1. Experiences of IBEC in intergovernmental financial management, good practices, gaps and recommendations Patrick Omutia CBS Special Secretary/ ODP IBEC A presentation at the Governors and Deputy Governors Induction Meeting 14th December 2017 Diani Reef Beach Hotel, Kwale County

2. What is Intergovernmental Budget and Economic Council (IBEC) ?
IBEC is a forum  established under s. 187 of PFM Act and pursuant to Art. 6(2) of CoK for consultation and cooperation between the national government and county  governments .

3. Objects of IBEC
IBEC coordinates governments’ policies, legislation and functions on pertinent matters specified under s.187 of the PFM Act namely - Financial management and budgeting - Borrowing and debt management - Economic management and integrated development - Fiscal legislation and regulations - Other matters that the Deputy President as chairman in consultation with members agree

4. Role of PFM
An essential part of the governance process on all aspects of resource mobilization and its utilization in government which includes resource generation, resource allocation, prioritization of programmes, the budgetary process, efficient management of resources and exercising controls.
This should lead to enhanced service delivery and development through:
Indicate priorities of investment,
Provide social services for the people,
Provide the basic services to its citizens,
Facilitate the economic activities of government and the private sector,
Regulate the important sectors of the economy,
Ensure economic stability, and
Attain a reasonable rate of development.

5. Role of PFM
Therefore, to the leadership (particularly- Governors and their deputies), PFM involves the joint solution to the three decisions of your government on investment, operations and financing. It is these decisions that activate resources movements which impact, for better or worse, on governments’ performance.

6. Achievements
Key resolutions adopted and implemented led to improvements in the key results areas in the mandate a few examples of which are as follows

7. Good Practices
Adoption and implementation of IFMIS and automation of revenue collection
Debt management framework and preparation for capacity building for counties
Move towards realistic Integrated development plans for financial management effectiveness
Progressive compliance with PFMA on spending ceilings
Amendments to PFMA and regulations-expenditure ceiling
Initiation of need for own source revenue policy and legislation
Framework for transfer of assets and liabilities of the defunct local authorities
Harmonization of the draft bills for the County Pension Scheme

8. Gaps/challenges
Lack of clear understanding of the mandate of the intergovernmental institutions.
Politicization of issues that are technical in nature.
Failure by policy developers and implementers to utilize intergovernmental institutions in dispute resolution and opting for judicial intervention.
Information sharing: reluctance by institutions to share information that would facilitate the management of intergovernmental affairs.
Wide disparity in compliance with spending ceiling on employee compensation and realization of OSR targets due to employee productivity issues.
Lack of aging of liabilities.
Value for money concerns- efficiency, effectiveness and economy- is central to good financial management.
Balancing of rising aspirations with available resources.

9. Recommendations
Continuous engagement in creating deeper understanding of the functional relationship between the two levels of government
Capacity building
Involvement of political institutions/ entities in technical conversations and Political goodwill
Legislative strengthening of the role of alternative dispute resolution frameworks
Build trust to encourage access to and sharing of information.
Improved liabilities management
Evaluation of resources utilization and compliance follow-ups
People-based management

10. END !
Thank you for your attention
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