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[F.A.Q.]
Fiji Sessional Legislation |
FIJI ISLANDS
ACT NO. 9 OF 1999
I assent
[L.S.]
K.
K. T. MARA
President
[19 March 1999]
AN
ACT
TO
IMPROVE THE FINANCIAL MANAGEMENT SYSTEM OF THE STATE AND TO ENHANCE THE
FINANCIAL ACCOUNTABILITY OF THE PARLIAMENT, THE CABINET,
MINISTERS, PUBLIC
OFFICERS AND PUBLIC
ENTITIES
ENACTED
by the Parliament of the Fiji Islands-
PART 1 - PRELIMINARY
Short title
1.
This Act may be cited as the Public Finance Management Act 1999.
Commencement
2.(1)
Except as provided in subsections (2) to (4), this Act comes into force on 1st
January 2000.
(2) Parts 1, 2, and
8 (except insofar as it applies to government companies), sections 10, 11, 14 to
17, 20, 22, 30, 32, 33, 35, 37
to 41, 44, 46, 47, 50, 51, 54, 55, 57, 61, 64 to
69, 71, 72, 84, 103, 104, 106 to 108, 113 and 114 and Schedules 1 to 3, 5, 6, 10
and 11 come into force on the day after the date on which this Act is assented
to by the President, except that they do not apply
to require any action by the
Parliament, Cabinet, the Prime Minister, a Minister, a public officer, a public
entity or any other
person in respect of the financial year commencing on 1st
January 1999.
(3) Sections 79 to
83 and 85 and Part 8 (insofar as it applies to government companies) and
Schedule 4 come into force on the day
after the date on which this Act is
assented to by the President, except that a government company is not required
to do anything
required by any of those sections or that Part in respect of any
financial year commencing before
1st
January 2000.
(4) Sections 23 to
29, which relate to strategic policy statements, annual plans and budget
statements, half yearly economic and financial
updates, pre-election economic
and financial updates, Whole of Government annual reports, and Whole of
Government monthly financial
statements, do not apply in respect of the
financial year commencing on
1st
January 2000 or the financial year commencing on
1st
January 2001.
Act binds State
3.
This Act binds the State.
Extraterritorial operation
4.
This Act applies, as far as possible, to-
(a) revenue, expenses, assets and liabilities; and
(b) acts and omissions,
outside
the Fiji Islands.
PART 2 - INTERPRETATION
Definitions
5.
In this Act, unless the context otherwise requires -
"Act" does not include the Constitution;
"annual portfolio plan and estimates" means an annual portfolio plan and estimates prepared under section 37;
"annual portfolio report" means an annual portfolio report prepared under section 39;
"appropriation" means a power given by an Act to a Minister to incur Government expenses, acquire or create Government assets or lend or borrow money on behalf of the State for a particular purpose; and "appropriated" has a corresponding meaning;
"Auditor-General" means the Auditor-General appointed under section 168 of the Constitution;
"board" means -
(a) in relation to a statutory authority that has a board, that board;
(b) in relation to any other statutory authority, the persons who for the time being constitute that authority;
(c) in relation to a government company, the board of directors of that company;
"borrowing" means any borrowing of money or other receipt of credit, whether secured or unsecured, and includes any hire purchase agreement or finance lease, but does not include the purchase of goods or services on credit for a period of 90 days or less or the obtaining of a cash advance for a period of 90 days or less by use of a credit card;
"centralised accounting system" means the centralised accounting system referred to in section 69(b);
"centralised banking system" means the centralised banking system referred to in section 69(d);
"chief executive" means-
(a) in the case of a Ministry or department, the Secretary of that Ministry or department within the meaning of section 110(1) of the Constitution;
(b) in the case of a statutory authority or a government company, the person appointed as chief executive (by whatever name called) by the board of that authority or company;
(c) in the case of the following parliamentary bodies -
(i) the office of the Auditor-General - the Auditor-General;
(ii) the Human Rights Commission and the office of Ombudsman - the person appointed as chief executive of the commission or office;
(iii) the office of Secretary-General to the Parliament - the Secretary-General to the Parliament;
"company" means a company formed and registered under the Companies Act (Cap.247), or an existing company within the meaning of that Act;
"Consolidated Fund" means the fund referred to in section 176(1) of the Constitution;
"constitutional officer" means the holder of each of the following offices, or member of each of the following commissions, as the case may be-
(a) Auditor-General;
(b) Commissioner of Police;
(c) Commission on the Prerogative of Mercy;
(d) Constituency Boundaries Commission;
(e) Constitutional Offices Commission;
(f) Director of Public Prosecutions;
(g) Disciplined Services Commission;
(h) Electoral Commission;
(i) Governor of the Reserve Bank of Fiji;
(j) Human Rights Commission;
(k) Judicial Services Commission;
(l) Ombudsman;
(m) Parliamentary Emoluments Commission;
(n) Public Service Commission;
(o) Secretary-General to the Parliament;
(p) Supervisor of Elections;
"department" means-
(a) each of the entities named in Part 1 of Schedule 2, and any department or agency of the State (other than a Ministry, statutory authority, government company, or parliamentary body) in which the State has a controlling interest; and
(b) in respect of any such entity, department or agency, includes each of its subentities within the meaning of this section and each of the entities specified as subentities in column 2 of Part 1 of Schedule 2 alongside the name of the entity,
but does not include the entities named in column 3 of Schedule 1, in column 3 of Part 1 of Schedule 2 or in Part 2 of Schedule 2;
"entity" means any body (whether corporate or unincorporate) and includes a public entity;
"entity assets", in relation to a public entity, means all assets controlled by that entity for the purpose of producing its outputs, but does not include any assets of the State declared by the Minister for Finance not to be assets of that entity;
"entity expenses", in relation to public entity, means expenses incurred by the entity in producing its outputs or in carrying out any other of its activities, but does not include any expenses of the State declared by the Minister for Finance not to be expenses of the entity;
"entity liabilities", in relation to a public entity, means all liabilities incurred by the entity in respect of its activities, but does not include any liabilities of the State declared by the Minister for Finance not to be liabilities of that entity;
"entity financial transaction" means any financial transaction relating to entity revenue, entity expenses, entity assets or entity liabilities;
"entity revenue", in relation to a public entity, means revenue earned by the entity from the production of outputs (including those delivered to a Purchase Minister) or any other of its activities, but does not include any revenue of the State declared by the Minister for Finance not to be revenue of the entity;
"equity investment" and "equity" means an amount invested in a public entity by an Ownership Minister on behalf of the State;
"fair price" means, in relation to an output -
(a) the amount for which the output would be purchased and sold between knowledgeable and willing parties in an arm's length transaction; or
(b) where an amount cannot be determined under paragraph (a), the cost of producing that output calculated on the basis of a complete allocation of input costs to outputs;
"Finance Instructions" means instructions issued by the Ministry of Finance under section 71;
"financial year" means, in relation to any entity required to report under this Act, year ending on 31st December or such other date as the Cabinet may from time to time determine;
"generally accepted accounting practice" means accounting practice that is generally accepted within the accounting profession in the Fiji Islands and is appropriate for reporting by the Whole of Government, Ministers, or public entities, as the case may be;
"government assets" means all assets of the State other than entity assets; and -
(a) includes the equity investments of the State in public entities; but
(b) does not include assets held by the State as trustee for another person;
"government company" means -
(a) a company specified in Schedule 4 and any other company in which the State has a controlling interest; and
(b) in respect of each such company, includes all subentities of the company within the meaning of this section;
"government entity" means a Ministry, department or statutory authority;
"government expenses" means all expenses incurred by the State other than entity expenses, and includes expenses incurred by Purchase Ministers in purchasing outputs from Ministries, but does not include expenses incurred by the State as trustee for another person;
"government financial transaction" means any financial transaction relating to government revenue, government expenses, government assets or government liabilities;
"government liabilities" means all liabilities of the State other than entity liabilities but does not include liabilities of the State as trustee for another person;
"government revenue" means all revenue earned by the State other than entity revenue, but does not include revenue earned by the State as trustee for another person;
"guarantee" does not include an indemnity;
"input" means any labour, capital or other resource used to produce outputs;
"loan" means any loan of money or other provision of credit, whether secured or unsecured, but does not include the sale of goods or services on credit for a period of 90 days or less; and "lend" has a corresponding meaning;
"Ministry" means-
(a) an entity specified in column 1 of Schedule 1; and
(b) in respect of any such entity, includes each of its subentities within the meaning of this section and each of the entities specified as subentities in column 2 of Schedule 1 alongside the name of the entity;
“net worth” means total assets less total liabilities;
“outcomes” means the impacts on, or the consequences for, the community of the outputs or activities of a public entity or other person;
"outputs" means the goods or services that are produced by a public entity or the person;
"outputs group" and "group of outputs" means a grouping of outputs having a similar nature;
"ownership interest" means, in relation to an entity, a person's interest as an owner in the performance and operational capability of the entity;
"Ownership Minister", in relation to any government asset (including an equity investment in a public entity), means -
(a) the Minister for Finance; or
(b) if another Minister has been designated by the President, on the advice of the Prime Minister, as having the power to manage the State's ownership interest in the asset, that Minister;
"parliamentary body" means -
(a) the office of the Auditor-General;
(b) the office of the Ombudsman;
(c) the Human Rights Commission;
(d) the office of the Secretary-General to the Parliament;
"person" means an entity or individual;
"policy action" means any action or omission by or on behalf of the State for the purpose of achieving outcomes and includes the purchase of outputs, the making of transfers, the making of regulations, the investment of equity in an entity, the purchase or sale of a government asset, and borrowing or lending;
"port folio" means-
(a) in relation to a Purchase Minister, a sectoral or administrative area responsibility for which has been allocated to the Minister by the Prime Minister; and
(b) in relation to an Ownership Minister, the government assets responsibility for which has been allocated to the Minister by the Prime Minister;
“principles of responsible financial management” means the principle set out in section 17(2);
“public entity” means a Ministry, department, statutory authority, parliamentary body or government company;
"public officer" means the holder of a public office within the meaning of the Constitution;
"Purchase Minister" means, subject to section 11(1), a Minister or Assistant Minister who has been designated by the President, on the advice of the Prime Minister, as being responsible for a sectoral or administrative area specified by the Prime Minister;
"State" means the Republic of the Fiji Islands and does not include a statutory authority or government company;
"State bank account" means the bank account referred to in section 21(1);
"statutory authority" means -
(a) an entity specified in Schedule 3; and
(b) in respect of any such entity, includes each of its subentities within the meaning of this section and each of the entities specified as subentities in Schedule 3 alongside the name of the entity;
"subentity", in relation to an entity, means an entity in which the first mentioned entity has a controlling interest;
"transfer payment" means a benefit, subsidy or similar payment for which no consideration is provided;
"trust assets" means assets (including money) transferred or paid to the State or a government entity in trust for any purpose; and includes any such assets (including money) -
(a) to be held pending the completion of a transaction or resolution of a dispute;
(b) that belong or are due to any person and are collected under any agreement with that person;
"trust money" means trust assets consisting of money;
"voting right", in relation to a company, means a right to vote on all matters commonly voted on at an annual general meeting of shareholders of the company;
"Whole of Government” means the. Parliament, the Cabinet, Purchase Ministers, Ownership Ministers and public entities.
Meaning of accounting terms
6.
In this Act, unless the context otherwise requires, the terms
“asset”, “liability”, “revenue”
and
“expense” have the meanings accorded to them by the generally
accepted accounting practice.
Accrual accounting
7.
All financial information required by this Act must be prepared on an accrual
accounting basis and in accordance with generally
accepted accounting
practice.
Meaning of controlling interest
8.
For the purposes of this Act, an entity has a controlling interest in a
subentity if it is able, by virtue of its ownership interest,
to control the
subentity.
Directions and requirements to be complied with
9.
If a direction or requirement is given or made under this Act, the person to
whom the direction is given, or of whom the requirement
is made, must comply
with the direction or requirement.
PART 3 - THE PARLIAMENT
Division 1 - Role and Duties
Role of the Parliament
10.
The role of the Parliament under this Act is to-
(a) review reports and other documents tabled in Parliament in accordance with this Act in relation to the Whole of Government, Purchase Ministers, Ownership Ministers, and public entities;
(b) undertake specified functions in relation to parliamentary bodies;
(c) authorise, by appropriation by Act and in accordance with section 14(3) (provisions relating to appropriations), the financial transactions referred to in section 12(a) to (c) (appropriations required for various transactions);
(d) authorise by resolution the giving of guarantees by the State.
Duties of Speaker
11.(1)
In respect of a parliamentary body, the Speaker is the Purchase
Minister.
(2) Unless the context
otherwise requires, Division 2 of this Part (Appropriations and Authorisations),
Division 1 (Purchase Ministers)
and 3 (Provisions Relating to Purchase and
Ownership Ministers) of Part 5 and Division 5 (Ministry of Finance) of Part 6
apply as
if -
(a) every reference to a Purchase Minister were a reference to the Speaker;
(b) every reference to Cabinet were a reference to the Parliament; and
(c) every reference to a Ministry were a reference to a parliamentary body.
(3)
In the performance of the Speaker's functions under this Act, the Speaker acts
on the advice of a committee of the Parliament
appointed by the Parliament for
the purpose, except that when the Parliament is expired or dissolved, the
Speaker acts in his or
her own judgement.
Division 2: Appropriations and Authorisations
Appropriations required for various transactions
12.
Except as provided in sections 18 and 19 (emergency expenditure, authorisation
in advance of appropriation) -
(a) no government expenses may be incurred;
(b) no government assets may be acquired or created, or loan made, by the State;
(c) no borrowing may be undertaken by the State,
unless
authorised by an appropriation by Act.
Authorisations required for guarantees
13.
Except as provided in section 18 (emergency expenditure), no guarantee may be
given by or on behalf of the State unless -
(a) it has been authorised by a resolution of the House of Representatives; and
(b) it is evidenced in writing signed by the Minister for Finance.
Provisions relating to appropriations
14.
(1) All appropriations must be granted on an accrual accounting
basis.
(2) Appropriations may be
granted only to Ministers.
(3)
Appropriations may be granted only in respect of the following -
(a) the government expenses which may be incurred for each output group by each Purchase Minister;
(b) the government expenses which may be incurred for each category of transfer payment by each Purchase Minister;
(c) each category of any other government expenses which may be incurred by each Purchase Minister;
(d) each category of government expenses which may be incurred by each Ownership Minister;
(e) the amount of each equity investment which may be made by an Ownership Minister;
(f) the capital cost of each acquisition or creation of government assets (other than equity investments) which may be made by a Ownership Minister;
(g) each category of government expenses relating to borrowing or loans which may be incurred by the Minister for Finance;
(h) the amount of each category of loan which may be made by the Minister for Finance on behalf of the State;
(i) the amount which may be borrowed by the Minister for Finance on behalf of the State.
(4)
An amount appropriated in respect of a category, output group, equity investment
or government asset referred to in subsection
(3) may be used only for that
category output group, equity investment or government
asset.
(5) Except to the extent
otherwise provided by any Act, an appropriation lapses at the end of the
financial year to which the Act
by which the appropriation is granted
relates.
(6) All money withdrawn
from the Consolidated Fund or from any other fund referred to in section 176(2)
of the Constitution is, by
virtue of this subsection,
appropriated.
(7) Notwithstanding
section 12 (appropriations required for various transactions), value added tax
payable by a Purchase Minister
or an Ownership Minister in respect of any
category, output group, equity investment or government asset referred to in
subsection
(3) does not require appropriation.
Permanent appropriations
15.-(1)
The component of any output that relates to the salaries and allowances payable
in any financial year to the persons referred
to in sections 83(2) and 183(1) of
the Constitution is, by virtue of this subsection, appropriated as a government
expense.
(2) All expenses relating
to debt charges as defined in section 184(2) of the Constitution are, by virtue
of this subsection, appropriated
as government expenses.
PART 4 - THE CABINET
Division 1 - Role and Duties
Role of Cabinet
16.
Consistent with the Constitution, the role of the Cabinet under this Act is to
-
(a) set the broad outcome priorities for the State;
(b) monitor the achievement of those priorities;
(c) consider policy actions recommended by Purchase Ministers and Ownership Ministers, and oversee the implementation of such of those policy actions as are approved by it;
(d) manage the financial performance and financial positions of the whole of Government in accordance with the principles of responsible financial management set out in section 17 (responsible financial management).
Responsible financial management
17.
(1) All decisions of the Cabinet that have financial implications must be
consistent with the principles of responsible financial
management specified in
subsection (2).
(2) The principles
of responsible financial management are -
(a) the operating balance of the Whole of Government (being operating revenue less operating expenses) should, on average over a 3 year period, not be in deficit;
(b) Whole of Government borrowing should never exceed a prudent amount as defined in subsection (4);
(c) Whole of Government net worth (being total assets less total liabilities) should never be less than a prudent amount as defined in subsection (5);
(d) the financial risks facing the Whole of Government should be managed prudently so as to minimise the likelihood of any such risk resulting in an expense or liability;
(e) the levels of tax rates and tariff rates in future years should be reasonably predictable, and internationally competitive as defined in subsection (6).
(3)
Cabinet decisions may depart from the principles of responsible financial
management if-
(a) the departure is temporary; and
(b) the Cabinet specifies in the relevant document required by this Act -
(i) the reasons for the departure;
(ii) the approach that the Cabinet intends to take in order to return to those principles;
(iii) the period of time that the Cabinet expects to take to return to those principles.
(4)
For the purposes of subsection
(2)(b)
(which relates to borrowing), a prudent amount is the amount arrived at by
multiplying does-
(a) the amount of the nominal gross domestic product of the Fiji Islands; by
(b) the average ratio of total Whole of Government borrowings to nominal gross domestic of the product of the country’s 5 largest trading partners over the preceding 5 years.
(5)
For the purposes of subsection
(2)(c)
(which relates to net worth), a prudent amount is the amount equal to 20% of
total assets (which is equivalent to total liabilities
being 80% of total
assets).
(6) For the purposes of
subsection
(2)(e),
the term "internationally competitive", in relation to tax rates or tariff
rates, means the average tax rates or tariff rates of
the country's 5 largest
trading partners of the Fiji Islands during the preceding 5
years.
Emergency expenditure
18.
(1) If a state of national emergency is declared under the Emergency Powers Act
1998 the Cabinet may approve such government financial transactions to meet the
emergency as it thinks fit, whether or not those transactions
have been
authorised by an appropriation; and those transactions may be entered into
accordingly.
(2) Without affecting
the validity of any government financial transactions entered into under this
section, a statement of such of
those transactions that have not been
appropriated but (apart from this section) are required to be appropriated, must
be included
in the first Whole of Government annual report under section 28
(Whole of Government annual report) and in the first Appropriation
Bill
introduced to the House of Representatives, after those transactions have been
entered into.
Authorisation in advance of appropriation
19.
(1) If an Appropriation Act for a financial year has not come into operation by
the beginning of that year, the Minister for Finance
may, with the approval of
the Cabinet and in accordance with subsection (2), authorise government
financial transactions in advance
of
appropriation.
(2) An
authorisation under subsection (1) must be granted only in respect of, and must
not exceed one third of the amount appropriated
for -
(a) each output group;
(b) each category of transfer payment;
(c) each category of other government expense to be incurred by a Purchase Minister;
(d) each category of government expense to be incurred by an Ownership Minister;
(e) each equity investment to be made by an Ownership Minister;
(f) each acquisition or creation of government assets (other than equity investments) to be made by an ownership Minister;
(g) each category of government expense relating to borrowings or loans to be incurred by the Minister for Finance;
(h) each category of loan to be made by the Minister for Finance on behalf of the State;
(i) the borrowings by the Minister for Finance on behalf of the State, for which appropriation was granted in the preceding financial year.
Role of Prime Minister
20.
Consistent with the Constitution, the role of the Prime Minister under this Act
is to -
(a) formulate and coordinate overall government strategy;
(b) ensure that the strategy is consistently developed and implemented by means of policy actions implemented by Purchase Ministers and Ownership Ministers;
(c) oversee the actions of Purchase Ministers and Ownership Ministers in carrying out their duties under this Act.
State bank account
21.
(1) There is to be a State bank account, which is to be the Consolidated Fund
bank account.
(2) Money received
or paid in respect of government financial transactions must be paid into or out
of the State bank account.
(3)
Trust money, and money received or paid in respect of entity financial
transactions, must not be paid into or out of the State
bank
account.
Division 2 - Budgeting and Forecasts
Budget process
22.
(1) No later than 6 months before the commencement of each financial year, the
Cabinet must arrange for the establishment of a budget
process relating to that
year.
(2) A budget process must
include -
(a) a strategy phase;
(b) a portfolio planning and budgeting phase; and
(c) an entity planning and budgeting phase.
(3)
During the strategy phase the Cabinet must -
(a) determine for the financial year referred to in subsection (1) and the following 2 financial years -
(i) is broad outcome objectives;
(ii) the total operating expenses for the Whole of Government;
(iii) the total net amount of equity investments, withdrawals of equity, acquisition of other government assets, and disposal of other government assets; and
(iv) the portion of the total operating expenses referred to in subparagraph (ii), and of the total net amount referred to in subparagraph (iii), to be allocated to each portfolio of a Purchase Minister or Ownership Minister; and
(b) arrange for the preparation of a strategic policy statement in accordance with section 23 (strategic policy statement) incorporating the information determined under paragraph (a).
(4)
During the portfolio planning and budgeting phase -
(a) each Purchase Minister and Ownership Minister must -
(i) determine the policy actions he or she wishes to recommend to the Cabinet under section 30 (role of Purchase Ministers) or section 33 (role of Ownership Ministers), as the case may be, having regard to the decisions of the Cabinet under subsection (3); and
(ii) recommend those policy actions to the Cabinet;
(b) the Cabinet must consider the policy actions recommended under paragraph (a) and approve those it considers appropriate;
(c) each Purchase Minister and Ownership Minister must prepare an annual portfolio plan and estimates in accordance with section 37 (annual portfolio plan and estimates) incorporating the policy actions approved by the Cabinet; and
(d) the Cabinet must arrange for the preparation of the annual plan and budget statement in accordance with section 24 (annual plan and budget statement) incorporating the above matters.
(5)
During the entity planning and budgeting phase each government entity must
-
(a) negotiate purchase agreements with Purchase Ministers or Ministries, as the case may be, in accordance with section 64 (purchase agreement content); and
(b) prepare an annual corporate plan in accordance with section 65 (annual corporate plan of government entity), which must in each case be consistent with the decisions of its Ownership Minister and any relevant Purchase Minister under subsection (4).
Strategic policy statement
23.
(1) The Cabinet must publish, at least 3 months before the tabling of an annual
plan and budget statement in the House of Representatives,
a strategic policy
statement which must include -
(a) its broad outcome objectives for the next financial year and also for at least the following 2 financial years;
(b) the financial targets for the Whole of Government for the next financial year and also for at least the following 2 financial years, for-
(i) total operating revenue;
(ii) total operating expenses;
(iii) surplus or deficit, being the difference between total operating revenue and total operating expenses;
(iv) total borrowings;
(v) net worth; and
(vi) net cash flows for each of its operating, investing and financing activities;
(c) an explanation of how those financial targets accord with the principles of responsible financial management and, if those targets depart from those principles, the information required by section 17(3) (responsible financial management).
(2)
The Prime Minister must, not later than 3 sitting days after the date of
publication of a strategic policy statement under subsection
(1), table a copy
of the statement in House of Representatives.
Annual plan and budget statement
24.
(1) No later than
30th
November in each year the Minister for Finance must table in the House of
Representatives an annual plan and budget statement for
the next financial year
which has been approved by the
Cabinet.
(2) An annual plan and
budget statement for a financial year must be tabled under subsection (1) at the
same time as the first Appropriation
Bill for that year is introduced in the
House of Representatives.
(3) The
annual plan and budget statement must include -
(a) a summary of the outcomes that the Cabinet is seeking to achieve in that financial year;
(b) a summary of the outputs or other financial policy actions that the Cabinet is planning to implement in that financial year, together with a summary of any new policy actions to be achieved by means of any law;
(c) economic forecasts for that financial year and for the next 2 financial years, which must contain the information set out in Schedule 5 (economic forecasts);
(d) financial forecasts for the financial year and for the next 2 financial years which must contain the statements and information set out in Schedule 6 (forecast financial statements);
(e) a statement specifying the day on which those economic and financial forecasts were finalised; and
(f) an explanation of how those financial forecasts accord with -
(i) the financial targets contained in the most recently published strategic policy statement;
(ii) the principles of responsible financial management and, if those forecasts depart from those principles, the information required by section 17(3) (responsible financial management).
(4)
An annual plan and budget statement tabled under this section is the annual
budget required by section 180 of the Constitution.
Half year economic and financial update
25.
(1) No later than
30th
June in each year the Minister for Finance must, on behalf of the Cabinet,
publish a half year economic and financial
update.
(2) The half year economic
and financial update for a financial year must include the information referred
to in section 24(3)
(c)
to
(f)
(annual plan and budget statement) updated as
appropriate.
(3) A half year
economic and financial update is not required for a year if a pre-election
economic and financial update has been
published in accordance with section 26
(pre-election economic and financial update) during the months of April, May or
June in that
year.
(4) The
Minister for Finance must, not later than 3 sitting days after the date of
publication of a half year economic and financial
update, table a copy of the
update in the House of Representatives.
Pre-election economic and financial update
26.
(1) No later than one month before a general election, the Minister for Finance
must, on behalf of the Cabinet, publish a pre-election
economic and financial
update.
(2) A pre-election
economic and financial update must include the information referred to in
section 24 (3) (c)
to
(f)
(annual plan and budget statement) update
as appropriate.
(3)
A pre-election economic and financial update is not required if an annual plan
and budget statement or a half year economic and
financial update has been
published during the 3 months before the date of the general
election.
(4) The Minister for
Finance must, not later than 3 sitting days after the date of publication of a
pre-election economic and financial
update, table a copy of the update in the
House of
Representatives.
Information to be included in forecasts
27.
(1) Every economic forecast and financial forecast required by any of sections
24 to 26 (annual plan and budget statement, half
year and pre-election economic
and financial updates) must include as far as practicable the economic and
financial impact of all
relevant Cabinet decisions and other circumstances that
may have a material effect on the
forecast.
(2) Subsection (1) does
not apply to the extent that the Minister for Finance determines that compliance
with that subsection will
be likely to -
(a) significantly prejudice the economic interests of the Fiji Islands;
(b) prejudice the security or defence of the State or the international relations of the State;
(c) significantly compromise the State in any negotiation, litigation, or commercial activity; or
(d) result in a significant financial loss to the State.
Division 3 - Reporting
Whole of Government annual report
28.
(1) No later than 4 months after the end of each financial year, the Cabinet
must publish an annual report for the Whole of Government
for that financial
year.
(2) The annual report for a
financial year must include -
(a) a summary of the outcomes that the Cabinet was seeking to achieve in that year;
(b) a summary of the outputs or other financial policy actions that the Cabinet implemented in that year, together with a summary of any new policy actions achieved by means of any law;
(c) audited financial statements for that year which must -
(i) be prepared on a basis consistent with the forecast financial statements in the annual plan and budget statement for that year; and
(ii) contain the statements and information specify in Schedule 7 (annual financial statements).
(3)
The financial statements referred to in subsection (2) must be prepared within 3
months of the end of the financial year and submitted
to the Auditor-General for
auditing, and the Auditor-General must express an opinion within 1 month of
receipt of the financial
statements.
(4) The Prime Minister
must, not later than 3 sitting days after the date of publication of an annual
report, table the annual report
in the House of Representatives.
Whole of Government monthly financial statements
29.
(1) The Minister for Finance must, within 45 days of the end of each month,
publish Whole of Government monthly financial statements
for that
month.
(2) Whole of Government
monthly financial statements must include the statements and information
specified in Schedule 8 (monthly
financial
statements).
(3) The Minister for
Finance must, not later than 3 sitting days after the date of publication of any
Whole of Government monthly
financial statements, table those statements in the
House of Representatives.
PART 5 - MINISTERS
Division 1 - Purchase Ministers
Role of Purchase Ministers
30.
The role of a Purchase Minister is to -
(a) recommend to Cabinet policy actions by or on behalf of the State, the purpose of which is to promote the outcomes sought by the Cabinet in relation to the Minister's portfolio; and
(b) ensure the implementation of such of those policy actions as are approved by the Cabinet.
Appropriations to Purchase Ministers
31.
(1) Unless authorised by an appropriation, a Purchase Minister may not purchase
any output, authorise any transfer payment, or otherwise
incur any government
expense.
(2) Notwithstanding
section 14(3) (provisions relating to appropriations), a Purchase Minister may,
in respect of any financial year
and portfolio, reallocate appropriated amounts
among output groups, categories of transfer payment, and categories of other
government
expenses so long as the total amount reallocated in that portfolio
does not exceed 10% of the total amount appropriated for that
portfolio.
Purchase of outputs
32.
(1) Each Purchase Minister must -
(a) purchase all outputs required by him or her from one or more Ministries by means of one or more purchase agreements for each financial year;
(b) pay a fair price for those outputs;
(c) monitor the delivery of, and where appropriate authorise payment for, those outputs.
(2)
Each purchase agreement must include such of the following information as is
applicable-
(a) a description of each output to be purchased;
(b) the quantity of each output to be purchased;
(c) the quality of each output to be purchased;
(d) the delivery dates for each output to be purchased;
(e) the place of delivery of each output to be purchased;
(f) the price to be paid for each output to be purchased;
(g) the evidence of delivery to be provided for each output to be purchased; and
(h) the invoice dates for each output to be purchased, and the payment schedule.
Division 2 - Ownership Ministers
Role of Ownership Ministers
33.
The role of an Ownership Minister is to -
(a) oversee the State's ownership interests in government assets in the Minister's portfolio;
(b) recommend to the Cabinet policy actions by or on behalf of the State relating to government assets, the purpose of which is to promote outcomes sought by the Cabinet in relation to that portfolio; and
(c) ensure the implementation of such of those policy actions as are approved by the Cabinet.
Appropriations to Ownership Ministers
34.
Unless authorised by an appropriation, an
Ownership Minister may not incur any government expense, make any equity
investment, or
acquire or create any government asset.
Ownership performance
35.
An Ownership Minister must -
(a) by means of an annual corporate plan for the entity for a financial year, agree with each public entity in his or her portfolio -
(i) the amount of any equity investment or withdrawal of equity by State in or from the entity; and
(ii) the levels of ownership performance to be achieved by that entity in that financial year;
(b) monitor the performance of the entity during that financial year against that annual corporate plan; and
(c) to the extent that he or she wishes to purchase outputs in relation to his or her duties as an Ownership Minister, do so in accordance with section 32 (purchase of outputs).
Ownership Minister's power to direct
36.
(1) An Ownership Minister may from time to time, by written notice to a
government entity or parliamentary body in the Minister's
portfolio, give the
entity a direction that the Minister considers necessary to protect the State's
ownership interest the entity.
(2)
The Minister may not give a direction under subsection (1) that prohibit a
government entity or parliamentary body from exercising
the powers under section
59(2) (powers of government entities) unless the Minister is satisfied that
-
(a) the entity has consistently failed to comply with the requirements of section 58 (permitted activities of government entities) or section 59 (powers of government entities) and has given notice to the entity -
(i) specifying the respects in which the entity has failed to so comply; and
(ii) stating that he or she intends to give such a direction if the entity continues to fail to so comply during the next 3 months; and
(b) the entity has continued to consistently fail to comply with the requirement of section 58 (permitted activities of government entities) or section 59 (powers of government entities) following the receipt by the entity of the notice under paragraph (a).
(3)
Subsection (2) does not apply in respect of a direction if the Ownership
Minister considers it necessary to give the direction
in order to avoid or
reduce a serious loss to the State or avoid or reduce criminal
activity.
(4) Before giving a direction under subsection (1), other than a direction to which subsection (2) applies, an Ownership Minister must consult entity or parliamentary body on it.
Division 3 - Provisions Relating to Purchase and Ownership Ministers
Annual portfolio plan and estimates
37.
(1) Each Purchase Minister or Ownership Minister is responsible for the
preparation of an annual portfolio plan and estimates for
each of his or her
portfolios for each financial
year.
(2) The annual portfolio
plans and estimates of each Purchase Minister and Ownership Minister for a
financial year must be tabled
in the House of Representatives at the same time
as the first Appropriation Bill for that financial year is introduced in the
House
in accordance with section 24 (annual plan and budget
statement).
(3) An annual
portfolio plan and estimates for a financial year must include -
(a) a description of the outcomes that the Minister is seeking to achieve in that portfolio and year;
(b) a summary of the policy actions selected to promote those outcomes;
(c) in the case of a Purchase Minister -
(i) a description of each output group to be purchased by the Minister during the year including, for each output group, full details of the quantity, quality, price to be paid, time and location of delivery of the outputs;
(ii) a description of each category of transfer payment to be made by the Minister during the year; and
(iii) a description of each category of other government expenses to be incurred by the Minister during the year;
(d) in the case of an Ownership Minister, details of -
(i) each category of government expenses to be incurred by the Minister during the year;
(ii) each equity investment or withdrawal of equity to be made in or from any public entity; and
(iii) each acquisition, creation or disposal to be made or undertaken of any other government asset,
in the Minister's portfolio;
(e) forecast financial statements for the year, which must -
(i) be consistent with the annual plan and budget statement for the financial year concerned;
(ii) contain, in respect of all government financial transactions which relate to the Minister's portfolio, the statements and information specified in Schedule 6 (forecast financial statements);
(f) the amount of each appropriation requested by the Minister for the year.
Supplementary portfolio plan and estimates
38.
(1) If a Purchase Minister or Ownership Minister wishes to request
appropriations for a financial year in addition to those already
granted for
that year, he or she must prepare a supplementary portfolio plan and estimates
for the relevant portfolio and
year.
(2) Each supplementary
portfolio plan and estimates must be tabled in the House of Representatives at
the same time as the relevant
Appropriation Bill is introduced in the
House.
(3) Each supplementary
portfolio plan and estimates for a financial year must include -
(a) the information referred to in section 37(3) (annual portfolio plan and estimates) to the extent that it differs from that in the annual portfolio plan and estimates for that portfolio and year, and an explanation of the differences;
(b) in respect of each additional appropriation, the amount of the original appropriation, the adjustment, and the new total amount of that appropriation.
Annual portfolio report
39.
(1) Each Purchase Minister and Ownership Minister is responsible for the
preparation of an annual portfolio report for each of his
or her portfolios for
each financial year, and must publish the report within 3 months of the end of
the year.
(2) An annual portfolio
report for a financial year must include -
(a) a description of the outcomes that the Minister was seeking to achieve that year;
(b) a summary of the policy actions selected, and of those used, to promote those outcomes;
(c) audited financial statements for the year, which must -
(i) be prepared on a basis consistent with the forecast financial statements in the annual portfolio plan and estimates for the year; and
(ii) include, in respect of all government financial transactions which relate to the Minister’s portfolio, the statements and information specify in Schedule 7 ( annual financial statements);
(d) in the case of a Purchase Minister, details of any reallocations of appropriations by the Minister under section 31(2) (appropriations to Purchase Ministers);
(e) the amounts of appropriations used by the Minister, and a comparison against the amounts of appropriations granted to the Minister by Parliament (adjusted for any reallocations detailed under paragraph (d)), for that year.
(3)
The financial statements referred to in subsection (2)
(c)
must be prepared within 2 months of the end of the financial year and submitted
to the Auditor-General for auditing, and the Auditor-General
must express an
opinion within 1 month of receipt of the financial
statements.
(4) Each Purchase
Minister or Ownership Minister must, not later than 3 sitting days after the
date of publication of a report under
subsection (1), table a copy of the report
in the House of Representatives.
Power of Minister to obtain information
40.
(1) Any Purchase Minister or Ownership
Minister may from time to time require any public entity to provide to him or
her any information
he or she considers necessary to enable the preparation of
an annual portfolio plan and estimates, a supplementary portfolio plan
and
estimates, or an annual portfolio
report.
(2) A requirement under
subsection (1) must -
(a) be in writing; and
(b) specify the date by which, and the manner in which, the information is to be provided.
Powers of Ministers in relation to constitutional officers
41.
Subject to section 68 (application of Act to constitutional officers), this Act
applies to constitutional officers, and a Purchase
Minister or Ownership
Minister may exercise his or her powers under this Act
accordingly.
Division 4 - Minister for Finance
Responsibilities for borrowing and lending
42.
In addition to any other duties he or she may have, the Minister for Finance
may, on behalf of the State-
(a) borrow money;
(b) make a loan;
(c) give a guarantee or indemnity;
(d) enter into any financial transaction or financial obligation for the purpose of avoiding or reducing the effect on government assets, government liabilities, government revenue, or government expenses of currency or interest rate fluctuations,
on
such terms and conditions as he or she thinks fit and whether within or outside
the Fiji Islands.
Restrictions on borrowing and lending
43.
(1) No person other than the Minister for Finance may enter into any transaction
of a kind referred to in section 42 (responsibilities
for borrowing and
lending).
(2) The Minister for
Finance may not -
(a) enter into any transaction of a kind referred to in section 42 (responsibilities for borrowing and lending) unless the transaction is consistent with the statements of borrowing and lending included in the financial forecasts included in the relevant annual plan and budget statement;
(b) borrow money or make a loan, unless the borrowing or loan has been authorised by an appropriation;
(c) give a guarantee, unless the guarantee has been authorised by resolution of the House of Representatives.
(3)
The Minister for Finance may not delegate his or her powers under section 42
(responsibilities for borrowing and lending).
Requests for appropriations for borrowing or lending
44.
(1) The Minister for Finance must table in the House of Representatives, at the
same time as the first Appropriation Bill for a
financial year is introduced in
the House in accordance with section 24 (annual plan and budget statement), a
statement of the appropriations
requested by the Minister for borrowing and
lending on behalf of the State or for government expenses relating to borrowing
or lending.
(2) The statement
referred to in subsection (1) must -
(a) state the amounts of the appropriations requested;
(b) be consistent with the statements of borrowing and lending included in the financial forecasts included in the annual plan and budget statement.
(3)
If the Minister for Finance wishes to request appropriations for borrowing or
lending or for government expenses relating to borrowing
or lending for a
financial year in addition to those already granted for that year, he or she
must prepare a supplementary statement
of appropriations, which must
-
(a) be tabled in the House of Representatives at the same time as the Appropriation Bill is introduced in the House;
(b) in respect of each additional appropriation, state the amount of the original appropriation, the adjustment, and the new total amount of that appropriation.
Provisions relating to borrowing
45.
Without limiting section 42 (responsibilities for borrowing and lending) the
Minister for Finance may, on behalf of the State, arrange
for the issue of Fiji
Islands stock, estate duty stock, debentures and Treasury bills in accordance
with Schedule 9 (provisions relating
to borrowing).
PART 6 - MINISTRIES, DEPARTMENTS, STATUTORY AUTHORITIES AND PARLIAMENTARY BODIES
Division 1 - Ministries
Role of Ministries