explanations for the actions taken to prevent similar conduct in future; and (r) carry out such other responsibilities as may be The Public Finance Management Act, 2012 148 specified in regulations by the County Executive Committee member for finance. (3) Not later than three months after the county assembly has adopted a report by a committee of the county assembly with respect to a report submitted by the Controller of Budget under Article 228(6) of the Constitution, an accounting officer shall, for each entity for which the officer is designated— (a) prepare a report on actions taken by the entity to implement any recommendations made in the committee’s report as adopted by the county assembly; and (b) submit the report to the county assembly with a copy to the County Treasury.

(4) Not later than one month after receiving a report by an accounting officer under subsection (3), the County Treasury shall submit to the county assembly the accounting officer’s report and any comments on the report by the County Treasury. (5) The report referred to in subsection (3) shall be published and publicised. Accounting officer of a county government entity may write off any loss. 150. (1) An accounting officer for a county government entity may write off any loss not exceeding an amount, and in circumstances prescribed by regulations for the purposes of this section.

(2) An accounting officer for a county government entity, may with the approval of the County Executive Committee member for finance, write off a loss exceeding the amount referred to in subsection (1) but not exceeding a further amount, and in circumstances prescribed by the regulations approved by Parliament. (3) The County Executive Committee member for finance may with the approval of County Executive Committee authorise an accounting officer to write off a loss exceeding the further amount referred to in subsection (2). (4) An accounting officer for a county government entity shall maintain a record of any losses that are written off during a financial year and shall include the record in the entity’s financial statements for that year.

(5) Any loan write off is to be done in accordance with The Public Finance Management Act, 2012 149 regulations approved by Parliament. Spending authority of accounting officer. 151. If a county government entity has expenditures that are charged on the County Revenue Fund under the Constitution or an Act of Parliament or county legislation, the accounting officer who has responsibility for that entity has the authority to spend the money in accordance with the purposes specified in legislation without an appropriation. Power of accounting officers for county entities to make cash advances.

152. (1) An accounting officer for a county government entity may authorise payment of cash advances to public officers employed in the entity to be used to enable those officers to make payments for the entity or in the course of their duties. (2) The power to authorise cash advances is subject to any limitations imposed by the regulations. (3) A public officer to whom a cash advance is made shall account for the use of the advance within a reasonable time. (4) A public officer shall return the balance of the cash advance together with signed supporting documents for the cash expended in accordance with any requirement set out in any of the following - (a) the documents used to apply for or authorise the advance; (b) any regulation prescribed for the purpose of this section; or (c) a written notice given to the officer by the accounting officer.

(5) If a public officer to whom a cash advance has been made under subsection (1) fails to account for the use of the advance, or fails to return it as required by subsection (4)— (a) the amount of the advance not accounted for or not returned becomes a debt owed by the officer; (b) the debt becomes subject to the payment of interest at a rate prescribed by the regulations made for the purpose of this subsection; and (c) the debt, including the interest on it, is recoverable by that entity by making a deduction from any salary or other amount that is payable to the officer. Accounting officer to be responsible for managing assets and

153. (1) The accounting officer for a county Government entity— The Public Finance Management Act, 2012 150 liabilities of county government entity. (a) is responsible for the management of the entity’s assets and liabilities; and (b) shall manage those assets in such a way as to ensure that the county government entity achieves value for money in acquiring, using or disposing of those assets. (2) The accounting officer for a county government entity shall dispose of assets only in terms of an Act of Parliament pursuant to Article 227 of the Constitution and shall ensure that the proceeds from all asset disposals are credited into a bank account of the entity. Limited power of accounting officer to reallocate appropriated funds.

154. (1) An accounting officer shall not authorise the transfer of an amount that is appropriated— (a) for transfer to another county government entity or person; (b) for capital expenditure except to defray other capital expenditure; or (c) for wages to non-wage expenditures. (2) An accounting officer for a county government entity may reallocate funds between programs, or between Sub- Votes, in the budget for a financial year, but only if— (a) provisions made in the budget of a program or Sub-Vote are available and are unlikely to be used; (b) a request for the reallocation has been made to the County Treasury explaining the reasons for the reallocation and the County Treasury has approved the request; and (c) the total of all reallocations made to or from a program or Sub-Vote does not exceed ten percent of the total expenditure approved for that program or Sub-Vote for that year.

(3) Regulations approved by the county assembly may prescribe requirements for the reallocation of funds within Sub-votes or programs. County government entity to maintain internal auditing arrangements. 155. (1) A county government entity shall ensure that it complies with this Act and— (a) has appropriate arrangements for conducting internal audit according to the guidelines issued by the Accounting Standards Board; and (b) if any regulations are in force under subsection (2), The Public Finance Management Act, 2012 151 those regulations are complied with. (2) Regulations may prescribe requirements to be complied with in conducting any audits.

(3) The arrangements for the conduct of internal auditing for a county government entity include— (a) reviewing the governance mechanisms of the entity and mechanisms for transparency and accountability with regard to the finances and assets of the entity; (b) conducting risk-based, value-for-money and systems audits aimed at strengthening internal control mechanisms that could have an impact on achievement of the strategic objectives of the entity; (c) verifying the existence of assets administered by the entity and ensuring that there are proper safeguards for their protection; (d) providing assurance that appropriate institutional policies and procedures and good business practices are followed by the entity; and (e) evaluating the adequacy and reliability of information available to management for making decisions with regard to the entity and its operations.