CHAPTER 348
PUBLIC FINANCE ACT

[SUBSIDIARY LEGISLATION]

INDEX TO SUBSIDIARY LEGISLATION

   REGULATIONS

      The Public Finance Regulations

REGULATIONS

THE PUBLIC FINANCE REGULATIONS

TABLE OF CONTENTS

   Regulation

Title

PART I
PRELIMINARY PROVISIONS

   1.   Citation.

   2.   Interpretation.

   3.   Officers to be conversant with Regulations.

PART II
FINANCIAL CONTROL

   4.   Power to authorise expenditure.

   5.   Legislative control of revenue.

   6.   Expenditure of international loans.

PART III
DUTIES AND RESPONSIBILITIES OF MINISTER

   7.   Responsibilities and powers of the Minister.

   8.   Responsibilities of other Ministries and Departments.

PART IV
DUTIES AND RESPONSIBILITIES OF OFFICERS

   9.   The Permanent Secretary.

   10.   The Accountant-General.

   11.   Accounting Officers.

   12.   Directives likely to cause over-commitment or overspending.

PART V
LOSSES

   13.   Losses.

   14.   Write off of losses.

   15.   All written off sums to be included in Supplementary Appropriation Bill.

   16.   Annual Statement of losses.

   17.   Classification of losses.

   18.   Cash losses.

   19.   Stores losses.

   20.   Losses by claims, waivers or abandonment.

   21.   Losses through fruitless or nugatory payments.

   22.   Action by officers on discovery of losses.

   23.   Large or unusual losses.

   24.   Corrective action.

   25.   Action to be taken by the Minister.

   26.   Recovery action subject to judicial review.

   27.   Unauthorised or excess payment treated as large or unusual loss.

PART VI
AUDIT COMMITTEES AND INTERNAL AUDIT

   28.   Internal audit service.

   29.   Role of the Accountant-General.

   30.   Audit Committees.

   31.   Audit Committees membership.

   32.   Audit Committees functions.

   33.   Definition of internal audit and internal control.

   34.   Duties of Internal Audit Service Unit.

   35.   Ministry, Department or Agency to comply with instructions.

PART VII
ESTIMATES OF REVENUE AND EXPENDITURE

   36.   Micro-economic and fiscal framework and Annual Estimates.

   37.   Budget guidelines.

   38.   Draft estimates.

   39.   Estimates of revenue.

   40.   Estimates of expenditure.

   41.   Ambit of the vote.

   42.   Personal emoluments.

   43.   Other recurrent expenditure.

   44.   Capital Expenditure.

   45.   Control of capital works and projects.

PART VIII
AUTHORITIES FOR EXPENDITURE

   46.   The General Warrant.

   47.   Requisition to Incur Expenditure.

   48.   Departmental control.

   49.   Supplementary provision.

   50.   Supplementary Appropriation Act.

   51.   Virement Warrants.

   52.   Excess and unauthorised expenditure.

PART IX
THE BASIS OF ACCOUNTING AND THE PREPARATION OF THE ANNUAL ACCOUNTS

   53.   Basis of accounts.

   54.   Suspense accounts.

   55.   Appropriation accounts.

   56.   Commercial government activities.

PART X
RECEIPTS

   57.   Responsibilities for revenue collection.

   58.   Difficulty in collection to be reported.

   59.   Failure to account to be reported.

   60.   Collectors of revenue.

   61.   Limitations on officers who may collect.

   62.   Revenue to be accounted for gross.

   63.   Crediting revenue to year of account.

   64.   Vouching of receipts.

   65.   Responsibility for control of receipts.

   66.   Receipt books to be checked.

   67.   Safe custody of receipt books.

   68.   Preparation of receipts.

   69.   No alterations to be made.

   70.   Receipts to be issued immediately.

   71.   Inward remittance by mail.

   72.   Notice of entitlement to receipts.

   73.   Foreign moneys not to be accepted.

   74.   Acceptance of cheques.

   75.   Dishonoured cheques.

   76.   Posting of receipt.

   77.   Surplus collection.

   78.   Payment of receipts into a bank or Treasury.

   79.   Checking of records.

   80.   Refunds of revenue and drawbacks.

   81.   Overpayments recovered.

   82.   Vouchers to be cross-referenced.

   83.   Arrears of revenue returns.

PART XI
PAYMENTS

(a) Control and Vouching of Payments

   84.   Method of payment.

   85.   Charging to year of account.

   86.   Payment vouchers.

   87.   Officer who signs shall certify accuracy.

   88.   Accounting officer responsible for all disbursements made.

   89.   Mode of signing payment vouchers.

   90.   Accountability for unauthorised or irregular payments.

   91.   Vote Control Registers, consequences of unvouched payments and incorrect or incomplete vouchers.

   92.   Role of Accountant-General to ensure payment.

   93.   Modes of making payments.

   94.   Payment to be made on person to whom it is addressed.

   95.   Missing vouchers or supporting documents.

(b) Imprests

   96.   Authorisation of imprests.

   97.   Issue of imprests.

   98.   Imprests to be issued to the holder.

   99.   Custody of imprests.

   100.   Duty of imprest holder.

   101.   Recoupment of imprests.

   102.   Submission of account on standing imprests.

   103.   Retirement of imprests, responsibility of holder of imprests.

(c) Loans and Advances

   104.   Authority for loans and advances.

   105.   Loans and advances to be secured by agreements.

   106.   Accountant-General to control issues and repayments.

   107.   Accountant-General to maintain accounts.

   108.   Individual loan accounts.

(d) Salaries and Wages

   109.   Management of personal emoluments.

   110.   Custody of records of personal emoluments.

   111.   Certificate of appropriate forms by Accountant-General.

   112.   Balance of salary or allowance due to an officer.

   113.   Responsibility of Accounting Officers on books of accounts.

   114.   Salary.

PART XII
ACCOUNTS AND BOOKKEEPING

   115.   Classification of accounts.

   116.   All accounting entries to be vouched.

   117.   Form of accounts.

   118.   Use of computer-based accounting systems.

   119.   Security of accounting systems.

   120.   Audit trail.

   121.   Security and passwords.

   122.   Provision of technical and backup support.

   123.   Inspection and production of records.

   124.   Alteration, corrections, etc.

   125.   Frequent receipt of corrected documents.

   126.   Treasury cash books generally.

   127.   Treasury journals.

   128.   Sub-Treasury accounts.

   129.   Deposit accounts.

   130.   Maintenance of deposit accounts.

   131.   Balances of individual deposit accounts.

   132.   Duty to satisfy the purpose for refund.

   133.   Payment of unclaimed deposits.

   134.   Investments and unquoted stocks.

   135.   Public debt.

   136.   Standard forms.

   137.   Preservation of accounting records.

   138.   Principle of efficient accounting.

   139.   Accounting records.

   140.   Destruction of accounting records.

PART XIII
CUSTODY AND SECURITY OF PUBLIC MONEY

(a) Strongrooms, Safes and Strongboxes

   141.   Provision of security facilities.

   142.   Use of security facilities.

   143.   Custody of duplicate keys, written records, etc.

   144.   Duty of assignment officers during handover of strongrooms, etc.

   145.   Records of strongrooms.

   146.   Strongrooms, etc., having different locks.

   147.   Contents of strongrooms, safes, etc.

   148.   Safes to be secured and locked.

   149.   Custody of public money and valuables.

   150.   Money which may be retained in strongrooms, etc.

   151.   Keeping of certain items in strongrooms, etc.

   152.   Surprise inspections of strongrooms, etc.

   153.   Security of cash in transit.

(b) Bank Accounts and Cheques

   154.   Operation of bank accounts.

   155.   Authority of Accountant-General to open bank account.

   156.   Prohibition to overdraw bank account.

   157.   Signatories of cheques.

   158.   Arrangements in case of emergency.

   159.   Issue of cheques.

   160.   Bank to be advised on lost or mislaid cheques.

   161.   Cheque books.

   162.   Reconciliation of bank accounts.

(c) Boards of Survey

   163.   Appointment of Boards of Survey.

   164.   Composition of Boards.

   165.   Notification of appointment, etc.

   166.   Conduct of business by Boards of Survey.

   167.   Rules relating to conduct survey.

   168.   Reports of Board of Survey.

(d) Handing-over Procedures

   169.   Duties of officer handing over.

   170.   Duties of officer taking over from another officer.

   171.   Shortages and discrepancies found during hand-over.

   172.   Distribution of statements.

   173.   Procedure on illness or absence of officer.

   174.   Procedure where taking over cannot be made.

   175.   Loss of accountable documents and action to be taken.

PART XIV
PUBLIC STORES

(a) Care and Custody of Stores

   176.   Inspection of stores.

   177.   Regular checks of stores.

   178.   Scrutiny of inspection report by Audit Department.

   179.   Scales, weights and measures to be tested.

   180.   Key holders.

   181.   Duties of stores officers.

   182.   Verification of stock balance.

   183.   Routing duties of storekeeper.

   184.   Installation of fire fighting facilities.

   185.   Care with respect to deteriorating stocks.

   186.   Care of very attractive items.

(b) Classification of Stores

   187.   Distinction between allocated and unallocated stores.

   188.   Distinction between expendable and unexpendable stores.

   189.   Accountant-General to prescribe items of stores.

   190.   Unexpendable stores to remain on inventory.

(c) Receipt of Stores

   191.   Procedure on receipt at stores.

   192.   Duty of receiving storekeepers.

   193.   Examination of stores.

   194.   Short deliveries.

   195.   Foodstuffs.

   196.   Liquid fuels.

   197.   Bulk deliveries.

   198.   Receipt of stores to be brought on charge.

   199.   Claims in case of deficiencies or damage.

   200.   Claims for deficiencies or damage.

   201.   Limitation on claims.

   202.   Arrangements where stores are purchased.

(d) Stores Accounting Procedure

   203.   Stores ledgers.

   204.   Maintenance of separate folio of ledger.

   205.   Ledger folios to be indexed alphabetically.

   206.   Ledgers may be opened.

   207.   Recording of balances carried forward.

   208.   Ruling off of stores ledger.

   209.   Entries to be made in typescript.

   210.   Amendment of stores ledger.

   211.   Bin or tally cards.

   212.   Stores vouchers and use of issue vouchers.

   213.   Use of stores vouchers.

   214.   Stores requisitions and issue vouchers.

   215.   Control of stores issue vouchers, etc.

   216.   Posting of issue voucher to stores ledgers.

   217.   Posting of bin or tally cards.

   218.   Copy of voucher must "marry" the copy retained by officer.

   219.   Prohibition of amendment of vouchers.

   220.   Posting of items in stores ledger.

(e) Unallocated Stores

   221.   General procedures to be accounted for by value and quantity.

   222.   Authority for unallocated stores.

   223.   Accounting for unallocated stores.

   224.   Calculation of value of unallocated stores.

   225.   Stores received book.

   226.   Costs of items, invoice price, freight, etc., to be entered in stores book.

   227.   Calculation of issue price of unallocated stores.

   228.   Revision of issue price.

   229.   Issues of unallocated stores.

   230.   Accounting for returned stores.

   231.   Issues of unallocated stores.

   232.   Acknowledgement of debit of value of stores.

   233.   Monthly issue of summaries.

   234.   Preparation of separate summaries.

   235.   Issue of unallocated stores, etc., use of summaries.

   236.   Accounting for surplus stores.

   237.   Procedure at end of financial year.

   238.   Tabular summary of unallocated stores.

PART XV
STOCK VERIFICATION

   239.   All stocks to be verified annually.

   240.   Duties of stock verifier.

   241.   Stock verifier to visit stores.

   242.   Stock verifier to count and record.

   243.   Stock verifier to check figures.

   244.   Stock verifier to consider if stocks are unserviceable or obsolete.

   245.   Report by stock verifier.

   246.   Appointment of Boards of Survey.

   247.   Conduct of examination by Boards.

   248.   Hand-over of duties of stores officers.

   249.   Responsibility of officer taking over charge of stores records.

PART XVI
LOSS, WRITE-OFF, CONDEMNATION AND DISPOSAL OF STORES

   250.   Losses of stores.

   251.   When accounting losses of stores.

   252.   Write-off of stores.

   253.   Authority of Permanent Secretary in writing-off.

   254.   Condemnation of unserviceable stores, etc.

   255.   Appointment of Board of Condemnation.

   256.   Board to conduct business in presence of storekeeper.

   257.   Unwanted serviceable stores, etc.

PART XVII
SALE, HIRE AND LOAN OF STORES, PLANT AND EQUIPMENT

   258.   Sale of stores, etc.

   259.   Computation of costs of Government property.

   260.   Hire or loan of stores, etc.

   261.   Loaned or hired items to be taken off ledger or inventory.

   262.   Inspection of Loan and Hire Register to be initiated.

PART XVIII
FURNITURE, EQUIPMENT, PLANT, VEHICLES, TOOLS AND LIVESTOCK

   263.   Purchase of furniture equipments, etc.

   264.   Accountability of non-expendable stores.

   265.   Furniture and equipment to be charged in master inventory.

   266.   Individual location to be evidenced by two inventories.

   267.   Physical check-up of office, quarter, etc., against location inventory.

   268.   Physical check-up of items.

   269.   Master inventory to apply in cases of vehicles, launches, etc.

   270.   Treatment of major items.

   271.   Library fund office books to be charged in catalogues.

   272.   Library and stock of books.

   273.   Accounting officers keep inventories on livestock.

   274.   Details of disposition of animals.

   275.   Counting of animals.

   276.   Logbooks.

   277.   Details of journey, use of fuel, etc.

   278.   Entries in the logbooks etc.

   279.   Use of Government conveyances.

   280.   Authority to use Government vehicle, etc.

CHAPTER 348
THE PUBLIC FINANCE ACT

(Section 9)

[2nd July, 2001]

G.N. No. 132 of 2001

PART I
PRELIMINARY PROVISIONS (regs 1-3)

1.   Citation

   These Regulations may be cited as the Public Finance Regulations.

2.   Interpretation

   In these Regulations, unless the context otherwise requires–

   "Accountant-General" means a person appointed by the President pursuant to section 7 of the Act;

   "Accounting Officer" means any officer appointed by the Paymaster-General pursuant to section 8 of the Act;

   "Act" means the Public Finance Act *;

   "agency" includes any agency established under the Executive Agencies Act *;

   "Appropriation Act" means any Act to apply a sum out of the Consolidated Fund to the services of a Finance year;

   "capital expenditure" has the meaning ascribed to it in Regulation 43;

   "Chapter" means a group of revenues or expenditures of a common nature;

   "commitment" means a contract or other arrangement providing for a payment;

   "Consolidated Fund" means the Consolidated Fund of the Government of the United Republic of Tanzania;

   "Controller and Auditor-General" means the person appointed or deemed to have been appointed as such under the Constitution of the United Republic of Tanzania;

   "financial Year" means a period of twelve months ending on 30th June;

   "generally accepted accounting practice" means accounting practices and procedures recognised by the accounting profession as appropriate for reporting financial information relating to government, a ministry or department, a Fund, an Agency or other reporting unit, being practices and procedures that are consistent with the Act and any relevant appropriation Act;

   "Government" means the Central Government and local government authorities;

   "Head" means a group of estimates forming a main division of the Estimates of Expenditure;

   "instruction" means any written instruction, direction or order issued under the authority of the Act;

   "item" means a group of sub-items;

   "Minister" means the Minister responsible for matters relating to finance;

   "outputs" means goods produced or services provided;

   "Permanent Secretary" means the Permanent Secretary of the Ministry responsible for matters relating to Finance;

   "programme" means a functional area under a Head which generates outputs;

   "propriety" means the requirement to act in relation to public monies in accordance with the intentions of Parliament and in particular those expressed through its Public Accounts Committee;

   "public moneys" includes:

   (a)   the public revenues of the United Republic of Tanzania;

   (b)   any trust or other moneys held, whether temporarily or otherwise, by an officer in his official capacity, either alone or jointly with any other person, whether an officer or not;

   "public Officer" means any person in the employment of the Government;

   "public Property" means resources owned by the Government or in the custody or care of the Government;

   "resources" includes moneys, stores, property, assets, loans and investments;

   "statutory expenditure" means expenditure charged by an Act of Parliament (including the Act) on the Consolidated Fund, but does not include the expenditure of moneys appropriated or granted by an Appropriation Act or Supplementary Appropriation Act;

   "subchapter" means a group of items of expenditure with the same economic classification;

   "sub-head" means an administration subdivision of a Head;

   "sub-item" means and input or cost;

   "Supplementary Appropriation Act" means any Act, the purpose of which is to supplement the appropriation already granted by an Appropriation Act;

   "Vote" means a group of estimates of expenditure for which an appropriation has been made by an Appropriation Act or Supplementary Appropriation Act.

3.   Officers to be conversant with Regulations

   Every Permanent Secretary, head of department and an accounting officer shall ensure that all public officers under his control have access to copies of these Regulations and are fully conversant with the financial and accounting procedures and requirements embodied in them.

PART II
FINANCIAL CONTROL (regs 4-6)

4.   Power to authorise expenditure

   (1) For purposes of having the control of public money the National Assembly shall be vested with exclusive right to authorise public expenditure, through the approval of annual Estimates of Expenditure and the enactment of Appropriation Acts.

   (2) The Appropriation Act and the approved Estimates of Expenditure shall constitute the means by which the National Assembly exercises control over the expenditure of public moneys by the Government during the year to which they relate.

   (3) When the Estimates have been approved and the Appropriation Act enacted, the expenditure for the year shall be held and arranged in accordance with the Heads and sub-heads contained therein and shall be limited by the provision in each item shown in the Estimates of Expenditure, and it may only be increased or varied by the National Assembly or in accordance with the provisions of the Public Finance Act or under general or specific authority delegated by the National Assembly.

   (4) The Appropriation Act shall allocate funds by vote and any variation in such allocation shall be approved by the National Assembly in a further Appropriation Act(s). The division of the funds by sub-head and item shall be controlled by the Minister under the authority of Section 5(1)(b) of the Public Finance Act and any variation in the amount allocated to a sub-head or item by such division shall have the prior approval of the Minister.

5.   Legislative control of revenue

   (1) The revenue from duties, licenses, taxes, and any other source and the circumstances in which they shall be required to be paid are controlled by the National Assembly by the enactment of the relevant Acts, or regulations to be made thereunder.

   (2) In the case of charges for Government services, they shall be costed on the basic principle that the cost of the services are to be covered by the revenue obtained from the charges raised and if that is not achieved the services shall in effect be given a hidden subsidy from public moneys and control of expenditure by the National Assembly shall thereby be improperly avoided.

6.   Expenditure of International Loans

   For the avoidance of doubt, no public moneys may be spent if the expenditure thereof would contravene the terms and conditions attached to any grant or loan made available to the Government by any other Government, Institution or Authority, or any instructions which may for the time being be in force regulating the issue of money from such other Government, Institution or Authority's funds.

PART III
DUTIES AND RESPONSIBILITIES OF MINISTERS (regs 7-8)

7.   Responsibilities and powers of the Minister

   (1) The Minister shall be responsible for the development and implementation of a macroeconomic and fiscal policy framework for the Government.

   (2) In addition to subregulation (1), the Minister shall also be responsible for maintaining the financial control of the National Assembly and shall have the duty to account fully to it.

   (3) For purposes of ensuring proper discharge of responsibilities under subregulations (1) and (2) the Minister shall be empowered to supervise, control and direct all matters relating to the financial affairs of the Government.

   (4) In particular the Minister shall be responsible for–

   (a)   developing and implementing a macroeconomic and fiscal policy framework for the Government;

   (b)   the co-ordination of international and inter-governmental financial and fiscal relations;

   (c)   advising Government on the total of resources to be allocated to the public sector in the light of its objectives and the economic and financial environment;

   (d)   advising Government on the level of resources appropriate for individual programmes, taking account of its policies and commitments;

   (e)   ensuring the maintenance of systems both centrally and in Ministries and Departments for the planning, allocation, budgeting and control of resources;

   (f)   supervising the use of resources by Government to ensure that they are used economically, efficiently and effectively and that value for money is achieved;

   (g)   approving the estimates of revenue and expenditure for presentation to the National Assembly;

   (h)   the establishment and maintenance of an effective system of accounts within Government; and

   (i)   the establishment and maintenance of proper practices in the handling and expenditure of public money and property.

8.   Responsibilities of other Ministries and Departments

   (1) The sector Minister or head of department shall be responsible for implementation of the Ministry's policy and its statutory functions in the most economic, efficient and effective manner within its overall allocation and any cash or other financial limits imposed by the Minister of Finance.

   (2) Ministries and Departments must ensure that–

   (a)   all resources, including money, manpower and capital assets are allocated and deployed to best effect; and

   (b)   all controls such as those contained in the approved Estimates and Warrants are strictly observed.

   (3) It shall be the responsibility of a Ministry or Department to co-operate with the Ministry of Finance on the provision of information to enable proper and effective advice to be given to the Minister on the effective discharge of his duties and responsibilities as set out in the Act and in regulation 7(4).

   (4) For purposes of ensuring proper discharge of the responsibility under subregulation (3), every Ministry and Department shall–

   (a)   consult with the Permanent Secretary on any new proposals which would commit the Government to find resources in addition to an agreed programme before a paper is circulated to Cabinet; and

   (b)   consult with the Permanent Secretary at a formative stage in policy discussions which could have substantial implications for its central responsibilities.

   (5) Every Ministry, Agency or Department shall be responsible to ensure that information is available to the general public in respect of its activities and finances and for this purpose each Ministry, Agency or Department shall prepare and make available to the general public an Annual Report stating out–

   (a)   the overall budget strategy;

   (b)   the nature and objectives of each main programme;

   (c)   assessments for output and performance against objectives;

   (d)   a summary of the financial results for the fiscal year of the Ministry, Agency or Department in a form approved by the Accountant-General;

   (e)   the plans for the year ahead, as approved by Parliament; and

   (f)   the provisional plans for the two subsequent years.

   (6) The Accounting-Officer appointed under the provisions of the Act shall be responsible for the discharge of the duties specified under these Regulations.

   (7) The Permanent Secretary in a sector Ministry shall be responsible for the discharge of responsibilities for the money entrusted to the Ministry, for the use made of its resources, and for the control of assets in its keeping such as land, buildings or other property.

   (8) The administrative structure of a Ministry or Department, or the adoption of modern management and accountability arrangements such as those involved in the establishment of Executive Agencies, may require the appointment of additional Accounting Officers within a Ministry or Department.

   (9) Where one or more officials, other than the Permanent Secretary are appointed as Accounting Officers for certain votes or accounts, a clear understanding of their relationship not only with their Minister but also with the Permanent Secretary shall be established.

   (10) The Permanent Secretary shall be in charge of the Ministry and in particular, of its organisation, management and staffing and department procedure in financial and other matters, and he shall be required to ensure that these promote the efficient and economical conduct of all its affairs, and safeguard financial propriety and regularity throughout the Ministry.

   (11) Any additional Accounting Officers appointed under subregulation (8), shall be responsible for the votes and accounts assigned to them.

PART III
DUTIES AND RESPONSIBILITIES OF OFFICERS (regs 9-12)

9.   The Permanent Secretary

   (1) The Permanent Secretary shall be the administrative head of the Ministry and shall exercise overall administrative control over it in the name of the Minister, and he shall be responsible for ensuring that the Ministry is responsive to the needs of the Minister in the discharge of his statutory and political duties and in particular shall ensure that prompt and effective advice is made available to the Minister whenever required.

   (2) The Permanent Secretary shall be responsible to the Minister for the effective application of the Act and these Regulations.

   (3) In order to discharge this responsibility properly the Permanent Secretary shall, prior to exercising any function conferred on him under the Act, advise the Minister of his or her intended action and in particular when acting in his capacity as Paymaster General under section 8 of the Act he shall advise the Minister of the intended appointment of Accounting Officers.

   (4) In order to discharge his duties under the Act and these Regulations and to ensure compliance with any instruction or direction issued under them, the Permanent Secretary or any other Officer authorised by him in writing in that behalf shall be entitled to issue instructions to Accounting Officers which are not inconsistent with the Act or these Regulations or inspect all officers of the Government and be availed with all information, documents and records he may require with regard to the money and property of the Government.

   (5) The Permanent Secretary may be consulted by Accounting Officers on any matter concerning the application of the provisions of the Act and he shall bring to the immediate attention of the Minister any defect in them which may result in a diminution of control over the assets and finances of the Government and within the limitations imposed by the Act and these Regulations, the Permanent Secretary may give such directions and instructions as he or she may consider necessary for the advantage, economy and safety of public money and public property.

   (6) The Permanent Secretary shall be responsible for ensuring an effective system is in place for the collection of information to ensure the timely and effective preparation of the Annual estimates of Expenditure for consideration and approval by the Minister and submission to the National Assembly and he shall also have a duty to ensure that such estimates are prepared in accordance with any general or specific direction of the Minister and that they reflect, as can best be ascertained at the time, good value for money and the effective use of Government's resources.

10.   The Accountant-General

   (1) The Accountant-General's Department shall be responsible for the collection of government's revenue from or on behalf of Accounting Officers, the settlement of bills, accounts and other charges on behalf of Accounting Officers and the management of the cash resources generated by these transactions.

   (2) The Accountant-General shall be the Head of the Accountant-General's Department, the principal accounting officer of the Government and the chief Adviser to the Minister and Permanent Secretary on accounting matters.

   (3) The Accountant-General shall be responsible to the Permanent Secretary and shall be charged with the responsibility for the compilation and management of the accounts of the Government, and within the limitations imposed by the Act and these Regulations, he or she may give such directions and instructions as he may consider necessary for the better performance of his duties and responsibilities under the Act and these Regulations.

   (4) It shall be the duty of the Accountant-General, subject to any general or specific directions issued by the Permanent Secretary, to–

   (a)   specify for every Ministry division, department, fund, agency or other unit required to produce accounts under section 25 of the Act the basis of the accounting to be adopted and the classification system to be used and shall ensure that an appropriate system of account is established in each of them which is in accordance with Generally Accepted Accounting Practice, and which ensures that all monies received and paid by the Government are brought promptly and properly to account;

   (b)   ensure that the system of internal control in every Government Ministry, Officer, Fund, Agency or other unit required to produce accounts under section 25 of the Act is appropriate to the needs of the organisation concerned and conforms to internationally recognised standards;

   (c)   ensure that the internal audit function in each Government Ministry, Officer, Fund, Agency or other unit required to produce accounts under section 25 of the Act is appropriate to the needs of the Organisation concerned and conforms to internationally recognised standards in respect of its status and procedures;

   (d)   to refuse payment on any voucher wrong or insufficient in content or authority, or which contravenes any regulations, orders, directions or instructions properly made or given for the management of public moneys, or which, in his opinion, is in any way unacceptable in support of a charge on public funds;

   (e)   to ensure that adequate provision is made for the safe custody of public moneys, securities, revenue receipt books, licenses and other documents of value;

   (f)   to exercise supervision over the receipt of public revenue to ensure that it is collected punctually and with the least possible delay; in the performance of this duty the Accountant-General shall ensure that he obtains regular returns of arrears of Revenue from departments so that he may be aware of the nature and extend of the outstanding revenue;

   (g)   to bring promptly to account under the proper Heads, sub-heads and items or other accounts as may be appropriate, all receipts of public moneys paid to, or accounted for, to him;

   (h)   to supervise the expenditure and other disbursements of the Government and to report to the Permanent Secretary in writing, any expenditure or disbursement which after due enquiry appears to him to be excessive, extravagant or unauthorised;

   (i)   to exercise effective supervision over all the officers of the Treasury entrusted with the receipt and disbursement of public moneys;

   (j)   to carry out sufficient checks, including surprise inspections within the Treasury and at all other Departments and officers, to ensure that all regulations, orders, directions and instructions relating to the receipt, disbursement, safety, custody and control of public moneys, stamps, securities, stores and other public property are being complied with and to ensure that the accounts and controls provide full and effective protection against losses or irregularities;

   (k)   to report to the Permanent Secretary in writing any defects in the departmental custody, control or collection of public moneys, securities, stores and other public property;

   (l)   to ensure that the financial terms and conditions of any trust, loan, grant or grant-in-aid are fully complied with; and

   (m)   to prepare promptly and accurately all financial statements and returns for which he is responsible and to render the accounts promptly for audit.

   (5) Notwithstanding any delegation to him under section 6(5) of the Act, the Accountant-General shall be entitled to inspect all Ministeries, Officers and Agencies and access at all times and shall be given all available information he may require or consider necessary for the purpose of the discharge of his duties under subregulation (4)(a), (b), (c) and (k).

   (6) The Accountant-General shall report annually to the Permanent Secretary on the discharge of his function under this Act, identify any defect, shortcoming or other factor which in his opinion has affected materially the Minister's responsibility under section 5 of the Act and identifying for the current and following financial years

   (a)   the basis of accounts required to be adopted under subregulation (4)(a) of this regulation;

   (b)   any difference between Generally Accepted Accounting Practice recommended by the accounting profession for use in the Government and that specified by him for use under the provisions of subregulation (4)(a) of this regulation; and

   (c)   the basis on which the standards required by subregulation (4)(b) and (c) have been set.

   (7) A copy of the report shall be sent to the Controller and Auditor-General.

11.   Accounting Officers

   (1) An Accounting Officer who shall be normally the Permanent Secretary of the respective Ministry or Head of Department, shall be appointed in writing by the Permanent Secretary in his capacity as Paymaster General to be personally and pecuniarily responsible for each Head of revenue and expenditure and who shall be the public officer with overall responsibility and accountability for the collection and receipt of all revenue or for all disbursements of expenditure in respect of that Head.

   (2) Accounting Officers shall be expected by the Controller and Auditor-General and the Public Accounts Committee of Parliament to bring to their attention any cases of apparent waste of extravagant administration or failure to achieve value for money in addition to any weakness in financial procedures, and they shall also be expected to provide satisfactory explanations to the Committee in such cases.

   (3) An Accounting Officer shall be required to–

   (a)   sign the appropriation, trading and other accounts assigned to him under the provisions of the Act or these Regulations, and in doing so accept personal responsibility for their proper presentation as prescribed in these legislation or by the Accountant-General;

   (b)   ensure that the financial procedures established by the Act, these Regulations and any instructions issued by the Accountant-General are followed and that accounting records are maintained in a form suited to the requirements of management as well as in the form prescribed for vote accounting purposes;

   (c)   ensure that the public funds and resources for which he is responsible as Accounting Officer are properly and well managed and safeguarded, with independent and effective checks of cash balances in the hands of any official; similar care, including checks as appropriate, must be takers of stores, equipment or property of any kind held by his department;

   (d)   establish and maintain an effective system of internal control over the financial and related operations for which he is responsible and wherever practicable establish and maintain an effective internal audit organisation which shall be responsible to him for–

      (i)   the regular appraisal of the adequacy of the compliance with the system of internal control;

      (ii)   the review of operations or programmes to ascertain whether results are consistent with established objectives and goals and whether the operations or programmes are being carried out as planned; and

      (iii)   the regular reporting to him of the results of any appraisal, inspection, investigation, examination or review conducted by the organisation.

   (4) The Accounting Officer shall comply with any instructions issued by the Accountant-General and in that capacity shall–

   (a)   establish and maintain, if so required by the Permanent Secretary, an Audit Committee and set out in a charter to be approved by the Permanent Secretary its membership, powers, responsibilities, functions and accountabilities in conformity with these Regulations;

   (b)   ensure that, in the consideration of policy proposals relation to the expenditure or income for which he is an Accounting Officer, all relevant financial considerations are taken into account, and where necessary brought to the attention of Ministers;

   (c)   report to the Permanent Secretary any apparent defect in the procedure for revenue collection, or any apparent waste or extravagance in expenditure, which comes to his notice in the course of his accounting duties;

   (d)   produce when required by the Permanent Secretary, or the Controller and Auditor-General or by such officers as may be appointed by them, all cash, books, records or vouchers in his charge;

   (e)   reply substantively to any queries addressed to him by the Controller and Auditor-General and within any time period set by that Officer; failure to do so will be a serious disciplinary offence and referred as such to the Public service Commission or other appropriate disciplinary authority; and

   (f)   study the public convenience and institute such arrangements as may properly be made to facilitate the transaction of business with the public; it shall be a particular duty to ensure that the arrangements for the collection of revenue from the public are conducive to its maximisation.

   (5) An Accounting Officer may authorise other public officers under his control to exercise or perform such part of his powers and duties as he may think fit.

   (6) The limits of any such delegation shall be set out in writing and shall be sufficiently clear and unequivocal to avoid dispute or misunderstanding, and such delegation shall in no way relieve the officer making it from any portion of his responsibility should he depute to a subordinate the performance of duties which he could have performed personally.

   (7) Any officer, including an Accounting Officer who directs any disbursement of public moneys, or issuance of stamps, securities, stores or other public property without proper authority shall be held personally responsible for the amount or value involved, and any officer including an Accounting Officer whose duties required him to render accounts will similarly be held responsible for any inaccuracies in those accounts and he may be proceeded with in accordance with the provisions of section 10 of the Act.

12.   Directives likely to cause over commitment or overspending

   (1) Where, the implementation of any directive from any authority is likely to result in over-committing or overspending of the Vote, the Accounting Officer shall, in writing, inform that authority of the likelihood of such directive resulting in overspending.

   (2) A decision of that authority to proceed with the implementation of the directive shall be signified in writing and the Accounting Officer shall file with the Paymaster General, the Accountant-General and the Controller and Auditor-General a copy of a document in respect of which a directive has been given.

PART V
LOSSES (regs 13-27)

13.   Losses

   Any loss of money or store shall be recorded and brought to the attention of the National Assembly.

14.   Write-off of losses

   (1) The Minister may, if so authorised by a Resolution of the National Assembly and to the extent specified in such Resolution, abandon and remit any claims by or on behalf of the Government or any service thereof and write off losses of or deficiencies in public moneys or public resources, and such a Resolution may specify the maximum amount authorised for each write-off or abandonment and the total sum authorised to be written off or abandoned in a financial year.

   (2) In respect of minor losses the Minister may delegate to the Permanent Secretary or other Accounting Officer the power to write off such losses up to a specified amount as well as a total for the financial year.

15.   All written off sums to be included in Supplementary Appropriation Bill

   (1) In order to regularise any loss all sums approved by the Minister to be written off either directly or under delegated authority shall be included in a Supplementary Appropriation Bill to be introduced in the National Assembly for approval.

   (2) Where any one instance of loss or abandonment or the total loss exceeds the amount authorised by the Resolution then the amount involved shall be charged against expenditure and treated as excess expenditure in accordance with the provisions of section 19 of the Act.

16.   Annual statement of losses

   (1) In order to keep track of losses each department of the Government shall, in addition to conforming to the reporting requirements of these Regulations, keep a register of losses incurred in the department showing the nature of the loss and the action taken.

   (2) The Accountant-General, shall, as soon as all losses are brought to his attention, cause to be registered and maintain a register of all losses incurred throughout Government and as soon after the closure of the Financial Year as is practical, submit a list of all losses incurred during that year to the Permanent Secretary, the Controller and Auditor-General; and the Public Accounts Committee for their examination.

17.   Classification of losses

   For the purposes of ensuring that the National Assembly or any person receives clear notification of all instances of loss, such losses shall be classified as follows–

   (a)   cash losses;

   (b)   stores losses;

   (c)   losses through claims waivers or abandonment;

   (d)   losses through fruitless or nugatory payments;

   (e)   any other losses.

18.   Cash losses

   (1) Cash losses shall be divided into the following sub-categories in order of importance, namely–

   (a)   losses of cash by fraud, theft arson or from any other cause involving gross carelessness;

   (b)   losses of cash by fire, sinking of a ship or any other unforeseeable circumstances;

   (c)   overpayments of pay, allowances, pensions, grants, subsidies due to miscalculation or misinterpretation of legislation;

   (d)   overpayments of a similar nature due to the non-disclosure of the full facts by the beneficiary short of fraud;

   (e)   unauthorised issues of cash such as where officers are paid wages, allowances or made other payments not admissible under the appropriate legislation;

   (f)   unvouched expenditure such as missing vouchers; and

   (g)   charges to clear inexplicable debit balances on under-the-line accounts.

   (2) Any cash loss under this regulation shall be charged to the most appropriate item, and it will also be included in the annual statement of losses prepared by the Accountant-General in order that it can be investigated properly by the Public Accounts Committee.

19.   Stores losses

   (1) Stores losses shall be divided into the following sub-categories–

   (a)   losses by fraud, theft, arson, sabotage or from any other cause involving gross carelessness;

   (b)   losses from "Incidents of the Service" which include fire (other than arson) stress of weather and accident beyond the control of any responsible person;

   (c)   losses due to deterioration in store, arising from a defect in administration; and

   (d)   losses due to natural causes such as evaporation.

   (2) All stores losses shall be included in the annual statement of losses prepared by the Accountant-General, and shall be submitted to the Public Accounts Committee for further examination.

20.   Losses by claims, waivers or abandonment

   (1) Losses through claims, waives or abandonment include–

   (a)   a claim made either for services rendered or services given, or for an actual contractual or other legal obligation of a contractor or any other person to the government;

   (b)   a claim which arises in any case where payment is not received including cases in which there is a failure to make a claim or to pursue it to finality; and

   (c)   a voluntary decision not to present or pursue a claim which could be properly made.

   (2) All losses which are specified under subregulation (1) shall be included in the annual statement of losses prepared by the Accountant-General and shall be submitted to the Public Accounts Committee for further investigation.

21.   Losses through fruitless or nugatory payments

   (1) Losses through fruitless or nugatory payments include–

   (a)   payment of a retainer for professional services where these services are not in fact used;

   (b)   payment for accommodation rented but not used;

   (c)   payment for goods wrongly ordered or accepted through irregularity or negligence other than an error of judgement.

   (2) For purposes of this regulation fruitless or nugatory payment means a payment which is unavoidable and there is nothing useful to show for it.

   (3) All losses specified under subregulation (1), shall be included in the annual statement of losses prepared by the Accountant-General in order that they can be investigated properly by the Public Accounts Committee.

22.   Action by Officers on discovery of losses

   (1) If a public officer discovers any loss or shortage of public moneys, stamps, fixed fee receipts, licences stores or other Government property or any destruction or damage to Government property he shall make an oral report to his senior officer, who will forthwith report the matter orally to his or her Accounting Officer.

   (2) The initial report made under subregulation (1) shall be followed up immediately by a written report to the Accounting Officer describing the nature, amount and circumstances of the loss, shortage, damage or destruction.

   (3) The Accounting Officer shall in turn report the matter in writing to the Accountant-General and Controller and Auditor-General and if the loss is of a large or unusual nature, a copy of the report shall also be sent to the Permanent Secretary.

   (4) No public officer shall withhold the report of a loss even through restitution may have been made, nor may a report be deferred to enable investigations to be pursued.

   (5) A public officer who fails to report a loss to the appropriate authority shall be treated as having committed a serious disciplinary offence and if found in breach of this regulations shall be suspended from duty with immediate effect and the matter reported to the appropriate disciplinary body.

   (6) On receipt of the report from the Accounting Officer, the Accountant-General shall immediately open an advance account in the name of that Accounting Officer, debiting the account with the amount or value of the loss.

   (7) The account opened under subregulation (6), shall remain in the name of the Accounting Officer unless and until responsibility for the loss or shortage has been finally allocated by the Permanent Secretary to another officer in accordance with these Regulations and such account shall not be closed until it is cleared by equivalent credits derived either from recoveries from the Officer responsible or by journal entry, the corresponding debit entry being to the appropriate expenditure item for "Losses and Write-offs" following authority being given for write-off.

   (8) Upon receipt of the report of the loss or shortage the Accounting Officer shall arrange for an investigation to be carried out, in any case in which he has reason to suspect that misappropriation, theft or fraud may be involved he shall also make an immediate report to the Police.

   (9) After investigating the loss the Accounting Officer shall submit a full report signed by him, to the Accountant-General with a copy to the Permanent Secretary and to the Controller and Auditor-General, and that report shall state the following–

   (a)   the nature of the loss or shortage;

   (b)   the amount involved;

   (c)   the place, and, if known, date on which the loss or shortage occurred;

   (d)   the date and if applicable, time of discovery of the loss or shortage;

   (e)   the exact circumstances in which the loss or shortage arose;

   (f)   whether the loss or shortage was the result of a failure to observe current accounting instructions;

   (g)   whether the loss or shortage was due to a fault in the accounting system;

   (h)   whether the loss or shortage was discovered as the result of the internal check and if not, why the internal check failed to reveal it;

   (i)   whether misappropriation, fraud, negligence or other irregularity was involved;

   (j)   the name and designation of the officer considered to be responsible for the loss or shortage;

   (k)   whether that officer has made good the loss or shortage;

   (l)   whether that officer's suspension or interdiction from duty is recommended;

   (m)   whether disciplinary or recovery action in accordance with section 10 of the Act is recommended and against whom and, if not, why not;

   (n)   whether the loss or shortage was reported to the Police (if so, the Police report should be attached); and

   (o)   the measures taken or recommended to prevent the recurrence of a similar loss or shortage.

   (10) In any other case of loss such as when an overpayment occurs which cannot be recovered or in which revenue or other debt due to the Government is deemed uncollectible, the Accounting Officer shall submit a full report to the Permanent Secretary, with a copy to the Accountant-General and to the Controller and Auditor-General which report shall be signed by the Accounting Officer and it shall state the following–

   (a)   the nature of the overpayment, revenue or other debt which is not recovered;

   (b)   the name and designation of the officer who made the overpayment or is responsible for the failure to collect the revenue or debt;

   (c)   the amount involved, supported where appropriate by detailed lists showing the names of the defaulters, the amounts outstanding in each case, in the case of revenue the year in which it was due, and the dates on which demands and reminders were dispatched;

   (d)   the reasons why the overpayment occurred or the revenue or other debt cannot be recovered;

   (e)   the action taken to recover the overpayment, revenue or debt, including any legal means taken, whether this is considered to have been adequate and the action taken by the Accounting Officer personally;

   (f)   whether the overpayment or failure to collect revenue or debt arose from a failure to observe current accounting instructions or from a fault in those instructions or in the accounting system;

   (g)   whether the amount involved has been made good by the officer responsible;

   (h)   whether disciplinary or recovery action in accordance with section 10 of the Act is recommended and against whom and, if not, why not.

23.   Large or unusual losses

   (1) The Permanent Secretary shall establish a Standing Board of Enquiry which shall be charged with the duty of investigating the circumstances of any large or unusual losses referred to it by that Permanent Secretary, the Accountant-General or the Controller and Auditor-General or which are referred to it under these Regulations.

   (2) Notwithstanding the provisions of subregulation (1), the Standing Board of Enquiry shall not investigate any matter which have been reported to the police or in which criminal action is pending unless such proceedings are completed or discontinued.

   (3) The Standing Board of Enquiry shall consist of a Chairman, a Secretary and two members appointed by the Permanent Secretary.

   (4) The Secretary of the Board shall be responsible for the maintenance of a register showing details of all cases referred to it and their disposal and shall circulate copies of all referrals to the Accountant-General and Controller and Auditor-General.

   (5) On receipt of his copy of a referral under subregulation (1) the Accountant-General shall immediately open an advance account in the name of the Accounting Officer, debiting the account with the amount or value of the loss if this has not been previously done and that account shall remain in the name of the Accounting Officer unless and until responsibility for the loss or shortage has been finally allocated by the Permanent Secretary to another officer in accordance with these Regulations.

   (6) The account shall not be closed until it is cleared by equivalent credits derived either from recoveries from the Officer responsible or by journal entry, the corresponding debit entry being to the appropriate expenditure item for "Losses and Write-offs" following authority being given for the write-off.

   (7) The Standing Board of Enquiry shall meet at the time and place most suitable for the purpose of its enquiry, and it shall hold its first meeting within seven working days of any referral. The Board may regulate its own proceedings, taking evidence from such persons as it may consider appropriate either orally or in writing but such evidence shall not be taken on oath.

   (8) On completion of its enquiries the Board shall, without delay, report to the Permanent Secretary forwarding copies of the report to the Accounting Officer concerned, the Accountant-General and Controller and Auditor-General and the report shall include–

   (a)   a statement of the amount and nature of the loss or shortage; if the amount cannot be established precisely, the Board will estimate it, given the basis on which the calculation has been made;

   (b)   an opinion on whether the system or its application was at fault, together with recommendations for any corrective action which should be taken to prevent the recurrence of a similar loss or shortage;

   (c)   whether Police or legal action was taken in respect of the loss or shortage and, if so, the details and outcome thereof;

   (d)   an opinion on who, if anyone, was responsible for the loss or shortage, the degree of that responsibility and if more than one person was responsible, the apportionment of the blame;

   (e)   whether disciplinary or recovery action is recommended under section 10 of the Act and against whom and, if not, why not; and

   (f)   any other matters on which the Board considers should be brought to the attention of the Permanent Secretary.

24.   Corrective action

   The Accounting Officer, Accountant-General or the Permanent Secretary, as the case may be, shall where he is satisfied that any loss which has occurred was due to overpayment or failure to collect revenue or debt, in which defects in systems, procedures or instructions appear to have been either wholly or partially responsible, take immediate action to correct the fault and such action shall not be deferred pending the decision on whether to write off the amount or recover it from the officer responsible.

25.   Action to be taken by the Minister

   (1) The Permanent Secretary shall, upon receipt of the reports submitted to him under subregulations (9) and (10) of regulation 21, any report of the Board of Enquiry made under subregulation (9) of regulation 22 and the results of the police investigations or legal action taken, make recommendations to the Minister who shall decide on whether the amount should be written-off or if outside his powers, recommend for write-off and whether disciplinary or recovery action has to be taken against the officer deemed to be responsible.

   (2) The Minister's decision or recommendation shall be communicated to the Accounting Officer concerned, to the officer deemed to be responsible for the loss or shortage, to the Accountant-General, the Controller and Auditor-General and where appropriate to the Secretary to the Standing Board of Enquiry by the Permanent Secretary.

   (3) If it is decided that disciplinary action is to be taken against the officer deemed to be responsible, the matter shall be referred to the Public Service Commission.

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