What you need to know about the Ward Development Fund!

Your MCA has been lying to you! Be sharp

The Office of the Controller of Budget (OCOB) released the Ward Development Fund Guidelines through the circular No.26 of 2014. The Ward Development Fund guidelines should help the counties to actualize and operationalize the Fund. Ward Development Fund should enable the counties to finance projects at the ward level.

The Ward Development Fund guidelines should aid the counties in establishing the Fund to adhere to established laws. These laws include the Public Finance Management (PFM) Act and the Constitution. The Controller of Budget expects the Ward Development Fund guidelines to improve reporting and accountability of public funds.

What the Ward Development Fund guidelines stipulate

The Ward Development Fund guidelines formulated by the Controller of Budget stipulate a number of issues. These are concerned with the establishment of the Fund, the approval of the Fund, and the operationalization and administration of the Fund.

The Ward Development Fund Guidelines also speak about the roles of the Members of the County Assembly (MCAs), County Executive, and the county residents. The Ward Development Fund guidelines also require provisions for monitoring, evaluation, and auditing of the Fund.

1. Establishment of the Ward Development Fund

First, a county entity or a relevant department identifies the need to establish the Ward Development Fund. It forwards this proposal to the County Executive Member for Finance. The County Executive Member for Finance then submits the proposal to the County Executive Committee for approval.

When the County Executive Committee approves the proposal, the County Executive Member for Finance will then draft a County Bill or County Regulations. The Bill or the Regulations will establish and operationalize the Ward Development Fund.

2. Approval of Ward Development Fund Bill or Regulations

The County Executive Member for Finance will then submit the Ward Development Fund Bill or Regulations to the County Assembly for Approval. Once the County Assembly approves the Ward Development Fund Bill, the governor assents to the Bill. The County Government then publishes the Bill in the Kenya Gazette.

3. Operationalization and Administration of the Ward Development Fund

The County Executive Member for Finance will designate an administrator to operationalize the Fund. The functions of the administrator include:

• Preparation of financial statements for the fund
• Operating a bank account for the fund
• Preparation of quarterly financial statements for the fund, which the administrator submits to the County Treasury and the Controller of Budget.

Every county should keep only one bank account for the Ward Development Fund. The administrator of the Fund shall be a mandatory signatory to the bank account.

The County Executive shall undertake the implementation of the Ward Development Fund programmes and projects.

The County Public Service Board shall address staffing needs for purposes of administering the fund.

4. Role of the Members of the County Assembly and Residents

The Constitutional requires clear separation of powers between implementation and oversight. The MCAs shall play a role of mobilizing the residents of each Ward to identify priority projects for each financial year. In identifying these projects, public participation is critical.

5. Role of the County Executive

The County Executive shall be responsible for implementation of projects funded by the Ward Development Fund. It shall implement the list of priority projects that the MCAs and members of the public identify after they receive them.

The County Executive must include the projects in the planning documents for the financial year (Annual Development Plans) and the County Fiscal Strategy Paper. No funds shall be appropriated (allocated or spent) outside a planning framework. The County Executive should also include the projects in the budget estimates in accordance with programme based budgeting.

6. Monitoring and Evaluation

The Members of the County Assembly shall play oversight and monitor implementation of projects financed by the Ward Development Fund.

7. Auditing

The Ward Development Fund Bill or Regulations should stipulate provisions for auditing the Fund.

Points to note from the Ward Development Fund guidelines

1. The County Executive shall formulate the Bill or Regulations to operationalize and administrate the Ward Development Fund.
2. The Ward Development Fund shall only come into operation upon approval of the Bill or Regulations by the County Assembly.
3. Only the County Executive shall manage the Fund and Implement projects and programmes financed by the Fund. In the principle of separation of powers, MCAs shall not take part in this function.
4. Public participation is critical. County residents should identify priority projects that the Ward Development Fund should finance.
5. The MCAs shall monitor and play oversight on appropriation of the Fund and the implementation of projects financed by the Fund. They shall also mobilize residents to identify priority projects for the Fund to finance.