CPFM 13: Budgeting,Revenue and Cash Management

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About Course

  • Initial Technical and Administrative Check-in: The session began with Nzi Rwakabuba and Traction Training addressing initial connection difficulties, which they noted resolved similarly to a prior issue with another teacher. Nzi Rwakabuba confirmed that the administrative issue regarding notes and photos had not yet been sorted out, as they had returned two days prior and needed to ask the administration to fix it. Traction Training welcomed them back and apologized for the noise in their current surroundings, requesting to be informed if they could not be heard clearly.
  • Course Progress and Exam Readiness: Traction Training reviewed the unit’s progress, noting that they had covered cash management and revenue management, suggesting Nzi Rwakabuba should be at a point where they are almost ready for the final exam scheduled for April. Traction Training stated they had tried to push the course along to ensure Nzi Rwakabuba was not left behind. Nzi Rwakabuba confirmed they felt they were at a good level of readiness.
  • Upcoming Lesson Topics and Resource Sharing: Traction Training outlined the plan to finish the cash management unit by looking at cash forecasting, cash advances, and interest occupational profit. Nzi Rwakabuba requested access to the notes, and Traction Training agreed to share their more summarized PowerPoint slides after the class to provide an idea of what to look out for. Traction Training then asked Nzi Rwakabuba to provide a recap of cash management.
  • Recap of Cash Management Definition and Key Players: Nzi Rwakabuba defined cash management as the public sector’s use of money received from taxes and central or county government to provide goods and services to the people. They identified key personnel responsible for cash management as the Ministry of Finance in the central government and the public sector accountant at the lower level, who ensures the entire process of receiving and spending money. Traction Training accepted this definition, clarifying that cash management involves cash and cash equivalents, which is the money used in day-to-day operations, including petty cash and bank statements.
  • Introduction to Cash Forecasting and Planning: Traction Training introduced new components related to public sector cash management, including interest, cash advances, and forecasting. Cash planning is the process of estimating the government’s cash inflows and outflows for a specific period to ensure funds are available for expenditures when due. The goal of cash planning is to ensure that short-term obligations, such as salaries, can be met without delay, avoiding both having too much surplus money or a deficit.
  • Alignment of Cash Plans to the Budget: Traction Training emphasized that the cash plan must be aligned with the budget to ensure consistency and fiscal discipline, as the budget is the backbone aligned with the fiscal and development goals of the country. The alignment process includes having annual estimates approved by Parliament, breaking down expenditure into quarterly or monthly requirements, and ensuring all cash plan items are budgeted for. The updated plan must be reviewed regularly to reflect changes in priorities or cash flow performance before submission to the national treasury for validation.
  • Roles in Cash Plan Preparation: The Head of the Accounting Unit oversees the entire cash plan process, consolidating submissions and ensuring the plan reflects accurate budget figures, while also liaising with the national treasury. The Finance Officer in each department prepares daily expenditure and revenue forecasts, monitors financial trends, prepares commitment sheets, and provides technical advice. Nzi Rwakabuba summarized the process as starting with the annual allotment from Parliament, breaking it down, and reviewing it to get the cash plan.
  • Challenges in Preparing Cash Plans: Several challenges affect the preparation of cash plans, including delays in the release of funds from the national treasury and late submission of cash grants. Other problems include the reliance on old or manual financial systems in many African countries, weak coordination among departments, and inaccurate or incomplete expenditure data. Traction Training noted that these issues often cause delays, particularly for counties.
  • Introduction to Cash Advances and Components: Cash advances involve releasing funds to a public officer to cover specific official needs before the actual expense occurs, such as for travel or office operations. The components of a cash advance include a clearly stipulated purpose, amount, period of use, the responsible person, supporting documents, and a recovery plan.
  • Issuing and Accounting for Cash Advances: The process for issuing a cash advance involves the officer making a formal request with supporting documentation, the accounting officer approving the request after verifying it has been budgeted for, and the funds being released to the officer’s account. The officer must sign an acknowledgment form, and the transaction is maintained in a cash advance register. Officers are typically required to account for the funds and surrender supporting documents within 30 days of the activity.
  • Overview of Impress and Its Types: Impress is similar to a cash advance, enabling an officer to meet specific official expenditures. Traction Training identified three main types: a standard or standing impress for recurring operational expenses, which is retained throughout the financial year and replenished periodically. A special impress is for specific activities, like a field trip, and must be surrendered immediately after the activity without automatic replenishment. A temporary impress covers one-off expenditures over a short duration.
  • Accounting and Recording of Impress: All impress issuances must be recorded in an impress register detailing the officer’s name, amount, purpose, and date. Supporting documents, such as tax-approved registers or vouchers, must be attached to the claim. The officer must account for the expenditure within the designated time frame by completing a surrender form. The finance officer verifies the claims, and any unused funds must be returned to the cash office.
  • Recovery and Consequences for Non-Compliance: The impress holder must surrender the required forms within 30 days; failure to do so will result in recovery from their salaries. Accounting officers are responsible for authorizing issues and maintaining registers to promote accountability and prevent misuse of funds. Sanctions for non-compliance with the Public Financial Management (PFM) Act regarding cash advances can include salary deductions, disciplinary actions, recovery through civil proceedings, and audit queries.
  • Conclusion and Future Meeting Arrangements: Due to a low laptop battery, Traction Training concluded the session early. Traction Training announced they would not be available for the class on Tuesday and suggested Nzi Rwakabuba review the final chapter of the unit so that the following week’s meeting could focus on revision. Nzi Rwakabuba requested the notes be sent via WhatsApp, and Traction Training agreed to share the materials by that evening. The next meeting was scheduled for two weeks later.
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Course Content

JAN – APR 2026 RECORDINGS

  • 10 March
    24:38
  • 03 March
  • 17 February
    01:45:23
  • 24 February
    01:01:31
  • 03 February
    01:09:45
  • 20 January
    01:16:55
  • 13 January
    36:37

SEPT – DEC 2025 CLASS RECORDINGS

Topic 1: Introduction to Public Sector Budgeting

Topic 2: Discuss the Legal and Institutional Framework for Budget Management

Topic 3: The Public Budget Process

Topic 4: The County Government Budget Process

Topic 5: Management of Revenue in County Governments

Topic 6: Role of Accounting Officers

Topic 7: Overview of Cash Management in the Public Sector

Topic 8: Forecasting Cash, Cash Advances and Imprests

Topic 9: Management of Consolidated Fund Services and Exchequer Accounts

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