COUNTY GOVERNMENT OF WEST POKOT REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDING JUNE 30, 2018

Transcription

1 COUNTY GOVERNMENT OF WEST POKOT REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDING JUNE 30, 2018 Prepared in accordance with the Cash Basis of Accounting Method under the International Public Sector Accounting Standards (IPSAS)

2 I. KEY COUNTY GOVERNMENT OF WEST POKOT INFORMATION AND MANAGEMENT... 2 II. FORWARD III. STATEMENT OF COUNTY GOVERNMENT OF WEST POKOT MANAGEMENT RESPONSIBILITIES IV. REPORT OF THE INDEPENDENT AUDITORS ON THE COUNTY GOVERNMENT OF WEST POKOT V. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED JUNE 30, 2017Error! Bookmark n VI. STATEMENT OF ASSETS AND LIABILITIES AS AT JUNE 30, 2017Error! Bookmark not defined. VII. SUMMARY STATEMENT OF APPROPRIATION: RECURRENT & DEVELOPMENT COMBINED.... Error! Bookmark not defined. VIII. SUMMARY STATEMENT OF APPROPRIATION: RECURRENT... Error! Bookmark not defined. IX. SUMMARY STATEMENT OF APPROPRIATION: DEVELOPMENT. Error! Bookmark not defined. X. SIGNIFICANT ACCOUNTING POLICIES... Error! Bookmark not defined. XI. NOTES TO THE FINANCIAL STATEMENTS... Error! Bookmark not defined. ANNEX ON FIXED ASSETS... Error! Bookmark not defined. 1

3 I. KEY COUNTY GOVERNMENT OF WEST POKOT INFORMATION AND MANAGEMENT (a) Background information The County Government of West Pokot is established by Article 176 of the Constitution of Kenya 2010 which provides that there shall be a county government for each county consisting of the county assembly and county executive. (b) Key Management The County Governor and Deputy Governor are the Chief Executive Officer and Deputy Chief Executive Officer of the county respectively. The Speaker of the County Assembly is the leader of the legislative arm of the county government. The following are the names of the leaders of the County Government (Executive) of West Pokot. S/No Leadership Position Names of Leaders 1 County Governor H.E Prof. John K. Lonyangapuo 2. Deputy Governor H.E Dr. Nicholas Atudonyang 3. County Secretary Dr. Mike Parklea 4. County Executive Committee 1. Francis Kitelauyan 2. Luka Chepelion 3. Jackson Yaralima 4. Christine Apokoreng 5. Geoffrey Lipale 6. Joel Arumonyang 7. Emily Chepoghisyo 8. Ruth Kisabit 9. Augustine Monges (c) Fiduciary Management The County Treasury is generally responsible for fiduciary management of financial resources of the County Government of West Pokot to be utilized for the benefit of the people of West Pokot County. The Public Finance Management Act, 2012 manadates the County Executive Committee member to designate accounting officers from county officers who are generally responsible for the administration of respective Departments. During 2017/18 financial year, Mr. Francis Kitelauyan was the County Executive Committee Member for Finance and Economic Planning. However, Mr. Luka Chepelion replaced him in a reshuffle made by the County Governor on 21 st September

4 The following represents the list of Accounting Officers for various county Departments and entities as at the time of preparing these financial statements (after reshuffle). No Department/Entity Names 1. Office of the Governor Ismail Maalim Principal Administrative Secretary 2. Finance Richard Koech, CPA 3. Economic Planning Samson Nyangaluk 4. Agriculture and Irrigation Jonathan Karita 5. Pastoral Economy & Fisheries Isaiah Pendou 6. Public Service & ICT Wilson Ngoroko 7. Devolved Units Musa Anupa 8. Education Simon Kodomuk 9. Technical Training Betty Chedotum 10. Housing and Urban Dev. Elijah Lopuke 11. Lands and Physical Planning Timothy Lomulen 12. Medical Services Edna Krop 13. Preventive and Promotive Health Peter Adoki 14. Roads and Transport John Karamunya 15. Public Works Thomas Lorwata 16. Water Milka Psiwa 17. Environment & Natural Resources Alex Lokimoi 18. Trade & Industrialization Ibrahim Longolomoi 19. Investment & Cooperative Dev. Linus Loshalima 20. Youth and Sports Solomon Merireng 21. Culture, Wildlife & Tourism Mary Ngoriakes 22. County Public Service Board Carolyne chizupo (d) Fiduciary Oversight Arrangements The County Government of West Pokot is subject to adequate oversight from various institutions mandated with that responsibility. The following are fiduciary oversight arrangements application to the county government. i. The County Assembly of West Pokot Article 185 Clause 3 provides that a county assembly, while respecting the principle of the separation of powers, may exercise oversight over the county executive committee and any other county executive organs. The oversight role of the county assembly is exercised directly by all members of the county assembly and through county assembly committees. The following are the important committees responsible for oversight in the county assembly: Public Accounts and Investment Committee Sectoral Committees 3

5 Finance and Planning Committee Implementation Committee House Business Committee ii. Controller of Budget Clause 4 of Article 228 of the Constitution of Kenya provides that the Controller of Budget shall oversee the implementation of the budgets of the national and county governments by authorizing from public funds. The Controller of Budget is also mandated to inquire into any matter which may be brought to her attention or which she considers necessary in the process of budget implementation. iii. The Senate The Senate by virtue of its constitutional mandate has secondary oversight responsibility over county governments. The County Public Accounts and Investment Committee of the Senate has been directly involved in oversight over county governments. iv. National Government agencies conditional allocations The national government allocates funds to counties with certain conditions on utilization and accounting. The national government ministries and agencies with responsibility over these conditional allocations are often involved in oversight on the utilization and implementation of projects and programmes for which the funds are allocated. The following are some of the conditional allocations applicable to 2017/18 financial year: Road Maintenance Fuel Levy Fund Compensation for User Fees foregone Rehabilitation of Youth Polytechnics Transforming Health Systems Universal Healthcare (World BanK) (e) County Government of West Pokot Headquarters P.O. Box Office of the Governor Off Kapenguria County Hospital Road Kapenguria, KENYA (f) County Government of West Pokot Contacts Telephone: (254) info@westpokot.go.ke Website: (g) County Government of West Pokot Bankers 1. Central Bank of Kenya Haile Selassie Avenue P.O. Box City Square Nairobi, Kenya 4

6 2. Kenya Commercial Bank Kapenguria Branch, P.O Box KAPENGURIA 3. Equity bank Kapenguria Branch P.O Box KAPENGURIA 4. Cooperative Bank of Kenya Ltd Kitale Branch P.O Box KITALE (h) Independent Auditors Auditor-General Office of the Auditor-General Anniversary Towers, University Way P.O. Box Nairobi, Kenya (i) Principal Legal Adviser The Attorney General State Law Office Harambee Avenue P.O. Box City Square Nairobi, Kenya 5

7 II. FOREWARD. The financial statements of the County Government of West Pokot have been prepared in compliance with section 164 of the Public Finance Management Act, 2012 which requires that the accounting officer of a county government entity shall prepare financial statements in respect of the entity in formats to be prescribed by the Accounting Standards Board. The Act also requires the financial statements to be submitted to the Auditor-General within three months after the end of the financial year. The following paragraphs provide a highlight of the budget performance, outputs and outcomes, flagship projects and other achievements of the county government during the financial year. a) Budget Performance Resource Envelope PROJECTED REVENUE FY 2016/17 Supplementary 1. National Revenue Estimates Kshs FY 2017/18 Approved Estimates (Kshs) FY 2017/18 Supplementary II Estimates (Kshs a) Equitable Share 4,654,529,143 4,726,351,328 4,741,400, b) Equalization Fund c) Conditional Allocation(National 223,729, ,997, ,470, Government Revenue) d) Grants/Loans 95,792, ,723, e) Balance b/d 245,887, ,270, Own Revenue Sources e) Projected Revenue From Local Sources 122,245, ,320, ,245, TOTAL 5,246,391, ,107,461, ,649,110, Source: West Pokot County PBB estimates, 2017/18 F/Y The table above provides estimates of revenue for the FY 2017/18 supplementary budget. The overall total projected revenue was estimated at Kshs.5, 649,110, This projected revenue comprised of the equitable share of Kshs.4, 741,400, which would finance 84.7 percent of the total supplementary budget. 6

8 Conditional allocations estimates amounted to Kshs.228, 470, constituting 4.0 percent of the total supplementary budget. This comprised of Kshs. 12,128, conditional allocation as compensation for user fees foregone. It also comprised of Kshs. 32,549, conditional allocation in support of development of youth polytechnics. Further, a Kshs. 183,793, conditional allocation was provided from Roads Maintenance Fuel Levy fund to enhance county government s capacity to repair and maintain county roads. Other allocation amounted to Kshs 269,723, representing 4.8 percent were proceeds of external loans/grants which would finance devolved functions in accordance with signed financing agreements for the loans/grants. These loans/ grants estimates were a World Bank loan to supplement financing of county health facilities(ksh.67,985,000),world Bank loan for transforming health systems for universal care project (Ksh.83,202,997),Kenya Devolution Support Programme (KDSP) amounting to Ksh. 40,081,255, Danida grant in support of health (Ksh.12,454,545) and European Union counterpart funds in support of completion and operationalization of Nasukuta abattoir(ksh. 66,000,000).The balance brought forward (unspent balances) from the FY 2016/17 amounted to Ksh.298, 270, while local revenue target amounted to Ksh. 111, 245, representing two percent of the total supplementary II budget. A total of Ksh. 3,930,255, (69.57 per cent) and Kshs. 1,718,854, (30.43 per cent) were allocated for recurrent and capital expenditure respectively for the period under review. 7

9 Local Revenue Performance The County Government collected Kshs.88.7 Million in FY 2017/18 against a target of Kshs Million. This represented local revenue performance of 79.8 per cent.the local revenue raised represents an improvement of Ksh. 5.5Million from the revenue collected in FY 2016/17. b) Overall County Expenditure and Analysis The total expenditure for the FY2017/18 amounted to Ksh.4, 969,638, This amount represents an absorption rate of percent of the total budget. A total of Ksh. 8

10 3,274,012, was spent on recurrent expenditure and Kshs.1, 695,625, was spent on development. c) Achievements during the year The county government implemented various programmes and projects through its Departments and entities which resulted in many outputs and outcomes as outlined below. i. Education and Technical Training The following achievements can be associated with this Department: 9

11 Disbursement of Ksh. 320 million as Education Bursary to students in Secondary Schools, Tertiary College and Universities Construction of 133 ECDE centres at a total cost of Ksh. 111 million Supply of start-up kits to 143 Vocational Training Gradutes Provision of fortified porridge meal to ECDE children in all the 1,032 ECDE centres Supply of new curriculum design/syllabus to all ECDE centres Start of construction of 3 Peace Border Schools Construction of 3 VTCs in Alale, Totum and Chepolet Infrastructural Support to Primary and Secondary Schools across the county ii. Agriculture and Pastoral Economy This Department is a great contributor to food security in the county. The following are the achievements of this Sub-sector: Distribution of 318,383 coffee seedlings Distribution of tea seedlings to 144 farmers for 184 acres of land Distributed pyrethrum splits to a total of 1,814 farmers Distributed 420 sahiwal bulls, 2,100 galla goats, 800 cockrels and 163 dairy cows Constructed 11 cattle dips Stocking of Turkwell Gorge Dam with 50,000 fingerlings Distribution of 270,000 kg of drought-resistant maize seeds, 375 kg of certified onion seeds and ploughing of at least 1,100 acres of land Started construction of onion storage facility in Ortum iii. Transport, Infrastructure and Public Works The achievements of this Department are highlighted below: Opening up of a total of 210 km of new roads across the county Grading and gravelling of at least 676 km of existing roads 10

12 iv. Water, Environment and Natural Resources Clean and quality water and environment is necessary for improved standard of living. The following are the achievements of the Department of Water, Environment and Natural Resources: Drilling of 8 Boreholes Upgrading and rehabilitation 5 and 50 Boreholes respectively Construction of 20 Sub-surface dams (pans) Developed 20 gravity water schemes Planted at least 368,00 trees in forests and public institution land v. Land, Housing, Physical Planning and Urban Development The following achievements are associated with this Department: Issuance of 10,000 title deeds Tarmacking of Ortum and Chepareria Town roads Construction of 26 Public Toilets in Townships Establishment of Kapenguria Town Board Street lighting in all urban areas vi. Trade, Industry, Cooperatives and Investments The achievements of the Department are as follows: Opening of 11 new Markets Construction of 18 bodaboda Sheds Construction of 4 Livestock Sale Yards vii. Health Services The following are some of the achievements of this Department: Employment of 120 health workers Infrastructural improvement in Kapenguria County Referral Hospital Construction of new infrastructural facilities in various health facilities 11

13 d) Value-for-Money considerations The County Government of West Pokot has consciously pursued economy, effectiveness and efficiency in the implementation of projects and programmes. Generally, all projects/programmes which have been completed have been utilized and contributed to improved service delivery. Nothing has come to the attention of the County Executive Committee member for Finance to indicate that value for money has not been achieved in any project/programme. e) Challenges experienced The achievements of the County Government were realized under various constraints and challenges as outlined below: i. Inadequate budgetary provision for various projects and programmes due to limited financial resources compared with existing needs ii. Low revenue collection from county Own Source Revenue (OSR) the county government was only able to raise Ksh. 88 million against a budget of Ksh. 122 million of OSR. iii. Delays in release of funds by National Treasury hence carry forward of liabilities iv. Delays in filling of senior positions such as Chief Officers v. Changes in needs and emergence of new requirements during the financial year occasioning revision of budgets. Mr. Luka Chepelion County Executive Committee member Finance and Economic Planning 12

14 III. STATEMENT OF COUNTY GOVERNMENT OF WEST POKOT MANAGEMENT RESPONSIBILITIES Section 163,164and 165 of the Public Finance Management Act, 2012 requires that, at the end of each financial year, the County Treasury shall prepare financial statements of each County Government entity, receiver of revenue and consolidated financial statements for all county entities in accordance with the standards and formats prescribed by the Public Sector Accounting Standards Board of Kenya. The County Executive Committee for Finance and Economic Planning of the County Government of West Pokot is responsible for the preparation and presentation of the County Government of West Pokot s financial statements, which give a true and fair view of the state of affairs of the County Government of West Pokot for and as at the end of the financial year (period) ended on June 30, This responsibility includes: (i) maintaining adequate financial management arrangements and ensuring that these continue to be effective throughout the reporting period; (ii) maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the County Government of West Pokot ; (iii) designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements, and ensuring that they are free from material misstatements, whether due to error or fraud; (iv) safeguarding the assets of the County Government of West Pokot ; (v) selecting and applying appropriate accounting policies; and (vi) making accounting estimates that are reasonable in the circumstances. The CEC member Finance and Economic Planning accepts responsibility for the County Government of West Pokot s financial statements, which have been prepared on the Cash Basis Method of Financial Reporting, using appropriate accounting policies in accordance with International Public Sector Accounting Standards (IPSAS). The CEC member Finance and Economic Planning is of the opinion that the County Government of West Pokot s financial statements give a true and fair view of the state of the county government s transactions during the financial year ended June 30, 2018, and of the County Government of West Pokot s financial 13

15 position as at that date. The CEC member for Finance and Economic Planning of the County Government of West Pokot further confirms the completeness of the accounting records maintained for the County Government of West Pokot, which have been relied upon in the preparation of the County Government of West Pokot s financial statements as well as the adequacy of the systems of internal financial control. The CEC member for Finance and Economic Planning of the County Government of West Pokot confirms that the County Government of West Pokot has complied fully with applicable Government Regulations and the terms of external financing covenants (where applicable), and that the County Government of West Pokot s funds received during the year under audit were used for the eligible purposes for which they were intended and were properly accounted for. Further the CEC member for Finance and Economic Planning confirms that the County Government of West Pokot s financial statements have been prepared in a form that complies with relevant accounting standards prescribed by the Public Sector Accounting Standards Board of Kenya. Approval of the financial statements The County Government s financial statements were approved and signed by the CEC member for finance on County Executive Committee member Finance and Economic Planning 14

16 IV. REPORT OF THE INDEPENDENT AUDITORS ON THE COUNTY GOVERNMENT OF WEST POKOT. 15

17 1. FINANCIAL STATEMENTS 1.1. STATEMENT OF RECEIPTS AND PAYMENTS Notes RECEIPTS Exchequer releases 1 4,741,400,000 4,654,529,140 Proceeds from Domestic and Foreign Grants 2 185,804,176 6,090,000 Transfers from Other Government Entities 3 196,109, ,491,400 Proceeds from Domestic Borrowings 4 Proceeds from Foreign Borrowings 5 Proceeds from Sale of Assets 6 Reimbursements and Refunds 7 Returns of Equity Holdings 8 County Own Generated Receipts 9 88,743,201 83,218,908 Returned CRF issues 10 TOTAL RECEIPTS 5,212,056,971 4,930,329,448 PAYMENTS Compensation of Employees 11 1,775,671,349 1,397,397,658 Use of goods and services ,332,938 1,026,461,960 Subsidies 13 Transfers to Other Government Units ,591, ,168,419 Other grants and transfers ,000, ,156,770 Social Security Benefits 16 10,214,864 14,243,030 Acquisition of Assets 17 1,148,492,752 1,481,848,007 Finance Costs, including Loan Interest 18 Repayment of principal on Domestic and Foreign borrowing 19 Other Payments 20 3,718,708 TOTAL PAYMENTS 4,879,303,237 4,933,994,552 SURPLUS/DEFICIT 332,753,734 3,665,104 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The entity financial statements were approved on 2018 and signed by: Chief Officer Name: Head of Treasury Name: ICPAK Member Number: 16

18 1.2. STATEMENT OF ASSETS AND LIABILITIES FINANCIAL ASSETS Notes Cash and Cash Equivalents Bank Balances 21A 574,974, ,574,567 Cash Balances 21B - Total Cash and cash equivalent 574,974, ,574,567 Accounts receivables Outstanding Imprests 22 - TOTAL FINANCIAL ASSETS 574,974, ,574,567 FINANCIAL LIABILITIES Accounts Payables Deposits and retentions 23 - NET FINANCIAL ASSETS 574,974, ,220,267 REPRESENTED BY Fund balance b/fwd ,220, ,885,371 Prior year adjustments 25 - Surplus/Deficit for the year 332,753,734-3,665,104 NET FINANCIAL POSITION 574,974, ,220,267 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The entity financial statements were approved on 2018 and signed by: Chief Officer Name: Head of Treasury Name: ICPAK Member Number: 17

19 1.3. STATEMENT OF CASH FLOWS Notes Receipts from operating income Exchequer Releases 1 4,741,400, ,654,529,140 Proceeds from Domestic and Foreign Grants 2 185,804, ,090,000 Transfers from Other Government Entities 3 196,109, ,491,400 Reimbursements and Refunds 7 Returns of Equity Holdings 8 County Own Generated Receipts 9 88,743, ,218,908 Returned CRF issues 10 Payments for operating expenses 4,930,329,448 Compensation of Employees 11-1,775,671, ,397,397,658 Use of goods and services ,332, ,026,461,960 Subsidies 13 Transfers to Other Government Units ,591, ,168,419 Other grants and transfers ,000, ,156,770 Social Security Benefits 16-10,214, ,243,030 Finance Costs, including Loan Interest 18 Other Payments 20 3,718,708 Adjusted for: Adjustments during the year Net cash flow from operating activities 1,481,246,486 3,550,500,846 CASHFLOW FROM INVESTING ACTIVITIES Proceeds from Sale of Assets 6 Acquisition of Assets 17-1,148,492,752 1,581,848,007 Net cash flows from Investing Activities - 1,148,492,752 1,581,848,007 CASHFLOW FROM BORROWING ACTIVITIES Proceeds from Domestic Borrowings 4 xxx Proceeds from Foreign Borrowings 5 xxx Repayment of principal on Domestic and Foreign borrowing 19 xxx Net cash flow from financing activities xxx NET INCREASE IN CASH AND CASH EQUIVALENT 332,753,734 9,864,323,998 Cash and cash equivalent at BEGINNING of the year ,220,267 Cash and cash equivalent at END of the year ,974,001 As per the statement of the asset 574,974,004 18

20 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The entity financial statements were approved on 2018 and signed by: Chief Officer Name: Head of Treasury Name: ICPAK Member Number 19

21 XXX COUNTY GOVERNMENT - (Indicate actual name of the entity) Consolidated 1.4. SUMMARY STATEMENT OF APPROPRIATION: RECURRENT AND DEVELOPMENT COMBINED Receipt/Expense Item RECEIPTS Original Budget Adjustments Final Budget Actual on Comparable Basis Budget Utilisation Difference % of Utilisation a b c=a+b d e=c-d f=d/c % Exchequer releases 4,134,121, ,278,289 4,741,400,000 4,741,400,000 3,526,843, % Proceeds from Domestic and Foreign Grants 163,681, ,536, ,218, ,804,176 43,144,679 65% Transfers from Other Government Entities 211,425, ,589, ,014, ,109, ,835,546 61% Proceeds from Domestic Borrowings Proceeds from Foreign Borrowings Proceeds from Sale of Assets Reimbursements and Refunds Returns of Equity Holdings County Own Generated receipts 105,320,184 5,925, ,245,626 88,743,201 99,394,742 80% Return issues to CRF TOTAL 4,614,548, ,330,082 5,457,878,552 5,212,056,971 3,771,218,388 PAYMENTS Compensation of Employees 1,659,445, ,226,296 1,775,671,349 1,775,671,349 1,543,218, % Use of goods and services 897,662,727 25,615, ,278, ,332, ,047, % Subsidies Transfers to Other Government 213,425,981 81,315, ,741, ,591, ,110,317 54% Units Other grants and transfers 192,000, ,000, ,000, ,000,000 86,000, % Social Security Benefits 22,684,310 14,000,000 36,684,310 10,214,864 8,684,310 28% 20

22 Receipt/Expense Item Original Budget Adjustments Final Budget Actual on Comparable Basis Budget Utilisation Difference % of Utilisation a b c=a+b d e=c-d f=d/c % Acquisition of Assets 1,638,874,050 79,980,244 1,718,854,294 1,148,492,752 1,558,893,807 67% Finance Costs, including Loan Interest Repayment of principal on borrowings Other Payments TOTAL 4,624,092, ,137,523 5,047,229,644 4,409,303,237 4,200,954,599 97% SURPLUS/(DEFICIT) [Provide below a commentary on significant underutilization (below 50% of utilization) and any overutilization] (a) Xxxx (b) Xxxx (c) Xxxx (d) Xxxx (e) Xxxx (Explain whether the changes between the original and final are as a result of reallocations within the budget or other causes as per IPSAS The total of actual on comparable basis should tie with the totals under receipts and payments where this is not the case, a reconciliation should between the two statements should be prepared and disclosed.) The entity financial statements were approved on 2018 and signed by: Chief Officer Name: Head of Treasury Accounts Name: ICPAK Member Number 21

23 1.5. SUMMARY STATEMENT OF APPROPRIATION: RECURRENT Receipt/Expense Item Original Budget Adjustments Final Budget Actual on Comparable Basis Budget Utilisation Difference % of Utilisation a b c=a+b d e=c-d f=d/c % RECEIPTS Exchequer releases 2,716,216, ,865,510 3,189,081,823 3,318,980,000 2,243,350, % Proceeds from Domestic and Foreign Grants 163,681, ,536, ,218, ,062,923 43,144,679 46% Transfers from Other Government - - Entities Proceeds from Domestic Borrowings Proceeds from Foreign Borrowings Proceeds from Sale of Assets Reimbursements and Refunds Returns of Equity Holdings County Own Generated receipts 105,320,184 5,925, ,245,626 88,743,201 99,394,742 80% Return CRF issues TOTAL 2,985,218, ,327,848 3,584,545,920 3,537,786,124 2,385,890,223 99% PAYMENTS Compensation of Employees 1,659,445, ,226,296 1,775,671,349 1,775,671, % Use of goods and services 897,662,727 25,615, ,278, ,332, ,047, % Subsidies Transfers to Other Government Units 213,425,981 81,315, ,741, ,591, ,110,317 54% Other grants and transfers 192,000, ,000, ,000, ,000,000 86,000, % Social Security Benefits 22,684,310 14,000,000 36,684,310 10,214,864 8,684,310 28% Acquisition of Assets Finance Costs, including Loan 22

24 Receipt/Expense Item Original Budget Adjustments Final Budget Actual on Comparable Basis Budget Utilisation Difference % of Utilisation a b c=a+b d e=c-d f=d/c % Interest Repayment of principal on borrowings Other Payments TOTAL 2,985,218, ,157,279 3,423,375,350 3,260,810,485 1,098,842,034 95% SURPLUS/(DEFICIT) [Provide below a commentary on significant underutilization (below 50% of utilization) and any overutilization] (a) Xxxx (b) Xxxx (c) Xxxx (d) Xxxx (e) Xxxx (Explain whether the changes between the original and final are as a result of reallocations within the budget or other causes as per IPSAS The total figures on the recurrent budget execution statement and development budget execution should add up to the totals of the combined statement.) The entity financial statements were approved on 2018 and signed by: Chief Officer Name: Head of Treasury Accounts Name: ICPAK Member Number: 23

25 1.6. SUMMARY STATEMENT OF APPROPRIATION: DEVELOPMENT Receipt/Expense Item Original Budget Adjustments Final Budget Actual on Comparable Basis Budget Utilisation Difference % of Utilisation a b c=a+b d e=c-d f=d/c % RECEIPTS Exchequer releases 1,417,905, ,412,779 1,552,318,177 1,422,420,000 1,283,492,619 92% Proceeds from Domestic and Foreign Grants Transfers from Other Government Entities 211,425, ,589, ,014,454 58,832, ,835,546 18% Proceeds from Domestic Borrowings Proceeds from Foreign Borrowings Proceeds from Sale of Assets Reimbursements and Refunds Returns of Equity Holdings County Own Generated receipts TOTAL 1,629,330, ,002,233 1,873,332,632 1,481,252,878 1,385,328,165 79% PAYMENTS Compensation of Employees Use of goods and services Subsidies Transfers to Other Government Units Other grants and transfers Social Security Benefits Acquisition of Assets 1,629,330,398 79,980,244 1,718,854,294 1,148,492,752 1,558,893,807 67% Finance Costs, including Loan 24

26 Receipt/Expense Item Original Budget Adjustments Final Budget Actual on Comparable Basis Budget Utilisation Difference % of Utilisation a b c=a+b d e=c-d f=d/c % Interest Repayment of principal on borrowings Other Payments TOTALS 1,638,874,050 79,980,244 1,718,854,294 1,148,492,752 1,558,893,807 67% SURPLUS/(DEFICIT) [Provide below a commentary on significant underutilization (below 50% of utilization) and any overutilization] (a) Xxxx (b) Xxxx (c) Xxxx (d) Xxxx (e) Xxxx (Explain whether the changes between the original and final are as a result of reallocations within the budget or other causes as per IPSAS The total figures on the recurrent budget execution statement and development budget execution should add up to the totals of the combined statement.) The entity financial statements were approved on 2018 and signed by: Chief Officer Name: Head of Treasury Accounts Name: ICPAK Member Number: 25

27 XXX COUNTY GOVERNMENT - (Indicate actual name of the entity) Consolidated 1.7. BUDGET EXECUTION BY PROGRAMMES AND SUB-PROGRAMMES Programme/Sub-programme Original Budget COUNTY EXECUTIVE Adjustments Final Budget Actual on comparable basis 2017/ / / /2018 Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 306,998, ,132, ,131, ,024, ,106, COUNTY EXECUTIVE AFFAIRS 42,854, COUNTY PUBLIC SERVICE BOARD 17,674, FIELD ADMINISTRATION SERVICES 94,002, COUNTY LIASONS,INTERGOVERNMENTAL SERVICES - 5,140, ,468, ,065, ,713, ,725, ,987, ,674, ,533, , ,534, ,276, ,257, ,065, ,065, (0.17) TOTALS 461,529, ,411, ,118, ,625, ,492, FINANCE AND ECONOMIC PLANNING Programme/Sub-programme Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference 26

28 GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 169,465, ,405, ,059, ,043, ,016, ACCOUNTING SERVICES 5,735, ,735, ,452, , SUPPLY CHAIN MANAGEMENT SERVICES 6,129, ,000, ,129, ,126, , RESOURCE MOBILIZATION (REVENUE) 24,710, ,060, ,650, ,098, ,551, INTERNAL AUDIT SERVICES 5,970, , ,470, ,872, , BUDGET FORMULATION, COORDINATION AND MANAGEMENT 16,750, ,500, ,250, ,688, , ECONOMIC PLANNING COORDINATION SERVICES 36,631, ,313, ,944, ,901, ,043, Monitoring and Evaluation Services 4,500, ,500, ,000, ,729, , WARD SPECIFIC PROJECTS 13,000, ,000, TOTALS 282,890, ,652, ,238, ,912, ,326, PUBLIC WORKS,TRANSPORT AND INFRASTRACTURE Programme/Sub-programme Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 82,617, ,914, ,531, ,205, ,326,

29 ROAD TRANSPORT 246,045, ,687, ,733, ,108, ,625, PUBLIC WORKS 19,405, ,576, ,828, ,828, (0.11) VEHICLE MAINTENANCE UNIT 1,325, ,325, ,233, , WARD SPECIFIC PROJECTS 95,718, ,581, ,300, ,612, , TOTALS 445,111, ,607, ,719, ,989, ,730, Programme/Sub-programme HEALTH, SANITATION AND EMERGENCY SERVICES Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 869,901, ,470, ,061,371, ,051,957, PREVENTIVE HEALTH SERVICES 128,044, ,344, ,700, ,996, CURATIVE HEALTH SERVICES 185,650, ,214, ,865, SANITATION SERVICES 97,522, ,242, ,764, WARD SPECIFIC PROJECTS 220,481, ,581, ,900, ,626, TOTALS 1,501,601, ,000, ,685,602, Programme/Sub-programme EDUCATION AND TECHNICAL TRAINING Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference 28

30 GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 278,069, ,184, ,253, ECDE 78,697, ,601, ,096, ICT INFRASTRUCTURE CONNECTIVITY 4,398, ,806, , , YOUTH VOCATIONAL TRAINING CENTERS 3,166, ,549, ,715, ,463, BURSARY FUND 192,000, ,000, ,000, ,997, WARD SPECIFIC PROJECTS 46,348, ,301, ,650, ,150, TOTALS 602,680, ,627, ,307, Programme/Sub-programme AGRICULTURE AND IRRIGATION Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 88,591, ,000, ,591, ,323, , CROP DEVELOPMENT AND MANAGEMENT 72,755, ,004, ,751, ,367, ,383, IRRIGATION & LAND DEVELOPMENT 34,510, ,868, ,641, ,326, , TOTALS 195,858, ,873, ,984, ,018, ,966, PASTORAL ECONOMY 29

31 Programme/Sub-programme Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 69,715, , ,915, LIVESTOCK PRODUCTION AND RANGE MANAGEMENT 25,221, ,190, ,411, LIVESTOCK DISEASE MANAGEMENT AND CONTROL 16,403, ,698, ,705, FISHERIES DEVELOPMENT & MANAGEMENT 2,849, ,800, ,649, NASUKUTA LIVESTOCK IMPROVEMENT CENTER 103,480, ,870, ,610, WARD SPECIFIC PROJECTS 9,740, ,959, ,700, TOTALS 227,410, ,581, ,991, Programme/Sub-programme TRADE, INDUSTRIALISATION, INVESTMENT & COOPERATIVES DEVELOPMENT Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 34,197, , ,847, ,999, , CO-OPERATIVES AUDIT 515, , , , CO - OPERATIVES DEVELOPMENT 1,845, ,845, ,362, , TRADE LICENSING AND MARKETS 55,243, ,773, ,469, ,247, ,222,

32 WEIGHTS AND MEASURES 3,396, ,396, , ,417, WARD SPECIFIC PROJECTS 10,700, ,700, ,492, ,207, TOTALS 95,198, ,423, ,774, ,466, ,307, Programme/Sub-programme LANDS, HOUSING,PHYSICAL PLANNING AND URBAN DEVELOPMENT Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 91,672, ,000, ,672, ,149, ,523, LAND POLICY AND PHYSICAL PLANNING 7,810, ,850, ,960, ,767, , HOUSING DEVELOPMENT 770, , , , URBAN DEVELOPMENT 3,930, ,000, ,930, ,769, , MAKUTANO KAPENGURIA TOWN ADMINISTRATION 19,174, ,221, ,395, ,297, ,098, WARD SPECIFIC PROJECTS 10,700, ,700, ,803, ,896, TOTALS 123,356, ,071, ,428, ,555, ,873, Programme/Sub-programme WATER, ENVIRONMENT AND NATURAL RESOURCES Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference 31

33 GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 37,564, ,036, ,527, ,527, WATER RESOURES MANAGEMENT 134,463, ,369, ,093, ,609, ,483, LAND RECLAIMATION 1,360, ,360, , ,000, ENVIRONMENT AND NATURAL RESOURCES 4,680, ,000, ,680, ,512, , WARD SPECIFIC PROJECTS 37,134, ,615, ,750, ,536, ,213, TOTALS 215,202, ,209, ,411, ,547, ,864, Programme/Sub-programme COUNTY PUBLIC SERVICE, ICT AND DICENTRALISED UNITS Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 137,325, ,367, ,692, ,692, HUMAN RESOURCE MANAGEMENT 3,250, , ,950, ,833, ,116, LEGAL SERVICES 5,100, ,000, ,100, ,463, ,636, RECORDS MANAGEMENT 3,236, ,236, ,236, COMMUNICATION SERVICES 4,700, , ,900, ,681, ,218, ICT INFRASTRUCTURE CONNECTIVITY - 1,725, ,725, ,463, , TOTALS 153,611, ,992, ,604, ,370, ,234,

34 YOUTHS, SPORTS, TOURISM, GENDER AND SOCIAL SERVICES Programme/Sub-programme Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 28,472, ,630, ,102, ,392, , TOURISM DEVELOPMENT AND PROMOTION 71,161, ,778, ,382, ,022, ,360, YOUTH SPORTS AND GENDER DEVELOPMENT 40,590, ,710, ,301, ,614, ,687, CULTURE & SOCIAL DEVELOPMENT 13,914, ,890, ,023, ,612, , WARD SPECIFIC SERVICES 1,599, ,700, ,300, ,136,150 1,163, TOTALS 155,738, ,372, ,110, Programme/Sub-programme SPECIAL PROGRAMMES AND DIRECTORATES Original Budget Adjustments Final Budget Actual on comparable basis Budget utilization difference GENERAL ADMINISTRATION PLANNING AND SUPPORT SERVICES 42,303, ,303, ,303,362 (1.20) DAIRY DEVELOPMENT 25,169, ,169, ,141,230 4,028, CASH CROP PRODUCTION 10,770, ,770, ,702,150 1,067, INVESTMENT AND CO-OPERATIVE DEVELOPMENT 770, , ,

35 EMERGENCY AND DISASTER RESPONSE 24,371, ,371, ,315,440 56, PEACE BUILDING AND RECONCILLATION 34,770, ,770, ,770, ,000, RESOURCE MOBILISATION AND DONOR CORDINATION 5,100, ,100, ,023,394 76, TOTALS - 143,255, ,255, ,025, ,229,

36 XXX COUNTY GOVERNMENT - (Indicate actual name of the entity) Consolidated 1.8. SIGNIFICANT ACCOUNTING POLICIES The principle accounting policies adopted in the preparation of these financial statements are set out below: 1. Statement of compliance and basis of preparation The financial statements have been prepared in accordance with Cash-basis IPSAS financial reporting under the cash basis of Accounting, as prescribed by the PSASB and set out in the accounting policy notes below. This cash basis of accounting has been supplemented with accounting for; a) receivables that include imprests and salary advances and b) payables that include deposits and retentions. The receivables and payables are disclosed in the Statement of Assets and Liabilities. The financial statements are presented in Kenya Shillings, which is the functional and reporting currency of the entity all values are rounded to the nearest Kenya Shilling. The accounting policies adopted have been consistently applied to all the years presented. The financial statements comply with and conform to the form of presentation prescribed by the PSASB. 2. Reporting entity The financial statements are for West Pokot County Government. The financial statements encompass the reporting entity as specified under section 164 of the PFM Act Recognition of receipts and payments a) Recognition of receipts The County Government recognises all receipts from the various sources when the event occurs and the related cash has actually been received by the Government. Tax receipts Tax Receipts is recognized in the books of accounts when cash is received. Cash is considered as received when notification of tax remittance is received. Transfers from the Exchequer Transfer from Exchequer is recognized in the books of accounts when cash is received. Cash is considered as received when payment instruction is issued to the bank and notified to the receiving entity. 35

37 SIGNIFICANT ACCOUNTING POLICIES (Continued) External Assistance External assistance is received through grants and loans from multilateral and bilateral development partners. Donations and grants Grants and donations shall be recognized in the books of accounts when cash is received. Cash is considered as received when a payment advice is received by the recipient entity or by the beneficiary. In case of grant/donation in kind, such grants are recorded upon receipt of the grant item and upon determination of the value. The date of the transaction is the value date indicated on the payment advice. Proceeds from borrowing Borrowing includes Treasury bill, treasury bonds, corporate bonds; sovereign bonds and external loans acquired by the entity or any other debt the County Government may take on will be treated on cash basis and recognized as receipts during the year of receipt. Undrawn external assistance These are loans and grants at reporting date as specified in a binding agreement and relate to funding for projects currently under development where conditions have been satisfied or their ongoing satisfaction is highly likely and the project is anticipated to continue to completion. During the year ended 30th June 2018, there were no instances of non-compliance with terms and conditions which have resulted in cancellation of external assistance loans. County Own Generated Receipts These include Appropriation-in-Aid and relates to receipts such as trade licences, cess, fees, property income among others generated by the County Government from its citizenry. These are recognised in the financial statements the time associated cash is received. Returns to CRF Issues These relate to unspent balances in the development, recurrent and deposit accounts at the end of the year which are returned to the County Revenue Fund (CRF) and appropriated through a supplementary budget to enable the County to spend funds. These funds are recognised once appropriated through a supplementary budget process. b) Recognition of payments The entity recognises all expenses when the event occurs and the related cash has actually been paid out by the entity. 36

38 SIGNIFICANT ACCOUNTING POLICIES (Continued) Compensation of employees Salaries and Wages, Allowances, Statutory Contribution for employees are recognized in the period when the compensation is paid. Use of goods and services Goods and services are recognized as payments in the period when the goods/services are consumed and paid for. Such expenses, if not paid during the period where goods/services are consumed, shall be disclosed as pending bills. Interest on borrowing Borrowing costs that include interest are recognized as payment in the period in which they incurred and paid for. Repayment of borrowing (principal amount) The repayment of principal amount of borrowing is recognized as payment in the period in which the repayment is made. The stock of debt is disclosed as an annexure to the County consolidated financial statements. Acquisition of fixed assets The payment on acquisition of property plant and equipment items is not capitalized. The cost of acquisition and proceeds from disposal of these items are treated as payments and receipts items respectively. Where an asset is acquired in a non-exchange transaction for nil or nominal consideration and the fair value of the asset can be reliably established, a contra transaction is recorded as receipt and as a payment. A fixed asset register is maintained by each public entity and a summary provided for purposes of consolidation. This summary is disclosed as an annexure to the consolidated financial statements. 4. In-kind contributions In-kind contributions are donations that are made to the entity in the form of actual goods and/or services rather than in money or cash terms. These donations may include vehicles, equipment or personnel services. Where the financial value received for in-kind contributions can be reliably determined, the entity includes such value in the statement of receipts and payments both as receipts and as an expense in equal and opposite amounts; otherwise, the contribution is not recorded. 37

39 SIGNIFICANT ACCOUNTING POLICIES (Continued) 5. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, short-term deposits on call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the Central Bank of Kenya and at various commercial banks at the end of the financial year. Restriction on cash Restricted cash represents amounts that are limited /restricted from being used to settle a liability for at least twelve months after the reporting period. This cash is limited for direct use as required by stipulation. Amounts maintained in deposit bank accounts are restricted for use in refunding third party deposits. As at 30th June 2018, this amounted to xxx compared to xxx in prior period as indicated on note xxxx. There were no other restrictions on cash during the year 6. Accounts Receivable For the purposes of these financial statements, imprests and advances to authorised public officers and/or institutions which were not surrendered or accounted for at the end of the financial year is treated as receivables. This is in recognition of the government practice where the imprest payments are recognized as payments when fully accounted for by the imprest or AIE holders. This is an enhancement to the cash accounting policy. Other accounts receivables are disclosed in the financial statements. 7. Accounts Payable For the purposes of these financial statements, deposits and retentions held on behalf of third parties have been recognized as accounts payables. This is in recognition of the government practice of retaining a portion of contracted services and works pending fulfilment of obligations by the contractor and to hold deposits on behalf of third parties. This is an enhancement to the cash accounting policy adopted and prescribed by the Public Sector Accounting Standards Board. Other liabilities including pending bills are disclosed in the financial statements. 8. Non-current assets Non-current assets are expensed at the time of acquisition while disposal proceeds are recognized as receipts at the time of disposal. However, the acquisitions and disposals are reflected in the entity fixed asset register a summary of which is provided as a memorandum to these financial statements. 38

40 SIGNIFICANT ACCOUNTING POLICIES (Continued) 9. Pending bills Pending bills consist of unpaid liabilities at the end of the financial year arising from contracted goods or services during the year or in past years. As pending bills do not involve the payment of cash in the reporting period, they are recorded as memorandum or off-balance items to provide a sense of the overall net cash position of the entity at the end of the year. Pending bill form a first charge to the subsequent year budget and when they are finally settled, such payments are included in the statement of receipts and payments in the year in which the payments are made. 10. Budget The budget is developed on the same accounting basis (cash basis), the same accounts classification basis, and for the same period as the financial statements. The entity s budget was approved as required by Law and as detailed in the County Revenue Allocation Act. The original budget was approved by the County Assembly on xxx for the period 1 st July 2017 to 30 June 2018 as required by law. There was xxx number of supplementary budgets passed in the year. A high-level assessment of the entity s actual performance against the comparable budget for the financial year under review has been included in an annex to these financial statements. 11. Comparative figures Where necessary comparative figures for the previous financial year have been amended or reconfigured to conform to the required changes in presentation. 12. Subsequent events Events subsequent to submission of the financial year end financial statements to the National Treasury and other stakeholders with a significant impact on the financial statements may be adjusted with the concurrence of National Treasury. 13. Errors Material prior period errors shall be corrected retrospectively in the first set of financial statements authorized for issue after their discovery by: i. restating the comparative amounts for prior period(s) presented in which the error occurred; or ii. If the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and net assets/equity for the earliest prior period presented. 14. Related party transactions Related party transactions involve cash and in kind transactions with the National Government, National Government entities and County Government entities. Specific information with regards to related party transactions is included in the disclosure notes. 39