Advanced Public Financial Management CPA KASNEB Pdf notes

PAPER NO. 16 (S4) ADVANCED PUBLIC FINANCIAL MANAGEMENT

UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to implement regulations and policy directives governing advanced public financial management issues, apply advanced financial management methods and techniques to analyse and manage public debt, public investments among other areas in public sector finance.

LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Ensure compliance with various regulations in public financial management
• Demonstrate awareness of the changing local and global public financial management issues
• Apply problem-solving skills in the practice of public financial management
• Apply public financial management tools and techniques in evaluating and managing public investments, public debt, enterprise management in complex and dynamics environments
• Implement public procurement regulations in practice.
• Recommend policy changes in the area of public sector financial management

CONTENT
1. Introduction to Public Financial Management

1.1 The scope, objective, and principles of Public Financial management (PFM)
1.2 Relevance of PFM Act in management of Public finances
1.3 Review PFM Act as an important tool to implement public policies
1.4 Best practices for public financial management in the global context
1.5 Challenges affecting implementation of Public Finances
1.6 The Public Financial Management Cycle

2. Public sector procurement

2.1 Introduction to procurement, store keeping, and Legal and institutional framework in public sector procurement
2.2 General Procurement Principles
2.3 The procurement cycle in public institutions
2.4 The Accountable documents applied in public procurement
2.5 Roles and relationship between stores personnel, Procurement and Supply chain officer in public entity
2.6 Establishment of Public Procurement Regulatory Authority (PPRA) as public procurement regulator
2.7 Public Private Partnership models and their applications.

3. The role of Accounting officer in management of Public Funds

3.1 Establishment of Public Funds
3.2 Financing and operationalisation of Public Funds
3.3 Review of selected Public Funds including Contingency Fund, Equalisation Fund among others
3.4 Winding up procedures for the Public Funds
3.5 Overview of Integrated Tax System, its operations and infrastructure.

4. Management of Public Debts in both National and County Governments’

4.1 Introduction to Public Debt, methods and debt instruments
4.2 Establishment, Functions of Public Debt office
4.3 Debt management in the County Government
4.4 Global best practices in management of public debts
4.5 Key stakeholder and their roles in public debt management including National Treasury and Parliament
4.6 Power of national government to lend money and Management of Guarantees

5. Public Sector Investment and enterprise management

5.1 Establishment and Dissolution of State Corporations and public investments
5.2 Monitoring performance and statutory reporting for public investments.
5.3 The role of the National Treasury in management of Public Enterprises
5.4 Comparative analysis of State Corporation Act and Companies Act in Kenya
5.5 Challenges affecting State Corporation in Kenya.

6. Public Financial Management Reforms in Kenya

6.1 Establishment, Management and roles of Public Financial management reform
6.2 Public Financial management reforms
6.3 Overview of development partners and donor funds management
6.4 Resource mobilisation strategies the PFMR

7. Internal Auditing in the Public sector

7.1 Establishment and scope of internal audit function
7.2 Objectives and functions of the internal audit function
7.3 The internal control system and its procedures
7.4 Internal audit function reporting structure
7.5 Internal audit standards and guidelines
7.6 Qualification for and professional bodies guiding internal auditors
7.7 The establishment, appointment and functions of audit committee
7.8 The role of Audit Committees in management of public funds
7.9 Merits and demerits of establishing audit committees.

8. The Office of Auditor General

8.1 The establishment of the Office of Auditor General and overview of the Public Audit Act, 2015
8.2 The Appointment, roles and function of the office of Auditor General
8.3 Responsibilities of the Auditor General & Relationship between the internal audit function and office of Auditor General
8.4 Challenges facing auditing public sector institutions.
8.5 The role of parliament as oversight body and parliamentary oversight committees in both National Assembly and the Senate.
8.6 Challenges affecting the Parliament as oversight body

9. Appointment of Receivers of Revenue

9.1 Definition and appointment of Receivers of Revenue
9.2 The Role of Accounting officers in management of Receivers of Revenues
9.3 Procedure for Revenue classification and estimating revenues
9.4 Accounting procedure for the Receivers of Revenue

10. Management of Consolidated Fund Services and Exchequer Accounts

10.1 Scope and objectives of Consolidated Fund Services
10.2 Expenditures covered the Consolidated Fund Services
10.3 The Exchequer Account and procedures for exchequer requisitioning
10.4 The role of Accounting officers in exchequer requisition
10.5 Principles and Operations of Treasury Single Account (TSA)

11. Management of Revenues in County Governments

11.1 Classification of revenues in the County Governments
11.2 The role of Committee Executive Member of finance in County revenue management
11.3 The Role of the Commission on revenue collection in management of County government revenues.
11.4 Operations of County Revenue Fund (CRF)
11.5 Overview of computerised revenue collection services County Governments.
11.6 Challenges affecting revenue collection the County Governments.

12. Public sector Budgeting and Planning

12.1 Provisions of the National Budget in line with PFM Act
12.2 Principles of a Soundness of the Budget and the Public sector Budget cycle
12.3 Types of Budgets and rational for their applications and the Stages of the Public
12.4 Budget for both National and County Governments
12.5 Stakeholders in public budget making process
12.6 Strengths, Challenges and Weaknesses in public budget preparation systems

Sample reading and reference material

1. The Public Finance Management Act, 2012 and Regulations
2. Income Tax Act Revised Edition 2018
3. Tax Procedures Act of 2015, Revised Edition 2018
4. Kasneb e-learning resources (link on kasneb website)
5. Kasneb approved study packs