1. The National Treasury YEAR END CLOSE PROCEDURES FINANCIAL YEAR 2014/2015

2. Page 2 Year End Close Procedures - FY 2014/2015 1. Remittance of Revenue and A.I.A 2. Inter – Entity Balances 3. Remittance of Expenditure Returns 4. Board of Survey 5. Bank Reconciliations 6. Other Accounts 7. Opening Balances in IFMIS 8. Extraction and Reconciliation of IFMIS Reports 9. Completeness and Accuracy of the GL 10. Historical and Old Balances 11. Closure of IFMIS 12. Reporting Year End Close Procedures – FY 2014/2015

3. Page 3 Year End Close Procedures - FY 2014/2015 1. Remittance of Revenue and A.I.A:  Every effort must be made to collect, account and bank all Revenue and Appropriation-in-Aid due to Government latest by 4.00 p.m. on 30th June.  Revenue/A-I-A Returns, Field Stations Accountants are required to forward not later than 15th July, a summary of all Revenue/AIA collected and remitted to the MDA during the financial year just ended.  Returns should be duly certified by the Internal Auditor. Year End Close Procedures – FY 2014/2015

4. Page 4 1. Remittance of Revenue and A.I.A (Continued): ► Exchequer receipts should be confirmed with the memos from The National Treasury. ► Recording of 4th quarter Exchequer releases remitted by The National Treasury at the close of the year but received in the subsequent year (cut-off): the MDA should record all releases despite the dates, as supported by the memo from The National Treasury. Year End Close Procedures – FY 2014/2015 Year End Close Procedures - FY 2014/2015

5. Page 5 Year End Close Procedures - FY 2014/2015 2. Inter-Entity Balances: ► Inter – Entity Balance Confirmations should prepared and sent to the receiving entity for reconciliation at the end of every quarter. Year End Close Procedures – FY 2014/2015

6. Page 6 Year End Close Procedures - FY 2014/2015 3. Remittance of Expenditure returns:  Every effort must be made to collect, account and bank all Revenue and Appropriation-in-Aid due to Government latest by 4.00 p.m. on 30th June.  Field stations required to submit to summary of expenditure together with a reconciliation of the AIEs issued, actual cash received and the actual expenditure for the financial year 2014/15, by 15th July.  Field Stations to electronically surrender, back to the MDAs accounts in the CBK, any unspent balances as shown in the expenditure return as at 30th June, latest by 31st July. Year End Close Procedures – FY 2014/2015

7. Page 7 Year End Close Procedures - FY 2014/2015 4. Board of Survey:  A Board of Survey should be constituted both in the MDA Headquarters and National Sub-County Treasuries/Field Stations to examine and verify the cash on hand and the bank balances as at close of business on the last working day of the financial year.  This examination must be carried out before the opening of business on the first day of the new financial year, (1st July). Year End Close Procedures – FY 2014/2015

8. Page 8 Year End Close Procedures - FY 2014/2015 5. Bank Reconciliations:  HAUs are expected to prepare both Manual and Auto Bank Reconciliation Statements and submit them to the National Treasury by 15th day of the following month.  HAUs should also ensure they receive bank reconciliation statements in respect of all their Field Stations bank accounts duly certified by the Field Stations Internal Auditor. Year End Close Procedures – FY 2014/2015

9. Page 9 Year End Close Procedures - FY 2014/2015 6. Others Accounts:  All standing and temporary imprests should be surrendered by 15th of July 2015.  Salaries for month of June should be paid early enough and all deductions paid over to the respective payees before 30th June.  This is aimed at ensuring that all payroll expenditure for the year is correctly reflected in the annual financial statements. Year End Close Procedures – FY 2014/2015

10. Page 10 7. Opening Balances in IFMIS: ► FY 2013/2014 IFMIS Instance was different from FY 2014/2015 IFMIS Instance hence there was need to post Opening Balances Journal Entries in IFMIS. ► FY 2014/2015 IFMIS Instance is the same as FY 2015/2016 IFMIS Instance so there is an automatic roll- forward of opening balances. ► HAU must ensure opening balances agree to PY Audit Financial Statements. For FY2015/2016, this will only be necessitated by having done your bank reconciliations in FY 2014/2015. Year End Close Procedures – FY 2014/2015 Year End Close Procedures - FY 2014/2015

11. Page 11 Year End Close Procedures - FY 2014/2015 8. Extraction and Reconciliation of IFMIS Reports: ► Extracting and reconciling reports from IFMIS i.e. Statement of Financial Position (Statement of Assets and Liabilities), Statement of Receipts and Payments, Statement of Cashflows, Statement of Budget Execution (Statement of Appropriation) and the notes to the statements. ► Extraction/drilldown, completeness and validation of account analysis Year End Close Procedures – FY 2014/2015

12. Page 12 9. Completeness and Accuracy of the GL: ► Validating the completeness and accuracy of the GL ((TBs i.e. item, sub-item and sub-chapter all balance) and the Cash, AR and AP sub-modules) Year End Close Procedures – FY 2014/2015 Year End Close Procedures - FY 2014/2015

13. Page 13 Year End Close Procedures - FY 2014/2015 10. Historical and Old Balances: ► Having made their presentations to the taskforce, most of the MDAs have been able to establish the validity of the revised balances by agreeing them to source documentations and supporting schedules. ► The MDAs will be required to restate the fund balance brought forward in FY 2013/2014 to the revised balances carried forward in FY 2012/2013 through Prior Year adjustments should the two be different. Year End Close Procedures – FY 2014/2015

14. Page 14 Year End Close Procedures - FY 2014/2015 11. Closure of IFMIS: ► All period end closing procedures requiring the use of IFMS should be finalized by 31st of July 2015 when the system is expected to be closed. Year End Close Procedures – FY 2014/2015

15. Page 15 Year End Close Procedures - FY 2014/2015 12. Reporting:  As required by Section 81 of the PFM Act, annual financial statements which should be submitted to the Auditor General by 30th September, with a copy to: the Controller of Budget, National Treasury and Commission on Revenue Allocation  Ensure reports are subjected to internal quality review by the Technical Assistance Consultants before sharing to external stakeholders. Year End Close Procedures – FY 2014/2015