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The AFLRA North-South Local Government Cooperation Programme's basic course on 17-18 March 2009 focused on effective financial management strategies for local authorities. Facilitated by Henry M. Waweru, Town Treasurer of Nyahururu, the course covered budget preparation, revenue sources, and the roles of council officers and stakeholders. Key challenges discussed included differences in accounting years and economic factors affecting budgets. Lessons learned emphasized the importance of public-private partnerships and timely financial reporting for successful local governance.
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ASSOCIATION OFFINNISH LOCAL AND REGIONAL AUTHORITIES (AFLRA)NORTH-SOUTH LOCAL GOVERNMENT CO-OPERATION PROGRAMME BASIC COURSE 17-18 MARCH 2009
Financial Administration Henry M. Waweru Town Treasurer Municipal 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-OPERTIONSTEERING 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
coordinator ROLE 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