KENYA TOWA Project

Governance and Anticorruption

Financial Management Issues

Fiduciary Forum 2008

Kenya TOWA – Financial Management

FM Safeguards – Levels of intervention

Institutional Oversight Management Community level

Kenya TOWA – Financial Management

Level 1 - Risk Management and Oversight Arrangements

Institutional Risk Management Policy Framework

Council Audit Committee Council Finance Committee Revised Independent audit arrangements

Council functions are independent, appropriately staffed and mandated

Kenya TOWA – Financial Management

Level 1- Risk Management and Oversight Arrangements

Functions of Council Audit Committee include:

Overseeing the development and effectiveness of Risk Management Policy Framework

Monitoring implementation of audit and review recommendations

Overseeing internal audit function

Kenya TOWA – Financial Management

Level 1- Risk Management and Oversight Arrangements

Functions of Council Finance Committee include:

Reviewing and approving Quarterly Interim Unaudited Financial Statements – including expenditure, budgets and implementation progress

Monitoring overall performance of the financial management function

Kenya TOWA – Financial Management

Level 1- Independent Audit Arrangements

Responsibility vested in the National Audit Office

Strict adherence to reporting deadlines – 6 months after year end

Arrangements for national coverage negotiated

Development of a risk-based approach

Kenya TOWA – Financial Management

Level 2 - Management

Implementing the Institutional Risk Management Policy Framework

Effective Internal Audit Function Outsourced Financial Management

Agent – responsible for all disbursements

Management oversight of the FMA well defined

Performance contracts

Kenya TOWA – Financial Management

Level 2 - Management

Arrangements for Internal Audit Effectiveness:

Periodic institutional risk assessment Development and implementation of risk based

internal audit processes Technical competence and resourced Sufficiently covers all spending units Report at an appropriately high level and

effectively monitor implementation of recommendations

Kenya TOWA – Financial Management

Level 3 - Community

Public Disclosure and Anti Corruption Initiatives include:

Physical structures to facilitate disclosure of public information

Arrangements for receiving and effectively responding to public complaints

Assurance of action against reported incidences

Thank You

For further information visit the TOWA project website