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

2. 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

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

4. 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

5. 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

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

7. 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

8. 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

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

10. 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

11. 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

12. 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

13. 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

14. 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

15. Thank you