63. The functions of the Public Debt Management Office shall include— (a) carrying out the government’s debt management policy of minimising its financing cost over the long-term taking account of risk; (b) maintaining a reliable debt data base for all loans taken by the national government, county governments and their entities including other loans guaranteed by the national government; (c) prepare and update the annual medium-term debt management strategy including debt sustainability analysis; (d) prepare and implement the national government borrowing plan including servicing of outstanding debts; The Public Finance Management Act, 2012 83 (e) acting as the principal in the issuance of Government debt securities on behalf of the National Treasury; (f) monitor and evaluate all borrowing and debt-related transactions to ensure that they are within the guidelines and risk parameters of the debt management strategy; (g) process the issuance of loan guarantees including assessment and management of risks in national government guarantees. (h) transact in derivative financial instruments in accordance with best international practices benchmarked to the debt management offices of other governments that are internationally respected for their practices. Role of Cabinet Secretary in Public Debt Management Office.

64. (1) The Cabinet Secretary shall— (a) develop the policy and financial framework in accordance with Constitutional principles within which the Public Debt Management Office operates; (b) delegate to the Head of the Public Debt Management Office the operational decisions on borrowing and debt management and the day-to- day management of the Office; (c) ensure that the Public Debt Management Office has the resources and skills to manage the debt and borrowing according to international best practices for liability management; and (d) be accountable to Parliament for the work of the Public Debt Management Office.

(2) The Public Debt Management Office shall prepare and submit to the Cabinet Secretary and the Commission on Revenue Allocation the following reports - (a) the Medium Term Debt Management Strategy consistent with the Budget Policy Statement; The Public Finance Management Act, 2012 84 (b) the government borrowing plan for the approved Annual Budget; (c) the statistical and analytical reports on debt and borrowing; and (d) the annual performance reports of the Public Debt Management Office. (3) The reports referred to in subsection (2) shall be published and publicised and a copy of each sent to each county government.

(4) The Public Debt Management Office may appoint agents to provide technical advice or undertake administrative functions for the management of debts provided that control and accountability for these functions remain with the Cabinet Secretary. Relationship with county treasuries in debt management. 65. (1) At the request of a County Treasury, the Public Debt Management Office shall assist the county government in its debt management and borrowing. (2) At the request of the Public Debt Management Office, the County Treasury shall supply the Public Debt Management Office with any information that shall enable it to execute its mandate efficiently. The Judiciary, Parliament, Constitutional Commissions and Independent Offices Accounting officers of Judiciary, Parliament, constitutional commissions and independent offices.

66. (1) Subject to the Constitution, the accounting officer of the Judiciary, Parliamentary Service Commission, constitutional commissions and independent offices shall monitor, evaluate and oversee the management of public finances in their respective entities, including— (a) the promotion and enforcement of transparency, effective management and accountability with regard to the use of public finances; (b) ensuring that accounting standards are applied; (c) the implementation of financial policies in relation to public finances; (d) ensuring proper management and control of, and The Public Finance Management Act, 2012 85 accounting for, their finances in order to promote the efficient and effective use of budgetary resources; (e) the preparation of annual estimates of expenditures; (f) acting as custodian of the entity’s assets, except where provided otherwise by any other legislation or the Constitution; (g) monitoring the management of public finances and their financial performance; (h) making quarterly reports to the National Assembly on the implementation of their budget; and (i) taking such other actions, not inconsistent with the Constitution, as shall further the implementation of this Act. Responsibilities of the accounting officers of the national government and the national government entities Designation of accounting officers for national government.

67. (1)The Cabinet Secretary, except as otherwise provided by law, shall in writing designate accounting officers to be responsible for the proper management of the finances of the different national government entities as may be specified in the different designations. (2) Except as otherwise stated in other legislation, the person responsible for the administration of a Constitutional Commission or institution or Independent Office shall be the accounting officer responsible for managing the finances of that Commission, institution or Independent Office. (3) The Cabinet Secretary shall ensure that at any time there is an accounting officer in each national government entity. Responsibilities of accounting officers for national government entities, Parliament and the Judiciary. 68.(1) An accounting officer for a national government entity, Parliamentary Service Commission and the Judiciary shall be accountable to the National Assembly for ensuring that the resources of the respective entity for which he or she is the accounting officer are used in a way that is— (a) lawful and authorised; and (b) effective, efficient, economical and transparent.

(2) In the performance of a function under subsection (1), an accounting officer shall— (a) ensure that all expenditure made by the entity complies with subsection (1); The Public Finance Management Act, 2012 86 (b) ensure that the entity keeps financial and accounting records that comply with this Act; (c) ensure that all financial and accounting records the entity keeps in any form, including in electronic form are adequately protected and backed up; (d) ensure that all contracts entered into by the entity are lawful and are complied with; (e) ensure that all applicable accounting and financial controls, systems, standards, laws and procedures are followed when procuring or disposing of goods and services and that, in the case of goods, adequate arrangements are made for their custody, safeguarding and maintenance; (f) bring any matter to the attention of the Cabinet Secretary responsible for the entity, or the Chief Justice or the Speaker of the National Assembly if, in the accounting officer’s opinion, a decision or policy or proposed decision or policy of the entity may result in resources being used in a way that is contrary to subsection (1); (g) prepare a strategic plan for the entity in conformity with the medium term fiscal framework and fiscal policy objectives of the national government; (h) prepare estimates of expenditure and revenues of the entity in conformity with the strategic plan referred to in paragraph (g); (i) submit the estimates of the public entity which is not a state corporation to the Cabinet Secretary; (j) submit the estimates of a public entity which is a state corporation to the Cabinet Secretary responsible for that state corporation who, after approving it, shall forward it to the Cabinet Secretary; (k) prepare annual financial statements for each financial year within three months after the end of the financial year, and submit them to the Controller of Budget and the Auditor-General for audit, and in the case of a national government entity, forward a copy to the National Treasury; (l) take appropriate measures to resolve any issues arising from audit which may remain outstanding; (m) provide information on any fraud, losses, or any The Public Finance Management Act, 2012 87 violation of subsection (1)and explanation for the actions taken to prevent a similar problem in future; (n) provide the National Treasury and any other office, where relevant, with any information it may require to fulfil its functions under this Act; and (o) in case of a national government entity, carry out such other functions as may be specified by the Cabinet Secretary.

(3) If the concerns referred to in subsection (2) (f) are not adequately addressed by the Cabinet Secretary or the Chief Justice or the Speaker of the National Assembly, the accounting officer shall bring those concerns to the attention of Parliament. (4) Not later than three months after the National Assembly has adopted a report by a relevant committee of the National Assembly in respect of a report submitted by the Controller of Budget under Article 228(6) of the Constitution, an accounting officer shall - (a) prepare a report on actions taken by the entity to implement any recommendations made in the committee’s report as adopted by the National Assembly; and (b) submit the report to the National Assembly and in case of a national government entity, copy to the National Treasury and the Controller of Budget.

(5) A report referred to in subsection (4) shall be published and publicised. Accounting officer of a national government entity may write off loss. 69.(1) An accounting officer for a national government entity may writeoff any loss not exceeding a prescribed amount, and in circumstances prescribed by regulations for the purposes of this section. (2) An accounting officer for a national government entity, may with the approval of the Cabinet Secretary, writeoff a loss exceeding the amount referred to in subsection (1) but not exceeding a further amount and in circumstances prescribed by regulations.

(3) The Cabinet Secretary may, with the approval of Cabinet, authorise an accounting officer to writeoff a loss exceeding the amount referred to in subsection (2). (4) An accounting officer for a national government entity shall maintain a record of any losses that are written off The Public Finance Management Act, 2012 88 during a financial year and shall include the record in the entity’s financial statements for that year. Spending authority of accounting officer. 70. If a national government entity has expenditures that are charged on the Consolidated Fund under the Constitution or an Act of Parliament, the accounting officer has the authority to spend the money in accordance with the purposes specified in legislation without an appropriation. Accounting officer for national government entity may make cash advances. 71.(1) An accounting officer for a national government entity may authorise payment of cash advances to public officers to enable them make payments for the entity or in the course of their duties.