(4) A county government entity shall ensure that the arrangements for conducting internal audits in respect of the entity are in accordance with international best practices for internal auditing. (5) A county government entity shall establish an internal auditing committee whose composition and functions are to be prescribed by the regulations. Disciplinary measures against public and accounting officers. 156. (1) If an accounting officer reasonably believes that a public officer employed by a county government entity has engaged in improper conduct in relation to the resources of the entity, the accounting officer shall— (a) take appropriate measures to discipline the public officer in accordance with regulations; or (b) refer the matter to be dealt in terms of the statutory and other conditions of employment applicable to The Public Finance Management Act, 2012 152 that public officer.

(2) If the County Executive Committee Member for finance reasonably believes that an accounting officer has engaged in improper conduct within the meaning of subsection (4), the County Executive Committee member for finance shall— (a) take appropriate measures to address the matter in accordance with laid down procedures; or (b) refer the matter to be dealt with in terms of the statutory and other conditions of employment applicable to that public officer. (3) The measures referred to in subsection (2) (a) include the County Executive Committee member for finance revoking the designation as accounting officer.

(4) For the purposes of this section, a public officer or accounting officer engages in improper conduct if the officer— (a) contravenes or fails to comply with this Act or any regulation in force; (b) undermines any financial management procedures or controls; (c) makes or permits an expenditure that is unlawful or has not been properly authorised by the entity concerned; or (d) fails without reasonable cause to pay eligible and approved bills promptly in circumstances where funds are provided for. (5) Disciplinary measures under this section may not be taken against a public officer or accounting officer under subsection (1) (a) or (2) (a) unless the officer has been given an opportunity to be heard in relation to the alleged improper conduct concerned. Receivers and collectors of county government revenue Designation of receivers of county government revenue.

157. (1) The County Executive Committee member for finance shall, in writing, designate persons to be responsible for collecting, receiving and accounting for such county government revenue as the County Executive Committee member for finance may specify in their letters of designation. (2) A receiver of county government revenue is responsible to the County Executive Committee member for The Public Finance Management Act, 2012 153 finance for ensuring that the revenue for which the receiver is responsible is collected or recovered, and is accounted for. Receiver may authorise public officer to be collector of revenue.

158. (1) A receiver of revenue for a county government may authorise any public officer employed by that county government or any of its entities to be a collector of revenue for the purpose of collecting revenue for that county government and remitting it to the receiver. (2) Any other public officer, other than a receiver of revenue or collector of revenue for a county government, who collects revenue for that Government shall, not later than three days after receiving it, deliver the revenue to a receiver or collector of revenue for that county government.

(3) A receiver of revenue for a county government shall provide quarterly statements to the County Treasury with copies to the National Treasury and the Commission on Revenue Allocation. Powers of County Executive Committee member for finance to waive or vary tax, fees or charges. 159. (1) The County Executive Committee member for finance may waive a county tax, fee or charge imposed by the county government and its entities in accordance with criteria prescribed in regulations provided that— (a) the County Treasury shall maintain a public record of each waiver together with the reason for the waiver and report on each waiver in accordance with

Section 164 of this Act; (b) a State Officer may not be excluded from payment of a tax, fee or charge by reason of the office of the State Officer or the nature of work of the State Officer; and (c) such waiver or variation has been authorised by an Act of Parliament or county legislation. Kenya Revenue Authority may be appointed collector. Cap. 469. 160. The County Executive Committee member for finance may authorise the Kenya Revenue Authority or appoint a collection agent to be a collector of county government revenue for the purposes of this Part on such terms and conditions as may be agreed in writing in accordance with regulations. County government revenue raising measures to conform to Article 209(5) of the Constitution.

161. In imposing a tax or other revenue raising measure, a county government shall ensure that the tax or measure conforms to Article 209(5) of the Constitution and any other legislation, and before imposing any tax or revenue raising measures under this Article, shall seek views of the Cabinet Secretary and the Commission on Revenue The Public Finance Management Act, 2012 154 Allocation. Obligations of County Public Officers Obligations of public officers with respect to county government resources. 162. (1) Every public officer employed in or by the county government shall comply with the Constitution and all laws relating to conduct of public officers when carrying out a responsibility imposed, or exercising a power conferred, by this Act.

(2) Every public officer shall also— (a) comply with the provisions of this Act so far as they are applicable to the officer; (b) ensure that the resources within the officer’s area of responsibility are used in a way that— (i) is lawful and authorised; and (ii) effective, efficient, economical and transparent; and (c) within the officer’s area of responsibility— (i) ensure that adequate arrangements are made for the proper use, custody, safeguarding and maintenance of public property; and (ii) use the officer’s best efforts to prevent any damage from being done to the financial interests of the county government. Financial reporting by county government entities County government to prepare annual financial statement.

163. (1) At the end of each financial year, the County Treasury shall, for the county government, consolidate the annual financial statements in respect of all the county government entities in formats to be prescribed by the Accounting Standards Board. (2) The County Treasury shall include in the consolidated financial statements— (a) a statement of all money paid into and paid out of the County Exchequer Account; (b) a summary of— (i) the appropriation accounts and statements prepared by accounting officers under section 164, and (ii) the statements prepared by receivers of revenue under section 165; (c) a statement of payments ,if any, made out of the County Exchequer Account that are authorised by The Public Finance Management Act, 2012 155 legislation other than an Appropriation Act; (d) a statement of the total amount of debt of the county government that is outstanding at the end of the financial year; (e) a statement of the debt guaranteed by the national government at the end of the financial year; (f) such other statements as the county assembly may require; and (g) a statement on the summary of the accounts from the county assembly.