State Corporations A.. - The National Treasury

REPUBLIC OF KENYA
THE NATIONAL TREASURY
www.treasury.go.ke
FAX NO. 310833
Telephone: 2252299
THE NATIONAL TREASURY
P.O. Box 30007
NAIROBI
Ref: DGIPE/A/1/10
Date: December 8th, 2014
NATIONAL TREASURY CIRCULAR NO. 12/14
All Principal Secretaries/Accounting Officers
All Chief Executive Officers of State Corporations
STATE CORPORATIONS’ ANNUAL ESTIMATES OF REVENUE
AND EXPENDITURE (BUDGET) FOR 2015 / 2016 FINANCIAL YEAR:
1.0
INTRODUCTION:
1.1
Background:
In accordance with the State Corporations Act (Cap 446) Section 11 and 12, State
Corporations are required to prepare and submit their respective Corporation’s
Annual Estimates of Revenue and Expenditure (budget proposals) to the line
Ministry and the National Treasury for approval.
1.2
Purpose:
The purpose of this Circular is to provide guidelines for the preparation and
submission of Annual Estimates of Revenue and Expenditure (budget
proposals) for State Corporations for 2015 / 2016 Financial Year (FY).
1.3
Basis for Preparation of Annual Estimates of Revenue and Expenditure
(Budget Proposals):
Annual Estimates of Revenue and Expenditure for respective State
Corporations should be based on the relevant budget proposals submitted to
the line Ministry for the 2015 / 2016 FY National Annual Estimates of Revenue
and Expenditure and broad fiscal parameters. The proposed Annual
Estimates of Revenue and Expenditure should be geared towards: -
1.4
i.
Realization of Key Result Areas (KRAs) identified in your respective
sectors as articulated in the Second Medium Term Plan (MTP II) 2013
– 2017, and Sector Performance Standards; and
ii.
Delivery of Vision 2030 Flagship Projects as set out in MTP II.
National Exchequer Funding:
State Corporations whose proposed expenditure and investment programmes
are to be financed from the National Exchequer through the line Ministry will
have already indicated so in their Annual Estimates of Revenue and
Expenditure and Medium Term Expenditure Framework (MTEF) submissions
for the FYs 2015 / 2016 – 2016 / 2017. State Corporations should participate in
their respective sector working groups during the sector hearings for the
National Government resource bidding and allocation based on the sector
ceilings as contained in the Budget Review and Outlook Paper (BROP), and
the Budget Policy Statement (BPS) 2014. The proposed Annual Estimates of
Revenue and Expenditure for respective State Corporations should therefore be
within the sector/ministerial ceilings as per the BROP and the BPS 2014 and the
budgetary allocation to the respective State Corporation.
1.5
Expenditure Management:
State Corporations are urged to improve efficiency in the management and
utilization of resources entrusted to them with a view to deliver quality services,
achieve their respective mandates in the most cost effective manner, and avoid
wastage of public resources.
NO State Corporations should enter into commitments or initiate new
programmes, projects or activities in excess of funds allocated to them under the
National Government budgetary allocations or funds available to them from
other sources such as internally generated funds.
2
1.6
Dividends:
All commercial State Corporations are expected to generate reasonable returns
and should declare and pay dividends to the National Treasury and other
shareholders. In this regard all commercial State Corporations should by now
have formulated appropriate dividend policies. Those which have not should
do so in this Financial Year and share the same with the National Treasury.
1.7
Cash Flow Management in State Corporations:
The National Treasury continues to release budgetary allocations to
Government Agencies and State Corporations funded through the
National Exchequer even though those Government Agencies and State
Corporations have huge surplus funds held in short term bank deposits
or funds invested in Treasury bills/bonds. This has resulted in the
National Government incurring huge borrowing costs as a result of failure
to synchronize National Government cash flow requirements (cash
inflows versus cash outflows) to ensure smooth budget execution. In
order to ensure proper cash flow management. All cash-flow
requirements for all Government Ministries, Departments and Agencies
including State Corporations must through the operation of the Treasury
Single Account.
1.8
To enable the National Treasury synchronize National Government cash
flow requirements with cash inflows to ensure smooth budget execution
across all Government Ministries, Departments and Agencies, all State
Corporations are required to: -
i.
Provide details of all bank accounts opened and operated for purposes of;
conducting the day to day operations of the Corporation, short term
investments of surplus funds in fixed deposits, on-call deposits or
treasury bonds/bills, and any other related purposes. Please note that in
accordance with Public Finance Management Act, 2012, NO State
Corporation should open and operate bank accounts without prior
approval of the National Treasury.
ii.
Prepare and submit on a quarterly basis cash flow statement and
projections. The quarterly cash flow statement and projections should be
derived from approved Annual Estimates of Revenue and Expenditure and
work plans.
iii.
Submit on a quarterly basis, a schedule of investments of surplus funds
held in various financial institutions/banks or in treasury bonds/bills in
accordance with existing statutes and circulars issued by the National
3
Treasury regarding financial management of State Corporations and
investment of surplus funds. No State Corporation should invest surplus
funds in any financial institutions/bank without prior approval of the
National Treasury.
1.9
1.10
State Corporations with outstanding liabilities arising from default and nonpayment of on-lent/guaranteed loans, OR non-remittance of dividends, taxes,
pension contributions, NSSF, NHIF and other statutory deductions as well as
employees’ deductions and contribution to co-operative societies should put
in place measures to settle these obligations. State Corporations should give a
status report on remedial measures undertaken to settle all outstanding
liabilities including dividend arrears to the National Treasury. It is further
reiterated that: i.
All State Corporations must take debt service and statutory obligations as
a first charge on their revenues; and
ii.
National Treasury will not give concurrence for borrowings or, where
applicable make recommendations to Parliament for National
Government guarantees for State Corporations in default of past loan
obligations.
Staff Retirement Benefit (Pension) Schemes:
Under Treasury Circular No. 18/2010 of November 24, 2010 all public entities
(State Corporations) that operated Defined Benefit (DB) Pension Schemes were
required to convert to Defined Contribution (DC) Pension Schemes. State
Corporations should therefore provide: -
i.
Status of implementation of the conversion from DB to DC of the staff
retirement benefits (pension) schemes;
ii.
The current level of funding / deficit, if any, of the staff retirement benefits
(pension) scheme; and
iii.
Remedial measures which have been put in place to clear the deficit, if any,
and ensure full compliance with the RBA requirements.
2.0
GENERAL GUIDELINES:
2.1
Preparation of the 2015 / 2016 FY capital budget for State Corporations should
be geared towards delivery of Vision 2030 Flagship Projects as set out in
MTP II priority areas. Proposed capital budgets for respective State
Corporations should be consistent with sector / ministry strategic objectives,
4
realistic and based on resources that are available from internally generated
revenues, borrowings and / or funds allocated under the sector / ministerial
ceilings.
2.2
State Corporations should ensure that all capital projects generate a reasonable
rate of return which should be within the norms of the industry in which they
operate. However, where this cannot be quantified in financial terms, an
adequate justification should be provided in terms of other criteria such as socioeconomic impact.
2.3
It is the National Government policy not to guarantee loans to State
Corporations from domestic banks. In accordance with the State Corporations
Act, Section 5(2), National Treasury concurrence for domestic or external
borrowings by State Corporations will only be granted for investments / projects
that clearly demonstrate commercial viability and satisfy the rate of return
criteria. There shall be clear demonstration from the business plan that the
investment / project should be able to generate sufficient revenue to repay the
loan(s) in full without recourse to the National Treasury for bailout.
2.4
Where interpretation in respect of terms and conditions of outstanding loans to
Government or on-lent / guaranteed loans by National Government is not clear,
clarification should be sought from the Investment Secretary in the National
Treasury.
3.0
FORMAT AND PRESENTATION OF ANNUAL ESTIMATES OF
REVENUE AND EXPENDITURE (BUDGET PROPOSALS) FOR 2015 / 2016
FINANCIAL YEAR:
3.1
The Annual Estimates of Revenue and Expenditure (Budget) should include:
-
NB:
i.
Statement on the Corporation’s short-term objectives, performance
review, and outlook as approved by the Board;
ii.
Main assumptions including key economic parameters;
iii.
Staffing levels by category/cadres; and
iv.
Concise explanatory notes to the Annual Estimates of Revenue and
Expenditure (budgets).
A check list of minimum requirements for the Annual Estimates of Revenue
and Expenditure (Budget Proposals is given in Annex 1 and a detailed deadline
for submissions is given in Annex 2.
5
3.2
Statement of Total Revenue:
State Corporations should indicate the total Revenue projected to accrue to the
state corporation during the budget year as illustrated in Appendix I.
3.3
Statement of Financial Performance:
The statement of financial performance should contain three years audited
financial performance for FYs 2011 / 2012, 2012 / 2013 & 2013 / 2014), the latest
forecast for 2014 / 2015 FY and the proposed Annual Estimates of Revenue and
Expenditure (budget) for 2015 / 2016 FY.
NB:
State Corporations should customize their statement of financial
performance into: i.
Statement of Income and Expenditure for Not for Profit State
Corporations as illustrated in Appendix II; OR,
ii.
Statement of Income and Expenditure, (Trading, Profit and Loss
Account) for Commercial State Corporations as illustrated in Appendix
III;
The following guidelines should be taken into consideration while preparing
the statement of financial performance:-
3.4
i.
All Estimates of Revenue and Expenditure should be realistic and based on
resources that are available from internally generated revenues OR
budgetary allocations from the National Exchequer within the sector /
ministerial ceilings.
ii.
State Corporations should ensure that funds are prioritized towards the
achievement of the corporations’ core mandate and realization of Key
Result Areas (KRAs) identified in their respective sectors as articulated
in the MTP II 2013 – 2017.
iii.
The 2015/2016 FY Statement of Income and Expenditure must be prepared
in detail clearly indicating all the sources of revenue earmarked for recurrent
expenditure; and
iv.
In the event that a State Corporation will use surpluss brought forward from
previous years to meet its recurrent expenditure, this should clearly be
indicated in the explanatory notes.
Annual Capital (Development) Budget
i.
State Corporations should provide a summary of the respective project’s
feasibility study report for all capital projects in order of priority. There
6
should be clear indications of how each project links to the Corporation’s
core mandate and strategic plan in line with sector/ministry strategic
objectives, MTP II priorities, and delivery of Vision 2030 Flagship
Projects.
3.5
ii.
The proposed annual capital budget should clearly indicate the total
project cost, expected return from such investments, and other
justifications.
iii.
There should be project implementation schedule clearly indicating the
level of completion for ongoing projects, expected remaining work(s) and
time frame to complete the project as illustrated in Appendix IV.
iv.
The line Ministry shall appraise the capital budget and feasibility studies
to ensure consistency with Corporation’s core mandate and strategic plan,
sector/ministry strategic objectives, MTP II priorities, and delivery of
Vision 2030 Flagship Projects and submit its recommendations to the
National Treasury for incorporation in the review and analysis of the
proposed capital budget.
v.
Implementation of any new project should only commence once the source
of financing of the project has been clearly identified and approved by the
line Ministry with the concurrence of the National Treasury.
Statement of Financial Position:
The proposed budget should include the actual audited financial position for
three prior years, the latest forecast for the current year as at June 30th, 2015 and
the projected financial position as at June 30th, 2016 as illustrated in Appendix
V.
3.6
Cash Flow Statement and Projections:
vi.
The proposed budget for State Corporations should include cash flow statement
and projections per the format in Appendix VI. The cash flow statement and
projections should not reflect any overdrawn position unless prior
arrangements have been agreed with commercial banks for a bank overdraft to
such limits as approved by the line Ministry with the concurrence of the
National Treasury.
vii.
The cash flow statement and projections prepared on a quarterly basis should
be appropriately customised as per the format in Appendix IX.
3.7
Investments of Surplus Funds:
The proposed budget for State Corporations should include a schedule of
investments of surplus funds as per the format in Appendix VII.
7
3.8
Details of Bank Accounts:
State Corporations should provide details of all bank accounts including
the balances in each bank accout as summarized in Appendix VIII.
As a basis for institutionalising proper cash flow management, state
corporations are required to provide this information for the current
financial year (2014/15) starting from January 1st 2015.
4.0
REVISION OF BUDGETS:
i.
As State Corporations submit their proposed Annual Budget in January for the
subsequent financial year commencing July 1st, it is possible that unforeseen
events may change the scale of operations of the State Corporation and a
revision of the budget may be necessary. Consequently, it is a requirement that
a revision in excess of 10% of the Approved Budget shall be submitted for
review and approval by the line Ministry and the National Treasury.
ii.
The submission of the Revised Budget must precede the submission of the
Annual Budget for the succeeding year and should be done at the earliest
opportunity when the unforeseen events emerge. As a general rule the National
Treasury shall not approve any expenditure which has already been incurred,
except in very special justifiable circumstances.
5.0
DEADLINE FOR SUBMISSION OF ANNUAL ESTIMATES OF REVENUE
AND EXPENDITURE (BUDGET) FOR 2015 / 2016 FY:
i.
In order to enhance public financial management and ensure
comprehensiveness of the National Estimates of Revenue and Expenditure as
stipulated under the Public Finance Management Act 2012, section 38 (1) (b)(i),
the format of the National Government Annual Estimates of Revenue and
Expenditure shall include a list of all entities that are to receive funds
appropriated from the Annual Estimates of Revenue and Expenditure of the
National Government.
ii.
All State Corporations should submit the Annual Estimates of Revenue and
Expenditure (budget) for 2015/2016 FY to the line Ministry with a copy to the
Investment Secretary, National Treasury not later than January 31st, 2015 with a
soft copy to [email protected] Details (both telephone number
and e-mail address) of the person(s) to be contacted should the line Ministry and
the National Treasury require additional information/ clarifications on the
submitted Annual Estimates of Revenue and Expenditure (budget) should also
be included.
8
6.0
SUBMISSION OF CASH FLOW STATEMENTS & PROJECTIONS AND
SCHEDULE OF INVESTMENTS OF SURPLUS FUNDS ON
QUARTERLY BASIS:
6.1
Submission of Cash Flow Statements & Projections on Quarterly Basis:
i.
Not later than the 15th day of the first month of every quarter, State
Corporations should submit quarterly cash flow statements and
projections as illustrated in Appendix IX.
ii.
The quarterly cash flow statements and projections should be submitted
to the Office of the Investment Secretary, National Treasury with a soft
copy forwarded through email to [email protected]
6.2
Submission of Schedule of Investments of Surplus Funds on Quarterly
Basis:
i.
Not later than the 15th day of the first month of every quarter, State
Corporations should submit a schedule of investments of surplus funds
held in various financial institutions/banks or in Treasury bonds/ bills as
illustrated in Appendix X.
ii.
Schedule of investments of surplus funds should be submitted to the
Office of the Investment Secretary, National Treasury with a soft copy
forwarded through email to [email protected]
7.0
RESPONSIBILITY FOR SUBMISSIONS:
i.
The Board of Directors and the Chief Executives of respective State
Corporations should ensure compliance with the requirements of this
Circular.
ii.
In accordance with the State Corporations Act, Section 11 and 12 the proposed
Annual Estimates of Revenue and Expenditure (budget) must be discussed and
approved by the respective Board of Directors before submission to the line
Ministry and the National Treasury
iii.
Authenticated extracts of minutes of the Board of Directors approving the
Annual Estimates of Revenue and Expenditure (budget) should be attached.
iv.
The Board of Directors and the Chief Executives should submit proposed
Annual Estimates of Revenue and Expenditure (budget) for their respective
State Corporation; provide details of all bank accounts; submit quarterly
cash flow statements projections; and schedule of investments of surplus
funds held in various financial institutions/banks or in treasury bills /
bonds as required by this Circular in order to avoid sanctions provided
for in the Public Finance Management Act, 2012.
9
v.
The National Treasury will not consider for approval the proposed Annual
Estimates of Revenue and Expenditure (budget) for State Corporations which
do not comply with the guidelines in this Circular in form and content.
vi.
No State Corporation shall commence the implementation of programmes OR
incur expenditure for the financial year where approval of the proposed Annual
Estimates of Revenue and Expenditure (budget) has not been granted.
Copied to:
All Cabinet Secretaries
The Hon. Attorney General,
Office of the Attorney General,
NAIROBI.
The Chief of Staff and Head of Public Service,
Harambee House
NAIROBI.
The Auditor-General,
Kenya National Audit Office,
NAIROBI.
The Controller of Budget,
Office of the Controller of Budget,
NAIROBI.
The Inspector-General (State Corporations)
Inspectorate of State Corporations,
Office of the Deputy President,
NAIROBI.
10
APPENDIX I: Statement of Total Revenue in Kenya Shillings:
Commercial Oriented State
Corporations
Actual
Actual
Actual
Forecast
Budget
2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
Kshs.
‘000’
‘000’
‘000’
‘000’
‘000’
Recurrent Revenue:
1 Internally Generated
Revenue
2 Governments Grants for
Recurrent
3 Grants, Dev’t Partner for
Recurrent
4 Other Incomes for
Recurrent (Specify)
5 Total Recurrent Revenue
Development Revenue:
6 Governments Grants for
Development
7 Grants, Development
Partner for Dev’t
8 Other Incomes for Dev’t
(Specify)
9 Total Development
Revenue
10 Total Revenue (NB: 5 +
9)
NB: State Corporations should clearly indicate: i.
All sources of internally generated revenue including but not limited to
income from sales, fees, charges, levies, cost sharing, etc;
ii.
Grants or income from development partners or other sources earmarked
to defray or finance recurrent / operating expenses; and
iii.
Grants or income from development partners or other sources earmarked
to finance capital projects.
11
APPENDIX II: Statement of Financial Performance in Kenya Shillings:
Not For Profit State Corporations
Kshs.
Actual
Actual
Actual
Forecast
Budget
2011/2012
2012/2013
2013/2014
2014/2015
2015/2016
‘000’
‘000’
‘000’
‘000’
‘000’
Recurrent Revenue:
1 Internally Generated revenue from
fees, charges, levies, cost sharing etc.
2 Governments Grants for Recurrent
3 Grants, Dev’t Partner for Recurrent
4 Other Incomes for Recurrent
(Specify)
5 Total Recurrent Revenue
Operating Expenses:
6 Personnel Emoluments
7 Boards Expenses
8 Operating/Administrative Expenses
9 Repairs and Maintenance
10 Depreciation
11 Total Operating Expenses
12 Operating Surplus / (Deficit)
13 Finance Charges (Interest on Loans)
14 Retained Operating Surplus
15 Ratios:
i. Operating Surplus Margin
ii. Personnel Costs to Recurrent
Costs
iii. Personnel Costs to Recurrent
Revenue
Number of Employees:
i) Management
ii) Technical
iii) Others
NB:
State Corporations using operating surplus (retained) from previous
years to finance recurrent/operating expenses should clearly indicate the
amounts to be expensed.
12
APPENDIX III: Statement of Income and Expenditure in Kenya Shillings:
Commercial State Corporations
Kshs.
Actual
Actual
Actual
Forecast
Budget
2011/2012
2012/2013
2013/2014
2014/2015
2015/2016
‘000’
‘000’
‘000’
‘000’
‘000’
Recurrent Revenue:
1 Gross Sales Income
2 Cost of Sales
3 Gross Profit
4 Other Income & Grants - Recurrent
5 Total Recurrent Revenue
Operating Expenses:
6 Personnel Emoluments
7 Boards Expenses
8 Operating/Administrative Expenses
9 Repairs and Maintenance
10 Depreciation
11 Total Operating Expenses
12 Operating Profit /(Deficit)
13 Finance Charges (Interest on Loans)
14 Corporation Tax
15 Net Earnings
16 Distribution
Dividends
Retained Earnings
Ratios:
i. Gross Profit Margin
ii. Net Profit Margin
iii. Personnel Costs to Recurrent Costs
iv. Personnel Costs to Recurrent
17 Revenue
Number of Employees:
i) Management
ii) Technical
iii) Others
13
APPENDIX IV: Capital Budget (Project Feasibility Study Data) Figures in KShs
‘000
Project in Order of Priority
Expenditure to 30th
and Justification
June, 2015
Proposed
Budget
2015/2016
Actual
Sources of
Funds:
GoK,
A.I.A,
31st
Projection
Dev.
Dec,
to 30th
Partners,
2014
June, 2015
Borrowings
%age of
completion
of ongoing
project as
at 30th
June, 2015
1
2
3
4
5
6
7
8
9
10
Total Capital Cost/Budget
Source of Funds for the Capital Budget:
11
A.I.A –
Current Year
Retained
Earnings
Previous Years
12
Governments Grants – Development
13
Grants from Development Partner – Dev’t
14
Borrowings, Both Current Year and
Previous Years (Including Infrastructure
Bond)
15
Other Incomes – Dev’t (Specify)
16
Total Funds
NB:
State Corporations should clearly indicate the source of funds for the
capital budgets whether from Appropriation in Aid (A.I.A) including
retained earnings, borrowings both current year and previous years
including infrastructure bonds or other incomes from development
partners earmarked to finance capital projects.
14
APPENDIX V: Financial Position in Kenya Shillings.
Assets
Kshs.
Actual
Actual
Actual
Forecast
Budget
30.06.2012
30.06.2013
30.06.2014
30.06.2015
30.06.2016
‘000’
‘000’
‘000’
‘000’
‘000’
Non – Current Assets:
1
Land, Buildings & Plant
2
Property & Equipment
3
Motor Vehicles
4
Computers
5
Other (Specify)
6
Total Non - Current Assets:
Current Assets
7
Inventories
8
Accounts Receivables
9
Prepayments
10
Cash & Bank Balances
11
Others (Specify)
12
Total Current Assets
13
Total Assets
Financed by:
14
Share Capital (Paid Up)
15
Gov’ Grants/Irredeemable Loans
16
Capital Reserves
17
Revenue Reserves (Profit & Loss
Account)
18
Shareholders’ Funds (Total
Equity)
Non - Current Liabilities:
19
Long Term Borrowing
20
Non-Current Creditor (Specify)
21
Total Non - Current Liabilities
Current Liabilities:
22
Accounts Payable
23
Short Term Borrowings
24
Statutory Obligations (Specify)
25
Others
26
Total Current Liabilities
27
Total Equity & Liabilities
28
Ratios:
i)
Current Ratio
ii)
Debt to Assets Ratio
iv)
Total Assets Turnover
v)
Return on Assets
15
APPENDIX VI: Cash Flow Statement In Kenya Shillings.
Kshs.
Cash flows from Operating Activities:
1
Operating Surplus / Net Income
2
Add back depreciation
3
Decrease (Increase) in receivables
4
Decrease (increase) in inventories
5
Increase (Decrease) in payables
6
Interest paid
7
Corporation tax paid
8
Net cash from operating activities
Cash flows from Investing Activities:
9
Purchase of Non - Current Assets
10
Interest Received
11
Proceeds from Sale of Non - Current Assets
12
Net Cash generated from (Used in) Investing
Activities
Cash Flows from Financing Activities:
13
Repayment of Long Term Borrowings
14
Proceeds from Long Term Borrowings
15
Dividends Paid
16
Net Cash generated from (Used in) Financing
Activities
17
Increase (Decrease) in Cash & Cash Equivalents
18
Cash & Cash Equivalents at Beginning of Year
19
Cash & Cash Equivalents at End of Year
20
Overdraft Limit (As Approved by Government)
16
Actual
Forecast
Budget
2013/2014
2014/2015
2015/2016
‘000’
‘000’
‘000’
APPENDIX VII: Schedule of Investments of Surplus Funds in Kenya Shillings.
Actual
Forecast
Budget
2013/2014
2014/2015
2015/2016
‘000’
‘000’
Kshs. ‘000’
1
Investment in Treasury Bills or Bonds
i.
ii.
iii.
2
Sub Total
3
Investment with Financial Institutions
i.
ii.
iii.
4
Sub Total
5
Other Forms of Investment (Specify)
i.
ii.
iii.
6
Sub-Total
7
Grand Total
17
State Corporation:
APPENDIX VIII: Details of All Bank Accounts:
No.
Financial
Facility
Institutions/Banks
Current Account
On – Call Deposits Account
Fixed Deposits Account
1
Staff Car Loan/Mortgage
Account
Others (Specify)
Current Account
On – Call Deposits Account
Fixed Deposits Account
2
Staff Car Loan/Mortgage
Account
Others (Specify)
3
Others (Specify)
NB:
Bank Balance
Should provide details of all Financial Institutions / Banks where the
Corporation has opened and operates bank accounts clearly indicating whether
it is a Current Account; On – Call Deposits Account; Fixed Deposits Account;
Staff Car Loan / Mortgage Account; etc.
18
State Corporation:
APPENDIX IX: Submission of Quarterly Cash Flow Statement
& Projections
Details
Quarter
July October - January
September December - March
Revenue for Operations:
Kshs
Kshs
Kshs
April
June
Kshs
Cash & Cash Equivalents at Beginning of
Quarter (To include Cash/Bank Balances &
Short Term/On Call Fixed Deposits)
Receipts from Internally Generated Revenue
(To Include Sales, Fees, Levies, Interest income
& All Other Proceeds from Income Generating
Activities)
Government Grants for Recurrent Operations
Other Grants/Donations for Recurrent
Operations
Total Cash Available for Recurrent
Operations
Payments:
Personnel Emoluments (To Include Basic
Salary/Wages, House Allowances, All Other
Remuneration Allowances, and Pension
Contribution/Gratuity Payments)
Board of Directors or Council Members
Expenses
Payment to Suppliers and Service Providers
Statutory Payments (To Include Taxes, PAYE,
NHIF, NSSF, etc.)
Total Payments for Recurrent
Operations
Cash/Bank Balances From Operations
Government Grants for Development Programmes
Other Grants/Donations for Development
Programmes
Loans Procured
Total Cash Available for Development
Programmes
Payment to Contractors and Suppliers of Capital
Items& Development Programmes
Loan Repayments (To Include both Interest &
Principal)
Cash& Cash Equivalents at End of Quarter (To
include Cash/Bank Balances& Short Term/On Call
Fixed Bank Deposits)
Approved/Authorized Bank Overdraft Limit
NB: Should be submitted Quarterly to the National Treasury not later
than the 15th day of the first month of the respective Quarter.
19
State Corporation:
APPENDIX X: Submission of Quarterly Schedule of Investments of
Surplus Funds:
Quarter
Details
First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
As At
As At Dec
As At Mar.
As At
31
30
June 30th
Sept. 30
Kshs
1
th
st
Kshs
th
Kshs
Kshs
Investment in Treasury Bills or
Bonds
i.
ii.
iii.
2
3
Sub Total
Investments in Financial
Institutions/Banks
i.
ii.
iii.
4
5
Sub Total
Other Forms of Investment
(Specify)
i.
ii.
iii.
6
Sub-Total
7
Grand Total
NB: Should be submitted Quarterly to the National Treasury not later
than the 15th day of the first month of the respective Quarter.
20
ANNEX I, Check List for Submission of Annual Budget:
1.
Statement of Total Revenue, Appendix I
2.
Statement of Income and Expenditure for Not for Profit State
Corporations, Appendix II.
3.
Statement of Income and Expenditure for Commercial State Corporations,
Appendix III.
4.
Capital Budget (Project Feasibility Study Data) if any, Appendix IV.
5.
Statement of Financial Position, Appendix V.
6.
Cash flow Statement, Appendix VI.
7.
Schedule of Investments if any, Appendix VII.
8.
Concise Explanatory Notes to the Annual Budgets
9.
Extracts of Boards Minutes Approving the Annual Budget
10.
Parent Ministry’s support for the Annual Budget proposals and
Confirmation of the Budgetary Provision for Respective State Corporation
as per the Ministry’s Ceiling.
11.
Details of Bank Accounts, Appendix VIII.
12.
Submission of Cash Flow Statements & Projections on Quarterly basis,
Appendix IX.
13.
Submission Schedule of Investments of Surplus Funds on Quarterly basis,
Appendix X.
21
ANNEX 2: Deadlines for Submissions of Annual Estimates of Revenue and
Expenditure (Budgets) and Feasibility Study Data
Submission of Annual Estimates of Revenue and Expenditure
(Budget Proposals) and Feasibility Study data by State
Corporations to the Parent Ministries with a copy to DGIPE,
National Treasury
--------------------------------------------------------------
January
31st,
2015
Submission of proposals by Ministries to DGIPE with specific
comments and recommendations
--------------------------------------------------------------
Februar
y 8th,
2015
February
8 , 2015
To
April
15th, 2015
Review and Analysis of Annual Budget Proposals
by DGIPE
th
-------------------------------------------------------------
Dispatch of Approved Annual Budgets to Ministries by DGIPE
April
15th,
2015
--------------------------------------------------------------
Dispatch of approved Annual Budget to State Corporations by
parent ministries
May
31st,
2015
-----------------------------------------------------------Submission of Cash Flow Statements & Projections
and Schedule of Investments of Surplus Funds
on Quarterly Basis
------------------------------------------------------------
22
On the 15th Day of the First
Month of the Quarter