The Public Finance Management (Ulinzi Prime Health Services Fund) Regulations, 2023

Legal Notice 175 of 2023

Citation
Legal Notice 175 of 2023
Primary work
Public Finance Management Act
Date
22 December 2023
Language
English
Type
Legal Notice
Publication
Download PDF (121.4 KB)
LAWS OF KENYA

PUBLIC FINANCE MANAGEMENT ACT

THE PUBLIC FINANCE MANAGEMENT (ULINZI PRIME HEALTH SERVICES FUND) REGULATIONS, 2023

LEGAL NOTICE 175 OF 2023

  • Published in Kenya Gazette Vol. CXXV—No. 268 on 22 December 2023
  • Commenced on 31 October 2023

1. Citation

These Regulations may be cited as the Public Finance Management (Ulinzi Prime Health Services Fund) Regulations, 2023.

2. Interpretation

In these Regulations, unless the context otherwise requires—"Act" means the Public Finance Management Act (Cap. 412A);"Advisory Board" means the Ulinzi Prime Health Services Fund Advisory Board established under regulation 9(1);"Administrator of the Fund" means the person designated as such under regulation 12(1);"Cabinet Secretary" has the meaning assigned to it under the Act;"Defence Council" means the Defence Council established under Article 241 (5) of the Constitution;"Fund" means the Ulinzi Prime Health Services Fund established under regulation 3(1); and"Kenya Defence Forces hospital facilities" means the Kenya Defence Forces level IV, V and VI hospitals.

Part II – ESTABLISHMENT OF THE FUND

3. Establishment of the Fund and sources of funds

(1)There is established a fund to be known as the Ulinzi Prime Health Services Fund.
(2)There shall be paid into the Fund—
(a)such moneys as may be appropriated by the National Assembly;
(b)income generated from the proceeds of medical and health services offered by the Kenya Defence Forces hospital facilities;
(c)grants, gifts and donations; and
(d)any moneys accruing to or received by the Fund from any other lawful source.

4. The purpose and object of the Fund

The purpose and object of the Fund shall be to finance the provision of medical and health services to paying clients of the Kenya Defence Forces hospital facilities across the country, and in particular—
(a)facilitate the establishment, modernization, operation and the maintenance of the Kenya Defence Forces hospital facilities;
(b)fund research and training for the purposes of improving the quality of health services offered by the Kenya Defence Forces hospital facilities;
(c)facilitate the purchase of equipment and drugs for the Kenya Defence Forces hospital facilities;
(d)provide funds for administration expenses including payment of salaries, allowances, pensions, gratuity and other charges for its employees;
(e)provide any other funding that may be necessary to further the object of the Fund.

5. Expenditure on the Fund

(1)There shall be paid out of the Fund payments in respect of any expenses incurred in pursuance of the objects and purposes for which the Fund is established.
(2)The expenditure incurred on the Fund shall be on the basis of and limited to annual work programs, plans and cost estimates which shall be prepared by the Administrator of the Fund, submitted to and approved by the Defence Council at the beginning of the financial year to which they relate.
(3)Any revision of the approved annual work programs, plans and of any cost estimate, shall be referred to the Defence Council by the Advisory Board for approval.

6. Retention of receipts

The earnings of, or accruals to the Fund shall be retained in the Fund, and shall be spent only for the objects and purposes for which the Fund is established unless the Cabinet Secretary directs otherwise.

7. Initial capital of the Fund

The initial capital of the Fund shall be as appropriated by the National Assembly for the Kenya Defence Forces hospital facilities or from any other source provided for under regulation 3(2) of these Regulations.

Part III – GOVERNANCE AND ADMINISTRATION OF THE FUND

8. Role of the Defence Council

(1)The role of the Defence Council shall be to oversee the functioning of the Fund.
(2)In carrying out the role provided for under subregulation (1), the Defence Council shall be responsible for—
(a)providing overall policy and direction in implementation of the Fund;
(b)approval of the estimates of expenditure and revenue before submission to the Cabinet Secretary; and
(c)receipt of any recommendations from the Advisory Board for policy guidance in furtherance of the objects and purpose of the Fund.

9. Establishment of the Advisory Board

(1)There is established a board to be known as Ulinzi Prime Health Services Fund Advisory Board which shall provide technical oversight on behalf of the Defence Council.
(2)The Board shall consist of—
(a)Principal Secretary, Ministry of Defence, who shall be the Chairperson;
(b)Director of Medical Services, Defence Headquarters;
(c)a representative of the National Treasury;
(d)Director-General Ministry of Health or his representative;
(e)Director, Military Veteran Affairs;
(f)Head of Accounting Unit, Ministry of Defence;
(g)Chairperson, Advisory Committee of Veterans Affairs;
(h)Director Human Resource Management and Training, Ministry of Defence;
(i)Chief of Medical, Defence Headquarters; and
(j)Chief of Finance, Defence Headquarters.
(3)The Managing Director of the Fund appointed under regulation 13(1) shall be the Secretary of the Advisory Board.
(4)The Advisory Board may, from time to time, co-opt other members as it may deem necessary, for the proper and efficient discharge of its Advisory functions over the Fund.

10. Meetings of the Advisory Board

(1)The Chairperson of the Advisory Board shall chair all the meetings of the Advisory Board and in his absence the members present shall elect one of them to chair the meeting.
(2)The Advisory Board shall meet not less than four times in every financial year and not more than four months shall elapse between the date of one meeting and the date of the next meeting.
(3)The quorum for the conduct of meetings of the Advisory Board shall be five members.
(4)The Board shall regulate its own procedure.

11. Functions of the Advisory Board

The functions of the Advisory Board shall be—
(a)to provide technical guidance on the administration of the Fund;
(b)to recommend policies to achieve the objects and purpose of the Fund;
(c)to receive, review and recommend the statutory and technical reports of the Fund;
(d)to advice the Defence Council and the Administrator of the Fund on the administration of the Fund;
(e)to recommend the ceilings for funding under the Fund;
(f)to monitor and evaluate the programmes and activities under the Fund;
(g)to receive reports on the performance of the Fund;
(h)to facilitate public awareness, education and access to services offered by the Kenya Defence Forces Hospital facilities; and
(i)to perform such other duties as may be considered necessary by the Defence Council.

12. Administrator of the Fund

(1)The Principal Secretary in the Ministry responsible for matters relating to defence is hereby designated as the Administrator of the Fund in accordance with section 24(5) of the Act.
(2)The Administrator of the Fund shall—
(a)be responsible for the day to day administration and management of the Fund;
(b)open and operate bank accounts at the Central Bank of Kenya into which all moneys raised under the Fund shall be paid;
(c)prepare strategic plan, budget and annual work plan for approval by the Defence Council;
(d)operate and maintain bank accounts in the manner as may be prescribed by the National Treasury from time to time;
(e)prepare, sign and transmit to the Auditor-General, in respect of each financial year and within three months after the end thereof, a statement of accounts relating to the Fund;
(f)establish proper systems of internal control and management in accordance with the provisions of the Act and these Regulations;
(g)advise and consult the Defence Council and Cabinet Secretary on matters relating to the administration of the Fund;
(h)keep proper books of accounts and other books and records relating to the Fund;
(i)be custodian of the Funds’ assets, equipment and properties;
(j)prepare financial and non-financial performance reports of the Fund and submit it to the Defence Council for approval;
(k)furnish additional information which is proper and sufficient for the purpose of examination and audit by the Auditor - General in accordance with the provisions of the Public Audit Act (Cap. 412B);
(l)prepare quarterly reports on the receipts into and issues out of the Fund; and
(m)undertake any other duty as the Defence Council may assign.
(3)When discharging the functions under subregulation (2), the Administrator of the Fund shall—
(a)comply with the ordinary budget cycle in the preparation of estimates for the Fund; and
(b)submit estimates of revenue and expenditure to the Cabinet Secretary by the 31st January of the preceding financial year for approval.

13. Managing Director of the Fund

(1)There shall be a Managing Director of the Fund who shall be appointed by the Defence Council on terms and conditions to be set by the Defence Council.
(2)A person appointed as a Managing Director shall be the head of the Secretariat established under regulation 14(1).

14. Secretariat of the Fund

(1)There shall be a secretariat which shall provide secretariat support services to the operation of the Fund.
(2)The Secretariat shall consist of such personnel as the Defence Council may consider necessary.
(3)The Secretariat of the Fund shall be reporting to the Administrator of the Fund, and shall—
(a)develop a predictable, transparent and accountable financial internal control systems for the Fund;
(b)prepare estimates of revenue and expenditure, annual work programs and work plans, costs estimates, annual procurement plans and annual cash flow plans;
(c)prepare reports on a bi-monthly basis, on efficiency and effectiveness of programs supported by the Fund;
(d)prepare and validate payment schedules;
(e)implement projects, programs and coordinate with other medical institutions and Universities in realization of the objects and purpose of this Fund;
(f)monitor and evaluate programs financed from the Fund and provide reports to the administrator of the Fund;
(g)prepare statutory and management reports of the Fund and submit them to the administrator of the Fund; and
(h)maintain proper records of the Fund.
(4)Notwithstanding the provisions of subregulation (3), the Administrator of the Fund may assign any other duty to the Secretariat for the proper administration and management of the Fund.

Part IV – FINANCIAL PROVISIONS

15. Bank Account of the Fund

(1)The Administrator of the Fund shall cause an account in the name of the Fund to be maintained at the Central Bank of Kenya in line with section 28 of the Act and any Regulations made thereunder.
(2)All money payable into the Fund shall be received into the bank account of the Fund.
(3)The Fund’s account shall be operated by the Administrator of the Fund and two other persons designated by the Defence Council from the Fund’s Secretariat.
(4)The Administrator of the Fund may open and maintain other accounts in furtherance of the objective of the Fund.

16. Overdrawn accounts

The Administrator of the Fund shall ensure the accounts of the Fund are not overdrawn.

17. Advances

(1)If, in exceptional circumstances, the income from the Fund together with any surplus income brought forward from a previous year is insufficient to meet the actual or estimated liabilities of the Fund, the Cabinet Secretary may, with the approval of National Assembly, make advances to the Fund and such advances shall be made on such terms and conditions, whether as to repayment or otherwise, as the Cabinet Secretary may determine, but any such advance shall be repaid from the income of the Fund.
(2)The Administrator of the Fund shall ensure that in any financial year expenditure and commitments from the Fund shall not exceed the annual income of the Fund together with any surplus income brought forward from a previous year.

18. Investments of the funds

Administrator of the Fund may with the approval of the Defence Council and consent of the Cabinet Secretary, invest any of the surplus funds in Government securities.

19. Review of performance of the Fund

(1)The Cabinet Secretary shall at the lapse of ten years from the date of commencement of these Regulations cause a review to be conducted on the performance of the Fund in accordance with the requirements of the Act and Regulations thereunder.
(2)The review shall determine whether the Fund has met the objectives for which it was established.
(3)The report on the review shall be submitted to the Cabinet and the National Assembly for approval.

20. Annual estimates

(1)At least six months before the commencement of each financial year, the Administrator of the Fund shall cause to be prepared estimates of the revenue and expenditure of the Fund for that year.
(2)The annual estimates shall make provision for all estimated revenue and expenditure from the Fund for the financial year and in particular, the estimates shall provide for—
(a)revenue projected to be received by the Fund from the sources of funds provided for under these Regulations;
(b)expenses in furtherance of the objects and purpose of the Fund;
(c)moneys for the administration expenses of the Fund including—
(i)the payment of salaries, allowances and other charges in respect of the secretariat staff, where applicable;
(ii)the payment of pensions, gratuities and other charges in respect of the staff Fund, where applicable; and
(iii)the proper maintenance of the office assets, purchase of drugs and equipment for hospital facilities and properties under the Fund.
(3)The annual estimates shall be approved by the Defence Council before the commencement of the financial year to which they relate.

21. Quarterly reports

(1)The Administrator of the Fund shall prepare quarterly financial and non-financial reports in accordance with the format prescribed by the Public Sector Accounting Standards Board for approval.
(2)Upon approval, under paragraph (1), the Administrator of the Fund shall submit the report to the National Treasury.

22. Accounts and audit

(1)The Administrator of shall cause to be kept all proper books and records of account of the income, expenditure, assets, equipment and properties of the Fund.
(2)Within a period of three months from the end of each financial year, the Administrator of the Fund shall submit to the Auditor-General with a copy to the National Treasury, Controller of Budget and the Commission for Revenue Allocation the accounts of the Fund together with—
(a)a statement of the income and expenditure of the Fund during the financial year; and
(b)a statement of the assets and liabilities of the Fund on the last day of that financial year.
(3)The accounts of the Fund shall be audited and reported upon in accordance with the Public Audit Act (Cap. 412B).

23. Administration expenses

The administrative expenses of the Fund shall not exceed three per centum of the approved budget of each financial year.

24. Offences and penalties

A person who misappropriates any funds or assets from the Fund, or assists or causes any person to misappropriate or apply the funds otherwise than in the manner provided in these Regulations, commits an offence and shall be liable to the penalty provided for under section 199 of the Act.

25. Effects of winding-up of the Fund

(1)On winding up of the Fund in accordance with the Act and Regulations made thereunder—
(a)the Administrator of the Fund shall compile any valid outstanding obligations and commitments for payment;
(b)the Administrator of the Fund shall pay any amount remaining in the Fund into the National Exchequer Account for the credit of the national government;
(c)the Cabinet Secretary shall pay any deficit in the Fund from the funds of the national government in the National Exchequer Account with the approval of the National Assembly; and
(d)assets, equipment and properties other than cash of the Fund shall be transferred to the Ministry for the time being responsible for matters relating to defence.
(2)Within three months upon the decision to wind up the Fund, the Administrator of the Fund shall prepare final financial and non-financial statements of the Fund and submit them to the Defence Council for approval.
(3)Upon approval under subsection (2), the Administrator of the Fund shall submit the final financial and non-financial statements to the Cabinet Secretary.
(4)The Cabinet Secretary shall submit a final statement of accounts to Parliament and to the Auditor-General for audit within three months from the date of the decision to wind up the Fund.
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History of this document

22 December 2023 this version
31 October 2023
Commenced

Cited documents 2

Act 2
1. Public Finance Management Act 685 citations
2. Public Audit Act 113 citations

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