FINANCIAL MANAGEMENT ACT

(ACT 17 OF 2004)

Finance Instructions 2005

IN exercise of the powers conferred upon me by section 30 of the Act, I make this Financial Instructions-

PART 1 - PRELIMINARY

1. Citation

2. Commencement

3. Interpretation

4. Purpose of Standard

5. Application of Instructions

PART 2 – PLANNING

6. Annual Corporate Plans

7. Budget process

PART 3 – EXPENDITURE

Division 1 – Authority for Expenditure

8. Appropriations

9. Requisition to incur expenditure

10. Virement authorities

Division 2 - Procurement

11. Procurement authorities

12. Competitive procurement

13. Local tenders

14. International tenders

15. Annual tenders

16. Tender process

17. Procurement procedures

Division 3 – Accounting for Expenditure

18. Recording of commitments

19. Payments

20. Recording of expenditure

Division 4 – Emergency Expenditure

21. Immediate relief

22. Rehabilitation

Division 5 – Tender Boards

23. Agency Tender boards

24. Central Tender board

Division 6 - Grants

25. Operation of grants

Division 7 – Salaries and Wages

26. Salary and wage procedures

PART 4 - REVENUE

Division 1 – Collection of revenue

27. Appointment of revenue collectors

28. Issue of revenue records

29. Receipt of revenue

30. Accounting for revenue

31. Refunds of revenue

Division 2 – Agency Revenue

32. Procedures for identifying and applying for agency revenue

33. Providing credit

Division 3 - Miscellaneous

34. Official gifts

35. Division of duties

PART 5 – TRADING AND MANUFACTURING ACCOUNTS

36. Business plans

37. Financial reporting

PART 6 – ASSETS

Division 1 – Cash management

38. Cash on hand

39. Bank accounts

40. Cheques

41. Petty cash

42. Cashflow forecasting

Division 2- Inventories

43. Ordering

44. Recording

45. Stocktakes

46. Valuation

Division 3 – Accounts Receivable

47. Recording

48. Recovery

49. Write-offs

50. Reporting

Division 4- Loans and Advances

51. Travel Advances

52. Other Advances

53. Advances to members of Parliament

Division 5 – Property, plant and equipment

54. Recording

55. Valuation

56. Use of assets

57. Stocktakes

58. Depreciation

59. Disposals

Division 6 - Vehicles

60. Vehicle operations

PART 7 - LIABILITIES

61. Accounts payable

62. Employee entitlements

63. Leases

64. Contingent Liabilities

PART 8 - LOSSES

65. Recording

66. Reporting

67. Recovery

68. Write-offs

PART 9 – TRUST MONEY

69. Accounting

PART 10 – INTERNAL CONTROLS

70. Objective of internal controls

71. Assurance to CEOs

72. Documentation of internal controls

PART 11- SURCHARGES

73. Authority to impose a surcharge

74. When a surcharge may be imposed

75. Surcharge action to be taken

76. Rate of recovery

77. Reporting

PART 12 – REPORTING

Division 1 – Management reporting

78. Reports to Chief Executive Officers

79. Reports to Ministers

Division 2-Annual reporting

80. Timing

81. Minimum content

82. Annual financial statements