liEPULIC OF KENYA erOFFICE OF THE AUDITOR-GENERAL REPORT OF THE AUDITOR-GENERAL ON THE NATIONÄL TREASURY FOR TH£E YEAR END9eD 3 JUNE. 2022 THE NATIONAL TREASURY AND PLANNING ANNUAL, REPORT AND FINANCIAL STATEMNENTS FOR THIE FINANCIAL YEAR ENDED JUNE 30, 2022 Prepared in accordance wvithl (ihe Cash1 Ba-sis of Accouinting Mlethiod unditer (ihe Ilutert-ionai11- Public Sector Afccouting Standards (IPSAS) 1. NATIONAL TREASURY INFORMATION AND MANAGEMENT. (a) Background Information ... ...... (b) Key Managem ent............. . ...... (c) Fiduciary Management ....... .... (d) Fiduciary Oversight Arrangements .... 2.1. FOREWORD BY THE CABINET SECRETARY... .... 2.2. STATEMENT BY THE PRINCIPAL SECRETARY .... 4. CORPORATE SOCIAL RESPONSIBILITY STATEMENTiSUSTAINABILITY REPORTING. 4.1. Sustainability Strategy and Profile ............ ...... . . . . . . . . ..- . ... 4.2. Environmental performance...............formanc.. ...... ..-......-. 4.3. Em ployee w elfareelfare.. ............................... ........................ ...... .. .. xxy 4 .4. M arket place practicesac................................- ....-.....- ..- ........- ...- . ................. _xx 4.5. Com m unity Engagem ents ................................ga...ements.... ..--- .. ... . . ... .................. xxv 1. STATEMENT OF MANAGEMENT RESPONSIBILITIES.................... ... ................................ xx n 2. REPORT OF THE INDEPENDENT AUDITORS ON THE NATIONAL TREASURY .............__ .... xyIX 3 STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30T JUNE 2022 ..... - 1 4. STATEMENT OF ASSETS AND LIABILITIES AS AT 30TH JUNE 2022...........................022. 5 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH JUNE 2022................................. 8. STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS................................ 7. SUMMARY STATEMENT OF APPROPRIAT!ON: RECURRENT ............................................. I~ ... 8. SUMMARY STATEMENT OF APPROPRIATION: DEVELOPMENT ................................EVELOPMEN...T.. 13. BUDGET EXECUTION BY PROGRAMMES AND SUB-PROGRAMMES (Annex 1)...................11 14. SIG NIFICANT AC CO UNTING PO LIC IES .................................................................. . 15. NOTES TO THE FINANCIAL STATEM ENTS....................................................... ............ ....... 16. PROGRESS ON FOLLOW UP OF PRIOR YEARS AUDITOR'S RECOMMENDATIONS .....-. 26 4 FF%EN-17I101 TRIEISURYAMT) P'LAINGY 1nnuil Reiort and1int orteYearI, 1ended 30, June 2022. 1. NATIONA:L TREASURY INFOl1ATION AND MANAGEMENT (0) Background Information The National Treasury was established via the Executive Order No. 2 of' Mav 20 3, T he basis for establishment of the National Treasury is found in Article 225 (i) of the Costitut ion f KenVa ViLh states that an Act of Parliament shall provide for the establishment, functions and responsibilites the National Treasury. This has been actualized in Section II and 12 of the Public inance MLanaIement (PFNI) Act 2012. At Cabinet level, the National Treasury is represented by the Cabinet Secretary for National Treasury and Planning, who is responsible for the general policy and strategic direction of the Ministry vith the assistance of the Chief Administrative Secretary. Vision "Excellence in economic and public financial management, and development planning". Mission "To provide leadership in economic and public financial management, for shared growth through formulation, implementation and monitoring of economic and financial policies". Core Values The National Treasury is guided by the following core values: Customer Focus, Results Oriented. Stakeholder Participation, Professionalism, Accountability, Integrity and Transparency and Teamwo.k all geared towards excellence in service delivery. Mandate of the National Treasury The National Treasury derives its mandate from Article 225 of the Constitution, Public Finance Management Act 2012 and the Executive Orders No.2/2013 and No.1/2018. The National Treasury will be executing its mandate in consistency with any other legislation as may be developed or reviewed by Parliament from time to time. The core functions of the National Treasury as derived from the above legal provisions include: * Formulate, implement and monitor macro-economic policies involving expenditure and revenue; * Manage the level and composition of national public debt, national guarantees and other financial obligations of national government: * Formulate, evaluate and promote economic and financial policies that facilitate social and economic development in conjunction with other national government entities: Ill THE XV TIO.1Il TRE-ISURF.11D PLANVNG Annual Reportnd Financial Statemnt For theY ear enwded 30, June 2022. * Mobilize domestic and external resources for financing national and cunti v Ci'. budgetary requirements: * Design and prescribe an efficient financial managcinent system for the nai;n;! art governments to ensure transparent financial mnanacement and standard financial repo2 * In consultation With the Accountin Standards Board, ensUre that uniform accr m: standards are applied by the national government and its entities: " Develop policy for the establishment. imanagement, operation and winding up of pW' 1 funds; * Prepare the annual Division of Revenue Bill and the County Allocation of Revenue 01 " Strengthen financial and fiscal rcl;tions between the national government and counmv governments and encourage support for county governments; * Assist county governments to develop their capacity for efficient, effective and transparent financial management; " To prepare the National Budget, exccute/implement and control approved budgetar. resources to MDAs and other Government agencies/entities: and * Coordination and integration of public ports, railway and pipeline ser\ices. Role of the National Treasury in the Devolved System of Government The National Treasury is mandated by law to: * Strengthen financial and fiscal relations between the National Government and County Goverrnents and support for county governments in performing their functions: * Issue guidelines on the preparation of county development planning; * Prepare the annual legislative proposals on intergovernmental fiscal transfers: * Provide logistical support to intergovernmental institutions overseeing intergovernmental fiscal relations; * Coordinate the development and implementation of financial recovery plans for Count\ Governments that are in financial distress; * Build capacity of County Governments on public finance management matters for efficient, effective and transparent financial management as well as planning. moni-,orin and evaluation and; " Administer the Equalization Fund. (b) Key Management The National Treasury day-to-day management is under the following key office: 771 X.TIO tLTI?1E.,1SURYAX1IN) I'VI.NNG 1 a R1ePort and F inancial St(I/1men8 F`or the Year jjeded?30, June 2022. Office of the lrincipal Secreary TIle 0i1,1ce ol the Principal Secreta is responile fore day-to yadanabaution Treasury operations and is the accountin officer. In aduilion, tile Principal responsibil.tv of' providing advice to the Cabinet Seecretay i rder to enhAnce C Ie L '2 responsibilit. Organizational structure of the National Tr'easury7 The National Treasury is organized into five (5) technical Directorates hcadcd h; Diruct,: Gnr (1) Administrative and Support Services Directorate headed by a Principal Administrati% S-reta Director General is responsible for a Directorate comprising a cluster of Departments re7pan related policy functions. In addition, the Treasury has two independeni departments r Pn:m Procurement and Internal Auditor General both of which are headed by Directors. The Dlrectorates a Departments are as follows: Directorate of Budget, Fiscal and Economic Affairs The Directorate is headed by a Director General, reporting to the Principal Secretary. National Treau. It is organized into the following four (4) Technical Departments each headed by a direc*or: * Budget Department; * Macro and Fiscal Affairs Department * Financial and Sectoral Affairs Department; * Inter-Governmental Fiscal Relations Department Directorate of Accounting Services and Quality Assurance The Directorate is headed by a Director General reporting to the Principal Secretary. National Treasurx. It is organized into the following four (4) Technical Departments each headed by a Director: * Government Accounting Services; * Financial Management Information Systems (FIMIS) * National Sub-County Treasuries. * Government Digital Payments Unit. Directorate of Portfolio Management The Directorate is headed by a Director General, reportint to the Principal Secretary. It is or,anized into the following four (4) Technical Departments each headed by a Director: * Government Investment and Public Enterprises; * National Assets and Liabilities Nanagemenit TRE NAI77OYL TRE,ISURY VAND PLANYI\ G Ann ual Report and Financial Statements t For theY ear eided 30, Juine 2022. * Pensions Department. * Public Investment Management Unit Directorate of Public Debt Management Office The Directorate is headed by a Director General, reporting to the Principal Secretary. It is organized into the following three (3) Technical Departments each headed by a Director: * Resource Mobilization (Front Office); * Debt Policy, Strategy and Risk Management (Middle Office); * Debt Recording and Settlement (Back Office). Directorate of Public Private Partnership Unit The Directorate is headed by a Director General, reporting to the Principal Secretary on matters relating to Public Private Partnership. Directorate of Administrative and Support Services (Common Shared Services) The Directorate is headed by a Principal Administrative Secretary, reporting to the Principal Secretary. It is organized into twelve (12) specialized functions offering common shared senices. The common shared services of the National Treasury consist of functions that are not core to the National Treasury but offer critical support services to the National Treasury. The functions include: * Accounting, * Finance, * Human Resource Management and Development, * Central Planning and Project Monitoring, * Supply Chain Management, * Legal, * Public Comnunications, * General Administration, * Records Management; * Internal Audit; * ICT * Government Clearing Agency UJEiMAITIOX)y TRE EASUReVAND I'L.AI\NG A1 nzual< Reportj' anid F'inanc,iaf Stater,,nnt For th ear2022. kC) F iduciary M :magemecnt The Kevnmana!eeent personelw olice dur n the financial year unded 3Vth .une 2022 and he had d irtfidueiary responsiblility were: NO. Designation * Principal Secretary lCPA Dr. Juhusi Mluja. CBS > Principal Administrative Secretary M%r. Amos Gatlhecl'a. lBS 3. Director General, BFEA Mr. Albert Mvenda, NlBS 4. Directer General. Accounting Services Mr. Bernard Ndung'u, MBS 5. Director General, PIPM Eng. Stanley Kanau , LBS 6. Director General, PDMO Dr. Haron Sirna, EBS 7. Director General, PPP Mr. Christopher Kirigua. MF3S 8. Direetor, Macro and Fiscal Affairs Department Mr. Musa Gathanje. MBS 9. Director, Budget Departnent 'Mr. Francis Anyona. OGW 10. Director, Financial and Sectoral Affairs Department Prof. Galgalo Barako. OGW 11. Director, Public Procurement Department Mr. Eric Korir 12. Director, Intergovernmental Fiscal Relations Department Mr. Albert Nwenda, MBS 13. Deputy Internal Auditor General Ms. Jane Micheni 14. Ag Director, Government Accounting Services Department Mr. Jona Wala 15. A g Director, National Sub County Treasuries Mr. Francis Kariuki, OGW 16. Director, Financial Management Information System Mr. Stanley Kamanguya. MB\rS 17. I Director, National Assets and Liability Management Mrs. Veronicah Okoth 18. Director, Government Investment and Public Enterprises Mr. Kennedy Ondieki 9. Director, Pensions Department Mr. Michel Ka,ika, EBS 20. Director, Resource Mobilization Department ir. Mss Kanaui 21. Director, Debt Policy, Strategy & Risk Management MNlr. Daniel Nd,NIL, 'MS Department 22. Ag Director, Debt Recording and Settlement Departient Geore Kariuki 23. Secretary Administration Mi-, l lirai iiro, N1B 24. I lead, Accounts Division Mi, Nenmel lotana 25 l f Cad Fimance i. Ambrose Og angk Vil THE.1A TIO.AL TRE-ISURY AND PLi-NNING Annual Report and Financial Stateent1 For the year eided 30, .June 2022. 26, Head. Mr. Agurey Kituyi ~ Hea-d. Internal Audit Unit Mr. Esth1r Ngeru 28 Director, Hunan Resource Management and Development M. Susan iucheru 29. Director. Information Communication and Technology i Mrs. L)nn Nvongesa 30. Head, Central Plannina and Project Monitoring Unit Mr. Aotony Murit, IISC 1. Head, Public Communications Ms. Catherine Njoroge 72. Programme Coordinator, Public Financial Management Mr.Julius Mu,ua Reform Seretariata (d) Fiduciary Oversight Arrangements To manage the fiduciary risk, the National Treasury has put in place fiduciary oversight arrangemenzs including setting up committees. The key oversight arrangements include: Internal Audit Unit The National Treasury has an internal Audit Unit charged with the responsibility of identifying risks in the management and day to day operations of the Ministry through the risk-based audits. The Unit reports directly to the Accounting Officer on a regular basis. Audit Committees In line with the Public Finance Management Act, the National Treasury has established a Ministerial Audir Committee comprising five members, three of whom are independent. The Committee provides overAll oversight and quality assurance including follow up on the effectiveness of implementation of audit recommendations. Further, the National Treasury established an audit committee comprising officers from all departments of the Ministry, under the chairmanship of the Senior Chief Finance Officer. The Committee re iews and analyses all audit queries and makes recommendations on how to reduce fiduciary risks. In addition. the committee prepares responses to all audit queries for presentation to the relevant committees of parliament. Project Implementation Committee To monitor the implementation of the Government's Infrastructure Projects, the National TreaSurV has established a Project Steering Committee Comprising Principal Secretaries forn implementin s inistres and appointed a technical committee comprising ofTicers from the technical departments of the \Minlistr\. The Committees review and analyse the progress nuIde by ministries in the iiplementation ll domestically and externally funded projects and advi,;cs accordingly. Vill TIE- '-ITION-I1, TRI. ISURY. IN!) Pl INYI1,G" l 7 Report a(d F`irn cial Stth,twnts Fo 1b!' yar ended 30, Jlun, 2022. Parliaielntar). Aelivities ..in rJt to ellectively n age the plwrliwneni1ary a ctivite relatinlq to the 11inistr the :iCnl 1rea ury haS CStablish1CJ1 a CommI11itteC and desigilatcd a li2is(onl ofice to coordinate the acti iti': und:r '. ) ike ot the Cabinet Secretary in consultation with tle ()fIlce ol the (ief Admiiitrative Simre;:r Development Partner Oversight To efctivecily manage Official DevIlopiilcnt Assistance to the Glovernment, the 'It nal a under the Public Debt M\lanagement a department responsible for all matters relatin- t 1)2 Partners. The Department has various Units that coordinate different development partner acunne Country. Other fiduciary oversight arrangements include the following committees with specific objetl Top Management Committee and Other Committees To monitor the implementation of the Ministry's programmes and performance, the NationlT has appointed Top Management Committee comprising of Director Generals. The Committee reports from departments, builds consensus on National Treasury responses to emner::ng -7s. challenges and risks and ensures that the decisions made are implemented in a timel. Additionally. the Treasury constituted Ad hoc Committees to handle specific assignments in the Year 2021/22. Public Financial Management Sector Working Group To facilitate the implementation of financial management reforms, the National Treasury has appinteJ senior officers to the Public Financial Management Sector Working Group. The Committee p1," an oversight role in the implementation of financial reforms in the public service in collaboration with the development partners. Budget Implementation Steering Committee In order to effectively monitor the implementation of the National Government budget implemematioa. The National Treasury has established a steering Committee chaired by the Cabinet Secretary. Natio:ul Treasury and Planning. The Principal Secretaries for the National Treasury and State Department ot Planning provide general oversight in the Budget implementation. Budget Implementation Technical Committee Ihe Committee is chaired by the Principal Administrative Secretary and comprises the Director Gencrals and various Ileads of Department. The Connittee is responsible f0r Imlonlitorin the actual implementation of the identified measures and proproinm s and reporting detailed progres, on the sanme regularly. ilE .VA TIONA L TRESURY AXD PLAN.ING Annlual Report and Financial Statemients For the year ended 30, June 2022. Budget Inplenientation Ministerial Conmittec To monior the implementation of the Ministrys budget. programmnies and acti' ities, the National Treasury has appointed a comninee cornprisinQ of officers from all the Departiments otte Mimisiry. Eh Committee reviews and analyses the progress made by Departments in the implementation Of budget and the planned programmes and activities and advises Ihe ianaemcent accordingly. Monitoring and Evaluation The Ministry undertakes monitoring and evaluation exercises to establish progress made in the implementation of various progranimes and projects including those that are funded by the development p arners. THE AA TION.IL TRE.SI 'RY.IND PLIL V(; A1innugal Report and Financial Statemnts For ithe year ended 30. June 2022. The Nationa1l Tre*iasury lHeadquaricts P.O. 13x 0(- 00100. Treasury Building, I larambee. Avenue Nairoli Kenya The National Treasury Contacts Telephone: (254)020-2252299 Email: Commmunicat ion ftreasurv.o.ke Website: w alv.ureasurv.co.ke The National Treasury Bankers Central Bank of Kenya Haile Selassie Avenue P.O. Box 60000 City Square 00200 Nairobi. Kenya Independent Auditors Auditor General Kenya National Audit Office Anniversary Towers, University Way P.O Box 30084 GPO 00100 Nairobi, Kenya Principal Legal Adviser The Attorney General State Law Office Harambee Avenue P.O. Box 40112 City Square 00200 Nairobi, Kenya xi THE YATIO.N L TÄ RL E I NI' ) /'/. IN'Y1V Annual Repojr and 1-inacia!.il S61at,1ment11 For e1i Ycar Junded M, Jn 2022. 2.1. FORU\NOD B Ti l (Al T INAY, NVll i 1z In Irn wIith Section 1 f th Pnblic Eiince NaIeinent Treasur\ has cntlued t mitin 1 policy envir onment that nd å policy kic\ clopmemll ofli thC country. 111c Kenvan economv demonstrated rela11hlC resi lenae to Iie O I l l)1 V' xA I percent in 2021. a mu1ch sironger level fron a conliet n of 0. p3 cent n ( ecoComc IecOery was maily supported by tile recovcry in the 'ervice and : r r c subdued perforance in the agiicuiltrail sectr. Cihari 1: A nnual Real GD Growth R1tes 6.3 sss e 509 2r16 20i7 2018 2019 Year Data Source: National Treasury: Quarterly Econom ic and Budgerary Re viei Scrn r 2. ' In the flrst quarter of 2022, the economy expanded further by a remarkable 6.8 percent com:" e n growth of 2.7 percent in a similar quarter in 2021 (Chart 2). The strong perforance was continued recoverv in manufacturing, transport and storage, accoininodation and food serv . and retail trade. Professional, administration and support services and financial and insurance :a:1 X11l THIE A4 7IO1L TREAISURY- .D PLINGN(i Annual Report anid Financial StatemntIS TOr theY ear ended 30, June 2022. Charti 2: Quarterly Real GD)P Grolith Rates 20 2 02 10.0 4.0 4 11. Data Source: National TreastUry: QUarterly, Economic and Budgetary, Revliewi, September, 202 Sectoral Growth rates Activiti griculture, forestry and fishiotscctoa attributed to depressed ramnfall during th Iorhqatef22 a roductieledon.Tesetori s tmdrto the first quarter of 2022, thereby leading to reduced a2riu2trampreduton .4 pectogrot in tmted frto Da Sontrce NationalpTrenrt Quahirurterl Eoofi and2 Budgearyied , S.4pteengr,v-t 2022 frs avite on rcultu re perfor e f the sector was mainly due n to the sigrnficant decl ini horticultural exports and lea production. The sector's performance was however cushioned from a steeper slump by the increase in production of cane, milk and coffee. The sector's contribution to GDP growh was -0. 1 percentage points in the first quarter of 2022 compared to 0. 1 percentage points contribution in the same quarter in 2021 (Chart 3). The biggest contribution to the growth was recorded in the Services Sector. The recovery of activities in the services sector continued in the first quarter of 2022. The sector grew by 9.1 percent in the first quarter of 2022 compared to a growth of 3.2 percent in the same quarter in 2021. The strong growth, was largey characterized by significant recovery in transportation and Storage (8.1 percent), accommodation and food services (56.2 percent) and Professional, Administrative and Support Services (14.9 percent). The sector was also supported by strong growths in financial and insurance services (14.4 percent), and wholesale and retail trade (8.7 percent). The services sector contributed 5.1 percentage point to real GDP growth in the first quarter of 2022 compared to the 1.8 percentage point contribution in the same quarter in 2021. xiii T 11 17Y TI 1 FUL Pwv TN l> V/. J. N,ING' 111 11ua1 Report and inn LYDPLA iNLX AII II Report and jinaicial Stitenes For the year en!ded'( 30, JIune 21122. Chart 4. Performane of Selected Sub-Salaran Countries (Ce Ics agalin.st lie VS )ollar (,jue. 202 1 to Juie, 2022) - 40.0 .2 30-0 30.0 136 20.0 131 1.34 5.9 8.8 10.0 2.0 3 4 0.1. --<, LL- C=~ . _cD CD cm u: t Data Source: Narional Treasuy: Quarterly Economic and Budgetary Review, September, 2022 Overall. leading cconomic indicators including interest rates, Foreign Exchange Reserves balance of naymenis and. money and credit for the fourth quarter of 2021 and the first quarter of 2022 recorde d s:alc performance and point to strong recovery from the adverse impact of the COVID-19 pandermic. Going forward, the National Treasury is committed to promoting Growth enabling investments thrcugh the implenentation of the Econornic Recovery Strategy. Specifically, the National Treasury will: 1. Scale-up the COVID-19 response; 2. Reduce debt vulnerabilities through revenue-driven fiscal consolidation plan that target to stabi,ize the debt to GDP ratio and subsequently put it on a downward path; 3. Support structural and govemance reforrns while addressing weaknesses in state-onea enterprises; and, 4. Strengthen monetary policy framework and support financial stability. q>T1iON IB.) UKUR YATANI, EGII CABINET SECRETARY TIIE NATIONAL TREASURY AND PLANNING XV e T/HE.NATIO.Y4 . RER I SYiA ND l)L L1 A1nnal Report and Financial S1tat0mnt1 Fo r the tycar ended 30, June 2022. 2.2. STlATIGIEN' HY THI I PRIN'IPAL SECRITARY Bidiget perform an ce T'he National Treasury expenditure tor the FY 2021/22 stood at KSh. 106.08 billion agai t H bud,_et of KSh. 167.) billion translating to an overall absorption rate of 63 percent as dcr ted i piO chart below. Chart 5: Total Allocation against Total FXpenditure (KShi. Billion) Total Allocations against Total Expenditure ((Sh. Billions) a Total Expenditure Cross Allocation Total Expenditure, 106.08 Gross Allocation, 167.9 The National Treasury implemented the 2021/22 budget within five economic classifications/programmes. These were General Administration, Planning and Support Services, Public Financial Management, Economic and Financial Policy Formulation and Management. Market Competition and Creation of an Enabling Business Environment, Government Clearing Services. Rai Transport and Marine Transport. The latter two programmes were transferred to the National Treasury by an executive directive that merged the ports, rail and pipeline services. As demonstrated in the bar chart below, Market Competition and Creation of Enabling Business Environment Programme had the highest absorption at 100 percent followed by Economic and Financial Policy Formulation and Management at 82 percent, General Administration at 78 percent. Marine Transport 75 percent, Government Clearing Service at 71 percent, Rail Transport at 68 percent, and Public Financial Management at 38 percent. The 100 percent absorption rate in Market Competition and Creation of an Enabling Business Environment programme is attributed to transfers to Semi Automonous Government Agencies (SAGAs) under the National Treasury which implemented this programme. The low absorption rate in Public Financial Management programme relates to lower than anticipated execution on the following sub-programmes; Resource Mobilization, Budget Formulation. Coordination and Management, and Government Investment and Assets. The underperfornance in Resource Mobilization sub-programme is attributed to a number of factors relating to implementation of externall% funded projects. These include delay in granting of letter of 'no objection 'from Development Partner funding Aid Effectiveness project, delay in restructuring and signing of contracts unde the Infrastructure Finance for Public Private Partnerships project, lengthy procurement processes relating to Olobal Fund commodities, and delay in approval of County Allocation of Revenue Act 202 1 to enable execution of budget under the Kenya Financing Locally-led Climate Action Progranine. xvi i2Ui nnu 'cRport andlc i inantiai SNII'taterIne 114 nd 1r Bud et 1inolation (KSu 3 C-er)r an Pul Finande E sonorbc and Market Government Rail Transp-rt r ri t udMarager t Fin8ncial Ce t ( se t i ti n Clearing T. b r nm Std Policy Criixfl an o' Selvices Forrnulatwnl Enibfing eun h )nA and MariaøEefricri Elivit(,nr - Programme n\ pi n THE N TIONA L TRl*IS RI? RAD M'LIN lAfG Ann utal Report and Fina ncial Statemeunts For thee ear ended 30, June 2022. Kev Achievements Enhanced Revenue Collection The econormic recovery underway coupled %\ith improved bu;iness resultod inen rebound in revenue collection. As at end June 2022. ordinary revenues amounted to Kh.1 919 'A recordinw an above target collection of Ksh 67.5 billion. This performance is a growth o 22,9 pe over the previous year Other key achievements during the period under review are as follows; i. Developed the Draft National Tax Policy to guide tax administration and revenue collection. I hc policy sets out broad parameters on tax policy and related tax matters in Kenya, with the objectives of providing policy guidance on the collection, enforcement and administration of tax laws; t basis for review and development of tax laws; guidelines to stakeholders including investors on tax policy matters; guiding principles for the Kenyan tax system; and a legal framework for granting tax incentives to various sectors of the economy; ii. Developed the draft information security (PFM Systems) policy to provide guidelines for the holistic management of information security risks within PFM systems operational environment including but not limited to Information Security governance, cyber security management. systems and applications security, communication security and human resource security; 1i. Facilitated the National Police Service by leasing 3,400 vehicles towards enhancing security: iv. Developed the processes and procedures manual for Credit Guarantee Scheme; v. Mobilized over KSh. 10 billion for HIV, TB and Malaria interventions; vi. Developed the debt risk management framework; vii. Mobilized external resources amounting to Kshs.14 billion for the purposes of financing COVID 19 vaccine acquisition, procurement, deployment and other related health interventions aimed at mitigating the effects of COVID 19 Pandemic; viii. Developed the e- Government Procurement System. Emerging Issues The emerging issues that have impacted the operations of the National Treasury include; * Transition to new Government will require re-alignment of the existing plans and strategies to accommodate Emerging Priorities under the new administration. * Leveraging on ICT innovations in the delivery of services to the citizenry. * Change in Government Policies that led to adJustment in the implementation of planned programmes and projects. xviii q -erUNel ;W-d 1:0 Pl [l S 1 1C", i C 1w v ; .'; i ø, I {. ilie w1 l i re isocks tlial pushedt t:ne --theni n chfoodn and Iher el procss occao tlze g]elml indreics 1-, me'~ f:he chalene swil he oss ceryan wdrcs is -conoinists aaend Accohiipntanmts the nclud Infts tinr rnuues s,0 staf. sortage lcross al cadres. This is ,iniv attributed to natura he æy The planned rc,rtient and promotion uf staffby the appointing authorition has becr hiwv nu:c affectn s-2 tovhieelrry and succession mocaem dnt bgbic ss pcser Scr 0 ofciic spac enciai lv for kev technl .tf;a o hotae fiey Tp-e-mnicalsStaff Detecuent ofstoffhc crionrinceg and Evaluationonat,he atr: To surm,lunt the above emergine issues and challenges a-nd eusure successful implementation oth National Treasury goals and objectives. the Ministry undertook the folowing- Cortinued to imilemem borrowing policy that provides for domestic borrow%ing to plug th,e inancing gap~ cread by non-performing revenue. iThe effects of the Eastern Europe Conflict on inflation and cost of living were mderated by he Government*s interventions including: THE AA TIOAL TREASURY AND PLAN\N'G Annual Report and Financial Statements For the year ended 30, June 2022. i) Subsiding fuel pump prices; ii) Waiving of taxes, fees and charges on maize and animal feeds imported into the country: iii) Settine aside KSh. 3.0 billion in April-June, 2022 for a fertiliser subsidy to support farmers during the last planting season, with a further KSh. 2.7 billion set aside for the next planting season in October, 2022. iv) Reducing electricity tariffs by 15 percent to lower the cost of power. * Continued to implement succession planning towards progressively filling in staff shortage, continued training and timely promotions. f Engaged other development partners for concessional loans and grants as well as pursued strategies to finance government projects. Recommendations * Increasing allocation to the National Treasury to facilitate effective mobilization of resources to finance public expenditure particularly towards facilitation and implementation of post COVID-19 Economic Recovery Strategy and emerging Government priorities; * Reforms in Public Financial Management and taxation shall be sustained to enable the National Treasury to mobilize adequate financial resources and enhance absorption capacity; * Sustained implementation of succession planning, especially with respect to recruitment of key technical staff; a Sirengthening Monitoring and Evaluation Framework and capacity; Continued leveraging on ICT to ensure timely delivery of targets; * Enhancing working environment and sustained refurbishment of offices to provide accommodation of staff. A Prioritization of ongoing projects and fast tracking to ensure timely completion. Going forward, the National Treasury will implement a risk management strategy that will identify monitor and control risks associated to its activities. This will include government investments and cash flows, banking, money markets and capital market transactions as well as borrowing. JULIUS M. MIUIA, PhD, CBS PRINCIPAL SECRETARY/ NATIONAL TREASURY XX T!iii 4 .' TIOAAL TREASi1RY. -AND PLANNING I tI ual Report and Financial StatemeIs Forthe Mearlnde 30. June 2022. 3.0 SFVTEN NT OF PE'RFORMANC AGAINST PREDETERMINED OBJECTIVES In1troduction Section S 1 (2( ki) of the Public Finance Nanagcment Act, 2012 requires that, at the end of each financial year. the accounting officer when preparing financial statements of each National Government entity in accordance with the standards and formats prescribed by the Public Sector AcCouning Standards Board includes a statement of the national government entity's performance against predetermmned objectives. The key development objectives of the National Treasury's 2018-2022 Plan are to: a) Strenathen organization capacity for quality service delivery; b) Enhance mobilization, allocation and utilization of public resources; c) Ensure stable and sustainable macro-economic environment; d) Ensure market structures that encourage competition and orderly conduct of business; Progress on Attainment of Strategic Development Objectives For purposes of implementing and cascading the above development obcctivcs to specific sectors, all the development objectives were made specific, measurable, achievable, realistic and time-bound (SNLART) and converted into development outcomes. Attendant indicators were identified for reasons of tracking progress and performance measurement: Below we provide the progress on attaining the stated objectives: MDA Program Strategic Outcome Indicator Performance Objective General To enhance Efficient and No. of vehicles 3,528 security vehicles were leased Administration, institutional and effective service leased for the National Police SeR';ce Planning and human resource delivery towards enhancing security Support Services. capacity for quality delivery of Government Developed one Government Investments Management services Investments Information System (GIMIS) Management Information System (GIMIS) % level of On Boarded and maintained all compliance to Permanent and Pensionable (P&P) PSSS Public servants of age 45 years and below in the Public Service Super Annuation Scheme (PSSS) No. of Pension 27,117 pensions clams have been claims processed processed within 60 days of submission. To increase the Increased Annual National Budget presented to parliament. reliability, reliability and Budget oresentedi I Xxi TIEN N TIO.NAL TRE ASUR A.ND ILAINNING Aii n uial Report and 17iauncial Statemhenit Fär thev ya- ended 30, June 2022. MDA Prograra StraVtgic Outcome Indicator Objective Public Financial stabi:ty and soundness of the to Parlament by Manaement soundness of the financial sector 30t Ap i! 2022 financial sector 1 ~~~ ~ ý nrnUl iO'~ h i~f ~~ mobilized in Kih rivate capita[ was nob* (Bifion) foowing private ertor investme't of fliur PP; projects. nrne: Roa Annuity Lot 15,8; Nai!obi Pxpressway and KDF Housin io. c FPP rou1 (4) PPP pr ojects were aSPrOVE projects approved namely: Road Annuity Lot 15,13 Nairobi Expressway and KDF Housin. Projec. No. cf Regitered Recgist.creri 210 S. AGOO Enterpr.aec AG-PO E,-terorises No. of Drk,c Developed one M6d;um Term dtb -- 'stratey. No. os fvIvAuditr ConducteJ 20 V:usiuc ;or reports Adits due. to incre'se'd r2vests fcr Iconomic and Fo ensure a stab!e Stable Real GDP growth 6.8 % F;iancial Po!icy macroeccnomic macroeconormic Formulaion and cnvironment environment - -- - - -- ---- Ma.g tion rate (9) 7.9% Mvan.agem'ent 1 Mionths of import 4.9 months of irnPort cover cover % of fisc, dencit (6.4) % of CDP rNo. of PCI: ces Deveoped the Kenya Digi Finance Policy 2022, Dratt Nationa Insurance Policy 2021, Kenya cred*t and Draft Guarantee Policy 2022. County /ocation Prepared the County Allocation of of Revrnue Bi!! Revenue Bill (CARB) 2022 & Dvision (CAR3) & Division of Revenue Bill (DORB) 2022. of Revenme Bill (DORB) xi THE NATIOA4L TREISURTAND FL4NNING Annaitl Report and FinaiaiI Stat"eents For the year ended 30, Juine 2022. -r-- MDA Program Strategic outcome Indicator Performance Objective Objectives A total of 193,516 client outreach accessing was achieved in both wholesale and Agricultural retail lending Finance Corporation loans Value Capital The Government allocated an initial injected into the seed capital of KSh.3 billion toward Credit Guarantee the inaugural CGS for MSME- Scheme (CGS) in KSh. (Billions) As at 31st July, 2022, the Scheme had facilitated private sector lending to the 11 sectors of the economy, 3z designated by CBK. MSMEs across 46 counties had benefited fr:,m credit facilities guaranteed under the Scheme. All categories of MSMEs have been able to access credit under the Scheme. During the same period, approximately KSh. 4.03 billion was lent out to target beneficiaries. No. of legal 38 Counties have established their frameworks on County Climate Change Funds financial services (CCCFs) and opened special purpose sector developed accounts to receive the Program Grants. No. of Counties 40 counties have developed county with CCF climate change laws i.e., County operationalized I Climate Change Acts and County for the FY Climate Change Fund Acts. In 2021/22 addition, twelve (12) counties have developed County Climate Finance Polices. Market To promote and Sustained high % of consumer I0% of the consumer complaints Competition and sustain productivity and complaints on investigated and 64% Consumer Creation of an competition cases concluded xxiii Anima R1 apr ,: I i naei State,leen MDAPgum- Environ rnent ik ts nvest ed % of Merger and r)" determined Merger, Devc'oped rne t i Restrictive Trade Practies and c- - rj c Practices (RTPs) Prctection Guelin and Consumer protcetior guidelines RTP Cases 60% concludEd as a % of total Investigation % of cases onid 0% riggin- conclueidý % 0 Implementation of frarnework en consumter proteion in Digi el Fin ai -- _____ 4Sectar s 'llE NMATICAAiL TRE.tlS(7Ri.IXT) PLIA'AIX'' Annual Report and Financitmonts F01 theYear edned .0, June 2022. 4. CORPORATE SOCIAL RESPONSII ll IT,lY STATI,1N1ENT/StI STAINAlf iITY RE PORING The National Treasury's core values include customeCr/(itiZen1 first, dclivcrinl{g relevart serviceS, and improvig operatiOnal exCelleCe. Guided by the above principles, %e undCri kcn thc following: 4.1. Sustainability Strategy and Profile To ensure economic sustainability, the National Treasury has put in place several measure r towards protecting the economy. Some of them include; National Iax Policy to guide tax admainsrs in and revenue collection. The policy sets out broad parameters on tax policy ard rlated tx manatiem. ofna. with the obectives of providings, policy guidanc on the collectity (PFor em s) a id es been of tax laws; the basis for review and development of tax laws; guidelines to stakeholdr includir investors on tax policy matters; guiding principles for the Kenyan tax sstem; and a leal franewore f granting tax incentives to various sectors of the economy; Going forward into the mnediumn t,-r-m. !h,: Government will continue in its fiscal consolidation path with the overall fiscal deficit bdeein o haintainp broceadl at the levels outlined in the Budget Policy Statement (BPS). A Debt risk oManagercnt Frarntvkok was also developed to ensure debt is maintained within sustainable levels. Tohards, holisti manageo of information security of the PFM Systems, a draft information spct fM Systems) policy hstbe developed. The Policy provides guidelines for operational environment including but no limite Information Security governance, cyber security management, systems and applicantons stcung. communication security and human resource security. Additionally, the National Treasury developed the processes and procedures manual for Credit Guarantee Scheme to guide in the imp!ementation of th Scheme. Overall, leading economic indicators including interest rates, Foreign Exchange Reserves bala c or payments and, money and credit for the fourth quarter of 2021 and the first quarter of 2022 rcorded stan performance anrd point to strong recovery from the adverse impact of the COVyD-.9 pandemic. stable performance and point to strong recovery from the adverse impact of the COVID-19 pandemic. Going forward, the National Treasury is committed to promoting Gromth enabling nvestments through the implementation of the Economic Recovery Strategy. Specifically, the National Treasurv will: Scale- tip the COVID- 19 response; Reduce debt vulnerabilities through revenue-driven fiscal consolidation planl that target to stabilize the debt to GDP ratio and subsequently put it Onl a dowvnw,ard path; Support structural and vovernance reforms while addressing weaknesses in state-oNied enterprises: and. strengthen monetary policy framework and support financial stability. 4.2. Environmental performiance The National Treasury has constituted a committee comprising ofticers fromv the key Departments otf the Ministry to oversee all matters relating to environmental sustainability. The C omittee has since developed a ministerial policy on the same in line with the National Policy on eni rotnental management and participated in planting trees in Machakos county thus contributing towards the 10 percent tree cover initiative. xxv THE NA TIONA L TREASLTRYA ND PLAA17NG Annual Report and inancial Statements For thy ear cnded 30. June 2022. 4.3. Elmployvee welfre Employee weifare is critical for cffective implementation of the programmes ant Projwcts of In organization. Noting the importance of human reources, the National Ticasur: las Dpt established to handle Human Resources Management and Development The Miniis Wy aN O established a Human Resource Management Advisory Commitee and Departwntal Traing Committees that processes all he promotions, discipline, training, appraisal and gcieral cvmplayeC natere in line with the Public Service guidelines and procedures. In addition, a comminittco on ocfupational sWen and health has been established to follow up of the safety conditions in the work place. in orer r and retain competent oficers. the National Treasury conducted capacity building i,r the invhff in o technical subjects and recruited effieers at the entr grade to fill skills gaps and enhance hu1man rewoce ciapaity. In addition, -ie National Treasury continued to implement succession mnagement lan b declaring vacant posts to be filled by the Public Service Commission. Further, the National Treasury has continued to build the capacity on the online staff appraisal management system in collaboration with the Public Service Commission to ensure seamless implementation of the system. 4.4. Market place practices The National Treasury ;s responsible for promoting fair trade practices in the eco:omv. To ense effective implementation of this function assigned by the Constitution, ore of the progr:nutes implemented by the Treasury is ensuring that existing market structures encourage conpetition ai, orderly conduct of business in order to support high productivity and competitive markets. This is undertaken mainly by the Competition Authority of Kenya, a State Corporation under !he Na-iondl Treasurv. 4.5. Community Engagements To mitigate technological hazards, terrorism, fire and natural disasters, the National Treasury engage professional security services firm contracted for purposes of enhancing security in the Ministry. The National Treasury continued to improve security within the building and its environs by use of CCTV caneras instalBed at the Treasury Building and at the entrances and naintained firefighting facilities the premises in collaboration with the State Department for Public Works. XXV] THF NTIOAAit TRHISUR V.LD PLIANIA(; 4nnual Report1. anldFnnilSaeet For the year ended 30, June 2022. 1. STATEMENT OF MANAGEMENT RESPONSIBILITIES Section X1 (12 of the Public Finance Management Act, 2012 requires that, at the end of each financial ear the Accounting Officer for a National Governu net niltity shall prepare financial statements in respect of that entity. Section 81 (3) requires the Finaniiicial statements so prepared to be in a frn that complies with relevant accounting standards as prescribed the Public Sector Accounting Standards Board of Kenya from time to time. The Accounting Officer in charge of the National Treasury is responsible for the preparation and -resentation of the entity's financial statemonts, which give a true and fair view of the state of affairs of he cntity for and as at the end of the financial year (period) ended on June 30, 2022. This responsibilt. 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 entity; (iii) designing, implernentIng and maintaining internal controls relevant to the preparation and fair presentation of the financial statements, and ensuring that they are free from material inisstatements, whether due to error or fraud: (iv) safeguarding the assets of the entity; (v) selecting and applying appropriate accounting poiicies; and (vi) making accounting estimates that are reasonable in the circumstances. The Accounting Officer in charge of the National Treasury accepts responsibility for the entity'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 Accounting Officer is of the opinion that the entity 's financial statements give a true and ftir view of the state of entity's transactions during the financial year ended June 30, 2022, and of the entity's tinancial position as at that date. The Accounting Officer charge of the National Treasury further confirms the completeness of the accounting records maintained for the entity, which have been relied upon in the preparation of the entity's financial statements as well as the adequacy of the systems of internal financial control. xxvii Annua1 Rlleport aind inancial Smeent ior theY ear ended 30, Jie 2022. The :\ceoun:iting Oìe ~ inLL~I chr f he Na''Vtional rcv:;ory coJiVn :fi ta t te eni aplicaNle G ernmm Rcguliations ail tlie erns o eerl linancin cenans (h th the~ enliiy's funds received d~uring the year under aud it were usew~d fri thie eliib puhi'.y they\ wve~c imendedxi and wcre pro~perly~ accounted for. Futher the Accountin, O c entity's financia] statements have biln prepared in a form tihal complies with rele cc n standards prescribed by the Publie Sector -\ccounting Staiidards Board ofK-( ny. Approv,al of tie finanlcial s!atcieits The National Treasury financial statements were approved and signed by the Accom:.gOf DR. J LIUS MU PA. PhD, CBS NEMWEL M. MO FANYA Prineipal Seeretary ICPAK NO. 2367 HEAD OF ACCOUNTING lNIT Ill,'/ tIt, 1 for nd rY 10 c ersin Suportof the 0 1 was ntpo,Sible to ascertain t the current a-nd prior years. 2sition of AssIts balance 01 1'shsj9,5b,,2 AcquS acpsand payments reflec se e 9n No e .1 'ýt a nts9G04 v.t ~~r o te dsated h ngmuepa S da n r s4 08e meeto ascertain the accuracy~ and va\ d' cY stten has not been possi. on rears n ofaets for the current and pri t,e ction of asscialized Materials aad Services 3. Pu chases a bitedlect an amuto 15a 6t thypýeinaca Tts f receipt and paymets riesc a n ote -c uner ste og[ods and services whi s 1000,58,7 incur je6to the expenditue undter uls cnoudes an amounlt of theschedule inupe otte the ie\d o staeets naterials and services. However, th andmunt pid ut' oiteepel~~i spe dcatied the item code, date of paymeditu as nurrepad.btoitdQeied o paye and the purpOSe for which the expeflditure coSuthrefoentb.cnimd reyof the fXPle In the circurnstances, prop 4 r nauthorized Utilizationt of Surpluse Review of the financial statemtsreeaed that, durang theo Kshs.96,r00,506,622, staternent of receip t an y ieeets an xPurdklas TheStaern gods nd ervcesWhch, 3s 28,74 ncuf pndýur could nt be~ i cn m . Frhr M n to ~to 5. Budgetary Control anIfd Performanc~ hesummary statement of appropiatlon - a finlal receipts budget and actual on cornl ,ahk bCLL Kshs 95.959,362,651, respectively resultimn~ in unde' funr. 0r 16%~K of the budget. Similarly. The Natic i Tran'.ury -,7 againlst an approved budget of K shs.1 14,5 ,,735,72' resuim Un t of Kshs.18,425,229,102 or 16% of the budgelt H-owever, the atual expen tue the receipts realised during the year by Kshs.141,143971. The undr''J underperformance affected the planned activ'ities and may have: impcte ner. service delivery to the public. REPORT ON LAWFULNESS AND EFFECTIVENESS IN US L RESOURCES Basis for Conclusion 6. Lack of Fixed Assets Register Annex 4 to the financial statements reflects a summary of fixed assets register histancal cost of Kshs.5,614,749,805 (2020: Kshs.4826,589,614) including a voledaT eshs.781d of1 as kaddition sduring the year under review. Howeversse inal reaesuddent prod aassets' c re istrtupottehses!au Kshs.5,614,749,805 as required by Regulation 143(1) of th Pubor Fnacet vaalueat (National Government) Regulations, 2015. e in the circumstances Management was in breach of the law. REPORT ON EFFECTIVENESS OF INTERNAL CONTROLS, RISK MANAGEMENT A RDOURNCE Conclusion 7. Taeem re no n erpo issues relating to effectiveness of internal controls, risk ngerumStandes,venaeme 2 19 EY.10ýONAÄL TREAUR )N PL ANMVN .nun! ReporT mi Financial Sftateecn1tls ur or ;e year ended 30. Jume 2022. IAYM TN'IS FOR TY 1YE YEAR ENDED 30m JUN 2022 202 1-222 2920-2021 P roceeds from Domestic and Foreign 15.0 1 s15.02 85,799 49- 852 8,791 ,6 i ExChequer releases-23 P"roceeds from Foreign Borrowmngs 15.0316,854lI174532- .ecpts 4 _ _3lÖ79-,2Ö5,8215.04 31,07922058126 27 ¯OTAL RECEIPTS 126,414,837,692 95,959,362,0 2 PAYMENTS ---- 15.05 3,192,672,341 2,817 958.93 !Comr,en-satlin Of Employees 3126234 a15.06 25,026,311,607 26,166 3558 7 se of goods and services 500 000.0,0 Subsidies 15.07 5 10 80.035 Transfers to Other Government Entities 15.08 91,709,187,761 41 81 s 5. c) Other grants and transfers 15.10 4,234,853,899 417 Social Security Benefits 15.11 8,049,718 6 9 -cq tio o- ss.ts15.12 1,606,952,339 19.356 b Acquisition of Assets -- Other Payments 15.13 OTAL PAYVMENTS 125,778,027,665 96,100,506.622 SURPLUSIDEFICIT 636,810,027 (141,1-13,9701 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.3 t 2022 and signed by: .j-- DR. JULIUS MUIA, PhI), CBS NEMWEL M. MOTANYA Principal Secretary ICIPAK NO. 2367 IIEAD OF ACCOUNTING UNIT THE NVATONXA 1 TREASURL.NV) PLNNING A nnutifal Report an d 1Finianiciail Statetsll For the year ended 30, June 2022. 4. STATEMENT OF ASSETS AND 1IABILITIES AS AT 30".JUNE 2022 Vi- -- 2 2I 20202,2, FINANCIAL ASSETS Caish and Cash Equivalents Bank Balanccs 15.14A -z 3.657,492.025g 3. 6 6. Cash balkn:es 15.14B 2.824,672 Total Cash and Cash equivalent 3,660,316,697 3,603,999.361 A\ecounts Receivables 15.15 1,790,939,597 -.165.54,9: Total financial assets 5,451.256,294 4,769,654.332 FINANCIAL LIABILITIES Accounts Pavables 15.16 3,647.916,738 z. 98.835._79 Net financial assets 1,803,339,556 L70.517.53 REPRESENTED BY Fund balance %/fwd 15.17 1,170,817,853 1 473,937.40 Prior year adjustment 15.18 (4,288,324) ( 976 Surplus/Deficit for the year 636,810,027 (141.l4 971 NET FINANCIAL POSSITION 1,803,339,556 1.170.817,853 The accounting policies and explanatory notes to these financial statements form an interal part of the financial statements. The entity financial statements were approved on 2022 and signed by: DR. JULIUS MUA, PhjD, CBS NENIWEL M. MOTANYA Principal Secretary 1UPAK NO. 2367 lIIE AD OF ACCOI;NTING UNiT TIE X TION -L TRlEASUR YAN) 'I ANSNI .4nnua uReport anld Finlancil Stafenents< For rhe yfear ended 10, Ju, 2022. . I STATFÅ IENT OF Cl~AS1 FLO\WS FOIZ H N - NDED 30' . 1 ,22 c pu .atý for oneratin income P'eca from Domestic and Fori in Grants i 31 9375,95 ,51 4 i 0 1 Rses - 2 99.192.52 es: 31 7920581 21t 254,650.178 95,8 6 fs for operating expenses ano CfiEmployees 5 ,05 3112.? 3467 -uods and services 5.06 25,026,311,607 26 66 ut s5.0? _____ s te Othcr Goverrnent Units 15.08 79709,187,761 4, C:t;uja and transfers 15.1 4,234,853.899 5,417. ee ScCarir B-enefits 5.11 8,049,718 2,6 124.17J,075,326 76,"44.29-.ý4 el cashflo, Lbfore ajustnents 2,083,574.854 19,09 6 1,3 Adi sments during the year c on lucrease)_in Accounts Receiv,able 15,19 (625,281,626) 2,6'. 3gcree) in Accounts Payable _ 15.2 19,080.259 3,5 . F Year Äi;uuments 15.18 (47288.324) _(16,9 7.Z e h f. fron operating activities .1,503,082,163 22.,1.43 421 CASHLOW FROM INVESTING ACTIVITIES Acquisiiior. of A set; 15.12 ,606,952,339) (19,356,211 .65 Nct cosh fEows from in-vesting Activitic3 (1,606,952,339) (19,356.211,6~5) ASHFLOW FROM BORROWI(ING ACTIVITH S Poceeds from Foreign 13orrowings 15.03 160J87,514 ___ 1 Net cash flov from financing activitics 160,187,514 171,56.323 NET ENCREASE IN CAS1 ANI) CASII 56,317,338 2 ,3 6 t lQI:IVALENT _ 6_3 17,_ 3__,______- Cash and cash equivalent at Ilf`GENNING of ffi year 15.14 3,603,999,3 5323.2 Cash and cash_equivalent at END ofatl, ye 15.14 3,660- 69 M0- t9 1 E, AI 7OAAL TREASURYAAD PL4A?vINN G A nnuial Report and Financial Statemtents For the Year ended 30, June 2022. 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 2022 and signed by: DR. 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L �.t� w'�у ^ `. е• � 4r L j� ,� ` •� д�' � '� С. •+ы . � ° а ч � •,. � `� � � G в .С v �° С � � 1,� � г� �л. � k, t-. у� "�; ►в гf � .в .^в, ti • 4 rwD \. С ^ f ,J F•, .� ,� '�v� 'r у `у � у .••• � •у ,�^� . � �'4 � и ''J fi, ,�.�. ` � � '�� С � ц � г.. �`1 � � � � С/' � .. С+ С : . ё✓ � � � � � � �' .е_' ', ` � С +.. .. 4 � �� J ^ �3 и :+ С�`„ 'С! •... -' + �/ .! � � 4 � \' •�' авlвi вСв .R�в � •"• �i •\. �� и�� ` � •V •,4�, "� � .- G � � С' ` `*+ : С �. О '�, , � � l �,r� С _ .~.• � ,;; ..`'. t' С• L` 4 � i. � �. � � "L .,,� л�' �.% л. V 4.i \ "U � :.ы Е`'� О � •а. °,-` в.�н i� � �` !.'.- ^'••"ь. 1у. '�- � � �в.. ". F`* ,, � I . . .. �, . '� . , � _ ,� .. .. i , Г � ,, . . ,, . . . ; ' "" � � и � �� "� 1 ' ' -• .' , _. �r _- j - ` � .,., ; г � . ;. • и �, ' ;. ,. .. , . ' , .. ; . . 1 ._ . � д . : � . . , �, + I � � 1 .. I ,, .. . .. - , � л' � i . . . ..ш � � � � I � � � , , ! , .. � -. I � 1 .. ,.� � � , I ,, , _ , .. ; , � г, -+ и {` . ; , _. - Э . . . � � � � л. � . I I . I f I - ' ! � х а � , - ! f I '. � � . ' i . . . . � �� «� _ . . . . I _ь. ' ' .. I . ., . .1v 'г. � _` __J�1 � ; ., ' " `-' .! . � Г. А г I ..' у = Э._., _... =._..._. �, � � "- ' j л . . i � � ... � � . J. . _ . ..... _ а �_�r� �� � �� м . : .��� . ' . . � " �1 - -t г' г r' ' � . _. . - � � �. � � � �� � . ^ ( -- � _, � � �-1 , �� {�".�•I � 1. , � � 1Г I �� k i . у _. � - � � i .:. I С� � i С � , ' � ;: � ri ( �� ч 7 j � ... . �� 1 '"r' � ". У ' ^_ � ,_ у_ � ! � ^ I -' ' й � . . .. � Э� � � _ � �.+ц i I � ; �. , , � i Г'- �,.. � � �.� ��' � I г J. " + • � � � . ' Ч". -�• -7- I +.". г,- ! ' , i. I ,�� . � � г�� 'У_ г� ,.,,� � , : � � . . , _ I •Г• г�г, ' ''„ь _ � � „ i ���� � �1 .,�„� ; . .�rr Э .. i L= 1 1 � ! у, .� � , i f '-' ( 1 _ _. . . _. . ._ . __ . .. . ._.�_- .� : . . ' . i � ! Г� � и ' _ iГ j _ -, � � . г м � � _' � _ г. i ((w г! r1 i �^II�, r�`� _r; г _ ` � . ' � � � 4^ д � �. ( ' / � __ 4 `- . 7' ! � � I''° л- .'J� Г♦ � i Г^i (! l !� I �г�. �f гг � � � ar �. I :.г � � � ' � _ .. ; I г , Г`- С�� � �" � ± -��' i i г" " 4�: +' ^ t Г i- i ; �_г � r ..г . . . _ ( `у ,.,. Г � ! � i ' � ; r-, � 'г. �!, � � t' у' ° i �`, � Г' ; i � ч � _ _ . _ � _ 1 _ . --; _ __ .-_. �. , --t- i ; , , � - �_ - ' � f- � � � � � � i i г �' . j ; � ' � ( i � у . ° + . r .. � ( ( � { �i. i : ., , -_- � ` ;' 1 ! ' � � �i � � � 1 � � � � . , ., .. _ _. _ � I � ' � � _,. � � � , � � � ,) � I � � ✓ ' , , •1 ��, � � II � � . . .. �п � у..' -, г, ' ; 1 i I' � "' __ ^ =г ._ + � I -" Э � ' i " � п 1. ' i �.. � 1 � ' _ � .... , ,� � ;_1 �-, i , ., , т� ... ` - � ' _ м •`�j • +',��-� �.r; -. � i � '_ ..- ..~ ...--__ ,, - I� � � 1 j•`; ___ �_ , � а - ; ; � ; , �- _ : � I . ч `- � i 、戸 &―、，-;-.-: ず り --．、－年・い― イ レ -.―、―、／/-．、？-./ /: 13.1濺亂’l)(：亂之l&[,&XI疋Ct&,&l(）計哺1孓、‘屆，I疋（)（不！《，、入！〕11兀k&\N日）R廈〕I呈一l&1之（》（,I支，\Nl、：‘。＇L,{k,，· l) 韭上 THE N* ' 4TIO '\',11 7'R1,.,1SUR)'.4N1) I'L.-LY"ViNG Annual Reporl and Vinancial Stareinetav For theyear ended.30,June 2022. 14. SIGN I F1 CANT ACCO U NTI N G POLICIES The principle accounting policies adopted in the prepar'I'ion ofthese filiancial 'tLitemclits are "'M O"It below- ,I - Statement of Compliance and Basis of Prqmration The financial statements have 11CC11 IM-C11,11'CLI in accordance \vith Cash-basis International PLIMIC St ctor Accounting Standards (lPSAS) a- prescribed by the Public Sector Accounting Stand ird, Bo2rd (I)SAS13) and set out in the accounting policy notc below. This cash basis of accountim: has oc -In supplemented with accounting for; a) receivables thaL include imprests and salary advanc- and b) payables that include deposits and retentions. T he financial statements cornply ,vith and conform to the form of presentation prescribed by th%. PSASB. The accounting policies adopted have been consistently applied to all the years prcsented. 2. Reporting Entit , The financial statements are for the National Treasury. The financial statements encompass t-nltl reporting ent:ty as specified under section 81 of the PFTM Act 2012 and also comprise ot* ll'c follo,,ving development projects implemented by th(. entity: 3. Reporting Currency The financial statements are presented in Kenya Shillings (KShs), which is the functionall and reporting currency of the Governmeni and all values are rounded to the nearest Kenva ShilliM, Significant Accounting Policies The accounting policies set out in this section have been consistently applied by the National I reasury for all the years presented. a) Recognition of Receipts The National Treasury recognises all receipts from the various sources when the event occurs and the related cash has actually been received by the National Treasury. i) Tax Receipts Tax receipts are recognized in the books of accounts when cash is received. Cash is considered azs received when notification of tax remittancc is received. 12 THE X4 TIONAL TREASUR ' AA) PL AITNG AIIIIuIl Report and Finn till SNttmets For the Year ende d.?O, Jie 2022. ii) Transfers froI the Exchequer I ransfers from the exchequer are recoenizecd in the books of accounts when cash is rcceived. Cash is considered as received when payment insiriction is issued to the hank and notifed t) t: receiving entity. iii) External Assistance External assistance is received through grants and loans from multilateral and bilatera: development partners. Grants and loans 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/loan 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. A similar recognition criteria is applied for loans received in the form ofa direct payment. During the year ended 30"' June 2022, there were no instances of non-compliance with terms and conditions which have resulted in cancellation of external assistance loans. iv) Other receipts These include Appropriation-in-Aid and relates to receipts such as proceeds from disposal of assets and sale of tender documents. These are recognized in the financial statements the time associated cash is received. b) Recognition of payments The National Treasury recognises all payments when the event occurs, and the related cash has been paid out by the National Treasury. i) Compensation of Employees Salaries and wages, allowances, statutory contribution for employees are recognized in the period when the compensation is paid. ii) Use of Goods and Services Goods and services are recognized as payments in the period when the goods/services are paid for. Such expenses. if not paid during the period where goods'services are consumed. shall be disclosed as pending bills. THE N- TION-1L TRL.ISI RY AND PLIANNING A nnual Reprt aid Financial Statencittv ,For the year ended 10, June 2022. iii) Interest on Borrowing Borrowing costs that include interest are recognized as payment in the period in which they are paid for. iv) 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. N) 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 rccorded 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 financial statements. 5. 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 National Treasury includes such value in the statement of receipts and payments both as receipts and as payments in equal and opposite amounts; otherwise, the contribution is not recorded. 6. Third Party Payments Included in the receipts and payments, are payments made on its behalf to third parties in form of loans and grants. These payments do not constitute cash receipts and payments and are disclosed in the payment to third parties in the statement of receipts and payments as proceeds trom foreign borrowings. 7. 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 maturiLy of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of' changes in value. 14 TH E NAT'1IYOXt L TRE-1Si 1 .1V!) l'i':!XY i .- i:nnaul Ropo rt an d Fin,anciarl Stato,eent% Fo: :; the par end22. \ 8cc,on1 balances include amiumnt hld ;t2 ' d P,1k lf " , i' mmer:i:'cial' ZI:mks ,1 the el i te financial ye:r. Riørkiion on Caish 4c5v4te cash iepresents :untinns thu !e lIle re;ui'e fom being uned xe o least tvelve months after the rportin neUik i hi Ash is li ited for dire c cats maintained in deposit bank accontis : reirtdi for use in refni n zzrj:s. As at 30th june 2022, this amon: i to KYs.3,647.916,738 cmiparu t, 11 3~c 7 in prior period as inidicated. Thecj e cre n 'othi restrictions on cash duiring. th- . Accounts Receivable fo e pumcosOs of thesc financial statements, me acbadances to authori pubic : - ý instihuvions which wvere :13 surrend:red cr acclunied for at the end ofth financiae! e 2w dv recciyables. This is in recogniien of the : n praece where thi 'm.ents are recognized as payments when Ly acccnted for by th impirest Ar A ! cis hn enh:meement lo the c 2s accountin2 polcc. OVer maccums rcen aLles are Az A irJ l sta:eients. 9. A:C"Unts Payable * tepurposes; of thcse unancial statements, detpsis and retentions hed on hhaU f :n : Viavz ben reccgnized on an accrual basis øs accoLnts payables). This is in recgIn :::rnment practicetofreaiing a portion ofccatracted services and wcorks pending tl¶ilmem f chinitions by the contractor and to hold deposits on behalf of third parties. This 5 enhancemen, to ihe cash accounting policy adopted by National Government Ministries .na riccn:ic;. Otr kabiliies including pending bils are dise!nsed in he finaci setmemvr censist of6 npaid libilities at the end of the financial year arising rcn nes puedg x scrlets during the year or in pas yvars. As pending bl: do not invAl e p . ush mn ihe reputing period, they recorded as 'memoraonu' or 'of-lane' tems ' re\ s:me A hu overli net cash positui 4f ihe Enuty al he em of tHe vem. When the p2nJw l4, fiin' sceed, sh paymntns aire in Muded ii (e SItemen of Reciptb and Patei m A yealr in wch th paym ns nre mad. I - NHEN.-iTION I L TI,/ -ISUTIYAND PLANNING .-inval Repo~rt and Financial Stateme'nts or rm C1r ened 30, Juine 20212. i i. B d e The bugill dcvelopcd oi a coliparable accouitin basis (cash hasi except for i npr' -!nd deposits. which are accounted for on an accrual basis), the same accounts cassificat1ion i. and for the same period as the financial statements. The original budget was approved b' Parliament on June 2021 for the period I"s July 2021 to 30"' June 2022 as required by Law and there ere two supplementary adjustments to the original budget during the year. A comparison of the actual performance against the comparable buduct for the financia year undej review has been included in the financial statements. Government Development Projects are budgeted for under the MDAs but receive budgeted funds as transfers and account for them separately. These transfers are recognised as inter-emity transfers. 12. Comparative Figures Where necessary, comparative figures for the previous financial year have been amended or reconfigured to conform to the required changes in presentation. 13. Subsequent Events There have been no events subsequent to the financial year end with a sinificanrt impact on he financial statements for the year ended 30th June 2022. 14. 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 tihe earliest priol period presented, restating the opening balances of assets, liabilities and net assets equitv for the earliest prior period presented. During the year, errors that have been corrected are disclosed under note explaining the nature and amounts. 15. Related Party Transactions Related party relationships are a normal feature of commerce. Specific inftirnation with reards to related party transactions is included in the disclosure notes. THEAA4TIONAL TREASICRYAND PL4 1NG Aninal Report and Financial Staremjents, For the vear ended 30. June 2022. 1k6. Contingent Liabilities Section 148 9of the PFPi Act regulations 2015 requires the Accounting officer of a Nationa Gowernment entity to report on the payments omde, or losscs incurred, by the National Ogoernment entity to meet continCnt liabilities as rLsult of loaus during the financial year. A contingent liability is: 3) A possible obligation that arises from past events ani whose existence will be confirmed onl by the occurrence or non-occurrence of one - more uncertain future events not whotly within the control of the entity; or A present obligation that arises from past events but is not recognised because: i) It is not probable that an outflow of resources embodying economic benefits or service I) potential will be required to settle the cb,igation; or ij)ic amount of the obli2ation cannot be measured with sufficient reliability. Soe of conlingent liabilities may arise from: litigation ii progress, guarantees, indemriTes. Lete-r- of comfort' support, insurance, Public Private Partnerships, The National Treasury does T recognize a contingent liability but discloses details of any contingencies in the notes to the fluncial statemnents unless the possibility of an outflow of resources embodying economic bene;1s or service potential is remote. TIIE TIN'-! L TRE. ISUR YAND PLIANVING A uliltit Report and Pinancial Statements For the year ended 30. June 2022. 15. NOTES TO 'liE FINANCIAL STATEMENTS 15.0 1: Procceds froi D)omestic and< Foreign Gravts <.1:Cli re vcjw*,ý Sidy and Capacity Building 9827,126 9.075.750 Global Fund 1HIV/AIDS 3,7633454,034 9.041,280199 Global Fund Malria 750,690,460 1.627.977 187 _______750,690.460 1.627,977.18 Global Fund TB 514,596,306 1 i322.822 Malaria NFIM3 143,665,670 HIV NFM3 4,179,181,794 TBNFM3 8,536 126 Total 9,375,951,514 10.796,655,958 15.02: Exchequer Releases Total Exchequer Releases for quarter 1 18,314,377,976 12,543,080,81 Total Exchequer Releases for quarier 2 14,162,258,785 15,414,121,8 10 Total Exchequer Releases for quarter 3 20,400,122,854 1 3,378,151,551 1 Total Exchequer Releases for quarter 4 32,922,733,237 43,456,247,158 Total 85,799,492,852 84,791,601,100 15.03: Procceds from Foreign Borrowings _____ _____ ______>0 -21: .)t?I Foreign Borrowing - Drawdowns Through Excicqucer 0 j Foreign Borrowing - Direct Paynerts 160,187, 514 1 7,.456,323 Foreign Currency and Foreign Deposits 0 0 Other foreign accounts payablle 0 0 Total 160,187,514 117,456,323 18 THE YATIO.NIL TREASURy,AD') PLIN\N< Alnnual ReporI and F'inancial Satents o the yevar 4ndd .30. June 2022. i5.0¼: O)ther Receipits Dircct receip* from AU Subscription 4,234 853,899 253,649.270 SGR ,26.844 35 1,913 Total 31.1179,205,812 253,649,270 This developmen vole bank balance carred forward 5.05: Compensation of Employees 2 -22022 - 20201-2021 Basic salaries ofpennanent emploees 1,652,229,155 1,647,383,253 Basic wages of temporary enployees 122,414,914 148,200.461 Personal allowances paid as part of salar 1,418,028,272 1,022.375,218 Tot al 3.192,672,341 2,817,958,932 15.06: Use of Goods and Services 20212022 2020-2021 Uti!it.es, Supplies and Services 144,289,454 143.675,645 Cemmunication, supplies and services 37,506,914 11,959,275 Domestic travel and subsistence 154,918,852 86,66 1,133 F 2rign travel and subsistence 51,121,153 28,494.04S Printing, advertising and information supplies & services 15,115,717 22,619,877 Rentals of produced assets 27,479,460 38, 864,345 ITraining expenses 108,414,514 53 3 92,'949 Iospitality supplies and services 452,221,745 310,q86,211 i Insurance costs 3,883,463,447 3, 002,262,873 Specialized materials and services 7,582,580,609 10,008.528,374 Office and general supplies and services 12 1,259,339 18,783,834 fuel Oil and Lubricants 13,063,400 12.003,193 Other operating expenses 12,400,281,803 12,3, S,68 o15 Routine maintenance - vehicles and other transpon equipment 18,634,230 16,220,3 7 Routine maintenance - other assets 15,960,969 12,844,801- Total 25,026,311,607 26,166,355,87S EXTIO,, il,r TR, Ist 1" f %? frt'w yoor t'm4! JwM-; ', SubhILidie to Punblic (oprtin lin" \akultur Hn.nce Errto 50S: Grants and Trainsfers to Olher (;o elnmen't ntIlilive T'ransfers to) Nation al Glovernmnt ent ities Curre:nt cral, s lkcernment auencies anld le leel .: gwernmlenit 30.895. capital grants tovemmi,,ent agencies and other C- cl el' overnmenl 5 5.680 979 5 Other Curreni transfers grants and subsidies O:her Capital Grants and Trans 5,133. 084, 7 OTAL 91,709,187,761 8 15.09: Transfers to self - reporting entities in the vear - K'shIs 1&h '. Transfers to SAGAs 27,846,620,631 51,650,104,864 79,496.75ål5 -and SCs Transfers to Projects- 8,072,788.281 8,072,78 2s GoK counterpart funding) 2,89)4,082,545 2.84es-?,45 Non reporting TOTA 30,740,703,176 59,722,893,145 1 ,463,5%,321[41. 81 0,() THE .\ ' S.uc-~u t ÅT Ii N . \11 »IN * i.-.::n-en n23 8 Garnempen-sion and etireent benefts Sisal, 1 0115 Totl3x 19 2 6 15så A te on of Assets S- - -- - - Con-'suui BuiMinus R cur hmet-,f Buýiini,gs7 .:.i and Refbrbishment of Construction and Civ1 Works 3cD. PunLse of Vchke and Other Transport Eqipme -t 9 rf Household Furniture andI u q Pur,nase f fOfice Furniture and General Equipmen 7S 73- Pu,rchs of Sp,ecialized Plarn, Equipment and Maähi, Research. Studies. Project Preparutin, Design &t Supasån 258,0 7 I Su9-5total 8955,78 2 7 2 S :naalrial Aåpwels Doms ePuMc N"on-Financial ep r -4 110 i _sewn_hjul> __tt4mtel_____-__ < , o.,-%~ 1 Tl'IE \ilt '10\t TREAS R 1 t > 'L. 1 ~ NG .A unual Report andil Financi Statmntsi For the year ended 3p), June 2 2. 15.13: Other Fljpenses C iransfer- to PN1iC ialincial Instittion mld Entelrprises -Total0 15.14A: Bank Accounts ~ t . 1,. TNT Recurrent CBK A/C Recurrent 8.905,068 631.271 No. 1000181467 Development CBK A/C No. Development 670, 219 4.2SS.32-2 _000181664 Deposit CBK A/C No. Deposit 97,664.524 218. 45C,63 1000182137 Deposit CBK A/C No. Deposit 3.550,252.214 3.3s0,385,8- 1000205024 Total 3,657,492,025 3,603,756,274 15.14 B: Cash in Iland 2 C2 i0-2 (4:! 1 Cash In Hand - Held in domestic currency 2,824,672 243.08 Total 2,824,672 243 087 15.15: Accounts Reccivahle Advance to MDAs and Projects 1,789,203 ,407 1,1 14229.08 1 (overnment Jiprests 8 '" 6 Cash in transit 22 5.16: Acgun s Payah e S'202 1-2022 2' 26-202 Re,entiOn 97,664,524 59,478396 Deposits PDL . 3,550,,252,214 3, 539.083 Totl 3,647,916,738 98, 8364 79 15.17: Fu rd 2alance Brought Forward Bar a coun 3,603,756,274 610.932773 Cash nhi d 243,087 390 5 Accou:nts Receivables 1,165.54,97 8s9.4 258 Accont's Pavables (3.59S.S36.479) 6.4) TOT AL .70,817 83 P5.18 Pi,r *ear Adjustenints a e ud t . e lie e t t'id Laink. account Balances 488 324 7 b A 70,2 I 2s'2 6 1,975,656 IHE, NATIO,NAL TRI TSUR Y. LND1 INNI,NG Ann u111al Report and Financial Statements For 1he Year ended 30, Jine 2022. 15.19: (Increase)/ Decrease in Receivable Receivables as at 1 July 2021 1,165,654,971 889 462.258 Receivables as at 30"' June 2022 1,790,939,597 1,165,654.971 Increase), Decrease in Receivables (c=(b-a)) 625,284,626 276,192,713 15.20: Increase/ (Decrease) in Accounts Payable 221-202]2 Payables as at 1" July 2021 3,598,836,479 86.848.059 Pavables as at 30th June 2022 3,647,916,738 3.598.836 .9 Increase/ (Decrease) in payables 49,080,259 3.5 11.988. -0 15.21: Related Party Disclosures Related party disclosure is encouraged under non-mandatory section of the Cash Basis IPSAS. The following comprise of related parties to the National Treasury i. Key management personnel that include the Cabinet Secretaries and Accounting Oficers ii. Other Ministries Departments and Agencies and Development Projects iii. State Corporations and Semi-Autonomous Government Agencies. Related party transactions: -~0 - 0 21li-- Key Management Compensation - 218 28' ,676, 8 8 Sub total 218,287,676 8,218 28'67 6 Transfers to related parties Transfers to other MD)As THE NA TIO-NAL TREASL RYI AND PLANING Annual Report and Financial Stateents For thev ear ended 30, June 2022. 'Transfers to S's anc SA6,s 7 9,496,725 11 33 24 Transfers to Dev'lopment Project , 072.788 2 7 7 Transfers to other non -ileportng government emities 2 89 082 5 Total Transfers to related parties 90,463,596,321 41 78 0 35 Purchase of Goods and Services Purchuse of electricitv from KPLC 144,2,9054 3 675 65 Rent charges paid to govt. agencies 27,479,460 38K64R36 Training fees paid to govt ageies 108,414.514 3 Conference facilities hired from govt. agencies 452,221,745 310.9862 1 Others 24,258,986,352 25.619,436. 726 Total goods and services paid to govt. agencies 24,991,391,525 26,166,355,876 Transfers from related parties Transfers from tc Exchequer 85,799,492,852 8 079 621,10 Transfers from other MIDAs Total Transfers from related parties 85,799,492,852 34,791 601,100 IF :TONA'-L TESR N>PAN f'ul Rcport antd Fin1ancial Statemeni.s F'r the yeiar e 3ded 30, June 2022. I PROGRESS ON FOLLOW FU OF 'lUOIR VEIARS Al DITO R'S IWCOMMENDATIONS The fllowinlg is the summary of issues raised by the external auditor, and management comment> that were provided to the auditor. PARAGRAPH RLCOMMIENDATIONS BV PAC ACTION TAKEN AND TITLE 3. THE NATIONAL TREASURY REPORT ON THE FINANCIAL STATEMENTS The Accounting Officer has ensured No Action is required from FOR VOTE 1071 reconciliation and the Financial The National Treasury Statements/General ledger balances as at 30' 1. Accuracy of the June, 2020 agree with the IFMIS Generated Fnancial Financial Statements Notes. The explanation statements by the Accounting Officer was satisfactory and the Committee therefore resolved the matter. 2. Long The Accounting officer agreed with the audit Long outstanding Reconciling outstanding findings. However, the amount has now been items have been reconciled Reconciling items posted in the cashbook cleared from the bank and presented for audit review reconciliation. The explanation by the and matter settled. Accounting officer was satisfactory and the Committee therefore resolved the matter. 3. Pending bills Accounting officer must at all times ensure The Accounting officer has that pending bills are listed as first charge in ensured that pending bills in subsequent financial year when preparing any financial year are avoided estimates of expenditure and revenues of the at all cost and where pending entity in conformity with the strategic plan bills are unavoidable, they pursuant to the provisions of section 68(2) (h) fonn the first charge in the of the Public Finance Management Act,2012. budget of the subsequent Near. 4. Refurbishment No action required from the of the National National Treasury Treasury Building Accounting officer's submission that the contractor was issued with instructions on I 7tt 4.2 Refurbishment June 2020 by the project manager to include works of 6t' and other items totaling to 7th f Trcasury bu2lm6 7-1-EY i ErN TIXL TR E AJCYR LI)D P1, LVYP\k'C A ;a!Rep(mrt and Financia11( ateme i'e the var ended 3t, Jun 2022. lsHs. 0k).0 ) 0 s.i;isIri 'srv and thcref,ore the Comm ii (tec 1 ,:re c i m ed thec matter: 4.3 pendng bills The SourI f1 pamvnen of ihe Accounting officer ensure that a maintenance : : contract for the imaintenance contraet for tc baggage scanner bacgage scainer Is Knr. supplv. put in place and the nachine serves its installation. testing intended purpose. The Auditor-General to and review the working status of he machine and commiussioning of report in the subsequent Audit cycle. banaCe Scanners. walk throucth scanners. hand- held netal Deteciors and associated works 5. Failure to Within three nonths of adoption of this The National Treasury 15 in ~rovide Assets report. the Accounting officer provide to the liaison with the Depar0m:e of Register for Audit Auditor-General verifiable steps taken by the National Asser and Liabiit National treasurv to maintain asset register for Managemnent toward s the project. The Auditor-General undertake a implementation of speciic review and report to the National Assembly in guidelines issued with the ain the subsequent audit reporting cycle. of coning up with an upated fixed asset register for the National Treasury. ~~1 DR.R JUL1US MUJA, PhiD. C11S NF.MW EI, NI. N\ITAS Principal Secretar, ICKAA NO. 2367 Il Al) OF ACCOINING IJNIT TJiK N,1T!O,A4L TREASURYAND PLANNING A m4a! Report and Financial Statements r tih e year- ended 30, June 2022. ANNEX 4 - SUM ARY OF FIXED ASSET REGIST ER ~ ela's Hlistorical Additi n- i i fers iiitori. hot b/f during te qr n/(ut) Cost e/f sii) y I evc du i(K