THE FINANCIAL ADMINISTRATION AND AUDIT ACT

THE FINANCIAL ADMINISTRATION AND AUDIT ACT

FINANCIAL INSTRUCTIONS

Version 1

MINISTRY OF FINANCE AND THE PUBLIC SERVICE

January 1, 2017

The Ministry of Finance & Public Service (MOFPS) has overall responsibility for developing the Government's fiscal and economic policy framework; collecting and allocating public revenues and playing an important role in the socio-economic development of the country in creating a society in which each citizen has every prospect of a better quality of life.

Vision Statement

A Centre of Excellence that enables Sustainable Growth and Development through Sound Policy, Planning and Quality Service Delivery.

Mission Statement

We combine professionalism and expertise in the pursuit of sound socio-economic and financial policies for the achievement of sustainable growth and development.

Core Values

The Ministry's customer service will be built on the following values (FIT TEAM):

F - Fairness I - Integrity T - Teamwork T - Transparency E - Excellence A - Accountability M - Mutual Respect

Priority Goals: Enabling growth and national development through a sound and predictable macroeconomic policy framework that maintains low inflation, stable exchange rates and competitive interest rates; Improving revenue administration by creating a simple, equitable, and competitive tax environment to ensure greater compliance and enhance growth; Strengthening the level of financial accountability, and efficiency of the Public Sector; Strengthening the capacity of the Ministry to effectively regulate financial institutions and combat financial crimes; Improving the internal efficiency and effectiveness of the Ministry.

MOF Desired Outcomes

The cumulative effort and resources will result in four (4) key outcomes:

Stable Macro-Economy Effectively Regulated Ministries, Departments and Agencies (MDAs), and Financial Institutions Effectively Managed Public Funds Satisfied Clientele

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TABLE OF CONTENTS

1 INTRODUCTION .......................................................................................................................................................... 17

1.1 Acronyms ........................................................................................................................... 20 1.2 Definitions .......................................................................................................................... 21

2 MANAGEMENT ARRANGEMENTS ......................................................................................................................... 28

2.1 The Enabling Legal & Regulatory Framework.................................................................. 28 2.2 Financial Instructions .......................................................................................................... 29 2.3 Accounting and Accountable Officers ................................................................................ 30

2.3.1 Financial Secretary ...................................................................................................... 30 2.3.2 Accountant General ..................................................................................................... 30 2.3.3 Accounting Officer ...................................................................................................... 30 2.3.4 Accountable Officers ................................................................................................... 31 2.3.5 Principal Finance Officer............................................................................................. 31 2.4 Financial Oversight ............................................................................................................. 32 2.4.1 Internal Audit............................................................................................................... 32 2.4.2 Audit Committee ......................................................................................................... 34 2.4.3 Public Accountability Inspectorate (PAI)................................................................... 34 2.4.4 Auditor- General ......................................................................................................... 35 2.4.5 Public Accounts Committee (PAC)............................................................................ 36 2.4.6 Public Administration and Appropriations Committee (PAAC ................................. 36 2.5 Establishment and Closure of Ministry, Department and Agency...................................... 37 2.5.1 Establishment of Ministry, Department and Agency ................................................. 37 2.5.2 Closure of Ministry, Department and Agency............................................................ 38 2.6 Financial Misconduct ........................................................................................................ 39 2.6.1 Surcharge ..................................................................................................................... 39 2.6.2 Authority to Surcharge ............................................................................................... 39 2.6.3 Reporting Activities Liable to Surcharge ................................................................... 39 2.6.4 Surcharge Proceedings ............................................................................................... 39 2.6.5 Remedy for Person Surcharged .................................................................................. 40

2.6.6 Notification of Surcharge ............................................................................................. 40 2.6.7 Recovery of Amount Surcharged ................................................................................. 40

3 BUDGET MANAGEMENT........................................................................................................................................... 41

3.1 The Enabling Legal and Regulatory Framework ............................................................... 41 3.2 Financial Instructions ......................................................................................................... 45 3.3 Financial Year/Fiscal Year................................................................................................. 45 3.4 Budget Call......................................................................................................................... 45 3.5 Preparation of Expenditure and Revenue Estimates .......................................................... 47 3.6 Supplementary Estimates ................................................................................................... 48 3.7 Reallocation (Virement) ..................................................................................................... 48

4 TREASURY MANAGEMENT ..................................................................................................................................... 50

4.1 The Enabling Legal and Regulatory Framework ................................................................ 50 4.2 Financial Instructions ......................................................................................................... 53 4.3 The Consolidated Fund ...................................................................................................... 53

4.3.1 Purpose of the Consolidated Fund .............................................................................. 54 4.3.2 Custody of the Consolidated Fund ............................................................................. 54 4.3.3 Withdrawals from the Consolidated Fund .................................................................. 54 4.3.4 Repayment of Amounts due to Consolidated Fund through Warrant ........................ 54 4.3.5 Operation of the Consolidated Fund........................................................................... 54 4.4 Other Funds ........................................................................................................................ 54 4.4.1 Contingencies Fund .................................................................................................... 54 4.4.2 Trust Funds ................................................................................................................. 54 4.4.3 Treasury Deposits ....................................................................................................... 55 4.4.4 Revenue Bank Account .............................................................................................. 55 4.5 Central Treasury Management System (CTMS)................................................................ 55 4.5.1 CTMS Definition ........................................................................................................ 55 4.5.2 Centralised Payments ................................................................................................. 55 4.5.3 CTMS Web Portal ...................................................................................................... 56 4.5.4 Central Payment Account (CPA) ............................................................................... 56 4.5.5 Treasury Single Account (TSA) ................................................................................. 56 4.5.6 Taxpayer Registration Number and Bank Account.................................................... 57

4.5.7 Foreign Exchange Payments ...................................................................................... 57 4.5.8 Appropriations-in-Aid ................................................................................................ 58 4.5.9 Surrender of Balances to Consolidated Fund ............................................................. 58 4.6 Uniformed Chart of Accounts ............................................................................................. 58

5 REVENUE AND EXPENDITURE ............................................................................................................................... 59

5.1 The Enabling Legal and Regulatory Framework .............................................................. 59 5.2 Financial Instructions ........................................................................................................ 59 5.3 Receipt of Public Money................................................................................................... 60

5.3.1 Responsibility for Collection of Revenue .................................................................. 60 5.3.2 Revenue Bank Account .............................................................................................. 60 5.3.3 Responsibility of Principal Receivers of Revenue and Accounting Officers............. 60 5.3.4 Official Revenue Receipts .......................................................................................... 61 5.3.5 General Receipt Book................................................................................................. 61 5.3.6 Special Receipts.......................................................................................................... 62 5.3.7 Computer Generated Receipts .................................................................................... 62 5.3.8 Preparation of Receipts............................................................................................... 62 5.3.9 Cancellation of Receipt .............................................................................................. 63 5.3.10 Acceptance of Cheques ............................................................................................ 63 5.3.11 Criteria for Acceptance of Cheques.......................................................................... 64 5.3.12 Stale-dated Cheques ................................................................................................. 64 5.3.13 Dishonoured Cheques ............................................................................................... 64 5.3.14 Cash Cheques ........................................................................................................... 64 5.3.15 Bills of Exchange...................................................................................................... 65 5.3.16 Credit and Debit Cards ............................................................................................. 65 5.3.17 Foreign Currency Card ............................................................................................. 65 5.3.18 Daily Reconciliation of Point of Sale [Debit/Credit Cards Collection) ................... 66 5.3.19 Registered Mail......................................................................................................... 66 5.3.20 The Value Book ........................................................................................................ 67 5.3.21 Uncollected Revenue ................................................................................................ 67 5.3.22 Miscellaneous Revenue ............................................................................................ 67 5.3.23 Appropriations-in-Aid .............................................................................................. 67

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