100 tal-2017

L.N. 100 of 2017

FINANCIAL ADMINISTRATION AND AUDIT ACT

(CAP. 174)

General Financial Regulations, 2017

BY VIRTUE of the powers conferred by article 4 of the

Financial Administration and Audit Act, the Minister of Finance has

made the following regulations:-

The title of these regulations is the General Financial Title.

Regulations, 2017.

In these regulations, unless the context otherwise

requires -

"the Act" means the Financial Administration and Audit Act;

"accounting system" means the accounting standards, policies

and the electronic accounting software system either adopted or

authorised by the Ministry responsible for Finance;

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

entrusted with the keeping of public moneys as defined in the Act;

"below-the-line account" means those special funds and

accounts, deposits and advances, the receipts and payments in respect

whereof are not credited or debited to the Consolidated Fund;

"Permanent Secretary" means the Permanent Secretary to the

Ministry responsible for Finance;

"Public Account" means the public account held by the

Government of Malta with the Central Bank of Malta;

"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;

"value" means the original value on date of acquisition; and

"accounting officer", "Consolidated Fund", "estimates",

"financial year", "Minister", "public moneys" "revenue" and "vote"

have the same meaning as is assigned to them in article 2 of the Act.

A. ACCOUNTING OFFICERS

The Accountant General shall be the chief accounting

officer of the Government and, subject to these regulations and to

such instructions as may, with the authority of the Minister, be

issued by the Permanent Secretary, the accounting operations of the

Government are under his general management and supervision. It

shall be nevertheless the duty of all accounting officers to ensure

that these regulations are duly observed.

It shall be the duty of the Accountant General in his

capacity as chief accounting officer -

(a)

to see that the proper system of account is

established in every department and to ensure that instructions

are issued accordingly;

(b) to exercise supervision over the receipts of public

revenue and as far as possible to secure its punctual collection;

(c)

to bring promptly to account, under the proper heads

and sub-heads, all moneys, whether revenue or other receipts,

paid into the Treasury or accounted to him;

(d) to ensure that proper provision is made for the safe

keeping of all public moneys, stamps, entertainment duty

tickets, securities and valuable documents;

(e)

to exercise supervision over all the officers of his

department entrusted with the receipt or expenditure of public

moneys, and over the accounting officers, and to take

precautions, by the maintenance of efficient checks, including

surprise inspections, against the occurrence of fraud,

embezzlement or negligence;

(f)

to supervise the expenditure and other

disbursements of the Government; to take care that no payment

is made which is not covered by proper authority, expressed or

referred to on the voucher relating to it; and, in case of any

apparent extravagance or of any apparent defect in the provision

for a charge owing to the exhaustion or absence of a vote, to call

the attention of Government in writing to the matter;

(g) promptly to charge in his accounts under the proper

heads and items all disbursements of the Government, whether

expenditure or other payments; and

(h)

to render the accounts for audit and to prepare the

financial statements and returns.

The Accountant General shall report to Government any Irregularities in

material irregularity connected with the public accounts that may public accounts.

be brought to his notice.

(1) All accounting officers shall be personally Responsibilities

responsible for the due performance of the financial duties of their of

officers.

departments or officers, for the proper collection and custody of all

public moneys receivable by them, for expenditure and other

disbursements and for the accuracy of the accounts rendered by them

or under their authority.

(2) No officer will be relieved of any part of his

responsibilities should he depute to his subordinates the performance

of duties which he should have performed himself.

(3) The responsibility of the Auditor General for checking and

reporting any shortcomings in connection with the public accounts or

finances shall not absolve any officer from his responsibility for

complying, or securing compliance, with instructions within the

scope of his own authority.

(4) All accounting officers, operating or intending to operate

subsidiary accounting systems, whether manual or electronic, are

required to bring them to the attention of the Accountant General.

B. THE ESTIMATES

The Permanent Secretary shall be the chief financial Permanent

adviser of the Government and is responsible for the preparation of Secretary.

the annual estimates of revenue and expenditure whilst their

implementation shall be the responsibility of the Ministry in

respect of which the respective estimates appear, in terms of the

Fiscal Responsibility Act.

The estimates of revenue and the estimates of Submission of

expenditure of each department shall be prepared by the respective estimates

Heads of

Head of Department and forwarded through the Minister Departments.

responsible for his department to the Permanent Secretary together

with any information that may be required including the provisions

emerging from article 14 of the Fiscal Responsibility Act.

The estimates shall be divided into such heads and sub- Division and

heads and items as the Minister may direct. They shall show subdivisions

estimates.

against each item of revenue and expenditure the amount estimated

for the coming financial year, the amount of the approved estimate

of the current financial year and the actual revenue and expenditure

of the last completed financial year.

(1) Where the expenditure of a department is provided

partly by annual votes and partly by special law, the amount provided

by law shall be suitably indicated so that the estimates will show

under each head every item which is expected to come in course of

payment during the year of estimate, including not only those which

are submitted to the House of Representatives for discussion and

appropriation but also those which, being already provided, are

included in the estimates for information only.

(2) The law authorising the provided expenditure shall be

named in each case.

The estimates of revenue and the estimates of expenditure

shall be preceded by abstracts showing the totals of all heads in the

estimates. The abstracts shall show in separate columns -

(a)

the actual revenue and expenditure of the last

complete financial year;

(b)

the approved estimates for the current financial year;

(c)

the revised estimates for the current financial year;

and

(d) the estimated revenue and expenditure for the next

following financial year.

The estimates of revenue shall include the gross receipts

of Government, except repayments of advances, proceeds of loans

appropriated by law for special works, receipts from sales of

investments, deposits and remittances. They shall include all fees,

dues, fines and rents payable into the Treasury.

The revenue shall be arranged under comprehensive heads.

It falls generally into four broad classes

(a)

duties, taxes, licences, fees and other similar

receipts;

(b)

receipts for, or in aid of, specific Government

services;

(c)

receipts on account of undertakings of a commercial

character; and

(d) revenue from Government property such as land,

houses and investments.

The said classes may be subdivided into several heads. Subdivision of

No head, however, shall comprise items coming under different heads

revenue.

classes and revenue derived from taxation should be easily

distinguishable from revenue not so derived.

The estimates of expenditure shall be framed so as to Estimates of

show as nearly as possible the amounts which it is expected will expenditure

be as accurate as

actually be spent during the financial year. Every head of possible.

expenditure shall include, as far as possible, all the items relating

to that particular service so as to show clearly the total estimated

cost of that service during the financial year.

Each Head of Department shall ensure that all services Departmental

that can be reasonably foreseen are included in his departmental estimates

include

estimate and that no unauthorized provision is inserted therein.

unauthorized

provisions.

The estimates of expenditure shall be subdivided under Subdivision of

the headings "personal emoluments", "operational and maintenance estimates

expenditure.

expenses", "programmes and initiatives" and "contributions to

Government entities".

(1) Under "personal emoluments" there shall appear the Personal

basic salaries of public officers, all allowances such as personal, duty, emoluments.

entertainment, acting, expatriation and house allowances, allowances

in lieu of quarters, fuel and light, clothing allowances paid in cash,

fees, percentages or commissions, and social security contributions

payable by Government as employer.

(2) Travelling and transport allowances being granted in

consideration of expenditure on the public service are not to be

included as items of personal emoluments.

(3) Pensionable emoluments shall be distinguished from

those not pensionable by an asterisk or other indication.

(1) Where an officer receives emoluments under more Emoluments to

than one head, the fact shall be indicated by cross references or be included.

explanatory footnotes.

(2) Any pension or compensation allowance or other

emoluments in respect of public service, including the provision of

an official residence, shall be also shown.

Under "operational and maintenance expenses" there Operational and

shall be included all services of a recurrent nature other than maintenance

expenses.

personal emoluments which can be properly apportioned to the

particular department.

(1) The total personal emoluments of each department

will make up one sub-head and small items under "operational and

maintenance expenses" not of a distinctive character may be grouped

under a sub-head of "incidental expenses". Items not so grouped shall

be shown as separate sub-heads.

(2) No

provision

shall

be

made

for

"unforeseen

expenditure".

No items of receipt or expenditure shall be included

under the head "miscellaneous" which can appropriately be placed

under any other head, and, if necessary, new sub-heads shall be

opened for any such items.

New heads or sub-heads shall be opened for items of

receipt or expenditure not properly falling within any of those

already appearing in the estimates.

All proposals for new works or services or additional

personnel for which it is desired to make provision in the estimates

shall be forwarded in advance of estimates by Heads of

Departments to the Permanent Secretary through the Minister

responsible for their department.

(1) No proposal shall be advanced without full

information on its financial aspects and as accurate an estimate as

possible of the funds likely to be required.

(2) The provision of funds in excess of those estimated for

may be refused unless it can be shown that the causes of the excess

were beyond the knowledge or control of the department and that

there was no negligence in the preparation of the original estimates.

The estimates shall be accompanied by explanations

respecting every item of an unusual nature therein comprised and

of any important difference under each item between the proposed

expenditure or anticipated revenue and the approved estimates for

the preceding year, as shown in the parallel columns.

Estimates for works and services of a capital nature shall

be drawn up in accordance with such instructions as may be issued

from time to time by the Minister.

The estimates shall be accompanied by a statement of the

assets and liabilities of the Government at the close of the last

completed financial year, and a statement showing the estimated

financial position of the Government at the beginning of the

financial year to which the estimates relate.

(1) The Permanent Secretary may, as and when required Revised

during the financial year, call upon Heads of Departments to submit estimates

expenditure.

forecasts of the total estimated expenditure to be brought to charge

during the financial year under the heads of expenditure under their

control.

(2) Such forecasts shall show for each sub-head of the

estimates the amount provided, the anticipated expenditure, and

any variations from the amount provided, together with an

explanation for such variations and with references to any

authorities which may have been obtained therefor.

(1) The insertion in such forecasts of an anticipated Excesses.

excess does not of itself constitute any authority for incurring it.

(2) Such authority shall be in each case applied for

separately and full reasons shall be given justifying the excess

expenditure.

Forecasts of revenue, on the same lines as those for Revised

expenditure, may be asked for by the Permanent Secretary as and estimates

revenue.

when required during the course of the financial year.

C. RECEIPTS

All receipt entries in the accounts shall be vouched for Receipt entries

in the accounts.

on the form prescribed by or under any law or regulation.

(1) Except where otherwise provided and in cases where Recording and

receipts are not required or the Minister has otherwise directed, receipting

revenue.

accounting officers shall record all revenue in the accounting system.

Where the revenue is recorded immediately in the accounting system,

a receipt shall be generated. Where the receipt is issued from another

subsidiary accounting system or manually, these receipts shall also be

recorded in the accounting system and a receipt shall be generated

from therein.

Where manual receipts are issued, these must be from books of

forms bearing printed consecutive numbers.

(2) Receipting of revenue, including the custody of receipts,

shall be effected as directed by the Accountant General.

(3) Cancelled receipts shall be retained and recorded.

All licences and permits for which payments are made Licences and

shall be issued from counterfoil books printed with consecutive permits.

numbers.

Unless otherwise authorised by the Permanent Secretary,

any sum of one hundred euro (€100) or upwards held by every

accounting officer, other than the Accountant General, shall be

deposited daily into an authorised bank or into the Public Account

Provided that all monies received, however small the

amount, shall be deposited into an authorised bank or into the

Public Account every Friday and on the last working day of the

month.

Revenue deposited at the Public Account shall be

supported by a printed receipt copy and the Central Bank of

Malta’s deposit slip and other documentation as may be required by

the Accountant General.

Whenever a public officer, not being a regular collector

of revenue, receives public money, he shall pay it to the Accountant

General or to the accounting officer of his department without

delay, obtaining a receipt for the amount so paid in.

(1) In all cases the gross amounts received shall be paid

into or accounted for to the Treasury.

(2) Subject to the provisions of regulation 46, gross receipts

are to be credited to the proper sub-head of Revenue appearing in

the estimates.

Between the time of receipt and the time of payment into

an authorised bank or the Public Account, or to an accounting

officer, no public money shall be made use of in any way

whatsoever; nor shall any officer advance or lend any sum for

which he is answerable to the Government.

If at any time the public revenue sustains a loss by

reason of the neglect or fault of any officer, he shall be liable to be

surcharged with the amount.

(1) Cheques may be accepted in payment of amounts

due subject to the following provisions

(a)

cheques drawn on persons or institutions abroad

may only be accepted with the prior authority of the Head of

Department;

(b)

no post-dated cheques may be accepted;

(c)

the validity thereof shall depend on bank clearance

approval.

(2) Accounting officers shall forward daily to the authorised

bank indicated for such purpose by the Accountant General any

cheques received by them during the course of the day.

(3) All cheques received by departments, regardless of

which bank they are drawn upon, shall be credited to the Public

Account, or any authorised bank.

(1) All accounting officers shall forward to the Statement by

Accountant General every Friday and on the last working day of each accounting

officers of

month, as well as on such days as the Accountant General may revenue

deposited.

indicate, a statement showing the total revenue collected, allocated

and deposited, together with the attached bank deposit slips.

(2) Where no revenue has been collected a "Nil" statement

shall be sent to the Accountant General.

A weekly statement of moneys received in deposit or Moneys

received in

trust shall likewise be sent to the Accountant General.

deposit or trust.

Where no weekly statement is sent to the Accountant Explanation for

General on the appropriate days in time for inclusion in the cash omission

weekly

account, a satisfactory explanation shall be furnished by the Head statement.

of Department giving the reason for the omission.

(1) The Accountant General shall report to the Revenue not to

Permanent Secretary any failure on the part of an accounting officer be

fall into arrear.

to receive and duly account for any sums receivable by him.

(2) The Accountant General shall also report to the Permanent

Secretary any case in which he may have reason to think that the

revenue is falling unduly into arrears.

(3) Heads of Departments shall similarly report in like

circumstances to the Accountant General forwarding a copy of the

report to the Auditor General.

Receipts of public moneys by way of recovery of Recovery of

over-payments.

overpayments, shall be accounted for as hereunder, namely

Accounting.

(a)

receipts in respect of overpayments from the

Consolidated Fund shall be credited -

(i) to the sub-head of Revenue in those cases

where an ad hoc sub-head is shown in the estimates;

(ii) in other cases

(1)

to the head and sub-head of expenditure

to which the overpayment was debited, if incurred

from ordinary expenditure and recovered during

the same financial year of overpayment;

(2) to Revenue under the head for

miscellaneous receipts if made from ordinary

expenditure in any financial year previous to that of

recovery;

(3) in such manner as the Accountant

General directs, if made from capital expenditure in

any financial year;

(b) receipts in respect of overpayments from any fund

or from any below-the-line account made in any financial

year shall be credited to the relative fund or below-the-line

account, as the case may be.

Except in the case of customs and excise drawbacks,

re-payment of duty over-entered, and repayments of tax collected

under duties payable under the Duty on Documents and Transfers

Act and income tax laws, and except where the Minister otherwise

directs, all refunds of revenue, require the prior approval of the

Permanent Secretary before payment is made.

(1) All officers charged with the supervision of the

collection of other moneys due to the Government shall furnish to the

Accountant General for transmission to the Auditor General annual

returns in duplicate showing the state of the arrears in the collection

of such sums, together with reasons for non-collection.

(2) Returns of arrears of revenue or abandoned claims shall be

submitted as early as possible and in any case not later than the 31st

March in each year and shall include all amounts due for collection

on 31st December but remaining unpaid up to the end of the

following January.

(3) In the event of there being no such arrears, a "Nil" return

shall be furnished.

D. PAYMENTS

(1) All disbursements of public moneys, be those held

in Malta or abroad, shall be made under authority from the Minister

by the Accountant General, who is the only officer authorised to

make withdrawals from the Public Account or other accounts opened

in terms of article 15 of the Act.

(2) Payments in other countries shall be made through through

any bank or other agency as the Accountant General may deem

appropriate at the time.

(3) Orders for payments from accounts mentioned in sub-

regulation (1) shall be signed by the Accountant General, or by any

officer performing duty at the Treasury not below the grade of

Principal whom the Accountant General may delegate for the

purpose.

(4) The said orders shall also in each case be signed by the

officer who for the time being shall be performing duty as cashier at

the Treasury.

(5) Orders for payment from accounts kept with the Crown

Agents or with such other person or persons as may have been

appointed as aforesaid shall be signed by the Accountant General, the

Assistant Accountant General or by any Principal doing duty at the

Treasury whom the Accountant General may delegate to sign such

orders on his behalf.

The warrant referred to in article 27(2) of the Act shall Warrant of

expenditure.

be prepared by the Permanent Secretary.

(1) Every claim for the payment of public moneys shall Payment on

be put into a voucher in such form as the Accountant General may vouchers.

direct, and shall be charged against the proper head and sub-head or

account and certified by the Head of the Department concerned or by

any other officer not below the grade of assistant principal whom that

Head of Department may delegate to sign on his behalf and whom the

Accountant General will have recognized as the proper officer for the

purpose.

(2) All vouchers shall contain full particulars of the materials,

works and services, such as dates, numbers, quantities, distances and

rates, so as to enable them to be checked without reference to any

other document, and shall be accompanied by the relative invoices

addressed to the department, sub-vouchers, bills, certificates and any

other justifying documents.

(3) (a)

On signing a voucher, the officer concerned shall

confirm that all documentation is received before processing for

payment, that the persons named in the vouchers are those entitled to

receive payment, that the materials, works and services purchased

have been duly taken on charge, and that the head and the sub-heads

quoted can bear the charge.

(b)

The documentation received in accordance with

paragraph (a) shall include certification by the officers placing the

orders of the specified materials, works and services.

(4) When the materials, works and services specified have

been duly provided, there shall be attached to the voucher a certificate

stating that the payments are in accordance with the terms of the

contract or agreement, and that what has been agreed has been

received.

(5) In the case of payment on account no more shall be

claimed than the cost of the work certified to have been performed.

(6) When a deduction is made from the amount payable on a

contract in respect of a penalty or fine the net sum only shall be paid.

(7) The Head of Department is to ensure that there is sufficient

segregation of duties in the ordering, payment and receiving

processes of materials, works and services, as may be directed by

the Accountant General.

In the event of an unauthorised payment being made in

consequence of any incorrect certificate on a voucher, the officer

who signed the certificate shall be held responsible and the amount

may be surcharged against him.

(1) Payments made by one department on behalf of

another department shall be claimed as soon as possible by the former

department from the latter.

(2) Such claims must be accompanied by the original

vouchers.

(1) All payments shall be made through the Treasury

except where otherwise authorised.

(2) Unless the Accountant General deems it fit to make any

other arrangements, vouchers for payment through the Treasury shall

be presented complete in all respects as directed by the Accountant

General.

(3) Payments up to one hundred euro (€100) may be made by

departments direct.

(4) In the case of departments which are authorised in terms of

article 13 of the Act to keep a bank account in their own names,

payments over hundred euro (€100) shall be made by cheque or bank

draft or electronic payments through that account. Such payments

shall be signed by the Head of Department concerned or by an officer

not below the grade of Principal delegated for that purpose by him

and by another officer not below the grade of Executive Officer,

subject to both such officers being recognised by the Accountant

General as proper officers for the said purpose.

(5) The Minister may exempt any embassy, consular or other

office of Malta abroad from compliance with the provisions of sub-

regulation (4), if he is satisfied that the circumstances of the place

where the embassy, consular or other office is situated are such as to

render that compliance extremely difficult or impossible.

(6) This regulation shall not apply to the payment of

salaries.

(1) In the case of salaries paid on a four weekly basis, Paylists and

the relative paylists or vouchers shall be prepared by the Office of the vouchers.

Prime Minister or such other government agency or department

forming part or directly responsible to the said Office for the issue of

salaries, from information furnished by departments in accordance

with instructions issued by the Office of the Prime Minister from time

to time.

(2) Payments shall be effected from the respective vote.

(3) The Office of the Prime Minister shall be responsible for

the correctness of computations of salaries according to approved

rates and regulations, for the proper deductions from salaries on

account of contributions or other liabilities and shall certify each

paylist or voucher accordingly.

(4) The Head of Department concerned shall be responsible

for the correctness of all the information that he may be required to

furnish to the Office of the Prime Minister or to such government

agency or department as mentioned in sub-regulation (1), for the

purpose of computations of salaries and for all additions and

deductions. He shall certify on the paylist or voucher that the

salaries, increments and allowances for the period stated therein are

due for services rendered by the persons named, that funds are

available and that the incidence of charge is correct.

(1) In order to make payments in cash, accounting Payments in

officers shall draw on the Treasury, by means of authorised forms, cash.

which shall be presented at the Treasury not later than three clear

working days before the day on which the cash is required. Such

forms (in duplicate) and the respective vouchers, must be duly signed

and complete in all respects. These forms are to be taken by the

department to the Central Bank of Malta for collection of cash. A

copy of the respective forms and other payment documents is to be

retained by the department.

(2) In order to make payments by foreign bank draft,

accounting officers shall draw on the Treasury, by means of

authorised forms, which shall be presented at the Treasury not later

than three clear working days before the day the draft is required.

Such forms (in duplicate) and the respective vouchers, must be duly

signed and complete in all respects. These drafts are to be collected

by the department from the Central Bank of Malta. A copy of the

respective forms and other payment documents is to be retained by

the department.

In the case of departments paying through their bank

account by draft, the number of the draft is to be invariably inserted

on the relative voucher and when the drafts are returned paid by the

bank they shall be attached to the relative vouchers.

When cheques or drafts remain unpresented after the lapse

of their legal validity, the department concerned shall remit the

relative amounts to the Public Account and the transaction processed

in the accounting system.

(1) Vouchers paid by departments in cash out of moneys

drawn from the Treasury by schedule shall be returned to the Treasury

duly receipted.

(2) Any amounts remaining in hand in respect of unpaid

vouchers shall be forthwith remitted to an authorised bank to the

credit of the public account and shall be accounted for to the Treasury

as an ordinary remittance.

(1) At the end of each month, accounting officers shall,

as far as possible, call upon suppliers of materials, works and services

to send in their claims.

(2) Departments shall send vouchers payable on a daily basis

for eventual processing. Such vouchers shall be duly certified by the

accounting officer.

(3) In the last month of any financial year, all vouchers for

materials, works and services made up to the 15th December shall

be presented for payment as may be stipulated by the Accountant

General.

The accounting officer concerned shall be responsible to

verify that the incidence of charge is correct, that the payment will

not cause an excess on the provision authorized for the service, that

adequate information has been given on the voucher on the nature

of the material delivered, the works or the services rendered, and

that the certificate has been signed by the proper officer.

(1) (a) Before authorizing payment, the Accountant Withholding of

General may verify that the safeguards in regulation 61 have been payments.

complied with, and if it appears to him that any payment voucher is

drawn up for a service not included in the estimates or that it is in

excess of the authorized provision for the service, or that it is in any

way inaccurate or incorrect, he shall withhold payment and return the

voucher to the department concerned.

(b) The selection of payments for verification

purposes shall be at the discretion of the Accountant General who

shall also reserve the right to conduct verifications as and when

required, without prior notice to accounting officers.

(2) During the verification process, authorized public officers

duly delegated by the Accountant General, may conduct on the spot

verifications of payments being processed and other payments

already processed and paid. These authorized officers shall have a

right of access at all times to the department’s accounting records,

accounts and vouchers and shall be entitled to request from the

accounting officers such information as they think necessary for the

performance of their duties. The information may also be transmitted

in either hard or soft copy as deemed suitable by the delegated officer.

(3) It shall be the duty of every officer assigned to conduct

verifications, to immediately disclose to the Accountant General, any

form of conflict of interest he may have in any verification, whether

such conflict is direct or indirect, and refrain completely from

involving himself in that particular case.

(4) If it appears at any stage during the conduct of the

verification that the payment is unauthorized, the accounting

officer concerned shall be held responsible to recoup funds. In such

an event, the Accountant General shall report to Government of

this finding.

Separate vouchers shall, as far as possible, be used for Separate

separate sub-heads and for the payment of different services, vouchers

separate

especially in cases where each service has been separately sub-heads.

authorised.

(1) Wherever public officers present claims in Reimbursement

reimbursement of expenses incurred by them for the public service, of

public officers.

sub-vouchers in the shape of actual receipts shall be produced.

(2) When sub-vouchers cannot be obtained the officer shall

certify that the charges have been incurred solely for the public

service and actually paid by the officer in line with current

regulations.

(1) Payments shall in all circumstances be made only to

the persons named in the vouchers or to their properly authorised

representatives.

(2) Where the payee will be unable to sign in

acknowledgement of receipt, he shall instead make his mark in the

presence of a person, other than the paying officer, who shall be a

witness to the identity of the payee and to the payment made to him

and to that effect shall sign the receipt.

(3) When payment is made to persons other than those

named on the voucher or paylists, the authority in virtue of which

payment can be made to them shall be registered in the department

and noted on the vouchers.

(1) Save as otherwise provided, payment of salaries

shall be made either by crediting a bank account upon the instructions

of the said employee, or in special circumstances, made by cheque or

bank draft made payable to the employee entitled thereto.

(2) The cheques or bank drafts shall be signed by an officer

not below the grade of Executive Officer delegated for the purpose by

the Head of Department concerned and recognized by the Office of

the Prime Minister as a proper officer for the purpose foresaid. If the

circumstances so require, the cheque may be issued and delivered

earlier than the date which it bears.

(3) Salaries may also be paid in such manner and subject to

such conditions as the Minister may in writing authorise, and any

such authority may be given either in respect of special cases or for

special reasons, or in respect of classes of cases and may also be

given generally.

(4) Nothing in this regulation shall be construed as affecting

the observance of any judgment, decree or order of any court, relating

to the payment of any salary.

E. CLASSIFICATION AND CONTROL

When the annual estimates have been finally approved

and the moneys provided therein have been appropriated by law,

the expenditure of the financial year shall be held to be definitely

limited and arranged.

The approved estimates shall form the basis of the Approved

accounts of the financial year to which they relate and the estimates

form basis of

classification and subdivision of the revenue and expenditure must accounts

financial year.

accord with the details of the estimates.

(1) It shall be the duty of all accounting officers to Anticipated

watch the progress of expenditure during the course of a financial excesses.

year and to report at once, through the Minister responsible for their

department, to the Minister whenever it appears to them that the voted

provision will prove insufficient to meet the essential requirements

for approved services up to the end of the financial year.

(2) The report shall contain full reasons for the anticipated

excess as well as the valid circumstances which render necessary

any additional provision.

Except with the specific authority of the Minister no Restrictions on

accounting officer may make any purchase, contract, agreement or expenditure.

arrangement involving expenditure from a head -

(a)

in excess of the sum provided on the appropriate

subhead; and

(b) on any materials, works or services not included in

the estimates.

The Minister may direct that certain expenditure, Reserved

although provided for in the estimates, may not be incurred without expenditure.

his specific or general approval.

(1) Expenditure properly chargeable to the estimates of Accounting of

a financial year shall as far as possible be accounted for within that expenditure.

year.

(2) Payment for materials, works or services obtained during

a financial year shall not be deferred or carried over to any

subsequent year for the purpose of avoiding an excess on the

approved provision for the service.

Unless otherwise authorised in writing by the Minister, no No payment to

payment for any materials, works or services shall be made before it be

it falls due and

falls due in order to utilise any existing balance prior to the end of a no

balance to be

financial year nor may any unexpended balance of an existing held in reserve.

provision be drawn upon for the purpose of holding money in reserve

to meet impending liabilities or for passing it to a deposit or suspense

account

Provided that the Minister may further authorise in

writing that any funds appropriated in any financial year for any

purpose be placed in a separate account which may be drawn upon,

after the end of the financial year when such funds have been so

appropriated, for the purposes for which the said funds have been

originally appropriated; provided that any surplus remaining in any

such account shall, upon the winding up of the said account, be

transferred to the Consolidated Fund.

(1) In accounting for the purchase or sale of securities

the cost price or selling price thereof shall be entered under

"Investments" or "Investments Realised" below-the-line, that is to

say, following after and distinct from the entries relating to revenue

and to expenditure charged against revenue.

(2) Any profit or loss on sale as compared with the value at

which the securities sold appear in the accounts shall be credited or

debited as the case may be to the proper account to which securities

belong, unless otherwise provided for in any law.

(1) At the close of each financial year each of the

securities held on public account or any other account shall be valued

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 the security published by a recognised

market maker whichever is the latest. The value assigned to each

security in the accounts shall be adjusted so as to correspond with that

(2) The amount by which the new value exceeds or falls

short of the old value shall be carried to the credit or debit of the

proper account to which the securities belong unless otherwise

provided for in any law.

When securities are transferred from one fund to another,

they shall be so transferred at the closing market price published on

the stock exchange on which the security is listed at the date of

transfer.

Any necessary expenditure on services of a confidential

nature, the purpose and particulars of which cannot be made public,

shall be supported in the accounts by a certificate of payment by

the accounting officer concerned and by a declaration by the

Minister that he has satisfied himself that the money has been

properly expended.

Authority for the writing-off of any loss of public moneys

shall be given by the Permanent Secretary or by such other officers as

may be delegated by the Minister

Provided that -

(a)

where the amount in any one case does not exceed

ten thousand euro (€10,000), the write-off may also be

authorised by the Permanent Secretary responsible for the

Department concerned;

(b) where the amount in any one case does not exceed

two thousand and five hundred euro (€2,500) the write-off may

also be authorised by the Head of the Department concerned

Provided further that, in all instances, all efforts have been

made to recover any amounts due and recommendations for write-

offs shall state what remedial action has been taken to avoid future

recurrences. Heads of Department shall be responsible to ensure that

no amounts of money due to Government become time-barred.

(2) No wholesale write-off of any one category of amounts

due shall be allowed unless authorised by the Permanent Secretary.

(3) All write-offs shall be reported to the Permanent

Secretary and copied to the Auditor General.

Where any department administers any public or Accounts of

industrial enterprise the receipts and payments shall, except where enterprise

administered by

otherwise expressly provided for, be accounted for to the a department.

Accountant General and included in his monthly and annual

accounts.

(1) Every accounting officer who in the course of his Recording of

duty is responsible for the receipt, custody and disbursement of public receipts

payments.

funds shall record all receipts and payments in the accounting system.

(2) If the accounting officer does not have access to the

accounting system or another subsidiary accounting system, he shall

keep a cash book in which all receipts and payments shall be

promptly entered.

(3) Receipts and payments recorded in a cash book or another

subsidiary accounting system shall also be transferred onto the

accounting system on a daily basis.

(4) In addition to the provisions of sub-regulation (1), the

accounting system shall also be updated to record

(a) all revenue classified under the different items of

revenue, showing the dates and amounts of the remittances to

the Treasury; and

(b)

expenditure, where all payments made are recorded

under the respective sub-head of expenditure as approved in the

General Estimates. The expenditure records shall be kept in

such a way as will clearly show under each sub-head

(i)

the total amount of expenditure authorised

for the materials, works and services during the year;

(ii) the amount of expenditure charged;

(iii) the balance

remaining

available

for

expenditure at a given date;

(c) Departments keeping a bank account shall at the

close of each month draw up a statement to reconcile the

balance of the bank account as it appears on the department’s

books with the balance on the bank statement. The statement

shall be kept at the Department and made available upon the

Auditor General’s request. Such statement shall be

accompanied where possible by the bank statement and where

this is not practicable by the bank’s certificate showing the

closing balance of the month.

(1) As soon as possible after the close of each month the

Accountant General shall send to accounting officers statements of

the revenue and expenditure as well as statements of all

below-the-line receipts and payments. It shall be the responsibility of

accounting officers, before closing the accounts of their departments

for any one month, to see that the figures in their books actually

correspond with those on the said statements, and in the case of

departments which operate a bank account, to ensure that the balance

in their cash book agrees or is reconciled with the statement of

account of the bank.

(2) Accounting officers shall within a week certify to the

Treasury the correctness or otherwise of such statements.

F. IMPREST

Accounting officers to whom an imprest is issued in

terms of article 31 of the Act shall not make payments out of such

imprest for materials, works and services other than those named

on the relative warrant.

(1)

A separate account shall be kept for each imprest, in

which shall be entered, in order of date, all receipts and payments.

(2) The account shall be balanced on the day on which the

imprest has to be accounted for to the Treasury.

All moneys drawn by imprest shall be accounted for to the Accounting of

imprest to the

Treasury on or before the end of the month in which they are issued Treasury.

unless the terms of the warrant require otherwise.

G. SPECIAL ADVANCES

Whenever any disbursements as provided for in article Accounting of

35 of the Act are made against repayment, there shall be opened a advances.

separate account to which shall be debited all the expenses

chargeable to the account and to which all repayments shall be

credited.

The authority for the issue of funds conveyed by the Lapse of

warrant under the hand of the Minister shall lapse by the end of the authority

warrant.

financial year to which it refers.

The expenditure chargeable to any of the accounts Amount

referred to in regulation 85 shall in no case exceed the amount authorised

warrant not to

authorised by warrant and it shall be the duty of accounting officers be exceeded.

to see that such accounts are repaid as early as possible in the

manner specified in the warrant.

The said accounts shall be balanced at the end of each Balancing of

financial year and where an account is not fully repaid by that date the advance

accounts.

debit balance shall be carried forward to the ensuing financial year.

H. CUSTODY OF PUBLIC MONEYS

Heads of Departments shall inform the Accountant Names of

General and the Auditor General of the names of all officers certain

to be given to

entrusted with the receipt and custody of public moneys as well as Accountant

General and to

of all officers charged with the control of accounts and Auditor

departmental expenditure as may be directed by Accountant General.

General.

All statements or returns certifying to the accuracy of Certification of

collections of revenue or other public moneys shall be signed by revenue

collected.

the Head of the Department concerned or by any other officer not

below the grade of assistant principal whom the Head of the

Department may delegate to sign on his behalf and whom the

Accountant General will have recognised as the proper officer for

the purpose.

Public moneys shall on no account be lodged in a private No public

moneys in

account in any bank.

private

accounts.

(1) Strong rooms or safes shall be provided for the

custody of public moneys in all offices where it is necessary to keep

public moneys overnight.

(2) Strong rooms shall be securely locked with two or more

different locks, held by two or more authorised officers, which

officers shall be authorized by the Head of Department to have

access.

Officers authorised to operate on Government bank

accounts or use strong rooms will keep in their immediate charge

only such sums of money as may be necessary to meet current cash

requirements.

(1) All cash received by public officers shall be

deposited as soon as possible in the safe or strong room provided for

the purpose, or paid into an authorised bank. The officer concerned

will he held personally responsible for any loss arising from

negligence in this respect.

(2) No officer shall keep or allow to be kept on any

Government safe or strong room under his charge any money

except public moneys or such as by virtue of his office he is bound

to receive and account for; nor may private moneys be included in

any Government banking account.

The main stock of stamps, both postage and revenue,

shall be kept in the safe or strong room appointed for that purpose.

Boards of Survey, to be held after the close of business

on the last business day of each financial year, or before the

commencement of business on the first day of the new financial

year, shall be appointed by the Prime Minister to examine the

Treasury cash, bank balances and stamps.

(1) Any cash shortage discovered shall be made good

forthwith by the officer concerned.

(2) All amounts found in excess shall be kept temporarily in

an Other Deposit Account for a period of three months pending

verification of the accounts, after which, if no error is discovered

justifying a refund, such amounts shall be passed to the

Consolidated Fund.

There shall be kept within the Department a detailed

record of cash discrepancies during each financial year.

(1) All cash discrepancies are to be investigated by the Investigation,

Head of Department concerned within one month from the date of refund,

of cash

occurrence.

discrepancies.

(2) Except in the case of any negligence, amounts up to two

hundred and fifty euro (€250) may be authorised for refund or write-

off by the Head of Department. In all other instances, the authority for

refund or write off shall be given by the Permanent Secretary

responsible for the Department concerned

Provided that, in all cases, the recommendations shall

indicate the circumstances leading to the loss of cash and the

remedial action, as necessary, taken to avoid similar recurrences.

(1) Heads of Department shall furnish to their Detailed

Permanent Secretary six-monthly statements indicating, by category, statements

cash losses.

the instances of departmental write-off of cash losses, specifying

therein the remedial action taken.

(2) Heads of Department shall furnish to their Permanent

Secretary, the Accountant General, and the Auditor General, with

an annual statement of all cash losses occurring through theft,

fraud, or negligence, and of all departmental write offs authorised

during that financial year.

Officers who are required to hold a stock of stamps shall Stamps stock

keep a stock book containing the number and value of stamps of each book.

denomination received and issued together with the date of each

transaction.

J. STORES

For the purposes of this Part, "stores" shall include Stores.

supplies of a general character required for ordinary works and

services carried out during the course of a financial year, goods or

equipment which are deemed to be in excess, and goods beyond

economic repair or beyond upgrading.

(1) Heads of Department shall ensure by occasional Stocktaking by

stocktaking, and during the first month of the financial year in any departments

reporting of

case, that the balances of stores on charge are actually in stock, and deficiencies.

shall furnish to their Permanent Secretary a report on each physical

check of stores carried out, stating the date on which the stocktaking

was held, the stores examined and the results obtained. Such report

shall be copied to the Auditor General.

(2) Discrepancies between book balances and actual stock

resulting from such stocktaking shall immediately be reported by

the Head of Department to his Permanent Secretary.

(1) Heads of Department in receipt of items of value by

way of donation in their official capacity are to declare such

donations in a report to their Permanent Secretary.

(2) Any such donations shall invariably be taken on charge

in the store ledger or inventory list as the case may be.

All Government stores, except those for which special

rules have been laid down by Government, may also be verified at

least once a year by an officer of the National Audit Office.

(1) The condemnation as unserviceable and writing-off

of stores, referred to in regulation 102, or other articles shall be

sanctioned by the Permanent Secretary responsible for the department

concerned on the report of a Board of Survey, which board shall not

include any members of the staff of the Department concerned.

(2) Where, in the discretion of the Head of Department, the

articles in question are of an original value not exceeding two

thousand five hundred euro (€2,500), authority may be sought from

his Permanent Secretary to dispense with a Board provided that the

total value of articles to be dispensed of in one calendar year shall

not exceed ten thousand euro (€10,000).

(1) Every officer having in his charge any stores shall

keep a record of their receipt and disposal or consumption in a form

acceptable to the Auditor General.

(2) Departments authorised to keep a stock of unallocated

stores shall keep a quantitative and value record of such stores.

Except where the Permanent Secretary responsible for the

department concerned otherwise directs, surplus store items

mentioned under regulation 102 shall be disposed of by the Director

of Contracts following a public call for tenders issued by him

Provided that

(a)

such store-items which when grouped by category

do not exceed the estimated value of forty-seven thousand euro

(€47,000) per group may be disposed of departmentally as may

be approved by the Permanent Secretary responsible for the

department concerned following an auction or a departmental

call for tender;

(b) such store-items which when grouped by category as

defined by the Accountant General do not exceed the estimated

value of ten thousand euro (€10,000) per group may also be

disposed of departmentally at the discretion of the Permanent

Secretary responsible for the department concerned following

the receipt of not less than three quotations from the open

market, in the absence of which the Head of Department may

dispose of the store items at any offer;

(c)

such store-items which when grouped by category

do not exceed the estimated value of two thousand and five

hundred euro (€2,500) per group may also be disposed of

departmentally at the discretion of the Head of the Department

concerned

Provided further that, in all instances, public officers

shall not be allowed to quote or to tender for the acquisition of such

store-items both in a direct or in an indirect manner.

Store or inventory items not required for Government Donations to

purposes may be donated to institutions or organisations, against a institutes

organisations.

formal receipt, following recommendations for that purpose by the

Head of Department and as approved by the Permanent Secretary

concerned

Provided that Heads of Department shall, at the end of

each financial year, furnish the Permanent Secretary through their

Permanent Secretary with a list of such donations showing the

beneficiaries and confirming that their store and inventory records

have been updated accordingly.

Except with the authority of the Permanent Secretary Loans to other

concerned, or a delegate, store items shall not be issued by a Head departments.

of Department on loan other than to another Government

Department or to a Government organisation.

(1) Cases of losses or shortages of stores shall be Writing-off of

investigated by a Board of Survey to be appointed by the Permanent losses of stores.

Secretary responsible for the department concerned. Such Board,

which shall not include any member of the staff of the department

responsible for the stores, shall report on its findings and make

recommendations thereon to the Permanent Secretary, who shall be

authorised to act upon such recommendations.

(2) The Board of Survey may be dispensed with at the

discretion of the Permanent Secretary where the Head of Department

concerned certifies that there is no prima facie evidence of fraud or

negligence, and that the value of any one item does not exceed two

thousand five hundred euro (€2,500).

(3) In all instances, authority for the writing-off of losses or

shortages of stores shall be vested in the Permanent Secretary

Provided that -

(a)

stores with an estimated value not exceeding ten

thousand euro (€10,000) may also be written-off by authority of

the Permanent Secretary responsible for the department

concerned; and

(b) stores with an estimated value not exceeding two

thousand and five hundred euro (€2,500) may also be written

off by authority of the Head of Department concerned.

(1)

Without prejudice to the provisions of sub-

regulation (2), the General Financial Regulations, are hereby revoked,

without prejudice to anything done or omitted to be done thereunder.

(2) Where proceedings have been commenced as a result of

any infringement of the General Financial Regulations, and have not

yet been terminated on the date of the coming into force of these

Regulations, such proceedings shall be continued and completed

under and in accordance with the General Financial Regulations as if

the said regulations had not been revoked

Provided that the provisions on disciplinary measures

which shall apply in the case of such proceedings shall be whichever

are most favourable to the accused officer.

€2.34