PUBLIC FINANCIAL MANAGEMENT SYSTEMS—FIJI
PUBLIC FINANCIAL MANAGEMENT SYSTEMS--FIJI
Key eleMenTS FroM A FInAncIAl MAnAgeMenT PerSPecTIve
ASIAN DEVELOPMENT BANK
PUBLIC FINANCIAL MANAGEMENT SYSTEMS--FIJI
Key Elements from a Financial Management Perspective
June 2017
ASIAN DEVELOPMENT BANK
Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)
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Some rights reserved. Published in 2017.
ISBN 978-92-9257-873-2 (Print), 978-92-9257-874-9 (e-ISBN) Publication Stock No. TCS178906-2 DOI:
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iii
Contents
Figures and Table
v
Acknowledgmentsvi
Abbreviationsviii
I. Introduction
1
II. Legal Framework
3
A. 2013 Constitution of the Republic of Fiji
3
B.Financial Management Act 2004
3
C.Finance Instructions 2010
6
D. Public Enterprise Act 1996
7
III. Key Players
8
A.Ministry of Economy
8
B.Office of the Auditor General
10
C.Reserve Bank of Fiji
11
D.Asian Development Bank
11
IV. Budgeting
12
A. Budget Process
12
B. Budget Recording and Reporting
16
C.State Entities
18
V. Onlending Arrangements
20
VI. Foreign Exchange and Interest Rate Risks
21
VII. Funds Flow Arrangements
22
A.Reimbursement Procedure
22
B.Imprest Fund Procedure
23
C. Direct Payment Procedure
23
mitment Procedure
24
iv
Contents
VIII. Accounting and Reporting
26
A.Accounting Standards
26
B.Cash Basis International Public Sector Accounting Standards
27
C.Accounting Systems
27
D.Responsible Units
30
E.Fiscal Year
31
F.Project Financial Statement Preparation
31
IX. Auditing Arrangements
32
A.Auditing Requirements
32
B.International Standards on Auditing
34
C.Shortcomings Identified through External Audits
34
X. Reporting and Monitoring
36
XI.Summary of Risks and Issues, and Proposed Mitigating Actions
and Improvements
37
Appendixes
1List of State Entities in Fiji
39
2Fiji Institute of Accountants
40
3 Diagrams of Financial Management Information System Modules
43
4 Useful References and Suggested Readings
46
v
Figures and Table
Figures
1Ministry of Economy Organization Structure
8
2
Budget Preparation Steps and Timelines
13
3
Phases of the Public Sector Investment Program
14
4Capital Budgets and Project Budgets Channeled through the PSIP Process
15
5Consolidated Fund Account and Consolidated Trust Fund Account
17
6Funds Flow Arrangements for ADB Projects Using Reimbursement Procedure 22
7Funds Flow Arrangements for ADB Projects Using Imprest Fund Procedure 23
8Funds Flow Arrangements for ADB Projects Using Direct Payment Procedure 24
9Funds Flow Arrangements for ADB Projects Using Commitment Procedure 25
10Fund Accounting Flowchart
30
Table Common Issues, Problems, and Suggestions for Mitigating or Avoiding Risks 37
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