About the Committee
Its primary purpose is to assist the Commission on Revenue Allocation (“the Commission”) in fulfilling its mandate of making recommendations on public financial management. The Terms of Reference outlines the objectives, composition, responsibilities and duties; authority and procedures of the Committee. The Committee is part of CRA’s operational arrangement meant to enhance efficiency and division of labor.
The purpose of the Public Finance Management Committee (PFMC) is to help the Commission fulfil its financing, financial management and fiscal responsibility mandate:
1. To provide recommendations on the county plans, budgets and budget implementation.
2. To make recommendations on the management of recurrent expenditure by the county government.
3. To develop a framework for prudent financial management at the county level.
4. To promote adherence to the principles of fiscal responsibility throughout the PFM structures and processes.
5. To advice both levels of government on adoption and usage of ICT systems for prudent financial management.
The PFMC shall undertake the following:
1. To provide general direction on prudent financial management in the county governments.
2. To provide general direction on fiscal responsibility in the both the national and county governments.
3. To discuss, review and recommend on measures to manage county recurrent spending.
4. Periodically make recommendations on county spending on non-core items.
5. Monitor adherence by counties on financial matters as per legislation and make recommendations where there is deviation.
6. Monitor adherence by both national and county governments to the principles of fiscal responsibilities as outlined in PFMA 2012 section 15 and 107.
7. Discuss, review and make recommendations on changes to legislations pertaining to financial management in counties.
8. Discuss, review and make recommendation or give general direction on the financial reports submitted to the Commission by both the national and county governments. These include planning reports like county Integrated Development Plans (CIDP), County Fiscal Strategy Paper (CFSP) and Annual Development Plans (ADP). It also includes financial reports like the budgets, quarterly and annual financial reports and debt reports.
9. Recommend to the full Commission capacity building county executives on identified areas of weakness pertaining to financial management.
10. Recommend to the full Commission to capacity build on County Assemblies on identified areas of weakness on their oversight role in financial management.
11. Monitor and make recommendations on sustainable debt levels in the counties.
12.Support and make recommendations on counties to set up structures to enhance financial management in counties. For example County Budget Economic Forums, the Audit Committees among others
The Committee will consist of at least three (3) Commissioners among whom one will be appointed Chairperson by the Commission. The following, who may assist the Committee with its discussion on any particular matter may attend the meetings of the committee:
i. The Commission Secretary/Chief Executive Officer.
ii. Directors /Head of Departments where applicable.
iii. Any other person at the discretion of the PFMC.