is the Treasury Single Account, and what problem does it solve?

It consolidates government's cash into one unified structure, giving the National Treasury visibility and control over total government cash. It solves fragmentation: cash sitting idle across many separate bank accounts, with weaker oversight and higher fraud risk.

How does a standing imprest differ from a temporary (special) imprest?

Standing imprest: a recurring float held by a designated officer for routine small expenses, replenished periodically as it is used. Temporary imprest: issued for one specific purpose or trip, and fully accounted for and surrendered shortly after.

What are Consolidated Fund Services, and what do they cover?

Statutory, non-discretionary payments charged directly on the Consolidated Fund, distinct from the discretionary spending ministries budget for. They cover public debt interest and principal, salaries and allowances of certain constitutional office holders, pensions and gratuities charged to the Fund, and other mandated payments.

How does a recurrent budget differ from a development budget?

Recurrent: day-to-day operating costs such as salaries, supplies and maintenance. Development: capital expenditure such as infrastructure and other long-term investment, for example a new hospital building.

What does the Public Finance Management Act, 2012 govern?