LAWS  OF GHANA


                                                PUBLIC FINANCIAL  MANAGEMENT  ACT, 2016     ACT 931




Preliminary Provisions

1.  Object of this Act

2.  Application

Responsibilities and Roles for Public Financial Management

3.  General  responsibility

4.  Responsibilities  of Minister

5.  Powers of Minister

6.  Responsibilities  of Chief Director

7.  Duties of a Principal Spending Officer

8.  Controller  and Accountant-General

9.  Deputy  Controller  and Accountant-General

10.  Budget Office

11.  Oversight  of Parliament

Macroeconomic and Fiscal Policies

12.  Application  of sections  13 to  18 l3.   

13 Fiscal policy principles

14.  Fiscal policy objectives

15.  Fiscal Strategy Document

16.  Fiscal policy indicators

17.  Cabinet to adhere to targets in Fiscal Strategy Document

18.  Suspension  of rules or targets

Budget Preparation, Approval  and Management

19.  Salary negotiations  for public sector

20.  Guidelines  for preparation  of annual  budget

21.  Annual budget

22.  Approval  of annual  budget by Parliament

23.  Expenditure  in advance  of appropriation

24.  Budgeting on a gross basis

25.   Commitment  of approved  budget

26.   Expiry  of appropriation

27.  Performance  Report

28.  Mid-year  review

29.   Re-allocation  of funds from a covered entity

30.  Budget implementation  by Principal  Spending Officers

31.  Cash flow forecast

32.  Virement

33.  Multi-year  expenditure  commitments

34.  Submission of quarterly   reports on budget implementation

35.  Supplementary  budget

Contingency Fund

36.  Contingency  Fund payments  and advancements

Sinking Fund and Debt Servicing

37.  Creation  of Sinking Fund

38.   Sources of money for the Sinking Fund

39.  Administration  of the Sinking Fund

40.  Bank account  of Sinking Fund

41.  Payment  from Sinking Fund

42.  Accounts  and audit

43.  Annual  report and other reports

44.   Transfer of money

Cash and Asset Management

45.  Management  and use of Government  moneys

46.  Treasury Single Account

47.   Collection,  deposit and retention  of Government  revenue

48.   Consolidated  Fund

49.   Investment of balances on the Consolidated  Fund

50.  Spending from the Consolidated  Fund

51.  Bank account management

52.   Custody  and management  of assets

53.  Abandonment   of claims and write off of public funds

Public Debt Management

54.  Functions  of the Public Debt Management  Office

55.  Government  borrowing  and debt management

56.  Approval  of Parliament  of terms  and conditions  of government borrowings

57.  Borrowing  purposes

58.  Debt management  objectives

59.  Debt management  strategy

60.  Annual  borrowing  and recovery plan

61.  Issuance of government debt securities in the domestic debt market

62.  Issuance of government  debt securities abroad

63.  Borrowing from banks and other financial institutions

64.  Other market transactions

65.  Status of Government  debt

66.  Government  guarantees

67.  Government  lending

68.  Supplier's credit agreements  entered into by Government

69.  Finance lease agreements entered into by Government

70.  Record  of government  debt and finance arrangements

71.  Publication  of government  debt and finance arrangements

72.  Annual  report to Parliament

73.  Borrowing  by local  government  authorities,  public  corporations and state-owned  enterprises

74.  Borrowing by local government  authorities

75.  Reporting  requirements  of local government  authorities

76.  Borrowing by public corporations  and state-owned enterprises

77.  Reporting  requirements   of public  corporations   and  state-owned enterprises

78.  Power to appoint  agents

79.  Submission  of financial  statements

80.  Annual  accounts

81.  Consolidated  annual  accounts

82.  Changes to accounting  or classification system

83.  Internal  audit

84.  External  audit

85.  Report  on findings and recommendations

Audit  Committees

86.  Establishment  of Audit  Committee

87.   Composition  of Audit  Committee

88.  Functions  of Audit  Committee

89.  Submission  of consolidated  audit  accounts  of local  government authorities

90.  Duty  of governing  body  of public  corporation  and  state-owned enterprise

9l.    Collection and receipt of moneys due to public corporations

92.  Removal  of directors of a public corporation

93.  Annual  financial  plan  of public  corporations   and  state-owned enterprises

94.  Financial  directives to public corporations  and state-owned enterprises

95.  Accounts  and audit of public corporations  and state-owned enterprises

Miscellaneous  Provisions

96.  Offences and penalties

97.  Surcharge

98.  Penalty for contravention of this Act

99.  Waiver of sovereign immunity

100.  Fiscal impact analysis of legislation and proposals

101.  Regulations

102.  Interpretation

103.  Repeals and savings

104.  Transitional  provisions


                                                              REPUBLIC OF GHANA


                              OF THE PARLIAMENT OF THE REPUBLIC OF GHANA


                       PUBLIC FINANCIAL MANAGEMENT  ACT, 2016 ACT 921

AN Act to regulate the financial management  of the public sector within a macroeconomic   and fiscal framework;  to define responsibilities of persons  entrusted  with  the management   and control  of public funds, assets, liabilities and resources,  to ensure  that public  funds are sustainable and consistent with the level of public debt; to provide for accounting  and audit of public funds and to provide for related matters.


PASSED by Parliament  and assented to by the President:

Preliminary  Provisions

Object  of this Act

1.  (1) The object of this Act is to regulate the financial management of the public sector within  a macroeconomic   and fiscal framework.

(2)  For the purpose of subsection (1), there shall be established

(a)  a framework   to  support   a  sound  fiscal  policy  and  the macroeconomic   management   of public  funds;

 (b)  processes for  the  preparation, approval and management of a  transparent,  credible and predictable  annual budget;

(c)   mechanisms  for the operation  of the Consolidated  Fund;

(d)  mechanisms for the management  of public funds, assets and liabilities;

(e)   internal  and  external  audit  frameworks  and  correlative reporting  and accounting  systems; and

(f)   a mechanism  to oversee the matters specified under para- graphs (a) to (e).


2.  (1) This Act applies to

(a)  a covered entity;  and

(b)  a public officer responsible for receiving, using, or managing public funds.

(2)  This  Act  shall  be read  together   with  any  other  enactment relevant to public financial management.

(3) Where  there is a conflict or inconsistency  between  the provisions of this Act and any other relevant enactment,  the provisions of this Act shall prevail.

Responsibilities and Roles for Public Financial Management

General responsibility

3.   The Minister, Chief Director, Controller and Accountant-General,

a Principal Account Holder, a Principal Spending Officer and any other public officer designated by the Minister  to manage  public funds shall discharge  their respective responsibilities  and exercise their powers  in accordance with this Act and the Regulations.

Responsibilities  of Minister

4.  (1)  The Minister is responsible for the policy and strategic matters related  to the  efficient operation  of the  public financial  management system of the country  subject to policy guidance from Cabinet.

(2) For the purpose of subsection (1) and subject to the Constitution and any other enactment,  the Minister  shall

(a)  prepare the annual and supplementary budget estimates and reports for submission to Parliament;

 (b)  submit to Parliament  for approval,  the budget  of covered entities as required under  this Act or any other enactment to ensure compliance  of the covered entities;

(c)  monitor   and  assess  the  implementation     of the  annual budget and ensure the implementation  of the fiscal policy of Government;

(d)  manage  Government   property,  financial  assets,  Govern-

ment  debts, Government  guarantees  and other  contingent liabilities specified under this Act;

(e)   account  for public  funds  through   a consolidated   public account;

(f)   supervise the financial operations  of a covered entity;

(g)  prepare  Fiscal Strategy Document;

(h)  manage  public funds;

(t)   coordinate, mobilise resources including financial assistance

from development partners and integrate the resources into the  planning,   budgeting,   reporting   and  accountability processes provided under this Act;

(J) provide policy framework  for conducting  banking  and management  of cash for a covered entity;

(k)   issue directives and instructions  necessary for the effective

implementation  of this Act or any other enactment  to the head of a covered entity, a Principal Account  Holder  and Principal  Spending Officer of a covered entity; and

(I)   perform   any  other  functions   assigned   to  the  Minister under this Act.

Powers  of Minister

5.  (1)  Pursuant  to section 4, the Minister may

(a)  request a report or any other information from any covered entity or any other person receiving grants, advances, loans, guarantees  or indemnities  from the Government;

(b)  in consultation  with the Civil Service Council and with the

approval  of  Cabinet,  establish  structures  or units, within the Ministry necessary to enable the Minister discharge responsibilities under  this Act;

(c)   acting on the advice of the Attorney-General  and subject to the approval of Parliament,  enter into and execute an agreement on behalf of the Government  in relation to matters of a financial nature; and

 (d)  give directives and instructions necessary for the implementation  of the provisions  of this Act.

(2) The  Minister  may  delegate  any of the responsibilities  under subsection  (1) to the  Chief  Director  or to a senior  public  officer not below the rank of a Director within the Ministry but shall not be relieved of the  ultimate   responsibility   for  the  performance   of the  delegated responsibility.

(3)  Subject  to any  procurement   laws, the  Minister  may hire  or retain the services of professionals, consultants or experts, as the Minister considers  necessary  for the proper  and  effective performance   of the functions of the Minister under this Act, on the terms and conditions to be agreed upon.

Responsibilities   of Chief Director

6.  (1) In addition to the duties assigned under section 20 of the Civil Service Act, 1993 (PNDCL  327) and responsibilities specified under this Act relating to a Principal Spending Officer, the Chief Director  shall

(a)  advise the Minister on economic, budgetary, and financial matters  and  on matters  related to the implementation   of this Act;

(b)  coordinate  the preparation  of the (i)   Fiscal Strategy Document, (ii)  budget estimates, and

(iii) the Appropriation  Bill;

(c)  co-ordinate the promotion and enforcement of a transparent, efficient and effective management  of

(i)  public revenue,

(ii)  public expenditure,  and

(iii) the assets and liabilities of a covered entity;

(d)  monitor  the performance  of the public financial  management systems of the public sector;

(e)  monitor the financial and related performance of a covered entity;

(f)   prepare  a report  within  one month   after the end of each quarter  on the implementation  of the annual budget by the Government  and submit the report to the Minister.

(2)  For  purposes   of  subsection   (1), the  Chief  Director

(a)   shall  through   the  Controller   and  Accountant-General      have access,  during  working   hours,  to

(i)    the  accounting   records  or information   of a covered entity,

(ii)   the place where public accounting  services are carried out,  and

(iii)  the place  where  public  accounting   records  are kept; and

(b)  may   inspect,     during    working      hours,    the   offices   of  a covered     entity   and   access   any   information      relating    to public  finance   that  the  Chief  Director   may  request.

(3)  The  Chief  Director   may, under  paragraph   (c) of subsection   (1), authorise   a public  officer  to inspect  the  offices  of  a covered  entity.

(4)  The  Chief  Director   may, in writing,  delegate  any  of the responsibilities  under  this  section  to a senior  public  officer  of the  Ministry   but shall not be relieved  of the ultimate   responsibility   for the discharge   of the delegated   responsibility.

Duties  of a Principal  Spending  Officer

7.  (1)  A Principal   Spending   Officer  of a covered  entity  shall

(a)  ensure   the  regularity   and  proper   use  of money   appropriated  in that  covered  entity;

(b)  authorise  commitments  for  the covered   entity   within   a ceiling  set by  the  Chief  Director   under   section  25; and

(c)   manage   the  resources   received,   held  or  disposed   of by  or on account   of  the  covered  entity.

(2)  A  Principal    Spending   Officer  shall,  in  the  exercise   of  duties under  this Act,  establish  an effective  system  of risk management,    internal control  and  internal   audit  in respect  of the  resources   and  transactions    of a covered  entity.

(3)  Where   a Principal   Spending   Officer  receives   a subvention   on behalf   of  another   entity,  that  Principal   Spending   Officer  shall  remit  the subvention    to  that  other entity   in  accordance    with  the  approved    cash flow plan  for the  subvention.

(4)  A  Principal     Spending    Officer    may   delegate    a  function    or responsibility    specified   in  this  Act  to  a public   officer  who  is under   the control of that Principal Spending Officer but shall not be relieved of the ultimate responsibility  for the performance  of the delegated function or responsibility.

(5) Where  a Principal  Spending  Officer delegates  a function  or responsibility under subsection (4), that Principal Spending Officer shall give the directives necessary for the proper exercise or performance  of that  function or responsibility.

Controller   and Accountant-General

8.  (1)  The  President   shall,  in accordance   with  article  195 of the Constitution,  appoint  a Controller  and Accountant-General   who  shall be the Chief Accounting Officer of the Government and the chief advisor to the Minister and Government  in matters relating to accountancy.

(2)  The  terms  and  conditions    of service  of a  Controller   and Accountant-General   shall be specified in the letter of appointment  and shall be appointed  for a term of four years which  may be renewed  for another  term of four years.

(3)  The Controller and Accountant-General   shall be responsible to the Minister for the custody, safety and integrity of public funds.

(4)  The Controller and Accountant-General   shall

(a)  compile and manage   the accounts prepared in relation to public funds;

(b)  issue general instructions  to a Principal  Spending  Officer in accordance  with this Act and the Regulations;

(c)   keep,  render  and publish  statements  on public  accounts under this Act;

(d)  develop efficient accounting systems for a covered entity;

(e)   approve  accounting instructions  of a covered entity;

(f)   receive,  disburse  and  provide  secure  custody  for public funds;

(g)  on the instructions  of the Minister, open an account with the Bank of Ghana and its agents necessary for the deposit of public  funds subject to compliance  with the Treasury Single Account system established under section 46;

(h)  authorise the opening of an account for a covered entity;

 (i)    in  consultation   with  the  Auditor-General,    specify  for a covered entity, the accounting  standards,  policies and the classification system to be applied in public accounting  to ensure that a proper  system of accounting  operates;

(;)   provide accounting  officers to covered entities; and

(k)  be responsible  for the  classification  and  management   of value books.

Deputy  Controller   and Accountant-General

9.  (1)  The  President   shall,  in accordance   with  article  195 of the Constitution,  appoint  Deputy  Controllers  and Accountants-General.

(2)  A Deputy  Controller  and  Accountant-General   shall perform functions assigned by the Controller  and Accountant-General.

Budget  Office

10.  (1)  The Ministry shall have an office known as the Budget Office. (2) The Budget Office shall be responsible for

(a)  the preparation  of the annual estimates and Medium-Term

Expenditure   Framework  within  the constraints  specified in the Government's  Fiscal Strategy Document;

(b)  the preparation  of the mid-year review and quarterly budget implementation  reports under  sections 28 and 34;

(c)   advising  the Minister  through  the  Chief Director  on all

matters related to the annual budget, supplementary  budget and the Medium  Term Expenditure  Framework;

(d)  advising  the  Chief  Director   on  matters    related  to  the

classification of the budget and systems required to prepare the budget; and

(e)  perform any other function assigned by the Chief Director.

Oversight  of Parliament

11.  (1)  Subject to the Constitution,  Parliament shall provide oversight in respect of

(a)  matters relating to budget and finance;

(b)  government  expenditure;

(c)  performance  reporting;

(d)  post-legislative scrutiny; and

(e)   impact of financial policy measures  on the economy.

 (2) The Speaker of Parliament  may assign responsibilities under subsection (1) to a committee  of Parliament  or an office established by Parliament  for that purpose.

Macroeconomic and Fiscal Policies

Application of sections  13 to 18

12. (1) The provisions   of sections   13 to 18 apply to the central Government.

(2) The Minister may, by legislative instrument, extend the application of sections 13 to 18 to local government authorities  and public corporations.

Fiscal Policy principles

13.  (1)  The following general principles of fiscal management  apply for the effective implementation  of this Act:

(a)  the  Principal   Account   Holder  and  Principal   Spending Officer of a covered entity shall be accountable  to Parliament for the performance  of their functions with respect to the implementation  of fiscal policies;

(b)  Fiscal Policy shall be developed in a manner that takes into account  the impact on the welfare of the current  population and future generations;

(c)  Fiscal Policy shall be conducted  in a manner  that avoids

abrupt  changes  in the  evolution  of macroeconomic   and fiscal indicators;  and

(d) the management  of public funds, assets and liabilities, including natural  resources, and fiscal risks in the country shall be conducted  in a prudent  way, with a view to maintaining fiscal sustainability.

(2) The following principles shall guide the formulation and implementation  of Fiscal Policy objectives:

(a) sufficient revenue mobilisation to finance  Government programmes;

(b)  maintenance   of prudent  and  sustainable  levels of public debt;


(c)   ensuring that the fiscal balance  is maintained  at a sustain- able level over the medium term;

(d)  management  of fiscal risks in a prudent  manner;  and

(e)  achieving  efficiency, effectiveness and value for money in


(3)  Fiscal management  shall be carried out in a professional  and transparent  manner  and in accordance  with best practice and standards.

(4) For purposes of subsection (3),

(a)  the roles and responsibilities of a covered entity and public officer with  respect  to the  implementation   of the  Fiscal Policy shall be clearly established and defined;

(b)  timely   information   related   to  the  management    of the Fiscal  Policy  shall be made  available  to enable  effective scrutiny of the Fiscal Policy and the management  of public finances; and

(c)   a person responsible  for publicising information  shall not withhold  the  information   except  for reasons  of national security, defence, or international obligations of the Republic.

Fiscal  Policy  objectives

14.   (1) The prime Fiscal Policy objective of Government  is to ensure the macroeconomic   stability of the country  within  the macroeconomic and fiscal framework.

(2)  The  Government    may  determine   any  other  fiscal  policy objective, consistent with the principles set out in section  13.


Fiscal  Strategy  Document

15.   (1)  The Minister  shall, not  later  than  the  end  of May  of each financial  year,  prepare  and  submit  to  Cabinet  for approval,  a Fiscal Strategy Document.

(2) The Fiscal Strategy Document  shall specify

(a)  the  Medium-Term  Fiscal Framework  of the Government with measurable  fiscal objectives and targets to guide short and medium  term fiscal planning  for the ensuing three to five year period,  consistent  with the fiscal principles  and fiscal policy objectives of Government;


(b)  an updated  and  comprehensive  medium-term  macroeco- nomic  and  fiscal forecast covering  current  developments and multiple year projections in line with the co-ordinated programmes  of economic and social development  policies as specified in article 36(5) of the Constitution;

(c) the Medium-Term  Expenditure Framework of the Government with a resource envelope and overall expenditure ceiling;

(d)   a statement of policy measures the Government shall implement in order to stay within the confines of the fiscal policy objectives;

(e)  a comprehensive and quantified fiscal risk statement for the

public sector showing the impact of alternative macroeconomic  assumptions   on  the  forecast  fiscal balances,  and quantified  risks of guarantees,   contingent  liabilities  and public private  partnerships;

(f)   the Medium  Term Debt Management   Strategy including debt sustainability analysis and sensitivity analysis of macro- fiscal risk senarios;

(g)  a progress report on the implementation of the Fiscal Strategy Document  for the previous financial year; and

(h)  the  alignment  of statutory  and  other  earmarked  funds to national  macro-fiscal goals and targets.

(3) The  report  referred to under  paragraph  (g) of subsection  (2) shall include

(a)  an  update   on  the  macroeconomic    forecasts   and  fiscal outturns;

(b)  the implementation  of the fiscal policy and progress against the fiscal principles  and rules, including targets where feasible;

(c) an explanation of deviations from the fiscal principles, rules and targets for the short and medium  term objectives; and

(d)  an explanation  of the measures taken to respond to deviations.

(4) In addition to the requirements specified in subsection (2), the Minister may propose specific numerical fiscal rules in the Fiscal Strategy Document  to constrain  Government  with  specific reference  to one  or more budget aggregates subject to subsection (5).

 (5)  A numerical   rule proposed   shall  be consistent   with

(a)  the  Fiscal   Policy   objectives   and  Fiscal   Policy   indicators specified  under  sections   14 and  16 respectively;

(bJ  the Petroleum  Revenue Management   Act, 2011 (Act 815); and

(c)   any  other  relevant   enactment.

Fiscal  policy  indicators

16.  (1)   Compliance   by Government    with  the  fiscal  policy  objectives, fiscal   policy   principles    and   other   requirements      shall   be  assessed    in accordance    with  the  following   indicators:

(a)  the non-oil primary   balance   or non-oil  fiscal  balance,   as  a percentage of gross  domestic   product;   and

(b)  any  two  of the  following   fiscal  policy  indicators:

(i)   public debt as a percentage  of gross domestic product;

(ii)   capital   spending   as  a percentage    of total   expenditure;

(iii)  revenue   as a percentage   of gross domestic   product;


(iv)  wage bill as a percentage   of tax revenue.

(2)  The  Ministry   shall review  the fiscal  policy  indicators   specified in subsection   (1), every  five years.

Cabinet   to  adhere  to targets   in Fiscal  Strategy   Document

17.  Subject  to  article   76(2) of the  Constitution,    Cabinet  shall,  adhere to the targets  set out in the Fiscal  Strategy  Document,

(a)  in  making   decisions   with  implications    for public  finances,

(b)  in  determining,   formulating   and  implementing    the  policies of the  Government,    or

(c)   in performing    any  function   conferred   on  it by the  Constitution,   this  Act  or  any  other  enactment.

Suspension    of rules  or targets

18. (I)   A fiscal target   or rule provided for in the Fiscal Strategy  Document  may be suspended   with  the prior  written  approval  of Cabinet  where

(a)  any  of the  following   events  occur:

(i) a natural   disaster,  public  health  epidemic,   or war  as a result   of  which   a  state   of  emergency    has  been declared by  the  President    under   article   31 of  the Constitution;


 (ii)  an unanticipated  severe economic shock, including commodity  and oil price shocks; and

(b)  as a result of the occurrence  of an event under paragraph

(a), the Minister is of the opinion that the implementation of any of the fiscal targets or rules would be unduly harmful to the fiscal and macroeconomic   or financial  stability  of the country.

(2) Where an event under subsection (1) has occurred, the Minister shall  submit  a memorandum    to  Cabinet  to request  for  approval  to suspend any of the rules or targets in the Fiscal Strategy Document.

(3)  The Minister shall state in the memorandum

(a)  the  reasons  why the implementation   of the fiscal rule or target would be harmful to the finances and macroeconomic or financial stability of the country;

(b)  the  period  within  which  the fiscal rule or target  is to be suspended;  and

(c)   a fiscal adjustment  plan setting out the measures to return

to a position  of compliance  with the  fiscal rule or target within a period of not more than five years.

Salary negotiations    for public sector

19.  (1)  The Minister responible for Employment  in consultation with the Minister shall ensure that

(a) salary and other compensation  negotiations  in respect of the public sector for the ensuing financial year are completed

not later than the end of April of the current financial year; and

(b)  the  Fiscal  Strategy Document  required  under  section  15 reflects the negotiated aggregate of public sector salaries andcompensation  for the ensuing year.

(2) Where salary and other compensation  negotiations  in respect of the public sector are not completed by the end of April of the current fiscal year, the Fiscal Strategy Document  prepared for the ensuing fiscal year shall state an expected negotiated aggregate of public sector salaries and compensation  for the ensuing year based  on the negotiated  public sector salaries and compensation  for the preceding fiscal year.

 Guidelines for preparation of annual budget

20. (1) The Minister shall

(a) subject to Cabinet approval, issue guidelines for the prepa­ration of the budget for each financial year; and

(b) circulate copies of the guidelines to each covered entity not later than the 30th of June of every year.

(2) The guidelines shall include

(a) the economic outlook for the country;

(b) revenue forecasts;

(c) fiscal targets in relation to the fiscal principles, particularly, the need to achieve sustainable levels of public debt and fiscal balance;

(d) medium-term fiscal framework including key assumptions;

(e) the multiple year ceilings for each covered entity in line with the Fiscal Strategy Document;

(f) the ceilings on the required number of staff for each covered entity and the cost of appropriation for the relevant year for the public service;         ˇ

(g) the reconciliation of any change to the previous Medium­ Term Expenditure Framework arising from the discretionary policy changes, baseline parameters, and re-allocation of expenditure items;

(h) the selection criteria for investment projects, including provision for linking forward recurrent expenditure estimates to investments;

(i) the ceilings for the preparation of the budget estimates of local government authorities;

(j) details of expenditure under statutory funds and alignment and co-ordination of statutory funds with fiscal objectives, targets and other aspects of the budget; and

(k) any other information required from a covered entity to enable the Minister prepare the annual budget in accordance with the requirements of section 21.

Annual budget

21. (1) The Minister shall,

(a) in consultation with the relevant stakeholders, prepare the proposed annual budget not later than 1st October of each financial year; and

(b) submit the proposed annual budget to Cabinet for approval not later than the  15th   of October of  each financial year.

(2)   Cabinet shall, not later than the 30th of October of each financial year,  communicate   to  the  Minister,   the  decision  of  Cabinet  on  the proposed annual  budget.

(3)  The  Minister   shall,  on behalf  of the  President,   lay  before Parliament  not later than the  15th of November  of each financial year, estimates   of the  revenues   and  expenditure   of the  Government,    the annual budget, for the ensuing financial year.

(4)  The estimates of expenditure  of all public offices and public corporations  other than those set up as commercial ventures, shall

(a)  be classified under programmes  or activities in the Appropriation Bill to be introduced  into Parliament,  and-

(b)  in respect of payments charged on the Consolidated Fund, be laid before Parliament  for the information  of members of Parliament.

(5)   The annual budget shall

(a)  be based on

(i)    sound  analysis  and  forecasts  of macro-economic

developments  and fiscal projections  in relation  to the Medium-Term National Development Plan; and

(ii)  approved  plans;

(b)  be consistent with the Fiscal Strategy Document;

(c)   indicate

(i)  an  update   of  the macro-economic  and  fiscal projections in the Fiscal Strategy Document;

(ii) any change  in the projections  of fiscal aggregates under the Fiscal Strategy Document  prepared  and an explanation  for the change; and

(iii) any change in the fiscal targets and ceilings under the Medium-Term Expenditure Framework;

(d)  set out the recent trends and developments on the indicators of the economy  of the country  and provide  forecasts of the indicators, for a three to five year period;

(e)   provide detailed information on recent fiscal developments and forecasts for the  period  determined  by the Minister under paragraph  (d) in respect of

 (i)     Government;

(ii)   recurrent and capital expenditures of Government; (iii)  borrowing  and debt servicing of the Government; (iv)  an  overall  net  borrowing   limit  for  Government defined with reference to the Medium  Term Fiscal Framework, and the nominal limit of total financial borrowing   by  Government    in the  course  of the financial year;

(v)   contingent  liabilities of the  Government  including those related to public private partnerships;

(vi)  the amount  and uses of internally-generated  funds retained by a covered entity;

(vii) the amount  of outstanding  accounts receivable and payable;

(viii) a statement of tax expenditures, including the total cost of existing tax expenditures  and the disclosure of new tax expenditures;

(ix)  the ceilings on the required number of staff for each Ministry,  Department   or Agency  and  the  corresponding amount appropriated to operate the public service for the ensuing financial year; and

(x)   any  other  information    in respect  of assets  and liabilities that the Minister  considers  appropriate;

(f)   indicate  the  financing  estimates  for the  financial  year to which the budget relates, including

(i)    the financing to be transferred from the Petroleum Funds and other similar funds to the Consolidated Fund;

(ii)   the  plans  for  domestic   financing   of the  annual budget comprising borrowings by Government  and the drawing down of Government  deposits;

(iii)  the plans for external financing of the budget in the form of borrowing  and grants;

(iv)  a plan  for  the  government   debt  and  any  other financial liabilities for the financial year to which the annual budget relates;

(v)   a plan for the guarantees to be issued in the financial year; and

(vi)  a plan for divestment  of government  assets;

 (g)  provide  for the  expenditure   estimates  for the preceding financial year, the current  financial year, and the ensuing financial year;

(h)  contain  a statement  of the multiple  year commitments  to

be made by Government  in the financial year, which shall include a legally-binding ceiling on such commitments;

(t)   include a schedule of all major investment projects by vote,

taking account of total project costs and expected commit- ments of the annual budget and Medium Term Expenditure Framework;

(j)   indicate the budgets of covered entities and the opinion of Government  on the budgets; and

(k)   state any grant or subvention made to a local government authority for the financial year.

(6) The Minister shall present the annual budget accompanied with

(a)  the Appropriation  Bill and any other Bill that is required to implement the annual budget; and

(b)  a memorandum  specifying the measures taken by Government to implement in the ensuing financial year the recommendations  of Parliament  in respect  of the report  of the Auditor-General  with respect to this Act.

(7)  The Minister  shall, publish in the Gazette, the Appropriation Act on or before the 31st of December of each financial year.

(8)   For the purpose  of subsection  (1),  "relevant  stakeholders" include  the Ministry   of Finance,  Bank  of  Ghana,   Ghana  Statistical Service, civil society organisations, Ministries, Departments and Agencies, Ghana Revenue Authority, Controller and Accountant-General's Department, National  Development  Planning  Commission and a local government  authority.

Approval  of annual  budget  by Parliament

22. (1)  Parliament  shall, by the 31st of December  of each financial year, consider and approve

(a) the  annual   budget   and  the  correlative    work  plan   of Government  for the ensuing financial year;

(b)  the Appropriation  Bill; and

(c)   any  other  Bill that  may  be required   to  implement   the annual budget.

(2) The annual budget, approved by Parliament,  takes effect from the Ist day of January of the ensuing year.

Expenditure  in advance of appropriation

23.  Where  the  President  is satisfied  that  the  Appropriation   Act in respect of a financial year, will not come into operation  at the beginning of  that  financial  year,  the  President  may, with  the  prior  approval  of Parliament,  by

(a)  resolution  in accordance  with article 180 of the Constitution,  and

(b)  warrant  addressed  to the Minister,

authorise  the issue of moneys from the Consolidated  Fund  for purposes

of meeting the expenditure necessary to carry on the services of the  Gov- ernment,  until the expiration  of three months from the beginning of that financial year, or from the coming into operation  of the Appropriation Act, whichever is  earlier.

Budgeting  on a gross basis

24.  (1)  The revenues and expenditure of Government   shall be entered in the annual estimates of revenue and expenditure on a gross basis without being netted with each other.

(2)  Despite subsection (1), tax  revenue shall be entered in the annual estimates  of revenue  and  expenditure   after  deducting   the  estimated amount  of tax refunds from the tax revenue.

Commitment   of approved budget

25.  (1)  After  approval   of the  annual  budget   by  Parliament,    the Minister  shall,  within  ten  days of the ensuing  month,  issue quarterly expenditure  ceilings in respect of approved  annual budget.

(2) The  Controller  and Accountant-General   shall, based  on the quarterly expenditure  ceilings issued under subsection (1), release funds to the Principal  Spending  Officers of covered entities.

(3)  A Principal  Spending  Officer  shall commit  the budget  of a covered entity based on the quarterly warrants issued under this section.

(4) A Principal Spending Officer or any other public officer shall not  commit  Government   to a financial  liability,  including  contingent liability, unless that Principal Spending  Officer is specifically authorised to do so under this Act, the Regulations  or directives issued pursuant  to this Act.

(5) A commitment  in respect of staff recruitment  shall, subject to financial clearance by the Minister, be within the limits set by Parliament under section 21 (5) (e) (ix).

(6) Where  a covered  entity  enters  into  a contract  or any other arrangement  that commits or purports to commit  Government  to make a payment, the contract or arrangement shall be approved by the Principal Spending  Officer  of that  covered  entity  and  the  Principal   Spending Officer shall enter the contract or arrangement  into the Ghana Integrated Financial  Management  Information  System.

(7) Subject to Parliamentary  approval  granted  under  section 21, the Minister shall grant clearance before a covered entity signs a multi- year contract.

(8)  The  Minister   shall,   in  accordance    with  spending   plans approved  under  section 22, approve commitments  subject to the  avail- ability  of sufficient  unencumbered   or uncommitted   appropriation   on the expenditure  ceilings in respect of that commitment  except that this subsection,  shall not  apply to the  Judiciary, Legislature  and the Audit Service.

(9)  A Principal Spending Officer shall

(a)  maintain  records of all financial commitments  chargeable to each appropriation  or item of expenditure  in respect of a covered entity, and

(b)   ensure that  each commitment  or expenditure  is in accordance  with  the  commitment   control  system  prescribed under the Regulations.

(10) A Principal Spending Officer who contravenes subsection (4)

is liable to an administrative  penalty  of two thousand  penalty units.

Expiry  of appropriation

26.  (1)  Each appropriation approved by Parliament shall cease to have effect at the close of the financial year in respect of which the appropriation was made.

(2) Any balance  of moneys  unexpended  from the  Consolidated Fund or any other public fund for a financial year by Government by the close of the year, shall elapse by the 31st of January of the ensuing year.

Performance     report

27.  (1) Each Principal Account  Holder shall, within the first quarter of the  ensuing  year  after  the  Minister  submits  the  annual  budget  to Parliament,  submit to Parliament,  a performance report on budget imple- mentation  for the proceeding  financial year.

(2)  Each  Principal  Account  Holder  shall submit  a copy of the performance  report required under subsection (1) to the Minister.

(3)   The Minister  shall determine  the format of the performance report required  under subsection (1).

(4) The performance  report shall indicate

(a}  the achievements  of the Principal  Account  Holder  for the

preceding  financial year;

(b)  the annual  work plan comprising  the objectives, outputs,

outcomes,  targets and performance  indicators;

(c)  the staff establishment  of the Principal Account  Holder in respect of a vote for the preceding year and ensuing three years;

(d)  a statement  on the actions  taken by the covered entity to implement  the recommendations   of Parliament  in respect of the most recent report  of the Auditor-General;  and

(e)   any major investment to be implemented for more than one year, including

(i)   any multi-year investment;

(ii) the  total cost of  the major  investment  within  the medium  term profile set out in the Medium  Term Expenditure  Framework,  and

(iii) the  respective  amount   to be appropriated   in the budget year.


Mid-year   review

28.  (1)  The  Minister  shall,  not  later  than  the  31st of July of each financial year, prepare and submit to Parliament  a mid-year fiscal policy review

(2) The mid-year fiscal policy review shall include the following information:

(a) a  brief overview of recent macroeconomic  developments of Government;

 (b)  an  update   of macroeconomic    forecasts  undertaken   by Government;

(c)   an analysis of the total revenue, expenditure and financing performance  for a period up to the first six months  of the financial year;

(d)  a presentation   of a revised budget  outlook  for the unexpired term of the financial year, and the implication of the revised budget outlook for the Medium-Term  Fiscal  and Expenditure  Framework  if necessary; and

(e)  where necessary

(i) plans  for  submitting   a proposed   supplementary budget for approval by Parliament;  and

(ii) an overview of the implementation   of the annual budget and of the budgets of covered entities.

Re-allocation   of funds from a covered entity

29.  (1)  Subject to any limitation  that  Parliament   may impose,  the Minister  may, re-allocate  funds  that  have been  allocated  to a covered entity to another covered entity specified in the annual budget in the event where  the  functions  of that  covered  entity  are transferred  to another covered entity.

(2) The Minister report to Parliament  in the next reporting period on a re-allocation in subsection (1).

Budget implementation   by Principal  Spending Officers

30.  (1)  A Principal   Spending  Officer  shall,  plan  and  manage  the activities of  covered  entity in accordance  with  the policy statement and financial estimates of that covered entity.

(2) A covered entity shall not obtain  a credit facility from any person if that covered entity

(a)  has not obtained permission from the Minister;

(b)  has  unpaid  arrears  from  a debt  incurred   in a previous financial year; and

(c)   does not have the capacity to pay for the expenditure from the  approved  estimates as appropriated  by Parliament  for that  financial year.

(3) A Principal Spending Officer shall, not later than the I" day of the months  of April, July, September, and December of each year, in the format determined by the Chief Director, submit a report to the  Minister on the activities or programmes  of the respective covered entity and the implementation   of the budget  of the  covered  entity  for the  preceding quarter,  including  the actual  and forecast commitments  and  cash positions of the covered entity.

(4) The Minister  shall, not later than  the end of the  third week after the end of a quarter, submit to Parliament, a consolidated expenditure commitment report to cover all the reports submitted under subsection (3).

(5)  For purposes  of  this  section  "policy  statement"   means  the medium  term development  plans of Government.

Cash flow forecast

31.  A Principal Spending Officer shall, in accordance  with the Regulations, prepare  and submit to the Minister monthly cash flow forecasts of the covered entity for the ensuing three months  or any other  period that the Minister may specify.


32.  (1)  The  Minister  may, on the request  of  a Principal  Spending Officer, execute a virement in respect of an amount  of money allocated to the covered entity of that Principal  Spending Officer.

(2) A virement executed under subsection (1) shall not result in a future liability for that covered entity or the Government.

(3) A virement  executed  under  subsection  (1) is subject  to the following  conditions:

(a)   a virement  of funds allocated  for wages and salaries in an expenditure vote shall not be made unless the virement is in respect of wages and salaries within that expenditure  vote;

(b)  a virement  that  involves a change  in the spending  plans approved by the Minister for the current financial year shall require the prior written  approval from the Minister;

(c)   a virement may be made  from a recurrent  expenditure  to capital expenditure  as well as from one capital expenditure to another  capital expenditure but shall  not be made from a capital expenditure   to a recurrent expenditure;  and

(d)  a virement  shall not be made  in respect  of appropriated amounts between covered entities without the approval of Parliament  in a supplementary  estimate.

(4) Subject to subsection (3), the Minister may delegate to a covered entity, the authority to vary economic classifications within that covered entity up to a limit specified by the Minister, subject to the submission of a quarterly report by that entity to the Minister and Parliament.

Multi-year  expenditure  commitments

33.  (1) A covered  entity  shall not  enter  into  any agreement with  a financial  commitment  that  binds  the  Government   for more  than  one financial year or that results in a contingent  liability except where the financial commitment  or the contingent  liability

(a)  is with the prior written  approval of the Minister, and

(b)  authorised by Parliament in accordance with article 181 of the Constitution.

(2) Parliament  may, in the  annual  budget,  authorise  a covered entity to make a multi-year expenditure commitment,  and where Parliament  so authorises,  the  annual  budget  shall indicate  the  commitment approved  for the  financial  year and  the approved  multi-year  commitments.

(3) A multi-year  expenditure   commitment   approved  under subsection (2) shall be consistent with the objectives of the Fiscal Strategy Document.

(4) The Minister  shall, in accordance  with section 25, submit to Parliament  a report  on the performance  of the multi-year  expenditure commitments  made for each financial year.

(5) A Principal Spending Officer may propose or commit to invest in a project only after expert  assessment has been completed  and the justification  for the investment project and efficiency is established.

Submission  of half-yearly  reports  on budget implementation

34.  (1)  The Minister  shall submit to Parliament,  not later than  the 30th day of the months  of January  and July of each year, a half-yearly report  on budget implementation  performance.

(2)  The report required under subsection (I) shall include

(a)  programmes  and a major category of economic classifications;  and

 (b) a brief statement of programme  performance   by  each Principal Account  Holder.

Supplementary   budget

35.  (1) Where in a financial year, it is found that the amount  appropriated by the Appropriation  Act is insufficient, or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by the Appropriation  Act, the Minister  shall lay before Parliament  for approval,  a supplementary   estimate,  in the  form of  a Supplementary Appropriation  Bill indicative  of the amount  required.

(2) The Supplementary Appropriation  Bill shall indicate how the supplementary  expenditure  shall be financed.

(3)  The appropriated  budget of a covered entity under section 21 does not include the supplementary  budget of the covered entity.

(4) The Minister  shall, subject to section  18, ensure that  supplementary  expenditure  under  a Supplementary  Appropriation   Bill is not likely to breach the objectives, targets, or rules set out in the Fiscal Strategy Document.

Contingency  Fund

36.  (1) There shall be paid into the Contingency  Fund  moneys voted for the purpose  by Parliament;   and  advances  may  be made  from the Contingency  Fund  which are authorised  by the Committee  responsible for financial matters in Parliament  whenever  the Committee  is satisfied that  there  has arisen an urgent or unforeseen  need for expenditure  for which no other provision exists to meet the need.

(2) Where an advance is made from the  Contingency  Fund,  a supplementary  estimate shall be presented as soon as possible to Parliament for the purpose of replacing  the amount  advanced.

Sinking Fund and Debt Servicing

Creation of Sinking Fund

37.  (1)  The Minister may create a Sinking Fund.

(2)  The  Sinking  Fund  shall be used  to redeem  specified  debt obligations  of Government.

(3)  The Minister  shall, as part of the annual budget,  specify and provide an update on the loans to be redeemed by the Sinking Fund.

 (4) For the purpose of this Act, a "Sinking Fund"  means a special fund created for the redemption  of a loan or a pool of loans, purchase of loans or any other related purpose by means  of a periodic contribution into a fund which is calculated  in a manner  that when  accumulated  at compound interest over the life of the loan, the sum available in the fund shall be sufficient to redeem the loan.

Sources of money for the  Sinking  Fund

38.  The sources of money for the Sinking Fund  are

(a)  periodic contributions  of specified amounts determined by the Minister as  part of the annual budget;

(b)  repayment  inflows  of money  on-lent  by the Ministry  to covered entities, state- owned enterprises and public corporations;

(c)  moneys   that  accrue   to  the  Fund   from  investment   of moneys of the Fund;

(d)  moneys borrowed  or raised  from capital  markets  for the purpose  of  redemption  of existing debts;

(e)  moneys approved by Parliament  for debt repayment under subsection  (4) of  section  23 of  the  Petroleum  Revenue Management  Act 2011 (Act 815); and

(f)   any other moneys that the Minister, with the approval of Parliament   determines to be paid into the Fund.

Administration   of Sinking Fund

39.  (1) The Controller  and Accountant-General   shall administer the

Sinking Fund created under subsection (1) of section 37.

(2) The Controller and Accountant-General   shall for the purpose of subsection (1), invest moneys of the Sinking Fund.

(3)   For the purpose  of subsection (2), the Minister shall issue an Investment Policy Statement.

Bank account  of the Sinking Fund

40.  (1) The Controller and Accountant-General  shall pay moneys for the Sinking Fund  into a bank account  opened for the purpose with the approval of the Minister.

(2) The bank account  opened for the Sinking Fund shall be considered to be part of the Treasury Single Account.

Payment  from Sinking Fund

41.  (1)  A payment  shall not be made  from the Sinking Fund  unless the  funds  are  required  for  the  redemption   of a loan  specified  under subsection (3) of section 37.

(2)  Subsection (I) includes a buyback of a debt obligation on the open market.

Accounts  and audit

42.  (1)  The Controller  and Accountant-General   shall keep accounts

of the Sinking Fund in accordance  with Generally Accepted Accounting

Principles and in the form agreed to by the Auditor-General.

(2)  The  Controller   and  Accountant-General     shall  submit  the accounts of the Fund to the Auditor -General for audit within three months after the end of the financial year.

(3)  The Auditor-General   shall not  later than  three months  after the receipt of the accounts, audit the accounts and forward a copy of the audit report  to the Minister.

Annual  report  and other  reports

43.  (1)  The  Controller   and  Accountant-General     shall within  one

month  after receipt of the audit  report,  submit an annual  report to the

Minister  covering the activities and operations  of the Sinking Fund  for the year to which the report relates.

(2)  The  annual  report  shall include  the  report  of the Auditor- General and a report on the performance  of the Sinking Fund relative to its statutory object.

(3) The Minister  shall within one month  after the receipt of the annual report submit the report to Parliament  with the statement that the Minister  considers necessary.

(4) The  Controller  and Accountant-General   shall also submit to the Minister any other reports which the Minister may require in writing.

Transfer  of money

44.  The total sum of money located in any bank immediately  before the coming into force of this Act, which constitutes moneys designated for the repayment  of loans, shall at the coming into force of this Act be transferred into the Fund created under section 37 (1).

Cash and Asset Management

Management   and use of Government   moneys

45.  (1) The Minister is responsible for the management  and efficient

Act                       Public Financial Management  Act, 2016




use of all revenues and moneys paid into the Consolidated Fund and any other public funds designated as being in the care of the Minister.

(2) For the purposes of subsection (1), the Minister

(a)  shall ensure co-ordination  between the  cash management of Government  and the fiscal policy, monetary  policy and debt management  policy of Government;

(b)  shall establish the institutional  and administrative arrange- ments  required  to manage  the cash management   system within the Ministry;  and

(c)   may request a person, including a Ministry, Department  or

Agency,  to   provide  any  information   that  the  Minister

considers necessary for the effective operation  of the cash management  system.


Treasury  Single Account

46.  There is established by this Act, a Treasury Single Account

(a)  which  is to  serve as a unified  structure  of Government accounts to give a consolidated  view of Government  cash resources;  and

(b)  into which all Government  cash including moneys received

by covered entities shall be deposited and from which  all expenditure  of Government  and covered entities shall be made.


Collection,  deposit and retention of  Government revenue

47.  (1) A covered entity shall not collect orreceive revenue except where the covered  entity  is authorised  by an Act of Parliament  to collect or

receive the revenue.

(2) The revenue collected or received by a covered entity under subsection (1) shall

(a)  be paid into and form part of  the Consolidated  Fund;

(b)  be receivable into a public Fund; and

(c)  be receivable into  a public fund established for a specific

purpose where authorised by the Constitution  or an Act of


(3)  A covered  entity may  retain  revenue  collected  or received, where the revenue is in the form of a levy, licence fee or administrative penalty  and the covered entity is authorised  through  appropriation  by Parliament  to retain the revenue.

Consolidated    Fund

48.   (1)  Any revenue  or other money raised or received for Government  shall form part of the Consolidated  Fund.

(2)   Dividends due to Government  shall be paid into the Consolidated Fund  without  any deduction.

(3)   The Minister may, by warrant to the Controller and Accountant- General,  authorise  a prepayment  from the Consolidated  Fund  to

(a)  a public fund established by or under an Act of Parliament, or

(b)  a Principal  Spending  Officer, where the prepayment  is to fund an expenditure  which is approved  under  an Appro- priation  Act or a Supplementary  Appropriation  Act.

Investment   of balances   on the  Consolidated    Fund

49.  (1)  The Minister  may

(a)  authorise  the Controller and Accountant-General   to invest any sum standing to the credit of the Consolidated  Fund with

(i)   the Bank of Ghana,  or

(ii)  an approved  financial  institution,  or

(b)  invest any sum standing to the credit of the Consolidated Fund,  in an instrument  other than government  instrument that  the Minister  considers appropriate.

(2)  The Instrument referred to in subsection (1) shall mature within the fiscal year.

Spending  from  the  Consolidated    Fund

50.   (1)  Subject to article 178 of the Constitution,  an expenditure shall not be met  from  the  Consolidated   Fund  except  on the  authority of a warrant issued by the Minister to the Controller and Accountant-General.

(2)  The Minister shall issue a warrant  for payment

(a)  that is authorised under an Appropriation  Act or a Supplementary  Appropriation  Act for the financial year that the withdrawal  is intended  for;

(b)  for repaying moneys erroneously paid into the Consolidated Fund  or other public funds;

 (c)  for paying  sums  required  for advance,  refund,  rebate  or drawback where  the  payment   of  the  advance,  refund, rebate  or drawback  is provided  for in this or any  other enactment;  or

(d)  that is subject to cash available under section 45.

(3) The Minister  may  suspend,  withdraw, limit  or place  conditions on a warrant under this section where the Minister determines that the suspension, withdrawal, limitation or condition is necessary due to a financial exigency or for purposes of public interest.

Bank  account management

51.  (l)  A bank  account  shall not be opened  for any covered  entity without the written approval of the Controller and Accountant-General.

(2) Subject to the written approval of the Controller and Accountant- General, a bank account shall not be opened to receive or spend public funds.

(3)  A bank  account  shall be managed  by a covered  entity  in accordance  with the terms and conditions determined  by the Controller and Accountant-General.

(4)   Subject to subsection (5), the Bank of Ghana is the depository of cash for the recurrent  and capita~ operations  of all covered entities.

(5)  The Controller and Accountant-General may authorise a covered entity to open a bank account in an approved financial institution.

(6)  The Controller  and Accountant-General   shall ensure that all government  bank  accounts  are reconciled  regularly and in accordance with generally accepted accounting practices.

(7)   The Controller  and Accountant-General

(a)  shall regulate the operation  of a bank account of a covered entity; and

(b)  may,  with  the  prior  written   approval   of  the  Minister, suspend  or close  a bank  account  if the  Controller   and Accountant-General    considers  it necessary  in the  public interest.

(8)  A Principal Spending Officer of a covered entity shall before the closure of a bank account under the control of that Principal Spending Officer, in writing, obtain the approval of the Controller and Accountant- General for the closure of the bank account.

 (9) The Bank of  Ghana  or where  applicable,  a financial institution that  holds  a bank  account  on behalf  of a covered  entity  shall, on request  by  the  Controller   and  Accountant-General  or the  Auditor- General,  in writing,  disclose  any  financial  information   regarding  the account,  within fourteen days after receipt of the request.

Custody  and management    of assets

52.   (1)  A Principal Spending Officer of a covered entity, state-owned enterprise or public corporation  shall be responsible for the assets of the institution  under  the  care of the  Principal  Spending  Officer and  shall ensure that proper control systems exist for the custody and management of the assets.

(2)   A control  system specified in subsection (1) shall be capable of ensuring  that

(a)  preventive mechanisms are in place to eliminate theft, loss, wastage and misuse; and

(b)  processes,  whether  manual  or electronic,  and procedures are in place for the effective, efficient, economical and trans- parent use of the assets.

(3) A Principal Spending Officer shall maintain  a register of

(a)  lands and buildings under the control or possession of that Principal Spending Officer; and

(b)  all  other  assets  under  the  control  or possession   of the Principal  Spending  Officer.

(4) The register referred to in subsection (3) (a) shall contain a record of the details of each parcel of land and each building and the terms on which  the land  or building  is held,  with reference  to the  conveyance, address, area, date of acquisition, disposal or major change in use, cost, lease terms, maintenance contracts and other pertinent management details.

(5) The register referred to in subsection (3) (b) shall contain a record of the  details of all major  items  of furniture  and equipment  including furniture and equipment  issued for either government quarters or offices, large tools for government  works, plant, equipment  and vehicles.

(6) A Principal Spending Officer shall maintain adequate records of government stores.

(7) The Principal Spending Officer is discharged of accountability of government  stores where the stores have been

(a)  consumed in the course of public business and records are available to show that the stores have been consumed;

 (b)  worn out in the normal course of public business and deletion from the accounts has been approved by the Minister and they have been disposed of in accordance  with the directives of the Minister; or

(c)   lost, stolen, destroyed, damaged or rendered unserviceable

other  than  by fair wear  and  tear  and  deletion  from  the accounts has been approved by Parliament.

(8) The Minister may, by legislative instrument, delegate powers of deletion and disposal of government assets to the Principal Spending Officer of a covered entity, state-owned enterprise or public corporation.

(9) A Principal Spending Officer shall not delegate a power granted under subsection (8).

Abandonment of claims and write off of public funds

53.  (1)  The Minister shall seek the approval of Parliament,  to

(a)  abandon  or remit a claim by or on behalf of Government,

(b)  abandon  or remit a service to the Government,  and write off a loss of or a deficiency in public funds or public resources.

(2) Where  Parliament  grants approval  under  subsection (1), the approval shall be by a resolution of a simple majority of Parliament.

(3) The approval under  subsection (1) shall specify the amount authorised for each abandonment  or write off and the total sum authorised to be written  off or abandoned.

(4)  The  Minister   may,  in  accordance    with  the  Regulations, abandon  or remit

(a)  a claim by or on behalf of Government;

(b)   abandon  or remit a service to Government;  and

write off a loss of or a deficiency in public funds or public resources, where the amount involved is within the threshold set out in the Regulations.

(5) The Minister shall, within three months after the end of each financial year, lay before Parliament

(a)  a statement   of the  losses written  off by the  Minister  inaccordance  with subsection (1);

(b)  a statement  of the  losses written  off  by the Minister  in accordance with subsection (4); and

(c)   a list  of the  public  officers  surcharged   for loss of, or  a deficiency in public moneys or public resources.

 (6) The amount  in excess shall be treated as a loss of public funds in accordance  with section 96.

(7) Where

(a)  a loss or an abandonment  of a loss, or

(b)  a remittance  of the total loss which is abandoned  or remitted  exceeds  the  amount   authorised   by Parliament,   the amount in excess shall be treated as a loss of public funds in accordance  with section 97.

Public Debt Management

Functions of the Public Debt Management  Office

54.  (1) The Ministry  of Finance  shall have an office that  is respon- sible for public debt management  and which shall be under the supervi- sion of the Chief Director in accordance with the Civil Service Act, 1993 (PNDC  Law 327).

(2)   The Public Debt Manaement  Office shall

(a)  handle  debt management  operations  of the Government;

(b)  assess risks for government  guarantees and lending;

(c)   assess all forms of credit agreements  including  suppliers' credit, buyer's credit, mixed credit and finance lease agreements to be entered into by the Government;

(d)  assess the  feasibility  of borrowing  requirements   implied by the  path  for  the  fiscal  deficit  in  the  Fiscal  Strategy Document;

(e)   formulate  the Medium  Term Management  Strategy; and

(f)   perform any other functions that may be determined by the Minister.

Government borrowing and debt management

55.  (I)   Subject  to artic1el81  of the  Constitution   and  this Act,  the

Minister has the authority to raise a loan on behalf of the Government, both within and outside the country and in local and foreign currencies.

(2) The Minister shall not delegate a power granted under subsection

(1) to any other person.

(3) The proceeds of all borrowings  on behalf of the Government shall be

(a)  paid into and  form part of the Consolidated  Fund;  and

(b)  utilised for any of the purposes stated  in section 57.

 (4)   Government   shall  cause  to be opened  a bank  account  for purposes  of depositing all government  borrowings.

Approval of  Parliament  of  terms   and  conditions  of  government borrowings

56.  (1)  The terms and conditions of all government borrowings shall be laid before Parliament  and shall not  come into operation  unless the terms  and  conditions   are  approved  by a resolution   of Parliament   in accordance  with article 181 of the Constitution.

(2)  For the purpose of subsection (1), Parliament may, from time to time, by resolution,  approve standard  terms and conditions  for government borrowings including the following:

(a)  the nature  of facility;

(b)  purpose  of government  borrowing;

(c)  condition  of  drawdown;

(d)  terms of interest payment  and repayment;

(e)  pre-payment  and cancellation;

(f)   fees and charges in respect of the borrowing;

(g)  tax gross-up and indenmities;

(h)  other  indenmities;

(i)   events of default;

(j)   conduct of business by the parties:

(k)  payment  mechanisms;

(l)   costs and expenses;

(m) remedies and waivers;

(n)  amendments  and waivers;

(0)  governing law and jurisdiction;

(P)   agent's  option;

(q)  arbitration;

(r)   waiver  of immunity;

(s)   conditions  precedent;

(t)   conditions  of payment;

(u)  documents to be submitted;

(v)   collateral or security; and

(w)  force majeure.

Borrowing   purposes

57.  (1) Government  may borrow for the following purposes:

(a)   to  finance  government   budget   deficit  as  approved   by Parliament;

 (b)  to build up and maintain a liquidity buffer at a level or range determined  by the Minister;

(c)   to on-lend  funds  to local  government   authorities,   state owned enterprises, public corporations  or any other entity as approved by Parliament;

(d)  to  honour   obligations   under   outstanding    government guarantees;

(e)   to refinance outstanding government debt, including repayment  of a loan prior to the maturity  date of the loan  and repurchase  of government  debt securities; and

(f)   for any other purpose as may be approved by Parliament.

(2)  The issuance of a government  debt security under this section shall  be in  accordance   with  the  Medium   Term  Debt  Management Strategy and the annual borrowing  plan.

(3) For purposes of this section "liquidity buffer" means the accumulation of funds reserved for debt restructuring and cash management.

Debt management   objectives

58.  (1)   The objectives of government debt management are to  ensure that

(a)  the  fmancing  needs  of Government   are met  on a timely basis;

(b) borrowing costs to Government  are as low as possible over the medium to long term, consistent with a prudent  degree of risk;

(c)   the development of the Ghanaian  debt market is promoted; and

(d)  any other action considered to impact positively on public debt is pursued.

(2) The Minister  shall be responsible  for ensuring  that  the  debt management  objectives set out under subsection (1) are achieved.

Debt management   strategy

59.  (1)  The  Public  Debt  Management   Office shall,  submit   to the Minister, a medium-term  debt management  strategy for the management of government  debt.

(2) The Public Debt Management  Office shall,

(a)  on a rolling basis, update  the medium-term  debt management strategy at least once a year; and

 (b)  submit  the  update  in respect  of the  medium-term   debt management  strategy to the Minister.

(3)  The Minister  shall not later than December  of the preceding year, review the medium-term  debt management  strategy and submit the strategy to Cabinet for approval.

(4)  The Minister  shall publish the  approved  medium-term  debt management   strategy  at  the  website  of the  Ministry   and  any  other medium   determined  by the Minister.

(5)  The medium-term  debt management  strategy shall be based on the debt management  objectives set out in section 58 and shall take into account

(a)  the cost and risk embedded  in the current debt portfolio;

(b)  future borrowing  requirements  and debt recovery mecha- nisms of the  Government;

(c)   the macro-economic  framework  of the country;

(d)  prevailing market  conditions;  and

(e)   any other factors that may be relevant for the development of the medium-term  debt management  strategy.

(6)  The  medium-term   debt management   strategy  shall include guidelines or ranges for the acceptable market risks in the debt portfolio and  planned   borrowings   and  other  debt  management    activities   to promote  development  of the Ghanaian  debt market.

(7)  Upon approval of the medium-term debt management strategy, all Government borrowings and other debt management  operations shall be undertaken  in compliance  with the medium-term  debt management strategy and approved revisions to the strategy.

Annual  borrowing   and recovery  plan

60.  (1)  The Public Debt Management  Office shall,  not later than the month  of December  of the preceding financial year, prepare   an annual borrowing  and recovery plan to meet the aggregate borrowing  require- ments of  Government for each financial year.

(2) The annual borrowing and recovery plan shall be based on the approved medium-term  debt management  strategy and shall include

(a)  planned borrowing  operations  over the year;

(b)  borrowing  instruments  to be used; and

(c)   the indicative  timing of the borrowings.

 (3) The annual borrowing  and recovery plan shall be updated  at least every six months.

(4) The Minister shall review and approve the annual borrowing and recovery plan and updates to the plan.

(5) The Minister  shall publish on the website of the Ministry, the approved  annual borrowing and recovery plan and updates  to the plan.

Issuance  of government  debt securities  in the domestic  debt market

61.  (1)  The  issuance of government  debt securities in the domestic market shall be by way of auction or any other method approved by the Minister.

(2)  For  the  purpose   of  subsection   (1), the  Minister   shall,  by Regulations,  or rules or guidelines published in the Gazette,  regulate the format of and criteria for the auction and the procedures for participation, bidding,  and  allocation  in auctions.

Issuance  of government   debt securities  abroad

62.  The issuance of government debt securities outside the country shall

(a)  be in the manner and on the terms and conditions approved by Parliament;  and

(b)  subject to subsections (2) and (4) of section 60 be based on the annual borrowing  and recovery plan.

Borrowing  from banks and other financial  institutions

63.  Government  borrowing  from banks  and  other  financial  institutions by means of a loan agreement shall

(a)  be on the  terms  and conditions  approved  by Parliament; and

(b)   subject to subsections (2) and (4) of section 60 be based on the annual borrowing  and recovery plan.

Other  market transactions

64.  (1)  Subject to subsection (2), the Minister may, in accordance with the debt management  objectives and the medium-term  debt management strategy, undertake  other market transactions,  including

(a)  entering into financial swaps and other derivative transactions on behalf of Government  for the purpose of managing the risks of Government  under  various  financial transactions;

(b)  offering  buybacks   and  exchanges   of government   debt securities; and

(c)   offering   early  repayment    of loans  before  the  date  of maturity  of the loans.

(2)  A transaction under  subsection  (l)(a)   is subject  to the approval of Parliament.

Status of Government debt

65.  (1) A government debt is an absolute and unconditional  financial obligation of the  Government.

(2)  A debt charge is a statutory  claim against the Consolidated Fund,  without  further  appropriation.

(3)   For purposes of subsection (2), a debt charge includes

(a)  moneys required to provide a sinking fund or other means of  securing repayment  of debt securities;

(b)  the  remuneration    and  compensation    of registrars   and fiscal agents  appointed  under this Act;

(c)    costs, expenses and charges incurred in the

(i)   negotiation  or raising  of a loan; or

(ii)  issue, redemption,  servicing, payment  or management of a  loan or a debt security issued in respect of a loan; and

(d)  moneys required to be paid under a contract or agreement related to government  debt.

Government guarantees

66.  (1) Subject to this Act, the Minister may issue a guarantee on behalf

of Government    in respect  of the  obligation   of a local  government authority,  public  corporation   or other  entity  if,  considering  the  debt management    objectives   and  the  debt  management    strategy   of the Government,  the Minister is satisfied that

(a)  it is in the public interest to issue the guarantee;  and

(b)  the beneficiary of the guarantee  has the ability to

(i)    repay the underlying loan; and

(ii)  fulfill all payment  and other obligations under the underlying loan and under the guarantee and related agreements.

(2) The Public Debt Management  Office shall, before the issuance of a government guarantee under subsection (1), assess the local government  authority, public corporation  or other entity to ascertain the fiscal risk  of  that  local  government   authority,  public  corporation   or other entity to the Government  in respect of that guarantee.

(3) The result of the risk assessment and the method  used in the ssessment shall be submitted to the Minister in written form.

(4) A government guarantee is subject to prior approval by Parliament.

(5) Unless otherwise determined by Parliament a beneficiary of a government  guarantee  shall

(a)  pay a guarantee fee determined by the  Minister, in consultation  with  the Director  responsible  for the Public  Debt Management  Office, to cover the credit risk of Government upon  the signing of the guarantee;  and

(b) reimburse or pay in a manner  directed  by the  Minister, the

(i) moneys paid by Government  to honour the guarantee  where  the beneficiary  defaults  and  the Government is required  to   honor  an  obligation under the guarantee;

(ii)  expenses incurred by Government  in relation to the guarantee;  and

(iii) interest   on all  moneys  paid  by  Government to honour  the guarantee.

(6)   The Minister shall pay into the Consolidated Fund  guarantee fees received under paragraphs  (a) and (b) of subsection (5).

(7)  A government guarantee shall be supported by appropriate  legal documentation executed by the beneficiary of the guarantee  indenmifying Government  for any amount  paid by Government  under the guarantee.

(8) Where  a beneficiary  of a government  guarantee  neglects or fails to honour the obligations of that beneficiary under the loan agreement to the creditor or make good an indemnity to Government,  the Minister shall

(a)  proceed  to enforce  the  rights  of Government   under  the indemnity,  and

(b)  pursue any action necessary to recover from the beneficiary, moneys  owed to Government  under  the guarantee  agreement and indemnity together with interest at the prevailing market rate.

(9) The moneys  recovered by Government  under  subsection (8) shall be paid into the Consolidated  Fund.

 (10) A letter  of intent,  letter  of comfort  or similar letter, or an approval by Government  of a borrowing  to be undertaken  by another entity shall not constitute a government  guarantee  or any other form of legal undertaking  of Government.

(11) Any amount due to be paid by Government under a guarantee issued under this Act shall be charged on and paid out of the Consolidated Fund  without  further  appropriation.

Government   lending

(10) A letter of intent, letter of comfort or similar letter, or an approval by Government of a borrowing to be undertaken by another entity shall not constitute a government guarantee or any other form of legal undertaking of Government.

(11) Any amount due to be paid by Government under a guarantee issued under this Act shall be charged on and paid out of the Consoli­dated Fund without further appropriation.

Government lending

67. (I) Subject to article 181 of the Constitution, the Minister has the sole authority to lend public funds on behalf of Government.

(2) The Public Debt Management Office shall, before the grant of a loan

(a) assess the credit risk to Government of providing the loan;


(b) propose the rate of interest to cover the cost and the credit risk of Government.

(3) The Public Debt Management Office shall submit to the

Minister, in writing,

(a) the result of the risk assessment;

(b) the method used in the assessment; and (c) the proposed rate of interest.

( 4) The Minister shall enter into a government lending transaction only where the risk assessment concludes that the borrower has the financial ability to service the loan on the due date.

(5) Unless otherwise determined by Parliament, the borrower shall pay to Government, interest at a rate determined by the Minister to cover the cost of the lending transaction and the credit risk of Government. (6) A government lending transaction shall be supported by appropriate legal documentation executed by the borrower agreeing to service the debt obligation of that borrower under the transaction.

(7) Where a borrower neglects or fails to service a debt obligation under a government lending transaction, the Minister shall

(a) proceed to enforce the rights of Government under that transaction, and

(b) pursue any action necessary to recover from the borrower, outstanding moneys owed to Government under the agree­ment.

Supplier's  credit agreements  entered  into by Government

68.  (1) Subject to article  181 of the Constitution,  the Minister  shall enter into supplier's credit agreements.

(2) The Public Debt Management Office shall, before the execution of a supplier's credit agreement, assess the cost to Government of entering into that agreement.

(3)  The  assessment  of cost under  subsection  (2) shall include  a comparison  with other available financing  options.

(4)  The  Public  Debt  Management    Office  shall  submit  to  the Minister,  in writing,

(a)  the result of the assessment; and

(b)  the  available financing  options.

Finance  lease agreements  entered  into by Government

69.  (1)  Subject  to article  181 of the  Constitution,   the Minister  has the sole authority  to enter  into  finance  lease agreements  on behalf  of Government.

(2) The Public Debt Management  Office shall, before the execution of a finance lease agreement,  assess the cost to Government  of entering into that agreement.

(3)  The  assessment  of cost under  subsection  (2) shall include  a comparison  with  other available financing  options.

(4) The Public Debt Management Office shall submit to the Minister, in writing,

(a)  the result of the assessment; and

(b)  the available financing  options.

Record of government  debt and finance  arrangements

70.  The Public Debt Management Office shall keep in a timely manner

and in an appropriate  database,  comprehensive  and accurate records of

(a)  outstanding  government  debts;

(b)  derivative transactions  entered  into by Government;

(c)  guarantees  issued by Government;

(d)  government  lending  transactions;

(e)  finance lease agreements entered into by Government;  and

(f)   any other  relevant  record  in respect  of Government  debtnobligation.

Publication  of government  debt and finance  arrangements

71.   (1)  The Public Debt Management  Office shall, at least at half year intervals, prepare  statistical bulletins  that provide  accurate  and  timely information  in respect of

(a)  debt stocks, debt service cost and risk measures of the debt portfolio  of Government;

(b)  derivative transactions   entered into by Government;

(c)  guarantees  issued by Government   and  the purposes  and beneficiaries of  these guarantees;

(d)  lending provided by Government  and the borrowers of the funds;

(e)   supplier's  credit agreements  entered  into by Government and the purposes of the agreements;

(f)   finance lease agreements entered into by Government,  the purposes   of  the  agreements,    and  the  counterparts    of Government;  and

(g)  financial terms of new agreements.

(2) The  statistical  bulletin  referred  to in subsection  (1) shall be published

(a)  on the official website of Government;

(b)  on the official website of the Ministry; and

(c)   in any other medium  determined  by the Minister.

Annual  report to Parliament

72.  (1)   The Public Debt Management  Office shall, in respect of each preceding year, prepare an annual report  on

(a)  borrowings    and  other  government    debt  management operations,

(b)  guarantee  and lending  activities of Government,  and

(c)   other finance arrangements  entered into by Government.

(2) The annual report shall include

(a)  information   on the  debt  management   strategy  and  the rationale for the strategy;

(b)  information  on the  contribution  of the debt management strategy and the execution  of the strategy in achieving the debt management  objectives under section 58




(c)   a list of outstanding  government  debt;

(d)  a list of outstanding  government  guarantees, including

(i)    the amount and beneficiaries of the guarantees, and

(ii)  an assessment  of the  fiscal risk embedded  in the guarantees;

(e)   a list of lending operations, including outstanding  amounts and beneficiaries of the loans and an assessment of the credit risk of the loans; and

(f)  a list  of  outstanding   supplier's   credit  agreements   and finance lease agreements and the financial terms of the agreements.

(3)  The Minister shall

(a)  review the annual report; and

(b) after notifying Cabinet, submit the report to Parliament not later than 31st of March each year.

Borrowing  by local  government   authorities,   public corporations   and state-owned   enterprises

73.  (1)  On the  coming  into  force of this Act, borrowing  by a local government  authority, a public corporation  or a state-owned enterprise shall be in accordance with this Act.

(2) An enactment  in force on the coming into force of this Act, relating to borrowing by a local government  authority, a public corpora- tion or a state-owned  enterprise,  shall be construed  with the necessary modification  to give effect to this Act.

(3) A local  government   authority,  public  corporation   or state- owned enterprise is liable for the debt and other obligations of that local government authority, public corporation  or state-owned enterprise with- out recourse to Government,  unless otherwise  explicitly guaranteed  by Government  in accordance  with this Act.

Borrowing  by local government  authorities

74.  (I)  Subject to subsection  (2) and  without  limiting  section  73, a local government  authority  may borrow  funds only

(a)  from within the country, and

(b)  up to the limit determined  by the Minister  in consultation with the Minister responsible for Local Government,

and consistent with the medium term debt strategy and annual borrowing and recovery plan.

(2)  A  local  government   authority   shall  obtain  prior  written approval  of the Minister  for

(a)  the issuance of debt securities to the public; or

(b)  borrowing of an amount above the limit determined by the Minister   under subsection (1).

Reporting  requirements  of local government  authorities

75.  (1)  A local government authority shall, not later than ten working days from the date of signing a loan agreement, issuance of a debt security or obtaining an overdraft, submit to the Minister a record of the transaction.

(2) A local  government  authority  shall  submit  to the Minister annually and upon request

(a)  data on the total outstanding debt of that local government authority;  and

(b)  any other information  that the Minister may specify.

(3)  The Public Debt Management   Office shall keep, in a timely manner  and  in an appropriate  database,  comprehensive  and  accurate records  of outstanding  local government  debts.


Borrowing  by public corporations   and state-owned  enterprises

76.  (1)  Subject to subsection  (2) and without  limiting  section  73, a

public  corporation  or state-owned  enterprise  may borrow  funds up to the limit  determined  by the Minister  and consistent  with  the  annual borrowing  and recovery plan.

(2) A public corporation  or state-owned enterprise shall obtain the prior written  approval  of the Minister  in respect of

(a)  borrowing of an amount above the limit determined by the

Minister under subsection (I); or

(b)  borrowing  from a foreign market.

(3)  For  purposes   of  this  section,  "foreign  market"   means  the financial market that represent  the mechanisms  for issuing and trading securities of an entity domiciled outside the country.

Reporting requirements of public corporations and state-owned enterprises

77.  (1) A public corporation  or state-owned enterprise shall, not later than  twenty working  days after the end of each quarter,  submit to the Minister a record of outstanding debt and new borrowings including over- drafts and corporate  debt securities issued.

(2)   A public corporation  or state-owned  enterprise  shall submit to the Minister annually  and upon request

(a)  a record   of the  total  outstanding    debt  and  borrowing operations of that  public   corporation    or  state-owned enterprise;  and

(b)  any other record that the Minister may specify.

(3) The Public Debt Management Office shall keep in a timely manner and in an appropriate  database, comprehensive and accurate records of outstanding  debts of public corporations  and state-owned enterprises.

Power to appoint  agents

78.  (1) The Minister  may appoint  issuing agents, registration  agents,

primary  dealers  and  other  agents  to facilitate  primary  and  secondary market transactions  in government  debt securities.

(2) Despite subsection (1), the Bank of Ghana  may act as a fiscal agent for Government  to facilitate the issuance, management, redemption and repayment  of government  securities, on the terms and  conditions that may be agreed in a fiscal agency agreement.

(3) A fiscal agency agreement  under subsection (2) shall provide, among others, for

(a)  the duties and responsibilities of the Bank of Ghana;

(b)  the  remuneration   due the Bank  of Ghana  for the performance  of the duties and  responsibilities  under  paragraph

(a); and

(c)   any reporting  required by the Minister.

(4) For purposes of this section, an "issuing agent”, “registration agent", "primary  dealer" and "other agents" referred to in subsection (1) means  an agent appointed  in accordance  with the Public Procurement Act, 2003 (Act 663) who acts on behalf of Government.

Accounts and Audit

Submission  of financial  statements

79.  (1)  A Principal   Spending  Officer  shall,  through  the  Principal

Accounts  Holder

(a)  prepare  and  submit  quarterly  financial  statements  to the Controller and Accountant-General  by the 15th day of the month  following each quarter of  each financial year; and

(b)  submit any other relevant  report  within  the time that the Controller  and Accountant-General   may determine.

(2)  The  Controller    and  Accountant-General       shall  prepare   and submit  a quarterly   financial   statement   to the  Minister   by the  end  of the month   following  the  end  of  each  quarter.


Annual   accounts

80.  (1)  A Principal   Spending   Officer of a covered  entity  shall,  within two  months   after  the  end  of  each  financial   year,  prepare   and  submit  to the Auditor-General    and Controller  and Accountant-General, the accounts and  information    set out  in the  Schedule.

(2)  A  Principal    Spending   Officer   of  a  public   corporation  shall, within  two  months   after  the  end  of  each  financial   year,

(a)  prepare, in the format   determined   by the Controller and Accountant-General,a  summary    statement    of  financial performance           of that  public   corporation;

(b)  submit    the  summary     statement     to  the   Controller     and

Accountant-General  and  the  Auditor-General;   and

(c)  submit  a copy  of  the  summary   statement   to the Minister.

(3)  The  accounts   submitted   under  subsection   (1) shall

(a) be  prepared in accordance with accounting standards  and associated    policies;

(b) indicate the basis of accounting used in the  preparation    of the  accounts;   and

(c)  indicate   the  action  taken  by  the  covered  entity  as regards the  recommendations      of Parliament    on  the  report   of  the Auditor-General.

(4)  The  Auditor-General shall  in accordance   with   the  Audit Service  Act,  2000  (Act  584)  examine   and  audit  the  accounts   submitted under  this  section.

Consolidated     annual   accounts

81.  (1)  The  Controller    and  Accountant-General       shall,  within   three Months after  the  end  of  each   financial    year,  prepare    and  submit   the following  consolidated   accounts  to the Minister  and  the Auditor-General:

(a)  the  consolidated   annual  accounts   of Government   including the  accounts   specified  in the  Schedule;

(b)  the  accounts   of the  Contingency    Fund;   and

(c)  the  accounts   of the  Petroleum   Funds.

(2)  The  Controller    and  Accountant-General       shall,  in  respect   of accounts   submitted   under  subsection   (1), indicate   a defect,  shortcoming or  any other factor which  in the opinion  of the Controller  and Accountant- General   materially   affects  the  responsibility    of the  Minister   under   this Act. 

Changes  to accounting  or classification  system

82.  The Controller  and Accountant-General

(a)  may introduce  changes to the accounting  or classification system; but

(b)  shall provide a justification  in respect of

(i) the change; and

(ii)  how the accounting  or classification  system introduced  shall  ensure that public funds are properly accounted  for.

Internal  audit

83.  (1)  A covered entity shall have an Internal Audit Unit.

(2)  The head of the Internal  Audit Unit shall report  administratively to the Principal  Spending  Officer and  functionally  to the Audit Committee  of that covered entity.

(3) An Internal Auditor  of the Internal Audit Unit of a covered entity shall

(a)  appraise  and report  on the  soundness  and  application  of the system of  controls operating in the covered entity;

(b)  evaluate the effectiveness of the risk management  and governance process of a  covered  entity and contribute  to the improvement   of that  risk  management   and  governance process;

(c)  provide   assurance   on  the  efficiency,  effectiveness   and economy  in the  administration of the programmes and operations  of a covered entity; and

(d) evaluate compliance of a covered entity with enactments, policies, standards,  systems and procedures.

(4)  The Internal Auditor  of a covered entity shall, in consultation with the Principal Spending Officer of the respective covered entity and in accordance with guidelines issued by the Internal Audit Agency, prepare an annual audit work plan of the activities required  to be performed by the Internal  Auditor  in a financial year which is determined  by the risk assessment including the fiscal risk of that covered entity.

(5) The annual audit work plan, referred to under subsection (3), includes an appraisal and report on

(a)  budget planning and implementation,  and compliance with national  goals and objectives;

(b)  the development  initiatives of the covered entity;

(c)  procurement  of goods, services and works;

Act                       Public  Financial   Management    Act,  2016




(d)  value for money on public expenditure;

(e)   follow-ups   on  the  agreed  audit  recommendations     and required   corrective actions;

(f)   systems  of government   revenue   collections   for  proper accountability;  and

(g)  proper,  timely and  effective use of Government  financial informa tion  systems.

(6) The Internal  Auditor  of a covered  entity shall, within  thirty days after the beginning of the financial year, submit

(a)  the annual audit work plan to the Principal Spending Officer of that covered entity and the Audit Committee  established under section 86; and

(b)  a copy of the annual audit work plan to the Internal Audit


(7)  The Internal Auditor of a covered entity shall submit quarterly reports  on the execution  of the annual  audit work plan to the Principal Spending Officer of the covered entity concerned,  the Audit  Committee, the Auditor-General    and  the  Director-General    of the  Internal  Audit Agency.

(8)  The Internal  Auditor  of a covered entity shall, in the perfor- mance  of functions under this Act,

(a)  have  access  to information   and  property  required  to be audited;  and

(b)  be provided with any relevant  explanation  required by the

Internal   Auditor.

(9)  The  Internal  Auditor  of a covered  entity  shall report  to the Principal  Spending  Officer concerned  any incidents  of suspected  fraud or misuse of public funds.

(10)  Where the Internal Auditor  of a covered entity suspects that a Principal  Spending  Officer is involved in fraud  or misuse of public funds, the Internal Auditor shall report the matter to the Director-General of the Internal  Audit Agency who  shall in consultation  with  the chair- person  of the relevant Audit  Committee  initiate  investigations  into the matter.

(11) This section shall, so far as it relates to internal audit, be read and construed as one with the Internal Audit Agency Act, 2003 (Act 658)

External audit

84.  The Auditor-General  shall, within six months after the end of each financial year, examine  and audit  the public accounts  submitted  under this Act in accordance  with article 187 of the Constitution  and the Audit Service Act, 2000 (Act 584).

Report  on findings  and recommendations

85.  (1)  A  Principal   Spending   Officer  shall,  on  an  annual  basis, submit the following to the Minister and Auditor-General:

(a)   a report  on the status of implementation  of recommendations made by the Auditor-General in respect of that  covered entity; and

(b)  a report on the status of implementation  of recommendations made by Parliament in respect of that covered entity.

(2)  The  Attorney-General   shall,  on  an annual  basis, submit  a report on the status of any action commenced  on behalf of the Government to the Minister, Auditor-General  and Parliament following findings of the Auditor-General   and recommendations   of the Public  Accounts Committee  of Parliament.

Audit  Committees

Establishment   of Audit  Committee

86.  (1)   There is established by this Act, an Audit Committee that shall serve one particular  covered  entity  or any  other  covered  entities  in a sector.

(2)  For the purpose of subsection (1), the Minister shall, by Regulations, specify