Professional Documents
Culture Documents
Financial Instructions 2017 As at Dec 31 2016 (7)
Financial Instructions 2017 As at Dec 31 2016 (7)
AUDIT ACT
FINANCIAL INSTRUCTIONS
Version 1
January 1, 2017
The Ministry of Finance & Public Service (MOFPS) has overall responsibility for developing the Government’s
fiscal and economic policy framework; collecting and allocating public revenues and playing an important role
in the socio-economic development of the country in creating a society in which each citizen has every prospect
of a better quality of life.
Vision Statement
A Centre of Excellence that enables Sustainable Growth and Development through Sound Policy, Planning and
Quality Service Delivery.
Mission Statement
We combine professionalism and expertise in the pursuit of sound socio-economic and financial policies for the
achievement of sustainable growth and development.
Core Values
The Ministry's customer service will be built on the following values (FIT TEAM):
F - Fairness
I - Integrity
T - Teamwork
T - Transparency
E - Excellence
A - Accountability
M - Mutual Respect
Priority Goals: Enabling growth and national development through a sound and predictable macroeconomic
policy framework that maintains low inflation, stable exchange rates and competitive interest rates;
Improving revenue administration by creating a simple, equitable, and competitive tax environment to ensure
greater compliance and enhance growth;
Strengthening the level of financial accountability, and efficiency of the Public Sector;
Strengthening the capacity of the Ministry to effectively regulate financial institutions and combat financial
crimes;
Improving the internal efficiency and effectiveness of the Ministry.
The cumulative effort and resources will result in four (4) key outcomes:
Stable Macro-Economy
Effectively Regulated Ministries, Departments and Agencies (MDAs), and Financial Institutions
Effectively Managed Public Funds
Satisfied Clientele
2
TABLE OF CONTENTS
1 INTRODUCTION .......................................................................................................................................................... 17
1.1 Acronyms ........................................................................................................................... 20
1.2 Definitions .......................................................................................................................... 21
2 MANAGEMENT ARRANGEMENTS ......................................................................................................................... 28
2.1 The Enabling Legal & Regulatory Framework .................................................................. 28
2.2 Financial Instructions .......................................................................................................... 29
2.3 Accounting and Accountable Officers ................................................................................ 30
2.3.1 Financial Secretary ...................................................................................................... 30
2.3.2 Accountant General ..................................................................................................... 30
2.3.3 Accounting Officer ...................................................................................................... 30
2.3.4 Accountable Officers ................................................................................................... 31
2.3.5 Principal Finance Officer............................................................................................. 31
2.4 Financial Oversight ............................................................................................................. 32
2.4.1 Internal Audit ............................................................................................................... 32
2.4.2 Audit Committee ......................................................................................................... 34
2.4.3 Public Accountability Inspectorate (PAI)................................................................... 34
2.4.4 Auditor- General ......................................................................................................... 35
2.4.5 Public Accounts Committee (PAC)............................................................................ 36
2.4.6 Public Administration and Appropriations Committee (PAAC ................................. 36
2.5 Establishment and Closure of Ministry, Department and Agency ...................................... 37
2.5.1 Establishment of Ministry, Department and Agency ................................................. 37
2.5.2 Closure of Ministry, Department and Agency............................................................ 38
2.6 Financial Misconduct ........................................................................................................ 39
2.6.1 Surcharge ..................................................................................................................... 39
2.6.2 Authority to Surcharge ............................................................................................... 39
2.6.3 Reporting Activities Liable to Surcharge ................................................................... 39
2.6.4 Surcharge Proceedings ............................................................................................... 39
2.6.5 Remedy for Person Surcharged .................................................................................. 40
2.6.6 Notification of Surcharge ............................................................................................. 40
2.6.7 Recovery of Amount Surcharged ................................................................................. 40
3 BUDGET MANAGEMENT........................................................................................................................................... 41
3.1 The Enabling Legal and Regulatory Framework ............................................................... 41
3.2 Financial Instructions ......................................................................................................... 45
3.3 Financial Year/Fiscal Year ................................................................................................. 45
3.4 Budget Call ......................................................................................................................... 45
3.5 Preparation of Expenditure and Revenue Estimates .......................................................... 47
3.6 Supplementary Estimates ................................................................................................... 48
3.7 Reallocation (Virement) ..................................................................................................... 48
4 TREASURY MANAGEMENT ..................................................................................................................................... 50
4.1 The Enabling Legal and Regulatory Framework ................................................................ 50
4.2 Financial Instructions ......................................................................................................... 53
4.3 The Consolidated Fund ...................................................................................................... 53
4.3.1 Purpose of the Consolidated Fund .............................................................................. 54
4.3.2 Custody of the Consolidated Fund ............................................................................. 54
4.3.3 Withdrawals from the Consolidated Fund .................................................................. 54
4.3.4 Repayment of Amounts due to Consolidated Fund through Warrant ........................ 54
4.3.5 Operation of the Consolidated Fund ........................................................................... 54
4.4 Other Funds ........................................................................................................................ 54
4.4.1 Contingencies Fund .................................................................................................... 54
4.4.2 Trust Funds ................................................................................................................. 54
4.4.3 Treasury Deposits ....................................................................................................... 55
4.4.4 Revenue Bank Account .............................................................................................. 55
4.5 Central Treasury Management System (CTMS) ................................................................ 55
4.5.1 CTMS Definition ........................................................................................................ 55
4.5.2 Centralised Payments ................................................................................................. 55
4.5.3 CTMS Web Portal ...................................................................................................... 56
4.5.4 Central Payment Account (CPA) ............................................................................... 56
4.5.5 Treasury Single Account (TSA) ................................................................................. 56
4.5.6 Taxpayer Registration Number and Bank Account .................................................... 57
4.5.7 Foreign Exchange Payments ...................................................................................... 57
4.5.8 Appropriations-in-Aid ................................................................................................ 58
4.5.9 Surrender of Balances to Consolidated Fund ............................................................. 58
4.6 Uniformed Chart of Accounts ............................................................................................. 58
5 REVENUE AND EXPENDITURE ............................................................................................................................... 59
5.1 The Enabling Legal and Regulatory Framework .............................................................. 59
5.2 Financial Instructions ........................................................................................................ 59
5.3 Receipt of Public Money ................................................................................................... 60
5.3.1 Responsibility for Collection of Revenue .................................................................. 60
5.3.2 Revenue Bank Account .............................................................................................. 60
5.3.3 Responsibility of Principal Receivers of Revenue and Accounting Officers ............. 60
5.3.4 Official Revenue Receipts .......................................................................................... 61
5.3.5 General Receipt Book ................................................................................................. 61
5.3.6 Special Receipts .......................................................................................................... 62
5.3.7 Computer Generated Receipts .................................................................................... 62
5.3.8 Preparation of Receipts ............................................................................................... 62
5.3.9 Cancellation of Receipt .............................................................................................. 63
5.3.10 Acceptance of Cheques ............................................................................................ 63
5.3.11 Criteria for Acceptance of Cheques.......................................................................... 64
5.3.12 Stale-dated Cheques ................................................................................................. 64
5.3.13 Dishonoured Cheques ............................................................................................... 64
5.3.14 Cash Cheques ........................................................................................................... 64
5.3.15 Bills of Exchange...................................................................................................... 65
5.3.16 Credit and Debit Cards ............................................................................................. 65
5.3.17 Foreign Currency Card ............................................................................................. 65
5.3.18 Daily Reconciliation of Point of Sale [Debit/Credit Cards Collection) ................... 66
5.3.19 Registered Mail......................................................................................................... 66
5.3.20 The Value Book ........................................................................................................ 67
5.3.21 Uncollected Revenue ................................................................................................ 67
5.3.22 Miscellaneous Revenue ............................................................................................ 67
5.3.23 Appropriations-in-Aid .............................................................................................. 67
5.3.24 User Fees .................................................................................................................. 68
5.4 Lodgement of Public Money ............................................................................................. 68
5.4.1 Lodgement and/or Disposal of Amounts Collected .................................................... 68
5.4.2 Auditor’s Seal on Safe ................................................................................................ 69
5.5 Official Bank Account ...................................................................................................... 69
5.5.1 Authority to Open Bank Account ............................................................................... 69
5.5.2 Request for Approval to Open an Official Bank Account ........................................... 69
5.5.3 Project Bank Accounts ................................................................................................ 70
5.5.4 Replacement Bank Accounts ....................................................................................... 70
5.5.5 Transfer of an account between Branches ................................................................... 70
5.5.6 Bank Account Approval .............................................................................................. 71
5.5.7 Change in Signatories .................................................................................................. 71
5.5.8 Closure of Bank Accounts ........................................................................................... 71
5.5.9 Bank Overdraft ........................................................................................................... 71
5.5.10 Reconciliation of Bank Account............................................................................... 72
5.6 Imprest ............................................................................................................................... 72
5.6.1 Request for Approval to Operate Bank Imprest ......................................................... 72
5.6.2 Requests for Approval to Operate Petty Cash and Other Cash Imprests ................... 72
5.6.3 Imprest at the End of the Financial Year .................................................................... 72
5.6.4 Procedures for Termination of Petty Cash and Other Cash Imprests ......................... 73
5.7 Payment of Public Moneys ............................................................................................... 73
5.7.1 Disbursement Policy .................................................................................................. 73
5.7.2 Certification and Approval ......................................................................................... 73
5.7.3 Delegated Payment Functions ................................................................................... 74
5.8 Commitment Planning and Control................................................................................... 74
5.8.1 Commitment System ................................................................................................. 74
5.8.2 Authority to Commit Public Funds ............................................................................ 74
5.8.3 Types of Commitments .............................................................................................. 75
5.8.4 Commitment Manual .................................................................................................. 75
5.9 Payment of Public Moneys ............................................................................................... 76
5.9.1 Payment Voucher ....................................................................................................... 76
5.9.2 Unauthorised Payment ................................................................................................. 79
5.9.3 Improper payments .................................................................................................... 79
5.9.4 Disciplinary Action for Unauthorised/Improper Payment ......................................... 79
5.9.5 Notification of Payment.............................................................................................. 79
5.9.6 Cash Payment Limit ................................................................................................... 79
5.9.7 Receipts from Payments ............................................................................................. 79
5.10 Control of Cheques.......................................................................................................... 80
5.10.1 Cheque Inventory ..................................................................................................... 80
5.10.2 Writing of Cheques ................................................................................................... 80
5.10.3 Alteration of Cheques ............................................................................................... 80
5.10.4 Crossing Cheques ..................................................................................................... 80
5.10.5 Cheque Signing......................................................................................................... 80
5.10.6 Cancelled Cheques ................................................................................................... 81
5.10.7 Lost Cheque .............................................................................................................. 81
5.10.8 Unclaimed Cheque ................................................................................................... 81
5.10.9 Stale Dated Cheques ................................................................................................. 81
5.10.10 Destruction of Unused Cheques ............................................................................. 82
5.11 Confidential Expenditure ................................................................................................ 83
5.12 Government Funded Credit Card .................................................................................... 84
5.12.1 Authority for Use ...................................................................................................... 84
5.12.2 Application for Credit Card ...................................................................................... 84
5.12.3 Types of Government Funded Credit Cards ............................................................. 85
5.12.4 General Credit Cards (GCC) .................................................................................... 85
5.12.5 Individual Credit Cards (ICC) .................................................................................. 85
5.12.6 Credit Limit ............................................................................................................. 85
5.12.7 Use of Credit Card ................................................................................................... 86
5.12.8 Credit Card Bills ....................................................................................................... 87
5.12.9 Credit Card Monitoring and Control ........................................................................ 87
5.12.10 Validation and Safekeeping .................................................................................... 87
5.12.11 Suspension, Transfer and Termination of Card ...................................................... 87
5.12.12 Lost or Stolen Cards ............................................................................................... 88
5.12.13 Penalties .................................................................................................................. 88
5.13 Payroll Disbursements and Allowances .......................................................................... 88
5.13.1 Monthly Payments .................................................................................................... 88
5.13.2 Weekly/Fortnightly Paid Wages ............................................................................... 89
5.13.3 Salaries Paid by Accountant General ....................................................................... 90
5.13.4 Payroll Changes ........................................................................................................ 90
5.13.5 Closed Period for Changes ....................................................................................... 90
5.13.6 Out of Time Payment ............................................................................................... 90
5.13.7 Leave Salary Paid in Advance ................................................................................. 90
5.13.8 Payroll Register ....................................................................................................... 91
5.13.9 Salaries Control Register: ......................................................................................... 91
5.13.10 Balancing Payroll Register ..................................................................................... 91
5.13.11 Funding of Salaries Bank Account & CPPS .......................................................... 91
5.13.12 Pensions and Allowances ....................................................................................... 91
5.13.13 Statutory and Other Deductions ............................................................................. 91
5.13.14 Statutory Deductions Payable Form ...................................................................... 92
5.13.15 Deposit of Net Pay................................................................................................. 93
5.13.16 Irrevocable Order .................................................................................................... 93
5.13.17 Financial Institutions added to GOJ List of Approved Salary Deduction entities . 94
5.13.18 Salary Overpayment ............................................................................................... 94
5.13.19 Salary in Advance ................................................................................................... 95
5.13.20 Recovery of Debt .................................................................................................... 95
5.14 Communication – Human Resource, Salaries Unit and Section Head .......................... 95
5.15 Travelling Allowance ..................................................................................................... 96
5.15.1 Motor vehicle Documents ........................................................................................ 96
5.15.2 Motor vehicle Not Owned by Travelling Officer ..................................................... 98
5.15.3 Travelling Claims ..................................................................................................... 99
5.15.4 Loss or Disposal of Motor vehicle ......................................................................... 100
5.15.5 Motor vehicle Out of Service ................................................................................. 100
5.15.6 Partially and Fully Maintained Motor vehicles ...................................................... 101
5.15.7 Travel Register ....................................................................................................... 101
5.16 Reimbursement of Toll Charges ................................................................................... 101
5.16.1 Officers to be Reimbursed ...................................................................................... 101
5.16.2 Requests for Reimbursement .................................................................................. 101
5.16.3 T-Card (Toll Card).................................................................................................. 102
5.17 Human Capital Management Enterprise System (HCMES) ......................................... 102
6 PUBLIC INVESTMENT MANAGEMENT............................................................................................................... 103
6.1 The Enabling Legal and Regulatory Framework .............................................................. 103
6.2 Financial Instructions ........................................................................................................ 104
6.3 Definitions ......................................................................................................................... 104
6.4 Common Governance Framework for Public Investment................................................ 105
6.4.1 Authority to Commit to Undertake a Public Investment Project ............................... 105
6.4.2 One Entry Point for Public Investment Project Proposals ........................................ 105
6.4.3 Full Disclosure on all Expenditure Related to the Public Investment Project .......... 106
6.4.4 An Established Process for Inclusion in the PSIP .................................................... 107
6.4.5 Justification for Continued Inclusion in the PSIP .................................................... 107
6.4.6 Responsibility of MDAs to Provide Timely and Credible Information ................... 108
6.4.7 Rigorous Review of All Project Proposals ............................................................... 108
6.4.8 Results-Based Monitoring & Evaluation .................................................................. 108
7 ASSETS AND LIABILITY MANAGEMENT ........................................................................................................... 109
7.1 The Enabling Legal and Regulatory Framework .............................................................. 109
7.2 Financial Instructions ........................................................................................................ 110
7.3 Asset Management ............................................................................................................ 111
7.3.1 Maintenance of Asset ............................................................................................... 111
7.3.2 Nature of Inventory Record ...................................................................................... 111
7.3.3 Insurance of Government Property........................................................................... 111
7.3.4 Physical Verification ................................................................................................ 112
7.3.5 Annual Status Report on Fixed Assets ..................................................................... 112
7.3.6 Sale of Government Property ................................................................................... 112
7.3.7 Furniture and Equipment .......................................................................................... 112
7.3.8 Security of Accounting Machinery, Equipment and Records .................................. 113
7.3.9 Transfer of Furniture Office Machine and Equipment .............................................. 113
7.3.10 Inventory Management ........................................................................................... 113
7.3.11 Government Owned Motor Vehicles ...................................................................... 113
7.4 Accidents Involving Government-Owned Motor Vehicles .............................................. 114
7.4.1 Duties of Driver re: Accident .................................................................................... 114
7.4.2 Duties of Transport Manager re: Accident .............................................................. 114
7.4.3 Submission to Legal Officer ..................................................................................... 115
7.4.4 Submission to Accounting Officer ............................................................................ 115
7.4.5 Submission to Attorney General............................................................................... 115
7.4.6 Submission to the Financial Secretary/Auditor-General ........................................... 115
7.4.7 Submission of Claim to Insurers .............................................................................. 115
7.4.8 Liability of Government Drivers/Transport Manager .............................................. 116
7.5 Hiring or Rental of Motor Vehicles .................................................................................. 116
7.6 Sanction for Breach of Motor Vehicle Policy ................................................................... 117
7.7 Loss of Public Property ..................................................................................................... 117
7.7.1 Reporting Loss .......................................................................................................... 117
7.7.2 Suspected Theft or Fraud .......................................................................................... 117
7.7.3 Loss permitted for Write off ..................................................................................... 117
7.7.4 General Conditions for Write off of Losses ............................................................. 118
7.7.5 Loss to be Written off by Accounting Officers ........................................................ 118
7.7.6 Loss to be Written off by Financial Secretary .......................................................... 120
7.7.7 Loss to be Written off by Minister ........................................................................... 120
7.7.8 Loss to be Written off by Cabinet ............................................................................ 120
7.7.9 Accounting Treatment for Writing off of Loss ........................................................ 120
7.8 Loans and Advances to Public Officers ............................................................................ 121
7.8.1 Motor Vehicle Loan................................................................................................... 121
7.8.2 Motor Vehicle Repair Loan ...................................................................................... 121
7.8.3 Miscellaneous Loan .................................................................................................. 121
7.8.4 Computer Loan ......................................................................................................... 121
7.8.5 Terms and Conditions for Loans .............................................................................. 122
7.8.6 Salary Advance ......................................................................................................... 122
7.8.7 Recovery of Public Officers Loans and Advances .................................................. 122
7.9 Departmental Advances .................................................................................................. 122
7.9.1 Departmental Advance Definition ........................................................................... 122
7.9.2 Expenditure Definition ............................................................................................. 123
7.9.3 Sub-classification of Expenditure .............................................................................. 123
7.9.4 Classification of Advances ......................................................................................... 123
7.9.5 Advancee vs Payee .................................................................................................... 124
7.9.6 Clearing Current Year Advances .............................................................................. 124
7.9.7 Advance Receipts ..................................................................................................... 125
7.9.8 Carrying Forward Advances ..................................................................................... 125
7.9.9 Clearing Prior Year Advances .................................................................................. 126
7.9.10 Loss Transferred To Advances .............................................................................. 126
7.9.11 Departmental Advances of Closed MDA ............................................................... 126
7.9.12 Salary In Advance (Vacation Leave)..................................................................... 126
7.9.13 Write off of Departmental Advances...................................................................... 126
7.10 MOF Contingencies Provision Advance ......................................................................... 127
7.11 Contingencies Fund Advance.......................................................................................... 128
7.12 Treasury Deposits Advance .......................................................................................... 128
7.13 Overseas Travel Advance.............................................................................................. 129
8 ACCOUNTINGAND REPORTING ........................................................................................................................... 131
8.1 The Enabling Legal and Regulatory Framework .............................................................. 131
8.2 Financial Instructions ........................................................................................................ 133
8.3 Assignment of Government Accounting and Book-Keeping Responsibilities ................. 133
8.4 Basis of Accounting .......................................................................................................... 134
8.5 The Computerisation of Government Accounting System ............................................... 134
8.6 Government Accounting Structure.................................................................................... 135
8.7 Books of Accounts – Ministries Departments .................................................................. 135
8.7.1 Cash Book.................................................................................................................. 135
8.7.2 Petty Cash Book ........................................................................................................ 135
8.7.3 MDA General Ledger- Voted & Statutory ............................................................... 136
8.7.4 MDA General Ledger – Departmental Deposits ..................................................... 137
8.7.5 MDA General Ledger – Miscellaneous Revenue ..................................................... 137
8.7.6 PRR General Ledger – Revenue Accounts.............................................................. 137
8.7.7 Fixed Asset Register ................................................................................................ 138
8.7.8 Other Registers ......................................................................................................... 139
8.8 Imprest Accounts.............................................................................................................. 139
8.8.1 Imprest Operation ..................................................................................................... 139
8.8.2 Imprest at the End of the Financial Year ................................................................. 140
8.9 Outstation Accounts ......................................................................................................... 140
8.10 Fund Accounts................................................................................................................ 140
8.11 Revenue Accounts .......................................................................................................... 141
8.11.1 Accounting for Revenues ....................................................................................... 141
8.11.2 Responsibility for Collecting and Accounting for Revenue ................................... 141
8.12 Statutory Heads Accounts ............................................................................................. 141
8.12.1 Statutory Heads Definition ...................................................................................... 141
8.12.2 Responsibility for Preparation of Monthly Statutory Heads Accounts .................. 141
8.12.3 Responsibility for Preparation of Annual Statutory Heads Accounts .................... 142
8.13 Project Accounts ............................................................................................................. 142
8.13.1 Project Accounts to be maintained ......................................................................... 142
8.14 Externally Funded Projects(EFP) Accounts ................................................................... 142
8.14.1 Definitions- EFP .................................................................................................... 142
8.14.2 Budget & Warrant for Externally Funded Projects ................................................ 143
8.14.3 Accounting Procedures- Externally Funded Projects ............................................. 143
8.15 Supporting Records (Vouchers) ...................................................................................... 145
8.15.1 Purpose and Nature of Vouchers ............................................................................. 145
8.16 Records Management .................................................................................................... 145
8.16.1 Responsibility for Records Management ............................................................... 145
8.16.2 Destruction Schedule .............................................................................................. 146
8.16.3 Jamaica Archives ...................................................................................................... 146
8.16.4 Disposal of Records ................................................................................................ 146
8.17 Financial Reporting .................................................................................................. 146
8.17.1 The Purpose and Qualities of Financial Statements ............................................... 146
8.17.2 Deadline for Submission of Financial Reports ....................................................... 147
8.17.3 Financial Reports – General Conditions ................................................................. 147
8.17.4 MDA’s Monthly Financial Reports ........................................................................ 148
8.17.5 MDAs’ Quarterly Financial Reports ...................................................................... 148
8.17.6 MDAs’ Annual Financial Statements ...................................................................... 149
8.17.7 PRRs’ Monthly & Annual Revenue Financial Statements ..................................... 149
8.17.8 Accountant General’s Annual Financial Statement................................................ 150
8.17.9 Statements to be tabled by the Minister of Finance................................................ 151
8.18 MDAs’ Ratings re Timely Preparation & Submission of Financial Statements ........... 152
8.19 Electronic Bank Statement ............................................................................................ 153
9 ADMINISTRATIVE MATTERS ................................................................................................................................ 154
9.1 The Enabling Legal and Regulatory Framework .............................................................. 154
9.2 Financial Instructions ........................................................................................................ 154
9.3 Guidelines for the Acceptance of Gifts ............................................................................. 155
9.3.1 Condition for the Acceptance of Gifts ....................................................................... 155
9.3.2 Approval for Acceptance of Gifts ............................................................................. 155
9.4 Donation of Money .......................................................................................................... 155
9.5 Donation In-Kind .............................................................................................................. 156
9.6 Overpayment of Public Funds ........................................................................................... 156
9.6.1 Prevention and Detection of Overpayment ............................................................... 156
9.6.2 Discovery of Overpayment ........................................................................................ 156
9.6.3 Recovery of Overpayment ......................................................................................... 157
9.6.4 Irrecoverable Overpayment ....................................................................................... 158
9.6.5 Disputed Overpayment .............................................................................................. 158
9.6.6 Request for Waiver of Recovery .............................................................................. 159
9.6.7 Write-off of Overpayment ........................................................................................ 159
9.7 Payment of General Consumption Tax ............................................................................. 159
9.7.1 Who is to Pay GCT? ................................................................................................. 159
9.7.2 Registration as a Tax Withholding Entity (TWE) .................................................... 159
9.7.3 Issuing of WTC from the Jamaica Tax Portal .......................................................... 159
9.7.4 When to Issue the WTC? ......................................................................................... 160
9.7.5 Who is to Issue the WTC? ........................................................................................ 160
9.7.6 Failure to Issue WTC ................................................................................................ 160
9.7.7 The GCT Returns - Form 4F .................................................................................... 160
9.8 Investment of Public Funds ............................................................................................... 161
9.8.1 Investment Officer .................................................................................................... 161
9.8.2 Funds for Investment ................................................................................................ 161
9.8.3 Authorized Financial Institutions and Investments .................................................. 161
9.8.4 Investment Approval ................................................................................................. 162
9.8.5 Investment Interest .................................................................................................... 162
9.8.6 Accounting and Reporting of Investments ................................................................ 162
9.8.7 Investments by Public Bodies................................................................................... 162
9.9 Letter of Credit Facility ..................................................................................................... 162
9.10 Purchase of Fuel by Debit Cards ..................................................................................... 163
9.10.1 Authority for the System ......................................................................................... 163
9.10.2 Fuel Limit ............................................................................................................... 163
9.10.3 Budgetary Provision – Fuel & Service ................................................................... 164
9.10.4 Container Card ........................................................................................................ 164
9.10.5 Declined Transactions ............................................................................................ 164
9.10.6 Vehicle Odometers ................................................................................................. 165
9.10.7 Loss of Advance Card ............................................................................................ 165
9.10.8 Deactivation of Cards ............................................................................................. 165
9.10.9 Account Reconciliation ........................................................................................... 165
9.11 Use of Government Telephone ....................................................................................... 165
9.11.1 Personal Calls ......................................................................................................... 165
9.11.2 Identification of Private Calls ................................................................................ 165
9.11.3 Cost Recovery for Private Calls ............................................................................ 166
9.11.4 Collect Calls ........................................................................................................... 166
9.11.5 Overseas Calls ....................................................................................................... 166
9.11.6 Private Lines ........................................................................................................... 166
9.12 Use of Government Mobile Telephones ......................................................................... 166
9.12.1 Assignment of Mobile Telephones ......................................................................... 166
9.12.2 Procurement of CUG ............................................................................................. 167
9.12.3 Control of Mobile Telephones ............................................................................... 167
9.12.4 Disposal of CUG ................................................................................................... 169
9.13 Use of Government Laptop Computers .......................................................................... 169
9.13.1 Purchase of Laptops................................................................................................ 169
9.13.2 Assignment of Laptops .......................................................................................... 169
9.13.3 Maintenance of Laptop Assignment Register ....................................................... 170
9.13.4 Physical Care of Laptops ....................................................................................... 170
9.13.5 Repairs to Laptops ................................................................................................. 170
9.13.6 Licensed Software-Laptops .................................................................................... 171
9.13.7 Loss or Damage to Laptops .................................................................................... 171
9.13.8 Board of Survey -Laptops....................................................................................... 171
10 CASH-BASED IPSAS .................................................................................................................................................. 172
10.1 The Enabling Legal and Regulatory Framework .......................................................... 172
10.2 Scope of Instruction10 .................................................................................................. 173
10.3 Definitions – Cash IPSAS ............................................................................................. 173
10.4 Relevant Cash Basis IPSAS Concepts .......................................................................... 175
10.4 Requirements of the Cash Basis IPSAS ........................................................................ 176
10.5 Cash Based IPSAS Financial Statements ...................................................................... 176
10.5.1 General Purpose Financial Statements .................................................................... 176
10.5.2 Information to be presented in the Statement of Cash Receipts and Payments ...... 176
10.5.3 Format of the Statement Cash Receipts and Payments ......................................... 177
10.5.4 Consolidated Statement of Receipts and Payments ............................................... 177
10.5.5 Operating Activities ............................................................................................... 178
10.5.6 Investing Activities ................................................................................................ 178
10.5.7 Financing Activities ............................................................................................... 178
10.6 Receipts and Payments for Capital B Projects .............................................................. 178
10.7 Departmental Advances re IPSAS ................................................................................ 178
10.8 Payments by Third Parties on Behalf of the Ministry, Department or Agency ............ 179
10.9 Cash IPSAS - Accounting Policies and Explanatory Notes .......................................... 179
10.10 Selection and Disclosure of Accounting Policies ....................................................... 179
10.11 General Conditions of Annual Financial Statement .................................................... 180
10.12 Information about the MDA and Consolidated Government ...................................... 180
10.13 Consistency of Presentation ........................................................................................ 180
10.14 Comparative Information ............................................................................................ 181
10.15 Identification of Financial Statements......................................................................... 181
10.16 Correction of Errors .................................................................................................... 181
10.17 Consolidated Financial Statements .............................................................................. 181
10.18 Consolidation Procedures ............................................................................................ 182
10.19 Consolidation Disclosures ........................................................................................... 182
10.20 Treatment of Foreign Currency Cash Receipts, Payments and Balances ................... 182
10.21 Calculating the Unrealized Gains or Losses ............................................................... 182
10.22 Budget Information in Financial Statements ............................................................... 183
10.22.1 Presentation of a Comparison of Budget and Actual Amounts ............................ 183
10.23 Changes from Original to Final Budget ...................................................................... 183
10.24 Recipients of External Assistance ............................................................................... 183
10.24.1 External Assistance Received ............................................................................... 183
10.24.2 External Assistance Disclosure ............................................................................ 183
10.24.3 External Assistance to Central Government on behalf of lower tiers of
Governments ........................................................................................................................ 184
10.24.4 Undrawn External Assistance ............................................................................... 184
10.24.5 Receipt of Goods or Services ............................................................................... 184
10.24.6 Disclosure of Debt Rescheduled or Cancelled ..................................................... 184
10.24.7 Disclosure of Non-compliance with Significant Terms and Conditions .............. 184
APPENDICES........................................................................................................................................................................ 185
Appendix 1- Statement of Cash Receipts and Payments for MDAs ...................................... 186
Appendix 2- Notes to the Financial Statements Of MDAs: - ................................................ 189
Appendix 3- Consolidated Annual Statement of Cash Receipts and Payments .................... 192
Appendix 4 - Notes to the Consolidated Government Statement of Cash Receipts & Payments
................................................................................................................................................. 194
Appendix 5- Foreign Currency Account Cash Book ............................................................. 199
Appendix 6- Consolidated/Ministry Comparison of Budget and Actual Amounts ............... 200
Appendix 7- Project Summary Receipts and Payments Statements ...................................... 201
Appendix 8- Project Detail Receipts and Payments Statements ............................................ 202
Appendix 9 - Procedure For Daily Reconciliation of Point of Sale (Debit/Credit Cards
Collections............................................................................................................................... 203
Appendix 10 - Approved Credit Card Ceilings ....................................................................... 204
Appendix 11- Preset Limits on Call For Government Mobile Telephone .............................. 205
Appendix 12- Authority for Write-Off of Loss of Public Money ........................................... 206
Appendix 13- Jamaica Public Investment Management System ............................................ 207
Appendix 14 -Document Retention Schedule ......................................................................... 208
Appendix 15- Point of Sale Reconciliation Statement ............................................................ 215
Appendix 16 -Acceptance of Gift Form .................................................................................. 216
Appendix 17- Statutory Deductions Payable Form................................................................. 217
Appendix 18- Mobile Telephone Register .............................................................................. 218
Appendix 19- Laptop Assignment Form ................................................................................. 219
Appendix 20- laptop Assignment Register ............................................................................. 221
Appendix 21- Declaration by Owner of Motor Vehicle Assigned to Travelling Officer ...... 222
Appendix 22- Declaration of Travelling Officer with Assigned Vehicle .............................. 223
Appendix 23 - Chauffeur’s Allowance Certificate ............................................................... 224
Appendix 24- Travel Register ................................................................................................ 225
Appendix 25- Transport Allowance Claim Form ................................................................... 226
Appendix 26- Quarterly Report on Losses Written Off .......................................................... 228
Appendix 27- Utility Register – Electricity , Water and Electricity ...................................... 229
Appendix 28- Private Telephone Call Register....................................................................... 231
Appendix 29- Rent Payable Register ...................................................................................... 232
Appendix 30 - Contract Register ............................................................................................ 234
Appendix 31- Voucher Forms ................................................................................................. 238
Appendix 32 MDA’s Monthly Financial Reports .................................................................. 264
Appendix 33 MDA’s Quarterly Financial Reports ............................................................... 280
Appendix 34 – MDA Annual Financial Reports ..................................................................... 287
Appendix 35 Revenue Financial Statements ......................................................................... 293
Appendix 36 T-Card Register ............................................................................................... 303
Appendix 37 – Requirements for addition to the Government List of Financial Institutions for
which Salary Deduction Orders are accepted ......................................................................... 304
INDICES ................................................................................................................................................................................ 305
1 INTRODUCTION
January 1, 2017
The Constitution of Jamaica and the Financial Administration and Audit Act lay down the basic
principles for the management of public moneys.
The Financial Instructions (FIs) have been established in order to improve and clarify the
standards of financial control within Government. It is developed to be consistent with the
Financial Administration and Audit Act, Financial Management Regulations and international
best practices. The FIs will assist in providing appropriate levels of management and
governance of public finance.
In the management of public funds there must be probity, economy, accountability and
transparency. These FIs are intended to ensure that financial transactions are properly recorded
and reported on a consistent basis and that the appropriate controls are in place.
The FIs will inform the minimum standard for financial controls in all Ministries, Departments
and Agencies and where applicable to public bodies that are funded from the Consolidated Fund.
Accounting Office may in accordance with section 24F of the FAA Act issue written
instructions to other accountable officers to meet their specific needs. However, these
instructions shall not be in conflict with the FIs herein or contravene any other related legislation.
Special mention must be made of the Instructions relating to the Public Investment Management
System (PIMS) that have been implemented by Government and the Cash Basis International
Public Sector Accounting Standards that have been adopted for the preparation and reporting of
the accounts in Ministries and Departments. These are included to provide a reference to the
established procedures and standards; however, detailed information can be sourced from the
Government of Jamaica Public Investment Management System Operational Guidelines and the
Cash Basis International Public Sector Accounting Standards published by the International
Public Sector Accounting Standards Board.
Implementation of the provisions of the FAA Act, and any instructions and regulations issued
thereunder, is the responsibility of each Accounting Officer appointed under Section 16 of the
FAA Act, in the manner set out in his/her letter of appointment. Accounting Officers have a
responsibility to ensure that the FIs are brought to the attention of all public officers under their
control and that there is access and compliance to the prescribed policies and procedures.
Accounting Officers must ensure that financial systems and procedures for which they are
responsible are operating in accordance with appropriate internal controls and governance
frameworks.
Government employees have a responsibility to read, interpret and consistently apply the FIs in
their daily operations. It is necessary for all officers that have a fiduciary duty for government
funds/assets to understand the relevant FIs and to seek clarification or interpretation where there
is doubt.
17
Public officers must be made fully aware of the legal and constitutional framework within which
the Government of Jamaica operates, and of the instructions and regulations issued, in order that
their duties may be adequately performed in strict compliance therewith.
The previous Instructions of 1977 issued under the Financial Administration and Audit Act are
hereby rescinded.
Everton McFarlane
Financial Secretary
18
Effective Date
The FIs become effective on January 1, 2017.
Legal Authority
The FIs are issued under the authority of the Financial Secretary in accordance with Section 51
of the Financial Administration and Audit Act.
Application
The FIs are applicable to the operations of all Ministries, Departments, Agencies and Public
Bodies which are funded from the Consolidated Fund.
Amendment of FIs
The Ministry of Finance (MOF) will review the FIs annually. However, where it becomes
necessary to revise a FI because of a change of policy before the prescribed period, the FI will be
updated and this information communicated to stakeholders via an advisory or published on the
website of the Ministry of Finance:http://www.mof.gov.jm
Interpretation
The Ministry of Finance must be contacted for clarification where there is need for such
clarification.
Notification of Breaches
The Financial Secretary and the Auditor-General must be advised immediately of breaches of the
FIs.
19
1.1 Acronyms
20
1.2 Definitions
“Accounting Records” are all of the documentation and books involved in the preparation of
financial statements or records relevant to audits and financial reviews. Accounting records
include records of assets, monetary transactions, ledgers, registers, journals and any supporting
documents such as cheques and invoices
.“Accounting Officer” is any person designated as such by the Minister pursuant to Section 16
of the Act and charged with the duty of accounting for any expenditure on any service in
respect of which moneys have been appropriated under the Financial Administration and Audit
Act or any other enactment.
“Accounting Policies” the specific principles, bases, conventions, rules and practices applied
by an entity in preparing and presenting financial statements.
“Accrual Accounting” is a system of accounting based on the accrual principal, under which
revenue is recognized(recorded)when earned, and expenses are recognized when incurred
regardless of whether cash is received or paid.
“Advance” an suthorised loan from (or to) one part of the public sector to (or from) another or
any authorised payment made by an entity for goods and services to be received in due course.
“The Appropriation Bill” is a Bill tabled in Parliament containing the sums to be voted and
approved by Parliament for expenditures of ministries, departments and agencies including
Appropriations-in-Aid for specific fiscal year.
21
“The Appropriation Act” otherwise called the “budget law” is the voted provision passed by
the Houses of Parliament.
“Budget” is a document presenting the government's proposed revenues and spending for a
financial year that is passed by Parliament.
“Budget Call” means written instructions issued by the Minister to departments for the
submission of proposals for their budgets, corporate plans and operational plans in respect of
the ensuing financial year;“
Budget Execution is the process by which the financial resources made available to
Ministries, Departments and Agencies are directed and controlled toward achieving the
purposes and objects for which the budget was approved. This shall be done in accordance
with laws, regulations, instructions and established policies and procedures.
“Cash Accounting” is an accounting method which records cash receipts, payments and
balances. The cash basis of accounting recognises transactions and events only when cash has
been received or paid.
22
“Central Treasury Management System” is a set of procedures, supported by automation,
which enables the Accountant General’s Department (AGD) to assume full responsibility of
cash management functions of Government.
“Collecting Officer” is any public officer to whom the duty of collection of public money has
been assigned.
“The Consolidated Fund” is the Consolidated Fund established pursuant to Section 114 of the
Jamaica (Constitution) Order in Council, 1962, and Part II Sections 3-5A of the Financial
Administration and Audit Act.
“Data” includes: –
(a) any material stored in whatever form in an electronic communications system;
(b) the whole or part of a computer program; and
(c) a representation suitable for processing in an electronic communications system.
23
“Expenditure Clearing Accounts ”are bank accounts operated by ministries and departments
in commercial banks into which approved budgetary funds are lodged by the Accountant
General based on warrants issued by the Minister of Finance. These accounts except for
Executive Agencies have been replaced by the Central Payment Account operated by the
AGD under the Central Treasury Management System.
“External Auditors” mean the auditors of an organisation who are not under the direct or
indirect control of the organisation.
“Extra Budgetary Funds” Government transactions; often with separate banking and
institutional or legal arrangements that are not included in the Estimates of Expenditure.
“Fair value” is the amount for which an asset could be exchanged, or a liability settled,
between knowledgeable, willing parties in an arm’s length transaction.
“Fund Accounts”are the accounts maintained for Revolving Funds, Special Funds or
Statutory Funds operated by a Ministry, Department or Agency.
“Government Company” is a company registered under the Companies Act, in which the
Government or any of its agencies by the holding of shares is in a position to direct the policy
of the company.
“Government Department” is a government entity that has autonomy over its budget,
accounting, personnel management etc. A Government department is authorised by Cabinet to
be established as such and is assigned a separate Head number in the Estimates of
Expenditure.
“Inescapable Expenditure” means recurring expenses that cannot be avoided in the short term
example, salaries, fixed travel, rental, public utilities, food for institutions and the security
24
services, drugs for hospitals, petrol for security services and any other essential services,
contractual/nondiscretionary expenditure.
“Market Value” is the price at which an asset could trade in an open competitive market.
“Miscellaneous Revenue” means any non-tax revenue item, such as user fees cost recoveries
etc. charged by departments for goods and services, the proceeds of which must be paid over or
lodged to an account held by the Accountant General for Miscellaneous Revenue.
“Non-Tax Revenue” means those revenues that do not constitute a tax, levy, licence or duty
e.g. postal revenue, dividends, interest, Departmental and Other Miscellaneous Revenue etc..
“Officer” or “Public Officer” is any person in the employment of the Government of Jamaica.
“Official receipt” means a receipt prescribed by the Financial Secretary for the collection of
public funds.
“Principal Receiver of Revenue” means the main officers charged with the duties
and responsibilities for collecting and accounting for revenue;
25
Public Moneys” mean:-
(a) Revenues and other receipts collected by MDAs for deposit to the Consolidated Fund
or for the operation of the business of Government;
(b) any trust or other moneys received and held, whether temporarily or otherwise, by a
MDA for the business of Government.
“Public Officials” include individuals having public official functions or acting in a public
official capacity and includes any of the following:
Ministers of Government,
Judges and the holder of any other judicial office,
Civil Servants,
Local Government Members and Officials,
Members of statutory bodies and Government companies,
The police, Correctional Officers and other Government security officers,
Teachers, doctors, nurses and other health care personnel and
any other official working in public institutions.
“Revenue” means all tolls, taxes, imposts, rates, duties, penalties, forfeitures, rents and dues,
proceeds of sale and all other receipts of the Government from whatever source arising over
which Parliament has the power of appropriation.“
Recurrent Budget” means a budget for housekeeping expenditure approved by Parliament for
a Ministry, Department or Agency for a financial year..
“Special Funds” mean moneys (loans or grants) provided by funding Agencies (local or
international), to the Government of Jamaica for specific projects and deposited in specially
designated Bank Accounts in accordance with the terms of an Agreement.
“Supplementary Estimates” mean revision to the original approved budget passed by the
Houses of Parliament.
26
“User Fees” are moneys collected by ministries and departments to cover the cost of certain
services; e.g. hospital fees; audit fees. Such fees, unless stipulated otherwise by Parliament, are
to be lodged to the Accountant General for Miscellaneous Revenue.
27
2 MANAGEMENT ARRANGEMENTS
I. Constitution of Jamaica:
Section 2 defines:
2(1) Accountable Officer, Accounting Officer, Audit Commission, Audit Committee, Consolidated
Fund Bank Account; Government Company, Public Body, Public Moneys and Revenue.
2(2) Reference in this Act to a department includes a Ministry and, except where the context
otherwise requires, a public body which is designated as an Executive Agency pursuant to the
Executive Agencies Act.
2(3) References in any enactment or instrument, in whatever terms to the "General Revenue" and to
its variations and cognate expressions shall be deemed to be references to the Consolidated Fund.
2(4) References in any enactment or in any instrument to "Revenue Commissioner" shall be deemed
to be references to the Minister.
Part IV Audit:
Sections 25 to 32:refer to the Auditor-General.
Sections 33 and 34:refer to Internal Audit.
28
III. Financial Management Regulations (FMR) 2011, as Amended 2015
Part IX Audit:
Regulations 142, 143, 147 to 149: provide for establishment and operations of audit functions:
Regulations144 to 146: cover Internal Audit Risk Management; and
Regulations 150 and 151: Internal Controls, Auditor-General.
IV. Fiscal Responsibility Framework Regulations (FRFRs) 2012, as amended 2015
Regulation 7
Section 7(1) provides that before any excess or supplementary expenditure may take place, the
Permanent Secretary generating the request for the expenditure shall submit a report to the Financial
Secretary.
Section 7(4) further identifies the role of the PAAC. The Financial Secretary shall send a report to the
Public Administration and Appropriations Committee of the House of Representatives, and the Financial
Secretary shall appear before the Committee as required to discuss the implications of the excess
expenditure
Section 14(1)provides that for the purposes of Part VII of the Act, the Auditor-General shall, in
accordance with this regulation, certify that a public body primarily carries out functions that are of a
commercial nature if the Auditor-General is satisfied that the public body meets the criteria that are set
out in the Schedule.
29
2.3 Accounting and Accountable Officers
30
(iv) Accounting Officers must sign the relevant appropriation, and other accounts for the
services assigned and in doing so, accept personal responsibility for the statements
accuracy, and completeness.
(v) Accounting Officers shall ensure that proper financial procedures are established and
followed and that accounting records are maintained in the prescribed manner.
(vi) Accounting Officers shall ensure that the public funds for which they are responsible
are properly managed and safeguarded, with independent and effective checks of cash
balances, stores, equipment and property of any kind.
31
(b) bring to account all monies received;
(c) authorise all commitments on behalf of the Government;
(d) supervise and examine all services and supplies rendered; and
(e) ensure the correct payment from public funds;
(v) An adequate system of internal check for receipts, payments and issues under their
control is maintained and tested from time to time;
(vi) Special arrangements are made to recover outstanding revenues, overpayments and
other amounts due to Government. .
(vii) Ensure that the relevant officer(s) assigned the task of recovery at (vi) submit a
report on a quarterly basis or as otherwise directed stating the unrecovered balance and
the actions being pursued to expedite their recovery;
(viii) Adequate systems for ongoing review and monitoring of investment projects during
implementation to ascertain financial and physical progress against set performance
objectives;
(ix) The activities of the department are undertaken with due regard to economy, efficiency,
propriety and integrity expected in the transaction of public business;
(x) Such information, statements and returns required by the Financial Secretary are
prepared correctly and submitted within the prescribed timelines;
(xi) Relevant support is provided to the Permanent Secretary when required to appear
before any Parliamentary Committee; and
(xii) Any other related financial duties delegated by the Accounting Officer and the
Financial Secretary.
32
(iii) Internal Auditors shall be required to perform such functions as may be prescribed by
the Financial Secretary while carrying out duties assigned by the relevant Accounting
Officer and to submit quarterly reports and other reports as required to the Financial
Secretary and to the Audit Committee.
(iv) The functions of Internal Audit shall include the following:
(a) ascertaining the maintenance of an effective system of internal control and the
reliability of accounting and other records;
(b) ascertaining that that there is compliance with the laws, rules and regulations and
approved policies and management directives;
(c) examining financial operations and transactions;
(d) examining financial statements to verify adequacy and correctness of information to
management;
(e) ascertaining the effectiveness of control adopted in preventing and detecting waste,
idle capacity and extravagance in the use of resources;
(f) ascertaining the existence of adequate systems and procedures to safeguard assets and
stores from losses of all kinds;
(g) conducting special investigations in problem areas;
(h) reporting on inadequacies observed, and recommending corrective action;
(i) appraising the progress of works, schemes and projects and the extent to which
programmes and schedules are on target; and
(j) appraising the adequacy and effectiveness of management controls on the
organization's activities. (In the case of technical operations the Internal Auditor
appraises the quality of managerial controls and not the quality of technical
performance).
33
2.4.2 Audit Committee
(i) Audit Committee is an internal committee of the Ministry that reports to the Government
of Jamaica Audit Commission. It is charged with responsibility to assist the entity in its
oversight of the integrity of the financial statements, compliance with the relevant acts
and policies and the performance of the entity’s internal audit function and external
auditors.
(ii) The relevant Audit Committee Handbook, Revised Audit Committee Policy and section
33 of the FAA Act provide further details on the operation of Audit Committees.
(iii) Accounting Officers must ensure that there is an operational Audit Committee within
their Ministry.
(iv) The function of the Audit Committee is to act as a focal point for both internal and
external audits; and to ensure that audit reports and queries are dealt with promptly and
effectively.
(v) Audit Committee must ensure that the Accounting Officer is aware of areas of serious
weakness and that he/she takes the necessary action.
(vi) Accounting Officers must examine the Audit Committee’s meeting reports and its
Annual Report to identify reported areas of weak controls and institute such measures to
rectify same(See further information on Audit Committees, in the GOJ Audit Committee
Policy and Audit Committee Handbook:http://www.mof.gov.jm/documents/documents-
publications/document-centre/file/1341.html
34
(iv) hindrances to efficiency and to make recommendations to the Government for
improvement of public administration.
(d) to advise the Minister of the capacity and capability of any public sector entity, project
or program in undertaking any proposed large outlay of public funds.
35
(c) the date on which a reply was sent to the Auditor-General (this must be within 14
days of receipt); and
(d) the date on which the related recommendations were implemented.
36
(iii) Accounting Officers may be summoned to appear before the Committee to answer
questions on any budget related issue including the efficiency of systems for its
implementation.
(iv) Any officer so attending must be adequately prepared to respond to questions on issues
that may be raised from the PAAC deliberations and sufficiently briefed on the
proceedings of the Committee.
(v) Accounting Officers are responsible for implementing the recommendations of the
PAAC.
37
(x) Accounting Officers of new Ministries must ensure that Audit and Procurement
Committees are established as soon as the relevant Supplementary Estimates is passed by
the House.
38
(vii) Ongoing contracts or contracts in progress that have been signed by outgoing Ministries,
must remain in effect under the Ministry to which the contract’s subject area has been
reassigned.
(viii) The Audit and Procurement Committees of outgoing ministries shall be dissolved as soon
as practical.
2.6.1 Surcharge
(i) Surcharge is a provision of the FAA Act which allows for the recovery of moneys lost or
the value of the loss of property or other assets that have been destroyed or stolen as a
result of negligence on the part of public officers. Surcharge allows for the recovery of the
amount from the person(s) found being negligent.
39
(b) Accounting Officers are required to submit a report giving their views and a
recommendation on the matter; and
(c) an assessment of the responses received should be done and clarification sought where
necessary. A decision should then be taken by the Financial Secretary whether a
surcharge should be levied or withdrawn.
40
3 BUDGET MANAGEMENT
I. Constitution of Jamaica
Section 116:A Supplementary Budget shall be “prepared by the Minister (responsible for finance)
and shall be laid in the form of a Supplementary Appropriation Bill and voted before the House of
Representatives under the appropriate heads”.
II. Finance Administration and Audit (FAA) Act, 1959 as amended 2015
41
Accounting Officers, the Budget Call containing the economic and fiscal parameters which will
govern the preparation of the Estimates of Revenue and Expenditure for the succeeding financial year
and the medium term.-
Section 48B provides the details regarding the documents to be laid along with the annual Estimates
of Revenue and Expenditure;
Upon presentation of the annual Estimates of Revenue and Expenditure, the Minister shall lay before
both Houses of Parliament: Fiscal Policy Paper containing the information specified in the Third
Schedule and setting out, in accordance with this section –
a Fiscal Responsibility Statement;
a Macroeconomic Framework; and
a Fiscal Management Strategy;
a Public Sector Investment Programme, consistent with the requirements specified in the Fourth
Schedule, and which shall be accompanied by a report of the Minister on the alignment of
expenditure on public investment projects in the preceding financial year with the corresponding
programme for that year.
specifies the details regarding the Macroeconomic Framework.
specifies the details regarding the Fiscal Responsibility Statement.
Section 48Gprovides details on the report on Statement of Excess, etc.
Before the House of Representatives votes on any statement of excess or supplementary estimates
pursuant to section 116(2) of the Constitution, the Public Administration and Appropriations
Committee of the House shall consider, and report to the House on the statement of excess or
supplementary estimates (as the case may be), having regard in particular to any Financial
Instructions issued by the Financial Secretary, under section 51, as to the contents of statements of
excess.
Regulation 12(1): The Minister shall issue a directive known as a “Budget Call” no later than
September 30th of each year.
42
Regulation 12(2): The Budget Call shall require every department to submit in respect of the
upcoming financial year, its:
(a) corporate plan;
(b) operation plan;
(c) procurement plan;
(d) expenditure and revenue budgets;
(e) cash flow forecast;
(f) Permanent Secretary’s memorandum; and
(g) any other document prescribed by the Minister.
Regulation 12(3): details the matters to be approved by Cabinet that should form part of the Fiscal
Policy Paper and set out in the Budget Call issued during the financial year.
Regulation 14: The Permanent Secretary’s memorandum on the budget proposal shall include-
(a) a policy and programme direction for the upcoming year;
(b) a report on the current year’s performance;
(c) an indication of the priority programmes for the upcoming year;
(d) an indication of the extent to which the ministry will be able to fulfill its mandate and objectives
in the context of the expenditure parameters; and
(e) priority programmes which might be affected by expenditure limits and the implications on the
ministry’s performance.
Regulation 15: In preparing the estimates, special attention shall be given to-
(a) the compensation of employees, which should accurately reflect the minimum staff required to
effectively deliver the organization’s programmes within the available resources;
(b) full details of the allocation requested for consultancy payments and contract officers, showing
the purpose of these services, contract period and annual cost; and
(c) unpaid bills at the end of the current year which shall be carried forward to the upcoming year and
be a first charge on the approved budget of that year.
Regulation 16(3): The written recommendations of the Financial Secretary shall be obtained before
an Accounting Officer:
(a) Takes an step to implement a change that is likely to have adverse effects budgetary
implications for the financial year that is then current and for all the medium term; or
(b) Submits to the Cabinet a proposal for any such change
Regulation 17:Draft budgets and plans submitted to the Financial Secretary by a department shall be
prepared and submitted under the signature of the Accounting Officer.
43
Regulation 17A: The Minister shall cause the Appropriation Bill in respect of each financial year to
be lain in the House of Representatives no later than one week after the Standing Finance Committee
has completed its examination of he estimates of revenue and expenditure in respect of that financial
year.
Regulation 19 (1): In cases where services were not contemplated when the estimates were presented
and approved, or where a temporary advance from the Contingencies Fund was sanctioned by the
Minister of Finance, Parliamentary approval shall be sought at the earliest opportunity by way of a
supplementary estimate.
Regulation 19 (2): Notwithstanding the Parliamentary approval of the vote, expenditure shall be
controlled by the warrant instrument which regulates such expenditure and by a proper system of
commitment planning and control established and maintained by the Accounting Officer
(Supplementary estimates)
Regulation 20:Accounting Officers shall, upon the request of the Financial Secretary, submit
proposals for adjustments to the voted provision to be incorporated in supplementary estimates.
Regulation 21(1): Subject to paragraphs (2) and (3), where the operating requirements of a
department make it necessary to reallocate expenditure within a non-wage recurrent component of the
approved budget, the Accounting Officer for the department may authorize the use of savings on
expenditure identified under one or more classifications in the budget to offset expenditure under
other classifications in the budget.
Regulation 21(2): An Accounting Officer may not authorize a reallocation in respect of any of the
following –
(a) reallocation of expenditure that is budgeted as compensation for employees of a department;
(b) reallocation of expenditure that is budgeted for a public investment project;
(c) reallocation of expenditure to any service programme or activity that is not provided for by an
Appropriation Act.
Regulation 21(4): This regulation shall have effect for the financial year beginning on April 1, 2015
and for subsequent financial years.
Regulation 22: The Minister may delegate to Accounting Officers the authority to vire under
specified terms and conditions.
44
IV. Fiscal Responsibility Framework Regulations (FRFRs) 2012, as amended 2015
Regulation 4(1): Subject to paragraph (2), the consultation with the Financial Secretary of any
proposed change required under section 16(3) of the Act, shall include the following [see the Act for
the list provided].
Regulation 6(1): Pursuant to section 48E(4) of the Act, each Accounting Officer shall, not later than
November 30 of each year, submit to the Minister a four year corporate plan in respect of each
department for which the Accounting Officer is responsible.
Regulation 6(3): If an Accounting Officer fails to submit a corporate plan in accordance with this
regulation, the Financial Secretary shall provide a report with regard to that failure to the Public
Service Commission for appropriate action.
Regulation 7(1):Before any excess or supplementary estimate expenditure may take place, the
Permanent Secretary generating the request for the expenditure shall submit to the Financial Secretary
a report [see the Act where full details are provided].
45
(a) the policy and programme direction for the upcoming year;
(b) a report on the current year’s performance and achievement;
(c) an indication of priority programmes for the upcoming year;
(d) an indication of the extent to which the ministry will be able to fulfil its mandate and
objectives in the context of the expenditure ceilings; and
(e) priority programmes which may be affected by these ceilings, and the implications for the
ministry’s performance;
2. The Corporate Plan proposed for the upcoming financial year with an executive summary
highlighting the ministry’s specific goals and objectives, strategies, performance indicators,
performance targets and the link with the draft budget estimates;
3. The Implementation Plan or proposed work plan setting out the tasks to be undertaken and the
scheduling of these tasks throughout the year for Capital Heads;
4. The Recurrent Budget Proposal based on the following guidelines;
(a) Compensation of Employees:
(i) The projected expenditure for this item must be based on existing staff complement
excluding vacancies.
(ii) Vacancies to be filled must be shown separately.
(iii) Funds required for the payment of salary arrears must be clearly identified in the
supporting details.
(b) Petrol - Information on the number of serviceable vehicles and their average monthly
consumption (in litres) must be submitted.
(c) Any other guidelines stipulated in the Budget Call.
5. Capital Budget proposals based on the following criteria to justify inclusion in the budget to be
approved by Parliament.
(a) The readiness of the project for implementation, providing evidence of consultations and
decisions taken by the Public Investment Management Committee (PIMC);
(b) The ability of the ministry to implement the project;
6. Summary of Personal Emoluments;
7. Materials and Equipment Budget;
8. Inescapable Recurrent Commitments;
9. Project Summary;
10. Annual Cash Flow Forecast;
11. Procurement plan to include:
(a) Major programs/task activities;
(b) Item description;
(c) Procurement method;
(d) Performance measure/indicator; and
(e) Physical targets and resources per quarter.
12. Foreign Exchange Budget Proposal based on a rate of exchange stipulated in the Budget Call and
including foreign exchange requirements such as:
46
(a) Foreign travel (the places to be visited, number of persons to attend, purpose of visit, type
and cost of passage must be given in detail);
(b) Payment for goods and services;
(c) Maintenance of overseas personnel and officers;
(d) Contributions to regional and international organizations and institutions.
13. Budget Narrative based on the following guidelines:
(a) For each head an executive summary must be prepared covering the scope of the
ministry/department’s mission statement and functions;
(b) An executive summary for each programme covering past performance and targets planned;
and
(c) Quantifiable achievements of activity/projects against targets and projected targets;
14. Miscellaneous Revenue Budget Proposal;
15. Appropriations-in-Aid Budget Proposal; and
16. Risk Management Strategy/Plan.
(iii) Accounting Officers must conform to the budget ceilings, submission deadlines, budget formats and
all other guidelines stipulated in the Budget Call.
47
(v) Accounting Officer shall forward to programme managers and other officers within their
ministry, the Budget Call highlighting the format and timelines issued by the Minister for the
submission of detailed plans, budgets and cash flow forecasts for the upcoming financial year.
(vi) The Principal Finance Officer shall be directly responsible for the coordination and
management of the budget proposals and cash flow forecasts of the ministry.
48
(vi) Reallocation of expenditure budget shall not be authorized between Heads of Expenditure or
between Voted and Statutory Provisions.
(vii) The ceilings approved in the Appropriation Act must be observed at all times.
(viii) A quarterly Report of all reallocation of expenditure budget authorized by Accounting Officers
must be submitted to the Financial Secretary within two weeks of the end of each quarter.
49
4 TREASURY MANAGEMENT
I. Constitution of Jamaica
Definition: "the Consolidated Fund" means the Consolidated Fund established by section 114
of this Constitution.
Section 117:
(1) No sum shall be paid out of the Consolidated Fund except upon the authority of a warrant
under the hand of the Minister responsible for finance.
(2) Subject to the provisions of subsections (3) and (4) of this section and section 118 of this
Constitution, no such warrant shall be issued except in respect of sums granted for the
specified public services by the Appropriation law for the financial year in respect of which
the withdrawal is to take place or for service otherwise lawfully charged on the
Consolidated Fund.
Section 119 (1):The public debt of Jamaica is hereby charged on the Consolidated Fund.
II. Finance Administration and Audit (FAA) Act, 1959 as amended 2015
50
Section 4: covers overdrafts.
Section 5: covers the operation of Consolidated Fund External Accounts.
Section 5A:covers the operation of Consolidated Fund Foreign Currency accounts.
Section 6: covers the investment of Consolidated Fund money.
Section 7: requires Accounting Officers to pay gross revenues into the Consolidated Fund in
accordance with directions of the Financial Secretary.
Section 8A: provides directions re fees, penalty, proceeds of sale or extra or unusual receipt.
Any revenues that are in excess of revenues approved by an Appropriation Act shall be
remitted to the Accountant-General.
Section 9: details how funds may be withdrawn from the Consolidated Fund by the use of
Warrants.
Section 10: authorises the Accountant-General to withdraw funds from the Consolidated Fund
Principal Bank Account.
Definitions:
Electronic Signature means information that:
(a) is contained in, attached to or logically associated with, an electronic document; and
(b) is used by a signatory to indicate his adoption of the content of that document, but does
not include any signature produced by a facsimile machine or by an electronic scanning
device;
Government Property means land, buildings, furniture, equipment, fixtures, inventory, stores,
supplies, artifacts and other assets, both tangible and intangible, owned by the Government;
Official Receipt means a receipt prescribed by the Financial Secretary for the collection of
public funds;
Signatory (electronic) means a person who by means of an encrypted signature creation device
has (whether acting himself or through another person, or an automated communications
device, acting on his behalf) affix his encrypted signature to an electronic document.
Treasury Deposits means funds held by the Accountant-General pending repayment or
application to the purposes for which they were deposited as established by law or otherwise or
any other deposits of which the Accountant-General is the custodian (other than Trust Funds or
the balances of the Consolidated Fund and the Contingencies Fund).
Regulation 5:
(1) The books of accounts of the Consolidated Fund shall be maintained by the Accountant-
General on a double entry basis and in accordance with the accounting policies and
standards prescribed by the Financial Secretary.
51
(2) A cash book or ledger account shall be maintained for each Consolidated Fund Bank
Account and shall be reconciled at least once per month.
(3) Cash books and ledger accounts for Consolidated Fund External Accounts and
Consolidated Fund Foreign Currency Accounts shall be maintained in the relevant foreign
currencies along with the Jamaican dollar equivalent based on the daily Bank of Jamaica’s
weighted average rate of exchange.
(4) Foreign exchange differences incurred between the standard rate of exchange and the actual
rate of exchange shall be transferred to a Foreign Exchange Adjustment Account in the
books of accounts of the Consolidated Fund.
(5) The Foreign Exchange Adjustment Account shall form a part of the assets and liabilities of
the Consolidated Fund and shall be disposed of in a manner approved by the Minister.
Regulation 6: Bank and other charges on any Consolidated Fund Bank Account shall be paid
from an appropriation under the control of the Accountant-General.
Regulation 7: Withdrawals from the Consolidated Fund shall not exceed the limit set by the
warrant.
Regulation 9: Unclaimed funds held on Treasury deposits for a period of six years shall be paid
to the Consolidated Fund.
Regulation 10:Where any person entitled to a deposit which has been paid over to the
Consolidated Fund, subsequently proves, to the satisfaction of the Financial Secretary, his
claim to that deposit, the Financial Secretary shall thereupon approve a refund by the
Accountant-General of the amount to that person.
Regulations 45 – 46: provide for the Security and Custody of Public Monies.
Regulation 54:Accountable Officers shall, by the 15th day of each month, inform the
Accountant General of all statutory deductions to be withheld from employees’ earnings.
Regulation 54A
(1) Every Accountable Officer shall remit any deduction from the earnings of an employee
to the person entitled to receive that deduction within seven working days of the
effective date of the deductions.
(2) Each Accountable Officer shall within seven days after the end of each month, provide a
52
written report to the Financial Secretary of all deductions made under this regulation by
that accountable officer.
Regulation 55: An Accountable Officer who contravenes regulation 54 or regulation 54A is
liable to surcharge for any penalty or costs accruing to Government as a consequence of such
failure or to disciplinary proceedings in accordance with the Public Service Regulation.
IV. Fiscal Responsibility Framework Regulations (FRFRs) 2012, as amended 2015
Regulation 2A
(5) All proceeds related to loans or grants shall be paid into the Consolidated Fund.
Regulation 3(1):Where under section 9(2A) of the Act, the Minister proposes to suspend,
withdraw, or impose conditions on a warrant under section 117 of the Constitution of Jamaica,
he shall provide a report to the Cabinet specifying –
(a) whether the decision is for a withdrawal, suspension, or imposition of conditions on the
warrant;
(b) the reasons for the decision, including any specified in paragraph (2) that may apply, and
under what conditions it may be reversed; andthe implications the action may have on
other warrants that have been issued under section 9 of the Act.
Regulation 3(2):The reasons referred to in paragraph (1) (b) include there being –
(a) an insufficiency of cash resources in the Consolidated Fund to honour the warrant, given
other current or future obligations;
(b) a failure to meet the obligations under section 48C of the Act or its supporting regulations
as a result of honouring the warrant; or a failure to meet agreements with domestic or
international partners as a result of honouring the warrant.
53
4.3.1 Purpose of the Consolidated Fund
(i) The Consolidated Fund is the principal fund of Government established for the purposes of
holding revenues to meet voted and statutory expenditure.
(ii) Revenues shall consist of taxes, imposts, duties, fees, fines, penalties, forfeitures, rents, dues,
proceeds of sales, and all other receipts of Government from whatever source arising over
which the Parliament has the power of appropriation.
55
(iii) Payment requests sent to the AGD where applicable, must contain the due date for
payment.
(iv) The total amount of payment requests submitted to the AGD at any point in time must
not exceed the sum of the following:
(a) total warrants issued to date;
(b) total authorised MOF Contingencies Provision advances issued to date (if any);
(c) total authorised AGD Treasury Deposits advances issued to date (if any); and
(d) total AIA lodgements to the Central Payment Account (CPA) to date (if any).
(v) The Accountant General shall effect MDAs’ payment requests within five (5) working
days of receipt, except in situations where funds are not available, in which case the
AGD must immediately advise the relevant MDA. MDAs shall be accountable for the
validity; accuracy and authenticity of all payments effected by AGD on their behalf.
(vi) The AGD shall be responsible for ensuring that MDAs payments do not exceed their
warrant funds.
(vii) MDAs shall be accountable for rejected payments and any payment made to a wrong
bank account.
(viii) The AGD shall effect MDA’s and other CTMS payments using the following banking
platforms:
(a) Real Time Gross Settlement (RTGS) System;
(b) Automated Clearing House System (ACHS), and
(c) Any platform approved by the Financial Secretary.
(ii) All transactions on the CTMS Web Portal shall require verification by an authorised
officer of the MDA before it shall be transmitted to the Treasury.
56
(a) Consolidated Fund;
(b) Consolidated Fund Subsidiary Bank Accounts;
(c) Central Payment Account;
(d) Central Receipts Account
(e) Treasury Deposits Accounts; and
(f) Revenue Bank Accounts.
(g) Any other bank account designated by the Financial Secretary
57
4.5.8 Appropriations-in-Aid
(i) Approved Appropriations-in-Aid collections to be used to finance expenditures to be
paid through the CTMS must be deposited by MDAs to the relevant bank account
designated by the Accountant General
(ii) Where the AIA collections exceed the approved AIA budgetary provision, the excess
collections must be lodged to the Consolidated Fund Account.
(iii) Expenditure payments to be made from AIA funds by the MDAs must be processed on
the accounting system and submitted to the AGD in the normal manner using the
relevant fund source code for AIA payments
58
5 REVENUE AND EXPENDITURE
I. Constitution of Jamaica
59
5.3 Receipt of Public Money
61
(ii) In order to maintain at all times adequate control over receipt books under their charge,
Accounting Officers are required to maintain a stock record to show receipts from the
Accountant General and issues to the various Departments under their control. These
Departments must maintain a receipt book register for recording the officers to whom
individual books are issued.
(iii) Officers responsible for the custody of receipt books must ensure that the serial number on a
receipt and the corresponding duplicate is the same and that the receipts in a book are in
strict numerical sequence. Any error in number which has been discovered must be reported
promptly to the Accounting Officer and the book should not be put into use without his
authority.
(iv) Receipt books must be issued in consecutive order and individual receipt forms must be used
in numerical sequence.
62
face of the receipt are reproduced on the back of the original and on the copies retained for
official use.
(iii) Receipts must be signed by the officer authorized to receive public monies.
(ii) The Accounting Officer and/or Head of Department shall designate in writing appropriate
senior officer(s) to have discretionary powers in accepting cheques.
63
5.3.11 Criteria for Acceptance of Cheques
(i) Cheques accepted for the payment of public moneys must be:
(a) Drawn in favour of the ministry, department, agency to which the payment is being
made;
(b) Drawn for the exact amount due;
(c) Have the drawer’s name, address (work and home) and telephone number (work and
home) clearly written on the reverse side of the cheque; and where necessary, the
identity of the drawer should be verified by a valid identification (i.e. driver’s licence,
passport, voter identification card).The particulars of the identification provided must
be noted on the reverse side of the cheque.
64
(b) The presenter countersigns in the prescribed section on the face of the cheque in the
presence of the collecting officer; and
(c) The counter-signature corresponds with the signature already affixed to the face of the
cash cheque.
65
5.3.18 Daily Reconciliation of Point of Sale [Debit/Credit Cards Collection)
(i) Any loss to the Government resulting from the failure of a collecting officer to fully comply
with these Instructions shall render such collecting officer liable to surcharge.
66
(ii) The Cashier or Accountable Officer must initial each entry in the Value Book, bring the
monies to account and note on each letter and in the Value Book the receipt number issued
for the respective amounts received.
5.3.23 Appropriations-in-Aid
(i) The approval of Parliament by way of the Estimates of Revenue and Expenditure is required
for the inclusion of appropriations-in aid within an entities Budget.
67
(ii) Authorised appropriations-in-aid shall be lodged to
(a) The relevant bank account designated by the Accountant General where expenditure
payments from these funds are to be done through the CTMS;
(b) Any designated bank account approved by the Financial Secretary..
(iii)Appropriations-in-Aid collected in excess of the amount authorized for collection as stated in
the Estimates of Revenue and Expenditure must be surrendered to the Consolidated Fund and
shall not be used to meet expenditures.
68
(viii) A breach of this instruction resulting in a loss of public funds, shall cause the officer
found culpable of the breach, to be surcharged for the amount of the loss or part
thereof as determined by the Financial Secretary.
(ii) Any breaking of seals without adherence to the above constitutes a breach for which the
officer shall be subject to disciplinary action as determined by a Committee established to
administer discipline.
NB -The signatories must not include temporary officers, Board Chairmen, Board
Members or any officer who by virtue of the nature of his/her function(s)
compromises the system of internal control. For a contract officer to be a signatory
to any bank account the duration of his/her contract must be more than 12 months
following the date targeted for the opening of the account.
69
In exceptional circumstances, such as legislative procedures, where Board
Chairmen or Board Members are required to be signatories to a bank account,
special approval may be granted by the Financial Secretary.
(e) The signatories must be divided into two groups:-
(i) Group (A) representing the Accounting Officer , Chief Executive Officer or
Head of Entity, or Principal; and
(ii) Group (B)representing the Principal Finance Officer, Director of Finance,
Financial Controller or Bursar;
(f) The method of signing cheques, that is, cheque signing machine, computer,manual
or other method approved by the Financial Secretary;
(g) The type of account required - current, saving, term deposit, interest bearing
current account etc.
(h) Purpose of the account;
(i) Source of funds – Consolidated Fund, Grants from external sources, Loans; and
(j) Currency of proposed account (J$, US$, British Pound, Euro or other approved
currency).
70
5.5.6 Bank Account Approval
(i) The Financial Secretary’s letter of approval for the opening and operation of a bank
account may contain specific instructions. These instructions must not be varied without
the prior written permission of the Accountant General.
(ii) Immediately upon opening of the bank account, the MDA must advise the Accountant
General of the account number and the date on which the account was established.
71
(b) The officer authorizing the payment and the release of funds;
(c) The officer signing the cheques, except where a cheque signing machine is used.
(iv) Cheque signing officers shall be responsible for ensuring that before signing cheques they
are satisfied that funds are available and the payment is correct.
5.6 Imprest
5.6.2 Requests for Approval to Operate Petty Cash and Other Cash Imprests
(i) Accounting Officer and other Accountable Officer requiring petty cash imprest, stamp
imprest, refund imprest and float or change imprest for cashiers must request the approval of
the Accountant General stating the following:
(a) the necessity for the imprest;
(b) The type of imprest requested;
(c) The name and location of the imprest holder; and
(d) The amount of the imprest.
(ii) Where the Accountant General authorizes the operation of any type of petty cash imprest,
the amount of such imprest shall not be varied without the prior and written approval of the
Accountant General.
72
new financial year. However, this must be surrendered to the Consolidated Fund in the new
financial year from that year’s budget as soon as possible.
5.6.4 Procedures for Termination of Petty Cash and Other Cash Imprests
(i) For termination of petty cash and other imprests except imprest bank accounts the following
actions must be taken:
(a) A proper reconciliation between the reimbursable expenditure and the cash or valuables
held with the authorised imprest amount;
(b) The Chief Audit Executive must certify the reconciliation;
(c) The cash or valuables held must be surrendered to the source of funding; and
(d) The Accountant General must be advised of the termination within two (2) weeks after
termination of the cash imprest.
(e) A copy of the certified reconciliation stating where the cash or valuables have been
surrendered, and the date of the surrender must be included in the information submitted to
the Accountant General.
“.......In accordance with the Financial Administration and Audit Act Instruction 5.8.2 you
are hereby authorized to commit expenditure in relation to the following
programme(s)/project(s)/activit(ies)
Program/Project/Actvities Amount
Accounting Officer
Date
74
(iii) The Accounting Officer may where necessary revoke or amend any authorization
delegated for the commitment of public funds.
(iv) Copies of each letter of authorization or any revocation or amendment to such
authorization must be submitted to the Principal Finance Officer/Head of Accounts and the
Human Resource Director/Manager who shall note same and place on the officer’s
personal file.
(v) Public officers shall not commit the Government to any expenditure unless he/she has:
(a) been authorized in writing by his/her Accounting Officer/ or Head of Department; and
(b) advised in writing by the Commitment Control Officer, that funds were provided and
are available for the specific purpose of the proposed expenditure.
(vi) Failure to comply with this instruction shall render the officer concerned liable to
surcharge of a sum not exceeding the amount of the improper payment.
75
(ii) Commitment Control involves blocking or earmarking warrant funds against budgetary
allocations to ensure that funds are available to meet payments from these allcations when
they fall due.
(iii) Commitment planning involves planning expenditures at a high or strategic level based on
approved budgets. It involves reviewing and blocking expenditures against the budget of one
or more financial years particularly in respect of medium or long term contracts and other
obligations. Commitment Planning shall drive the Commitment Control exercise.
76
(i) All payments must be properly checked and certified by a designated officer to ensure
validity, accuracy and compliance with contracts, FIs and any other relevant statute and
regulation.
(ii) The signature of the officer authorized to certify payments is intended to be a guarantee of
the accuracy of every detail on the voucher.
77
(f) the correctness of the account code classification of the payment.
_________________________ ________________________________
Certifying Officer Authorising Officer
Date Date
79
5.10 Control of Cheques
(i) Accounting Officers and Heads of Departments shall ensure that adequate safeguards exist
in their Accounts Branch for:
(a) the receipt, custody and issue of blank cheques;
(b) the custody, control and use of cheque printer;
(c) the signing of cheques;
(d) the custody, control and use of cheque signing machines; and
(e) the custody and delivery of signed cheques.
80
(ii) Counterfoils or copies of all cheques, where available, must be retained as reference for
not less than five (5) years.
81
(iv) the stale-dated cheque account in General Ledger must be reconciled monthly with the
stale-dated cheques subsidiary ledger .
(v) when stale-dated cheques are reissued the entries at (5.10.10) (ii) must be reversed and the
relevant entry in the stale-dated cheques subsidiary ledger cancelled..
(vi) the balance on the Stale-dated Cheques Account is a liability of the MDA that must be
carried forward from one financial year to another.
(vii) held in the Stale-dated Cheques Account forsix (6) or more years, must be transferred to
the Accountant General’s Miscellaneous Revenue Bank Account.
82
(f) A certificate attesting to the fact that the cheques were destroyed and detailing the
specific tasks performed must be prepared, signed by the members of the Board of
Survey and submitted to the Accounting Officer;
(g) At the end of this process a report detailing the procedures employed and including a
copy of the certificate produced by the Board of Survey must be submitted to the of the
Accountant General and the internal auditor of the relevant MDA;
(h) Additionally, where the destroyed cheques relate to an official bank account that has
been closed the following documents must accompany the report to the Accountant
General:
A copy of the letter to the bank containing the instructions to close the account;
A copy of the final bank reconciliation statement; and
Detail of how any credit balance on the account at the date of closure was accounted
for.
83
whether as a single payment or the sum total of a series of payment must be submitted
under confidential cover to the Minister for prior approval. Such approval where granted
shall be given in writing under confidential cover.
(x) The Minister shall be provided quarterly by the Accounting Officer under confidential
cover a summary of the confidential expenditures made in the quarter. The report must
state the following:
(xi) The Minister may where considered appropriate direct the Financial Secretary to issue
instruction barring any accounting or accountable officer from making any further
Confidential Expenditures.
(xii) A copy of the Financial Secretary’s instruction at (5.11) (xi) must be submitted to the
Auditor General.
84
(k) The name and post of the accountable officer responsible for monitoring and
reporting on the use of credit cards within the ministry, department, agency or public
body in accordance with Instruction 5.12.9.
(ii) Public Bodies that are self-financing must obtain written approval from their Board for the
operation of a Government funded credit card. Notwithstanding this, public bodies must
abide by all the principles outlines in these Instructions
85
(iv) In very special circumstances the Accountant General subject to the approval of the
Financial Secretary may authorise credit card limit in excess of that stated at Appendix 10,
either on a permanent basis or for a specific period of time.
(v) The approved credit limit or ceilings must be communicated by the MDA to the credit card
company by the relevant MDA or Public Body.
(vi) Under no circumstances shall the credit limit be increased or varied without the prior written
approval of the Financial Secretary. Where the bank automatically increases the limit, they
must be instructed to immediately revert the card to the limit approved by the Accountant
General/Financial Secretary.
(vii) In special circumstances where it is required to use the GCC to make a purchase in excess of
the approved limit the Permanent Secretary, Head of Departments or Chief Executive
Officer may authorise the deposit of the required additional funds to the credit card account
to effect the transaction.
(viii) Where a credit limit is exceeded, MDAs and public bodies shall not pay the excess amount
and/ or any other attendant costs to the bank unless approved by the Accountant General. If
not approved, the excess must be paid by the cardholder. Where the excess is not paid by the
cardholder he/she shall be liable to surcharge.
86
5.12.8 Credit Card Bills
(i) Bills, invoices, statements, sales draft, transaction receipts must be presented to the relevant
Accounts Branch to substantiate all credit card expenditures. The bills, invoices etc. must be
certified that goods or services were satisfactorily received.
87
(a) dies;
(b) is declared bankrupt or mentally unsound;
(c) is interdicted by the Public Services Commission;
(d) is convicted of a criminal offence; and
(e) resigns, retires, is dismissed, or is separated from office in any other way.
(iv) When a decision is made to terminate the use of a Government funded Credit Card, the
following procedures shall apply:
(v) The issue of written instruction to the bank terminating the card with immediate effect;
(vi) The issue of written instruction to the cardholder to return the card to the CCA;
(vii) The CCA obtain a final statement from the bank and reconcile it with the receipts and charge
slips;
(viii) The Accountant General be advised of the termination of the card, submitting copies of:
(ix) the letter to the bank terminating the card;
(x) the letter to the cardholder to return the card; and
(xi) the final reconciliation statement detailing any amounts outstanding and any amounts owed
by the cardholder for personal or unauthorized use. The final reconciliation statement
submitted must be certified by the Chief Internal Auditor.
5.12.13 Penalties
(i) Penalties for breach of Instruction 5.12 and any false information knowingly submitted to
the Accountant General in respect of the application or operation of the card shall cause any
of the following actions:
(a) termination of card;
(b) recovery of charges; and
(c) surcharge and/or disciplinary action by the Public Services Commission or by the Board
of the relevant public body.
88
5.13.1.2 Period of Payment
(i) The payment of salary to monthly paid employees of Government shall be in respect of each
calendar month.
21 35800
𝑥 = 34172.73
22 1
5.13.1.5 Payroll Register
(i) Monthly salaries shall be made on the basis of a payroll register prepared, checked, balanced
and authorized by the respective accountable officers to whom the duty has been delegated.
89
5.13.2.3 Computation of wages
(i) Wages for periods of less than one week shall be calculated as a fraction of five (5) days.
90
5.13.8 Payroll Register
(i) The Accountant General shall submit copies of the payroll register to the relevant client
ministries and departments advising them of particulars of the salaries and deductions for
each employee.
91
deductions or earlier as per the requirements of the statutes under which the deductions are
effected.
92
payable for Income Tax, Education Tax, NIS employees’ and employer’s contributions,
NHT employees’ and employers’ contributions.
(ii) Statutory Form must be submitted to the Ministry of Finance no later than ten (10)
working days of the month in which the salary is paid. Educational Institutions, Regional
Health Authorities and Outstations must submit Statutory Deduction Form to their
portfolio Ministry within five (5) working days of the month to be incorporated in the
overall submission to the Ministry of Finance.
(iii) The Accountant General’s Department shall through Intra-Government Transfer and
otherwise effect payment of the deductions and advise TAJ and MDAs and public
entities accordingly.
(iv) The TAJ shall issue receipts to MDAs and other relevant public entities for the statutory
deductions paid.
93
(c) the name of the officer accepting the Order,
(d) the financial institution to which the payment is to be made and
(e) the expiry date of the Order
(vi) Permanent Secretaries and Heads of Departments may prescribe a monthly and fortnightly
threshold which employee’s net salary must not fall below when accepting irrevocable
orders. Where an Order, if accepted will cause an officer’s net salary to fall below the
prescribed threshold, the Order shall not be accepted.
(vii) Where an irrevocable order is in force, MDAs must ensure that the order is executed for:
(a) all months or fortnights including those for which salary is paid in advance re-
vacation leave
(b) all salaries paid to persons on suspension, or interdiction.
(viii) MDAs that are paid by the AGD shall be responsible for signing, accepting and submitting
Irrevocable Orders to the AGD for execution and for maintaining the Irrevocable Order
Register.
(ix) MDAs shall charge employees a non-refundable processing fee of five hundred dollars
($500.00) before signing and acceptance of any Order. This fee must be collected and paid
over to the Accountant General for Miscellaneous Revenue.
(x) The non-refundable processing fee shall not be applicable in respect of deduction orders
from banks, credit unions, building societies, insurance companies and other
licensed/registered financial institutions. It shall be a one off payment charged for new
irrevocable standing orders submitted by approved unregulated financial institutions only.
Variations to an existing standing order shall not attract a processing fee.
94
(b) The nature of the overpayment and whether it is reasonable to believe that the officer
was aware of the overpayment;
(c) The repayment schedule the officer is able to afford; and
(d) The likelihood of the officer to be separated from the service.
95
(c) similar advices and acknowledgement must be given whenever any other occurrences
affecting officers’ entitlement to salaries arise (e.g. promotions, seniority payments, no pay,
half pay or quarter pay leave, acting appointments, retirement, resignations or dismissals);
(d) the Salaries Unit must note leave particulars, resumption dates or other relevant data on
officers’ salary cards;
(e) the Salaries Unit must not pay salaries and allowances beyond the period of approved leave
without receiving written instruction from the human resource section that the officer has
resumed duties;
(f) where the resumption date falls on a pay day, or immediately after a pay day, or within a
period which would prevent the payment of salaries for that entire pay period, consideration
shall be given for payment of the salary provided human resource have advised that the
officer have sufficient vacation leave to cover the entire pay period;
(g) the human resource section must maintain control records indicating leave granted to
officers and the resumption dates. Such records should be closely monitored to identify
instances where officers fail to resume duties on the stipulated dates;
(h) All officers granted vacation leave, study leave and half pay or quarter pay leave must advise
the human resource section in writing through their section head of their resumption of
duties;
(i) section heads must immediately advise the human resource section in writing where officers
fail to resume duties from leave on the stipulated dates; and
(j) where an overpayment occur as a result of non-communication , the relevant officer may be
surcharged for the amount overpaid where there is a loss to the Government .
96
(iv) HRD shall have the right to request documents at (5.15.1) (i) from travelling officers
at any time to verify their validity.
(v) Upon expiration of any of the documents at (5.15.1) (i), the travelling officer, must
submit to HRD, copies of the new documents.
(vi) Where the HRD find any of the document(s) at (5.15.1)(i) to be invalid, they must
issue a notification to the travelling officers to submit the relevant valid document
within thirty (30) working days from the date of the notification. Documents become
invalid when the grace period, if any, allowed by the relevant law has expired.
(vii) If the valid document(s) requested through notification at (5.15.1)(vi) is/are not
received within the stipulated period, the HRD must notify the Accounts Branch for
the travelling officer to be paid at the rate of the applicable transport allowance
payable to persons who do not own or in possession of a motor vehicle.
(viii) The notification at (5.15.1) (vii) shall take effect from the month following the date
when the valid documents requested are to be submitted. For example, if the expiry
date for the submission of the valid document is July 25, 2016, and this is not done,
the travelling allowance for August 2016 and all months thereafter should be paid at
the reduced rate until the valid documents are submitted. The difference between the
travelling allowance and the reduced rate shall be recoverable only if the documents
submitted were valid during the period.
(ix) The motor vehicle registered for payment of travelling allowance and its requisite
documents must be available for inspection at any time during working hours and
within a reasonable time determined by an authorised officer of the Ministry,
Department or Agency.
(x) The authorised officer at (5.15.1) (ix) shall be the Chief Internal Auditor or his/her
designate, certifying officer or any other person authorised by the Permanent
Secretary, Chief Executive Officer or Head of Department.
(xi) Where a motor vehicle is owned jointly by a travelling officer and another person,
the travelling officer may register the motor vehicle for payment of travelling
allowance by submission of the relevant documents listed at Instruction (5.15.1) (i).
The declarations at Appendices 21 and 22 shall not be required in this circumstances.
(xii) Registration of a jointly owned motor vehicle shall be approved on the condition that
the travelling officer has free and unencumbered use of the motor vehicle for the
performance of his/her official duties and no travelling allowance is being claimed by
the joint owner of the said motor vehicle.
(xiii) Where a travelling officer received duty concession and owns another motor vehicle,
he/she must register and use the motor vehicle for which the duty concession was
granted to perform his/her official duties.
(xiv) Where a travelling officer’s registered motor vehicle is stolen, written off or is being
repaired for extended periods, he/she may seek approval from the Permanent
Secretary, Head of Department or Chief Executive Officer to use another motor
vehicle owned by him/her by registering same in accordance with (5.15.1) (i) above.
(xv) Where a travelling officer acquired a motor vehicle through a finance lease or hire
purchase and the ownership of the vehicle is vested in the lessor but will be transferred to
the officer on the repayment of the loan, such motor vehicle shall be permitted to be
registered for the purposes of obtaining motor vehicle travelling allowance.
97
(xvi) In order for the HRD to do a proper evaluation of (5.15.1) (xiv), the lease/hire purchase
agreement must be submitted along with the documents at (5.15.1)(i). On completion of
the lease arrangement, the travelling officer must submit the relevant documents showing
that ownership has been transferred to him/her.
98
5.15.3 Travelling Claims
(i) Travelling officers in possession of a motor vehicle, which is used to perform official
duties, must submit travelling claims for each month as stipulated by Staff Order
(11.4.1).The claim shall be done using Form P6 – Transport Allowance Voucher. (See
Appendix 25).
(ii) Travelling allowance and mileage are reimbursable expenses to be paid based on the
relevant claim submitted to the Accounts Branch by the date stipulated by the
Permanent Secretary, Head of Department or Chief Executive Officer.
(iii) A travelling claim submitted for a period in excess of three (3) months for payment,
requires the prior approval of the Permanent Secretary, Head of Department or Chief
Executive Officer following recommendation by the HRD as to its validity and the
provision of an acceptable reason for its delay in submission.
(iv) Every travelling claim must be checked, and signed by an appropriate senior officer
certifying that :
(a) the officer is in possession of a motor vehicle registered for official travel;
(b) the motor vehicle was driven by the officer in the performance of his/her official
duties; and
(c) the trips for which the officer is claiming mileage were done for official duties
and the mileage claimed is accurate.
(v) A certifying officer shall be held liable along with the travelling officer for any claim
paid where it is found that the travelling officer was ineligible for the full allowance for
the period of the claim, or where the mileage paid was inaccurate or the trips were not
made.
(vi) Travelling officers shall be eligible to make a claim for chauffeur’s allowance at the
prescribed rate where the officer is: -
(a) unable to drive due to a disability; or
(b) unable to drive due to medical reasons.
(vii) Permanent Secretary, Head of Department or Chief Executive Officer must grant prior
approval for the engagement of a chauffeur by a travelling officer.
(viii) The request for approval for payment of a chauffeur’s allowance must be submitted to
HRD and be supported by a medical certificate attesting to the disability or medical
condition of the travelling officer.
(ix) The chauffeur’s allowance shall be paid to the travelling officer at the applicable rate in
addition to the relevant travelling allowance, mileage and toll charges.
(x) Claims for payment of a chauffeur’s allowance must be supported by a certificat e that a
paid chauffeur was employed for the period in respect of which the claim was made (see
Appendix 23 - Chauffeur’s Certificate Form).
(xi) Chauffeur’s allowance must be discontinued or not paid where the travelling officer:
(a) no longer has a medical condition preventing him/her from driving;
(b) for whatever reason is relegated to payment of travelling at the reduced rate
payable to travelling officer without a motor vehicle.
(c) embarks on vacation or any other leave of absence from work.
(xii) Travelling officers who are not using their motor vehicles or motor vehicles referenced in
Instruction (5.15.1) to perform their official duties, shall be paid travelling allowance at the
99
applicable transport allowance payable to travelling officers who do not own a motor
vehicle.
(xiii) Where travelling allowance is to be paid for a portion of a month the calculation shall be
based on calendar year as shown below:
(xiv) Claim for mileage in respect of travelling must be based on the most appropriate and
direct route. Where an officer is unable to use the most appropriate and direct route a
written reason must accompany or be placed on the claim form. Mileage in respect of
circuitous journeys must not be accepted for payment unless satisfactory reasons are
provided.
(xv) Where an officer is required to travel to perform official duties, the claim for mileage
must be from the point of departure being residence or the official place of work,
whichever is nearest to the destination.
(xvi) Travelling Officers should be paid mileage from his base of employment as defined by
the relevant accountable officer of the MDA.
100
additional period not exceeding sixty (60) working days in total, providing the officer is
not being paid an alternative travelling allowance in accordance with Staff Order 11.3.7.
(iii) Where a travelling officer motor vehicle was engaged in a major accident and a decision
is to be made by the insurers whether the vehicle is to be written off, the officer shall be
paid full travelling for a period not exceeding sixty (60) working days from the date of
the accident. At the end of this period the officer shall be paid travelling at the reduced
rate paid to persons who do not own a motor vehicle unless:-
(a) his/her vehicle has been repaired and put back in use; or
(b) the officer has registered another vehicle to perform his official duties in
accordance with (5.15.1).
101
5.16.3 T-Card (Toll Card)
(i) Toll accounts may be opened and T-cards obtained in respect of any emergency, official or
fleet vehicles that will require regular journeys on toll roads.
(ii) Permanent Secretaries, Chief Executive Officers and Heads of Departments must authorize
the operation of toll accounts.
(iii) The Transport Manager must keep a register of all T-Cards obtained (see Appendix 36).
The account number that is printed on the card must be entered in the Register.
(iv) The Transport Manager must obtain a monthly statement from each toll operator for each T-
Card and use this to prepare a monthly reconciliation with the motor vehicle’s Daily
Assignment Record of the T-Card usage.
(v) Where the T-card is used for any unauthorized journey, the charge(s) must be recovered
from the responsible driver.
102
6 PUBLIC INVESTMENT MANAGEMENT
I. Constitution of Jamaica
None
II. Financial Administration and Audit (FAA) Act, 1959 as amended 2015
None
IV. Fiscal Responsibility Framework Regulations (FRFRs) 2012, as amended 2015
Regulation 2:
(1) A public entity within the specified public sector shall not enter into a commitment to
undertake a public investment project without the written approval of the Cabinet.
(2) A public entity within the specified public sector that proposes a project for inclusion in
the Public Sector Investment Programme (hereinafter called the “PSIP”) shall submit the
proposal to the Public Investment Secretariat (hereinafter called the “Secretariat”) for
assessment and appraisal.
(3) Upon receipt of the proposal, the Secretariat shall conduct an assessment and appraisal
of the project to determine whether the project is –
(a) consistent with the strategic objectives of the Government;
(b) technically, financially, economically and environmentally feasible; and
(c) satisfies the criteria set out in the Fourth Schedule of the Act.
(4) After assessing and appraising the project in accordance with subsection (3), the
Secretariat shall submit a report thereon to the Public Investment Management
Committee (hereinafter called the “PIMC”) within the time specified in Financial
Instructions issued by the Financial Secretary under section 51 of the Act.
(5) Upon receipt of the report on the project submitted under paragraph (3), the PIMC shall:
(a) review the report; and
103
(b) submit a recommendation to the Cabinet in respect of the project within the
time specified in Financial Instructions issued by the Financial Secretary
under section 51 of the Act.
(6) A public entity within the specified public sector that is desirous of undertaking a public
investment project shall forward such details on the project as may be prescribed or
required by the Cabinet and the recommendation of the PIMC under paragraph (5)(b) to
the Cabinet for approval.”.
6.3 Definitions
The following definitions are the current interpretations that are critical to the understanding of
the Public Investment Management System and its purpose and coverage, with respect to the
public sector.
“Public Investment” Any non-recurrent expenditure on goods, works and services carried out
by any public entity within the specified public sector on its own, or by one or more such public
entities through Public-Private Partnerships, and which is aimed at accumulating new physical or
intangible assets or enhancing human resource capacities, or improving or rehabilitating existing
physical or intangible assets or human resource capacities, to achieve development objectives.
“Public Investment Management Committee” This committee, the membership of which shall
be appointed by the Cabinet, shall have responsibility for:
o the screening of all investment proposals for feasibility and consistency with
government's strategic objectives;
o reviewing all projects for technical, financial, economic and environmental
feasibility;
o prioritizing projects for financing and recommending to Cabinet their inclusion in
the PSIP; and
o reviewing project performance, monitoring risks to the achievement of objectives
and continued relevance to government's policy priorities.
“Public Investment Management Secretariat” The Unit that shall undertake the assessment of
project proposals presented for screening and appraisal, and provide technical support and advice
to the PIMC to facilitate its decision making.
“Public Investment Management System” The Fourth Schedule of the FAA Act defines the
PIMS as the common framework for the preparation, appraisal, approval and management of all
104
public investments in Jamaica, irrespective of the source of funding or procurement and
implementation modalities.
“Specified Public Sector” The public sector not including any public body certified by the
Auditor-General, in the manner specified in regulations made under section 50(1), as primarily
carrying out functions that are of a commercial nature that satisfy such criteria as may be
specified in such regulations.
105
(ii) Each submission receives an entry number that is then used to record the project. If the
project is deferred or rejected and is re-submitted at a later point in time, that entry is
there for cross-referencing.
(iii) There is a standard template known as a Project Concept Summary (PCS) on which all
proposals should be presented that sets out the basics or minimum requirements needed
for the PIMSEC to make an assessment, at the point of entry. That is to say no Ministry,
Department or Agency (MDA) should be in receipt of a grant/loan without a proposal
being submitted to the PIMSEC using a PCS.
(iv) The PIMSEC will evaluate each proposal independently and confirm the requisite
funding source: Central Government, Public Body within the specified public sector,
International Development Partner (IDP) or a Public Private Partnership (PPP), or a
combination of these sources.
(v) The PIMSEC will make its recommendations to the PIMC using the Project Concept
Evaluation (PCE) form.
(vi) For PPP projects, only after a proposal has been reviewed by the PIMC and a
recommendation made to consider the proposal as a potential PPP can the proposal then
be forwarded to the Development Bank of Jamaica (DBJ)/Ministry of Finance (MoF)
PPP Units, for a screening of the project using the PPP criteria.
(vii) PPP proposals must not enter the PIMS through the DBJ or the MoF. All proposals must
be submitted to, or referred to, the PIMSEC, by the respective MDA for appraisal and
pre-selection. It is this appraisal that results in a determination as to whether or not the
project should be treated as a traditional procurement or a PPP.
6.4.3 Full Disclosure on all Expenditure Related to the Public Investment Project
(i) All public investment proposals/projects must, as a precondition of appraisal by the
PIMSEC, represent both the associated capital and recurrent costs, during the project’s
(or programme’s) life as well as after completion. This is to ensure that the PIMC and the
Cabinet can make decisions for planned expenditures based on full information.
(ii) A project proposal cannot indicate that it has no indicative recurrent cost and then, after
approval for inclusion in the PSIP, the proponents seek to introduce additional costs into
the budget.
(iii) Such an occurrence has fiscal implications and would result in the PIMC deliberating to
make a recommendation to Cabinet on whether or not to rescind the approval and remove
the project from the PSIP.
(iv) Full disclosure starts with the Corporate Plan. To ensure proper planning and budget
alignment, all public investment projects should be reflected in the MDA’s Corporate
Plan.
106
6.4.4 An Established Process for Inclusion in the PSIP
(i) An MDA must complete a PCS for a new project which includes all the information
required in the PCS (minimum content requirements), including an options analysis as to
funding modality.
(ii) An MDA must first send its PCS to the PIMSEC for an initial appraisal to determine if
the concept should be developed into a full project proposal.
(iii) Once the PIMC gives approval for further development, including
(a) pre-feasibility studies;
(b) feasibility studies; or
(c) preparation of Business Case for PPPs; and
(d) completion of all technical analysis, the project is then returned to the PIMSEC and
the PIMC for final determination as to whether or not inclusion in the PSIP is
merited.
(iv) Unsolicited proposals (USPs) can only enter the PSIP from the entry point of the
PIMSEC and have to be introduced as unsolicited Expressions of Interest (UEoI), using
the PCS template.
(v) Approval to develop full project proposals does not mean that there will be endorsement
for inclusion in the PSIP. Each stage undergoes an appraisal/evaluation.
(vi) A determination of the source of funding for a project is an important element of the
development of the full project proposal. This determination is made by:
(a) Public Expenditure Division at the MOF in the event of a Government funded (or
Capital A) project;
(b) Public Enterprises Division at the MOF in the event of a public body funded project;
and
(c) Economic Management Division in the event of an externally funded project.
(vii) Unfunded projects will not be included in the PSIP.
107
6.4.6 Responsibility of MDAs to Provide Timely and Credible Information
(i) In order for the PIMS to function effectively and deliver value for money in public
investment, there is need for timely and credible information to allow for various public
entities, including the PIOJ and the MOF, to evaluate performance and take corrective
action.
(ii) Information is needed to update the Cabinet, the Parliament and the people of Jamaica on
how public investment is delivering on outcomes that were promised to the country.
(iii)Lack of information undermines the process of full disclosure on public investment
performance. Where projects do not provide timely information, it may hinder their
continuation in the PSIP.
(iv) The Public Investment Management Information System (PIMIS) which is being
established requires regular reporting from MDAs on projects. Project managers will
enter information almost weekly.
(v) In addition to the PIMIS, project managers are required to enter information monthly on
the physical stage/ state of activities to support warrant requests and verify expenditures.
108
7 ASSETS AND LIABILITY MANAGEMENT
I. Constitution of Jamaica
II. Finance Administration and Audit (FAA) Act, 1959 as amended 2015
"Public debt"means all financial liabilities created as a result of borrowing or guarantees by the
Government and includes Government Securities.
Section 9: Loans
(1) The authority to raise 'loans for or on behalf of the Power of Minister to Government
vests solely in the Minister.
(2) The Minister may, from time to time in accordance with this Act and for the purposes set
109
out in Section 10, raise loans in the name, and for or on behalf, of the Government,
whether inside or outside of Jamaica, in Jamaican currency or foreign currency.
(3) The Minister may, with the consent of the lender making a loan referred to in subsection
(2), where such consent is contractually required, and upon such terms and conditions as
the Minister may determine.
III. Financial Management Regulations (FMR) 2011, as amended 2015
Handing Over
Regulations 130 to 132: covers the process of handing over public property.
Sale of Government Property
Regulations 133 – Financial Secretary’s authority for sale of government property.
Regulation 134: Where the assets of a public body that receives fifty per cent or more of its
funds from the Consolidated Fund are disposed of, the net proceeds of sale shall be paid into
the Consolidated Fund unless approval is granted by the Financial Secretary for retention of the
funds or any portions thereof.
Regulation 135: A public body that is self-financed or received less than fifty per cent or more
of its funds from the Consolidated Fund whose assets are disposed of, may retain the net
proceeds of the sale.
Insurance
Regulation 141: Where a public property that was lost damaged or stolen, collect from
insurance claims, a sum of money towards the loss, this amount shall be paid over to the
Consolidated Fund unless approval is given by the Financial Secretary for the amount to be
used to set-off replacement of the property.
110
7.3 Asset Management
111
7.3.4 Physical Verification
(i) Physical verification of all assets shall be conducted at least once in a financial year
by an officer assigned by the Accounting Officer. The officer assigned to conduct the
verification must not be the officer responsible for maintaining the records.
(ii) The findings of the assigned officer must be reported to the Accounting Officer and
where discrepancies are found a report must be submitted to the Financial Secretary
and the Auditor-General.
112
7.3.8 Security of Accounting Machinery, Equipment and Records
(i) Equipment such as cheque signing machines, franking machines, and other valuable
items must be properly secured.
(ii) The Principal Finance Officer or Head of Accounts Department shall be directly
responsible for safeguarding all accounting records, computers and other machines
used in the accounting system from natural disaster as well as from theft, burglary,
vandalism, arson etc.
113
7.4 Accidents Involving Government-Owned Motor Vehicles
114
(iii)personally examine the vehicle and record all damages done to it (i.e. engine; body
and all other parts of the vehicle);
(iv) obtain an estimate from an approved garage of the cost to effect repairs; and
(v) obtain an Assessors’ report from an approved Motor Vehicle Assessment provider.
115
promptly for a settlement to be made at the earliest possible time. An opinion from the
Attorney General regarding culpability is not necessary for vehicles that are insured.
(ii) Where the driver of the Government owned vehicle was not at fault and a claim is
likely to be made against the other party to the accident and/or his insurer, the insurer
should be notified in writing before the repairs are effected.
(iii) Where the insurers have provided settlement for the Claim, the amount received must
be:
(a) used to effect repairs to the vehicle if the vehicle has not yet been repaired;
(b) used to reimburse the MDA for the amount spent on repairs to the vehicle if the
repairs were paid for in the current financial year;
(c) lodged to Miscellaneous Revenue, if the repairs to the vehicle were done in a
previous financial year in case of Ministries and Departments.
(iv) Where the settlement received from the insurers is in respect of Government vehicles
that have been written off, approval must be sought from the Financial Secretary to
utilize the funds to assist in the procuring of a replacement vehicle. This shall be
subject to the availability of funds.
116
(iii) In submitting requests for approval to hire, full particulars of the reasons for the hiring
shall be given and the contract period indicated.
(iv) Each case of hiring shall be considered by the Financial Secretary on its own merit.
117
(b) loss due to theft or burglary
(c) loss arising from shortage or deficiency
(d) unrecoverable Overpayment
(e) loss of revenue
(f) damage to Government property or private property in the lawful custody of
Government
(g) other loss approved by the Financial Secretary
118
(b) the circumstance(s) which led to the loss;
(c) documentary evidence of the efforts made to prevent or recover the loss including
legal action(s), if any;
(d) the name and address of the debtor/advance (if applicable);
(e) the value of the loss;
(f) recommendation for write-off of the loss;
(g) the step(s) taken or proposal to prevent similar loss in the future
(h) a report from the Chief Audit Executive on the following:-
(i) weaknesses in the system of internal control including recommendations for
improvement; and
(ii) support or objection to the recommendations being made for write-off of the
loss.
(i) where the loss is due to fraud theft burglary or any other criminal offence
Accounting Officers shall not authorise its write-off unless he/she has received:
(j) the police report on the matter; and
(k) a report from the Chief Audit Executive identifying the weaknesses in the system
of internal controls including recommendations for improvement and whether
such recommendations have actually been implemented.
(iii) Where the loss is due to negligence of public officers or his or her failure to adhere to
regulations, instructions and guidelines, the Accounting Officer shall not authorised
its write-off unless he/she has submitted a report to the Financial Secretary and the
Auditor-General with surcharge recommendation for the recovery of the full loss or
portion thereof.
(iv) The value of a loss to be written off shall be determined by the acquisition cost of the
asset at the time of acquisition, its fair value or the market value whichever is less.
(v) The Accounting Officers should only consider writing off of loss after careful
evaluation of the circumstances that led to the loss and he/she is satisfied that
reasonable actions were taken to effect recovery and there is no other feasible
recourse but to write-off the loss.
(vi) Accounting Officers must ensure that all items written-off are properly documented
and that the records are maintained in accordance with the Document Retention
Schedule (See Appendix 14).
(vii) Accounting Officers must ensure that before any write-off is done the value of the
asset to be written off is established and verified by the Internal Auditor.
(viii) The Accounting Officers must ensure that the following are satisfied before a decision
is taken to approve the write-off of loss:
(a) sufficient efforts have been made to recover the loss in the case where such loss is
recoverable;
(b) the effort to recover the loss has been unsuccessful or is not cost effective to be
pursued; and
(c) there is no alternative but to have the loss written-off and proper measures are
instituted to mitigate or prevent the loss from reoccurring.
(ix) The accounting records are to be adjusted to clearly reflect the write-off of the asset.
119
(x) Accounting Officers must submit to the Financial Secretary and the Auditor-General
quarterly reports, setting out the particulars in respect of all losses written off for the
financial year as at the end of the quarter. The report must be submitted within
fourteenth working day of the month succeeding the quarter for which the report is to
be done.( See Appendix 33 for format of report)
120
(v) For Ministries and Departments, if recovery is made in a subsequent financial year,
the sums recovered must be paid over to the Accountant General for Miscellaneous
Revenue Bank Account.
(vi) Agencies which use the accrual accounting method may make provision for bad debt
once it has been established that the debt is likely to be uncollectible.
(vii) The provision for bad debt should be a reasonable estimate of the value of debt which
is not likely to be collected. If the agency is absolutely sure that the debt is
irrecoverable then the debt shall be written off subject to the approval levels at
Appendix 12.
121
(iii) Computer Loans shall be disbursed and managed by the AGD.
122
(ii) Departmental Advances may arise also from overpayments or other loss to
Government for which recovery must be made from the culpable officer(s).
7.9.2 Expenditure Definition
(i) Expenditures shall be payments made for goods and services bought from warrant
funds whether such goods and services have been actually received.
(ii) All amounts spent from warrant funds, Appropriations-in-aid funds, cash advances
received from MOF Contingencies Provision or any other approved cash advances
received shall be deemed to be expenditure .This shall include payments made for
goods and services not provided for in the Estimates of Expenditure but approved
by Ministry of Finance pending Parliamentary approval,
(iii) Ministry of Finance advances from Contingencies Provision shall not be treated in
the books of the Ministry of Finance as Expenditure or Departmental Advances. It
shall be reflected as an independent general ledger account.
EXPENDITURE
GL 8001
123
Type Description
01 Personal Advance
02 Imprest Advance
03 Advance to Other Ministries and Departments
04 Advance to Other Government Agencies/Public Bodies
09 Other Advances
(ii) The amounts posted under advance types at (01-09) shall be charged as an
expenditure payment but posted automatically to an advance subsidiary ledger under
Expenditure. This sub-ledger shall be used by the system to generate FS 11 - list of
Departmental Advances and FS10 – Departmental Advance Summary.
(iii) Amounts posted using Advance Type code “00” shall not be recorded in the
Advance Subsidiary Ledger but shall be recognised as a “non-advance” expenditure.
DEBIT CREDIT
Expenditure Control Account GL#8001 Expenditure Control Account
Advance Type -00 GL#8001
Advance Type 01-09
Advancee
(iii) The clearance of Departmental Advances as shown at (ii) shall have no effect on the
overall expenditure balance. It shall be a mere credit in the Expenditure - Advance
sub-ledger to the relevant account and a debit to the non-advance expenditure.
(iv) The following are the steps in the clearance of Departmental Advances:
(a) check thoroughly bills, receipts, statements, etc. submitted for clearance of
advances ensuring that they are all authentic, valid and correct and that the
advance was used solely for the purpose(s) for which it was given.
(b) prepare the appropriate journal voucher for the clearance of the advance
ensuring that the correct codes are debited and credited. The advance codes to be
credited must be the identical codes used when the advance was made.
(c) post the journal voucher using the Journal Processor.
124
(d) the balance on the advance after clearance by journal must be paid over to the
cashier by the Advancee.
(e) a personal advance shall not be issued to an officer if they have an outstanding
advance except in extenuating circumstances where approval is granted by the
Accounting Officer or Head of Department.
(ii) The amount received at (i) must be lodged to Accountant General for Miscellaneous
Revenue for transfer by the AGD to the Central Payment Account (CPA).
(iii) Departmental Advance recovered in respect of advances that were made in a previous
financial year must be received as a Miscellaneous Revenue receipt and lodged to
Accountant General for Miscellaneous Revenue as per Instruction 7.9.
(i) Departmental Advances (i.e. GLs 3050 & 3053) rolled over shall not affect any General
Ledger account balance of the current financial year. They shall exist as “shadow sub-
ledger” under the Expenditure Control Account.
(ii) Prior year Departmental Advances represent public funds which the relevant accountable
officers must clear as quickly as possible from the MDA’s books. The clearance shall be
done in the manner prescribed at Instruction 7.9.
125
(iii) Departmental Advances that are on the books for more than two (2) years arising from the
fact that bills, invoices, etc. required for clearing the advance cannot be found, may be
cleared upon a written and signed declaration by an appropriate officer stating that the
goods and services were properly received in accordance with Instruction 7.9.
DEBIT CREDIT
Expenditure Control Account GL#8001 Expenditure Control Account GL#8001
Advance Type 01-09 Advance Type -00
Advancee
(ii) The responsibility for clearance of the Departmental Advances of a closed MDA shall
be that of the Ministry that assumed majority of the responsibilities of the closed MDA
unless the Financial Secretary has assigned such responsibility to another Ministry.
(iii) Persons that are directly accountable for outstanding advances of a closed MDA (i.e.
Advancees) shall remain accountable for such advances notwithstanding their
reassignment to another MDA,
126
(a)
death or bankruptcy of the Advancee;
(b)
the Advancee or his/her agent cannot be located;
(c)
the organisation or entity accountable for the advance is defunct;
(d)
exhaustive efforts have been made to clear the advance which has proven futile
and documentary evidence exists to show the efforts made.
(e) the Advancee is another Government entity and is on books for more than two (2)
financial years due to inadequate funds of the Advancee to repay the advance or
balance thereof or for any other valid reason.
(f) the advance amount is immaterial and not cost effective to expend any further
effort to recover/clear same. e.g. Under $1,000
(ii) Departmental Advances with credit balances that satisfy the conditions at (i) may be
set off against the advances with debit balances to derive a net write off.
(iii) Where the net write off is a credit balance this shall represent a physical transfer of
funds by the entity to be made to the Accountant General for Miscellaneous Revenue
Bank Account.
(iv) The following are the thresholds regarding the authority for write off of advances:
127
7.11 Contingencies Fund Advance
(i) The Minister may authorise advances from the Contingencies Fund to a MDA where
it has inadequate funds or where no funds were provided in the Estimates of
Expenditure necessary to address a matter of vital importance.
(ii) The Accountant General on advice by the MOF of the approval of a Contingencies
Fund advance shall transfer the relevant funds from the Contingencies Fund Bank
Account to the CPA and accordingly advise the relevant MDA
(vii) Advances from the Contingencies Fund shall be recovered through funds made
available from the earliest Supplementary Estimates following the date of the
advance.
(viii) In the event where a Contingencies Fund advance was not cleared in the financial year
it wasissued, it must be carried forward by the MDA to the next financial year.
(ix) Advance from the Contingencies Fund made to a head that has been closed cannot be
transferred to and/or cleared from another head unless the Estimates of Expenditure
provides that head with the relevant funds for the purposes of clearing the advance.
Such a provision shall be a normal expenditure item in the Estimates of Expenditure
albeit for payment to the Contingencies Fund.
(x) Where a payment is to be made by an Head to clear a Contingencies Fund advance
that was previously made to another head, the payment shall be booked as an
expenditure payment and not as a Contingencies Fund advance clearance as this
advance was not in the ‘paying” MDA’s books.
128
7.13 Overseas Travel Advance
(i) In cases where protocol demands that ministers or public officials host receptions, or
requires that they engage in other forms of entertainment, application for the required
foreign exchange must be submitted with the relevant particulars to the Permanent
Secretary for approval.
(ii) If the required foreign exchange cannot be accurately determined, the amount
requested must be treated in the accounts as an advance. In the cases of public
officials, such receptions and entertainment are restricted to heads of delegations only.
(iii) The amount advanced is to be accounted for in each case within seven (7) days of the
return of the official to Jamaica by the submission of actual bills to the Principal
Finance Officer or the appropriate Financial Manager.
(iv) Where the full amount of an advance was not utilized or is not properly accounted for,
the official must refund the unaccounted balance.
(v) Advances for contingencies re official visits abroad shall be approved by the
Accounting Officer.
(vi) The Accounting Officer or Head of Department shall be authorized to recover travel
advance forthwith from the officer’s salary, or by such monthly deductions, if the
officer fails to account for same, one month after his/her return to base.
129
130
8 ACCOUNTINGAND REPORTING
I. Constitution of Jamaica
None.
II. Financial Administration and Audit (FAA) Act, 1959 as amended 2015
131
and standards prescribed by the Financial Secretary).
Regulation 5: A cash book or ledger account shall be maintained for each Consolidated
FundBank Account and shall be reconciled at least once per month.
132
8.2 Financial Instructions
(i) The Financial Instructions is the full and complete updated Financial Instructions
regarding the above Law and Regulations as at the date of publication. All previous
Instructions, Circulars as listed at the end of the document and or any other
publication is considered incorporated and revoked to the extent that the matter is
covered in this document.
(a) Double Entry Concept the accounts are prepared on double entry bookkeeping
system. This means that a financial transaction gives rise to two equal and
opposite book entries – one debit and the other credit;
(b) Going Concern Concept:the accounts are prepared on a going concern basis,
which means that government is believed to exist in perpetuity. Because of the
going concern basis, the accounts are maintained on a historical cost basis;
(c) Prudence Concept: this concept requires full recognition of an entity’s obligations
as long as they can be measured – subject to the overriding basis of accounting
explained in the next Section. On the other hand, revenue is recognised only if
realisation is certain. For this reason, for example, tax revenues are recognised on
cash basis and not when a tax assessment is agreed;
(d) Matching Concept: in the commercial environment, this concept largely revolves
around matching expenditure with the related revenue. However, in the context of
government accounting where “service” to the population is the primary mission,
coupled with the cash basis of accounting, this concept revolves around matching
the actual financial transactions with the occurrence of the underlying government
programmes/activities, as well as the related budget allocations;
(e) Consistency Concept: this concept requires consistent treatment of like items and
from period to period. For example, if an item was treated as capital expenditure
in one period, a similar item in another period should be treated likewise; and
133
(f) Substance Over Form: this concept requires that transactions are recognised with
due regard to their substance rather than their form. For example, although items
of office equipment such as paper trays are technically capital expenditure items
(form), the financial substance involved renders those items to be recognised as
revenue expenditure. Similarly, although technically recurrent expenditure,
workers’ wages on a specific project such as construction of a building are
recognised as capital expenditure.
134
8.6 Government Accounting Structure
(i) Accounting for financial transactions in the public sector consists of the following
methods:
(a) The Expenditure and Fund Accounting Method - operated by Accounting Officer to
account for:
(i) Expenditure from voted, statutory and appropriations-in-aid funds;
(ii) Miscellaneous revenue collections; and
(iii) Deposits and other funds.
(b) Revenue Accounting Method -operated by Principal Receivers of Revenue to account
for:
(i) Tax and non-tax revenues collected and remitted to the Consolidated Fund;
(ii) Revenue refunds, drawbacks etc.;
(iii)Revenue Deposits.
(c) Accrual Accounting Method -, operated by executive agencies and other public bodies
to account for the income and expenditure of the entity for the period; andits assets
and liabilities.
135
(iv) If the discrepancy indicates a surplus of cash the surplus should be immediately
credited to a departmental deposit account pending the result of investigations as to
the cause of the surplus. If the surplus cannot be satisfactorily explained and adjusted
after investigation, the amount on deposit should be paid to the Accountant General
for Miscellaneous Revenue Bank Account..
(v) Where there is a deficiency of cash, the imprest holder shall be held personally
responsible for the shortfall.
shall consist of the following control accounts and any other account approved by the
Accountant General:
136
GL# Account Name Purpose of Account
Miscellaneous Revenue
6004 Accumulated Fund Equity
7001 Warrant Issue Warrant Issued to date
7002 Appropriations-in-aid (AIA) AIA collected to date
8001 Expenditure Control Total Expenditure to date
8002 Surrender to Consolidated Fund Amount paid over to Consolidated Fund
(ii) Subsidiary ledgers shall be maintained for Vote Account, Warrant Balance, Warrant
Issue, Appropriations-in-aid, and any other General Ledger control account where
necessary.
(ii) Subsidiary ledgers shall be maintained for the Departmental Deposits Control
account.
(ii) Subsidiary ledgers shall be maintained for the Dept’l and Other Miscellaneous
revenue Control account.
137
Account Name Purpose
Revenue Estimate Control A/C For recording the budgetary revenue
estimates or proportion thereof for
each revenue item
Revenue Refund Imprest bank Account This represents the Revenue Refund
Imprest Bank Account Cash Book
Lodgement to Consolidated Fund A/C For recording the revenue paid over to
Consolidated Fund
(ii) Subsidiary ledgers shall be maintained for the Revenue Estimate Control A/C, Revenue
Collections Control A/C, Revenue Deposits Control A/C, Collecting Officers Liability Control A/C, Revenue
Payable to Statutory and Other Funds Control Account, Taxpayer Control Account.
138
(a) Cost of acquisition;
(b) Date of acquisition;
(c) Asset identification details such as
Asset description;
Serial number,
Ministry, Department identification number;
(d) The quantities and location of the assets,
(e) Estimated useful lives and estimated time for replacement,
(f) Details about change of location,
(g) Details of repairs, upgrades and enhancements
(ii) Each MDA shall place fixed assets under the following categories:
(i) Land and Building;
(ii) Plant and Machinery;
(iii) Fixtures and Fittings;
(iv) Office Furniture;
(v) Motor Vehicles:
o Fleet Vehicles;
o Assigned Vehicles;
(vi) Computer
o Hardware
o Software
(vii) Other Office Equipment:
(viii) Other Fixed Assets.
139
(iv) On each occasion of the recoupment of expenditure from the imprest or the handing
over of the imprest to another officer, the Cash Book must be balanced and the
unexpended balance and vouchers, if any should be reconciled with the amount of the
original imprest.
(v) A senior officer must check and certify to ensure that the cash balance agrees with the
amount shown in the cash book. The Officer taking over the duties of the outgoing
officer shall thereafter responsible be accountable for the imprest.
140
8.11 Revenue Accounts
141
(iv) The accounts for the Statutory Heads shall be separated and prepared by use of the
relevant financial pattern code as per the uniformed chart of accounts.
(v) MDAs shall not be required to prepare annual Appropriation Accounts in respect of
statutory heads.
142
8.14.2 Budget & Warrant for Externally Funded Projects
(i) The budget of externally funded projects for each financial year shall consist of
expenditure to be financed by :
(a) The Government of Jamaica from the Consolidated Fund and
(b) Loans and grants from multilateral and bilateral organizations.
(ii) Warrants for externally funded project shall be for:
(a) The Government of Jamaica funded portion of the project -
Based on the project’s operational plan and cash flow requirement.
(b) The Externally financed portion of the project -
Based on payments made from loan/grant funs disbursements required to be paid
to the Consolidated Fund.
143
(a) loan/grant disbursed to special/dedicated bank account; and
(b) Payments made from the special/dedicated bank account.
(iv) The balance in the Special/Dedicated Project Bank account on the FinMan System as
at the end of each month must correspond with the physical bank balance on the
account based on applicable exchange rate at the end of the month.
144
Surrender to Consolidated Fund Account Debit
Warrant Balance Account Credit
145
8.16.2 Destruction Schedule
(i) In keeping with the approval of the Archives Advisory Committee, the minimum
period prescribed for the preservation of accounting and related records shall be as
outlined in Appendix 14.
(ii) The number of years shall be counted from the date of the record of the last
transaction entered.
146
accounting rules or principles must be subject to prior approval of the
Financial Secretary.
d. Understandable: the information provided by the Government’s General
Purpose Financial Statements must be capable of being understood by the
diversity of users with interest and reasonable knowledge of the affairs of
the public sector and its economic activities. Thus, the financial statements
should be able to be linked with the underlying government programmes
and activities. One of the ways to achieve this objective is to ensure
consistence between the financial statements and the corresponding
approved national budget not only in format but also in content.
e. Materiality: due regard should be given to materiality in deciding the
information to be contained in the Government’s financial statements. An
item of information is material if its misstatement or omission might
reasonably be expected to influence the economic decisions of users of
those financial statements. Whether the information is material will depend
on the size and nature of the item in question judged in the particular
circumstances of the case. The following factors should be taken into
account in deciding whether an item of information is material:
(i) The item's size is judged in the context of the financial statements as a
whole as well as other information available to users, which would affect
their evaluation of those financial statements.
(ii) Consideration must be given to the legality, sensitivity, normality, and
potential consequences of the item, the identity of the parties involved,
and the particular disclosures in the financial statements.
147
(iii) The accounts shall be prepared using the cash basis accounting methodology unless
otherwise approved by the Financial Secretary to produce accounts on an accrual
basis.
(iv) The accounts must be supported by notes where necessary to ensure correct
interpretation of the information being presented.
(v) The accounts for each quarter must be on a year to date basis.
(vi) The accounts for all months in respect of each quarter must be closed before the
financial statements are submitted.
(vii) The words “Period Closed” must be stated on each statement submitted
MFR 1 Trial Balance FP11, 12, 21, 22, 31, 32, 45, 90
MFR 2 Receipt and Payment Statement FP11, 12, 21, 22, 31, 32, 45, 90
MFR 3 Bank Reconciliation Statement FP11, 12, 21, 22, 31, 32, 45, 90
MFR 4 Statement of Bank Balance FP11, 12, 21, 22, 31, 32, 45
Statement of Expenditure by FP11, 12, 21, 22, 31, 32
MFR 5
Activities
Statement of Expenditure by FP11, 12, 21, 22, 31, 32
MFR 6
Objects
MFR10 Summary of Advances FP11, 12, 21, 22, 31, 32
MFR11 List of Advances FP11, 12, 21, 22, 31, 32
MFR14 List of Deposits FP45
Statement of Miscellaneous FP90
MFR16
Revenue
Statement of Appropriations-in- FP11, 12, 21, 22, 31, 32
MFR17
aid
No. Statement
QFR1 Financial Management Status Report
QFR 2 Report on Loss/Damage and Overpayment
QFR 3 Statement of Investments
QFR 4 Internal Audit Report
QFR 5 Operational Plan Monitoring Report
148
8.17.6 MDAs’ Annual Financial Statements
(i) Annual financial statements in respect of MDAs shall consist of the following:
AFR 3 Appropriation Account by Activities and Objects & Explanation of FAA Act Section 24I(1)
Major Variation
AFR 8 Fund Receipts and Payment Statement FAA Act Section 24(I)( c)
(ii) The Appropriation Account and all other annual accounts must be checked and
verified by the Chief Audit Executive before submission to the Auditor-General and
the Financial Secretary.
(iii)The Appropriation Account and all other annual accounts must be prepared in
quintuplicate and signed by the Accounting Officer. The original and three copies
of the Appropriation Account must be forwarded to the Auditor-General and one
copy sent to the Financial Secretary.
(iv) The Auditor-General shall certify the Appropriation Accounts and other annual
statements.
(v) The Auditor-General shall also cause the certified Appropriation and other relevant
annual accounts to be tabled in the Houses of Parliament.
(vi) See Appendix 34 for format of statements AFS 1, AFS 2 and AFS 3.
Statement
Statement Name Frequency
Code
149
RS 4 Statement of Revenue Bank Accounts Monthly
Annual Within
four (4) months
RS 7 Statement of Net revenue Collections Compared with Revenue following the end
Estimates of the financial
year
Statement
Statement Name
Code
150
Statement E Advances and loans from the Consolidated Fund showing
transactions for the year of account and, for those
accounts in respect of which no recovery is reported
during that year, the date of the most recent recovery;
(ii) ) The Accountant General shall submit the Finance Accounts statements to the
Auditor General who shall certify them and the statements as so certified shall be
laid on the Table of the House of Representatives.
Statement
Statement
Code
151
( e) The General Purpose Financial Statement which
comprises of:
The Statement of Cash Receipts and Payments;
(i) Accounting policies and explanatory notes; and
(ii) Comparison of the budget with actual amounts.
(ii) The statements referred to in subsection (8.16.9) (i) shall be prepared in accordance
with the accounts as at the end of the relevant financial year and shall be signed by the
Accountant General.
(ii) The statement shall be based on the submission of monthly, quarterly and annual
reports submitted within the statutory deadlines.
(iii) For the purpose of ratings the quarterly and monthly reports for previous financial
years will not be measured in the current financial year as this will be captured in the
measurement of the annual reports in the monthly ratings.
(iv) The ratings score shall be based on the following penalty points system:
Appropriation and Other Annual 30 points per year for each Annual
Accounts Outstanding statement outstanding
Quarterly Statements 25 points per quarterly submission
outstanding
Monthly Statements 20 points per monthly submission
outstanding
(vi) Principal Finance Officers and other Head of Accounts Branch that presides over
MDAs that receive ”C” and “D” ratings for three (3) consecutive months shall cause
a letter be sent to their Accounting Officer or Head of Department by the Financial
Secretary requesting advice on the plan of action to be taken to address the situation.
152
(vii) Where following the letter at (vi) above the MDA’s ratings has for the next two (2)
months shows no significant improvement, the Financial Secretary shall issue a
second letter to the Accounting Officer, Head of department requesting strong action
be taken to address the matter and to be advised of same.
(viii) Possible action that may be taken by the Accounting Officer or Head of Department
against the Principal Finance Officer/ Head of Accounts Department and/or the head
of Final Accounts unit or other culpable officer(s) includes the following:
Non-Renewal of Contract
Forfeiture of Contract Gratuity
Forfeiture of Salary Increment when due
Deferment of vacation leave
Transfer
153
9 ADMINISTRATIVE MATTERS
I. Constitution of Jamaica
None.
II. Financial Administration and Audit (FAA) Act, 1959 as amended 2015
154
9.3 Guidelines for the Acceptance of Gifts
155
(b) Advise the Ministry of Financeof (a) above requesting its incorporation in the
Estimates of Expenditure or Supplementary Estimates as Appropriation-in-Aid.
(ii) Where approved donation of cash is received with no instruction for it to be used for a
specific purpose, the funds received must be lodged promptly to the Consolidated Fund.
(iii)In all cases where approved donation of cash is received, the donor must be issued an
official receipt.
(iv) Expenditure made from the donated funds, pending inclusion in the Supplementary
Estimates or Estimates of Expenditure may be spent from the Deposit Account.
(v) The balance of AIA funds held on deposits must be transferred to the recurrent, capital
head or the Central Payment Account (CPA) where appropriate.
(vi) The MDA shall record donation of money in the “other assistance grant aid” category of
the Statement of Cash Receipts and Payments (See Appendix I).
156
(a) Ascertain whether the overpayment represents an error, fraud or corruption.
Where fraud is suspected the Police must be immediately summoned. The
Auditor-General and the Financial Secretary must be advised accordingly.
(b) Ascertain the internal control weakness, if any, that led to the overpayment and
where appropriate, put measures in place to prevent recurrence.
(c) Ascertain the full amount of the overpayment and the period of time over which it
occurred.
(d) Ascertain whether the full amount of the overpayment can be recovered from the
payee and the method of recovery.
157
(iv) Where an officer resigns, retires or is dismissed, before full recovery of the amount
overpaid, any balance outstanding must be recovered in full from the officer’s final
salary payment. This include, leave pay, gratuity, pension payment and any other sum
owed to the officer.
(v) Where overpayment is discovered in respect of a public officer who has resigned,
retired or dismissed, and where all final payments have been made to the officer, the
following shall apply:
(a) Notify the former public officer in writing of the amount overpaid, clearly
providing sufficient details as to how the overpayment was derived. This shall
include appropriate references to voucher number, cheque number, invoice
number, contract clause and any other relevant information. The former public
officer must be requested to make full payment within thirty (30) days from
notification or to provide in writing the most reasonable/ appropriate period to
which the overpayment can be recovered.
(b) Follow up to ensure that the overpaid amount is recovered within the required
time frame. Where payment is not received after at least two (2) reminders, the
matter must be referred to the Attorney General or the organization’s legal officer
to pursue legal action, provided it is cost effective to do so.
158
(d) Where the payee still disputes the amount overpaid following the Auditor-General’s
review, the matter shall be referred to the Attorney General and/or the organization’s
legal officer for resolution.
(ii) The Financial Secretary must be advised on each stage of the resolution of the dispute
regarding the overpayment.
159
(i) Permanent Secretaries, Heads of Departments, and Chief Executive Officers shall
designate in writing persons authorised to generate WTCs as well as persons
authorised to sign them.
160
(ii) The Form 4F captures all the GCT withheld for a month and accordingly reflects the
total amount payable to TAJ for GCT for that month. This must be checked in details
for accuracy.
(iii) The payment of the GCT payable, based on the Form 4F shall be the responsibility of
the Principal Finance Officer/Head of Accounts Section of the MDA notwithstanding
circumstances where the actual payment is done by the Accountant General’s
Department.
(iv) MDAs must ensure that GCT returns and payment of all taxes and statutory
deductions are kept up-to-date.
161
9.8.4 Investment Approval
(i) The placement of each individual or package of investment and roll-overs requires the
following approval:
(ii) Where a Public Body does not have an approved investment policy it shall adopt the
principles of the Public Sector Investment Policy..
162
(ii) MDAs must ensure that warrant funds are available to facilitate payment under the
Letter of Credit Facility.
(iii) Request for approval to establish a letter of credit facility must be submittedto the
Accountant General within an appropriate time frame. The request must have the
following information:
(a) The Purpose of the Facility;
(b) The duration of the Facility;
(c) The Name and Address of the Supplier;
(d) The Terms and Conditions of the Supplier’s Agreement;
(e) The Letter of Credit Contract Amount;
(f) The Currency in which the facility will operate;
(g) The Name and Address of the preferred bank and justification for selection;
(h) The proposed interest rate to be paid on deposit (in writing from the bank);
(i) The proposed costs and conditions (to be included in the formal proposal from
the bank(s) outlining all costs associated with the transaction); and
(j) If a new bank account is to be opened - the Type of Account, signatories on
the account etc.
(iv) MDAs should ensure that the Letter of Credit facility when established is in
compliance with the supplier’s instructions.
(v) MDAs should advise the Accountant General of the date the Letter of Credit facility
was established and the date the final payment was made to the supplier.
(vi) Once the Letter of Credit Facility has been established, the MDA shall make the
relevant payment to the approved financial institution through the Central Treasury
Management System (CTMS).
(vii) Departments and agencies not on CTMS shall execute payments to the approved
financial institutions directly from their bank accounts.
163
9.10.3 Budgetary Provision – Fuel & Service
(i) MDAs shall make budgetary provision for each vehicle/item of equipment, as set out
below:
(a) One time registration fee;
(b) Monthly service charge; and
(c) Monthly deposit for procurement of fuel.
(iii) Officers must allow for transaction verification prior to the dispensation of fuel. This
action includes verification of:
(a) Equipment particulars; and
(b) Card account balances.
(iv) Upon verification and dispensation of fuel, officers must sign a printed receipt and
return a copy to their transport manager.
(v) Operators should ensure that the value of the fuel received, is accurately reflected on
the printed receipt prior to affixing a signature.
(vi) Under no circumstances shall container cards be –
(a) presented to retailer for products other than fuel;
(b) used in exchange for servicing;
(c) used to obtain fuel for any item of equipment other than for which it is issued;
and
(d) used to obtain cash instead of fuel.
164
(iv) In the event that a transaction is declined for insufficient balance on account,
ministries and/or departments are required to promptly contact the provider of the
advance card system to effect resolution.
165
that he/she has made in a particular period. The employee can then determine and
indicate clearly which calls were made for official purposes and those for private
purposes. In the event that the implementation of such a system is not feasible, a
record of all private calls made must be maintained showing the:
(a) Number called;
(b) Date and time of the call, and
(c) Name of the officer making the call.
166
mobile telephone is critical for the effectiveness of performance of their official
duties.
(ii) All assigned mobile phones to the public officers must be part of a Closed User Group
(CUG) plan where such a plan is feasible.
(iii) The Permanent Secretaries, Heads of Departments, Chief Executive Officers or
Chairmen of Board of Directors may determine the type of devices and services to be
assigned to the public officers.
(iv) The assignment of mobile phones and services must be determined based on the
following:
(a) It is absolutely necessary for the effective execution of his/her duties.
(b) The service is cost effective and funds are available for its use.
(v) The Accounting Officer, Chief Executive Officer or Chairmen of Board of Directors
will determine which public officer(s) should be assigned pre-paid or post-paid
mobile phones within the CUG plan. The assignment of phones shall be determined
solely on the basis of the nature of the service required and job functions.
(vi) The number of phones, types of phones and services required under the CUG plan
must be within the limit of the approved budgetary allocation for the service.
(vii) A public official shall be assigned only one mobile telephone at any given time and
shall not be assigned any other mobile communication device, for example radio and
pager, unless special approval is given by the Financial Secretary or by the Board in
the case of a public body.
(viii) Consultants and advisors maybe assigned a mobile telephone depending on the nature
of their duties and provided that their contract is for a period of not less than one (1)
year.
(ix) Assigned mobile telephones are the property of the Government of Jamaica and
maybe retrieved from the assignee at any time based on the directive of the
Accounting Officer, Chief Executive Officer, Head of Department and Board
Chairman in the case of a Public Body.
167
(ii) The pre-set telephone limits must be approved by the Accounting Officer, Chief
Executive Officer, Board Chairman or Head of Department and, must not exceed the
maximum stipulated in Appendix 11.
(iii) Where there are justifiable reasons for officers to be allocated pre-set telephone limits
over the maximum stipulated amount, the prior approval of the Financial Secretary
must be obtained.
(iv) Accounting Officers, Chief Executive Officers, Board Chairmen or Heads of
Departments must ensure that a register is maintained of all mobile telephones owned
or under the control of their ministry, agency or public body.
(v) The Mobile Telephone Register must have at minimum the information shown at
Appendix 18.
(vi) The ‘Remarks’ column of the Register must be used for making notation in respect of:
(a) Damage to Mobile Telephone
(b) Loss of Mobile Telephone
(c) Service and repairs to Mobile Telephone
(d) Return and Transfer of Mobile Telephone
(vii) Where private calls are made from an assigned telephone, the assignee must indicate
such calls and promptly pay the amount charged including the requisite General
Consumption Tax to the ministry, department, agency or public body.
(viii) Where a CUG mobile telephone not owned by Government is lost, stolen or damaged
this must be promptly reported to the assigned officer responsible for CUG phones in
the ministries, departments or agencies who must formally report this matter promptly
to the service provider.
(ix) Where a Government owned mobile phone is lost, stolen or damaged this must be
promptly reported to the Auditor-General and the Ministry of Finance. In the case of
public bodies the report must be made to the Board of Directors.
(x) Where a CUG mobile telephone or any other mobile phones is lost or damaged due to
the negligence of the assignee, the value of the mobile telephone at the time of the
loss or the repair cost must be recovered from the assignee.
(xi) Assigned mobile telephones must be returned by officers to the respective ministry
department, agency or public body upon:-
(a) Resignation;
(b) Dismissal;
(c) interdiction or suspension for a period exceeding 60 calendar days;
(d) retirement;
(e) embarking on study leave, vacation leave, and any other leave exceeding a period
of ninety (90) calendar days; or
(f) secondment or transfer to another public sector entity
(xii) Assigned mobile telephones should not be replaced before the end of the contract
period unless the instrument becomes defective or the officer has been re-assigned to
a position that necessities the use of a more advanced instrument.
168
9.12.4 Disposal of CUG
(i) Permanent Secretaries, Chief Executive Officers, Chairman of Board of Directors and
Heads of Departments must establish a committee for the proper management of the
disposal of the mobile phones and SIM cards.
(ii) At the end of the CUG contractual period or the termination of the contract, the CUG
hand set devices maybe sold to officers to whom such devices were assigned at scrap
value as determine by the committee.
(iii) Ministries, Departments or Agencies must lodge all funds received from the disposal
of mobile phones to the Accountant General for Miscellaneous Revenue. Public
Bodies may determine the appropriate use of the funds received from disposal of the
phones.
169
filed. Assignment forms must be completed for all officers including those already in
possession of a Government laptop. The assignment period must not exceed the
assignee’s contract or consultancy period.
(iv) An officer must not be assigned more than one (1) laptop at any given time. Where a
new laptop is being assigned the existing one must be returned.
(v) Officers may be assigned laptops for use while on official duties overseas.
(vi) Laptops must be returned immediately upon the assignee’s resignation, retirement,
dismissal, secondment, interdiction, vacation leave or study leave or upon any other
form of separation from the job.
(vii) Unassigned laptops including laptops returned from assignment must be kept in a safe
place by the officer designated with the responsibility for their custody.
(viii) Assigned laptops are the property of Government and may be taken from the assignee
at any time for any reason based on the directive of the Accounting Officer, Principal
Receiver of Revenues, Chief Executive Officer, Board Chairman or Head of
Department.
170
(iii) MDAs and public bodies must ensure that/servicing/maintenance is done on all
assigned laptops at least once every three (3) months. A log must be maintained in
this regard
171
10 CASH-BASED IPSAS
I. Constitution of Jamaica
172
For the reason stated in the previous section this will no longer be possible and the sub-
paragraph should be repealed from the Act.
III. Financial Management Regulations (FMR) 2011, as amended 2015
Regulation 5(sub-sections (3) to (5): Consolidated Fund Books of Account.
Regulation 64: indicates that if the Financial Secretary directs that an accruals based system
be used it should be in accordance with IPSAS or IFRS
Regulation 65(3): indicates that “the accounts of Government shall be complete, relevant
and current in accordance with the standards and guidelines prescribed by the Financial
Secretary.” This could be improved by indicating that the accounts must follow the
requirements of IPSAS – whether cash or accruals based.
Regulation 68: indicates that the Financial Secretary shall prescribe guidelines for the
preparation and presentation of reports.
Regulation 74(2): allows the Financial Secretary to issue instructions with regards the
correction of errors in the accounts.
“Accounting Basis”- This is the cash basis of accounting as defined in the accrual basis
International Public Sector Accounting Standards and the Cash Basis International Public Sector
Accounting Standard.
“Annual Budget”- This means an approved budget for one year. It does not include published
forward estimates or projections for periods beyond the budget period.
“Approved Budget”This meansthe expenditure authority derived from laws, appropriation bills,
government ordinances and other decisions related to the anticipated revenue or receipts for the
budgetary period.
“Budgetary Basis”- This is the accrual, cash or other basis of accounting adopted in the budget
that has been approved by legislation.
“Cash Basis IPSAS”- The International Public Sector Accounting Standard in which cash
comprises; cash on hand, demand deposits and cash equivalents. Cash basis means a basis of
accounting that recognizes transactions and other events only when cash is received or paid.
173
“Cash Equivalent”- Are short-term, highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
“Closing Rate”- Thisis the spot exchange rate at the reporting date.
“Comparable Basis”- Means the actual amounts presented on the same accounting basis, same
classification basis, for the same entities and for the same period as the approved budget.
“Control of Cash”- Control of cash arises when the Ministry, Department and Agency can use
or otherwise benefit from the cash in pursuit of its objectives and can exclude or regulate the
access of others to that benefit. Monies lodged to the Bank Accounts under the control of the
MDAs are regarded as cash controlled by the entities.
“Control of a Ministry, Department or Agency”- This is the power to govern the financial and
operating policies of a Ministry, Department or Agency so as to benefit from its activities.
“Controlled Ministry, Department and Agency”- This is a Ministry, Department or Agency that
is under the control of another Ministry, Department or Agency (known as the controlling
Ministry, Department or Agency).
“Exchange Difference”- This is the difference resulting from reporting the same number of
units of a foreign currency in the reporting currency at different exchange rates.
“Final Budget”- Original budget adjusted for all reserves, carry over amounts, transfers,
allocations, supplemental appropriations, and other authorized legislative or similar authority,
changes applicable to the budget period.
174
“Foreign currency”- This means a currency other than the reporting currency of a Ministry,
Department or Agency.
“Government Business Enterprise (Cash Basis IPSAS)”- Means a Public Body that has all the
following characteristics:
“Multi-year Budget”- An approved budget for more than one year. It does not include published
forward estimates or projections for periods beyond the budget period.
“Reporting Date (Cash Basis IPSAS)”- The reporting date is the date of the last day of the
reporting period to which financial statements relate.
“Cash Equivalent”: Cash equivalents are short term, highly liquid investments that are readily
convertible to known amounts of cash, with minimum risk. Cash equivalents are held for the
purpose of meeting short-term cash commitments.
175
Funds that are expended on behalf of the MDAs from the Central Payment Account to
fund their operating objectives are not under the control of the MDAs.
Miscellaneous revenue that is deposited directly in the bank account of the Accountant
General’s Department is not under the control of the MDAs.
176
(d) Funds administer on behalf of another government department to be transferred to
third parties; and
(e) Short term borrowings or lending having maturity less than 3 months. Report net of
interest received and any associated costs.
(ii) The column for “Receipts/Payment Controlled by the Government” represents all the
receipts and payments under the control of the Government of Jamaica.
(iii) The column for “Third Party Payments” represents all receipts and payments made by
external third parties on behalf of the Government of Jamaica.
177
10.5.5 Operating Activities
(i) Operating activities are activities derived primarily from the following:
(a) Cash receipts from taxation;
(b) Cash receipts that are non-taxation (fees and other fines);
(c) Cash receipts from warrant allocations;
(d) Cash receipts from aid and technical assistance received from the Multilateral and
Bilateral entities;
(e) Cash receipts in deposit accounts operated by the MDAs and Treasury deposits
operated by the AGDs Treasury department;
(f) Cash payments for salaries and employee benefits;
(g) Cash payments for goods and services;
(h) Cash payments for grants, contributions and subsidies;
(i) Cash payments for loan interest and expenses;
(j) Other cash payments; and
(k) Transfers to other parties such as the Accountant General.
10.5.6 Investing Activities
(i) Investing activities are the acquisition and disposal of long-term assets and other
investments. Cash flows from investing activities are derived primarily from:
(a) Cash payments for the purchase of non-financial assets
(b) Cash receipts for the sale of non-financial assets
(c) Cash payments for purchase of financial assets
(d) Cash receipts for the sale of financial assets
(iii) Loans and grants are usually received in foreign currency and as such opening and
closing balances must be converted at the local exchange rate as at the date of reporting.
(iv) Transactions throughout the year must be converted at the local rate at the date of the
transactions.
178
(ii) On a monthly basis supporting documents should be obtained to clear all advances.
Advances that remain outstanding at the end of the accounting period must be included in
the line item “Other Payments” in the operating activities segment of the statement of
receipts and payments. Disclosure of the total advance amount and the purpose should
also be made in the notes to the financial statement.
179
(ii) The Accounting Policies section of the notes to the financial statements should describe
each specific accounting policy that is necessary for a proper understanding of the
financial statements, including the extent to which the Ministry, Department or Agency
and the consolidated government has applied any transitional provisions in the Standard.
(iii) Inappropriate accounting treatments are not rectified either by disclosure of the
accounting policies used, or by notes or explanatory material.
180
(a) A significant change in the nature of the operations of the MDA or a review of its
financial statements presentation demonstrates that the change will result in a more
appropriate presentation of events or transactions; or
(b) If it is impracticable to reclassify comparative amounts, the reason should be
disclosed e.g. major restructuring of service delivery arrangements; the creation of a
new, or termination of a major existing, government MDA; a significant acquisition
or disposal.
181
10.18 Consolidation Procedures
(i) Cash balances and cash transactions between entities within the Government as a whole
should be eliminated in full.
(ii) Consolidated financial statements should only reflect transactions between the
Government of Jamaica and other entities external to it. For example, when one
government department sells an asset to another government department, the net cash
effect on the whole of government is zero. Hence, this transaction needs to be eliminated
to avoid overstating the cash receipts and cash payments of the whole of government.
(iii) Each government department is required to keep a record of all cash transactions
between themselves in order to eliminate these amounts when the statements are being
prepared. They are eliminated by reducing the receipts and payments by the amounts
received from and paid to one government by another government department.
182
10.22 Budget Information in Financial Statements
183
10.24.3 External Assistance to Central Government on behalf of lower tiers of
Governments
(i) When Central Government enters into external assistance agreements, Central
Government may relend or assign the funds to another public body through a similar
agreement. Central Government will recognise receipt and payment under appropriate
classification.
184
APPENDICES
185
Appendix 1- Statement of Cash Receipts and Payments for MDAs
Name of MDA
Annual Cash Flow Statement for the period ending 31st March 2015
2014/15 2013/14
Central Receipt/Payment Payment Central Receipt/Payment Payment by
Notes Payment Controlled by by Third Payment Controlled by Third
Account Entity parties Account Entity parties
CASH FLOWS
FROM OPERATING
ACTIVITIES
$'000' $'000' $'000' $'000' $'000' $'000'
Non Tax Revenue
Fees 0
Other 4 0 123,456
Warrant Allocations 3 75,141,234 0 0 0 0 0
Appropriations-in-
Aid 3 410,642 0 0 0 0 0
External Assistance
Multilateral Grants
and Technical
Assistance 5 242,950 0 0 0 0 0
Bilateral Agencies
Grants and Technical
Assistance 0 0 0 0 0 0
Other Grants and
Aid 0 0 0 0 0 0
Deposit Receipts 8 0 129,077 0 0 100,000 0
Total Receipts 75,794,825 252,533 0 0 100,000
Cash Payment from
Operating Activities
Salaries and 62,167,924 0 0 2,268,826 0 0
186
Name of MDA
Annual Cash Flow Statement for the period ending 31st March 2015
2014/15 2013/14
Central Receipt/Payment Payment Central Receipt/Payment Payment by
Notes Payment Controlled by by Third Payment Controlled by Third
Account Entity parties Account Entity parties
Employee benefits
Payment for goods
and Services 2,620,365 0 57,463 1,413,272 0 0
Grants, Contributions
& Subsidies 8,666,147 0 0 80,539,593 0 0
Loan Interest and
Expenses 0 0 0 0 0 0
Retirement Benefits 79,717 0 0 0 0 0
Other Payments 7,086,770 0 0 147,752 0 0
Deposit Payments 8 0 22,006 0 0 0 0
Revenue Transfers 4 0 123,456 0 0 0 0
Total Payments 80,620,923 145,462 57,463 84,369,443 0 0
Net Cash Inflow
From Operating
Activities -4,826,098 107,071 -57,463 -84,369,443 100,000 0
CASH FLOWS
FROM
INVESTMENTS
Purchase/Sale of
Non-Financial Assets 673,542 0 134,177 168,524 0 0
Purchase/Sale of
Financial Assets 0 0 0 0
Net Cash out/inflow
from Investments -673,542 0 -134,177 -168,524 0
CASH
SURPLUS/DEFICIT -5,499,639 107,071 -191,640 -84,537,967 100,000
CASH FLOWS
FROM
FINANCING
ACTIVITIES
Receipt/Payment of 5 736,093 0 201,538 0
187
Name of MDA
Annual Cash Flow Statement for the period ending 31st March 2015
2014/15 2013/14
Central Receipt/Payment Payment Central Receipt/Payment Payment by
Notes Payment Controlled by by Third Payment Controlled by Third
Account Entity parties Account Entity parties
Multilateral Debt
Receipt/Payment of
Bilateral Debt 5 0 0 0
Receipt of Domestic
Debt 0 0 0 0
Net Cash Flows
from Financing
Activities 736,093 0 201,538 0 0
NET INCREASE
(DECREASE) IN
CASH AND CASH
EQUIVALENTS -4,763,546 107,071 9,898 -84,537,967 100,000
CASH AND CASH
EQUIVALENTS
AT BEGINNING
OF YEAR 212,170 151,084 0 0
188
Appendix 2- Notes to the Financial Statements Of MDAs: -
1. Accounting Policies
- Basis of preparation
The financial statements have been prepared in accordance with the Financial Administration
and Audit (FAA) and the FAA Act Instructions under The Cash Basis of Accounting principles.
The Cash Basis of Accounting is in transition to be compliant with Cash Basis International
Public Sector Accounting Standard (IPSAS). Cash Basis IPSAS has not been fully adopted in the
preparation of these statements. Accounts for portfolio entities have not been consolidated with
parent ministry’s accounts.
- Reporting entity
The financial statements are for public sector entity: (Name of MDA).
The (Name of MDA) is one of the reporting entities as specified in the list of Central Treasury
Management Sites. The MDA’s principal activity is to provide (Include main function of the
entity).
The Accountant General operates a centralized treasury function which administers cash
expenditures incurred on behalf of government departments. Payments made through the Central
Payment Account in respect of the MDAs are disclosed in the Treasury Single Account column
in the Statement of Cash Receipts and Payments. Funds under the control of the MDAs are
disclosed in the Receipts and Payments Controlled by the Entity column in the Statement of
Cash Receipts and Payments.
(Name of MDA) benefits from goods and services purchased on its behalf as a result of cash
payments made by third parties during the reporting period. The payments made by the third
parties do not constitute cash receipts or payments of the Department but benefits the
Department.
- Reporting currency
2. Authorization Date
The financial statements were authorized for issue on XX Month 200XX by Permanent Secretary
of MDA.
189
Amounts allocated and appropriated through the parliament to the MDAs, are managed through
the Central Payment Account administered by the Accountant General’s Department. These
amounts are not controlled by the MDA but are deployed on the MDA’s behalf by the
Accountant General’s Department on presentation of appropriate documentation and
authorization. The amount reported as allocations/appropriations in the statement of cash receipts
and payments is the amount the Accountant General has expended for the benefit of the MDA.
4. Revenue Transfers
This represents amounts transferred to the Consolidated Fund by the revenue collection
agencies and MDAs.
2014-2015 2013-2014
$000 $000
Deposit Account Balance 129,077 100,000
190
2014-2015 2013-2014
$000 $000
Special Account Balance 130,500 100,000
2014-2015 2013-2014
$000 $000
Multilateral Loans/Grants 100,000 110,000
Bilateral Loans/Grants 150,000 120,000
2014-2015 2013-2014
$000 $000
Multilateral Loans/Grants 100,000 110,000
Bilateral Loans/Grants 150,000 120,000
Included in other payments are rental of property, communication and miscellaneous payments.
191
Appendix 3- Consolidated Annual Statement of Cash Receipts and Payments
Consolidated Government of Jamaica
Annual Statement of Cash Receipts and Payments for the Year ending 31st March 2015
2014/15 2013/14
192
Subsidies
193
Appendix 4 - Notes to the Consolidated Government Statement of Cash
Receipts & Payments
- Reporting entity
The financial statements are for the Consolidated Government of Jamaica (GOJ)//Ministries/
Department/Agencies. The financial statements encompass the reporting entities that are
currently under the Central Treasury Management System as set out in Note 10 to the financial
statements.
- Reporting currency
2. Authorization Date
The financial statements were authorized for publication on XX Month 20XX by the
Accountant General, the Treasurer of GOJ.
External assistance was received in the form of loans and grants from multilateral and bilateral
donor agencies under agreements specifying the purposes for which the assistance will be
utilized. The following amounts are presented in Jamaican dollars and were received in the
194
Consolidated Fund and Special Bank Accounts.
Consolidated
Multilateral Grants Funds
Other Grants 3,099,698,350.82
European Union 2,769,859,232.51
5,869,557,583.33
Special Accounts 1,164,295,738.11
Total Grants 7,033,853,321.44
(a) Deposits -
The Deposit Account and Treasury Deposits are under the control of the Government of Jamaica
and as such the receipts, payments, opening and closing balances are shown on the face of the
Statement of Cash Receipts and Payments in a column entitled “receipts/payments controlled by
the entity”. The balances however are not available for use by the Government of Jamaica as
they are being held on behalf of other parties.
2014-2015 2013-2014
$000 $000
Treasury Deposits 2,115,965 5,342,775
MDA Deposits 1,273,667 1,500,000
195
(d) Special Accounts–
Cash balances held in the Special/Project accounts jointly owned by the Ministry of Finance and
the relevant Ministries are not available for use as they were received as grants and loans which
must be used for specific purposes.
2014-2015 2013-2014
$000 $000
Special Account Balance 1,851,616 4,000,000
2014-2015 2013-2014
$000 $000
Multilateral Grants 1,000,000 900,000
Bilateral Grants 2,000,000 1,000,000
Undrawn borrowing facilities represents a potential source of cash and as at reporting date are
amounts specified in a binding agreement which relate to funding for projects currently under
development, where conditions have been satisfied, and their ongoing satisfaction is highly
likely, and the project is anticipated to continue to completion.
2014-2015 2013-2014
$000 $000
Multilateral Loans 1,000,000 900,000
Bilateral Loans 2,000,000 1,000,000
9. Other Taxes
The amount shown as other taxes on the front of the Statement of Cash and Receipts and
Payments represents the items listed below.
Other Taxes
Motor Vehicle Licenses 2,679,428,665.69
Other Licenses 315,921,371.71
Betting Gaming & Lotteries Duties, 2,679,237,041.46
196
Fees & Levies
Contractors Levy 1,020,237,379.27
Environmental Levy 2,392,799,032.49
Telephone Call Tax 6,728,184,950.11
Minimum Business Tax 667,828,000.69
Stamp Duties 12,630,317,000.00
29,113,953,000.00
10. Other Operating Payments
Included in other payments are rental of property, communication and miscellaneous payments.
Also included is an amount of $4.8 billion which was funded in April 2014 but was for expenses
for the prior period March 2014 (warrant 47).
197
2828 Revenue Court
2829 Supreme Court
3000 Ministry of Foreign Affairs and Foreign Trade
4000 Ministry of Labour and Social Security
4100 Ministry of Education
4200 Ministry of Health
4234 Bellevue Hospital
4235 Government Chemist
5100 Ministry of Agriculture and Fisheries
5300 Ministry of Industry, Investment and Commerce
5600 Ministry of Science, Technology, Energy and Mining
5639 Post and Telecommunication Department
6500 Ministry of Transport, Works and Housing
6700 Ministry of Water, Land, Environment and Climate Change
7200 Ministry of Local Government and Community Development
198
Appendix 5- Foreign Currency Account Cash Book
199
Appendix 6- Consolidated/Ministry Comparison of Budget and Actual Amounts
CONSOLIDATED/MINISTRY OF XXX HEAD No.XXX
COMPARISON OF BUDGET AND ACTUAL AMOUNTS
FOR THE PERIOD ENDED XXX
GRANTS
Current Grants – Foreign Government
Current Grants– International Organisation
Current Grants – Local Organisation 8,644,850 6,722,561 -1,922,289
Capital Grants – Foreign Government
Capital Grants – International Organisation
Capital Grants – Local Organisation
TOTAL GRANTS 8,644,850 6,722,561 -1,922,289
TOTAL REVENUE AND GRANT 421,071,366 412,039,006 -9,032,361
NON FINANCIAL ASSETS
Land Sales 161,231 161,231
Proceeds from Divestment
TOTAL NON FINANCIAL ASSETS 161,231 161,231
FINANCIAL ASSETS
Loans – Miscellaneous 132,174 573,917 441,742
TOTAL FINANCIAL ASSETS 132,174 573,917 441,742
FINANCIAL LIABILITY
Domestic Loans 56,280,600 44,757,666 -11,522,934
Multilateral Loans 21,179,902 36,707,373 15,527,472
Bilateral Loans 4,804,000 5,347,420 543,420
Other Foreign Loan 28,630,000 89,385,565 60,755,565
EXPENDITURE
Compensation of Employees 2,040,311 88,455 2,128,766 2,027,589 101,177
Travel Expenses & Subsistence 472,320 22,707 495,027 472,629 22,398
Rental Of Property &Machinery 77,504 2,115 79,619 76,148 3,471
Utilities And Communication Services 143,166 56,958 200,124 201, 025 -901
Use Of Goods And Services 4,114,587 81,830 4,196,417 4,104,846 91, 571
Loan Interest Payments& Expenses
Grants, Contributions & Subsidies 3,654,072 -82,193 3,571,879 3,746,850 -174,971
Retirement Benefits
Awards & Social Assistance 291,500 35,903 327,403 323,962 3,441
TOTAL EXPENDITURE 10,793,460 205775 10,999,235 10,953,049 -46,186
NON FINANCIAL ASSETS
Land 5,000 0 1,000 4,000
Fixed Assets (Capital Goods) 130,020 -6,889 123,131 41,011 82,120
FINANCIAL ASSETS
FINANCIAL LIABILITIES
.
Director of Finance/Financial
Accountant Accounting Officer
Controller
200
Appendix 7- Project Summary Receipts and Payments Statements
MINISTRY/DEPARTMENT AGENCY __________________________________________________________________________
ORGANISATION CODE _____________________FINANCIAL PATTERN ___________________
CURRENCY ___________(N.B. Separate Sheets must be prepared according to the foreign currency)
GRANT
PAYMENTS TO BALANCE AS
LOAN/GRANT LOAN/GRANT EXPENDITURE EXPENDITURE TRANSFER PAYMENTS TO
ACCOUNT BALANCE as Start TRANSFER CONSOLIDATED ATTHE END OF
RECEIPTS FOR RECEIPTS TO PAYMENTS FOTR PAYMENTS TO PAYMENTS TO CONSOLIDATED
NUMBER of Month PAYMENTS FUND FOR THE YTHE MONTH
THE MONTH DATE THE MONTH DATE DATE FUND TO DATE
MONTH -
0.00
0.00
0.00
0.00
100,000.00 500,000.00 500,000.00 100,000.00 50,000.00 100,000.00 0.00 500,000.00
LOAN
231719385 0.00
0.00
0.00
0.00
0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
201
Appendix 8- Project Detail Receipts and Payments Statements
MONTH -___________________________
(N.B Separate Detail Sheets must be used for loans and Grants per project)
Economic Foreign
Exchange JMD Equivalent Foreign Currency JMD Equivalent
Date Payee Classification Code currency
Rate Received Amount Paid Paid
(Object Received
Totals
202
Appendix 9 - Procedure For Daily Reconciliation of Point of Sale (Debit/Credit Cards
Collections)
Reconciliation at Collectorates
(1) Check collects as per CRS/Manual Records against summary print out from Point-Of-Sale (POS)
machine. Where there is a difference, detail reconciliation must be done, errors found and resolved.
(2) Sign two copies of Reconciliation Statement (see sample form).
(3) File one copy of the Reconciliation Statement and submit the other copy along with the original POS
printout to the Revenue Accounts section at King Street.
(1) Obtain bank statement from bank or scrutinize same through the Direct Access System
(2) Identify all POS lodgements on Bank Statement (NB. this will be represented by a special code used
by the bank for each Collectorate.
(3) Compare POS lodgments on bank statement with returns from Collectorate.
(4) Advise Collectorate of the details of any discrepancies found.
(5) Follow up and ensure resolution/correction of errors.
NB. Debit Card transactions are credited as the transaction occurs, but credit card transactions may take up to
24 hours to be credited to the bank account.
203
Appendix 10 - Approved Credit Card Ceilings
The credit limit on GCC andICCmust be in accordance with amounts stipulated below:
204
Appendix 11- Preset Limits on Call For Government Mobile Telephone
Governor General
Prime Minister & Cabinet Ministers
Ministers of State
Parliamentary Secretaries
Board Chairmen & Mayors
Permanent Secretaries No Pre-set Limit on calls
Commissioners
Chief Executive Officerss
Chief Technical Directors
Heads of Departments
Public Officials paid at the level of
SEG 5 or equivalent or above
CATEGORY B
Divisional Heads
Senior Managers
Program Managers
Public Relation Officers Maximum Pre-set Limit on calls and
Project Officers data services - $2,500 per month
Public Officials paid at the level of
SEG 3 and or equivalent
CATEGORY C
Technical Officers
Field Officers
Managers Maximum Pre-set Limit on calls and
Public Official paid at the level of SEG data services -$2,000.00 per month
2 or equivalent or below
205
Appendix 12- Authority for Write-Off of Loss of Public Money
206
Appendix 13- Jamaica Public Investment Management System
MDA, GBE,
Cabinet
PIMSEC
Donors, (with PEX, PED) Recommend Approval
Consultants, for inclusion
PIM in PSIP
DBJ (for PPP)
PIMSEC PIM Committee
(with assistance COMMITTEE Review
from DBJ & MoFP Preparation
MDAs, GBEs if it is a PPP) and
(with or without Proceed Appraisal
Donors) with No
Pre- Objection
screening
Develop Review
and
Submit a
Project
Idea
through
PIMSEC REJECT REJECT
MORE
WORK/INFO
PROJECT RECONFIGURATION
DBJ performs Business Case if it is a PPP
Phase 1 Phase 2
207
Appendix 14 -Document Retention Schedule
FINANCE MANAGEMENT
BUDGET MANAGEMENT
208
Records Series Retention Period Retention Format
Annual Statutory accounts (Drafts) 2 years after final accounts is signed Electronic/paper
AUDIT
209
Records Series Retention Period Retention Format
TREASURY
Investment management
Current financial year + 6 years Electronic/paper
Fund managers’ report
Records of purchase and sale of investments
Loan Agreements Permanent Electronic/paper
PROPERTY DOCUMENTATION
TAX MANAGEMENT
PROCUREMENT/ACCOUNTS PAYABLE
210
Records Series Retention Period Retention Format
Payment records:
Documents relating to the payment of Current financial year + 6 years Electronic/paper
supplier invoices
Foreign payment forms/invoices
Employee expenses Current financial year + 6 years Electronic/paper
Corporate Cards:
Credit cards Current financial year + 6 years
Gas cards Electronic/paper
Cash cards
Corporate Cardstatements
Current financial year + 6 years Electronic/paper
PAYROLL ADMINISTRATION
60 years Electronic
RECEIVABLES
211
Records Series Retention Period Retention Format
Records documenting the issue of sales invoices Current financial year + 6 years Electronic/paper
and the processing of incoming payments
Electronic banking and electronic funds transfer Current financial year + 6 years Electronic/paper
212
Records Series Retention Period Retention Format
EXPENDITURE RECORDS
LEDGER RECORDS
213
Records Series Retention Period Retention Format
STORES RECORDS
Stocktaking sheets/records, including inventories, One (1) year after Audit Electronic/paper
stock reconciliations, stock take reports
NB : - For the purposes of this schedule, electronic documents should be captured and maintained with inappropriate systems that
facilitates their retrieval and should be able to stand up to legal or business scrutiny.
214
Appendix 15- Point of Sale Reconciliation Statement
POINT-OF-SALE
RECONCILIATION STATEMENT
COLLECTORATE/REVENUE CENTRE_______________________________________
FOR_______/________/_____
Year month day
CARD TYPE : CREDIT/DEBIT
ADJUSTMENTS
(3) NOTES
(4) I HEREBY CERTIFY THAT THE TOTAL CARD COLLECTIONS AS PER P-O-S MACHINE AND
MANUAL IMPRINTER HAVE BEEN CHECKED BY ME AND RECONCILED WITH THE
CRS/MANUAL SUMMARY OF DAILY COLLECTIONS.
________________________________________ ___________________________
COLLECTOR OF TAXES CASHIER
215
Appendix 16 -Acceptance of Gift Form
(To record items received as gifts.)
Donor(s): Donor Address:
PART I Money
Amount $ Purpose of the Gift
PART II Service
Type of Service Value$ Location
PART IV Consumables
Description Quantity Value$ Purpose of the Gift
Comment
Date Date
216
Appendix 17- Statutory Deductions Payable Form
MINISTRY/DEPARTMENT/AGENCY ______________________________
MONTH ____________________
217
Appendix 18- Mobile Telephone Register
218
Appendix 19- Laptop Assignment Form
ASSIGNEE_____________________________________DATE___________
The above peripheral devices and other items in the condition as stated above is the property of the
Day(s)/week(s)/month(s)/year(s) for the purpose of conducting the work of the ministry/departmeny/ agency/public body. It is your responsibility to safeguard this
computer, the peripheral devices and other items from theft , loss or damageand to ensure its proper care and use. The computeris being loan to you on the
following conditions:
(1) No additional software is to be looaded to the computer without the permission of the ministry/department/agency/public body.
(2) In case of damage, theft or loss, a formal report is to be made immediately by you to the ministry/department/agency/public body (NB. You will be held
personally liable for any loss or damage caused by negligence based on an internal investigation.
219
(3) The ministry/department/agency/public body reserves the right to recall the computer at any time.
The computer is subject to the audit of the Chief Audit Executive and the Auditor-General.
DATE : DATE :
220
Appendix 20- laptop Assignment Register
ASSIGNMENT RETURN
LAPTOP
PERIPHERAL DATE
DATE NAME OF SERIAL DATE
DEVICES/ & TO BE RECEIVED BY REMARKS
ASSIGNED ASSIGNEE # RETURNED
OTHER ITEMS RETURNED
ASSIGNED
221
Appendix 21- Declaration by Owner of Motor Vehicle Assigned to Travelling Officer
I______________________________________________________________________
Name of Owner
of ____________________________________________________________________
Address of Owner
assign my _____________________________________________________________
Vehicle Model and Type
To ___________________________________________________________________
Name of Travelling officer
freely and unencumbered. I do also declare that the aforesaid motor vehicle is not the subject of any travelling
allowance being paid by a ministry/department/agency or any public body. Finally, I further declare that I will
immediately advise the abovenamed Ministry/Department/Agency upon my revocation of the assignment of this motor
vehicle to the travelling officer.
______________________________________________ _______________________
Signature of . Motor Vehicle Owner Date
___________________ __________________________
Witnessed By Date
222
Appendix 22- Declaration of Travelling Officer with Assigned Vehicle
I______________________________________________________________________
Name of Travelling Officer
of ____________________________________________________________________
Address of Travelling Officer
Do hereby declare that I have with effect from ______________________________ been assigned a
________________________________________ by ____________________________________________
Vehicle Model and Type Name of Owner
I do also declare that to the best of my knowledge the aforesaid motor vehicle is not the subject of any travelling
allowance being paid by a ministry/department/agency or any public body. Finally, I further declare that I will
immediately advise the Human Resources Division of the ministry/department/agency upon the owner’s revocation
of the assignment of the motor vehicle to me or in the event of any circumstances where I am unable to satisfactorily
perform my official duties through the free and unencumbered use of the said motor vehicle.
______________________________________________ _______________________
Signature. Travelling Officer Date
________________________________________________ __________________________
Witnessed By Date
223
Appendix 23 - Chauffeur’s Allowance Certificate
224
Appendix 24- Travel Register
225
Appendix 25- Transport Allowance Claim Form
226
227
Appendix 26- Quarterly Report on Losses Written Off
Ministry/Department/Agency____________________________________________________
We hereby certify that the report herein represents an accurate account of all Losses written off during the financial year.
228
Appendix 27- Utility Register – Electricity , Water and Electricity
Organisation Code
Name.
Electricity/ Water
TRN
Meter Number/
Telephone Number
Premises No.
Premises Address/Location
Billing Cycle
Amount Deposited
Other Particulars
1 2 3 4 5 6 7
Meter Reading
Current
Bill Bal b/f Total
Bill Period Previous Present Month
Due Previous Amount Period
Bill
Actual or Actual or Date Period Payable
Amount
From To Estimated Estimated
229
8 9 10 11 12 13 14
230
Appendix 28- Private Telephone Call Register
Private
Date Name of Place Call Signature Authorising Receipts Remarks
Caller Called Tel. # of Caller Officer Number
231
Appendix 29- Rent Payable Register
Organisation Code
Name
TRN
Contract Number
Rental Contract
Date Signed
Sq.feet/ Sq Metre/Acre
Other Particulars
1 2 3 4 5 6 7 8
232
233
Appendix 30 - Contract Register
Organisation Code
Name
Contractor’s Name
Contractor’s TRN
Contractor’s Address
Contract Number
Description of Contract
Completion Date
234
Approved
Contract Amount
Contract Retention %
Other Particulars
1 2 3 4 5 6 7 8 9 10 11
Period PV/JV Payment Invoice. Supplier Cheque AGD Date Amount Total Paid Remarks
No. Description No. Name/ No./ Treasury Paid Paid to Date
TRN Transit Ref# $ $
no.
235
SECTION C- PAYMENT TO CONTRACTOR
1 2 3 4 5 6 7
Period & Date Current Amount Certification Value of Work Amount due for Less Less Liquidated
Certified for No. and Date Done to Date payment on Retention Damages, if any
Payment Contract Amount
PAYMENT TO CONTRACTOR
8 9 10 11 12 13 14 15 16 17
Less Less Less Other PV/JV Cheque Cheque AGD Date Amount Total Paid to
Contractor’s GCT Deduction(s), if No. No./Cheque No./ Treasury Paid Paid Date
levy any, (specify) Date Transit Ref# $ $
no.
236
237
Appendix 31- Voucher Forms
Payment Voucher
P1(a) Continuation Sheet for Form P1
(Continued)
Payment Voucher Continuation Sheet for Form P1 ( single payee with multiple
P1(b)
(Continued) breakouts)
Payment Voucher Continuation Sheet for Form P1 (multiple payees with single
P1( c )
(Continued) breakout)
Payment Voucher
P2 Recurrent/Capital A & B Advance Payment
(Advance Payment)
Payment Voucher
P5 Deposit Payment
(Deposit )
Payment Voucher (Deposit P5(a) Continuation Sheet for Deposit Payment Form P5
Continued)
Transport Allowance
P6 Payment of Transport Allowance Claim
Voucher
Subsistence Allowance
P7 Payment of Subsistence Allowance Claim
Voucher
238
Journal Voucher J1 Recurrent/Capital A & B Journal
Journal Voucher (Continued) J1(a) Continuation Sheet for Journal Voucher Form J1
(Budget/Warrant
Journal Voucher (Budget/
Input) J2(a) Continuation Sheet for Journal Voucher Form J2
Warrant Input Continued )
Journal
Input) Voucher J3 Deposit Journal
(Deposit Transactions)
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
Appendix 32 MDA’s Monthly Financial Reports
MFR 1 Trial Balance FP11, 12, 21, 22, 31, 32, 45, 90
MFR 3 Bank Reconciliation Statement FP11, 12, 21, 22, 31, 32, 45, 90
MFR 4 Statement of Bank Balance FP11, 12, 21, 22, 31, 32, 45
264
GENERAL LEDGER TRIAL BALANCE MFR 1
Account Balance
Description DR CR
265
STATEMENT OF RECEIPTS AND PAYMENTS MFR 2
RECEIPTS PAYMENTS
1. Balance B/F (if in Debit) 1. Bank Balance B/F (if in Credit)
a) Cash in hand
b) Warrant Balance Account
2. Warrant Issue 2 Warrant Refund
3 Reimbursement of Advances - MOF Contingencies
3 Advances from - MOF Contingencies Provision Provision
4. Advances from – Treasury Deposits 4. Reimbursement of Advances – Treasury Deposits
5. Expenditure Credits 5 Expenditure Payment
7 Other Receipts Other Payments
6. Bank Balance C/F (if in Credit) 6. Balance C/F (if in Debit)
a) Cash in hand
b) Warrant Balance Account
TOTAL TOTAL
I certify that this statement accurately reflect the Warrant Balance of the financial pattern reported herein as at the reporting date.
266
DEPOSIT/FUND RECEIPT & PAYMENTS STATEMENTS MFR 2
RECEIPT PAYMENTS
I certify that this statement accurately reflects the Cash Book position of the bank account in respect of the financial pattern reported herein as at the reporting date.
267
Bank Reconciliation Statement MFR 3
As at _______________________________
MINISTRY/DEPARTMENT Financial Year
Period
HEAD NO. Period No.
Status
(1) Cash Book (or balance in bank account in main Ledger)
$ $
Cash Book balance (unadjusted) xxxx
Adjustments
Less - Bank Charges xxxx
- Debit Advice(s), if any xxxx
- Any other Debits xxxx xxxx
xxxx
Add - Interest credited by Bank xxxx
-Credit Advice(s), if any xxxx
- Any other credit xxxx xxxx
Adjusted Cash Book balance xxxx
2 Bank Statement
Balance as per bank Statement xxxx
Adjustments
Add: - Lodgement(s) not yet credited by bank xxxx
- Amount(s) erroneously debited by bank, xxxx
- Other(s) xxxx xxxx
xxxx
Less - Unpresented Cheques xxxx
- Amount(s) erroneously credited by bank xxxx
- Others xxxx xxxx
Agreeing with adjusted Cash Book/main Ledger balance xxxx
(NB, This statement should provide information on all official bank accounts held by the Ministry/.Department)
269
STATEMENT OF EXPENDITURE BY ACTIVITY MFR 5
Financial
MINISTRY/DEPARTMENT Year
Period Period
HEAD NO. Financial Pattern No. Status
Fun/SFun (10)
Prog/Sprog (4) (5) (6) (7) (8) (9) Balance on
Proj/Sproj (2) (3)
Warrant Current Month's Total Expenditure total Advances Undischarged Balance on Warrant Approved Budget
Act/SAct Description Approved Budget
Int Organ Allocation to date Expenditure to date Outstanding to date Commitments to date 4-(6+8) 3-(6+8)
J
TOTAL $
270
STATEMENT OF EXPENDITURE BY OBJECT MFR 6
Financial
MINISTRY/DEPARTMENT Year
Period Period
HEAD NO. Financial Pattern No. Status
Fun/SFun (10)
Prog/Sprog
(4) (5) (6) (7) (8) (9) Balance on
Proj/Sproj (2) (3)
Act/SAct Warrant Current Month's Total Expenditure total Advances Undischarged Balance on Warrant Approved Budget
Int Organ
Description Approved Budget 3-(6+8)
Allocation to date Expenditure to date Outstanding to date Commitments to date 4-(6+8)
Object
J
TOTAL $
Debit
Advances O/S At Cleared/ Credit Advances O/S At
Advances Paid Adjustments
Category The Start Of The Adjustment The End Of The
During Month During Month
1 Month During Month Month
3 4
2 5 6
01 - Personal Advance
02 - Imprest Advance
09 - Other Advances
Total $
272
LIST OF OUTSTANDING ADVANCES MFR 8
Financial Year
MINISTRY/DEPARTMENT
Period Period
HEAD NO. Financial Pattern No. Status
02 –
Total Category Imprest Advance
03 - Advance to
Total Category Other Min &
Depts
273
Balance at the Current Balance
Advance Account Account No. start of F/Y
AGE
DR/(CR) REMARKS
Name DR/(CR)
1 2 4 6
3 5
04 - Advance to
Total Category Other Govt.
Agencies/Public
Bodies
09 - Other
Total Category Advances
GRAND TOTAL
274
SUMMARY OF DEPOSITS - MFR 9
40 - Revenue Deposits
41 – Refundable Deposits
42 - Works Deposits
43 - Other Deposits
Total $
1 2 3 4 5 6
276
Balance at the start of Current Balance
Deposit Account Account No. F/Y DR/(CR) AGE REMARKS
DR/(CR)
GRAND TOTAL $
277
STATEMENT OF MISCELLANEOUS REVENUE MFR 11
1 2 3 4 5 6 7 8
Collections Budget
Revenue Collections For Lodgements Collections To Lodgements
Annual Not Lodged Variance
Code/Descrip. The Month For The Month Date To Date
(5-6) 2-5
Total
278
STATEMENT OF APPROPRIATIONS-IN-AID MFR 12
1 2 3 4 5 6 7 8
AIA
Credit Debit Total AIA For Budget Variance
Collected Total AIA To
Aia Code/Descrip. Annual Adjustments Adjustments The Month Remarks
During The
During Month During Month (3+4-5)
Date (2-7)
Month
Total
279
Appendix 33 MDA’s Quarterly Financial Reports
280
FINANCIAL MANAGEMENT STATUS REPORT QFR 1
Ministry/Department/Agency_____________________________________________________
281
General/Mof ,Etc.
C ANNUAL RETURNS
YEAR(S) REMARKS
OUTSTANDING
Education Tax
Income Tax
Etc.
282
REPORT ON LOSS/DAMAGE AND OVERPAYMENT QFR2
Ministry/Department/Agency_____________________________________________________
We hereby certify that the report herein represents an accurate account of all Loss/Damage, Overpayment etc, occurred or identified during the financial year stated above.
283
QUARTERLY STATEMENT OF INVESTMENTS QFR 3
Name of Instrument Account Issue Maturity Institution Type of Amount of Interest Tenure Interest Interest Interest
Instrument Number Name Date Date Holding Investment Investment Rate Earned Earned Current Month Earned
284
INTERNAL AUDIT QUARTERIY REPORT QFR 4
285
CREDIT CARD QUARTERLY REPORT QFR 5
286
Appendix 34 – MDA Annual Financial Reports
AFR 3 Appropriation Account by Activities and Objects & Explanation of FAA Act Section 24I(1)
Major Variation
AFR 8 Fund Receipts and Payment Statement FAA Act Section 24(I)( c)
287
SCHEDULE OF OUTSTANDING COMMITMENTS - AFR 1
288
SCHEDULE OF UNPAID BILLS - AFR 2
Function/Sub Fun Details of the delivery of goods and services or the Unpaid
Program/Sub Prog
Project/Sub Proj completion of any work for which payment has not
Activity/Sub Act/ been made before the close of the Financial Year Unpaid Bill Remarks
Object/SubObj
Amount$
289
APPROPRIATION ACCOUNT BY PROJECT/ACTIVITY AFR3
MINISTRY/DEPARTMENT _____________________________________________________
Head No. ______ Financial Pattern ________ Financial Year __________
Net Variance Surrenderable to the Consolidated Fund by the Accountant General from the Central Payment Account :$ 45
Unspent Vote $40 Excess AIA collection $5
290
APPROPRIATION ACCOUNT BY OBJECT AFR 4
MINISTRY/DEPARTMENT _____________________________________________________
Head No. ______ Financial Pattern ________ Financial Year __________
Net Variance Surrenderable to the Consolidated Fund by the Accountant General from the Central Payment Account :$ 45
Unspent Vote $40 Excess AIA collection $5
291
APPROPRIATION ACCOUNT BY OBJECT SUMMARY AFS 4A
MINISTRY/DEPARTMENT _____________________________________________________
Head No. ______ Financial Pattern ________ Financial Year __________
Net Variance Surrenderable to the Consolidated Fund by the Accountant General from the Central Payment Account :$ 45
Unspent Vote $40 Excess AIA collection $5
292
Appendix 35 Revenue Financial Statements
The following are financial statements to be prepared by Principal Receivers of Revenue on n a cash accounting basis in
respect of General Revenue Collections
Statement
Statement Name Frequency Deadline Authority
Code
DR CR
294
RR 2
RECEIPT PAYMENTS
8 Acct Gen. Treasury Deposits Collections 9 Payment to Acct . Gen. Treasury Deposits
a) Cash in hand
b) Bank Account
TOTAL TOTAL
I certify that this statement accurately reflects the revenue collections and remittances for the month
296
Bank Reconciliation Statement RR 33
As at _______________________________
Adjustments
xxxx
2 Bank Statement
Adjustments
297
Add: - Lodgement(s) not yet credited by bank xxxx
xxxx
298
STATEMENT OF REVENUE BANK ACCOUNTS - RR 4
Balance at the start Balance at the end Month up to Month up to which Remarks
Bank Account of month of month which bank statement is
Title of Account Name of bank
Number reconciliation is received
completed
(NB, This statement should provide information on all official bank accounts held by the Ministry/.Department)
299
MONTHLY STATEMENT OF NET REVENUE COLLECTIONS AND REMITTANCE TO THE CONSOLIDATED FUND RR 5
Revenue Revenue Revenue Net Revenue Net Revenue Total Net Transfer to Balance Due Variance
Code Description Estimate Collections Collections Revenue the to
at start of for Month Collections Consolidated Consolidated (3-6)
Month to Date Fund To Fund
Date
(8) =(6)-(7)
Total Net
Collections
To Date
Total $
300
RR 6
Total $
301
RR 7
Total $
302
Appendix 36 T-Card Register
T-CARD REGISTER
MINISTRY/DEPARTMENT/AGENCY: _____________________________________________________________
303
Appendix 37 – Requirements for addition to the Government List of Financial
Institutions for which Salary Deduction Orders are accepted
(i) A processing Fee of $10,000. (NB. Manager’s cheque payable to the Accountant General for
Miscellaneous Revenue)
(vi) Letter re Exemption from the Money Lending Act (If Applicable)
(vii) Audited Financial Statements for the last three (3) years
(viii) Loan Policy ( should include interest rate, percentage break out of personal and business
loans)
(x) Profile of Directors and Senior Managers viz: Names, Qualifications and Experience
NB. The company must be in operation as a financial institution for over five (5) years
304
INDICES
23 Checking Officer, 76
A 24 Cheque Inventory, 79
1 Acceptance of Gifts, 154 25 Cheques, 63, 79
2 Accountable Officers, 27, 28, 29, 30, 50, 67, 68, 70, 26 Chief Audit Executive, 19, 31, 32
130, 140 27 closed period, 89
3 Accountant General, 19, 23, 24, 26, 27, 29, 46, 50, 28 Commercial Accounting Method, 134
53, 54, 55, 59, 60, 61, 66, 81, 89, 90, 91, 92, 94, 119, 29 communication, 94, 95, 166, 190, 196
120, 121, 127, 135, 143, 160, 161, 168, 173, 175, 30 Comparability, 145
176, 177, 178, 179, 180, 188, 189, 193, 196 31 Consolidated Fund, 16, 18, 22, 25, 27, 29, 37, 40, 47,
4 Accounting Officer, 16, 20, 27, 29, 30, 31, 32, 33, 34, 49, 50, 52, 53, 54, 56, 57, 58, 59, 67, 72, 102, 108,
35, 36, 37, 38, 39, 42, 46, 47, 53, 59, 61, 62, 66, 71, 109, 111, 130, 134, 135, 139, 140, 142, 143, 144,
73, 74, 77, 80, 89, 93, 94, 111, 114, 115, 116, 128, 155, 171, 172, 174, 189, 194
132, 134, 154, 159, 166, 167, 169, 179 32 Container Card, 163
5 Advice Slip, 65 33 Contingencies Fund, 25, 29, 42, 50, 53, 54, 57, 127
6 Appropriation Account, 148 34 Contracts Register, 138
7 appropriations-in aid, 66 35 control accounts, 139
8 Appropriations-in-aid, 20, 57, 67, 185 36 Corporate Plan, 22, 45, 46, 105
9 Asset Management, 110 37 Credit Card, 64
10 Audit Committee, 27, 32, 33, 207, 208 38 CTMS
11 Auditor General, 18, 19, 27, 28, 32, 34, 35, 38, 39, 93, Central Treasury Management System, 19, 54, 55, 56,
110, 111, 114, 116, 118, 130, 146, 148, 149, 153, 78, 162, 176, 193
156, 157, 158, 161, 164, 167, 170, 179, 196, 219
D
B 39 Debit Cards, 64
12 Bills of exchange 40 Definitions, 50, 108, 172
Promissory note, 64 41 Destruction of Unused Cheques, 81
13 Breach. See Motor Vehicle Policy 42 Direct Payments, 141, 143
14 Budget Call, 21, 41, 42, 44, 45, 46, 47 43 Donation in Money, 154
44 Donation In-Kind, 155
C
E
15 Cabinet Secretary, 36
16 Cancelled Cheques, 80 45 Electronic Data Capture Machine, 64
17 Capital Budget, 21, 45 46 Externally Funded Projects, 141, 142
18 Cash Book, 66, 134, 138, 139, 141, 198
19 Cash cheques F
Travellers Cheques, 63
20 Central Payment Account, 19, 55, 56, 78, 155, 175, 47 Financial Secretary, 17, 18, 24, 28, 29, 30, 31, 32, 33,
188, 189 36, 37, 38, 39, 41, 42, 44, 46, 48, 49, 50, 52, 53, 54,
21 Certification of Goods Received, 77 55, 58, 60, 61, 63, 66, 67, 68, 70, 71, 72, 74, 79, 83,
22 Chart of Accounts, 46, 47 84, 88, 89, 90, 102, 109, 110, 111, 112, 114, 115,
305
116, 118, 119, 120, 121, 126, 127, 130, 133, 138, 74 Overpayment of Public Funds, 155
139, 140, 146, 147, 148, 149, 153, 156, 157, 158, 75 Overseas Travel, 128
161, 162, 164, 166, 167, 171, 172, 179, 205
48 Financial Year P
Fiscal Year, 44
49 Fixed Asset Register, 137 76 Pay Day, 88
50 Fund Accounts, 139 77 Payment Voucher, 75
51 Furniture and Equipment, 111 78 payroll register, 90
79 Payroll Register, 88, 90
G 80 Pension, 49, 91
81 Period Closed, 147
52 General Consumption Tax, 158, 165, 167, 191 82 petty cash, 72
53 Government Laptop Computers 83 Principal Finance Officer (PFO). See Accountable
Laptops, 168 Officer
54 Government Mobile Telephones, 165 84 Principal Receivers of Revenue, 54, 58, 59, 66, 67, 68,
55 Government Owned Motor Vehicles, 112 70, 132, 133, 134, 140, 149
56 Government Telephone, 164 85 Project Accounts, 141
86 Public Accountability Inspectorate, 33
H PAI, 33
87 Public Accounts Committee, 19, 33, 35, 37
57 Hyperlink Policy, 112 88 Public Administration and Appropriations Committee
PAAC, 28, 33, 35, 41
I 89 Public Investment, 16, 19, 45, 102, 103, 104, 105,
107, 206
58 Implementation Plan, 45 90 Public Investment Management Committee, 45, 102,
59 imprest;, 71 103, 104
60 Improper payments, 78 91 public moneys, 72
61 Individual Credit Cards, 84 92 Public moneys, 67
62 Insurance of Government Property, 110 93 Purchase of Fuel, 162
63 Internal Audit, 32
64
65
Internal Auditors, 32
Investment, 16, 19, 41, 44, 102, 104, 160, 161, 197,
R
209 94 receipt book, 37, 60, 61
66 IPSAS, 19, 42, 132, 171, 172, 174, 175, 188, 193 95 Receipts, 78
67 Irrecoverable Overpayment, 157 96 Records Management, 144
97 Recovery
L Recovery of Overpayment, 39, 46, 91, 94, 156, 157,
158, 165
68 LIABILITY MANAGEMENT, 120 98 Recovery of Debt, 94
99 Recurrent Budget, 25, 45
M 100 Registered mail, 65
101 Relevance, 145
69 Materiality, 146 102 Rentals Register, 138
70 Ministry of the Public Service, 36 103 Revenue Accounting Method, 134
104 Revenue Bank Account, 59
O 105 Role of Certifying Officer, 77
71 of public moneys, 16, 20, 38, 57, 58, 62, 63, 78, 116,
117 S
72 Outstation Accounts, 139 106 Salary in Advance, 94
73 overdraft, 70 107 Special Account, 141
306
108 Special Receipts 120 Trust Funds, 25, 50, 53, 54, 139
General Receipts, 61
109 Stale Cheques, 80 U
110 Statement of Net Revenue, 149
111 Statutory deductions, 91 121 Unauthorised Payment, 78
112 Supplementary Estimates, 22, 25, 37, 42, 47, 119, 122 Understandable, 146
126, 127, 155, 161 123 User Fees, 26, 67
113 Surcharge, 27, 28, 38, 39, 78 124 Utility Register, 138
T V
114 Tax Withholding Entities, 19, 158 125 Value Book, 65, 66
115 The Expenditure and Fund Accounting Method, 134
116 the Project Concept Evaluation, 105 W
117 Theft or Fraud, 116
118 Transport Manager, 113 126 Warrant, 37, 47, 53, 143, 144, 161, 162, 185
119 Travel Register, 138
307