(6) The reports referred to in subsection (4) shall be published and publicised. Accounting officer to prepare quarterly reports for national government entity. 83. (1) An accounting officer for a national government entity shall prepare a report for each quarter of the financial year in respect of the entity. (2) In preparing a quarterly report for a national government entity, the accounting officer shall ensure that the report— (a) contains information on the financial and non- financial performance of the entity; and (b) is in a form that complies with the standards prescribed and published by the Accounting Standards Board from time to time.

(3) Not later than fifteen days after the end of each quarter, the accounting officer shall submit the quarterly report to the Cabinet Secretary responsible for the entity and the National Treasury. (4)The Cabinet Secretary responsible for an entity shall forward a copy of the report to the Cabinet Secretary and Controller of Budget. (5) Not later than forty five days after the end of each quarter, the National Treasury shall— (a) consolidate the quarterly reports and submit them to the National Assembly with copies of the reports to the Controller of Budget, Auditor-General and the Commission on Revenue Allocation; and (b) publish and publicise the reports.

(6) In the case of an entity that is a state corporation, the accounting officer for the corporation shall submit the quarterly report to the Cabinet Secretary responsible for the corporation who shall, upon approving it, forward a copy to the Cabinet Secretary. The Public Finance Management Act, 2012 97 Administrators of national public funds to prepare annual financial statements. 84. (1) The administrator of a national public fund established by the Constitution or an Act of Parliament shall prepare financial statements for the fund for each financial year in a form prescribed by the Accounting Standards Board.

(2) In preparing a financial statement for a national public fund, the administrator shall ensure that the report contains information on the financial and non-financial performance of the national public fund. (3) Not later than three months after the end of each financial year, the administrator of a national public fund shall submit the financial statements prepared under this section to the Auditor -General. (4) The administrator shall submit a copy of the report to the Cabinet Secretary responsible for the fund. Quarterly reporting by administrators of national public funds.

85. The administrator of a national public fund established by the Constitution or an Act of Parliament shall prepare quarterly financial statements for the national public fund in a form prescribed by the Accounting Standards Board. Establishment and dissolution of state corporations and additional requirements for state corporations and government-linked corporations Establishment and dissolution of a state corporation. 86.(1) A state corporation may be established or dissolved only with the prior approval of the Cabinet, which approval may be given only after taking into account any recommendations made by the National Treasury regarding the financial implications of establishing or dissolving the corporation.

(2) Regulations shall prescribe the criteria to be used in establishing or dissolving state corporations and the regulations shall be tabled in Parliament for approval. Restrictions on national government investing in government-linked corporations. 87. (1) The national government or national government entity may not invest— (a) in a state corporation; or (b) in a government-linked company, without the prior approval of the Cabinet, which approval may be given only after taking into account any recommendations of the National Treasury regarding the financial implications of the investment. Cabinet Secretary in charge of state 88. (1) The respective Cabinet Secretary responsible for matters relating to a state corporation is responsible for The Public Finance Management Act, 2012 98 corporation to monitor its performance. Cap. 446. monitoring— (a) the financial performance of that state corporation and government- linked corporations; and (b) the performance of that state corporation and the activities affecting its financial performance; and reporting to the Cabinet on the financial performance of the state corporation.

(2) The Cabinet Secretary shall — (a) analyse financial and other reports that are required to be prepared by a state corporation under the State Corporations Act or any other relevant Act. (b) report to the Cabinet on the financial performance of those state corporations; and (c) make recommendations to the Cabinet as to how a particular state corporation or government-linked corporation could improve its financial performance. Annual reporting by the Cabinet Secretary responsible for matters relating to public investments. 89.(1) The Cabinet Secretary responsible for matters relating to public investments shall prepare and submit to the National Assembly, not later than four months after the end of each financial year, a consolidated report summarising the extent of national government involvement or investment in, or funding of, all state corporations and government-linked corporations for that financial year.

(2) The report under subsection (1) shall include information on— (a) the date of incorporation and objects of the corporation; (b) the amount of national government shareholding, directly or indirectly, in the state corporation; (c) any changes in the shareholding of the state corporation during the financial year; (d) the amount of any funding in the form of grants or subsidies provided by the national government to the state corporation or government-linked state corporations, excluding profit- making state corporation, during the financial year; (e) the amount of any loans made by the national government to the state corporation, and the amount of any guarantees issued by the national government in respect of the state corporation, during the financial year; (f) the cumulative amount of undischarged loans and The Public Finance Management Act, 2012 99 guarantees in respect of the state corporation; (g) the amount of the profit or loss of the state corporation for the financial year; (h) the amount of any revenue received by the national government from the state corporation during the financial year, including dividends, interest and proceeds from any divestiture of assets of the state corporation; (i) the amount of payments made, or losses incurred, by the national government to meet contingent liabilities as a result of loans or guarantees during the financial year, including payments made in respect of guarantees, loan write-offs or waiver of interest on loans; and (j) an assessment of the financial and related non- financial performance of the state corporation for the financial year.

(3) Once every three years, the Cabinet Secretary responsible for matters relating to public investments shall prepare a report on the assessment of the national government’s continued involvement or investment in, or funding of, the state corporation or government linked corporation. (4) The Cabinet Secretary responsible for matters relating to public investments shall submit copies of the reports referred to in subsections (2) and (3) to the Cabinet Secretary, the Controller of Budget, the Commission on Revenue Allocation and to the Auditor-General. Parliament may extend time limit. 90. Any House of Parliament may, by resolution, extend the time limit, other than a time limit set in the Constitution, for submitting a statement or other document required to be submitted to it under this Act. Definitions for purposes of sections 86, 87, 88 and 89.

91. For the purposes of sections 86,87, 88 and 89— (a) “government-linked corporation” means a corporation in which the national government or national government entity is a shareholder with less than fifty percent of the share capital of the corporation; and (b) “invest” means any form of funding provided to a state corporation, including providing share capital, loans, guarantees, grants or subsidies. The Public Finance Management Act, 2012 100 Resolution of operational and financial problems of national government entities and county governments Responsibility for avoiding, identifying and resolving financial problems.