Statutory Instrument 144 of 2019. - veritaszim.net 2019 - 144 Public Finance... · 1 Statutory...

S.I. 144 of 2019

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Statutory Instrument 144 of 2019.

[CAP. 22:11

Public Finance Management (Treasury Instructions), 2019

ITisherebynotifiedthattheMinisterofFinanceandEconomicDevelopment,hasintermsofsection78of the Public Finance Management Act [Chapter 22:19],approvedthefollowingTreasuryinstructions:—

Title

1. TheseinstructionsmaybecitedasthePublic Finance Management (Treasury Instructions), 2019.

2. These instructions shallcomeintoeffectonthedateofpublicationintheGovernmentGazette,andshallhenceforthreplaceandsupersedeallpreviousinstructions.

First Schedule

TREASURY INSTRUCTIONS

ARRANGEMENTOFSECTIONS

PART IPreliminary

Section 1. Title. 2.Interpretation.

PART IIadministration and General

3. Authority. 4.PurposeofissuingTreasury Instructions.5.ApplicationofTreasury Instructions. 6. Access to Treasury Instructions.7.ReviewofTreasury Instructions. 8.RelationshipbetweenTreasury Instructions,TreasuryCircularsandTreasuryCircularsMinutes.9.SuspensionofTreasury Instructionsprovisions. 10. Basis of accounting.11.Accountingpoliciesandconventions.12.ChartofAccounts.13.Accountingpackage.14.FinancialYear.15.FunctionalandReportingCurrency.

PART IIIPrinciPles oF Public Finance manaGement

16.PrinciplesofPublicFinanceManagement.17.ParliamentaryoversightofStaterevenuesandexpenditure.18.ConsolidatedRevenueFund.19.ChargesuponConsolidatedRevenueFund.20.AppropriationsfromConsolidatedRevenueFund. 21. Limits of Stateborrowings,publicdebtandState guarantees.22.SafeguardingofPublicFundsandProperty.23.Principlesofgenderbalance,equityandnon-discrimination.

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PART IVadministration and institutional arranGements

Section 24. Treasury. 25. Secretary for Finance.26.Accountant-General.27.PrincipalDirectorresponsiblefordebtmanagement.28.Accountingofficers.29.PrincipalDirector/DirectorofFinance.30.HeadresponsiblefortheProcurementManagementUnit.

PART VbudGetinG and BudGetaryControl

31.Budgetpreparation.32.Budgetsubmission.33.Budgetapproval.34.Budgetauthorisation.35.Budgetimplementation.36.Budgetmonitoring.37.Virementing.38.Additionalandsupplementaryestimates.39.SpecialWarrants on Budgets.40.BudgetReporting.41.Condonationofunauthorisedexcessexpenditure.

PART VIrevenue manaGement

42.Receiversandcollectorsofrevenue.43.Receiptsandlicences.44.Manualreceiptbooks.45.Stampsandfacevalueinstructions.

PART VIIreceiPt and recordinG, custody and disPosal oF Public money

46.Receiptandrecordingandpublicmoneys.47.Custodyofpublicmoneys.48.Disposalofpublicmoneys.49.Recovery.

PART VIIIrecovery or Write-oFF oF Public moneys

50.Abandonmentofclaimsandwrite-offofpublicresources. 51. Treasury surcharges.52.Temporarydeposits.

PART IXexPenditure manaGement

53.Expenditurecontrolandclassification.54.Classificationofexpenditure.

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PART XexPenditure on emPloyment costs

Section

55.Establishments,appointmentandrecords.56.Salariesandwagescalculations.57.Deductions.58.Paymentofsalariesandwagesandstatutoryreturns.59.Expendituredocumentationandvalidation.60.Cashpaymentsandacquittances.

PART XIPaymaster General’s account: electronic Funds transFers, cheques, and oFFicial bankinG accounts

61.PaymasterGeneral’sAccount.62.Processingofpayments.63.Officialbankingaccounts.64.Advances.65.Travellingandsubsistenceallowances.66.Disallowancesanddepartmentalsurcharges.

PART XIIProcurement oF Goods, services and Works

67.Procurementpolicy.68.Evaluationcommittee.69.Typesoftender.70.InternationalTender.

PART XIIIProcurement Process For Goods, non-consultancy services and Works

71.Internalpurchaserequestforgoods,non-consultancyservicesandworks.72.Procurementmethodsforgoods,non-consultancyservicesandworks.73.Competitivebidding.

PART XIVuse oF Procurement methods other than comPetitive biddinG

74.Restrictedbiddingmethod.

75.Directprocurementmethod.

76.Requestforquotationmethod.

77.Tenderinvitation.

78.Requestforquotationsforgoods,on-consultancyservicesandworks.

79.Receiptandopeningofbids.

80.Selectionofvendorandnoticeofawardoftender.

81.Signingofcontracts.

82.Issueofpurchaseorders.

83.Purchasesexemptedfromtenderprocedures.


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PART XVProcurement Process For consultancy services

Section

84.Requestforproposal.85.Methodsofsolicitingevaluatingandselectingconsultantbids.86.Evaluationofconsultancyproposalsandtenderaward.87.Qualityandcostbasedselection.88.Selectionunderfixedbudget.89.LeastCostSelection.90.Qualitybasedselectionmethod.91.Selectionamongstcommunityserviceorganisations.92.Single-sourceselection.93.Selectionofindividualconsultants.94.Confidentialityinprocurement.95.Receiptofgoods,services,worksandconsultancyservices.96.Managementofprocurementcontracts.97.Paymentrelatingtocontracts.

PART XVIasset ManaGement

98. Policy.99.AcquisitionofGovernmentassets.100.Recordingofassets.101.Useofassets.102.Controlofassets.103.Governmentvehicles.104.Fuelcoupons.105.Assetverification.106.Disposalofunserviceable,obsoleteorsurplusassets.107.Inventory.108.Livestock.109.Deficienciesin,damagetoanddestructionofGovernmentproperty. 110. Securities.

PART XVIIGiFts and donations

111.ResponsibilityformanagementPublicDebt. 112. Policy.113.Rejectinganofferofagiftordonation.114.Accountingforgiftsanddonations.115.Reportingandauditongiftsanddonations.

PART XVIIIFund accountinG

116. Policy.117.Submissionofannualbudgets.118.Managementcommittees. 119. Accounting.120.Financialreporting.121.Auditoffunds.

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PART XIXPublic debt manaGement

Section122.PublicDebtManagement.123.ResponsibilityformanagingPublicDebt.124.Borrowingpowers,limitsandmonitoring.125.Publicdebtandbudgeting.126.Purposeofborrowing.127.Raisingloans.128.Governmentguarantees.129.Publishingofloansandguarantees.130.Accountingforproceedsinconnectionwithloansandguarantees.131.Paymentsinconnectionwithloansandguarantees.132.AdministrationofPublicDebt.133.ReportingonPublicDebtactivities.134.Establishmentofsinkingfunds.

PART XXinternational develoPment assistance

135. Policy.136.Receivingdevelopmentassistance.137.Accountingfordirectpaymenttothesupplierorcontractor.138.Goodsandservicesreceivedinkindundergrantagreement.139.ResourcesprovidedthroughTreasury.

PART XXIGeneral

140.ClaimsbyandclaimsagainsttheGovernment. 141. Pensions.

PART XXIIliabilities

142.Commitments.143.Employeeentitlements.144.Contingentliabilities.

PART XXIII

transactions throuGh diPlomatic and consular missions

145. Policy. 146. Public Financial Management.147.Policy.148.SystemSecurity.149.SystemAdministration.150.Disasterrecoveryandback-upplan.151.DocumentationforthePFMS.152.Vendordatabasecreationandmaintenance.


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PART XXIV

Financial rePortinG

153.BasisofPreparationandPresentationofFinancialStatements.154.ContentsofFinancialStatements.155.Otherreports.156.AuditofFinancialStatements.

PART XXVinternal control

157.Policy.158.Officersoremployeesresponsibleforthereceipt,recordinganddisposalofpublicmoneys.159.Handingoverandtakingoverofduties.160.Safes,strong-rooms,strongboxesandcash-boxes.161.Internalaudit.162.Riskassessment.163.Auditcommittees.

aPPendix:GlossaryofAcronymsusedinthehandbook.

Interpretation

2.(1)IntheseInstructions— “Accountant-General”meansthepersonappointedassuchintermsofsection9ofthePublicFinanceManagementAct

[Chapter 22:19]; “accountingofficer”meansapersonwhoisprescribedtobeanAccountingOfficerintermsofsection10oftheAct,and

chargedwiththedutyofaccountingforanyserviceinwhichmoneyshavebeenappropriatedbyParliament; “accountingpolicies”arethespecificprinciples,bases,conventions,rulesandpracticesadoptedbyanentityinpreparing

andpresentingfinancialstatements; “accrualbasis”meansabasisofaccountingunderwhichtransactionsandothereventsarerecognisedwhentheyoccur

(andnotonlywhencashoritsequivalentisreceivedorpaid); “Act”meansthePublicFinanceManagementAct[Chapter 22:19]; “Auditor-General,”meansthepersonappointedassuchintermsofsection310oftheConstitutionofZimbabwe; “bidder”meansanactualorpotentialpartytoaprocurementcontractwithaprocuringentity; “cash”comprisescashonhand,demanddepositsandcashequivalents; “cashbasis’meansabasisofaccountingthatrecognisestransactionsandothereventsonlywhencashisreceivedorpaid; “chart of accounts”means a structured list of accounts used to classify and record budget revenue and expenditure

transactionsaswellasgovernmentassetsandliabilitiesonastandardbudgetclassificationssystem; “ConsolidatedRevenueFund”meanstheConsolidatedRevenueFundreferredtoinsection302oftheConstitutionof

Zimbabwe; “constructionwork”meansallworkassociatedwiththeconstruction,reconstruction,demolition,repairorrenovationof

anybuildingorinfrastructure; “consultancyservices”meanserviceswhichareofanintellectualandadvisorynature; “contingentliabilities”meansthoseobligationsthatmayormaynotbecomedue,dependingonwhetheraparticularevent

occurs; “debtcharges”includesinterest,sinkingfundcharges,therepaymentoramortisationofdebtandallexpenditurerelatedto

theraisingofloansonthesecurityoftheConsolidatedRevenueFundandtheserviceandredemptionofdebtcreatedby those loans;

“DirectorofFinance”meansapersonresponsibleforthefinancialaffairsofaMinistrywhoisdirectlyaccountabletotheAccountingOfficerofthatMinistry;

“facevalueinstruments”meansbonds,stocks,treasurybillsandanyothergovernmentfinancialinstruments. “financialyear”inrelationtotheStateorthefinancesoftheGovernmentofZimbabwemeansthetwelve-monthperiod

endingonthe31stDecember; “financialstatements”: 1. Inrelationtocashbasisofaccountingmeans— (a) astatementofcashreceiptsandpayments; (b) accountingpoliciesandexplanatorynotes; (c) whentheentitymakespubliclyavailableitsapprovedbudget,acomparisonofbudgetandactualamounts

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eitherasaseparateadditionalfinancialstatementorasabudgetcolumninthestatementofcashreceiptsandpayments;and

(d) otherreportsthattheAccountant-Generalmayrequire. 2. Inrelationtoaccrualbasisofaccountingmeans— (a) astatementoffinancialposition; (b) astatementoffinancialperformance; (c) astatementofchangesinnetassets/equity; (d) astatementofcash-flow; (e) whentheentitymakespubliclyavailableitsapprovedbudget,acomparisonofbudgetandactualamounts

eitherasaseparateadditionalfinancialstatementorasabudgetcolumninthefinancialstatement; (f) notes,comprisingasummaryofsignificantaccountingpoliciesandotherexplanatorynotes;and (g) otherreportsthattheAccountant-Generalmayrequire. “frameworkagreement”meansanagreementbetweenoneormoreprocuringentitiesandoneormorecontractors,bidders,

serviceprovidersorconsultantsthepurposeofwhichistoestablishthetermsgoverningordersforthesupplyofgoodsandrelatedservicesorrepairandmaintenanceworkstobeplacedduringagivenperiod,inparticularwithregardtoprice,and,whereappropriate,thequantityorquantitiesenvisaged;

“fruitless andwasteful expenditure”means expenditurewhichwasmade in vain andwould have been avoided hadreasonablecarebeentaken;

“loan”meansanyborrowingwithorwithoutinterestfromanysourceoranyissuanceofanationalgovernmentsecurity; “Minister”meanstheMinisterresponsibleforFinanceoranyotherMinistertowhomthePresidentmay,fromtimeto

time,assigntheadministrationofthePublicFinanceManagementAct[Chapter 22:19]; “Non-consultancyservices”meanservicesconsistingofphysicaljobperformance,usuallybycontractedlabourers; “procurement”means the acquisition by anymeans of goods, constructionwork or services (consultancy and non–

consultancy); “publicdebt”meansdomesticandexternal:— (a) Governmentdebt,lendingandguarantees; (b) localauthoritydebt,lendingandguarantees; (c) publicentitydebt,lendingandguarantees; “publicfunds”includesanymoneyownedorheldbytheStateoranyinstitutionoragencyofthegovernment,including

provincialandlocaltiersofgovernment,statutorybodiesandgovernment-controlledentities; “publicofficeroranofficer”meansanypersonasdefinedinthePublicServiceRegulations,2000[StatutoryInstrument

1of2000]asamended; “publicproperty”meansanypropertyownedorheldbytheStateoranyinstitutionoragencyofthegovernment,including

provincialandlocaltiersofgovernment,statutorybodiesandgovernment-controlledentities; “receipt”isanofficialdocumentissuedasanacknowledgementforcollectionofpublicmoneys; “receiverofRevenue”meansanypersonwhoisprescribedtobeaReceiverofRevenueintermsofsection10oftheAct; “revenues”meansalltaxes,feesandotherincomeoftheStatefromwhateversourcearising(notbeingmoneyswhich

arerequiredbylawtobepaidintoaseparatefund),includingtheproceedsofallloansraisedbytheStatewhich,intermsofsection302oftheConstitution,formpartoftheConsolidatedRevenueFund;

“SecretarytotheTreasury”istheheadoftheMinistryresponsibleforFinanceandthemainnationaleconomicadvisor. “Stateloan”meansasumofmoneyborrowedintermsofthePublicDebtManagementAct[Chapter 22:21]; “statutoryfund”meansanyfundestablishedbyorunderanyenactmentnotincluding—

afundestablishedundersection18ofthePublicFinanceManagementAct[Chapter 22:19]; orafundestablishedbyorforthepurposesofapublicentitywhichdoesnotcontainpublicmoney.

“tax”includesaduty,rate,levyorfeechargedonaproduct,incomeoractivity. “thresholds”meansthefinanciallimitsaboveorbelowwhichspecifiedprocurementmethodsshouldbeapplied. “treasury”meanstheDepartment(s)intheMinistryresponsibleforFinancethatistheleadadvisoronnationaleconomic,

financialmanagementandregulatorypolicy. “virement”meanstheapplication,asauthorisedbyanAppropriationAct,ofsavingsonasubheadofaVotetomeetexcess

expenditureonanothersubheadorexpenditureonanewsubheadofthesameVote; “vote”meansaheadoranappropriationofEstimates. “votedfunds”meansmoneyauthorisedbyanappropriationActforwithdrawalfromtheConsolidatedRevenueFund. (2)TheFirstSchedulecontainsaglossaryofacronymsusedinthehandbook.

PART IIadministration and General

Authority 3.(1)Theseinstructionsareissuedintermsofsection78readinconjunctionwithsection6ofthePublicFinanceManagementAct [Chapter 22:19].


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(2)AnyinstructionsorcircularsthatareinconsistentorinconflictwiththeseinstructionsshallbereferredtoTreasuryforfurtherguidanceand/orclarification.

Purpose of issuing Treasury Instructions

4.Theseinstructionsareissuedpursuanttotheprovisionsofsections6and78oftheAct,toprovideguidanceonpublicfinancialmanagementmattersrelatingto: (a) thecollection,receipt,custody,control,issueorexpenditureofpublicmoney; (b) theacquisition,receipt,custody,control,issue,sale,delivery,transferordisposalofanyStateproperty; (c) expenditureonanyserviceinvolvingachargeontheConsolidatedRevenueFund; (d) theoperationofanystatutoryfund;and (e) theacceptance,onbehalfoftheState,ofanygift,donation,bequestorothergrantofmoneysorotherpropertywhich

ismadesubjecttoaconditionorislikelytoinvolveachargeontheConsolidatedRevenueFund. Application of Treasury Instructions

5.(1)TheseinstructionsshallapplytoGovernmentMinistries,agenciesandemployeesofanydepartmentoragencyasdefinedinthePFMActandPublicServiceRegulations. (2)ItistheresponsibilityofeveryAccountingOfficertoensurethattheseTreasuryInstructionsarecompliedwithatalltimesandatalllevels.

Access to Treasury Instructions

6.(1)ThecurrentversionoftheTreasuryInstructionsisobtainablefromMinistryofFinance’swebsiteandtheofficialGovernmentPrinter. (2)AccountingOfficersshallensurethatcopiesofTreasuryInstructionsareavailedtotheirstaffforreferenceandguidance.

Review of Treasury Instructions

7.(1)Theseinstructionsshallbereviewedandupdatedeveryfiveyears,andeveryupdatedversionofTreasuryInstructionsissuedshallsupersedeandreplaceallpreviousversions. (2)OnceTreasuryInstructionsareupdated,itshallbetheresponsibilityofeveryAccountingOfficertoensurethatthelatestversionisapplied.

Relationship between Treasury Instructions, Treasury Circulars and Treasury Circular Minutes 8.(1)ThemainpurposeofTreasuryCircularsandCircularMinutesistoprovideguidanceandinformation,andtorequestfinancialinformation.TreasuryCircularsandCircularMinutesmaycovermattersthatareoutsidethescopeofTreasuryInstructions,suchasthebudgettimetable. (2)TreasuryCirculars orCircularMinutesmay covermatters that are to take effect immediately (butmay later beincorporatedwithinTreasuryInstructionsaspartoftheupdate). (3)TreasuryCircularsorCircularMinutesshouldbecompliedwithinthesamewayasTreasuryInstructions.

Suspension of Treasury Instructions Provisions

9.OnlytheMinistermay,inwriting,temporarilysuspendanyoftheprovisionscontainedintheseTreasuryInstructions.

Basis of accounting

10.(1)ThebasisofAccountingthattheGovernmentofZimbabweusesshallbedeterminedbytheBoardresponsibleforsettingAccountingStandardsinZimbabwe. (2)TheGovernmentofZimbabwecurrentlyappliesthecashbasisforvotedfundsandaccrualbasisforstatutoryandotherfunds.

Accounting Policies and Conventions

11.(1)Revenueunderthecashbasisofaccountingshallberecognisedandaccountedforasincomeintheperiodinwhichitisreceived. (2)Revenueundertheaccrualbasisofaccountingisrecognisedasitisearned(andnotonlywhencashoritsequivalentisreceived)andthetransactionsareaccountedforandreportedintheperiodtowhichtheyrelate. (3)Expensesunderthecashbasisofaccountingarerecognisedandaccountedforwhentheactualcashisdisbursed. (4)Expensesundertheaccrualbasisofaccountingarerecognisedastheybecomedue(andnotonlywhencashoritsequivalentisdisbursed)andthetransactionsareaccountedforandreportedintheperiodtowhichtheyrelate. (5)Underthecashbasisofaccounting,assetsareexpensed(fullydepreciated)intheyearofpurchase. (6)Undertheaccrualbasisofaccounting,assetsaredepreciatedinaccordancewithpolicypronouncementsfromtheBoardresponsibleforsettingAccountingStandardsinZimbabweandTreasurypolicydirections.

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Chart of accounts

12.TheGovernmentofZimbabwehasadoptedtheInternationalMonetaryFundGovernmentFinanceStatistics(GFS)ChartofAccounts.AllGovernmentMinistries,Agencies,statutoryandotherfundsshalladoptthisclassificationsystem.

Accounting package

13.(1)TheGovernmentofZimbabweusestheSystemsApplicationsProducts(SAP)integratedpackage(VersionEEC6EHP7)hereinafterreferredtoasthePublicFinancialManagementSystem(PFMS). (2)StatutoryandotherfundsshallutilisethesameaccountingpackageunlessauthorisedbyTreasurytorunindependentsystems. (3)AllindependentsystemsshallbecompatiblewiththeSAPsystem.

Financial Year

14.ThefinancialyearoftheGovernmentofZimbabweshallbefrom1stJanuaryto31stDecemberofeachyear.

Functional and reporting currency

15.AlthoughZimbabweacceptsanumberofcurrencies,thefunctionalandreportingcurrencyistheUnitedStatesdollar(USD).

PART III

PrinciPles oF Public manaGement

Principles of Public Finance Management

16.TheprinciplesthatmustguidePublicFinanceManagementareprovidedforundersection298oftheConstitutionofZimbabwe.Theseincludethefollowing— (a) transparencyandaccountabilityinfinancialmatters.Governmentministries,departmentsandagenciesmustmake

clearwhathasbeendoneandwhyithasbeendone; (b) publicfinancesystemmustbedirectedtowardsnationaldevelopment,andinparticular— (i) theburdenoftaxationmustbesharedfairly; (ii) revenueraisednationallymustbesharedequitablybetweenthecentralgovernmentandprovincialandlocaltiers

ofgovernment;and (iii) expendituremustbedirectedtowardsthedevelopmentofZimbabwe,andspecialprovisionmustbemadefor

marginalisedgroupsandareas; (c) theburdensandbenefitsoftheuseofresourcesmustbesharedequitablybetweenpresentandfuturegenerations; (d) publicfundsmustbeexpendedtransparently,prudently,economicallyandeffectively; (e) financialmanagementmustberesponsibleandfiscalreportingmustbeclear; (e) publicborrowingandalltransactionsinvolvingthenationaldebtmustbecarriedouttransparentlyandinthebest

interestsofZimbabwe;and (f) notaxesmaybeleviedexceptunderthespecificauthorityoftheConstitutionofZimbabweoranActofParliament.

Parliamentary oversight of State revenues and expenditure

17.Section299oftheConstitutionofZimbabwemandatesParliamenttomonitorandoverseerevenueinflowsandexpenditurebytheGovernmentinordertoensurethat— (a) allrevenueisaccountedfor; (b) allexpenditurehasbeenproperlyincurred;and (c) anylimitsandconditionsonappropriationshavebeenobserved.

Consolidated Revenue Fund

18.TheConstitutionprovidesforaConsolidatedRevenueFundintowhichmustbepaidallfees,taxesandborrowingsandallotherrevenuesoftheGovernment,whatevertheirsource,unlessanActofParliament— (a) requiresorpermitsthemtobepaidintosomeotherfundestablishedforaspecificpurpose;or (b) permitstheauthoritythatreceivedthemtoretainthem,orpartofthem,inordertomeettheauthority’sexpenses.

Charges upon Consolidated Revenue Fund

19.(1)Section304oftheConstitutionofZimbabweprovidesthatthecostsandexpensesincurredincollectingandmanagingtheConsolidatedRevenueFundformthefirstchargeontheFund. (2)AlldebtchargesforwhichtheStateisliablemustbechargedupontheConsolidatedRevenueFund.


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Appropriations from Consolidated Revenue Fund

20.(1)Section305oftheConstitutionprovidesthateveryyeartheMinisterresponsibleforfinancepresent,totheNationalAssembly,astatementoftheestimatedrevenuesandexpendituresoftheGovernmentinthenextfinancialyear. (2)WhentheNationalAssemblyhasapprovedtheestimatesofexpenditureforafinancialyear,anAppropriationActispromulgatedandit— (a) providesformoneytobeissuedfromtheConsolidatedRevenueFundtomeettheapprovedexpenditure;and (b) appropriatesthemoneytothepurposesspecifiedintheestimates,underseparateVotesforthedifferentheadsof

expenditurethathavebeenapproved.

Limits of State borrowings, public debt and State guarantees 21.Section300oftheConstitutionrequiresthatlimitsbesetonborrowingsbytheState;thepublicdebt;anddebtsandobligationswhosepaymentorrepaymentisguaranteedbytheState. (2)ThesetlimitsshallnotbeexceededwithouttheauthorityoftheNationalAssemblyandinaccordancewiththeprovisionsofthePublicDebtManagementAct[Chapter 22:21].

Safeguarding of public funds and property

22.(1)Section308(2)oftheConstitutionprovidesthat,itisthedutyofeverypersonwhoisresponsiblefortheexpenditureofpublicfundstosafeguardthefundsandensurethattheyarespentonlyonlegallyauthorisedpurposesandinlegallyauthorisedamounts. (2)Section308(3)oftheConstitutionprovidesthat,itisthedutyofeverypersonwhohascustodyorcontrolofpublicpropertytosafeguardthepropertyandensurethatitisnotlost,destroyed,damaged,misappliedormisused.

Principles of gender balance, equality and non-discrimination 23.(1)TheConstitutionofZimbabweisinformedbytheprinciplesofgenderbalanceandgenderequality.Itadvocates,amongotherthingsthatGovernmentinstitutionsensureequalrepresentationsforbothmenandwomeninallspheres. (2)Stateagenciesshalltakeactions,includinglegislativemeasurestorectifygenderdiscriminationandimbalancesresultingfrompastpracticesandpolicies. (3)Theseinstructionsshallbegendersensitive,andthebudgetaryprocessandoutcomesshallreflecttheprinciplesofgenderresponsivebudgeting.

PART IV administrative and institutional arranGements

Treasury 24.(1)Section6oftheActgivesTreasurytheresponsibilitytomanageandcontrolpublicresources.Treasuryisthereforeresponsiblefor— (a) managingtheConsolidatedRevenueFund; (b) determiningthemannerinwhichpublicresourcesshallbeaccountedfor;and (c) exercisinggeneraldirectionandcontroloverpublicresources. (2)Section4ofthePublicDebtManagementAct[Chapter 22:21]givesTreasurytheresponsibilityfordebtmanagementoperations. (3)ThepowersofTreasuryinrelationtopublicresourcesaresetforthinsection11oftheAct.

Secretary for Finance

25.ThedutiesandpowersoftheSecretaryforFinancewhoshallalsobethePaymaster-Generalaresetoutinsection8oftheAct.TheSecretaryshallensurethat— (a) thereisestablishedandoperatedaneffectivesystemforthecollectionofinformationtoensuretimelyandeffective

preparationoftheannualestimatesofexpenditureforconsiderationandapprovalbytheMinisterandsubmissiontoParliament;and

(b) suchestimates— (i) arepreparedinconjunctionwithanygeneralorspecificdirectionsoftheMinister;and (ii) reflect,ascanbestbeascertainedatthetime,goodvalueformoneyandtheeffectiveuseofpublicresources; and (c) asPaymaster-GeneralandsubjecttothedirectionsofTreasury,theSecretaryshallcontroltheissueofpublicmoney

toMinistriesandDepartmentsoftheGovernment,andperformsuchotherfunctionsastheMinistermayprescribe.

Accountant-General

26.(1)TheAccountant-Generalisappointedintermsofsection9oftheActandshallberesponsibletotheSecretaryforFinanceforthecompilationandmanagementofthepublicaccountsandthecustodyandsafetyofpublicresources.

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(2)TheAccountant-General’spowersarespecifiedinsection9(4)oftheAct. (3)TheresponsibilityoftheAccountant-GeneralincludesthedeterminationofappropriateinvestmentofmoneysintheConsolidatedRevenueFundinaccordancewithsection20oftheAct. (4)TheAccountant-Generalshallauthorisetheestablishmentofallbankingaccounts. (5)TheAccountant-GeneralisresponsibleforissuingexpenditurewarrantsauthorisingAccountingOfficerstospendfundsfromtheConsolidatedRevenueFundwithintheprescribedlimitsandsubjecttotheconditionscontainedtherein. (6) It is the responsibilityof theAccountant-General topreparemonthly,quarterlyandannual consolidatedfinancialstatementsandtosubmitsuchstatementstotherespectiveofficesasprovidedforbytheAct. (7)TheAccountant-GeneralshallberesponsibleforthepreparationandsubmissionofTreasuryMinutesexplainingtheactionthathasbeentakenonrecommendationsforimprovementsinpublicfinancialmanagementbytheSelectCommitteeonPublicAccountsandgivingreasonsforanyrecommendationsnothavingbeenimplemented. (8)TheActgivestheAccountant-GeneraltheresponsibilitytospecifyforeveryMinistry,reportingunitorstatutoryfund,thebasisoftheaccountingsystemtobeadoptedandtheclassificationsystemtobeused,andensurethatapropersystemofaccountsisestablishedineachofthem,andthatallmoneyreceivedandpaidbytheGovernmentisbroughtpromptlyandproperlyto account.

Principal Director responsible for debt management

27. (1)ThePrincipalDirector responsible forDebtManagement is appointed in termsof section6of thePublicDebtManagementActandshallberesponsibletotheSecretaryforFinanceforthecontrolandmanagementoftheoperationsofthePublicDebtManagementOffice(PDMO). (2)ThefunctionsofthePDMOarespecifiedinsection5(2)ofthePublicDebtManagementAct.Intermsoftheprovisionsofthesaidsection,thePDMOshallberesponsibleforthefollowingfunctions— (a) preparingandpublishingaMediumTermDebtManagementStrategyinaccordancewithsection8ofthePublicDebt

Management Act; (b) preparingandpublishinganannualborrowingplanwhichincludesaborrowinglimit,andparticipateinthepreparation

ofanissuancecalendarofGovernmentsecuritiesinlinewiththeannualborrowingplan; (c) advisingtheMinisteronallGovernmentborrowings,andparticipatinginallnegotiationswithcreditorsonGovernment

borrowingsandguaranteedloans; (d) undertakingannualdebtsustainabilityanalysis; (e) assessingtherisksinissuinganyguarantees,includingassessingthecapacityofthebeneficiaryofaguaranteeto

repaytheloan,andtopreparereportsonthemethodusedforeachassessmentandtheresultsthereofforapprovalbythe Minister;

(f) preparingannualreportsonoutstandingguarantees,andfacilitatingtherecoveryofanypaymentsincludinginterestandanyothercostsincurredbyGovernmentduetothehonouringofoutstandingguarantees;

(g) assessingthecreditriskinanylending,andpreparingreportsonthemethodusedforeachassessmentandtheresultsthereof for the attention of the Minister;

(h) preparingreportsonthedebtoflocalauthoritiesandpublicentities;aswellasassessing,monitoringandkeepingtrackofdebtlevelsofalllocalauthoritiesandpublicentities;

(i) storageofalloriginalloanagreementsanddebtadministrationrecordsinrelationtothepublicdebt; (j) compilation,verificationandreportingonallpublicdebtarrears,especiallyGovernmentpublicdebtarrears,and

designingastrategyforthesettlementofthese; (k) keeping timely, comprehensiveandaccurate recordsofoutstandingpublicdebt,guarantees andon-lending, in a

computeriseddatabaseandinparticular— (i) compilingdataonalldebtservicingobligationsoftheGovernment,localauthoritiesandpublicentities,and

prepareandpublishdebtstatisticalbulletinsinrelationtheretoregularly,eithergloballyoronaselectivebasisasrequired;and

(ii) validatingandreconcilingdebtdataconcerningcreditorsoftheGovernmentofZimbabwe; (l) preparingforecastsonGovernmentdebtservicinganddisbursementsaspartoftheyearlybudgetpreparations; (m) preparingbalanceofpaymentsprojections; (n) monitoringandevaluatingprojectsfundedorpartlyfundedbypublicdebttoensurethatborrowedfundsareusedfor

theirintendedpurposes; (o) preparinganannualreportonGovernmentdebtmanagementactivitiesincludingthedebtstockpositionandrelated

debtserviceprojections,newborrowing,guaranteesandlending; (p) operatingastheSecretariattotheExternalandDomesticDebtManagementCommitteeinaccordancewithsection

7(3)ofthePublicDebtManagementAct; (q) actingastheprincipaladviserinthedevelopmentofdomesticcapitalmarketsandissuanceofdomesticandexternal

debtsecuritiesonbehalfoftheGovernmentofZimbabwe;


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(r) assessing,monitoringandreportingonanyotherimplicitandexplicitpublicsectorcontingentliabilitiesandadvisingon their management;

(s) maintainingandadministeringasecurecomputeriseddebtmanagementinformationsystem; (t) initiation,facilitationandmonitoringofdisbursementsonborrowingsandon-lending;and (u) analysingrequestsfromlocalauthoritiesandpublicentitiesforborrowings.

Accounting officers

28.(1)AccountingOfficersareprescribedintermsofsection10oftheAct.Thetitle“AccountingOfficer”denotestherelationshipinwhichsuchofficersstandtowardsParliamentandidentifiestheirresponsibilityforgeneralfinancialadministrationoftheVotesorfundsintheircharge.AccountingOfficersshallcontrolandbeaccountablefortheexpenditureofmoneyappliedtotheirVotebyanAppropriationActandforallrevenuesandotherpublicmoneyreceived,heldordisposedof,byoronaccountoftheirMinistry,reportingunit,publicentityorconstitutionalentityforwhichtheVoteprovides.AccountingAuthoritiesforreportingunits,publicentitiesorconstitutionalentitiesforwhichaVoteprovidesshallbeaccountabletotheAccountingOfficerforthemanagementofpublicresourcesundertheircontrol. (2)Theterm“AccountingOfficer”mustbedistinguishedfromtheterm“accountant”whichtermiscommonlyusedtodescribeofficersperformingdutiesofatechnicalnatureinconnectionwithbook-keepingandaccounting. (3)ThespecificresponsibilitiesofanAccountingOfficeraresetoutintheStatutoryInstrumentinforce. (4)TheAccountingOfficermustcommunicatedirectlywithTreasuryinregardtoallquestionsrelatingtotheirfinancialresponsibilitieswhichcannotberesolvedbyreferencetotheseInstructions. (5)TheAccountingOfficershallberesponsibleforallcorrespondencewhethersignedpersonallyorontheirbehalf. (6)AccountingOfficersshallnotdelegateresponsibilityfortheproperconductoffinancialbusinesstosubordinateofficerswhomaybeplacedinchargeofdepartmentalaccounts.ItisincumbentonAccountingOfficerstosatisfythemselves,bymeansofstatementsdulycertifiedbytheofficersentrustedwiththeoperationofanyaccount,astothecorrectnessandproprietyofthetransactionsonsuchaccounts.AccountingOfficershavetherightinwhatevermannertheychoosetosatisfythemselvesofanyactiontakenintheirnameswhichtheymaysubsequentlyhavetodefend. (7)WithintheframeworkoftheseInstructions,AccountingOfficersshallissuedetailedwritteninstructionsgoverningtheconductoffinancialbusinessandthecontrolofallpublicmoneysandthepropertyforwhichtheyareresponsible.Suchinstructionsshallincludedirectionsastotheoperationofinternalcheckandcontrolsystems. (8)AllinstructionsissuedintermsofInstructionNo.0332shallbeapprovedbyTreasuryandcopiesoftheapprovedAccountingOfficer’sInstructionsshallbetransmittedtotheAuditor-General. (9)AccountingOfficersshallensurethatinstructionsissuedinaccordancewithInstructionNo.0332,arereviewedatleasteveryfiveyearsforthepurposesofensuringthatanychangesofcircumstancesarecateredfor. (10)AccountingOfficersshallensurethattheprovisionsoftheseInstructionsarefollowedinrelationtoFundssetupintermsofsection18oftheAct(coveredinInstructionNos.1200-1299oftheseTreasuryInstructions)andwhichareadministeredbyofficersintheirofficialcapacitiesunlessspecificTreasuryauthorityforexemptionhasbeenobtained. (11)ItistheresponsibilityofAccountingOfficerstosubmittotherespectiveParliamentaryPortfolioCommittee,theunauditedannualfinancialstatementsoftheirrespectiveMinistrywithinninetydaysoftheendofthefinancialyearandintermsof Act.

Principal Director/Director of Finance

29.(1)ThePrincipalDirector/DirectorofFinance(hereinafterreferredtoasDirectorofFinance)providestheAccountingOfficerwithassistanceinthefinancialadministrationofVotesandFundsundertheircharge.TheirresponsibilityistoadviseAccountingOfficersonallfinancialmatters.Theymayalsoexamineandcommentonthefinancialaspectsofadministrativeactionandministerialpolicy. (2)EveryDirectorofFinanceshallhavefreeaccesstoallpapersrelativetotheirdutiesandmustreportdirectlytotheAccountingOfficer. (3)IntheabsenceofthepersonalcommentsoftheAccountingOfficer,TreasurywillexpecttheviewsoftheDirectorofFinancetoaccompanyanyfinancialproposalssubmittedtoTreasury. (4)TheDirectorofFinanceisanswerablefor— (a) theday-to-dayrunningoftheirrespectiveaccountsoffices; (b) thekeepingoffinancialrecordsandbooksofaccount; (c) thesafecustodyofthepublicmoneysentrustedtothem; (d) puttinginplacesystemsofinternalchecksandcontrolonfinancialadministration; (e) thepreparationandsubmissionofallfinancialstatements(monthly,quarterlyandannual),anyreturns,otherstatutory

reportsandtheaccountsofotherpublicmoneysthataretheresponsibilityoftheAccountingOfficer; (f) ensuringtheaccuracyoftheaccounts,anddrawingtheAccountingOfficer’sattentiontoallpointsofimportance

whichariseinconnectionwiththem; (g) ensuringthatthedeadlinesforpreparationandsubmissionofFinancialStatementstotheAccountingOfficerintheir

respectiveMinistryandtotheAccountant-Generalaremet;and

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(h) ensuringresponsestoAuditobservationsaretimely.

(5)TheDirectorofFinanceshallsubmittoTreasury,bythe20thworkingdayofthefollowingmonth,withacopytotheAuditor-General,theAccountingOfficer’sTreasuryCertificateinsuchformasdeterminedbyTreasuryfromtimetotime.ThecertificateshallbesignedonbehalfoftheAccountingOfficerbytheDirectorofFinance.

Head responsible for the Procurement Management Unit

30.ThePublicProcurementandDisposalofPublicAssetsAct[Chapter 22:23]providesfortheestablishmentofaProcurementManagementUnit(PMU).TheHeadofthePMUshallbetheAccountingOfficer.TheAccountingOfficershallbesupportedbyprocurementofficersandthePMUshallhavethefollowingresponsibilities— (a) puttinginplaceatransparentandcompetitivebiddingsystemthataffordsfairandequitabletreatmentofallbidders; (b) puttinginplaceasystemthatminimisesfruitlessandwastefulprocurement; (c) planningthePublicProcurementandDisposalofPublicAssetsActivitiesoftheMinistry,AgencyorDepartment; (d) recommendingtheappropriateprocurementmethod; (e) preparingsolicitationdocuments; (f) preparingbidnoticesandshortlists; (g) managingthebiddingprocess,includingpre-bidmeetings,clarifications,receiptandopeningofbids; (h) managingtheevaluationofbidsandanypost-qualificationornegotiationsrequired; (i) preparingevaluationreports,includingcontractawardrecommendations; (j) preparingcontractdocumentsandamendments; (k) managingcontractsoroverseeingcontractsmanagementbythedesignatedcontractsmanager; (l) preparingsuchprocurementreportsasrequiredbytheAccountingOfficer;and (m) promotingtheintegrityof,andfairnessandpublicconfidencein,theprocurementprocess.

PART VbudGetinG and BudGetary Control

Budget preparation

31.(1)Thissectionprovidesguidanceonbudgetpreparation,approval,execution,monitoringandreporting. TreasuryshallberesponsibleforprovidingguidanceandcommunicatingwithAccountingOfficersregardingthebudgetcalendarandtimetable.TreasuryshallissueaBudgetStrategyPaper(BSP),andaBudgetcallcircular(s). (2)AccountingOfficersshallensurethatalltheDepartmentsandentitiesundertheircontrolaremadeawareofthebudgetcalendarandtimetable.It istheresponsibilityofAccountingOfficerstoensurethattheirMinistriesmeetbudgetsubmissiondeadlines. (3)Thebudgetingprocessshallbeparticipatoryinnaturewithallstakeholdersinvolvedinpublicfinancemanagementgettinginvolvedinthebudgetformulationexercise. (4)TheDirectorofFinanceshallbeinchargeofcoordinating,providingguidanceonresourceavailabilityandconsolidatingtheirrespectivelineMinistry’sbudget.

Budget submission

32. (1) AccountingOfficersshallsubmittotheTreasury,bysuchdateandinsuchformastheTreasurymayprescribe,draftestimatesofrevenueandexpenditure,tobedefrayedduringtheensuingfinancialyearfrombudgetandfinancialaccountforeachVoteundertheircontrol.

(2)BidsforcapitalbudgetsshallbesubmittedbytheAccountingOfficertotheappropriateMinisterand,ifapproved,shallthenbereferredtotheTreasuryforconsiderationbytheappropriateDepartment.ThebidsforcapitalbudgetsshallincludealldepartmentsandstatutorybodiesforwhichMinistriesareresponsibleandshallbesubmittedbysuchdateandinsuchformastheTreasurymayrequire.

(3)NoproposalshallbesubmittedtotheTreasurywithoutfullinformationonitsfinancialaspectsandasaccurateanestimateaspossibleofthefundslikelytoberequired.

(4)NoproposalinvolvingadditionalestablishmentchargesmaybesubmittedtotheTreasuryforapprovalunlessithasbeenpreviouslyexaminedandauthorisedbythePublicServiceCommission.

Budget approval

33.(1)TheAccountingOfficerisresponsibleforscrutinisingandapprovingtherespectivelineministry’sbudget.Inexecutingthisrole,AccountingOfficersshallensurethattheirbudgetforecastsfullyaddresstheMinistry’smandate,goals,programmesandtheprioritiessetinthenationaleconomicblueprints,andanyotherpolicypronouncements.


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(2)ItistheresponsibilityoftheAccountingOfficerstoensurethattheirMinistries’budgetsaregenderresponsive. (3)Treasuryhastheprerogativetoscrutinise,adjustandapprovelineMinistries’BudgetsaftertakingintoaccounttheMinistry’smandate,goals,programmesandprioritiesvis-à-vis national interest.

Budget authorisation

34.(1)TheresponsibilityforauthorisingbudgetsrestswiththeNationalAssemblywhichdoessothroughthepromulgationoftheAppropriationActandtheFinanceAct. (2)TheappropriationofmoneydoesnotautomaticallypermitlineMinistriestospend.Theauthoritytospendisconveyedthroughthefollowingwarrants— (a) Paymaster-General; (b) ConstitutionalandStatutoryprovisions;and (c) Accountant-General. (3)AllcapitalexpenditurereleasesshallbecoveredbyanAccountant-General’swarrant.

Budget implementation

35.(1)TreasuryhastheresponsibilityofinforminglineMinistriesoftheirauthorisedbudget.ThisinformationisconveyedthroughaPaymaster-General’sWarrantintermsofsection23(2)oftheAct.Quarterlywarrantsmaybeissuedshouldthecashforecasts so justify.

(2)TreasuryshallensurethattheauthorisedbudgetsforlineMinistriesareuploadedonthePFMS.FordecentralisedGovernmentUnitsthathavenoaccesstothePFMS,theAccountingOfficershallensurethattheauthorisedbudgetsaremanagedthroughacommitmentcontrolsystem.TheinformationmaintainedincommitmentcontrolrecordsshallbecapturedintothePFMSonaweeklybasis.

(3)ToenableTreasurytoadequatelyplanforfutureexpenditureandprioritisegovernmentrequests,AccountingOfficersshallpreparemonthlycashflowforecasts.Thesecashflowforecastsshalldisclosetheanticipatedincomefromallsourcesandtheforecastedexpenditure.

(4)TheDirectorofFinanceshallensurethattheirrespectivelineMinistry’scashplanningisdoneinaccordancewithTreasuryguidelinesandcashceilings(expendituretarget)givenfromtimetotime.

Budget monitoring

36.(1)TheAccountingOfficershallmonitortheperformanceofthebudgetregularlytoensuredeliveryofexpectedresultsandtoaddressanydeviationsfromtheirlineministry’stargets.

(2) Themonitoringofthebudgetshallbecarriedoutattransactionlevelwherebyeachbudgetlineischeckedforavailabilityoffundsbeforeauthorisingexpenditure.OfficersauthorisingexpenditureshoulddosoafterviewingthebudgetonthePFMSsystem.

(3)TheDirectorofFinanceshallundertakebudgetmonitoringthroughvarianceanalysiswheretheactualexpenditureperbudgetlineiscomparedtotheallocatedbudget.

(4)UndernocircumstancesshouldrequestsforservicesbemadeoutsidethePFMS.NorequestforservicemadeoutsidethesystemshallbehonouredbytheGovernment.AnyofficerwhomakessuchanordershallbeguiltyofanoffenceandliabletopenaltiessetoutintheAct.

(5)AccountingOfficersshallensurethatallproposedexpenditurefortheirMinistriesisinlinewiththebudgetandalltransactionsarecapturedonthePFMS.

(6)ForbudgetmonitoringtobeeffectivetheDirectorofFinanceshallensurethatallbooksofaccountsareuptodateandthemonthlyfinancialreportsthatcompareactualexpenditureagainstthebudgetarepreparedontimeasperTreasurydeadlines.

(7)TreasuryshallmonitortheperformanceofthenationalbudgetandtakeremedialactiononerrantlineMinistries.

(8)Treasurymay,onoccasionsduringthefinancialyear,calluponAccountingOfficerstosubmitforecastsofthetotalestimatedexpendituretobeincurredduringtheyearfromthevotesundertheircontrol.

(9) Treasury has theauthoritytowithholdfromaMinistryanyremainingfundsappropriatedforaspecificfunctionifthatfunctionistransferredtoanotherMinistryoranyotherinstitution.TreasuryshallallocatethoseremainingfundstotheMinistryorinstitutiontowhichthefunctionhasbeentransferred.

(10)TreasuryhastheauthoritytoauthorisethetransferofspecificassetstoaMinistryoranyotherInstitutionwherethefunctionservedbythatassethasbeentransferredtoanotherMinistry.

Virementing

37.(1)Thepowertovirementfromonesub-votetoanotherorthecreationofnewsub-headrestsonlywithTreasury.WiththeauthorityofTreasuryasavingonanysub-headmaybeappliedtomeetexcessbudgetrequirementsonanothersub-headoranewsub-headwithinthesameVote.

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(2)UnlesstheTreasuryexpresslyprecludesAccountingOfficersfromdoingso,theymayauthoriseasavingunderanyitemwithinasub-headorbetweensub-headstobeappliedtomeetexpenditureunderanotheritemwithintheVote.AccountingOfficersmay,withoutTreasuryauthority,virementfundswithinthesamesubhead. (3)AccountingOfficersshallensurethatnovirementsareeffectedontheirbudgetsduringthefirstsixmonthsofthefinancialyear. (4)AccountingOfficers shall ensure that their respective linesMinistries follow proper virementing procedures andapprovalsareobtainedinadvancenotaftertheevent.Itisanactoffinancialmisconduct,asdefinedbytheAct,tovirementfundsbetweensub-voteswithoutTreasuryapproval. (5)Treasuryhastheauthoritytoplacerestrictionsonvirementingfromcertainbudgetlineitems.Savingsonemploymentcostsmaynotbeappliedtomeetexcessexpenditureunderanyitemorsub-headwithoutpriorTreasuryauthority.Savingsoncapitalexpenditureorcapitalprojectsshallnotbevirementedtorecurrentexpenditureitemsorsub-votes.AlltransfersbetweencapitalexpenditureprojectsshallrequireTreasuryapproval.

Additional and supplementary estimates

38.(1)Theexpenditureonvotedserviceisarrangedandlimitedbytheprintedestimatesofexpenditure.ShoulditbecomeapparentthataprovisionisinadequateandtheAccountingOfficerissatisfiedthatnosavingsexistwhichcould,intermsofInstructionsNos.0436and0437,beappliedtothemeetingoftheadditionalexpenditure,AccountingOfficersshallapproachTreasuryforsupplementaryoradditionalestimatesasprovidedforintheAct. (2)Theresponsibilityfordealingwithlineministries’requestsforsupplementaryoradditionalfundsrestswithTreasury.These shall be dealtwith in accordancewith the provisions of theAct.AccountingOfficers shall also ensure that bids forsupplementaryoradditionalfundsarenotmadeunnecessarily. (3)AccountingOfficersshall,inatimelymanner,notifyTreasuryofanycasesofinescapableexpenditure.ShoulditbeagreedbytheTreasurythatspecialauthoritymaybesoughtintermsofsection24oftheAct,theAccountingOfficerconcernedshallsubmittotheTreasuryanapplicationintheformatdeterminedbyTreasury. (4)TheapplicationreferredtoinInstructionNo.0443aboveshallbesignedbytheAccountingOfficerpersonallyandshallbeaccompaniedbyamemorandumsettingoutthefulldetailsoftheexpendituretobeincurredandthereasonswhyitcannotbedelayed.Anindicationshallalsobegivenofsavingseffectedortobeeffectedonothersub-headsoftheVoteandofthepositionof the Vote in general.

Special warrants on budgets

39.(1)IftheAppropriationActforafinancialyearhasnotcomeintooperationbythebeginningofthatfinancialyear,Treasuryshall,withtheauthorityofthePresident,withdrawmoneyfromtheConsolidatedRevenueFundtomeetexpenditurenecessarytocarryontheservicesofthegovernmentforthefirstfourmonthsofthefinancialyear.Themoneywithdrawnshall— (a) notexceedonethirdoftheamountincludedintheestimatesforthepreviousfinancialyear;and (b) beincludedinanAppropriationActforthefinancialyearconcerned. (2)Treasuryshallwiththeauthorityof thePresident,withdrawmoneyfromtheConsolidatedRevenueFundtomeetexpenditurewhichwasunforeseenorwhoseextentwasunforeseenandforwhichnoprovisionhasbeenmadeunderanyotherlaw.Themoneywithdrawn— (a) shallnotexceedoneandone-halfpercentofthetotalamountappropriatedinthelastmainAppropriationAct; (b) mustbe included inadditionalorsupplementaryestimatesofexpenditure laidwithoutdelaybefore theNational

Assembly;and (c) iftheNationalAssemblyapprovestheestimates,themoneymustbechargedupontheConsolidatedRevenueFund

byanadditionalorsupplementaryAppropriationAct. (3) If Parliament is dissolved before adequatefinancial provision has beenmade for carrying on the services of theGovernment,Treasuryshall,withtheauthorityofthePresident,withdrawmoneyfromtheConsolidatedRevenueFundtomeetexpenditureneededtocarryonthoseservicesuntilthreemonthsaftertheNationalAssemblyfirstmeetsafterthedissolution.ThemoneywithdrawnshallbeincludedinanAppropriationActunderrespectivevotesforthedifferentheadsofexpenditure.

Budget reporting

40. (1)TheDirectorofFinance shallprepare for theAccountingOfficer,monthly,quarterlyandannualbudget reportscomparingbudgetedtoactualreceiptsanddisbursements.Thereportsshallalsoprovideexplanatorynotesonvariances. (2)TheAccountingOfficershallsubmitthemonthly,quarterlyandannualbudgetreportstoTreasuryunderhis/hersignature.Theprovisionsofsection83oftheActrequirethatannualreportssubmittedbytheAccountingOfficerincludeareportontheactivities,outputsandoutcomesoftheirrespectivelineMinistry.

Condonation of unauthorised excess expenditure

41.(1)AccountingOfficersshallnotifyTreasuryinwritingofanyunauthorisedexcessexpenditureinaccordancewiththeprovisionsofsection19(2)oftheAct. (2)FailuretoreportunauthorisedexcessexpenditureconstitutesanactoffinancialmisconductasdefinedinthePFMRegulations.


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PART VIrevenue manaGement

Receivers and collectors of revenue

42.(1)Theobjectiveofthissectionistoensurethatthereareadequatesystemsinplaceforthepropermanagementofpublicfunds.Theinstructionsinthissectionaremeanttoensurethatallmoneyreceivedisproperlyaccountedforandthatthereisseparationofresponsibilitiesbetweenthehandlingandtherecordingofcash. (2)Receiversofrevenueareappointedintermsofsection10oftheAct, toberesponsibleforthecollection,receipt,custody,issueandcontrolofpublicmoneys. (3)TheSecretaryforFinanceshallberesponsibleforrevenuefromloansraisedbyGovernmentandallrevenuesthatisnottheresponsibilityofanyotherReceiverofRevenue. (4)ItisthedutyofReceiversofRevenuetosuperviseandasfaraspossibleenforcethepunctualcollectionanddisposalofrevenueandotherpublicmoneysinaccordancewiththelaws,regulations,instructionsoragreementsrelatingtheretoandtotakesuchactionasmaybenecessarytoensurethatrevenuecollectionsaresafeguardedandproperlybroughttoaccountinaccordancewiththeseinstructions.ReceiversofRevenueshallissue,totheDepartmentsundertheircontrol,suchdetailedinstructionsinconnectionwiththeforegoingfunctionsastheydeemappropriate. (5)ReceiversofRevenuemayappointCollectorstoassistthemincarryingouttheirfunctionsandsuchCollectorsshallcomplywithalllawfulinstructionsanddirectionsasmaybeissuedtothembyReceiversofRevenue. (6)WhereReceiversofRevenuehavebeenauthorisedtoruncomputerisedsystemsthatareindependentofthePFMS,theyshallensurethatfull,properandauditablebooksofaccountsarekeptforthetransactionsforwhichtheyareresponsible.TheminimumsetofbookstobemaintainedbothinelectronicandhardcopyshallbeprescribedbytheAccountant-Generalfromtime to time. (7)ReceiversofRevenueshallinstituteandmaintain,inadditiontotheprimaryanddetailedexaminationundertakenbyaccountants,appropriateindependentsystemsofinternalcheckandcontrolinrespectofrevenuesandotherpublicmoneysforwhichtheyareresponsible.CopiesofallwritteninstructionsissuedbyReceiversofRevenueshallbetransmittedtotheAccountant-GeneralforapprovalandtheAuditor-Generalforinformation. (8)ReceiversofRevenueshall,whenevercalledupontodoso,submitestimatesand/orforecastsofrevenuecollectionstotheTreasurybysuchdateandinsuchformastheTreasurymayrequire. (9)ReceiversofRevenueshall,wheneverpracticable,ensurethatallcontractsandagreementsinvolvingthepaymentofmoneystoGovernmentwithwhichtheirMinistriesmaybeconcernedareinwritingandexpressedinappropriateterms.WhereappropriatetheGovernmentAttorneyshallbeconsultedinthedrawingupofagreementstoensurethattheirtermsadequatelysafeguardGovernmentinterests.ReceiversofRevenueshallensurethat,sofarasitispossible,themonthofDecemberwillnotbeusedinsettingthedateonwhichmoneysduetoGovernmentbecomepayable. (10)ReceiversofRevenueshallensurethatparticularcareistakenwhenconcludingcontractsandagreementsbetweentheGovernmentandminorsandshallbecertainthat— (a) minorsareassistedbytheirguardiansandthatthisisproperlyrecordedinthecontractsbytheinclusionofthewords

“assistedbytheirguardian”intheappropriateplace;and (b) incasewhereminorsmakethemselvesliableformonetaryobligations,suretiesareinsistedupon. (11)Everyofficershalltakecognisanceoftherequirementsofanylaw(includingaruleofcourt)regardingthestampingofanyinstrumentwhichmaycomebeforethemintheirofficialcapacity.Noinstrumentwhichisliabletodutyorfee,oranyfine,additionaltosuchdutyorfeeandwhichisnotdutystamped,maybeissued,received,lodged,filed,enrolledorregistereduntilitisdulystampedasrequiredbylaw.Forcomputergeneratedinstruments,officersshallmakeuseofthedigitalstampingsystemwithinthePFMS.Accesstothedigitalstampingsystemshallbelimitedtoauthorisedofficersonly.Officersmanningthesystemshallnotgiveaccesscodestounauthorisedpersonnel.Desktopsfromwhichthesystemisaccessedshallbekeptinsecuredofficesandshallbesafeguardedinthesamemannerasphysicalstamps. (12)TheseinstructionsshallapplytostatutoryfundsinsofarassuchfundsareadministeredbyReceiversofRevenueintheirofficialcapacity.

(13)Anynewrates,scalesortariffsoranychangeinexistingrates,scalesortariffswhichmayaffectrevenueshallbereferredtotheTreasuryforapprovalbeforebeingsubmittedfortheassentofthePresidentorotherrequisiteauthority.Beforeanynewrates,scalesortariffsarebroughtintooperation,theReceiversofRevenueshallbeadvisedanditistheirresponsibilitytoconveysuchadvicetotheofficerprimarilyresponsibleforthecollectionofsuchrevenue. (14)Whereverpossibleandrelevant,ReceiversofRevenueshouldrequiretheelectronictransferoffunds,cheques,andanyotherauthorisedmethodsoftransferoffundstobemadepayabletotheExchequerAccountoftheConsolidatedRevenueFund. (15)IfaReceiverofRevenueisdirectedbyaMinisterorDeputyMinistertorefrainfromcollectinganypublicmoneyswhichsuchReceiverofRevenuebelieveshe/sheshouldcollect;ortodealwithpublicmoneysinamannerwhichtheReceiverofRevenueisnotauthorised,he/sheshallproceedintermsofsection14oftheAct.Similarlyifanofficerissodirectedbyasuperiorofficer,he/sheshallproceedintermsofsection14oftheAct.

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Receipts and licences

43.(1)Thepreferredmethodofacknowledgingreceiptoffundsisthroughelectronicreceipts.AllReceiversofRevenueshallissueelectronicallygeneratedreceiptsfromthePFMSandinduplicate.Onecopyshallbegiventothecustomerandtheotheroneshallbeplacedonfile.OnlyauthorisedofficersshallacceptrevenueandissueelectronicreceiptsfromthePFMS. (2)ManualreceiptsshallonlybeissuedonoccasionswherethePFMSisnotoperationalorwhentheissuingofficedoesnothaveimmediateaccesstothePFMS.ReceiversofRevenueshallensurethatmanuallyissuedreceiptsarepostedontothePFMSassoonasthesystembecomesavailableandwithinthree(3)workingdaysofissueofsuchreceipt.ReceiversofRevenuethatdonothaveimmediateaccesstothePFMSshallensurethatmanuallyissuedreceiptsarepostedontothesystemonaweeklybasis.Thefailuretopostmanuallygeneratedreceiptswithinthesetimelimitsconstituteanactoffinancialmisconduct. (3)Ifanycomputergeneratedreceipthastobevoidedorcancelledashortexplanationofthereasonforthecancellationshallbewrittenonthebackoftheprintedreceipt,andthereceiptstoredwithdocumentsrelatingtotheday’srevenuecollections.

Manual receipt books

44.(1)ReceiptandlicenceformsformanuallygeneratedreceiptsshallbeobtainedbypurchaseordersfromtheauthorisedGovernmentprinters.TheauthorisedGovernmentprintersshallissuethesereceiptandlicenceformsinsequentialorderandshallfurnishtheAuditor-Generalwithdetailsofallsuchissues. (2)Aholderofreceiptandlicenceformsmay,with thewrittenauthorityof theirReceiverofRevenue,supplyformsinnumerical sequence toanyotherofficeordepartment,at thesame timenotifying theAuditor-Generalof the transfer.Anacknowledgementshallbeobtainedfromanyofficetowhichbooksorformshavebeentransferred.Everyofficerhavingpossessionofreceiptandlicenceformsshallmaintainaregistershowingthenameofsupplieroftheforms;thelocation,andusageofeverysuchlooseformorbookofformsfromthetimeofitsreceiptuntilitsfinaldisposalintermsoftheseinstructions. (3)TheHeadofOffice,oranofficerappointedbythem,shallberesponsibleforthesafecustodyandcontrolleddisposalofreceiptandlicenceforms.Whennotactuallyinuseallreceiptandlicenceformsshallbekeptunderlockandkey,andifpossibleinasafeorstrong-room. (4)AtleastonceineverythreemonthstheexistenceofallformsrecordedintheregistershallbeverifiedandtheHeadofOfficeshallforwardawrittenreportoftheseriallettersandnumbersofanymissingformstotheirReceiverofRevenuewhoshallthereuponadvisetheAuditor-Generaloftheloss. (5)Providedthattherearenounadjustederrorstotheperiodcoveredbythecounterfoilsorfixedcopiesofusedreceipts,theymaybedestroyedaftertheexpiryofsixyearsfromthedateoftheirexaminationbytheAuditor-General.ElectronicrecordsshallbedestroyedinaccordancewithguidelinessetbyNationalArchives.

Stamps and face value instruments

45.(1)Themaindistributorsandsub-distributorsareappointedbytheTreasuryandtheyshallprovidetheAuditor-Generalwithdetailsofallstamps,facevalueinstrumentsandothersecurityitemsissuedbythem.AccountingOfficersandReceiversofRevenueshallprovidereceiptstodistributorsforstampsandinstrumentsreceivedbythemandshallaccountfortheminsuchmannerastheirDepartmentalInstructionsmaydirect.WhereTreasuryappointsorhasappointedadistributorofstampsandfacevalueinstrumentstheAccountingOfficerorReceiverofRevenueshallcausetobemaintainedanindependentrecordofexpendedrevenueout-turnstobereconciledwithpaymentsfromsuchdistributorsatsuchintervalsastheReceiverofRevenuemightdeemnecessary. (2)Distributors,ReceiversandCollectorsofRevenueshallmaintainrecordsofstamps,instrumentsandothersecurityitemsissued,received,sold,spoiledanddestroyedandofstampsandinstrumentsonhand. (3)Stocksofstampsandfacevalueinstrumentsshallbekeptinsafesorstrong-roomsunderthecontroloftheresponsibleofficer.Suppliesheldforimmediateuseshallbetreatedascashandcontrolledaccordingly. (5)Noholderofstampsandfacevalueinstrumentsapartfromadistributorshallsupplystampsandinstrumentstoanotherofficeexceptincasesofextremeurgency.AllsuchtransfersandanyreturnstodistributorsshallberecordedintheregisterofbothsupplyingandreceivingofficesandshallbereportedbybothofficestotheAuditor-General.Thereceivingofficershallgivethesupplyingofficerareceiptwhichshallberetainedinorwiththeregisterforauditpurposes. (6)Atthecloseofeachmonth,andatregularintervals,HeadsofOfficeshallexaminethestockofstamps,facevalueinstrumentsandothersecurityitemsinthecustodyoftheircollectors.TheyshallcheckandcertifyanyreportspreparedfortransmissiontotheReceiverofRevenue. Intheeventofstamps(bothphysicalanddigital)orfacevalueinstrumentsbecomingdamagedorotherwiseunfitforuse,thefactsshallbereportedbytheresponsibleofficertotheirReceiverofRevenue. (7)ProvidedtheReceiverofRevenueissatisfiedwiththeexplanationsgiven,theymayauthorizethewrite-offoftheitemsinquestion.TheReceiverofRevenueshalladvisetheAuditor-Generalofallitemsdealtwithintermsofthisinstruction. (8)SpoiledorobsoletestampsandfacevalueinstrumentsshallbedestroyedbyoneresponsibleofficerinthepresenceofanotherresponsibleofficernominatedbytheReceiverofRevenue.Bothofficersshallsignacertificateofdestructioninduplicate,specifyingtheitemsdestroyedandthemeansofdestruction.TheoriginalshallbesenttotheReceiverofRevenueandtheduplicateshallbefiledbythecollectorforauditpurposes. (9)Whereanylossordeficiencyofstamps,facevalueinstruments,orothersecurityitemsisdiscoveredtheprocedurelaiddowninInstructionNos.0528and0529shallbefollowed.


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PART VIIreceiPt and recordinG, custody and disPosal oF Public money

Receipt and recording of public moneys

46.(1)ReceiptsintheseInstructionsareconsideredtoincludecurrency,coins,electronicfundstransfers(EFT),cheques,bankdrafts,moneyordersandanyothermethodofreceivingfundsthatisauthorisedbyTreasury.Electronicfundstransfersincludethefollowing— (a) realtimegrosssettlement(RTGS)andtelegraphictransfers(TT); (b) onlinebanktransferatpointofsale; (c) useofpaymentcardatpointofsale[swipecards(debitcardorcreditcard)];and (d) mobilebasedpaymentatpointofsale(i.e.telecash,eco-cash,onewalletetc.). (2)ThepreferredmodeforreceiptofrevenueiscashorEFT.ReceiversofRevenueshallensurethattheEFTmethodsadoptedaresecure,safeandobtainedfromreputablefinancialinstitutions.ThebrandandtypeofelectronicpaymentcardsthatareacceptableshallbedeterminedbyTreasuryfromtimetotime.Wherepracticableanofficeracceptinganelectronicbasedpayment,shallrecoveranycommissionorbankchargesinrespectofthatpayment.BankchargeswhicharenotrecoveredinthismannershallbechargedagainsttheVoteoftheMinistryorDepartmentreceivingthepayment. (3)WherefundsarecollectedthroughEFTmethod,PFMSgeneratedreceiptsshallonlybeissuedoncethetransactionhasbeensuccessfullycompleted.ThefollowinginformationshouldbeobtainedforallEFTtransactions— (a) nameofthepersontransferringfunds; (b) nationalidentitynumber; (c) physicaladdress; (d) phonenumber;and (e) signature(whereapplicable). (4)InadditiontotherequirementsinInstructionNo.0533,thefollowingcontrolsshallbeobservedonfundsreceivedthroughmobilebasedplatforms— (a) amerchantnumberandanear-fieldcommunication(NFC)enabledpointofsale(POS)machinethatislinkedtothe

Receiver’sauthorisedbankaccountmustbeused.ReceiversofRevenuearenotallowedtousemobilephonelinestocollectpublicfunds.Undernocircumstancesshallanindividual’smobileaccountbeusedtoreceivefundsonbehalfofGovernment;

(b) theNFCenabledPOSmerchantmachinesmustbeownedbytheMinistryandnotbyindividuals.ItistheresponsibilityofAccountingOfficerstoensurethatthisInstructioniscompliedwithatalltimes;

(c) inadditiontothereceiptprintedonthePOSprintout,aPFMSgeneratedreceiptshouldalsobeissuedwhenthemobiletransfertransactionshavebeensuccessfullycompleted;

(d) arrangementsshouldbemadewiththecommercialbanktosweepthefundsreceivedtotheSub-ExchequerAccountattheendofeachday;

(e) reconciliationsonthefundsreceivedthroughmobilefundstransfershouldbecarriedoutonadailybasis;and (f) theNFCenabledPOSmachinesmustbetreatedassecurityitemsandaccesstothesemachinesshouldberestricted

toauthorisedofficers. (5)WhereReceiversofRevenuehaveauthorisedtheuseofcardswipePOSmachines,thesemachinesasisprovidedinInstructionNo.0534,shallbelinkedtotheMinistry’sSub-ExchequerAccountandnottoindividualaccounts.ThePOSmachinesshallbeownedbytheMinistryandshallbetreatedassecurityitems. (6)Thereceiptofrevenuethroughonlinebanktransfers,RTGSandTTsshallbelinkedtotheMinistry’sSubExchequerAccount.Reconciliationsshallbedonedailytoconfirmreceiptoffunds.APFMSgeneratedreceiptshallonlybeissuedoncethebanktransfersarereflectedontheMinistry’sbankstatement. (7)Incaseswhererevenueisreceivedthroughdirectdeposits,ReceiversofRevenueshallensurethatthebankingcodesarealignedtotherevenueheadsinthePFMStofacilitateautomaticupdates.Therevenueheadsshallthereforebeprenumberedoneachdepositslip.ItistheresponsibilityofReceiversofRevenuetoensurethatreconciliationsarecarriedoutdailytoconfirmreceiptoffunds.APFMSgeneratedreceiptshallonlybeissuedoncethedepositedfundsarereflectedontheMinistry’sbankstatement. (8)Receiversofrevenueshallexercisediscretioninregardtotheacceptanceofcheques,providedthatwherepersonalchequesareinvolved,theyshallbebankcertified.Cheques,moneyorders,orothernegotiableinstrumentsfortheaccountofGovernmentshallbecrossed“notnegotiable”assoonastheyarereceived.Thisinstructionshallnotapplytothoseinstrumentswhicharereceivedforsubsequentencashment.WhereachequefortheaccountofGovernmentisdrawninfavourofapayeeotherthantheExchequerAccount,thepayeeshallendorsethechequebywritingatthebackofthecheque“PaytotheOrderoftheExchequerAccount”andappendingtheirsignature. (9)InstructionsNos.0540to0546relatetoremittancesandregistereditemsreceivedthroughthepostorcourierservices.WhereaReceiverofRevenuedeemstheinstructionstobeimpracticableinrespectoftheirMinistryoranydepartmentorofficetherein,theyshallintermsofthisinstructionframealternativeinstructionsforthepriorapprovaloftheAccountant-GeneralandforwardacopythereoftotheAuditor-General.

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(10)Allcash,negotiableinstruments,paymentinstructionsandregisteredmailreceivedthroughthepostorcourierservicesshallberecordedintheregisterprescribedforthepurposeandobtainedfromtheauthorisedGovernmentPrinter. (11)TheHeadofOfficeshallassigntoaresponsibleofficerthedutyofreceivingmailandrecordingintheprescribedregister,detailsofallremittancesorothernegotiableinstrumentsreceivedthroughthepost.Whereverpracticableasecondofficershallbeassignedtoassistinthisdutyandverifytheentries.ReceiversofRevenueshall,whereverpracticableensurethatofficersassignedthisdutyarenotthesameofficersresponsibleforreceiptingandbanking. (12)Inthecaseofincomingregisteredletters,thedateofreceiptandnumberoftheregisteredslipwithdetailsofalllettersrecordedoneachsliporadviceshallbeenteredintheregisterbeforetheregisteredslipissignedandreturnedtothePostOfficeormaildeliveryagent.Theregisteredlettersshallberecordedintherelevantregisterimmediatelyonreceipt. (13)Allmoneys,paymentinstructionsorothernegotiableinstrumentsreceivedandenteredintheregistershallbehandedoverwithoutdelaytotheofficerresponsibleforbringingthemtoaccountanddueacknowledgementobtainedintheregister.Themoneysshallremaintheresponsibilityoftheofficerwhosedutyitistoenterthemintheregisteruntilanacquittanceforthemhasbeenreceivedfromsomeotherofficer. (14)Wheretheresponsibleofficerisnotimmediatelyavailabletoreceiveremittancesdeliveredbyhand,theyshallberecordedintheregisteranddisposedofinthesamemannerasremittancesreceivedthroughthepost.Ifthesenderhasenteredtheitemina“letterdeliverybook”thereceivingofficershallverifythecontentsoftheenvelopeorpacketwiththeentryinthebookandshallsignthelatterinacknowledgementofreceipt. (15)AtleastonceaweektheHeadofOfficeoraresponsibleofficerdelegatedbythem,shallexaminetheremittanceregistertoensurethatallentriesarecompleteandcorrectandthattheremittanceshavebeendulybroughttoaccount.HeadsofOfficeshall,atthecompletionoftheirexamination,sign,dateandstamptheregisteraccordingly. (16)Noreceiptorlicenceformshallbeissuedinthecaseofmoneysreceivedinrespectof— (a) stamps(physicalordigital)ortokensimpressedbymeansofadiedenotinganyfeeordutyorrateofduty;or (b) cashsaleinvoices,inrespectofwhichTreasuryhasagreedthatreceiptsneednotbeissued. (17)SubjecttotheprovisionsofInstructionNo.0546officersshall,immediatelyuponreceivingmoneyintheirofficialcapacity,issueanelectronicreceiptorlicenceprescribedforthepurpose,asappropriate.Noreceiptshallbeissuedforachequeuntiltheduedateofsuchcheque.ThesameappliestopaymentinstructionsrelatingtoRTGS.IftheduedatefallsonaSundayoranon-businessdaythepaymentshallbereceiptedandbroughttoaccountinthemonthrelativetothedateofthechequeorpaymentinstructionsthoughthechequemaybedepositedintheensuingmonth. (18)Whetherrevenuehasbeencollecteddirectlyfromindividuals,throughthemailorbyEFT,thereceiptissuedshouldincludeasaminimum— (a) payer’sname; (b) amountofpayment.Theamountshallbestatedinfiguresandinwords.Thecurrencytenderedshouldalsobestated; (c) modeofpayment(cash,banktransfer,debitcard,moneyorder,etc.); (d) thedateinbankandserviceprovidertransactionnumber(forelectronicbanktransfers); (e) chequeormoneyordernumber(ifapplicable); (f) purposeofpayment; (g) dateofpayment; (h) nameofofficercollectingthemoney. (19)Wherepaymentismadebychequeandthereceiptismadeouttoanameotherthanthatofthedrawerofthecheque,thenthereceiptmustincludethenameofthedrawer.Wherepaymentismadebyadirectdeposittoanofficialbankingaccounttheactualdateofthedepositshallbenotedonthereceipt. (20)Allreceiptandlicenceformsthatarewrittenmanuallyshallbeissuedinsequentialorder.Blueorblackinkorindeliblepencilshallbeused.Theamountandfiguresonareceiptshallnotbealtered.Ifamistakeismadethereceiptorlicenceformshallbecancelledandafreshoneissuedinlieuthereof. (21)Ifmorethanonepersoninadepartmentareissuingmanualreceipts,eachpersonshallbeassignedtheirownreceiptbookandshallberesponsibleforthemaintenanceanddepositofrevenuerecordedinthatbook.Inaddition,aseparateReceiptBookorseriesoflicenceformsshallbeusedforeachCashBook.Allreceipts,includingvoidedandcancelledreceipts,mustbeaccountedfor.ThereceiptsshouldbeenteredinsequentialorderintherelativeCashBook. (22)Theoriginalandallcopiesofvoided,cancelledorspoiledformsshallberetainedforsubsequentexaminationbytheAuditor-GeneralexceptasisprovidedforinInstructionNo.0558. (23)Whenachequeforwhichareceipthasbeenissuedhasbeenreturnedtothedrawerforanyreason,nofurtherreceiptshallbeissuedonre-presentationtothebank.Thesameappliestoamerchantcardtransactionrejectedbythebankandtheanomalyisrectified. (24)Cash,chequesorotherinstrumentstenderedorexpressedinaforeigncurrencyshallbereceiptedusingtheexchangeconversionratesprovidedbythePFMSsystemonadailybasis.WhereaReceiverofRevenuedeemstheinstructionstobeimpracticableinrespectoftheirMinistryoranydepartmentorofficetherein,theyshallintermsofthisinstructionframealternativeinstructionsforthepriorapprovaloftheAccountant-GeneralandforwardacopythereoftotheAuditor-General. (25)Manualreceiptsissuedmay,ifadministrativeconvenienceisbetterservedthereby,beseparatelyscheduledandthetotalofthereceiptspostedtotheCashBookdailyoratsuchotherintervalsastheReceiverofRevenueorAccountingOfficermayprescribe;providedthatonthelastdayofthemonthallreceiptsnotpostedforthatmonthshallbebroughttoaccount.


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(26)Thedateonwhichmoneysarereceivedgovernsthedateoftherecordingofthetransaction.Allreceiptsdateduptoandincludingthelastdayofthemonthorfinancialyearshallbebroughttoaccountinthatmonthorfinancialyearnotwithstandingthefactthattherelativemoneysarestillonhandorintransit.However,thiswillnotapplyinthecaseofFunds(seeInstructionNos.1200-1299)operatingonanaccrualbasiswheretheAccountingOfficerwillhaveissuedspecificinstructions,withTreasuryapproval,tothecontrary. (27)Moneysreceivedbydirectdepositintoanofficialbankingaccountshallbeintroducedbyjournalintothebooksofaccountifitisnotpossibletoissuetherelativereceiptsorlicencesbeforetheendofthefinancialyeartowhichtheyrelate.Suchactionshallnotobviatethenecessitytoissuereceiptsorlicencesinrespectofsuchmoneysinthenewfinancialyear. (28)WheretheReceiverofRevenuedirects,thecarboncopyofeveryreceiptorlicenceformissuedbyabranchofficetogetherwiththebankstampeddepositslips,shallaccompanythecashschedulessubmittedtoHeadOffice.Theoriginalandduplicatecopiesofvoided,cancelledorspoiledformsshall, if theReceiverofRevenuesodirects,be includedtoprovethenumericalsequenceoftheissues.

Custody of public moneys

47. (1)Exceptwhenrequiredfor immediateuse,orwhenbeing temporarilystored in thecourseofcollectionunder theimmediatecontroloftheofficershandlingit,moneyshallnotbeleftincash-boxesordrawerseveniflocked.Loosecashandcash-boxesshallbelodgedinasafeorstrong-roomateverypossibleopportunity.Wherenosafeisavailableintheofficeofofficersholdingpublicmoneys,theyshall,wherepracticable,lodgethemoneyorcash-boxinthesafeofsomeotherofficerwhoshouldfurnishareceiptforsuchmoneyorcash-box. (2)Money shall not be left in the care of, nor shall it be transferred to, another person unless they have given anacknowledgementinwritingthereoftotheresponsibleofficer. (3)TheHeadsofOfficeorofficersdelegatedbythemshall,atirregularintervalsandinanycasenotlessfrequentlythanonceamonthandatthemonthend,comparetheentriesintheCashBookswiththeduplicatecopiesofreceipts,counterfoilsoflicences,stocksorstampsandfacevalueinstruments,bankdepositslipsandchequecounterfoilsandanyotherrelevantdocuments.Theyshallsatisfythemselvesthattheinstructionsinthissectionhavebeencarriedoutandshallcertifytheirexaminationbysigninganddatingtherelevantrecords. (4)Anysurplusofcashdiscoveredshallbebroughttoaccountasrevenue—“Unclaimedandconfiscatedmoneyorproperty”andareceiptshallbeissuedaccordingly. (5)Whereanydeficiencyofcashorfacevalueinstrumentsisdiscoveredanditisnotsuspectedtobeduetotheftorfraudthefollowingprocedureshallbecarriedout— (a) wherethedeficiencydoesnotexceedthethresholdsetbyTreasury,theHeadofOfficeshallinvitetheofficerwhom

heorshedeemstoberesponsibleforthedeficiencytomakegoodtheamountinvolved.AtthesametimetheHeadofOfficeshalladvisetheofficerthatheorsheisnotcompelledtomakegoodthedeficiencyandmaychoosetohavethematterreportedtoTreasury.IftheofficerelectstomakegoodtheamountofsuchdeficiencythemattershallthenbereferredtotheTreasurygivingalltherelevantdetailswitharecommendationbytheReceiverofRevenue,supportedbyreasons,astotheamountifany,whichheorsheconsidersshouldbereimbursedtotheofficerconcerned.NocaseshallbesubmittedtotheTreasuryuntilthefullamountofthedeficiencyhasbeenmadegood.AnyreimbursementauthorisedbytheTreasuryshallbepaidfromtheVoteoftheofficer’sdepartmentunlessotherwisedirectedbytheTreasury;and

(b) wherethedeficiencyexceedsthethresholdforAccountingOfficerthataresetbyTreasury,themattershallbereportedbytheReceiverofRevenuetotheAccountant-General.

(6)Whereanylossordeficiencyofcash,stampsornegotiableinstrumentsisdiscoveredandafterpreliminaryinvestigationitissuspectedthatsuchlossordeficiencyisattributabletocriminalactionitshallimmediatelybereportedtothepoliceforinvestigationandtotheReceiverofRevenuewhoshallreportthemattertotheTreasury. Disposal of public moneys

48.(1)TheCommissioner-GeneraloftheZimbabweRevenueAuthorityandthoseReceiversofRevenuewhohavebeenauthorisedtooperatecontingencyaccountsinrespectoftheirrevenuemayretainintheirdepositorcontingencyaccountssuchsumsasarerequiredformakingrefundsofrevenueandforclearingcollectionstootherreceivers.ThebalanceshallbepaidintotheExchequerAccountatsuchintervalsastheTreasurymaydirect. (2)Refundsofoverpaymentsofrevenueormoneysbroughttoaccountinerrorwill,exceptintheinstancementionedinInstructionNo.0565,bemadebytheTreasuryfromastatutoryappropriation.ReceiversmustsubmitproperlycertifiedvoucherstotheTreasuryinthisrespect. (3)Exceptwhenauthorised inanywritten instructionsgivenbyReceiversofRevenue,all revenuesandotherpublicmoneysreceivedbycollectorsshallbedepositeddailyinthelocalbankforthecreditoftheExchequerAccountorotherseparateaccountsapplicableandmoneysnotsodisposedofshallbedepositedonthenextbankingday. (4)Allmoneyreceivedmustbebankedintactandinthecurrencyinwhichtheywerereceived.Nopersonalchequesoranyothermoneysincludingcashbackshallbemadefromthemoneythathasbeenreceipted.Noreceiptingofficershallunderanycircumstancesreceiptanymoney,otherthaninthecurrencyinwhichtheyreceivedthepaymentfromathirdparty. (5)Whenpreparingchequesfordepositing,theresponsibleofficershallensurethatthenameoftheaccounttobecreditedisindicatedonthereversesideofeachcheque.Theofficershallalsoindicateforeachchequeseparatelyonthedepositslipthefollowinginformation—

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(a) chequenumber; (b) drawer’sname; (c) draweebank; (d) theamountofchequeandensuretheslipcontainsdetailsof— (i) account number; (ii) depositnumber;and (iii) depositor’sbankingstationnumber. (6)Whereverpracticable,asecondofficershallbeassignedtocross-checkthecastingandotherdetailsonthedepositslip. (7)Whenadishonouredchequeisreturnedbythebankimmediatestepsshallbetakentocontactthedrawerandobtainpayment.Wherethechequeistobere-presenteditshallbeenteredonaseparatedepositslip,acrosswhichshallbemarkedboldly“Re-deposit”tofacilitateidentificationofsuchdeposits.Forrejectedpaymentcardtransactions,stepsshouldbetakentocommunicatewiththeownerofthedishonouredmerchantcardwithaviewtocorrecttheirregularityortoobtainpayment. (8)AllmonetarygiftstoGovernmentfromanysourcewhichfallunderthecategoryofsection6(2)(e)oftheActshallbenotifiedbytheReceiverofRevenuetotheTreasuryimmediatelyonreceiptofthegiftortheofferofthegift.TheTreasuryshalldirectwhetherthegiftshallbeacceptedornotandhowitshallbedisposedofandwilladvisetheAuditor-General.Giftsofanon-monetarynatureshallbedealtwithinaccordancewithInstructionNo.1104. (9)Exceptinregardtooverpaymentsorerroneouspaymentswhicharesubjecttodisallowances,inallothercases,receiptsorrecoveriesagainstVotedexpenditureshallbecreditedtorevenue. (10)WhereanyamountwhichisauthorisedtobeappropriatedinaidofaVoteisrelatedtoaspecificitemofexpenditurewithinthatVote,anyreceiptsinexcessoftheactualexpenditureonthatitemasattheendoftherelevantfinancialyearshallbepaidintorevenuenotwithstandingthatthereareshortfallsinreceiptsrelatedtootherexpenditureitemsorontheappropriation-in-aidasawhole. (11)NoofficershallincludeanyprivatemoneysinanofficialbankingaccountnoranypublicmoneysinaprivateaccountandnoofficershallpermitanymoneysotherthanpublicmoneystobekeptinaGovernmentcash-box,safeorstrong-room.

Recovery

49.(1)Asageneralrule,ReceiversofRevenueareresponsibleonlyforthecollectionoftheirownrevenuesanddebtsbuttheymayassistotherMinistriesordepartmentsbyaccepting,onanagencybasis,moneyswhichmaybetenderedinrespectofdebtsduetothoseotherMinistriesordepartments. (2)OfficersresponsibleforcollectingdebtsshalltakeadequatestepstocollectanysumsduetotheGovernmentonduedateandshallonnoaccountallowadebttobecomeextinguishedthroughlapseoftime.Theruleof“set-off”shouldbeappliedwhereappropriate.Anydebthavingaclearlydeterminedmoneyvalue,ofthesamenature,payableunconditionally,andlegallydueandpayablebyanyperson,maybesetoffagainstordeductedfromanymoneysowingbytheGovernmenttosuchperson. (3)AllofficersresponsibleforthecollectionofmoneysduetotheGovernmentshalltakenoteofGovernmentcontractswithdebtorsand,iftheyareexperiencingdifficultyincollectingsumsdue,shallrequesttheappropriateAccountingOfficer,subjecttoInstructionNo.0579,toarrangeforthedeductionsofsuchamountfromanypaymenttobemadetothedebtor. (4)WhenadebtowedtoGovernmentiscollectedbyset-off,thedepartmentconcernedshallinallcasesensurethatthefullamountpayablebyGovernmentisproperlychargedtotheVoteandthattheamountwithheldiscreditedtothedebtor’soutstandingaccount.Fulldetailsoftheactiontakenshallbeprovided,fortheinformationofthedebtor,bytheDepartmenteffectingtheset-off. (5)Amountsowingbyofficersmaybeset-offagainsttheirsalariesorwages.Ifthesetting-offofthewholeamountinonelumpsumwillresultinfinancialembarrassmenttotheofficerstheAccountingOfficershall,afterconsultationwiththeDepartmentrequiringthemtoapplytheset-off,deductthetotalamountbysuchinstalmentsasareapprovedbytheTreasuryintermsoftheAct. (6)Exceptinthecaseofdebtsduefromtheestateofadeceasedofficer,whenInstructionNo.0586shallapply,anamountowingbyapersonwhohasceasedtobeaGovernmentofficermaybeset-offagainstanysalary,pensionorotherbenefitpayabletothem.ThePensionsOfficermay,withagreementofthedepartmentrequiringthemtodoso,deducttheamountduebysuchinstalmentsasarefixedbytheTreasuryintermsoftheAct. (7)AnymoneysrecoveredfromapersonwhohasceasedtobeaGovernmentofficershallbeappliedinthefirstinstancetotheliquidationofdebtsduetoGovernment.WherethemoneysrecoveredareinsufficienttocoveralldebtsduetoGovernment,theyshallbeappropriatedasdirectedbytheTreasury. (8)Whenanofficergivesnoticeof resignationor is tobedischarged from theservice, it is the responsibilityof theAccountingOfficerstoascertainwhethertheofficerisindebtedtoanyGovernmentMinistryorDepartment.TheformprescribedforthispurposeshallbeforwardedtotheappropriateaddresseesandanyotherMinistryordepartmenttowhichtheofficermaybeindebted.DebtswhichhavebeenadvisedtoolateforcollectionbytheEstablishmentOfficershallbedeductedbytheAccountingOfficerfromthefinalpayandforwardedtothecreditorMinistries. (9)WhereadequatestepshavebeentakenbyReceiversofRevenueorAccountingOfficerstorecoveradebtduetotheGovernmentandsucheffortshaveprovedfruitlesstheymayrequesttheGovernmentAttorneytotakelegalactionfortherecoveryofthedebt.TheGovernmentAttorneyshallthereafterbesolelyresponsibleforthecollectionofthedebt.


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(10)OnceadebthasbeenhandedovertotheGovernmentAttorneyforcollectionnonegotiationsshalltakeplacebetweentheMinistryordepartmentandthedebtorandanymoneyspaidbythedebtorshallbeacceptedonlybytheGovernmentAttorney.Thedepartmentshall,however,remainresponsibleformaintainingrecordsofdebtshandedover. (11)Where in the opinion of theGovernmentAttorney the information provided is insufficient for them to proceedsatisfactorilywiththecasetheymayrefusetoacceptit.Inaddition,wherethecostsofanactionarelikelytobedisproportionatelyhighwhencomparedwiththeamountofthedebt,theGovernmentAttorneymaydeclinetotakelegalactionforrecoveryandshallinformtheMinistryordepartmentofthereasonsfortheirdecision. (12)TheReceiverofRevenueorAccountingOfficershallensurethatclaimsaresubmittedagainstinsolvent,deceasedorassignedestatesandshalldeputeanofficertoprovesuchclaimsbyattendingallnecessarymeetingsofcreditors.ClaimsshouldnotbesubmittedwhereitappearsthatsuchacoursewillresultintheGovernmentbeingcalledupontocontributetotheestate.Inanycaseofdoubtregardingthelegalaspectofaclaim,theadviceoftheGovernmentAttorneyshallbesought.

PART VIII recovery or Write-oFF oF Public moneys Abandonment of claims and write-off of public resources

50.(1)NoclaimshallbewaivedorsetasideandnocompromiseacceptedwithoutthepriorapprovaloftheTreasury. (2)NodebtowingtotheGovernmentmaybewrittenoffwithoutpriorgeneralorspecificauthorityoftheTreasury.

Treasury surcharges

51.(1)TheprocedurefortheraisingandrecoveryofTreasurysurchargesissetoutintheAct.ItisthedutyofAccountingOfficersandReceiversofRevenuetobringtothenoticeoftheTreasury,subjecttotheprovisionsofInstructionNos.0563,0564and1049,anydeficienciesorirregularitiesdisclosedbytheiraccountsorrecordsandanylossofordamagetoGovernmentproperty. (2)WhenasurchargehasbeenraisedbyTreasury,itisthedutyoftheAccountingOfficerorReceiverofRevenuetonotifythepersonorpersonssurcharged,inwriting,oftheamountofandthereason/sforthesurcharge.Theperson(s)surchargedshallacknowledgereceiptofthenotificationbysigningthelettersservedbytheAccountingOfficer. (3)SurchargesshallberecordedinaregisterspecificallyopenedforthispurposeandAccountingOfficersandReceiversofRevenueareresponsiblefortherecoveryofTreasurysurchargesortheadjustmentoftherecordsinaccordancewithdecisionswhichmaybemadebyTreasury.AnyappealagainstaTreasurysurchargebythepersonsurchargedshallbeactionedintermsofsection12oftheAct,inthesamemannerasTreasuryorders,withoutdelay. (4)AccountingOfficersshallsubmitstatementsofoutstandingsurchargeswithinonemonthofthe30thJuneand31stDecemberineachyeartotheAuditor-GeneralandtheAccountant-General.Thestatementsshallshowinrespectofeachsurcharge— (a) thedateonwhichitwasraised; (b) the reason for the surcharge; (c) the amount of the surcharge; (d) detailsofanyrecoveriesoradjustments; (e) thebalanceoutstanding;and (f) thearrangementsmadeforrecovery. (5)Recoveriesinrespectofsurchargesshallbecreditedtorevenueinaccordancewiththereasonforthesurcharge,ortotheseparateaccountinrespectofwhichthesurchargewasraised.Nosurchargemaybewrittenoffwithoutthepriorauthorityofthe Treasury. Temporary deposits

52.(1)Whenmoneysarereceivedtheyshallonlybeplacedtothecreditofatemporarydepositaccountifthey— (a) cannotbeimmediatelycreditedtorevenueorafund;or (b) aretobeheldtemporarilypendingpaymenttosomepersonororganisation. (2)AtemporarydepositaccountmaybemaintainedatanyofficeandmayhaveaseparatebankaccountsubjecttotheapprovaloftheAccountingOfficerorReceiverofRevenueandincompliancewithInstructionNo.0698. (3)FinancialrecordsinrespectoftemporarydepositaccountsshallbemaintainedinaccordancewithinstructionsissuedbytheAccountingOfficerorReceiverofRevenue.ItisthedutyoftheAccountingOfficerorReceiverofRevenuetoensurethattemporarydepositsareclearedbypaymentoradjustmentwithoutdelay. (4)Atleastonceineachfinancialyearalltemporarydepositsmustbereviewedandanymoneywhichhavebeenonhandandunclaimedforaperiodinexcessofsixmonthsshall,unlesstheAccountingOfficer,ReceiverofRevenueorotherresponsibleofficerappointedforthepurposedecidesotherwise,bepaidintorevenue—“Unclaimedandconfiscatedmoneyorproperty.” (5)AccountingOfficersshallsubmit,inrespectoftemporarydepositsandwithinonemonthofthe30thJuneand31stDecemberineachyear,astatementofbalancesheldtotheAccountant-GeneralandtheAuditor-General.Thestatementsshall— (a) thepersonoraccountduetoreceivetheultimatebenefitofthedeposit; (b) thenatureofthedeposit; (c) thedateonwhichthedepositwasreceived;

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(d) theamountheld;and (e) thearrangementsmadeforitsdisposal. (6)Theoutstandingbalanceoftemporarydepositsheldshallbebroughtforwardtothenewfinancialrecordsimmediatelyaftertheaccountsforeachfinancialyearhavebeenclosed.InthecaseoftemporarydepositswhichareheldatdistrictofficestheaccountsshallbeadministeredasdirectedbytheAccountingOfficerorReceiverofRevenue.

PART IX exPenditure manaGement

Expenditure control and classification

53.(1)Instructionsinthissectionaremeanttoensurethatallpaymentsmadeareappropriatelyauthorised,alltransactionsareaccurateandcompleteandthereisadequatesupportingdocumentation. (2)AftertheAppropriationActhasbeenpromulgatedtheTreasurythroughthePaymasterGeneral’sWarrantshallissueageneralauthoritytoAccountingOfficerstoincurexpenditureontheservicesundertheiradministrationtotheextenttowhichprovisionhasbeenmadeintheestimatesofexpenditureandsubjecttoanylimitationsimposedthereinorbydirectionoftheTreasury. (3)WhereprovisionismadeinanAppropriationActandinanauthorityissuedintermsofInstructionNo.0601,suchprovisionshalllapseandceasetohaveeffectatthecloseofthefinancialyeartowhichthatAppropriationActrelatesandtheunexpendedbalanceofanymoneywithdrawnfromtheConsolidatedRevenueFundshallberepaidtotheExchequerAccount.Authorityforcontinuingservicesorpaymentsdueunderthelaw,regulation,contractoracceptedtendershallberegardedasrenewedbythegeneralauthorityissuedbytheTreasuryintermsofInstructionNo.0601. (4)Thedatefromwhichexpendituremaybecommencedorincurred,ifnotindicatedspecificallyorbythenatureoftheauthority,shallbethedateofthedocumentconveyingtheauthority. (5)Treasurymaydirectthatcertainexpenditure,althoughprovidedforintheestimates,shallnotbeincurredwithouttheTreasury’sspecificorgeneralapproval.Whereverpossiblesuchdirectionshallberecordedintheestimates. (6)TheTreasuryshallbeapproachedforpriorauthorityforanyexpenditurecontemplatedwhichdoesnotfallwithintheprovisionofInstructionsNos.0606to0609. (7)AMinister,anAccountingOfficeroranyofficerspecificallyauthorised todosomayenter intocommitmentsforexpenditureorenterintocontractsorarrangementsinvolvingexpenditurefromaVoteprovidedthatsuchexpenditure— (a) isinrespectofaserviceincludedintheestimates; (b) isnotinexcessofthesumprovidedundertheappropriatesub-head; (c) isinaccordancewithanylegislation,regulations,scale,tarifforcontractthatmaybeapplicable;and (d) incaseofaidfundedprojects,allconditionsprecedenttothedisbursementhavebeenmet.

(8)NopaymentshallbemadefromVotedmoneysexceptfor— (a) servicesrendered;or (b) valuereceived;or (c) amountsduetobepayableintermsof— (i) theConstitution;or (ii) an enactment; or (iii) paymentsthathavebeenauthorisedbytheTreasury. (9)ExceptasisprovidedinInstructionNo.0609,nopaymentshallbemadebeforeitisproperlydue.Inaddition,noexpenditureonsuppliesorservicesshallbeincurredinadvanceofthetimewhensuchsuppliesorserviceswouldnormallybeobtainedwhetherforthepurposeofutilisinganexpectedsavingonaVoteorforanyotherreason. (10)Whereinpursuanceofawrittencontract,itbecomesnecessarytomakeapaymentpriortothesupplyofthegoodsortherenderingoftheservice,suchexpenditureshallbechargedtotheappropriatesub-headoftheVoteatthetimethepaymentismade.ParticularcareshallbetakeninallcasestoensurethatthepaymentisnotduplicatedandthatthegoodsorservicestowhichtheadvancepaymentrelatesaredealtwithinaccordancewithInstructionNo.0658. (11)SpecificTreasuryauthorityisrequiredforanytransactionofsale,hireorpurchasebetweenadepartmentandanofficer.CopiesofallfinancialauthoritiesshallbetransmittedtotheAuditor-General. (12)IfanAccountingOfficerisdirectedbyaMinisterorDeputyMinistertoorderorcommitapaymentwhichsuchAccountingOfficerbelieves theyarenotauthorised tomake in termsofany law, theyshallproceed inaccordancewith theprovisionsofsection14oftheAct.Similarly,ifanofficerissodirectedbyasuperiorofficer,theyshallproceedintermsofsection 14 of the Act. (13)Verbalortelegraphic/electronicauthorityformakinganypaymentshallbegivenincasesofgenuineurgencyonlyandshallberegardedasprovisionalonlypendingresponsetoaformalapplicationthroughtheproperchannelforthenecessarywrittenauthority. (14)AccountingOfficersshallensurethatadequatearrangementsaremadewithintheirMinistriestosecurethepresentation,withinareasonabletime,ofallclaimspayablethroughtheirofficesinordertopreventarrearclaimsbeingmadelongafterthe


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serviceshavebeenrenderedandtoensurethatanydiscountforpromptpaymentisobtained.Asfarasispossibleexpenditureshouldbespreadevenlythroughouttheyearandpeakperiodsattheyear-endshouldbeavoided. (15)WheneveritappearstoanAccountingOfficerthatexpenditurehasbeencommittedwhichisinexcessofthesumsappropriatedbyParliamentorwhichisnotcoveredbycompetentauthorityhe/sheshallimmediatelyreportthefacttotheTreasuryandtheAuditor-Generalgivingfullinformationastothecircumstancesinwhichsuchexpenditurewasincurred. (16)AccountingOfficersshallensurethatallcontractswithwhichtheirMinistriesmaybeassociated,orthatarelikelytoinvolvetheexpenditureorcommitmentofsubstantialsumsofmoney,shallbeinwritingandexpressedinappropriateterms.TheGovernmentAttorneyshallbeconsultedinthedrawingupofcontractstoensurethattheirtermssafeguardGovernmentinterests. (17)Anypaymentwhichiswithheldtoensuredueperformanceofacontractmaybechargedtotherelevantappropriationaccount in thefinancialyear inwhich themoney isprovidedand, in this case, shallbecredited toTemporaryDeposits forsubsequentpaymentuponexpiryoftheretentionperiodlaiddowninthecontractor,wherenosuchperiodisprovidedfor,theretentionperiodlaiddownbytheTreasury. (18)Moneysprovidedinestimatesinrespectofstatutorybodies,statutoryfundsandotherfundsshallbedrawndownasdirectedbytheTreasury. (19)Moneyvotedinrespectofgrants,whichisinexcessofthethresholdsAccountingOfficersarepermittedtoauthorise,shallbedrawndownasdirectedbyTreasury. (20)NocontractsofinsurancewhichwouldconferabenefituponanofficerorotherpersonshallbeenteredintowithoutthespecificapprovaloftheTreasury.

Classification of expenditure

54. (1)AllexpenditureonVotedservicesshallbeclassifiedunder theappropriatesub-headsand itemsasshownin theestimates,andasdirectedbytheTreasury.IfanyquestionarisesastotheproperclassificationofachargeitshallbereferredtotheTreasurywhosedecisionshallbefinal.Where,fordepartmentalpurposes,itisnecessarytoaccountforexpenditureinmoredetailthanisprescribedintheestimates,theAccountingOfficershallmaintainsuchsubsidiaryaccountsasmaybeappropriate. (2)Thesub-head“Employmentcosts”shallbedebitedwithsuchexpenditureinrespectofallofficers/staffincludedthereinaccordingtotheestimates,andsuchadditionalestablishmentasmaybeauthorisedbytheTreasury. (3)WithoutthesanctionoftheTreasurynochargeinrespectofpersonalremunerationshallbemadetoanysub-headotherthan“Employmentcosts”exceptwherethetermsoftheestimatesclearlyshowthatthewholeorsomeportionofanyothersub-headistobedevotedtomeetingsuchcharges.Theremunerationofunestablishedofficers/staffmembersemployedforaspecificworkorworksshall,however,bechargedtothesub-headwhereprovisionismadeforsuchworkorworks. (4)ExceptwhereotherwiseauthorisedbytheTreasuryorbytheseInstructionsalltransportexpenses(includingthecostoftransportofpersonaleffects)andsubsistenceexpensesofofficers/staffwhoseremunerationformsachargeagainstthesub-headfor“Employmentcosts”shallbechargedagainstthesub-headfor“GoodsandServices“inthesameVoteirrespectiveofthedutyonwhichtheytravel. (5)Thesubsistenceandtransportexpensesofofficersoremployees,whoseremunerationischargedtoothersub-headsinaccordancewithInstructionNo.0624shall,unlessspecialprovisionismadetothecontrary,bedefrayedfromthesub-headtowhichtheirremunerationischarged. (6)ThesubsistenceandtransportexpensesofanofficertemporarilytransferredtoanotherdepartmentshallbechargedtotheVoteoftheborrowingdepartment.ThecostofprovidingasubstituteforanyofficertemporarilysecondedtoanotherdepartmentshallbechargedtotheVoteofthelendingdepartment. (7)Shouldanyofficerbeappointedasacommissioner,theirsalaryshallcontinuetobepaidfromtheVotetowhichitisnormallycharged,butanyadditionalfeesandexpensesauthorisedbytheTreasurytobepaidtoorincurredbytheminconnectionwiththebusinessofthecommissionshallbemetfromtheVoteofthecommission.Thecostofanyauthorisedtemporaryassistancerequiredbyanofficer’s/employee’sdepartmentbyreasonoftheirabsenceondutyforacommissionshallbechargedtotheVoteoftheofficer’sdepartment. (8)Thesubsistenceandtransportexpensesofanofficer/employeetravellingondutyforanystatutorybodyorcommissionofinquiryshallbechargedagainstthefundsofsuchbodyorbepaidfromtheVotedprovisionmadeforthecommissionofinquiry,unlessprovisiontothecontraryismadeintheActortheProclamationestablishingthestatutorybodyorcommissionofinquiry. (9)Allexpensesincurredinconnectionwiththefirstappointmentofanofficershall,unlessthereisaspecificitemforthepurpose,bechargedtothe“Goodsandservices”subhead. (10)Servicesrenderedbyonedepartmenttoanotherareusuallyfree.When,therefore,provisionismadeontheVoteofonedepartmentforsuppliesandservicestootherdepartmentsnopaymentshallbemadebythereceivingdepartmentorispayablefromaspecialprovisionmadeforthepurposeintheestimatesofthereceivingdepartment. (11)Whereadepartmentprovidesaserviceasagentinconnectionwithanitem,thebasiccostofwhichisprovidedforontheVoteofanotherdepartment,anyexpenses,otherthanadministrativeexpenses,towhichtheagentdepartmentisput,shallbepaidforbythedepartmentreceivingtheservice. (12)Whenassetsaretradedinfornewgoods,thetotalcostofthenewgoodsshallbechargedtotherelevantVoteandtherecoveryinrespectofthetrade-inshallbecreditedtorevenueas“SaleofGovernmentProperty”.

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EXPENDITUREONEMPLOYMENTCOSTSEstablishments, appointments and records

55.(1)TheestablishmentofaMinistryislimitedandarrangedbytheestimatesofexpenditureandmaynotbeexceededorvariedwithoutthespecificorgeneralapprovalofthePublicServiceCommissionwithTreasuryconcurrence. (2)Noofficershallbeappointedunlessanappropriatevacancyexistsontheauthorisedestablishmentandnounestablishedofficershallbeappointedforspecificworkunlessadequateprovisionhasbeenmadeforthepurpose. (3)NoofficershallbepaidfromVotedfundsuntiltheirappointmentandscaleofpayhavebeendulyauthorised.Noofficershallreceiveanincrement,anallowanceoranincreaseinsalarypayablefromVotedfundsuntilsuchincrement,allowanceorincreasehasbeendulyauthorised. (4)All authorities for appointments, changes of emoluments, leave of absence and other matters affecting officers’remunerationshallbeforwardedtothePrincipalEstablishmentOfficeroftheMinistryconcernedbytheofficerresponsibleforgrantingsuchauthorities.CopiesofallauthoritiesaffectingtheappointmentandremunerationofofficersshallbeforwardedtotheAuditor-General. (5)HumanResourcesOfficersshallensurethatapersonalfileismaintainedforeveryofficerandtheEstablishmentOfficershallensurethatastaffhistorycardismaintainedforeveryofficer.TheHumanResourcesOfficersshallensurethateveryofficerfurnishesforrecordpurposes— (a) satisfactoryproofofdateofbirth; (b) such proof of qualifications and previous experience asmay be required in connectionwith the assessment of

commencingsalaryorsubsequentalterationstosalary; (c) ifapplicable,amarriagecertificateoracertificateofdivorce; (d) ifapplicable,thefullnamesofanychildrenandproofoftheirdatesofbirth;anddetailsofnextofkin. (6) Thedateofbirthofanofficershallbeprovedbytheproductionofanofficialbirthcertificate,andNationalRegistrationCertificate. (7)OntheterminationoftheserviceofanyofficerwhetherbyretirementorotherwisetheirpersonalfileshallberetainedbythehumanresourcesofficeandhistorycardbytheestablishmentofficerfortenyearsandbothshallthenbeforwardedtotheGovernmentArchives. Salaries and wages calculations

56.(1)ThescalesofsalariesandwagesofofficerswillbefoundintheappropriatesubsidiarylegislationorinadministrativeinstructionsissuedwiththeapprovalofthePublicServiceCommissionandtheTreasury.ThesescalesshallnotbevariedorexceededwithouttheapprovalofthePublicServiceCommissionandtheTreasury. (2)Theremunerationofanofficeronfirstappointmentshallcommencefromdateofappointmentprovidedthat theyassumedutyonthatdateoronthefirstworkingdayfollowingtheassumptionofduty.Theproportionofasalarypayableforpartofamonthshallbecalculatedbydividingone-twelfthoftheannualsalarybythenumberofdaysinthemonthinquestionandmultiplyingtheresultbythenumberofdaysforwhichpayisdue. (3)Whenanofficeristemporarilysecondedbyonedepartmenttoanothertheyshallbepaidforthenumberofhoursordaysactuallyworked.ThesecondedOfficershallbepaidasfollows— (a) iftheperioddoesnotexceedthreemonths,fromtheVoteofthelendingdepartment;and (b) iftheperiodexceedsthreemonths,fromtheVoteoftheborrowingdepartment. AnyextraremunerationauthorisedforspecialservicesshallbepaidfromtheVoteoftheborrowingdepartment. (4)Personsemployedat thedailyequivalentofmonthlyorannualratesofpayshallbepaidfor thewholeperiodofengagement,includingSundaysandpublicholidaysfallingwithinthatperiod.Personsemployedonanhourlyorworking-daybasisshallbepaidforthenumberofhoursordaysactuallyworked. (5)Whentheservicesofanofficerareplacedtemporarilyatthedisposalofacommissionorcommittee,anyfee,bonusorhonorariumwhichmaybepayableinrespectofhis/herworkshallbepaidintotheExchequerAccountoftheConsolidatedRevenueFundasamiscellaneousreceipt. (6)Anofficerappointedasamemberofacommissionorcommitteeshallbeentitledtoboardfeesandsittingallowancesinadditiontotheirusualremunerationandthenormalsubsistenceandtransportexpenses.TheboardfeesandsittingallowancespaidshallbedeterminedbyTreasuryfromtimetotime.

Deductions 57.(1)Paymentofsalariesandwagesshallbemadeinaccordancewithpay-sheetscompiledfromthestaffrecordsofthedepartment,showingthegrossamountofsalaries,wagesandallowancesanddetailsofalldeductions. (2)Themoneysrelatingtodeductionsshownonpay-sheetsshallbepaidovertotheofficersorotherpersonsauthorisedtoreceivethemassoonafterpay-dayasispracticable.Nodeductionsfromthegrosssalaries,wagesandallowancesshownonapay-sheetshallbemadeexceptforsuchpurposesanduponsuchconditionsastheTreasurymayfromtimetotimeapprove.


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Payment of salaries and wages and statutory returns 58.(1)Forthosedepartmentswhichdonotpreparetheirownpay-sheets— (a) assoonaspay-sheetshavebeencompiledforthemonth,theDirectorSalaryServiceBureaushallsubmittoeach

Ministryanddepartmentconcernedaninvoiceforthegrosssalarysupportedbydetailsoftheallocations; (b) theseinvoicesshallbedeliveredbyhand,signedforinaspecialdespatchbookandonreceiptshallimmediatelybe

thesubjectofapaymentbyEFT; (c) paymentsshallneverbewithheldordelayedandtheEFTshallbeeffectedwithin24hoursofreceiptoftheinvoice; (d) anyadjustmentsthatmaybenecessaryshallbeeffectedinthefollowingmonth;and (e) anyunclaimedwagesshallberecordedimmediatelyafterthepayoutisconcluded. (2)ExceptasprovidedinInstructionNo.0648salariesandwagesbecomedueandpayableonthelastbusinessdayofeachmonth.Inorder,however,toaccommodatebanksandotherfinancialinstitutions,theSalaryServiceBureauwillpublishinadvancethedaysonwhichpaymentofsalariesandwagesshallbemadeineachyearormonth. (3)Salariesandwagesmaybepaidfourteendayspriortothecommencementofvacationleave,subjecttotheapprovaloftheHeadoftheDepartment,providedthat— (a) advancesmaybemadeonlyinmultiplesofacompletemonth’spay; (b) advancesmayamounttoasmanymonth’spayastherearepaydaysfallingwithintheperiodofleavewithamaximum

ofthreemonths;and (c) inexceptionalcircumstancestheTreasurymayauthoriseanadvancetoanofficerofaroundsumrepresentingthe

wholeorpartoftheemolumentsfallingdueduringaperiodofleaveinexcessofthreemonths. (4)Onthedeathofanofficer,thesalaryforthemonthinwhichtheydie,shallbepaidtotheMasteroftheHighCourtortheirestateascircumstancesdictate.Forthepurposeofexpeditingthepaymenttosurvivingspousesorbeneficiaries,ofthesumsprovidedforbythisInstruction,EstablishmentOfficersmayacceptanofficialnotificationofdeathfromtherelevantMinistrybutadeathcertificatemustbeproducedsubsequently. (5)AccountingOfficersshallensurethattheresponsibilitiesofhiringemployees,payrollcomputation,andthepaymentofemployeesaresegregated.Wagesandsalariespay-outsshallbedonebypersonsnotinvolvedinanywaywithpayrollpreparationorpayrollEFToperations. Expenditure documentation and validation

59.(1)AllofficersconcernedintheissuingofpurchaseordersforsuppliesandservicesshallensurethattheprovisionsofInstructionNos.0800to0999havebeensatisfiedbeforeproceedingtoissueanypurchaseorders. (2)Asfarasispracticabletheprescribedpurchaseorder(issuedinthesystem),shallbeissuedforallsuppliesandservices.Thefulfilledpurchaseordershallbeattachedtothesupplier’sinvoiceandthesedocumentswhenproperlycertifiedmaythenbeusedassupportingdocumentstoapaymentvoucher.Whereanumberofpurchaseordersonthesamesupplieraretobepaidtheyshouldbeattached,togetherwithothersupportingdocuments,toacoveringpaymentvoucher. (3)Asaprecautionagainstdualpaymentofclaimsthefollowingrulesmustbeobserved— (a) purchaseordersforgoodsshallnotbeissuedafterthegoodshavebeensupplied.Insuchcircumstancestheresponsible

officershallcertifythepaymentvouchertotheeffectthatnopurchaseorderwasissued; (b) onnoaccountshalladuplicatebeissuedforaPurchaseOrderwhichhasbeenlost.Thesuppliershallberequestedto

submittheirinvoicefortheamountclaimedandthisshallbeattachedtoaseparatevoucherwhichshallbecertifiedtotheeffectthattheinvoicehasnotbeenpreviouslypaidandthattheoriginalpurchaseorderhasbeenmislaid;and

(c) onnoaccountshallapaymentbeonthebasisofaquotationonly.Thesuppliershallberequestedtosubmitanoriginalinvoicefortheamountclaimedandthisshallbeattachedtothevoucher.

(4)Thecopiesofinternalrequisitionsandpurchaseordersshallberetainedasfollows— (i) aninternalrequisitionshallbedestroyed1yearfromthedateofannualaudit; (ii) purchaseordersshallbedestroyed3yearsfromthedateofannualaudit;and (iii) atdiplomaticandconsularmissionspurchaseordersshallbedestroyedthreeyearsfromthedateofannualaudit. (5)AllclaimsagainstGovernmentshallbedealtwithpromptlyandintermsofanycontract.PaymentVouchersmustbecompletedandprocessedthroughthePFMSwithoutdelay.Whereapaymentvoucherissubmittedcoveringanumberofinvoicesorstatements,thevouchershallcontainsufficientinformationtoenabletheexpendituretobeverifiedintheeventofanyofthedocumentsbecomingdetached.Allsuchdocumentsshallbeclearlymarked“supportingvoucheronly”orstampedPAID. (6)Apaymentvoucherforaprogresspaymenttoacontractorshall— (a) notberegardedasanadvancebutasapaymentchargeabletotheappropriateVote;show— (i) thetotalamountpayableunderthecontract; (ii) thetotalamountpaidtodate,includingthepaymentmadebythevoucher; and (iii) thebalancedueandallotherrelevantinformation;and (b) besupportedbyacertificatefromadulyauthorisedofficertotheeffectthat,intermsofthecontract,thepayeeis

entitledtothepayment.

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(7)Thefinalpaymentunderacontractshallbesupportedbythecertificateofadulyauthorisedofficertotheeffectthatthetermsofthecontracthaveineveryrespectbeensatisfactorilycarriedout. (8)Paymentsrequiredforgoodsconsignedbutnotreceivedatthetimepaymentismadeshallberecordedinaregister.Entriesshallbeclearedwhenthegoodsarereceived.Theregistershallbeexaminedatleastonceamonthandatyearendanduncleareditemsshallbethoroughlyinvestigatedinorderthatclaimsonsuppliers,shippers,etc.,maybesubmittedwithoutdelay. (9)Wheneveraspecificauthorityforexpenditureisissued,acopyshallbefiledinthepayingofficeandallvoucherspaidinpursuanceofthatauthorityshallquotefulldetailsofsuchauthority. (10)Paymentstothirdpartiesshallbemadeonlyunderaproperlegalauthoritywhichshallbeattachedtothevoucher. (11)OfficersshalltakenoteoftheprovisionsofInstructionsNos.0633to0637whenpreparinganyvoucherconcernedwiththepaymentofemploymentcosts. (12)Whenanerrorismadeonaninvoiceoraninvoicecontainsanitemwhichcannotbeacceptedasachargeagainstpublicfundsorwhenforanyotherreasonapaymentvoucherdiffersfromtheinvoicesubmitted,theDepartmentconcernedshallnotifythepayeeofthealterationsithasmadeandthereasonstherefor. (13)Certificatesinsupportofpaymentvouchersshallbeinaccordancewithfactsandshallbegivenonlybyofficerswithactualknowledgeofthesefacts.Nocertificateshallbegivenbasedonhearsayevidence.Thecertifyingofficershallberesponsibleforanyunauthorisedorexcesspaymentmadeinconsequenceofanincorrectcertificateandanysuchpaymentshallbedisallowedor,whereapplicable,adepartmentalsurchargeshallberaised. (14)Thefollowingaretheusualformsofcertificatesrequiredtobeincorporatedinapaymentvoucherbeforeitissubmittedforpayment— (a) inrespectofgoods— (i) supplied:thatthesuppliesweredemandedonthepublicservice;werereceivedingoodconditionandthatrates

chargedareaccordingtotarifforcontractorarealternativelyfairandreasonable; (ii) takenintostore:thatthereceiptofthegoodshasbeenrecordedinthestorerecords;and (iii) classedasdepartmentalassets:thatsuchgoodshavebeenenteredontherelevantscheduleofdepartmentalassets; (b) forservicesrendered:thatsuchservicesweredemandedonthepublicservice;werecarriedoutinasatisfactorymanner

andthatthechargesareaccordingtotarifforcontractorarealternativelyfairandreasonable; (c) forapayment“onaccount”:thattheamountisfullycoveredbythesuppliesorservicesreceiveduptothedateofthe

certificate; (d) foraninvoicesubmittedforpaymentafterthecalendarmonthfollowingthatinwhichtheexpenditurewasincurred:

thatithasnotbeenpreviouslypaid;and (e) forotherclaimforms:suchothercertificatesasmaybeincorporatedinaclaimformorpaymentvoucher. (15)Beforeforwardingacashvoucherforpaymentorajournalvoucherforadjustment,theofficersinitiatingthetransactionshallsatisfythemselvesthattheclaimisaproperchargeagainstpublicfunds,andis— (a) accordingtoregulation,tarifforagreementorisalternativelyfairandreasonable; (b) coveredbycompetentauthority; (c) correctinregardtodateandperiodofservice; (d) correctinregardtocomputations; (e) supportedbytherelevantpurchaseordersoranexplanationfortheirabsence; (f) generallyinorder;andproperlycertified. (16)Whereacertificateisconsideredbytheexaminingofficertobeimperfectorwheretherearegroundsfordoubtingitsaccuracy,thepaymentvouchershallbereturnedtothecertifyingofficerwhoshallsignanyamendmentfoundtobenecessaryinthepaymentvoucherorcertificate.Althoughcertificatesshouldnotbelightlychallengeditisthedutyofexaminingofficerstoquestionanywhichintheiropinionareinconsistentwiththefacts. (17)TheDirectorofFinanceshallinstituteasystemofinternalcheckandcontroltoguardagainstthedualpaymentofclaimsandshall,withtheapprovaloftheAccountingOfficer;requirespendingofficerstoestablishandmaintainaneffectivesystem of commitment control. (18)Except in regard tovouchers framed in theirownoffice,aDirectorofFinanceshallnotbeheldresponsible forinaccuraciesinvouchers,properlycertifiedbytheofficersinitiatingtransactions,andsubmittedtothemforpayment. (19)TheDirectorofFinance,beforepassingavoucherforpayment,mustbesatisfiedthatithasbeensubjectedtoscrutinybyanexaminingofficertoensurethatitisinorderinaccordancewithInstructionNo.0665,thatthepayeeisthepersonentitledtopayment,thattheinvoicehasnotbeenpreviouslypaidandthatitisproperlyclassified. (20)Governmentcurrentlyoperatesonacashaccountingbasissuchthat“thedateofpaymentisthedateofcharge”.Allpaymentsmadeshallthereforeappearintheaccountsofthedepartmentconcernedforthefinancialyearinwhichtheyaremade. (21)Paidvouchersandallotheraccountingrecords(electronicandphysical)shallbedisposedofinaccordancewiththeguidancefromTreasuryandGovernmentArchives. (22)Monthendorinterim“print-out”,whicheverismostconvenient,mustbecheckedformis-allocationsandpostingerrors.


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Cash payments and acquittances

60.(1)Everyofficercollectingcashfromabankorothercollectingpointforthepurposeofmakinganycashpaymentsshallcheckthemoneybeforeleavingsuchcollectingpoint.Thisistoensurethatthecorrectamounthasbeendrawnanditshallbeassumedthattheyhavedonethis. (2)Whencashisdrawnforthepaymentofsalariesorwagesandforanyreasonpaymentcannotbemadewithinforty-eighthourssuchcashshall,ifbankingfacilitiesareavailable,bedepositedtothecreditofanofficialaccountoralternativelybereceiptedintoalocaltemporarydepositaccountwherepracticable.AccountingOfficersmayauthorisetheholdingofthecashforalongerperiodprovidedthatthereareadequatemeansofsafeguardingit. (3)Theprocurementofareceiptmaybedispensedwithwheresalariesorwagesaredepositedtothecreditofanofficer’spersonalaccountatafinancialinstitutionoranyotherpaymentmethodauthorisedbyTreasury. (4)Thepayee’sreceiptforanysumpaidincashshalleitherbeobtainedonthepaymentvoucherorattachedthereto.Whenaseparatereceiptisattachedthevouchershallbeendorsedtothiseffect.Anyalterationtothereceiptshallbesignedbythepersongivingthereceipt. (5)Wherenocreditors’recordsaremaintainedthechequenumber;RTGS;Paynet;Batch;etc.referenceshallberecordedonthepaymentvoucherwhereappropriate. (6)Whenapayeecannotsigntheirnametheyshallbepaidinthepresenceofthepayingofficerandoneotherresponsibleperson,bothofwhomshallsignthereceiptorvoucheraswitnessestothepaymenthavingbeenmade.Whennosecondwitnessisavailableacertificatetothiseffectshallbegiven. (7)Wheretheuseofthe“ticket”systemoranysimilarsystemhasbeenauthorisedbytheTreasury,atleastoneseniorofficerorotherresponsiblepersonmustbepresentduringthewholetimethatpaymentsarebeingmade.Suchwitnessesshallcertifyonthevoucherthatthepersonsnamedwerepaidintheirpresencetheamountsdueaccordingtothe“tickets”orotherrecords.Neitherthepayingofficernoraforemanorgangmastermaysignasawitnessunlessnootherpersonisavailableinwhichcasesomeotherofficershouldattesttothiseffect. (8)Thecertificatesrequiredonapay-sheetshallnotbecompletedinadvanceofthefullacquittanceofthepay-sheetorbeforetheendoftheperiodtowhichanyofthepaymentsrelate.

PART XI

Paymaster General’s account: electronic Funds transFers, cheques, and oFFicial bankinG accounts

Paymaster General’s Account 61.(1)TheDirectorofFinanceshallsubmit,totheAccountant-Generalonorbeforetheseventhworkingdayofeachmonth,areconciliationoftheSubPaymasterGeneral’sAccountfortheirrespectiveministry,coveringthepreviousmonth’stransactions. (2)WhenanyonepaymenttransactioninexcessofthresholdssetbytheAccountant-GeneralisabouttobedrawnonthePaymasterGeneral’sAccount,theestimatedduedateofthepaymentshallbenotifiedtotheTreasuryimmediately.

Processing of payments 62.(1)Thepreferredmethodfordisbursingfundstovendors,individualsandorganisationsshallbePaynet(asystemthatdepositsfundsdirectlyintobankaccounts),EFTorotherEFTcompliantalternativesthatareapprovedbyTreasuryfromtimetotime.AccountingOfficersshallensurethattheirMinistriesutiliseelectronicpaymentmechanismstothefullestextentpossible. (2)ItistheresponsibilityofAccountingOfficerstoensureadequatesafeguardsonthePaynetsystem.AccountingOfficersshallensurethatonlyauthorisedofficershaveaccesstothePaynetsystem. (3)WhereAccountingOfficershavebeenauthorisedtooperatesystemsthatareindependentofthePFMS,theyshallensurethatpaymentdetailsorinformationonthePaynetisthesamewiththatontheaccountingpackage.AccountingOfficersshallinstituteinternalcontrolsthatverifythatthevendororsupplierdetailsonthesourcesystemisthesameasthosetobepaidthrough Paynet. (4)AccountingOfficersshallensurethatthereisadequatesegregationofdutiesoninitiationandauthorisationofpaymentinstructionsrelatingtoRTGSandTTs.Undernocircumstancesshallanofficerbeallowedtoprepare,approveandpassforpaymentinstructionsforRTGSandTTs.AllRTGSandTTtransactionsshallbeapprovedbytheauthorisedbanksignatories. (5)WhereitisnotpossibletoprocesspaymentsthroughPaynetorEFT,AccountingOfficersmaymakecashorchequedisbursements.AccountingOfficersshallensurethatadequatesafeguardsincludingthosecitedinInstructionNo.0673areobservedwhenwithdrawingcashfromthebankandintheissuanceofcheques. (6)BlankchequeformsandunusedchequebooksshallbetreatedassecurityitemsandcontrolledinthemannerlaiddowninInstructionNo.0520.Thenumberofchequesdrawnshouldbekepttoaminimum.Whereseveralpaymentsareduetoonefirmandproperuseismadeofthesundrycreditorssystem,onechequeshouldsuffice. (7)Unlesssuitablypre-printedallchequesissuedshallbecrossed“notnegotiable”atthetimeofissue,and,whereapplicable,theword“bearer”shallbedeleted.The“notnegotiable”crossingmaybeomittedattherequestofthepayeeorincaseswhereabulkchequeforwagesisrequiredsubjecttothefollowingrestrictions— (a) where thepayee requestsanopenchequean indemnitymustbeobtainedand thechequesigned for if collected

personally.Whensentbypostitmustberegistered;and (b) inthecaseofabulkcheque/paymentinstruction/cashwithdrawalthepayeemustbeapersonknowntothebankor

otherofficewhereitistobecashedand,asin(a)above,thechequemustbesignedfororsentbyregisteredmail.

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(8)Wheneverpossiblecheques,RTGSorTTinstructionsdrawnuponanofficialaccountshallbearthesignatureofoneseniorofficial.Theresponsibilityfortheregularityofpaymentsrestsonbothsignatoriesandbeforesigningacheque/paymentinstruction, therefore, each signingofficermust satisfy themselves that the payment is a correct charge against the accountconcerned,thatithasbeendulyauthorisedandthatitmayproperlybemade. (9)Theextentofthecheckbyallsignatoriesshouldbethesame,butincaseswherethereisonlyonepersoninanaccountsofficethesecondsignatoryshallbelimitedinresponsibilitytoseeingonlythatthechequecorrespondswiththevoucherandthatitiscorrectlydrawn.Itissufficient,incomputerisedaccountingoffices,forofficialssigningchequestodosoagainsttheremittanceadviceslipsiftheyaresatisfiedthattherelativepaymentvouchershavebeencheckedbyaresponsibleaccountsofficerandthatacheckofthepostingstothecorrectcreditors’ledgerhasbeencarriedout. (10)Shoulditbenecessarytocancelacheque,thecancellationshallbemadeacrossthefaceofthechequeand,iftheinstrumenthasbeensignedbeforecancellation,thesignatureofthesigningofficersshallbedefaced.Thecancelledchequeshallberetainedforsubsequentauditexamination.AdjustmentstoappropriationaccountsinrespectofcancelledchequesshallbemadebyjournaldebitingthePaymasterGeneral’sAccountandcreditingtherelativeVote. (11)Wheneverachequeistobereplacedandtheoriginalisnotavailablepaymentmustbestoppedatthebank.Thenumberofthereplacementchequemustbenotedagainsttheoriginalcashbookentry. (12)Wheneverachequehasbeenlost,stolenorhasneverbeenreceivedbythepayee,thepayeeshallsubmitthefactsinwritingbeforeanyreplacementactionistaken.Wherethechequeneverreachedthepayee,areplacementchequemaybeissuedaftertakingactioninaccordancewithInstructionNo.0689andsubjecttoaguaranteebeinggivenbythepayeethattheoriginalchequewillbereturnedifitissubsequentlyfoundordelivered.Thepaymentshouldbedebitedtoanadvancesaccountuntilsuchtimeastheoriginalbecomesstaleorisreturned. (13)Whereachequeneverreachesapayeeandthereisevidencethatithas,orcouldhavebeenfraudulentlynegotiated,theadditionalstepsasoutlinedin(a)belowshallalsobetaken.IfthechequehasbeenlostorstolenafteritreachesthepayeeitmustbeascertainedthatthePolicehavebeeninformedandnoreplacementactionmaytakeplacewithouttheauthorityoftheTreasuryinconsultationwiththeAttorney-General.AnindemnitymaybecalledforinadditiontotheguaranteedescribedinInstruction No. 0694. Ifthelostorstolenchequerelatestoanofficeroremployee’spayanadvanceofalikesummaybegivenimmediatelysubjecttotheguaranteedescribedinInstructionNo.0694. (14)WhenachequeformorethanthethresholdgivenbyTreasuryisabouttobecomestaleanattemptmustbemadetonotifythepayee.InthecaseofchequesforlessthanthethresholdsetbyTreasuryandwherethepayeecannotbefoundchequesshouldbereversedandtheamountspaidintorevenue. (15)Alterationstochequesmustbesignedforbytheoriginalsignatories.Ifthisisnotpossiblethechequemustbecancelledandafreshoneissued. Official Banking Accounts

63.(1)OfficialbankingaccountsshallonlybeopenedwiththewrittenauthorityoftheAccountant-Generalintermsofsection22(3)oftheAct.ApplicationstoopensuchaccountsshallbesubmittedtotheAccountant-GeneralbytheAccountingOfficerorReceiverofRevenueconcerned,whoshallnominatetheHeadofOfficeresponsiblefortheaccount.Iftheapplicationisapproved,theAccountant-GeneralwillnotifythebankandtheHeadofOfficeconcernedandspecifyanyconditionspertainingtotheoperationoftheaccount. (2)Thefollowinginstructionsshallapplyinrespectofauthorisedsignatories’panelsforofficialbankingaccounts— (a) theAccountingOfficershallapproveallrecommendedsignatories; (b) thepanelshallconsistofnotlessthanthreeandnotmorethansixpersons,exceptinthecaseoftheSubPaymaster

General’sAccount,wheresixormorepersonsmayberequired; (c) theHeadofOfficeandtheDirectorofFinanceshallinvariablybeoneoftheauthorisedsignatoryandtheyshall

nominatetheremainder; (d) thelistofsignatoriesshallbesubmittedtothebankinsuchformasthebankmayrequiretogetherwithspecimen

signatures.Analterationtothepanelshallbeeffectedbydetailingthealterationsandgivingspecimensignaturesofanynewmembersfollowedbyafulllistofthenewpanel;

(e) inthecaseoftheSubPaymasterGeneral’sAccounttheactionslistedabovemayonlybecarriedoutthroughandwiththeauthorityoftheAccountant-GeneralandspecimensignaturesmustbeverifiedbytheDirectorofFinance;and

(f) arecordofauthorisedsignatories’panelsshallbemaintainedbytheDirectorofFinanceorHeadofOffice. (3)Asageneralrule,transactionsonofficialbankingaccountsshallbeauthorisedbytwo(2)signatoriesfromapanelappointedforthatpurpose.Wherelocalcircumstancesdemand,asinglesignatureaccountmaybeoperatedafterobtainingwrittenclearancefromtheAccountant-General.ItisthedutyoftheHeadofOfficetoconvertsuchaccountstotwo(2)signatureaccountsassoonasthisispossible. (4)WhenachangeintheHeadofOfficetakesplace,theoutgoingofficialshallgive noticeofthenewappointmenttothebankandshallissueanauthorityfortheincomingofficialtooperateontheaccounts. (5)Officialbankingaccountsshallnotbeoverdrawn.Anaccountshallbedeemedtobeoverdrawnwhenthecashbookshowsacreditbalance.


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Advances 64.(1)Advancesingeneralmayonlybemadeintermsoftheprovisionsofsection25oftheAct. (2)AnAccountingOfficermayauthorisesuchadvancesasheconsidersnecessary— (a) toMinisters,officersandemployeesonaccountof subsistenceand transportexpensesor salaries, subject to the

limitationsimposedbyanyregulationsortheseinstructions;and,inthecaseofsalaries,subjecttotheapprovaloftheEstablishmentsOfficer;and

(b) forthepurposessetoutinsection25(1)(d)oftheAct. (3)ToenabletheTreasurytoexercisecontrolovertheaggregatebalanceofadvances,alimitshallbeimposedupontheunadjustedbalanceofeachAccountingOfficer’sadvancesaccount.AccountingOfficersshallthereforeseekTreasuryauthorityforsuchstandingallocationsastheyconsidernecessaryandtheyshallthereuponberesponsibleforensuringthattheiradvancesaccountbalancesdonotexceedtheamountoftheirallocationswithoutthepriorauthorityoftheTreasury. (4)Giventheemergencyofplasticmoney,thelevelofadvancespaidincashshallbedeterminedfromtimetotimebyTreasury.AdvancesrequirementsinexcessofsuchcashlimitsshallbetransferredintotheVisaaccountoftheofficerreceivingtheadvance. (5)AccountingOfficersshallberesponsiblefortherecoveryofalladvancesmadebythemandforensuringthatthetermsandconditionsoftheadvancearecompliedwith.Theyshallensurethatefficientcontrolsandaccountingrecordsaremaintainedinrespectofalladvancesmade,includingimprests,andinparticularshallensurethatalladvancesarerestrictedtotheminimumamountcompatiblewithrequirements.

Travelling and subsistence allowances

65.(1)Thetravelandsubsidenceallowancesthatofficersareentitledshallbegovernedbytheprovisionsofsections21to26ofthePublicServicePublicServiceRegulations,2000.ItistheresponsibilityofAccountingOfficerstoensurethatallofficersentitledtotravelandsubsistenceallowancescomplywiththeseprovisions. (2)GovernmentshallmeettravelexpensesfortravelonofficialdutyandtravelontransferintheinterestofthePublicService.TravelwithinZimbabweshallbebyGovernmentvehicles,publictransport,transportonhireoranofficer’sownvehicle.ItistheresponsibilityofAccountingOfficerstoensurethatofficialtravelisbythemostefficientandeconomicmeans. (3)WheretheAccountingOfficerhasauthorisedofficerstousetheirownvehiclesonofficialduty,theofficersshallbeentitledtoclaimdistanceratesapproved,fromtimetotime,bytheCommissionwiththeconcurrenceofTreasury. (4)WheretheAccountingofficerhasauthorisedofficerstohirevehiclesortotravelbyaironofficialduty,theyshallensurethatsuchofficersareissuedwitharequisitionforpaymentonlytotheoperatorofthetransportserviceconcerned. (5)Governmentshallnotberesponsibleforcostsincurredwhenofficersonofficialdutytravelwithspouses,childrenordependants.WhenofficershavebeenauthorizedtouseaGovernmentvehicleforofficialduty,theyshallnot,exceptwiththeexpresspermissionoftheAccountingOfficer,carryunauthorisedpassengers,includingmembersoftheirfamily.WheretheAccountingOfficerhasgrantedsuchpermission,Governmentshallnotbeliableinthecaseofaroadtrafficaccidentleadingtothedeathorinjuryofanypassenger. (6)Officersmay,onapplication,bepaidasubsistenceallowanceinadvanceforaperiodnotexceedingonemonthorsuchlongerperiodinadvanceastheAccountingOfficermayauthorize.Thesubsistenceallowanceshallcoverthecostofmealsandaccommodationwhenanofficerisawayfromtheirhomestation. (7)Whereofficersarepaidasubsistenceallowanceinadvance— (a) itmaybeforthefullamountoftheallowanceorsuchlesseramountasthetravellingofficerrequires; (b) itshallbeusedforthepurposeforwhichithasbeenmadeandbeadjustedassoonaspossibleafterthedateonwhich

theofficerreturnstohomestation;and (c) nonewadvanceshallbemadebeforetheexistingoneiscleared,unlessotherwiseauthorisedbytheAccounting

Officer. (8)Thecostofbreakfast,lunchanddinnerwhenanofficerisoutoftheirhomestationonofficialdutyshallnotrequiresubmissionofdocumentaryproofandshallbereimbursedondailyratesdeterminedandreviewedfromtimetotimebythePublicServiceCommissionandwithTreasuryconcurrence. (9)ThetravelexpensesthatrequiredocumentaryproofshallbethecostofaccommodationwhereGovernmentaccommodationisnotprovided.Theseprovedexpensesshallbesupportedbyreceiptsforaccommodationinthehotelorotherrentedhousinginwhichtheofficerwasaccommodated.AccountingOfficersshallensurethattheprovedexpensesdonotexceedtheratesprescribedbythePublicServiceCommissionwithTreasuryconcurrence. (10)TheGovernmentshallpaytheexpensesofconveyingtheimmediatefamilyandallhouseholdgoodsofamembertravellingontransfer.AccountingOfficersshallreimburseofficersontransferthefollowingexpenseswhere— (a) accommodationisnotprovidedontransferandthemember,theirfamilyorbotharerequiredtoliveinahotelorany

rentedaccommodationtemporarilyprovedmealsandaccommodationshallbeat— (i) fullrateforthefirstthirtydays; (ii) halfrateforthenextthirtydays;and (iii) thereafterat theofficer’sexpenseunlessotherwisedirectedby theCommissionwith theconcurrenceof the

Treasury;

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(b) accommodationisnotprovidedontransferandtheofficer,theirfamilyorbothmakeprivatearrangementsinthisregard,thecostofmealsshallbeatunprovedrates;and

(c) officersareobligedtomovewiththeirhouseholdeffectstheyshallbepaidinaccordancewithsuchrulesgoverningsuchmovementasareapprovedbytheCommissionandatdifferentratesdependingonthemaritalstatusof theofficer—

(i) thecostofmovingsucheffects; (ii) adisturbanceallowance;and (iii) thecostofstorageofthemember’sbelongingsforperiodsofuptothirtydaysbeforeandthirtydaysafterthe

transfer. (11)TravelandsubsistenceadvancesshallonlybeapprovedbytheAccountingOfficeroranOfficerdelegatedbythem.AccountingOfficersorOfficersdelegatedbythemshallensurethattherearesufficientfundsintherelatedsub-headtofundtheadvancesbeforeapprovingthetravel. (12)Whereatripisfundedpartlyorfullybyadevelopmentpartner,AccountingOfficersshallensurethatmembersarepaidthesubsistenceallowancesthatarerecommendedbytherelevantdevelopmentpartner.AccountingOfficersshallauthorisethetoppingupofsubsistenceallowancesforsuchtripsinaccordancewithTreasurycircularsthatareissuedfromtimetotime. (13)PenaltiesforcancellationofairlineticketsandfailuretotakeuphotelaccommodationshallbepaidonlyifthecauseforthecancellationisinthebestinterestofGovernmentorwasduetocircumstancesbeyondthecontrolofthepersontravelling.AccountingOfficersshallensureappropriatejustificationissubmittedinwriting.Penaltiesforcancellationsofticketsandhotelaccommodationthatarisefromatraveller’snegligenceshallberecoveredfromthememberconcerned. (14)Whereamemberisissuedanadvanceandhe/shefailstotravel,theadvanceshallberepaidtotheConsolidatedRevenueFundinfull.ThebankchargesrelatingtotherepaymentshallbemetbyGovernmentifthememberwasnotresponsibleforthecancellationofthetrip.Ifthetripwascancelledfortheconvenienceofthemember,he/sheshallmeetthecostofbankcharges. (15)Travellingadvancesshallbeacquittedwithinthirty(30)workingdaysofthecompletionoftravelbysubmissionofatravellingandsubsistenceclaimvoucher.Whereatravellingadvancehasnotbeenfullyexpended,itshallberepaidtotheConsolidatedRevenueFundwithinthirty(30)workingdaysofthecompletionoftravel.Incaseswherethetripwasfundedbyadevelopmentpartner,theacquittaloftheadvanceshallbeinthesamemannerasvotedfunds. (16)Anyclaimforrefundorreimbursementofanytravelrelatedorothercostsincurredandconsideredtobeofficialexpensesshallbesubmittedwithinthirty(30)workingdaysfromthedateofreturntotheworkstation.Theseshallbesubmittedtogetherwithcompleteoriginaldocumentstosupport,andjustifytheclaim. (17)Theoutstandingbalanceofanyadvancetoapublicofficerbecomesadebttogovernmentandisfullyrecoverablewithinthirty(30)workingdaysofthecompletionoftravel,orifanofficerleavestheserviceonthedatethepublicofficerleavestheservice,andshallbeaggregatedwithotherdebtsduetogovernment. (18)Thebalanceofanadvanceduefromanofficerwhoistransferredtoanotherdepartmentshallbereportedtotheheadofthenewdepartmentandthisshallbetreatedasaninter-departmentalpayment. (19)Noadvanceinrespectofsubsistenceandtransportexpensesshallbemadetoanofficerinanycalendarmonthuntilsuchtimeasadvancesmadeinpreviousmonthshavebeenaccountedfortotheappropriateaccountant.Anybalanceleftafterapprovedexpenditureonofficialtravelabroadshallbepaidbackinforeigncurrency.TheAccountingOfficershallauthorisethedeductionfromsalaryofthewholeamountofanadvancethathasremainedoutstandingafteronemonthofanofficer’sreturntotheirhomestation.Ifthesalaryisinsufficienttomeetsuchadvance,theoutstandingbalanceshallbechargedtoanysubsequentmonth’ssalaryuntilthewholeadvanceiscleared. (20)AccountingOfficersshallsubmitstatementsoftheiradvancesaccountsasat30thJuneand31stDecembereachyear,totheTreasuryandtheAuditor-General,withinonemonthofthedatesmentioned.Thestatementsshallshow— (a) thenatureoftheadvance; (b) fromwhomitisrecoverable; (c) thedateonwhichtheadvancewasmade; (d) originalamountofadvance; (e) the amount of claim; (f) theamountoutstanding;and (g) thearrangementsmadeforitsrecovery. (21)Thebalanceofoutstandingadvancesshallbebroughtforwardtothenewfinancialrecordsimmediatelyaftertheaccountsforeachfinancialyearhavebeenclosed. (22)Appropriateledgeraccountsshallbemaintainedforalladvancesmadeforthepurposesetoutinsection25(1)oftheAct. (23)AccountingOfficersmay,with thewritten approval of theTreasury, charge advanceswhich have proved to beirrecoverabletotheirownVotesafterhavingfurnishedfulldetailsofeachcasetotheAuditor-Generalandprovidedthathe/shedoesnotintendtotakeanyactioninthematter. Disallowances and departmental surcharges 66.(1)If,beforetheappropriationaccountsforafinancialyearareclosed,apaidvoucheralreadydebitedtoaVoteisfoundtobeerroneousorotherwiseunacceptable,theamountofthepaymentsomadeshallbedisallowedbytheAccountingOfficer.


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(2)AnypaymentfromaVotewhichisdisallowedshallimmediatelyberemovedfromtheaccountoftheVoteandenteredtothedebitofthedisallowancessectionoftheadvancesledger. (3)Intheeventofadisallowancebeingsubsequentlywithdrawnforanyreason,theamountshallbechargedagaintotheVotefromwhichthedisallowancewasmadeor,iftheappropriationaccountsfortherelevantyearhavebeenclosed,tothecorrespondingVoteforthecurrentyear. (4)AccountingOfficersmusttakeintoaccountoutstandingdisallowanceswhencomparingthetotalofoutstandingadvanceswiththeblockgrantauthorisedbytheTreasuryintermsofInstructionNo.0705. (5)Adisallowancemaynotbe raisedafter theclosingof theappropriationaccounts for theyear towhich it relates.AccountingOfficerswillinsteadraiseadepartmentalsurchargewhichshallbeenteredinaregisterspecificallyopenedforthepurpose. (6)AccountingOfficersareresponsiblefortherecoveryoradjustmentofdisallowancesanddepartmentalsurchargesandshallensurethatthisisdoneassoonaspossible. (7)AccountingOfficersshallsubmitstatementsofoutstandingdisallowancesanddepartmentalsurchargeswithinonemonthofthe30thJuneand31stDecemberineachyeartotheTreasuryandtheAuditor-General.Thestatementsshallshow,inrespectofeachdisallowanceordepartmentalsurcharge— (a) fromwhomitisrecoverable; (b) thereasonforthedisallowanceordepartmentalsurcharge; (c) theamountoutstanding; (d) thedateonwhichitwasraised;and (e) thearrangementsmadeforitsrecovery. (8)DisallowancesanddepartmentalsurchargeswhichhaveprovedtobeirrecoverablemaybetreatedinthesamemannerasirrecoverableadvancesintermsofInstructionNo.0730. (9)Recoveriesofdepartmentalsurchargesshallbecreditedto“Refundsofmiscellaneouspaymentsfromvotes”. (10)Thebalanceofoutstandingdisallowancesshallbebroughtforwardtothenewfinancialrecordsimmediatelyafter theaccountsforeachfinancialyearhavebeenclosed.

PART XIIProcurement oF Goods, services and Works

Procurement policy

67.(1)Thissectionprovidesguidanceonprocurementpoliciesandprocedures,purchaseordersandrequisitions,receiptofgoodsandservices,andmonitoringofprocurementandpayments.Theinstructionsinthissectionareaimedatensuringaprocurementsystemwhichisfair,equitable,transparent,competitiveandcost-effective. (2)AccountingOfficersshallberesponsibleforthemanagementofallpublicprocurementactivitieswithintheirMinistries,DepartmentsandAgencies(MDAs).EveryMinistryshallhaveaProcurementManagementUnitsetupintermsofthePublicProcurementandDisposalofPublicAssetsAct[Chapter 22:23]andwhoseroleshallbeto— (a) ensurethatprocurementiseffectedinamannerthatistransparent,fair,honest,cost-effectiveandcompetitive; (b) promotecompetitionamongbiddersforthesupplyofthesubjectmatteroftheprocurement; (c) provideforthefairandequitabletreatmentofallbiddersleadingtocontractsthatrepresentgoodvalueformoney; (d) promotetheintegrityoffairnessandpublicconfidenceintheprocurementprocess;and (e) implement any environmental, social, economic and other policies of Zimbabwe authorised or required by the

procurementregulationsorotherprovisionsofthelawsofZimbabwetobetakenintoaccountbytheprocuringentityintheprocurementproceedings.

(3)TheProcurementRegulatoryAuthorityofZimbabwe(PRAZ)shallberesponsibleforregulatingpublicprocurementwithinMDAs. (4)Nogoods,services,worksandconsultancyservicesshallbepurchasedfrompublicfundsexceptinaccordancewiththeprovisionsofthePublicProcurementandDisposalofPublicAssetsAct,ProcurementRegulationsasamendedfromtimeto timeandother instructions thatmaybe issuedby theMinister responsible foradministering thestatutegoverningpublicprocurement.Theexceptiontotheseinstructionsaretheexemptionsprovidedforbythestatutegoverningpublicprocurementandanydevelopmentpartnersfundedprocurementwhereitwouldhavebeenagreedtofollowthespecificdevelopmentpartner’sprocurementguidelines. (5)ItistheresponsibilityofAccountingOfficerstoensurethatallpublicprocurementactivitieswithintheirrespectiveMDAscomplywiththeprovisionsofthestatutegoverningpublicprocurementwithregardtoannualprocurementplansthatarealignedtotheauthorisedbudget.SuchprocurementplansshallbepreparedusingguidelinesandtemplatesprescribedbythePRAZ. (6)AllapprovedannualprocurementplansshallbeuploadedonthePFMSwithassistanceoftheTreasury.AccountingOfficersshallensurethatanyrequestsforprocurementofgoods,services,worksorconsultancyservices,arederivedfromtheapprovedannualprocurementplan.

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(7)AccountingOfficersshallensurethattheirMDAsplantheirpublicprocurementactivitieswithaviewtoachievingmaximumvalueformoneyspent.Theyshouldalsoensurethattheseactivitiesarecarriedoutwithinavailablefinancialresourcesandotherapplicablelimitationsandatthemostfavourabletime.Whereappropriate,MDAsshallaggregatetheirprocurementrequirementsinordertoachieveeconomiesofscale. (8)Allprocurementrequestsmustbejustifiedastotheneed,soastoavoidfruitlessandwastefulexpenditure;surplusandunwantedgoodsandredundantassets.Thereshouldbeproofthattherequiredgoods,services,worksandconsultancyservicesarecateredforintheprocurementplanandbudgetedfor.AccountingOfficersshallensurethattheirMDAs,beforecommencinganyprocurementprocess,carryoutthefollowing— (a) inquireastowhetherornotitsrequirementscanbemetbythetransferofgoodsfromanotherdepartmentoragency; (b) ensurethatanaccurateestimateofthecostoftheprocurementincludingthecostofcontingenciesthatmightreasonably

beexpectedtoariseunderacontractfortheprocurementhasbeenprepared;and (c) committheamountoftheestimateinaccordancewiththeprovisionsoftheapprovedannualestimatesenactedinthe

applicableAppropriationAct. (9)ItistheresponsibilityofAccountingOfficerstoensurethatallofficersinvolvedintheprocurementofgoods,services, worksandconsultancyservicesarefamiliarwiththelegalframeworkgoverningprocurementinZimbabweandthattheycomplywiththeestablishedgovernmentprocurementpoliciesatalltimes. (10)AccountingOfficersmayonlydispensewithordepart fromtheprovisionsof theProcurementRegulationswiththeexpressauthorityofthePRAZ.ThesubmissionforthedeparturefromordispensingwiththerequirementsofProcurementRegulationsmustbeinwritingandcopiedtoTreasuryandtheAuditor-General.Theapplicationforauthoritytodepartfromprocurementregulationsshallprovidethefollowinginformation— (a) reasonorjustification; (b) theamountinvolved; (c) whetheritisinthepublicinterest;and (d) theperiodforwhichthedepartureisrequired. (11)TheapplicationreferredtoinInstructionNo.0809mustonlybemadeinadvance,notaftertheevent.AnydeparturefromtheprocurementregulationswithoutauthorityfromPRAZconstitutesanactofmisconduct. (12)Where there iscompetitionbetween localandforeignsuppliers, thepreferencefordomesticcompaniesshallbeexercisedinaccordancewiththeprovisionsandguidanceprovidedinthePublicProcurementandDisposalofPublicAssetsActandprocurementregulations.AllMDAsshallhaveguidelinesregardingemployees’useofpreferentialprocurement.TheHeadofthePMUshallensurethattheselectionofsuppliersisintheMDAs’interestandisnotaffectedbytheavailabilityorpossibilityofpurchasingprivilegestoemployees. (13)AccountingOfficersshallensurethattheprocurementfunctionforgoods,services,worksandconsultancyservicesisseparatedfromthepaymentsfunction. (14)WhereaMinistryinitiateslong-termprocurementproceedingsformulti-yearcontractsthathavetheeffectofcommittingtheMinistrytomakingpaymentsinsubsequentfiscalyears,theMinistryshall— (a) obtaintheapprovalofTreasury,priortocontractaward; (b) ensurethatfundsforthecurrentfiscalyeararebudgetedandforecasts;and (c) ensurethatfundsforfuturefiscalyearsareincludedinbudgetsforsubsequentfiscalyearsandreportedtoTreasury,

withoutprejudicetoareservationbytheprocuringentityinthecontractoftherighttocancelsubsequentyearsofthecontractintheeventthenecessaryfundingisnotallocatedinthebudget.

(15)Ministriesshallmakeuseof frameworkagreementarrangements for theprocurementofcommonuse itemsandrecurrentpurchases(suchashotelaccommodationandfuel)inaccordancewiththeprovisionsofthePublicProcurementandDisposalofPublicAssetsAct.ThePFMSshallprovidemonthlycomparativereportsoncostvariancesreflectedbydifferentMinistriesforcommonuseitemsanddistributethesetotherelevantMinistriesandAgencies. (16)ThethresholdorlimitssetbythePRAZapplytothetotalvalueofgoods,services,worksorconsultancyservicestobeobtainedfromasinglesupplierorconsortiumforaparticularprojectorcontract.Thesplittingoftenders(artificialdivisionofprocurement)toavoidtenderthresholdsisprohibited.TheartificialdivisionofprocurementconstitutesanactofmisconductthatattractsdisciplinarymeasuresintermsofthePFMregulations. (17)TenderscanonlybedividedintolotsinaccordancewiththeprovisionsofthePublicProcurementandDisposalofPublicAssetsActandguidelinesissuedbyPRAZ. (18)Anadvancepaymentshallonlybemadepursuanttoawrittencontractandafteranadvancepaymentguaranteehasbeenfurnishedcoveringtheamountoftheadvancepaymentandsatisfiesothertermssetforthinthebiddingdocuments.Itisanactoffinancialmisconducttomakeanyadvancepaymentthatisnotcoveredbyanadvancepaymentguarantee. (19)TheAccountingOfficershallensurethattheConditionsofacontractarecompliedwithandappliedconsistentlythroughout theprocurementcycle.Thereshallbenovariationsonqualityofgoodsandservice;deliverytime;andpaymentmethodsandtiming.Failuretoupholdandcomplywiththeconditionsofcontractisanactoffinancialmisconduct. (20)Allbenefitsorrewardsrealisedandgainedbyanymemberofstaffinthecourseofperformingtheirdutiesinpurchasingofgoods,services,works,orconsultancyserviceshallbedeclaredandtransferredtotherelevantMinistry,DepartmentorAgency.Suchbenefitsandrewardsshallbe— (a) thepropertyoftheMinistry;


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(b) appliedassoonasispracticalforthebenefitoftheMinistry,suchastoreducecosts,butnotforpersonalbenefitoftheindividualmemberofstaff.

Evaluation Committee 68.(1)TheAccountingOfficershallbethefinalauthorityforprocurementsattheMinistrylevel.ThestatutegoverningpublicprocurementpermitstheAccountingOfficerstoappointanevaluationcommitteeforeachprocurementabovetheprescribedthreshold.Thedutiesoftheevaluationcommitteeshallinclude— (a) receivingfromtheprocurementunitthebidopeningrecordsandbids; (b) evaluatingbidsandpreparingthebidevaluationreportandrecommendationsforawardofacontract; (c) submittingitsevaluationreportstotheprocurementmanagementunit;and (d) exercisinganyotherfunctionsconferredorimposedonthecommitteebyorthestatutegoverningpublicprocurement

or regulations. (2)The compositionof theEvaluationCommittee shall promote theprincipleof genderbalance and equity, and themembersshallbeappointedonmerit.Thecompositionofthecommitteeshallincludeskills,knowledgeandexperiencerelevanttotheprocurementrequirement,whichmayinclude— (a) onememberfromthePMU; (b) atleastthreeothermembers,including— (i) thepersonresponsibleforpreparingtherequirementsandadditionally,oralternatively,thetechnicalspecifications

fortheprocurementconcerned,orapersonwithequivalenttechnicalexpertise; (ii) afinancialofficeroftheMDA;and (iii) oneormoreothermemberstoprovidetechnical,legal,financialorcommercialexpertise,asappropriate. (3)IntheexerciseofitsfunctionsanevaluationcommitteeshallbeanswerabletothePMUandtheAccountingOfficer.TheresponsibilityoftheEvaluationCommitteeshallnotinterferewithadministrativerolesofthePMU.ThePMUshallactasthesecretariattothecommittee.TherepresentativeofthePMUshallattendasanadviserandshallbeanon-votingmember. (4)Thepurposeofthebidevaluationprocessshallbetodeterminewhichofthebidsreceivedareresponsiveandthereaftercomparetheresponsivebidsagainsteachothertoselectthelowestevaluatedbid.Theoverallevaluationcriteriashallbevalueformoney,whichmaynotnecessarilybethelowestcostresponse.Corrections,errorsandomissionsnotedduringbidevaluationsshouldbedealtwithusingguidelinesprovidedinthePublicProcurementandDisposalofPublicAssetsActandRegulations. (5)TheChairpersonoftheEvaluationCommitteeshallbeaseniorindividualwhohasthoroughknowledgeandunderstandingoftheprocurementprocessandisindependentoftheprocurementandpaymentprocesses. (6)Alltendersforcompetitivebidsshallbedepositedintoatenderbox.Tendersreceivedbye-mailshallbeprintedanddepositedintothetenderbox.E-basedbidsshallbehandledthroughsecureserversandonlyofficerswiththeauthorisedprofilesshallhaveaccesstotenderssentbye-mail.QuotationscollectedfromsuppliersbyOfficerswithinthePMUmustbeinsealedenvelopesandshallalsobedepositedinthetenderboxawaitingtenderopening.ThePMUshallberesponsiblefortheopeningandthesecurityofthetenderbox.Atenderboxshallatalltimesbeopenedinthepresenceofawitness. (7)Ifanymemberofstaffinvolvedinprocurementoracommitteememberhasdirectorindirectinterestinatenderorproposedtender,thatpersonshallassoonaspracticableafterrelevantfactshavecometotheirknowledge,declarethenatureoftheirinteresttotheAccountingOfficerandshallbeexcludedfromfurtherevaluationorapprovalofthattender. (8)AccountingOfficersshallensurethatthePMUandMDAskeeprecordsofprocurementproceedingsinaccordancewiththeprovisionsofthestatutesgoverningpublicprocurement.TheprovisionsofthePublicProcurementandDisposalofPublicAssetsrequirethatthePMUandMDAskeepaseparaterecordforeachprocurement,whichshallbemarkedwithareferencenumberforeasyidentification. (9)TheprocurementrecordinInstructionNo.0828shallcontaincorrectcopiesofalldocumentsandcommunicationrelatedtotheprocurementconcernedandshallincludeatleastthefollowing— (a) adescriptionoftheprocurementrequirement; (b) alistoftheparticipatingbiddersandtheirqualifications; (c) anyrequestsforclarificationsandanyresponsesthereto; (d) whereapplicable,astatementofthereasonforchoosingaprocurementmethodotherthancompetitivebiddingor

requestforproposals; (e) thebidprices; (f) asummaryoftheevaluationofbids; (g) asummaryofanyreviewproceedings,andtheresultingdecisions;and (h) suchotherinformationasmaybeprescribed. (10)AccountingOfficersshallensurethatprocurementrecordsarekeptforaminimumperiodofsixyearsfollowingcompletionorterminationofthecontractorcancellationoftheprocurementproceedings. (11)AccountingOfficersshallprovidethePRAZwithsummariesoftheirprocurementproceedingsatsuchtimesandinsuchformasthePRAZmayrequire.

Types of tender

69.(1)AllPMUswithinMinistriesshallberesponsibleforissuingallnationaltendersforthesupplyofgoods,servicesorworksandconsultancyservices.

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(2)Nationaltendersshallbeadvertisedinatleastonenationalnewspaperforaminimumofthirty(30)days.Wheneverpossible,localtendersarealsotobeadvertisedonaGovernmentwebsiteorbroadcastovertheradioortelevisionorthroughotherwebbasedmeansasappropriate.

International tender 70.(1)AllPMUswithinMinistriesshallberesponsibleforissuingallinternationaltendersforthesupplyofgoods,servicesorworks. (2)InadditiontotherequirementtoadvertiseinInstructionNo.0833,allinternationaltendersshallalsobeadvertisedinatleasttwoEnglishlanguageindependentinternationalnewspapersofwidecirculationandontheInternet,andwhereappropriate,thenoticemayalsobepublishedinarelevanttradepublicationortechnicalorprofessionaljournal.TendersshallalsobeadvertisedonaGovernmentwebsiteorthroughothermeansasareconsideredappropriate.

PART XIIIProcurement Process For Goods, non-consultancy services and Works

Internal purchase request for goods, non-consultancy services and works 71.(1)Theprocurementprocessforgoods,non-consultancyservicesandworksrequiresanauthorisedinternalrequisition,requestforquotation(RFQ),apurchaseorderandapaymentvoucher/invoiceverificationregardlessoftheprocurementmethodadopted.Theonlyexceptionistheprocurementofpublicutilitiesandthepaymentofrentalswherenopurchaseorderisraised.IntheseInstructions,publicutilitybillscoverpower,communicationandwater. (2)Theresponsibilityforinitiatingtheprocurementofgoods,non-consultancyservicesandworksisvestedwithuserdepartments.ThePMUshallonlyprocuregoods,non-consultancyservicesandworksthathavebeenrequestedbyaspecificuser. (3)BeforeapurchaserequestisinitiatedtheproposalshouldbereviewedagainsttheapprovedplanandthebudgetonthePFMSsystem.Wheretherequestisforthepurchaseofassets,specificationsshallcomplywiththerequirementsoftheProcurementRegulationsandshallalsotakeintoaccounttheusefullifeandsubsequentdisposaloftheassetsconcerned. (4)TheHead ofOffice or a SeniorOfficer delegated by them shall be responsible for approving internal purchase requisitionsraisedbytheirrespectiveuserdepartments.InapprovinginternalpurchaserequeststheHeadofOfficeshallensurethattheproposedpurchaseisinlinewiththeMinistry’sannualprocurementplanandavailableresourcesasreflectedonthePFMS. (5)AllinternalpurchaserequestsmustbeauthorisedbytheAccountingOfficeroraseniorofficerdelegatedbythem beforetheyaresubmittedtothePMU.TheAccountingOfficershallauthoriseinternalpurchaserequestsonlywhenthereareenoughuncommittedfundstomeettheestimatedcostsonthepurchaserequisition. (6)AccountingOfficers shall ensure that specifications for the procurement of goods, non-consultancy services and works are done in accordancewith procurement guidelines, best practice standards and in amanner thatwill promote faircompetition andnot result in fruitless andwasteful expenditure.The specifications shall notmake reference to a particulartrademarkorname,patent,designortype,specificoriginalproducerorserviceprovider,unlessthereisnootherpracticalwayofdescribingtheprocurementrequirements.Insuchsituationstermssuchas“orequivalent”shallbeincludedinthespecifications. (7)Allofficersrequestingforprocurementsshallensurethat,whereappropriate,thefollowinginformationisincluded— (a) thepurposeandobjectivesoftheobjectofprocurement; (b) afulldescriptionoftherequirement; (c) agenericspecificationtoanappropriatelevelofdetail; (d) afunctionaldescriptionoftherequirements,includinganyenvironmentalorsafetyfeatures; (e performanceparameters,includingoutputs,timescalesandanyindicatorsorcriteriabywhichsatisfactoryperformance

canbejudged; (f) processandmaterialsdescriptions; (g) inspectionandtestingrequirements;and (h) anyapplicablestandards(wherepossible internationalstandardsornationalstandards incorporating international

standards). (8)All approved purchase requests shall be posted on the PFMS. It is the responsibility ofAccountingOfficers to ensure that officers involved in the procurement function comply with the authorisation profiles provided by the Accountant-General in thePFMS.Anyofficerwhogivesanotherofficeraccess to theirprofile, commitsanactoffinancialmisconductundertheActandanoffenceintermsofsection4oftheOfficialSecretsAct. (9)TheHeadofthePMUshallberesponsibleforprocessingallauthorisedinternalpurchaserequestsforgoods,non-consultancyservicesandworks. Procurement methods for goods, non-consultancy services and works 72.(1)ThethresholdvaluessetintheProcurementRegulationsfromtimetotime;thevalue;potentialsource;andnatureandcircumstancessurroundingtheprocurementrequestforgoods,non-consultancyservicesandworksdeterminestheprocurementmethodthatAccountingOfficersshalladopt. (2)AccountingOfficersshallensurethatofficersinvolvedinprocurementcomplywiththeprocurementregulationsandlimitssetbythePRAZfromtimetotime. (3)AccountingOfficersshallprocuregoods,non-consultancyservicesandworksfromboththenationalandinternationalmarket.ThePMUshalluseonlythosestandardbiddingdocumentsproducedandissuedbythePRAZandinaccordancewiththeprovisionsofthestatutegoverningpublicprocurementandRegulationsaswellasguidelinesissuedfromtimetotime.


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(4) It is the responsibilityofAccountingOfficers to ensure that all relevantbiddingandpre-qualificationdocuments provideobjectivedescriptiveinformationthatdoesnotunnecessarilyfavouraparticularbidderbystatingthedesiredperformanceoroutputrequirementsoftheobjectoftheprocurementwhereverpossibleratherthandesignordescriptivecharacteristics. (5) The Head of PMU shall ensure that the detailed procurement requirements of a tender, with respect to quality andquantity,includinganycertification,testingandtestmethodsorothermeansforevaluatingtheconformityoftheperformanceofthecontracttotheprocurementrequirements;aresetoutclearlyinthebiddingdocuments. Competitive bidding 73.(1)Theprocurementofgoods,worksandnon-consultancyservicesshallbeundertakenbymeansofasinglestagecompetitivebidding,advertisedinaccordancewiththeprovisionsofthestatutegoverningpublicprocurementandinamannerthatensuresequalaccesstoalleligibleandqualifiedbidderswithoutdiscrimination.Thesinglestagecompetitivebiddingentailsaskingbidderstosubmitoneenvelopecontainingthetechnicalproposalandthepriceproposal.Theenvelopeisopenedinthepresenceofbidders’representativeswhochoosetoattendandthetotalamountofeachbidandanyalternativebid,andotherrelevantdetailsarereadoutandrecorded.Thebidisevaluatedandtheawardofcontractismadetothelowestevaluatedsubstantiallyresponsivebidder. (2) The Head of PMU shall ensure that competitive bidding is only held in two stages in accordance with the provisionsofthestatutegoverningpublicprocurementandwithintheguidelinesgivenintheregulations.Inthecaseofparticularlyhighvalueorcomplexprocurement;competitivebiddingmaybeprecededbypre-qualificationforthepurposesofidentifying,priortothesubmissionofbids,thosebiddersthatarequalified.AccountingOfficersshallensurethatwherecompetitivebiddingisprecededbypre-qualificationthePMUacceptsallthecompaniesthatmeettheminimumthresholds. (3)ThemethodofprocurementadoptedshallbedeterminedbythethresholdvaluessetintheProcurementRegulationsfrom time to time. (4)Whenamethodofprocurementotherthancompetitivebiddingisused,AccountingOfficersshallensurethattheirMDAsinclude,intherecordoftheprocurementproceedings,awrittenjustificationofthedecisiontoutilisetheprocurementmethod,includingthegroundsfortakingthatdecision. (5) Where the cost of procurement of goods, works or non-consultancy services exceeds the estimated cost approvedintheannualprocurementplan,thePMUshalladvisetheAccountingOfficerandjustifywhysuchprocurementshouldbecarriedoutatsuchcost.

PART XIV use oF Procurement methods other than comPetitive biddinG

Restricted bidding method

74.(1)TherestrictedbiddingmethodofprocuremententailsaprocessinwhichthebiddersarelimitedtothoseselectedorinvitedbytheMDAs.AccountingOfficersshallensurethatthismethodisused— (a) when the time and cost of considering a large number of bids is disproportionate to the estimated value of the

procurementrequirement; (b) whereurgencyrendersimpracticablethetime-limitprescribedforbiddingperiod; Providedthattheurgencyshallnotbeduetotheprocuringentity’sunjustifiabledelay;and (c) forprocurementcontractswithanestimatedvaluethatdoesnotexceedtheprescribedthreshold. (2)AccountingOfficersshallensurethat— (a) theirMDAsinvitebidsfromastandinglistofqualifiedbiddersestablishedandmaintainedbythePMU;and (b) inallotherrespects,theproceduresforthesinglestagecompetitivebiddingmethodareemployed.

Direct procurement method

75.(1)ThedirectprocurementmethodofprocurementisonewhereMDAsprocuretheirrequirementsfromonebidderorsupplierwithouthavingreceivedbidsfromotherbidders. (2)AccountingOfficersshallensurethatthedirectprocurementmethodisonlyadoptedinthefollowingcases— (a) wherenoresponsivebidshavebeensubmittedinresponsetoacompetitivebiddingprocedure,onconditionthatthe

requirementsoftheinitialbidarenotsubstantiallymodified; (b) when,fortechnicalorartisticreasons,orforreasonsconnectedwithprotectionofexclusiverights,thecontractmay

beperformedonlybyaparticularsupplierandnoreasonablealternativeorsubstituteexists; (c) forreasonsofextremeurgencybroughtaboutbyeventsnotattributabletoanythingforeseenbytheMDAsandthe

productsorservicescannotbeobtainedintimebymeansofcompetitivebiddingprocedures; (d) foradditionalsuppliesofgoodsorservicesbyasupplier,whereachangeofsupplierwouldcauseproblemsofinter-

changeabilityorincompatibilitywithexistingequipmentordiscontinuityofservices,whichwouldcausesignificantinconvenienceorsubstantialduplicationofcoststotheMDAs;

(e) whereMDAsprocureaprototypeorafirstproductorservicefromaresearchinstitutewhichisthendevelopedattheirrequestforaparticularprocurementcontractforresearch,experiment,studyororiginaldevelopment;

(f) whenadditionalserviceswhichwerenotincludedintheinitialcontractbutwhichwerewithintheobjectivesoftheoriginalbiddingdocumentshave, throughunforeseencircumstances,becomenecessary tocomplete the servicesdescribedtherein,providedthatthetotalvalueofcontractsawardedfortheadditionalservicesshallnotexceedfifty(50)percentoftheamountoftheoriginalcontract;

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(g) fornewservicesthatrepeatsimilarservicesprovidedunderaprocurementcontractawardedfollowingthecompetitivebiddingmethodofprocurement,wheretheprocuringentityindicatedintheoriginalprocurementnoticethatadirectprocurementmethodmightbeusedinawardingcontractsforsuchnewservices;

(h) foracquisitionsmadeunderexceptionallyadvantageousconditionsfromunusualdisposalssuchaslegalforfeitures,liquidation,insolvency,judicialsaleinexecutionorotherforcedsaleordisposal;

(i) fortheprocurementofimmovableproperty;and (j) fortheprocurementofsparepartsofaproprietarynature. Request for quotations method

76.(1)TherequestforquotationsmethodentailsaprocessinwhichMDAssolicitatleastthreecompetitivequotationsfortheirprocurementrequirementfromreputablesuppliers,andtheprocurementrequirementisbelowtheprescribedthreshold. (2)ItistheresponsibilityofAccountingOfficerstoensurethattherequestforquotationsmethodiseffectedinaccordancewiththeproceduresprescribedbyPRAZfromtimetotime. Tender invitation

77.(1)Incompetitivebiddingprocedures,bidsshallbeinvited— (a) throughthepublicationofanannouncementofbiddingproceedingsorfromthelistofpre-qualifiedbidderswhere

pre-qualificationisused;or (b) fromashortlistofbiddersinthecaseofrestrictedbidding. (2)WherethePMUconsidersthatitisnecessarytoensurewidecompetition,itmaysendthenoticedirectlytopotentialbiddersafterthedateofpublicationofthenotice.TheHeadofthePMUshallensurethattheunitkeepsarecordofanybidderstowhomthenoticeissentdirectlyandthisshallformpartoftheprocurementrecord. (3)Allinvitationstotendermustallowreasonabletimeforpotentialproviderstorespond.Thebiddingperiodshallstartonthedateofthefirstpublicationoftheannouncementandshallendonthedateofthebidsubmissiondeadline.Theminimumbiddingperiodforeachprocurementmethodshallbeinaccordancewithguidelinessetbytheprocurementregulatoryauthority. (4)All invitationstotendermustcontainsufficient informationtoenablepotentialbidderstopreparetendersthatareresponsivetotheneedsoftheMinistry.Wheregoods,non-consultancyservicesorworkstobeprocuredcannotbedescribedindetailintheadvertisement,additionalinformationmustbereadilyavailablefromtheMinistryoraGovernmentwebsite.Theinvitationshallinclude— (a) theevaluationcriteriatobeused; (b) anyrequirementforabidsecurity; (c) anyrequirementforaperformancesecurity; (d) anyrequirementforaftersalesservice;and (e) theamountandessentialtermsoftheinsurancethatthesuccessfulbiddermayberequiredtoobtain. (5)ThePMUshallkeeparecordofthenames,postaladdresses,telephonenumbersandemailaddressesofallbidderstowhominvitationstobidareissuedtogetherwiththedetailsoftherelevantcontactpersons.Acopyofthisrecordshallbefiledintheprocurementrecords. (6)TheHeadofthePMUshallensurethatallpotentialbiddersthatrespondtoatenderorhavebeenpre-qualifiedareprovidedwithbiddingdocuments,inanexpeditiousandnon-discriminatorymanner. (7)TheDirectorofFinanceshallensurethatthepricechargedforbiddingdocumentsonlyreflectsthecostofprintinganddistributingthedocuments.Wherebiddingdocumentsaredeliveredbyelectronicmeans,theyshallbefreeofcharge. (8)ThePMUshallensurethatproceduresrelatingtotimeframesonbidclarifications(duringbiddingandevaluation),formofcommunication,bidmodificationsandtenderextensions,arehandledinaccordancewiththeprovisionsofthePublicProcurementandDisposalofPublicAssetsActandregulations. (9)AccountingOfficersshallensurethatthecancellationofprocurementproceedingsisavoidedwheneverpossibleexceptincasesallowedbytheprovisionsofthePublicProcurementandDisposalofPublicAssetsAct.Intheeventofcancellation,theAccountingOfficershalltakethenecessaryactiontoinformallthepotentialbidders. (10)MDAsmay,ifsospecifiedinthebiddingdocumentsorinarequestforproposalsorarequestforquotation,rejectallbids,proposalsorquotationsatanytimepriortotheiracceptance.Thejustifiablegroundsforrejectionofbids,proposalsorquotationssubmittediswhentheyarenotsubstantiallyresponsive,orwherethereisevidenceoflackofcompetition.TheAccountingOfficershallgivenoticeoftherejectionpromptlytoallparticipatingbidders. (11)Where no responsive bids are received or procurement proceedings are otherwise unsuccessful, the PMU shall investigatethefailedprocurementproceedingsandrecordintheprocurementrecordthereasonforfailureandthecourseofactiontaken. (12)AccountingOfficersshalldisqualifybiddersiftheyfindthattheinformationsubmittedinabidconcerningabidder’squalificationsisfalseormisleadingandmateriallyinaccurateormateriallyincomplete. (13)It is theresponsibilityof theHeadofPMUtoensure that theproceduresforbidsubmission,bidamendmentorwithdrawalandbidopeningarecarriedoutinaccordancewiththeguidelinessetoutinthestatuteandregulationsgoverningpublicprocurement.LatesubmissionsshallnotbeacceptedandshallbehandledinaccordancewithprovisionsofthePublicProcurementandDisposalofPublicAssetsAct.


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(14)AccountingOfficersareprohibitedfromnegotiatingwithabidderwithrespect toabidsubmittedbythebidder.Theonlyexceptioniswherethelowestevaluatedresponsivebidexceedsthebudgetforthecontractbyasubstantialmargin (inaccordancewithPRAZthresholds).InsuchcasesthePMUafterinvestigatingthecausesfortheexcessivecostmay— (a) considerrequestingnewbids;or (b) negotiateacontractwiththelowestevaluatedbiddertotrytoobtainasatisfactorycontractthroughareductioninthe

scopewhichcanbereflectedinareductionofthecontractprice. Request for quotations for goods, non-consultancy services and works 78.(1)Allrequestsforquotations(RFQ)shallbegeneratedthroughthePFMS.ManualRFQsshallonlybeissuedonoccasionswherethePFMSisnotoperationalorwhentheissuingofficedoesnothaveimmediateaccesstothePFMS.TheDirectorresponsiblefortheprocurementfunctionshallensurethatthesystemforcommunicatingandthedeliveryofrequestsforquotations(RFQ)tovendorsisinwritingandguaranteeshonesty,transparencyandfairness. (2)Forthepurposesoftheseinstructions“inwriting”meanscommunicationinhandormachinewrittentypeandincludesmessagesbyfacsimile,e-mailandotherelectronicformsofcommunications”.

Receipt and opening of bids

79.(1)TheHeadofthePMUoranOfficerdelegatedbythemshallberesponsibleforreceivingbidsfrompotentialsuppliers,contractorsandconsultants.QuotationscollectedfromsuppliersbyOfficerswithinthePMUshallbearthesignatureoftheofficerconcernedandmustbeinsealedenvelopes.Allbidsshallbedepositedinalockabletenderboxuntiltenderopening.Bidsreceivedthroughe-mailshallbeinPDFformatandshouldbeprintedanddepositedintothelockabletenderbox. (2)TheHeadofPMUshall be responsible formanaging theparticipationof bidders in procurement proceedings inaccordancewiththeprovisionsofthePublicProcurementandDisposalofPublicAssetsAct,Regulations,anypronouncementissuedbyPRAZandotherprovisionsoflaw.ThePMUshallkeeparegister,whosecopyshallbemadeavailabletoanybidderonrequest,oftheattendanceofbiddersthatcapturesthefollowinginformationforeachopenedbid— (a) thenameofthebidder; (b) thetotalamountofthebid; (c) anydiscountsoralternativesofferedbythebidder; (d) whetherornotbidsecurityhasbeengiven,ifrequired;and (e) anyessentialsupportingdocuments.

Selection of vendor and notice of award of tender 80.(1)TheselectioncriteriaforvendorsmustbeinlinewiththeprovisionsofthePublicProcurementandDisposalofPublicAssetsActandtheHeadofPMUshallensurethatitistransparent,fair,costeffectiveandcompetitive. (2)Theselectionofprovidersofgoods,non-consultancyservicesorworksshallbeinformedbytheguidanceprovidedbythePublicProcurementandDisposalofPublicAssetsAct;Regulations;ProcurementGuidelines;principlesofgenderequalityandnon-discrimination;theIndigenisationpolicyframework;andanyotherpronouncementsrelatingtoprocurementissuedfromtimetotime. (3)ItistheresponsibilityofthePMUtoadjudicateandrecommendtendersforaward.WheneveratenderadjudicationprocesshasbeencarriedoutbyanEvaluationCommittee,theAccountingOfficershallensurethatminutesofproceedingsofeverymeetingandacomparativescheduleforpricesofgoodsandservicestenderedforarecompiled.TheminutesoftheEvaluationCommitteeshallbesignedandnumberedsequentially. (4)ThedecisionofthePMUorcommittee,thebasisfortenderawardandtheamountofawardtotheapprovedsuppliershouldbeclearlystatedonthecomparativescheduleandintheminutes.AllPMUandEvaluationCommitteeminutesshouldbefiledforauditandfuturereference. (5)TheAccountingOfficeroraSeniorOfficerdelegatedbythemshallmonitorandscrutinisethedecisionsofthePMUorEvaluationCommitteestoensuretransparency,genderresponsiveness,non–discriminationandoptimumvalueformoneyonallpublicprocurementactivities. (6)In thecaseofcontractsawardedbywayofcompetitivebidding, theAccountingOfficershall formally informalltenderersoftheoutcomeofthebid.Thenoticegiventoallbiddersshallspecifythenameandaddressoftheproposedsuccessfulbidderandthepriceofthecontract. (7)TheAccountingOfficershallensurethatthecontractwiththesuccessfulbidderisnotsigneduntilatleast14dayshavepassedfollowingthegivingofthenoticereferredtoinInstructionNo.0900.

Signing of contracts 81.(1)TheresponsibilityforsigningcontractslieswiththeAccountingOfficersorpersonsdelegatedbytheminwriting.ContractsshallcomeintoeffectasstatedintheContractAgreement. (2)ItistheresponsibilityoftheAccountingOfficerstoensurethatprocurementcontractsareawardedtothebidderwho— (a) submittedthelowestbidwhichmeetsthepriceandnon-pricecriteriaspecifiedinthebiddingdocuments;or (b) offersthemosteconomicallyadvantageoustender. (3)AccountingOfficersshallrequestaperformancesecurity,whereapplicable,tosecurethecontractor’sobligationto fulfilthecontract.Therequirementforaperformancesecurityshallbesetoutinthecontractandthecontractorshallberequestedto provide such security prior to contract signing. Procurement Regulations provide guidelines regarding requirements forperformancesecurities.

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(4)TheHeadofthePMUshallensurethatthesuccessfulbidderisnotified,withinthebidvalidityperiodandsubject toanyinterveningcomplaintsthatmayarise,oftheproposedawardandthetimewithinwhichthecontractshallbesigned. (5)Intheeventthatthesuccessfulbidderfailstosignawrittencontractwhenrequiredtodosoorfailstoprovideanyrequiredsecurityfortheperformanceofthecontractpriortothetimeforcontractsignature,theAccountingOfficershallacceptthenextrankedbidderfromamongtheremainingbidsthatareinforce.However,inselectingthenextrankedbidder,theAccountingOfficershallcomplywiththeprovisionsofthestatutegoverningpublicprocurementaswellaswiththenoticerequirementsstatedin Instruction No. 0900. Issue of purchase orders

82.(1)AllpurchaseorderstosuppliersshallbegeneratedthroughthePFMS.Onlyofficerswithauthorisedprofilesforpurchasingshouldexecutethisfunction.TheprovisionsofInstructions0843onprovidingaccesstounauthorisedofficersalsoapply. (2)Intheeventofthesystemnotworking,purchasingofficersmayissuemanualpurchaseorders.ThemanualpurchaseordersshouldbeenteredintothePFMSsystemassoonasthesystemstartsworking.Nopurchaseordershouldremainoutsidethesystemforaperiodexceedingthreedayswithoutreasonablecause.Nomanualpurchaseordershallbeissuedwherethereisnoadequatebudgetprovision. (3)ForofficeswithnoimmediateaccesstothePFMSthepurchaseordersshallbedonemanually,butmustbecapturedonthePFMSwithin14days.Itisanactofmisconductthatattractsdisciplinaryactiontohavepurchasesthatremainoutsidethesystemforaperiodexceeding14days. (4)TheHeadofPMUshallensurethatallvendorsselectedreceiveofficialpurchaseorders.Thepurchaseordersmay beemailed,posted,handdeliveredtoorcollectedbytheselectedvendor. (5)Theofficersresponsibleforplacingordersshallkeeparegisterofallpurchaseordersissued,tofacilitatefollowingupoforders. (6)Officersauthorisinginternalpurchaserequisitionsshallnotbeallowedtoalsoauthorisepurchaseorders. (7)The generation of a purchase ordermust be supported by sufficient documentation as proof that the appropriateprocurementregulationshavebeencompliedwith.Thedocumentaryproofshouldinclude— (a) copiesofwrittenquotations; (b) thecomparativescheduleofpricesinwhichthetenderawardandrecommendationsaremade;and (c) theevaluationCommitteeminutes.

Purchases exempted from tender procedures

83.(1)Goodsandservicesthatarereceivedbypublicofficerssuchasentitlementsthatarenotpaidthroughthepayrollsystemlikeairtime,databundlesandinternetsubscriptionsareexemptfromtenderprocedures. (2)ThePurchasesforallexempteditemsareauthorisedusingaPaymentVoucheronly.

PART XVProcurement Process For consultancy services

Request for proposal

84.(1)ThePMUshallusearequestforproposal(RFP)for theprocurementofconsultancyservices.TheRFPshallbegeneratedthroughthePFMSandshallbeusedonshortlistedconsultantsandforservicesthatarewithinthefinancialthresholdsprescribedbyPRAZfromtimetotime. (2)WheretheestimatedvalueoftheprocurementexceedsthefinancialthresholdprescribedinProcurementRegulations,thePMUshallseekexpressionsofinterest(EOI)inordertocomeupwithashort-listofconsultants.TheEOIshallbesoughtthroughpublishingofnoticesinalocalorinternationalnewspaperofwidecirculationandontheInternetandontheMDAs’website.Whereappropriate,thenoticemayalsobepublishedinarelevanttradepublicationortechnicalorprofessionaljournal. (3)ForconsultancyserviceswhosevalueislowerthanthefinancialthresholdprescribedintheProcurementRegulations,theshort-listforconsultantsmaybeestablishedfrommarketknowledgeorothersourcesofinformation.Aspartofthepre-qualificationprocedures,MDAsshallprepareashort-listofnotfewerthanthreeandnotmorethansixfirmswhichtheyshallprovidetherequestforproposalsforservices.Theshort-listmustbeonthebasisthatthefirms— (a) areofthesamecategoryandsimilarcapacityandbusinessobjectives;and (b) havethecapacitytoperformtherequiredservices. (4)InthecaseofconsultancyassignmentswhichhaveanestimatedvalueabovethethresholdsprescribedintheProcurementRegulationsorareparticularlycomplex,thePMUshallutiliseadvertisementsasstatedinInstructionNo.0833. (5)TheHeadofPMUshallensurethattheRFPssenttoshortlistedbiddershavesufficientinformationtoenablethemtoparticipateintheprocurementproceedingsandtosubmitproposalsthatareresponsivetotheneedsoftheirMinistry.Theinformationprovidedtoshortlistedbiddersshallinclude— (a) thenameandaddressoftheMinistry,DepartmentorAgency;


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(b) thenature,time-frameandlocationoftheservicestobeprovided; (c) theconsultant’stermsofreference(TOR)andthemannerinwhichheorsheistoprovidetheservices; (d) criteriatobeusedinevaluatingandcomparingbids,andtheirrelativeweightsascomparedtoprice; (e) thetermsoftheprocurementcontract,andthemannerinwhichitwillenterintoforce; (f) instructionsforthepreparationandsubmissionofbids,andthedeadlinefortheirsubmission; (g) theprocedureforthefinalselectionofbids; (h) noticeofanyrules,restrictionsorprecautionsagainstconflictsofinterest,fraudorcorruption,includingpotential

debarringofpersonswhocontravenethoserules,restrictionsorprecautionsfromparticipatinginfutureprocurements;and

(i) anyotherinformationthatmaybeprescribedorstatedinstandardbiddingdocumentsissuedbyPRAZ.

Methods of soliciting, evaluating and selecting consultant bids 85.ThePMUshallusethemethodslistedinTable1whenselectingconsultants.TheAccountingOfficershallensurethatthePMUandMDAspromotetheprinciplesofgenderequalityandnon-discriminationwhenselectingconsultants.

Table 1: Selection Methods for Consultants

Selection Method Condition of Use

1 Quality and Cost Based Selection (QCBS)

Method used whenever practicable and appropriate

2 Selection under Fixed Budget (SFB)

Method used where the consultancy service sought is simple and precisely defined and the budget is fixed.

3 Least Cost Selection (LCS) Method used where the consultancy service sought is of a standard or routine nature and well-established practices and standards exist, and in which the cost is small.

4 Quality based selection Method appropriate where the consultancy service sought is of a highly technical nature.

5 Selection amongst community Service Organisations (CSO)

Method used where the involvement and knowledge of community needs, local issues and community participation are important in the preparation, implementation and operation of a community development project.

6 Single Source Selection (SSS) Method used: (i) forservicesthatcontinueapreviouscompletedassignment;(ii) forverysmallassignments;(iii) whenonlyoneconsultantisqualifiedorhasexperienceofexceptional

worthfortheassignment;and(iv) where,owingtoacatastrophicevent,thereisanurgentneedforthe

servicesought.7 Selection of Individual Consultants

(SIC)This method shall be used when:

(i) thequalificationandexperienceoftheindividualaretheparamountrequirement;

(ii) teamsofpersonnelarenotrequired;and(iii) nooutsideprofessionalsupportisrequired.

PART XVIasset manaGement

Evaluation of consultancy proposals and tender award

86.TheselectioncriteriaforconsultantsmustbeinlinewiththeprovisionsofthePublicProcurementandDisposalofPublicAssetsAct.ItistheresponsibilityoftheHeadofPMUtoensurethattheevaluationprocessistransparent,fair,costeffectiveandcompetitive.Eachevaluationmethodispresentedbelow.

Quality and cost based selection

87.(1)TheQCBSmethodentailsacompetitiveprocessamongshort-listedfirmsthattakesintoaccountthequalityoftheirbidsandthepriceoftheservicestheyoffer,therelativeweightgiventoqualityandpricebeingdeterminedforeachcaseaccordingtothenatureoftheservicesoughtbythelineMinistry. (2)Biddersshallsubmittheirtechnicalbidsandtheirfinancialbidsinseparatesealedenvelopes.Theevaluationofproposalsshallbecarriedoutintwostages.Thetechnicalbidsshallbeevaluatedfirstastothequalityoftheservicesoffered,andthenthefinancialbidsastothepriceoftheservices.Evaluatorsoftechnicalproposalsshallnothaveaccesstothefinancialbidsuntilthequalitativeevaluationiscompleted. (3)Inevaluatingthetechnicalbids,thePMUshalltakeintoaccount,inrelationtoeachbid—

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(a) theconsultant’srelevantexperiencefortheassignment; (b) themannerinwhichtheserviceisproposedtobeprovided,includinganytransferofknowledgeifthatisspecified

inthetermsofreferenceintherequestforproposals; (c) thequalificationsofthekeypersonnelwhowillprovidetheservices;and (d) suchothercriteriaasmaybeprescribed. (3)ThePMUshallensurethattheweightsusedinanevaluationareappropriatetothespecificassignmentandshallbetheonesstatedinthebiddingdocumentsforthespecificassignment.AccountingOfficersshallconsideratechnicalproposalunsuitableandshallrejectatthefirststageifitdoesnotrespondtoimportantaspectsoftheTORoritfailstoachieveaminimumtechnicalscorespecifiedintheRFP. (4)WheretechnicalproposalsdonotmeettheminimumqualifyingmarkorareconsiderednonresponsivetotheRFPandTOR,thePMUshallnotifytheaffectedconsultantsthattheirfinancialproposalswillnotbeevaluatedandshallbereturnedtothemunopenedaftercontractsigning. (5)Whereconsultancytechnicalproposalshavesecuredtheminimumqualifyingmark,thePMUshallsimultaneouslynotifytheconsultantsonthedate,timeandplacesetfortheopeningofthefinancialbids.TheHeadofthePMUshallensurethatdeterminationofopeningdateofthefinancialproposalsallowssufficienttimeforconsultantstomakearrangementstoattendtheopening. (6)AccountingOfficersshallonlyconsiderthepriceofaproposalafterthecompletionofthetechnicalevaluation.ThePMUshallopenthefinancialproposalspubliclyinthepresenceofrepresentativesoftheconsultantswhochoosetoattend.TheHeadofPMUortheprocurementofficerresponsiblefortheopeningofthefinancialbidsshallensurethatthenameofthefirm,thequalityscoreachievedbythebid,andtheproposedpriceoftheservice,asstatedinthefinancialbid,isreadaloudandrecorded. (7) Inconsidering thefinancialbids, thePMUshalldealwithcorrectionoferrors,conversion tosinglecurrencyandmethodologyforscoresandweightsinaccordancewiththeconditionsspecifiedinthebiddingdocumentsaswellastheguidelinessetoutinthePublicProcurementandDisposalofPublicAssetsActandProcurementRegulations. (8)Thetotalscoretobeawardedtoabidshallbeobtainedbyweightingthequalityandfinancialscoresachievedbythetechnicalbidandthefinancialbidrespectivelyandaddingthosescores.Afterascertainingthetotalscorestobeawardedtobids,theHeadofPMUshallensurethatthebidderwiththehighesttotalscoreisinvitedwithoutdelaytoenterintonegotiationsregarding— (a) the terms of reference of the consultant; (b) themannerinwhichtheconsultantistoprovidetheservice; (c) personnelneededtoprovidetheservice; (d) anyserviceorfacilitytobeprovidedbytheprocuringentity; (e) specialtermsandconditionsoftheprocurementcontract;and (f) anyothermattersthatmaybeprescribedorthattheprocuringentityandthebiddermayconsidernecessarytodiscuss: Providedthatthenegotiationsshallnotresultinanysubstantialalterationinthetermsofreferenceorthetermsoftheprocurementcontract,andthepriceoftheserviceshallnotbenegotiated. (9)IfnegotiationsinInstructionNo.0941failtoresultinanacceptableprocurementcontract,theAccountingOfficershall— (a) terminatethenegotiations,informingthefirmconcernedinwritingofthereasonsfortermination;and (b) invitethenextrankedfirmfornegotiationsandaftersuchinvitationthePMUshallnotreopentheearliernegotiations. (10)Afternegotiationshavebeensuccessfullycompleted,itistheresponsibilityoftheAccountingOfficertopromptlynotifyotherfirmsontheshort-listthattheywereunsuccessful.TheAccountingOfficershallnotsignaprocurementcontractwiththesuccessfulfirmuntilatleastfourteendayshaveelapsedfollowingthegivingofthatnotice.

Selection under fixed budget

88.(1)TheSFBmethodentailsaprocesswherebyMDAsevaluatethebidssubmittedbyshort-listedbidders— (a) firstaccordingtothequalityoftheservicestheyoffer,disregardingthepriceatwhichtheyofferthem; (b) thenaccordingtothepriceatwhichthebiddersoffertheirservices,rejectingallthebidsthatexceedtheproposed

budget;and (c) thenselectingfromtheremainingbidstheonewhosequalityofservicerankshighest. (2)WhereMDAschoosetoemploytheSFBmethod,theHeadofPMUshallensurethattheRFPindicatestheavailablebudgetandrequestthefirmstoprovidetheirtechnicalandfinancialproposalsinseparateenvelopesandwithinthebudget. (3)TheevaluationofthequalityofalltechnicalbidssubmittedshallbecarriedoutinaccordancewiththeQCBSmethod.ThefinancialbidsshallbeopenedinpublicandreadoutandtheAccountingOfficershallrejectanybidsthatexceedthebudgetstatedintheRFP. (4)ItistheresponsibilityofthePMUtoselectfromtheremainingbiddersthetechnicalbidthatachievedthehighestqualityscoreandtoinvitethebiddertonegotiateaprocurementcontract.


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Least Cost Selection (LCS)

89.(1)TheLCSmethodentailsaprocesswherebytheMDAsestablishminimumstandardsforthequalityofservicerequired,and— (a) thebidswhichofferlessthanthoseminimumstandardsarerejected;and (b) oftheremainingbidstheoneofferingtoprovidetheserviceatthelowestpriceisaccepted,sothebidderscompete

onlyonprice. (2)WhenMDAschoosetoemploytheLCSmethod,theHeadofPMUshallensurethattheminimumqualifyingstandardsarespecifiedintheRFPandbiddersarerequestedtoprovidetheirtechnicalbidsandtheirfinancialbidsinseparateenvelopes. (3)Theopeningandevaluationofthequalityofalltechnicalbidssubmittedshallbecarriedoutfirst,andthosethatfailtomeettheminimumqualifyingstandardsshallberejected. (4)Followingevaluationofthetechnicalbids,thefinancialbidsoftheremainingbiddersshallbeopenedandtheAccountingOfficershallselectthebidderofferingtoprovidetheservicesoughtatthelowestprice,andshallinvitethebiddertonegotiateaprocurementcontract.

Quality based selection method

90.Thequality-basedselectionmethodentailsaprocesswherebytheMDAsestablishthebesttechnicalofferregardlessofcost,subjecthowevertotheAccountingOfficerengaginginnegotiationsaroundtheissueofcosttoachievevalueformoney.

Selection amongst community service organisations

91.(1)TheCSOmethodentailsaprocesswherebyallormostofthefirmsonthePMU’sshort-listconsistsofcommunityserviceorganisationsbecausetheservicesoughtrequireslocalparticipationandknowledgeoflocalissuesandcommunityneeds. (2)UndertheCSOmethod,technicalbidssubmittedshallbeevaluatedusingcriteriareflectingtheuniquequalificationsofcommunityserviceorganisations,suchasvoluntarism,non-profitstatus,localknowledge,scaleofoperation,andreputation.

Single-source selection

92.(1)TheSSSmethodentailsaprocesswherebytheAccountingOfficer,withoutinvitingcompetitivebids,selectsafirmtoprovideaserviceeventhoughotherfirmsareavailabletoprovidetheservice. (2)UndertheSSSmethod,theAccountingOfficershallensurethatthePMU— (a) prepareswrittentermsofreference,andrequestfromprospectivefirmsinformationregardingtheirqualifications,

experienceandcompetence; (b) drawsupashort-listofprospectivefirms; (c) fromtheshort-list,selectthefirmthatthePMUconsidershasthemostappropriatequalifications,experienceand

competence; (d) invitestheselectedfirmtosubmitacombinedtechnicalandfinancialbid;and (e) ifthebidsubmittedbytheselectedfirmisresponsiveandotherwisesatisfactory,negotiateaprocurementcontract

withthatfirm.Selection of individual consultants

93.(1)TheSICmethodentailsaprocesswherebytheAccountingOfficer,without invitingcompetitivebids,selectsanindividualperson,ratherthanafirmthatisanorganisationorassociation,toprovideaserviceeventhoughotherpersonsareavailabletoprovidetheservice. (2)TheproceduretobefollowedwhenemployingtheSICmethodshallbethesameasthatfortheSSSmethodinInstructionNo. 0956. Confidentiality in procurement

94.(1)TheHeadofthePMUshallensurethatbidderdebriefingiscarriedoutinaccordancewiththeprovisionsofProcurementpoliciesandproceduresandinamannerthatistransparent,timelyandnon-discriminatory.ItistheresponsibilityoftheHeadofPMUandofficersinvolvedinprocurementtoensurethatthedebriefingdoesnotdisclosedetailsofanyotherbids,otherthaninformationthatispubliclyavailablefrombidopeningsorpublishednotices. (2)AccountingOfficersshallpromptlypublishallprocurementcontractawardswithinonemonthfromawardinaccordancewithguidelinesissuedbyPRAZ.AcopyofsuchnoticeshallbesenttoPRAZforpublication. (3)AccountingOfficers shallmaintain procurement records and prepare reports as per the provisions of the PublicProcurementandDisposalofPublicAssetsActandtemplatesprovidedbythePRAZ.TheHeadofPMUshallensuretherecordsaremarkedwiththerelevantprocurementnumberandtheinformationcontainedcomplieswiththerequirementsofthePublicProcurementandDisposalofPublicAssetsAct. (4)TheHeadofPMUshallensurethatthedutiesrelatingtorecording,preparationanddisclosureoftenderdetailsarecarriedoutinamannerthatavoidsexposureofproprietarycommercialinformation. Receipt of goods, services, works and consultancy services

95.(1)ItistheresponsibilityofAccountingOfficerstoputinplacesystemsforreceivingandinspectinggoods,worksandservicesbeingprocured.AccountingOfficersshallensurethattheirMDAscarefullyinspectandexaminethecomplianceofgoods,services,worksorconsultancyserviceswiththerequirementssetforthinprocurementcontracts.

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(2)ThestatutegoverningpublicprocurementallowsAccountingOfficers toappointanInspectionCommitteefor thepurposesofcarryingouttheinspection,aswellasaspecialtechnicalcommitteetoinspectandaccepttheperformanceofabidderunderacontract.IncaseofanyinconsistencytheAccountingOfficershallprepareareportontheproblemandrefrainfromacceptingcontractperformance. (3)It is theresponsibilityoftheofficersinadministrationorstorestoreceivegoodsorservices.Indischargingtheseduties,receiversofgoodsandservicesshouldsatisfythemselvesthatthegoodsorservicesmatchthepurchaseorderorcontractandareingoodorder.Theyshouldsignthegoodsreceivednoteorthedeliverynotetoindicatetheirsatisfactionwiththegoodsorservicesreceived.AllitemsreceivedshouldhaveaPFMSgeneratedGoodsReceivedNote(GRN).TheGRNshouldberaisedonlywhengoodshavebeenreceived. (4)Anydiscrepanciesbetweenthegoodsorservicesorderedandthosereceived,mustberecordedinaregister.Eachentrymustbesignedbytheagentmakingthedelivery.Thesuppliershallbenotifiedimmediatelyandinwritingofthediscrepancy.Ifgoodsdelivereddonotmatchtheorder,intermsofdescription,specification,price,quantity,notinagoodstateorquality,theyshouldnotbereceivedbutimmediatelyreturnedtosupplier. (5)Theofficersresponsibleforreceivinggoodsshallrecordtheitemsinthegoodsreceivedregistersandfilethegoodsreceivednotesindateorder.Thegoodsreceivedregistershouldcontaininformationrelatingtothedescriptionofitems,supplierandserialnumberswhereappropriate. (6)Uponreceiptof thesuppliers’ invoice,pricesmustbematchedwiththecontractor thepurchaseorders.Nopricevariationsareallowedondeliveryofgoodsandservices.Theexceptioniswherethevariationsarisefromincreasesincostssuchasstatutoryincreases(duty,VATorcurrency).PricevariationsinsuchcasesarepaidonlyifapprovedbyTreasuryinwriting. (7)ThepaymentforgoodsandservicesdeliveredshallbetheresponsibilityoftheAccountsOffice.AccountingOfficersshallensurethatthefunctionsofordering,receiving,accountingforandpayingforgoodsandservicesareappropriatelysegregated.

Management of procurement contracts 96.(1)AccountingOfficersareresponsiblefortheadministrationofandformonitoringthegeneralperformanceofprocurementcontractsenteredintobytheirMDAs. (2)MinistriesshalladoptthecontractmodelsthataredevelopedbyPRAZ.Wherenoappropriatemodelcontractexistsortheavailabledocumentrequiresamendmenttotailorittothespecificcircumstancesofthecontract,AccountingOfficersshallseekguidancefromtheGovernmentAttorney.TheHeadofPMUshallensurethat thefollowingitemsareaddressedinanyprocurementcontracttheyadopt— (a) completenamesandaddressesofthepartiestothecontract; (b) thelistingbyorderofpriorityofcontractdocuments; (c) specificationsofthegoods,worksorservice; (d) quantityornumberofthegoodsoramountoftheworksorservices; (e) priceofthegoods,worksorservicesorhowthepricewillbedeterminedandthepaymentmethod; (f) procuringentity’srightofinspection; (g) location,conditionsofdeliveryorcompletion,deliveryorcompletionscheduleandacceptanceprocedures; (h) requiredsecuritiesorbankguarantee,ifapplicable; (i) methodsfortermination of the contract; (j) other issues describing the obligations of the parties and clarifying the transaction, including price revision, if

applicable,warranties,contractmodification,subcontracting,insuranceobligations,shipmentterms,aftersaleserviceandremediesfordelayandnon-performance;

(k) theunforeseenevents(forcemajeure)withrespecttoresponsibilitiesfordelayinfulfillingtheobligationsorterminationofthecontract;and

(l) disputesettlementclause. (3)Thepriceofaprocurementcontractshallbeseteitheronthebasisofaunitpriceappliedtothequantitiesactuallydelivered,oronalump-sumbasis,appliedtotheentiretyortoapartofthecontract,irrespectiveoftheactualquantityneededtobedeliveredinordertofulfiltheprocurementcontract.AccountingOfficersshallensurethattheirministriesadoptpricingapproachesthatcomplywiththeprovisionsofProcurementRegulations. (4)Procurementcontractsshallbeconcludedonthebasisofafixed-priceterm.Aprocurementcontractmaybeconcludedonthebasisofaprovisionalprice,specifyingthemannerinwhichthepriceistobemadedefinite.Thegroundsfortheuseofsuchapricingclauseshallbenotedintherecordoftheprocurementproceedings. (5)Procurementcontractsmayincludeincentiveclauseslinkedtoimproveddeliveryperiods,improvedqualityorcostreduction. (6)Priceadjustmentsarenotpermittedunlessprovidedforintheprocurementcontract.Wheretheprocurementcontractprovidesfor thepossibilityofpriceadjustment, it is theresponsibilityof theAccountingOfficers toensurethat thecontractstipulatestheconditions,underwhichpriceadjustmentshallbepermittedandthatsuchconditionscomplywiththeprovisionsoftheprocurementregulations. (7)AccountingOfficersshallensurethatprocurementcontractswithanallowanceforpricevariationshaveaprovisiontotheeffectthat,whentheapplicationofpriceadjustmentleadstoamodificationexceedingacertainpercentage(asprovidedbytheProcurementRegulations)oftheinitialpriceorthebalanceofthecontract,theAccountingOfficerwillhavetheoptionofterminating the contract.


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(8)ItistheresponsibilityofAccountingOfficerstoensurethatcontractmodificationsdonotresultinacontractthatismateriallydifferenttotheoriginalcontractorsignificantlyalterthenatureorscopeofthecontract.AnycontractmodificationsshallcomplywiththeprovisionsofthePublicProcurementandDisposalofPublicAssetsActandProcurementRegulations. (9)Whereacontractprovidesforaftersaleservice,AccountingOfficersshallensurethattheperiodofthecontractor’scommitmentinthisregardshouldcorrespondtotheaverageoperatinglifeofthegoodsinquestion. (10)AccountingOfficersshallensurethatproceduresrelatingtosub-contracting,remediesforbreachofcontract,liquidateddamages fordelayandcontract terminationaredealtwith inamanner thatensuresobservanceof the termsof thecontractagreementsandcompliancewiththeprovisionsoftheprocurementregulations. Payments relating to contracts

97.(1)ItistheresponsibilityofAccountingOfficerstoensurethatpaymentsaremadeinatimelymannerinordertoavoidunnecessaryexpenditureintermsofpenalties. (2)AccountingOfficersshallensurethatwhereaprocurementcontractprovidesforthedisbursementofprogresspayments,theseshallbedoneincompliancewiththeprovisionsofthecontractandwithintheguidelinessetoutinthePublicProcurementandDisposalofPublicAssetsActandProcurementRegulations.AccountingOfficersshallensurethatprogresspaymentcertificatesareissuedinaccordancewiththeprogressofperformanceoftheprocurementcontract. (3)Unlessotherwisestipulatedintheprocurementcontract,anadvancepaymentshallnotbemadeunlessanadvancepaymentguaranteeisfurnishedcoveringtheamountoftheadvancepaymentandsatisfiesothertermssetforthinthebiddingdocuments. (4)AccountingOfficersshallensurethatwhereprocurementcontractsprovideforadvancepayments,thetotalamountofadvancepaymentmadeundertheprocurementcontractshallnotexceedthepercentagespermissibleintheprovisionssetoutintheprocurementregulations.

PART XVII

assets manaGement

Policy

98.(1)Theinstructionscontainedinthissectionareaimedatensuringthatthereisasystemwithadequatesafeguardstoprotectpublicpropertyfromfraud,wasteandabuse. (2)AssetscompriseofallpropertyownedbytheGovernmentorforwhichitisresponsible,whetheracquiredthroughpurchases,cultivation,donations,orothermeans.ForthepurposeoftheseinstructionsGovernmentAssetscompriseoftheclassesofassetsdescribedinTable2below—

Table 2: Categories of Government Assets

Source: PFMS Chart of Accounts (2)AccountingOfficersareresponsibleforallassetsheldbytheirrespectiveministriesandshallissueinstructionsgoverningthemethodofaccountingforandtheprocedureregardingthepurchase,receipt,recording,custodyandphysicalverificationforallsuchassets.Suchinstructionsshallmakeadequateprovisionfor—

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(a) clear instructions on control of assets; (b) aphysicalverificationofassetsatleastonceineverytwelvemonths; (c) properassetsrecordsthatwillensureadistinctionbetweenfixedassetsandinventories; (i) recordingofmonetaryvalueswhereappropriate; (ii) responsibilityforcustodyofassets; (iii) responsibilityforcontrolofassets;and (iv) inspectionofassets. (3)TheseinstructionsshallbesubmittedtotheAccountant-Generalforapprovalbeforetheyareissued,andacopyoftheapprovedinstructionsforwardedtotheAuditor-General. (4)AccountingOfficersshallreviewtheirinstructionsforthecontrolofassetsatleasteveryfiveyearsforthepurposeofensuringthatanychangesofcircumstancesarecateredfor. Acquisition of Government assets 99.(1)Ministries,AgenciesandDepartmentshallacquireassetsusingthefollowingmethods— (a) procurementfromsuppliersandcontractors; (b) compulsoryacquisition; (c) donations; (d) production(manufacture,cultivation,biological);and (e) transfersfromotherdepartments. (2)AccountingOfficersshallensurethattheprocurementofGovernmentpropertysatisfythefollowingconditions— (a) fairandtransparentprocess; (b) purchasesaremadeonthebasisofneedortosecurebenefittothepublic; (c) theintendedpurposeisthebestuseoftheproperty; (d) theprocessshallcomplywiththeGovernmentprocurementguidelines;and (e) allrelevantstatutoryrequirementsareobserved. Recording of assets

100. (1)AccountingOfficersshouldensure thatallpublicassetsunder theircontrol receivedfromwhateversourcearerecordedpromptlyandaccuratelyintheappropriatemanualregisters.TheassetsshouldalsobecapturedimmediatelyonthePFMS system. (2)AllassetsregisteredonthePFMSsystemshallalsoberecordedontotheCentralGovernmentMasterAssetsRegistermaintainedonthesystem.Allsubsequentadjustmentstotheassetsincludingtransfers,disposal,revaluationsanddepreciationshallbereflectedonthisMasterAssetsRegister. (3)TheclassificationthatshallbeusedinrecognisingandcapturingassetsontothesystemshallbedeterminedbytheAccountant-General.IncasesofdoubtAccountingOfficersshallapproachtheAccountant-Generalforguidance. (4)AccountingOfficersshallensureappropriateanduptodaterecordsforbothfixedassetsandinventoriesarekeptatHeadOfficeandwithinDepartments.MasterassetregistersshallbemaintainedatHeadOfficeanddepartmentalassetregistersatdepartmentallevel.Theregistershouldreflectthefollowinginformationforeachasset— (a) dateofacquisition,receiptandplace; (b) iftransferred,whereitwastransferredfrom; (c) ifdonatednameofdonor; (d) nameofreceiptingofficer; (e) GoodsReceivedVoucher/Notenumber; (f) source/supplier; (g) quantity; (h) location (i) value—whereappropriate; (j) identificationparticularsofeachasset(enginenumber,chassisnumber,serialnumber,eartag,etc.);and (k) dateofdisposalortransfertoanotherdepartmentandauthority. (5)TheDirectorresponsibleforAdministrationshallensurethatthemanualassetregistersarereconciledregularlywiththerespectiveministry’sassetcontrolaccountmaintainedonthePFMS. (6)AccountingOfficersshallensurethatallGovernmentassetsareclearlyandvisiblymarkedwithamarkofGovernmentownership.


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Use of assets

101.(1)Accountingofficersshallensurethatthereisnowaste,recklessspendingorabuseintheuseofGovernmentpropertyunderthecustodyorcontroloftheiragenciesordepartments. (2)AccountingOfficersshallensurethatassetsareusedforofficialpurposesonly,unlessotherwiseapprovedinwritingbythemorpermittedunderanofficer’stermsofemployment. (3)AccountingOfficersshallensurethatpropersystemsofcontrolareestablishedandclearguidanceisprovidedontheacceptablelevelofuseofGovernmentassetsforprivatepurposesandthecircumstancesunderwhichcostswillberecovered.Thisincludestheuseofphotocopiers,telephones,cell-phones,andanyotherassets. (4)TheuseoftheMinistry,DepartmentorAgency’sassetsforanyprivatebusinessthatanyemployeemayoperateisprohibited.AccountingOfficersshallreportanysuchabusestoTreasury. Control of assets

102.(1)TheAccountingOfficershallinstituteadequatecontrolstosafeguardbothfixedassetsandinventoriesagainstabuseandmisappropriations.

(2)AccountingOfficersshallensurethatpropercontrolsareputinplaceforfixedassetsundertheircharge,takingintoaccountthefollowing,amongotherfactors— (a) theusefullifethatcanbereasonablyexpected;and (b) thecircumstancesunderwhichtheassetwillbeused.

(3)Eachofficeshallhaveaninventorylistofalltheassets(workingorredundant)containedtherein.IndividualsoccupyingofficesshouldbemaderesponsiblefortheassetsheldinthatofficeandaseniorofficershouldbeappointedasAssetControlOfficerinrespectofeachgroupofoffices.TheAssetControlOfficershallberesponsibletoformaintainingtheMasterAssetRegister for their Ministry.

(4)AnytransferofassetsfromonedepartmentorstationtoanothershallonlybemadeontheauthorityoftheAccountingOfficertowhomthecostoftheassethasbeencharged.Suchmovementshallberecordedappropriately.Thedistributionorissueofmovableassetsorstoresshallbeaccompaniedbyanissuevoucher.Thetransferofamovableassetfromonelocationtoanothershallbeaccompaniedbyamovableassetadvice.

(5)AnAccountingOfficermay,byagreementinwritingwithanotherAccountingOfficer,transferassetsundertheircontroltothecontrolofthelatterwiththewrittenapprovaloftheTreasury.

(6)InthecaseofanytransferreferredtoinInstructionNo.1025,theAssetRegisterheldinthePFMSfortheMinistries,Departmentsoragenciesconcernedshallbeadjustedaccordingly.AccountingOfficersshallensurethatthemanualMasterAssetsRegistersarealsoadjusted. Government vehicles 103.(1)AccountingOfficersshallberesponsiblefortakingcareofallGovernmentvehiclesundertheirMinistriesandensurethattherelatedpoliciesaredulyadheredtobyallOfficers. (2)AccountingOfficersshouldensurethattheyissuedetailedinstructionsthatgiveguidanceandproceduresrequiredforaneffectiveandefficientadministrationofGovernmentvehicles. (3)AccountingOfficersshallappointTransportOfficerswhoserolesshallincludethemanagement,controlandmaintenanceofGovernmentvehiclesundertheirMinistry’scontrol. (4)AccountingOfficersshallensurethatallMinistryvehicles(includingdonatedvehicles)havebeenregisteredundertheMinistry.Allvehicles,withtheexceptionofconditionsofservicefleet,shouldbeclearlylabelledwiththeMinistry’sname. (5)DriversofgovernmentvehiclesshallonlybethosestatedinPublicServiceCommissionpolicypronouncementsandshallcomplywiththerelatedrequirementsofsuchpolicy.Alldriversshallhaveacurrentdriver’slicenceoftherelevantclassortypeofvehicleandGovernmentAuthoritytodrive. (6)AccountingOfficersshallkeepthecompleteandupdatedrecordsofstaffandtheapprovalgrantedtothemtodrivegovernmentvehiclesasperPublicServiceCommissionpolicypronouncements. (7)DriversofGovernmentvehiclesshallbeindemnifiedinaccordancewiththeprovisionsofPartVIofthePublicServiceRegulations,2000,oranyotherpronouncementsthatmaybeissuedfromtimetotime. (8)Governmentvehiclesshallonlybeusedforofficialpurposes,exceptforthosewithtransportprivilegesasperPublicServiceCommissionpolicypronouncements.UnlessexpresslyauthorisedbytheAccountingOfficer,theuseofaGovernmentvehiclebetweenamember’splaceofresidenceandplaceofworkisdeemedtobeprivatetravel.MembersofstaffauthorisedtouseGovernmentvehiclesbetweenplaceofworkandresidenceshallnotbepaidtransportallowance. (9)WhereanofficerhasbeengrantedtransportprivilegesasperPublicServiceCommissionpolicypronouncementstheconditionsofuseofsuchvehiclesshallbeclearlycommunicatedtotheofficerincludingbutnotlimitedtotheauthorisationofspouseorotherindividualstodrivetheconditionofservicevehicles. (10)AccountingOfficershallensurethatlogbooksareallocatedtoeachGovernmentvehicleundertheircontrol.Thesevehiclelogbooksshallbecorrectlyandcomprehensivelycompletedforeachofficialjourney. (11)Anystaffauthorisedtodrivegovernmentvehiclesshallkeeparecordofeachandeveryofficialjourneymadebythatgovernmentvehicleinitslogbookforeachgovernmentvehicle.

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(12)Thevehiclelogbookshallbereviewedbyaseniorofficerindependentoftheofficer’srecordingitonaregularbasisandsignasevidenceofthereview. (13)Governmentvehiclesshallbeusedandmaintainedsoastomaximizetheirusefullifeandtheirvalueondisposal. (14)AccountingOfficersshallensurethatthefollowingregistersaremaintainedforGovernmentvehiclesundertheircontrol— (a) vehicleregisterdetailingthemake,model,engineandchassisnumber; (b) vehicleaccidentandincidentregister-capturingaccidentsandincidencesinvolvingstatevehicles;and (c) vehiclemaintenanceregisterinwhichallmaintenanceandrepairsperformedonvehiclesmustbedocumentedand

retainedforthelifeofthevehicle. (14)IntheeventofaGovernmentvehiclegettinginvolvedinanaccident,thememberinvolvedintheaccidentshall— (a) reporttopolicewithin24hours; (b) reporttoTransportOfficerimmediatelyafteroccurrence; (c) filltheaccidentreportform;and (d) writeareportexplainingthecausesoforcircumstancessurroundingtheoccurrenceoftheaccident. (15)UponreceiptofthewrittenreportsstatedinInstructionNo.1045,theTransportOfficershallensurethat,aBoardofInquiryconveningorderisissuedwithin14workingdays.TheprocessofcarryingoutaboardofinquiryinaccordancetheprovisionsofthePFMActshallalsobeinstitutedwithinfiveweeks. Fuel coupons 104.(1)AllMinistries,DepartmentsandAgenciesshallkeeparecordoffuelcouponsreceivedandissuedinsequentialorder.Theregistershallindicate— (a) thedateofissue; (b) quantityissued; (c) issuingofficer; (d) purpose; (e) receivingofficer;and (f) vehicleregistrationnumber. (2)Stocksoffuelcouponsshallbekeptinsafesorstrong-roomsunderthecontroloftheresponsibleofficer.Suppliesheldforimmediateuseshallbetreatedascashandcontrolledaccordingly. (3)WhereanylossordeficiencyoffuelcouponsisdiscoveredandafterpreliminaryinvestigationitissuspectedthatsuchlossordeficiencyisattributabletocriminalactionitshallimmediatelybereportedtotheAccountingOfficerforappropriateactionandtothepoliceforinvestigation.Ifthedeficiencyisnotsuspectedtobeofacriminalnature,theprovisionsofInstructionNo.0563shallapply. Asset verification

105.(1)AccountingOfficersshallcarryoutphysicalassetcountsregularlyandatleasttwiceayeartoestablishexistence,statusandusability. (2)Not later than twomonthsafter thecloseofeachfinancialyear,AccountingOfficers shall forward toTreasuryacertificateconfirmingthattheassetsunderthecontroloftheirMinistrieshavebeenphysicallycomparedwiththerecordsatleasttwiceduringthefinancialyearandthattherecordshavebeenproperlymaintainedinaccordancewithTreasuryandAccountingOfficers’Instructions. (3)ThecertificatereferredtoinInstructionNo.1052shallbeaccompanied,wherenecessary,byareportwhichshallbecopiedtotheTreasury,giving— (a) details,includingthevalue,ofanysurplusesand/ordeficienciesdiscoveredandofanyitemsfoundtobedamaged,

unserviceableorredundant; (b) afurthercertificatetotheeffectthat,afterinvestigationallsurpluseshavebeentakenonchargeandthatalldeficiencies

anddamagedandunserviceableitemshavebeendealtwithinaccordancewithTreasuryInstructions; (c) anassessmentoftheadequacyandsuitabilityoftheequipment,stores,etc.,fordepartmentalrequirementsinrespect

ofbothquantityandqualityandofthegeneralconditionoftheassets;and (d) notesonanygeneralmatterswhichitisconsideredshouldbebroughttonotice.

Disposal of unserviceable, obsolete or surplus assets 106.(1)AccountingOfficersshallberesponsibleforensuringthattheirlineMinistriesandMDAsdisposeofpublicassetsthatareunserviceable,obsoleteorsurplusinaccordancewiththeprovisionsofthePublicProcurementandDisposalofPublicAct. (2)AccountingOfficersorSeniorOfficersdelegatedby themshallestablishadisposalcommittee for thepurposeofrecommendingthebestmethodofdisposingofunserviceable,obsoleteorsurpluspublicassets.ThecompositionofthedisposalCommittee,scope,powersandreportingrequirementsshallbeasprescribedbyPRAZfromtimetotime.


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(3)ItistheresponsibilityofAccountingOfficerstoensurethatthecompositionofthecommitteepromotestheprinciplesofgenderbalanceandequity.AccountingOfficersshallalsoensurethatthemajorityofthecommitteemembersarepersonshavingnodirectinterestinthepublicassetsbeingdisposed. (4)AssetsOfficersinlineMinistriesshallwithoutdelayreporttotheMinistry’sdisposalcommitteewheneverassetsundertheirchargebecomeunserviceable,obsoleteorsurplus.ThedisposalcommitteeshallwithoutdelayconsidertheAssetOfficer’sreportandmakerecommendationstotheAccountingofficerontheappropriatemethodfordisposingoftheassetconcernedandthesemayinclude— (a) transfertoanotherdepartmentwithorwithoutfinancialadjustment; (b) salebypublictender; (c) salebypublicauction; (d) destruction,dumpingorburying; (e) trade-in; andanyothermethodthatmaybeprescribedorrecommendedbyPRAZfromtimetotime. (5)ItistheresponsibilityoftheAccountingOfficerstoensurethatthereportssubmittedbythedisposalcommitteearedealtwithwithintheperiodprescribedbytheregulationsissuedbyPRAZ.TheAccountingOfficershallnotifythecommitteewhetherornothe/sheaccepts the recommendations. If theAccountingOfficeraccepts the recommendationsof thedisposalcommittee,theassetshallbedisposedofinaccordancewiththoserecommendations.IncaseswheretheAccountingOfficerrejectstherecommendationsofthedisposalcommittee,heorsheshall,whennotifyingthedisposalcommitteeoftherejectionorassoonaspossiblethereafter— (a) providethecommitteewithwrittenreasonsfortherejection;and (b) sendthePRAZacopyofthenoticeofrejectionandthereasonsforit;and (c) referthematterbacktothedisposalcommitteeforfurtherconsideration. (6)Whenassetsaretobedisposedofbypublicauction,theprovisionsoftherelevantcircularonauctioneeringservicesshallbeobserved.Aseniorofficialshallbeassignedtoattendauctionsales,firstlytocheckuponsaleswhichtakeplaceandsecondlytobeavailabletogiveadviceorinformationtotheauctioneerduringthecourseofsales.Theimportanceofthiswouldnaturallybejudgedinrelationtothequantityandvalueofitemstobeauctioned. (7)NoassetsmaybesoldbyprivatetreatywithoutthespecificorgeneralauthorityoftheTreasury. (8)Theproceedsfromthesaleofassetsshallbecreditedto“saleofGovernmentproperty”ortotherelativeseparateaccountinaccordancewiththesourcefromwhichtheywerepurchased. (9)AccountingOfficersshallensurethattheirMinistrydoesnotdisposeofanunserviceable,obsoleteorsurplusassettoanyofitsemployeesoranyofitsdisposalcommitteemembersexceptinsuchcircumstancesandsubjecttosuchconditionsasmaybeprescribedbyPRAZfromtimetotime. Inventory 107.(1)Whereverastoreisestablisheditshouldbeplacedunderthedirectcontrolofaresponsibleofficer.Thisofficer’sdutiesshouldembracetheresponsibilityforthesecurityofthestores,thekeepingofproperrecordsandthereplenishmentofstocksandconsumablestores. (2)Inventoryshallbepurchasedinthemosteconomicalmannerhavingregardfor— (a) theexpectedlevelofusage; (b) leadtimesfordelivery; (c) volumediscounts; (d) holdingcosts; (e) theavailabilityofsecurestorage;and (f) thelikelihoodofdeterioration. (3)Allitemsshouldbebroughtonchargebymeansofreceiptvouchersprepared,ifpossible,bysomeoneotherthanthepersonmaintainingthestoresrecords.Issuesshouldberecordedonissuevouchers. (4)Whenpersonalissuesaremadewhichwillberequiredtobereturnedatsomefuturedate,anappropriateregisterofsuchitemsshouldbemaintainedastheywillrequiretobeincludedinanystocktakingcarriedout. (5)Wherelargeand/orvaluablestoresareheldandinordertoavoidtheunnecessarytyingup-ofpublicfunds,theHeadofOfficeshallexercisecontroloverthelevelofstoresholding.Theofficersresponsibleforthestoresshallbegivenclearinstructionsonthequantitiesanddescriptionsofitemstheyareauthorisedtorequisition,thetimesorperiodsatwhichtheymayrequisitionandtheproceduretheymustadoptforurgentorexcessivedemands. (6)TheAccountingOfficershallappointanindependentofficertocarryoutastocktakeofinventoryatleastonceayear. (7)SeniorOfficersshallcarryoutrandomchecksregularly.Intheeventofanydiscrepancies,theAccountingOfficershallreporttoTreasury. Livestock 108.Appropriateanduptodaterecordsshallbemaintainedinrespectoflivestock.Suchrecordshallshow— (a) numberonhandatthebeginningoftheyear;

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(b) animalstakenonchargeduringtheyear; (c) naturalincreaseduringtheyear; (d) animalstransferredduringtheyear; (e) decreasesduetodeath,salesorothercauses;and (f) numberonhandattheendoftheyear. Deficiencies in, damage to and destruction of Government property

109.(1)HeadsofOfficeshallreportimmediatelytotheAccountingOfficer,anydeficiencyin,damagetoordestructionofGovernmentproperty.Inthecaseofdamagetoordestructionofbuildings,reportsshallbesenttothenearestofficeoftheMinistryresponsibleforpublicworks. (2)WhereanyoftheeventsmentionedinInstructionNo.1078appeartobeduetocriminalaction,themattershallbereportedtothePoliceimmediately.AnacknowledgementofthisfactshallbeobtainedfromthePoliceandforwardedtotheAccountingOfficer. (3)TheAccountingOfficershallinstituteanenquiry,intermsofsection12oftheAct,intoanydeficiency,damageordestructionreportedtothem. (4)IftheAccountingOfficerissatisfiedthatnopersoncanbeheldresponsibleforthedeficiencyin,damagetoordestructionofanyGovernmentpropertyandtheyassessthevaluetobewithinthethresholdsetforAccountingOfficersbyTreasury,theymaytakestepstowriteitoff. (5)Anywrite-offofanamountinexcessofthethresholdssetfortheAccountingOfficerwillrequiretheauthorityoftheTreasury. (6)TheprovisionsofInstructionNos.0589to0593shallapplytoOrdersmadebyTreasuryintermsofsection12oftheActwiththeprovisothattheword“Order”shallreplacetheword“Surcharge”. (7)AccountingOfficersshallmaintainalossesanddamagesregistercontainingthefollowingparticulars— (a) thedateoftheoccurrence; (b) thenatureofthelossordamage; (c) thevaluationofthelossordamage; (d) theamountofanyrecovery;and (e) theresultantlosstopublicfunds. (8)AreturnsummarisinglossesofanddamagetoGovernmentpropertyandlossesofpublicmoneysasat31stDecembereachyearshallbesubmittedtotheAuditor-GeneralandAccountant-GeneralwiththeFinancialStatementsforthatyear. Securities

110.(1)Forthepurposesoftheforegoinginstructions,“securities”shallincludestockandsharecertificates,bondsandsuretyagreements. (2)AllsecuritiesheldinanyGovernmentofficeshallbelodgedinasafeorstrong-roomunderthecontrolofanominatedofficer. (3)Everyofficerresponsibleforthecustodyofsecuritiesshallmaintainaregistershowingthefollowingparticulars— (a) dateofsecurity; (b) dateoflodgement; (c) nature of security; (d) bywhomgivenandinwhosefavour; (e) amountorestimatedvalue; (f) dateandparticularsofrealisation,substitutionoralteration,etc.; (g) dateofprescription;and (h) referencestoanyrelevantdepartmentalpapers. (4)SecuritiesshallbeexaminedatleastonceineachyearbytheHeadofDepartmentoraseniorofficerspeciallyappointedbythem.Theexaminingofficershallsatisfythemselvesthat— (a) thesecuritiesarecorrectlyrecordedintheregister; (b) noneisindangerofprescription; (c) nosuretyhasdiedorceasedtobecompetentorsufficient;and (d) thesecuritiesaregenerallyinorder. (5)Stocksmaybesoldatalossprovidedthatthereisareasonableexpectationthatthelosswillbemorethanrecoupedovertheremaininglifeoftheinvestmentthroughabetteryieldfromanewinvestment. (6)Inallcaseswhereinvestmentsareheld,aninvestmentplanshallbeformulatedandrecordedforfuturereference.


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PART XVIIGiFts and donations

Responsibility for management public debt

111.(1)Theobjectiveofthissectionistoprovideguidanceongiftsanddonationsto,andbytheStateaswellastheacceptance,onbehalfoftheState,ofanygift,donation,bequestorothergrantofmoneysorotherpropertywhichismadesubjecttoaconditionorislikelytoinvolveachargeontheConsolidatedRevenueFund. (2)TheseinstructionsdonotapplytomattersrelatingtotheNationalDevelopmentFund(NDF)whicharecontainedinsection12oftheInstructions.Forthepurposesoftheseinstructionsgifts,donationsandacceptancehavethefollowingmeaning— (a) agiftisanitempurchasedforanindividualorgroupofofficialsinrecognitionofaneventorperformance; (b) adonationisavoluntarygiftgiveninrecognitionofaworthycause;and (c) acceptanceisavoluntaryreceiptofcash,goodsorserviceoffered.

Policy

112.(1)TheapprovalforgrantingofgiftsanddonationsusingstatefundsandpropertyistheresponsibilityofTreasury.TheTreasuryshallalsodirectwhethergiftsordonationsshallbeacceptedornotandhowtheseshallbedisposedof. (2)ItistheprerogativeofTreasurytoapprovetheofferoracceptanceofanygiftsordonationsintheformofimmovablepropertysuchaslandandbuildings.AccountingOfficersmustsubmit,withtherequestforofferoracceptance,thejustificationforandtheconditionsunderwhichtheimmovablepropertyisofferedoraccepted. (3)AllgiftstoGovernmentfromanysourcewhichareconditionalorarelikelytoinvolveachargeontheConsolidatedRevenueFundshallbenotifiedtotheTreasuryimmediatelyonreceiptofthegiftortheofferofthegift. (4)Treasurymayfromtimetotime,delegatetoAccountingOfficers,theapprovalfortheacceptanceofgiftsanddonations.ThevaluelimitssetforAccountingOfficers’approvalshallbedeterminedbytypeofgiftsanddonations,andthecircumstancesunderwhichtheyareoffered. (5)Publicofficialsareprohibitedfromsolicitinggifts.NoemployeeoftheGovernmentshallacceptgifts,grantsanddonationsintheirindividualcapacity. (6)Onapplyingforauthoritytoacceptgiftsanddonations,AccountingOfficersshallsubmitthefollowinginformation— (a) descriptionofthegiftordonation; (b) theestimatedvalueof thegiftordonation.Itmayalsobeadvisable torequestanassessmentbyanindependent

estimatorforgiftswithhighvalue; (c) theestimatedcoststotheConsolidatedRevenueFundoftheacceptanceofthegift(includingneededrepairs,costs

ofaccessories,periodic/regularmaintenance,etc.); (d) justificationforacceptingthegift(i.e.presentadvantagesanddisadvantagesofacceptanceofthegift); (e) anyconditionsrestrictingtheuseofthedonationanddisposalofresidualbalance,ifany; (f) donor’snameandaddress; (g) statementonanyofficialrelationshipbetweenthedonorandtheMinistry;and (h) recommendationsforacceptanceorrejectionofthegiftordonation. Rejecting an offer of a gift or donation 113.(1)WheretheAccountingOfficerisrecommendingrejectionofanofferofagiftordonation,thereasonsshouldbeclearlystated.Justifiablereasonsincludethefollowing— (a) conflictofinterestinacceptingthegift; (b) acceptanceofthegiftisunlawful; (c) acceptanceofthegiftwillobligatetheministrytoanunbudgetedexpenditureoffunds;and (d) ifitisequipment,theoperationoftheequipmentwouldnotbepracticable. (2)TheAuditor-GeneralshallbeadvisedoftheAccountingOfficer’sorTreasurydecision. Accounting for gifs and donations 114.(1)AllgiftsordonationsintheformofcashshallbepaidintotheConsolidatedRevenueFundorrelevantpublicfund.AllgiftsordonationsintheformofassetswillformpartofpublicpropertyandshallbetreatedandaccountedforthroughthePFMS as such. (2)Incircumstanceswherethereisnoclarityonthepurposeforwhichagiftordonationshallbeapplied,Treasuryshallprovideguidance. (3)AccountingOfficersshallmaintainaregisterofallgiftsanddonationsofferedoracceptedduringtheyear. (4)ItistheresponsibilityofAccountingOfficerstoensurethatanyconditionsrestrictingtheuseofdonationsarecompliedwith. Reporting and audit on gifts and donations 115.(1)Allgifts,donationsorsponsorshipsreceivedduringthecourseofthefinancialyearshallbedisclosedasanotetothefinancialstatementsoftheMinistry.

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(2)Therecordsrelatingtogiftsanddonationsshouldbemadeavailableforauditbyinternalaudit,Auditor-General,andprivateauditfirmsthatmaybeengagedbydonors.InternalAuditshallauditthegiftsanddonationsregistersatleastonceayear.

PART XIXFund accountinG

Policy 116.(1)TheobjectiveofthissectionistogiveguidancetothoseFundssetupintermsofSection18ofthePFMAct.TheadministrationoffinanceswithinStatutoryFundsshallbegovernedbytheprovisionscontainedintherelevantActsthatsetthemup. (2)Section302oftheConstitutionpermitsMinistriestoretainallorpartofthefundsmeantfortheConsolidatedRevenueFundforthepurposesofpayingthemintosomeotherfundestablishedforaspecificpurposeormeetingpartoftherespectiveministry’sexpenditure.ThesefundsareappropriatedinaidoftheVoteandtheirexpenditureshouldbebasedonauthorisedannualbudgets. (3)NoAccountingOfficershallretainfundsmeantfortheConsolidatedRevenueFundexceptasprovidedforbysection302oftheConstitution. (4)AccountingOfficersshallcomplywiththeprovisionsofsection18oftheActwhensettingupTreasuryFunds.Nofundshalloperatewithoutaconstitutiontoregulateitsaffairs.TheconstitutionsofFundsshallbeapprovedbyTreasuryandtheseshallbetabledintheHouseofAssembly. (5)Fundsestablishedintermsofsection18oftheActshalloperateonanaccrualbasisandshallcomplywithFinancialReportingstandardssetbytheBoardresponsibleforsettingAccountingStandardsinZimbabwe.Whenanychangesinaccountingstandardsarecontemplated(e.g.migrationfromIPSAstoIFRS),AccountingOfficersshallsubmittheproposalsforTreasuryapprovalbeforeimplementingthem. (6)TheannualbudgetsofallFundsshallbeapprovedbyParliament.Moniessoappropriated,shallnotbeused,tomeetexpensesincurredunderanappropriationaccountwithoutTreasuryapproval. (7)TreasurymaydirectthatanymoniesfromtheFundsbepaidintotheConsolidatedRevenueFund. (8)Treasurymay,onsuchtermsandconditionsastheymayfix,makeloansoradvancesforaperiodnotexceedingthreehundredandsixtydaystoanyFund.ThemoneyloanedoradvancedbyTreasuryshallnotbeusedforcapitalexpenditureunlesstheMinisterresponsibleforFinancehasapprovedsuchuse. (9)AccountingOfficersshallnotborrowmoneyfromFundswithintheirMinistriesinordertofinanceAppropriationbudgetsunlessauthorisedbyTreasuryinwriting. (10)AccountingOfficersshallperiodicallyreviewtheuncommittedbalancesheldinstatutoryandotherfundsforwhichtheyareresponsibleandshallseekTreasuryguidanceregardingthedisposalofanybalanceswhicharesurplustorequirements.

Submission of annual budgets 117.(1)ItistheresponsibilityofAccountingOfficerstoensurethateveryFundwithintheirMinistrysubmitsanannualbudgettoTreasuryatthesametimetheypresenttheestimatesforrevenueandexpenditureforVotedfunds. (2)TheTreasuryshall,beforeapprovingbudgetssubmittedbyFunds,subjectthemtothesamescrutinythatisappliedtoestimatesforVotedfundstoensurethattheyarealignedtothemandate,programmesandprioritiesoftheirrespectivelineMinistries.The Funds revenue and expenditure budget and rates shall be tabled before theHouse at the same time as theAppropriationandrevenuebudgets.AllinayearadjustmentstobudgetlinesshouldbesubjecttothesameTreasurycontrolsastheannualappropriationbudgets.

Management committees 118.(1)AccountingOfficersshallberesponsibleforsettingupcompetentmanagementcommitteestomanagetheaffairsofFundswithintheirrespectiveministries.TheAccountingOfficershallensuregenderbalanceandequityinthecompositionofthemanagementcommitteesandmembersshallbeappointedonmerit.

(2)ItistheresponsibilityoftheAccountingOfficertoensurethefollowinginrespectofmanagementcommitteessetupintermsofInstructionNo.1216— (a) a clearmandateinwriting; (b) keeparecordofallminutesoftheirmeetings; (c) limitedtermofoffice;and (d) thecompositionofthecommitteeincludesskills,knowledgeandexperiencerelevantfortheeffectivemanagement

oftheFund.

(3)AsstatedinInstructionNo.0643,anofficerappointedasamemberofacommitteeshallbeentitledtofeesandsittingallowancesinadditiontotheirusualremunerationandthenormalsubsistenceandtransportexpensesfeesandexpenses.ThefeesandallowancespaidtocommitteemembersshallbedeterminedbyTreasuryfromtimetotime.

Accounting for funds

119. (1)All financialmanagement transactions relating to Funds shall be accounted for through thePFMS, unless theAccountant-GeneralhasauthorisedtheFundtooperateanindependentaccountingpackage. (2)WhereFundsareoperatingaccountingpackagesindependentofthePFMS,AccountingOfficersorofficersdelegatedbythem,shallensurethatfullandproperaccountsarekeptofthetransactionsforwhichtheyareresponsible.Theminimumsetofbookstobemaintainedshallincludethefollowing—


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(a) cashbookwhichkeepsarecordofallthebanktransactions.Forallthetransactionsrecordedthefollowingdetailsshouldbeincluded—

(i) transactiondate; (ii) payee; (iii) descriptionoftheTransaction;and (iv) EFTnumber; (b) journalbookwhichisusedfornon-cashtransactionsandalsousedforthecorrectionoferrors.Alljournalsshould

indicatethedate,journalnumber,details,transactionamount,astatementindicatingthenatureofthejournal; (c) theassetregister,inwhichtheMinistrymaintainstherecordsoftheassets.Itshouldincludethedateofpurchase,

descriptionoftheasset,assetnumber,serialnumber,location,user,sourceoffunding,cost,currentandaccumulateddepreciationandthenetbookvalue;

(d) advancesregister foradvancesthatmightbeissuedbytheFund;and (e) ledger;thatgivesadaytodaylistingofaccountingtransactionsthatoccurthroughthebankaccountandnon-cash

transactions. (3)Whereseparatefundsareauthorisedundertheirconstitutionstoinvestsurplusmoneysandnoinvestmentadvisorycommitteehasbeenestablished,stocksandotherinvestmentsmaybeboughtandsoldonthewrittenauthorityoftheresponsibleAccountingOfficerafterseekingsuchprofessionaladviceasisavailable.TheReserveBankofZimbabwecanbeapproachedforadviceregardingthepurchaseandsaleofinvestments.

Financial reporting 120.(1)TheFinancialStatementsforFundsshallbepreparedandpresentedinaccordancewiththeAccountingFrameworkprescribedbytheBoardresponsibleforsettingAccountingStandardsinZimbabwe. (2)TheDirectorofFinanceshallensure thatFundsunder their respectiveMinistriesprepareFinancialStatementsasfollows— (a) monthlyfinancialstatementsthatshallbesubmittedtotheAccountingOfficerandAccountant-Generalwithin14

daysaftertheendofrespectivemonth; (b) quarterlyfinancialstatementsthatshallbesubmittedtotheAccountingOfficerandAccountant-Generalwithin14

daysaftertheendofrespectivequarter;and (c) annualfinancialstatementsthatshallbesubmittedtotheAccountingOfficerandAccountant-Generalwithin30days

aftertheendoftheyearandtheseannualfinancialstatementsshouldbesubjectedtoanexternalaudit.

Audit of funds 121.(1)AllFundsshallbesubjectedtointernalandexternalaudit.AccountingOfficershallensurethatFundswithintheirMinistryareauditedbytheMinistry’sInternalAuditorsatleastonceayear.

(2)ItistheresponsibilityofAccountingOfficerstoensurethatFundsunderthecontroloftheirMinistrysubmitannualfinancialstatementstotheAuditor-Generalforaudit.TheAuditor-GeneralshallauditorcausetobeauditedthefinancialstatementsoftheFunds.

(3)TheDirectorofFinanceshallensurethatauditobservationsarerespondedtotimeouslyandanycorrectiveactionrecommendedbyauditistaken.

PART XIX

Public debt manaGement

Public Debt Management

122.Thissectionprovidesguidanceontheraising,authorisation,receipt,recording,accountingandreportingofPublicDebt.ThemainobjectiveofpublicdebtmanagementaccordingtothePublicDebtManagementAct[Chapter 22:21] is to ensure that Government’sfinancingneedsanditspaymentobligationsaremetatthelowestpossiblecostoverthemediumtolongterm,withaprudentlevelofrisk,andtopromotethedevelopmentofthedomesticdebtmarket.UnderthePublicDebtManagementAct,allGovernmentcommitmentsthatareoutstandingformorethanthreemonthsareclassifiedasdebt.

Responsibility for managing Public Debt

123. (1)Themanagementofpublicdebt inZimbabwe iscentralisedand the responsibility lieswith thePDMOwithinTreasury.FortheefficientandeffectivemanagementofGovernmentdebt,TreasuryshallsegregatethefunctionsofthePDMOintofront,middleandbackofficeandeachoftheseofficesshallhavespecificresponsibilitiesfromthefunctionssetforthinthePublicDebtManagementAct. (2)TheFrontOfficeshallberesponsibleforfunctionsrelatingtomobilisationoffundingwhichincludescontractingloans,issuingguaranteesandissuinggovernmentsecurities.ThePrincipalDirectorheadingthePDMOshallensurethatthefunctionsofthisofficearecarriedout—

(a) inamannerthatensuresborrowingiswithinthelegalandpolicyframeworks; (b) inanefficientandeffectivemannertominimisegovernment’scostofborrowing;and (c) inamannerthattakesintoaccounttheriskparametersestablishedbyTreasury.

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(3)Themiddleofficeshallberesponsibleforundertakinganalyticalfunctionsthatenablegovernmenttomeetitsfinancingneedsanditsdebtserviceobligationsatthelowestpossiblecostwithaprudentdegreeofriskexposure.Thisofficeshallalsomonitorthefrontoffice’sperformanceintermsofcompliancewiththeMediumTermDebtManagementStrategy,riskparametersandborrowingcostlimits.

(4)TheBackOfficeshallberesponsibleformaintainingadatabaseoftheGoZdebtportfoliothatiscomplete,accurateandconsistent.ThisdatabaseshallbelinkedtothePFMSsothattheBackOfficecanconfirmdebtsettlementsandpaymentsaswellasproducereportsondebtinstantaneously.

(5)TheSecretary forFinance shall issue detailedprocedures for the effective operationof eachoffice.Thedetailedproceduresshallbereviewedandupdatedeverythree(3)yearstotakeintoaccountdebtmanagementdynamicsinPDMOandtheevolvinginternationalbestpractice.

Borrowing powers, limits and monitoring

124.(1)TheMinisterresponsibleforFinance,withtheauthorityofthePresident,shallhavethesoleresponsibilitytoborrowonbehalfoftheGoZ.Fortheavoidanceofdoubt,theauthoritytoborrowmoneyorissueaguarantee,indemnityorsecurityorenterintoanyothertransactionthatbindsormaybindtheConsolidatedRevenueFundtoanyfuturecommitmentissolelyvestedwiththeMinister.Nootherperson,localauthorityorpublicentityshall,withoutthepriorandwrittenapprovaloftheMinister,raiseanyloanorissueanyguarantee,governmentsecurityortakeanyotheractionwhichmayinanywayeitherdirectlyorindirectlyresultinaliabilitybeingincurredbyGovernment. (2)TheMinistershallhavethesoleauthoritytoconcludeloanagreements;issueGovernmentsecurities;enterintosuppliercreditagreements;andissueGovernmentguaranteesinZimbabweinbothlocalandforeigncurrencies.

(3)Treasuryshall,ifsatisfiedthatitisinthepublicinteresttodosoandinordertomaintainthepublicdebtatsustainablelevels,revieworrevokeanyunutilisedborrowingauthorisations.ThePDMOshallberesponsibleforundertakingannualdebtsustainability analyses. (4)TheaggregateamountsthatTreasuryshallborrowinanyfinancialyearshallnotexceedthelimitfixedbytheNationalAssembly.ThislimitshallbeproposedbytheMinistertotheNationalAssemblyforapprovalbyresolutionorbymeansofaprovisioninaFinanceBill.Treasuryshallensurethatthefixedlimitdoesnotresultinthetotaloutstandingpublicandpublicly-guaranteeddebt,asaratioofthegrossdomesticproductatcurrentmarketprices,exceeding70percentattheendofanyfiscalyear.

(5)TheborrowinglimitstatedinInstructionNo.1309canonlybeexceededinsituationswhereTreasuryobtainsaresolutionoftheNationalAssemblytodosounderoneormoreofthefollowingconditions— (a) wherethereisanoccurrenceofnaturaldisastersorotheremergenciesrequiringexceptionalexpenditure; (b) wherealargeinvestmentprojectinthepublicsectorisdeemedbyCabinettobetimelyandprudential;and (c) incaseofageneraleconomicslow-downrequiringfiscalandmonetarystimulus.

(6)TheExternalandDomesticDebtManagementCommittee(EDDMC),whosefunctionsaresetoutinSection7ofthePublicDebtManagementAct,shallforeachfinancialyearsetforththerecommendedmaximumamountofnewGovernmentborrowingandGovernmentguaranteeswhichmaybeundertakenthroughouttheyear.TheMinistershalltakeintoaccounttheCommittee’srecommendationswhenexercisinghis/herauthoritytoborrowandmakinganyproposalforexceedingborrowinglimits.ThePDMOshalloperateasthesecretariattotheEDDMC.

(7)AccountingOfficersshallensurethatlocalauthoritiesandpublicentitiesunderthecontroloftheirMinistriescomplywiththeprovisionsofsection22ofthePublicDebtManagementActonsourcingofloansandannualborrowinglimits.ThePDMOshallassessthecreditriskinanylendingandpreparereportsonthemethodusedforeachassessmentandtheresultsthereof for the attention of the Minister.

(8)ItistheresponsibilityofAccountingOfficerstoensurethatpublicentitiesunderthecontroloftheirMinistriesactinaccordancewiththeconditionssetforthinsection23ofthePublicDebtManagementActwhenborrowingmoneyorissuingaguarantee,indemnityorsecurityorenteringintoanyothertransactionthatbindsormaybindthatentityortheConsolidatedRevenueFundtoanyfuturefinancialcommitment.

(9)ThePDMOshallberesponsibleforpreparingreportsonthedebtoflocalauthoritiesandpublicentities;aswellasassessing,monitoringandkeepingtrackofdebtlevelsofalllocalauthoritiesandpublicentities.

Public debt and budgeting

125.(1)TreasuryshallformulateaMediumTermDebtManagementStrategyformanagingGoZdebt.ItistheresponsibilityofthePDMOtoprepareandpublishtheMediumTermDebtManagementStrategyanditshalltakeintoaccount— (a) theexistingpublicdebtportfolioespecially (butnot exclusively) theGovernmentcomponentof thepublicdebt

portfolio; (b) themacroeconomicframework; (c) thefutureborrowingrequirementsofGovernment; (d) domesticandinternationaleconomicandfinancialconditions;and (e) suchotherfactorsorconsiderationsasmayberelevantforthedevelopmentoftheMediumTermDebtManagement

Strategy,includingproposedguidelinesorspecifiedtargetsforacceptabledebtlevelsandrisksinthepublicdebtportfolio.

(2)Aspartoftheyearlybudgetpreparations,thePDMOshallberesponsibleforpreparingforecastsonGovernmentdebtservicinganddisbursements.Theyshallalsopreparebalanceofpaymentsprojections.


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(3) It is theresponsibilityof thePDMOtoprepareandpublish theannualborrowingplanforGoZwhich includesaborrowinglimit.ThePDMOshallalsoparticipateinthepreparationofanissuancecalendarofGovernmentsecuritiesinlinewiththeannualborrowingplan. (4)ThePDMOshallberesponsibleforrequestingborrowingprogramsfortheyearfromlocalauthorities,constitutionalandpublicentities.ItistheresponsibilityofPDMOtoanalysetherequestsforborrowingsfromlocalauthoritiesandpublicentities. (5)ThePDMOshallprepareanannualreportonGovernmentdebtmanagementactivitiesincludingthedebtstockpositionandrelateddebtserviceprojections,newborrowing,guaranteesandlending.TheMinistershallatthesametimeastheestimatesofrevenueandexpenditurearelaidbeforetheNationalAssembly,tableinParliamentacomprehensivestatementofthepublicdebt.

Purpose for borrowing

126.(1)TreasuryshallborrowmoneyonbehalfofGovernmentto— (a) financenationalpriorityinfrastructureandproductivesectorprojectswithhigheconomicandsocialimpactprovided

debtshallonlybeincurredonprojectsthatcangeneratesufficientrevenuestorepaytheloan; (b) financeGovernmentbudgetdeficits; (c) maintainacreditbalanceontheTreasurymainaccountataleveldeterminedbytheMinister; (d) providesuchGovernmentloansorcreditstolocalauthorities,publicentitiesandanyotherentitiesasdefinedby

legislation; (e) honourobligationsarisingunderGovernmentguarantees; (f) refinanceoutstandingdebtorrepayaloanpriortoitsdateofrepayment; (g) immediatelyprotect,mitigateoreliminateeffectscausedbyanaturalorenvironmentaldisasteroranyothernational

emergency; (h) replenishinternationalreserves; (i) meetrequestsbytheReserveBanktoissueGovernmentsecuritiesforthesolepurposeofsupportingmonetarypolicy

objectives;and (j) fulfilanyotherpurposeastheNationalAssemblymaybyresolutionapprove.

(2)TreasuryinconsultationwithPDMOshall,inwriting,permitapublicentityoraconstitutionalentitytoborrowmoneyforoperationalexpensesuptoaprescribedlimit,includingatemporarybankoverdraft,subjecttosuchconditionsastheTreasurymayimpose.

Raising loans

127.(1)Treasuryshallraiseloansuponsuchtermsandconditionsastointerest,repaymentorotherwiseasmaybenegotiatedbytheMinisterandinthemannerprescribedinthePublicDebtManagementActthroughanyofthefollowingmethods— (a) loans; or (b) theissueofbondsorstock;or (c) the issue of Treasury bills; or (d) anadvanceorbankoverdraft;or (e) acombinationofanyoftheabove.

(2)ThePDMOshallparticipateinallnegotiationswithcreditorsonGovernmentborrowings.ItistheresponsibilityofPDMO,priortoborrowingmoney,to— (a) ensurethatitisinthepublicinteresttodoso; (b) ensurethatitisconsistentwithGovernmenteconomicandfinancialpoliciesandtheMediumTermDebtManagement

Strategy; (c) satisfythemselvesthattheGovernmenthasorislikelytohaveoncurrentprojectionsthefinancialabilitytomeetall

theobligationsundertheloan,includingfutureloanpayments;and (d) consultwiththeGovernmentAttorneyandobtaininwritingfromthemanopinionapprovingthelegalaspectsofthe

loan agreement. (3)TreasuryshallensurethatallexternalloansaresubjecttoratificationbyParliamentinaccordancewiththeprovisionsofthePublicDebtManagementActtoensurethattheloaniswithintheestablishedguidelinesandlawsandcanbeservicedwithinthenationalbudget.

Government guarantees 128.(1)Treasuryshall,insuchmanneranduponsuchconditionsastheythinkfitonadviceoftheEDDMCandthePDMO,guaranteetherepaymentofthecapitalof,andthepaymentofexpensesorchargesincurredonorinconnectionwithanyindebtednessorotherfinancialobligationraised,incurredorestablished,asthecasemaybe,insideoroutsideZimbabweinaccordancewiththeprovisionsofsection20ofthePublicDebtManagementAct. (2)Infixingtheconditionsofaguarantee,Treasurymaysetspecificrequirementsthatdebtorsshouldmeet,assetoutinsection20(2)ofthePublicDebtManagementAct.

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(3)Priortoissuanceofloanguarantees,thePDMOshallconductorcausetobeconductedaduediligenceauditonthecapacityofthebeneficiarytorepaytheloan.ThePDMOshallpreparereportsonthemethodusedforeachassessmentandtheresultsthereofforapprovalbytheMinister.

(4)TreasuryshallprescribeanyfeesthatmaybepayablebyabeneficiaryofaGovernmentloanguarantee,includingfeespayableonthefulfilmentofaguarantee.

(5)TreasuryshalldirectthemannerinwhichthebeneficiaryoftheloanguaranteeshallreimburseorpayGovernment,asthecasemaybefor— (a) allmoneyspaidbyGovernmenttofulfiltheguarantee; (b) allexpensesincurredbyGovernmentinrelationtotheguarantee; (c) interestonallmoneyspaidbyGovernmenttofulfiltheguarantee;and (d) anyfeesprescribedbytheMinister.

Publishing of loans and guarantees 129.(1)WithinsixtydaysafterGovernmenthasconcludedaloanorguaranteeagreement,TreasuryshallcauseitstermstobepublishedbynoticeintheGazette.

(2)WhereaguaranteeisgiventheMinistershalllaytheguaranteebeforetheNationalAssemblyorthePublicAccountsCommitteeinaccordancewiththeprovisionsofsection29ofthePublicDebtManagementAct.

(3)AccountingOfficersshallensurethateachpublicentityorlocalauthorityunderthecontroloftheirMinistrysubmitstothePDMOarecordofthepublicentityorlocalauthority’sborrowingnolaterthantenworkingdaysfromthedateofsigningofaloanagreementorobtaininganoverdraft,asthecasemaybe.

Accounting for proceeds in connection with loans and guarantees 130.(1)ThePDMOshallkeeparecordofallproceedsfromloans.Theyshallalsokeeparecordofanysumreceivedbywayofrepaymentofanymoniesorfeespaidinconnectionwithaguarantee.

(2)ItistheresponsibilityoftheAccountant-Generaltoaccountforproceedsfromloanandanysumreceivedbywayofrepaymentofanymoniesorfeespaidinconnectionwithaguarantee.

(3)TheproceedsofallStateloansshallbebroughttoaccountintheConsolidatedRevenueFundor,ifTreasurysodirects,intheNationalDevelopmentFundestablishedasafundintermsofsectionl8oftheAct.AnysumreceivedbywayofrepaymentofandanyfeespaidinconnectionwithaguaranteeshallbepaidintotheConsolidatedRevenueFund.

Payments in connection with loans and guarantees 131.(1)AllStateloansandguaranteesandexpensesorchargesincurredthereonorinconnectiontherewithshallbesecuredandchargedupontheassetsandgeneralrevenuesofZimbabweandallsuchsecuritiesshallrankequallywithoutpriority.

(2)ThePDMOshallberesponsibleforinitiatingandfacilitatingpaymentsonloans,guaranteesandon-lending. (3)ItistheresponsibilityoftheAccountant-Generaltorepayloans,payexpensesinconnectiontherewithandmoniesrequiredtobepaidinconnectionwithaguarantee.TherepaymentofloansandpaymentsrelatingtoguaranteesandexpensesorchargesrelatingtoborrowingshallbemadefromtheConsolidatedRevenueFund.TheAccountant-Generalshallnotmakeanypaymentoracceptanychargeingovernmentaccounts,unlessauthorisedbythePrincipalDirectorresponsiblefordebt.

(4)TheAccountant-GeneralmayauthorisetheReserveBankinitscapacityasthebankeroftheState,toactasagentoftheStateintherepaymentofinterestandprincipalamountsandalsointheissuanceofGovernmentsecuritiesinrepaymentofthepublicdebt.

(5)Treasuryshall,onsuchtermsandconditionsasitmaydetermine,andwhennecessary,withtheconcurrenceofthelender— (a) repayanyStateloanpriortotheredemptiondateofthatloan; (b) converttheStateloanintoanyotherloan; (c) consolidatetwoormoreStateloansintoanexistingornewStateloan;or (d) converttheStateloanintoequityorothersecuritiesheldbyTreasury.

Administration of Public Debt

132.(1)ItistheresponsibilityofthePDMOtostorealloriginalloanagreementsanddebtadministrationrecordsinrelationtoGoZdebt.

(2)ThePDMOshallkeeptimely,comprehensiveandaccuraterecordsinacomputeriseddatabaseofalloutstandingpublicdebt,guaranteesandon-lending.

(3)ItistheresponsibilityofthePDMOtoprepareannualreportsonoutstandingguaranteesandfacilitatetherecoveryofanypaymentsincludinginterestandanyothercostsincurredbyGovernmentduetothehonouringofoutstandingguarantees.

(4)ThePDMOshallberesponsibleforcompiling,verifyingandreportingonallpublicdebtarrears,especiallyGovernmentpublicdebtarrearsanddesignastrategyforthesettlementofthese.


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Reporting on Public Debt activities 133.(1)ItistheresponsibilityofAccountingOfficerstoensurethateachpublicentityorlocalauthorityunderthecontroloftheirMinistrysubmitmonthly,quarterlyandannualaccountsandreportstogetherwithanydocumentsasmayberequested,ontheirtotaloutstandingdebt,governmentguaranteesoron-lendingfacilitiestothePDMOduringthesubsistenceofsuchguaranteeoron-lending.

(2)ThePDMOshallpreparethemonthly,quarterly,andannualreportonstateloansandguaranteesandsubmitsuchreportstotheSecretaryandtheAccountant-Generalwithinthirtydaysoftherespectivemonth,quarteroryearconcerned.Thecontentsofthereportshalldiscloseinformationon—

(a) theloansobtainedintherespectiveyearandmonth; (b) theloansthathavebeenrepaidduringthatyearandmonth;and (c) thetotalamountofloansoutstandingattheendofthatyearormonth.

(3)TheAccountant-GeneralshallusethereportsfromPDMOtoobtaindetailsofallfinancialassetsofgovernmentforthepurposeofcomputingthecountry’snetdebtposition.

(4)At least twiceayear,Treasuryshall furnishParliamentwithareportonGovernmentdebtmanagementactivities,guaranteesandlending.Thereportshallbeinclusiveofthefollowing— (a) informationonhowthedebtmanagementstrategyhasbeenimplementedoverthecourseofthefinancialyear; (b) bi-annualreportingofdebtmanagementactivitiescoveringanevaluationofoutcomesagainstthedebtmanagement

objectives; (c) alistofallguaranteesissuedbyGovernmentincludingaclassificationofguaranteesaccordingtotheirprobability

ofbeingcalledin;and (d) a list of all outstanding borrowings and related debt service projections including classification of the loans by

Government,publicentitiesandlocalauthorities.

Establishment of sinking funds

134.(1)TheprovisionsofthePublicDebtManagementActpermitsTreasurytoestablishsinkingfundsforthepurposeofredeemingStateloansunlesstheyaresatisfiedthatarrangementsfortherepaymentoftheStateloansaresuchasnottorequiretheestablishmentofsinkingfunds.

(2)TheAccountant-GeneralshallberesponsibleformakingpaymentsintothesinkingfundsandtheseshallbepaidoutoftheConsolidatedRevenueFund.

PART XX

international develoPment assistance

Policy 135.(1)Thissectiongivesguidanceonthemobilisation,accounting,monitoringandreportingoffundsreceivedfromforeigngovernments,multilateralinstitutionsandotherorganisationsforfinancingdevelopmentproject.Theobjectiveistoensurethatresourcesobtainedfromforeignsourcesareaccountedforproperly,inatransparentmannerandusedfortheirintendedpurposes.

(2)Foreignfinanceddevelopmentof a recurrentnature is controlledbyTreasury.Lineministries shall participate inconsultationsandnegotiationsofloanorgrantagreementsforprojectsandprogrammesundertheircontrolasdirectedbyTreasury.

(3)NocommitmentmaybemadeonadevelopmentprojectfundedfromforeignsourceswithouttheapprovalofTreasuryandnoexpendituremaybeincurredwithoutthespecificauthorityofthePublicSectorExpendituresectionwithinTreasury.

(4)AccountingOfficersshallberesponsibleforpreparingprojectproposalsandforsubmissionoftheproposalstoTreasuryforapproval.

(5)AllresourcesreceivedandpaymentsmadeonforeignfinancedprojectsshallcomplywiththerelatedrequirementsintheseTreasuryInstructionsunlessaspecificrequirementhasbeenagreeduponbydevelopmentpartners/lendersandtheGoZ.

(6)ItistheresponsibilityofAccountingOfficerstoensurethatforeignfinancedprojectexpenditureisaccountedthroughthePFMSandiscapableofseparateidentificationinrespectofeachforeignagencyandeachproject.

(7)AccountingOfficersshallberesponsibleforimplementing,monitoringandevaluation,inclosecollaborationwithTreasury,allprojectsandprogrammesthatarefinancedbydevelopmentpartners/lenders.

(8)ImplementingministriesmustbethoroughlyfamiliarwiththeconditionsattachingtotheforeignfundsprovidedtothemandAccountingOfficersshallensurethattheycomplywiththerequirementsagreeduponwiththedevelopmentpartner/lender.

(9)ResourcesobtainedasloansshallbebroughtintotheaccountsasPublicDebtandthosereceivedasgrantsshallbebroughttoaccountasRevenue.IneachcasetheremustbeaflowofcashintotheConsolidatedRevenueFund,notwithstandingsuchloansandgrantsmaybechannelledthroughtheNationalDevelopmentFund(NDF)oranyothermethodasdirectedbyTreasury.

(10)Allforeignfinanceddevelopmentexpenditureshallbeaccountedforonthelineministry’sVote;whetherdirectlyintheestimatesofexpenditureorthroughatransferfromtheVoteofCreditoranyothermethodasdirectedbyTreasury.

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(11)AccountingOfficersshallensure that resources received in the formofcashdonationsarepaiddirectly into theConsolidatedRevenueFundandnotintoTemporaryDepositaccounts.

(12)Thecashvalueofgrantsreceivedbywayofcommodities(e.g.goodsreceivedfromthedevelopmentpartnerinsteadofmoney)andservicesinkindshallalsobeaccountedforthroughtheConsolidatedRevenueFund.

(13)Goodsandservicesreceivedunderaidfinancedgrantsmustbedifferentiatedfromunsolicitedgiftstogovernment(whicharedealtwithinInstructionNos.1100-1199).Goodsorserviceswhicharesubjecttoawrittenagreement,memorandumofunderstandingorexchangeofnotesbetweengovernmentandanothergovernmentorinternationalorganisationshallbeconsideredasinternationalaid.Alldevelopmentpartnerfundedexpenditureshallnotbesubjecttolocaltaxes.

(14)AccountingOfficersshallensurethatforeignfinancedexpenditurebytheirministriesisaccountedforinthesamemannerasotherexpenditurealthoughthefollowingadditionalrequirementsmustbemet— (a) expenditureoneachprojectmustbeseparatelyidentifiablefromotherexpenditure; (b) ifmorethanoneaidagencyisinvolvedinaproject,expendituremustbefurtheridentifiablebyeachagency;and

(15) Separatecomputercodesorsubcodesmustbeusedforeachproject.

(16)AccountingOfficersshall,unlessauthorisedbytheAccountant-Generaltouseindependentaccountingpackages,ensurethatallforeignfinancedprojectsareaccountedforthroughthePFMS.

(17)DirectorsofFinanceshallprepareandsubmit toTreasury the following informationrelating toalldevelopmentprojects,includingthoseprojectsthataremanagedoutsidethegovernmentaccountingsystem— (a) copyoftheprojectdocumentbeforetheprojectscommenced; (b) acopyofregularfinancialreportsoracquittalstatementsoftheprojectsactivities; (c) acopyofproject’sendoffinancialyearreportforeachfinancialyear; (d) acopyofprogressreportsonthephysicalandfinancialstatusoftheprojects;and (e) acopyofcompletionreportattheendoftheprojects.

(18)AccountingOfficersandProjectManagersshallensurethatanyinformationrequestedbytheTreasuryrelatingtodevelopmentprojectsismadeavailableandprovidedonatimelybasisandasrequested.

(19)ThePDMOshallberesponsibleformonitoringandevaluatingprojectsfundedorpartlyfundedthroughpublicdebttoensurethatborrowedfundsareusedfortheirintendedpurposes.

Receiving development assistance 136.Lineministriesshallbenefitfromdevelopmentassistanceinoneormoreways— (a) thedevelopmentpartner/lendermakesdirectpaymenttothesupplier/contractor,or (b) thedevelopmentpartner/lendermaysupplyacommodityorofferservicestoalineministry;or (c) thedevelopmentpartner/lendermakesfinanceavailablethroughtheTreasury.

Accounting for direct payment to the supplier or contractor

137.(1)Oncethelineministryhasreceivedappropriatedocumentationtosupport loan/grantexpenditure(e.g.shippingdocuments,orcertifiedprogresscertificatesbythesupplier)theDirectorofFinanceshallsendthesetotheAccountant-General.

(2)ItistheresponsibilityoftheAccountant-Generaltocheckthedocumentationagainstthetermsoftherelevantloanagreement related to theconditionsprecedent todrawingson the loan/grant.TheAccountant-General’sofficeshall send thecheckeddocumentstothedevelopmentpartner/lenderfordisbursementoffundsdirecttothesupplier/contract.

(3)Onreceiptofnotificationoftransferoffundsfromdevelopmentpartner/lendertosupplier(drawingonaloan),theAccountant-General’sOfficeshallconverttheamountexpressedinforeigncurrencytothefunctionalcurrencyattherateprevailingonthedateofthedisbursementtothesupplier/contractor.TheAccountant-General’sOfficeshallraiseaninvoicetothelineministrypurchasingthecommoditiesandtheinvoiceshallcapturethefollowinginformation— (a) the name of Ministry; (b) thedescriptionofproject; (c) thelender; (d) theforeigncurrencyamountandexchangerateused;and (e) the amount in the functional currency.

(4)OnreceiptoftheinvoicefromtheAccountant-General’sOffice,theDirectorofFinancewithinthelineministryshall,wherenecessary,requestinwritingthetransferoffundsfromtheVoteofCreditoranyotherFundasdirectedbyTreasury.

(5)Once theallocationhasbeenmadeavailablebyTreasury, theDirectorofFinanceshallensure that the invoice isprocessedforpaymentpromptly.

Goods and services received in kind under grant agreement 138.(1)Inthecaseofgoodsandservicesreceivedinkindundergrant/loanagreements(i.e.whereadevelopmentpartnerhaspaiddirectlytoasupplierorcontractor),AccountingOfficersshallnotifytheAccountant-Generaloftheestimatedvalueofthegoodsandservicesreceivedinkind.


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(2)AccountingOfficersshallpreparemonthlyreturnsonprojectexpenditurewhichshallincludearecordofthereceiptofthesegoodsorservicesbrokendownaccordingtothebudgetitemsagreedtobythedevelopmentpartnerwithTreasuryconcurrence.

Resources provided through Treasury

139. (1)Wherepayment is tobeeffectedbyGoZandwheremoneysareprovidedon theVoteofCredit, ifnecessary,AccountingOfficersshallrequestinwriting,fromtheAccountant-General’sOffice,atransferfromtheVoteofCredit.DirectorsresponsibleforFinanceshallensurethatatthetimetherequestisprepared;amonthlyforecastforexpenditureisattachedasthisformsthebasisfortransfersfromthevoteofcredittotheministry’svote.

(2)ForthoseprojectcostswherepaymenthasbeeneffectedbyGoZdirecttoasupplier,theAccountingOfficersshallsendmonthlyprojectexpenditurereportstotheAccountant-General’sOffice.

(3)TheAccountant-General’sOfficeshall,onreceiptofprojectexpenditurereportsfromalineministry,prepareaclaimforreimbursementfromthedevelopmentpartner/lenderintheformatprescribedandagreedtowiththedevelopmentpartner/lender. (4)TheAccountant-General’sOfficeshall,onreceiptof fundsfromthedevelopmentpartner/lender,prepareaPFMSgeneratedreceiptwhichshallincludethefollowinginformation— (a) nameandaddressofdevelopmentpartner/lender; (b) descriptionofreceipt; (c) methodofpayment(e.g.EFT); (d) dateissued;and (e) signatureofreceiptingofficer.

(5)TheAccountant-General’sOfficeshallmailthereceipttothecorrectaddressofthedevelopmentpartner/lender. (6)TheAccountant-GeneralshallaccountforthereimbursementthroughtheConsolidatedRevenueFundortheNDForanyotheraccountasdirectedbyTreasury.ThebankingproceduresfollowedshallbeasstatedinInstructionNos.0698to0702. (7)AnyAccountingOfficerwhoreceivesanddisbursesdevelopmentpartnerfundsonbehalfofandforGoZandoperateaseparatebankaccountasagreedwithadevelopmentpartner/agencyandchannelfundsoutsidethePFMS,shallprovideacopytoTreasuryofthesamefinancialreportspreparedandsenttodevelopmentpartnerorganizationsonaregularbasisandatendofthefinancialyear.

PART XXI

General

Claims by and claims against the Government

140.(1)Noofferofcompensationorex-gratiapaymentsinsettlementofanyclaimagainsttheGovernmentshallbemadewithoutthepriorauthorityofTreasury.

(2)EveryaccidentorotheroccurrencelikelytoresultinaclaimagainstoraclaimbytheGovernmentforcompensationshallbereportedimmediatelytotheAccountingOfficeroftheDepartmentconcerned.TheAccountingOfficershallreportthemattertotheTreasuryandtheAuditor-GeneralandshalldirectwhatfurtherinquiriesshallbemadetodetermineanyliabilityoftheGovernmentor,inthecaseofapossibleclaimforcompensationordamagesbyGovernment,shalltakethenecessarysteps,inconsultationwiththeGovernmentAttorney,topreferaclaimwhenthisiswarranted.

(3)TheGovernmentAttorneymustbeconsultedinanycasewherethevalidityofaclaimisindoubtorwhereanadmissionofliabilitymayprejudiceGovernmentinresistingfurtherclaimslikelytoariseinthesamecase.

(4)Whenaclaimismadebyanypersonarisingoutofanallegedbreachofcontracton thepartofGovernment, theAccountingOfficershallconsulttheGovernmentAttorneytodeterminethemannerinwhichtheclaimshallbesettled.WherethecontractinquestionwasawardedbythePRAZ,theAuthority’sBoardshallbeadvisedoftheclaim.

(5)ClaimsinrespectofinjuriesondutyshallbesubmittedontheprescribedformtothePensionsOfficertobedealtwithinaccordancewithprevailingregulations.

(6)AccountingOfficersmayincurexpenditureonclaimsawardedagainstGovernmentbytheCourtsoronpaymentsmadewiththeobjectofavoidinglitigationandchargeexpenditureontheirownVoteswhen— (a) theamountinvolveddoesnotexceedthresholdssetbyTreasuryattheirdiscretion;or (b) theamountinvolvedexceedssetthresholdsandisrecommendedbytheAttorney-GeneralortheDirectorofLegal

Servicesasthecasemaybe.

(7)Whentheamountinvolvedinanawardbyacourtorinthesettlementofaclaimexceedssetthresholds,theTreasuryshallbeconsultedbeforepaymentisdue.

(8)NoclaimbyGovernmentmaybewaivedwithouttheauthorityoftheTreasury.

Pensions

141.(1)Pensioncontributionsshallbedeductedfromeverypaymentofpensionableemolumentsmadetoapersonwhoisrequiredtomakecontributionsinaccordancewiththeprovisionsofanyrulesorregulations.

(2)ThecontributionsdeductedintermsofInstructionNo.1511shallbepaidovertothePensionsOfficerbeforetheclose

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of each month. (3)Iftheservicesofanypersonareterminatedforanyreason,oriftheyattainretiringageordie,fulldetailsofanapplicationforarefundofcontributions,apensionoragratuityincludingaforwardingaddress,shallbeenteredontheprescribedformwhichshallbeforwardedbytheEstablishmentOfficertothePensionsOfficerafterhavingbeenindependentlychecked.Thefactthatanapplicationhasbeenmadeand,whereapplicable,thereasonforterminationofemploymentshallberecordedontherelevanthistorycard,theformeractionbeingtakentoguardagainstthedualpaymentofbenefits.

(4)WhereanapplicationforarefundofcontributionsoragratuityistobemadesuchamountsasareknowntobeowedbytheofficerconcernedtoGovernmentaswellasanyoutstandingcurrentorarrearspensioncontributionsshallbenotedforrecoveryontheprescribedformasprovidedinInstructionNo.0582.

(5)Ifretirementisforareasonotherthanreachingretiringage,acopyoftheauthorityofthePresidentfortheretirementshallbeattachedtotheapplicationmadeintermsofInstructionNo.1516.

(6)OnthedeathofapensionerthePensionsOfficershallobtainfromthesurvivingspouseor,wherenecessary,thelegalguardianofthechildren,acompletedapplicationforasurvivingspouseand/orachildren’spensionontheprescribedform.

PART XXII

liabilities

Commitments

142.(1)AccountingOfficersshallensurethatallcommitmentsandinvoicesarepromptlyandaccuratelyrecordedinthePFMStomeetmanagementandexternalreportingneeds.

(2)ItistheresponsibilityofAccountingOfficerstosubmitmonthlyreportstoTreasurywithreasonableexplanationsonthereasonsfortheoutstandingdebtsandtheproposalsonhowtheyintendtosettlethem.

(3)WithintheperiodprescribedbytheAccountant-Generalfromtimetotime,theDirectorofFinanceshallprepareanAgingCommitmentReport,whichtheyshallsubmittotheAccountingOfficer.AccountingOfficersshallreviewsuchreportsonaregularbasis,signanddatethembeforesubmittingthemtoTreasurybythedeadlinesetbytheAccountant-General.

(4)TheinformationthattheDirectorofFinanceshallincludeinthemonthlyreportsonoutstandingandoverduedebtsshallbeinaccordancewiththeformatspecifiedbytheAccountant-General.

Employee entitlements

143.AccountingOfficersshallkeepaccurateandup-to-daterecordsofallleaveandotheremployeeentitlements.Accruedleaveinexcessof30daysshallbeincludedinthemonthlyreportonoutstandingdebtsastheyhaveafinancialimplication.

Contingent liabilities

144.(1)Contingentliabilitieshavetobeestimated,monitoredandcontrolled.GuaranteesissuedbyGoZarealegalandmostexplicitcontingentliabilitythatTreasuryshallmonitorandreporttoParliamentasprovidedforbytheregulatoryframework.Implicitliabilitiesontheotherhandremainhiddenandonlygetrealizedex-postwhengovernmentrecognisestheirgravityandconsequencesthatcompelsgovernmenttoact.Becausegovernmentcontingentliabilitiescanonlybecomerealliabilitieswhentheentitiesthatareprincipallyliablehavefailedtohonourtheircommitments,itisessentialthatreportsontheliabilitiesdistinguishbetweenthosethatarelikelytobecalledupfromthosethatarelikelynottobe.

(2)ThePDMOshallberesponsibleforassessing,monitoringandreportingofanyimplicitandexplicitpublicsectorcontingentliabilitiesandadvisingontheirmanagement.

(3)AccountingOfficersshallberesponsibleformaintainingaregisteroncontingentliabilities,whichshallincludethefollowinginformation— (a) adescriptionofthecontingentliability; (b) itsvalue,ifthiscanbemeasuredreliably; (c) thewayinwhichthecontingencyarose; (d) detailsofanyactionrequiredtominimisethepotentialloss;and (e) detailsofprogressinmanagingtherisk.

PART XXIII

transactions throuGh diPlomatic and consular missions

Policy 145.(1)AllDiplomaticandConsularmissionsshall,whereapplicable,adheretoalltheprovisionsofTreasuryInstructionsrelatingtothereceipts,disbursementsandsafecustodyofpublicfundsandpublicresources.

(2)Accordingtosection5ofthePublicProcurementandDisposalofPublicAssetsAct,procurementbyZimbabweandiplomatic or consularmissions outsideZimbabwe need not be conducted in accordancewith the statute governing publicprocurement inZimbabwe.However, it is the responsibilityof theOfficers inChargeof suchmissions to ensure that theirprocurementisconductedthroughacompetitiveprocesscompliantwiththegeneralprinciplessetoutinthePublicProcurementandDisposalofPublicAssetsAct.

(3)InsituationswheretheapplicationofanyprovisionsoftheseTreasuryInstructionsisnotpracticalinDiplomaticandConsularmissions,Treasury’sguidanceshallbesoughtinadvanceonthehandlingofspecificmatters.


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(4)Allexternalpurchases,paymentsandcollectionsonbehalfofGovernmentdepartmentsshallbemadethroughDiplomaticandConsularmissionswhere facilities forsuch transactionsexist. Inothercircumstancesdepartmentsshallmake theirownarrangementsinkeepingwiththeseinstructions.

(5)Whensuppliesaretobeobtainedexternally,Governmentdepartmentsshallproceedinaccordancewiththeprovisionsofprocurementregulations.

(6)PaymentsbyDiplomaticandConsularmissionstoofficersoronbehalfofGovernmentdepartmentsmayonlybemadeinpursuanceofTreasuryauthorities.

(7)Notransactionsonbehalfofnon-GovernmentbodiesorpersonsmaybecarriedoutwithoutspecificTreasuryauthority.

(8)WherefacilitiesexistinDiplomaticorConsularmissions,fortransactionsintermsofInstructionNo.1604,GovernmentDepartmentsshalladviseTreasurybyminuteinduplicate,ofanypaymentsorcollectionswhichtheywishDiplomaticorConsularmissionstomakeontheirbehalf.AcopyofeachadviceshallbesenttotherelevantDiplomaticorConsularmission. (9)DiplomaticorConsularmissionsshallsubmittotheTreasury,monthlystatementsoftransactionsmadeonbehalfofGovernmentDepartments.Thereportsshallbeaccompaniedbysupportingvouchers.

(10)OnreceiptofthestatementsoftransactionsfromDiplomaticorConsularmissions,Treasuryshallclearthereceiptsandpaymentstotherelativedepartments.Suchcreditsordebitsshallbeacceptedbydepartments“onsight”.Whereanydisputearises,theamountsinvolvedshallbeplacedinasuspenseaccountuntilthematterisresolvedbydirectcorrespondencewiththeDiplomaticorConsularmissions.IncaseofdisagreementtheTreasurydecisionshallbefinal.

(11)WhenaninstructionforthepaymentofanaccountappearstotheDiplomaticorConsularmissionstobeirregular,theOfficerinChargeshalladvisetheappropriateAccountingOfficerandtheTreasuryinwriting.IftheinstructionsshouldthenbeconfirmedinwritingbybothdepartmentsitmaybecarriedoutbytheDiplomaticorConsularmissionsfreeofresponsibility.

(12)EveryappropriationbyParliamentofpublicmoneyfortheserviceofafinancialyearandeverywarrantorotherauthorityissuedinrespectofthatfinancialyear,shalllapseandceasetohaveanyeffectatthecloseofthatyear.EveryDiplomaticorConsularmissionshallensurethattheunexpendedbalanceofanymoneyswithdrawnfromtheConsolidatedRevenueFundshallnotbecarriedforwardtothenextfinancialyear.TheunexpendedbalanceshallberepaidtotheConsolidatedRevenueFund.However,inordertosaveonbankcostsandtodealwithanyexchangeregulations,unspentbalancesattheendofeachfinancialyearshallbedeclaredtoTreasuryandshallreducetheamountswithdrawnfromtheConsolidatedRevenueFund.

Public financial management system 146.InstructionsinthissectionprovideguidanceonthePFMStoensuretransparency,consistencyandaccountability.ThekeyobjectivesofthePFMSaretoensurethatpublicresourcesareusedfortheintendedpurposes;achievevalueformoneywhenspent;andareproperlyrecordedandfullyaccountedfor.

Policy 147.(1)Allfundsfromwhateversourceshall,bytheyear2019,beaccountedforthroughthePFMS.Fortheavoidanceofdoubt,thisinstructionappliestoVotedfunds;InternationalDevelopmentAssistance;fundsretainedbylineMinistries;fundsmanagedunderStatutoryFunds;andPublicDebt.

(2)TherightsandpermissionsoverthebudgetandthefinancialtransactionsofalineMinistryrestwiththeAccountingOfficerandtheirstaff.AtnotimeshallofficersinTreasuryberesponsibleforcarryingoutpublicfinancialmanagementtransactionsonbehalfoflineMinistries.ItisanoffenceforTreasuryofficialstoundertakefinancialdutiesonbehalfoflineministries.

(3)TheAccountant-GeneralshallberesponsiblefortheconfigurationofthePFMS,traininglineministriespersonnelandprovidingtechnicalassistancewhenproblemsarise.

(4)Itisanactofmisconductforofficersinvolvedinpublicfinancialmanagementtoposterroneousdocuments.

(5)ItistheresponsibilityofAccountingOfficerstoissuedetailedinstructionsrelatingtoadministrativeresponsibilitieswithinthePFMS,specifyingclearlytherolesandresponsibilitiesofconcernedofficialsatalllevels.

System security

148.(1)ItistheresponsibilityoftheAccountant-Generaltomanagepasswordsandprofiles.LineMinistriesshall,withthepermissionoftheAccountant-General,havetheauthoritytoedittheirpasswordselectronically.TheresponsibilityforcreatingandchangingprofilesrestswiththeAccountant-General.

(2)ThePFMSAccountlockoutpolicyshallallowusersthreefailedlogonattemptsbeforetheSAPsystemisdisabled.

(3)AccountingOfficersshallensurethatallofficersinvolvedinpublicfinancialmanagementcomplywiththesecurityrequirementsofthePFMSasisprovidedforbysection4oftheOfficialSecretAct.

(4)Whenanofficerchangesministries,resignsorpassesaway,theAccountingOfficershallnotifytheAccountant-Generalsothattherelevantofficial’sprofileisdeletedand/oranewoneassignedasappropriate.

System administration

149.ThePFMSshallbeadministeredcentrallybytheAccountant-General’sDepartment,whichshallberesponsibleforproducingsystemuseranalysisreportsonaregularbasis.Thesystemuseranalysisreportshallprovidestatisticsonusersthat— (a) haveloggedon; (b) accessedthesystem;and

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(c) havenotaccessedthesystemoveralongperiodoftime. Disaster recovery and back-up plan

150.TheAccountant-General,withtheassistanceoftheMinistryresponsibleforICTshallberesponsibleforthedisasterrecoveryarrangementsandoffsiteback-upplanforthePFMS.

Documentation for the PFMS

151.AccountingOfficersshallensurethatthereisapapertrailforalltransactionspostedonthePFMS.Thedocumentsusedshallbestandardisedandseriallynumbered.

Vendor database creation and maintenance

152.(1)TheAccountant-Generalshallberesponsibleformaintainingacomprehensive,accurateandcrediblevendordatabase.

(2)Thevendordatabaseshallbereviewed,updatedandcleanedregularlytotakeintoaccountnewrequirementsandtheneedto,foranycompellingreason,removesomevendors.

PART XXIV

Financial rePortinG

Basis of preparation and presentation of financial statements

153.(1)Thepurposeofthissectionistoprovideguidanceonthepreparationandpresentationoffinancialstatementsthathelpenhancecomprehensiveandtransparentreportingofthereceipts,payments,liabilitiesandcashbalancesoftheGovernment.

(2)TheFinancialStatementsforVotedfundsshallbepreparedinaccordancewiththeAccountingFrameworkprescribedbytheBoardresponsibleforsettingAccountingStandardsinZimbabweandguidancesetoutintheAct.

(3)TheFinancialStatementsforFundssetupintermsofsection18oftheActshallbepreparedinaccordancewiththeAccountingFrameworkprescribedbytheBoardresponsibleforsettingAccountingStandardsinZimbabweandguidancesetoutin the Act.

(4)TheDirectorofFinanceshallensurethattheirrespectiveMinistriesmeetthedeadlinessetoutintheActasfollows— (a) monthlyfinancialstatementsthatshallbesubmittedtotheAccountingOfficerandAccountant-Generalwithin14

daysaftertherespectivemonth; (b) quarterlyfinancialstatementsthatshallbesubmittedtotheAccountingOfficerandAccountant-Generalwithin14

daysafterrespectivequarter;and (c) annualfinancialstatementsthatshallbesubmittedtotheAccountingOfficerandAccountant-Generalwithin30days

aftertheendoftheyearandtheseannualfinancialstatementsshouldbesubjectedtoanexternalaudit.

(5)ThepreparationoftheannualfinancialstatementsofGovernmentasawholeshallbetheresponsibilityoftheAccountant-GeneralinaccordancewiththeprovisionsoftheAct.

(6)TheAccountant-GeneralshallprepareConsolidatedFinancialStatementsonamonthly,quarterlyandannualbasis.TreasuryshallpublishtheconsolidatedmonthlyfinancialstatementsorcausethemtobepublishedintheGazette,within30daysofthefollowingmonth.

Contents of Financial Statements 154.(1)ThecontentsoftheFinancialStatementsforVotedfundsshallbepreparedincompliancewiththepronouncementsoftheBoardresponsibleforsettingAccountingStandardsinZimbabweandwiththeconcurrenceoftheAccountant-General.

(2)ThecontentsofFinancialStatementsforFundsshallbedeterminedbytheAccountingStandardsrecommendedforadoptionbytheBoardresponsibleforsettingAccountingStandardsinZimbabwe.

(3)FinancialStatementsunderthecashbasisofaccountingcompriseof— (a) astatementofcashreceiptsandpayments; (b) accountingpoliciesandexplanatorynotes;and (c) whentheentitymakespubliclyavailableitsapprovedbudget,acomparisonofbudgetandactualamountseitheras

aseparateadditionalfinancialstatementorasabudgetcolumninthestatementofcashreceiptsandpayments.

(4)FinancialStatementsundertheaccrualbasisofaccountingcompriseof— (a) astatementoffinancialposition; (b) astatementoffinancialperformance; (c) astatementofchangesinnetassets/equity; (d) astatementofcash-flow; (e) whentheentitymakespubliclyavailableitsapprovedbudget,acomparisonofbudgetandactualamountseitheras

aseparateadditionalfinancialstatementorasabudgetcolumninthefinancialstatement;and (f) notes,comprisingasummaryofsignificantaccountingpoliciesandotherexplanatorynotes.

Other reports 155.(1)ApartfromthefinancialstatementsstatedinInstructionNos.1813and1814,TreasuryexpectsAccountingOfficers


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tosubmitotherreportsaslistedinTable3below.Table 3: Reports requested by Treasury

Report Description Statutory Deadline Submission Date to Treasury

1 Outstanding Advances including Disallowances January 31 January 25

2 Outstanding Departmental Surcharges January 31 January 25

3 Outstanding Public Service Surcharges January 31 January 25

4 Outstanding Temporary Deposits January 31 January 25

5 Outstanding Treasury Orders January 31 January 25

6 Outstanding Treasury Surcharges January 31 January 25

7 Contingent Liabilities February 28 February 15

8 Other Capital Liabilities February 28 February 15

9 Public Financial Assets February 28 February 15

10 Bank Reconciliation Statements February 28 February 22

11 Departmental Assets February 28 February 22

12 Gifts, Legacies and Donations February 28 February 22

13 Losses of and Damage to Government Property February 28 February 22

14 Outstanding Revenue February 28 February 22

15 Revenue Written Off February 28 February 22

16 Compensatory and Ex-Gratia Payments February 28 February 25

17 Payments to Ministers and Members of Parliament February 28 February 25

18 Statement of Donor Funded Projects February 28 February 25

19 Unvouched Expenditure February 28 February 25

20 Payments by Ministers and Members of Parliament February 28 February 25

(2)Ifsubmissiondatesfallonanon-workingday,theduedateforreportsshallbethenextworkingday.

Audit of Financial Statements

156.(1)ItistheresponsibilityofAccountingOfficerstoensurethetimelysubmissionoftheirfinancialstatementsforaudit.AccountingOfficersshallalsorespondtoauditobservationsinamannerthatensuresthecompletionofauditsintime.

(2)Theannualreportsandauditedfinancialstatementsshall— (a) containareportontheactivities,outputsandoutcomesoftheMinistry; (b) fairlypresentthestateofaffairsoftheMinistry;include,whereappropriate— (i) particularsrelatingtolossesarisingthroughcriminalactivities,andcriminalanddisciplinaryactiontaken; (ii) instancesofunauthorisedexpenditure; (iii) instancesofirregularexpenditure; (iv) instancesoffruitlessandwastefulexpenditure; (v) recoveriesandwrite-offsofpublicresources;andanyothermattersasmaybeprescribed.

PART XXVI

internal controls

Policy

157.(1)TheinstructionsinthissectionseektogiveguidanceontheeffectivedesignandoperationofinternalcontrolsaswellastheestablishmentofAuditCommitteestoenhancecorporategovernanceandaccountabilityinthemanagementofpublicresources.

(2)ItistheresponsibilityofAccountingOfficerstoputinplaceacosteffectivesystemofinternalcontrolsthat— (a) addressestheMinistry’srisks; (b) safeguardsmoneyandpropertyagainstloss; (c) avoidsordetectsaccountingerrors;and (d) avoidunfavourableauditreports.

Officers or employees responsible for the receipt, recording and disposal of public moneys

158.(1)AccountingOfficersorReceiversofRevenueshallensurethatanyofficerwhosedutieshaveadirectbearingonthereceipt,recording,custodyordisposalofpublicmoneysshalltaketheirleavewhenitbecomesdue.AccountingOfficersshall

S.I. 144 of 2019

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takenoteofthePublicServiceCommissionrequirementthatthePrincipalEstablishmentOfficerrotatesMinistrystaffregularly. (2)AccountingOfficersshallensurethatthereissegregationofdutiesbetweenplacingorders,verification,andapprovalofinvoicesforpayment.

(3)Inthosedepartmentsthatsellgoodsorservices,AccountingOfficersshallensurethesegregationofdutiesbetweenacceptingordersfromclients,controlanddespatchofgoodsorservices,processingofandrecordingofsalesinvoicesandcashcollection.

(4)ThedistributionofresponsibilitiesforthepaymentofwagesandsalariesshallbeasoutlinedinInstructionNo.0650.

(5)Wheneverthereisanysuspicionthatactshavebeenorarebeingperformedinvolvingpublicmoneysorstatepropertywhichmayinvolvedishonesty,criminalintent,orcorruptiontheHeadofOfficeshallimmediatelyreportthemattertothePolice,Anti-CorruptionCommission and theirAccountingOfficer.Any reportmade to thePolice shall be the subject of awrittenacknowledgementwhichshallbeforwardedbytheHeadofOfficetotheirAccountingOfficer.

Handing over and taking over of duties

159. (1)AccountingOfficersandReceiversofRevenueshall issuedetailed instructionsgoverning theprocedures tobefollowedbyeveryofficerhandingovertheirdutiestoortakingoverdutiesofanotherofficerandshallfurnishtheAuditor-Generalwithacopyofsuchinstructions.

(2)Theinstructionsissuedshall,interalia,makeprovisionforthefollowing— (a) theverificationofstocksofsecurityitemsandfacevalueinstruments; (b) theruling-offofandbalancingofallaccountingrecordsandtheverificationofcashonhandandatthebank;and (c) theverificationoftheexistenceofanyGovernmentpropertyforwhichtheofficerhandingoverisresponsible.

(3)TheofficertakingovershallsubmitareporttotheAccountingOfficerorReceiverofRevenueregardingtheresultsofhisinspectionoftheofficeincludinganyunusualfeaturesorothermatterstowhichheconsiderstheattentionoftheAccountingOfficerorReceiverofRevenueshouldbedrawn.

(4)WhenanaccountingfunctionistransferredbetweenMinistries,theMinistrytakingoverthefunctionsshallsignifyinwritingtotheMinistryhandingoveritsacceptanceofthebooksofaccountsandotherrecords.Theacceptanceshallalsoincludealistofthebalancesshowninthebooksofaccounttakenoverandastatementtotheeffectthatsuchbalancesareacceptedasbeing correct.

Safes, strong-rooms, strong boxes and cash-boxes

160.(1)AccountingOfficersareresponsibleforthecontrolofsafes,strong-rooms,cash-boxesandstrong-boxesonchargetotheirdepartmentsandtheyshallcauseallsuchitemstobegivendistinctivenumbers.Registersshowingthedistinctivenumbers,types,makesandlocationsofallsuchitemsshallbeestablished.

(2)Anydepartmenttakingoccupationofleasedpremisescontainingstrong-roomsorbuilt-insafesshallrequesttheministryresponsibleforpublicworkstoarrangeforthewardsofthelockstobechangedbeforetheyaretakenintouseforGovernmentpurposes.

(3)Intheeventofadepartmentvacatingleasedaccommodationwhichcontainsstrong-roomsorbuilt-insafestheAccountingOfficershallensurethatallkeysrelatingtotheseitemsarehandedovertotheMinistryresponsibleforpublicworks.

(4)WhenGovernmentitselfhasarrangedfortheinstallationofafixedsafeorastrong-roomdoorinleasedpremises,arrangementsshallbemadewiththelessortoenabletheseitemstoberemovedontheexpiryofthelease,unlessarrangementscanbemadeforthelessortopurchasethematasatisfactoryprice.

(5)Wheresafesandstrong-roomshavecombinationlocks,thecombinationsofthelocksshallbechangedpriortotheirbeingtakenintouse.Thecombinationshouldbechangedperiodicallythereafterandinparticularwhenitisconsideredadvisableconsequenttothetransferorresignationofanypersonpossessingthecombination.

(6)TheHeadofOfficemaydelegatetooneormoreresponsibleofficersthecustodyofthekeysofsafes,strong-rooms,etc.

(7)Atall times thekeysshallbecarriedon thepersonof theofficerresponsiblefor them.If thisshouldprove tobeimpracticableorunsafeatanytime,thekeysshouldbeplacedinalabelledandsealedenvelopeinanalternativesafeorstrong-roominthechargeofanotherofficer.Areceiptshouldbeobtainedfromthelatterofficer.

(8)AnylossofkeysshallbereportedimmediatelytotheAccountingOfficerwhoshalladvisetheAuditor-GeneralandtheGovernmentProtectiveSecurityOfficer.Theuseoftheiteminquestionshallbediscontinueduntilthelockhasbeenalteredandnewkeyscut.Thecostofalteringthelockandcuttingnewkeysshall,unlesstheAccountingOfficerotherwisedirects,bebornebytheofficerdelegatedunderInstructionNo.1921.ThedamagetoanykeyshallsimilarlybereportedtotheAccountingOfficer.

(9)AccountingOfficersshallarrangeforthesafecustodyofduplicatekeysofsafesandstrong-roomswiththeirownheadofficeorwithotherGovernmentdepartmentsandfailingthiswithacommercialbank.Otherduplicatekeysshallbetheresponsibilityoftheheadofthedepartmentwhoshallkeeptheminsealedandlabelledenvelopesundersecurityconditions.

(10)Requestsforthereleaseofduplicatekeysshallnotbeaccededtounlessaccompaniedbythereceiptforthelodgementandastatementinwritingofthereasonsfortherequest.Inthecaseoflodgementwithacommercialbank,applicationsforthereleaseofduplicatekeysshallbemadeonlybytheHeadofthedepartmentorbranchofficeconcerned.

(11)Atsuitableintervalsandnotlessthanonceineachyear,acheckofduplicatekeysshallbecarriedoutbytheHeadof


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Officetowhichtheyrelate.AreportonthisexaminationshallbeforwardedtotheAccountingOfficer. (12)Anyattemptedorsuccessfulburglary,ordamagetoasafeorstrong-roombyfireshallbereportedimmediatelytotheAccountingOfficerwhoshalladvisetheAuditor-General.Afteraburglaryorafire,asafeorstrong-roomshouldnotbedisturbeduntilafterpoliceinvestigationshavebeencompletedandtheapprovaloftheAccountingOfficerorHeadofOfficehasbeenobtained.

Internal Audit 161.(1)ItistheresponsibilityoftheAccountingOfficertoensureinternalauditiscarriedoutinaccordancewiththeprovisionsoftheActandtheInternalAuditManual. (2)AccountingOfficersshallensurethatInternalAuditorsdonotparticipateinthedaytodaytransactionsofalineministrysuchaspre-auditofpaymentvouchersanddevelopmentofRiskFrameworks.

(3)Whereaccountingpersonnelistransferredtointernalauditduetostaffrotationorpromotion,suchpersonnelshouldrefrainfromauditingtheworkforwhichtheywereresponsible.

(4)TheAccountingOfficerandHeadsofDepartmentsshallensurethatinternalauditobservationsarepromptlyrespondedtoandinanycasenotlaterthantheexpirationoftwomonthsfromthedateofreceipt.Ifunderanycircumstancesareplywithintheperiodprescribedaboveisnotpossible,theAuditor-GeneralandtheAccountant-General,shouldbeinformedofthereasonsforthedelayandthetimelineswithinwhichsuchresponseswouldbeavailed.

Risk assessment

162.(1)AccountingOfficersshallcarryoutariskassessmentoftheirMinistriesoperationsonanannualbasis.Theyshalltakedeliberatestepstoidentify,quantify,assessandcomeupwithmitigationmeasuresfortherisksidentified.EveryAccountingOfficershallmaintaincompleterecordsandrelateddocumentsontherisksidentified.Suchriskrecordsshallbeupdated,monitoredandreviewedonaregularbasis.

(2)AccountingOfficersshallensurethatspecificcontrolobjectivesaresetandrelatedinternalcontrolsareputinplacetomitigatetheidentifiedrisks.

(3)AccountingOfficersshallsubmitacopyoftheirMinistry’sriskprofilereporttotheTreasuryandtheAuditor-GeneralbytheendofFebruaryeveryyear.

(4)TheHeadofInternalAuditshallprovideindependentassurancetotheAccountingOfficerontheeffectivenessandadequacyofriskmanagementcontrolsandriskmitigationmeasures.

Audit Committees

163.(1)TheAccountingOfficershallberesponsibleforestablishingtheMinistry’sAuditCommitteeandappointingmemberstothecommittee.AccountingOfficersshallensurethattheappointments,compositionandfunctionsoftheMinistry’sAuditCommitteecomplieswiththeprovisionsofsection84oftheActandAuditCommitteeFrameworkguidelinesissuedbyTreasury. (2)TheprimaryroleoftheAuditCommitteeshallbetoassisttheAccountingOfficerandTreasuryinthedischargeoftheirresponsibilitiesforensuringtheeffectivemanagementofandaccountabilityforpublicresourcesinaccordancewiththeprovisionsoftheAct.TheAccountingOfficershallensurethateverynewauditcommitteememberisprovidedwithaninductionprogrammethathelpsthemtounderstandthemandateofauditcommittees;scope;powersandreportingrequirementsamongother things. (3)AccountingOfficers shall ensure that thecompositionof theAuditCommitteepromotes theprinciplesofgenderbalanceandequity;andthemembersareappointedonmerit.ThecompositionoftheCommitteeshallincludeskills,knowledgeandexperienceasprovidedforintheAuditCommitteeFramework. (4)AccountingOfficersshallensurethatAuditcommitteemeetings,attendance,andaccesstoproceedingscomplieswiththeprovisionsoftheActandtheguidelinesissuedbyTreasuryfromtimetotime.ItistheresponsibilityofAccountingOfficers,inconsultationwithTreasury, toensurethatAuditCommitteesareprovidedwithsufficientfinancialresourcestoeffectivelydischargetheirmandate. (5)TheAccountingOfficershallensurethattheHeadofInternalAuditprovidessecretariatandadvisoryservicestotheAuditCommittee.ItishowevertheresponsibilityoftheChairpersonoftheAuditCommitteetoensurethattheminutesofeachcommitteemeetingarepreparedonatimelybasisandcopiedtotheAccountingOfficer,TreasuryandtheAuditor-General.

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APPENDIXA

Glossary oF acronyms

BSP BudgetStrategyPaperCSOs CommunityServiceOrganisationsEDDMC ExternalandDomesticDebtManagementCommitteeEFT ElectronicFundsTransferEOI ExpressionsofInterestGFS GovernmentFinanceStatisticsGoZ GovernmentofZimbabweGRN GoodsReceivedNoteLCS LeastCostSelectionIPSAS InternationalPublicSectorAccountingStandardMDAs Ministry,DepartmentandAgenciesNFC NearFieldCommunicationNDF NationalDevelopmentFundPDMO PublicDebtManagementOfficePFM Act Public Finance Management ActPFM Regulations Public Financial Management RegulationsPFMS Public Financial Management System PMU ProcurementManagementUnitPOS PointofSalePRAZ ProcurementRegulatoryAuthorityofZimbabweQCBS QualityandcostbasedselectionRFQ RequestsforQuotationsRFP RequestforProposalRTGS RealTimeGrossSettlementSAP SystemApplicationProductsSFB SelectionunderfixedbudgetS.I Statutory InstrumentSIC SelectionofIndividualConsultantSSS Single Source Selection TOR TermsofReferenceTT TelegraphicTransferUSD UnitedStatesDollar


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Supplement to the Zimbabwean Government Gazette dated the 28th June, 2019. Printed by the Government Printer, Harare.

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