Masha ICPAK Strategic Plannign and Budget

STRATEGIC PLANNING AND BUDGETING:
• Linkages in Policy, Planning and Budgeting

• Budgeting and Budgetary Control
Presentation by:
CPA Stephen Masha
Deputy Controller of Budget
Thursday, 3rd December, 2020
Uphold public interest

Outline
1. Getting to know OCOB

2. Budgeting Process & Road Map
3. Institutions in the Budgeting Process
4. Linkages and Budgetary Control
5. Enhancing Effectiveness
6. Conclusion
GETTING TO KNOW OCOB
Getting to know OCOB
1. Oversight role (Article 228 (4))

2. Controlling role (Article 228 (5))
3. Reporting role (Article 228 (6))
4. Advisory role (Article 225 (7))
5. Investigation role (Article 252 (1) (a))
6. Arbitration/mediation role (Article 252 (1) (b))
7. Public Sensitization role (Article 35 & PFMA, S 39 (8))
8. Enforce budget ceilings (Section 5 of COB Act 2016)
BUDGETING PROCESS & ROAD MAP
Strategic Planning & Budgeting
• Any business or Government needs to have both a strategic plan

and a budget. The strategic plan lays out the direction and goals
of businesses and guidelines for actions to achieve those goals,
while the budget looks at the money needed to support
achieving those goals.
• Budgeting plays a vital role in the strategic planning of
organizations by ensuring that appropriate financial and
operational activities are performed efficiently.
• Budgeting is the strongest part of financial management
Planning, Policy, Budget
Documents
✓ Vision 2030 – the long term development plan (the country’s
blueprint)
✓ Medium Term Plan 2018-2022 – 5 year implementation plan
✓ Sectoral Policies
✓ Sustainable Development Goals (SGDs)
✓ Budget Policy Statement
✓ County Integrated Development Plans (Section 104, CGA, 2012).
✓ Annual Development Plans (Section 126 (4) PFMA, 2012)
✓ County Budget Review and Outlook Paper (C-BROP) (Section 118,
PFMA).
✓ County Fiscal Strategy Paper (C-FSP) (Section 117, PFMA)
✓ County Budget Estimates & National Government Estimates
INSTITUTIONS IN THE BUDGETING
PROCESS
Budgeting Cycle
Formulation
National /County Treasuries
Cabinet Secretary for Finance
County Executive Committee
County Budget and Economic
Forum
CRA
Public
Monitoring,
Reporting and
Accounting Approval
Controller of Budget National/County Assembly
Auditor General President/Governor
National/County Assemblies
National/ County Treasuries
Public
Implementation
Controller of Budget
National /County Treasuries
National/ County
government entities
Budget Formulation
▪ Section 125 (1) indicates stages of the budget process
for the county governments in any financial year:
• Developing a CIDP which should include both long term and
medium term planning;
• Preparing a County Fiscal Strategy Paper (CFSP) which
specifies the broad strategic priorities and policy goals i.e.
plans for raising and spending money over the medium term
• Making an overall estimation of the county government’s
revenues and expenditures;
• Preparing budget estimates and submitting them to the
county assembly;
Approval Stage
▪ Approving of the estimates by the county assembly;

▪ Enacting an appropriation law and any other laws
required to implement the county government’s
budget, e.g. Approval of Fund Regulations.
▪ Assent and warrant by the Governor.
▪ Public participation is mandatory in the budget-

making process.
Budget Execution
▪ County government entities prepare annual cash flow
forecasts which are submitted to county treasuries with
copies to Controller of Budget by June 15.
▪ County government entities requisition for funds
▪ County Treasuries make requisitions to the COB for the

withdrawal of funds from the CRF (PFM Act, Section 109
(6))
Budget Execution Cont’d
▪ County government entities utilize the funds according to

their budgets and work plans
▪ County government entities submit quarterly reports on
financial and non-financial performance - revenue and
expenditure reports to the COB and county treasury.
Budget Monitoring
▪ Involves the collection and analysis of data about budget
activities.
▪ The data should allow budget implementers to keep track
of budget activities to determine whether budget objectives
are being achieved and make whatever changes that are
necessary to improve budget performance.
▪ The main purpose of monitoring is to ensure efficient and
effective program/project implementation.
▪ It provides timely information on the work planned and
done to all the stakeholders.
▪ The Primary concern of monitoring is the delivery process of
ensuring that inputs, through activities, are transformed into
outputs and outcomes.
Budgeting Monitoring…..what
does OCOB do?
▪ OCOB monitors implementation of both recurrent and
development budgets
– Expenditures – OCOB analyzes expenditures from quarterly
and annual reports, and reports to the National/County
Assemblies and the Senate
– Development projects – OCOB undertakes physical monitoring
of selected projects/programmes
▪ During monitoring of funds any sign of mismanagement of funds
is brought to the attention of other investigating agencies for
further investigation.
Institutions in the Budgeting
Process
• Formulation
– The National Treasury – Prepare the BROP, BPS, Budget
Estimates
– National Assembly – Approves the DRB, CARB, Estimates
– Senate – Approves the DRB, CARB
– CRA – Vertical & Horizontal revenue sharing
formula
– County Treasuries – Prepare the CIDPs, ADPs, CFSPs,
Budget Estimates
– The Public – Participation and priority areas
• Approval
– National/County Assemblies – Discuss the Budget estimates
– Presidency/Governor’s Office Holder – Assent to Appropriations Bills
Institutions in the Budgeting
Process Cont’d.
• Execution
– Controller of Budget – Authorizes withdraw of the budgeted funds
– Oversight the implementation of the budget
– Report on the implementation of the Budgets
– National Assembly – Oversight the implementation of the budget

– Senate – Oversight the implementation of the budget
– County Treasuries – Oversight the implementation of the budget
– Spending Entities -Utilization of the approved budgets
• Reporting & Auditing
– Controller of Budget – Report on the implementation of the Budgets
– Auditor General- Audit the utilization of budgets
LINKAGES AND BUDGETARY
CONTROL
Review of Planning and Budget
Documents
❑ Check for compliance with the law e.g. percentage of
budget allocated to recurrent vs development, PE costs.
❑ Reasonableness of Revenue estimates
❑ To check inclusion of the public views and opinions
(Public participation)
❑ Adherence to BPS ceilings –To contain unnecessary
spending
❑ To ensure that the planning is guided by the overarching
planning framework of the Country e.g. Vision 2030,
MTPs, Big Four Agenda and other applicable plans
❑ To provide any other relevant advice on budget process
ENHANCING EFFECTIVENESS
Enhancing Effectiveness
We can ensure efficient and effective budgeting process by:
▪ Establishing strong county treasuries to ensure proper
management, control and accounting of county financial resources
(PFMA 104)
▪ Maintaining proper books of accounts (PFMA 119(5))
▪ Establishing robust financial management information systems
(PFMA 12(1)(e)(j))
▪ County governments should establish appropriate internal audit
arrangements (strong internal audit departments and internal audit
committees) (PFMA 155)
▪ The budget making process must be understood by all players.
▪ County Assemblies to regularly review reports from Internal Audit
Committees, Auditor General and Controller of Budget and take
corrective action.
Enhancing Effectiveness Cont’d.
▪ Effectiveness of CBEF
▪ Enhancing effectiveness of the internal audit
function
▪ Capacity Building, particularly of Treasury
staff
▪ Effective public participation
▪ Effective development project monitoring
units
COVID-19 Considerations
• The pandemic has affected and will likely continue to affect world
economies for years to come. Having plans, prioritizing spending,
and using resources efficiently will be key for future financial
stability.
• Both the National & County Government(s) have been forced to
redirect/divert planned resources from various sectors and
reallocate them to the Health Sector.
• A conditional grant to COVID-19 was established by the National
government and development partners which was to utilized by the
Counties.
• Due to these reallocations some sectors have been affected resulting
to reduced personnel (due to social distancing/infections/loss of
lives) and low or no absorption of development budgets.
CONCLUSION
Conclusion
There are many players involved in the
public sector planning, budgeting and
budget implementation. Effective
budgeting will therefore depend on
collaboration among the players. Capacity
building is particularly important in
ensuring success in the processes.
THANK YOU.

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STRATEGIC PLANNING AND BUDGETING:

• Linkages in Policy, Planning and Budgeting

Uphold public interest

1. Getting to know OCOB

1. Oversight role (Article 228 (4))

• Any business or Government needs to have both a strategic plan

▪ Approving of the estimates by the county assembly;

▪ Public participation is mandatory in the budget-

▪ County government entities requisition for funds

▪ County Treasuries make requisitions to the COB for the

▪ County government entities utilize the funds according to

– National Assembly – Oversight the implementation of the budget

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