FINANCIAL MANAGEMENT REGULATIONS FEBRUARY 2019
FINANCIAL MANAGEMENT
REGULATIONS
FEBRUARY 2019
IMPORTANT NOTE: The threshold for procurement, asset capitalization and open bidding is currently before Congress
and may be subject to change depending on the final decision taken. These Regulations include the original
thresholds that may be subject to change.
This version of the Regulations also includes comments raised by the Department of Justice as received on
01/18/18and 08/01/18 and other internal comments during the official consultation period. Where the Secretary has
agreed with the comments the draft Regulations have been updated to reflect the recommendations.
? 2/7/2019 Department of Finance & Administration
Page 2
FINANCIAL REGULATIONS
1.
GENERAL ....................................................................................................................................................... 5
1.1.
AUTHORITY ........................................................................................................................................... 5
1.2.
PURPOSE ............................................................................................................................................... 5
1.3.
APPLICABILITY ....................................................................................................................................... 5
1.4.
DEFINITIONS.......................................................................................................................................... 5
1.5.
GUIDELINES ........................................................................................................................................... 9
2.
FINANCIAL DELEGATIONS ........................................................................................................................... 13
3.
GENERAL PLANNING AND BUDGETING ...................................................................................................... 15
4.
5.
3.1.
GENERAL BUDGETING REQUIREMENTS.............................................................................................. 15
3.2.
RESPONSIBILITIES FOR BUDGET FORECASTS ...................................................................................... 16
3.3.
BUDGET TIMETABLE............................................................................................................................ 16
3.4.
ESTIMATES & APPROPRIATION BILL ................................................................................................... 20
3.5.
CHANGES TO APPROPRIATIONS.......................................................................................................... 20
3.6.
ADMINISTRATION OF THE BUDGET .................................................................................................... 21
REVENUE COLLECTION AND RECEIPT.......................................................................................................... 22
4.1.
REVENUE - GENERAL ........................................................................................................................... 22
4.2.
RECEIPT OF REVENUE.......................................................................................................................... 23
4.3.
ISSUE AND COLLECTION OF INVOICES ................................................................................................ 24
4.4.
SAFE CUSTODY OF CASH & CASH EQUIVALENTS ................................................................................ 25
4.5.
BANKING OF REVENUE........................................................................................................................ 25
4.6.
REPORTING THE LOSS OF PUBLIC MONEY .......................................................................................... 27
4.7.
BANK RECONCILIATIONS..................................................................................................................... 28
PROCUREMENT AND PAYMENTS................................................................................................................ 29
5.1.
PROCUREMENT ¨CGENERAL ................................................................................................................. 29
5.2.
PURCHASING OF GOODS & SERVICES ................................................................................................. 33
5.3.
PROCESSING OF PAYMENTS................................................................................................................ 37
5.4.
MAKING PAYMENTS TO SUPPLIERS .................................................................................................... 38
5.5.
NON-COMPLIANCE WITH PROCUREMENT REQUIREMENTS .............................................................. 42
5.6.
TRAVEL EXPENSES ............................................................................................................................... 42
5.7.
PAYROLL .............................................................................................................................................. 51
? 2/7/2019 Department of Finance & Administration
Page 3
6.
5.8.
SENSITIVE EXPENDITURE..................................................................................................................... 55
5.9.
DECLARED STATE OF EMERGENCY...................................................................................................... 60
PROCUREMENT AND OPEN BIDDING.......................................................................................................... 60
6.1.
PROCUREMENT & OPEN BIDDING - GENERAL .................................................................................... 60
6.2.
PROCUREMENT BY SEALED BIDS (OPEN BIDDING) ............................................................................. 61
6.3.
PROCUREMENT BY COMPETITIVE PROPOSALS................................................................................... 67
6.4.
CHANGE ORDERS FROM INITIAL CONTRACT ...................................................................................... 68
6.5.
CONFLICTS OF INTEREST ..................................................................................................................... 69
6.6.
CONFIDENTIALITY AND COMMERCIAL SENSITIVITY ........................................................................... 69
7.
PROPERTY, PLANT & EQUIPMENT .............................................................................................................. 70
8.
IMPREST FUNDS .......................................................................................................................................... 73
9.
8.1.
IMPREST FUNDS - GENERAL................................................................................................................ 73
8.2.
FOREIGN MISSIONS............................................................................................................................. 73
8.3.
FINANCE FIELD OFFICES ...................................................................................................................... 75
8.4.
MARITIME OPERATIONS REVOLVING FUND ....................................................................................... 76
8.5.
SUPPLY STOCK REVOLVING FUND....................................................................................................... 77
JOURNAL VOUCHERS .................................................................................................................................. 77
10. ADMINISTRATION OF PUBLIC PROJECT APPROPRIATIONS......................................................................... 78
10.1.
APPLICABILITY ................................................................................................................................. 78
10.2.
PROJECT CONTROL DOCUMENT ..................................................................................................... 79
11. REPORTING ................................................................................................................................................. 80
11.1.
REQUIRED REPORTS FROM ALLOTTEES .......................................................................................... 80
11.2.
REQUIRED REPORTS FROM SECRETARY OF FINANCE ..................................................................... 81
11.3.
REQUIRED REPORTS FROM DEPARTMENTS AND AGENCIES OF NATIONAL GOVERNMENT .......... 81
11.4.
ECONOMIC & FISCAL UPDATE REPORTING..................................................................................... 81
12. NON-COMPLIANCE WITH REGULATIONS.................................................................................................... 81
12.1.
COMPLIANCE UNIT.......................................................................................................................... 81
12.2.
STATE OF EMERGENCY.................................................................................................................... 81
12.3.
OFFENCES AND PENALTIES ............................................................................................................. 82
12.4.
REPEALER ........................................................................................................................................ 82
? 2/7/2019 Department of Finance & Administration
Page 4
Revised FMR Detail
1.
GENERAL
1.1. AUTHORITY
These regulations are promulgated by the Secretary of Finance and Administration with the approval of the
President of the Federated States of Micronesia (FSM), pursuant to the authority granted to the Secretary by Title
55 of the Code, 227 and 606, and by the President of the FSM pursuant to the authority granted by Title 55 of the
Code, Sections 418, 616, and 621. These regulations and any amendments hereto, shall have the force effect of law.
1.2. PURPOSE
The purpose of these regulations is to implement the provisions, as amended, of the Financial Management Act of
1979, and other laws of the FSM relating to government financial management through the establishment of
National government-wide standards and procedures necessary to provide an adequate degree of fiscal control and
accountability over funds appropriated by the Congress of FSM, allotted to the FSM National Government or
entrusted to the management of the FSM National Government.
1.3. APPLICABILITY
1) Except as otherwise provided by law, these regulations shall apply to:
a) All allottee of FSM appropriation laws;
b) The expenditure of any funds appropriated by the Congress of the FSM; and
c)
U.S Federal grants, or foreign aid channeled through the FSM Government with the President as the
Allottee.
2) Reference made herein to the head of a department or an Allottee of the FSM National Government shall
include his designee, if applicable.
3) Reference made herein to a ¡°subpart¡± shall mean part of these Financial Management Regulations.
1.4. DEFINITIONS
For the purposes of these regulations, unless it is otherwise required or the context requires a different
construction, application, or meaning:
1.4.1. Acquisition cost
Means the cost of the asset including the cost to ready the asset for its intended use. Acquisition cost for
equipment, for example, means the net invoice price of the equipment, including the cost of any modifications,
attachments, accessories or auxiliary apparatus necessary to make it useable for the purpose for which it is
acquired.
Acquisition costs for software includes those development costs capitalized in accordance with generally
accepted accounting practice (GAAP).
Ancillary charges, such as taxes, duty, protective in transit insurance, freight and installation will be included as
part of the acquisition cost of the asset.
1.4.2. Allotment
Defined under Section 215 of the Financial Management Act 1979. ¡°Allotment¡± means the delegation of
authority to a person to create legally enforceable financial obligations in accordance with applicable law on
behalf of FSM within specified limits set forth in an appropriation act of the Congress of the FSM or as may be
required by the terms of funding available from other sources.
1.4.3. Allottee
Shall mean the person designated as such by an appropriation law or the Financial Management Act of 1979, as
amended, or the sub-allottee as designated in the Advice of Allotment form issued by the Office of Budget.
a)
A National Allotteeis an Allottee which is an FSM Government Agency, or an employee, or official of an
FSM Government Agency; and
b)
A non-national allottee is any other allottee.
? 2/7/2019 Department of Finance & Administration
Page 5
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- section 17 1 bank of anytown fdic federal deposit
- executiveoffice of the president the white house
- dod financial management regulation volume 7a chapter 17
- financial management requirements for award recipients
- financial management of parliament amendment act
- financial management operations
- chapter 1 what is financial risk management
- annual financial reporting model regulation table of contents
- december 2020 volume 7a chapter 17 special pay
- local government municipal finance management act
Related searches
- 2019 government financial management conference
- 2019 government financial management c
- dod financial management regulations volume 9
- financial management vs financial accounting
- 2019 government financial management conference gfmc
- financial management association 2019 meeting
- financial management and management accounting
- financial management regulations navy
- financial aid regulations for colleges
- february 2019 news
- financial management regulations dod
- financial management and financial accounting