(4) Before the submission of the legislative proposals on the Division of Revenue and County Allocation of Revenue, the Cabinet Secretary shall notify— (a) the intergovernmental Budget and Economic Council; and (b) the Commission on Revenue Allocation.

(5) When the legislative proposal on the Division of Revenue and County Allocation of Revenue is submitted, it shall be accompanied by a memorandum which explains— (a) how the Bill takes into account the criteria listed in Article 203(1) of the Constitution; (b) the extent of the deviation from the Commission on Revenue Allocation’s recommendations; 112 [Rev. 2020] Public Finance Management No. 18 of 2012 (c) the extent, if any, of deviation from the recommendations of the Intergovernmental Budget and Economic Council; and (d) any assumptions and formulae used in arriving at the respective shares mentioned in subsections (2) and (3). [Act No. 6 of 2014, s. 9.]

PART VI – PUBLIC SECTOR ACCOUNTING STANDARDS BOARD 192. Establishment of the Board There is established a Public Sector Accounting Standards Board which shall perform the functions set out in this Part.

193. Composition of the Board (1) The Accounting Standards Board shall consist of a representative of each of the following bodies who shall serve on a part-time basis— (a) the National Treasury; (b) the Controller of Budget; (c) the Intergovernmental Budget and Economic Council; (d) the Auditor-General; (e) the Institute of Certified Public Accountants of Kenya; (f) the Association of Professional Societies of East Africa; (g) the Capital Markets Authority; (h) the Institute of Internal Auditors; and (i) the Institute of Certified Public Secretaries of Kenya.

(2) The Cabinet Secretary shall appoint a chairperson of the Board from members nominated under subsection (1).

(3) In making nominations to the Board, the respective organisations shall ensure that their nominees are certified members in good standing of a professional body in accounting or finance recognised by law in Kenya.

(4) Members of the Board except ex-officio members shall be appointed by the Cabinet Secretary and serve for a term of three years, renewable once for a further and final term of three years.

(5) The National Treasury shall provide secretariat services to the Board and assign or appoint such support staff as may be necessary for the Board to effectively perform its functions.

(6) The Board may establish and regulate its own operating procedures. [Act No. 38 of 2016, s. 59.] 194. Functions of the Board

(1) The Accounting Standards Board shall provide frameworks and set generally accepted standards for the development and management of accounting and financial systems by all State organs and public entities, and shall in particular perform the following functions— (a) set generally accepted accounting and financial standards; (b) prescribe the minimum standards of maintenance of proper books of account for all levels of Government; (c) prescribe internal audit procedures which comply with this Act; 113 No. 18 of 2012 Public Finance Management [Rev. 2020] (d) prescribe formats for financial statements and reporting by all state organs and public entities; (e) publish and publicise the accounting and financial standards and any directives and guidelines prescribed by the Board; (f) in consultation with the Cabinet Secretary on the effective dates of implementation of these standards. Gazette the dates for application of the standards and guidelines; and (g) perform any other functions related to advancing financial and accounting systems management and reporting in the public sector.