Assessment of Budget and Accountability Requirements in Ministry of Finance
This article provides an overview of the budget guidelines, formulae, and accountability requirements in the Ministry of Finance, Planning, and Development. It discusses the rationale behind linking transfers to performance, appointment of accounting officers, and release of grants. The accountability requirements for local government grants, including timeliness of budget submissions and supporting documents needed, are also detailed.
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Assessment of Budget And Accountability Requirements Budget Guidelines, Formulae and the Online Transfer Information System, Budget Requirements Ministry of Finance, Planning and Development
Overview 1. Rationale 2. Assessment if Accountability and Budget Requirements 3. Overview of Accountability Requirements 4. Appointment of Accounting Officers and Signing of Performance Contracts 2
Rationale - Linking Transfers to Performance Appointment of Acc. Officers & release of grants linked to: Provide incentives for: Budgets Linked to National & Local Priorities + Stronger Accountability Adherence to Core Budget and Accountability requirements Which deliver: The size of the DDEG & sector development grants linked to: Improved service delivery outcomes Functionality of X-cutting & Sector LG Processes & Systems Stronger LG Management of Service Delivery and Development Projects The size of transfers to schools and health facilities linked to: Service Provider Results Better Results in Schools and Health Facilities
Assessment of Accountability and Budget Requirements In order for the LG to receive grants, it must adhere to core budget requirements in the budget for the forthcoming year and accountability requirements for the previous 12 months Requirements are basic safeguards for the proper use of local government budgetary resources for the delivery of services in line with national policy priorities and local needs You have heard about the sectoral budget requirements from the sectors. The accountability requirements are set out here. The accountability requirements in italics will come into force for 2016/17, the rest will be assessed for 2015/16 4
Accountability Requirements Area Summary of Requirements 1. Timeliness of Budget Submissions 1.2 A draft budget submitted by the 15th March 1.3 A final performance contract submitted by the 15th June on the basis of the approved budget. 2. Supporting Documents for the Budget required to the PFMA are submitted and available 2.3 Budget Submission incudes the cash flow projections of the vote 2.4 Budget submissions include a Vehicle Utilization Report 2.5 Budget submissions include the Asset Register of the vote 1.1 A LGBFP submitted by the 15th November 2.1 Budget Submission includes a Procurement Plan for the forthcoming FY. 2.2 Budget Submission includes an annual Recruitment Plan for the budget year 5
Accountability Requirements Area Summary of Requirements 3. Timeliness of Reporting submitted 3.2 The annual accounts for the previous FY were submitted on time on or before 31st August 3.3 The last four quarterly performance reports report due have been submitted. 1.4 The annual performance report for the previous FY was submitted on or before 31st July. 3.5 The first quarter s budget performance report for the previous FY was submitted on or before the 31st October 3.6 The second quarter s budget performance report for the previous FY was submitted on or before the 31st January 3.7 The third quarter s budget performance report for the previous FY was submitted on or before the 31st April 3.1 The annual accounts for the previous financial year have been 6
Accountability Requirements Area Summary of Requirements 4. Procurement Information Available 4.2 New Information has been posted on the tender portal for the vote in the current calendar year. 4.3 The information posted on the portal in the current calendar year includes updated status of tenders, either as the best evaluated bidders or signed contracts. 5. Arrears 5.1 There were no new arrears accumulated in the previous financial year. 6. Internal Audit 4.1 The LG has provided information to the PS/ST on the status of implementation of internal audit findings for the previous financial year. 6.1 This statement includes actions against all findings where Internal Audit recommended the accounting officer to take action. 4.1 Procurement Plan entered by the vote on the Tender Portal for the current FY 7
Accountability Requirements Area Summary of Requirements 7. Audit 7.1 The most recent Audit Opinion is neither Adverse nor Disclaimed. 7.2 There are no audit findings relating to overpayment of salaries, 7.3 There are no audit findings relating to funds not being accounted for 7.4 There are no audit findings relating to procurement anomalies 7.5 There are no audit findings relating to unsatisfactory or delayed civil works 7.6 There are no audit findings relating to locally-raised revenue 7.7 There are no audit findings relating to assets management 7.8 There are no audit findings relating to unspent balances 7.9 There are no audit findings relating to assets management 7.10 There are no audit findings relating to unspent balances 7.11 The LG has provided information to the PS/ST on the status of implementation of external audit findings for the previous financial year 7.12 This statement includes actions against all findings where the Auditor General recommended the accounting officer to take action. 8
Accountability Requirements Area Summary of Requirements 8. Transparency, Monitoring and Follow up 8.2 Post the LG Payroll on the budget website 8.3 Post the LG Pensioner Schedule on the budget website. 8.4 Prepare quarterly monitoring reports which outline the findings of monitoring activities and post them on the budget website 8.5 Post all quarterly monitoring reports on the budget website within one month of the end of the quarter. 8.1 Respond to and take appropriate follow up actions to feedback provided on the budget website and call centre. 9
Signing of Performance Contracts and Appointment of Accounting Officers The Initial Assessment of Budget and Accountability Requirements will take place in the months of March and April The results be communicated to LGs from the 15th April for those LGs that submit their budgets on time. Sector ministries will review the results of sector budget assessments Accounting officers should ensure that any areas of non compliance are addressed by the 31st May For budget requirements in the final budget estimates and performance contract For accountability requirements, any outstanding documents/evidence is provided The assessors will then finalise the assessment based The results of the final assessment will be used to inform the appointment of accounting officers and signing of performance contracts by the PS/ST Sector ministries will review results of sector assessments and advise PS/ST. 10
