(2) Every public officer shall also— (a) comply with the provisions of this Act so far as they are applicable to the officer; (b) ensure that the resources within the officer’s area of responsibility are used in a way that— (i) is lawful and authorised; and (ii) effective, efficient, economical and transparent; and (c) within the officer’s area of responsibility— (i) ensure that adequate arrangements are made for the proper use, custody, safeguarding and maintenance of public property; and (ii) use the officer’s best efforts to prevent any damage from being done to the financial interests of the county government. Financial reporting by county government entities

163. County government to prepare annual financial statements (1) At the end of each financial year, the County Treasury shall, for the county government, consolidate the annual financial statements in respect of all the county government entities in formats to be prescribed by the Accounting Standards Board.

(2) The County Treasury shall include in the consolidated financial statements — (a) a statement of all money paid into and paid out of the County Exchequer Account; (b) a summary of— (i) the appropriation accounts and statements prepared by accounting officers under section 164; and (ii) the statements prepared by receivers of revenue under section 165; (c) a statement of payments, if any, made out of the County Exchequer Account that are authorised by legislation other than an Appropriation Act; (d) a statement of the total amount of debt of the county government that is outstanding at the end of the financial year; (e) a statement of the debt guaranteed by the national government at the end of the financial year; (f) such other statements as the county assembly may require; and (g) a statement on the summary of the accounts from the county assembly. 101 No. 18 of 2012 Public Finance Management [Rev. 2020]

(3) The County Treasury shall ensure that the statements and summaries referred to in subsection (2) are in a form that is in accordance with the accounting standards prescribed and published by the Accounting Standards Board from time to time.

(4) Not later than four months after the end of each financial year, the County Treasury shall— (a) submit the financial statements and summaries referred to in subsection (1) to the Auditor-General; and (b) deliver a copy to the National Treasury, Controller of Budget and the Commission on Revenue Allocation.

164. Annual reporting by accounting officers (1) At the end of each financial year, the accounting officer for a county government entity shall prepare financial statements in respect of the entity in formats to be prescribed by the Accounting Standards Board.

(2) The accounting officer shall include in the financial statements— (a) appropriation accounts, showing— (i) the services for which the appropriated money was spent; (ii) the amounts actually spent on each service; and (iii) the status of each Vote compared with the appropriation for the Vote; and (iv) a statement explaining any variations between the actual expenditure and the sums Voted; and (v) any other information specified by the County Treasury; (b) a statement of the entity’s debt that is outstanding at the end of the financial year; (c) a statement of the entity’s debt guaranteed by the national government as at the end of the financial year; (d) a statement of the entity’s assets and liabilities as at the end of the financial year in respect of— (i) each Vote, clearly identifying between recurrent and development expenditure; and (ii) funds and deposits; (e) a statement of the accounting policies followed in preparing the financial statement; and (f) a statement of the county government entity’s performance against predetermined objectives.

(3) The accounting officer shall prepare the financial statements in a form that complies with relevant accounting standards prescribed and published by the Accounting Standards Board from time to time.

(4) Within three months after the end of each financial year, the accounting officer for an entity shall— (a) submit the entity’s financial statements to the Auditor-General; and (b) deliver a copy of the statements to the relevant County Treasury, the Controller of Budget, and the Commission on Revenue Allocation. 102 [Rev. 2020] Public Finance Management No. 18 of 2012

(5) In the case of an entity that is a County corporation, the accounting officer shall submit a copy of the county corporation’s financial statements to the County Executive Committee member responsible for that corporation who shall approve and forward the statements to the County Executive Committee member for finance.