PUBLIC FINANCE MANAGEMENT ACT

CHAPTER 601

PUBLIC FINANCE MANAGEMENT ACT

AN ACT to introduce the Public Finance Management Act, to

regulate financial management in Government, to ensure the effective

and efficient management of all assets and liabilities, cash flow, and

revenue and expenditure of the Government; to define responsibilities

of public employees entrusted with the financial management of

Government; to provide for other matters related with or incidental to

the purposes aforesaid, and to provide for the regulation, management

and accountability of public funds and resources, and the control and

auditing thereof.

12th July, 2019 *

ACT XXI of 2019 , as amended by Act XIII of 2024.

The short title of this Act is the Public Finance Management

Act.

[Article 13]

Rules for the Operation of the Contingencies Fund

1. Advances from the Contingencies Fund shall be made on

the authority of a warrant under the hand of the Minister.

2. The amount for which any warrant is issued shall be

withdrawn from the Contingencies Fund and shall be paid

into the Consolidated Fund to meet the expenditure

specified on the warrant and the moneys remaining

available in the fund shall be reduced accordingly. Any

amounts withdrawn and remaining unspent at the end of the

year shall accrue to the Consolidated Fund.

3. Each warrant authorising the issue of a sum from the fund

shall specify under which head or heads of the estimates the

expenditure of the sum issued shall be recorded and such

expenditure shall be accounted for in the same manner as if

it had been authorised by a supplementary Appropriation

Act.

4. All withdrawals from the fund shall be included in a

supplementary estimate and an Appropriation Bill shall be

introduced in the House as soon as possible for the purpose

of appropriating from the Consolidated Fund to the

Contingencies Fund a sum equal to the total of the sums

*Originally numbered as Article 81. See Act XXI of 2019.

†Originally numbered as Article 82. See Act XXI of 2019.

PUBLIC FINANCE MANAGEMENT

withdrawn and not already made good by previous

appropriations from the Consolidated Fund so that the

Contingencies Fund shall be restored to the amount

appropriate under article 13.

5. No moneys shall accrue to the fund other than moneys

appropriated by an Act and any interest or other accruals

which might otherwise be received by the fund shall accrue

to the Consolidated Fund.

In this Act, unless the context otherwise requires

"Accountant General" means the chief accounting

officer of the Government who shall be vested with, or

performing, the functions of the Office of Accountant General,

and having general management and supervision of the

consolidated Government accounting operations;

*See Legal Notice 283 of 2019.

PUBLIC FINANCE MANAGEMENT

"accounting officer" means a person holding or acting in

the office of a Permanent Secretary, Head of a government

department or a Financial Controller and includes every person

who is charged with the duty of collecting, receiving or

accounting for, or who in fact collects, receives or accounts for,

any public moneys, or who is charged with the duty of

disbursing, or who does in fact disburse, any public moneys,

and every person who is charged with the receipt, custody or

disposal of, or the accounting for, public stores, or who in fact

receives, holds or disposes of public stores

Provided that where the Minister directs in writing that

the duties, functions and responsibilities of an accounting

officer shall be vested exclusively in one or more specified

public employees, accounting officer, in respect of the said

duties, functions and responsibilities and to the extent specified

in the said direction, means only the specified public employee

or public employees;

"accounting system" means the accounting standards,

policies and the electronic accounting software system either

adopted or authorised by the Ministry responsible for finance;

"appropriation act" shall have the same meaning as that

assigned to it by the Constitution;

"asset" means a resource presently controlled by a

ministry, department or public entity as a result of a past event

and from which future economic benefits or service potential

are expected to flow to the ministry, department or public

entity;

"Auditor General" means the Auditor General appointed

in terms of article 108 of the Constitution and regulated by

Auditor General and National Audit Office Act;

"bank" means any bank which for the time being is

entrusted with the keeping of public moneys of the

Government;

"budget" shall have the same meaning as that assigned

to it under article 2 of the Fiscal Responsibility Act;

"Consolidated Fund" means the Consolidated Fund

established by article 102 of the Constitution;

"Constitution" means the Constitution of Malta;

"contracting authorities" means the State, or local

authorities, bodies governed by public law or associations

formed by one or more such authorities or one or more such

bodies governed by public law;

"Contingencies Fund" shall have the same meaning as

that assigned to it under article 105 of the Constitution;

"director of internal audit" means the person responsible

for internal audit and financial investigations under the Internal

Audit and Financial Investigations Act;

"estimates" means the estimates, presented to the House

in respect of any financial year, of the expenditure for the

service of that financial year, and includes any supplementary

estimates of expenditure for which it may be necessary to

provide after the estimates have been presented to the House;

"financial year" shall have the same meaning as that

assigned to it under article 124 of the Constitution;

"fund" means any fund created under this Act or under

any other law for the time being in force in Malta;

"financial management regulations" includes accounting

policies, standards, and guidelines for defining the accounting

methodology and best accounting practices serving as

directives for carrying the provisions of this Act that may be

published from time to time in the Gazette;

"financial statements" means a formal record of the

financial activities;

"head" or "head of department" means the head of a

department of Government appointed in terms of the

Constitution and includes any director, manager, secretary or

other principal officer of an entity, whether vested with legal

personality or not, who is responsible for administering,

holding or using public moneys or who is a recipient or

beneficiary of public moneys, or who is a person having a

power of representation of such an entity or having an authority

to take decisions on behalf of that entity or having authority to

exercise control within that entity;

"infringement" means an act or omission by any person

or persons who breaches any condition stipulated in a contract

entered into by the Government or in the law governing any

item in the annual budget, or any relevant provision of Maltese

law or of any act the binding force of which derives from any

treaty or international agreement entered into by Malta;

"internal audit", notwithstanding the provisions of this

Act, means the function established, defined, and regulated by

the Internal Audit and Financial Investigations Act;

"investments" means any interest-bearing deposits,

shares, securities, loans and debentures in companies or in any

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body corporate, or any other realisable item of value owned by

the Government;

"irregularity" shall have the same meaning as that

assigned to it under article 2 of the Internal Audit and Financial

Investigations Act;

"Malta" shall have the same meaning as assigned to it by

article 124 of the Constitution;

"Minister" means the Minister responsible for finance;

"permanent secretary" means the public officer

appointed to supervise a department of the Government under

article 92 of the Constitution;

"person" means any natural or legal person and includes

any body of persons;

"the Public Account" means the Public Account

established by this Act;

"public administration" means the Government of Malta

including its ministries and departments, and the agencies,

public entities, commissions and boards referred to in this Act;

"public contract" means contracts for pecuniary interest

concluded in writing between one or more economic operators

and one or more contracting authorities and having as their

object the execution of works, the supply of products or the

provision of services;

"public debt" means the public debt as mentioned in

article 106 of the Constitution;

"public employee" includes public officers and

employees of Government agencies and public entities, or other

persons administering public funds or resources as defined by

this Act;

"public entities" as used in this Act, includes all

agencies, local authorities, corporations, bodies corporate,

authorities and all other entities whose power, functions and

duties are conferred and assigned by an authority established or

constituted by the Constitution or any other law, or any

commercial partnership in which the Government has an

interest, or whose funding is wholly or partly financed by

public funds;

"public external financial control" notwithstanding the

provisions of this Act, means the function assigned to the

Auditor General and the Deputy Auditor General under the

Constitution and the Auditor General and National Audit Office

Act;

"public funds" means all revenue, loan, trust and other

funds received or managed or held by, for or on account of the

Government including but not limited to agencies and entities

whether having a legal personality or not, including funds

which the Government pays out or disburses from funds

received from any national, international or supranational

organisation or entity or from any of its institutions or entities;

"public internal financial control" means control over

finance-related activities of ministries, departments, units and

other public bodies falling within the meaning of Government

as defined in this article and of all persons with functions and

responsibilities within or on behalf of these ministries,

departments, units and bodies for the purpose of ensuring

compliance with the provisions of this Act and of any

regulations made thereunder, or under any other law, and of

ensuring the prevention, discovery, and recovery of any public

financial loss or deficiency;

"public moneys" shall have the same meaning as that

assigned to the definition "public funds";

"public officer" shall have the same meaning as that

assigned to it under article 124 of the Constitution;

"relevant provision" for the purposes of this Act, means

any provision of any law or Act, governing any financial

relationship or obligation, existing or arising in any manner or

form, between any person and the Government or any body or

fund established under any treaty or international agreement

entered into by Malta;

"revenue" means all taxes, imposts, rates, and duties and

all other moneys collected or received for or on account of the

Consolidated Fund;

"the Treasury Clearance Fund" means the Treasury

Clearance Fund established under this Act;

"security" means a financing or investment instrument

issued by a company or a government that denotes an

ownership interest and provides evidence of a debt, a right to

share in the earnings of the issuer, or a right in the distribution

of a property. Securities include bonds or stocks, treasury bills,

debentures, notes, options, shares, and warrants but not

PUBLIC FINANCE MANAGEMENT

insurance policies, and may be traded in financial markets such

as stock exchanges;

"subsidiary accounting system" means any manual or

electronic system, which would be subsidiary to the accounting

system and in which financial transactions of whatever nature

are recorded;

"transitory period" means the period from the

implementation of accrual accounting and pertinent accounting

systems in the first department, to the entry into force of the

regulations made by virtue of article 38(1);

"vote" means a separate head of the estimates or a main

division of the appropriation by the House for the service of a

financial year.

PART II

ADMINISTRATION OF THE ACT

(1)

The Minister shall be charged with the administration

of this Act.

(2)

Subject to the provisions of this Act and of any regulations

made thereunder, accounting officers shall follow the directions which

may, from time to time, be given by the Minister concerning public

moneys and the rendering of accounts thereof.

(3)

The Minister, or any public employee of his Ministry duly

authorised by him, shall be entitled to inspect such offices and to have

such access to official books, documents and other records as may be

necessary for the purpose of the Minister’s exercise of his powers and

his performance of his duties under this Act.

The Minister may make regulations not inconsistent with

the provisions of this Act for carrying the provisions of this Act into

effect, and without prejudice to the generality of the foregoing, such

regulations may provide

(a)

for the collection, receipt, custody, issue,

expenditure, due accounting for, care and management of all

public moneys and the guidance of all persons concerned

therein;

(b)

for the more effectual record, examination,

inspection and check of all receipts and expenditure and the

keeping of all necessary books and accounts;

(c)

for the books which are to be kept and the

accounts which are to be rendered for the purposes of this Act

and the form in which such books and accounts are to be kept

and rendered;

(d)

for the procurement, purchase, safe custody,

issue, sale or other disposal or writing off of works, supplies or

services, public stores and other Government property, and the

proper accounting for, and stock-taking of, such works, supplies

or services, stores and property;

(e) for the co-funding of economic and social

development programmes and initiatives from public moneys;

(f)

for effecting adjustments, set-offs in

and

payments from any account relating to public moneys;

(g)

for the preparation, codification and publication

of such sets of accounting standards, methodologies, policies

and procedures as may from time to time be deemed necessary

or expedient for the better carrying of the provisions of this Act

into effect;

(h)

for the use of internet banking, debit or credit

cards, and other banking facilities and services for the better

management of all public moneys;

(i)

for the regulation of any form of transactions that

may be conducted from time to time;

(j)

for the granting and receipt of donations and

sponsorships;

(k)

for prescribing anything required to be prescribed

under this Act; and

(l)

for any other matter, incidental or supplementary

to any of the foregoing matters.

PART III

FUNCTIONS AND RESPONSIBILITIES

(1)

The Accountant General shall be responsible for the

establishment of standards for the proper financial management,

reporting and accounting operations within ministries and

departments.

(2)

The Minister shall instruct the Accountant General to stop

moneys from being utilised by a ministry, department or public entity,

if that ministry, department or public entity does not conform to the

financial management regulations, policies, circulars, guidelines and

other legal provisions in force from time to time.

The Permanent Secretary, or the person of suitable seniority

as duly delegated by the Permanent Secretary, shall be responsible for

monitoring, and to facilitate financial management and the

implementation of control of the public entities falling under that

ministry

Provided that the monitoring, facilitation of the

implementation of control and financial management of an authority,

board, foundation, corporation, institute, agency, commission,

company or any other entity which is held in ownership by the

Government or over which the Government has effective control, or

where its income comes from public monies or from monies it receives

by virtue of any law, shall be vested in the head of the entity.

(1)

Every accounting officer shall be subject to, and

ensure compliance with, the provisions of this Act and any regulation,

policy, circular, guideline, instruction and other provision related to

the duties of his office.

(2)

Every accounting officer shall be vested with the

responsibility of accounting operations and shall perform such duties,

keep such books and render such accounts as may be prescribed by or

under this Act or by instructions issued by the Minister.

(1)

A public employee shall have been deemed to

commit an act of misconduct in financial management if such

employee, wilfully or negligently, fails to fulfil those duties and

responsibilities assigned by or under the Act.

(2)

Wilful or negligent acts of misconduct in financial

management include

(a)

non-compliance with the financial management

regulations;

(b)

acting with dishonesty, lack of fidelity and

integrity in the management of the financial affairs of the public

entities concerned;

(c)

using the position or privileges, or confidential

information obtained in such position, for personal gain or to

improperly benefit another person;

(d)

the failure to take immediate action against any

person, who falls under his immediate supervision, and acts in

breach of the financial management regulations and internal

control procedures established by the public entities concerned.

(3)

Disciplinary proceedings for misconduct in financial

management shall be regulated by the Public Service Commission

Disciplinary Regulations or such disciplinary rules and procedures as

may apply.

PART IV

ESTIMATES AND APPROPRIATION

Any Act appropriating moneys out of the Consolidated

Fund shall not be construed as authorising the expenditure of such

moneys in any financial year other than the financial year to which it is

expressed to relate, and any moneys so appropriated which may

remain unexpended at the close of any financial year shall cease to be

a liability on the Consolidated Fund for that year.

(1)

If the Appropriation Act has not come into force at

the commencement of any financial year, the Minister may authorise

the issue of moneys from the Consolidated Fund for the purpose of

meeting recurrent and capital expenditure as may be considered

necessary for carrying on the Government

Provided that moneys so authorised to be issued for any

expenditure shall not exceed one-third of the amount voted for that

expenditure under the Appropriation Act relating to the preceding

financial year

Provided further that moneys, to be issued for any capital

expenditure, shall only be authorised for contracts which have already

been entered into in the previous financial years.

(2)

Any moneys authorised to be issued as provided in sub-

article (1) shall not exceed the sum specified for that expenditure in the

estimates presented for the current financial year and shall be set off

against the amounts respectively provided in the Appropriation Act on

its coming into force.

(3)

The powers conferred on the Minister by this article shall

not extend beyond the period of the first four (4) months of any

financial year or beyond the day on which the Appropriation Act for

that year comes into operation, whichever is the earlier.

(1)

If the exigencies of the public service render it

necessary to alter the proportions assigned to the subheads under a

head of expenditure shown in the estimates, the Minister may, by

minute, authorise the transfer of a further sum out of any surplus

arising on any other subhead of the same head in aid of any subhead

which may be deficient.

(2)

The Minister may, in his discretion and subject to such

conditions as he may deem proper, delegate the power vested in him

under sub-article (1)

Provided that whenever any such delegation has been made,

the public employee so delegated shall submit to the Minister at the

end of each quarter a statement showing particulars of all the cases

where he has exercised the powers so delegated.

If in respect of any financial year it is found that the amount

appropriated by the Appropriation Act for any purpose is insufficient,

or that a need has arisen for expenditure for a purpose for which no

amount has been appropriated by the Act, or that any moneys have

been expended for any purpose in excess of the amount appropriated

for the purpose by the Appropriation Act, or for a purpose for which

no amount has been appropriated by the Act, supplementary estimates

showing the sums required or spent shall be laid before the House and

the Appropriation Bill shall contain such expenditure under

appropriate heads

Provided that the Minister may for such purposes from time

to time authorise the issue of such sums out of the Consolidated Fund

as may be considered necessary for the purpose, without the need of

any further appropriation other than this Act, which sums shall be

included in the reports submitted to the House in terms of the Fiscal

Responsibility Act.

(1)

There shall be established a fund to be known as the

''Contingencies Fund'' with an authorised capital amounting to five

million euro (€5,000,000), which amount shall be provided within a

period of not more than five (5) years by appropriations made from

time to time out of the Consolidated Fund.

(2)

If, in respect of any financial year, it is determined that an

urgent and unforeseen need for expenditure has arisen for which no

other provision exists, the Minister may authorise by warrant an

advance from the Contingencies Fund to meet that need

Provided that, where such an advance has been made, the

M i n i s t e r s h a l l se e k t h e a p p r o v a l o f t h e H o u s e t h r o u g h t h e

Supplementary Estimates as provided for in the Act, showing the

moneys required or spent and the transfer from the Consolidated Fund

to the Contingencies Fund of the moneys advanced therefor.

(3)

The Contingencies Fund shall be operated in accordance

with the rules set out in the Schedule. The provisions of this Schedule

may be amended by further rules to be made by the Minister, which

shall be published in the Gazette and shall be laid on the Table of the

House at the next meeting thereafter.

PART V

COLLECTION AND DISBURSEMENT OF

MONEYS AND BANKING

No moneys shall be issued out of the Consolidated Fund,

except as provided in the Constitution, nor out of other funds or

accounts except for the purpose of such funds or accounts, and under

such authority as may be applicable to their constitution.

(1)

Subject to the provisions of this Act and any

regulations made thereunder, all disbursements of public moneys shall

be made by the Accountant General in such manner as may be

prescribed by the Minister by regulations made under provisions of

this Act.

(2)

The Accountant General shall not make any payments,

notwithstanding that the purposes to which they relate may be duly

provided for in the Appropriation Act, unless authorised so to do by

warrant under the Minister's hand and directed to him.

(3)

Such warrant shall be signed in triplicate by the Minister.

One (1) copy of the warrant shall be filed in the Minister's Office, one

(1) in the Office of the Accountant General, and the other in the Office

of the Auditor General.

(4)

No warrant under this article shall continue in force except

during the financial year for which it is issued.

An accounting officer shall pay an account after it has been

ascertained that the provisions of this Act and of any regulations made

thereunder relating to the payment of accounts, have been complied

with and that the payment of the account is in accordance with proper

authority.

An imprest may be issued for such amount as the Minister

may authorise, by warrant, whenever it becomes necessary for an

accounting officer to have moneys for disbursement, for which

vouchers cannot be presented direct to the Accountant General for

payment.

There shall be established a fund to be known as "The

Treasury Clearance Fund" to provide for the receipt of moneys that

may have to be repaid by Government and for the purpose of meeting

any other expense temporarily defrayable out of public moneys, and

repayable gradually or otherwise into this fund out of the Consolidated

Fund or from other sources.

No Below-the-Line Deposit Account shall be opened in the

Treasury Clearance Fund except with the prior approval of the

Permanent Secretary responsible for finance or public employee

delegated and such Account shall be subject to any conditions which

may be laid down in the approval. The accounting officer entrusted

with responsibility of operating a Below-the-Line Deposit Account

shall ensure that the Account is utilised solely for the purpose for

which it was originally authorised and shall be closed off immediately

when it is no longer required.

Subject to the provisions of this article, interest and other

income accruing to the Treasury Clearance Fund shall be credited to

the Consolidated Fund and any appreciation or depreciation in the

value of any investments of the Treasury Clearance Fund shall,

together with any profits or losses arising from the sale or redemption

of securities or shares, be credited or debited, as the case may be, to

the Consolidated Fund

Provided that, in the case of deposits on account of

foundations or trusts and the Monte di Pietà and the Custodian of

Enemy Property, such interest and other income, appreciation or

depreciation in the value of investments and the profits or loans on the

sale or redemption of securities shall be credited or debited, as the case

may be, to the proper account.

The Minister may, without further appropriation than this

Act, cause the Accountant General to effect disbursements from the

Treasury Clearance Fund by warrant under the Minister’s hand, which

in the case of all payment of moneys repayable into the fund, shall

specify the manner and terms of such repayment.

The Accountant General may, from time to time, transfer

any balances of the public account, or any part thereof, from one fund

or account to another fund or account, within the public account for

such periods and on such terms as the Minister may authorise.

(1)

The Minister may make arrangements with any bank

or banks upon such terms and conditions as are appropriate for the

receipt, custody and payment of public moneys and their transmission

to and from Malta, and for any advances which may be made under the

authority of this Act or of any other law, for the charges in respect

thereof, and for the interest payable by or to the bank or banks upon

balances or advances respectively and generally for the conduct of the

banking business of the Government.

(2)

No accounting officer shall open a public or official account

in any bank except as authorised by this Act or by any regulations

made thereunder, without the authority in writing of the Minister, and

the Government shall not be held liable for any overdraft on any such

account unless it be authorised by the Minister.

(3)

The Minister’s authority may be delegated to an accounting

officer, not below the position of Director General, to open any public

or official account in any bank in accordance with sub-article (2).

(4)

Bank accounts will be managed and reconciled in

accordance with the procedures specified by the financial management

regulations made under this Act.

All public moneys shall be kept in an account to be known

as the "Public Account" to which shall be carried and paid all moneys

forming the Consolidated Fund, the Treasury Clearance Fund and the

Contingencies Fund and all other moneys whatsoever except

(a)

as the Minister may specifically authorise to be

kept in a separate account; or

(b)

where the enabling Act of the public entity

administering public funds, provides otherwise.

All moneys paid into the bank to the credit of the accounts

mentioned in the last preceding article shall be deemed to be public

moneys, and may not be removed from the bank except as provided by

this Act.

Moneys received by or on behalf of the Government by way

of deposit on account of custom duties or deposits in Court under any

law or authority, moneys received in trust, and all moneys received

from any person or authority pending the completion of any work or

service or determination of a claim shall be deemed to be public

moneys within the meaning and for the purposes of this Act and shall

be remitted to the Public Account, to the credit of the appropriate

deposit account in the Treasury Clearance Fund

Provided that no moneys which, or part of which, may

become repayable by Government, shall be passed on to the

Consolidated Fund.

Where, however, an amount deposited under the provisions

of article 26 is left unclaimed for a period of thirty (30) years from the

date of it being so deposited, it shall, unless otherwise provided by this

Act or any other law, be transferred to the Consolidated Fund

Provided that the Minister may, without further

appropriation other than this Act, authorise the Accountant General to

pay out of the Consolidated Fund at any time that amount to any

person who establishes a claim thereto.

The Accountant General shall, from day to day, cause to be

paid into the bank to the credit of the proper account, all public

moneys collected or received at the Treasury.

Every accounting officer collecting or receiving public

moneys shall pay into the bank to the credit of the proper account, the

gross amount of the collections made on such days and in such manner

and form as the Accountant General may direct

Provided that, where the Minister so directs, accounting

officers may deduct from the gross amount of their collections such

sums as may be required to enable them to effect payments of

drawback, repayments or refunds.

Except as may be specifically provided by any law and

subject to the provisions of this article, it shall not be lawful for the

Government to borrow, nor for any bank or other person to lend to the

Government, any moneys, and every engagement for the repayment of

any such loan shall be absolutely null and void

Provided that the Minister may authorise a fluctuating

overdraft on the Public Account as and when required, and in such

case

(a)

the repayment of any such overdraft shall be

made before the close of the financial year in which such

overdraft was incurred; and

(b)

a statement of the position of such overdraft on

the last day of each quarter shall, as soon as possible thereafter,

be laid on the Table of the House.

Notwithstanding anything in this Act, the Minister may

make arrangements, on such terms and conditions as may be deemed

necessary, for the collection, receipt, custody, deposit in banks, issue,

advance, payments, due accounting for, care and management outside

Malta of any public moneys and for the keeping of accounts, and

furnishing of statements, returns and vouchers relating to such

collection, receipt, custody, deposit, issue, payments, advances and for

the examination of such accounts, statements, returns and vouchers

Provided that all documentation of all transactions is kept as

may be directed by the Accountant General.

PART VI

ACCOUNTS AND REPORTING

(1)

The Accountant General shall ensure that a proper

accounting system, including subsidiary accounting systems, is

established across all public entities.

(2)

Subject to the provisions of any regulations made under this

Act, every accounting officer collecting, receiving or paying public

moneys shall keep such books and accounts in such manner and form

as established by the Accountant General.

The Accountant General may inspect and make copies of

any official books, records and other documents or copies thereof, and

require copies in electronic format of any such official document to be

submitted.

Title 1 – Cash-based accounting

The Accountant General shall, as soon as conveniently

possible after the end of each quarter, submit to the Minister for

publication in the Gazette, a cash-based statement of the Consolidated

Fund Account as compared with the corresponding quarter of the

immediately preceding financial year.

(1)

As soon as possible after the close of each financial

year, and in every case not later than three (3) months after the close of

such year, the Accountant General shall prepare and forward to the

Auditor General the following returns

(a)

a statement of the cash-based Consolidated Fund

Account as compared with that of the last preceding financial

year;

(b)

a statement of the receipts and expenditure of any

fund or account created by this or any other law.

(2)

As soon as the Auditor General returns such statements to

the Accountant General, the Minister shall cause such statements to be

published in the Gazette, and shall lay them on the Table of the House

within ten (10) days of such publication

Provided that in reckoning such period, no account shall be

taken of any time during which the House is dissolved or prorogued, or

during which it is adjourned for more than ten (10) days.

The Accountant General shall, as soon as possible after the

close of the accounts of every financial year, and in any case not later

than six (6) months after the close of such year, prepare and send to the

Auditor General the following statements and accounts

(a)

an abstract of the receipts and payments of the

Public Account as compared with the receipts and payments of

the last preceding financial year;

(b)

an abstract of the cash-based Consolidated Fund

Account as compared with that of the last preceding financial

year;

(c)

a detailed cash-based revenue statement, as

compared with the estimates, showing variations in respect of

each item;

(d)

a detailed cash-based expenditure statement

showing the several sums appropriated under each head

distributed according to subheads as detailed in the estimates,

the expenditure made during the financial year, and the amount

over-expended or under-expended thereon;

(e)

a statement of the receipts and payments in

respect of loans made by the Government;

(f)

a statement of the public debt and the annual

charge thereon showing also the amount repaid during the

financial year;

(g)

a statement of the receipts and expenditure of

trust funds and of any other fund or account of the Government;

(h)

a statement of all investments held by the

Government at the end of the financial year on behalf of each

fund or account at the closing market price published on the

stock exchange on which the security is listed on the last

trading date of the financial year or the middle market price of

security published by a recognised market maker whichever is

the latest. The value assigned to each security in the accounts

shall be adjusted to correspond with that price;

(i)

a statement of assets and liabilities of the

Government at the end of the financial year;

(j)

a statement of balances (excluding special funds)

at the end of the financial year;

(k)

a statement of special funds deposited in the

Treasury;

(l)

a detailed statement of advances made out of the

Treasury Clearance Fund;

(m) a tabular summary of unallocated stores financed

out of the Treasury Clearance Fund; and

(n)

a statement of claims abandoned, of losses of

cash and of stores written off.

The Accountant General shall, as soon as possible after the

closing of the accounts of every financial year and in any case not later

than six (6) months after the close of such year submit to the Minister

for publication a report on the cash-based accounts and finances of the

Government.

Title 2 – Accruals-based accounting

* (1)

When established by the Minister by means of a

regulation, all ministries and departments shall adopt the accruals-

based accounting standards in their financial accounting and financial

reporting, implementing the International Public-Sector Accounting

Standards (IPSASs) as adopted by the Government, and publish

financial statements.

(2)

The Accountant General shall be responsible for publishing

these accounting standards and ensure compliance across ministries

and departments, as may be required from time to time.

† (1)

Each ministry shall cause to be prepared, in the form

and manner provided for by the Accountant General, quarterly

accruals-based statements consolidating the financial performance of

the respective ministry and its departments, at ministerial level, for

each of the first three (3) fiscal quarters of each fiscal year.

*Not yet in force.

†Not yet in force.

(2)

The Accountant General shall prepare quarterly accruals-

based statements, consolidating the financial performance of each

Ministry, and shall submit such statements to the Minister for

publication in the Gazette.

(3)

The Minister shall by means of a regulation establish the

period within which the said accounts and statements are to be

presented.

* Each ministry shall prepare or cause to be prepared, in the

form and manner provided for by the Accountant General, the

accruals-based consolidated annual financial statements, consolidating

the financial performance and financial position of the respective

ministry and its departments, at ministerial level, and shall submit such

statements to the Accountant General not later than two (2) months

after the close of that financial year, for onward submission to the

Auditor General.

† (1)

As soon as possible after the close of each financial

year, and in every case not later than six (6) months after the close of

such year, the Accountant General shall prepare and forward accruals-

based consolidated financial statements, consolidating the financial

performance and financial position of each Ministry, to the Auditor

General.

(2)

The Auditor General shall, in accordance with the Auditor

General and National Audit Office Act, audit these accruals-based

consolidated financial statements.

(3)

Upon receiving the audited accruals-based consolidated

financial statements from the Auditor General, the Minister shall, not

later than nine (9) months after the close of that financial year, cause

such statements to be published for publication in the Gazette and lay a

copy thereof before the House within ten (10) days of such

publication

Provided that in reckoning such period, no account shall be

taken of any time during which the House is dissolved or prorogued, or

during which it is adjourned for more than ten (10) days.

Title 3 – Transitory Period

‡ During the transitory period for the changeover from cash-

based to accruals-based accounting, the reporting regime provided for

in articles 34 to 37 shall prevail.

*Not yet in force.

†Not yet in force.

‡Not yet in force.

* Without prejudice to the provisions of article 38, the

Accountant General may, from time to time in such transitory period,

issue instructions on accounting operations and reporting to be

followed during the change-over from cash-based accounting to

accruals-based accounting.

PART VII

FINANCIAL CONTROL

Save as otherwise provided under any law, financial control

of public funds shall be managed and exercised as prescribed by or

under this Act.

(1)

Payment or benefit may be withheld, by the

Accountant General, where the Accountant General has been informed

of, or has otherwise reason to consider certain, the commission of any

infringement.

(2)

The Director of Contracts is authorised to demand that

payments or benefits are withheld where there is reason to consider

that an infringement has occurred.

(3)

Any bond, guarantee or security which has been provided by

any person under any contract or legal obligation, the execution or

discharge of which has been prevented or threatened by such

infringement, may be withheld where the Accountant General or the

Head of the Contracting Authority have been informed of, or have

otherwise reason to consider certain, the commission of any

infringement.

(4)

Save as otherwise specifically provided by any other law or

contract, the Accountant General shall proceed to recover any sum or

amount which has been paid to, or else has become or remained due

from, any person resulting from an infringement.

(5)

For the recovery of any loss or deficiency, any such person

as mentioned in this article, shall draw on any bond, guarantee or

security which has been provided by any person under any contract or

legal obligation the execution or discharge of which has been

prevented or threatened by such infringement.

(6)

For the recovery of any loss or deficiency, the Accountant

General may proceed against any other person who, although duty

bound to ensure against the infringement, has not acted in good faith,

failed to take reasonable precautions and to exercise due diligence to

avoid the commission of such infringement.

Save as otherwise specifically provided for by any other

law, where any person as mentioned in article 45 has reason to believe

that an infringement has been committed with intent to take advantage,

*Not yet in force.

or to make an illegal or undue gain, the Accountant General shall, in

addition to those measures prescribed in article 45, impose an

administrative fine equivalent to the sum or amount which has become

or remained due from, or has been paid to, any person committing such

infringement.

(1)

Save as otherwise specifically provided for by any

other law, the Permanent Secretary shall, upon acquiring or having any

knowledge of an infringement, inform forthwith the persons as

mentioned in article 45, and shall carry out the necessary investigation

and draw up a report indicating

(a)

the infringement;

(b)

the financial loss or deficiency, if any, and its

extent, to the Government or to any multinational or

international entity or fund of or in which Malta, under any

agreement, forms or takes part;

(c)

responsibility for such loss or deficiency; and

(d)

any sum or amount whereby any person or

persons has or have unduly gained or benefited consequent to

that infringement.

(2)

The Permanent Secretary shall notify the person who was

informed of the infringement under sub-article (1), of the report.

(3)

Where responsibility for such loss or deficiency as may be

established under sub-article (1) is ascribed to two (2) or more

persons, they shall become liable jointly and severally.

(1)

There shall be charged interest on any sum or amount

recoverable as provided under articles 45 and 46 for the period during

which such sum or amount remains unpaid, from the date on which it

becomes payable as prescribed under article 49.

(2)

Such interest, as provided for under sub-article (1), shall be

established at the maximum rate allowable by law.

(1)

The Accountant General shall serve notice, stating

reasons for such decision, upon any person or persons in proceedings

for the recovery of any sum or amount under article 45 or for the

exaction of an administrative fine under article 46.

(2)

Where the payment of any sum or amount for which notice

is served on a person or persons under sub-article (1) is not made

within one (1) month from the date of the service of such notice, the

Accountant General shall first proceed to intimate payment from such

person or persons by means of a judicial act, failing which, the

Accountant General shall proceed to enforce payment under executive

title as provided for under article 50 after twelve (12) days from the

service of such an intimation.

(3)

For the purposes of sub-article (1), a notice by the

Accountant General to any person or persons showing the sum or

amount due, any administrative fine and interest to which such person

or persons shall become liable shall, unless the contrary is proved, be

sufficient evidence of dues to be paid to the Government by that

person or persons.

(1)

Any notice served by the Accountant General, as

prescribed under article 49, shall constitute an executive title within

the meaning and for the purposes of Title VII of Part I of Book Second

of the Code of Organization and Civil Procedure

Provided that the procedure laid down in article 49 is

followed in all instances before payment is enforced in virtue of such

title.

(2)

Where in accordance with the provisions of this Part, a

payment is enforceable in virtue of an executive title against a body of

persons, the Accountant General may, without the need of any other

act, proceed with such enforcement against the chief executive,

executive director or other principal officer, of that body of persons

who shall be deemed personally liable for the purposes of this Part.

(3)

For the purposes of this Act, it shall be sufficient if only the

name of the body of persons appears on any notice served by the

Accountant General.

(4)

In any proceedings to impugn an executive act under article

281 of the Civil Code of Organization and Civil Procedure, the onus of

disproving the facts stated in the notice served by the Accountant

General, shall be on the person against whom such executive act has

been issued.

(1)

Any sum, amount, fine or interest to be recovered or

exacted under article 45, 46 or 48, may be sued for, as the case may

require, in the Civil Court, First Hall, or in the Court of Magistrates

(Malta) in its civil jurisdiction, or in the Court of Magistrates (Gozo)

in its civil jurisdiction, by the Accountant General, with full costs of

suit from the person or persons by whom it is due or from person or

persons responsible.

(2)

Action for the recovery of exaction of any sum, amount, fine

or interest may be taken during any time from the date on which it

becomes due in terms of article 45 up to five (5) years from that date.

(3)

The period of prescription specified under sub-article (2)

shall be interrupted by any judicial act filed before the lapse of such

period by the Accountant General, whereby payment of the sum,

amount, fine or interest is claimed.

Where the Accountant General deems that there are

reasonable grounds that an infringement has occurred, he may require

any person having an office or employment with a ministry,

department or public entity, whether paid or otherwise, unless under

the duty of professional secrecy, to provide such particulars in respect

of such a person or persons as may be specified for the purposes of this

Act.

Any proceedings under this Act shall not be suspended in

virtue of the institution or prosecution of any criminal action relating

to any infringement, and the Accountant General, shall withhold, or

proceed to recover, any sum, amount, fine or interest, or the Court

shall continue to hear submissions and shall give judgement or decree,

as if such criminal action was not instituted so however that any

person against whom an executive act has been issued under this Part,

may still have recourse to the Courts of Civil Jurisdiction.

Where the infringement has been committed against a

provi sio n o r o bl ig ati on, i n o r u nd er any act g ov ern in g an y

multinational or international entity or fund of or in which Malta forms

or takes part under any treaty or international agreement, any

proceedings contemplated under this Part shall be taken in conjunction

with the entity responsible for the implementation or ensuring the

execution of such provision or obligation.

The Minister may apply the appropriate administrative

penalties for the partial or total removal or the exclusion from or the

withdrawal of an advantage, or the temporary withdrawal of the

approval or recognition necessary for participation in benefits,

incentives, assistance or aid arising from a scheme or programme

administered by a multinational or international entity or fund of or in

which Malta forms or takes part under any treaty or international

agreement, when proceedings under this Act are instituted.

PART VIII

AUDIT AND ASSURANCE

(1)

The Accountant General may, at any time, request

the bank into which public moneys are paid, for a statement showing,

in order of date, every sum received and paid under each account kept

at the bank.

(2)

The Accountant General may, at any time, request any

ministry and department and public entity keeping a bank account to

draw up a statement reconciling the balance of the bank account as it

appears on their books with the balance on the bank statement.

(3)

The Auditor General may, at any time, request the

Accountant General or the Permanent Secretary, respectively to

provide the statements referred to in sub-articles (1) and (2),

accompanied where possible by the bank statement, and where this is

not practicable by the bank certificate showing the closing balance for

that period.

(4)

The Minister may make further regulations for the better

implementation of this article.

(1)

Where, on the detection of any irregularity or fraud

against public moneys, a report made in terms of the provisions of the

Auditor General and National Audit Office Act or the Internal Audit

and Financial Investigations Act is sent or referred to a Head of

Department, all necessary measures for the protection of such public

moneys, including the levying of administrative penalties in

accordance with regulations made under article 55 and legal action for

the recovery of the amount of any deficiency, loss, improper payment

caused or made as a result or in the course of any such irregularity or

fraud, shall be taken, and the provisions of article 466 of the Code of

Organization and Civil Procedure shall apply to any amount

recoverable as aforesaid.

(2)

Unless otherwise stipulated in a public contract, any bond,

bank guarantee or other security given for the proper performance of

any contract payable out of public moneys shall also extend to

guarantee the recovery of any moneys or administrative penalties in

connection with the contract and for which the person supplying the

bond, bank guarantee or other security may be liable.

(3)

Where the deficiency, loss, or improper payment as a result

of the irregularity or fraud, involves funds received by the Government

from any international or supranational organization or entity or from

any of its institutions or entities or under the terms of any treaty or

other agreement between States, any proceedings under this article

shall take place in consultation with the person in Malta, if any,

specifically charged with authorising the payment or release of such

funds

Provided that the lack of such consultation shall not in any

way whatsoever affect the validity of any proceedings taken under this

article.

(4)

Where two (2) or more persons are responsible for the

irregularity or fraud which resulted in the deficiency, loss, or improper

payment those persons shall be held jointly and severally liable

therefore together with any other person who, although is duty bound

to do so, has not acted in good faith, and failed to take reasonable

precautions and to exercise due diligence to prevent the irregularity or

fraud.

(5)

Nothing in this article or in this Part shall be construed as

precluding any other person interested from taking action, whether

jointly with the Head of Department or otherwise, for the recovery of

any sum recoverable under the provisions of this article.

On any amount recoverable under article 57, there shall be

charged interest at the maximum rate allowable by law for the period

during which the amount remains unpaid from the date on which it

becomes payable.

For the purpose of recovering any moneys that may be

recoverable under the provisions of article 57, any Head of

Department who receives or to whom is referred a report as provided

in that article may, without prejudice to the constraints imposed by

professional secrecy according to law, require any person managing

public moneys to provide any information in his possession relevant

for the said purpose.

The Minister may by regulations provide for administrative

penalties which may be imposed for any irregularity, for the procedure

to be followed for the imposition of such penalties and for any other

matter incidental or supplementary to any of the foregoing matters

Provided that an administrative penalty may not be greater

than one hundred and twenty thousand euro (€120,000).

PART IX

INVESTMENTS

(1)

The Minister may, from time to time, cause any of

the balances of the Public Account or any other account, or any part

thereof, to be invested on behalf of the proper account, for such

periods and on such terms as may be deemed appropriate, in the

purchase of such securities as he may, from time to time, declare to be

securities in which public moneys may be invested.

(2)

Interest received on securities purchased under sub-article

(1) shall, unless otherwise provided under this Act or any other law, be

paid to the Public Account or any other account to the credit of the

proper fund or account to which the securities belong.

Investments in securities shall, in all instances, be made in

the name of the Government.

(1)

(a)

There shall be a Government Securities Board

which shall be composed of three (3) persons and is charged with the

safe custody of all Government securities.

(b)

The Permanent Secretary for the Ministry

responsible for finance, shall ex officio, be chairman, whilst the other

two (2) members shall be appointed for a fixed term of not more than

three (3) years by the Minister on such terms and conditions as may be

specified in their letter of appointment.

(c)

The Board shall be assisted by a Secretary.

(d)

Any member of the Government Securities

Board may, during tenure of office, be removed by the Minister where

he is satisfied that there has been a clear case of misbehaviour by the

member or inability of a member to perform his functions or where

such circumstances exist that would disqualify such a member from

remaining a member of the Government Securities Board.

(e)

A member of the Government Securities

Board may resign from office by a letter addressed to the Minister.

(2)

The Government Securities Board shall only have custody

of such securities on behalf of the Government of Malta and it shall

not be lawful for the Government Securities Board to take any

measures in respect of such securities save as provided for by this Act.

(3)

Securities held in respect of each fund or account shall be

kept separate and apart from those of any other fund or account and

shall be kept and used solely for the purpose of that fund or account.

Whensoever it shall deem to the Minister to be expedient in

the interest of the Government, he may from time to time, cause such

securities, or any part thereof, to be sold or converted into money and

the proceeds be either paid to the credit of the proper fund or account

to which they belong or else re-invested on behalf of the proper fund

or account in the purchase of any other securities authorised under this

Act.

To facilitate the sale, conversion, exchange or other disposal

of such securities as occasion requires, the Government Securities

Board shall, at the written request of the Minister, or any other public

employee duly authorised by him in writing in that behalf, part with

the possession of the securities and sign without delay such documents

as may be necessary for the sale, conversion, exchange or other

disposition thereof. The request shall specify the purpose for which the

securities named therein are required.

The Accountant General shall prepare and forward to the

Auditor General an annual return of all securities held in Malta and

abroad.

All securities held in Malta or abroad shall be inspected and

verified as required by the Auditor General and National Audit Office

Act.

PART X

ASSET MANAGEMENT AND CONTROL

The Head of Department shall be responsible for the

management of the department’s assets, and shall ensure that proper

control systems exist for the custody and management of these assets.

(1)

The Permanent Secretary responsible for finance,

shall issue guidelines for accounting of the assets of ministries,

departments and public entities, and for the recording and reporting of

these assets.

(2)

The Permanent Secretary responsible for finance and the

Accountant General, shall issue guidelines for the management and

control of the assets of public entities.

(1)

A register of all assets held shall be kept by every

ministry, department and public entity.

(2) The register of assets held by the ministries, departments

and public entities shall be in the format prescribed by the Accountant

General.

(1)

To safeguard the ministry, department and public

entity against theft, fraud, irregularity, misuse, loss, and wastage, the

control system shall include

(a)

preventive mechanisms;

(b)

detective mechanisms; and

(c)

corrective mechanisms.

(2)

The Head of Department shall ensure that processes,

whether manual or electronic, and procedures are in place for the

effective, efficient, economical and transparent use of assets.

The Head of Department shall ensure that the assets of the

ministry, department or public entity falling under his responsibility

are inspected and reported upon as prescribed by the Accountant

General, to confirm the existence and condition of assets and storage

facilities.

A Board of Survey shall be appointed by the Head of

Department to survey the assets of the ministry, department or public

entity, as prescribed by the Accountant General, as provided for under

article 69.

The Board of Survey shall comprise of at least two (2)

public employees, none of whom shall have any direct responsibility

for assets to be surveyed.

The Minister may make regulations for the deletion and

disposal of Government assets.

For the purposes of this Part, "assets" means physical non-

current assets and not financial assets.

PART XI

GENERAL PROVISIONS

(1)

The Minister responsible for finance, or any person,

body or unit delegated on his behalf, may, notwithstanding any other

law, issue directives as provided in sub-article (2) to any authority,

board, foundation, corporation, institute, agency, commission,

company or any other entity fifty-one per cent (51%) or more of which

i s hel d i n o wn ersh ip by th e Go ver nm ent or o ver wh ich th e

Government has effective control, or where fifty-one per cent (51%) of

its income comes from public monies or from monies it receives by

virtue of any law.

(2)

The directives referred to in sub-article (1) may regulate

(a)

the recruitment of employees and, or their

remuneration;

(b)

investments, deposits and the transfer of moneys,

the procurement of fixed assets, services, consultancies,

contracts of whatever type or nature relating to operational and,

or administrative expenses, and, where such directives are

issued, the Board of Directors or other Board responsible for

the affairs of the entity shall ensure that the decisions taken at

Board and at management level respect such directives.

Without prejudice to that provided for under article 77,

where a provision of another law conflicts with the provisions of this

Act, the other law shall prevail.

79 * . (1)

On the loss of any receipt or document, entitling the

holder thereof or the person named therein to withdraw from any

government department any sum of money or any article deposited

therein, the Accountant General may, on receiving proof of such loss

through the permanent head of the department concerned, authorise

the issue of a duplicated receipt or document so lost, provided a

written indemnity is given to his satisfaction against all claims that

may be made against him by reason of the issue of such duplicate

receipt or document.

(2)

The Accountant General may, in his discretion and on his

own responsibility, delegate in writing, on such conditions as he may

deem proper, any of his powers under this article to any public

employees not below the grade of Principal or such analogous grade

suitable in his opinion for the purpose.

(3)

The Minister may prescribe for the levying of a fee on the

issue of such duplicate receipts or documents.

*Originally numbered as Article 80. See Act XXI of 2019.

80 * . In so far as consistent with the generality of the provisions

contained in this Act, nothing hereunder shall prejudice, or be held or

construed as prejudicing, the validity of any act done, or exempt any

one from doing anything omitted to be done, or any vested rights

arising under any law repealed by this Act, or any regulation,

directive, order or rule made thereunder

Provided that the effect of any such act or omission shall

continue, on the coming into force of this Act as if done hereunder

Provided further that any reference in any law to the

Financial Administration and Audit Actor to any regulation, directive,

order or rule made thereunder shall be deemed to be a reference to this

Act or any other law which may from time to time amend, supplement

or substitute it.

81 † . In case of any conflict between the Maltese and the English

texts of this Act, the English text shall prevail.

† Sa

fejn

huwa

konsistenti

mal-ġeneralità

tad-

dispożizzjonijiet ta’ dan l-Att, xejn hawn taħt ma għandu jkun ta’

*Oriġinarjament enumerat bħala l-artikolu 80. Ara l-Att XXI tal-2019.

ħsara, jew miżmum jew interpretat bħala ta’ ħsara, għall-validità ta’

kull att magħmul u lanqas ma għandu jeżenta lil xi ħadd milli jagħmel

xi ħaġa li ma saritx, jew kull dritt vestit skont kull liġi mħassra minn

dan l-Att, jew kull regolament, direttiva, ordni jew regola magħmula

taħtu

Iżda l-effett ta’ kull att jew ommissjoni għandu jkompli mal-

bidu fis-seħħ ta’ dan l-Att daqslikieku magħmula taħtu

Iżda wkoll kull referenza għall-Att dwar l-Amministrazzjoni

Finanzjarja u l-Verifika, jew kull regolament, direttiva, ordni jew

regola magħmula taħtu, għandhom jitqiesu bħala referenza għal dan l-

Att jew kull liġi oħra li tista’ minn żmien għal żmien temendah,

tissupplimentah jew tissostitwixxih.

* F’każ ta’ kunflitt bejn il-verżjoni Ingliża u dik Maltija ta’

dan l-Att, il-verżjoni Ingliża tipprevali.