Management Consulting/developement management

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Question
describe function powers and resources of any local government body in your state .give comments on improvements in their performance

Answer
This  is  our  local  government  in  our  state  in  AUSTRALIA.
Local government in Australia is the lowest tier of government in Australian administered under the states and territories which in turn are beneath the federal tier. While local government is not mentioned in the Constitution of Australia, every state government recognises local government in their respective constitutions. Unlike New Zealand, the US or the UK, there is only one level of local government in all states, with no distinction such as counties and cities. The local governing body is generally referred to as a council (thus "Burwood Council" or "Casey City Council"), and the territories governed are collectively referred to as "local government areas"; however, terms such as "city" or "shire" also have a geographic interpretation. There are currently 565 local councils in Australia.]
Despite the single level of local government in Australia, there exist a number of quite extensive areas with relatively low populations which are not a part of any local government area. Powers of local governments in these areas may be exercised by special purpose bodies established outside of the general legislation, as with Victoria's alpine resorts, or directly by state governments.
State controlled[
Local government in Australia is an exclusive "power of the states or territories" and therefore the precise nature of councils referred to as local government can differ between each state or territory. Despite this, they occupy a similar role in each state.
Sate-based departments oversee local council and often intervene in their affairs.[3]
Types of local government[
Local governments are subdivisions of the states and the Northern Territory. The Australian Capital Territory has no separate local governments; and functions in Canberra and the surrounding area normally performed by state and local governments are performed there by the territorial government of the Australian Capital Territory.
Constitutional position of local government
Local government powers are determined by state governments, and states have primary responsibility for funding and exclusive responsibility for supervision of local councils.
There is no explicit mention of local government at all in the Australian constitution, although they are mentioned in the constitutions of each of the six states. A 1988 referendum sought to explicitly insert mention of local government in the federal constitution but this was comprehensively defeated. A further referendum was proposed in 2013, but was cancelled due to the change in the election date.
Federal government interaction with local councils happens regularly through the provision of federal grants to help fund local government managed projects.
Powers and functions[
All local governments are approximately equal in their theoretical powers, although LGAs that encompass large cities such as Brisbane and Gold Coast Cities command more resources due to their larger population base. Unlike local governments in many other countries, services such as police, fire protection and schools are provided by state or territory government rather than by local councils.
The councils' chief responsibility in the first half of the 20th century was the provision of physical infrastructure such as roads, bridges and sewerage.[7] From the 1970s the emphasis changed to community facilities such as libraries and parks, maintenance of local roads, town planning and development approvals, and local services such as waste disposal. Child care, tourism and urban renewal were also beginning to be part of local governments' role. These are financed by collection of local land taxes known as "rates," and grants from the state and Commonwealth governments. They are caricatured as being concerned only with the "three Rs": Rates, Roads and Rubbish.










THE LOCAL GOVERNMENTS .
Objectives of the Act.
The objectives of the Act are—
(a) to give full effect to the decentralisation of functions, powers,
responsibilities and services at all levels of local governments;
(b) to ensure democratic participation in, and control of, decision
making by the people concerned;
(c) to establish a democratic, political and gender-sensitive
administrative setup in local governments;
(d) to establish sources of revenue and financial accountability;
(e) to provide for the election of local councils;
(f) to establish and provide for the composition of interim councils
for newly created local government units pending elections of the
councils; and
(g) to provide for formation of interim executive committees for
interim councils.



LOCAL GOVERNMENTS.
Local governments.
(1) The system of local government shall be based on the district as
a unit under which there shall be lower local governments and administrative
units.
(2) The local governments in a district rural area shall be—
(a) the district council;
(b) the subcounty councils.
(3) The local governments in a city shall be—
(a) the city council;
(b) the city division councils.
(4) The local governments in a municipality shall be—
(a) the municipal council;
(b) the municipal division councils.
(5) The local government in a town shall be the town council.




Local governments to be bodies corporate.
Every local government council shall be a body corporate with perpetual
succession and a common seal, and may sue or be sued in its corporate name.
Boundaries of local council units.
(1) The boundaries of a local government or of an administrative unit
shall be those which existed immediately before the coming into force of this
Act.
(2) Boundaries of a district unit may be altered or new district units
formed, in accordance with article 179 of the Constitution.
(3) Subject to the Town and Country Planning Act, the Minister may,
in consultation with the district with the approval of Cabinet after satisfying
himself or herself that the requirements under paragraph 32 of the Third
Schedule are met, declare an area to be a town.
(4) A district may with the approval of the Minister, within its area
of jurisdiction, at the request of or in consultation with the relevant municipal
council, alter the boundaries of or create a new municipal division council.
(5) A district council may, within its area of jurisdiction and with the
approval of the Minister at the request of or in consultation with the relevant
subcounty councils, alter the boundaries of or create a new subcounty.
(6) A subcounty or city division council may, within its area of
jurisdiction with the approval of the district or city council and at the request
of or in consultation with the relevant parishes or wards, alter the boundaries
of or create a new parish or ward.
(7) A district or city council may, within its area of jurisdiction with
the approval of Parliament and in consultation with or at the request of the
relevant county council or city division council, alter the boundaries of or
create a new county or a city division.
(8) A municipal division or town council may, within its area of
jurisdiction and at the request of or in consultation with the relevant wards,
alter the boundaries of or create a new ward.
(9) A parish or ward council may, with the approval of a subcounty,
division or town council and at the request of or in consultation with the
relevant villages as the case may be, alter the boundaries of or create a new
village.
(10) Where an approval required under this section is not given, the
authority withholding its approval shall, in writing, give reasons for its
action.


LOCAL GOVERNMENT SETUP.
Local government councils.
(1) A council shall be the highest political authority within the area
of jurisdiction of a local government and shall have legislative and executive
powers to be exercised in accordance with the Constitution and this Act.
(2) A person shall not be a member of a local government council
unless that person is a citizen of Uganda.
District councils.

Composition of district councils.
District councils shall consist of—
(a) the district chairperson, elected under Part X of this Act;
(b) one councillor directly elected to represent an electoral area of a
district;
(c) two councillors, one of whom shall be a female youth,
representing the youths in the district;
(d) two councillors with disabilities, one of whom shall be a female,
representing persons with disabilities; and
(e) women councillors forming one-third of the council such that the
councillors elected under paragraphs (b), (c) and (d) shall form
two-thirds of the council.

District chairperson.
(1) There shall be a district chairperson who shall be—
(a) the political head of the district;
(b) elected by universal adult suffrage through a secret ballot.
(2) A district chairperson shall be—
(a) a person qualified to be elected a member of Parliament;
(b) at least thirty years and not more than seventy-five years of age;
and
(c) a person ordinarily resident in that district.

Functions of the chairperson.
(1) A district chairperson shall—
(a) preside at meetings of the executive committee of the district;
(b) monitor the general administration of the district;
(c) monitor the implementation of council decisions;
(d) subject to section 79 of this Act and article 197 of the
Constitution, monitor and coordinate the activities of the
municipal and town councils and of other lower local
governments and administrative units in the district;
(e) on behalf of the council, oversee the performance of persons
employed by the Government to provide services in the district
and to monitor the provision of Government services or the
implementation of projects in the district;
(f) subject to section 64(2)(g), coordinate and monitor government
functions as between the district and the Government;
(g) perform other functions that may be necessary for the better
functioning of the district council, or which may be incidental to
the functions of chairperson or imposed on the chairperson by
any law.
(2) The chairperson shall abide by, uphold and safeguard the
Constitution, the district laws and other laws of Uganda and shall endeavour
to promote the welfare of the citizens in the district.
(3) Subject to the Constitution and this Act, the functions conferred
on the chairperson may be exercised by the chairperson directly or through
elected or appointed officials subordinate to the chairperson.
(4) The chairperson shall, in the performance of his or her functions,
be answerable to the district council.
(5) The chairperson shall make a report to the council on the state of
affairs of the district, at least once a year.

Mayor.
The chairperson of a city shall carry the title of mayor.
District executive committee.
(1) There shall be an executive committee for each district council
which shall perform the executive functions of the council.
(2) A district executive committee shall consist of—
(a) the chairperson;
(b) the vice chairperson;
(c) such number of secretaries, not exceeding five, as the council
may determine.
(3) At least one of the offices of the secretaries referred to in
subsection (2)(c) shall be held by a female.
(4) The chairperson shall assign one of the secretaries to be
responsible for health and children welfare.

Functions of a district executive committee.
The district executive committee shall—
(a) initiate and formulate policy for approval of the council;
(b) oversee the implementation of the Government and the council’s
policies and monitor and coordinate activities of
nongovernmental organisations in a district;
(c) monitor the implementation of council programmes and take
remedial action where necessary;
(d) recommend to the council persons to be appointed members of
the district service commission, local government public accounts
committee, district tender board, district land board or any other
boards, commissions or committees that may be created;
(e) receive and solve problems or disputes forwarded to it from
lower local government councils;
(f) at the end of each financial year consider and evaluate the
performance of the council against the approved work plans and
programmes; and
(g) carry out any other duty as may be authorised by the council or
any law.


Appointment and functions of vice chairperson and secretaries.
(1) The vice chairperson shall be nominated by the chairperson from
among the members of the council and approved by two-thirds of all the
members of the council.
(2) The vice chairperson shall be a person who qualifies to be a
district chairperson.
(3) The secretaries shall be nominated by the chairperson from
among the members of the council and shall be approved by the majority of
all the members of the council.
(4) The vice chairperson shall deputise for the chairperson and shall
perform other functions that may be assigned to him or her by the
chairperson.

District committees and functions.
(1) A district council may appoint such standing committees as are
necessary not exceeding the number of secretaries for the efficient
performance of its functions.
(2) The chairperson of a committee under this section and the
members of the committee shall be elected by simple majority through secret
ballot from the members of the council who are not members of the executive
committee.
(3) No council member shall belong to more than one committee.
(4) Members of the district executive committee, or councillors who
are not members of a standing committee, may take part in the proceedings
of a committee under this section but shall have no right to vote or claim
allowances.


FUNCTIONS AND POWERS OF LOCAL GOVERNMENT COUNCILS.

Functions, powers and services of a council.
(1) Subject to the Constitution, a local government council shall,
within its area of jurisdiction—
(a) exercise all political and executive powers and functions;
(b) provide services as it deems fit with the exception of the
functions, powers and services listed under Part 1 of the Second
Schedule to this Act;
(c) protect the Constitution and other laws of Uganda and promote
democratic governance; and
(d) ensure the implementation and compliance with Government
policy.
(2) Without prejudice to the generality of subsection (1), a district
council shall perform and carry on the functions and services specified under
Part 2 of the Second Schedule to this Act.
(3) Urban councils shall have autonomy over their planning and
financial management when carrying out the functions and services specified
under Part 3 of the Second Schedule to this Act.
(4) Subject to subsection (5), in rural areas, a local government
council may devolve to a lower council some of the functions and services
specified under Part 4 of the Second Schedule to this Act and, in urban areas,
functions and services specified under Part 5B of the Second Schedule.
(5) A devolution under subsection (4) shall not be effected unless—
(a) both parties are in agreement;
(b) the necessary resources are made available for the exercise of
those functions and powers, services and responsibilities; and
(c) appropriate measures are taken to bring the change to the
attention of the public.
(6) A local government shall monitor the performance of persons
employed by the Government or a higher local government to provide
services in its area of jurisdiction and monitor the provision of Government
services or the implementation of projects in the area.
(7) A local government shall protect the Constitution and other laws
of Uganda and shall promote democratic governance of the area under its
jurisdiction.

Services to be provided on request of a council.
(1) A district council or a lower council may, on request by it, be
allowed to exercise the functions and services specified in Part I of the
Second Schedule, or if delegated to it by the Government or by Parliament
under any law.
(2) Subject to the Constitution, the Government may, on request by
a district council, assume responsibility for functions and services assigned
to the district council, and in such a case the Government shall retain any
grants pertaining to any task reverting to the Government.
(3) A higher local government council may, on request by a lower
council, assume responsibility of functions assigned to that lower council,
provided that the higher local council shall retain any grants pertaining to the
task reverting to it.
(4) Appropriate measures shall be taken to bring the changes in
subsections (1), (2) and (3) to the attention of the public.

Delegation of functions by a Minister or council.
(1) A Minister responsible for a Government Ministry may, after
consultation with the Minister, delegate functions, powers and
responsibilities vested in that Ministry to a local government council; and a
local government council may delegate its functions, powers and
responsibilities to a lower local government council within its area of
jurisdiction.
(2) A delegation under subsection (1) shall not be effected unless—
(a) all parties are in agreement;
(b) adequate resources are made available for the exercise of those
functions, powers, services and responsibilities; and
(c) appropriate measures are taken to bring the change to the
attention of the public.
(3) A copy of the instrument of delegation under subsection (1) shall
be sent by the authority making the delegation—
(a) in the case of a lower council, to the relevant district council; and
(b) in the case of a district council, to the Minister responsible for
local government to be registered and stored, by the district
council or the Ministry as the case may be, and shall be open to
public access.
(4) The instrument of delegation registered under subsection (3) shall
be published in the following manner—
(a) where registered by the Minister, shall be published—
(i) by notice in the Gazette and in the local media at the
expense of the delegating authority; and
(ii) by fixing a copy of the instrument in a conspicuous place
on or near the outer door of the relevant council’s office
during office hours for a period of not less than fifteen
days.
(b) where registered by a district council, shall be published—
(i) by fixing a copy of the instrument in a conspicuous place
on or near the outer door of the relevant council’s offices
during office hours for a period of not less than fifteen
days; or
(ii) in such other manner as is customary in the area of
jurisdiction of the relevant council.

Delegation by a local government council to chairperson, etc.
(1) Subject to the Constitution and the Fourth Schedule, a local
government council may delegate some of its functions, powers or
responsibilities under this Act to—
(a) the chairperson of the relevant council;
(b) a committee of the relevant council;
(c) a joint committee created under section 8(2); or
(d) a council, trust fund or secretariat formed under section 8 of this
Act and article 178 of the Constitution, as may be agreed upon in
the charter.
(2) A delegation under subsection (1) shall—
(a) be accompanied by the necessary resources to enable the person
or body delegated to exercise the functions, powers or
responsibilities; and
(b) be brought to the attention of the public as provided under section
32(4).

District planning authority.
(1) The district council shall be the planning authority of a district.
(2) The district planning authority shall, in addition to the procedures
it establishes for itself, work according to the guidelines established by the
National Planning Authority.
(3) The district council shall prepare a comprehensive and integrated
development plan incorporating plans of lower level local governments for
submission to the National Planning Authority, and lower level local
governments shall prepare plans incorporating plans of lower councils in
their respective areas of jurisdiction.

District technical planning committee.
(1) There shall be a district technical planning committee chaired by
the chief administrative officer consisting of—
(a) heads of department of that district;
(b) any technical person co-opted by the chief administrative officer.
(2) The district technical planning committee shall coordinate and
integrate all the sectoral plans of lower level local governments for
presentation to the district council.

Planning units.
(1) For purposes of carrying out the functions stipulated under
section 35, local governments shall establish planning units.
(2) The department of a district council responsible for economic
planning shall constitute the planning unit and be the secretariat to service
the district technical planning committee.
(3) The technical planning committee of a lower local government
shall consist of all heads of department or sectors in its area of jurisdiction,
and the subcounty chief or town clerk shall be the chairperson.
(4) The technical planning committee referred to in subsection (3)
shall coordinate all plans of lower councils and submit the integrated plans
to their respective councils for consideration.


Functions of an administrative unit council.
The functions of an administrative unit council shall be—
(a) to draw the attention of the district chairperson, the chief
administrative officer and the assistant chief administrative
officer at the county level or the chief at the parish level to any
matter that rouses their concern or interest;
(b) at the county level to advise the area members of Parliament on
all matters pertaining to the county;
(c) at the county and parish level to resolve problems or disputes
referred to it by relevant subcounty or village councils;
(d) to resolve problems identified at that level;
(e) to monitor the delivery of services within its area of jurisdiction;
(f) to assist in the maintenance of law, order and security;
(g) to carry out any functions that may be assigned to it by the
district council or higher local government councils; and
(h) to carry out any other function conferred by law or incidental to
the above.

Functions of a district service commission.
(1) The power to appoint persons to hold or act in any office in the
service of a district or urban council, including the power to confirm
appointments, to exercise disciplinary control over persons holding or acting
in such offices and to remove those persons from office, is vested in the
district service commission.
(2) When considering recruitment of staff in a specialised discipline,
other than education or health services, the commission shall, under the
guidelines provided by the Public Service Commission co-opt at least two
persons specialised in that discipline on the commission.
(3) When considering recruitment of staff in the education or health
services, the commission shall use guidelines provided by the Education
Service Commission or Health Service Commission.
(4) The district service commission shall in relation to its functions
spelt out in subsection (1) act only upon the request and submission of the
relevant council.
(5) The district service commission and its specialised committees
shall meet for the discharge of its functions at least once in six months or as
often as business warrants.
(6) A meeting of the commission shall be presided over by the
chairperson or, in the absence of the chairperson, by a member elected for
that purpose by the members attending the meeting.
(7) Two-thirds of the members of the district service commission or
its specialised committees shall form a quorum at any of its meetings.
(8) In the performance of its functions a district service commission
shall conform to the standards established by the Public Service Commission
for the public service generally.

Chief administrative officer.
(1) There shall be a chief administrative officer for every district who
shall be appointed by the district service commission.
(2) A person shall not be appointed chief administrative officer unless
that person has the following qualifications—
(a) a university degree or equivalent from a recognised university or
institution;
(b) a diploma in public administration or development studies from
a recognised institution;
(c) not less than ten years’ working experience; and
(d) is of high moral character and proven integrity.



Functions of the chief administrative officer.
(1) The chief administrative officer shall be the head of the public
service in the district and the head of the administration of the district council
and shall be the accounting officer of the district.
(2) The chief administrative officer shall—
(a) be responsible for the implementation of all lawful decisions
taken by the district council;
(b) give guidance to the local government councils and their
departments in the application of the relevant laws and policies;
(c) supervise, monitor and coordinate the activities of the district and
lower council’s employees and departments and ensure
accountability and transparency in the management and delivery
of the council’s services;
(d) develop capacity for development and management of the
planning function in the district;
(e) supervise and coordinate the activities of all delegated services
and the officers working in those services;
(f) have custody of all documents and records of the local
government council;
(g) act as a liaison officer between the district council and the
Government;
(h) advise the chairperson on the administration of the council;
(i) assist in the maintenance of law, order and security in the district;
(j) carry out any other duty that may be assigned by the district
council from time to time.
(3) In addition to the duties under subsection (2), the chief
administrative officer shall perform all statutory duties and functions which
he or she is required to do under any other law.
(4) The office of the chief administrative officer shall not remain
vacant for more than three months after the office falls vacant.
Town clerk and functions.
(1) An urban council other than a division council shall have a town
clerk who shall be appointed by the district service commission upon request
by the relevant urban council.
(2) The town clerk shall be the head of the administration of the
relevant urban council and shall—
(a) be responsible for the expending of the council’s funds and be the
accounting officer of the relevant council;
(b) advise the council on legal and administrative matters;
(c) be responsible for the implementation of lawful decisions taken
by the council;
(d) supervise and coordinate the activities of all officers and
departments of the council;
(e) supervise and coordinate the activities of all officers seconded to
the council; and
(f) have custody of all documents and records of the council.
(3) The provisions of section 63 in relation to qualifications and of
section 64 in relation to functions shall apply to the town clerk of a city.
(4) The office of the town clerk shall not remain vacant for more than
three months after the office falls vacant.



FINANCIAL PROVISIONS.
Local Government Finance Commission.
(1) There shall be a Local Government Finance Commission
consisting of seven members appointed by the President for a period of four
years, who shall be eligible for reappointment.
(2) The seven members shall be nominated for appointment by the
President as follows—
(a) three persons nominated by the district councils;
(b) one person nominated by the urban councils;
(c) three members nominated by the Minister in consultation with
the Minister responsible for finance, planning and economic
development.
(3) The members of the Local Government Finance Commission
shall elect, from among themselves, a chairperson and a vice chairperson.
(4) There shall be a secretariat of the Local Government Finance
Commission.
(5) The secretary of the Local Government Finance Commission
shall be appointed by the Local Government Finance Commission;
(6) There shall be such other officers of the Local Government
Finance Commission as shall be determined by the Local Government
Finance Commission with the approval of the Minister.
(7) The officers referred to in subsection (6) shall be appointed by the
Local Government Finance Commission.
(8) The expenses of the Local Government Finance Commission,
including salaries, allowances and pensions payable to persons serving in the
Commission, shall be charged on the Consolidated Fund.

Removal of a member of the Local Government Finance
Commission.
A member of the Local Government Finance Commission, including the
chairperson, may be removed from the commission by the President on the
recommendation of the nominating authority through the Minister but can
only be removed on the following grounds—
(a) inability to perform the functions of that office arising from
physical or mental incapacity;
(b) abuse of office;
(c) corrupt tendencies, misbehaviour or misconduct;
(d) incompetence; or
(e) failure to attend three consecutive ordinary meetings without
valid reasons acceptable to the commission.

Functions of the Local Government Finance Commission.
The Local Government Finance Commission shall—
(a) advise the President on all matters concerning the distribution of
revenue between the Government and local governments and the
allocation to each local government of money out of the
Consolidated Fund;
(b) in consultation with the National Planning Authority, consider
and recommend to the President the amount to be allocated as
equalisation and conditional grants and their allocation to each
local government;
(c) consider and recommend to the President potential sources of
revenue for local governments;
(d) advise the local governments on appropriate tax levels to be
levied by local governments;
(e) deal with disputes between local governments over financial
matters and tender advice relating thereto to the parties involved,
the Minister and the Minister responsible for finance as may be
necessary; and
(f) perform such other functions as Parliament may prescribe.

Local governments budgetary powers and procedures.
(1) Local governments shall have the right and obligation to
formulate, approve and execute their budgets and plans provided the budgets
shall be balanced.
(2) Local governments shall always accord national priority
programme areas preferential budget outlays.
(3) If the Local Government Finance Commission becomes aware
that a local government council budget significantly detracts from priority
programme areas, the commission shall inform the council, and the President
through the Minister for appropriate action.
(4) The local government budget shall reflect all revenues to be
collected or received by the local government, and to be appropriated for
each year.
(5) A local government budget for the ensuing financial year shall
always take into account the approved three-year development plan of that
local government.

Revenue and financial and accounting regulations.
(1) Local governments’ revenue generally shall be regulated as
provided in the Fifth Schedule.
(2) The Minister shall, by statutory instrument, make financial and
accounting regulations prescribing financial and accountability measures for
compliance by all local governments.
(3) Notwithstanding any other penalty imposed by any other law, a
surcharge may be imposed on any councillor or a member of staff who is
responsible for loss of money or loss or damage to property or stores in
accordance with the financial and accounting regulations.

Financial autonomy of urban local governments.
Urban local governments shall have autonomy over their financial and
planning matters in relation to the district councils, but their plan shall be
incorporated in the district plan.

Power to levy taxes.
(1) Local governments may levy, charge and collect fees and taxes,
including rates, rents, royalties, stamp duties, personal graduated tax, and
registration and licensing fees and the fees and taxes that are specified in the
Fifth Schedule.
(2) Each local government shall draw up a comprehensive list of all
its internal revenue sources and maintain data on total potential collectable
revenues.
(3) A local government may collect fees or taxes on behalf of the
Government as its agent; and where a local government acts as an agent, a
portion of the funds collected shall be retained by the local government as
may be agreed upon between the two parties; and any extra obligation
transferred to a local government by the Government shall be fully financed
by the Government.
(4) A village council may, with the approval of the subcounty
council, impose a service fee in the course of execution of its functions.

Financial year.
The financial year of local government councils shall be the period beginning
from the 1st day of July and ending on the 30th day of June in the year
following.

Appropriation of funds.
(1) No appropriation of funds by a local government shall be made
out of the funds of the council unless approved in a budget by its council.
(2) No monies shall be withdrawn from the general fund account or
any other accounts of the district unless the withdrawal has been approved
by the Auditor General or his or her representative.
(3) No financial obligation shall be placed on a local government by
the Government after the enactment of the Appropriation Act without
providing for funds for the discharge of that obligation.
(4) The chairperson of a local government shall, not later than the
fifteenth day of June, cause to be prepared and laid before the council
estimates of revenue and expenditure of the council for the next ensuing
financial year.

Grants from the Government.
(1) The President shall, for each financial year, cause to be presented
to Parliament proposals of monies to be paid out of the Consolidated Fund
as—
(a) unconditional grant in accordance with subsection (2);
(b) conditional grant in accordance with subsection (3);
(c) equalisation grant in accordance with subsection (4).
(2) An unconditional grant is the minimum grant that shall be paid to
local governments to run decentralised services and shall be calculated in the
manner specified in the Seventh Schedule of the Constitution.
(3) A conditional grant shall consist of monies given to local
governments to finance programmes agreed upon between the Government
and the local governments and shall be expended for the purposes for which
it was made and in accordance with the conditions agreed upon.
(4) An equalisation grant is the money to be paid to local
governments for giving subsidies or making special provisions for the least
developed districts and shall be based on the degree to which a local
government unit is lagging behind the national average standard for a
particular service.
(5) Local government councils shall indicate how conditional and
equalisation grants obtained from the Government are to be passed on to
local government councils with a smaller jurisdiction or lower councils.
(6) The Government shall remit conditional, unconditional and
equalisation grants direct to district, city, municipal and town councils.

Borrowing powers.
For the purposes of article 195 of the Constitution, a local government may
borrow money or accept and use a grant or assistance as is provided in the
Fifth Schedule.

Percentage of revenue to be retained or distributed to lower
councils.
(1) In the city and municipal councils, revenue shall be collected by
the division councils, and a division council shall retain 50 percent of all the
revenue it collects in its area of jurisdiction and remit 50 percent to the city
or municipal council.
(2) In rural areas, revenue shall be collected by the subcounty
councils, and a subcounty council shall retain 65 percent, or any other higher
percentage as the district council may approve, of the revenue collected by
it and pass the remaining percentage over to the district.
(3) Where a subcounty fails to remit 35 percent or any lower
percentage approved by the district council under subsection (2), the district
council shall take appropriate measures to make full recovery of the revenue
due to it.
(4) A district council may, with the concurrence of a subcounty,
collect revenue on behalf of the subcounty council but shall remit 65 percent
of the revenue so collected to the relevant subcounty.
(5) Where a district council fails to remit the 65 percent referred to
in subsection (4), the subcounty shall retain a percentage higher than that
provided for in subsection (2) to make full recovery of the revenue due to it
which is withheld by the district council.
(6) The distribution of grants by the subcounty councils to other
councils shall be as is provided under the Fifth Schedule.
Accounts and audit.

Accounts.
Every local government council and administrative unit shall keep proper
books of account and other records in relation thereto and shall balance its
accounts for that year and produce statements of final accounts within four
months from the end of each financial year.

Audit of accounts.
(1) The accounts of every local government council and
administrative unit shall be audited by the Auditor General or an auditor
appointed by him or her.
(2) The Auditor General may carry out surprise audits, investigations
or any other audit considered necessary.
(3) The Auditor General shall give the report of the audited accounts
to—
(a) Parliament;
(b) the Minister responsible for finance;
(c) the Minister;
(d) the local government or administrative unit to which the audit
relates;
(e) the local government public accounts committee;
(f) the Local Government Finance Commission;
(g) the Inspector General of Government; and
(h) the resident district commissioner.

Local government public accounts committee.
(1) There is established in each district, a local government public
accounts committee consisting of—
(a) four members appointed by the district council on the
recommendation of the district executive committee;
(b) one member appointed—
(i) in the case of a district with more than one urban authority,
by an electoral college of the urban council executive
committee members in that district; and
(ii) in the case of a district with only one urban authority, by
the urban council on the recommendation of the urban
executive committee.
(2) A member of the local government public accounts committee
appointed under subsection (1)(a) and (b) shall not be a member of a local
government council or administration.
(3) The members of the local government public accounts committee
shall elect a chairperson from among its members.
(4) Every meeting of the local government public accounts
committee shall be presided over by the chairperson and in his or her absence
by a member elected by the members present.
(5) Three members of the local government public accounts
committee shall form a quorum at any meeting of the committee.
(6) The office of the clerk to the district council shall be the
secretariat to the local government public accounts committee.
(7) A local government public accounts committee shall examine the
reports of the Auditor General, chief internal auditor and any reports of
commissions of inquiry and may, in relation to the reports, require the
attendance of any councillor or officer to explain matters arising from the
reports.
(8) The local government public accounts committee shall submit its
report to the council and to the Minister responsible for local governments
who shall lay the report before Parliament.
(9) The chairperson of the council and the chief administrative officer
or town clerk shall implement the recommendations of the local government
public accounts committee.
(10) The expenses of a local government public accounts committee
shall be met by the district council.
(11) Members of a local government public accounts committee shall
hold office for a period of five years and shall be eligible for reappointment
for one more term only.

Removal of a member of a local government public accounts
committee.
(1) A member of a local government public accounts committee,
including the chairperson, may be removed from the committee by the
district council by a resolution supported by two-thirds of the members of the
council on the recommendation of the executive committee but can only be
removed on the following grounds—
(a) abuse of office;
(b) incompetence;
(c) failure to attend three consecutive ordinary meetings without
valid reasons acceptable to the committee;
(d) inability to perform the functions of that office arising from
physical or mental incapacity.
(2) The seat of a member of local government public accounts
committee shall fall vacant if—
(a) a member dies; or
(b) resigns.
(3) Section 14(18) shall apply to the removal of a member of a local
government public accounts committee.
(4) A vacancy arising out of subsections (1) and (2) shall be filled
following the procedure prescribed in section 88(1).

Internal audit.
(1) Every district, city, municipal or town council shall provide for
an internal audit department.
(2) The head of the internal audit department shall prepare quarterly
audit reports and shall submit them to the council giving a copy to the local
government public accounts committee.
Local government tender boards.

District tender board.
(1) There shall be a district tender board in each district which shall
provide services to the district councils, subcounty council and administrative
units under the district.
(2) The district tender board shall consist of seven members including
the chairperson all of whom shall be appointed by the district council on the
recommendation of the district executive committee.
(3) There shall be a secretary to the district tender board, who shall
be at the rank of assistant chief administrative officer or above.
(4) Members of the district tender board shall hold office for a period
of three years and shall be eligible for reappointment for one more term only.
(5) Every meeting of the district tender board shall be presided over
by the chairperson and in his or her absence by a member elected by the
members present.
(6) Five members of the district tender board shall form a quorum at
any meeting of the board.
(7) In the performance of its functions, a district tender board shall—
(a) conform to the standards established by the central tender board
for procurement of goods, services and works, and shall be
guided by the Local Government Financial and Accounting
Regulations;
(b) act only upon request by the local council seeking the
procurement of goods, services or works.
(8) Every district tender board shall publish a quarterly summary of
all tenders awarded and shall give a copy to all relevant councils in a district,
the Minister, the Inspector General of Government and the Central Tender
Board.

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