Financial Administration And Audit Act (faa) - Instru

The Financial Administration and Audit Act Instructions www.mof.gov.jm

FINANCIAL ADMINISTRATION & AUDIT ACT INSTRUCTIONS

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The Financial Administration and Audit Act Instructions www.mof.gov.jm

MINISTRY OF FINANCE JAMAICA

INTRODUCTION

1.1 The Constitution of Jamaica and the Financial Administration and Audit Act lay down the basic principles for the operation of the Consolidated Fund and the management and control of public Monies. 1.2 Under Section 24A (3) of the Act, the Minister of Finance is empowered to issue directions and make regulations for collection and accounting for public Monies, keeping of records and prescribing forms, and any other purpose necessary for the efficient administration of the financial business of the Government. 1.3 The duty of implementing the provisions of the Act, and any instructions and regulations issued thereunder, is the personal responsibility of each Accounting Officer appointed under Section 16 of the Act, in the manner set out in his/her letter of appointment. 1.4 It is necessary for all officers to whom any functions relating to finance may be delegated, to be made fully aware of the legal and constitutional framework within which the Government of Jamaica functions, and of the instructions and regulations issued in order that their duties may be adequately performed in strict compliance therewith. 1.5 These instructions numbered 1 to 17 are therefore issued for the guidance of Public Officers, to provide a sound basis for proper financial administration. 1.6 The previous Instructions issued under the Financial Administration and Audit Act, in 1977 are hereby rescinded. 1.7 Further instructions and amendments where necessary will be issued over the signature of the Financial Secretary or one of the Deputy Financial Secretaries of the Ministry of Finance from time to time.

OMAR DAVIES Minister of Finance and Planning

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INSTRUCTION NO. 2 DEFINITIONS 2.1 References in these Instructions to a department include references to a ministry. 2.2 In these Instructions, unless the context otherwise determines the following terms have been used in the sense described:

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The Act is the Financial Administration and Audit Act.

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Accountable Officer is any public officer whether employed on contract or otherwise, including an Accounting Officer concerned in/or responsible for the collection, receipt, custody, issue or payment of public monies or other public property.

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Accounting Officer is any person designated as such by the Minister pursuant to Section 16 of the Act and charged with the duties of accounting for any expenditure on any service in respect of which monies have been appropriated under such Act or any other enactment.

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Appropriations-In-Aid are those incidental revenues which departments collect in the ordinary course of business and which have been approved as such by the Minister.

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Collecting Officer is any public officer to whom the duty of collection of public monies has been assigned.

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The Consolidated Fund is the Consolidated Fund of Jamaica established pursuant to Section 114 of the Jamaica (Constitution) Order in Council, 1962, and Part II Sections 3-5A of the Financial Administration and Audit Act.

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Contingencies Fund - is a fund established pursuant to Section 118 of the Jamaica (Constitution) Order in Council, 1962 and Section 13 of the Act to meet unforeseen expenditure.

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Contingency Provision - is a budgeted amount in the Ministry of Finance Head of Estimates to meet certain payments, such as salary revision payments, not provided for in the budget of other ministries and departments to meet such costs within the Financial Year.

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Expenditure Clearing Accounts are accounts operated by ministries and departments in designated banks into which the Appropriated Funds are lodged by the Accountant General based on amounts approved by warrant issued by the Minister of Finance.

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Functions include power and duties.

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Government Company is a company registered under the Companies Act, in which the Government or any of its agencies by the holding of shares is in a position to direct the policy of the company.

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Miscellaneous Revenue is varied and diverse and is collected by different ministries and departments. All such collections are lodged to an account held by the Accountant General for Miscellaneous Revenue.

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Minister is the Minister of Finance.

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Non-Tax Revenue are those revenues that do not constitute a tax, levy, licence or duty; e.g., Postal Revenue, Departmental Revenue, Miscellaneous Revenue.

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Officer or Public Officer is any person in the employment of the Government of Jamaica concerned with the collection, management and administration, payment and accounting for public monies, stamps, securities, stores and other Government property.

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Principal Receivers of Revenue are appointed by the Minister with responsibility for collecting revenues and other receipts approved by Parliament and are Accountable Officers to the Financial Secretary under the FAA Act.

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Public monies means (a) public revenue and (b) any trust or other monies held, whether temporarily or otherwise, by a public officer in an official capacity whether alone or jointly with any other person.

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Revenue means all tolls, taxes, imposts, rates, duties, penalties, forfeitures, rents and dues, proceeds of sale and all other receipts of the Government from whatever source arising over which the Parliament of the Island has the power of appropriation, including the proceeds of all loans raised.

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Special Funds means monies (Loans or Grants) provided by funding Agencies, such as the United Nation's Development Agency, to the Government of Jamaica for specific projects and deposited in specially designated Bank Accounts in accordance with agreements.

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User Fees are monies collected by ministries and departments to cover the cost of certain services; e.g. hospital fees; audit fees. Such fees unless stipulated otherwise by the Financial Secretary, are to be lodged to the Accountant General for Miscellaneous Revenue.

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INSTRUCTION NO. 3 PARLIAMENTARY CONTROL OF PUBLIC MONIES 3.1

Parliament

Parliament is the supreme authority for the imposition of taxation, the creation of debt and the expenditure of funds so raised and expresses its will on these matters by the enactment of Laws. 3.2

The Standing Finance Committee

The Standing Finance Committee is a Committee of the whole House of Representatives, which examines in detail the Estimates of Expenditure after they have been tabled. The Estimates of Expenditure are examined and a report is presented to the House by the Minister of Finance, who moves that the report be adopted, after which the Budget Debate ensues. The deliberations of this committee are held in private. 3.3

Consolidated Fund

The first principal instrument of Parliamentary control of public money is the Consolidated Fund into which subject to the provisions of any other Act, all public revenues and borrowings are paid and from which no money can be withdrawn except in accordance with the will of Parliament as expressed by Law. 3.4

Auditor General

The second instrument of Parliamentary control is the office of Auditor General. He is not answerable to the Executive but to Parliament on whose behalf he: (i) controls all withdrawals from the Consolidated Fund, i.e. to ensure that the declared purpose of the withdrawal is in accordance with Parliamentary approval; (ii) examines the accounts to see that as far as possible all amounts payable into the Consolidated Fund are so paid and that the sums withdrawn from the Fund have been applied solely to the purposes approved by Parliament; (iii) reports the results of his examination to the Speaker who places the Report with the accounts before Parliament which refers them to a Select Committee on the Public Accounts for examination and report. 3.5

Public Accounts Committee

The third instrument of Parliamentary control is the Public Accounts Committee which is a Select Committee of Parliament appointed to examine and report on the Appropriation Accounts, the Auditor General's Report thereon and such other accounts as may be referred to them by Parliament. 3.6

Public Administration and Appropriations Committee

The fourth instrument of Parliamentary Control is the Public Administration and Appropriations Committee which is a Select Committee of Parliament appointed to monitor Budgetary expenditure during the implementation stage by: (a) examining budgetary expenditure of Government Agencies to ensure that public money is expended in accordance with Parliamentary approval; (b) monitoring expenditure as it is incurred and keeping Parliament informed of how the budget is being implemented; and (c) enquiring into the administration of the government to determine hindrances to efficiency, and to make recommendations to the Parliament for improvement of public administration.

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INSTRUCTION NO. 4 MANAGEMENT OF PUBLIC FINANCE 4.1

In the management of public finance, Parliament recognizes the responsibility of the Minister of Finance to propose taxation to meet public expenditure by assigning to his Ministry the duty of ensuring as far as possible: (i) regularity and propriety in the conduct of public business; (ii) economy and efficiency in the preparation of estimates of expenditure and revenue submitted to Parliament; and (iii) that excesses are avoided and that the arrangements made by departments for expending substantial amounts which have been voted (e.g. by contracts, purchases of stores, land acquisitions, etc.) are financially sound and economical.

4.2

The management of public finance comprises four stages, namely: (A) (B) (C) (D)

4.2A

The Budget Process Treasury Management Accountability Audit

Budget Process The format and guidelines for the preparation and submission of the annual budget are set out in the annual Budget Call sent to all Permanent Secretaries, Heads of Departments and other agencies by the Financial Secretary, usually within the third quarter of the current financial year. The Accounting Officers shall be responsible for the preparation and submission of the Annual Budget Estimates for their ministries/departments and other entities for which they have portfolio responsibility for presentation to the Parliament. Detailed guidance for the preparation of budgets are contained in 'Government of Jamaica Accounting Manual' issued by the Ministry of Finance. Further instructions in regard to format and timing of submission of these budgets to the Ministry of Finance are issued by the Budget Division of the Ministry of Finance as required. The instructions issued by these instruments shall be supplemented by the Planning Institute of Jamaica in regard to Capital Estimates, and Public Service Establishment Division, Ministry of Finance, in regard to estimates for personal emoluments. In addition, Accounting Officers must ensure that: (i)

for every programme/project, programme and project managers are identified;

(ii)

the guidelines issued for the preparation of the estimates are transmitted to these officers to facilitate the preparation of the following schedules: -

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Materials Budget Equipment Budget Printing Budget Foreign Exchange Budget Manpower Budget Recurrent Overhead Cost Budget Non-Recurrent Overhead Cost Budget Contributions to International, Regional and Local Organizations Capital Estimates and Public Investment Programmes Subsidies

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Public Debt Servicing Transfers from the Public Sector to Institutions and Agencies outside Central Government Public Investment Programme

Accounting Officers who have charge of the votes granted by Parliament are held to be personally responsible for the expenditure charged to those votes and are accountable therefor to Parliament through the Public Accounts Committee. They are required to certify the correctness of the Appropriation Accounts of their respective departments. The word correctness here means:(i) (ii) (iii) (iv)

that the monies voted have been used only for the purposes for which they were intended by Parliament; that the actual payments were in accordance with the laws, rules, instructions and regulations governing them; that the charges were at fair and reasonable prices and were incurred without waste and extravagance; that the accounts rendered were accurate.

(1) Cash Flow Projection Permanent Secretaries and Heads of Departments shall present for the Recurrent Heads of Estimates as well as the financial year denominated monthly. A further submission for each month's requirement must be submitted on a monthly basis. The Ministry of Finance shall issue warrants to the Accountant General for the monthly requirement after an analysis of needs using the previous month's balance as an indicator. Such funds as are authorized for release are dependent on the money available in the Consolidated Fund. (a) Vote-On-Account Accounting Officers shall be required to submit in early March of each year a cash flow projection of their expenditure for the period April to July which will form part of the Vote on Account to be approved by the Parliament pending approval of the annual Appropriation Bill. The cash flow shall be the basis of issue of monthly expenditure warrants by the Ministry of Finance for the months of April, May, June and July. (b) Voted Provision As soon as the Appropriation Act is passed, Accounting Officers shall be required to prepare and submit a revised cash flow projection for the following month, showing also the actual expenditure up to the end of the previous month. This exercise of preparation and submission of monthly cash flows shall be repeated in the same manner for the subsequent months. Since the monthly cash flows shall be the basis for the issue of the monthly expenditure warrants by the Minister of Finance, it must be ensured by Accounting Officers that their projections are sent to the Ministry of Finance sufficiently in advance, but not later than 15 days before the commencement of the month to which the cash flow projection pertains. For information setting out the format in which such Cash Flows are to be prepared, (see Appendix I) These instructions and format may be subject to change, as the need arises. (c) Status Report To enable the Minister of Finance to be satisfied that the activities in each Ministry are being carried out in accordance with the Act and the monies voted correctly applied for the purpose for which they were intended, Accounting Officers are required to submit a Monthly Status Report by the 14th day of the succeeding month showing, inter alia, the position of the following accounting statements:

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(1) (2) (3) (4) (5) (6) (7)

preparation of Annual Appropriation Accounts Preparation of Monthly Accounts (Schedule of Monthly Accounts) Bank Reconciliation Clearance of Advance Accounts Verification of Assets and Value Book (Inventory Records) Replies to external audit queries Implementation of Public Accounts Committee recommendations

It shall be the responsibility of Accounting Officers to institute suitable internal reporting within the administration of their ministries and the departments and agencies for which there is a portfolio responsibility to ensure that the above information is computed for each Head of Account and sent to the Ministry of Finance and in the format prescribed by from time to time.

(2) Warrant (a) Warrants are instruments of authority under Section 117(1) of the Constitution issued by the Minister of Finance to the Accountant General specifying the sums to be withdrawn from the Consolidated Fund for disbursement to Accounting Officers specified in such warrants in accordance with provision under the Appropriation Act. (b) In accordance with FAA Act Section 9(6), the Minister of Finance has the power to restrict the sums to be withdrawn from the Consolidated Fund with a view to balancing the outflow of funds to match with the inflow of revenue and other receipts. (3) Use of Treasury Deposits Any advances from Treasury Deposits shall be on the specific written authorization to the Accountant General by the Financial Secretary. The Financial Secretary may authorize the Accountant General to make advances from time to time to ministries and departments for budgetary support. Advances from Treasury Deposits should be cleared within one year of the financial year in which they were made.

4.2B

Treasury Management Treasury Management is a sub-system of the Financial Management System of the Government of Jamaica, carried out by the Ministry of Finance, Accountant General and the Central Bank. The core components of Treasury Management are: 1.

Fiscal Planning and Policy Monitoring (FPMU); Budget; Public Credit and Accounting. Its objective is to: i.

receive and deposit on a timely basis all governmental revenues, whatever their nature, origin or use;

ii.

establish appropriate mechanisms to ensure the timely access of the resources and their effective application to programmed operations and other budgetary obligations in conformity with budgetary law and the instrument of the Warrant; and

iii. receive, safeguard and negotiate securities such as bonds, promissory notes and treasury securities, in accordance with the public credit system. The Public Credit system's objective is to

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capture, through both internal and external sources the resources destined exclusively for financing the capital investments of government when collected revenues are deficient. 2

Treasury Management functions incorporate: i. ii.

Keeping a total inventory of all Government Cash Accounts held in the Commercial Banking Sector. Negotiating with the Commercial Banking Sector for suitable interest rates for all Government Balances, held in accounts iii. Working closely with the Budget Division - Cash Management Unit/Financial Management Division and the Fiscal Policy Monitoring Unit (FPMU) in order to ensure that adequate resources are in place to fund the issuing of warrants. iv. Monitoring accounts and ensuring that idle balances are drawn back into the Consolidated Fund. v. Evaluating data on movements in Government Bank Balances in the system to assess and identify critical reasons for movements and make recommendations for corrective action as necessary. 3

.Cash Planning and Management (FPMU, Budget [Warrant Section], Accountant General) (a) Draw up Cash Management Plan i.e., the breakdown of the Annual revenue and Expenditure projections in the approved budget into monthly targets with reference to: i. details of the revenue from revenue commissions, ministries and departments (non-tax revenue); ii. Details of expenditure (ministries/departments) from the Budget Division and the Accountant General.

The plan will take into account the opening cash balances and project the balances at the end of each month in order to optimize the inflows and outflows, set targets for timely revenue mobilization and release funds for expenditure only as and when needed; keep to a minimum the cost of borrowing; ensure that government operations do not add to money supply outside planned targets; ensure that balances in banks yield optimum returns. 4

Effective implementation of the Cash Management Plan involves the Treasury Manager, Accountant General's Department, the Director General -Tax Revenue and ministries and departments. Revenue collection agencies must ensure that: (a) revenues are collected efficiently; (b) timely payments are made into the Consolidated Fund. Ministries and departments must ensure that: (a) all non-tax revenues are promptly remitted; (b) all statutory and other deductions are promptly remitted thereby avoiding 'de Facto' credit (unauthorized) to finance expenditure; (c) tight planning and commitment control are in place to enforce spending and commitment within warrant ceilings; (d) monthly expenditure in capital projects is regulated on the basis of realistic work/implementation plans; (e) external flows are promptly drawn down; (f) bank balances (including a review of balances of parastatal bodies funded by Government) are efficiently and effectively managed to minimize the incidence of idle cash balances.

5.

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Warrant Process (Budget Division - Warrant Section; Accountant General - Economic External Financial Unit) Provide monthly cash flow requirements to FPMU and warrant section for public debt (external and domestic) and other statutory payments including pensions.

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6.

Monitor implementation and take corrective action - Accountant General's Department (Treasury Manager); Ministry of Finance (FM Division - Budget Division). The Treasury Manager shall: (a) Review on an on-going basis the actual against the monthly targets of revenue, expenditure, borrowings and cash balances as set out in the Cash Management Plan and highlight significant variations; (b) The Financial Management Division shall analyze on an on-going basis the major variations between budgeted warrant releases and actual expenditure and submit a report of the analysis to the FPMU, Budget Division (warrant section) and Accountant General's Department (Treasury Manager). (c) The Budget Division (warrant section) shall take into account the report on idle cash balances from the Accountant General in determining fresh warrant releases. (d) The FM Division shall conduct an overall review of the bank accounts taking into account the Accountant General's reports and initiate corrective action where applicable. (e) The FPMU shall analyze trends in the implementation of the Cash Management Plan based on the above periodic reports. This analysis is necessary to facilitate revision of resource availability projections in order to determine fresh ceilings based on such revision.

7.

Determination of Expenditure Ceilings The first step in the implementation of Treasury Management is undertaken by the Financial Planning and Policy Monitoring Unit (FPMU): (a)

(b) 8.

Derive from PIOJ/STATIN the projections for Gross Domestic Product and the projected target for money supply (BOJ) the Fiscal Deficit, the computation of which would include repayment of debt (borrowings both domestic and external), and forecast of non-tax revenue, tax revenue, capital receipts and transfers from Capital Development Fund. Communicate resulting national expenditure ceiling to Budget.

Distribution of Budget Ceilings and Budget Call The second step is for the Budget Division: (a) Develop ceilings for allocations under Recurrent, Capital A and B with rationalizations for Cabinet ratification; (b) Issue Budget Call to ministries/departments indicating respective ceilings; (c) Receive, examine and approve requests in response to Budget Call; (d) Complete Budget Process.

4.2C

Accountability 1. 2.

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Accountability shall mean the obligation to give answers and explanations concerning one's actions or inaction in respect of any matter pertaining to public funds and assets. Public Officers shall be formally appointed by an accounting officer as an accountable officer.

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3.

4. 5.

The accounting officer shall be personally accountable for funds appropriated to his/her ministry and must ensure that such funds are administered properly in relation to the budget and all relevant laws, regulations and instructions. The accounting officer shall ensure that public funds and assets are managed in an open and transparent manner with due regards to the law. Questions or queries raised by government auditors, the Public Accounts Committee, the Cabinet or by Parliament, must be answered within the stipulated time or within a reasonable time by the accounting officer and such answer must be complete and accurate.

(1) Virement (a) In accordance with Part VII Section 35 of the Regulations the virement of funds released by Warrant shall not be authorized by the Accounting Officer without the specific written approval of the Financial Secretary. (b)

From time to time the exigencies of the Public Service or other important causes make it necessary for Accounting Officers to seek Virement in the funds appropriated for the various programmes and activities/projects in the approved budget. At the activity project level, accounting officers may vie funds within the level of the Budget. When an accounting officer deems it necessary to seek additional funds due to: (i) (ii) (iii)

4.2D.

a change in the activities of a programme; intensification of project activities in order to achieve some desirable output/outcome; some special circumstances, the accounting officer in collaboration with the relevant portfolio minister will have to make decisions as to which programmes and/or project they consider the planned objectives could be reduced or abandoned in order that the additional funds required to meet the re-ordered priorities may be made available without increasing the total allocation made for that head of Estimates.

Audit

The audit of the financial operations of the Government is conducted at two (2) main levels i.e. Internal Audit and External Audit. Internal Audit is conducted to ensure that the laws, regulations, policies and management directives are implemented in accordance with the requirements of management and that the department achieves its objectives in an efficient, effective and economical manner. External Audit is conducted by the Auditor General in accordance with Section 122 (1) of the Constitution. Role of Internal Audit 1. 2. 3. 4.

Internal Audit is a staff function and should not be involved in anyway in the preparation of original data. Internal Audit is an independent appraisal function established by management for the review of the Internal Control System as a service to the organization. Internal Audit is an advisory function and has no authority to make or direct changes. The method of operation of Internal Audit is to: (a) make independent analyses, reviews and evaluations of existing activities and procedures; (b) report on the conditions found; and (c) recommend changes or other action for the consideration of the Accounting Officer.

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5.

The nature and scope of work to be performed by the internal audit are defined in general terms by the Ministry of Finance so that the duties, responsibilities, functions and stature of the internal audit staff will be adequately recognized. Function of Internal Audit

The function of internal audit includes: 1. 2.

ascertaining the maintenance of an effective system of internal control and the reliability of accounting and other records; ensuring compliance with the laws, rules and regulations and approved policies and management directives;

3.

examining financial operations and transactions;

4.

examining financial statements to ensure adequacy and correctness of information to management;

5.

ascertaining the effectiveness of control adopted in preventing and detecting waste, idle capacity and extravagance in the use of resources;

6.

ensuring the existence of adequate systems and procedures to safeguard assets and stores from losses of all kinds;

7.

conducting special investigations in problem areas;

8.

reporting on inadequacies observed, and recommending corrective action;

9.

appraising the progress of works, schemes and projects and the extent to which programmes and schedules are on target;

10.

appraising the adequacy and effectiveness of management controls on the organization's activities. (In the case of technical operations the Internal Auditor appraises the quality of managerial controls and not the quality of technical performance.) Internal Audit Report

The Chief Internal Auditor must submit a monthly report to the Accounting Officer/Head of Department within fourteen (14) days following the end of each month. A copy of this report must be submitted to the Internal Audit Directorate of the Financial Management Division of the Ministry of Finance. External Audit The functions, duties and responsibilities of the Auditor General are defined in the Constitution and the Financial Administration and Audit Act. The culmination of these functions and duties is a report to Parliament on the accounts and financial operations of the Government. The responsibilities of the Auditor General is in respect of the audit of ministries, departments, agencies and quasi-government bodies whose operations are financed or supported by provision in the annual budget. Public Accounts Committee The Public Accounts Committee is a selected committee of the House of Representatives. The Chairman of the Committee is normally the Opposition spokes-person on finance..

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The Committee is responsible for the Auditor General's Report on the accounts showing the appropriation of the sums granted by the Legislature to meet public expenditure and such other accounts as may be referred to the Committee by the House.

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INSTRUCTION NO. 5 CONSOLIDATED FUND 5.1

Accountant General

The Accountant General shall be the custodian of the Consolidated Fund and shall perform such functions as are conferred upon him by this or any other enactment Part III Section 15(2) of the Act refers. The accounts of Government shall be kept in a manner designed to indicate that the intentions of Parliament as embodied in the Annual Estimates of Revenue and Expenditure and the Appropriation Act have been complied with: (a) Section 24-24J Financial Administration and Audit (Amendment) Act 1992 sets out the accounts and financial statements which the various officers of Government accountable for the receipt and expenditure of public Monies must submit to the Minister and the Auditor General at the end of each financial year for presentation to Parliament; (b) Accounts must therefore be kept by financial year and shall indicate the receipt and expenditure under the programmes, objects and sub-objects set out in the estimates of Revenue and Expenditure; (c) All classes of account books and records shall be carefully preserved for the minimum periods prescribed after which, provided the Archives Committee is agreeable, approval may be sought from the Financial Secretary for their destruction.

5.2

Consolidated Fund Bank Account

A Principal Consolidated Fund into which subject to the provisions of any other Act shall be paid the revenues of Jamaica, has been established in accordance with the provisions of the Act.

5.3

(a)

The Act also provides that no sums shall be withdrawn from the Principal Consolidated Fund except under the authority of a warrant addressed to the Accountant-General by the Minister.

(b)

The Monies at credit of the Principal Consolidated Fund shall be kept in such banks as approved by the Minister in Accounts entitled "The Accountant General for the Consolidated Fund" also there shall be kept subsidiary Consolidated Fund Bank Accounts in such banks as approved by the Financial Secretary.

(c)

The Consolidated Fund account is operated by the Accountant General who shall authorize withdrawals from the account to meet expenditure provided for in the Estimates or otherwise provided for by law, subject to prior authentication by the Auditor General.

Lodgements to Consolidated Fund

The duty of collecting and accounting for revenues payable to the Principal Consolidated Fund and for actual payments into the Fund has been the responsibility of Principal Receivers of Revenue. Details of the revenues to be collected and the collection procedure have been set out in Instruction No. 6. Principal Receivers of Revenue shall forward to the Accountant General as custodian of the Consolidated Fund and the Auditor General a monthly statement showing the amounts actually collected under each head of revenue, the lodgments to the Consolidated Fund and the balance for which they are responsible. "Special Account (s)" are revolving accounts funded with an advance from a bank loan and used exclusively for full and prompt access to the Special Account to make eligible payments which are essential to cover the bank's share of eligible expenses in both local and foreign currencies.

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Each loan using this arrangement has a covenant governing the currency and location of the account and a schedule governing its operation. The legal requirements for establishing a special account are agreed at negotiations set out in the loan agreement, and further explained in the disbursement letter.

5.4

Withdrawals from the Principal Consolidated Fund Account Expenditure met from the Consolidated Fund falls into two broad classes namely: (a) (b)

charges on revenue provided for by special Acts voted services provided under the Appropriation Act.

Charges on revenue provided for by special Acts relate to public debt charges, certain salaries such as those of the Governor General, Auditor General and Judges, Contractor General, Ombudsman and certain other payments such as pensions. These provisions which are included under the heads of expenditure in the annual Estimates of Revenue and Expenditure are not included in the Appropriation Act but are listed in a schedule for payment by the Accountant General as they become due.

Voted services provided under the Appropriation Act are authorized by Parliament Annually and may only be changed by Supplementary Estimates Appropriation Act. Departments are not required to make requisitions for issues from the Principal Consolidated Fund of sums appropriated to meet their requirements as withdrawals from the Principal Consolidated Fund will be authorized by the Accountant General. The Accountant General functions within the general requirements of Section 10 of the Act Subsection (2). "Orders so authenticated by the Auditor General shall be in the prescribed form and shall be the necessary authority to the Bank in which the Consolidated Fund Principal Bank Account is held to issue from the account the amount specified to be paid to such other account or bank as the said order may direct". Withdrawals from the Consolidated Fund Principal Bank Account to meet the requirements of Ministries/Departments are paid into their respective Expenditure Clearing Accounts in such banks as authorized by the Financial Secretary.

5.5

Accounting for Withdrawals from the Consolidated Fund

The Accountant General will requisition withdrawals to be made from the Principal Consolidated Fund Account within the limits of the warrant issued by the Minister of Finance:

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(a)

Cheques issued by ministries and departments within the limits approved by the Minister of Finance's Warrants will be honoured by such banks as designated by the Financial Secretary. The banks will charge these cheque against the respective ministry's department's expenditure Clearing Accounts", after monthly Bank Reconciliations with ministries and departments.

(b)

In making his requisitions for withdrawals the Accountant General will take into account the cash book balance in respect of expenditure clearing accounts for each ministry/department together with stated commitments.

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5.5

(c)

After withdrawals have been approved and made, advice will be made available to ministries and departments concerned. On receipt of such an advice the ministry or department should prepare a journal voucher debiting the Bank Account. The Accountant General will requisition the withdrawals to be made from the Principal Consolidated Fund Account as designated by the Financial Secretary, crediting the Warrants Account with the amount withdrawn.

(d)

The Accountant General shall keep an account for each ministry/department specified in the Appropriation Act to which the original provision and any supplementary provision which may be approved are credited

(e)

Voted services provided under the Appropriation Act are authorized by Parliament annually. To ensure that money is applied solely for the purpose for which it was approved, Parliament appropriates the total estimated expenditure by separate votes, which correspond to the heads of expenditure in the Estimates. The control of the Auditor General is designed to ensure that the Accountant General does not issue from the Consolidated Fund more than the Appropriation Act authorizes for the respective heads.

(f)

Departments are not required to make requisitions for issues from the Principal Consolidated Fund of sums appropriated to meet their requirements as withdrawals from the Principal Consolidated Fund will be authorized by the Accountant General.

(g)

When withdrawals from the Consolidated Fund have been authorized pursuant to Section 9 of the Act: "The Auditor General shall on the requisition of the Accountant General authenticate orders issued by the Accountant General for the withdrawal of sums from the Consolidated Fund Principal Bank Account, so long as the sums requisitioned for the various services do not in the aggregate exceed the respective sums authorized for those services".

Loans from Consolidated Fund

Loans from the Consolidated Fund are monies appropriated for specific purposes and institutions. These now constitute loans provided for: (a) (b) (c) (d) (e)

Miscellaneous Revolving Loan Scheme Institutional Loans Semi-Revolving Training Fund Loans to Civil Servants to purchase computers Parastatal Bodies.

Applications for a loan from any of the above loan categories are processed and approved by the Establishment Division of the Ministry of Finance then submitted to the Accountant General for cheque payments together with a repayment schedule to be enforced by the Accountant General.

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INSTRUCTION NO 6 LOANS AND ADVANCES 6.1

6.2

Advance on Account of Salary (From Accountant General). 1.

The Accountant General is authorized to make, at his discretion, advances to public officers on account of salary, not exceeding one month's gross salary in each instance for urgent domestic affairs.

2.

These advances are repayable in such monthly installments not exceeding twelve, as the Accountant General may approve, together with interest at the rate of 8% per annum payable quarterly, usually by deductions from the officer's salary, and commencing not later than the end of the month subsequent to that in which the advance was made. If the advance is fully repaid within one month of issue no interest is chargeable.

Salary Paid in Advance

Advance to public officers in respect of salary and allowances may be authorized by accounting officers in respect of: (a)

(b)

approved vacation leave to a maximum of two calendar months for officers paid on : i. a monthly basis ii. a fortnightly basis amounts short-paid on salary and allowances.

Recovery of these advances is by deductions from salary beginning in the month subsequent to the one in which the advance was made.

6.3

Purchase of Motor Vehicles and Other Transport Including Insurance Where Applicable

Advances to public officers on account of the purchase of motor vehicles and other transport including initial insurance coverage including initial insurance coverage where applicable are authorized by the Financial Secretary and the funds are disbursed by the Accountant General. These advances are made up to the maximum approved from time to time. The advances are subject to the execution of Bills of Sale in favour of the Accountant General and are repayable in monthly installments from salary over a specified period. No interest is chargeable. Entries by the Ministry/Department to which the officer is attached are made in the salary records. 6.4 Repairs to Motor Vehicles Advances to public officers on account of repairs to motor vehicles are authorized by the Financial Secretary and the funds are disbursed by the Accountant General. These advances are made in amounts as considered reasonable. The advances are repayable in monthly installments from salary over a period. 6.5

Advance to Another Ministry, Department or Agency

Advances in this category include:

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(a)

Advance from a ministry e.g. Ministry of Public Utilities and Transport to an agency under that ministry, e.g. National Water Commission in respect of a project included in the ministry's budget provision;

(b)

Advance from ministries/departments to Ministry of Local Government and Works in respect of construction and other contracts;

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(c)

6.6

Advance from one ministry to another ministry or department on the instruction of Ministry of Finance and Planning, when funds for that other ministry or department are not included in the months warrant allocation.

Mobilization Payments in Respect of Building and Civil Engineering Contracts

The payment of an advance on mobilization for civil and engineering contracts are set out in the following schedule:

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(a)

All ministries, government agencies and public enterprises in respect of contracts awarded by competitive tender will undertake the payment of mobilization of ten percent (10%) of contract sum. In cases where nominated sub-contractors are engaged on the project, the overall limit will be fifteen percent (15%). These limits may be adjusted in special cases but must have the prior approval of the Cabinet. In no event shall the main contractor retain mobilization payments in excess of the amount calculated as he would if he were the sole contractor, unless by special arrangements between himself and the nominated sub-contractor.

(b)

In special circumstances, mobilization payments may be made on negotiated contracts on which the prior approval to negotiate was received from the Government Contracts Committee. Payments will only be made with the approval of the Cabinet. Mobilization Payments in respect of negotiated contracts award by the Ministry of Environment and Housing, Ministry of Education and the Jamaica Defence Force, which are not now subject to examination by the Government Contracts Committee shall be subject to the approval of the Cabinet.

(c)

Mobilization Payment would be made after submission by the contractor of a bank guarantee for the full amount of such payment.

(d)

Mobilization Payment will be recovered within 50% of the contract period and subject to a moratorium to be negotiated, but not exceeding three (3) months.

(e)

In the event of the failure of the contractor to secure the bank guarantee in respect of the entire Mobilization Payment, the ministry, government agency or public enterprise may in its discretion, consent to a reduced mobilization payment equal to the amount of bank guarantee that the contractor is able to secure.

(f)

No tender which requires the payment of mobilization, as a condition of the tender shall be disqualified on the basis of such condition, unless the required stipulated exceeds the provision of Government Policy.

(g)

The clause in the contract dealing with the payment of mobilization shall be contained in the Condition of Particular Application and not in the General Condition of Contract.

(h)

Terms of recovery of any mobilization payment given shall not be varied by the ministry, government agency or public enterprise without the prior written consent of the organization giving the Performance Bond or Bank Guarantee.

(i)

Payment of mobilization will only be made after submission by the contractor of particulars covering all expenses to which the payment is to be applied and only if the client is satisfied as to the details so submitted. The stipulation should be reflected in the contract, as part of the Condition of Particular Application governing the payment of mobilization.

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6.7

Private Telephone Calls Remaining Unpaid

An advance may be raised in the name of a public Officer in respect of unpaid personal and private telephone bills. Steps should be taken to recover from the Officer's salary.

6.8

Travelling and Subsistence Expenses (Local and Overseas)

Local Accounting officers are authorized to make advances to public officers on account of travelling and subsistence expenses (local). Recovery of such advance is to be made from monthly travelling and subsistence. Motor car upkeep and commuted allowances are payable at the end of the month to which they apply. No advances are applicable. Overseas In the case of official visits abroad the approval of the Financial Secretary is required. Approval is also required from the Financial Secretary for contingencies. An officer, to whom a contingencies advance is made on account of travelling and subsistence expenses overseas, is required to account for the advance promptly on return to his/her headquarters. 6.9

Recovery of Travelling and Subsistence Advance

An accounting officer is authorized to recover the advance forthwith from the officer's salary, or by such monthly deductions as may be approved by the Financial Secretary, if an officer fails to account for an advance one month after his/her return to duty. Recovery is made by means of: (a) (b)

6.10

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submissions of bills (charged to expenditure); or refund of cash (in the currency given, in the case of overseas travel).

Recovery of Overpayment (a)

An advance should be raised in the name of a public officer in respect of any overpayment. This action can only be taken if the overpayment is discovered in the same financial year in which the payment was made or prior to the preparation of the Appropriation Account.

(b)

If the overpayment is discovered after the appropriation Account for the year in which it occurred has been prepared, an advance account cannot be opened.

(c)

In the event of (b) above, the amount of the overpayment should be recorded in memorandum account in a register and cash recovered from the officer's salary and lodged to the Accountant General for Miscellaneous Revenue.

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6.11

Cash Advances

(a)

Contingencies Provision The Financial Secretary makes releases from this vote when necessary from the provision under the Ministry of Finance and Planning Head of Estimates for significant payments such as salary revision payments not budgeted for by Ministries and Departments, to meet agreed upon schedule of payments.

(b)

Treasury Deposits Any advances from Treasury Deposits shall be on the specific written authorization to the Accountant General by the Financial Secretary.

(c)

Recovery of Advances Advances should ideally be recovered in the same financial year in which they are made. A number of problems are created when advances are not cleared in the financial year in which they are made, especially if appropriations accounts are not prepared and certified by the Auditor General. EXAMPLE: An Accounting Officer advances funds to Ministry of Local Government and Works in respect of construction work or repairs to government property. All bills for work completed to date are submitted before the year-end, and the advance is partially cleared. The job will be finished in the subsequent financial year. Re-provision of funds to the value of work not yet completed on this job, therefore, has to be requested from the Ministry of Finance and Planning, against which expenditure will be charged in the year in which the provisions is approved. If funds representing value of work to be completed in the financial year are not re-provided, the amount available for the current year's expenditure will be lessened. There may also be a shortage of cash to pay over to the Accountant General, representing the surrenderable balance of a previous financial year. Funds have to be identified before re-provision can be made, thus cash should be issued by warrant in the current financial year on the re-provision. It should be noted that the cash advance in the previous year for the project, which remained unused, has to be surrendered to the Consolidated Fund. Also, advances may be cleared by the receipt in a subsequent financial year. This cash is correctly receipted and lodged to the Ministry/Department's expenditure clearing bank account in that year.

(d)

Advance Created by Payments An advance may be defined as an authorized payment made prior to: 1. 2. 3. 4.

approved budgetary provision for the purpose; warrant allocation for the purpose; supply of goods and services; or completion of work on construction or other contracts.

Departmental Advances are created in one of two ways: 1. 2.

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by payment re the procurement of goods and services; by journals to reflect indebtedness caused by loss,over-payment, etc.

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(e)

Departmental Advances Departmental Advances are: 1.

payments made for goods and services not yet received for which an officer is accountable to ensure that the goods and services are satisfactorily received and that the actual bills, invoice, etc., are submitted along with any unutilized cash for clearance of the advance; or

2.

any indebtedness to a ministry/department created by overpayment loss, dishonoured cheque, etc. which are to be fully recovered.

The following are types of Departmental Advances:

Type (a) Personal Advance

(b) .Imprest Advances

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3.

Ministries/Departments

4.

Other Government

5.

Others

-

-

-

Particular Overpayment of officers Travel Advances FAA Act Instructions 5:39 - 5:24 Private Telephone Calls Other advances to Public Officers for workshop, procurement of supplies, etc. Outstation Advance - FAA Act Instructions Petty Cash Imprest - FAA Act Instructions

Advances to PWD Advances to MOF Re: Gas Coupons Advances to any other Ministry/Department Advances to Public Institutions, Agencies Schools, Statutory Bodies, Government Companies and other Quasi Government Agencies. Advances to Non-Government Organization (NGO) Advances to contractor re: Contract Mobilization Advances to any other person or organization not specified elsewhere.

The Financial Administration and Audit Act Instructions www.mof.gov.jm

INSTRUCTION NO. 7 NATIONAL ACCOUNTS

7.1

Contingencies Fund

Pursuant to Section 118 of the Constitution, there is established a Contingencies Fund which shall consist of issues from the Consolidated Fund principal bank account to defray unforeseen expenditure:

7.2

(a)

When advances from the Contingencies Fund are approved by the Minister on account of any service in accordance with Section 13 of the Act, the Accountant General will credit the sums paid from the Contingencies Fund Account to the account of the particular service to increase the funds available for that service. When provision is made by Parliament the amount is refunded to the Contingencies Fund.

(b)

The Accountant General shall furnish each officer accountable for the payment of public Monies on whose behalf he keeps an account, with half-monthly statement of receipts and payments relating to their accounts.

Treasury Deposits

The Treasury Deposit is a Fund into which is placed sums of money which are being held by the Government on behalf of persons or agencies external to the Government whether for long, medium or short term. Into this fund may be placed sums of money for which the purpose may not be apparent e.g., Monies sent to Accountant General without clear instructions. In addition Treasury Deposit incorporates private and appropriated deposits managed by the Accountant General under regulations associated with each deposit. These include: (a) Private: (b) Appropriated:

Mortgage deposits Suitors deposits Motor vehicle loans

-

where the mortgagor cannot be found deposits under the levies law loans to public officers for purchase of motor vehicle for the performance of their duties

Some other issues from Treasury Deposits are: (a) (b)

transfer by law of certain sums of money into the Consolidated Fund or as instructed by the Financial Secretary. Loans to Public Officers: salary advances approved by the Accountant General advances to Ministries and Departments as instructed by the Ministry of Finance and Planning motor vehicle loans to Civil Servants as approved by the Establishment Division of the Ministry of Finance motor vehicle insurance as approved by the Accountant General.

In the case of salary advances and motor vehicle insurance advances such advances are repayable within one year of such advances being made.

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The Financial Administration and Audit Act Instructions www.mof.gov.jm

7.3

The Accountant General's Financial Statements

The financial statements referred to in Section 24G-(1)(a)-(d) will be prepared, signed and transmitted by the Accountant General to the Ministry of Finance and Planning and the Auditor General. They comprise the following:

(a) (b) (c) (d)

7.4

the statement of the Receipts and Payments of the Consolidated Fund; a statement of assets and liabilities of the Consolidated Fund showing balances in respect of current assets and liabilities a summary of transactions of the Consolidated Fund Principal Bank Account as compared with budget forecast a statement of the revenue and expenditure of the Consolidated Fund Principal Bank Account as compared with the original and revised budget forecasts.

Statement of Receipt and Payment

In addition to the financial statements which must be submitted in accordance with the Act, the Accountant General is required to prepare, sign and submit to the Auditor General and the Financial Secretary. (a)

A statement of receipt and payment transactions for the financial year in respect of each account on his books. The statements should show, inter aliaReceipts (i) (ii) (iii) (iv) (v) (vi)

The total sum received from the Consolidated Fund and credited to Statutory Accounts. The total sum received from the Consolidated Fund and credited to the Vote Account. The total of the miscellaneous other receipts received for credit to the Vote Account. The total sum received on account of Special Funds. The total of the miscellaneous other receipts received for credit of Special Funds. The total sums received on account of Departmental Deposits. Payments

(i) (ii) (iii) (iv) (b)

A statement setting out in respect of each account on his books. (i) (ii) (iii) (iv) (v) (vi)

7.5

The total payments made on account of Statutory Expenditure The total payments made on account of Voted Expenditure. The total payments made on account of Special Funds. The total payments made on account of Departmental Deposits.

The total receipts The total payments The (cash) balance in hand The balance in the Consolidated Fund Principal Bank Account The amount of unpaid cheques The total funds available.

Statement of Transactions

The Accountant General is required to forward a Statement of Receipts and Payments to each department on whose behalf he keeps an account not later than three working days after the 15th and the last day of each month. It is the responsibility of the Department concerned to check the schedule and notify the Accountant General, in writing, within seven days of the receipt of the statement of any discrepancies or errors made by him.

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The Financial Administration and Audit Act Instructions www.mof.gov.jm

7.6

7.7

Annual Statements of Account (a)

The Annual Statements required under Section 24H of the Act are set out in Subsection (1).

(b)

The Finance Accounts which are the statements listed in subsection (1) and which the Minister is required to lay before Parliament as soon as possible after the close of each financial year.

(c)

The Appropriations Accounts and other Departmental Accounts are listed in Section 24(1))which are required under subsection (1) to be submitted to the Auditor General annually and within a period of four months after the close of each financial year, and, in due course, laid before Parliament.

The Annual Financial Statement

The annual financial statements which the Accountant General and Ministries and Departments are required to prepare are set out in Section 24G, 24H and 24 I of the Financial Administration and Audit Act these are: (a)

The Finance and Accounts which are the statements listed in Section 24H-(1)(a)-(k) the Act and which the Accountant General is required to prepare, sign and submit to the Auditor General within four months after the close of each financial year;

(b)

The Annual Statements which are listed a Section 24G-(1)(a) of the Act and are required to be prepared and signed by t he Accountant General and submitted to the Ministry of Finance and Planning and the Auditor General within four months after the end of each financial year; and

(c)

The Departmental Accounts which are defined in Section 24(G-(1)(a)-(c) of the Act and which Accounting Officers are required to prepare, sign and submit to the Ministry of Finance the Auditor General, also within four months after the end of each financial year.

The Act sets out the minimum information, which must be submitted to Parliament annually. In order to present a complete account of the finances of Jamaica and the transactions of departments, it will be necessary to provide a number of supplementary statements, and to arrange them in such an order that the information supplied may be readily assimilated.

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The Financial Administration and Audit Act Instructions www.mof.gov.jm

INSTRUCTION NO. 8 COLLECTION OF PUBLIC MONIES

8.1

Principal Receivers of Revenue

Under the Act the responsibility for collecting and accounting for the revenue payable to the Government is placed with the Principal Receivers of Revenue namely, the Accountant General, Commissioner of Customs, Commissioner of Inland Revenue, Commissioner of Stamp Duty and Transfer Tax and the Postmaster General. It shall, however, be the duty of the Accounting Officer to ensure that the revenues collectible by the Ministry/Department under his control are actually collected and brought to account, and that adequate safeguards are established to secure an effective check of the assessment, collection and punctual accounting for such receipts. Principal Receivers of Revenue, with the approval of the Ministry of Finance, are authorized to open official bank accounts to which all their collections will be lodged in the first instance and from which will be transferred on a timely basis sums due to the Consolidated Fund. The following revenues and such other revenues as may be prescribed from time to time shall be collected and lodged to the accounts operated by the respective commissioners. (i)

Commissioner of Customs: Customs Duty Travel Tax

(ii)

Commissioner of Inland Revenue: General Consumption Tax Special Consumption Tax Income Tax Other Licences Betting, Gaming and Lotteries Duty, Fees, Levies Education Tax Contractors Levy Land and Property Tax* Motor Vehicle Licences* Stamp Duty

(iii)

Commissioner of Lands: Land Sales

(iv)

By the Commissioner of Mines: Royalties

The Postmaster General shall be responsible for the collection and accounting for postal and telegraph revenue. The functions of the Principal Receivers of Revenue and Accounting Officers comprise:

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(a)

Paying drawbacks and refunds authorized by law from revenue collections so that only the net revenue shall be paid into the Consolidated Fund.

(b)

Collecting and accounting for revenue approved by Parliament as departmental/miscellaneous revenue rests with the Accounting Officer for the departments concerned and remitting same to the Accountant General on a monthly basis.

(c)

Ensuring that the duty of collecting monies payable to the Government is assigned to staff of the permanent establishment.

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(d)

Ensuring that collecting officers issue an official receipt in respect of every sum of public money received by them except where payment is made in respect of the purchase of adhesive or embossed stamps, stamped stationery or the despatch of inland telegrams.

(e)

Ensuring that whenever a public officer not being a collecting officer receives public money, such officer is required to pay the said money to a collecting officer without delay and ensure that an official receipt is issued for the amount.

(f)

Ensuring that copies of official receipts are not issued, but that a certificate of payment is furnished upon application.

(g)

Ensuring that in cases where court fees, licenses and other dues are collected by means of adhesive stamps the stamps shall be fixed as far as possible by the persons paying such revenue. The value of the stamps should be checked to ensure that the correct amount of money has been paid and the stamps cancelled by an officer other than the officer receiving the stamps or stamped document.

8.2

Cheques

(a)

Cheques may be accepted in payment of public monies provided that: (i) (ii) (iii)

the cheque is drawn in favour of the Ministry, Department, or Agency to which the payment is being made; the cheque is drawn for the exact amount due; the drawers name, address (work and home) and telephone number (work and home) are clearly written on the reverse side of the cheque;

(b)

Cheques may be accepted by a collecting officer in payment of a tax, fee or any other payment of a like nature if the requirements of Instructions above are complied with.

(c)

Uncertified cheques or cheques not drawn by a commercial bank or a Government Institution should not be accepted by collecting officers in payment of goods, customs and excise duty, stamp duty, other duties, and licences of any description whatever. A collecting officer who does so, even in circumstances in which his personal knowledge he is satisfied that the cheque accepted would be honoured by the drawer's bank, may be held personally responsible for any loss or deficiency in public funds occasioned thereby

8.3

Cash Cheques (a) Cash cheques issued by financial institutions which are similar to Travellers Cheques and available only in local currency having been purchased from a commercial bank, may be accepted by collecting officers in payment of goods, customs and excise duty, stamp duties and licences. (b) The collecting officer in accepting these cash cheques must ensure that: (h) The cheques are drawn in favour of the ministry, department or agency to which the payment is being made. (i) The presenter countersigns in the prescribed section on the face of the cheque in the presence of the collecting officer. (ii) The countersignature must correspond with the signature already affixed to the face of the cash cheque. (iii) The collecting officer should only accept cash cheques, which appear to be genuine, and insist on the positive identification of the presenter, (acceptable identification being passport, driver's licence and National Voter's identification). The type and reference number of the identification

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The Financial Administration and Audit Act Instructions www.mof.gov.jm

document accepted must be indicated on the back of the cheque and signed by the collecting officer. (iv) Any loss to the Government resulting from the failure of a collecting officer to fully comply with the above requirements shall render such collecting officer liable to surcharge. (c) Every receipt (duplicate included) issued in respect of a payment made by cheque, whether certified or uncertified should bear a stamp inscribed as follows:"Cheque accepted as conditional payment only" (d) Notwithstanding the provisions of 8.2 (a) and (b), senior officers of departments are allowed discretionary powers in accepting or not accepting cheques. For example, where a cheque is dishonoured by the bank on which it is drawn because of insufficient funds, no further uncertified cheques should be accepted from this drawer. However, if a cheque is dishonoured because of a wrong date or an unsigned error, this should not prejudice the acceptance of future cheques from this drawer. (e) Should any cash cheque be dishonoured by the Bank on which it is drawn, the drawer should be regarded as having made no payment. Consequently, appropriate action should be taken by the Accounting Officer or Head of Department concerned to collect the amount due. (f) Officers who receive any public monies are required to pay the whole amount of such monies daily or at the earliest opportunity, into an official bank account, (g) Between the time of receipt and the time of payment into the bank or to a collecting officer, no public monies shall be made use of in any way whatsoever, nor shall any officer advance, or lend any sum for which he is answerable to the Government. (h) Under the Financial Administration and Audit Act, auditors may elect to seal off a safe if the custodian of the safe is absent at the time of a surprise visit. Whenever auditors affix such a seal, the safe should not be entered unless (i) the auditor is present; or (ii) permission to enter is given by the auditor. Any breaking of seals without adherence to the above constitutes a breach of Financial Regulations and is subject to disciplinary action. (i) Whenever monies are received by registered post or are otherwise enclosed in letters particulars of the transaction must be recorded in a Value Book as soon as the letters are opened , and the money and Value Book passed promptly to the collecting officer responsible for bringing the monies to account. (j) Accounting Officers, Principal Receivers of Revenue and other receivers of revenue are required to report promptly to the Financial Secretary any failure on the part of a collecting officer to receive and duly account for any sums receivable by him.

8.4

Registered Mail

Accounting Officers should ensure that proper arrangements are made by each Department for obtaining registered mail from the Post Office. These should include the naming of the person or persons to whom mail should be delivered and the times at which deliveries will be made: (a)

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Registered mail intended for a Government Department will be recorded by the Post Office in a delivery book numbered with pages comprising original and duplicate. Entries should indicate the date of delivery, the number of letters delivered and the registration number and office of origin of each letter. At the time of delivery of letters the delivery advice must be signed by the Post Office

The Financial Administration and Audit Act Instructions www.mof.gov.jm

clerk making delivery, and receipt of the letters acknowledged by the Department's authorized agent. In Departments where substantial sums of money are regularly received by registered mail, two persons should be assigned the duty of fetching registered mail from the Post Office. (b)

In the Department registered letters will be checked against the advice slip and opened by two officers in the presence of each other. Where they contain money or other negotiable valuables details of each letter and value will be entered in the Value Book and the entry initialed by both officers. Letters containing no value need not be entered in the Value Book but an entry "Nil" should be made beside the appropriate item on the delivery advice and initialed by both officers. On completion of the mail opening procedure the Value Book with the letters and their contents must be handed over to the collecting officer authorized to receive such monies.

(c)

The Collecting officer will acknowledge receipt of the letters by initialing each entry in the Value Book and bring all monies to account on the day of its receipt. The serial number and date of the receipt issued for respective amounts will be noted on the relevant letter and in the column provide in the Value Book.

(d)

At least once a week a check of the Value Book should be undertaken by an officer other than the collecting officer or the officers opening registered mail, to ensure that: (i) (ii)

(e)

8.5

except for those items marked "Nil" and initialed by two officers, details relating to all registered letters listed on Post Office delivery advice have been entered in the Value Book. receipts have been issued for all amounts entered in the Value Book and the amounts have been brought to account in the Cash Book promptly, or otherwise satisfactorily accounted for.

Delivery advice relating to registered mail should be filed in chronological order and retained for a period of three years.

Control of Official Receipts

All official receipts and forms, except those for the time being prescribed by any law or by any Rules of Court, are prescribed, printed and issued under the authority of the Minister. No public officer shall issue, nor shall any person print any form of official receipt without the express sanction of the Minister. All official receipt forms shall for the time being be printed by the Printer assigned by Government. 8.6

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Official General Receipt (a)

Official general receipts are printed and bound into books comprising 100 receipt forms and duplicates, each set i.e. receipt from and duplicate, numbered consecutively in a series of 100,000 receipts.

(b)

The Accountant General shall be responsible for maintaining adequate stocks of official general receipts to meet the requirements of the public service.

(c)

Accounting Officers shall obtain supplies of official general receipts by requisition on the Accountant General. The Accountant General shall maintain record for receipt books in which details of all receivals and issues shall be recorded.

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8.7

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(d)

In order to maintain at all times adequate control over receipt books under their charge, Accounting Officers are required to maintain a stock record to show receivals from the Accountant General and issues to the various Branches and Departments under their control, while the latter will maintain a receipt book register for recording the officers to whom individual books are issued and their return on completion.

(e)

Officers responsible for the custody of receipt books must ensure that the serial number on a receipt and the corresponding duplicate is the same and that the receipts in a book are in strict numerical sequence. Any error in numbering which may be discovered must be reported promptly to the Accounting Officer and the book should not be put into use without his authority.

(f)

Every official receipt shall be prepared to show the date of receipt, the amount of money paid (in words and figures) and the purpose for which payment is made, and shall be signed by the collecting officer who receives the money. Double-sided carbon paper shall be used so that the entries made on the face of the receipt are reproduced on the back of the original and on the copies retained for official use.

(g)

No erasures or amendments shall be made on an official receipt. Whenever an error is made the receipt must be cancelled and a new one prepared. A receipt shall be cancelled by writing the word 'cancelled' across the face of the receipt and its duplicate. If the original was separated from the book it must be pasted to the margin of the duplicate in such a way that all entries made on the duplicate can be readily seen.

(h)

Each receipt form, and duplicate, are valuable document and must be accounted for. In the event of the loss of a book or of a form from a book, the officer to whom the book is issued is liable to be surcharged in accordance with the provision of the Act. On return of a receipt book, which has temporarily left his charge an officer, should therefore satisfy himself that the duplicates of receipts issued and the unused receipts (originals and duplicates) are intact.

(i)

Receipt books, whether used or unused should be registered when sent through the post.

(j)

The loss of a receipt or a form from a book should be advertised immediately on discovery of the loss.

Special Receipts (a)

The use of special official receipt forms is authorized to meet the special needs of certain Departments. The responsibility for maintaining adequate stocks and for the custody and control of special official receipts rests with the Head of the Department concerned.

(b)

Except in the case of receipt forms designed for use with a "receipting machine" or for other special reason, receipts shall be in bound book form each receipt comprising a receipt form and at least one copy (duplicate).

(c)

The procedures relating to the control and use of official general receipts shall apply in all respects to special forms of official receipts.

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8.8

Credit Cards (a)

(b)

'Credit Cards' may be accepted by a collecting officer in payment of any tax, fee, goods, customs duty, licences of any description whatever, provided that the collecting officer does so in keeping with any 'Operational Procedures' for acceptance of such 'Credit Cards' issued by the authorized Commercial Banks. In the event that a collecting officer accepts an unauthorized Credit Card or is in breach of the operational procedures for Acceptance of Credit Cards issued by the authorized Commercial Bank, thereby occasioning any loss to government, the requirement of Instruction No. 6.3 (c) shall be applied.

CREDIT AND DEBIT CARDS 8.8 (1) Credit and Debit Cards, issued by Financial Institutions and which are acceptable for transactions by the local bank in which specified revenue accounts are held, may be accepted when used in payment of Goods and Services, Customs and Excise Duties, Taxes and Licences. 8.8 (2)

The collecting officer in accepting payments via Credit or Debit Cards must ensure that: 1. the bank in which the revenue account is kept accepts the card presented by the cardholder, for the payment of monies to Government; and 2. an official receipt, with the additional information, 'Credit Card' of Debt Card, stated thereon as the method of payment, is issued for the transaction.

8.8 (3)

The collecting officer in accepting payments via Credit Cards must ensure that:

1.

an 'Electronic Data Capture Machine' or 'Manual Imprinter' is used to prepare the 'Sales Draft' with the required number of copies, which shall have thereon the following: (i) transaction date; (j) account number (minimum of List Four numbers); (k) authorization number; (l) type of card; (m) expiration date of the card; (n) cardholder's name; and (o) monetary value of the transactions in local currency if the card is a local credit card and in US$ if the card is from a foreign country;

2.

the cardholder signs the sales draft in the prescribed section in the presence of the collecting officer; and

3.

the signature corresponds with the authorized signature affixed on the back of the card.

Where the taxpayer presents a foreign currency denominated card the payment due shall be converted at the applicable rate of exchange, the customer advised and the relevant information noted on the official receipt. Any loss to the Government resulting from the failure of a collecting officer to fully comply with these requirements shall render such collecting officer liable to surcharge.

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8.8 (4) The collecting officer in accepting payment via a Debit Card must ensure that an 'Electronic Data Capture Machine' is used to prepare the 'Sales Draft' with the required number of copies which shall have thereon the following: (a) (b) (c) (d)

transaction date; account number (Less the last four digits); authorization number; and monetary value of the transactions in local currency.

8.8 (5) It shall be the responsibility of Accounting Officers and Principals Receivers of Revenue to ensure that where public monies are collected via Credit or Debit Cards, a daily reconciliation of these transactions is done by effecting a comparison with the transactions stated in the banks' records.

8.9

Accounting for Miscellaneous Revenue Receipts (a)

Accounting personnel should: (i) (ii)

(iii)

(b)

indicate on the lodgment slip the name of the Ministry/ Department making lodgment; indicate on the lodgment slip the revenue items to which the lodgment relates, which must correspond with the code numbers assigned to the Ministry/Department in the Revenue Estimates; submit to the Accountant General in duplicate the required monthly statements showing amounts lodged during the month and the date of each lodgment.

The collection and proper lodgment of all items of Miscellaneous Revenue indicated in the Estimates are the responsibility of accounting officers.

(c) (i) (ii) (iii)

(iv)

All collections of miscellaneous revenue are to be lodged promptly for credit to the Accountant General for Miscellaneous Revenue Account at the designated commercial bank. Details of items of miscellaneous revenue which make up each lodgment should be listed on the reverse side of the lodgment slip. Collecting Ministries and Departments should forward to the Accountant General's Department a monthly statement in duplicate showing amounts lodged during the month and the date of each lodgment. On receipt of this statement the Accountant General's Department is to verify receipt of the amounts recorded in the Statement of Ministries and Departments.

8.10

Revenue Accounting

1.

Revenue Accounting encompasses the whole process of assessment, collection, accounting and reporting on revenue.

2.

The objectives of revenue accounting are to: (a) (b) (c) (d) (e) (f)

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determine the amount of revenue to be collected; ensure that revenues collectible are collected; ensure that revenues collected are properly receipted and accounted for; ensure that revenues are promptly paid into the Consolidated Fund; ensure that information relating to revenue accounts are available on a timely basis; ensure that there is adequate system of internal control in the collection and accounting for revenue.

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3.

Revenue Accounting has three (3) main components viz: Component (a) Assessment (b) Collection of Remittance (c) Main Accounts (i.e. final Accounts and Accounts Consolidation)

Person Responsible Tax Administrator Revenue Collectors Revenue Accountants (Head Office)

4.

In addition to the financial Administration and Audit Act, other statutes which affect Revenue Accounting are: Income Tax Act Customs Act Property Tax Act Tax Collection Act

5.

Further information of Revenue Accounting is at Appendix

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INSTRUCTION NO. 9 PAYMENT OF PUBLIC MONIES

9.1

Authorized Expenditure

(a) No payment of public Monies shall be made as a charge on the Consolidated Fund unless authorized by law or by a resolution of Parliament made under the authority of the law. (i)

The payment of public Monies outside of Jamaica shall be made by the Accounting Officer through the Accountant General or in accordance with the approved Foreign Exchange Budget and on release of the necessary funds issued under warrant by the Minister of Finance.

(ii)

All applications for release of foreign exchange for Official Visits Abroad must be submitted to the Ministry of Finance for approval in accordance with the procedural guidelines laid down at Instruction 9.17 (1) meticulously followed in respect of the operation of the Foreign Travel Vote.

(b) Each Ministry shall put in place a proper system of commitment planning and control (See Commitment Control Manual) (c) Accounting Officers and Heads of Departments should issue written instructions (i) as to the officers who are authorized to: - prepare commitment requisitions - authorize payment vouchers; - prepare and issue cheque inventory; - sign cheques - sign cheque summaries (ii) to ensure that no commitment is entered into without first establishing the availability of funds to meet the expenditure and to avoid improper payments. (d) Where services are undertaken by private persons or establishments on behalf of Government departments or institutions the price must be clearly understood and agreed and shall be in writing. Unless provided for in a contract no advance or interim payment of money shall be made in respect of a service and payment shall be made only on satisfactory completion of the service. (e) Where money is provided in the Annual Estimates of Expenditure for contribution towards the cost of services undertaken by organizations other than Central Government Departments, such money shall be paid in equal quarterly installments at the beginning of each quarter or at such intervals as authorized y the Minister. (f) Before contributions referred to at Financial Instruction 9.1 (e) above are made, the government may, as deemed necessary, call upon such institutions to finish any audited or unaudited accounts of the institution or other financial statements relevant to the contribution. The government shall also cause to conduct an audit of its accounts by its own auditors or auditors appointed by them. If the government is satisfied that the contribution when paid is likely to be utilized for purposes other than for which it is voted, the government shall reserve the right to cancel, suspend or reduce the contribution.

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9.2

Payment Voucher

In accordance with Section 19C of the Act no payment shall be made from any Consolidated Fund Bank Account or any other official bank account except by voucher: (a)

certified or approved by the accountable officer acting within the limits of his authority;

(b)

such certification or approval to be given after ensuring that goods and services delivered or rendered according to valid agreement;

Each payment of public money must be supported by a payment voucher or a claim which incorporates the details required for a payment voucher. 9.2 (1)

Preparation of Payment Vouchers

The Official Payment voucher is the medium which is used to authenticate and authorize the payment of public money and is the permanent official source document supporting all payment entries made machines (typewriter, etc.) Or in manuscript using pen and ink. After preparation, if it becomes necessary to make any alteration on a payment voucher, the incorrect data must be struck out and the correct date inserted usually above the incorrect entry. All such alterations must be initialed by the person preparing the voucher, the person checking the Voucher and the person certifying the Voucher. On no account must any erroneous data on a payment voucher be covered with correcting fluid and new data overwritten in the same space. If for any reason it becomes necessary to amend the amount being paid, more than once, that payment voucher should be discarded and a new one prepared. The Auditor General has been requested to report on any breach of these instructions and any such case will be regarded as an improper payment, making officers responsible, i.e., the person preparing the voucher, the person checking the voucher, the person certifying the voucher and the person authorizing the issue of a cheque against the voucher, liable to disciplinary action in accordance with the provisions of the Financial Administration and Audit Act - Section 20 (b). (a) Payment Vouchers, shall, as far as practicable indicate, inter alia:(i) (ii) (iii) (iv) (v) (vi) (vii) (viii)

the Head, Subhead, Programme, Object and Sub-object against which payment is charged; the name and address of the person to whom the payment is made; the amount payable both in figures and words; the nature of the payment the authority for payment if a copy of the same is not attached with the Payment Voucher; where appropriate, that the service specified has been satisfactorily performed or goods received in good condition; that funds are available; the supporting bill/invoice/claim should be rubber stamped "paid" and its correctness must be certified by an authorized officer.

Payment shall be made only on the "original" copy of the supporting documents. If payment is claimed on "duplicate" copies of supporting documents, payments shall be made only if an authorized officer certifies: "The Original copy/copies of the documents has/have been either lost or misplaced. It is certified that no payment on the original copy/copies has/have been made and as and when the original copy/copies is/are traced, it/they will be cancelled and attached to the Payment Voucher." (b) The signature of the officer authorized to certify the voucher for payment is intended to be a guarantee of the accuracy of every detail on the voucher. The certifying officer will therefore ensure that:-

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(i) (ii) (iii) (iv) (v) (vi) (vii)

9.2 (2)

9.2(3)

The person named in the voucher is the person entitled to receive payment. All authorized deductions from the amount payable have been made. The services specified have been duly performed. The prices charged are either according to contracts or approved scales, or are fair and reasonable according to current local rates. The authority for payment is indicated. All calculations have been verified. Payments for goods are supported by a certificate that the articles have been received and, except in the case of small supplies of expendable items, that they have been taken on charge in the appropriate inventory or stock record.

Unauthorized Payment (Expenditure) (a)

In the event of an unauthorized payment being made in consequence of any certificate on an incorrect voucher, the officer who signs the certificate will be held responsible and is liable to be surcharged with the amount.

(b)

An acknowledgment or a receipt, duly stamped where necessary must be obtained in respect of each sum of public Monies paid.

(c)

The date and mode of payment must be indicated on each payment voucher and the receipt by the payee attached thereto, except where payment has been made by cheque which carries a form of receipt.

(d)

When payments are made to a person other than the person named in a voucher the authority under which the payment is made shall be noted on the voucher, and shall be retained for inspection by the Audit Department if required.

(e)

The payment of public Monies in cash shall for the time being be restricted to a limit of $1,000. This limit on cash payments shall not apply to payments in respect of salaries and wages. All payments in excess of the approved limit shall be made by cheque.

Payment Voucher - Computer (See 9.2 (1) above)

9.3

Control of Cheques - Manual (a) Cheques should be signed by two officers one of whom should be a senior officer. The name and specimen signature of an officer authorized to sign cheque inventories should be supplied to the Accountant General. (b) Cheque inventories should be prepared in duplicate, the original being forwarded to the disbursement unit and the copy retained to support the entry in total, in the accounts department. Cheque inventories should be numbered consecutively, and a separate list bearing the appropriate inventory account number prepared for each Head of Estimates being charged. (c) In cases where public Monies are paid by cheques drawn on a commercial bank account such cheques shall be signed by two authorized officers unless special authority has been obtained or where cheques are prepared and signed by a mechanical process. Counter foils or copies of all cheques must be retained for reference.

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(d) If for any reason a instrument and its copy or counterfoil and the cancelled cheque preserved for reference. (e) Accounting Officers and Heads of Departments should ensure that adequate safeguards exist in their accounting branches for (i) (ii) (iii) (iv)

the receipt, custody and issue of blank cheques, where there are no cheque printing machines; the signing of cheques; (cheque signing machines); the custody and delivery of signed cheques the custody of the cheque printer, where applicable.

(f) In cases where a payee has received a cheque and has reported it lost or mislaid, the payee is required to sign a letter of indemnity in the appropriate form, before a second cheque is issued. Where such an indemnity is given, it should be properly stamped and locked away since it will be required to support any claim to be made on a payee, should both cheques be cashed. (g) Before the second cheque is issued it will be necessary for the Accounting Officer/Head of Department to issue a "Stop Notice" to the bank on which the original cheque was issued and get its confirmation (i) that the original cheque has not been cashed; (j) that "Stop Notice" instructions have been noted by the bank. (h) When a cheque printer is non-functional or not used, cheques should be written very carefully in ink. The amount in writing and figures should agree. Both should be written to the left of the lines and in such a way as to make alteration difficult if not impossible. The amount in words should be written in full - with the words following closely together. The figures should be written as close to the money sign ($) as possible, e.g. Please pay to ...... John Doe...... The sum of ........One thousand ,eight hundred and ninety-two dollars and seventy nine cents ($1,892.79/100) only....... (i) A line should be drawn through any blank spaces remaining after the words and figures have been filled in. (j) If an alteration is made on a cheque the alteration should be confirmed by the signatures of the drawers being placed as near to the alteration as possible (k) A cheque may be crossed by drawing t (l) All cheques sent out by bearer or by post should be crossed. Salary cheques are exempt. 9.4

Procurement - Payments

The procedure relating to the payment for goods purchased for the use of Government Departments is set out in the Procurement Procedures Manual issued under the Act. For payments in foreign currency, see Section 9.10 (1). 9.5

Control of Cheques - Computer (See Appendix II)

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9.6

Salaries and Deductions - Manual (a)

The payment of salary to monthly paid employees of Government shall be in respect of each calendar month. Payments in respect of each department or unit shall be made on a pay list authorized by the Accounting Officer or other responsible Officer to whom this duty might be delegated. Payment must

(b)

Fractions of a cent in monthly salary should not be paid monthly but should be accumulated and included in salary for the month of March.

(c)

For the purpose of calculating salary for a portion of the month, the Officer should be paid for the number of working days (and a public holiday should be regarded as a working day) as a fraction of the total number of working days in that month times the monthly rate, as per example below: August 1 - August 30, 1999 21 22

x

$35,800 = 1

$34,172.73

(d)

Monthly paid employees of Government shall be paid salaries and allowances attached to posts on the 25th day of each month. In cases where this day falls on a Friday, Saturday or Sunday, pay day shall be the Thursday immediately preceding. Specific directions will be given for payment in respect of the months of December and March.

(e)

The payment of wages to weekly and fortnightly paid employees of Government shall be made on the Friday preceding the end of the week or fortnight. Whenever such Friday is not devoted to work, payment shall be made on the Thursday preceding the end of the week or fortnight. Wages for periods of less than one week shall be calculated as a fraction of 5 days.

(f)

Where payment is made in cash the net amount payable to each employee must be counted by one person and checked by another before being paid and the employee's signature obtained as acknowledgment of receipt of the amount paid. As far as possible the payroll, after payment, should be signed by the paying officer and the witnessing officer/officers as the case may be. The paying officer and/or the witnessing officer shall be responsible to make good any amount wrongly paid. If there is any doubt as to the identity of the payee he must be identified to the satisfaction of the paying officer by one or more responsible persons. Where the payee is unable to write, his mark should be made in the presence of a witness.

(g)

It shall not be necessary for an acknowledgment signature to be obtained where pay is lodged to bank accounts. The bank's acknowledgment of receipt and deposit to the employers account shall be sufficient evidence of payment to the employee.

(h)

In the case of payment to a number of labourers, acknowledgement signatures need not be obtained. The paying officer must certify on the pay list that the payments have been actually made, such certificates being countersigned by some person other than the paying officer, who witnessed the payments.

(i)

A certificate must be given by the paying officer in respect of each separate pay list, indicating the items that have been paid and those unpaid on the pay list. Where cash payments are made by two persons the certificate shall be signed by both persons. Cash representing unpaid wages must be paid over to the collecting officer at the earliest possible opportunity after payments are completed and an official receipt obtained for the amount. The collecting officer shall enter the details of the unpaid wages in a register called the "Unpaid Wages Register" and all subsequent payments of unpaid wages shall be made only by reference to this Register.

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9.7

Salaries Paid by Accountant General (a) The Accountant General is authorized to pay monthly Salaries on behalf of certain ministries and departments. Ministries and departments shall pay to the Accountant General by cheque the amount for gross salaries on time for him to fund the Salary Account. It is the responsibility of the Accounting Officer to notify the Accountant General of the rates of salaries and allowances to be paid and of the deductions to be made from officers' salaries from time to time as well as the dates on which such salaries, allowances and deductions should cease. Copies of the pay bills are sent to these ministries and departments advising them of payments made on their behalf. These ministries and departments must maintain a salaries control record which should indicate what payments ought to be made by the Accountant General. This record should be ruled to provide a break-down of the gross salary payable under Head, Subhead, Object and Sub-Object accounts. The copies of the pay sheets should be compared with this control record to ensure agreement. Any discrepancies should be taken up with the Accountant General. (b) The payroll system operated by the Accountant General makes it necessary to have a 'closed period' for monthly salaries during which no changes in pay information will be made. The 'closed period' shall be from the 7th to the end of each month and variations in pay notified to the Accountant General during this period shall not be taken into account in the current pay period but will be taken into account and reflected in the pay list for the succeeding month. (c) The Accountant General shall not be obliged to make individual payments on account of salary outside of the regular pay procedure. (d) Where a department considers it necessary that an officer should receive pay 'out of time' the Department may pay the officer by issuing a cheque which should be charged in the Department's books as an advance to the officer. Every such advance shall be immediately notified to the Accountant General with a request that the sum advanced be deducted from salary payable to the officer in respect of the next regular pay period, and that the amount be refunded to the department. (e) In cases where the payment of salary in advance is approved to an officer proceeding on vacation leave, and salary for some portion of the leave is to be paid by the Government Overseas Agents, the advance must be taken into account in preparing the leave and last pay certificate.

9.8

Statutory and Other Deductions

Official and other authorized deductions from pay as listed hereunder must be shown on the pay sheet. The amounts deducted from pay shall be paid to the authorized organization or credited to the appropriate Government accounts within ten (10) days of the effective date of deduction or earlier as per the requirements of the Statutes under which the deductions are effected. Statutory (a) Income Tax (PAYE) (b) National Insurance Contributions (c) National Housing Trust contributions (d) Family benefits (e) Provident Fund Contributions (f) Education Tax Others (a) (b) (c) (d)

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Repayment of Motor Car Loans Repayment of Salary Advance Repayment to Students' Loan Bureau Rent of Government Quarters

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(e) (f) (g) (h) (i)

Life Insurance premiums paid by public officers by voluntary monthly deductions. Contributions to Thrift Societies and Credit Unions Contributions to Group Health Insurance Alimony payments and other deductions as per Court Orders. Pensions, compassionate payments and related allowances payable monthly shall be paid on the 25th day of each month, except in the instances where the Financial Secretary directs otherwise. In cases where this day falls on a Friday, Saturday or Sunday payment shall be made on the preceding Thursday. (j) On the retirement, resignation, dismissal or death of an officer the outstanding balance of any advance or debt due to the Government must be recovered in full from any amounts due to the officer or his estate. If such money is insufficient to cover the debt to Government the Accountant General must be informed immediately so that the amount may be recovered from any pension, gratuity, provident fund payment or compassionate payment which may be made to the officer or his estate.

9.8(1)

Education Tax

(a) For the purpose of the Act "Emoluments" mean any emoluments assessable to income tax under paragraph 5(c) of the Income Tax Act (other than annuities, pensions, superannuation or other allowances payable in respect of past services). (b) Contribution of Education Tax will follow the pattern of those of the National Housing Trust Act, in that they will be based on the number of Mondays in each year. (c) Employees contributions represent two percent (2%) of emoluments, and like National Housing Trust, should be deducted after the calculation and deduction of Income Tax payable.

9.8(2)

Salaries and Deductions (Computer)

Ministries and departments may make use of software packages for the purpose of salary computation and deductions.

9.9

Unauthorized Expenditure

No Public Officer shall commit the Government to any expenditure unless he/she has been so authorized in writing by his/her Permanent Secretary or Head of Department, or has been advised in writing by the vote control officer, that funds were provided and are available for the specific purpose for the proposed expenditure. Failure to comply with this instruction will render the officer concerned liable to surcharge of a sum up to the amount of the improper payment. An example of the wording of such a letter of appointment is as set out hereunder:"In accordance with the Financial Administration and Audit Act Instruction No. 9.5 you are hereby authorized to commit expenditure not exceeding $................ in relation to the following areas: ( a) ............................................................................................. ( b) ............................................................................................. ( c) .............................................................................................. Each item of expenditure committed will be subject to funds having been provided and being available for the particular purpose as required by Financial Instruction, No. 9.5. Failure to comply will render you liable to surcharge of a sum up to the amount of any resulting improper payment." Each letter of appointment must be duly signed and secured by the Personnel Director/Officer, as it will now form a part of the officer's personal records

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9.10

Confidential Expenditure

Any necessary expenditure from provision in the Estimates for services of a confidential nature, the purpose and particulars of which cannot be divulged, will be supported in the accounts by a certificate of payment given by the accounting officer and a declaration that he has satisfied himself that the money has been properly expended.

9.11

Contracts

Values and related procedures for the award of Government Contracts - (See Appendix III)

9.12

Settlement of Undischarged Commitments After the Close of Financial Year

Under Section 24L Subsections (2) and (3) of the Act provision is made for the settlement of undischarged commitment within the three months after close of the financial year, the following procedures should be applied: (a) Accounting Officers and Heads of Departments should submit to the Ministry of Finance within thirty (30) days after March 31 of the relevant financial year, a detailed listing of all commitments entered into for goods delivered, services rendered and work completed before March 31 (See format at Appendix IV). The completed statement must be certified by the Chief Internal Auditor. Priority should be given to work completed in respect of Capital A and B projects. (b) Accounting Officers and Heads of Departments should: (i) (ii) (iii) (iv) (v) (vi)

ensure that payments to be effected are restricted to unpaid bills for which work was completed, goods delivered and services rendered before the close of the financial year as outlined in ( a) above; balance and reconcile Cash Book to determine available cash balance as at March 31 of relevant financial year; ensure that cash balance available is sufficient to cover the amounts required to meet the undischarged commitments; ensure that under no condition whatsoever an overdraft should arise from these payments. If this occurs, disciplinary charges will be preferred against the officer(s) responsible; forward to the Accountant General daily in the usual manner, cheque summaries for both period 13 and the current financial year; batch and file separate voucher packages labelled 'Period 13' for all payments made from April to June, in respect of the previous financial year just ended,

(c) Accounting Officers and Heads of Department are asked to note that one would notwithstanding the extended time during which payments may be made, Appropriation Accounts must be submitted to the Financial Secretary and the Auditor General within four (4) months following the close of the financial year in keeping with the requirement of the Financial Administration and Audit Act.

9.13 Foreign Currency Payments (i)

The payment of public Monies outside of Jamaica shall be made by the Accounting Officer through: (i) (ii)

The Accountant General Designated bankers within the approved Foreign Exchange Budget.

(b) All applications for release of foreign exchange for Official Visits Abroad must be submitted to the Ministry of Finance for approval in accordance with the procedural guidelines laid down at Instruction 9.24 which are to be meticulously followed in respect of the operation of the foreign travel vote.

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9.13 (1) Foreign Payments of Goods and Services The approval for payment and purchases of goods and services will be issued by the Ministry of Finance and Planning in accordance with the guidelines. (See Procedures Manual)

9.13(2)

Payments by Government Overseas Agents

Unless special authority has been given by the Minister, all correspondence authorizing payments by the Jamaica Government's Overseas Agents will issue from the Financial Secretary and the Accountant General and not from individual Accounting Officers. (a) The following are the names of the Government's Overseas Agents and the payments for which they are responsible: Crown Agents for Overseas Governments and Administration (United Kingdom) - Public Debt servicing - Pensions - Stores - Other Government transactions e.g. Contributions - Periodicals and Publications (Standing Orders) Jamaica High Commission - London - Public Officers' salaries - Scholarships - Periodicals and Publications (New Requests) - Miscellaneous - Consul General - New York - Public Officers' salaries - Pensions - Scholarships - Stores - Miscellaneous (b) Before commitments are entered into which necessitate payments by Overseas Agents Accounting Officers should satisfy themselves that funds will be available to meet the costs involved. If the funds available under a department's Vote are insufficient to meet the payment, the Accounting Officer shall immediately notify the Financial Secretary.

9.13 (3)

Contributions to International Agencies/Organization

All applications for payment of contributions to International Agencies should be submitted to the Accountant General for his prior approval before submitting to commercial banks.

9.13 (4)

Other Payments

All payments with the exception of payments requested through Special Imprests Accounts held in the Mission should be effected on a similar basis to that which exist at 6.10(3) above.

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9.14 Special Imprest Account (a)

Ministries and Departments requiring payments to be made from the Imprest Accounts held in the Missions should submit requests to the Accountant General for the necessary authority. The amounts covering such requests should be paid over to the Accountant General as a prerequisite to effecting the transactions.

(b)

On no account whatsoever should Ministries/Departments/Agencies request or direct the Missions to effect any payment on their behalf without the necessary deposits being made with the Accountant General.

9.15 All requests for approval of Foreign Exchange with the exception of Foreign Travel should be sent to the "Foreign Exchange Desk Officer, Accountant General's Department".

9.16 Where a commercial bank is not able to effect any payment promptly and the delay in effecting such payment is likely to cause embarrassment to the Government, the Accountant General should be contacted forthwith.

9.17 Failure to comply will render the responsible officers liable to surcharge in accordance with Section 20 of the Financial Administration and Audit Ac

9.18

Payment of General Consumption Tax

For purchases of taxable supplies over the value of One Thousand dollars ($1,000.00), Accountable Officers must take the necessary steps to secure exemption from payment of GCT. Where the Ministry of Finance authorizes direct purchase in the open market of taxable supplies exceeding the value of One Thousand dollars ($1,000.00), the procedure at paragraph should be followed. (a) The procedure to be followed by Government Ministries and Departments who are entitled to acquire a taxable supply at a zero rate of tax is as follows. (i)

(ii) (iii)

the Ministry/Department shall submit a purchase order and import entry document, as the case may be, in triplicate to the Commissioner, who shall make an appropriate endorsement thereon; a copy of the purchase order shall be retained by the Commissioner, the purchaser (ministry/department) and the vendor; where the supply is imported, a copy of the import entry document as endorsed by the Commissioner shall be submitted to Jamaica Customs.

(b) For ease of operations, General Consumption Tax (GCT) on purchases of taxable supplies up to a limit of One Thousand Dollars ($1,000.00) should be paid, by purchasing ministry/department in which case application can be made to the Commissioner for refund of the tax. These instructions are applicable to all Ministries, Departments and Statutory Bodies, or authorities with the exception of: - Agricultural Credit Bank of Jamaica Limited; - Air Jamaica Limited; - Airports Authority of Jamaica; - Jamaica Broadcasting corporation; - Jamaica commodity Trading Company Limited; - Jamaica Development Bank;

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-

9.19

Cable and Wireless (Jamaica) Ltd. Jamaica sugar Holdings Limited; National Development Bank of Jamaica Limited; National Hotels and Properties Limited; National Housing Corporation Limited; National Housing Trust; National Investment Bank of Jamaica; Petroleum Corporation of Jamaica; Port Authority of Jamaica; Sugar Industry Authority; and Urban Development Corporal

Credit Cards - Funded by Government

The use of Government Funded Credit Cards both locally and overseas by heads of Departments and Chief Executive Officers requires adherence to the following guidelines:

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(a)

A limit will be placed on the amount of expenditure that may be incurred over a given period

(b)

When use of Credit Cards is permitted abroad, cards should be used only to enable officials to meet any unforeseen and unavoidable expenses which may arise while on official duties abroad, and which could not therefore have been provided for in the per diem allocated. Bills should be presented to substantiate any expenditure since these `bills will be required to support payments.

(c)

Bills indicating the specific purposes for which the credit cards are used should be obtained and submitted by officers concerned to the Accounts Departments of their respective agency

(d)

The credit company asking reimbursement for the credit extended, should be asked `to forward copies of the related bills to the Accounting Officer of the relevant Department showing the use to which the credit card was put and for which reimbursement is being sought.

(e)

The Accounts Department should do a reconciliation between the amounts for which reimbursement is sought by the credit company, the copy bills submitted by the credit officers who used the credit cards.

(f)

A senior officer in the Accounts Department should vet the bills supporting the Credit Card transactions, verifying that the transactions legitimately relate to official business and fall within the approved guidelines.

(g)

Instances of apparent extravagance or deviation from the approved guidelines must be brought to the attention of the relevant Permanent Secretary and the Ministry of Finance and Planning which will institute appropriate action.

(h)

New applicants should only be allowed this facility with the written approval of the Ministry of Finance.

(i)

The credit Cards should not be used for personal or private purposes.

(j)

Chief Executive Officers and Heads of Departments should submit quarterly reports on Credit Card transactions accompanied by the relevant bills with the reconciliation to the Permanent Secretary of the respective Ministry.

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Since expenditure of necessity be incurred prior to the commitment being recorded strict compliance is critical to the effective control of expenditure.

9.20

Credit Agreements

Credit agreements entered into for goods and services delivered or supplied to be paid for at a period beyond the end of the financial year within which such agreements are made shall not be entered into without the prior approval of the Minister.

9.21

Retention Money

Under Section 24C of the Act and in accordance with Regulation 57 at the end of the financial year any money payable under contract and withheld to ensure due performance by the Contractor shall be charged to the appropriation for the contract and paid into an official deposit bank account pending satisfactory completion of contract by the Contractor.

9.22

Compensation and Awards

Payment of Judgement Debts; Negotiated Settlements and Ex-Gratia Awards The procedures for dealing with claims for compensation, as well as proposals evolving extra payments are as follows: (i) (ii)

(iii) (iv)

9.23

all judgement debts and negotiated settlements (i.e. settlements agreed by law officers) will be paid promptly by the Attorney General's Department; all information relating to the cause of such payments including the Attorney General's comments in respect of negligence/liability must be submitted to the Ministry of Finance within fourteen (14) days of such payments; the Ministry of Finance must be first consulted with regard to all proposals for the payment of claims on an ex-gratia basis after the advice of the law officers has been obtained; notwithstanding (i) above, the relevant ministries and departments should in all cases of judgement debts, negotiated settlements, compensation, etc.:

(a)

report to the Financial Secretary for appropriate action under the Financial Administration and Audit Act; or

(b)

report to the appropriate Services Commission for disciplinary action; or

(c)

take executive action against the negligent employee (s) for recovery of any loss, etc.

Use of Debit Cards Funded by Government

The use of Government funded Debit Cards by ministries and departments demand strict adherence to the following guidelines: 1.

The Advance Debit Card

The Advance Card is presented to a retailer in exchange for fuel supplies. The cards are electronically encoded with information that relates to designated government-owned motor vehicles and equipment, or rental vehicles. The Card will be operated as a debit card, whereby deposits are made on a monthly basis with Manufacturers Credit and Information Services Limited, for fuel to be supplied. This system will allow ministries and departments to track associated costs at a detailed level.

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The Financial Administration and Audit Act Instructions www.mof.gov.jm

2.

3.

Expenditure Limits (a)

Ministries and departments are required to set annual budgets for procurement of fuel, per vehicle and/or item, of equipment. Based on these annual budgets and usage patterns, a limit will be placed on the amount of expenditure that may be incurred, by each vehicle and/or item of equipment over a given period.

(b)

Transport Managers are required to obtain particulars in respect of vehicles/equipment, determine monthly limits for fuel consumption for each vehicle ( fleet and assigned) and items of equipment, and submit same to the Ministry of Finance for preparation of Advance Cards. Vehicles/equipment to which cards are not assigned will not be able to access fuel.

(c)

Expenditure limits may be adjusted in accordance with usage patterns over time, subject to approval by the Ministry of Finance.

(d)

Copies of annual budgets, monthly allocations and vehicle/equipment particulars must be sent to the Ministry of Finance (Asset Management Unit). In addition, the Asset Management Unit must be informed of any subsequent changes.

Payment Responsibilities

As a prerequisite, ministries and departments are required to pay for each vehicle/item of equipment, the cost as set out below: (a) One time registration fee; (b) Monthly service charge; and (c) Monthly deposit for procurement of fuel. Cheques shall be made payable to Manufacturers Credit and Information Services (MCIS) Limited. 4.

5.

Receipt and Custody of Cards (a)

Transport Managers shall receive all cards from Manufacturers Credit and Information Services Limited and maintain a register of receipt and issuance.

(b)

In respect of assigned vehicles, custody of the cards is the responsibility of assignees, who will be held accountable for the appropriate use of these cards.

(c)

In respect of fleet vehicles and items of equipment, custody of the cards is the responsibility of Transport Managers, who will be held accountable for the appropriate use of these cards.

Exchange of Card(s) for Fuel

Motor Vehicle Card (a) The card may be used to purchase fuel in respect of a designated motor vehicle only. (b) Operators will tender card(s) to retailers in exchange for fuel. (c) Operators must allow for transaction verification prior to the deepen-satin of fuel. Verification includes the validation of: (i) (ii)

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odometer reading; card account balances; and

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(iii)

vehicle particulars.

(d) Upon dispensation of fuel, operators will be required to sign a printed receipt and return copy of same toTransport Managers. (e) Operators should ensure that the value of the fuel that is put into the fuel tank is accurately reflected on the printed receipt prior to affixing a signature. (f) Under no circumstances shall Advance Cards be (i) (ii) (iii) (iv)

presented to the retailer for products other than fuel; used in exchange for servicing; used to obtain fuel for any vehicle other than for which it is used; used to obtain cash instead of fuel.

Container Card (a) A Container Card may be used to purchase fuel in respect of a designated item of equipment only (b) The officer with responsibility for obtaining fuel for the equipment will tender the card to retailers in exchange for fuel. (c) Officers must allow for transaction verification prior to the dispensation of fuel. This includes verification of: (i) (ii)

equipment particulars; and card account balances.

(d) Upon verification and dispensation of fuel, Officers will be required to sign a printed receipt and return copy of same to Transport Managers (e) Operators should ensure that the value of the fuel that is put into the container is accurately reflected on the printed receipt prior to affixing a signature. (f) Under no circumstances shall Container Cards be (i) (ii) (iii) (iv) 6.

presented to retailer for products other than fuel; used in exchange for servicing; used to obtain fuel for any item of equipment other than for which it is issued. used to obtain cash instead of fuel.

Declined Transactions (a) Transactions may be declined for the following reasons: (i) (ii)

insufficient balances on accounts; and/or fraudulent transactions, i.e., circumstances in which vehicle/equipment particulars do not agree with informa- tion encoded on the card tendered.

(b) Under no circumstances should a vehicle/item of equipment exceed its budget allocation as any excess expenditure on deposits attracts an interest penalty which is payable by the respective ministry or department. Transaction receipts are imprinted with "warnings" as a vehicle/item of equipment approaches balance on account limits. Transport Managers are expected to: (i)

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manage fleet vehicle budgets effectively in order to ensure that allocations are not exhausted;

The Financial Administration and Audit Act Instructions www.mof.gov.jm

(ii)

keep operators of assigned vehicles informed of the budget limits placed on these vehicles. Having been advised of these limits, assignees are expected to manage them effectively in order to ensure that allocations are not exhausted.

(c) In the event that a transaction is declined for insufficient balance on account, ministries and/or departments are required to promptly contact Manufacturers Credit and Information Services Limited to effect resolution. 7.

Vehicle Odometers

Transport Managers shall ensure that vehicle odometer is in working condition at all times, as fuel will not be provided for a vehicle with a non-functional odometer. 8.

Loss of Cards

Any loss of cards must be reported immediately to:

9.

(a)

Manufacturers Credit and Information Services (MCIS), in order to effect the necessary cancellations; and

(b)

Ministry of Finance and the auditor General, in accordance with Financial Instructions 6.44 and 6.45.

Deletion of Cards from System

In the event that a motor vehicle is rendered out of service for a period in excess of one month, due to an accident, or unavailability of spare parts, the ministry/department shall have the option to request from Manufacturers Credit and Information Services (MCIS) the deletion of the dedicated card from the system, and its subsequent renewal when the vehicle is rehabilitated. 10.

11.

Provision of Cards for Rental Vehicles (a)

Manufacturers Credit and Information Services (MCIS) will provide specially designed Advance Cards for the use of motor vehicles which are rented/hired. These cards will not be distributed to ministries and departments, but for control purposes will be held in the Asset Management Unit.

(b)

Whenever it becomes necessary for a ministry/department to rent/hire a motor vehicle; the particulars of said vehicle i.e., make, model, licence number, engine number, chassis number, etc., the period of rental, and the vehicle it is replacing should be conveyed promptly to the Asset Management Unit.

(c)

The information supplied will be recorded and one of the specially designed cards issued to the ministry/department which will enable the rental vehicle to access fuel, on the account of the original vehicle.

(d)

As soon as the period of rental ends, the Transport Manager should promptly return the card to the Asset Management Unit.

Reporting Arrangements (a)

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Manufacturers Credit and Information Services (MCIS) will submit to ministries and departments, on a monthly basis, transaction reports by vehicles/items of equipment, customer statements and any exception reports.

The Financial Administration and Audit Act Instructions www.mof.gov.jm

12.

(b)

Transport Managers/Accounts Departments should effect reconciliation between statements received from Manufacturers Credit and Information Services (MCIS) and copies of signed receipts submitted by assignees, fleet vehicle operators and/or officers responsible for purchasing fuel for equipment, for the respective period.

(c)

Discrepancies should be promptly resolved among the respective parties, and the Ministry of Finance (Asset Management Unit) advised accordingly.

(d)

Pursuant to the Financial Administration and Audit Act, the Ministry of Finance (Asset Management Unit) will monitor and evaluate consumption and expenditure patterns service-wide, in order to ensure prudent management of scarce resources.

Sanctions

Failure on the part of any officer to comply with these instructions will render that officer liable to surcharge up to the value of the fuel not properly accounted for. Disciplinary action may also be taken where these instructions are deliberately ignored or violated.

9.24

Official Visits Abroad

All applications for release of foreign exchange for official visits abroad must be submitted to the Ministry of Finance for approval in accordance with the following procedural guidelines which should be meticulously followed in respect of the operation of the foreign travel vote. (a) Members of the political directorate and other public officials who travel abroad on official business will be given a per diem travel allowance to cover all expenses (i.e. hotel bills, meals, transportation, telephone calls) for the period of the proposed trip. (b) The amounts are to be calculated and charged directly to expenditure. (c) If the actual period of the trip is reduced, then the per diem travel allowance in respect of the days by which the tour is reduced must be refunded within seven (7) days of return in the foreign currency in which it was released. (d) The application for the per diem travel allowance should be made on the prescribed format, and the completed application form should be sent to the Financial Management Division of the Ministry of Finance at least seven (7) working days before the proposed date of the applicant's departure on the trip for which the foreign exchange is being sought. (e) All applications for foreign exchange for official visits abroad should be certified by the Financial Manager that funds are available. (f) Once the financial allocation of an agency for travel abroad has been exhausted or fully committed, no further requests for foreign exchange should be made to the Ministry of Finance until the agency has applied for and has been granted a supplementary financial allocation for the year. (g) Applications for the release of foreign exchange for Members of Parliament and Senators must be made on the application form designated "Application by Parliamentarian for the Release of Foreign Exchange for Official Travel Overseas"; and certified by the Minister of Finance as to purpose of travel and class of air passages as indicated on the itinerary. (h) The Ministry of Finance has established per diem rates for the various officials in the political directorate and the public sector. These rates should be regarded as the maximum rates which under normal circumstances

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The Financial Administration and Audit Act Instructions www.mof.gov.jm

will be approved. In all cases where the per diem applied for is in excess of the prescribed rates, appropriate justification must be submitted to the Ministry of Finance. In cases where official visits are being subsidized by overseas bodies or organizations, the required adjustments will be made. In determining the per diem to be applied for, cognisance must be taken of the cost of hotel accommodation and of any special discounts or concessions which may be offered. (i) All Cabinet Ministers may occupy hotel suites while on official visits overseas. Where this is proposed, full particulars pertaining thereto are to be submitted to the Ministry of Finance in order to facilitate assessment and adjustment of the per diem payable as may be necessary. (j) In cases where protocol demands that ministers or officials host receptions, or requires that they engage in other forms of entertainment, application for the required foreign exchange must be submitted with the relevant particulars to the Ministry of Finance for approval. If the required foreign exchange cannot be accurately determined, the amount requested must be treated in the accounts as an advance. In the cases of officials, such receptions and entertainment are restricted to heads of delegations only. (k) The amount advance is to be accounted for in each case by the submission of actual bills to the Financial Manager of the official's agency within seven (7) days of the return of the official to Jamaica. (l) Where the full amount of an advance was not utilized or is not properly accounted for, the official must refund the unaccounted for balance to the agency in the foreign exchange in which it was released, not the Jamaican dollar equivalent. (m) Ministries are required to first consult with the Prime Minister before submitting an application through the official channels. In this way, prior agreement would be reached before the application is submitted and approval for the release of foreign exchange could then be issued by the Ministry of Finance without further reference to the Prime Minister. (n) Accounting Officers are requested to submit applications for the release of foreign exchange for ministerial travel direct to the office of the Minister of Finance together with a copy of the agreement/approval of the Prime Minister. (o) Any official stationed in an agency's office overseas who authorizes the use of funds of the agency (held there in foreign exchange) to pay bills left there by a public official who before leaving Jamaica, was provided with foreign exchange sufficient to meet all reasonable bills, is liable to a surcharge of a sum equal to the full amount of the payment. (p) For public officials other than parliamentarians, air travel must be at the most economical cost (generally economy class). (q) For parliamentarians, the Prime Minister and the Minister of Finance will decide the class of air passage in each case. With regard to ministerial travel, where feasible and where business class travel is available on an airline as an alternative to first class, business class travel should be used. (r) More resourceful use is to be made of Jamaica's Missions and other offices abroad to facilitate the most productive use of the available foreign exchange. (s) Where the assistance of Missions abroad is sought to make reservations for hotel accommodation, directions must be given to the Mission regarding room rates, as these rates must be consistent with the government's prevailing per diem rates which cover hotel accommodation and subsistence. (t) Public officials include Civil Service and Local Government personnel; chairmen and members of the boards of Statutory Bodies and Government Companies and the staff of these entities.

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The Financial Administration and Audit Act Instructions www.mof.gov.jm

9.24 (1)

Payment of Travel Tax (a)

Under the provisions of the Travel Tax Act, and the Regulations emanating therefrom, every carrier (i.e. airline or shipping agent) transporting travelers from Jamaica by ship or aircraft is required to collect Travel Tax.

(b)

Certain categories of travelers are exempt from this tax, including government officials who are holders of a diplomatic passport. Government officials who are not holders of a diplomatic passport will be required to pay the travel tax.

(c)

Ministries and Departments must, therefore make available to personnel travelling overseas the necessary cash to enable them to procure the Travel Tax ticket. On the return of the official, the receipt should be presented to the Accounts Branch as proof of payment within seven (7) days.

9.24 (2)

Payment of Board Fees

The following guidelines are also applicable for the payment of these fees: (a)

Employees of public enterprises or statutory bodies who hold executive positions are not eligible for board fees for their employing organizations. When they serve on other Boards then such employees would be entitled to board fees.

(b)

Civil Servants who serve as board members would be eligible for board fees.

(c)

Where a company has several subsidiary companies and an individual serves on several Boards within the group, board fees will not be a multiple of all the Boards but of an addition amount per Board over the above the first Board.

(d)

Where the activities of two or more Boards are such that they meet more or less as one Board, the Board fees will not be a multiple of each Board but an addition of an amount per Board over and above the first Board.

(e)

Board members should continue to be reimbursed for travelling, meals and other expenses incurred in relation to the business of the enterprises. Expenses claimed should be approved by the Board Chairman.

9.25 Cabinet Submissions Permanent Secretaries must not send submissions directly to the Cabinet Office without the comments of the Ministry of Finance. The following procedural guidelines should be adhered to in order to:

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(a)

discussions with the appropriate officers in the Ministry of Finance should be initiated at an early stage in the development of a submission with a view to identifying and resolving problems;

(b)

in order to obtain prompt response, ministries should ensure that draft Cabinet Submissions are received by the Ministry of Finance at least ten (10) days prior to their being sent to the Cabinet Secretariat.

(c)

the Financial Secretary will refer the matter to the officers involved in the previous consultation for attention within one week of receiving the draft;

The Financial Administration and Audit Act Instructions www.mof.gov.jm

(d)

Where no response is obtained at the end of one week, the Permanent Secretary should get in touch with the Financial Secretary to make sure that the comments are supplied.

Submissions should contain the following elements where appropriate:

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1. 2. 3. 4.

A brief statement about the purpose including the decision being sought. A brief paragraph describing what needs are to be met. A brief prior history, the current position and the context within which the submission is being made. A brief review of the current situation and a comparative analysis of the outcome of previous policy initiatives including: Financial implications Environmental issues Sender analysis Impact on interest groups in society Availability of support systems: i. Infrastructural and ii. Human Resource.

5.

Consultations with relevant ministries and others reporting both positive and negative responses.

6.

Comments of the Ministry of Finance where there are financial implications and the Attorney General's Office where there are legal consequences. Both offices should be given adequate time to review and present a response. The full range of possible options must be explored with a full disclosure of the advantages and disadvantages for each.

7.

The recommendation (s) should flow naturally from the options explored and should be the one (s) which best balances the various competing or conflicting factors

The Financial Administration and Audit Act Instructions www.mof.gov.jm

INSTRUCTION NO. 10 CUSTODY OF PUBLIC MONIES 10.1

Bank Account (i)

Accounting Officers, Receivers of Revenue, Principal Finance Officers and Accountable Officers may, with approval of the Minister, open departmental bank accounts to facilitate the keeping and paying of monies allocated to meet current demands. The balances at the credit of such bank accounts shall be kept at the minimum necessary for the settlement of claims.

(j)

In applying for authority to open a Government bank account the Accounting Officer, Principal Receiver of Revenue, Principal Finance Officer or Accountable Officer or shall state:(i) (ii) (iii) (iv)

10.2

(k)

It shall be the responsibility of Accounting Officers, Principal Receivers of Revenue, Principal Finance Officers and Accountable Officers to ensure that Government bank accounts are not overdrawn, and the officers concerned will be held personally liable in the event of bank charges arising from an unauthorized overdraft.

(l)

Public monies payable into bank accounts shall be lodged daily or as otherwise directed by the Accounting Officer, Principal Receiver of Revenue, Principal Finance Officer or Accountable Officer concerned. Where lodgments are made using Night Deposit bags, these should be cleared within one working day after delivery to the bank.

(m)

Except where amounts are trifling, public monies should not be taken to the bank of lodgment or fetched away from the bank by a single employee, and Accounting Officers, Principal Receivers of Revenue, Principal Finance Officers and Accountable Officers are required to see that public monies in-transit are properly safeguarded.

(n)

Revenue collected by another Government Department on behalf of a Principal Receiver of Revenue should not be lodged in a departmental bank current account. Such collections shall be lodged either direct to the bank account of the Principal Receiver of Revenue or lodged to his credit at the authorized local bank. A special lodgment form that provides an advice to the Principal Receiver of Revenue concerned shall be used for this purpose.

(i)

(g) Where departmental revenues are collected by out stationed officers, such monies may be lodged to the credit of an approved bank current account as collections are made. These collections must be paid periodically to the Accounting Officer or Head of Department concerned, who is required to lodge collections with the Accountant General at the earliest convenient time and not later than seven days after the end of the month of collection.

(o)

Department Bank Accounts should be reconciled monthly and at the end of the financial year.

Imprests (a)

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the necessity for a current bank account; the appropriate amount required to meet payments for a month; the bank in which the account will be kept; the names and posts of the officers authorized to operate the account.

If it is necessary for any ministry to have at its disposal, for disbursement in the Public Service, money for which vouchers cannot be presented direct to the Accounting Officer or Principal Finance Officer for payment, Ministry will make submission to the Financial Secretary for authority to operate an imprest at an approved bank.

The Financial Administration and Audit Act Instructions www.mof.gov.jm

(b)

In applying for authority to operate an imprest the Accounting Officer or Principal Finance Officer shall state: (i) (ii) (iii) (iv)

10.3

necessity for an imprest the approximate sum required to meet payment for a month;. bank in which the imprest account will be kept; the names and posts of the officers authorized to operate the account.

(c)

Where the Financial Secretary authorizes the operation of Imprest, the amount of such imprest shall not be varied without the prior authority of the Financial Secretary.

(d)

Imprests are not be charged in the Accounts as final expenditure, the actual payment only out of such imprests, being so charged. Cash payments made by the Accounting Officer or the Principal Finance Officer by way of imprest will be entered in the Cash Book and totalled with the rest of the payments in balancing it. Imprests will not be treated by the Accounting Officer, as "Advances" or "Remittances" but will be accounted for, below the line, under a separate head "Imprests." The Imprests and the amounts of the authorized payments accounted for will be posted to the imprest account of the out-station concerned.

(e)

The Imprest authority lapses at the close of the financial year and the Imprest holder, where Boards of Survey are not appointed at the end of the year to check the Imprest, will account for the imprest held in such a manner as may be directed by the Financial Secretary.

(f)

Every Imprest holder is required to keep a CashBook and he will be held personally responsible for the unexpended balance of his Imprest any time. On each occasion of the recoupment of expenditure from the Imprest or the handing over of the Imprest to another officer the Cash Book should be ruled off and balanced and the unexpended balance and vouchers, if any should be reconciled with the amount of the original Imprest.

Safes and Strong Rooms (a) In all Government offices where monies or other valuables are kept the Accounting Officer, Principal Receiver of Revenue, Principal Finance Officer or Accountable Officer concerned shall ensure that a safe is provided for the safe keeping of such monies or other valuables until they are disposed of. Safes should be embedded in concrete where practicable. (b) The duplicate keys and combinations of all safes and strong rooms in Government offices must be deposited with the Accountant General. The key or combination for each safe or strong room must be enclosed in a sealed envelope with the following details shown on the outside.

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DUPLICATE KEY OR COMBINATION Ministry/Department.......................................... Office..... ................................. Description of Safe....................................................................................................... Registered No. Of safe....................................... Registered No. Of Key........................................ ................................................ Head of Ministry/Department ................................................ Date An acknowledgement must be given by the Accountant General for each duplicate key or combination deposited with him.

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(i)

All duplicate keys and combinations deposited with the Accountant General shall be kept in the Accountant General's vault. The duplicate key or combination of the Accountant General's vault shall be deposited with the Bank of Jamaica in a sealed envelope bearing particulars as in the preceding paragraph.

(ii)

The Accountant-General shall maintain a record of all duplicate keys and combinations deposited with him. The keys and the record should be kept in such a way that individual keys can be readily located when required.

(iii)

Whenever a safe is removed from one office to another the Accountant-General must be informed.

(iv)

No duplicate key or combination in the custody of the Accountant General shall be issued without the approval of the Accountant-General or his Deputy.

(v)

In the case of a combination lock, the combination must be set by the officer responsible for the safe and no other officer must have knowledge of it. Whenever the officer in charge of the safe is replaced the combination must be changed by the incoming officer and a copy of the new combination deposited with the Accountant General in place of the previous one, which should be destroyed.

(vi)

Whenever the key for a safe is lost the fact must be reported forthwith to the Accountant General who shall authorize the issue of the duplicate key. The issue of a duplicate key or combination shall be noted in the record maintained by the Accountant General.

(vii)

Where a duplicate key has been issued in lieu of a lost key, the Accounting Officer, Principal Receiver of Revenue, Principal Finance Officer or Accountable Officer concerned must arrange forthwith for the lock to be replaced by the Public Works Department of the Ministry of Transport and Works. The duplicate key of the new lock must be deposited with the Accountant General.

(viii)

Where a lock and the duplicate key have been removed by the Public Works Department of the Ministry of Transport and Works, it shall be the duty of that Department to alter the wards of the lock, fit two new keys and retain the lock and the keys for future use. The duplicate key of the original lock must be destroyed.

(ix)

The alteration of wards of locks, the making and fitting of new keys and the destruction of old keys must be carried out under the close supervision of a responsible officer appointed by the Permanent Secretary of the Ministry of Transport and Works. This officer shall also be responsible for the reissue of altered locks, the destinations of which should be regarded as confidential.

The Financial Administration and Audit Act Instructions www.mof.gov.jm

(x)

The expenses incurred in altering the wards of a lock and making new keys shall be borne by the officer responsible for the custody of the original key, unless he is relieved of the responsibility for payment by the Financial Secretary.

(xi)

The officer in charge of a safe shall keep the keys therefor on his person and shall not give any unauthorized person access to the safe or its contents. The officer concerned will be personally liable for any loss of public monies from a safe under his control.

(xii)

No public officer shall keep or allow to be kept in a Government safe under his charge any items of value other than (a) (b) (c)

public monies; money which by virtue of his office he is bound to receive and account for; and valuables which it is his duty to keep and account for.

In all cases an inventory of valuables kept in a Government safe must be maintained.

10.4

10.5

(xiii)

When an officer in charge of cash is handing over his duties to another officer his CashBook should be ruled off at that date and the balance brought down. The cash balance should be checked and certified in the CashBook by the officers concerned. The officer taking over the duties of the outgoing officer is thereafter responsible that the cash balances agree with the amount shown in the CashBook.

(xiv)

In addition to the provisions in paragraph xiii relating to the handing over of cash, when an officer responsible for a safe is handing over to another officer, certificates giving details of unused official receipts, keys for the safe and valuables other than cash handed over must be signed by both officers. These certificates shall be checked by a senior officer and treated as a part of the records of the Department concerned.

Adhesive Stamps and Stamped Stationery (a)

A record of the main stock of postage and other adhesive stamps shall be maintained in which shall be recorded under each denomination, the number and value of stamps received and issued and the balance remaining. On each occasion that stamps are received or issued the record shall be initialled by the officers appointed to have joint charge of stamps as an indication that they are satisfied that the book balance and the actual balance of stamps on hand agree. Stamps shall be issued only on an official requisition and the officer to whom they are issued must give a receipt for the stamps received.

(b)

Stamps issued to officers shall be kept, managed and accounted for as though the stamps were public monies.

(c)

The procedures relating to the control and issue of adhesive stamps shall apply in all aspects to stamped stationery.

Weekly Cash Checks (a)

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Accounting Officers, Principal Receivers of Revenue, Principal Finance Offices and Accountable Officers are required to see that a weekly check is made of cash and valuables kept in Government safes under their control. The check should be undertaken by an officer other than the officer responsible for the safe or for the receipt and recording of valuables.

The Financial Administration and Audit Act Instructions www.mof.gov.jm

10.6

(b)

This check should include a check of the Value Book, the Cash Book and Bank Lodgment Books. The results of such surveys must be recorded in each Cash Book and certified by the checking officer in the following terms: "Cash Book checked and balance found to agree with cash in chest as follows..."

(c)

Where cash and valuables found do not agree with the records a report shall be made to the Accounting Officer, Principal Receiver of Revenue, Principal Finance Officer or Accountable Officer concerned.

Annual Boards of Survey (a)

It shall be the duty of Accounting Officers or Accountable Officers to appoint Boards of Survey of not less than two officers for the purpose of inspecting and reporting on the cash, stamps securities and other valuables held by departments under their control at the close of each financial year . These surveys shall be carried out after the close of business on the last working day of a financial year and before commencement of business on the first working day of the new financial year.

(b)

Officers in charge of chests, vaults or strong rooms are required to give full information to Boards of Survey as to the various amounts for which they are responsible, so as to ensure that a full and

(c)

In carrying out this duty a Board of Survey shall:(i) (ii) (iii) (iv) (v)

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Count all notes, coins and stamps; examine all cheques, postal orders, drafts, etc., forming part of the cash balance; give a certificate of the cash found and the bank balance as shown in the Cash Book. (The certificate must be given in the CashBook and signed by all members of the Board); ensure that the actual bank balance and the bank balance as shown in the Cash Book are reconciled at the date of the survey. obtain from the officer whose safe is being surveyed a certificate to the effect that all public monies, stamps and securities for which he is responsible have been produced to the Board. (This certificate must be attached to the Board's report.)

(d)

The CashBook or other record must be ruled off and balanced by the collecting officer responsible. Where this has not been done, the Board shall see that it is done or do it themselves.

(e)

With regard to stamps at the Great Store, the Tax Administration Services Department, Office of the Post Master General and the Board shall undertake a physical count of the respective stocks of stamps on hand and shall sign the respective stock records to indicate that the comparisons have been made.

(f)

Envelopes containing securities, which bear the unbroken seal of the Audit Department need not be opened by a Board of Survey.

(g)

If for any reason a Board of Survey is unable to carry out the survey for which it was appointed, the Accounting Officer or Accountable Officer must be informed immediately so that appropriate action can be taken.

(h)

It shall be the duty of every Board of Survey to submit a report of its findings to the Auditor General and to the Accounting Officer concerned not later than seven days after completion of the survey.

The Financial Administration and Audit Act Instructions www.mof.gov.jm

10.7

Loss of Public Property (a) Whenever any deficiency, loss, damage or destruction occurs in respect of public monies, stamps, securities, stores or other Government property, whether by misappropriation, theft, fire, accident or damage caused completely or partially by rain, flood or any other agency, either directly or indirectly, it shall be the duty of the Accounting Officer to report the full details of the loss at once to the Financial Secretary and to the Auditor General, even when such loss has been made good by the person responsible for it. (b) The report of any loss should state: (i) (ii) (iii) (iv) (v) (vi) (vii)

the amount of money or original value of the item; the approximate value of the item at the time of loss; the causes which led to the loss; the persons responsible, directly or indirectly; whether the loss was due to fraud or negligence on the part of a public officer; the action which is recommended should be taken in respect of the loss; the steps, if any, taken or proposed to be taken to prevent similar losses in future

(c) Where the write-off of a loss is recommended, the reasons for such recommendation should be stated in full. (d) When fraud or theft is suspected it is the duty of the Permanent Secretary or Head of the Department concerned to call in the police forthwith. (e) Accounting Officers are authorized to write off losses and deficiencies of allocated stores and equipment which do not require a vote by parliament, up to a maximum of Five Thousand Dollars ($5,000) for any one item where the Accounting Officer is satisfied that fraud or negligence is not involved. The value of any loss should be determined by the cost at the time of acquisition. Accounting Officers are also authorized to write off from their inventory record dead livestock. (f) Accounting Officers will, however, be required to submit to the Financial Secretary and the Auditor General quarterly reports, setting out the particulars in respect of all such items written off. (g) It is expected that the inventories or stores ledgers recording the cost and date of acquisition of all public property will be properly maintained to support the write off of any losses or deficiencies. (h) Financial Instruction 10.6 (e) does not apply to losses of public monies, stamps and securities or public property excluded by Financial Instruction 10.6 (e). Such cases must be reported immediately to the Financial Secretary and the Auditor General, and also to the Police where fraud or theft is suspected. (i) The authority for writing off any loss or deficiency in public monies, stamps, securities, stores and other Government property, rests with the Minister.

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INSTRUCTION NO. 11 ACCOUNTING FOR PUBLIC MONIES 11.1

Basis of Accounts

(a) In accordance with Section 24 B of the Act the estimates form the basis of the Accounts that Departments are required to keep. Complete accounts of receipts and payments shall be kept in a manner showing the amount collected under every item of revenue and payments incurred under the various projects and activities of the vote and also the various items of expenditure from Special Funds. (b) Accounts relating to revenue shall be kept in a manner that they will show the gross receipts, the amounts paid to Principal Receivers of Revenue and the balance in the hand of Accounting Officers. (c) On the expenditure side, each Vote represents an amount available to the Accounting Officer from the Consolidated Fund. Issues from the Consolidated Fund provide cash in hand of the Accountant General to meet departmental expenditure. In addition, appropriations-in-aid, when collected, will increase the funds available for expenditure up to the limit authorised by Parliament. (d) (i) In the main, payments shall be made by cheques drawn on a designated Commercial Bank. A summary of the cheques issued must be submitted daily to the Accountant General to facilitate his keeping track of expenditure. (ii) Cheque summaries should indicate the numbers of the cheques issued and the total value of such cheques and should reach the Accountant General by 3.00 p.m. of the day on which the cheques are required by the Principal Finance Officer who maintains control over the accounts. (iii) Cheques honoured by the designated Commercial bank will be passed to the Ministry/Department. (iv) On receipt of the cashed cheques Ministries and Departments must compare them with the cheques issued to date so as to ascertain the cheques still outstanding for the purpose of the monthly reconciliation of the designated bank account balances in the books of the Ministry or Department. (v) Where a cheque has been outstanding for more than six months it is generally considered "stale" and should not be honoured at any bank. Such a cheque would cease to be negotiable and should be written back in the accounts. Should it become necessary to cancel a cheque after it has been issued and recorded in accounts, the cheque should also be written back (e) All Accounting Officers shall establish accounting systems to record all amounts payable into the Consolidated Fund and all amounts issued out of the Consolidated Fund including payments incurred under the various projects and activities of the vote and also the various items of expenditure from special fund. (f) Accounting Officers are required to submit to the Auditor General and to the Financial Secretary not later than the 14th day of each month, the following financial statements in respect of the departments under control:(i) (ii) (iii) (iv)

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Trial balance of the main ledger Accounts Statement of receipts and payments duly certified by the Accounting officer. Statement of reconciliation of the Commercial Bank Account balance. Appropriation Statement.

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11.2

Financial Management Information System

The Government's accounts are computerized. For details of the Financial Management Information System see the Government Accounting Manual.

11.3

Accounting Records

(a) Accounting Officers and Principal Receivers of Revenue are required to keep a cash book, journal, ledger, commitments register and such other subsidiary records as may be necessary to account for receipts and payments under the various heads of revenue and expenditure comprising their responsibility. (b) The cashbook, which will show all cash transactions as they occur, shall be balanced daily and the balance shown compared with the cash in hand. If the book balance and actual cash balance do not agree the discrepancy shall be forthwith investigated. (c) If the discrepancy indicates a surplus of cash the surplus should be immediately credited to a departmental deposit account pending the result of investigations as to the cause of the surplus. If the surplus cannot be satisfactorily explained and adjusted after investigation, the amount on deposit should be paid to the Accountant General for credit to the Consolidated Fund. (d) Where there is a deficiency of cash, action must be taken in accordance with Instruction 11. (e) Both the cashbook and the ledger accounts should be posted independently from duplicate receipts and payment vouchers or other payment media. (f) Accounting Officer will keep a Commitment Control Register in a form laid down by the Ministry of Finance, which will clearly show at any time in respect of each vote for which the Accounting Officer is responsible: (i) (ii) (iii)

the total amount of expenditure sanctioned for the service; the amount of expenditure charged; and any further known liabilities in respect of the service for the year.

Such Vote control (Expenditure and Commitment control) ledger shall be maintained separately for each object/subobject head of expenditure. Detailed instructions in regard to maintenance of this ledger are contained in Commitment Manual.

11.4

Surrender of Balances

(a) Section 19A (4) of the Act provides: "Subject to Section 24 L, every appropriation by Parliament of public Monies in relation to any financial year shall cease to have effect at the close of that financial year, and except as otherwise provided in this Act, any unexpended balances in any accounts referred to in Section 13 shall be paid into the Consolidated Fund Principal Bank Account. (b) Section 24L of the Act makes provision for settlement of undischarged commitments after the close of the financial year. (c) The amount of the balances to be surrendered from the respective votes will be reported to the Financial Secretary by the Auditor General when his examination of the Appropriation Accounts is complete. The Financial Secretary will then direct Accounting Officers and the Accountant General to effect the surrender. Until then the unexpended balance on any Vote, as shown in the books of the Accountant General will remain open.

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INSTRUCTION NO. 12 MANAGEMENT OF PUBLIC ASSETS 12.1

Inventory Management

(a)

Accounting Officers shall be responsible to maintain proper inventory records of all stationery, consumable stores, furniture office, machines, equipment, plant and machinery and other assets procured out of public funds or received as gifts or loans. These records should show the description of assets, the date of acquisition, original cost and its location. Issues for consumption, transfers, sale or write-off shall also be properly recorded. Physical verification of Inventory shall be conducted at least once in a financial year by an officer nominated by the Accounting Officer and his findings recorded in the inventory records. With regard to furniture, office machines and equipment the records shall be maintained as prescribed in the Procedures Manual issued by the Ministry of Finance.

(b)

Under no circumstances must furniture and equipment be transferred whether by temporary or permanent relocation from one ministry/ department to another, without the prior consultation and approval of the Ministry of Finance, in which the responsibility for assets management is vested. Appropriate notations must be made in the records of the Ministry/Department from which the transfer took place, showing the date, and the place to which the items were transferred. Similarly, the receiving Ministry/Department must update its records to include these assets.

(c)

Accounting officers shall be responsible to provide information on the status of their inventory and to submit specific data concerning motor vehicles, office equipment and furniture to the Ministry of Finance by the end of each financial year. Items of equipment such as cheque signing machines, official free postage, franking stamps, and other official stamps should be properly secured and kept in a secure facility for inspection by the Auditor General.

12.2

Government-owned Land and Buildings

(a)

Land - All Government-owned land is vested under Crown Property Vesting Act, the Commissioner of Lands is the manager in whom such property is vested.

(b)

Buildings - All Government-owned buildings are vested under the Housing Act. The Minister of Housing bearing responsibility for management.

(c)

Motor Vehicle - There is a comprehensive motor vehicle policy for the Public Sector that covers the management of all Government-owned vehicles including fleet vehicles and assigned vehicles. Insurance of motor vehicles: (i) (ii)

(d)

Furniture and Equipment - Inventory Records are to be maintained for all Government-owned furniture and equipment. The inventory should incorporate: (i) (ii) (iii) (iv)

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All Government-owned vehicles whether assigned or otherwise, including those in the judiciary, should be comprehensively insured. Government carries its own risk in respect of fleet vehicles.

Fully utilized equipment Partially used equipment Idle equipment Obsolete equipment to be recommended for Board of Survey.

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12.3

Hireage or Rental of Motor Vehicles

(a)

Except in cases of dire emergency, no ministry or department shall enter into a contract for hireage of a motor vehicle, from any rental agency or individual without the specific permission from the Ministry of Finance and Planning.

(b)

Where the emergency dictates that such a course of action is imperative, the contract should not be for more than three (3) days. The covering approval of the Financial Secretary must be sought and the circumstances for the emergency hireage reported.

(c)

In submitting requests for approval to hire, full particulars of the reasons for the hireage shall be given and the duration of the contract period indicated.

(d)

Each case of hireage will be considered on its own merit.

(e)

Officers found in breach will be liable to surcharge up to the amount of any unauthorized expenditure thus incurred.

12.4

Sanction

(a)

Any person who is responsible for the control or operation of fleet vehicles or any activities incidental thereto, will be liable to sanctions in the event of any breach of the instructions.

(b)

Assigned vehicles.

(c)

Where a breach results in financial loss to Government, the person responsible may be surcharged by the Financial Secretary and may become liable for the full amount of the loss.

12.5

Reporting Accidents Involving Government-owned Motor Vehicles

(a)

Duties of Driver

The driver of a Government-owned motor vehicle, whether he/she is employed as a driver, or is the driver of a fleet vehicle, or the assignee of a motor vehicle, when involved in an accident should adhere to the following procedure: 1. 2. 3.

If the accident involves another party's person or property, never admit liability; Report the accident immediately to the police; Obtain details of the other vehicle, such as: (i) name of owner; (ii) name of driver at time of accident; (iii) name of owner's insurance company; (iv) licence number of vehicle; (v) make of vehicle (vi) damage sustained; (vii) nature of injury to person(s);

4.

At earliest possible time, submit a detailed written report to the Transport Manager of your ministry/department; Drive or arrange to have the vehicle towed to the premises of your ministry/department; At no time should the vehicle be taken to a garage for repair.

5. 6.

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(b)

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Duties of Transport Manager 1.

Receive accident report from approved driver of Government-owned vehicle at time of accident;

2.

Report accident to the Financial Secretary and the Auditor-General at once, in accordance with Instruction 10.7 (a).

3.

Examine the vehicle personally and note the nature of the damage;

4.

Investigate the accident by obtaining (or seeking to obtain) other reports on the accident, e.g. from other driver involved and any passengers in the Government-owned vehicle;

5.

If the vehicle is insured, report accident to insurance company;

6.

Arrange for the vehicle to be examined and damage assessed by Ministry of Transport and Works, Department of Electrical and Mechanical Services (DEMS);

7.

Obtain as estimate of cost of repairs from a garage registered on the GOJ list of authorized garages, and have it vetted by DEMS;

8.

Collate the statements: (i) report of driver of Government-owned vehicle; (ii) report of other driver (if accident involved another vehicle); (iii) report of passengers in Government-owned vehicle (if any) (iv) police report; (v) correspondence with insurance company(ies) (vi) estimate of repairs;

9.

Send a file with the collated statements to the Attorney-General's Chambers, covered by a memorandum asking for a ruling as to liability in the matter.

10.

Provide any additional information or documents to the Attorney-General as may be requested, and abide by his instructions during this period;

11.

Inform the Financial Secretary and the Auditor-General of the Attorney-General's ruling;

12.

Seek the Financial Secretary's approval for the recovery schedule of the amount of repairs from the person deemed liable.

The Financial Administration and Audit Act Instructions www.mof.gov.jm

INSTRUCTION NO. 13 FINANCIAL REPORTING 13.1

Financial Statements

(a)

Under Section 19A of the Act, "expenditure by an Accounting Officer shall be in accordance with the provisions contained in an Appropriation Act for the services required."

(b)

Under Section 24B of the Act all Accountable Officers are required to submit to the Auditor General and to the Financial Secretary not later than the 14th day of each month the Financial Statements in respect of the Departments under their control. A schedule of statements is set out.

13.2

Settlement of Accounts at the end of the Financial Year

Accountable Officers shall submit financial reports in accordance with the provisions of Section 24L of the Act. Section 24L (1) of the Act states that subsection (2) and (3) shall apply in any case where (i)

a statement has been submitted by an accounting officer in relation to goods delivered, services rendered or work completed before the close of the financial year;

(ii)

amounts remain outstanding for such goods, services or work before the close of that Financial Year; and

(iii)

an unspent balance exists in the relevant appropriation for the financial year.

The unspent balance referred to in subsection (1) may, within a period of three months, after the close of the relevant financial year be used for making payments due and owing for the goods, services or work mentioned in subsection (1). Any amount of the balance that is not dealt with in accordance with subsection (2) shall be paid into the Consolidated Fund Principal Bank Account.

13.3

Appropriation Accounts

Accounting Officers are required under Section 24I (1) (b) of the Act to "prepare, sign and transmit to the Minister and the Auditor General the statements relating to the financial activities under their control". The Appropriation Account should be prepared in quadruplicate in the form explained in paragraph 14.4. The original and two copies of the Appropriation Account should be forwarded to the Auditor General and the remaining copy sent to the Financial Secretary.

13.4. In the first column, headed "Service", should be listed the heads and projects/activities of expenditure in the order in which they appear in the Estimates.

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(1)

Where a subhead has been increased by a supplementary estimate the original estimate and the supplementary amount should be shown in column 1, and the total carried to column 2 - total approved estimates.

(2)

Where the supplementary estimates specify a project/activity from which savings are to be applied to meet an excess on another project/activity of the same Vote, both the excess and saving on the respective project/activity must be shown as well as the original estimate, and the reduced and increased provisions carried to column 2.

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13.5

(3)

Where a new project/activity has been created by supplementary estimate, the fact should be indicated by the words Supplementary Estimate which should be written in the line immediately following the title of the project/activity.

(4)

The total of each Vote (head of expenditure) which has been supplemented will also show the total of the original estimates and the (net) total of the supplementary estimates in the first column.

(5)

Sums that are provided by law should be excluded. The total approved estimates will therefore, correspond to the amount of the head shown in the schedule of the Appropriation Act, plus any additional sums authorized to be issued by warrant pending the passage of a supplementary Appropriation Act under Section 13(3) of the Act.

(6)

Where a sum provided by law has been supplemented by a Vote the amount to be shown as expenditure in the Appropriation Account will normally be the difference between the total expenditure under the project/activity concerned and the amount provided by law; if the amount expended is less than the specific sum provided by law, the amount to be shown in the Appropriation Account will be Nil In other words, it must be assumed that the amount provided by law is used. The statement of expenditure provided by law is prepared by the Accountant General (vide subparagraphs 5 and 6 above).

(7)

The totals for each head of expenditure will be shown and the difference between the total approved estimate (column 2) and expenditure (column 3) should be described in column 1 as surplus to be surrendered to Consolidated Fund and then entered under the Total expenditure in column 3. It will be noticed that this will correspond to the difference between columns 4 and 5.

(8)

In due course, grand totals of the columns Total approved estimate, Expenditure, More than estimate, Less than estimate, and surpluses to be surrendered to the Consolidated Fund will be inserted at the end of the group of heads of expenditure for which the Accounting Officer is responsible.

Accountant General's Annual Statements

Under Section 24G(1) of the Act in respect of each financial year and as soon as possible after the end of such financial year the Minister shall lay the following statements on the Table of the House of Representatives. (a)

the statement of the receipts and payments in respect of the Consolidated Fund Principal Bank Account;

(b)

a statement of assets and liabilities of the Consolidated Fund showing balances in respect of current assets and liabilities;

(c)

a summary of the transactions of the Consolidated Fund Principal Bank Account as compared with budget forecasts;

(d)

a statement of the revenue and expenditure of the Consolidated Fund Principal Bank Account as compared with the original and revised budget forecasts.

The statements referred to in Subsection (1) shall be prepared in accordance with the accounts as at the end of the relevant financial year and shall be signed by the Accountant General.

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13.6

The Accountant General's Finance Accounts

Under Section 24H (i) of the Act within a period of four months after the end of each financial year the accountant General shall prepare, sign and submit to the Auditor General the following statements: (a)

Current assets and liabilities of the Consolidated Fund;

(b)

Revenue actually paid into the Consolidated Fund Principal Bank Account as compared with the Estimates of Revenue;

(c)

actual expenditure from the Consolidated Fund Principal Bank Account as compared with the estimates of expenditure;

(d)

the public debt of Jamaica showing transactions for the relevant year of account and the balance of sinking funds held against redemption;

(e)

advances and loans from the Consolidated Fund showing transactions for the year of account and, for those accounts in respect of which no recovery is reported during that year, the date of the most recent recovery;

(f)

capital investments of the Consolidated Fund showing transactions for the year of account, the securities held and the proportion of equity held on behalf of the Government;

(g)

balances held by the Accountant General on deposit at the end of the financial year and the outstanding advances made therefrom;

(h)

expenditure in respect of those services which by law are directly charged upon the Consolidated Fund as compared with budget forecasts;

(i)

outstanding loans or credits guaranteed by the Government;

(j)

receipts and payments of the Contingencies Fund.

The Auditor General shall certify the statements and lay them on the Table of the House of Representatives.

13.7 In addition to the financial statements which must be submitted in accordance with the Act, the Accountant General is required to prepare, sign and submit to the Auditor General and the Financial Secretary. (1)

A statement of receipt and payment transactions for the financial year in respect of each account on his books. The statements should show, inter aliaA.

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Receipts (i) The total sum received from the Consolidated Fund and credited to statutory accounts. (ii) The total sum received from the Consolidated Fund and credited to the Vote Account. (iii) The total of the miscellaneous other receipts received for credit to the Vote Account. (iv) The total sum received on account of Special Funds. (v) The total of the miscellaneous other receipts received fro credit of Special Funds. (vi) The total sums received on account of Departmental Deposits.

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B.

Payments (i) (ii) (iii) (iv)

(2)

The total payments made on account of statutory expenditure The total payments made on account of voted expenditure. The total payments made on account of Special Funds. The total payments made on account of Department Deposits.

A statement setting out in respect of each account on his books. (i) (ii) (iii) (iv) (v) (vi)

13.8

( i) ( ii) ( iii) ( iv)

The total receipts The total payments The (cash) balance in hand The balance in the Consolidated Fund Principal Bank Account The amount of unpaid cacaos The total funds available.

Principal Receivers of Revenue-Revenue Accounts

Section 24I (i) (a) of the Act requires Principal Receivers of Revenue to submit to the Minister and the Auditor General statements of their receipts and disbursements of revenue. (1)

The principal statement will be an account of the net revenue collected under the heads of revenue for which the respective Principal Receiver of Revenue is responsible; the collections are compared with the estimates and explanations given for the causes of variations between the estimates and the net receipts, and the statement signed by the Principal Receiver of Revenue.

(2)

The second statement is a summary which sets out under each head of revenue:. (i) the balances and advances of revenue outstanding at the commencement of the year; (ii) the gross revenue collected; (iii) the amounts paid out as drawbacks, repayments and refunds; (iv) the net receipts; (v) the payments into the Consolidated Fund; (vi) the balance ``due to the Consolidated Fund at the close of the year.

The opening and closing balances due to the Consolidated Fund Principal Account should be analysed to show: (a)

the amounts advanced by Principal Receivers of Revenue in accordance with Section 8-I(e) of the Act and not yet recovered from departments;

(b)

the amount of revenue on hand but not yet lodged in the Consolidated Fund. This statement should also be signed by the Principal Receiver Revenue.

(3)

The third statement is a detailed breakdown of each head of revenue so as to show the estimated receipts. Gross receipts, drawbacks, repayments and refunds, and the net receipts under each item of revenue.

13.9

Budget Preparation

Accounting Officers who have charge of the Votes granted by Parliament are held to be personally responsible for the expenditure charged to those Votes and are accountable therefor to Parliament through the Public Accounts Committee. They are required to certify the correctness of the Appropriation Accounts of their respective Departments. The word correctness here means:-

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(i) (ii) (iii) (iv)

that the Monies voted have been used only for the purposes for which they were intended by Parliament; that the actual payments were in accordance with the laws, rules, instructions and regulations governing them; that the charges were at fair and reasonable prices and were incurred without waste and extravagance; that the accounts rendered were accurate.

Accounting Officers shall be responsible for the preparation and submission of the annual Budget Estimates for their Ministries/Departments and other entities for which they have portfolio responsibility for presentation to the Parliament. Detailed guidance for the preparation of Budgets is contained in Government of Jamaica Accounting Manual issued by the Ministry of Finance. Instructions in regard to format and timing of submission of these Budgets to the Ministry of Finance will be issued by the Budget Division from time to time. Accounting Officers are required to ensure that for every Programme/Project under their Ministry, they identify the Programme and Project Managers. The Accounting Officer must also ensure that the instructions received from the Ministry of Finance on the preparation of estimates should be passed on to these Officers so that the data for the preparation of the important schedules to accompany the budgets are collated and updated periodically. The following schedules shall accompany each Recurrent and Capital Budget: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m)

Materials Budget Equipment Budget Printing Budget Foreign Exchange Budget Manpower Budget Recurrent Overhead Cost Budget Non-Recurrent Overhead Cost Budget Contributions to International, Regional and Local Organizations Capital Estimates and Public Investment Programmes Subsidies Public Debt Servicing Transfers from the Public Sector to Institutions and Agencies outside Central Government Public Investment Programme

The Ministry of Finance has the power to restrict the sums to be withdrawn from the Consolidated Fund with a view to balancing the outflow of funds to match with the inflow of revenue and other receipts. For this purpose Accounting Officers shall be required to submit in early March of each year a Cash Flow projection of their expenditure for the period April to July which will form part of the Vote-on-Account Provision to be approved by the Parliament pending approval of the annual Appropriation Bill. The cash flow shall be the basis of issue of monthly expenditure warrants by the Ministry of Finance for the months of April, May and June. As soon as the Appropriation Act is passed, Accounting Officers shall be required to prepare and submit a revised cash flow projection showing also the actual expenditure for the financial year to date and the anticipated expenditure for the following month. This exercise of preparation and submission of monthly cash flows shall be repeated in the same manner for the subsequent months. Since the monthly cash flows shall be the basis for the issue of the monthly expenditure warrants by the Minister of Finance, it must be ensured by Accounting Officers that their projections are sent to the Ministry of Finance sufficiently in advance, but not later than 15 days before the commencement of the month to which the cash flow projection pertains. The formats on which such cash flows are to be prepared will be issued by the Budget Division from time to time.

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To enable the Minister of Finance to be satisfied that the activities in each Ministry are being carried out in accordance with the Act and the Monies voted correctly applied for the purpose for which they were intended, Accounting Officers are required to submit a Monthly Status Report as prescribed by the Ministry of Finance by the 5th of the succeeding month showing, inter alia, the position of the following accounting statements: (1) (2) (3) (4) (5) (6)

Preparation of annual appropriation accounts Preparation of monthly accounts Bank Reconciliation Statement Clearance of advance accounts Verification of assets and value book Replies to external audit queries.

The status report should also incorporate implementation of the Public Accounts Committee's recommendations. It shall be the responsibility of Accounting Officers to institute suitable internal reporting within the administration of their ministries and the departments and agencies for which they have portfolio responsibility to ensure that the above information is computed for each Head of Account and sent to the Ministry of Finance on the format prescribed.

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INSTRUCTION NO. 14 AUDIT AND PUBLIC ACCOUNTS COMMITTEE 14.1

Auditor General

(a)

Section 120 (1) of the Constitution states that the Governor General by instrument under the Broad Seal shall appoint an Auditor General.

(b)

Under Section 122 (3) of the Constitution the Auditor General's functions under the provisions of subsections (1) and (2) shall not be subject to the direction or control of any other person or authority.

(c)

Section 25 Subsection 3(a ) of the Act states that "the Auditor General shall be entitled at all reasonable times to have access to all books, records, vouchers, documents, returns, reports, information, storage devices, cash, stamps, securities, stores or other Government property in the possession of any officer for purposes of his examination"..

(d)

Section 28 of the Act states "The Auditor General shall examine and certify in accordance with the outcome of his examinations the statements and accounts which are required to be submitted to him in accordance with the Act".

(e)

Under Section 29 of the Act, the Auditor General submits his annual report to the Speaker who shall lay the report before the House of Representatives.

(f)

The annual report of the Auditor General is then examined by the Public Accounts Committee of the House whose Chairman is a member is of the Opposition. The Auditor General is in attendance during the period of this examination.

14.2

Report of Public Accounts Committee

Subsequent to the examination of the Auditor General's Report the Public Accounts Committee prepares a report of its findings and recommendations. This report is submitted to the Ministry of Finance for implementation where there is concurrence and agreement.

14.3

Internal Audit

(a)

Section 34 of the Act requires that a system of Internal Audit for examining the financial transactions and accounts of the Department .be established within each Department.

(b)

Internal Auditors are required to perform such functions as may be prescribed by the Financial Secretary while carrying out duties assigned by the relevant Accounting Officer and to submit quarterly reports to the Financial Secretary.

(c)

Each internal audit unit works in consultation with the Internal Audit Directorate of the Ministry of Finance.

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INSTRUCTION NO. 15 GUIDELINES FOR PROCUREMENT 15.1

The following rules shall apply in respect of all purchases:

(a)

For supplies of a Jamaican dollar equivalent of US$5,000.00 and under, direct purchases may be made from any reputable supplier;

(b)

For supplies of a value exceeding the Jamaican dollar equivalent of US$5,000 but less than the Jamaican dollar equivalent of US$10,000, quotations should be invited from at least three (3) reputable suppliers;

(c)

For supplies of a value of the Jamaican dollar equivalent US$10,000 and over, selected tenders should be from not less than five suppliers on the approved list.

(d)

See Procurement Manual for further detailed information.

15.2 Ministries and Departments are required to compile and submit to the Ministry of Finance on a quarterly basis, a statement of purchases made during the preceding quarter to be submitted not later than the 14th day in each month following that quarter.

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INSTRUCTION NO. 16 ACCOUNTING RECORDS DESTRUCTION SCHEDULE Minimum Period Prescribed for the Preservation of Accounting Records Class of Records Period

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Computer Diskette

-

20 years

Principal Treasury or Departmental Ledgers, Cash Books and Main Journals

-

7 years

Abstracts and Subsidiary Journals and Records

-

7 years

Vouchers and Counterfoils

-

7 years

Special Ledgers and Records Bank Deposit Ledgers, Currency Issue Records Loan Registers

-

e.g.: 20 years after the final completion of all transactions and the last account closing of the last account

Encashed Cheques

-

3 years

Human Resources Development Records and Salary Records which may be required to superannuation purposes

-

65 years.

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INSTRUCTION NO 17 GENERAL 17.1

User Fees

Accounting Officers should examine all services with a view to identifying which services should attract user fees, and that such examination should be guided by the following principles:

(a) Services of a commercial nature being offered by the Public Sector should at least cover the cost of delivery of such services.

17.2

(b)

Where jump in fees might be unacceptably steep arising out of the fact that such fees have not been amended on any realistic basis over a prolonged period of time, Ministries and Departments should develop a programme for phased increases with the objective of attaining full cost recovery within the relevant Financial Year.

(c)

Any such programme developed should be submitted to the Deputy Financial Secretary, Financial Management Division, before implementation.

Use of Telephone

Accounting Officers should cause to be operated registers for: (a) (b) (c)

Toll Calls Overseas Calls Cellular Telephones

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All members of staff who wish to make private overseas or local long distance calls should first get the permission of their respective section heads, this should clearly be recorded in the Toll Call Register before the Operator puts through the call.

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The Operator must get from the overseas and local Operator the cost of the call when the caller is finished, and see that it is recorded in the column of the register provided for the purpose.

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When the bill is received from the Telephone Company the caller will be notified and asked to settle the bill immediately, paying the full amount to the Accounts Branch and ensuring that a receipt is issued.

17.3

Procedure for Acceptance of Grants/Gifts

Accounting Officers should adopt the following guidelines for acceptance of grants or gifts:

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(a)

When it represents funding of a Project whether in part or whole, it should be reflected in the Estimates both as Revenue and Expenditure.

(b)

Where grants or gifts are in kind the same procedure is to be adopted using the dollar equivalent valuation.

(c)

When it is an ad-hoc gift that is going to involve Government in continuing expenditure, the grant/gift should not be accepted before prior approval is granted by the Ministry of Finance. When approval is

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given provision should be made in the Estimates to reflect both Revenue and Expenditure. (d)

When it is ad-hoc and does not involve any expenditure from Government either towards acquisition (e.g. shipping cost), operational, maintenance, etc. it would not be reflected in the Estimates.

In all of these instances however, the assets acquired should be reported to the Ministry of Finance and Planning and must be properly accounted for in the relevant inventory records. 17.4

Guidelines for Budgetary and Financial Accounting Arrangements Consequent on the Changes in Portfolio Responsibilities of Some Ministries

17.4.(1) General (a)

Task Force

A Task Force shall be established in the Ministry of Finance and Planning. Outgoing Ministries should identify members of their existing complement to carry out accounting and other related functions. These personnel will be under the scrutiny of the Task Force established in the Ministry of Finance. (b)

Budget In order to facilitate the recasting of the relevant Supplementary Estimates, the Ministries are required to submit the following statements: (i) (ii)

Actual Expenditure for the period stated by the Ministry of Finance and Planning. Commitments including Advances already made up to a specified date.

This information should be provided by a date to be specified. (c)

Status Report A status report should be submitted along with the budgetary information requested on the relevant programmes, projects and activities. This report should indicate the progress of work to date and give a projection to the end of the Financial Year.

(d)

Warrants Where Recurrent Warrants have been issued, the existing bank accounts credited accordingly. With regard to the Ministries affected by the change, salaries and other payments should be effected in the usual manner up to a specified date.

17.4(2) Financial/Accounting Arrangements:

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(a)

Bank Accounts In respect to the Ministries affected, all the operational bank accounts, for example, Expenditure Clearing accounts i.e. Recurrent and Capital, Salaries Bank Account, etc. will cease to operate with effect from a specified date but will remain open to facilitate encashment of cheques already issued. The newly amalgamated ministries will be required to seek permission of the Ministry of Finance and Planning to accommodate Warrant Releases for the ensuing period indicated by the Ministry of Finance and Planning.

(b)

Financial Statements The staff, which has been identified to finalize the accounts, must ensure timely preparation and submission of the Financial Statements and the Annual Appropriation Accounts. Outgoing Ministries i.e. those identified must prepare these statements and annual appropriation accounts for the period indicated by the Ministry of Finance and Planning as well as outstanding accounts for previous financial years. The newly amalgamated ministries will be expected to prepare financial statements and appropriation accounts for the period indicated by the Ministry of Finance and Planning.

(c)

Unused Cheques and Gasoline Coupons In accordance with the principles of internal control governing the receipt, custody and issue of blank cheques and gasoline coupons, all cheques and coupons should be entered in a Register. The physical stock of unused cheques and coupons should be checked off against the balance shown in the Register and certified by a senior officer and countersigned by the Internal Auditor. With regard to unused coupons, after reconciliation of the physical balances with the Register, these should be returned to the Ministry of Finance and Planning, where necessary arrangements for credit to the Ministry's Head of Estimates will be made. Concerning the unused cheques, a similar procedure is to be adopted with regard to the reconciliation and verification of balances. After this exercise has been completed, the cheques should be packaged, sealed and retained for inspection by the Auditor General. After the cheques have been audited, this Ministry will issue instructions for their destruction.

(d)

Other Records Other records such as Invoice Order Books and Receipt Books, etc., should also be properly secured and retained for audit inspection.

17.5

Guidelines Consequent on Changes in Portfolio Responsibilities in Some Ministries

17.5(1) Established Ministries (Receiving Additional Portfolio) (a)

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(a) Where an already established Ministry is receiving new portfolio responsibilities and the balance on the budgetary provision can accommodate the additional costs for the subjects assigned, those Ministries will be funded by the Ministry of Finance to the level of their approved provision in order to facilitate the additional expenditure. Regularization of the expenditure incurred in this regard will be made in the First Supplementary Estimates for the relevant financial year.

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(b)

(b) Where the balance on the budgetary provision cannot support the additional costs for the subjects transferred, the Ministry of Finance and Planning will advance the shortfall pending the passage of the First Supplementary Estimates of the relevant Financial Year. The Ministry of Finance and Planning (Budget Division) should be informed accordingly no later than the date specified by the Ministry of Finance and Planning.

(c)

Those established Ministries which have had subjects transferred from their portfolios, should submit to the Ministry of Finance and Planning (Budget Division) their actual expenditure and commitments up to date of transfer in respect of those subjects. Consequently, adjustments will then be made of the relevant Financial Year, under the appropriate Head, in the First Supplementary Estimates, to the unspent portion of the voted provision relating to those subjects and for any new requirements

17.5(2) Payment of Salaries and Allowances Salaries and allowances for personnel who are to be transferred along with the relevant subjects, should continue to be met by the Ministries from which the subjects are transferred. The amounts paid to these persons should be charged to an Advance Account and recovered from the Ministry to which they have been assigned. These recoveries must be effected on or before the end of the relevant Financial Year. With regard to the former self-accounting ministries the following shall apply: Accounting personnel which are in place in those Ministries will continue to prepare salaries in the usual manner.

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Where applicable the receiving Ministry, while Ministry of Finance will absorb the initial cost as required of the new personnel pending regularization for personnel transferred to other Ministries.

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Accountant General will continue to prepare the payroll in respect of the staff of those ministries for which new responsibility and funding will be provided accordingly.

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17.5(3) New Ministries (a)

Regarding the new Ministries wherever established: -

The designated Permanent Secretaries will seek ... from the Ministry of Finance and Planning, permission to operate Expenditure Clearing Accounts in a commercial bank of their choice.

-

Pending the finalization of the relevant Supplementary Estimates these accounts will be funded by way of Advances from Ministry of Finance and Planning.

-

The Permanent Secretaries of these Ministries will be expected to inform the Financial Secretary of their monthly Cash Flow requirements for the balance of the financial year.

17.5(4) Bank Accounts With the exception of the new ministries established, all other ministries will continue to operate their bank accounts in the usual manner until the end of the relevant financial year.

17.6

Disposal of Aircraft and Other Vessels Seized Under The Dangerous Drugs and Other Acts (a)

Upon receipt of the information given as required by Circular 15, the Accountant General will take the item to inventory and advise the Financial Secretary of units thus acquired.

(b)

The Financial Secretary will satisfy herself that all legal procedures have been completed with regard to forfeiture/abandonment. (The Forfeiture Order must be forwarded by the Court to the Accountant General to facilitate transfer of ownership).

(c)

A Board of Survey specially constituted for this purpose will examine the unit prior to disposal to determine and report upon present condition and value.

(d)

The Board of Survey report will be forwarded to the Financial Secretary for the attention of the Deputy Financial Secretary, Financial Management.

(e)

The Deputy Financial Secretary, Financial Management, will make recommendation to the Minister in relation to disposal.

(f)

Upon receipt of the Minister's approval the Deputy Financial Secretary, Financial Management, will be advised to effect disposal.

(g)

Upon disposal the Accountant general will be advised to make adjustment to his Inventory.

Any problem experienced in disposal of these units shall be directed to the Deputy Financial Secretary (Financial Management). 17.7

Disposal of Transports Seized Under Dangerous Drugs Act

Procedures for the expeditious disposal of motor vehicles, aircraft and ships which are forfeited to the Crown under the Dangerous Drugs Act. As the property of the Crown, these items are vested in the Accountant General as Trustee, and it is, therefore, necessary that prompt action be taken to inform him of every seizure of equipment. Concerned agencies should take steps to provide the Accountant General with the following particulars within seven (7) days of every seizure effected under the Dangerous Drugs Act:

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The Financial Administration and Audit Act Instructions www.mof.gov.jm

SHIPS (a) (b) (c) (d) (e) (f) (g) (h)

Name of Ship Port of Registration Tonnage Period of which sea-worthiness certificate is valid Name of registered owner Date of seizure Government agency effecting seizure Estimated value

(a) (b) (c) (d) (e)

Make and model Country of registration Registration number Period of which air-worthiness certificate is valid (e) - (h) As in the case of ships.

Aircraft

Motor Vehicles (e) - (h) as in the case of ships.

In cases where prosecution is involved, it will be the duty of the Clerks of Court or Registrars to advise the Accountant General immediately these matters are finally determined.

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FINANCIAL INSTRUCTIONS (REVISED DECEMBER 1999)

APPENDICES Appendix

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PAGE I II III IV

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Voted Provision Control of Cheques - Computer Contracts Settlement of Undischarged Commitments

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