www.pwc.com/ke
Micro - Assessment of UNDP Kenya ImplementingPartner
The Judiciary of the Republic of Kenya
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August 2015
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Catherine Masaka Deputy Country Director - Operations United Nations Development Programme, Kenya United Nations Office in Nairobi Gigiri, Block M, 3rd Level P.O. Box 30218 - 00100 Nairobi, Kenya
6 August 2015
Dea1· Catherine,
Subject: Micro Assessment Report to the United Nations Development Programme (UNDP) Kenya and the Judiciary of the Republic of Kenya
We are pleased to submit our report on the micro-assessment of the Judiciary, a UNDP Kenya Implementing Partner. The assessment was carried out during the period 30 April to 4 May 2015.
Our report is structured into the following parts:
1. Executive summary
2. Financial management assessment 3. Programme management assessment 4. Appendices The micro assessment report has only been prepared for the purpose of providing an overall assessment of the Implementing Partner's programme and financial management capacity that will enable UN Agencies to manage the financial and programme risk of working with partners and may not be suitable for another purpose.
Our repo1t is intended solely for presentation to the UNDP Kenya office for the purpose described above and should not be distributed to or used by other parties.
We wish to express our appreciation to the UN for the opportunity accorded to us to provide our professional services. We also wish to thank the management and staff of the Judicia1y for their cooperation during the assessment.
Yours sincerely For and on behalf of PricewaterhouseCoopers Limited
' PricewaterhouseCoopers Limited. PwC Tower, Waiyaki Way/Chiromo Road, Westlands PO Box 43963 - 00100 Nairobi, Kenya T: +254 (20)285 5000 F: +254 (20)285 5001 www.pwc.com/ke
Directors: S Cheruiyot A Eriksson M Karama K Muchiru M Mugasa F Munu S Mutinda P Ngahu R NjoroQ9 S Okello B Okundl K Saiti R Shah J Kabochi U AApata· M Wambugu M Thoithi T Mukora SN Ochieng' A Murage T Almassy# 1• Nigerian)(# Hungarian) Glossary ofterms
Abbreviation Full name AWP Annual Work plan CAC Chief Accounts Controller CBK Central Bank of Kenya CIA Chief Internal Auditor CJ The Chief Justice CoB Controller of Budget CoK Constitution of Kenya CPA-K Ce1tified Public Accountant of Kenya CPD Continuous Professional Development CRJ Chief Registrar of the Judiciacy DANIDA Danish International Development Agency - DCAC Deputy Chief Accounts Controller DDoF Director of the Directorate of Finance DHRA Directorate of Human Resource and Administration ,._ DoA Directorate of Accounts DoF Directorate of Finance DPAC Directorate of Public Affairs and Communication DPM Directorate of Performance Management EACC Ethics and Anti-Corruption Commission EU European Union FY Financial Year GFMR Government Financial Management Regulations GIZ German Federal Enterprise for International Cooperation GoK Government of Kenya G-Pay Government Payment HACT Harmonised Approach to Cash Transfers HELB Higher Education Loans Board IAC Internal Audit Committee lAD Internal Audit Department ICPAK Institute of Certified Public Accountants of Kenya ICT Information Communication & Technology IDLO International Development Law Organization Abbreviation Full name I IFMIS Integrated Financial Management Information System IP Implementing Pru.1ner IPMAS Integrated Performance Measurement and Accountability System IPSAS International Public Sector Accounting Standards - ISAs International Standards on Auditing JPIP Judicial Performance Improvement Project JSC Judicial Service Commission JTDPF Judiciary Transformation Development Partners Forum JTF Judicial Transformation Framework JTFSC Judiciary Transformation Framework Steeling Committee JTSP Judicial Transformation Support Project KEN AO Kenya National Audit Office KR.A Kenya Revenue Authority t-- Kshs Kenya Shillings M&E Monitoring and Evaluation NCAJ National Committee on Administration of Justice OtOJ Office of the Ombudsman of the Judiciary PFM Public Finance Management PMC Performance Management Committee PMMSC Performance Management and Measurement Steering Committee PPARB Public Procurement Administrative Review Board - PPD Public Procurement and Disposal PPOA Public Procurement and Oversight Authority PSC Public Service Commission PWDs Persons with Disabilities SC Supreme Court SIDA Swedish International Development Agency TOC Tender Opening Committee USD United States Dollar WB World Bank Table ofContents
1 Executive summary ...... 1
2 Financial Management Assessment...... 27
3 Programme Management Assessment ...... 49
Appendices ...... 66
1 Executive suntntary
1.1 Background ofthe Implementing Partner
The Implementing Partner (IP), The Judiciary of the Republic of Kenya, was established by the Constitution of the Republic of Kenya. This was through Chapter 10, Article 159 of the Constitution of Kenya (CoK), 2010. At the time of the assessment, it was one of the three arms of the Government of Kenya (GoK) and thus, it was independent from the Executive and Legislative arms of GoK.
1.2 Approach and methodology
To address the assignment requirements, we administered the assessment questionnaire through an interview process. The questionnaire was designed in collaboration with UNDP Kenya to enable us gather and synthesise the information. We reviewed selected documentation and held interviews and discussions with relevant management and staffof the entity. 1.3 Structure ofour report
We present our findings in this report under the following headings:
Section 1 Executive smnmary
Section 2 Financial management Section 3 Programme management We have reported on our detailed findings, recommendations and conclusions in response to all the requirements of the terms of reference in each of the above sections.
For each of our findings, we have provided an indication on the severity of risk and identified their root causes. In the table below, we define the risk ratings subsequently used in the repo1t:
Score 1 - The GREEN which represents low risk. - An organisation with this rating will have strong capacity to manage the UNDP funds
Score 2 - The Blue which represents moderate risk. -An organisation with blue rating will be one which has met most of the basic minimum criteria
Score 3 - The AMBER which represents significant risk. - An organisation with amber rating will be one which fails to meet some of the basic minimum criteria
Score 4 - The RED which represents high risk - An organisation with red fails to meet most of the basic minimum criteria
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenys 1 1.4 Summary ofrisks related to the financial management capacity ofthe implementing partner
1 Implementing 8 5 2-Moderate • At the time of the assessment, the Directorates of Human Resource and Partner risk Administration, Information Communication Technology, Finance and Supply Chain Management were headed by acting Directors pending finalization of the recruitment process commenced by Judicial Service Commission (JSC). These were members of the management team. • At the time of the assessment, the IP was embroiled in various court cases mainly relating to suits filed by current and former staff of the Judiciary.
2 Funds flow 6 6 1-Lowiisk • The IP operated an exchequer bank account that facilitated receipt and disbursement of funds from the National Treasury. The IP also opened separate bank accounts whenever required by the donor financing agreements. • The IP had benefitted from the system of disbursements where its budget was a direct charge to the Consolidated Fund of the GoK run by the National Treasury (NT) at CBK. • The IP had minimal exposure to foreign exchange risks. Also, the accounts and finance Directorates were staffed with competent officers who had capacity to manage foreign exchange risks. 3 Organisational 18 10 2-Moderate • At the time of the assessment, the IP did not have a staffing structure within the structure and risk Directorates of Accounts and Finance. The staff thus relied on the established practice staffing to determine their reporting framework. • Some of the court stations did not have qualified accountants and the accounts function was thus unde1taken by clerks who had gained experience over time and some who had also studied accounts but were yet to be re-designated as Accountants. • The staff were not familiar with the United Nations procedures related to cash transfers (specifically the HACT framework). • The Finance Director was dismissed from employment by JSC and had not been replaced at the time of the assessment. The Directorate of Finance was headed by an acting Finance Director.
Micro Assessment for UNDP Implementing Partner. The Judiciary ofthe Republic of Kenya PwCKenya 2 No. Tested subject Total No. Total No. of Overall risk Comments area of risk applicable assessment points questions
4 Accounting 53 45 1 - Low risk I • The IP used an automated accounting system, IFMIS, which was hosted by the NT for policies and all GoK entities. In addition> the IP processed the payments using the e-Payment procedures system which was an online payment mechanism. • There was an accounting system that had a robust chart of accounts tailored to the nature of GoK expenditure categories. • The accounting and supporting documents were maintained in a defined system that allowed access to authorized users. The destruction process was verified by the Kenya National Audit Office (KENAO) Officers and final approval given by the Chief Registrar of the Judiciary (CRJ). • The functions of authorization, recording and posting of transactions were carried out by different officers within the Directorate of Finance (DoF) and Directorate of Accounts (DoA). • The IP had adequate segregation of duties in the ordering> receiving and payment for the procured goods and services. • The bank reconciliations were prepared by individuals other than those who made or approved payments. We noted the bank reconciliations statements for the bank accounts were up to date. • The budgeting methodology complied with the PFM Act that required preparation of programme based budgets. Further, the budget showed both the physical and financial targets. • The management undertook regular comparison and reviews of the budget utilization to assess the status of its implementation and progress in achieving the set targets. • The IP had complied with the PFM Act with regard to approval of significant variations from budget. • The management had in every financial year prepared the budget estimates within the required timeline. In addition, the budgeting process was robust and involved public hearings to consider the views of the court users. • The functions of authorization, recording and posting of transactions were carried out by different officers within the Directorate of Finance (DoF) and Directorate of
Micro Assessment for Ufl/DP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 3 Accounts {DoA). • The payment vouchers and their supporting documents were stamped 'paid', dated, reviewed and approved, and posted to the appropriate items lines within the sub-votes. • The IP used the GoK per-diem guidelines when giving allowances to staff for field activities outside of their duty stations. • There IP was governed by robust internal control framework underpinned in the PFM: Act and the new PFM Regulations gazetted through Legal Notice No. 34 dated 20 March 2015. • The IP was governed by the various laws, regulations and guidelines that provided guidelines on the management of conflict of interest by judiciary staff and other expected standard of behaviour and conduct for public officials. • There were defined signatories to the bank accounts and an operational mandate established. • The IP had adopted an internet banking system that minimized use of cash payments for items such as staff advances for field work out of the duty stations. • The IP has a system to protect the assets from unauthorized removal from the premises. Additionally, a comprehensive assets register was maintained for the UNDP funded programme. • The management had established a procedure that required surrender of previous quarter funds before disbursement of additional funds to the court stations. • The management had set up structure th.rough which suspected fraud, waste or misuse of resources or property could be reported and addressed. 5 Internal audit 10 5 2-Moderate • The IAD did not have an approved structure clearly defining the reporting the risk administrative and functional reporting framework as well as the internal reporting processes within the department. • Administratively, the CIA reported to the Director of the Directorate of Finance (DDoF) who ideally headed an internal entity subject to internal audit reviews. This was not in compliance with section 73 (4) of the PFM Act which required internal audits to be
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 4 conducted in accordance with international best practices. • The !AD did not have a separate budget of its own and had to request for financial support from the DDoF. This meant the CIA was not the budget holder for his department. This had the potential to affect the operational independence of the IAD. • The department had only 8 staff compared to the staff establishment of 44 staff members required for optimal performance. • At the time of the assessment, the IAD did not have a separate internal audit manual setting out the standard operating procedures to guide the staff in the performance of the internal audit reviews. • The lAD had carried out reviews and issued reports containing various recommendations for implementation by the management.
6 Financial audit 9 7 1 - Low risk I • The :financial statements were audited by the Auditor General as required by the law. • There were no delays in audits of the IP's financial statements, and the financial statements were issued within a reasonable time. • The audit of the UNDP funded programme resulted in an unqualified opinion and no internal control or operational weaknesses were noted. • The external auditor, KENAO carried out an audit for all financial operations of the IP and as such donor funds were subjected to an annual external audit process as applicable.
7 Reporting and 8 6 1 - Low risk I • The financial statements of the IP were prepared in accordance with the guidelines monitoring provided by the National Treasury and submitted to the Auditor General and the National Treasury by 30 September of every financial year. • The PFM Act had specified the financial management reporting responsibilities.
8 Information 7 5 1 - Low risk I • The IP used IFMIS which was an automated accounting system to record the financial System transactions. Access to this system was restricted and was granted after a request was made to Nr through the set procedure for grant of access and login credentials. Further, the data processed through IFMIS was updated in real time and continuously backed up.
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 5 • IFMIS was an online system accessed only by authorised users and was continuously backed up. • There was use of an anti-virus system to prevent unauthorised intrusion into the IP's ICT network. • There were set requirements for regular change of passwords, length of passwords and the characters to be used. 9 I Procurement I 49 I 35 I 1-Lowrisk I The IP: • Benefitted from the national laws that were flexible enough to incorporate donor procurement practices as available options that could be used for procurements financed using donor funds. • Relied on the ethical framework enshrined in the code of ethics prepared by PPOA for the procurement officers of the public entities. • Had set up mechanisms such as the Office of the Ombudsman of the Judiciary (OtOJ), drop boxes and suggestion boxes to report on fraud and corruption within the Judiciary. • Ensured the procurement methods used at the IP complied with the provisions of the procurement laws and regulations. Any proposals for deviations were approved prior to occurrence of the procurement event. • Had established committees charged with ensuring procurement activities were adjudicated on as set out by the procurement laws and regulations. • Made use of the standard bidding documents and contracts provided by the PPOA • Maintained a list of prequalified suppliers in compliance with the law. • Had a robust system governing the tender opening processes and there was wide representation in the Tender Opening Committee (TOC). Total I I 168 I 124 I 1 - Low risk I Low risk
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 6 1.5 Summary ofrisks related to the programme management capacity ofthe implementing parbter
1 I Partner Identification I 1 I 1 I 1-Low risk I • The Implementing Partner was established through the Constitution of Kenya (CoK) and as such, it was an independent arm of the Government of Kenya with a clear mandate. 2 I Partner overview, technical 9 7 1-Low1isk • The IP had a vision, mission and its mandate was clearly spelt capabilities and geographic reach I I I out in the JTF, 2012-2016, and the Constitution of Kenya, 2010. • The management incorporated the current approaches underpinned in various standards and commitments in relating with different stakeholders and in service delivery. • The management had set clear strategic objectives to guide the transformation of the Judiciary. 3 I Capabilities for Results Based 4 4 1-Lowrisk • The management had developed the JTF premised on four Planning I I pillars, 10 key result areas, implementation plan and the results- I based matrix. • The planning processes were guided by the JTF that was developed after a holistic analysis of the status of the Judiciary. The analysis identified the issues that affected the Judiciary and remedial measures were proposed and these laid the basis of the annual workplans. • The management team met regularly to review performance and was assisted by the Directorate of Performance Management (DPM) in this through submission of regular performance management and measurement reports. • The IP had the relevant experience in undertaking surveys and the outcomes were used to inform the design and redesign of both administrative and functional operational processes. 4 Project cooperation agreements - 4 2 2-Moderate • For the 2014 implementation period, the IP had spent USD
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenys 7 implementation risk 470,920 against the period budget of USD 1,430,199. This modalities/arrangements I I · I I represented an absorption rate 33%. • The implementing units had not engaged more with UNDP with regard to planning, activity implementation and sharing of experiences. Thus, the management had agreed with UNDP for the implementing units to appoint coordinators for the JTSP project. • We noted that for the 2015 implementation period, the management had not submitted to UNDP, the progress report for the 3 months to 31 March 2015. 5 I Human resources I 9 I 5 I 2 - Moderate • There was shortage of staff with sufficient qualifications and risk experience to act as database administrators within the various court stations. • Some of the court stations did not have qualified accountants hence accounting functions were performed by clerks. The staffing survey carried out in 2014 showed the Judiciary lacked adequate staff within the cad.res of court clerks, customer care desk staff; court executive officers and within the Internal Audit Department among other cadres. 6 I Capabilities for performance 6 4 2-Moderate • The management had not finalised on the development, testing monitoring and documentation for risk and implementation of the Integrated Performance scaling up and/or policy influence Measurement and Accountability System (IPMAS) to improve on performance management within the Judiciary as envisaged in theJTF. 7 I Moni~o?11g & Evaluation systems and I 9 8 I How risk I• There was the Directorate of Performance Management charged capacities I with performance monitoring, management and measurement for the Judiciary. • The management had through the Performance Management and Measurement Steerin~ Committee (PMMSC)i. undertaken a
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 8 comprehensive review of the current performance monitoring, management and measurement activities and developed harmonized framework for the entire Judiciru:y. • The management had undertaken various performance monitoring initiatives using the current tools for data gathering and utilized the results to enhance service delivery and engage with different stakeholders with regard to financial and collaborative support.
8 Partnerships 3 3 t - Low risk I • The IP had established networks that it partnered with for performance of its mandate and also to leverage on resources and policies. • The Judiciary collaborated with different partners and public entities to share knowledge and resources.
9 Capacity for innovations, modelling 4 3 1 - Low risk I • The Judiciary had mainstreamed matters such as gender, equity, and setting and applying programme disaster risk management and regional balance within its standards operational framework. • The management had inculcated piloting of initiatives before rolling them out. The notable instance was the piloting of the case management system. • The management had adopted use of innovative approaches to planning such as incorporation of mobile courts within the system to improve access to justice. Total 49 37 t-Lowrisk
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 9 1.6 Summary ofkey strengths
Overview of the 2.1.1 • The IP was established by the Constitution of Kenya, 2010 and was independent from the Executive and Legislative arms of Implementing Partner theGoK. • The IP had complied with the reporting requirements within the required timelines. • The governing body was the Judicial Service Commission (JSC) chaired by the Chief Justice {CJ). The management was separate from the JSC and was chaired by the Chief Registrar of the Judiciary (CRJ) who being the Secretary to JSC, acted as the link between JSC and the management team. These two bodies had clear roles and responsibilities and performed their individual mandate.
1 ~...... , ·· "' 2.2.2'?.2 I • The IP operated an exchequer bank account that facilitated receipt and disbursement of funds from the National Treasury. The IP also opened separate bank accounts whenever required by the donor financing agreements. • The IP had minimal exposure to foreign exchange risks. Also, the Finance and Account Directorates were staffed with competent Officers who had capacity to manage foreign exchange risks if any.
Staffing-Finance and 2.3.3 • The staff were taken through b:aining courses and received sponsorships for ICPAK annual subscriptions and the CPD Administration courses. • The new staff were required to undergo clearance process carried out by the Ethics and Anti-Con-uption Commission (EACC), Higher Education Loans Board (HELB) and the Kenya Revenue Auth01ity (KRA). Accounting procedures 2-4.2 • The IP used an automated accounting system, IFMIS, which was hosted by the NT for all GoK entities. In addition, the IP and policies processed the payments using thee-Payment system which was an online payment mechanism. • There was an accounting system that had a robust chart of accounts tailored to the nature of GoK expenditure categories . • The accounting and supporting documents were maintained in a defined system that allowed access to authoiized users . • The IP had adequate segregation of duties in the ordering, receiving and payment for the procured goods and services. • The bank reconciliations were prepared by individuals other than those who made or approved payments. We noted the bank reconciliations statements for the bank accounts were up to date. • The budgeting methodology complied with the PFM Act that required preparation of programme based budgets. Further, the budget showed both the physical and financial targets. • The management undertook regular comparison and reviews of the budiet utilization to assess the status of its
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 10 implementation and progress in achieving the set targets. • The IP had complied with the PFM Act with regard to approval of significant variations from budget. • The management had in every financial year prepared the budget estimates within the required timeline. In addition, the budgeting process was robust and involved public hearings to consider the views of the court users. • There IP was governed by robust internal control framework underpinned in the PFM Act and the new PFM Regulations gazetted through Legal Notice No. 34 dated 20 March 2015. • The IP was governed by the various laws, regulations and guidelines that provided guidelines on the management of conflict of interest by judiciary staff and other expected standard of behaviour and conduct for public officials. • There were defined signatories to the bank accounts and an operational mandate established. • The IP had adopted an internet banking system that minimized use of cash payments for items such as staff advances for field work out of the duty stations. • The IP has a system to protect the assets from unauthorized removal from the premises. Additionally, a comprehensive assets register was maintained for the UNDP funded programme. • The management had set up structure through which suspected fraud, waste or misuse of resources or property could be reported. and addressed. Internal audit The IP had established an Internal Audit Department. ~• The IP had an Internal Audit Committee (IAC) whose membership was drawn from the JSC Commissioners. Functionally, the IAD reported to IAC. • The IAD staff were qualified and possessed the appropriate mix of experience• • The IAD had adopted a risk based audit approach in planning and execution of internal audit reviews. The adoption was facilitated by performance a risk assessment over the operational processes of the Judiciary. • The IAD had developed a workplan for 2014/15 and the service charter for operational guidance . • The IAD carried out regular internal audit reviews and issued reports with the appropriate recommendations .
External audit 2.~ The financial statements were audited by the Auditor General as required by the law. • There were no delays in audits of the IP's financial statements, and the financial statements were issued within a reasonable time. • The audit of the UNDP funded programme resulted in an unqualified opinion and no internal control or operational weaknesses were noted. • The external auditort KENAO carried out an audit for all financial operations of the IP and as such donor funds were
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 11 subjected to an annual external audit process as applicable. Reporting and monitoring 2.7.2 • The financial statements of the IP were prepared in accordance with the guidelines provided by the National Treasury and submitted to the Auditor General and the National Treasury by 30 September of every financial year. • The PFM Act had specified the financial management reporting responsibilities . Information management 2.8.2 • The IP used IFMIS which was an automated accounting system to record the financial transactions. Access to this system system was restricted and was granted after a request was made to NT through the set procedure for grant of access and login credentials. Fmther, the data processed through IFMIS was updated in real time and continuously backed up. I I • IFMIS was an online system accessed only by authorised users and was continuously backed up. • There was use of an anti-virus system to prevent unauthorised intrusion into the IP's ICT network. • There were set requirements for regular change of passwords, length of passwords and the characters to be used. Procurement management 2.9.2 • The IP benefitted from the national laws that were flexible enough to incorporate donor procurement practices as available options that could be used for procurements financed using donor funds .. • The IP relied on the ethical framework enshrined in the code of ethics prepared by PPOA for the procurement officers of the public entities. • The management had set up mechanisms such as the Office of the Ombudsman of the Judiciary (OtOJ), drop boxes and suggestion boxes to rep01t on fraud and corruption within the Judiciary. • The management ensured the procurement methods used at the IP complied with the provisions of the procurement laws and regulations. Any proposals for deviations were approved prior to occurrence of the procurement event. • The IP had established committees charged with ensuring procurement activities were adjudicated on as set out by the procurement laws and regulations. • The IP made use of the standard bidding documents and contracts provided by the PPOA. • The IP had a robust system governing the tender opening processes and there was wide representation in the TOC .
Partner overview, 3.2.2 • The IP had a vision, mission and its mandate was clearly spelt out in the JTF, 2012-2016, and the Constitution of Kenya, technical capabilities and 2010. geographic reach • The management incorporated the current approaches underpinned in various standards and commitments in relating with different stakeholders and in service delivery. • The management had set clear strategic objectives to guide the transformation of the Judiciary.
Micro Assessment for UNDP lmpfementing Parlner. The Judiciary of the Republic of Kenya PwCKenya 12 Capabilities for Results 3.3.2 • The management had developed the JTF premised on four pillars, 10 key result areas, implementation plan and the results Based Planning based matrix. • The planning processes were guided by the JTF that was developed after a holistic analysis of the status of the Judiciary. The analysis identified the issues that affected the Judiciary and remedial measures were proposed and these laid the basis of the annual workplans. • The management team met regularly to review performance and was assisted by the DPM in this through submission of regular performance management and measurement reports. • The IP had the relevant experience in undertaking surveys and the outcomes were used to inform the design and redesign of both administrative and functional operational processes. Project Cooperation 3.4.2 • The Judiciary had received positive response from the development partners who supported some of the activities identified Agreements (PCA) / for implementation in the JTF. implementation • The IP had established forums to engage with the development partners and for the JTSP, there was evidence the JTF-SC modalities / arrangements met regularly based on established needs. Human resources 3.5.2 • The management had developed schemes of service for the Judiciary staff with support from UNDP. • The IP had staff training policy and capacity building programmes were undertaken based on the results of the training needs exercise. • The management had undertaken a staffing survey where one of the key outcomes was an analysis of the current staff within the Judiciary and the determination the staff establishment. • The recruibnent process was undertaken by the JSC with support from the senior management team. Further, the JSC had delegated recruitment of officers from grade 8 and below to the senior management team. Adequate back.ground checks were performed to ensure compliance with Chapter 6 of the CoK and other relevant laws. • The framework for performance monitoring and measurement in the Judiciary was launched on 15 April 2015. In addition, there was a Performance Management Committee (PMC) made up of the HoDs and Court Registrars chaired by the CRJ. Capabilities for 3.6.2 • There was regular review monitoring and analysis of perfo1mance within the Judiciary undertaken at the different levels. performance monitoring I • All the projects implemented by the Judiciary had workplans based on the JTF and were used to monitor and measure and documentation for performance. scaling up and /or policy I I • The programme progress reports prepared by the management were detailed and contained all the critical information. influence
Monitoring & Evaluation I 3.7.2 I • There was the Directorate of Performance Management charged with performance monitoring, management and
Micro Assessment for UNDP lmpfementing Partner. The Judiciary ofthe Republic ofKenya PwCKenya 13 (M&E) Systems and measurement for the Judiciary. capacities • The management had through the PMMSC, undertaken a comprehensive review of the current performance monitoring, management and measurement activities and developed harmonized framework for the entire Judiciary. • The management had undertaken various performance monitoring initiatives using the cun·ent tools for data gathering and utilized the results to enhance service delivery and engage with different stakeholders with regard to financial and collaborative support. Partnerships 3.8.2 • The IP had established networks that it partnered with for performance of its mandate and also to leverage on resources and policies. • The Judiciary collaborated with different partners and public entities to share knowledge and resources . Capacity for innovations, I 3.9.2 • The Judiciary had mainstreamed matters such as gender, equity, disaster risk management and regional balance within its modelling and setting and operational framework. applying programme I I • The management had inculcated piloting of initiatives before rolling them out. The notable instance was the piloting of the standards case management system. I I • The management had adopted use of innovative approaches to planning such as incorporation of mobile courts within the system to improve access to justice.
Micro Assessment for UNDP Implementing Partner. The Jud;ciary of the Republic of Kenya PwCKenya 14 1.7 Summary ofkey weaknesses a) Definition of criteria The following criteria have been applied to prioritise the recommendations / findings in report:
High Those findings and subsequent recommendations, which address a major weakness in control or arrangements and should be implemented immediately.
Medium Weaknesses which do not represent best practice and may have an impact on the system of internal control or the efficiency with which the IF uses its resources and should be implemented as soon as practicable.
Low All other recommendations and suggestions for improvement which are desirable but not urgent and should be implemented as and when resources allow. b) Key areas for improvement We tabulate a summary of our findings in the table below: Note: The management did not provide us with management comments.
At the time of the assessment, the 2.1.3 High The management should None Immediate Directorates of Human Resource and ensure the recruitment Adminisb-ation, Information process was finalised and the Communication Technology, Finance and vacant positions filled up. Supply Chain Management were headed by acting Directors pending finalization of the recruitment process commenced by JSC. These were members of the
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 15 management team. -- At the time of the assessment, the IP was 2.1.3 Medium The management should I None I Continuous embroiled in various court cases mainly ensure close legal follow up relating to suits filed by cunent and was made with regard the former staff of the Judiciary. legal suits to manage the financial exposure that may arise if it lost the cases. - .. ------ffing ' ' At the time of the assessment, the IP did 2.3.3 Medium The staffing structure within I None I 6months not have a staffing structure within the the Directorates of Accounts Directorates of Accounts and Finance. and Finance should be The staff thus relied on the established developed as part of the practice to determine their reporting design of the overall framework. organizational structure. Some of the court stations did not have 2.3.3 High The management should in I None I 3 months qualified Accountants and the accounts liaison with the National function was thus unde1taken by clerks Assembly and National who had gained experience over time and Treasury allocate additional some who had also studied accounts but resources towards recruitment were yet to be re-designated as of more accounts staff. Accountants. The staff were not familiar with the 2.3.3 Medium The finance and accounts staff I UNDP training I 6 months United Nations procedures related to should be trained on UN assistance cash transfers (specifically the HACT procedures related to cash framework). transfers. The Directorate of Finance was headed by 2.3.3 Medium The recruitment for the I None I 3 months an acting Finance Director. position of the Director of Finance which had commenced at the time of the I assessment in Aeril 2015
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 16 There were no comprehensive records 2.4.3 High The management should I None 12 months showing all the assets belonging to the ensure an assets' verification Judiciary. In addition, the management exercise was carried out and did not carry out verification of assets. an assets register prepared capturing details such as the serial numbers, type and model of the assets among other requirements.
The IAD did not have an approved 2.5.3 Medium The management should I None 6months structure clearly defining the reporting develop a reporting and the administrative and functional staffing structure for the reporting framework as well as the Internal Audit Department internal reporting processes within the (IAD). department. Administratively, the Chief Internal 2.5.3 High The administrative reporting I None 6months Auditor (CIA) reported to the Director of framework for !AD to the the Directorate of Finance (DDoF) who Director of Finance should be ideally headed an internal entity subject revised to align it with Section to internal audit reviews. This was not in 73(4) of the PFM Act and the compliance with section 73 (4) of the best practices in the internal PFM Act which required internal audits audit sector. The management to be conducted in accordance with could consider making it international best practices. possible for the CIA to administratively report directly to the CRJ.
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 17 The lAD did not have a separate budget 2.5.3 Medium The management should I None I 6months of its own and had to request for financial allocate a separate budget for support from the DDoF. This meant the IAD where the CIA shall be CIA was not the budget holder for his the Budget Holder to enhance department. This had the potential to operational independence. affect the operational independence of theIAD. The depa1tment had only 8 staff 2.5.3 High I The management should I None I 6months compared to the staff establishment of 44 recruit more staff for the IAD. staff members required for optimal performance. At the time of the assessment, the IAD 2.5.3 Medium The management should I None I 6 months did not have a separate internal audit develop a comprehensive and manual setting out the standard separate internal audit operating procedures to guide the staff in manual setting out the the performance of the internal audit standard operating reviews. procedures to guide the staff in the performance of the internal audit reviews. The IAD had carried out reviews and 2.5.3 High The management should I None I Continuous issued reports containing various implement the recommendations for implementation by recommendations contained the management. However, the in the internal audit reports management had not fully implemented issued by the IAD. some of the recommendations.
- ' - - ernal audit I The external auditor had not complied 2.6.3 High The management should I None I Immediate with the constitutional requirement that follow up to ensure the the audit report should be submitted to external audit process was the National Assembly by 31 March of finalised on and a final report
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 18 evecyyear.
The audit opinion for the financial 2.6.3 High The management should I None 12 months statements was qualified for financial implement the audit issues year 2013/14 due to lack of assets resulting in qualification of registers and other records with regard to the financial statements. the assets.
The IP did not have adequate ICT staff 2.8.3 High The management should I None 6months with the specialisations required to ensure ICT staff with the operate as effective ICT administrators. specialisations required to operate as effective ICT administrators were recruited and deployed to the various court stations.
The IP did not have a specific code of 2.9.3 Medium The management should I None I 12months conduct and ethics with regards to develop a customised internal procurement activities. code of ethics and conduct for the procurement staff within the Judiciary. The management had not posted the final 2.9.3 Medium As part of an initiative on I None I Immediate list of prequalified suppliers on its access to information, the website for access by the public. management should share the list of prequalified suppliers on its website. We noted the management had not 2.9.3 Medium The management should I None I Immediate submitted the quarterly report for the ensure the quarterly
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 19 third quarter of financial year 2014/ 15 to I procurement reports were Public Procurement and Oversight I I submitted to PPOA on time. Authority (PPOA).
The IP had not fully transitioned to 2.9.3 I Medium IThe management should fast Assistance I 6months IFMIS's e-procurement. I track the process of from IFMIS transitioning to the e- Secretariat procurement module in IFMIS in all the court stations. 'The IP did not have adequate staff and we 2.9.3 High The management should I None I 6months noted the position of the Head of ensure adequate procurement Directorate of Supply Chain Management staff were recruited and the (DSCM) was held by a Principal positions of the Head of Procurement Officer in an acting DSCM and the Deputy were capacity. There was also no substantive filled up. Deputy Director of DSCM.
The Judiciary did not have a documented I 2.9.3 I Medium I A reporting and staffing I None I 6months and approved organization structure. structure for the DSCM should be developed and implemented to enhance the performance of duties within the Directorate.
At the time of the assessment in April 3.2.3 Medium The management should None 6months 2015, the Judiciary did not have a ensure an organisational and documented and approved organisational staffing structure was and staffing structure. developed and implemented.
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 20 For the 2014 implementation period, the 3.4.3 Medium The management should I None I Continuous IP had spent USD 470,920 against the ensure activities were period budgetofUSD 1,430,199. This implemented as per the represented an absorption rate of 33%. workplan to improve on budget absorption. The implementing units had not engaged 3-4.3 Medium The management should I None I Continuous more with UNDP with regard to implement the measures planning, activity implementation and agreed on with UNDP to sharing of experiences. Thus, the improve involvement of the management had agreed with UNDP for implementing units within the implementing units to appoint Judiciary in the JTSP. coordinators for the Judicial Transformation Support Project (JTSP).
We noted that for the 2015 343 High The management should I None I Immediate implementation period, the management ensure quarterly progress had not submitted to UNDP, the progress reports were submitted to report for the 3 months to 31 March 2015. UNDP within the required timelines.
There was shortage of staff with sufficient I 3.5.3 High The IP should proactively None 6months qualifications and experience to act as engage with the National database administrators within the Treasury to seek additional various comt stations. Also, some of the funds to support recruitment court stations did not have qualified of staff with the appropriate accountants hence accounting functions qualifications and work were performed by clerks. The staffing experience to address the survey carried out in 2014 showed the
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 21 Judiciary lacked adequate staff within the cadres of court clerks, customer care desk staff; court executive officers and within the Internal Audit Department among other cadres. At the time of the assessment, the I 3.5.3 High The management should I None Immediate alignment of the current tools for staff finalise on the alignment of performance reporting, monitoring and the current tools for staff measurement with new framework and performance reporting, its attendant tools spearheaded by DHRA monitoring and measurement was underway and these were set to be with new framework and its launched in June 2015 for attendant tools spearheaded implementation from July 2015. in preparation for their launch in June 2015 for implementation from July 2015.
The management had not finalised on the I 3.6.3 Medium The management should Technical 12months development, testing and implementation ensure that once commenced, assistance on of the Integrated Performance the development of the development Measurement and Accountability System Integrated Performance fromJPIP (IPMAS) to improve on performance Measurement and management within the Judiciary as Accountability System envisaged in the JTF. (IPMAS) was finalized on according to specifications and implementation commenced in earnest to realise the anticipated value for money.
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 22 The process of developing new tools and 3.7.3 High The management should fast I None I Immediate aligning the current data collection and track the finalisation on the reporting tools to the reporting indicators development of the new tools included in the PMMSC report and its as well as the process of accompanying tool had not been finalised aligning the current data on yet these were scheduled for launch in collection and reporting tools June 2015. to the reporting indicators included in the PMMSC report and its accompanying tool so as to beat the timelines for their launch in June 2015.
_------~ ------' --- - pacity for Innovations, modelling and setting and applying programme standards Other than the new court buildings and 3.9.3 Medium The management should I None I 36months the Supreme Court premises, the other progressively seek to make all court stations buildings did not have the court premises access- facilities that were friendly for access and friendly to Persons with use by the Persons with Disabilities Disabilities (PwDs). (PwDs).
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 23 1.8 Our overall assessment Overall risk rating and summary of key recommendations
Tested subject area Total No. of Total No. of applicable Overall risk risk points questions assess111e11t
Financial management 168 124 1 Programme management 49 37 1 Total 217 161 1
We have indicated the overall risk rating in the table below.
1.8.1 Overall risk rating and summary of key recommendations
Overall Rating Summary recommendations
Score .1 - GREEN which represents low risk. The IP has strong capacity to manage the UNDP funds. However, the management of the IP should implement the following key recommendations: • Ensure close legal follow up was made with regard the legal suits to manage the financial exposure that may arise if it lost the cases; • Staffing structure within the Directorates of Accounts and Finance should be developed as part of the design of the overall organizational structure; • Management should in liaison with the National Assembly and National Treasury allocate additional resources towards recruitment of more accounts staff; • The finance and accounts staff should be trained on UN procedures related to cash transfers; • Recruitment for the position of the Director of Finance which had commenced at the time of the assessment in Ap1il 2015 should be finalised and the position filled up; • Ensure an assets' verification exercise was carried out and an assets register prepared capturing details such as the serial numbers, type and model of the assets among other requirements; • Develop a reporting and staffing structure for the Internal Audit Department (IAD); • The administrative reporting framework for IAD to the Director of Finance should be revised to align it with Section 73(4) of the PFM Act and the best practices in the internal audit sector. The management could consider making it possible for the CIA to adminish·atively report directly to the CRJ; • Allocate a separate budget for IAD where the CIA shall be the Budget Holder to enhance operational independence; • Recruit more staff for the IAD; • Develop a comprehensive and separate internal audit manual setting out the standard operating procedures to guide the staff in the performance of the internal audit reviews; • Implement the recommendations contained in the internal audit reports issued by the IAD; • Follow up to ensure the external audit process was finalised and a final re ort issued b r KENAO·
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 24 Overall Rating Summary recommendations • Ensure JCT staff with the specialisations required to operate as effective ICT administrators were recruited and deployed to the various court stations; • Develop a customised internal code of ethics and conduct for the procmement staff within the Judiciary; • As part of an initiative on access to information, the management should share the list of prequalified suppliers on its website; • Ensure the quarterly procurement report for the third qua1ter of financial year 2014/15 was submitted to PPOA; • Ensure the quarterly procurement reports were submitted to PPOA on time; • Fast track the process of transitioning to thee-procurement module in IFMIS in all the court stations; • Ensure adequate procurement staff were recruited and the positions of the Head of DSCM and the Deputy were filled up; • A reporting and staffing structure for the DSCM should be developed and implemented to enhance the performance of duties within the Directorate; • Ensure an organisational and staffing structure was developed for the Judiciaiy and implemented; • Ensure activities were implemented as per the workplan to improve on budget absorption; • Implement the measures agreed on with UNDP to improve involvement of the implementing units within Judiciary in the JTSP; • Ensure quarterly progress reports were submitted to UNDP within the required timelines; • Proactively engage with the National Treasury to seek additional funds to support recruitment of staff with the appropriate qualifications and work experience to address the staffing gaps; • Finalise on the alignment of the current tools for staff pe1formance rep01ting, monitoring and measurement with new framework and its attendant tools spearheaded in preparation for their launch in June 2015 for implementation from July 2015; • Ensure that once commenced, the development of the Integrated Pe1formance Measurement and Accountability System (IPMAS) was finalized on according to specifications and implementation commenced in earnest to realise the anticipated value for money; • Fast track the finalisation on the development of the new tools as well as the process of aligning the cunent data collection and reporting tools to the reporting indicators included in the PMMSC report and its accompanying tool so as to beat the timelines for their launch in June 2015; and • Progressively seek to make all the court premises access-friendly to Persons with Disabilities (PwDs).
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 25
2 Financial Management Assessment
2.1 Implementing Partner
2.1.1 Overview
The Judiciary of the Republic of Kenya was established by the Constitution of the Republic of Kenya. This was through Chapter 10, Article 159 of the Constitution of Kenya (CoK), 2010. At the time of the assessment, it was one of the three arms of the Government of Kenya ( GoK) and thus, it was independent from the Executive and Legislative arms of the GoK.
However, the new constitutive arrangement as per CoK , 2010, was a recent event but the Judiciary has been in existence since the colonial period. It thus had a rich history and experience having performed its mandate from the colonial period to date.
The IP thus exercised judicial authority on all matters within the Republic of Kenya. These included but were not limited to, interpretation oflaws and adjudication of disputes between litigants in relation to legal suits. The Judiciary also offered checks and balances on the Executive and Legislative arms of GoK in the performance of their respective mandates.
Reporting requirements
The IP was subject to payment of income taxes in relation to staff emoluments, national hospital insurance and social security payments. From our assessment, we established that it had complied with these specific requirements. This was facilitated by thee-payment module adopted under the Integrated Financial Management Information System (IFMIS) framework.
The IP was also required to submit annual financial statements to the Auditor General (AG) by 30 September of eve1y financial year. We learnt that these were submitted on time in compliance with the Public Finance Management (PFM) Act and the Public Audits Act.
Governance structures
The governing body of the Judiciary of Kenya was the Judicial Service Commission (JSC) established by Article 171 of the CoK. It was chaired by the Chief Justice ( CJ) of the Republic of Kenya. The other members were:
• One Supreme Comt (SC) judge; • One Court of Appeal judge; • One High Court Judge; • One Magistrate; • The Attorney General (AG) of the Republic of Kenya; • Two Advocates of the High Cou1t; • A nominee by the Public Service Commission (PSC); • A representative of the public; and • Chief Registrar of the Judiciary (CRJ) as Secretary to JSC.
The JSC was required to meet at least once every quarter and any other time as required. Functionally, it was required to promote and facilitate the independence and accountability of the judiciary and the efficient, effective and transparent administration ofjustice.
The day to day management of the IP was the responsibility of the CRJ assisted by the various Registrars and Heads of Directorates (HoDs). These were:
• Registrar of the Supreme Court;
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 27 • Registrar of the Court of Appeal; • Registrar of the High Court; • Registrar Industrial Court; • Registrar of Magistrates Courts; • Directorate of Human Resource and Adminisb·ation (DHRA); • Directorate of Public Affairs and Communication (DPAC); • Directorate of Performance Management (DPM); • Directorate of Information Communications Technology (ICT); • Directorate of Supply Chain Management (DSCM); • Directorate of Accounts (DA) headed by Chief Accounts Controller (CAC); and • Directorate of Finance (DF).
The management team met on a weekly basis to review performance and discuss the operational matters within the IP. Also, these also held quarterly meetings where quarterly performance in financial and programme was analysed and reported on.
At the time of the assessment, the Directorates of Human Resource and Administration, Finance, Information Communication Technology (ICT) and Supply Chain Management were headed by Acting Directors pending replacement of the former occupants. These former Officers had been dismissed by the JSC. From discussion with the management, we established recruitment for these positions had been adve1tised for.
The IP had worked with United Nations Development Programme (UNDP) under the 'Judiciary Transformation Suppo1t Project'. The programme was for the period from 2013 to 2016 and UNDP had committed USD 300,000 to the basket fund of USD 2,615,000.
At the time of the assessment, the IP was a party to various cases filed by current and former staff. These mainly arose from the work carded out by the Judges and Magistrates Vetting Board (JMVB) where it had found some judges and magistrates unsuitable to serve. The IP had engaged competent Advocates to represent it in court in relation to these cases.
2.1.2 Areas ofstrength
• The IP was established by the Constitution of Kenya, 2010 and was independent from the Executive and Legislative arms of the GoK. • The IP had commenced engagement with UND P for implementation of the 'Judiciary Transformation Support Project'. • The IP had complied with the reporting requirements within the required timelines. • The governing body was the Judicial Service Commission (JSC) chaired by the Chief Justice (CJ). The management was separate from the JSC and was ch.aired by the Chief Registrar of the Judiciary (CRJ) who being the Secreta1y to JSC, acted as the link between JSC and the management team. These two bodies had clear roles and responsibilities and performed their individual mandate.
2.1.3 Areas for improvement/weaknesses
• At the time of the assessment, the Directorates of Human Resource and Administration, Information Communication Technology, Finance and Supply Chain Management were headed by acting Directors pending finalization of the recruitment process commenced by JSC. These were members of the management team. • At the time of the assessment, the IP had various court cases mainly relating to suits filed by current and former staff of the Judiciary.
2.1.4 Recommendations
• The management should ensure the recruitment process was finalised on and the vacant positions filled up. • The management should ensure close legal follow up was made with regard the legal suits to manage the financial exposure that may arise if it lost the cases.
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 2.1.5 Management comments
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 29 2.2 Funds.flow
2.2.1 Overview
Receipt and transfer of funds
The IP was a public entity and as such, it operated under the national payment system run by the National Treasury (NT). It received budgetary support from the NT through its exchequer account operated at the Central Bank of Kenya (CBK).
The management confirmed that the funding received from NT was based on the approved budget. Being one of the 3 arms of GoK, it received the financial suppo1t directly from the Consolidated Fund of the GoK run by the National Treasury (NT) at CBK.
The management indicated that whenever required by any financing agreement, the management in liaison with the National Treasury opened a bank account for the relevant programme under implementation. For instance, the Judicial Performance Improvement Project (JPIP) funded by World Bank had a separate bank account where project funds were credited and accessed from.
Management of foreign exchange risk
The IP received the budgetary support from NT in Kenya Shillings and incurred expenditure in the same currency unless where necessitated by circumstances such as procurement of goods and services foreign currencies. The exposure arising from foreign exchange risk was quite minimal at the time of the assessment.
Further, the IP's Finance and Account Directorates were staffed with qualified and experienced staff who had capacity to manage foreign exchange risks.
Collllterpart funding
The IP provided the staff and facilities as agreed on in the financing agreement. The IP had provided staff and facilities for the UNDP and World Bank funded programmes. The development support thus mostly went to finance core programme activities.
2.2.2 Areas ofstrength
• The IP operated an exchequer bank account that facilitated receipt and disbursement of funds from the National Treasury. The IP also opened separate bank accounts whenever required by the donor financing agreements. • The IP had benefitted from the system of disbursements where its budget was a direct charge to the Consolidated Fund of the GoK run by the National Treasury (NT) at CBK. • The IP had minimal exposure to foreign exchange risks. Also, the Finance and Account Directorates were staffed with competent Officers who had capacity to manage foreign exchange risks if any.
2 .2.3 Areas for improvement/weaknesses
• Nonenoted
Micro Assessment for UNDP Implementing Partner_ The Judiciary of the Republic of Kenya PwCKenya 30 2.3 Organisational structure and staffing
2.3.1 Overview
Organisational structure
The Accounting Officer of the IP was the Chief Registrar of the Judiciary to whom the Directors of Finance and . Accounts reported to in relation to financial management. The two Directors had a team of staff who reported to them functionally and administratively.
We noted the IP's staff clearly understood their reporting framework based on the established practice and as defined in their contracts of employment. However, the IP did not have a documented structure in place for the Directorates of Finance and Accounts. As per the Judicial Transformation Framework (JTF), we noted that the development of an organisational structure for the Judiciary was indicated as Pillar No. 2 (Transfonnative Leadership and Professional, Motivated Staff).
The specific objective under this pillar was described as, 'To establish an overall organisational structure that clearly:
a) Delineates judicial from administrative functions; b) Supports the effective devolution of the Judiciary; c) Defines roles, mandates, responsibilities and accountabilities of different organizational units at different levels within the Judiciary; and d) Cascades these roles to individual jobs through job descriptions.
Staff competency and adequacy
From our discussion with the management, we established that the employees within the Judiciary headquarters in Nairobi were well qualified. Their qualifications and work experience were in line with the scheme of service for the Judiciary.
However, there were challenges in relation to the accounts staff within some of the 114 courts station in place at the time of the assessment. Some of these stations did not have qualified accountants and the accounts function was thus undertaken by clerks who had gained experience with time. The court stations initially affected by this were 4 but had reduced to 2 after some Accountants were redeployed from places deemed to have excess staff. The situation was largely attributed to establishment of more court stations without the corresponding recruitment of accounts staff for the new stations.
Additionally, we noted that the management had undertaken a staff establishment survey in 2014. The outcome showed that all the Directorates did not have adequate staff. The management indicated proposals had been made in the submitted estimates for financial year 2015/16 for allocation of funds to facilitate recruitment of additional staff.
The Finance Director was dismissed from employment by JSC and had not been replaced at the time of the assessment. The Directorate of Finance was headed by an acting Finance Director. The management indicated the position was advertised for and awaited finalization of the recruitment to be conducted by JSC.
From our enquiries, we learnt the staff were not familiar with the United Nations procedures related to cash transfers (specifically the HACT framework). The staff requested to be trained on these.
The IP had policies relating to staff training. We noted that the JP sponsored the staff for the Continuous Professional Development (CPD) courses or seminars provided by the Institute of Certified Public Accountants of Kenya (ICPAK) regularly. Further, the IP paid the professional subscriptions for the staff who were members ofICPAK.
The JSC undertook various checks on the staff recruited for the Judiciary. The process was enhanced by the requirements of Chapter six of the Constitution of Kenya, 2010 that governed the integrity of public servants. The new staff were required to provide clearance from the Ethics and Anti-Corruption Commission (EACC),
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenye 31 Higher Education Loans Board (HELB) and the Kenya Revenue Authority (KRA). The requirement for these clearances was meant to ensure the Judiciary only recruited staff with impeccable integrity.
The management enhanced the terms of service for the Judiciary staff. The staff were provided with medical insurance cover. It had thus managed to attract and retain highly qualified employees. We learnt that in 2014, the Judicia1y lost less than 10 staff.
2-3.2 Areas ofstrength
• The staff were taken through training courses and received sponsorships for ICPAK annual subscriptions and the CPD courses. • The IP had very low staff turnover over the years. • The new staff were required to undergo clearance process carried out by the Ethics and Anti-Corruption Commission (EACC), Higher Education Loans Board (HELB) and the Kenya Revenue Authority (KRA). • The staff were guided by a robust internal control framework underpinned in the PFM Act and PFM Regulations gazette through Legal Notice No. 34 dated 20 March 2015.
2.3-3 Areas for improvement/weaknesses
• At the time of the assessment, the IP did not have a staffing structure within the Directorates of Accounts and Finance. The staff thus relied on the established practice to determine their reporting framework. • Some of the court stations did not have qualified Accountants and the accounts function was thus unde1taken by clerks who had gained experience over time and some who had also studied accounts but were yet to be re-designated as Accountants. • The staff were not familiar with the United Nations procedures related to cash transfers (specifically the HACT framework). • The Finance Director was dismissed from employment by JSC and had not been replaced at the time of the assessment. The Directorate of Finance was headed by an acting Finance Director.
2.3.4 Recommendations
• The staffing structures within the Directorates of Accounts and Finance should be developed as part of the design of the overall organizational structure. • The management should allocate additional resources towards recruibnent of more accounts staff. • The finance staff should be trained on UN procedures related to cash transfers. • The recruitment for the position of the Director of Finance which had commenced at the time of the assessment in April should be finalised on and the position filled up.
2.3.5 Management comments
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 32 2.4 Accounting policies and procedures
2.4.1 Overview
Accounting system
The Judiciary used the Integrated Financial Management Information System (IFMIS) which was the accounting system for the Government of Kenya (GoK). It was used to record financial transactions emanating from the budgeta1y support received from the National Treasury. The system had capacity for allocation of expenditure using different parameters such as the source of funds, category of expenditure, program it related to and the responsible unit among others.
The system had capacity to capture and report on the donor funded projects whose funding was channelled through the National Treasmy and incorporated into the IP's approved estimates.
At the time of the assessment, we noted the management had transitioned to the E-Payment system established by the National Treasury. This was inter-phased directly with IFMIS and was meant to make all payments through an online system run over the platform provided by CBK.
IFMIS had a robust chart of accounts tailored to the nature of GoK expenditure categories. It was designed in such a way that enabled proper allocation of expenditure to the appropriate costs centres in line with the approved estimates.
The IP had an elaborate filing system for the finance and accounts records. These were maintained in an office accessed only by authorized users.
The IP was guided by the Disposal Act with regards to destruction of records which mostly related to receipt books used within the court stations. The process was preceded by notices to the relevant officers and bodies. The subject records were verified by the Kenya National Audit Office (KENAO) Officers and final approval given by the CRJ for the destruction to take place.
Segregation of duties and payments
The IP had controls in place at different levels of preparation and authorization. For instance, the requisition for purchase of goods and services were raised by the user departments and approved by the heads of the respective Directorates. The process of preparing and approval of the payment vouchers was undertaken by different individuals.
The expenditure processing process commenced when a requisition was raised by a user and approved by the respective Head of Directorate (HoD). The HoDs were the authorized as the budget holders for their Directorates. The requisition was then forwarded to the Directorate of Finance (DoF) to check on availability of funds and commitment of funds. The commitment process was pe1fonned in IFMIS.
Where it concerned procurement, the process was undertaken and upon receipt and acceptance of the goods or service, the purchase orders, invoice, delivery notes or S13 forms were forwarded to the DoF and the Directorate of Accounting (DoA) for processing of payment.
Using IFMIS, the transaction was taken through examination, invoicing, and validation by both the DoF and DoA. These Directorates were run by different staff hence strengthening the segregation of duties. The Chief Accounts Controller (CAC) approved the transaction and final authoiisation was given by the Chief Registrar of the Judicia1y (CRJ).
The Supply Chain Management (SCM) was responsible for ordering using purchase orders and received the goods or verified delivery of service. The SCM submitted the purchase orders, invoices, delivery notes, $13 forms and the inspection and acceptance certificate to the DoF and the Directorate of Accounting (DoA) to process payment for the delivered goods and services. These documents were compared and upon satisfaction all the set procedures were adhered to, the payment process would be commenced.
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 33 Budgeting system
The provision number 12 of the Second Schedule to the Public Finance Management (PFM) Act, 2012 stated that, "the implementation of programme budgets shall commence in 2013/14 financial year for the national government and in the 2014/15 financial year for the county governments constituted under Chapter eleven of the Constitution" This laid down the timeframe for implementation of program based budgets in government. It required inclusion of the specific activities that shall be carried out by a government entity in each financial year. The annual budget of the IP showed the planned for activities and the proposed expenditure to implement them.
The budgeting process was spearheaded by the DoF and commenced after the receipt of the circular from the National Treasury. The circular proved the annual budgeting framework for all GoK entities. The DoF sent out the circular to all court stations and Directorates requiring them to develop annual workplans and budget estimates. The development was guided by the limit established for different sectors during the sector meetings conducted by the National Treasmy.
Upon development of these, they were submitted to the DoF for review, consolidation and submission for consideration to management team headed by the CRJ. At this point, diverse consultations were undertaken to ensure the reviewed draft estimates reflected the views of all the units. Once approved by the management team, these were subjected to public participation where the views of the public were used to further revise the budget.
The revised estimates were then submitted to the JSC for review and authorization. Subsequent to this, the estimates were submitted to the National Assembly. At the time of the assessment, we noted that the budget estimates for FY 2015/16 had already been submitted to the National Treasury.
The management team headed by CRJ carried out regular analysis of the utilization of funds by the IP. In addition, as per the PFM Act, the Ministry submitted expenditure reports to the National Treasury and the Controller of Budget (CoB) eve1y quarter. These reports showed the expenditure up to the relevant date against the budget to that point.
Section 43 (2) of the PFM Act allowed the accounting officer, Principal Secretary, to reallocate budgeta1y provision to or from a program or sub-vote provided it does not exceed ten percent of the approved estimate for the concerned program or sub-vote. Any variation above 10% was required to be submitted to the National Assembly through the National Treasury in form of a supplementary budget.
We inspected the payment vouchers and the supporting documents and noted these were stamped as paid and allocated to the correct budget codes in the relevant ledgers. In addition, there were various stamps where one had the 'paid' and were used by each level of review to signify the performance of each of the IFMIS processes.
The payroll was prepared by the staff within Directorate Human Resource and Administration (DHRA). It was reviewed and approved by the HoD of DHRA and submitted to DoF and DoA for processing through IFMIS. There were thus adequate controls over the payroll processing and approval for payment.
Policies and procedures
The IP used accrual basis of accounting under the International Public Sector Accounting Standards (IPSAS). This approach was based on the guidelines on financial accounting and reporting issued by the National Treasmy.
The internal control framework in the public financial sector in Kenya was governed by the Public Finance Management (PFM) Act. The PFM Act was enacted after promulgation of the Constitution of Kenya, 2010 hence the Government Financial Management Regulations (GFMR) that existed until then were repealed. The new PFM Regulations were gazetted through Legal Notice No. 34 dated 20 March 2015.
The guidelines on the conflict of interest and related party transactions were contained in the various laws and regulations in Kenya. For instance, the Public Procurement and Disposal (PPD) Act made it an offence to fail to disclose an instance of conflict of interest in a matter where the affected officer was participating in. Such an officer was required to refrain from participating in the decision making in relation to the affected matter. Micro Assessment for UNDP Implementing Partner. The Judiciery of the Republic of Kenya PwCKenya 34 Further, the Public Officers Ethics Act provided for the expected standard of conduct required for public officers. The staff were also guided by the Code of Ethics of the Judiciary issued by the Judicial Service Commission (JSC). It provided the expected standard of behaviour and conduct of judiciary staff.
Cash and bank
At the headquarters, the payment process at the IP was petformed through an e-payment system. The final payment instructions were issued by through the system by at least two authorized signatories from both DoF and DoA. The auth01ized bank signatories were:
• Director of Finance (DoF) and the Deputy DOF; • Chief Accounts Controller (CAC) and Deputy CAC; and • The Chief Registrar of the Judiciary (CRJ).
The bank reconciliation statements were prepared by a Senior Accountant within DoA on a monthly basis. These were reviewed by the Deputy Chief Accounts Controller (DCAC). The final approval was given by the CAC.
The IP did not operate using cheques as it had adopted internet banking system. For petty cash, each Directorate had a float that was operated on a reimbursement basis. The cash was kept in safes. The reimbursement was authorized by the CRJ upon satisfaction the previous petty cash was accounted for. The staff advances for duties outside of their duty stations were processed through the individual staff bank accounts.
Assets management
The Directorate of Supply Chain Management (SCM) was in charge of the management of assets. However, we noted that there were no comprehensive records maintained detailing all the assets of the Judiciary. Consequently, the assets were not tagged.
For the UNDP funded programme, we established that a comprehensive assets register was maintained.
The management indicated that the JPIP programme had run an advert for procurement of asset verification and documentation services. We also noted that Committee of the Judiciary had m1dertaken a pilot verification process targeting High Comt stations.
We noted access to the IP's premises was restricted and identification documents were required to gain access. In addition, the offices where assets were kept were under lock when not in use.
Arrangement with other offices
Each court station had a workplan and a budget. The funds were disbursed to the court stations the on a quarterly basis to their respective bank accounts. They were then issued with Authority to Incur Expenditure (AIE) appointing the budget or AIE holders. These were controlled by the requirement that previous quarterly disbursement had to be accounted for before additional funds were sent for the subsequent qua1ter.
Other matters
The JSC was in charge of governance issues for the Judiciary. As such it handled all matters relating to negative publicity in conjunction with the CJ, CRJ and the Directorate of Public Affairs and Communication (DPAC). This approach was meant to ensure only authorised officers relayed information to the general public and the other relevant stakeholders.
The CJ had set up the Office of the Ombudsman of the Judiciary (OtOJ) and the office holder reported to the CJ. The Ombudsman jurisdiction entailed receiving complaints by the staff of the Judiciary and also the general public. The Office had a dedicated short messaging service (SMS), a dedicated channel on the IP's website, telephone number, email and postal address through which complaints could be submitted to OtOJ.
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 35 Further, the IP was a public entity and as such, it was subject to the Public Officers Ethics Act and all the anti corruption related laws. Thus, the staff were required to comply with the provisions of these laws. The staff could report instances of fraud, waste or misuse of resources through the mechanisms set up by these laws.
There were anti-corruption drop boxes and suggestion boxes within the IP's premises through which instances of fraud, waste or misuse of resources could be reported.
2.4.2 Areas ofstrength
• The IP used an automated accounting system, IFMIS, which was hosted by the NT for all GoK entities. In addition, the IP processed the payments using thee-Payment system which was an online payment mechanism. • There was an accounting system that had a robust chart of accounts tailored to the nature of GoK expenditure categories. • The accounting and supporting documents were maintained in a defined system that allowed access to authorized users. The destruction process was verified by the Kenya National Audit Office (KENAO) Officers and final approval given by the CRJ. • The functions of authorization, recording and posting of transactions were carried out by different officers within the Directorate of Finance (DoF) and Directorate of Accounts (DoA). • The IP had adequate segregation of duties in the ordering, receiving and payment for the procured goods and services. • The bank reconciliations were prepared by individuals other than those who made or approved payments. We noted the bank reconciliations statements for the bank accounts were up to date. • The budgeting methodology complied with the PFM Act that required preparation of programme based budgets. Further, the budget showed both the physical and financial targets. • The management undertook regular comparison and reviews of the budget utilization to assess the status of its implementation and progress in achieving the set targets. • The IP had complied with the PFM Act with regard to approval of significant variations from budget. • The management had in every financial year prepared the budget estimates within the required timeline. In addition, the budgeting process was robust and involved public hearings to consider the views of the court users. • The functions of authorization, recording and posting of transactions were carried out by different officers within the Directorate of Finance (DoF) and Directorate of Accounts (DoA). • The payment vouchers and their supporting documents were stamped 'paid', dated, reviewed and approved, and posted to the appropriate items lines within the sub-votes. • The IP used the GoK per-diem guidelines when giving allowances to staff for field activities outside of their duty stations. • There IP was governed by robust internal control framework underpinned in the PFM Act and the new PFM Regulations gazetted through Legal Notice No. 34 dated 20 March 2015. • The IP was governed by the various laws, regulations and guidelines that provided guidelines on the management of conflict of interest by judiciary staff and other expected standard of behaviour and conduct for public officials. • There were defined signatories to the bank accounts and an operational mandate established. • The IP had adopted an internet banking system that minimized use of cash payments for items such as staff advances for field work out of the duty stations. • The IP had a system to protect the assets from unauthorized removal from the premises. Additionally, a comprehensive assets register was maintained for the UNDP funded programme. • The management had established a procedure that required surrender of previous quarter funds before disbmsement of additional funds to the court stations. • The management had set up structure through which suspected fraud, waste or misuse of resources or property could be reported and addressed.
2 .4.3 Areas for improvement/weaknesses
• There were no comprehensive records showing all the assets belonging to the Judiciary. In addition, the management did not cany out verification of assets.
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 2.4.4 Recommendations
• The management should ensure an assets' verification exercise was carried out and an assets register prepared capturing details such as the serial numbers, type and model of the assets among other requirements.
2.4.5 Management comments
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 37 2.5 InternalAudit
2.5.1 Overview
The IP had an Internal Audit Department (IAD) headed by the Chief Internal Auditor (CIA) of the Judiciary. Before August 2013, the Judiciary did not have an IAD of its own. Instead, it relied on the Internal Auditors from the Internal Auditor General, an Office within the National Treasury.
However, this changed in August 2013, when the Judiciary established an in-house IAD and commenced recruitment of staff.
At the time of the assessment, we established that administratively, the CIA reported to the Director of the Directorate of Finance (DDoF). Functionally, the CIA reported to the Internal Audit Committee (IAC) of the Judicial Service Commission (JSC). The internal audit reports were also shared with the CRJ, the management of the entity subject to the audit and the relevant stakeholders within the IP.
We also noted that the IAD did not have an operational budget in financial year 2013/14 and 2014/15. It thus relied on the financial support from the DoF. The management of the IAD indicated it had received adequate support from the DDoF.
The IP recruited the IAD staff competitively and they possessed the required qualifications and were sufficiently experienced. The CIA and the 2 Senior Internal Auditors possessed masters' degrees and had the Certified Public Accountant of Kenya (CPA-K) qualifications.
The department had a total of 8 staff. However, the management indicated the department required 36 additional staff to function optimally as per the outcome of the staffing survey carried out for three months from June 2014.
In terms of the physical resources, we established the staff did not have laptops, audit software's or documentation platform and the relevant audit tools. They largely relied on their personal computers to perform their duties hence exposing their work to potentially unauthorized access. Additionally, the IAD did not have adequate office space.
The !AD had adopted a risk based approach in the pe1fonnance of internal audit reviews. It has performed a risk assessment over the operational processes of the Judiciary. The identified risks were ranked and informed the preparation of an annual workplan prioritizing the processes identified as risky. The workplan for financial year 2014/15 had been approved by the Internal Audit Committee (IAC). The department had developed the IAD service charter and the IAC had approved it.
However, the IAD did not have a separate and comprehensive internal audit manual in place at the time of the assessment. Instead, the set up was described in the Finance Manual. Ideally, the manual was required to specify the standard audit procedures within the Judicia1y to guide the staff. The harmonized procedures would essentially promote quality of the internal audit reviews.
There were adequate internal controls and the IAD carried out regular reviews to check these implemented effectively. We thus discussed with the management some of the areas where weaknesses were noted. We have listed some of the recurring audit observations below.
• The cash meant for bails and fines was manually receipted which exposed it to abuse. The management indicated where this was noted, the culpable staff were subjected to disciplinary processes and the appropriate sanctions meted out. • There was no approved and documented organisational structure for the Judiciary with regard to the service and functional department. • The IP did not have an assets register that could be used to track and monitor the assets belonging to the Judiciary. This meant there were no harmonized processes for recording of assets upon purchase, issue to user and surrender of the same upon transfer or disengagement from the Judiciary.
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 2.5.2 Areas ofstrength
• The IP had established an Intern.al Audit Department. • The IP had an Internal Audit Committee (IAC) whose membership was drawn from the JSC Commissioners. Functionally, the IAD reported to IAC. • The IAD staff were recruited competitively. • The IAD staff were qualified and possessed the appropiiate mix of experience. • The IAD had adopted a risk based audit approach in planning and execution of internal audit reviews. The adoption was facilitated by performance a risk assessment over the operational processes of the Judiciary. • The IAD had developed a workplan for 2014/15 and the service charter for operational guidance. • The IAD carried out regular internal audit reviews and issued repo1ts with the appropriate recommendations.
2,5,3 Areasfor improvement/weaknesses
• The !AD did not have an approved structure clearly defining the reporting the administrative and functional reporting framework as well as the internal reporting processes within the department. • Administratively, the CIA reported to the Director of the Directorate of Finance (DDoF) who ideally headed an internal entity subject to internal audit reviews. This was not in compliance with section 73 (4) of the PFM Act which required internal audits to be conducted in accordance with international best practices. • The IAD did not have a separate budget of its own and had to request for financial support from the DDoF. This meant the CIA was not the budget holder for his depa1tment. This had the potential to affect the operational independence of the IAD. • The department had only 8 staff compared to the staff establishment of 44 staff members required for optimal performance. • At the time of the assessment, the IAD did not have a separate internal audit manual setting out the standard operating procedures to guide the staff in the performance of the internal audit reviews. • The IAD had carried out reviews and issued reports containing various recommendations for implementation by the management.
2,5.4 Rec.ommendations
• The management should develop a repo1ting and staffing structure for the Internal Audit Department (IAD). • The administrative reporting framework for IAD to the Director of Finance should be revised to align it with Section 73(4) of the PFM Act and the best practices in the internal audit sector. The management could consider making it possible for the CIA to administratively report directly to the CRJ. • The management should allocate a separate budget for !AD where the CIA shall be the Budget Holder to enhance operational independence. • The management should recruit more staff for the IAD. • The management should develop a comprehensive and separate internal audit manual setting out the standard operating procedures to guide the staff in the performance of the internal audit reviews. • The management should implement the recommendations contained in the internal audit reports issued by theIAD.
2.5.5 Management comments
Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 39 2.6 External audit
2 .6.1 Overview
The financial statements were audited by the Kenya National Audit Office (KENAO) headed Auditor General as required by the Public Audits Act, 2003 and the Constitution of Kenya. We noted the audit was carried out for each financial year.
There were no significant delays in the audits for the past 3 years. At the time of the assessment, the audit for FY ended 30 June 2014 had been finalized and a draft report shared for comments. However, the external auditor had not complied with the constitutional requirement that the audit report should be submitted to the National Assembly by 31 March of every year.
The external auditor had qualified the opinion over the financial statements for the financial year 2013/14. The qualification was based on the lack of an assets register for the judiciary leading to non-compliance with some of the International Public Sector Accounting Standards (IPSAS) reporting requirements.
We also noted an audit was carried out by Ernest & Young (E&Y) on the financial statements of the UNDP funded programme. We inspected the report and noted an unqualified opinion issued and no internal control or operational weaknesses were noted.
The timing of the annual audit was regulated by the Public Audit Act and the Constitution of Kenya, 2010. The IP was obligated to submit the financial statements to KENAO by 30 September of every financial year. On its part, I 2.6.2 Areas ofstrength • The financial statements were audited by the Auditor General as required by the law. • There were no delays in audits of the IP's financial statements, and the financial statements were issued within a reasonable time. • The audit of the UNDP funded programme resulted in an unqualified opinion and no internal control or operational weaknesses were noted. • The external auditor, KENAO canied out an audit for all financial operations of the IP and as such donor funds were subjected to an annual external audit process as applicable. 2.6-3 Areas for improvement/weaknesses • The extemal auditor had not complied with the constitutional requirement that the audit report should be submitted to the National Assembly by 31 March of every year. • The audit opinion for the financial statements was qualified for financial year 2013/14 due to lack of assets registers and other records with regard to the assets. 2.6.4 Recommendations • The management should follow up to ensure the audit process was finalised on and a report issued. • The management should implement the audit issues resulting in qualification of the financial statements. 2.6.5 Management comments Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenye 40 2.7 Financial reporting and monitoring 2.7.1 Overview The IP had prepared financial statement on its operations for the last 3 years. The financial statements were prepared in accordance with the standard formats provided by the National Treasury. These were submitted to the Auditor General and the National Treasury by 30 September of every financial year. The financial and programme progress reports were prepared manually outside of the accounting system. Despite the reporting system lacking capacity to link the financial information with the work plan's physical progress, the accounting system was set up on the basis of the programme budget lines which made the manual linking up possible. The PFM Act specified the reports required to be prepared by public entities on a quarterly basis and annually. These were the income and expenditure or appropriation accounts required for quarterly and annual reporting to the National Treasury, CoB and KENAO. The overall responsibility over the financial reporting process rested on the Chief Registrar of the Judiciary ( CRJ) who was the Accounting Officer of the IP. In this process, the CRJ was closely assisted by the Chief Accounts Controller (CAC) of the Directorate of Accounts (DoA). The IP prepared quarterly expenditure reports and these were submitted to the NT and CoB. These showed an analysis of the expenditure against the budget. Additionally, the IFMIS system processes ensured the management could generate reports on budget against expenditure analysis at any point in time. 2.7.2 Areas ofstrength • The financial statements of the IP were prepared in accordance with the guidelines provided by the National Treasury and submitted to the Auditor General and the National Treasury by 30 September of eve1y financial year. • The PFM Act had specified the financial management reporting responsibilities. 2.7-3 Areas for improvement/weaknesses • None Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 41 2.8 Information management systems 2.8.1 Overview The IP used IFMIS which was an automated accounting system. Access to this system was restricted. A person intending to get access to it had to make a request through the CAC to the National Treasury (IFMIS Secretariat) for grant of user rights within IFMIS. IFMIS was an online system where transactions were posted and uploaded onto the server in real time. It was hosted by the National Treasmy. The system ran on the Government Common Core Network (GCCN) which was a partnership between Telkom Kenya and the National Treasury. It was backed up continuously using the national redundancy backbone supported by NT. The Finance, Accounts, and Supply Chain staff were trained on how to use the system. The training was organised by the IFMIS Secretariat, an office within the National Treasury. On ICT staff, the management had determined that to satisti; the requirements of the new ICT policy for the Judiciary, more specialized staff with higher qualifications who could act as database administrators were required. Confidentiality of data There was proper management of access to IFMIS that required use of passwords and usernames allocated by the National Treasury. The computers used to access IFMIS were not used for any other purpose and all other internet connections functionalities were disabled. Access to the computers at the IP required password and user names. There were also guidelines on the frequency of change of passwords and the specified minimum length of passwords. There were also defined basic requirements in relation to characters used to set the passwords. Integrity ofICT systems The computer systems were protected against harmful malware by Kaspersky antivirus. There was also restiicted access to the server room. Availability/recoverability of data IFMIS was an online system where transactions were posted and uploaded onto the server in real time. It was hosted by the National Treasmy. The system was run on the Government Common Core Network (GCCN) which was a partnership between Telkom Kenya and the National Treasury. It was backed up continuously using the national redundancy backbone supported by the NT. For data contained in other systems, the IP did not have a comprehensive policy on how it was to be maintained and backed up. 2 .8.2 Areas ofstrength • The IP used IFMIS which was an automated accounting system to record the financial transactions. Access to this system was restricted and was granted after a request was made to NT through the set procedure for grant of access and login credentials. Further, the data processed through IFMIS was updated in real time and continuously backed up. • IFMIS was an online system accessed only by authorised users and was continuously backed up. • There was use of an anti-virus system to prevent unauthorised intrusion into the IP's ICT network. • There were set requirements for regular change of passwords, length of passwords and the characters to be used. 2.8-3 Areasfor improvement/weaknesses • The IP did not have adequate ICT staff with the specialisations required to operate as effective ICT administrators. Micro Ass9ssment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 42 2.8.4 Recommendation • The management should ensure ICT staff with the specialisations required to operate as effective ICT administrators were recruited and deployed to the various court stations. 2.8.5 Management comments Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 43 2.9 Procurement management 2.9.1 Overview Staffmg The management had set academic and work expeiience requirements for staff joining the Judiciary and for career progression. These were adhered to hence the staff employed by the IP had the appropriate qualifications and work expeiience. On adequacy of staff, we noted the position of the Head of Directorate of Supply Chain Management (DSCM) was held by a Principal Procurement Officer in an acting capacity and there was no substantive Deputy Director of DSCM. Further, at the time of the assessment the staff within DSCM were deemed insufficient to the expansion activities undertaken by the management. From discussion with the management, we learnt that the DSCM was headed by an acting Director pending replacement of the former occupant. The former Officer had been dismissed by the JSC. This demonstrated the commitment of the management to ensure there was transparency and integrity within all the operational and functional processes of the Judicia1y. Policies and procedures The IP was a public entity hence obligated to comply with the provisions of Public Procurement and Disposal (PPD) Act and PPD Regulations. However, there was a provision that where the procedural requirements specified in these laws were on conflict with those of the donor, the donor procedures prevailed. The IP was a public entity hence obligated to comply with the provisions of PPD Act and PPD Regulations. These laws described the required policies and procedures, procurement methods, thresholds, required procurement committees. The Public Procurement Oversight Authority (PPOA) had developed a code of ethics for all procurement officers within the public procuring entities. The code was posted on the website of the PPOA and was applicable at the IP. It governed the conduct of these officers in undertaking their mandate. However, the IP did not have a specific code of conduct and ethics with regards to procurement activities. The management informed us the terms of reference were developed for preparation of this code and the process would be carried out by an external consultant. This initiative was supported by the JPIP programme. The CJ had set up the Office of the Ombudsman of the Judiciary (OtOJ) and the office holder reported to the CJ. The Ombudsman jurisdiction entailed receiving complaints by the staff of the Judiciary and also the general public. The Office had a dedicated short messaging service (SMS), a dedicated channel on the IP's website, telephone number, email and postal address through which complaints could be submitted to OtOJ. Further, the IP was a public entity and as such, it was subject to the Public Officers Ethics Act and all the anti corruption related laws. Thus, the staff were required to comply with the provisions of these laws. The staff could report instances of fraud, waste or misuse of resources through the mechanisms set up by these laws. There were also anti-conuption drop boxes and suggestion boxes within the IP's premises through which instances of fraud, waste or misuse of resources could be reported. The Tender Committee was mandated to consider for approval all the requests for single sourcing. This was as per the provisions of PPD Act and PPD Regulations. The use of single sourcing method was limited to specific circumstances as specified by section 74 of the PPD Act. The method was thus used only when: • There was only one supplier of certain goods and services; • There was no reasonable alternative or substitute of the required goods or services; and • An urgent need arose which made use other procmement methods impractical and the need could not have been foreseen upon exercise of reasonable eff011. Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 44 The management explained this method was rare and whenever it was applied, justification had to be provided to the Tender Committee beforehand for approval. The IP was obligated by the procurement laws to prequalify suppliers for goods, works and services. The prequalification notices were sent out through newspaper adverts and website postings that specified the minimum requirements. We noted the IP had communicated the results of the prequalification process to all the suppliers and maintained a list of prequalified suppliers for 2 years in compliance with the law. However, the list was not posted on the website of the IP. Responsibility over procurement The IP had a Procurement Committee in each of the procuring entities. These adjudicated procurements up to Kshs 500,000. The procurements above this threshold were adjudicated on by the Tender Committee (TC). The TC was made up of the Heads of Directorates and Registrars of the Court of Appeal, High Court and the subordinate courts. However, the Directorate of Peiformance Management (DPM) was not represented in the TC as one of its tasks was assessing the performance of TC. The procurement thresholds were specified by the procurement laws which also indicated the body responsible for procurement for each procurement threshold. For instance, the IP was allowed to single source for goods and services whose value was less than USD 327 (Kshs 30,000/92). Procurements above USD 327 and USD 5,435 used the 3 quotations approach and above this, open tendering or restricted tendering was undertaken by the Tender Committee. The contracts entered into by the IP were executed by the Chief Registrar of the Judicia1y (CRJ) who was the accounting officer of the Judicia1y. This was a requirement contained in the PPD Act. We noted this requirement was adhered to. The IP established Tender Opening Committee (TOC) on a need basis. The members were appointed by CRJ from the user departments and technical staff as was applicable. The bids were opened in the presence of the suppliers. The opened bids were evaluated by a Technical Evaluation Committee appointed by the CRJ. Procurement activities The Public Procurement Oversight Authority (PPOA) carried out market surveys for common goods. The results of these surveys were posted on PPOA's website and all public entities were obligated to use these results to guide procurement activities. In addition to the guidance from the PPOA on prices, the management carried out surveys on a need basis. The process was mostly carried out dming the specific procurement processes to assess the reasonableness of the prices quoted by suppliers. From discussions with the management and inspection of records, we noted that tenders were awarded to the lowest evaluated and technically competent bidder. This was necessary as at times the lowest bidder did not comply with the specifications. The management was required to submit quarterly reports to PPOA for all procurements above Kshs 5 million and all single sourced purchases above Kshs 30,000. The DSCM was internally required to submit monthly reports to DPM. These were submitted through emails and were prepared using the templates provided by DPM. The management indicated it was in the process of development of a database for performance management within the Judiciary. The DSCM also submitted quarterly reports to the CRJ on procurement activities within the quarter reported on. We noted the management had not submitted the quarterly report for the third quarter of financial year 2014/15 to PPOA. The delay was attributed to shortage of staff within the DSCM. Procurement system Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 45 The IP was transitioning to IFMIS which had an e-procurement module. The move was aimed at making the public procurement systems and processes more open and transparent. On full implementation, the module shall facilitate the process from procurement to payment. The suppliers shall for instance, receive purchase orders generated from the system and will be sent to the supplier p011al within IFMIS automatically. We noted that e-procuremenl had been adopted at the IP's headquarters at the Supreme Court premises. However, the adoption had not been commenced at Milimani Law Courts and the rest of the court stations in the countly. The slow adoption was largely attributed to staff shortage within the DSCM. The IFMIS e-procurement module had capacity to run reports on quotations, contracts and purchase orders generated from the system. Upon full transition, the IP will have capacity to generate different kind of reports among others which shall further improve the procurement management and reporting processes. 2.9.2 Areas ofstrength • The IP benefitted from the national laws that were flexible enough to incorporate donor procurement practices as available options that could be used for procurements financed using donor funds. • The IP relied on the ethical framework enshrined in the code of ethics prepared by PPOA for the procurement officers of the public entities. • The management had set up mechanisms such as the Office of the Ombudsman of the Judiciary (OtOJ), drop boxes and suggestion boxes to report on fraud and corruption within the Judiciary. • The management ensured the procurement methods used at the IP complied with the provisions of the procurement laws and regulations. Any proposals for deviations were approved prior to occurrence of the procurement event. • The IP had established committees charged with ensuring procurement activities were adjudicated on as set out by the procurement laws and regulations. • The IP made use of the standard bidding documents and contracts provided by the PPOA. • The IP maintained a list of prequalified suppliers in compliance with the law. • The IP had a robust system governing the tender opening processes and there was wide representation in theTOC. • The staff employed by the IP had the appropriate qualifications and work experience. 2.9-3 Areas/or improvement/weaknesses • The IP did not have a specific code of conduct and ethics with regards to procurement activities. • The management had not posted the final list of prequalified suppliers on its website for access by the public. • We noted the management had not submitted the quarterly report for the third quarter of financial year 2014/15 to PPOA. • The IP had not fully transitioned to IFMIS's e-procurement and the procurement processes were undertaken outside the system at the Milimani Law Courts and the rest of the comt stations in the country. • The IP did not have adequate staff and we noted the position of the Head of DSCM was held by a Principal Procurement Officer in an acting capacity and there was no substantive Deputy Director of DSCM. • The Judiciary did not have a documented and approved organization structure. Thus, the reporting framework within DSCM was based on the established practice. 2.9.4 Recommendation • The management should develop a customised internal code of ethics and conduct for the procurement staff within the Judicia1y. • As part of an initiative on access to information, the management should share the list of prequalified suppliers on its website. • The management should ensme the quarterly procurement report for the third quarter of financial year 2014/15 is submitted to PPOA. Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya • The management should fast track the process of transitioning to the e-procurement module in IFMIS in all the court stations. • The management should adequate procurement staff were recruited and the position of the Head of DSCM filled up. • A reporting and staffing structure for the DSCM should be developed and implemented to enhance the perlormance of duties within the Directorate. 2.9+5 Management comments Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 47 3 Progra1n111e Manage111ent Assessment 3.1 Partner identification 3.1.1 Overview The Judiciary of the Republic of Kenya was established by the Constitution of Kenya (CoK), 2010 through Chapter 10, Article 159. It was one of the three arms of the Government of Kenya (GoK) and thus, it was independent from the Executive and Legislative arms of the GoK. However, the new constitutive arrangement under the CoK was a recent event but the Judiciary has been in existence since the colonial pe1iod. It thus had a rich hist01y and experience having had perlormed its mandate from the colonial period to date. The IP thus exercised judicial authority on all matters within the Republic of Kenya. These included but were not limited to, interpretation oflaws and adjudication of disputes between litigants in relation to legal suits. The Judiciary also offered checks and balances on the Executive and Legislative arms of GoK in the perlormance of their respective mandates. Micro Assessment for UNDP Implementing Partner. The Judicisry of the Republic ofKenya PwCKenya 49 3.2 Partner overview, technical capabilities and geographic reach 3.2.1 Overview Guiding principles, clarity of purpose and scope The vision of the IP was to be an independent guardian of justice in Kenya. Its mission was to deliver justice fairly, impartially and expeditiously, promote equal access to justice, and advance local jurisprudence by upholding the rule oflaw. The vision and the mission were aimed at guiding the Judiciary in the performance of its functions. Further as per the CoK and the Judiciary Transformation Framework (JTF), 2012-2016, the mandate of the Judiciary was to: • Expeditiously administer justice to all irrespective of status; • Administer justice without undue regard to procedural technicalities; • Protect and promote the purpose and principles of the Constitution of Kenya, 2010; and • Promote alternative forms of dispute resolution, including reconciliation, mediation, arbitration and traditional dispute resolution mechanisms. Organizational set up and staffing structure From our discussion with the management, we established the Judiciary did not have an approved and documented organisational and staffing structure in place. The management had undertaken a process to develop the structure but it had not been finalized on and approved at the time of the assessment. Awareness of global standards and commibnents The Judiciary had demonstrated consciousness ofva1ious frameworks in the performance of its mandate. For instance, it was guided by the international treaties and instruments that Kenya was party to as required by Article 2 ( 6) of CoK. The IP also sought to benchmark with judiciaries around the globe. For instance, the management had undertaken learning visits to various countries such United States of America and Australia among others. The lessons learnt were used to improve service delivery. The management had undertaken various initiatives like carrying out an impact evaluation diagnostic survey on delays in conclusion of court cases and established the Office of the Ombudsman of the Judiciary (OtOJ) among others. These initiatives were meant to improve service delivery with the full knowledge that Judiciary was one of the key pillars underpinning the realization of Vision 2030 of the Republic of Kenya. The management had also developed various guidelines and policies that were preceded by internal assessment to determine the strengths and weaknesses. In conjunction with the Ped'ormance Contracting framework on institutional and individual staff performance, the guidelines had helped to continuously streamline administrative and functional processes. In fact, the IP had established the Directorate of Performance Management to monitor and assess the service delivery processes. Application of policies and standards through strategies The management had developed the JTF, 2012-2016 to give impetus towards the achievement of improved service delivery. The JTF identified mechanisms required to improve service. These were recruitment of adequate and qualified staff, increasing the number of court stations in the country and improving the terms of service of the judiciary staff. These measures, among others were under implementation and had started bearing fruit as the public confidence in the Judiciary had improved. Micro Assessm&nt for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 50 3.2.2 Areas ofstrength • The IP had a vision, mission and its mandate was clearly spelt out in the JTF, 2012-2016, and the Constitution of Kenya, 2010. • The management incorporated the current approaches underpinned in various standards and commitments in relating with different stakeholders and in service delivery. • The management had set clear strategic objectives to guide the transformation of the Judiciary. 3.2.3 Areas for improvement/weaknesses • At the time of the assessment in April 2015, the Judiciary did not have a documented and approved organisational and staffing sbucture. 3.2.4 Recommendations • The management should ensure an organisational and staffing structure was developed for the Judiciary and implemented. 3.2.5 Management comments Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 51 3.3 Capabilities for Results Based Planning 3.3.1 Over-view Capability for strategic planning and clear articulation of intended results The Judicia1y had developed the Judiciary Transformation Framework (JTF), 2012-2016 through a consultative process that involved all facets of the Judicia1y, namely, judges, magistrates, judicial staff and other stakeholders in the justice sector. It provided the transformation roadmap, the principles and goals to be pursued and the desired transformation mechanisms. The JTF was premised on four key pillars and these were: • People focused delivery of service; • Transformative leadership, organization culture and professional, motivated staff; • Adequate financial resources and physical infrastructure; and • Harnessing technology as an enabler for justice. The 4 pillars were further broken down into 10 key result areas (KRA) and an implementation plan and a results•based mahix developed. For each KRA, the management had developed the strategic objectives, specific strategies, action to be taken and the indicators of success. Planning process/project identification The planning processes at the Judiciary were based on the JTF. All the activities undertaken wei-e aimed at implementing the pillars, KRA and the strategic objectives set out in the JTF. Specifically, the JTF determined the actions to be taken to transform the Judiciary. Thus, at the planning and review processes, all the workplans were interrogated to assess how they contributed to the implementation of the JTF. We noted the approach used by the management had borne fruits and several development partners had financed some of the action points identified in the JTF. Various development partners such as the World Bank, GIZ and UNDP among others had extended financial support for some of the identified implementation action points. Management, monitoring and quality assurance process The management committee chaired by the Chief Registrar of the Judicia1y (CRJ) met eve1y Wednesday. In these meetings, the team reviewed the progress of the different directorates and the comts. The processes undertaken by the management team were supplemented by the continuous monitoring and evaluation by the Directorate of Performance Management (DPM). The DPM was to be guided by the guidelines contained in the report titled; 'Institutionalising Performance Management and Measurement in the Judiciary' dated April 2015. These were developed by the Performance Management and Measurement Steeling Committee (PMMSC) chaired by Justice Daniel Musinga of the Court of Appeal. It was appointed by the Chief Justice on 11 January 2013. Evidence based results planning - baseline data for the issues being addressed The Judiciary had extensive experience in undertaking baseline smveys. The management liaised with the development partners to undertake these surveys and the results were used to design remedial measures on the identified issues. Examples of these were: • The management with support from GIZ undertook surveys to determine the actual status of the Judicia1y and the outcome informed the development of the JTF. • The PMMSC in executing its mandate reviewed the Judiciary's evaluation mechanisms and past reports making reference to performance measurement, undertook desk research and study tours, and consulted judges, judicial officers and staff. Based on the outcome of these activities, the Committee recommended adoption of a performance based management and measurement framework. It then recommended Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenys PwCKenya 52 guidelines for the performance based management and measurement system within the Judiciary. These were adopted by the JSC and published for issue. • The DPM was supported by World Bank through the Judicial Pe1formance Improvement Project (JPIP) to undertake an assignment titled, 'Court Case Delays: Impact Evaluation Diagnostic Study Report'. The overall objective of the study was to examine causes of case delay in the case processing chain. The process was finalized on and the report adopted and published in 2014. These surveys demonstrated the relevant experience the Judiciary had in undertaking surveys and the outcomes were used to inform the design and redesign of both administrative and functional operational processes. 3.3.2 Areas ofstrength • The management had developed the JTF premised on four pillars, 10 key result areas, implementation plan and the results-based matrix. • The planning processes were guided by the JTF that was developed after a holistic analysis of the status of the Judiciary. The analysis identified the issues that affected the Judiciary and remedial measures were proposed and these laid the basis of the annual workplans. • The management team met regularly to review performance and was assisted by the DPM in this through submission of regular performance management and measurement reports. • The IP had the relevant experience in undertaking surveys and the outcomes were used to inform the design and redesign of both administrative and functional operational processes. 3.3-3 Areas for improvement/weaknesses • None Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya 53 3.4 Project Cooperation Agreements (PCA) / implementation modalities/arrangements 3.4.1 Overview Review of implementation arrangements From discussion with the management and inspection of valious reports and project documents, we noted the IP had engaged with lTNDP to offer technical assistance to the office of the Chief Justice on people focused justice and service delivery and strengthening capacity within the judiciary to deliver on its mandate. The implementation period of the UNDP funded Judiciary Transformation Support Project (.ITSP) was from 2013 to 2016. As per the audited financial statements for 2014, we established the IP spent USD 470,920 against the period budget of USD 1,430,199. This represented an absorption rate 33%. The underutilization in the period covered by the audit was attributed to delay in the full implementation of activities such as: • Documenting the ADR practices countrywide and informing the development/refinement of guideline and/or policy/legislation; • Development ofToRs and engagement of consultant to develop guidelines on children court operations, update the children practice and procedure rules and also the probate and administration rules; and • Recruitment of consultant to offer technical assistance to the Office of the Chief Registrar. The programme also required submission of quarterly progress reports to UNDP. We noted that for the 2015 implementation period, the management had not submitted to UNDP, the progress report for the 3 months to 31 March 2015. Donor continuity and planning cycle The management indicated the Judiciary had established the Judiciary Transformation Development Pa1tners Forum (JT-DPF) chaired by the Chief Justice. The other members were Heads of missions from all development partners, selected NCAJ Members, representatives of the institutions involved in implementation of JTF activities and the Office of the Chief Registrar of the Judiciary (Secretary). The Forum was responsible for sharing information with the development partners at the strategic level on progress of implementation of the JTF with respect to the national change agenda. It was also tasked to address any difficulties in achieving key results in each of the 4 pillars of the .ITF and propose policy level recommendations to resolve the noted challenges. This body was supposed to convene every six months. There was also the Judiciary Transformation Framework Steering Committee (JTF-SC) which was the highest decision making and strategic group for the .ITSP. The Committee was supported by a Secretariat constituted by the Office of the Registrar of the Judiciary and UNDP. It reviewed quarterly progress reports and qua1terly project workplans and other management information presented to it for consideration. At the start, it met twice per month for first six months of the JTSP and transitioned to meeting once per month for the next six months. After one year, the meetings, the regularity of the meetings was defined by the Secretariat based on the progress in the implementation of project activities. We noted evidence the Committee held a meeting on 10 December 2015. It was attended by the Chief Registrar of the Judiciary and the UNDP Deputy Countiy Director of Programmes and their teams. 3.4.2 Areas ofstrength • The Judicia1y had received positive response from the development partners who supported some of the activities identified for implementation in the JTF. • The IP had established forums to engage with the development partners and for the JTSP, there was evidence the .ITF-SC met regularly based on established needs. Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 54 3.4.3 Areas/or improvement /weaknesses • For the 2014 implementation period, the IP had spent USD 470,920 against the period budget of USD 1,430,199. This represented an absorption rate 33%. • The implementing units had not engaged more with UNDP with regard to planning, activity implementation and sharing of experiences. Thus, the management had agreed with UNDP for the implementing units to appoint coordinators for the JTSP project. • We noted that for the 2015 implementation period, the management had not submitted to UNDP, the progress report for the 3 months to 31 March 2015. 3-4-4 Recommendation • The management should ensure activities were implemented as per the workplan to improve on budget absorption. • The management should implement the measures agreed on with UNDP to improve involvement of the implementing units within Judiciacy in the JTSP. • The management should ensure quarterly progress rep01ts were submitted to UNDP within the required timelines. 3.4.s Management comments Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 55 3.5 Human Resources 3,5.1 Overview Qualifications, Skills and competencies of the service and fW1ctional officers The management indicated the academic and work experience requirements were specified in the scheme of service developed with support from UNDP. This ensured that all the staff recruited after commencement of the judicial reforms were well qualified and experienced. However, the management had determined that to satisfy the requirements of the new ICT policy for the Judiciary, more specialized staff with higher qualifications who could act as database administrators wet-e required. There were also challenges where some of the com1 stations did not have qualified accountants. Thus, the account functions in the affected stations were performed by clerks who had operational knowledge in accounting. Staffing levels in relation to the areas of coverage Under the JTF, the IP had identified the need for adequate and competent adminisb·ative staff and judicial officers as one of the 4 pillars. Towards this, the management had sought to enhance the staff numbers over time. For instance, Legal Researchers were recruited in 2012 to assist the Judges with research and other assorted judicial functions. Additional judges and magistrates were also recruited and the process was on-going and 14 more judges appointed by the President in the first week of May 2015. However, the attainment of the optimal staff numbers was impeded by lack of additional financial resources. The achievement of adequate staff was thus implemented gradually. To guide this _process, a survey on staffing at the Judiciary was conducted for 3 months from June 2014 and reported presented to the JSC. At the time of the assessment in April 2015, the report awaited consideration and adoption by the JSC. Some of the challenges noted were: • There was shmtage of staff within the court stations especially at the level of comt clerks, customer care desk staff and comt executive officers. • Some of the new judges did not have secretaries. • Some court stations did not have qualified !CT Officers. • The Directorates were understaffed at the senior management level and the lower cadres. The middle levels were reasonably staff. • The Internal Audit Depa1tment had 8 staff but the staff establishment was 44 staff. The management informed us that it had factored recruitment of more staff in the budget estimates for financial year 2015/16. The request was informed by the outcome of the staffing survey carried out in 2014. Capacity building of the staff The management had developed a training policy for the Judiciary with suppmt from UNDP. At the time of the assessment, the policy awaited approval of the JSC. The management set up a Training Committee for the Judiciary in 2014. It was composed of the CR.J, Heads of Directorates, Comt Registrars; Ombudsman of the Judiciary and the Director of the Judicial Training Institute (JTI). It was charged with spearheading the staff training programmes within the Judiciary. The management carried out a training needs assessment in February 2014. One of the outstanding training needs related to capacity building of the Head of Court Stations (senior most judicial officer in a court station) on management processes and procedures as they were technical staff. Micro Assessment for UNDP lmplem9nting Psrtner. The Judiciary of the Republic of Kenya PwCKenys 56 We established the management had commenced implementing the results of training needs assessment. Using the financial support from JPIP, the relevant cadre staff were taken through supervisory courses, senior management courses and strategic leadership development programme offered by the Kenya School of Government (KSG). Additionally, the court clerks were b:ained on customer care. The training of the judicial officers was mostly carried out in-house by the Judicial Training Institute {JTI). JTI offered tailor made capacity building programmes on a regular basis. Hwnan resources planning and management The recruitment was based on the established staffing needs. Thus, the staffing survey undertaken in 2014 facilitated this process. The recruitment within the Judiciary was the responsibility of the JSC with support from the Directorate of Human Resource and Administration (DHRA). The qualifications and work experience of the judicial officers was provided for in the Constitution, the Magistrate Courts Act and the JSC Act. For the rest of staff of the Judiciary, these were contained in the scheme of service for different cadres. The JSC performed the interviews for all judicial officers with support from the service directorates. It also interviewed the staff of service directorate from grade number 9 and above. For grade 8 and below, it had delegated the role to the senior management team headed by the CRJ. The candidates were expected to present clearance certificates from KRA, EACC and HELB and the management obtained references from the previous employers. With regard to the candidates for the senior management staff and judicial officers, National Intelligence Service was consulted to vet them. The successful candidates were issued with contracts on a permanent and pensionable basis. However, the HoDs contracted for a renewable period of three years. The management enhanced the terms of service for the Judicia1y staff. The staff were provided with medical insurance cover. It had thus managed to atb·act and retain highly qualified employees. We learnt that in 2014, the Judicia1y lost less than 10 staff. There was a Performance Management Committee (PMC) made up of the HoDs and Court Registrars chaired by the CRJ. It adjudicated on the staff performance reviews. In this regard, the CJ launched the report of the PMMSC on performance monitoring and measurement within the Judiciary on 15 April 2015. It set the framework for staff performance management and service delivery within the Judicia1y. The DHRA was tasked to align the current peiformance reporting and measurement tools for the staff with the new framework and its tools to be launched in June 2015 for implementation from July 2015. 3-5.2 Areas ofstrength • The management had developed schemes of service for the Judiciary staff with support from UNDP. • The IP had staff b·aining policy and capacity building programmes were unde1taken based on the results of the training needs exercise. • The management had undertaken a staffing survey where one of the key outcomes was an analysis of the current staff within the Judiciary and the determination the staff establishment. • The recruitment process was undertaken by the JSC with support from the senior management team. Further, the JSC had delegated recruitment of officers from grade 8 and below to the senior management team. Adequate background checks were performed to ensure compliance with Chapter 6 of the CoK and other relevant laws. • The framework for pe1fonnance monitoring and measurement in the Judicia1y was launched on 15 April 2015. In addition, there was a Performance Management Committee (PMC) made up of the HoDs and Court Registrars chaired by the CRJ. Micro Assessment for UNDP lmptementing Partner. The Judiciary of the Republic of Kenya PwCKenya 57 3.5.3 Areas for improvement/weaknesses • There was shortage of staff with sufficient qualifications and experience to act as database administrators within the various court stations. Also, some of the court stations did not have qualified accountants hence accounting functions were performed by clerks. The staffing survey carried out in 2014 showed the Judicial'y lacked adequate staff within the cadres of comt clerks, customer care desk staff; comt executive officers and within the Internal Audit Department among other cadres. • At the time of the assessment, the alignment of the current tools for staff performance reporting, monitoring and measurement with new framework and its attendant tools spearheaded by DHRA was undeiway and these were set to be launched in June 2015 for implementation from July 2015. 3.S.4 Recommendation • The IP should proactively engage with the National Treasmy to seek additional funds to support recruitment of staff with the appropriate qualifications and work experience to address the staffing gaps. • The management should finalise on the alignment of the current tools for staff performance reporting, monitoring and measurement with new framework and its attendant tools spearheaded in preparation for their launch in June 2015 for implementation from July 2015. 3.S.S Management comments Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenys 58 3.6 Capabilities for performance monito1-ing and documentation /01· scaling up and/or policy influence 3.6.1 Overview Performance tracking The Department of Performance Management (DPM) was responsible for monitoring the pe1formance of the directorates and the comt stations. The DPM checked whether the staff were delivering services as per the workplans agreed on at the beginning of each financial year. The PMMSC had also developed the performance monitoring and measurement framework. These were meant to give impetus to the performance management processes within the Judicia1y. For example, we noted the DPM had undertaken a survey titled, 'Cou1t Case Delays: Impact Evaluation Diagnostic Study Report'. The overall objective of the study was to examine causes of case delay in the case processing chain. The process was finalized on and the report adopted and published in 2014. For the donor funded programmes, these were also under the DPM's scope. In addition, the Programme Coordinators were evaluated in relation to the performance of their projects. However, multi-year projects implemented in the Judiciary such as the JPIP, had dedicated secretariat that carried out all the activities related to a programme management cycle. The management indicated that at the time of the assessment, it was in the process of developing an Integrated Performance Measurement and Accountability System (IPMAS) with support from the JPIP programme. The technical evaluation was carried out and the report submitted to World Bank requesting for a no objection concunence. Plans for monitoring and performance analysis We noted that all the projects implemented by the Judiciruy had detailed workplans derived from the JTF. The management team headed by the CRJ met on Wednesday of eve1y week to review progress and determine the way forward. In addition, the DPM monitored the service delive1y within the Judicia1y. For the UNDP funded program, we noted that there was a Project Steering Committee with the donor and IP's representatives that me to review progress and address any emerging issues. There was also the Development Partners Forum (DPF) tasked with addressing difficulties in achieving key results in each of the 4 pillars of the JTF and proposed policy level recommendations to address the challenges. Timeliness and quality of reporting We obtained the programme progress reports submitted to UNDP and noted these contained the required details. For instance, these reported per workplan activity showing the achievements and explanations for any delays in the implementation of activities. The UNDP funded programme required submission of quarterly progress reports to UNDP. We noted that for the 2015 implementation period, the management had not submitted the progress report for the 3 months to 31 March 2015. 3.6.2 Areas ofstrength • There was regular review monitoring and analysis of performance within the Judiciary undertaken at the different levels. • All the projects implemented by the Judiciary had workplans based on the JTF and were used to monitor and measure performance. • The programme progress reports prepared by the management were detailed and contained all the critical information. Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 59 3.6.3 Areas for improvement/weaknesses • The management had not finalised on development, testing and implementation of the Integrated Performance Measurement and Accountability System (IPMAS) to improve on performance management within the Judiciary. 3.6.4 Recommendations • The management should ensure that once commenced, the development of the Integrated Performance Measurement and Accountability System {IPMAS) was finalized on according to specifications and implementation commenced in earnest to realise the anticipated value for money. 3.6.5 Management comments Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 60 3.7 Monitoring & Evaluation (M&E) Systems and capacities 3.7.1 Overview M&E arrangements The DPM was charged with spearheading the perlormance management and measurement activities at the Judiciary. The DPM focused on implementation of the workplan activities implemented through the performance contracts of the staff from the directorates and the court stations. Thus, the DPM assessed performance in accordance with the performance contracting framework. At the operational and functional level, the directorates and court stations monitored activities internally to assess adherence to workplans. Having taken note on the need to further strengthen M&E activities within the Judiciary, the CJ appointed the Pe1formance Management and Measurement Steering Committee (PMMSC). Its terms of reference were: • Establish an understanding of pe1formance management systems in comts; • Establish an understanding of performance indicators, targets and measures by judicial officers and staff; • Establish an understanding of foundations for sound perlormance measurement by Judicial officers and staff; and • Develop implementation plan for performance negotiation, vetting, monitoring, evaluation and reporting We perused the report of PMMSC dated April 2015 and noted the Judiciary had in the past performed M&E activities but processes these not canied out in harmonized way drawing from a clearly described framework. The guidelines contained in the PM MSC repo1t thus sought to address that challenge. Training and capacity building The training at the Judiciary was informed by the outcome of the training needs assessment carried out in February 2014. We noted the management had sponsored the staff to undergo the required trainings both internally at the JTI and externally at the KSG. The DPM's staff were thus taken through trainings that were tailored to performance monitoring and measurement. Evidence of performance monitoring of programmes using set tools and use of results for advocacy and policy influence We noted the management had undertaken various initiatives meant to review programme implementation. For instance, we noted that the management had undertaken service weeks where performance of both the civil and criminal divisions of the high court in Nairobi and Mombasa were evaluated. In the civil comt, the aim was to determine the dormant cases for dismissal and around 14 thousand cases were reviewed. The reviews made use of predetermined tools for collection of data and analysis. For the criminal comt reviews, the management assessed 1,538 cases and established existence of cases of petty nature that were not moving. These reviews resulted in dismissal of some dormant civil cases and rationalisation of some criminal cases with recommendations for release of suspects. Further, the PMMSC's report provided specific model M&E frameworks for different courts and the administrative management. For instance, performance indicators were developed for the Chief Registrar of the Judiciary with requirement for monthly, quarterly, bi-annual and annual reports included. The final process in this regard required development of tools to monitor performance in alignment with the indicators. We noted that the process of developing these tools was ongoing at the time of the assessment. The new tools shall be harmonized with templates and tools created by the PMD for regular data collection and analysis that have been in use. In the past, the returns from the analysis of tools were used to make regular reports and the annual report for the Judiciary. The annual report was a constitutional requirement and it had been complied with. The Judiciary had used the outcome of the monitoring processes to engage with different stakeholders. For instance, it had lobbied for more budgetary allocation for infrastructural development, recruitment of more judicial officers and service department staff. Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenys 61 3.7.2 Areas ofstrength • There was the Directorate of Performance Management charged with petformance monitoiing, management and measurement for the Judiciary. • The management had through the PM MSC, undertaken a comprehensive review of the performance monitoring, management and measurement activities and developed harmonized framework for the entire Judiciary. • The management had undertaken various performance monitoring initiatives using the current tools for data gathering and utilized the results to enhance service delivery and engage with different stakeholders with regard to financial and collaborative support. 3.7.3 Areas for improvement/weaknesses • The process of developing new tools and aligning the current data collection and reporting tools to the reporting indicators included in the PMMSC report and its accompanying tool had not been finalised on yet these were scheduled for launch in June 2015. 3.7.4 Recommendations • The management should fast track the finalisation on the development of the new tools as well as the process of aligning the current data collection and reporting tools to the reporting indicators included in the PMMSC report and its accompanying tool so as to beat the timelines for their launch in June 2015. 3,7.S Management comments Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 3.8 Parhterships 3.8.1 Overview Partnership engagement We noted the IP had robust and well developed relationships with different development partners. The partners supported the implementation of some of the activities contained in the JTF. Some of the areas of partnerships were as shown in the table below. Development Partner Activity supported GIZ, International Development Devolved judiciary-regional/station work plans/budgets for 2012/13 and Law Organization (IDLO) and devolved judiciary-regional/station strategic plans 2012-2016 Danish International Development Agency (DANIDA) IDLO Judiciary-organization design and HR development(ToR and RFP development) and promotion of alternative dispute resolution (ADR) mechanisms ~ IDLO and DANIDA Communication/media support to the Office of the Chief Justice Swedish International Development of JTF, judiciary MTEF (2012/13-2014/15) and 2012/13 Development Agency (SIDA) and annual budget, financial management regulations for the Judiciary Fund the German Federal Enterprise and the PFM guide,judiciary ICT strategic plan, 2012-2016, devolved for International Cooperation judiciary public financial management outline, judiciary planning on cost (GIZ) budget model outline and the support for administration, logistics and secretaiiat of the National Council for Administration of Justice (NCAJ) World Bank Design of the JPIP project, assessment of the required court facilities, procurement specialist support and conduct of the data baseline survey The Judicia1y had established constructive partnerships in the perfo1mance of its core objectives and for operational support. In the performance of its mandate, the Judiciary collaborated with the National Police Ser\lice, Law Society of Kenya, Probation and Medical Officers, Civil Society Organisations, remand homes for juveniles, the prison service and the judges and magistrate associations. These were functional collaborations aimed at facilitating service delive1y. The Judiciary had effective engagements with the Legislative and Executive arms of the government. It relied on the Executive for implementation of court orders and the Legislature for making oflaws guiding the performance of its mandate. It also worked together with the two arms in resource allocation dming the budgeting processes. The Judicia1y had established effective partnerships with the development partners. In fact, it had set up a Development Pa11ners Forum chaired by the Chief Justice to harmonise donor engagement and share information with these partners. The Judiciary also collaborated with different entities under the National Committee on Administration Justice (NCAJ). These were the Attorney General, Director Public Prosecution, the National Police Service and the Prisons Service. The Judicia1y had also set up Court Users Committee within the different court stations. There were made up of the stakeholders ordinarily that used the court services. The objective was to involve the users in the service delivery processes and obtain their input in improving service delivery. At the time of the assessment, we noted the Court Users Committee for Milimani was launched on 11 May 2015 by the Chief Justice. Across the border, the Judiciary collaborated with the laws societies in the region. Through its officers, it was an Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya active participant in the East Africa Judges and Magistrates Association. It used these forums to share information and build capacity of its officers through the conferences and workshops held by these entities. Leveraging on resources, results and policies Through the networks established with different partners, the Judiciary collaborated in the expansion of lhe court facilities around the countiy. The expansion was carried out through cost sharing arrangements. The .Judiciary provided the land and the development partner financed the constructions. The notable partner under this model was the World Bank through the Judicial Pe1formance Improvement Project (JPIP). The Judiciary also held some of the training activities in-house at the Judicial Training Institute (JTI). This was an in-house training institute for the judges and magistrates. It mostly made use of the expertise within the Judiciary and also housed some of the b·aining activities. The Judicia1y shared its infrastructural facilities with difforent public entities. We noted the Witness Protection Agency and the Political Parties and Disputes Tribunal were housed within Milimani court station. 3.8.2 Areas ofstrength • The IP had established networks that it partnered with for performance of its mandate and also to leverage on resources and policies. • The Judiciary collaborated with different partners and public entities to share knowledge and resources. 3.8.3 Areas for improvement/weaknesses • None 3.9 Capacityfo1• Innovations, modelling and setting and applying programme standards 3.9.1 Overview Review integration of cross cutting themes The management had progressively sought to integrate cross cutting issues within its operations. Some of the initiatives undertaken were: On gender and equity, the management had ensured that new recruitment of staff reflected the constitutional requirements on gender and regional balance. At the time of the assessment, the management informed us that for every 55 male persons there were 45 female persons. The management had also come up with policies that were friendly to Persons with Disabilities (PwDs). For instance, the new court buildings such as the one constructed in Kisumu, among others were fitted with ramps and other amenities for easier access and use by PWDs. Further, the Supreme Court building was modified to accommodate ramps and the lifts were also retrofitted to make them friendlier. However, the other comt stations around the country did not have facilities that were friendly to the PWDs. Modelling or piloting of initiatives prior to scaling up At the time of the assessment, the management was piloting a case management system at Milimani law comts. The system would be used for filing, scheduling and tracking progress of court cases among other functions. It was part of the new measures implemented under the Judicial Transformation Framework (JTF). Upon successful completion of the pilot process, the system shall be rolled out to up to 12 courts that already possessed high intern.et connectivity within Nairobi, Eldoret and Mombasa before the eventual scale up nationally. Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic ofKenya PwCKenya The Judiciary piloted construction of model courts that used a uniform strucmral design with a complete set of all the required court facilities. The pilot was carried out in Kikuyu and Kangema and the model had further been scaled up to reach 30 court stations. The Judiciary had commenced incorporation of alternative dispute resolution mechanisms within the case management processes. The Family and Commercial Divisions of the High Court and the Industrial Court were keen on these mechanisms. For instance, dming the prima1y and secondary schools teachers' strike, the Industrial Comt through the presiding judge in the matter facilitated the negotiation between the Teachers' Union and the Government representatives. Innovative approaches and strategies in project planning The management involved the stakeholders in the design of the monitoring and evaluation framework for the Judiciaiy. The Performance Management and Measurement Steering Committee (PMMSC) undertook extensive consultations, learning and benchmarking visits and presentations from different stakeholders before finalising on its report. The final recommendations thus incorporated the views of the different stakeholders in the justice sector. The management had also included the use of mobile courts as part of the new approach to planning for service delivery. These were undertaken through visits to different areas that ordinarily did not have courts nearby. The court matters emanating from those areas were thus heard during the mobile court visits. This was a strategy that was adopted to improve access to justice. The management had also adopted annual case audit approach to determine the dormant cases. Once determined, the parties were issued with notices to show cause why the dormant cases should not be dismissed. The objective was to ensure that only active cases were listed as pending. This was meant to open up court diaries to new cases hence improving access to justice and speeding up clearance of the current cases. The Judicia1y had also incorporated the use of court users committees within its operational framework. The court users' manual was developed to guide the operations of these committees within the different court stations. 3.9.2 Areas ofstrength • The Judiciary had mainstreamed matters such as gender, equity, disaster risk management and regional balance within its operational framework. • The management had inculcated piloting of initiatives before rolling them out. The notable instance was the piloting of the case management system. • The management had adopted use of innovative approaches to planning such as incorporation of mobile courts within the system to improve access to justice. 3. 9.3 Areas for· improvement/weaknesses • Other than the new court buildings and the Supreme Court premises, the other court stations buildings did not have facilities that were friendly for access and use by the Persons with Disabilities (PwDs). 3.9.4 Recommendations • The management should progressively seek to make all the court premises access-friendly to Persons with Disabilities (PwDs). 3.9-5 Management comments Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 65 Appendices Appendix 1: List ofpersons interviewed Namt! Designation Ms Judith Omange Project Coordinator and a Registrar of the High Court of Kenya Ms Susan Oyatsi Acting Director of Finance Mr Wycliffe Wanga Chief Accounts Controller Ms Angello Manyalla Acting Director of Human Resources Mr David Rabando Deputy Director of Finance Mr Joseph Osewe Deputy Director, Directorate of Performance Management Mr Peter Mwai Senior Internal Auditor MrMoluBoya Human Resource Ms Lydia Mwangi Program Officer Appendix 2: List ofdocuments reviewed • Management minutes for the UNDP and Judiciary meeting • Bank statements • Judicial Transformation Framework, 2012-2016 • The PPD Act and PPD Regulations • The PFM Act and PFM Regulations • Sample of payment vouchers and supporting documents • Project document for the UNDP funded programme • Chart of accounts • Personnel files for a sample of staff • Bank reconciliation statements • Audited financial statements • Statutory returns • Standard documents and templates • Programme performance reports • Policy documents for the Judiciary • The website of the IP • PMMSC Report dated April 2015 • Various survey reports Micro Assessment for UNDP Implementing Partner. The Judiciary of the Republic of Kenya PwCKenya 66 © 2015 PwC. All rights reserved. In this document, "PwC" refers to PwC Kenya, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity Implementing Partner/Agency Information Implementing partner name: The Judiciary of the Republic of Kenya Programme name: The Judiciary Transfonnation Supp01t Project (JTSP) Programme number: 2KEN013/240 Programme background: Democratic governance and human rights including gender eaualitv progressively accelerated and realized Programme location: Nairobi Programme contact person(s): Ms Judith Omange, Registrar of the High Comt of Kenya Location of records: Nairobi Currency of records maintained: 30 April 2015 Period of transactions covered by micro assessment: July 2014 to April 2015 Funds received during the period covered by the N/A (Direct spayments made by UNDP) attestation engagement: Expenditures incurred/rep01ted during the period N/A (Direct payments made by UNDP) covered by the attestation enJ?:agement: Date of micro assessment was undertaken: 30 April and 4 Mav 201.'. Estimated number of days reguired for visit to IP: 2 Any special requests to be considered during the micr·o None assessment: Cash transfer modalitv used by the IP: Direct oavments made bv UNDP 1 Checklist B: Financial Manaoemenl Questionnaire j Summary of Risks Related to the Financial Management Capacity of the Implementing Partner Tested subject area (see subsequent pages for details of each subject area summarized below) 1Total I Total number number of of applicable Overall risk Irisk points I questions assessment Comments 1 1. Implementing 8 5 2-Moderate • At the time of the assessment, the Directorates of Human Resource and partner: risk Administration, Information Communication Technology, Finance and Supply Chain Management were headed by acting Directors pending finalization of the recruitment process commenced by Judicial Service Commission (JSC). These were members of the management team. • At the time of the assessment, the IP was embroiled in various court cases mainly relating to suits filed by current and former staff of the Judiciary. 2.. Funds flow: 6 6 1- Low risk • The IP operated an exchequer bank account that facilitated receipt and disbursement of funds from the National Treasury. The IP also opened separate bank accounts whenever required by the donor financing agreements. • The IP had benefitted from the system of disbursements where its budget was a direct charge to the Consolidated Fund of the GoK run by the National Treasury (NT) at CBK. • The IP had minimal exposure to foreign exchange risks. Also, the Finance and Accormt Directorates were staffed with competent Officers who had capacity to manage foreign exchange risks if any. 3. 18 10 2-Moderate • At the time of the assessment, the IP did not have a staffing structure Organizational risk within the Directorates of Accounts and Finance. The staff thus relied on structure and staffing: the established practice to determine their reporting framework. • Some of the court stations did not have qualified Accountants and the accounts function was thus undertaken by clerks who had gained l experience over time and some who had also studied accounts but were yet I 2 Summary of Risks Related to the Financial Management Capacity of the Implementing Partner Tested subject area (see subsequent pages for details of each subject area summarized below) I Total Total number number of of applicable Overall risk risk points questions assessment Comments to be re-designated as Accountants. • The staff were not familiar with the United Nations procedures related to cash transfers (specifically the HACT framework). • The Finance Director was dismissed from employment by JSC and had not been replaced at the time of the assessment. The Directorate of Finance was headed by an acting Finance Director. 4. Accounting 53 45 1- Low risk policies and • The IP used an automated accounting system, IFMIS, which was hosted by procedures: the NT for all GoK entities. In addition, the IP processed the payments using the e-Payment system which was an online payment mechanism. • There was an accounting system that had a robust chart of accounts tailored to the nature of GoK expenditure categories. • The accounting and supporting documents were maintained in a defined system that allowed access to authoiized users. The destruction process was verified by the Kenya National Audit Office {KENAO) Officers and final approval given by the Chief Registrar of the Judiciary (CRJ). • The functions of authorization, recording and posting of transactions were carried out by different officers within the Directorate of Finance (DoF) and Directorate of Accounts (DoA). • The IP had adequate segregation of duties in the ordering, receiving and payment for the procured goods and services. • The bank reconciliations were prepared by individuals other than those who made or approved payments. We noted the bank reconciliations statements for the bank accounts were up to date. • The budgeting methodology complied with the PFM Act that required 3 Summary of Risks Related to the Financial Management Capacity of the Implementing Partner Tested subject area (see subsequent pages for details of each subject area summarized below) Total Total number number of of applicable Overall risk risk points questions assessment Comments preparation of programme based budgets. Further, the budget showed both the physical and financial targets. • The management undertook regular comparison and reviews of the budget utilization to assess the status of its implementation and progress in achieving the set targets. • The IP had complied with the PFM Act with regard to approval of significant variations from budget. • The management had in every financial year prepared the budget estimates within the required timeline. In addition, the budgeting process was robust and involved public hearings to consider the views of the court users. • The functions of authorization, recording and posting of transactions were carried out by different officers within the Directorate of Finance (DoF) and Directorate of Accounts (DoA). • The payment vouchers and their supporting documents were stamped 'paid', dated, reviewed and approved, and posted to the appropriate items lines within the sub-votes. • The IP used the GoK per-diem guidelines when giving allowances to staff for field activities outside of their duty stations. • There IP was governed by robust internal control framework underpinned in the PFM Act and the new PFM Regulations gazetted through Legal Notice No. 34 dated 20 March 2015. • The IP was governed by the various laws, regulations and guidelines that provided guidelines on the management of conflict of interest by judiciary staff and other expected standard of behaviour and conduct for public officials. 4 Swnmary of Risks Related to the Financial Management Capacity of the Implementing Partner Tested subject area (see subsequent pages for details of each subject area summarized below) Total Total number number of of applicable Overall risk risk points questions assessment Comments • There were defined signatories to the bank accounts and an operational mandate established. • The IP had adopted an internet banking system that minimized use of cash payments for items such as staff advances for field work out of the duty stations. • The IP has a system to protect the assets from unauthorized removal from the premises. Additionally, a comprehensive assets register was maintained for the UNDP funded programme. • The management had established a procedure that required surrender of previous quarter funds before disbursement of additional funds to the court stations. • The management had set up structure through which suspected fraud, waste or misuse of resources or property could be reported and addressed. 5. Internal audit: 10 5 2 - Moderate • The IAD did not have an approved structure clearly defining the repo1ting risk the administrative and functional repo1ting framework as well as the internal reporting processes within the department. • Administratively, the CIA reported to the Director of the Directorate of Finance (DDoF) who ideally headed an internal entity subject to internal audit reviews. This was not in compliance with section 73 (4) of the PFM Act which required internal audits to be conducted in accordance ·with international best practices. • The IAD did not have a separate budget of its own and had to request for financial support from the DDoF. This meant the CIA was not the budget holder for his department. This had the potential to affect the operational independence of the IAD. 5 Summary of Risks Related to the Financial Management Capacity of the Implementing Partner Tested subject area (see subsequent pages for details of each subject area summarized below) Total Total number number of of applicable Overall risk risk points questions assessment Comments • The department had only 8 staff compared to the staff establishment of 44 staff members required for optimal pe1formance. • At the time of the assessment, the IAD did not have a separate internal audit manual setting out the standard operating procedures to guide the staff in the performance of the internal audit reviews. • The IAD had carried out reviews and issued reports containing various recommendations for implementation by the management. 6. Financial 9 7 1- Low risk • The financial statements were audited by the Auditor General as required audit: by the law. • There were no delays in audits of the IP's financial statements, and the financial statements were issued within a reasonable time. • The audit of the UNDP funded programme resulted in an unqualified opinion and no internal control or operational weaknesses were noted. • The external auditor, KENAO carried out an audit for all financial operations of the IP and as such donor funds were subjected to an annual external audit process as applicable. 7. Reporting and 8 6 1- Low risk The financial statements of the IP were prepared in accordance with the monitoring: • guidelines provided by the National Treasury and submitted to the Auditor General and the National Treasmy by 30 September of every financial year. • The PFM Act had specified the financial management reporting responsibilities. 8. Infot•mation 7 5 1-Low risk The IP used IFMIS which was an automated accounting system to record systems: • the financial transactions. Access to this system was restricted and was I 6 Summary of Risks Related to the Financial Management Capacity of the Implementing Partner Tested subject area (see subsequent pages for details of each subject area smnmarized below) Total Total number number of of applicable Overall risk risk points questions assessment Comments granted after a request was made to NT through the set procedure for grant of access and login credentials. Further, the data processed through IFMIS was updated in real time and continuously backed up. • IFMIS was an online system accessed only by authorised users and was continuously backed up. • There was use of an anti-virus system to prevent unauthorised intrusion into the IP's ICT network. • There were set requirements for regular change of passwords, length of passwords and the characters to be used. 9. Procurement: 1-Low risk 49 35 • The IP benefitted from the national laws that were flexible enough to incorporate donor procurement practices as available options that could be used for procurements financed using donor funds. • The IP was subject to and strove to comply with the national laws and regulations governing public procurement activities. • The IP relied on the ethical framework enshrined in the code of ethics prepared by PPOA for the procurement officers of the public entities. • The management had set up mechanisms such as the Office of the Ombudsman of the Judiciary (OtOJ), drop boxes and suggestion boxes to report on fraud and corruption within the Judiciary. • The management ensured the procurement methods used at the IP complied with the provisions of the procurement laws and regulations. Any proposals for deviations were approved prior to occurrence of the procurement event. • The IP had established committees charged with ensuring procurement 7 Summary of Risks Related to the Financial Management Capacity of the Implementing Partner Tested subject area (see subsequent pages for details of each subject area swnmarized below) Total Total number number of of applicable Overall risk risk points questions assessment Comments activities were adjudicated on as set out by the procurement laws and regulations. I • The IP made use of the standard bidding documents and contracts provided by the PPOA. • The IP maintained a list of prequalified suppliers in compliance with the law. • The IP had a robust system governing the tender opening processes and there was wide representation in the Tender Opening Committee (TOC). • The staff employed by the IP had the appropriate qualifications and work experience. Total: 168 124 1-Lowrisk Divide the total number of risk points by the total number of applicable questions in the subject matter section. This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. 8 Micro Assessment Questionnaire 1. Implementing partn:el' 1.1 Is the IP legally registered? I v IP is registered in I 1 The Judiciary of the Republic of Kenya, the Implementing Partner (IP) If so, is it in compliance the country was established by the Constitution of the Republic of Kenya. This was with registration where the through Chapter 10, Article 159 of the Constitution of Kenya (CoK), 2010. requirements? Please note programme It was one of the three arms of the Government of Kenya (GoK} and thus, the legal status/registration operates and is it was independent from the Executive and Legislative arms of the GoK. of the entity. cunent with Area of strength registration/repo The IP was established by the Constitution of Kenya, 2010 and was rting Retain copies of independent from the Executive and Legislative anns of the GoK. registration documents if requirements. available. 1.2 Has the IP received United Iv IP has received 11 The IP had worked with United Nations Development Programme Nations resources in the United Nations (UNDP) under the 'Judicia1y Transformation Support Project'. The past? If so, provide details resources in the programme was for the period from 2013 to 2016 and UNDP had of amounts, from which past and no committed USD 300,000 to the basket fund of USD 2,615,000. agency and for what issues were Area of strength purpose. encountered with utilizing these The IP had commenced engagement with UNDP for implementation of funds. the 'Judiciary Transformation Support Project'. 1.3 Does the IP have statutory I v The IP is I 1 The IP was subject to payment of income taxes in relation to staff reporting requirements? If compliant with emoluments, national hospital insurance and social security pa)'ments. so, are they in compliance applicable From our review, we established it had complied with these specific with such requirements? statutory requirements. This was facilitated by the e-payment module adopted Please describe. requirements. under the Integrated Financial Management Information System (IFMIS) framework. The IP was also required to submit annual financial statements to the Auditor General (AG) by 30 September of every financial year. We learnt that these were submitted on time in compliance with the Public Finance 9 Management (PFM) Act and the Public Audits Act. Area of strength The IP had complied with the repo1ting requirements within the required timelines. 1-4 Is the governing body for I v' The governing I 2 The governing body of the Judiciary of Kenya was the Judicial Service the IP independent from body of the IP is Commission (JSC) established by Article 171 of the CoK. It was chaired by management? If so, please independent the Chief Justice (CJ) of the Republic of Kenya. The other members were: describe. from • One Supreme Court (SC) judge; management. • One Court of Appeal judge; • One High Court Judge; • One Magistrate; • The Attorney General (AG) of the Republic of Kenya; • Two Advocates of the High Court; • A nominee by the Public Service Commission (PSC); • A representative of the public; and • Chief Registrar of the Judiciary (CRJ) as Secretary to JSC. The JSC was required to meet at least once every quarter and any other time as required. Functionally, it was required to promote and facilitate the independence and accountability of the judicia1y and the efficient, effective and transparent adminisb:ation ofjustice. The day to day management of the IP was the responsibility of the CRJ assisted by the various Registrars and Heads of Directorates (HoDs). These were: • Registrar of the Supreme Court; • Registrar of the Court of Appeal; 10 • Registrar of the High Court; • Registrar Industrial Court; • Registrar of Magistrates Courts; • Directorate of Hmnan Resource and Administration (DHRA); • Directorate of Public Affairs and Communication (DPAC); • Directorate of Perfo1mance Management (DPM); • Directorate of Information Communications Technology (ICT); • Directorate of Supply Chain Management (DSCM); • Directorate of Accounts (DA) headed by Chief Accounts Controller (CAC); and • Directorate of Finance (DF). The management team met on a weekly basis to review performance and discuss the operational matters within the IP. Also, these also held quarterly meetings where quarterly performance in :financial and programme was analysed and reported on. As per the Judicial Transformation Framework (JTF, 2012-2016), the Leadership and Management Committee (LMC) comprised the: • Chief Justice (CJ), • Chief Registrar of the Judiciary (CRJ), • Deputy CJ (DCJ), • Principal Judge of the Cowt ofAppeal (PCA), • Principal Judge of the High Comt (PJHC), • A representative from the High Court Divisions, • A representative from High Court Outstations; • A representative from the Tribunals, • A representative from the Kenya Magistrates and Judges Association (KMJA) and the Kenya Judicial Staff Association (KJSA), • A representative each from the Directorates and Registrars. 11 The Leadership and Management Committee (LMC) as set out under the JTF had been operationalised at the Judiciary Headquarters and the court stations had incorporated these in their operational arrangements. Notwithstanding the challenge with establislunent and operationalization of the LMC, we learnt that the Directorates of Human Resource and Administration, Finance, Information Communication Technology (ICT) and Supply Chain Management were headed by Acting Directors pending replacement of the former occupants. These former Officers were dismissed by JSC after they were 'allegedly found to have engaged in malpractices'. From discussion with the management, we established recruibnent for these positions had been advertised for. Strength The governing body was the Judicial Service Commission (JSC) chaired by the Chief Justice (CJ). The management was separate from the JSC and was chaired by the Chief Registrar of the Judiciary ( CRJ) who being the Secretary to JSC, acted as the link between JSC and the management team. These two bodies had clear roles and responsibilities and pe1formed their individual mandate. Areas for improvement • At the time of the assessment, the Directorates of Human Resource and Administration, Finance and Supply Chain Management were headed by acting Directors pending finalization of the recruitment process that had been commenced by JSC. 1.5 Does the IP have any I v The IP does not I 3 At the time of the assessment, the IP was a party to various cases filed by pending legal actions have any pending current and former staff. These mainly arose from the work carried out by against it? legal actions the Judges and Magistrates Vetting Board (JMVB) where it had found Confirm this with the IP, against it. some judges and magistrates unsuitable to serve. The IP had engaged and possibly through competent Advocates to represent it in court in relation to these cases. assessment ofthe general Area for improvement ledger and confirmation with external legal counsel At the time of the assessment, the IP was embroiled in various comt cases 12 provided by the IP. Provide mainly relating to suits filed by current and former staff of the Judiciary. details and actions taken by the IP to resolve the legal action. Total number ofquestions I 5 in subject area: Number ofquestions I o marked 'N/A' in subject area: Total number ofapplicable I 5 questions in subject area: Total number ofrisk 18' points: Implementing partner 2 2-Moderate Divide total nwnber of risk points by total number of applicable questions overall risk assessment: risk in subject matter section. This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. 2. Funds Flow: 2.1 Can the IP easily receive 1...; The IP can 11 The IP was a public entity and as such, it operated under the national and transfer funds? If so, receive funds payment system run by the National Treasury (NT). It received budgetary please describe the process. directly from the support from the NT through its exchequer account operated at the agency. Central Bank of Kenya (CBK). The management indicated that whenever required by any financing agreement, the management in liaison with the National Treasury opened a bank account for the relevant programme under implementation. For instance, the Judicial Performance Improvement Project (JPIP) funded 13 by World Bank had a separate bank account where project funds were credited and accessed from. Area of strength The IP operated an exchequer bank account that facilitated receipt and disbw·sement of funds from the National Treasury. The IP also opened separate bank accounts whenever required by the donor financing agreements. 2.2 Are the proposed I v The proposed 11 The current national payment system was satisfactory and no operational arrangements to transfer arrangements are challenges were brought to our attention by the management. the funds to the IP satisfactory to satisfactory to the funding the funding agency? agency. 2.3 Have there been major v I IThe IP has not 11 The management confirmed that the funding received was based on the problems in the past in had problems in approved budget. Being one of the 3 arms of GoK, it received the financial receipt of funds by the IP, the past support directly from the Consolidated Fund of the GoK run by the particularly where the regarding receipt National Treasury (NT) at CBK. funds flow from of agency govemment ministries (if funding. applicable)? If so, please Area of strength describe. The IP had benefitted from the system of disbursements where its budget i------+--- +-- -1---1------11----1 was a direct charge to the Consolidated Fund of the GoK run by the · -· I : .,.. 1 .., '-''-'•""· 2.4 In the vast. has the IP had I I V I I The --IP .has not 11 uvum ... ..,....,u._, ~., • any problems in the · had problems in management of funds the management received? If so, please of funds received describe. from the funding agency. 2.5 Does the IP have capacity I v The IP has 11 The IP received the budgeta1y from NT in Kenya Shillings and incurred to manage foreign capacity and expenditure in the same currency unless where necessitated by exchange risks? (If it is experience in circumstances such as foreign purchases. The exposure arising from 14 expected to be using funds managing foreign foreign exchange risk was quite minimal. outside the country.} If so, exchange risk. does the IP have experience Further, the IP's Finance and.Account Directorates were staffed with managing foreign exchange qualified, experienced and were thus competent with capacity to manage risk? foreign exchange risks if any. Area of strength The IP had minimal exposure to foreign exchange risks. Also, the Finance and Account Directorates were staffed with competent Officers who had capacity to manage foreign exchange risks if any. 2.6 Does the IP have a process I v The IP has 11 The IP provided the staff and facilities as agreed on in the financing in place to access capacity and agreement. The IP had provided staff and facilities for the UNDP and counterpart funds? Please experience in World Bank funded programmes. The development support thus mostly describe. assessing went to finance core programme activities. counterpart funds. 2.7 If some activities will be ...; IThe IP has the IN/A At the time of the assessment, no activities implemented by the IP were implemented by others, necessary carried out by extemaJ parties such as civil society groups or non such as civil society groups repo1ting and governmental organizations. 01· non-governmental monitoling organizations, does the IP mechanisms in have the necessary place to track the reporting and monitoring use of funds by mechanisms to track the external use of funds? Does the IP organizations. have experience with The IP also has implementation of experience with activities by external civil this process. society or non governmental organizations? If so, please describe. 15 Total number ofquestions 17 in subject area: Number ofquestions 11 marked 'NJAt in subject area: --l - - t '- ---- + '--'- Total number ofapplicable I 6 questions in subject area: Total number ofrisk 6 1-Lowrisk points: Funds.flow ovei•all risk Divide total number of risk points by total number of applicable questions assessment: in subject matter section. This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. 3. Organizational Structure and Staffing 16 3.1 Is the organizational I .../ The 13 The Accounting Officer of the IP was the Chief Registrar of the Judicia1y structure of the I P's organizational to whom the Directors of Finance and Accounts reported to in relation to accounting/finance structure of the financial management. The two Directors had a team of staff who department appropriate for I P's reported to them functionally and administratively. the level of financial accounting/fl.nan volume? Does the ce department is We noted the IP's staff clearly understood their reporting framework organizational structure appropriate for based on the established practice and as defined in their contracts of provide clear lines of the level of employment. However, the IP did not have a documented structure in reporting and financial volwne place for the Directorates of Finance and Accounts. accountability? Ifso, please (including In fact, as per the JTF, we noted the development of an organizational describe. funding from the structure for the Judiciary was indicated as Pillar No. 2 (Transfonnative agency). Leadership and Professional, Motivated Staff). The specific objective Attach an organization under this pillar was described as, 'To establish an overall organizational chart ifavailable. structure that clearly (a) delineates judicial from administrative functions (b) supports the effective devolution of the Judiciary (c) defines roles, mandates, responsibilities and accountabilities of different organizational units at different levels within the Judiciary and (d) cascades these roles to individual jobs through job descriptions'. Area for improvement At the time of the assessment, the IP did not have an organization structure in place. The staff thus relied on the established practice to determine their reporting framework. 3.2 Are the level of posts and I .../ The level of posts I 3 From our discussion with the management, we established the employees competency of staff and competency within the Judiciary headquarters in Nairobi were well qualified. Their appropriate for the level of of staff are qualifications and work experience were in line ·with the scheme of service financial volume in the appropriate for for the Judiciary. accounting/finance the level of deparbnent? Identify the financial volume However, there were challenges in relation to the accounts staff within staff, includingjob titles, in the some of the 114 courts station in place at the time of the assessment. responsibilities, accounting/finan Some of these stations did not have qualified accounts and the accounts educational backgrounds ce department. function was thus undertaken by clerks who had gained experience with and professional time. The court stations initially affected by this were 4 but had reduced to 17 experience. 2 after some Accountants were redeployed from places deemed to have excess staff. The situation was largely attributed to establishment of more Attach job descriptions and court stations without the corresponding recruitment of accounts staff for CVs of key accounting/ the new stations. finance staff Additionally, we noted the management had unde1taken a staff 1------+-- -1------11------1 establishment survey in 2014. The outcome showed that all the 3.3 Is the IP's v The IP's 3 Directorates did not have adequate staff. The management indicated accounting/finance accounting/finan proposals had been made in the submitted estimates for financial year function staffed adequately ce function is 2015/16 for allocation of funds to facilitate recruitment of additional staff. to ensure sufficient controls staffed • are in place to manage adequately to Area for improvement agency funds? Ifso, please ensure sufficient • Some of the court stations did not have qualified accountants and the describe. controls are in accounts function was thus undertaken by clerks who had gained place to manage experience over time and some who had also studied accounts but agency funds. were yet to be re-designated as Accountants. • The management had undertaken a staff establishment survey in 2014 whose outcome was that all the Directorates did not have adequate staff. This impacted negatively both on the adequacy and competency of the accounts staff ·within the affected duty stations. 3-4 Are accounting/finance v The 12. From our enquiries, we learnt the staff were not familiar with the United staff familiar with United accounting/finan Nations procedures related to cash transfers (specifically the HACT Nations procedures related ce staff are framework). The staff requested to be trained on these. to cash transfers familiar with Area for improvement (specifically the HACT United Nations framework)? If so, please procedures The staff were not familiar with the United Nations procedures related to provide details. related to cash cash transfers (specifically the HACT framework). transfers (specifically the HACT framework). 18 3.5 Are there vacancies in v The IP does not 2 The Finance Director was dismissed from employment by JSC and had positions considered key? If have any not been replaced at the time of the assessment. The Directorate of so, provide the estimated vacancies in Finance was headed by an acting Finance Director. date of appointment. positions considered key. The management indicated the position was advertised for and awaited finalization of the recruitment to be conducted by JSC. Area for improvement The Finance Director was dismissed from employment by JSC and had not been replaced at the time of the assessment. The Directorate of Finance was headed by an acting Finance Director. 3.6 Are staff frequently v IP staff are not 1 The IP had a policy that staff can be transferred after serving three years transfe1Ted to other frequently in one duty station. departments, offices, transfe1Ted to countries, etc.? If so, what other is the estimated frequency? deparbnents, offices, countries, etc. 3.7 Does the IP have training v The IP has 1 The IP had policies relating to staff training. We noted the IP sponsored policies for training policies the staff for the Continuous Professional Development (CPD) courses accounting/finance staff? for provided by the Institute of Certified Public Accountants of Kenya Are necessary trainings accounting/finan (ICPAK) regularly. Further, the IP paid the professional subscriptions for undertaken? If so, please ce staff, which the staff who were members of ICPAK. describe. are undertaken as planned. IArea of strength The staff were taken through training courses and received sponsorships for ICPAK annual subscriptions and the CPD courses. 3.8 Has there been significant v The IP has not 1 The management enhanced the terms of service for the Judiciary staff. turnover in the past five had significant The staff were provided with medical insurance cover. It had thus years? If so, has the rate turnover in the managed to attract and retain highly qualified employees. We learnt that improved or worsened? past five years. in 2014, the Judiciary lost less than 10 staff. 19 Does it appear to be a Area of strength problem? If so, what is the The IP had very low staff turnover over the last five financial years. IP doing to address this issue?" 3.9 Does the IP perform -./ The IP performs 11 The JSC undertook various checks on the staff recruited for the Judiciary. background background The process was enhanced by the requirements of Chapter six of the verification/checks on all verification/ chec Constitution of Kenya, 2010 that governed the integrity of public servants. new accounting/finance ks on all new The new staff were required to provide clearance from the Ethics and and management accounting/fl.nan Anti-Corruption Commission (EACC), Higher Education Loans Board positions? If alternative ceand (HELB) and the Kenya Revenue Authority (KRA). The requirement for practices for processing management these clearances was meant to ensure the Judiciary recruited staff with new hires are in place, positions. impeccable integrity. please provide a brief Area of strength description. The new staff were required to undergo clearance process carried out by the Ethics and Anti-Corruption Commission (EACC), Higher Education Loans Board (HELB) and the Kenya Revenue Authority (KRA). 3.10 Does the IP have a defined I -./ 1 The internal control framework in the public financial sector in Kenya was and documented internal governed by the Public Finance Management (PFM) Act. The PFM Act control framework? Is this was enacted after promulgation of the Constitution of Kenya, 2010 hence framework consistent with the Government Financial Management Regulations (GFMR) that existed international standards? If until then were repealed. The new PFM Regulations gazetted through so, please describe. Legal Notice No. 34 dated 20 March 2015. Area of strength There IP was governed by robust internal control framework underpinned in the PFM Act and PFM Regulations were gazetted through Legal Notice No. 34 dated 20 March 2015. Total number ofquestions I 10 in subject area: 20 Number ofquestions marked 'N/A'in subject w•ea: Total number ofapplicable 110 questions in subject area: Total number oftisk I 18 points: Organizational structure 1.2 2.- Moderate Divide total number of risk points by total number of applicable questions and staffing overall tisk risk in subject matter section. assessment: This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. 4. Accowiting Policies and Procedures 4q,. General 4.1 Does the IP have an I v The IP has an 11 The Judicia1y used the Integrated Financial Management Information accounting system that accoW1ting System (IFMIS) which was the accounting system for the Government of allows for proper recording system that Kenya (GoK). It was used to record financial transactions emanating from of financial transactions allows for proper the budgetary suppo1t received from the National Treasury. The system from United Nations recording of had capacity for allocation of expenditme using different parameters such agencies, including financial as the source of funds, category of expenditure, program it related to and the responsible unit among others. allocation of expenditures transactions in accordance with the from United The system had capacity to capture and report on the donor funded respective components, Nations agencies, projects whose funding was channelled through the National TreasUIY disbursement categories including and incorporated into the IP's approved estimates. and sources of funds? allocation of At the time of the assessment, we noted the management was had expenditures in transitioned to the E-Payment system established by the National accordance with Treasury. This was inter-phased directly with IFMIS and was meant to the respective make all payments through an online system run over the platform 21 components, provided by CBK. disbursement Area of strength categories and sources of funds. The IP used an automated accounting system, IFMIS, which was hosted by the NT for all GoK entities. In addition, the IP processed the payments using thee-Payment system which was an online payment mechanism. 4.2 Are controls in place ' v' Controls are in 11 The IP had controls in place at different levels of preparation and concerning preparation and place concerning authorization. For instance, the requisition for purchase of goods and approval of transactions, preparation and services were raised by the user departments and approved by the heads ensuring that all approval of of the respective Directorates. The process of preparing and approval of transactions are correctly transactions, the payment vouchers was undertaken by different individuals. made and adequately ensuring that all explained? transactions are correctly made and adequately explained. 4.3 Is the chart of accounts I v' The chart of 11 IFMIS had a robust chart of accounts tailored to the nature of GoK adequate to properly accounts is expenditure categories. It was designed in such a way that enabled proper account for and report on adequate to allocation of expenditure to the appropriate costs centres in line with the activities and disbursement properly account approved estimates. categories? for and report on Area of strength activities and disbursement There was an accounting system that had a robust cha1t of accounts categories in accordance with tailored to the nature of GoK expenditme categories. the established agreements. 4.4 Are controls in place for I v' Controls are in 11 accurate cost allocations to place for accurate the various funding sources cost allocations in accordance with to the various 22 established agreements? I I I Ifunding sources in accordance with established agreements. I 4.5 Are the general ledger and v' The general 1 On reconciliation of the ledgers at the IP's Headquarters, we checked subsidiary ledgers ledger and whether IFMIS was regularly reconciled with the manual cashbook. We reconciled at least subsidiary noted these two records were reconciled to each other on a regular basis. monthly? Are explanations ledgers are Further, there was reconciliation of the cash balances as per the cashbook provided for significant Ireconciled at to the cash balances as per the cash analysis registers. reconciling items? least monthly, and explanations are provided for significant reconciling items. - 4.6 Are all accounting and v' Accounting and ' 1 1 The IP had an elaborate filing system for the finance and accounts supporting documents supporting records. These were maintained in an office accessed only by authorized retained permanently in a documents are users. defined system that allows retained The IP was guided by the Disposal Act with regards to destruction of authorized users easy permanently in a records which mostly related to receipt books used within the court access? If so, please defined system stations. The process was preceded by notices to the relevant officers and describe. that allows bodies. The subject records were verified by the Kenya National Audit authorized users Office (KENAO) Officers and final approval given by the CRJ for the easy access. I destruction to take place. Area of strength The accounting and supporting documents were maintained in a defined system that allowed access to authorized users. The destruction process was verified by the Kenya National Audit Office (KENAO) Officers and final approval given by the CRJ. 4. 7 Does the IP have policies Iv I I IThe IP has I, IThe acrounting system used by the IP was robust with capacity IO record 23 and procedures for tracking policies and transactions based on the source of funds. The system made use of and reporting United procedures for different votes where costs were charged to. Thus, there was adequate Nations resources as tracking and capacity built into IFMIS for tracking and repo1ting on different sources required in the HACT reporting United of funds based on the set financing agreements. framework? If so, please Nations describe. resow·ces as required in the HACT framework. 4b. Segregation ofduties 4.8 Are the following I Y The following 11 The expenditure processing process commenced when a requisition was functional responsibilities functional raised by a user and approved by the respective Head of Directorate performed by different responsibilities (HoD). The HoDs were the authorized as the budget holders for their units or individuals: (a) are performed by Directorates. The requisition was then forwarded to the Directorate of authorization to execute a different Finance (DoF) to check on availability of funds and commitment of funds. transaction; (b) recording units/individuals The commitment process was performed in IFMIS. of the transaction; and (c) : (a) Where it concerned procurement, the process was undertaken and upon custody of assets involved authorization to receipt and acceptance of the goods or se1vice, the purchase orders, in the transaction? execute a invoice, delivery notes or S13 fonns were forwarded to the DOF and the transaction; (b) Directorate of Accounting (DoA) for processing of payment. recording of the transaction; and Using IFMIS, the transaction was taken through examination, invoicing, (c) custody of and validation by both the DoF and DoA. These Directorates were run by assets involved in different staff hence strengthening the segregation of duties. The Chief the transaction. Accounts Controller (CAC) approved the transaction and final authorisation was given by the Chief Registrar of the Judiciary (CRJ). Area of strength The functions of authorization, recording and posting of transactions were carried out by different officers within the Directorate of Finance (DoF) and Directorate of Accounts (DoA). 24 4.9 Are the functions of I V The functions of j 1 The Supply Chain Management (SCM) was responsible for ordering using ordering, receiving, ordering, purchase orders and received the goods or verified delivery of service. The accounting for and paying receiving, SCM submitted the purchase orders, invoices, delivery notes, S13 forms for goods and services accounting for and the inspection and acceptance certificate to the DOF and the appropriately segregated? and paying for Directorate of Accounting (DoA) to process payment for the delivered goods and goods and services. These documents were compared and upon services are satisfaction all the set procedures were adhered to, the payment process appropriately would be commenced. segregated. Area of strength The IP had adequate segregation of duties in the ordering, receiving and payment for the procured goods and services. 4.10 Are bank reconciliations v Bank 11 The bank reconciliation statements were prepared by a Senior Accountant prepared by individuals reconciliations within DoA on a monthly basis. These were reviewed by the Deputy Chief other than those who make are prepared by Accounts Controller (DCAC). The final approval was given by the CAC. or approve payments? individuals other Area of strength than those who make or approve The bank reconciliations were prepared by individuals other than those payments. who made or approved payments. We noted the bank reconciliations I I I I statements for the bank accounts were up to date. 4c. Budgeting system 4.11 Do the IP's budgets lay ..; The IP's budgets 11 The provision number 12 of the Second Schedule to the Public Finance down physical and financial lay down physical Management (PFM) Act, 2012 states that, "the implementation of targets? and financial programme budgets shall commence in 2013/14 financial year for the targets. national government and in the 2014/15 financial year for the county governments constituted under Chapter eleven of the Constitution." This 4.12 Are IP budgets prepared ..; IP budgets are 11 laid down the timeframe for implementation of program based budgets in for all significant activities prepared for all government. It required inclusion of the specific activities that shall be in sufficient detail to significant carried out by a government entity in each financial year. provide a meaningful tool activities in I The annual budget of the IP showed the planned for activities and the 25 for monitoring subsequent sufficient detail proposed expenditure to implement them. pe1formance? to provide a Area of strength meaningful tool for monitoring The budgeting methodology complied with the PFM Act that required subsequent preparation of programme based budgets. Ftuther, the budget showed pertormance both the physical and financial targets. 4.13 Are actual expenditures Iv Actual 11 The management team headed by CRJ carried out regular analysis of the compared to the budget expenditures are utilization of funds by the IP. In addition, as per the PFM Act, the with reasonable frequency? compared to the Ministry submitted expenditure reports to the National Treasury and the Are explanations required budget with C-Ontroller of Budget (CoB) every qua1ter. These reports showed the for significant variations reasonable expenditure up to the relevant date against the budget to that point. from the budget? frequency, and Area of strength explanations are required for The management unde1took regular comparison and reviews of the significant budget utilization to assess the status of its implementation and progress variations from in achieving the set targets. the budget. Section 43 (2) of the PFM Act allowed the accounting officer, Principal 4.14 Are approvals required I v Approvals are I 1 prior to significant required prior to Secretary, to reallocate budgetary provision to or from a program or sub variations from the budget? significant vote provided it does not exceed ten percent of the approved estimate for variations from the concerned program or sub-vote. Any variation above 10% was required to be submitted to the National Assembly through the National the budget. Treasury in form of a supplementa1y budget. Area of strength The IP had complied with the PFM Act with regard to approval of significant variations from budget. 4.15 Does the IP have a I v The IP has a 1 The budgeting process was spearheaded by the DoF and commenced after designated individual(s) designated the receipt of the circular from the National Treasury. The circular proved responsible for preparation individual(s) the annual budgeting framework for all GoK entities. The DoF sent out 26 and approval of budgets responsible for the circular to all court stations and Directorates requiring them to related to agency funding? preparation and develop annual workplans and budget estimates. The development was approval of guided by the limit established for different sectors during the sector budgets related meetings conducted by the National Treasury. to agency Upon development of these, they were submitted to the DoF for review, funding. consolidation and submission for consideration to management team headed by the CRJ. At this point, diverse consultations were undertaken to ensure the reviewed draft estimates reflected the views of all the units. Once approved by the management team, these were subjected to public participation where the views of the public were used to fwther revise the budget. The revised estimates were then submitted to the JSC for review and authorization. Subsequent to this, the estimates were submitted to the National Assembly. At the time of the assessment, we noted the budget estimates for FY 2015/16 had already been submitted to the National Treasury. Area of strength The management had in every financial year prepared the budget estimates within the required timeline. In addition, the budgeting process was robust and involved public heatings to consider the views of the cowt users. 4.16 Are procedures in place to I .../ Procedures are in 11 The IP had robust financial management system that acted as the source plan activities, collect place to plan of data. The financial system provided historical data on the past activities information from the units activities, collect carried out by the IP. Further, the IP had a DoF tasked with preparation in charge of the different information from and monitoring of budgets. components and prepare the units in the budgets? If so, please charge of the describe. different components and prepare the budgets. 27 4.17 Are the plans and budgets Iv The plans and 11 From our overall review of the budgets and budgeting processes, we noted of activities realistic, based budgets of the related activities were carried out by individuals with experience and on valid assumptions and activities appear knowledge in public sector budgeting processes. developed by to be realistic, knowledgeable individuals? based on valid assumptions, and developed by knowledgeable individuals. 4d. Payments 4.18 Do invoice processing I v Invoice 11 The expenditure processing process commenced when a requisition was procedures provide for: processing raised by a user and approved by the respective Head of Directorate • Copies of purchase procedures are (HoD). The HoDs were the authorized as the budget holders for their orders and receiving sufficient, Directorates. The requisition was then forwarded to the Directorate of reports to be obtained including: Finance (DoF} to check on availability of funds and commitment of funds. directly from issuing receiving copies The commitment process was performed in IFMIS. of purchase depa1tments? Where it concerned procurement, the process was undertaken and upon orders and • Comparison of invoice receipt and acceptance of the goods 01· service, the purchase orders, receiving reports quantities, prices and invoice, delivery notes or S13 forms were forwarded to the DOF and the directly from terms with those Directorate of Accounting (DoA} for processing of payment. indicated on the issuing purchase order and depa1tments; Using IFMIS, the transaction was taken through examination, invoicing, with records of goods comparing and validation by both the DoF and DoA. These Directorates were nm by actually received? invoice different staff hence strengthening the segregation of duties. The Chief quantities, prices Accounts Controller (CAC) approved the transaction and final • Checking the accuracy and terms with authorisation was given by the Chief Registrar of the Judiciary (CRJ). of calculations, if any? those indicated Area of strength on the purchase order and with The functions of authorization, recording and posting of transactions were records of goods carried out by different officers within the Directorate of Finance {DoF) actually received; and Directorate of Accounts (DoA). and checking the 28 accuracy of calculations (if any). 4.19 Can the IP identify tax- I v The IP has the I 1 The accounting staff had the capacity and experience to identify activities exempt activities to ensure ability and that were tax exempt. tax is not paid? experience to indentify tax exempt activities and ensure tax is not paid. 4.20 Are all invoices stamped I -./ Invoices are 11 We reviewed the payment vouchers and the supporting documents and 'PAID', dated, reviewed and stamped 'PAID', noted these were stamped as paid and allocated to the correct budget approved, and clearly dated, reviewed codes in the relevant ledgers. In addition, there were various stamps marked for account code and approved, where one had the 'paid' and were used by each level of review to signify assignment? and clearly the performance of each of the IFMIS processes. marked for Area of strength account code assignment. The payment vouchers and their supporting documents were stamped 'paid', dated, reviewed and approved, and posted to the appropriate items lines within the sub-votes. 4.21 Do controls exist for I v Controls exist for 11 The payroll was prepared by the staff within Directorate Human Resource preparation and approval the preparation and Administration (DHRA). It was reviewed and approved by the HoD of of payroll expenditures? and approval of DHRA and submitted to DoF and DoA for processing through IFMIS. Are changes properly payroll authorized? If so, please expenditures and There were thus adequate conb·ols over the payroll processing and approval for payment. describe. changes are properly authorized. 4.22 Do controls exist for I -./ Controls exist for 11 The IP used the GoK circular on payment of per-diems. This was set by expense categories that do expense the national government and was applicable for all GoK institutions. not originate from invoice categories that do 29 payments, such as DSA, not originate Area of strength travel, consultancies? from invoice The IP used the GoK per-diem guidelines when giving allowances to staff payments, such for field acthities outside of their duty stations. as DSA, travel, consultancies. 4e. Policies and procedures 4.23 Does the IP have a single I v The IP has a 11 The IP used an accrual basis of accounting under the International Public stated basis of accounting single basis of Sector Accounting Standards (IPSAS). This approach was based on the (e.g., cash or accrual)? If so, accounting. guidelines on financial accounting and rep01ting issued by the National please describe. Treasury. 4.24 Does the IP have an I v The IP has an 11 The internal control framework in the public financial sector in Kenya was established accounting established governed by the Public Finance Management (PFM} Act. The PFM Act manual sufficient to ensure accounting was enacted after promulgation of the Constitution of Kenya, 2010 hence control of assets and proper manual sufficient the Government Financial Management Regulations (GFMR) that existed use of agency funds? Are to ensure control until then were repealed. The new PFM Regulations were gazetted internationally accepted of assets and through Legal Notice No. 34 dated 20 March 2015. accounting standards proper use of Area of strength followed? If so, which agency funds. standard? This manual There IP was governed by robust internal control framework underpinned follows an in the PFM Act and the new PFM Regulations gazetted through Legal internationally Notice No. 34 dated 20 March 2015. accepted accounting standard. 4.25 Does the IP have an I v The IP has an 11 adequate policies and adequate policies procedures manual to guide and procedures activities and ensure staff manual to guide accountability? If so, please activities and describe. ensure staff 30 4.26 Do procedures exist to 'v I The IP has 11 ensure that only authorized procedures in persons can alter or place to ensure establish a new accounting that only principle, policy or authorized procedure to be used by the persons can alter IP? or establish a new accounting principle, policy or procedure. 4.27 Are there written policies v There are 11 and procedures covering all accessible written routine financial policies and management and related procedures administrative activities? covering all Are these accessible? Please routine financial describe. management and related administrative activities. 31 4.28 Do policies and ...; The IP has well- 1 The guidelines on the conflict of interest and related pa1ty transactions procedures clearly define defined policies were contained in the various laws and regulations in Kenya. For instance, 'conflict of interest' and and procedures the Public Procurement and Disposal (PPD) Act made it an offence to fail 'related party transactions' fo r 'conflict of to disclose an instance of conflict of interest in a matter where the affected (real and apparent) and interest' and officer was participating in. Such an officer was required to refrain from provide safeguards to 'related party participating in the decision making in relation to the affected matter. protect the organization transactions' Fmther, the Public Officers Ethics Act provided for the expected standard from them? If so, please (real and of conduct required for public officers. The staff were also guided by the describe. apparent} that Code of Ethics of the Judiciary issued by the Judicial Service Commission provide adequate (JSC). It provided the expected standard of behaviour and conduct of safeguards to judiciary staff. protect the organization Area of strength from them. The IP was governed by the various laws, regulations and guidelines that provided guidelines on the management of conflict of interest by j udicia1y staff and other expected standard of behaviour and conduct for public officials. I 4.29 Are manuals distributed to v Manuals are 1 The staff were issued with the Code of Ethics upon joining the JSC. In appropriate personnel? If distributed to addition, the various laws and regulations governing public financial so, please describe the appropriate management were available on the website of the Law Repo1ting Council manuals and the personnel personnel. of Kenya. who receive them. 4f. Cash and banks 4.30 Are there authorized ...; The IP has 1 At the headquarters, the payment process at the IP was performed signatories on the bank signatories on through an e-payment system. The final payment instructions were issued accounts that will be used the bank by through the system by at least two authorized signat01ies from both for United Nations accounts that will DoFandDoA.. resources? How many be used for The authorized bank signatories were: signatories are on the bank United Nations account and how many are resources and • Director of Finance (DoF) and the Deputy DOF; 32 required to execute more than one • Chief Accounts Controller (CAC) and Deputy CAC; and transactions? If so, provide signatory is names. required for each • The Chief Registrar of the Judiciary (CRJ). transaction. Area ofstrength There were defined signatories to the bank accounts and a operational mandate established. 4.31 Does the IP maintain an I v' The IP maintains 11 We reviewed the cashbook and noted that it was up to date and was adequate, up-to-date an adequate, reconciled to the IFMIS system. cashbook, recording up-to-date receipts and payments? cashbook, recording receipts and payments. 4.32 Do controls exist for the I v' Controls exist for 11 The IP had designed controls over the process of receiving payments from collection, timely deposit the collection, the public. These related to cash from court fines, cash bails by court and recording of receipts at timely deposit suspects and security deposit for cases among others. each collection location? If and recording of so, please describe. receipts at each collection location. 4.33 Are bank balances and I v' Bank balances 11 We noted there was regular reconciliation of the bank accoW1t balances to cash ledger reconciled and cash ledgers the cashbook bank balances. monthly and properly are reconciled approved? Are explanations monthly and provided for significant and properly unusual reconciling items? approved. Significant and unusual reconciling items are explained. 33 4.34 Are agency resources be ...; Agency resources 11 The management explained that donor resources were managed through placed in a separate bank are placed in a the cu1Tent bank accounts opened if required by the financing agreement. account? separate bank account. 4.35 Are cash and checks I v Cash and checks 11 The IP did not operate using cheques as it had adopted internet banking. maintained in a secure are maintained in For petty cash, each Directorate had a float that was operated on a location? Has access been a secure location reimbursement basis. The cash was kept in safes. The reimbursement was properly designated and and access has authorized by the CRJ upon satisfaction the previous petty cash was maintained? been properly accounted for. designated and The staff advances for duties outside of their duty stations were processed maintained. through the individual staff bank accounts. Area of strength The IP had adopted an internet banking system that minimized use of cash payments for items such as staff advances for field work out of the duty stations. 49.Safeguardsforassets 4.36 Is there a system of ...; The IP has a I 3 The Directorate of Supply Chain Management (SCM) was in charge of the adequate safeguards to system of management of assets. However, we noted that there were no protect assets from fraud, adequate comprehensive records maintained detailing all the assets of the waste and abuse? If so, tour safeguards to Judiciary. Consequently, the assets were not tagged. the facility to ensure the protect assets For the UNDP funded programme, we established a comprehensive assets system has been from fraud, waste register was maintained. implemented and followed. and abuse. 1------1-----1--+----+------1-----i The management indicated that the JPIP programme had run an advert 4.37 Are subsidiary records of ...; Subsidiary J 4 for procurement of asset verification and documentation services. We fixed assets and inventory records of fixed also noted that Committee of the Judiciary had undertaken a pilot kept up to date and assets and verification process targeting High Court stations. reconciled with control inventory are We noted access to the IP's premises was restricted and identification accounts? If so, please kept up to date 34 describe. r ~d reconciled documents were required to gain access. In _addition, the offices where I I I I With control I Iassets were kept were under lock when not m use. accounts. Areao f s tren&u• ...... 4.38 Are there periodic physical ...; The IP performs I 3 The IP has a system to protect the assets from unauthorized removal from inventories of fixed assets periodic physical the premises. Additionally, a comprehensive assets register was and stocks? If so, please inventolies of maintained for the UNDP funded programme. describe. fixed assets and Area for improvement inventory. There were no comprehensive records showing all the assets belonging to the Judiciary. In addition, the management did not carry out verification of assets. 4.39 Are fixed assets and v The IP's fixed 11 The GoK policy was that it did not insure its assets and as such no inventory adequately assets and budgetary provision was made for insurance of assets by the Judiciary. covered by insurance Iinventory are policies? adequately covered by insurance policies. 4h. Other offices or entitiesa 1 4-40 Do any other Iv If the IP has 11 Each court station had a workplan and a budget. The funds were offices/entities participate other disbursed to the court stations the on a quarterly basis to their respective in implementation? If so, offices/entities bank accounts. They were then issued with Authority to Incur does the IP have policies participating in Expenditure (AIE) appointing the budget 01· AIE holders. These were and process to ensure implementation, controlled by the requirement that previous quarterly disbursement had appropriate oversight and there are to be accounted for before additional funds were sent for the subsequent monitoring of adequate policies quarter. implementation? and procedures Area of strength to ensure 2 This refers to sub-offices of the IPs or other parties. 35 appropriate The management had established a procedure that required surrender of oversight and previous quarter funds before disbursement of additional funds to the monitoring of court stations. implementation. The IP also has experience with this process. 4.41 Does information flow I v Information 11 among the different flows among the offices/entities in an different accurate and timely offices/entities in fashion? If so, please an accurate and describe. timely fashion. 4.42 Does the IP have a process I V The IP has a 11 The JSC was in charge of governance issues for the Judiciary. As such it in place to evaluate the process in place handled all matters relating to negative publicity in conjunction with the impact of any deficiencies to evaluate the CJ, CRJ and the Directorate of Public Affairs and or negative findings impact of any Communication (DPAC). This approach was meant to ensure only identified through deficiencies or authorised officers relayed information to the general public and the other reporting or discussions negative findings relevant stakeholders. with the other identified offices/entities? If so, through describe the process. reporting or discussions with the other offices/ entities. The IP also has experience with this process. 4.43 Does the IP maintain v IThe IP maintains IN/A The IP did not have entities that were not part of its structure. contractual agreements current with other offices/ entities? contractual agreements with 36 other offices/ entities. 4,44 Does the IP have a process v' The IP has a 11 The court stations operated based on the approved estimates and to ensure expenditures of process to ensure workplans and such, their operations were regulated through the normal other offices/entities are in expenditures of budgeting and expenditure processes of the Judiciary. compliance with the work other plan and/or contractual offices/ entities agreement noted in item are in compliance 4,43? with the work plan and/or contractual agreements. I 4i. Other 4,45 Has the IP advised v' The IP has 11 The CJ had set up the Office of the Ombudsman of the Judiciary (OtOJ) employees, beneficiaries advised and the office holder reported to the CJ. The Ombudsman jurisdiction and other recipients to employees, entailed receiving complaints by the staff of the Judicia1y and also the whom they should report if beneficiaries and general public. The Office had a dedicated short messaging service (SMS), they suspect fraud, waste or other recipients a dedicated channel on the IP's website, telephone number, email and misuse of agency resources to whom they postal address through which complaints could be submitted to OtOJ. or property? should report if they suspect Further, the IP was a public entity and as such, it was subject to the Public fraud, waste or Officers Ethics Act and all the anti-corruption related laws. Thus, the staff misuse of agency were required to comply , 37 waste or misuse of resources or prope1ty could be reported and addressed. 4.46 Ifyes to item 4.45, does v The IP has a 11 Area of strength the IP have a policy against policy against The Judiciary was the host of the Witness Protection Agency which was a retaliation for those who retaliation for statutory body established by an Act of Parliament. The body was charged report fraud, v.raste or those who report with protection of witnesses and whistleblowers. misuse of agency resources fraud, waste, or or property? misuse of agency resources or property. . ,,,.,,1 I Total number ofquesti.ons 146 1- -1 in subject area: Number ofquestions 11 marked 'N/A' in subject area: Total number ofapplicable 45 questi.ons in subject area: I l -- Total number ofrisk i1-Lowrisk points: rs$ Accounti.ng policies and Divide total nwnber of risk points by total number of applicable questions pt•ocedures overall risk in subject matter section. assessment: This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. S·· InternalAudit 38 5.1 Is the internal auditor -I The internal 2 The IP had an Internal Audit Depa.Itment (IAD) headed by the Chief sufficiently independent to auditor is Internal Auditor (CIA) of the Judiciary. Before August 2013, the Judiciary make critical assessments? sufficiently did not have an IAD of its own. Instead, it relied on the Internal Auditors To whom does the internal independent to from the Internal Auditor General, an Office within the National Treasury. auditor report? make critical However, this changed in August 2013, when the Judiciary established an assessments. in-house IAD and commenced recruitment of staff. At the time of the assessment, we established that administratively, the CIA reported to the Director of the Directorate of Finance (DDoF). Functionally, the CIA reported to the Internal Audit Committee (IAC) of the Judicial Service Commission (JSC). The internal audit reports were also shared with the CRJ, the management of the entity subject to the audit and the relevant stakeholders within the IP. We also noted that the IAD did not have an operational budget in financial year 2013/14 and 2014/15. It thus relied on the financial support from the DoF. The management of the IAD indicated it had received adequate support from the DDoF. Areas of strength • The IP had established an Internal Audit Department. • The IP had an Internal Audit Committee (IAC) whose membership was dravm from the JSC Commissioners. Functionally, the IAD reported to IAC. Areas for improvement However, we noted the following weaknesses with the current structure of the IAD: • The IAD did not have an approved structure clearly defining the reporting the administrative and functional reporting framework as well as the internal repo1ting processes within the department. • Administratively, the CIA reported to the Director of the Directorate of Finance (DDoF) who ideally headed an internal entity subject to 39 internal audit reviews. This was not in compliance with section 73 (4) of the PFM Act which required internal audits to be conducted in accordance with international best practices. • The IAD did not have a separate budget of its own and had to request for financial support from the DDoF. This meant the CIA was not the budget holder for his depaitment This had the potential to affect the operational independence of the IAD. 5.2 Does the IP have stated v' The IP has stated 3 The IP recruited the IAD staff competitively and they possessed the qualifications and qualifications required qualifications and were sufficiently experienced. The CIA and experience requirements and experience the 2 Senior Internal Auditors possessed masters' degrees and had the for internal audit requirements for Certified Public Accountant of Kenya (CPA-K) qualifications. department staff? If so, internal audit The department had a total of 8 staff. However, the management please describe. department staff. indicated the department required 36 additional staff to function optimally as per the outcome of the staffing survey carried out for three months from June 2014. In terms of the physical resources, we established the staff did not have laptops, audit software's or docwnentation platfonn and the relevant audit tools. They largely relied on their personal computers to perform their duties hence exposing their work to potentially unauthorized access. Additionally, the lAD did not have adequate office space. Areas of strength • The lAD staff were recruited competitively. • The lAD staff were qualified and possessed the appropriate mix of experience. Areas for improvement • The department had only 8 staff compared to the staff establishment of 44 staff members required for optimal performance. 5.3 Will the activities financed I v' The activities 1 The lAD reviewed all the funds utilized by the Ministry irrespective of the 40 by the agencies be included financed by source. This meant donor funds were under the scope of the IAD. in the internal audit agency funds will department's work be included in programme? the internal audit department's work programme. 5-4 Does the internal auditor v The internal I 2 The lAD had adopted a risk based approach in the performance of have policies and auditor has internal audit reviews. It has performed a risk assessment over the procedures to take action policies and operational processes of the Judiciary. The identified risks were ranked as on findings identified? procedures to informed the preparation of an annual workplan prioritizing the processes take action on identified as risky. The workplan for financial year 2014/15 had been findings approved by the Internal Audit Committee (!AC). The deparbnent had developed the !AD service charter and the !AC had approved it. identified, if any. However, the lAD did not have a separate and comprehensive internal audit manual in place at the time of the assessment. Instead, the set up w-as described in the Finance Manual. Ideally, the manual was required to specify the standard audit procedures within the Judiciary to guide the staff. The harmonized procedures would essentially promote quality of the internal audit reviews. Areas of strength • The !AD had adopted a Iisk based audit approach in planning and execution of internal audit reviews. The adoption was facilitated by performance a risk assessment over the operational processes of the Judiciary. • The IAD had developed a workplan for 2014/15 and the service charter for operational guidance. Area for improvement At the time of the assessment, the lAD did not have a separate internal audit manual setting out the standard operating procedures to guide the staff in the performance of the internal audit reviews. 41 5.5 Does the IP appear to have I v The IP appears to I 2 There were adequate internal controls and the IAD carried out regular strong internal controls to have strong reviews to check these implemented effectively. We thus discussed with ensure funds are expended internal controls the management some of the areas where weaknesses were noted. We for their intended purpose, to ensure funds have listed some of the recurring audit observations below. to discourage and prevent are expended for • The cash meant for bails and fines was manually receipted which improper use of funds, and the intended exposed it to abuse. The management indicated where this was noted, to safeguard assets? If so, purpose, the culpable staff were subjected to disciplinary processes and the please describe. discourage and appropriate sanctions meted out. prevent improper use of funds, and • There was no approved and documented organisational structure for safeguard assets. the Judiciary with regard to the service and functional department. • The IP did not have an assets register that could be used to track and monitor the assets belonging to the Judicia1y. This meant there were no harmonized processes for recording of assets upon purchase, issue to user and surrender of the same upon transfer or disengagement from the Judida1y. Area of strength The IAD carried out regular internal audit reviews and issued reports with the appropriate recommendations. Area for improvement The management should implement the recommendations contained in the internal audit reports issued by the IAD. Total number ofquestions I 5 in subject area: Number ofquestions I o marked 'N/A'in subject area: Total number ofapplicable 110 questions in su~ect 42 Total number ofrisk ~ 2-Moderate points: risk Internal audit overall risk Divide total number of risk points by total number of applicable questions assessment: in subject matter section. This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. 6. Financial.Audit 6.1 Are the IP's specific Iv The IP's specific 11 The financial statements were audited by the Kenya National Audit Office financial statements financial (KENAO) headed Auditor General as required by the Public Audits Act, audited regularly by an statements are 2003 and the Constitution of Kenya. We noted the audit was carried out independent auditor? If so, audited regularly for each financial year. please describe the auditor. byan Area of strength independent auditor. The financial statements were regularly audited by the Auditor General as required by the law. 6.2 Are there any delays in I v There are no I 2 There were no significant delays in the audits for the past 3 years. At the audit of the IP? When are delays in audits time of the assessment, the audit for FY ended 30 June 2014 had been the audit reports issued? of the IP's finalized and a draft report shared for comments. However, the external financial auditor had not complied with the constitutional requirement that the statements, and audit report should be submitted to the National Assembly by 31 March of the financial eve1yyear. statements are issued within a Area for improvement reasonable The external auditor had not complied with the constitutional amount of time. requirement that the audit report should be submitted to the National Assembly by 31 March of eve1y year. 43 6.3 Is the audit of the I P's 1 I The Auditor General carried out the audit in accordance with the financial statements International Standards on Auditing (ISAs). conducted according to the statements are International Standards on conducted Auditing? according to the International Standards on Auditing. 6.4 Were there any major I .../ No major 2 I The e>..1ernal auditor had qualified the opinion over the financial accountability issues accountability statements for the financial year 2013/14. The qualification was based on brought out in audit repo1ts issues were the lack of an assets register for the judiciary leading to non-compliance of the IP over the past three brought out in with some of the International Public Sector Accounting Standards years? audit reports of (IPSAS) reporting requirements. the IP over the We also noted an audit was carried out by Ernest & Young (E&Y) on the past three years. financial statements of the UNDP funded programme. We inspected the repo1t and noted an unqualified opinion issued and no internal control 01· operational weaknesses were noted. Area of strength The audit of the UNDP funded programme resulted in an unqualified opinion and no internal control or operational weaknesses were noted. Area for improvement The management should implement the audit issues resulting in qualification of the financial statements. 6.5 Will the auditor audit the ...; The auditor will 1 I The audits carried out by KENAO focused on all financial operations of accounts related to the audit the the IP. work plan or other accounts related Area of strength contractual agreements to the work plan 44 with the agency? If not, will or other The external auditor, KENAO canied out an audit for all financial a separate auditor be contractual operations of the IP and as such, any grant funds were subjected to an appointed to audit the work agreements with annual external audit process. plan financial statements? the agency. 6.6 Haveany ...; All 1 The management was committed to implementation of the audit findings recommendations made by recommendation contained in the audit reports. At the time of the assessment, we noted the auditors in the prior three s made by the management was in the process of procuring a consultant to undertake an audit reports and/or auditor in the assets verification and docwnentation exercise. management letters not yet prior three audit been implemented? rep01ts and/or management letters have been implemented. 6.7 Histmically, has the IP ...; The IP has 1 The timing of the annual audit was regulated by the Public Audit Act and prepared audit plans? historically the Constitution of Kenya, 2010. The IP was obligated to submit the prepared audit financial statements to KENAO by 30 September of every financial year. plans. On its part, KENAO was required to audit and issue the audited financial statements within six months from 1 October of every year. I ! Total number ofquestions 17 I in subject area: I I - Number ofquestions 10 marked 'N/A~ in subject area: Total number ofapplicable I 7 questions in subject area: Total number ofrisk 12 points: - Financial audit overall Li I I 1-Lowrisk I Divide total number of risk points by total number of applicable questions 45 This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. 7. Reporting and Monitoring 7.1 Are financial statements I v Financial 1 I The IP had prepared financial statement on its operations for the last 3 prepared specifically for the statements are years. The financial statements were prepared in accordance with the IP? prepared standard formats provided by the National Treasmy. specifically for These were submitted to the Auditor General and the National Treasury the IP. by 30 September of every financial year. Area of strength The financial statements of the IP were prepared in accordance with the guidelines provided by the National Treasury and submitted to the Auditor General and the National Treasury by 30 September of every financial year. 7.2 What is the frequency of Iv I Financial 1 I The financial statements were prepared for every financial year and the preparation of the financial statements of the closing period was 12 months to 30 June. statements mentioned in IP are prepared 7.1? Are the repo1ts on a frequent prepared in a timely basis so they are fashion so they are useful to useful to management for decision management for making? decision-making. 7.3 Does the reporting system I v The reporting 2 I The financial and programme progress reports were prepared manually have the capacity to link the system has the outside of the accounting system. Despite the rep01ting system lacking financial information with capacity to link capacity to link the financial information with the work plan's physical the work plan's physical the financial progress, the accounting system was set up on the basis of the programme progress? If separate information with budget lines which made the manual linking up possible. systems are used to gather the work plan's 46 and compile physical data, I physical what controls are in place progress. to reduce the risk that the I I I physical data may not synchronize with the financial data? 7A Does the IP have v The IP has 1 The PFM Act specified the reports required to be prepared by public established financial established entities on a quarterly basis and annually. These were the income and management reporting financial expenditure or appropriation accounts required for quarterly and annual responsibilities that specify management reporting to the National Treasury, CoB and KENAO. The overall what reports are to be reporting responsibility over the financial reporting process rested on the Chief prepared, what they are to responsibilities Registrar of theJudicia1y (CRJ) who was the Accounting Officer of the IP. contain and how they are to that specify what IIn this process, the CRJ was closely assisted by the Chief Accounts be used? If so, please reports are to be Controller (CAC) of the Directorate ofAccounts (DoA). describe. I prepared, what they are to contain and how they are to be used. 7.5 Does the IP have financial v The IP has 1 The IP prepared quarterly expenditure reports and these were submitted repo1ts that compare actual financial reports to the NT and CoB. These showed an analysis of the expenditure against expenditures with budgeted that compare the budget. Additionally, the IFMIS system processes ensured the and programmed actual management could generate reports on budget against expenditure allocations? expenditures analysis at any point in time. with budgeted and programmed allocations. 7.6 Are financial reports v Financial reports I 2 I See section 7.3 above prepared directly by the are prepared automated accounting directly by the system or are they prepared automated I 47 using spreadsheets or some accounting other means? system or using spreadsheets (or some other means) that are properly reviewed and approved. 7.7 Does the IP appear to have v The IP appears I NI A The IP was public entity and received budgetary support from GoK on been solvent (i.e. total to have been an annual basis. The support was to finance all its operations. assets greater than total solvent (i.e. total liabilities) for the past three assets greater fiscal years? Are there any than total unexplained or ongoing liabilities) for inconsistencies? the past three Provide the amount of total fiscal years. assets and total liabilities for the current and prior fiscal year. 7.8 Do the IP's total v The IP's total IN/A The IP was public entity and received budgetary support from GoK on an revenues/contributions revenues/contri annual basis. This support financed all the core operations of the IP. it exceed its total butions exceed was one of the three arms of the GoK and thus, its budgetary suppo1t was expenditures over the past its total a direct charge on the Consolidated Fund of the Republic of Kenya. three fiscal years? Have the expenditures in IP's contributions been the past three contracting (i.e. dwindling) fiscal years, and over the past three years? If its contributions so, why and how will the have not been organization address this contracting in issue? the past three fiscal years. Provide the amount of 48 total revenues/contributions and total expenditures for the cun-ent and priorfiscal year. Total number ofquestions I 8 in subject area: Number ofquestions I 2 marked 'N/A' in subject area: Total number ofapplicable I 6 questions in subject area: Total number ofrisk g points: Reporting and monitoring 1-Lowrisk Divide total number of risk points by total number of applicable questions overall risk assessment: in subject matter section. il This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. 8. Information Systems 8.1 Is the financial Iv The financial 1 The IP used IFMIS which w-as an automated accounting system. Access to management system management this system was restricted. A person intending to get access to it had to computerized? If so, does system is make a request through the CAC to the National Treasury (IFMIS the IP have policies and computerized Secretariat) for grant of user rights within IFMIS. procedures to maintain this and properly system? maintained. IFMIS was an online system where transactions were posted and 49 8.2 Does the IP have policies y The IP has 1 uploaded onto the server in real time. It was hosted by the National and procedures to restrict policies and Treasmy. The system runs on the Government Common Core Network access to the computerized procedures to (GCCN) which is a partnership between Telkom Kenya and the National financial management restrict accesses Treasmy. system to appropriate to the personnel? Ifso, please computerized IIt was backed up continuously using the national redundancy backbone supported by NT. describe them. financial I management Areas of strength system to the I I appropriate The IP used IFMIS which was an automated accounting system to record personnel. I I the financial transactions. Access to this system was restricted and was granted after a request was made to NT through the set procedure for grant of access and login ci·edentials. Fu1ther, the data processed through IFMIS was updated in real time and continuously backed up. 8.3 Can the computerized The 12 I Manual reports were prepared as described in section 7.3 above. financial management computerized system produce the financial necessary financial reports? Y management system can produce the necessary financial reports. 8-4 Are IP staff adequately IP staff are 1 The Finance, Accounts, and Supply Chain staff were trained on how to use trained to maintain the adequately the system. The training was organised by the IFMIS Secretariat, an office computerized financial trained to ,vithin the National Treasury. management system? y maintain the On I CT staff, the management had determined that to satisfy the computerized requirements of the new ICT policy for the Judiciary, more specialized financial staff with higher qualifications who could act as database administrators management were required. system. 50 8.5 Does the IP have The IP has j 2 Confidentiality of data appropriate safeguards to appropdate ensure the confidentiality, safeguards to There was proper management of access to IFMIS that required use of integrity and availability of ensure the passwords and usernames allocated by the National Treasury. The the data? If so, please confidentiality, computers used to access IFMIS were not used for any other purpose and describe them. integrity and all other internet connections func.tionalities were disabled. availability of the data. Access to the computers at the IP required password and user names. There were also guidelines on the frequency of change of passwords and the specified the minimum length of passwords. There were also defined basic requirement in relation to characters used to set the passwords. Integrity of JCT systems The computer systems were protected against harmful malware by Kaspersky antivirus. There was also restricted access to the server room. v Availability/recoverability of data IFMIS was an online system where transactions were posted and uploaded onto the server in real time. It was hosted by the National Treasury. The system runs on the Government Common Core Network (GCCN) which is a partnership between Telkom Kenya and the National Treasury. It was backed up continuously using the national redundancy backbone supported by the NT. Areas of strength • IFMIS was an online system accessed only by authorised users and was continuously backed up. • There was use of an anti-vims system to prevent unauthorised intrusion into the I P's ICT network. • There were set requirements for regular change of passwords, length 51 of passwords and the characters to be used. Areas for improvement The IP did not have adequate ICT staff with the specialisations required to operate as effective ICT administrators. Total number ofquestions I 5 in subject area: Number ofquestions I o marked 'N/A'in subject area: Total number ofapplicable I 5 questions in subject area: .:.. Total number ofrisk 17 points: e-j- ~ - Information systems l 1-Lowrisk Divide total number of risk points by total number of applicable questions overall risk in subject matter section. assessment: This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. 9. Procurement 94- (lftneral 9.1 Has the IP undertaken a I -./ The IP has 1 I The IP was implementing the Judicial Performance Improvement Project procurement exercise with undertaken a (JPIP) that was financed by the World Bank (WB). At the time of the 52 United Nations/ World procurement assessment, the IP had advertised for procurement of a consultant to Bank/ European Union exercise with carry out an assets verification and documentation to be financed by the resources in the past? If so, UN/WB/EU JPIP. The programme also financed construction of comts. please describe it. resources in the past. The processes around these procurements were subject to the procurement procedures of the WB. The donor performed half yearly visits to assess the status of implementation and compliance with the agreed upon policies and procedures. 9.2 Has the IP been audited by v The IP has been IN/A The IP had not been audited by ECHO. ECHO and selected as a audited by Framework Pa1tnership ECHO and Agreement partner as per: selected as a http://ec.europa.eu/echo/fi Framework Jes/partners/humanitarian Partnership aid/fua partners.pdf Agreement partner. 9.3 Has the IP been audited by v The IP has been IN/A The IP had not been audited by ECHO. ECHO and selected as a audited by Humanitarian Procurement ECHO and Centre partner as per: selected as a http: //ec.europa.eu/echo/fi Humanitarian les/pa1tners/humanitarian Procurement aid/HPC-register en.pdf Centre partner. 9b. Procurement principles, policies and procedures 9-4 Does the IP follow I ...; The IP follows 11 The IP was a public entity hence obligated to comply with the provisions acceptable United Nations acceptable of Public Procurement and Disposal (PPD) Act and PPD Regulations. procurement principles? United Nations Do these principles However, there was a provision that where the procedural requirements procurement promote broad specified in these laws were on conflict with those of the donor, the donor principles. participation from potential procedures prevailed. bidders? If so, please Area of strength 53 desclibe them. The IP benefitted from the national laws that were flexible enough to incorporate donor procurement practices as available options that could be used for procurements financed using donor funds. 9.5 Does the IP have written ...; I I I The IP has 11 The IP was a public entity hence obligated to comply with the provisions procurement policies and wiitten of PPD Act and PPD Regulations. These laws described the required procedures? procurement policies and procedures, procurement methods, thresholds, required policies and procurement committees. If yes, please provide a procedures. copy. Ifno, please attach Area of strength an outline ofthe tender The IP was subject to and strove to comply with the national laws and procedures specifying the regulations governing public procurement activities. different procurement procedures, related thresholds and methodology/or the assessment of tenders. 9.6 Does the IP have a specific I ../ The IP has a I 3 The Public Procurement Oversight Authority (PPOA) had developed a code of procurement specific code of code of ethics for all procurement officers within the public procuring ethics? procurement entities. The code was posted on the website of the PPOA and was ethics. applicable at the IP. It governed the conduct of these officers in Please attach copy of the undertaking their mandate. code. However, the IP did not have a specific code of conduct and ethics with regards to procurement activities. The management infonned us the tenns of reference were developed for preparation of this code and the process would be carried out by an external consultant. This initiative was supported by the JPIP programme. Area of strength The IP relied on the ethical framework enshrined in the code of ethics prepared by PPOA for the procurement officers of the public entities. Area for improvement The IP did not have a specific code of conduct and ethics with regards to 54 procurement activities. 9.7 Does the IP have a specific I y The IP has a 1 The CJ had set up the Office of the Ombudsman of the Judiciary (OtOJ) anti-fraud and corruption specific anti and the office holder reported to the CJ. The Ombudsman jurisdiction policy? Ifso, please fraud and entailed receiving complaints by the staff of the Judiciary and also the describe it. corruption general public. The Office had a dedicated short messaging service (SMS), policy. a dedicated channel on the IP's website, telephone number, email and postal address through which complaints could be submitted to OtOJ. Further, the IP was a public entity and as such, it was subject to the Public Officers Ethics Act and all the anti-corruption related laws. Thus, the staff were required to comply with the provisions of these laws. The staff could repo1t instances of fraud, waste or misuse of resources through the mechanisms set up by these laws. There were anti-corruption drop boxes and suggestion boxes within the IP's premises through which instances of fraud, waste or misuse of resources could be reported. Area of strength The management had set up mechanisms such as the Office of the Ombudsman of the Judiciary (OtOJ), drop boxes and suggestion boxes to report on fraud and corruption within the Judiciary. 9.8 Do the IP's procurement v The IP's 11 The procurement laws provided for a review mechanism by the Public rules and regulations procurement Procurement Administrative Review Board (PPARB) where dissatisfied contemplate a fair and rules and bidder could lodge a petition. We leant the IP did not have any ongoing impartial mechanism for regulations revision of procurement petition against it and had not lost any of the petitions filed in the past protests? contemplate a against it. fair and impartial mechanism for revision of procurement protests. 55 9.9 Does the IP frequently The IP does not 11 The Tender Committee was mandated to consider for approval all the override purchasing frequently requests for single sourcing. This was as per the provisions of PPD Act procedures without proper override the and PPD Regulations. The use of single sourcing method was limited to authorization? purchasing specific circumstances as specified by section 74 of the PPD Act. The procedures method was thus used only when: without proper • There was only one supplier of certain goods and services; authoiization. • There was no reasonable alternative or substitute of the required 1--~~~~~~~~~~~-1-~---.~~+-~-l-~~~~~~~1--~~~ goods or services; and 9.10 Are exceptions to I v Exceptions to 11 procedures documented procedures are • An urgent need arose which made use other procurement methods impractical and the need could not have been foreseen upon exercise and sent to management documented and for approval? Are the sent to of reasonable effort. exceptions periodically management for The management explained this method was rare and whenever it was analysed and corrective approval. applied, justification had to be provided to the Tender Committee actions taken? Exceptions are beforehand for approval. periodically Area of strength analysed and corrective actions The management ensured the procurement methods used at the IP are taken. complied with the provisions of the procurement laws and regulations. Any proposals for deviations were approved prior to occurrence of the procurement event. 9c. Internal control system 9.11 Does the IP have a I y The IP has a 1 The IP had a Procurement Committee in each of the procuring entities. procurement committee for procurement These adjudicated procurements up to Kshs 500,000. The procurements review and approval of committee that above this threshold were adjudicated on by the Tender Committee (TC). contracts? If so, please reviews and specify composition of The TC was made up of the Heads of Directorates and Registrars of the approves committee. Court of Appeal, High Court and the subordinate courts. However, the contracts. Directorate of Performance Management (DPM) was not represented in the TC as one of its tasks was assessing the pe1formance of TC. Area of strength The IP had established committees charged with ensuring procurement 56 activities were adjudicated on as set out by the procurement laws and regulations. 9.12 Does the IP identify the Iv The IP has 11 The procurement thresholds were specified by the procurement laws requested authorizations defined which also indicated the body responsible for procurement for each for each value level of authorization procurement threshold. purchases? At what value guidance and does the IP require written policies and For instance, the IP was allowed to single source for goods and services authorization of senior procedures to whose value was less than USD 327 (Kshs 30,000/92). Procurements management for a purchase above USD 327 and USO 5,435 used the 3 quotations approach and above (value in US dollars)? ensure they are properly applied. this, open tendering or restricted tendering was undertaken by the Tender Committee. 9.13 Does the IP use standard Iv' The IP utilizes 11 There were standard templates used by the IP for bidding documents and bidding documents and standard bidding contracting with the successful bidders. These documents were obtained contracts? documents and by the IP from PPOA's website. We noted these were used in the contracts. procurement processes such as tender notices and contracts with 1 suppliers. 9.14 Do the procurement v The procurement 1 procedures and templates procedures and Area of strength of contracts integrate templates of The IP made use of the standard bidding docmnents and contracts references to e~i~ contracts provided by the PPOA. procurement pnnc1ples and . t t . d . Ii 'bil' m egra e excl us1on an me g1 1ty ~ t ·ten'a? 1 re1erences o en . e th'1ca I procurement principles and exclusion and ineligibility criteria. 9.15 Does the IP obtain I v' The IP obtains 1 The contracts entered into by the IP were executed by the Chief Registrar sufficient approvals before sufficient of the Judiciary (CRJ) who was the accounting officer of the Judiciary. 57 signing a contract, approvals before This was a requirement contained in the PPD Act. We noted this executing a purchase, or a signing a requirement was adhered to. payment? How many contract people give their approval executing a before signing a contract or purchase or a executing a purchase or a payment. payment? 9.16 Does the IP rotate staff I v' The IP has 11 The Procurement Officers were subject to the policy that staff within the positions for internal procedures to Judiciary could be transferred after serving in one duty station for three control purposes? Ifyes, rotate staff years. how often? positions for internal control purposes. 9.17 Does the IP have formal Iv' The IP has I 3 See comments under section 9.3 above. guidelines and procedures formal guidelines in place to assist in and procedures identifying, monitoring and in place to assist dealing with potential in identifying, conflicts of interest with monitoring and potential suppliers/procurement dealing with agents? If so, how does the potential conflict IP proceed in cases of of interests with conflict of interest? potential suppliers/procur ement agents. 9e.Procurenientprocess 9.18 Does the IP have a well- I v' The IP has a 2 The IP was obligated by the procurement laws to prequalify suppliers for defined process for well-defined goods, works and services. The prequalification notices were sent out sourcing/pre-qualification process for through newspaper adverts and website postings that specified the of suppliers? Do formal sourcing/pre- minimum requirements. We noted the IP had communicated the results 58 procurement methods qualifying of the prequalification process to all the suppliers and maintained a list of include broadly suppliers. prequalified suppliers for 2 years in compliance with the law. However, broadcasting procurement the list was not posted on the website of the IP. opportunities? Area of strength Please attach methodology The IP maintained a list ofprequalified suppliers in compliance with the for the assessment of law. suppliers. Area for improvement The management had not posted the final list of prequalified suppliers on its website for access by the public. 9.19 Does the IP undertake -./ I I The IP The Public Procurement Oversight Authority (PPOA) carried out market regular market surveys? If 11 undertakes surveys for common goods. The results of these surveys were posted on so, describe the process. regular market PPOA's website and all public entities were obligated to use these results surveys. to guide procurement activities. 9.20 Does the IP have a -./ I I IThe IP has a J1 See comments under section 9.18 above. database of active database of active suppliers? If so, please suppliers. describe the process for maintaining this database. 9.21 Does the IP keep track of I -./ The IP keeps 11 The management b:acked the perfonnance of suppliers continuously. This past performance of track of past was carried during the procurement and delivery cycle. suppliers? If so, describe performance of the process. suppliers. 9.2.2 Does the IP regularly I ..; The IP regularly 11 In addition to the guidance from the PPOA on prices, the management check 'market' prices for checks 'market' goods and services carried out surveys on a need basis. The process was mostly carried out prices of goods purchased? If so, describe dming the specific procurement processes to assess the reasonableness of and se1vices the frequency and process. the prices quoted by suppliers. purchased. 9.23 Does the IP conduct public J-./ The IP conducts 11 The IP established Tender Opening Committee (TOC) on a need basis. 59 bid opening for formal public bid The members were appointed by CRJ from the user depa11ments and procurement methods opening for technical staff as was applicable. The bids were opened in the presence of (invitation to bid and formal the suppliers. request for proposal)? procurement Area of strength What is the composition of methods. public bid opening The IP had a robust system governing the tender opening processes and committees? there was wide representation in the TOC. 9.24 Does the IP have a well v The IP has a 11 The opened bids were evaluated by a Technical Evaluation Committee defined process in place to well-defined appointed by the CRJ. ensure a secure and process in place transparent bid and to ensure a evaluation process·? If so, secure and describe the process. b:ansparent bid and evaluation process. - 9.25 Does the IP establish long- I v The IP 11 The IP was allowed by the law to enter into agreements for up to two years tenn agreements with establishes long- after which retendering was required. However, the scope of the contract suppliers based on a tender term agreements determined the period of engagement. For instance, maintenance process? with suppliers contracts for lifts and lease of printers were for more than one year. based on a tender process. - 9.26 Are long-term agreements I v Long-term 11 The maintenance contracts were governed by signed agreements that reviewed/retendered? If so, agreements are stipulated the terms and conditions of the engagement. The Directorate of how frequently? Please reviewed and Supply Chain Management was charged with monitoring of these se1vice describe. retendered. agreements to ensure compliance and performance of the contracted services. '1f. Awarding ofcontracts 9.27 When a fo1mal invitation I v The IP awards l From discussions with the management and inspection of records, we to bid has been issued, does procurement noted that tenders were awarded to the lowest evaluated and technically 60 the IP award the contracts to competent bidder. This was necessary as at times the lowest bidder did procurement contract to qualified bidders not comply with the specifications. the qualified bidder whose whose bids bid substantially conforms substantially to requirements set forth in conform to the solicitation requirements set documentation and offers forth in the the lowest cost? solicitation documentation and offer the lowest cost. 9.28 When a formal request for I v The IP awards 11 proposal has been issued, procurement does the IP award the contracts to procurement contract to qualified the qualified proposer proposers whose whose proposal, all factors considered, is the most proposals, all responsive to the factors requirements set forth in considered, are the solicitation the most documentation? responsive to the requirements set fo1th in the solicitation process. 99. Reporting and monitoring 9.29 Are procurement reports I v Procurement The management was required to submit quarterly reports to PPOA for all prepared for the IP? If so, 3 reports are procurements above Kshs 5 million and all single sourced purchases describe the preparation prepared above Kshs 30,000. and frequency of these frequently for reports. The DSCM was internally required to submit monthly reports to DPM. the IP. These were submitted through emails and were prepared using the 61 templates provided by DPM. The management indicated it was in the process of development of a database for performance management within the Judiciary. The DSCM also submitted qua1terly reports to the CRJ on procurement activities within the quarter reported on. We noted the management had not submitted the quarterly report for the third quarter of financial year 2014/15 to PPOA and EA.CC. The delay was attributed to shortage of staff within the DSCM. Area for improvement We noted the management had not submitted the qua1ierly report for the third quarter of financial year 2014/15 to PPOA and EACC. 9h. Jnformation system 9.30 ls the procurement system I ...; The procurement I 3 The IP was transitioning to IFMIS which had an e-procurement module. computerized? If so, is the system is The move was aimed at making the public procurement systems and system adequately computerized processes more open and transparent. On full implementation, the maintained? and adequately module shall facilitate the process from procurement to payment. The maintained. suppliers shall for instance, receive purchase orders generated from the system and will be sent to the supplier portal within IFMIS automatically. We noted the adoption of e-procurement at the IP's headquarters at the Supreme Court premises. However, the adoption had not been commenced at Milimani Law Courts and the rest of the court stations in the countly. The slow adoption was largely attributed to staff shortage within the DSCM. Area for improvement The IP had not fully transitioned to IFMIS's e-procurement and the procurement processes were undertaken out the system at Milimani Law Courts and the rest of the comt stations in the country. 62 9.31 Can the procurement v The procurement I 3 The IFMIS e-procurement module had capacity to run reports on system produce the system is capable quotations, contracts and purchase orders generated from the system. necessary reports? of preparing the Upon full transition, the IP will have capacity to generate different kind of necessary reports among others which shall further improve the procurement repo11S. management and reporting processes. 9i. Verification ofprocurement capacity 9.32 Is the IP's procurement ...; The IP's I 3 The management had set academic and work experience requirements for unit properly resourced in procurement unit staff joining the Judiciary and for career progression. These were adhered terms of number of staff is properly to hence the staff employed by the IP had the appropriate qualifications and their qualifications? resourced in and work experience. terms of number of staff and their On adequacy of staff, we noted the position of the Head of DSCM was held qualifications. by a Principal Procurement Officer in an acting capacity and there was no substantive Deputy Director of DSCM. FUither, the current staff within DSCM were deemed insufficient to the expansion activities unde1taken by the management. Area of strength The staff employed by the IP had the appropriate qualifications and work experience. Area for improvement The IP did not have adequate staff and we noted the position of the Head of DSCM was held by a Principal Procurement Officer in an acting capacity and there was no substantive Deputy Director of DSCM. 9.33 Is the structure of the I P's v The structure of I 3 Area for improvement procurement unit clear, the IP's with defined reporting lines procurement unit The Judiciary did not have a documented and approved organization that foster efficiency and is clear, with structure. Thus, the reporting framework within DSCM was based on the established practice. accountability? defined reporting lines that foster 63 efficiency and accountability. 9.34 Does the IP have a I v The IP has a 11 There was an annual procurement plan for each of the last 3 years. procurement strategy and procurement Further, the IP had guidelines on procurement with various tools such as appropriate tools and strategy and the templates at the disposal of the procurement team. mechanisms to conduct appropriate tools procurement activities? If and mechanisms so, please describe. to conduct procurement activities. 9.35 Does the IP verify that I v The IP verifies 11 As indicated variously above, the complaint handing mechanisms were established procedures for that established defined by the procurement laws and regulations. handling complaints are procedures for implemented? If so, please handling describe. complaints are implemented. -- 9.36 Does the IP manage the I v The IP manages 11 The IP prepared a procurement plan in eve1y budget cycle as required by procurement cycle the procurement the PFM Act and procurement laws. We noted these were prepared following the established cycle per annually for each of the past 3 years. policies and procedures? If established so, how do they verify this? policies and procedures. - 9.37 Does the IP consistently I .../1 The IP 11 From discussion with the management, we learnt that the Directorates of apply transparency and consistently Human Resource and Administration, Finance, Information integrity in the applies Communication Technology (ICT) and Supply Chain Management were procurement process? transparency and headed by Acting Directors pending replacement of the former occupants. integrity in the These former Officers were dismissed by JSC after they were 'allegedly procurement found to have engaged in malpractices'. JSC had also dismissed the process. former CRJ and Deputy CRJ for the same reason indicated above. This demonstrated the commitment of the management to ensure there 64 was transparency and integrity within all the operational and functional processes of the Judiciary. Total number ofquestions I 37 in subject area: ··--- - _...... _ _j_ ------Number ofquestions l2 1- mm•ked 'N/A'insubject area: - Total number ofapplicable I 35 questions in subject area: Total numbei• ofrisk points: 149 Pl•ocurement overall risk 1-i I I t-Lowrisk Divide total number of risk points by total number of applicable questions assessment: in subject matter section. · This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. Sum:m_acy of Risks Related to the Programme Manag~ent ~P~~ty'9f the Implemen~g Partner 65 I Testedsuuject area (s.e:e·sHbsegpent pa;gesfor detaiJs 0fe~hll .$nbj~.dt at..eas1MJ'n~~d li~aw~ . - - . -· Total number Total number of applicable Overall risk of risk points questions assessment Comments 1. Partner 1 1 1- Lowrisk • The Implementing Partner was established through the Constitution of identification: Kenya (CoK) and as such, it was an independent arm of the Government of Kenya with a clear mandate. 2. Partner overview, 9 7 1- Low risk • The IP had a vision, mission and its mandate was dearly spelt out in the their technical JTF, 2012-2016, and the Constitution of Kenya, 2010. capabilities and geographic reach: • The management incorporated the current approaches underpinned in various standards and commitments in relating with different stakeholders and in service delivery. • The management had set clear strntegic objectives to guide the transformation of the Judiciary. 1- Lowrisk 3. Capabilities for 4 4 • The management had developed the JTF premised on four pillars, 10 key results based result areas, implementation plan and the results-based matrix. planning: • The planning processes were guided by the JTF that was developed after a holistic analysis of the status of the Judiciary. The analysis identified the issues that bedeviled the Judiciary and remedial measures were proposed and these laid the basis of the annual workplans. • The management team met regularly to review performance and was assisted by the Directorate of Performance Management (DPM) in this through submission of regular performance management and measurement reports. • The IP had the relevant experience in undertaking surveys and the outcomes were used to inform the design and redesign of both administrative and functional operational processes. 2 2 - Moderate risk 4. Project 4 • For the 2014 implementation period, the IP had spent USD 470,920 against Cooperation the period budget of USD 1,430,199. This represented an absorption rate Agreements (PCA): 66 I Summary of Risks Related to the Programme Management Capacity of the Implementing Partner ~ -~- ".f~$ .ubjee._t·area (see su}Jiseqtiehtp.~g_~.,far[detai,ls.of ~en ~u'pje,ct area summarized below) - -- -- ·- .. Total number Total number of applicable Overall risk of risk points questions assessment Comments 33%. • The implementing units had not engaged more v,rith UNDP with regard to planning, activity implementation and sharing of experiences. Thus, the management had agreed with UNDP for the implementing units to appoint coordinators for the JTSP project. • We noted that for the 2015 implementation period, the management had not submitted to UNDP, the progress report for the 3 months to 31 March 2015. 5. Human Resources: 9 5 2 - Moderate risk • There was shortage of staff with sufficient qualifications and experience to act as database administrators within the various court stations. Also, some of the comt stations did not have qualified accountants hence accounting functions were performed by clerks. The staffing survey carried out in 2014 showed the Judiciary lacked adequate staff within the cadres of comt clerks, customer care desk staff; court executive officers and within the Internal Audit Department among other cadres. • At the time of the assessment, the alignment of the current tools for staff pelformance reporting, monitoring and measurement with new framework and its attendant tools spearheaded by Directorate of Human Resource and Administration (DHRA) was underway and these were set to be launched in June 2015 for implementation from July 2015. 6. Capabilities for 6 4 2 - Moderate risk performance • The management planned to commence development of the Integrated monitoring: Pe1formance Measurement and Accountability System (IPMAS) to improve on performance management within the Judiciary. 7. Monitoring & 9 8 1- Low risk There was the Directorate of Performance Management charged with Evaluation Systems : • performance monitoring, management and measurement for the Judiciary. 67 I Silmm~: Qf }Uslcs Related to the P.1"9gramme Management Capacity oftb,_e Implementing Partner ~ ------T~e'd subjeet'ai"e.a (see subse1}uentpages for details 6f ea'ch subjee.farea,slllllli:la'rize'a below) -c --- ·- - ~- Total number Total number of applicable Overall risk of risk points questions assessment Comments • The management had through the Performance Management and Measurement Steering Committee (PMMSC), unde1taken a comprehensive review of the current performance monitoring, management and measurement activities and developed harmonized framework for the entire Judiciary. • The management had undertaken various performance monitoling initiatives using the cunent tools for data gathering and utilized the results to enhance service delivery and engage with different stakeholders with regard to financial and collabor-ative support. 8. Partnerships: 3 3 1-Lowrisk • The IP had established networks that it pa1tnered with for performance of its mandate and also to leverage on resources and policies. • The Judicia1y collaborated with different partners and public entities to share knowledge and resources. 9. Capacity for 4 3 1- Low risk The Judiciary had mainstreamed matters such as gender, equity, disaster Innovations, • risk management and regional balance within its operational framework. modelling and setting and applying • The management had inculcated piloting of initiatives before rolling them Programme out. The notable instance was the piloting of the case management system. Standards: • The management had adopted use of innovative approaches to planning such as incorporation of mobile comts within the system to improve access to justice. Total: 49 37 1-Lowrisk Divide the total number of risk points by the total number of applicable questions in the subject matter section. 68 I Summary of Risks Related to the Programme Management Capacity of the Implementing Partner - - -· - - - - Te~ed ~ubje~ u ~a (s.ee ~ubs~gu~-nt pa,ges_~~r tl~tml-~ ef e~~}I. i>,Qhjec;t·ar~ summ?Jize<;lbelew1' . - -·- . Total number Total number of applicable Overall risk of risk points questions assessment Comments This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. The Judiciary of the Republic of Kenya, the Implementing Partner 1. Partner Identification - I v • To understand the I 1 (IP) was established by the Constitution of the Republic of Kenya. provide category of technical expertise This was through Chapter 10, Article 159 of the Constitution of Kenya partner i.e. areas where category of the (CoK), 2010. It was one of the three arms of the Government of they work (e.g. Advocacy pa1tner and Kenya (GoK) and thus, it was independent from the Executive and and lobbying, training and documentation Legislative arms of the GoK. capacity building, based on pa1tner community mobilization, response. We also However, the new constitutive arrangement was a recent event but communication or document the the Judiciary has been in existence since the colonial period. It thus relevant technical area(s). experience in had a iich history and experience having had performed its mandate involvement in from the colonial period to date. each area (where more than one) in The IP thus exercised judicial authority on all matters within the terms of years and Republic of Kenya. These included but were not limited to, number of projects interpretation oflaws and adjudication of disputes between litigants undertaken. in relation to legal suits. The Judiciary also offered checks and balances on the Executive and Legislative arms of GoK in the performance of their respective mandates. 69 The IP had performed its mandate for more than half a century and thus possessed adequate functional experience. It also had a clearly spelt out mandate. 2. Partner overview, their • Vision, mission and I 1 Guiding principles, clarity of purpose and scope technical capabilities and objectives of the geographic reach. Partner The vision of the IP was to be an independent guardian of justice in organisation Kenya. Its mission was to deliver justice fairly, impartially and expeditiously, promote equal access to justice, and advance local • Clarity of purpose I 1 jurisprudence by upholding the rule oflaw. The vision and the on the overall mission were aimed at guiding the Judiciary in the perlonnance of its organisation functions. • Areas of technical 1 Fmther as per the CoK and the Judiciary Transformation Framework expertise (JTF), 2012-2016, the mandate of the Judiciary was to: 1 • Geographic areas of coverage for the IP; • Expeditiously administer justice to all irrespective of status; • Administer justice without undue regard to procedural • Organizational set technicalities; up and staffing 3 structure • Protect and promote the purpose and principles of the Constitution of Kenya, 2010; and • Awareness of global standards and 1 • Promote alternative forms of dispute resolution, including commitments reconciliation, mediation, arbitration and traditional dispute resolution mechanisms. • Application of Organizational set up and staffing structure policies and 1 standards through From our discussion with the management, we established the strategies Judiciaiy did not have an approved and documented organisational and staffing structure in place. The management had undertaken a process to develop the structure but it had not been finalized on and approved at the time of the assessment. 70 Awareness of global standards and commibnents The Judiciary had demonstrated consciousness of various frameworks in the performance of its mandate. For instance, it was guided by the international treaties and instruments that Kenya was party to as required by Alticle 2 ( 6) of CoK. The IP also sought to benchmark with judiciaries around the globe. For instance, the management had undertaken learning visits to various counb:i.es such United States of America and Australia among others. The lessons learnt were used to improve service delivery. The management had undertaken various initiatives like carrying out an impact evaluation diagnostic survey on delays in conclusion of court cases and established the Office of the Ombudsman of the Judiciaiy (OtOJ) among others. These initiatives were meant to improve service delivery with the full knowledge that Judiciary was one of the key pillars underpinning the realization of Vision 2030 of the Republic of Kenya. The management had also developed various guidelines and policies that were preceded by internal assessment to determine the strengths and weaknesses. In conjunction with the Performance Conn·acting framework on institutional and individual staff performance, the guidelines had helped to continuously streamline administrative and functional processes. In fact, the IP had established the Directorate of Performance Management to monitor and assess the service delivery processes. Application of policies and standards through strategies The management had developed the JTF, 2012-2016 to give impetus towards the achievement of improved service delivery. The JTF identified mechanisms required to improve service. These were recruitment of adequate and qualified staff, increasing the number of comt stations in the country and improving the terms of service of the judiciary staff. These measures, among others were under implementation and had started bearing fruit as the public confidence in the Judiciary had improved. 71 Area of strength • The IP had a vision, mission and its mandate was clearly spelt out in the JTF, 2012-2016, and the Constitution of Kenya, 2010. • The management incorporated the current approaches underpinned in various standards and commitments in relating with different stakeholders and in service delivery. • The management had set clear strategic objectives to guide the transformation of the Judiciary. Area for improvement At the time of the assessment in Ap1il 2015, the Judiciary did not have a documented and approved organisational and staffing structure. 3. Capabilities for results • Capability for I 1 Capability for strategic planning and clear articulation of based planning Strategic planning intended results and clear articulation of The Judiciary had developed the Judiciary Transformation intended results Framework (JTF), 2012-2016 through a consultative process that involved all facets of the Judiciary, namely, judges, magistrates, • Planning 1 judicial staff and other stakeholders in the justice sector. It provided process/project the transformation roadmap, the principles and goals to be pursued identification - and the desired transformation mechanisms. The JTF was premised problem analysis on four key pillars and these were: or the cause-effect diagram or • People focused delivery of service; problem tree • Transformative leadership, organization culture and analysis for each professional, motivated staff; prioritized • Adequate financial resources and physical infrastructure; and problems 1 1 • Harnessing technology as an enabler for justice. • Management, The 4 pillars were further broken down into 10 key result areas monitoring and (KRA) and an implementation plan and a results-based matrix quality assurance developed. For each KRA, the management had developed the strategic objectives, specific strategies, action to be taken and the 1 72 process indicators of success. • Evidence based Planning process/project identification results planning - baseline data for The planning processes at the Judiciary were based on the .ITF. All the issues being the activities undertaken were aimed at implementing the pillars, addressed KRA and the strategic objectives set out in the JTF. Specifically, the JTF determined the actions to be taken to b:ansform the Judicia1y. Thus, at the planning and review processes, all the workplans were interrogated to assess how they contributed to the implementation of theJTF. We noted the approach used by the management had borne fruits and several development partners had financed some of the action points identified in the JTF. Various development partners such as the World Bank, GIZ and UNDP among others had extended financial support for some of the identified implementation action points. Management, monitoring and quality assurance process The management committee chaired by the Chief Registrar of the Judiciary ( CRJ) met every Wednesday of the week. In these meetings, the team reviewed the progress of the different directorates and the courts. The processes undertaken by the management team were supplemented by the continuous monitoring and evaluation by the Directorate of Performance Management (DPM). The DPM was to be guided by the guidelines contained in the repo1t titled; 'Institutionalising Performance Management and Measurement in the Judiciary' dated April 2015. These were developed by the Performance Management and Measurement Steering Committee (PMMSC) chaired by Justice Daniel Musinga of the Court of Appeal. It was appointed by the Chief Justice on 11 January 2013. 73 issues being addressed The Judiciary had extensive experience in undertaking baseline surveys. The management liaised with the development partners to undertake these surveys and the results were used to design remedial measures on the identified issues. Examples of these were: • The management with support from GIZ undertook surveys to determine the actual status of the Judiciary and the outcome informed the development of the JTF. • The PMMSC in executing its mandate reviewed the Judiciary's evaluation mechanisms and past reports making reference to performance measm·ement, unde1took desk research and study tours, and consulted judges, judicial officers and staff. Based on the outcome of these activities, the Conunittee recommended adoption of a performance based management and measurement framework. It then recommended guidelines for the performance based management and measurement system within the Judiciary. These were adopted by the JSC and published for issue. • The DPM was supported by World Bank through the Judicial Performance Improvement Project (JPIP) to undertake an assignment titled, 'Comt Case Delays: Impact Evaluation Diagnostic Study Report'. The overall objective of the study was to examine causes of case delay in the case processing chain. The process was finalized on and the report adopted and published in 2014. These surveys demonstrated the relevant experience the Judiciary had in undertaking surveys and the outcomes were used to info1m the design and redesign of both administrative and functional operational processes. Areas of strength • The management had developed the JfF premised on four illars, 10 key result areas, implementation plan and the results- 74 • The planning processes were guided by the JTF that was developed after a holistic analysis of the status of the Judiciary. The analysis identified the issues that bedeviled the Judiciary and remedial measmes were proposed and these laid the basis of the annual workplans. • The management team met regularly to review performance and was assisted by the DPM in this through submission of regular performance management and measurement reports. • The IP had the relevant experience in undertaking surveys and the outcomes were used to inform the design and redesign of both administrative and functional operational processes. 4. Project Cooperation • Review I 3 Review implementation arrangements Agreements (PCA) implementation /implementation arrangement's with From discussion with the management and inspection of valious modalities/arrangements other reports and project documents, we noted the IP had a robust and partners/stakehold well developed relationship with development partners. These er's and partners supported the implementation of some of the activities particularly contained in the JTF. We have listed some of the activities supported engagement with by different partners in the table below. UN agencies Development Activity supported including UNDP Partner and areas of GIZ, IDLO and Devolved judiciary-regional/station work engagement in Danish plans/budgets for 2012/13 and devolved these International juclicia1y-regional/station strategic plans arrangements Development 2012-2016 Agency (DANIDA) • Donor continuity f 1 and Planning cycle International Judiciary-organization design and HR Development Law development(ToR and RFP Organization development) and promotion of (IDLO) alternative dispute resolution (ADR) mechanisms IDLO and Communication/media support to the DANI DA Office of the Chief J ustice 75 Swedish Development of JTF, judiciary MTEF International (2012/13-2014/15) and 2012/13 annual Development budget, financial management Agency (SIDA) regulations for the Judiciary Fund and and the German the PFM guide, judiciary rcr strategic Federal Enterprise plan, 2012-2016, devolved judiciary for International public financial management outline, Cooperation (GIZ) judiciary planning on cost budget model outline and the support for administration, logistics and secretariat of the National Council for Administration of .Justice (NCAJ). UNDP Suppmt to the office of the chief justice - technical assistance (people-focused justice and service delivery and strengthening the capacity within the · udiciary to deliver on its mandate)_ _ World Bank Design of the JPIP project, assessment of the required court facilities, procw·ement specialist support and conduct of the data baseline surve· The implementation period of the UNDP funded Judiciary Transformation Support Project (JTSP) was from 2013 to 2016. As per the audited financial statements for 2014, we established the IP spent USD 470,920 against the period budget of CSD 1,430,199. This represented an absorption rate 33%. The underutilization in tlie period covered by the audit was attributed to delay in the full implementation of activities such as: • Documenting the ADR practices countrywide and informing the development/refinement of guideline and/or policy/legislation; • Development of To Rs and engagement of consultant to develop guidelines on children comt operations, update the children ractice and procedure rules and also the probate and 76 administration rules; and • Recruitment of consultant to offer technical assistance to the Office of the Chief Registrar. The programme also required submission of quarterly progress reports to UNDP. We noted that for the 2015 implementation period, the management had not submitted to UNDP, the progress report for the 3 months to 31 March 2015. Donor continuity and Planning cycle The management indicated the Judiciary had established The Judiciary Transformation Development Partners Forum (JT-DPF) chaired by the Chief Justice. The other members were Heads of missions from all development partners, Selected NCAJ Members, representatives of the institutions involved in implementation of JTF activities and the Office of the Chief Registrar of the Judiciary (Secretary). The Forum was responsible for sharing information 'With the development partners at the strategic level on progress of implementation of the JTF with respect to the national change agenda. It was also tasked to address any difficulties in achieving key results in each of the 4 pillars of the JTF and propose policy level recommendations to resolve the noted challenges. This body was supposed to convene every six months. There was also the Judiciary Transformation Framework Steering Committee (JTF-SC) which was the highest decision malting and strategic group for the JTSP. The Committee was supported by a Secretariat constituted by the Office of the Registrar of the Judiciaiy and UNDP. It reviewed quarterly progress reports and quarterly project workplans and other management information presented to it for consideration. At the start, it met twice per month for first six months of the JTSP and transitioned to meeting once per month for the ne:,,.t six months. After one year, the meetings, the regularity of the meetings was defined by the Secretariat based on the progress in the implementation of project activities. We noted evidence the 77 Committee held a meeting on 10 December 2015. It was attended by the Chief Registrar of the Judiciary and the UNDP Deputy Country Director of Programmes and their teams. Areas of strength • The Judiciary had received positive response from the development partners who supported some of the activities identified for implementation in the JTF. • The IP had established forums to engage with the development partners and for the JTSP, there was evidence the JTF-SC met regularly based on established needs. Area for improvement • For the 2014 implementation period, the IP had spent USD 470,920 against the period budget of USD 1,430,199. This represented an absorption rate 33%. • The implementing units had not engaged more with UNDP with regard to planning, activity implementation and sharing of experiences. Thus, the management had agreed with UNDP for the implementing units to appoint coordinators for the JTSP project. • We noted that for the 2015 implementation period, the management had not submitted to UNDP, the progress report for the 3 months to 31 March 2015. 5. Human Resources • Qualifications, 2 Qualifications, Skills and competencies of the service and Skills and functional officers competencies in The management indicated the academic and work experience relation to the areas of expertise requirements were specified in the scheme of service developed with as identified support from UNDP. This ensured that all the staff recruited after commencement of the judicial reforms were well qualified and expe1ienced. • Staffing levels in 3 relation to the However, the management had determined that to satisfy the requirements of the new ICT oolicy for the Judicia!Y,_ more 78 Subject Area ! Activity Yes No N/ A Key Variables/ Risk Remarks T~sl Comments point s ... eas o 0"""' I- specialized staff with higher qualifications who could act as database administrators were required. • Overview of the knowledge and There were also challenges where some of the court stations did not experience of key have qualified accountants. Thus, the account functions in the technical staff affected stations were performed by clerks who had operational knowledge in accounting. • Capacity building 1 Staffing levels in relation to the areas of coverage efforts for project staff - staff Under the JTF, the IP had identified the need for adequate and development competent adminisb:ative staff and judicial officers as one of the 4 plans, coaching, pillars. Towards this, the management had sought to enhance the mentoring staff numbers over time. For instance, Legal Researchers were recruited in 2012 to assist the Judges with research and other • Human resources 1 assorted judicial functions. Additional judges and magistrates were planning and also recruited and the process was on-going and 14 more judges management - appointed by the President in the first week of May 2015. staff recruitment, supervision, However, the attainment of the optimal staff numbers was impeded staffing contractual by lack of additional financial resources. The achievement of modalities, staff adequate staff was thus implemented gradually. retention, ToRs for staff, etc. To guide this process, a survey on staffing at the Judiciary was conducted for 3 months from June 2014 and reported presented to the JSC. At the time of the assessment in April 2015, the report awaited consideration and adoption by the JSC. Some of the challenges noted were: • There was sho1tage of staff within the court stations especially at the level of court clerks, customer care desk staff and court executive officers. • Some of the new judges did not have secretaries. • Some court stations did not have qualified ICT Officers. • The Directorates were understaffed at the senior management level and the lower cadres. The middle levels were reasonably staff. 79 • The Internal Audit Department had 8 staff but the staff establislunent was 44 staff. The management informed us that it had factored recruitment of more staff in the budget estimates for financial year 2015/16. The request was informed by the outcome of the staffing survey carried out in 2014. Capacity building of the staff The management had developed a training policy for the Judiciary with support from UNDP. At the time of the assessment, the policy awaited approval of the JSC. The management set up a Training Committee for the Judiciary in 2014. It was composed of the CRJ, Heads of Directorates, Court Registrars; Ombudsman of the Judiciary and the Director of the Judicial Training Institute (JTI). It was charged with spearheading the staff training programmes within the Judiciary. The management canied out a training needs assessment in Februa1y 2014. One of the outstanding training need related to capacity building of the Head of Comt Stations (senior most judicial officer in a court station) on management processes and procedures as they were technical staff. We established the management had commenced implementing the results of training needs assessment. Using the financial support from JPIP, the relevant cadre staff were taken through superviso1y courses, senior management courses and strategic leadership development programme offered by the Kenya School of Government (KSG). Additionally, the court clerks were trained on customer care. The training of the judicial officers was mostly carried out in-house by the Judicial Training Institute (JTI). JTI offered tailor made capacity building programmes on a regular basis. Hum.an resources planning and management The recruitment was based on the established staffin~ needs. Thusl. 80 the staffing survey undertaken in 2014 facilitated this process. The recruitment within the Judiciary was the responsibility of the JSC ,...rith support from the Directorate of Hwnan Resource and Administration (DHRA). The qualifications and work experience of the judicial officers was provided for in the Constitution, the Magistrate Courts Act and the JSC Act. For the rest of staff of the Judiciary, these were contained in the scheme of service for different cadres. The JSC perfonned the interviews for all judicial officers with support from the service directorates. It also interviewed the staff of service directorate from grade number 9 and above. For grade 8 and below, it had delegated the role to the senior management team headed by the CRJ. The candidates were expected to present clearance certificates from KRA, EACC and HELB and the management obtained references from the previous employers. With regard to the candidates for the senior management staff and judicial officers, National Intelligence Service was consulted to vet them. The successful candidates were issued with contracts on a permanent and pensionable basis. However, the HoDs contracted for a renewable period of three years. The management enhanced the terms of service for the Judiciary staff. The staff were provided with medical insurance cover. It had thus managed to attract and retain highly qualified employees. We learnt that in 2014, the Judiciary lost less than 10 staff. There was a Performance Management Committee (PMC) made up of the HoDs and Court Registrars chaired by the CRJ. It adjudicated on the staff peiformance reviews. In this regard, the CJ launched the report of the PMMSC on performance monitoring and measurement within the Judiciary on 15 April 2015. It set the framework for staff performance management and service delivery ,...rithin the Judicia1y. The DHRA was tasked to align the cunent performance reporting and measurement tools for the staff with the new framework and its tools to be launched in June 2015_ for implementation from Jul' 81 2015. Areas of strength • The management had developed schemes of seIVice for the Judiciary staff with support from UNDP. • The IP had staff training policy and capacity building programmes were undertaken based on the results of the training needs exercise. • The management had unde1taken a staffing survey where one of the key outcomes was an analysis of the current staff within the Judiciary and the determination the staff establishment. • The recruitment process was undertaken by the JSC with support from the senior management team. Further, the JSC had delegated recruitment of officers from grade 8 and below to the senior management team. Adequate background checks were performed to ensure compliance ,vith Chapter 6 of the CoK and other relevant laws. • The framework for performance monitoring and measurement in the Judiciary was launched on 15 April 2015. In addition, there was a Performance Management Committee (PMC) made up of the HoDs and Court Registrars chaired by the CRJ. Areas for improvement • There was shortage of staff with sufficient qualifications and experience to act as database administrators within the various court stations. Also, some of the court stations did not have qualified accountants hence accounting functions were performed by clerks. • The staffing survey carried out in 2014 showed the Judiciary lacked adequate staff within the cadres of court clerks, customer care desk staff; court executive officers and within the Internal Audit Department among other cadres. • At the time of the assessment, the alignment of the current tools I I I I I I I for staff peifonnance reporting, monitoring and measurement 82 with new framework and its attendant tools spearheaded by DHRA was underway and these were set to be launched in June 2015 for implementation from July 2015. 6. Capabilities for • Pe1formance 1 Performance tracking performance monitoring tracking is and docwnentation for unde1taken and The Department of Performance Management (DPM) was scaling up and/or policy there is functional responsible for monitoring the performance of the directorates and influence monitoring system the cowt stations. The DPM checked whether the staff were in place to track delivering services as per the workplans agreed on at the beginning performance of each financial year. periodically The PMMSC had also developed the performance monitoring and Detailed plans and measurement framework. These were meant to give impetus to the schedules for performance management processes within the Judicia.Iy. programme For example, we noted the DPM had undertaken a survey titled, monitoring, 1 'Comt Case Delays: Impact Evaluation Diagnostic Study Report'. The analysis of overall objective of the study was to examine causes of case delay in information, the case processing chain. The process was finalized on and the progress reporting report adopted and published in 2014. and closure of key action that emerge For the donor funded programmes, these were also under the DPM's from the analysis scope. In addition, the Programme Coordinators were evaluated in relation to the performance of their projects. However, multi-year • Regular analysis projects implemented in the Judiciary such as the JPIP, had and review of dedicated secretariat that carried out all the activities related to a project programme management cycle. performance The management indicated that it was in the process of development 1 • Timeliness and of an Integrated Performance Measurement and Accountability quality of reporting System (IPMAS) with support from the JPIP programme. The technical evaluation was carried out and the repo1t submitted to World Bank requesting for a no objection concurrence. 3 Plans for monitoring and performance analysis All the projects implemented by the Judiciary had detailed workplans based on the JTF. The management team headed by the CRJ met on Wednesday of eve:ry week to review progress and 83 determine the way forward. In addition, the DPM monitored the service delivery within the Judiciary. For the UNDP funded program, we noted there was a Project Steering Committee with the donor and IP's representatives that me to review progress and address any emerging issues. There was also the Development Partners Forum (DPF) tasked with addressing difficulties in achieving key results in each of the 4 pillars of the JTF and proposed policy level recommendations to address the challenges. Timeliness and quality of reporting We obtained the programme progress reports submitted to UNDP and noted these contained the required details. For instance, these reported per workplan activity showing the achievements and explanations for any delays in the implementation of activities. The UNDP funded program.me required submission of quarterly progress reports to UNDP. We noted that for the 2015 implementation period, the management had not submitted to UNDP, the progress report for the 3 months to 31 March 2015. Areas of strength • There was regular review monitoring and analysis of performance within the Judicia1y undertaken at the different levels. • All the projects implemented by the Judiciary had workplans based on the JTF and were used to monitor and measure performance. • The programme progress reports prepared by the management were detailed and contained all the critical ingredients. Area for improvement 84 • The management should ensure that once commenced, the development of the Integrated Performance Measurement and Accountability System (IPMAS) was finalized on according to specifications and implementation commenced in earnest to realise the anticipated value for money. • The management had not submitted to UNDP, the progress report for the 3 months to 31 March 2015. 7. Monitoring & Evaluation • Staff l M&E arrangements Systems and capacities understanding of Mand E, its The DPM was charged ·with spearheading the performance related management and measurement activities at the Judiciary. The DPM responsibilities in focused on implementation of the workplan activities implemented relation to through the performance contracts of the staff from the directorates programming and the court stations. Thus, the DPM assessed performance in accordance with the performance contracting framework. At the • Functional M and l operational and functional level, the directorates and court stations Esystem monitored activities internally to assess adherence to workplans. • Training and 1 Having taken note on the need to further strengthen M&E activities capacity building within the Judiciary, the CJ appointed the Performance Management eff01ts for staff and Measurement Steering Committee (PMMSC). Its tenns of undertaken in reference were: relation M&E • Establish an understanding of performance management • Evidence of 1 systems in comts; Performance • Establish an understanding of performance indicators, targets monitoring of and measures by judicial officers and staff; programmes and • Establish an understanding of foundations for sound use of evidence in performance measurement by Judicial officers and staff; and programmatic • Develop implementation plan for performance negotiation, shifts/adjustments vetting, monitoring, evaluation and reporting and decision making We perused the repo1t of PM MSC dated April 2015 and noted the Judiciary had in the past performed M&E activities but processes • Data collection these not carried out in harmonized way drawing from a clearly 2 described framework. The guidelines contained in the PMMSC 85 assurance report thus sought to address that challenge. processes Training and capacity building • Use of data The training at the Judiciary was informed by the outcome of the generated data for 1 training needs assessment carried out in February 2014. We noted advocacy, the management had sponsored the staff to undergo the required influence policies trainings both internally at the .m and externally at the KSG. The and leveraging DPM's staff were thus taken through trainings that were tailored to resource's performance monitoring and measurement. Evidence of performance monitoring of programmes using • Evidence of 1 programme set tools and use of results for advocacy and policy supplies influence monitoring and its We noted the management had undertaken various initiatives meant linkage to results to review programme implementation. For instance, we noted the management had undertaken service weeks where performance of Experience in • both the civil and criminal divisions of the high court in ::-.lairobi and undertaking Mombasa was evaluated. In the civil comt, the aim was determine evaluations and if 1 the dormant cases for dismissal and around 14 thousand cases were the findings have reviewed. The reviews made use of predetermined tools for collection been able to of data and analysis. influence decision making by For the criminal comt reviews, the management assessed 1,538 cases programme and established existence of cases of a petty nature that were not partners moving. These reviews resulted in dismissal of some dormant civil cases and rationalisation of some criminal cases with recommendations for release of suspects. Further, the PMMSC's report provided specific model M&E frameworks for different comts and the adminisb·ative management. For instance, performance indicators were developed for the Chief Registrnr of the Judiciary with requirement for monthly. quarterly, bi-annual and annual reports included. The final process in this regard required development of tools to monitor performance in alignment with the indicators. We noted the process of developing these tools was ongoing at the time of the assessment. The new tools shall be harmonized with templates and tools created by the PMD for regular data collection and analysis that have been in 86 use. In the past, the returns from the analysis of tools were used to make regular repmts and the annual report for the Judiciary. The annual report was a constitutional requirement and it had been complied with. The Judiciary had used the outcome of the monitoring processes to engage with different stakeholders. For instance, it had lobbied for more budgetary allocation for infrastructural development, recruitment of more judicial officers and service department staff. Areas of strength • There was the Directorate of Perfonnance Management charged with performance monitoring, management and measurement for the Judiciary. • The management had through the PMMSC, undertaken a comprehensive review of the current pe1fonnance monitoring, management and measurement activities and developed harmonized framework for the entire Judiciary. • The management had undertaken various performance monitoring initiatives using the cmTent tools for data gatheling and utilized the results to enhance service delivery and engage with different stakeholders with regard to financial and collaborative support. Areas for improvement • The process of developing new tools and aligning the current data collection and reporting tools to the repmting indicators included in the PMMSC report and its accompanying tool had not been finalised on yet these were scheduled for launch in June 2015. 8. Partnerships The Partnerships 1 Partnership engagement established at various levels national, local The Judiciary had established constructive partnerships in the context, the project performance of its core objectives and for operational suppo1t. In the stakeholders, performance of its mandate, the Judiciary collaborated with the beneficiaries National Police Service, Law Society of Kenya, Probation and Medical Officers, Civil Society Organisations, remand homes for 1 87 Results and resources juveniles, the prison service and the judges and magi.sh-ate r leveraging including associations. These were functional collaborations aimed at I policies facilitating service delive1y. 1 Active engagement The Judiciary had effective engagements with the Legislative and with established Executive arms of the government. It relied on the Executive for partnership's implementation of court orders and the Legislature for making of laws guiding the performance of its mandate. It also worked together with the two anns in resource allocation du1ing the budgeting processes. The Judiciaiy had established effective partnerships with the development partners. In fact, it had set up a Development Partners Fomm chaired by the Chief Justice to harmonise donor engagement and share information with these partners. The Judiciary also collaborated with different entities under the Com.mission on Administrative Justice (NCAJ). These were the Attorney General, Director Public Prosecution, the National Police Service and the Prisons Service. The Judicia1y had also set up Comt Users Committee within the different court stations. There were made up of the stakeholders ordinarily that used the court services. The objective was to involve the users in the service delivery processes and obtain their input in improving service delivery. At the time of the assessment, we noted the Court Users Committee for Milimani was launched on n May 2015 by the Chief Justice. Across the border, the Judiciary collaborated 'With the laws societies in the region. Through its officers, it was an active participant in the East Africa Judges and Magistrates Association. It used these forums to share information and build capacity of its officers through the conferences and workshops held by these entities. Leveraging on resources, results and policies Through the networks established 'With different partners, the Judiciary collaborated in the expansion of the court facilities around the countiy. The expansion was carried out through cost sharing arrangements. The Judiciary provided the land and the development 88 partner financed the constructions. The notable partner under this model was the World Bank through the Judicial Performance Improvement Project (JPIP). The Judicia1y also held some of the training activities in-house at the Judicial Training Institute (JTI). This was an in-house training institute for the judges and magistrates. It mostly made use of the expe1tise within the Judiciary and also housed some of the training activities. The Judiciary shared its infrastructural facilities with different public entities. We noted the Witness Protection Agency and the Political Parties and Disputes Tribunal were housed within Milimani court station. Areas of strength • The IP had established networks that it partnered with for performance of its mandate and also to leverage on resources and policies. • The Judiciary collaborated with different partners and public entities to share knowledge and resources. 9. Capacity for Innovations, • Review integration I 2 Review integration of cross cutting themes modelling and setting and of cross cutting applying Programme themes as The management had progressively sought to integrate cross cutting Standards described- issues within its operations. We describe some of the initiatives Gender, equity, undertaken below. environment On gender and equity, the management had ensured that new sustainability, recruitment of staff reflected the constitutional requirements on Disaster risk gender and regional balance. At the time of the assessment, the reduction management informed us that for every 55 male persons there were mainstreamed in 45 female persons. programming The management had also come up with policies that were friendly to Modelling or Persons with Disabilities (PwDs). For instance, the new court piloting of I 1 buildings such as the one constructed in Kisumu, among others were initiatives prior to fitted with ramps and other amenities for easier access and use by PWDs. Further, the Supreme Court building was modified to 89 scaling up accommodate ramps and the lifts were also retrofitted to make them fiiendlier. • Innovative 1 approaches and However, the other court stations around the country did not have strategies in facilities that were friendly to the PWDs. project planning Modelling or piloting of initiatives prior to scaling up At the time of the assessment, the management was piloting a case management system at Milimani law courts. The system would be used for filing, scheduling and tracking progress among other functions. It was part of the new measures implemented under the Judicial Transformation Framework (JTF). Upon successful completion of the pilot process, the system shall be rolled out to up to 12 courts that already possessed high internet connectivity within Nairobi, Eldoret and Mombasa before the eventual scale up nationally. The Judiciary piloted construction of model courts that used a uniform structural design with a complete set of all the required court facilities. The pilot was carried out in Kikuyu and Kangema and the model had further been scaled up to reach 30 court stations. The Judiciary had commenced incot·poration of alternative dispute resolution mechanisms within the case management processes. The Family and Commercial Divisions of the High Court and the Industrial Court were keen on these mechanisms. For instance, during the primary and secondary schools teachers' strike, the Industrial Court through the presiding Judge in the matter facilitated the negotiation between the Teachers' Union and the Government representatives. Innovative approaches and strategies in project planning The management involved the stakeholders in the design of the monitoring and evaluation framework for the Judiciary. The Performance Management and Measurement Steering Committee (PMMSC) undertook extensive consultations, learning and benchmarking \-i.sits and presentations from different stakeholders before finalising on its report. The final recommendations thus 90 incorporated the views of the different stakeholders in the justice sector. The management had also included the use of mobile courts as part of the new approach to planning for service delivery. These were undertaken through visits to different areas that ordinarily did not have courts nearby. The court matters emanating from those areas were thus heard during the mobile couit visits. This was a strategy that was adopted to improve access to justice. The management had also adopted annual case audit approach to determine the dormant cases. Once determined, the parties were issued with notices for show cause why the dormant cases should not be dismissed. The objective was ensure only active cases were listed as pending to open up court diaries more new cases hence improving access to justice and speeding up clearance of current cases. The Judiciary had also incorporated the use of couit users committees within its operational framework. The court users' manual was developed to guide the operations of these committees within the different court stations. Area of strength • The Judiciary had mainstreamed matters such as gender, equity, disaster risk management and regional balance ·within its operational framework. • The management had inculcated piloting of initiatives before rolling them out. The notable instance was the piloting of the case management system. • The management had adopted use of innovative approaches to planning such as incorporation of mobile courts ·within the system to improve access to justice. Area for improvement Other than the new comt buildings and the Supreme Court premises, the other court stations buildings did not have facilities that were friendly to for access and use by the Persons with Disabilities 91 Name Desiimation Ms Susan Ovatsi Acting; Director of Finance Mr David Rabando DeDutv Director of Finance Mr Peter Wanjama Finance Mr Wvcliffe Wanl!:a Chief Accounts Controller Mr Peter M wai Senior Internal Auditor Ms Lvdia Mwanro. Pro2ram Officer Ms Angello Manyalla Acting Director of Human Resources MrMoluBoya Human Resource Officer Mr Joseph Osewe Deoutv Director, Directorate of Performance Management Ms Judith Omange Project Coordinator and a Registrar of the Hi!!h Court of Kenva 93