1. Governance Audit for the Counties
Governance Audit for the Counties
CALVIN NYACHOTI

2. Everyone on board...?

3. Trends Towards Self Governance
Many analysts see central government as being poorly equipped to deal with challenges of provision of modern services.
The trend across the globe is to devolve services close to the grassroots and divest (and reduce) as much as practical government from people’s lives.
Devolution by itself is a form of self-governance – bringing governance as close as possible to the people – to allow them participate and determine their own destiny and outcomes.
Recognizes the rights of communities to manage their own affairs and have greater say in decision making processes.
The solution lies in effective self governance.

4. Background
Governance is the term used to describe the role of persons entrusted with the supervision, control, and direction of an entity.
Who governs?
How well do they govern?
Good governance at the county level is about how county governments ensure that they are doing the right things, in the right way, for the right people, in a timely, inclusive, open, honest and accountable manner.
Ultimate benefit of good governance is the more efficient allocation of resources to its most productive uses.
‘’If management is about running business, governance is about seeing that it runs properly ’’ Professor Bob Tricker

5. Background
Government is the exercise of political authority over actions and affairs of a political unit, people.
County Governance may be defined as:
the systems and processes, cultures and values, by which county governments and related bodies are directed and controlled and through which they account to, engage with and lead their communities.
It relates to the stewardship of assets and resources so as to increase and sustain county community value as well as satisfying the needs and interests of all stakeholders.

6. Pre-empting County Governance Failures
No governance system, no matter how well designed, fully prevents unscrupulous & dishonest persons from putting personal interests ahead of interests of the community.
But many steps can be taken to improve the governance environment and thereby reduce opportunities for failures.
Although governance mechanisms may complement or substitute for each other, e.g. certifying financial statements as being according to accounting standards, the auditor’s diligence serves as an additional control mechanism.

7. Pre-empting County Governance Failures
The Board should ensure that it subjects the organization to an annual governance audit by a member the Institute of Certified Public Secretaries of Kenya (ICPSK) accredited for that purpose.
A periodic evaluation of an county’s governance practices is indispensable. It evaluates whether the county is fully complying with its constitutional and legislative design, implementation and effectiveness and is furthering its objectives and activities.
The results of the audit are meant to put in place remedial measures to ensure it delivers on its mandate.

8. Internal Structures for Institutionalizing Governance Audit
The Boards/Committees
Internal and external audit
Integrity officers
Disciplinary committees and procedures
Board and Committee Charters
Governance Codes and Codes of Conduct
Service Charters
Statutes/by laws
Appropriate policies
When it is institutionalized it becomes every body's responsibility

9. 6 key focus areas in County Governance Audits

10. Focus on purpose and outcomes
The Counties will:
Assess purpose, vision and its implications for the County's governance arrangements.
Ensure that partnerships are underpinned by a common vision.
Publish an annual report on a timely basis to communicate the County's activities and achievements, its financial position and performance.
Measure the quality of service for users and ensure that the information needed to review service quality effectively and regularly is available.
Put in place effective arrangements to identify and deal with failure in service delivery
Measure value for money and avail information for review of value for money and performance (e.g. environmental impact of policies, plans and decisions)

11. 2. Clearly defined functions and roles
Evaluate the presence of clear statement of the respective roles and responsibilities of various members individually and the county bodies.
Determine a scheme of delegation and reserve powers taking account of relevant legislation.
Are leaders responsible and accountable for their actions.
Make a senior member/officer responsible for ensuring that appropriate advice is given and procedures followed.
Set out the terms and conditions for the remuneration of members and officers and manage the process.
County vision, strategic plans, priorities and targets are developed through robust consultative mechanisms.
Ensure that partners appreciate their roles and responsibilities.

12. 3. Upholding high standards of conduct
Assess whether the county leadership has set the tone at the top by creating a climate of openness, trust, support and respect.
Whether standards of conduct and personal behaviour expected of members and staff have been defined and communicated the e.g. thro’ codes.
Whether county has develop arrangements to eliminate/reduce prejudice, bias or conflicts of interest in dealing with stakeholders.
Developed and maintains shared values including leadership values. (Use the constitutional shared values to guide decision making).
In partnership, agree a set of values against which decision making and actions can be judged.

13. 4. Informed, transparent decision-making
Whether risk management is embedded in county decision making culture.
Allows and encourages constructive challenge that enhances performance.
Maintains open and effective mechanisms for evidence for decisions, the criteria, rationale and considerations.
Maintain an effective and independent audit function.
Ensure that effective, transparent and accessible arrangements are in place for dealing with complaints.
Timeously utilize professional advice on legal, financial or other areas

14. 5. Develop capacity and capability
Provide tailored regularly reviewed induction and training programmes.
Statutory officers must have the skills, resources and support necessary to perform effectively in their roles.
Assess the skills required and make a commitment to develop those skills.
Ensure effective arrangements for reviewing the performance e.g. any training or development needs.
Promote marginalized sections of the community.
Ensure that career structures are in place for members and officers to encourage participation and development.

15. 6. Robust stakeholder engagement
Develop and assess the effectiveness of the relationships and any changes required.
Produce an annual report on county activities for scrutiny purposes.
Ensure clear channels of communication and monitoring are in place.
Hold meetings in public unless there are good reasons for confidentiality.
Ensure that arrangements are in place to enable the counties to engage with all sections of the community effectively (reconcile competing needs).
On an annual basis, publish a performance plan giving information on the vision, strategy, plans and financial statements as well as information about its outcomes, achievements and the satisfaction of service.
Develop and maintain a clear policy on how staff and their representatives are consulted and involved in decision making

18. “In order that people are happy in their work, these three things are needed: they must be fit for it; they must not do too much of it; and they must have a sense of success in it.” John Ruskin

19. Q & A