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