The National Treasury Feedback Workshop on the Annual Financial Statements for Financial Year 2017/2018 and In-Year-Reporting 26 November 2018

Agenda Workshop Topics Audit Status and Results In –year Reporting – How far are we in terms of compliance Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

1. WORKSHOP TOPICS Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

Workshop Topics Key highlights of the workshop and TA provided to MDAs; Responding to audit issues raised by OAG in FY15/16 and 16/17 FS audit (Panel of Subject Matter Specialists); Areas of audit improvement – OAG; Quality review issues arising from in-year reports ; Auto- bank Reconciliation and Resolution of Prevalent Issues - Peer Presentation; Refresher on posting salary journals in IFMIS; Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

Workshop Topics Overview of E-procurement, Procurement processes in IFMIS and its effects in financial reporting; Peer presentation – achieving financial reporting excellence; Tax Matters affecting MDAs; Action Planning and Way Forward. Separate sessions will be held for Projects and RoR from Wednesday, 28 November 2018. Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

2. AUDIT STATUS AND RESULTS Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

Summary of Audit Progress and Results FY 2014/2015   Total entities in Lot 1 Not Started %age Ongoing Completed/Audited and certificates issued Qualified Adverse Disclaimer Unqualified MDAs 50 0% 1 2% 49 98% 29 7 2 11 CFS 4 100% 3 Receivers of revenue 5 Projects 90 8 9% 82 91% 19 54 155 5% 1% 146 94% 17 68 * The analysis of the type of audit reports above is for 146 out of 155 reports. Out of the 8 projects not analysed , we note that 2 projects were closed while 6 of them were not presented for audit. FY 2015/2016 51 34 10 78 4% 75 96% 13 26 144 3% 139 97% 66 21 12 40 FY 2016/2017 65 64 32 14 7% 93% 6% 77 23 6 45 165 158 70 Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

Trend Analysis - Voted Entities Improved performance as represented by the increase in unqualified reports from 17% to 31% . Disclaimer and Qualified Reports have also dropped Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

Trend Analysis - Receivers of Revenue Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

Trend Analysis - Projects Improved performance as represented by the increase in unqualified reports from 35% to 56% . Disclaimer and Qualified Reports have also dropped Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

Recognition of MDAs with Clean audit opinion for the Financial Year 2016/2017: The Presidency The Commission on Revenue Allocation Ministry of Defence Public Service Commission State Department for Maritime Affairs Salaries and Remuneration Commission State Department for Fisheries and the Blue Economy Controller of Budget The Commission on Administrative Justice State Department for Cooperatives National Intelligence Service National Gender and Equality Commission Office of the Director of Public Prosecutions Independent Policing Oversight Authority Office of the Registrar of Political Parties Witness Protection Agency State Department for Petroleum ( EoM) Kenya National Commission on Human Rights Ethics and Anti-Corruption Commission( EoM) National Land Commission Judicial Service Commission Entities which did not previously have clean opinions are in blue 13 in tota Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

3. IN YEAR REPORTING – HOW FAR ARE WE IN TERMS OF COMPLIANCE Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

Requirements of the PFM Act – Timings and Responsibility Report Deadline Person Responsible Legal Guideline Quarterly FS for National Govt MDAs 15th October – Q1 15th Jan - Q2 15th April – Q3 15th July – Q4 Accounting Officer Section 83 of the PFM Act, 2012 Consolidated Quarterly FS 15th November - Q1 15tH February - Q2 15th May – Q3 15th August - Q4 CS National Treasury Quarterly FS - not later than fifteen days after the end of each quarter - Not later than forty five days after the end of each quarter TNT shall consolidate the quarterly reports and submit them to the National Assembly with copies of the reports to the Controller of Budget, Auditor-General and the Commission on Revenue Allocation; and

Submission of Q1(FY 18-19) financial reports 75% compliance was attained in the submission of quarter 1 financial reports by MDAs and 25% by CFSs. 33% of the receivers of revenue have submitted their Q1 reports. Government development projects saw a submission rate of 22%. FY 2017/18 Scope of the cluster Hard Copy Submitted Soft Copy Submitted Total Submitted % Submitted Outstanding Report % Outstanding Cluster MDAs 65 47 2 49 75% 16 25% CFSs 4 1 3 RoRs 12 33% 8 67% Projects 93 20 22% 73 78% To promote compliance we undertook the following : Treasury issued a circular to the entities reminding them of their role in relation to submission of in–year reports, the statutory deadlines and implications of non-compliance (withholding of exchequer). Technical support to the entities in the submission of their in year reports with special emphasis on government development projects which recorded the lowest submission rate. Feedback Workshop on the Financial Statements for FY17/18 and In-year Reporting

Thank you