ASSOCIATION OFASSOCIATION OF FINNISH LOCAL FINNISH LOCAL AND REGIONAL AUTHORITIES AND REGIONAL AUTHORITIES

(AFLRA)(AFLRA)

NORTH-SOUTH LOCAL NORTH-SOUTH LOCAL GOVERNMENT CO-OPERATION GOVERNMENT CO-OPERATION

PROGRAMMEPROGRAMME

ASSOCIATION OFASSOCIATION OF FINNISH LOCAL FINNISH LOCAL AND REGIONAL AUTHORITIES AND REGIONAL AUTHORITIES

(AFLRA)(AFLRA)

NORTH-SOUTH LOCAL NORTH-SOUTH LOCAL GOVERNMENT CO-OPERATION GOVERNMENT CO-OPERATION

PROGRAMMEPROGRAMME

BASIC COURSEBASIC COURSE

17-18 MARCH 2009 17-18 MARCH 2009

Financial Financial Administration Administration

Financial Financial Administration Administration

Henry M. WaweruHenry M. Waweru

Town Treasurer Town Treasurer

Municipal Council of NyahururuMunicipal Council of Nyahururu

GENERAL MANAGEMENT OF THE COUNCIL

FINANCES

• SOURCES OF THE COUNCIL REVENUE: - Local revenue- Revenue from central government

Expenditure- Council officers prepare the budget - Councilors deliberates and approves with or

without amendments- Minister for Local Government approves the

budget

• Implementation of the approved budget by the council officers

MANAGEMENT OF THE NORTH SOUTH CO-OPERTION

STEERING COMMITTEE

• Proposal writing which is jointly done by North and Southern Partners

• Budget is based on activities to be undertaken• Submission of the budget to AFLRA• Approval of final budget by AFLRA • Adjustments done as per the approved budget • Disbursement of funds done

MANAGEMENT AT THE COORDINATION

COMMITTEE LEVEL

• Approval of the mini budget from the components

• Procurement of good and services where Government Of Kenya procurement laws are strictly adhered to.

• Commission activities

COMPONENT COMMITTEE LEVEL

• Work plan prepared• Mini budgets based on the work

plans prepared as per activities and approved budget

• Submission of mini-budgets to overall local coordinating committee for approval

• Assigning of duties: role of councilor, officers and the stakeholders

PROJECT LEVEL

• Stakeholders appointed members of the committee for various components

• Stakeholders supervise activities on the ground

• Consultation with the stakeholders • Report on work done to component

committee

coordinatorROLE OF THE COORDINATOR• Participates in all the components

budget planning sessions• Channels request for funding to the

Town Treasurer for funding as per the components mini budgets

• Coordinates release and use of funds between the Town Treasurer and the components

ACCOUNTING AND REPORTING

• The Southern partners prepares the Financial report.

• The report is then forwarded to the external Auditors for audit

• It is then forwarded to the Northern partners for inclusion in the year report

RECONCILIATION BETWEEN FINLAND AND

KENYAN PARTNERS

• Kenya accounting year runs from 1st July to 30th June

• Finnish partner accounting year runs from 1st January to 31st December

CHALLENGES• Finnish and Kenyan financial years

are different• Timing of disbursement• Economic factors affecting initial

budget proposals• Exchange rate variations

LESSONS LEARNT /RECOMMENDATIONS

• Appreciation of public-private partnership

• Timely preparation of financial reports and schedules

THANKYOU