Financial Analysis & Systems Development

The overall objective of the training is to instil the CBOs Management Committee, including the sub-committees with skills in financial management and procurement in order to enable them carry out the duty of overseeing project implementation and managing and operating their own water project in a sustainable manner.

Project Description:

• Build the capacity of the CBOs to manage their financial resources in manners consistent with good governance and transparency by following proper accounting procedures and any requirements imposed on the use of CPC funds.
• Increase the accountability of the CBOs organizations to the WSTF.
• Make the CBOs to understand the standards of financial management expected from them.
• Create understanding in the CBOs management that they have the responsibility of accounting for public funds and that mismanagement of funds has consequences.
• Broaden their knowledge and understanding of procurement, value for money and store management.

The overall objective of the training is to instil the CBOs Management Committee, including the sub-committees with skills in financial management and procurement in order to enable them carry out the duty of overseeing project implementation and managing and operating their own water project in a sustainable manner.

Project Description:

• Build the capacity of the CBOs to manage their financial resources in manners consistent with good governance and transparency by following proper accounting procedures and any requirements imposed on the use of CPC funds.
• Increase the accountability of the CBOs organizations to the WSTF.
• Make the CBOs to understand the standards of financial management expected from them.
• Create understanding in the CBOs management that they have the responsibility of accounting for public funds and that mismanagement of funds has consequences.
• Broaden their knowledge and understanding of procurement, value for money and store management.

Project Description:

• Carried out a situational analysis of schemes and the community in general to determine the status in terms of types of water and sanitation  services delivery mechanisms, services levels, households profiles with respect to – perceptions, knowledge, attitude and practice in relation to water  and sanitation etc.,  income levels, willingness and ability to pay etc.,
• Carried out an assessment of the schemes, including a detailed technical appraisal of the system, unaccounted for water in the scheme, revenue collection and accounting in the schemes, Demand for water studies
• Undertook a review of existing institutional, legal and governance structures in the communities
• Carried out financial analysis of the scheme to determine the viability and long term sustainability.
• Based on the findings, made recommendations on the appropriate technical, financial, institutional and legal structures that required to be put in place to render the schemes operational on a sustainable basis.
• Prepared Business Plans and made recommendations on capacity building programme and capital expenditure.
• The assignment entailed working closely with the communities and all relevant stakeholders

The assignment entailed development and implementation Scheme specific Financial Management Systems and Manuals to guide financial decision-making and operations of the schemes. This was in recognition of the fact that financial management was a major problem in most of the schemes. The systems so developed were billing and revenue collection systems, procurement and stores management systems, asset register, etc. In short complete accounting systems were designed and implemented. The assignment also entailed training of project staff and the management committees as well as monitoring of the post implementation phase by the scheme staff.

The assignment entailed setting up requisite operations, financial and management systems that would ensure long-term financial sustainability of the organization through effective and efficient cost and expenditure control and revenue collection systems. The manual also recommended reports and reporting systems including monitoring indicators necessary in aiding the management in decision making.

• This entailed supporting the Fund to revise the existing finance manual and develop a Financial Management Systems Manual with clear guidelines and procedures for use by the Fund.
• Reviewing the operations of the Fund and literature of other organizations with similar operations,
• Holding discussions with key WSTF staff regarding their experiences in the operations of the Fund,
• Reviewing the current strategic plan and mapping the finance manual on it.
• Assisting in developing the most plausible ideas on the financial operations of WSTF and incorporate them in the manual

The assignment entailed provision of internal control and systems review services.

• System review which included:
• WSTF’s compliance with requirements for internal controls
• Assessment of the adequacy of internal controls over revenues
• Assessment of the adequacy of the systems control over procurement of supplies, equipment and services and check compliance with the PPDA

• System Audit which involved examining the following internal control areas:
• Asset management including procurement process and procedures
• Accounting and financial reporting including underlying transaction processing systems and financial ledgers
• Cash and bank management
• Computerized information systems (ICT)
• Budgetary and expenditure control including procurement process and procedures
• Human resources and payroll process

The training program specifically covered: Public Financial Management Regulatory Frame work including the Basic Laws / Constitution, Appropriation Act, The Exchequer and Consolidate Funds Acts, External and Internal Funds Act, Paymaster Act etc.

The role of the Central Bank, Ministry of Finance and the Treasury, Formulation , Development and maintenance of Finance, Economic and Monetary Policies, Regulation of the Financial Sector, Management of Public Revenue and Government Bank Account Paymaster General Systems, Preparation and Implementation of Annual government budgets, Public Financial Planning and Forecasting, Project Management, Monitoring and Evaluation, Programming.

The role of External Audit and the Parliamentary Oversight Roles, General Management, Effective Communications and Report Writing, Delegation and Work supervision,  Decision making and Human Resource Management.

The assignment included design and preparation of the Kenya Water Security and Climate Resilience Programme. Key outputs included: Project Implementation Manual, Financial Management Manual, Social and Environmental Resettlement Manual, Financial and Economical Assessment of the Project.

Key activities in the development of financial management manual is the determination of the project funds, flow, accounting, budgeting and auditing in line with the Public Financial Management Act 2012 and the Constitution and IPSAS.