The National Treasury IN YEAR & ANNUAL REPORTING FINANCIAL YEAR 2014/2015

Page 2 In Year & Annual Reporting - FY 2014/ Requirements of the PFM Act 2. Reporting Templates 3. Quality Review Checks In Year & Annual Reporting - FY 2014/2015

Page 3 Requirements of the PFM Act – Timings and Responsibility ReportDeadlinePerson Responsible Legal Guideline Annual FS for National Govt MDAs 30 th SeptemberAccounting OfficerSection 81 of the PFM Act, 2012 Consolidated Annual FS 31st OctoberCS National TreasurySection 80 of the PFM Act, 2012 Quarterly FS for National Govt MDAs 15 th April 15 th July 15 th October 15 th Jan Accounting OfficerSection 83 of the PFM Act, 2012 Consolidated Quarterly FS 15 th May 15 th August 15 th November 15 tH February CS National TreasurySection 83 of the PFM Act, 2012

Page 4 2. Reporting Templates: ► Demo on how to access and complete the: 1. In Year/Quarterly Reporting Template – both MDAs & Projects 2. Annual Reporting Template - both MDAs & Projects In Year & Annual Reporting - FY 2014/2015

Page 5 3. Quality Review Checks: ► The financial statements (Statement of Assets and Liabilities, Statement of Receipts and Payments and Statement of Cashflows) and notes should tie and they should all cast. ► The fund balance carried down and the fund balance brought forward should be the same. The fund balance brought forward (note 25) should be supported by the assets and liabilities in the previous year. ► Rather than amending the fund balance brought forward, a prior year adjustment should be introduced into the Statement of Assets and Liabilities for the adjustments to be captured therein. In Year & Annual Reporting - FY 2014/2015

Page 6 In Year & Annual Reporting - FY 2014/ Quality Review Checks (continued): Guidance on Introduction of a Prior Year Adjustment: Example: If expenditure returns for District Suspense of KShs 450,000 for FY 2014/15 are now accounted for in FY 2015/16. Similarly if you receive expenditure returns for Imprest of 150,000 for FY 2014/15 accounted for in the FY 2015/16. Since the District Suspense and Imprest have been brought forward in FY 2015/16. In Year & Annual Reporting - FY 2014/2015

Page 7 In Year & Annual Reporting - FY 2014/ Quality Review Checks (continued): Guidance on Introduction of a Prior Year Adjustment (continued): The entries in FY 2015/16 for District Suspense would be: DR. Fund Balance (PY Adjustment) 450,000 CR. District Suspense 450,000 Similarly the entries in FY 2015/16 for Imprest would be: DR. PY Adjustment (PY Adjustment) 450,000 CR. District Suspense 450,000 In Year & Annual Reporting - FY 2014/2015

Page 8 In Year & Annual Reporting - FY 2014/ Quality Review Checks (continued): Guidance on Introduction of a Prior Year Adjustment (continued): Disclosure in FY 2015/16 financial statements would be: In Year & Annual Reporting - FY 2014/2015

Page 9 In Year & Annual Reporting - FY 2014/ Quality Review Checks (continued): ► Net financial assets should equal to the net financial position. ► The combined statement of appropriation (recurrent and development) should be supported by both the recurrent statement of appropriation and the development statement of appropriation. Additionally, the actual or comparable basis in the combined statement of appropriation should mirror the Statement of Receipts and Payments. In Year & Annual Reporting - FY 2014/2015

Page 10 In Year & Annual Reporting - FY 2014/ Quality Review Checks (continued): Other Common Issues: ► The term "Entity“ should not appear. It should be replaced with the name of the MDA. ► “xx” should not appear. It should be replaced with the date. The year end should refer to the financial year end for which the financials are being prepared. ► The Presentation Currency should be disclosed as (KShs 000) i.e. the numbers are rounded to the nearest KShs 1,000. Therefore, decimals should be excluded. ► Comparatives not tying to prior year audited and signed financial statements In Year & Annual Reporting - FY 2014/2015

Page Quality Review Checks (continued): Other Common Issues (continued): ► The financial data included in the ‘Forward By The Cabinet Secretary’ should be supported and reconciled to the financial statements. ► The word document should be formatted and aligned. ► A commentary on significant underutilization and any overutilization in the "Summary Statement of Appropriation: Recurrent and Development Combined“ should be provided. In Year & Annual Reporting - FY 2014/2015

Page 12 In Year & Annual Reporting - FY 2014/ Quality Review Checks (continued): Other Common Issues (continued): ► Annexures attached should be referenced to the numbers in the notes in the financial statements. The data in these annexures should tie to the notes in the financial statements. ► Schedules should not have casting errors. In Year & Annual Reporting - FY 2014/2015