111. (1) The County Executive Committee member for finance shall administer the county government Emergency Fund for the county government in accordance with a framework and criteria approved by the county assembly . (2) The County Executive Committee member for finance shall establish and maintain a separate account into which all money appropriated to the Emergency Fund shall be paid. The Public Finance Management Act, 2012 117 Power of County Executive Committee member to make payments from Emergency Fund. 112. (1) Subject to section 113, the County Executive Committee member for finance may make payments from the county government’s Emergency Fund only if he or she is satisfied that there is an urgent and unforeseen need for expenditure for which there is no legislative authority and shall be in accordance with operational guidelines made under regulations approved by Parliament and the law relating to disaster management.

(2) For the purposes of subsection (1), there is an urgent and unforeseen event for expenditure if the County Executive Committee member for finance, guided by regulations and relevant laws, establishes that – (a) payment not budgeted for cannot be delayed until a later financial year without harming the general public interest; (b) payment is meant to alleviate the damage, loss, hardship or suffering which may be caused directly by the event; and (c) the damage caused by the event is on a small scale and limited to the county.

(3) For the purposes of subsection(1), the unforeseen event is one which – (a) threatens damage to human life or welfare; or (b) threatens damage to the environment. Limitation on power of County Executive Committee member for finance to make payments from Emergency Fund. 113. The County Executive Committee member for finance may not, during a financial year, make a payment from the Emergency Fund under section 112 exceeding two per cent of the total county government revenue as shown in that county government’s audited financial statements for the previous financial year, except for the first year. County Executive Committee member for finance to seek approval for payments from Emergency Fund.

114. (1) The County Executive Committee member for finance shall seek approval of the county assembly within two months after payment is made from the Emergency Fund. (2) If the county assembly is not sitting during the period referred to in subsection (1), or soon thereafter, the County The Public Finance Management Act, 2012 118 Executive Committee member for finance shall seek the approval for the payment within fourteen days after the County Assembly next sits. (3) As soon as practicable after the county assembly has approved the payment, the County Executive Committee member for finance shall cause a draft of the appropriation Bill to be introduced in the county assembly for the appropriation of the money paid and for the replenishment of the county government’s Emergency Fund to the extent of the amount of the payment. County Treasury to submit a report to Auditor-General in respect to Emergency Fund.

115. (1) Where an Emergency Fund has been established for a county government in accordance with section 110, the County Treasury shall, not later than three months after the end of each financial year, prepare and submit to the Auditor-General, financial statements in respect of the Emergency Fund for that year. (2) The County Treasury shall include in the financial statements made under subsection (1) - (a) the date and amount of each payment made from that Fund; (b) the person to whom the payment was made; (c) the purpose for which the payment was made; (d) whether the person to whom the payment was made has spent the money for that purpose, and a statement made to that effect; (e) if the person to whom the payment has been made has not yet spent the money for that purpose, a statement specifying the reasons for not having done so; and (f) a statement indicating how the payment conforms to

section 112 of this Act. Power to establish other county public funds. 116. (1) A County Executive Committee member for finance may establish other public funds with the approval of the County Executive Committee and the county assembly. The Public Finance Management Act, 2012 119 (2) For every county public fund established, the County Executive Committee member for finance shall designate a person responsible for administering that fund. (3) The administrator of a county public fund shall ensure that the earnings of, or accruals to a county public fund are retained in the fund, unless the County Executive Committee member for finance directs otherwise.

(4) The administrator of a county public fund shall ensure that money held in the fund, including any earnings or accruals referred to in subsection (3) is spent only for the purposes for which the fund is established. (5) The County Executive Committee member for finance may wind up a county public fund with the approval of the county assembly. (6) On the winding up of a county public fund— (a) the administrator of the fund shall pay any amount remaining in the fund into the County Exchequer Account; and (b) the County Executive Committee member for finance shall, with the approval of the county assembly, pay any deficit in the fund from the County Exchequer Account.

(7) The administrator of a county public fund shall— (a) prepare accounts for the fund for each financial year; (b) not later than three months after the end of each financial year, submit financial statements relating to those accounts to the Auditor-General; and The Public Finance Management Act, 2012 120 (c) present the financial statements to the county assembly. (8) The administrator of a county public fund shall ensure that the accounts for the fund and the annual financial statements relating to those accounts comply with the accounting standards prescribed and published by the Accounting Standards Board from time to time.

(9) Regulations may provide for the establishment, management, operation or winding-up of county public funds under this section. (10) This section does not apply to the County Revenue Fund established under section 109 of this Act. (11) The funds and usage of money through the funds shall be published and publicised. (12) In this section— “administrator”, in relation to a county public fund, means a person designated by the County Executive Committee member for finance under subsection (2) to administer the fund; “County public fund” means a public fund established under subsection (1). Responsibilities of county government with respect to the County Budget Process County Treasury to prepare County Fiscal Strategy Paper

117. (1) The County Treasury shall prepare and submit to the County Executive Committee the County Fiscal Strategy Paper for approval and the County Treasury shall submit the approved Fiscal Strategy Paper to the county assembly, by the 28th February of each year. (2) The County Treasury shall align its County Fiscal Strategy Paper with the national objectives in the Budget Policy Statement. The Public Finance Management Act, 2012 121 (3) In preparing the County Fiscal Strategy Paper, the County Treasury shall specify the broad strategic priorities and policy goals that will guide the county government in preparing its budget for the coming financial year and over the medium term.