The Government, through the Ministry of Finance and National Planning, has issued new guidelines to streamline the approval of CDF projects. The specific objective is to quicken the implementation of CDF projects through limited delegation of the powers of the Secretary to the Treasury to the Principal Local Authorities Officers (Town Clerks/Council Secretary’s) for variations, if necessary, of estimates of expenditure and disbursed funds, within the CDF programme in local authorities.
According to Treasury and Financial Management Circular No. 4 of 2023, dated 3rd January, 2023, the Secretary to the Treasury has delegated (through the Permanent Secretary, Administration, Ministry of Local Government and Rural Development) the function of approval of up to a maximum of 25% variation of estimates of expenditure, to Principal Officers (Town Clerks/Council Secretary’s) in Local Authorities, where necessary.
Previously it was a requirement that approval is obtained from the Secretary to the Treasury in line with Regulations No. 30 and 31 of the Public Finance Management (General Regulations) of 2020. The new measures are expected to expedite the implementation of CDF projects and make the process more efficient. The measures will also improve public service delivery through local authorities, create employment for the youth and women, and ultimately contribute to the socio-economic development of the country.
Furthermore, circular no. 4 of 2023 will guide Principal Officers (Town Clerks/Council Secretary’s) in Local Authorities on variation of funds within the CDF programme. Key issues to note in the Circular are that:
1) The Controlling Officer, Local Government and Rural Development, is required to appoint Principal Officers (Town Clerks/Council Secretary’s) in Local Authorities as Sub-Warrant-Holders for them to approve variation of expenditure estimates and disbursed funds up to a maximum of 25% of the total budget provision of a particular sub-programme within the CDF programme;
2) Where the variation of expenditure estimates and disbursed funds within the CDF sub-programme is above the authorized threshold of 25%, Local authorities shall continue to seek written approval of the Secretary to the Treasury;
3) Variation of estimates of expenditure and disbursed funds from community projects and secondary school boarding and skills development bursaries to youth, women and community empowerment sub-programmes Shall Not be allowed. However, if the demand for the uptake of bursaries and skills development is below the stipulated threshold, variations in favour of community projects will be allowed and,
4) Variation of estimates of expenditure and disbursed funds from community projects, youth, women empowerment and secondary school boarding and skills development bursaries sub programme to the administration sub – programme Shall Not be allowed.
Going forward, the Government will continue to monitor the efficacy of the measures to ensure that the beneficiary communities are well served through effectively implemented CDF projects. All Local Authorities are urged to acquaint themselves with the Treasury and Financial Management Circular No. 4 of 2023, to ensure that some of the approval shortcomings in the implementation of CDF, are curtailed.