Advanced Public Financial Management August  2023 Past paper

THURSDAY: 24 August 2023. Morning Paper. Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.


1. In relation to the Public Procurement and Asset Disposal Regulations 2020, outline FIVE methods that an accounting officer of a procuring entity may use to dispose assets. (5 marks)

2. Most developing countries continue to face challenges in managing public finances effectively. The public financial management (PFM) systems of developing countries are faced by complexities and issues associated with the three key pillars of PFM which are; budget formulation and execution, revenue mobilisation, and expenditure control.

Evaluate THREE challenges facing the PFM systems in your country under each of the above pillars of PFM and suggest practical solutions for each challenge. (9 marks)

3. The Public Finance Management Regulations, 2015 and Gazette Notice No. 2690 on Audit Committee Guidelines for County Governments outlines how the audit committee should relate with different levels of management.

Analyse THREE roles of the audit committee in relation with the line management as per the guidelines. (6 marks)

(Total: 20 marks)



1. Outline THREE provisions relating to winding up of a national government public fund as established by Article 209 of the PFM regulations. (3 marks)

2. Countries undertake a number of infrastructural projects as part of their long-term development initiatives. The projects are financed through borrowing from both the domestic market and the foreign market. This results to a situation where the country’s largest financial portfolio is from the debt portfolio. This may lead to substantial risk to the government’s finances thus affecting provision of essential public services to the citizens.

With reference to the above statement, evaluate SIX generally accepted global practices that could enhance effective public debt management. (12 marks)

3. Summarise FIVE provisions relating to accounting and reporting of donations and grants to national government as provided by Article 74 of the PFM regulations. (5 marks)

(Total: 20 marks)



1. The Auditor General is required to audit and report on certain institutions within six months after the end of each financial year as provided under Article 229 (4) of the Constitution of Kenya, 2010.
With reference to the above provision, identify SIX such institutions. (6 marks)

2.  According to Section 82 (4) of the Public Finance Management Act, 2012, not later than three months after the end of each financial year, a receiver of revenue for the national government shall submit to the Auditor-General a report with respect to all waivers and variations of taxes, fees or charges granted by the receiver or collector during that year. With reference to the above provision, outline the details that the receiver shall include in his report in respect of each waiver or variation. (4 marks)

3. During a public finance management seminar, one of the facilitators noted that “Every financial year, the National Assembly participates in the various critical activities in the budget cycle. The National Assembly is at the center of budget approval and oversight during the annual budget process. The National Assembly works with a host of institutions and the public to expedite its mandate of budget making, oversight of expenditure, and representation.

Some of the main institutions involved include; The National Treasury, Auditor General, The Commission on Revenue Allocation (CRA), The Controller of Budget, and Ministries, Departments, and Agencies (MDAs)”. In relation to the above statement, summarise the role played by each of the five institutions mentioned above in relation to the budget process. (10 marks)

(Total: 20 marks)



1. The tender documents are required to set out the instructions for the preparations and submission of tenders as per Section 70 (6) of the Public Procurement and Asset Disposal Act, 2015.
In relation to the above provision, outline FOUR instructions for preparation and submission of tenders that should be included. (4 marks)

2. Describe FOUR functions of the State Corporations Advisory Committee (SCAC) or equivalent body in your country. (8 marks)

3. In a County Government workshop on management of revenues, one of the facilitators noted that “The main sources of revenue for county government include; equitable share, own source revenue, conditional grants, and donor funding”.

Explain each of the FOUR sources of revenue for county governments mentioned above. (8 marks)

(Total: 20 marks)



1. Most countries around the globe have set up the consolidated fund services (CFS). The specific structure and operations of CFS vary among countries, depending on their legal and institutional frameworks. In relation to the above statement, analyse FIVE functions that the CFS helps the government of a country to perform. (10 marks)

2. The recent advancements in technology and innovation offer opportunities for reforming public financial management (PFM) in developing countries and could be a key solution to overcoming most of the challenges faced by these countries in public financial management.

With reference to the above statement, discuss FIVE ways in which developing countries could leverage on technology and innovation in order to improve public financial management (PFM) practices. (10 marks)

(Total: 20 marks)

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