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[F.A.Q.]
Kiribati Consolidated Legislation |
Commencement: 29 December 1976
THE
LAWS OF KIRIBATI
REVISED EDITION
1980
CHAPTER 79
PUBLIC FINANCE (CONTROL AND AUDIT)
ARRANGEMENT OF SECTIONS
Section
PART I
PRELIMINARY
1. Short title
2. Interpretation
PART II
PUBLIC FINANCE
The Consolidated Fund
3. Consolidated Fund moneys to be kept with specified
banks
4. Revenues and other moneys to be paid into Consolidated Fund
5.
Payments
6. Investments of moneys
7. Advances
8. Moneys issued but not
spent to be repaid to the Consolidated Fund
9. Contingencies Warrants
Other Public Funds
10. Development Fund
11. Operation of the Development
Fund
12. Special Funds
13. Management of Special Funds
PART III
CONTROL AND MANAGEMENT OF PUBLIC FINANCE
Control by the Minister
14. Duties of Minister
15. Duties of Chief
Accountant
16. Accounting officers and accountable officers to obey
regulations and directions
Control of Expenditure
17. Accounting officers
18. Disbursement of and
accounting for expenditure on the Consolidated Fund services
19. Power to
make regulations and give directions
20. Saving in relation to trusts
General
21. Existing investments to be part of Consolidated
Fund
22. Restrictions on borrowing
23. Reallocations within Heads of
Expenditure
PART IV
DEPOSITS
24. Deposits
25. Investment of deposits
26. Deposits
may be used to finance advances
27. Unclaimed deposits
28. Chief
Accountant to administer deposits and make refunds
PART V
POWERS AND DUTIES OF THE DIRECTOR OF AUDIT
29. Duties of Director of Audit
30. Powers of Director
of Audit
31. Powers of Director of Audit not subject to direction
32.
Director of Audit not to be required to undertake pre-audit or nay duties
incompatible with his office
33. Staff and delegation of functions
34.
Examination of accounts of expenditure
35. Defective vouchers may be admitted
and allowed
36. Vouchers which are lost, destroyed or not allowed under
section 31
37. Examination of accounts of receipts of revenue
38.
Examination of any other accounts
39. Examination of stores accounts
PART VI
THE AUDIT AND EXAMINATION OF PUBLIC ACCOUNTS
40. Annual accounts
41. Notification of irregularities
to Chief Accountant
PART VII
EXAMINATION AND AUDIT OF THE ACCOUNTS OF STATUTORY CORPORATIONS, BOARDS, COMMISSIONS AND BODIES
42. Preparation and examination of trading accounts,
etc.
43. Minister to obtain observations on report of Director of
Audit
44. Audit fees to be charged
PART VIII
ABANDONMENT OF CLAIMS, ETC., AND WRITE-OFF OF PUBLIC MONEYS AND STORES
45. Abandonment of claims, etc., and write-off of public
moneys and stores
46. Disposal of serviceable stores or property to certain
organizations
SCHEDULES
-------------------------------------
An Ordinance to provide
for the control and management of the Consolidated Fund and public finances of
Kiribati, for the collection,
issue and payment of public moneys, for the audit
and examination of public accounts and of the accounts of statutory bodies, and
for other purposes connected therewith and incidental thereto.
18 of 1976
L.N. 5/80
Commencement: 29 December 1976
PART I
PRELIMINARY
Short title
1.
This Ordinance may be cited as the Public Finance (Control and Audit)
Ordinance.
Interpretation
2.
In this Ordinance unless the context otherwise requires -
"accountable officer" means any public officer, including an accounting officer, concerned in or responsible for the collection, receipt, custody, issue or payment of public moneys, stores, stamps, investments, securities or negotiable instruments whether the same are the property of the Republic or on deposit with or entrusted to the Republic or to any public officer in his official capacity either alone or jointly with any other public officer or any other person;
"accounting officer" means any public officer appointed under the provisions of this Ordinance and charged with the duty of the accounting for any service in respect of which moneys have been appropriated;
"Crown Agents" means the Crown Agents for Overseas Governments and Administrations;
"Head of Expenditure" or "Heads" means the total sum applied to and appropriated for any purpose specified therein by an Appropriation Ordinance or by a Supplementary Appropriation Ordinance;
"public moneys" include -
(a) all revenue or other moneys raised or received for the purposes of the Government;
(b) any other moneys or funds held, whether temporarily or otherwise, by any public officer in his official capacity either alone or jointly with any other person, whether a public officer or not;
"public officer" means a person employed for a salary or wages in the public service;
"public store" means all chattels of whatsoever nature the property of the Republic or in the possession of or under the control of the Government.
PART II
PUBLIC FINANCE
The Consolidated Fund
Consolidated Fund moneys to be kept with specified banks
3. All sums
accounted for in the Consolidated Fund shall be kept with such bank or banks as
the Minister shall from time to time determine:
Provided that this
section shall not apply to moneys invested under the provisions of section
6.
Revenue and other moneys to be paid
into Consolidated Fund
4.
(1) Subject to section 11 all revenues and other moneys raised or received for
the purpose of the Government shall be paid into the
Consolidated
Fund.
(2) For the avoidance of doubt it is hereby declared that the
reference to moneys raised or received for the purpose of the Government
does
not include moneys received on deposit.
Payments
5. (1) The
Minister shall authorise the Chief Accountant from time to time on his
requisition, if satisfied of the correctness thereof,
to issue from the
Consolidation Fund the sums falling due for payment during the financial year
for statutory expenditure.
(2) On the coming into operation of an
Appropriation Ordinance or a Supplementary Appropriation Ordinance the Minister
shall authorise
the Chief Accountant by General Warrant under his hand to issue
from the Consolidated Fund such sums as may have been applied to
the service of
the financial year by any such Appropriation Ordinances.
(3)
Notwithstanding the issue of a General Warrant, it shall be within the
discretion of the Minister to limit or suspend at any time
any expenditure (not
being statutory expenditure) with or without cancellation of the Warrant if in
his opinion financial exigencies
or the public interest so require.
Investment of moneys
6. (1) The
Minister may authorise the investment of moneys forming part of the Consolidated
Fund with a bank either at call or subject
to notice not exceeding 12 months or
with the joint Consolidation Fund administered by the Crown Agents or in the
hands of trustees
by any law for the time being in force.
(2) All
investments made under this section together with any interest received
therefrom shall form part of the Consolidated
Fund.
Advances
7.
(1) Subject to this section, the Minister may, by Advances Warrant under his
hand, authorise the Chief Accountant to make disbursements
of moneys forming
part of the Consolidated Fund or of other public moneys for the purpose of
making advances -
(a) on behalf of, and recoverable from other Governments;
(b) to, or on account of, any Special Fund where such advances are recoverable before the close of the financial year in which such advances are made;
(c) to public officers for such purposes and on such terms and conditions as may be prescribed from time to time;
(d) to meet expenditure authorised by a Loan Ordinance in anticipation of the receipt of any instalment of the loan authorised by such Ordinance;
(e) in accordance with a specified agreement, to agents appointed by the Government to perform functions on its behalf;
(f) for such other purposes and subject to such terms and conditions as the Minister may from time to time approve.
(2) The total of the sums issued and
disbursed for the purpose of making advances shall not exceed in aggregate at
any one time after
deducting repayments an amount of $500,000.
Moneys issued but not spent to be repaid to the Consolidated Fund
8. Every
appropriation by the Maneaba ni Maungatabu of public moneys for the service of
any financial year shall lapse and cease to
have any effect at the close of that
financial year, and any moneys issued from the Consolidated Fund but not spent
shall be repaid
to the Consolidated Fund.
Contingencies Warrants
9. (1) The
provisions of this section take effect for the purposes of section 109 (4) of
the Constitution.
(2) Upon being satisfied that due to exceptional
circumstances which could not have been foreseen an urgent need for expenditure
has
arisen -
(a) for which no provision exists or for which the existing provision is insufficient; and
(b) for which funds cannot be provided under section 23; and
(c) which cannot be deferred without detriment to the public interest;
the Minister
may by a Contingencies Warrant under his hand and in anticipation of the grant
of an appropriation by the Maneaba ni
Maungatabu authorise an advance from the
Consolidated Fund to meet that need and shall, forthwith, report his action and
the reasons
therefor to the Cabinet:
Provided that the total of the sums
so authorised to be advanced in anticipation of the grant of an appropriation
shall not exceed
at any one time an amount of $250,000.
(3) Where any
advance is made from the Consolidated Fund under the provisions of this section
a supplementary estimate of the sum
required for the service for which such
advance was made shall be presented to the Maneaba ni Maungatabu at its sitting
next following
the date on which the Contingencies Warrant was issued and shall
be included in a Supplementary Appropriation bill for appropriation.
(4)
Upon the grant of an appropriation to meet the expenditure in respect of which
an advance was made from the Consolidated Fund,
the Contingencies Warrant
authorising such advance shall cease to have effect and the advance shall be
deemed to have been made for
the purpose of the grant and shall be accounted for
accordingly.
Other Public Funds
Development
Fund
10. (1) The
Development Fund shall consist of the following moneys -
(a) such moneys as may be appropriated by law for the purpose of the Development Fund;
(b) moneys received from any other government, body or person as grants made to the Government for development purposes;
(c) Moneys received from the proceeds of loans raised for development purposes by or on behalf of the Government;
(d) Moneys received by way of interest or dividend on any investment or loan of any moneys belonging to the Development Fund;
(e) moneys earned by or received in reimbursement of any project financed wholly or in part from the Development Fund:
Provided that the moneys referred to in
paragraph (b),
(d) or
(e) may in any case be paid into the
Consolidated Fund or such other public fund as the Minister may in each case
designate.
(2) The Development Fund is a Special
Fund.
Operation of the Development
Fund
Schedule 2
11.
(1) The Development Fund shall be operated in accordance with the Rules set out
in Schedule 2.
(2) The Beretitenti, acting in accordance with the advice
of the Cabinet, may by order amend the Rules set out in Schedule 2.
(3)
The Minister shall cause a copy of every order made under subsection (2) to be
laid before the Maneaba ni Maungatabu at its sitting
next following the date on
which the order comes into operation.
(4) Subject to the provisions of
this section and of any other law for the time being in force moneys forming
part of the Development
Fund which are not required for immediate use for
development purposes may be invested in like manner to that permitted by section
6 in respect of the Consolidated Fund.
(5) All investments made under
subsection (4) shall form part of the Development
Fund.
Special Funds
Schedule
1
12. The Special Funds set out
in Schedule 1 shall be deemed to have been established by law and the balance
standing to the credit of
each such Special Fund at the close of account on the
coming into operation of this Ordinance shall be deemed to have been
appropriated
by the Maneaba ni Maungatabu to the purposes specified in respect
of each such Special Fund.
Management
of Special Funds
13. (1) Whenever financial provisions for the
establishment of Special Funds is made in accordance with section 107 (2) of the
Constitution,
the Chief Accountant shall establish Special Funds to which moneys
appropriated shall be credited and from which moneys may be expended
for the
purposes for which the Special Funds were established.
(2) The Minister
shall, subject to the provisions of this section, have the management of Special
Funds establish or deemed to have
been established in accordance with section 12
and for such purposes may -
(a) authorise the investment of moneys standing to the credit of Special Funds in a manner authorised for the investment of property in the hands of trustees by any law for the time being in force;
(b) direct that any Special Fund shall be wound up;
(c) make rules subject to the approval of the Maneaba ni Maungatabu for the control and operation of Special Funds.
(3) Where the Minister directs that any
Special Fund shall be wound up, after all liabilities of such fund have been
paid, the Fund
shall be closed accordingly and the balance of moneys standing to
the credit of such Fund shall be paid into the Consolidated Fund.
PART III
CONTROL AND MANAGEMENT OF PUBLIC FINANCE
Control by the Minister
Duties of
Minister
14. (1) The
Minister shall so supervise the finances of the Government as to ensure that a
full account is made to the Maneaba ni Maungatabu
and for such purpose shall,
subject to the provisions of this Ordinance, have the management of the
Consolidated Fund, the Development
Fund and Special Funds and the supervision,
control and direction of all matters relating to the financial affairs of the
Government.
(2) In the discharge of the duties imposed upon him by
subsection (1) the Minister -
(a) shall take all proper steps to ensure that any regulations made or directions and instructions given pursuant to the provisions of section 19 are brought to the notice of all persons directly affected thereby but subject as aforesaid and notwithstanding the Gazette;
Cap. 46
(b) shall be entitled to inspect all offices and shall be given access at all times thereto and shall be given all available information he may require with regard to the moneys and property specified in section 16 and to all documents and records in respect thereof so far as may be necessary for the purpose of compliance with subsection (1).
(3) The Minister may delegate
by writing under his hands all or any of the powers conferred upon
him.
Duties of Chief
Accountant
15. The Chief
Accountant, in the discharge of his duties as the officer charged with the
management and operation of the Government's
accounting organisation and central
treasury, and without prejudice to the generality of those duties and the powers
of the Minister
under section 14 to direct him, shall -
(i) ensure the maintenance of a system that brings promptly and properly to account all moneys received and paid by the Government;
(ii) refuse payment on any voucher wrong or insufficient in content, or that contravenes any regulations, directions or instructions properly made or given under this or any other Ordinance for the management of public moneys, or that is in his opinion in any other way unacceptable as a charge on the public moneys;
(iii) report to the Minister in writing any apparent defect in department control of revenue, expenditure, cash, stamps and other property of the Republic that may be brought to his notice;
(iv) ensure, in so far as it is practicable, that adequate provision is made for the safe custody of public moneys and stamps and the control of property of the Republic.
Accounting officers and accountable officers to obey regulations and directions
16.
Every accounting officer and every accountable officer shall obey all
regulations made and directions or instructions given under
sections 14 and 19
and all instructions that may from time to time be issued by the Chief
Accountant in respect of the custody and
handling of and the accounting for
public moneys, public stores, stamps, investments, securities or negotiable
instruments whether
the property of the Republic or on deposit with or entrusted
to the republic or to any public officer in his official capacity either
alone
or jointly with any other public officer or any other person.
Control of Expenditure
Accounting
officers
17. (1) An
accounting officer shall be appointed in respect of each Head of Expenditure for
each financial year to control and account
for the expenditure of moneys applied
to that Head by any Appropriation Ordinance.
(2) An accounting officer
shall be personally accountable for all public moneys received, collected or
disbursed and for all public
stores received, held or disposed of by or an
account of the department or service for which the Head for which he is the
accounting
officer is provided.
(3) An accounting officer may, and shall
if so required by the Minister, define in writing the extent to which the powers
and duties
conferred or imposed upon him may be exercised or performed on his
behalf by any public officer under his control and give such directions
as may
be necessary to secure the proper exercise or performance of such powers and
duties.
Disbursement of and accounting
for expenditure on the Consolidated Fund
services
18. (1) In this
section the expression "Consolidated Fund services" means the services of
Government the expense of which is charged
on or payable from the Consolidated
Fund under or by virtue of any law other than the Appropriation Ordinance, but
including this
Ordinance.
(2) Subject to section 5, the disbursement of
moneys provided in any financial year to meet expenditure on the Consolidated
Fund services
shall be controlled and accounted for by the Chief
Accountant.
Power to make regulations
and give directions
19.
The Beretitenti, acting in accordance with the advise of the Cabinet, may make
regulations and, subject to the regulations, the Minister
may give such
directions and instructions as may appear to him to be necessary or expedient
for carrying out the intent and purposes
of this Ordinance and for the safety,
economy and advantage of the public revenue and public property:
Provided
that such regulations, directions and instructions as are in force for like
purposes at the coming into operation of this
Ordinance shall continue in force
so far as they are applicable until superseded or cancelled by regulations,
directions or instructions
made or given under this
section.
Saving in relation to
trust
20. Nothing in this
Ordinance shall extend to abridge or alter the terms of any trust or shall be
construed as authorising the making
of any regulations or the giving of any
directions or instructions requiring any person to obey such regulations,
directions or instructions
in relation to moneys held on trust which contravene
or are inconsistent with the terms of such trust.
General
Existing investments to
be part of Consolidated Fund
Schedule
1
21. All investments held by or
on behalf of the Republic on the date of coming into operation of this Ordinance
shall, is the same is
not held on the account of the Special Funds set out in
Schedule be deemed to have been made out of moneys issued from the Consolidated
Fund and shall be deemed to form part of the Fund and, notwithstanding that such
investments are not such as may be made under section
6, may be
retained.
Restrictions on
Borrowing
22. (1) The
Republic shall not borrow money except in accordance with the provisions of a
written law.
(2) The powers conferred by any general or specific Loans
Ordinance or by an Appropriation Ordinance to borrow money by means of advances
from a bank or from the Crown Agents may be exercised by means of fluctuating
overdraft or by borrowing on loan account and in any
case either upon the
security of assets charged or against a guarantee or unsecured.
(3)
Except as otherwise provided by or under any other law for the time being in
force any money borrowed by the Republic shall be
paid into and form part of the
Consolidated Fund or such other public fund as the Minister may in each case
designate and shall be
available in any matter in which the Consolidated Fund or
such other public fund, as the case may be is available.
(4) An account
set up by an advance made in accordance with a specific agreement under section
7(1) (e) may be overdrawn in
accordance with that agreement but shall be promptly reimbursed by the Chief
Accountant.
(5) Except as otherwise provided by or under any other law
for the time being in force the principle money and all interest and other
charges on any money borrowed by the government, and the interest upon any
account overdrawn under subsection (4), shall be charged
upon and paid out of
the Consolidated Fund or such other public fund of Kiribati as the Minister may
in each case designate without
further appropriation than this
Ordinance.
Reallocations within Heads
of Expenditure
23. (1) If
in the opinion of the Minister the exigencies of the public service render it
necessary or expedient to vary the sum assigned
to any purpose within any head
of expenditure shown in the estimates of expenditure for any financial year, or
to make provision
for a new purpose within such head, he may direct by means of
a Virement Warrant under his hand that there shall be applied in aid
of any
purpose for which the sum assigned may be deficient or in aid of any new purpose
a further sum out of any surplus arising
on any sum assigned to any other
purpose within the same head:
Provided that -
(i) the sum appropriated to any head by the Appropriation Ordinance and by any Supplementary Appropriation Ordinance is not thereby exceeded; and
(ii) any new purpose to which any sum is assigned shall be within the ambit of the relevant head.
(2) Any Virement Warrant
issued under subsection (1) shall be laid before the Maneaba ni Maungatabu at
its sitting next following
the date on which such Virement Warrant was
signed.
(3) Nothing in this section shall be construed as permitting the
avoidance of any financial regulations which may for the time being
be in force
governing issues from funds of the United Kingdom.
PART IV
DEPOSITS
Deposits
24.
Any moneys, not being money raised or received for the purposes of the
Government which may be deposited with the Chief Accountant
or with any other
public officer authorised by the Chief Accountant or by regulations made under
this Ordinance to receive the same
(such moneys being hereinafter referred to as
deposits), shall not form part of the Consolidated Fund and except as provided
in this
Part shall not be applied in any way for the purposes of
Government.
Investment of
deposits
25. (1) The Minister may authorise the investment of
deposits in like manner to that provided by section 6(1) shall be paid into the
Consolidated Fund.
(2) Any interest or dividend received in respect pf
the deposits invested in accordance with subsection (1) shall be paid into the
Consolidated Fund.
Deposit may be used
to finance advances
26. Subject to the provisions of this section,
the Minister may authorise the Chief Accountant to use deposits for the purpose
of
making advances for all or any of the purposes specified in section
7(1):
Provided that deposits shall not be so used where the advance in
question is repayable or recoverable as the case may be after the
close of the
financial year in which such advance is
made.
Unclaimed
deposits
27. Any deposit which is unclaimed for 5 years shall be
paid into the Consolidated Fund for the public purpose of the
Government:
Provided that if any person entitled thereto shall
subsequently prove to the satisfaction of the Chief Accountant his claim to any
such deposit the Chief Accountant shall thereupon refund to such person his
deposit.
Chief Accountant to administer
deposits and make refunds
28. Subject to the provisions of this
Part, the Chief Accountant is hereby authorised to administer and, in
appropriate cases, to
refund deposits to the person or persons entitled to
them.
PART V
POWERS AND DUTIES OF THE DIRECTOR OF AUDIT
Duties of Director of
Audit
29. The Director of Audit shall, on behalf of the Maneaba ni
Maungatabu examine, inquire into and audit the accounts of the Chief
Accountant
and of accounting officers and of all accountable
officers.
Powers of Director of
Audit
30. (1) In the exercise of his duties to audit, inquire into
and examine accounts the Director of Audit may,
inter alia -
(a) call upon any officer for any explanations and information which the Director of Audit may require in order to enable him to discharge his duties;
(b) authorise any person publicly carrying on the profession of accountant or any public officer to conduct on his behalf any inquiry, examination or audit and such person or officer shall report thereon to the Director of Audit;
(c) without the payment of any fee cause search to be made in and extracts to be taken from any book, document or record pertaining to matters of finance or accounts in any public office;
(d) lay before the Attorney-General a case in writing as to any question regarding the interpretation of any Ordinance or regulation concerning the powers of the Director of Audit or the discharge of his duties, and the Attorney-General shall give a written opinion upon such question.
(2) In the exercise of his duties
the Director of Audit or any person duly authorised by him in writing shall have
access to all records,
books, vouchers, documents pertaining to matters of
finance and accounts, and to all cash, stamps, securities, stores or other
property
of the Republic of any kind whatsoever in the possession of any public
officer.
(3) In exercising his powers of audit and examination of
accounts, the Director of Audit shall satisfy himself -
(a) that all reasonable precautions have been taken to safeguard the collection and custody of revenue and that the Ordinances, directions and instructions relating thereto have been duly observed;
(b) that all moneys which have been appropriated and disbursed have been applied to the purposes for which they were appropriated, and that the expenditure confirms to the authority which governs it;
(c) that all public moneys other than those which have been appropriated have been dealt with in accordance with proper property;
(d) that all reasonable precautions have been taken to safeguard the receipt, custody, issue and proper use of cash, stamps, securities and stores and that the regulations, directions and instructions relating thereto have been duly observed; and
(e) that adequate regulations, directions or instructions exist for the guidance of accounting officers and accountable officers.
Powers of Director of Audit not subject to direction
31. In the exercise of his
powers of audit of and reporting on accounts the Director of Audit shall not be
subject to the direction
or control of any person or
authority.
Director of Audit not to be
required to undertake pre-audit or any duties incompatible with his
office
32. (1) The Director of Audit shall not be required to
undertake any examination of accounts in the nature of a pre-audit if he would
be precluded thereby from full criticism of any accounting transaction whether
or not such transaction had been duly recorded.
(2) The Director of Audit
shall not be required to undertake any duties outside those pertaining to his
office if in his opinion such
duties are incompatible with the responsibilities
and duties of that office.
Staff and
delegation of
functions
33. Anything
which may be done by the Director of Audit under the authority of this
Ordinance, other than the certifying of the reporting
on accounts, may be done
by any officer of his staff as authorised by him.
Examination of accounts of expenditure
34. (1) Every account to which this Ordinance applies (which
expression shall include every account of public moneys and every account
referred to in Part VII) shall be subject to examination by the Director of
Audit, and in the examination of such accounts the Director
of Audit shall
satisfy himself that the money expended has been applied to the purpose or the
purposes for which appropriation has
been made by the Maneaba ni Maungatabu and
for which the heads of expenditure approved by the Maneaba ni Maungatabu were
intended
to provide and that the expenditure confirms to the authority which
governs it.
(2) The Director of Audit after satisfying himself that the
vouchers have been examined and certified as corrected by the accounting
officer, may, in his discretion and having regard to the character of the
departmental examination, in any particular case admit
the sums so certified
without further evidence of payment in support of the charges to which they
relate.
(3) If at anytime it appears to the Director of Audit that any
expenditure included in any account is unsupported by the authority
of the
Minster, he shall report to the Minister any expenditure which appears upon the
examination to have been incurred without
such authority, and any such
unauthorised expending shall, unless sanctioned by the Minister, be regarded as
not being properly chargeable
to a Head of Expenditure and shall be so reported
to the Maneaba ni Maungatabu which may resolve in terms of Part VIII that it be
written off unless it may be recoverable.
(4) The Director of Audit shall
report to the Maneaba ni Maungatabu any important change in the extent or
character of any examination
made by him.
Defective vouchers may be admitted and allowed
35. In his examination of any account the Director of
Audit may, in cases where the accuracy and propriety of the payment is not in
doubt, admit and allow any voucher supporting such payment notwithstanding that
such voucher is defective in some
particular.
Vouchers which are lost,
destroyed or not allowed under section 31
36. In the event that
any voucher -
(a) has been lost or inadvertently destroyed; or
(b) is not admitted or allowed by the Director of Audit under section 35,
the Minister may, if upon due inquiries he is
satisfied as to the accuracy and propriety of the payment and as to the
circumstances
of such defect, loss or destruction, authorise the payment to
stand charged in the
accounts.
Examination of accounts of
receipts of revenue
37. (1) The accounts of the receipt of revenue
by the Departments of Government and the accounts of every receiver of money
which
is by law payable to the Government shall be subject to examination by the
Director of Audit in order to ascertain that adequate
regulations and procedure
have been framed to secure an effective check on the assessment, collection, and
proper allocation of revenue,
and the Director of Audit shall satisfy himself
that any such regulations and procedure are being carried out.
(2) The
Director of Audit shall make such examination as he thinks fit with respect to
the correctness of the sums brought to account
in respect of such revenue as
aforesaid, and shall, together with his report on the appropriation accounts of
the departments concerned,
present to the Maneaba ni Maungatabu a report on the
results of any such
examination.
Examination of any other
accounts
38. (1) The accounts of all accountable officers any
other such accounts, whether relating directly to the receipt or expenditure
of
public funds or not, shall be subject to examination by the Director of
Audit.
(2) The Director of Audit shall examine any such accounts so
required to be examined by him as aforesaid with as little delay as possible,
and when the examination of each account has been completed shall sign a
certificate to the account recording the result of his examination,
and a copy
of the account so certified shall be sent to the Minister together with the
report presented under section
33.
Examination of stores
accounts
39. (1) Stores accounts shall be kept in all cases where,
in the opinion of the Chief Accountant, the receipt, expenditure, sale,
transfer
or delivery of any securities, stamps, provisions, or stores the property of any
Government departments is of sufficient
amount or character to require the
keeping of such accounts, and the Director of Audit may examine any such
accounts so required
to be kept in order to ascertain that adequate regulations
have been made for control and stocktaking, and that the regulations are
duly
endorsed and that any requirements of the Minister have been complied
with.
(2) The Director of Audit shall report to the Maneaba ni Maungatabu
the result of any such examination.
PART VI
THE AUDIT AND EXAMINATION OF PUBLIC ACCOUNTS
Annual
accounts
40. (1) Within a period of 6 months (or such longer
period as may be prescribed) after the end of each financial year there shall
be
transmitted to the Director of Audit by the Chief Accountant accounts showing
fully the financial position at the end of the year,
which shall include
-
(i) a balance sheet;
(ii) a statement of receipts and payments, by Heads, and other receipts and payments;
(iii) a comparative statement of actual and estimated revenue, by subheads;
(iv) a comparative statement of actual and estimated expenditure, by subheads;
(v) a statement of Special Funds' balances, by annual and aggregate receipts and payments;
(vi) a statement of other ledger balances;
(vii) a statement of balances on advances account from the Consolidated Fund, analysed under the several categories set out in section 14(1);
(viii) a statement of balances on advances accounts from deposits;
(ix) a statement of balances on deposits accounts;
(x) a statement of contingent liabilities;
(xi) a statement of investments, showing the funds on behalf of which such investments have been made;
(xii) a statement of outstanding loans made from the Consolidated Fund by annual and aggregate receipts and payments;
(xiii) a statement of the Public Debt;
(xiv) a statement of arrears of revenue, by subheads;
(xv) tabulated summaries of unallocated stores and manufacturing accounts;
(xvi) a statement of the balance on Development Fund account by annual and aggregate receipts and payments;
(xvii) a statement of balances on suspense account;
(xviii) a statement of unauthorised expenditure by subhead showing the provision as at 31 December, the expenditure for the year and the excess of expenditure over provision;
(xix) a statement of balances on remittance account.
(2) Within a period of 6 months after
the close of such period of accounts as may be prescribed by any law relating
thereto, or in
the absence of such law, such period of account as the Chief
Accountant may appoint -
(a) any officer administering a Special Fund; and
(b) any officer administering any trust or other fund or account of such fund or account not provided for in this section, if so directed by the Minister,
shall
prepare, sign and transmit to the Director of Audit that an account of such fund
or account relating to the period of account
in such form as the Chief
Accountant may from time to time
require.
Notification of irregularities
to Chief Accountant
41. If at any time it appears to the Director
of Audit that any irregularities have occurred in the receipt, custody, issue or
expenditure
of public moneys or in the receipt, custody, issue, sale, transfer
or delivery of any stamps, securities, stores or other property
of the Republic,
or in the accounting for the same, he shall immediately bring the matter to the
notice of the accounting officer
concerned and the Chief Accountant.
PART VII
EXAMINATION AND AUDIT OF THE ACCOUNTS OF STATUTORY CORPORATIONS, BOARDS, COMMISSIONS AND BODIES
Preparation and
examination of trading accounts, etc.
42. (1) There shall be
prepared in each financial year, in such form and by such statutory
corporations, boards, commissions and bodies
(whether corporate or
unincorporated) as the Director of Audit may from time to time direct and
approve, statements of account showing
the income and expenditure of any trading
or commercial services conducted by them or by any of them, together with such
balance
sheets and statements of profit and loss and particulars of costs as the
Director of Audit may require.
(2) All such accounts shall be transmitted
to the Director of Audit and presented to the Maneaba ni Maungatabu on or before
the dates
specified in that behalf by orders made under this
Ordinance.
(3) All such accounts as aforesaid shall be examined by the
Director of Audit on behalf of the Maneaba ni Maungatabu and in his examination
he shall have regard to any programmes of works which may have been laid before
the Maneaba ni Maungatabu and he shall certify and
report on such accounts to
the Maneaba ni Maungatabu.
(4) Every such account shall in every year
until it is wound up be examined by the Director of Audit in such manner as he,
in his
discretion, thinks proper with a view to ascertaining whether the
operations on and the transactions in connection with the account
have been in
accordance with the provisions of this Part of this Ordinance and he shall
certify to the Maneaba ni Maungatabu whether
in his opinion, having regard to
the result of the examination, the operations on the transactions in connection
with the account
have or have not been in accordance with the provisions of this
Part of this Ordinance.
(5) Without limiting the generality of this
section, this Part shall apply to any corporate body established by law to any
company
which is a subsidiary of any such corporate body and, if the Maneaba ni
Maungatabu by resolution so directs, to any board, body or
commission which is
not so established -
(a) which is in receipt of a contribution from public funds; or
(b) the operations of which may under the Ordinance establishing the same, or under any Ordinance relating thereto, impose or create a liability upon public funds.
(6) For the purposes of this Part a
company is a subsidiary of another if that other is a member of it and controls
the composition
of the board of directors or holds more than half in nominal
value of its equity share capital, or the first mentioned company is
a
subsidiary of any company which is that other's
subsidiary.
Minster to obtain
observations on report of Director of Audit
43. (1) On receipt of
any report of the Director of Audit as required by section 42, the Minster shall
obtain the observations of
the corporation, statutory board, body or commission
on any matter to which attention has been called by the Director of Audit in
such report and such observations shall be lied before the Maneaba ni Maungatabu
with the said report.
(2) If the Minister fails within a reasonable time
to lay the report of the Director of Audit before the Maneaba ni Maungatabu the
Director of Audit shall transmit a copy of such report to the
Speaker.
Audit fees to be
charged
44. Any corporation and any statutory board, body or
commission the accounts of which are audited by the Director of Audit under the
provisions of section 38 shall in respect of such audit pay such fee as may,
with the concurrence of the Minister previously obtained,
be determined by the
Director of Audit:
Provided that the Minister may, in any case in which
it shall appear to him to be in the public interest that no audit fee shall be
paid, waive the payment of such fee.
PART VIII
ABANDONMENT OF CLAIMS, ETC., AND WRITE-OFF OF PUBLIC MONEYS AND STORES
Abandonment of claims,
etc., and write-off of public moneys and
stores
45. (1) The
Maneaba ni Maungatabu may, by resolution authorise the Minister to the extent
specified in such resolution to abandon and
remit any claim by or on behalf of
the Republic or any service thereof and to write-off losses of public moneys,
stores or other
property belonging to the Republic or provided for the public
service.
(2) Such resolution may be in general terms and of continuing
application and may be made retrospectively.
(3) The Minister may by
writing under his hand delegate to any public officer any of the powers which he
is authorised to exercise
by resolution of the Maneaba ni Maungatabu under this
section.
Disposal of serviceable stores
or property to certain
organisations
46. The
Minister may authorise the gift of serviceable Republic stores or property not
required for Republic purposes to institutions
or organisations established
solely or principally for educational, scientific, cultural or charitable
purposes:
Provided that where the value of such stores or property
exceeds $1,000 the prior approval of the Maneaba ni Maungatabu shall be
required.
_____________
SCHEDULE
I
(Section 12)
SPECIAL FUNDS
Government Savings Bank
Local Government Loans
Board
Revenue Equalisation Reserve
Funds Special-Leper Trust
Board
Funds Special-Lien (GIDA & RER)
Funds Special-Local Government
Provident
Funds Special-Import Levy Fund
Kiritimati Plantation
Funds
Special-Ellice Separation
____________
SCHEDULE
2
(Section 11)
RULES FOR THE OPERATION OF THE DEVELOPMENT FUND
1. In these Rules "Fund" means the Development
Fund.
2. (1) No moneys shall be issued from the Fund for the purpose of
meeting any expenditure except in accordance with a warrant under
the hand of
the Minister authorising the Chief Accountant to issue those moneys.
(2)
Subject to the rules 4, 5, 6 and 7 no warrant shall be issued under paragraph
(i) unless the expenditure in question has been
authorised by the Maneaba ni
Maungatabu by resolution or in accordance with these Rules.
3. (1) The
Minister shall cause to be prepared in each financial year estimated of the
revenue and expenditure of the Fund for the
next following financial
year.
(2) The proposals for all expenditure contained in the estimates
shall be submitted to the Maneaba ni Maungatabu and a statement showing
the
estimated balance of the Fund at the commencement of the financial year and the
anticipated revenue accruing to and total expenditure
from the Fund during the
financial year shall also be furnished to the Maneaba ni Maungatabu.
4.
(1) If the Maneaba ni Maungatabu has not yet authorised for any financial year
expenditure of sums necessary to finance the continued
construction and
provision of development works for which provision was made from the Fund in the
previous financial year the Minister
may by warrant authorise the issue from the
Fund of such sums as are necessary to finance the continued construction and
provision
of such works to enable such works to be carried out for a period of 4
months or until the expenditure of sums necessary to finance
the continued
construction and provision of such works has been approved by the Maneaba ni
Maungatabu whichever is the shorter period.
(2) Notwithstanding paragraph
(1) no sum may be issued under this rule in respect of any subhead where such
sum would be in excess
of 20 per cent of the estimate of the total cost for such
subhead as it appears in the development estimates or supplementary development
estimates approved by the Maneaba ni Maungatabu.
5. (1) When in any
financial year the development estimates or supplementary development estimates
for that year include an estimate
of total cost for any subhead over any period
which is in excess of the total sum appropriated for that subhead for the
current year
the Minister may by warrant authorise the expenditure of any sum
which, when added to the expenditure incurred on the corresponding
subhead in
previous years and to the expenditure already authorised for the same subhead
for the current year, does not cause to
be exceeded the latest estimate of total
cost for that subhead included in the development estimates or supplementary
development
estimates approved by the Maneaba ni Maungatabu for that
year.
(2) When at the commencement of any financial year the provision
included for any subhead in the development estimates or supplementary
development estimates of the immediately preceding financial year has been only
partially expended the Minister may by warrant authorise
the expenditure of the
unspent balance of such provision under a corresponding subhead in the current
financial year:
Provided that the amount so authorised shall not when
added to the expenditure incurred in previous years and to the provision already
made in the current year, exceed the latest overall estimate of total cost for
the subhead included in any development estimates
or supplementary development
estimates approved by the Maneaba ni Maungatabu.
(3) No warrant under
this rule shall authorise the issue of an amount which if it were expended at
once would exceed the balance of
the Fund remaining after all other expenditure
authorised for the year has been provided for.
6. The Minister may with
the approval of he Cabinet by warrant authorise the issue from the Fund of such
sum as may be necessary for
expenditure under any subhead of a special character
which is not provided for to the expenditure already authorised by the Maneaba
ni Maungatabu for the year and which cannot or cannot without serious injury to
the public interest be postponed until adequate provision
can be made by the
Maneaba ni Maungatabu:
Provided that no such warrant shall authorise the
issue of an amount which if it were expended at once would exceed the balance of
the Fund remaining after all other expenditure authorised for that year has been
provided for.
7. {1) The Minister may in any year by warrant authorise
the issue from the Fund of such additional sum as may be necessary for
expenditure
under any subhead which has been authorised by the Maneaba ni
Maungatabu for that year and the issue of which cannot or cannot, without
serious injury to the public interest be postponed until adequate provision can
be made by the Maneaba ni Maungatabu:
Provided that no such warrant shall
authorise the issue of a sum in excess of 20 per cent of the latest estimate of
total cost for
that subhead as included in any development estimate without the
approval of the Cabinet.
(2) No warrant under this rule shall authorise
the issue of an amount which if it were expended at once would exceed the
balance of
the Fund remaining after all other expenditure authorised for the
year has been provided for.
8. The Minister shall at the meeting of the
Maneaba ni Maungatabu next following the issue of any warrant under rule 5, 6 or
7 present
a supplementary estimate covering the expenditure to the Maneaba ni
Maungatabu for its approval.
__________
[Subsidiary]
SUBSIDIARY LEGISLATION
Regulations under section 13(2) (c)
L.N.
23/73
KIRITIMATI PLANTATION SPECIAL FUND REGULATIONS
1. These Regulations may be cited as the Kiritimati
Plantation Special Fund Regulations.
2. "Fund" means the Kiritimati
Plantation Special Fund and "Manager" means the Manager of Kiritimati
Plantation.
3. The Fund into which shall be paid all revenues accruing to
Kiritimati Plantation and from which shall be paid all expenditure of
Kiritimati
Plantation shall be controlled and operated in the manner hereinafter
appearing.
4. The Chief Agricultural Officer shall administer the
Fund.
5. The Manager shall submit to the Chief Agricultural Officer
annual estimation of revenue and expenditure of Kiritimati Plantation
for the
next following year to reach the Chief Agricultural Officer not later than 30
September in each year. The annual estimates
shall include revised estimates of
revenue and expenditure for the current year and actual revenue and expenditure
for the previous
year. The Chief Agricultural Officer shall submit the annual
estimates, together with his comments, to the Minister for approval
to reach the
Minister not less than 30 October in each year. Before the approval by the
Minister the annual estimates shall be submitted
to the Cabinet for comment.
Copies of the approved annual estimates shall be sent to the Chief Accountant
and the Director of Audit.
6. The following records shall be kept,
maintained and reconciled for each year of account in accordance which such
provisions of
Chapters 3 and 8 of the Financial Regulations and such
instructions as the Chief Accountant may from time to time issue -
(a) by the Chief Agricultural Officer at the Department of Agriculture central records of receipts and payments; and
(b) by the Manager records of local receipts, local payments and commitments.
7.
Within 1 week after the end of each month the Manager shall inform the Chief
Agricultural Officer by telegraph of the local receipts
and local payments under
the various allocations brought to account by him during the preceding
month.
8. Within 1 week after the end of each month the Manager shall
advise the Chief Agricultural Officer by telegraph of the estimated
cost, name
of agent, expenditure allocation and such other information as required of all
orders of goods or services made by him
outside Kiritimati.
9. Subject to
section 99 of the Constitution, to administer the Fund the Chief Agricultural
Officer may employ any necessary personnel
on terms agreed to by the Public
Service Commission. The costs of such personnel shall be charged to an
expenditure allocation of
the annual accounts of the Fund.
10. Except
with the agreement of the Minister there shall be no increase in total
expenditure after approval of the annual estimates.
11. The period of
account of the Fund shall be the calendar year.
12. The annual accounts
shall be presented in accordance with the approved estimates of the relevant
year and shall include opening
and closing balances of the Fund. A statement
showing in tabular summary the operations of the trade store and copra
production on
Kiritimati together with the value of goods in transit shall
accompany the annual accounts.
--------------------------------------
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