The overall fiduciary risk in the Kenya Education Sector Support Programme (KESSP) was found to be High. The risks assessments were based on a combination of two previous Public Expenditure Financial Accountability (PEFA) assessments in 2006 & 2008; Education Sector-specific financial management assessments; and professional judgement.
The assessment reviewed public financial management accountability (PFMA) at the national level central processes before examining the Education Sector-specific issues. DFID’s approach recommends that an assessment of the strengths and weaknesses of PFM systems be based on the PEFA methodology, which evaluates 28 high-level PFM indicators, grouped into six broad categories based on the budget cycle.
Issues raised in the PEFA which are likely to affect PFMA performance in the sector include:
- Credibility of the budget
- Comprehensiveness and transparency
- Policy based budget
- Predictability and control in budget execution
- Accounting, recording and reporting
- External scrutiny and audit
- Fiduciary risk issues from the nature and composition of revenue and expenditure in the sector
- National expenditure profile
- The adequacy of Education sector financial management capacity
- The main corruption risks at sector level