Paper PFM23

Public Sector Financial Management

The aim of this subject is to provide the learner with the knowledge and skills required to manage finances in the public sector. The learner will be equipped with skills to enable him/her to manage public debts, undertake public sector investment and report on the performance of public enterprises.

On completion, a candidate should be able to

Explain the principles of public financial management and the importance of the PFM Act.
Describe the legal and institutional framework of public financial management.
Explain the public financial management cycle.
Describe the role of accounting officers in the management of public funds.
Explain the role of fiscal and monetary policies in public financial management.
Describe different theories of taxation and the role of the National Treasury and the Kenya Revenue Authority in the management of the tax system.
Describe how public debts are managed in both the national and county governments.
Describe the purpose of public sector investment and how public enterprise management is done.
Explain different public financial management reforms in Kenya. Certified Public Finance Manager (CPFM) - July 2024

Content

1
Introduction to public finance management in Kenya
Explain the principles of public financial management and the importance of the PFM Act
1. 1.1
  The scope and
  1. bjectives of public finance
2. 1.2
  Principles of public financial management
3. 1.3
  Relevance of the Public Finance Management (PFM) Act in the management of public finances
4. 1.4
  Review PFM Act as an important tool to implement public policies
5. 1.5
  Challenges affecting implementation of the PFM Act
2
Legal and institutional framework in steering public financial management
Describe the legal and institutional framework of public financial management
1. 2.1
  The Constitution
  1. f Kenya 2010, (Chapter 12)
2. 2.2
  The PFM Act 2012
3. 2.3
  The PFM Act 2012, Regulations 2015 for both national and county governments
4. 2.4
  The establishment, role and powers of the National Treasury in the management of public finances
5. 2.5
  The role of the Office of Controller
  1. f Budget (CoB) in the management of public finances
3
The public financial management cycle
Explain the public financial management cycle
1. 3.1
  Overview of the public financial management cycle
2. 3.2
  The role played by professional accountants, internal auditors, finance officers and procurement officers
3. 3.3
  The role of members of public and other stakeholders in the management of public finances
4
The role of accounting officers in the management of public funds
Describe the role of accounting officers in the management of public funds
1. 4.1
  Establishment of public funds
2. 4.2
  Financing and
  1. perationalisation of public funds
3. 4.3
  Review of selected public funds including the Contingency Fund, Equalisation Fund among others
4. 4.4
  Winding up procedures for public funds in Kenya
5
Fiscal and monetary policies
Explain the role of fiscal and monetary policies in public financial management
1. 5.1
  Introduction to fiscal and monetary policies
2. 5.2
  Fiscal policies and their application in the Kenyan economy
3. 5.3
  Monetary policies and their application in the Kenyan economy
4. 5.4
  The role played by the Central Bank
  1. f Kenya in the management of monetary policies
5. 5.5
  Other players in the management of fiscal and monetary policies
6. 5.6
  Sources of public finance in Kenya
6
Taxation in Kenya
Describe different theories of taxation and the role of the National Treasury and the Kenya Revenue Authority in the management of the tax system
1. 6.1
  Introduction to taxation and taxation theories and taxation systems
2. 6.2
  Returns
  1. f income for individuals, companies and partnerships
3. 6.3
  The role of the National Treasury and Kenya Revenue Authority in the management of the tax system
4. 6.4
  Overview of the Integrated Tax System, its
  1. perations and infrastructure.
7
Management of public debts in both national and county governments
Describe how public debts are managed in both the national and county governments
1. 7.1
  Definition
  1. f public debt, methods of raising funds through debt instruments
2. 7.2
  Comparative analysis of domestic and foreign debts
3. 7.3
  Establishment and functions of the Public Debt Office
4. 7.4
  The role of the National Treasury and Parliament in the management of the public debt
5. 7.5
  Debt management in the county governments
6. 7.6
  Global best practices in the management of public debts
7. 7.7
  Key stakeholders and their roles in public debt management
8. 7.8
  Power of national government to lend money
9. 7.9
  Management of guarantees
8
Public sector investment and enterprise management
Describe the purpose of public sector investment and how public enterprise management is done
1. 8.1
  Establishment and dissolution of state corporations
2. 8.2
  Procedure for public investment
3. 8.3
  Monitoring performance of and reporting for public investments
9
Public financial management reforms in Kenya
Explain different public financial management reforms in Kenya
1. 9.1
  Establishment, management and roles of the Public Financial Management Reform (PFMR) secretariat
2. 9.2
  Public financial management reforms in Kenya
3. 9.3
  Management of donor funds
4. 9.4
  Resource mobilisation strategies by the PFMR
5. 9.5
  Public financial management reforms in East Africa