Section 29

1.2003 The purpose of this register is to facilitate proper supervision of regular redemption of imprests by imprest holders. Checking officers shall bring to the notice of the Finance Officer in charge of the section (Treasury or Sub-Treasury) every instance in which– (a) redemption has not been made within each period ending; (b) payments from the imprest appear to be outside the terms of Imprest Warrant. The officer in charge of the section shall investigate reports made by the checking officer and take particular care to ensure that any possible irregularity is discovered and reported immediately to the Accountant General or sub-accountant. The Finance Officer in charge of the paying section or Sub-Treasury shall also scrutinise the register regularly to see that it is properly kept and evidence these checks by his dated initials. The Accountant General or sub-accountant shall likewise scrutinise the register at least once a month and evidence his scrutiny by his dated initials. 516. The authority normally required to enable a payment to be charged to “Advances” is an Advance Warrant. All applications for the issue of Advance Warrants shall be made to the Ministry of Finance, or to the Accountant General acting on its behalf in cases where the latter has been delegated the power. Advance Warrants are however not necessary for payments or debits made for the following purposesAdvances: Authorities. (a) losses dealt with under Chapter 8 of these Orders; 88 Finance and Audit (Reform) (b) charges requiring investigation before the correct classification is known. Any such charges remaining after a period of 3 months require the authority of an Advance Warrant; (c) the reversal, by means of a journal adjustment, of any charge appearing in the accounts which is not acceptable. 517. Advance Warrants emanating from the Ministry of Finance shall be issued to the Accountant General who shall make the payments as specified in the warrant. The Accounting Officer concerned shall be held responsible for ensuring that all the conditions of repayments of the sums advanced are adhered to. 518. In wholly exceptional circumstances in which repayments of advances cannot be made at a due date, applications shall be made to the Ministry of Finance or the Accountant General where applicable for the period of the advance to be extended. 519. It is the prime responsibility jointly and severally of the officer who has secured the advance and of his Accounting Officer to ensure that due deductions of instalments from salary are made notwithstanding the checks required of the Accountant General or sub-accountant in passing vouchers for payment. 520. The outstanding balance of any advance is recoverable in full from the last payments of salary of any officer who leaves the service of the government on transfer, retirement, resignation, termination of appointment or dismissal, unless the officer previously obtains the approval of the Ministry of Finance. Accounting Officers are responsible for ensuring that this Order is observed. 521. On the death of an officer, the Accounting Officer shall notify the Accountant General of any outstanding advances in Finance and Audit (Reform) 89 the Officer’s name. The responsibility for effecting recoveries shall then rest with the Accountant General. 522. In the event of an officer being transferred to another ministry or department the Accounting Officer of the yielding ministry or department shall ensure that any outstanding advance account balances in that officer’s name are transferred to the receiving ministry or department, by communicating the full details of any such outstanding advance to the Accounting Officer of the receiving ministry or department at the time of transfer. 523. All advances of a personal nature except for expenditure chargeable to public funds (e.g., an advance to meet conference expenses, and advance to meet travelling expenses on duty) shall be charged interest at a rate determined at the time the advance is made by the Ministry of Finance which may in special circumstances waive this charge. Advances in accordance with the Public Service Regulation shall carry interest as may be determined by the Financial Secretary. 524. When a personal advance in anticipation of salary is allowed it shall be debited as an advance to the recipient and not to the vote for his salary. Where, however, payment is made in the month for which the salary is payable it shall be charged direct to the vote instead. 525. The detailed rules governing procedures for the obtaining and repayment of advances are to be found in the Public Service Regulation for public officers and in The Government Workers Rules for other government workers. Additionally, advances of pay to workers proceeding into the bush may be made by an Accounting Officer on his own personal financial responsibility. 526. Where separate provision has not been made by law for its financial control and operation, and where the approval of the Legislation is obtained for the arrangement, receipts and payments in respect of a commercial or industrial enterprise Suspense accounts for commercial and industrial enterprises. 90 Finance and Audit (Reform) operated on behalf of government, may be dealt with wholly through suspense accounts, or partly through suspense accounts and partly through revenue and expenditure, as may be approved in each particular case. 527. Funds received by a ministry of department which cannot be appropriately credited to a specific revenue account shall be paid into General Revenue ‘Sundries’. In cases of doubt reference shall be made to the Accountant General or sub- accountant. Application should then be made to the Financial Secretary for release of the funds under an appropriate expenditure vote. 528. Receipts relating to deposits shall clearly indicate– (a) the person or persons on whose behalf the deposit is made; and (b) the nature of the transaction. 529. Authorising officers before signing withdrawal vouchers shall satisfy themselves that the money is actually on deposit. The vouchers shall be receipted by the payee. Deposit - withdrawal vouchers. 530. Withdrawal vouchers shall make reference to the date, amount, and number of receipt which was issued when the money was placed on deposit, and to the date, amount, and number of payment vouchers on which any partial repayment was previously made. 531. In case a deposit has been made in the name of a person who subsequently dies, the amount on deposit shall be repaid in conformity with the laws of succession. 532. At the end of February in each year all officers in charge of deposit accounts shall, unless otherwise provided for by law or in absence of any special reasons to the contrary, transfer to revenue all deposits which have remained unclaimed for five years. Unclaimed deposits. Finance and Audit (Reform) 91 533. Accounting Officers who receive money for the credit of a deposit account or incur expenditure which is charged to an advance account shall keep a subsidiary ledger for each account. More than one account may be kept in the same ledger provided the postings for each account are kept separate and distinct. Accounts and reconciliation. 534. Each account shall be kept in two sections viz– (a) A control account which shall be kept on the debit credit balance system and shall record receipt or payment transactions in chronological Order the balance being extended after each transaction; (b) An individual account of receipts for deposit (or payment in advance) in chronological Order on the left hand side and opposite each entry on the right hand side the particulars (including date) relating to the corresponding payment out (or recovery) of the original deposit receipt (or advance payment). 535. Officers authorising payments shall in every case initial both entries in the ledger (in the control account and in the individual account) at the time the payment is authorised and shall also ensure periodically that the sum of the outstanding amounts in the individual section equals the balance in the control account. 536. Accounting Officers shall forward to the Accountant General as soon as possible after the 1st of April each year by a date to be fixed by the Accountant General a statement showing the reconciliation of the balance in the control account at 31st March last with the corresponding balance in the Treasury Books, and an analysis of the balance in the control account. 92 Finance and Audit (Reform) CHAPTER VII Internal Control 551. Many examples of internal controls are included in other chapters of these Orders. This chapter sets out further pointers as to what is expected of Accounting Officers in regard to their responsibilities for the establishment of adequate systems of internal control over the accounts and finances of their departments. The importance of putting internal control on a practical basis cannot be overemphasised. And to this end further detailed advice may at any time be sought from the Ministry of Finance, the Accountant General or the Auditor General. Internal control importance. 552. The term “internal control” as applied to the accounts of the government may be taken to include all forms of departmental supervision of the accounts. It thus includes besides general financial control procedures, systems of internal check. Internal control definition. 553. By “internal check” is meant a system of organization and division of tasks designed with a view to preventing fraud and errors, or of ensuring their prompt detection and minimizing their effect. The essential features of a system of internal check are that too much responsibility shall not be reposed in any one officer and that no person shall be allowed completely to carry through and record any transaction without the intervention of another person. In particular where possible the persons who handle cash should not be allowed access to the ledgers. Internal check definition. 554. The institution of the best internal checks in an office shall require considerable thought by the Accounting Officer or Finance Officer, especially where he is dealing with small offices where staff is very limited, but there are a number of general principles by which he may be guided. Principles of internal check. Finance and Audit (Reform) 93 555. A few such general principles are given below– (a) receiving cashiers shall not have access to revenue registers or write them up; (b) paying cashiers shall have no part in the preparation of vouchers, or the signing and countersigning of cheques; (c) reconciliation of bank accounts with cash books, and comparisons of bank statements and cash book transactions, shall be done up to date, at no longer than monthly intervals, and within fourteen working days of the end of each period, and checked in detail by an officer who is independent of the keeping of the cash records and the signing of cheques; (d) an analysis of cheques, money orders, postal orders, etc. on bank deposit slips or Treasury paying-in forms shall be prepared and identified with the individual receipts or entries (see Order 198) by an independent officer prior to payment into bank or Treasury or Sub-Treasury, and acceptance of the bank deposit slips or Treasury paying-in slips by the bank or Treasury, or Sub-Treasury verified by him; (e) arrears of revenue returns shall be compared with the relevant revenue register by an independent officer, who shall inquire into the position of any long outstanding items, and general increase in arrears, if necessary by independent communication with the debtor; (f) the safeguards to be employed to ensure against the presentation of fraudulent vouchers shall be exercised by the 94 Finance and Audit (Reform) independence of the officers authorizing payment and those making vote control book entries, by the independent examination of payment vouchers prior to payment in the checking branch of the Treasury and Sub- Treasury and by the comparison of cheques with the vouchers at time of signature; (g) an independent officer shall compare the make up of all remittances dispatched with those acknowledged at destination, and ensure that no undue delay has taken place. Where regular remittance is made of similar amounts such officer shall ensure the identification of each remittance. (h) the preparation and checking of wages pay sheets, the obtaining of the necessary cash from the bank, and the actual payment of the wages shall be in separate hands, either completely, or at least as regards to the preparation of pay sheets and the effecting of payment; (i) the register of money received through the post (the value book) shall be compared with the cash book at frequent intervals by an independent officer. 556. Where, in a small office, one officer is obliged to carry out several of the functions detailed in Order 555, the need for independent and regular checks by the Accounting Officer shall become all the more essential. 557. The Accounting Officer shall ensure that the attention of checking officers is directed where the ideal internal check arrangements are least able to be applied or are completely absent. Finance and Audit (Reform) 95 558. Even where a good system of internal control has been devised, it is essential that the Accounting Officer or Finance Officer shall regularly have it under review to ensure its continued efficiency. He shall need to exercise continuous vigilance in this regard. It is no good e.g. for an Accounting Officer to turn around and say, “I told so and so to do it and he did not do it, what do you expect me to do?” for it is up to the Accounting Officer to make sure that his instructions for internal check and internal control are being carried out. For example, it should not take an Accounting Officer more than a few minutes of his time during a visit to one of his out-stations to look through the imprest cash book to see what evidence there has been of surprise survey since his last visit, and for the Accounting Officer to note the cash book accordingly: e.g. I note that X surprise surveys have been carried out since my last inspection. These should be continued (or, these are not as frequent as should be) Initials Date 559. Checking, inspecting and scrutinising officers shall always evidence their checks, inspections and scrutinies by initialling and dating the relevant records. 560. Surprise checks of cash and stores, etc. are an important feature of internal control. In some cases, it will be possible and practicable for an Accounting Officer himself to make surprise checks. In other cases, however, it may not be possible and in such cases Accounting Officers should delegate the work to senior officers not immediately in charge of cash, stores, etc. and instruct them to carry out surprise checks from time to time. The frequency of surprise checks will naturally vary according to the importance and size of the cash, stores, etc. involved. (It is not common sense, for example, to surprise check an imprest holder of $10 weekly and leave an imprest holder of $5,000 unchecked for three months, or to surprise check two boxes of Surprise checks. 96 Finance and Audit (Reform) drawing pins but to leave unchecked 100 tons of cement. Similarly, it makes no sense to worry about an unserviceable spade whilst nothing is being done to put back into operations a big tractor standing broken down on the other side of the road.) 561. If any difficulty is experienced in carrying out a surprise check the checking officer should be on his guard, for it may be that a deliberate attempt has been made to make a check difficult in the hope that the checking officer will not see the check through. On the other hand, difficulties experienced may arise out of weaknesses or defects in the system and this equally demands urgent attention. In all cases therefore surprise checks shall be carried through. 562. In regard to revenue collectors’ cash it is important that checking officers satisfy themselves regularly that the money has been paid into chest by reference to original Treasury receipts and that it was paid in when it should have been paid in. It is also essential for checking officers to satisfy themselves that the sequence of receipts used is unbroken and from time to time to check a few receipts into the cash book. In regard to imprest cash it is important that checking officers satisfy themselves that the imprest is redeemed when it should be redeemed and that the imprest is not in excess of requirements. Certificates. 563. It is emphasised that certificates play an important part in the accounts in support of the disbursement of public funds, and certificates given lightly or on a rubber stamp basis mock one of the roots of the system. Any officer who gives an incorrect certificate does so at his own peril - a peril extending to pecuniary liability apart from any question of discipline. If any Accounting Officer is in doubt, after a full examination of the procedures leading up to a certificate, or in any circumstances, that a certificate does not have full force, he shall notify his ministry accordingly (a copy of the Accountant General and the Auditor General) which, if it cannot bring about a solution, shall report the facts to the Ministry of Finance for decision. If any subordinate officer is in doubt he shall notify his Accounting Officer. In no circumstances shall an Accounting Finance and Audit (Reform) 97 Officer or any officer be required to sign a certificate if he has any doubts as to the correctness of such a certificate. Handing and taking over: cash, stamps and postal Orders. 564. On the date on which one officer transfers responsibility for a holding of cash, stamps or postal Orders to another the cash book or register involved shall be ruled off; both officers shall count the cash, etc. and certify in the cash book or register that the cash, etc. (amount quoted) has been counted, found correct and transferred to the custody of the second officer. A certificate of the handing over of the cash and other balances shall be signed by both officers and submitted to the Accounting Officer. Handing and taking over of controlled forms. 565. Lists of unused controlled forms, unused cheques, etc. handed over shall be prepared separately, signed by both officers and submitted together with certificate for cash, etc. Officer handing over not present. 566. Should an outgoing officer have to leave before the arrival of the incoming officer, the latter shall be accompanied by a superior departmental officer or a Treasury Officer (if in the last resort a superior departmental officer is not available) who shall also sign the handing-over certificate and report any surplus or deficiency. 567. If, for any reason, a key holder cannot attend duty and it becomes essential that any keys in his possession be handed over to another officer for the continuance of public business, the following procedure shall be adopted– (a) the Accounting Officer or his representative shall depute a departmental officer accompanied by the relieving officer to take over from the key holder himself the keys of the safe, etc.; (b) the departmental officer and the relieving officer shall then conduct a survey of the contents of the safe, etc. in accordance with Orders 564 to 566. 98 Finance and Audit (Reform) 568. It is incumbent on a key holder to send notification of absence to his headquarters as soon as possible on the day of absence, and his superior officer shall take appropriate action regarding the continuation of business as he may consider necessary, including possible action as in Order 567 and the seeking of the advice of the Accountant General. 569. Should the Accounting Officer consider that a key holder has been negligent in failing to send notification of absence in time, he shall report the facts to the Financial Secretary, copy to the Accountant General and the Auditor General. The Financial Secretary shall then decide whether steps should be taken to call upon the officer to show cause why he should not be surcharged with any transfer costs incurred by government. 570. When an officer in charge of cash, stamps, postal orders etc. or controlled forms leaves them temporarily, he remains wholly responsible for them unless he hands them over formally to another person in accordance with Orders 564 to 566. Temporary absence. 571. (a) All books of account shall be written in ink. Books of account: general instructions. (b) The pages of all bound account books shall be numbered consecutively; if the numbers are not printed, they shall be inserted in ink before the books are brought into use. (c) Loose leaf account books shall not be introduced without prior written approval of the Accountant General. In giving such approval the Accountant General shall specify the type, size and make of the binders and whether or not a security lock shall be included. If a security lock is specified, the Accountant General shall also approve the control arrangements for the custody of the security of the keys. (see also Orders 581 and 582). Finance and Audit (Reform) 99 572. Books of account, vouchers and accounting documents shall be transported from one station to another securely parcelled to safeguard against loss or damage. The receiving officer shall examine the packet immediately on receipt and, in the event of the contents having been tampered with, shall report forthwith to the sender and the Accounting Officer. The Accountant General and the Auditor General shall also be notified at once of any such occurrence. 573. Cashiers, sub-accountants, imprest holders and revenue collectors shall keep cash books in which they shall record promptly all sums of money received or paid by them as public officers for whatever service, whether they form a part of the revenue or not. The forms of cash books shall be approved in writing by the Accountant General who shall decide whether they shall be printed or drawn manually. Cash books: general instructions. 574. Such officers shall confirm each day the correctness of the daily transaction by comparing the total of receipts (less payments as applicable) with cash in hand. 575. Cash books of the Treasury, Sub-Treasuries and Belize City post office shall be balanced, ruled off and the balance brought down daily. The ruling off and the bringing down of the balance in revenue collectors’ or imprest cash books shall be done at least at the time of paying-in to Treasury or Sub- Treasury and at the time of redemption respectively, but in such cases it is essential that the cash be checked daily with the balance indicated by the entries in the cash book. 576. An Accounting Officer or his deputy or his Finance Officer where appointed shall evidence his survey of the cash book of any of his departmental officers by his signature and the date of survey in the cash book below the words “Balance of $ surveyed and found correct/short/excess”. 577. Alterations on receipts and on savings bank deposit and withdrawal slips are prohibited. If an alteration is necessary on any other voucher or in a book of account, the incorrect figures Alterations and erasures in account books and documents. 100 Finance and Audit (Reform) shall be struck out by a single horizontal line and the correct figure inserted above the original figures so that both can be clearly seen. The officer making the correction shall initial and date it. Erasures and superimpositions are prohibited. 578. Alterations on payment vouchers shall be additionally initialled by the officer certifying the voucher and/or by the payee according to the part of the voucher in which the alteration is made. 579. However, every step shall be taken to avoid the occurrence of an alteration on a voucher. Cancellation and entire re-preparation before payment stage shall be resorted to where the alterations on the documents may give rise to any doubt later as to the authenticity of any of the figures thereon. 580. A figure shall not be altered in any records which have been audited unless the consent of the Auditor General and the Accountant General is first obtained. 581. Where it is considered advantageous to employ cards or loose leaf ledgers to serve as revenue and payments registers, or as ledgers for advances, deposits, etc., it shall be necessary for internal control procedures to be thoroughly examined and set out in writing, to ensure against irregularity arising from the mislaying, loss, or deliberate removal of folios. Apart from systems of control over printed sheets, there shall exist systems whereby control accounts for appropriate batches are frequently reconciled with the individual folios making up the batches and the totals of these batch control accounts are frequently reconciled with the main account. Accounts kept on cards or loose leaves. (see also Order 571 (c)) 582. Such systems shall invariably be committed to writing and receive the prior written approval of the Accountant General who may consult the Auditor General in the matter. Finance and Audit (Reform) 101 583. When not required for use or at night all accounting records or documents shall be placed if possible in strong rooms, safes or lockable cabinets. The question of the availability of adequate fireproof accommodation for such records shall always receive the consideration of Accounting Officers or Finance Officers and documents lodged where the danger is least. Precautions against loss or damage to accounting records or documents. It may be desirable where important records are kept, and where it will be difficult to re-construct the account, to consider the provision of specific fireproof and waterproof equipment. 584. Non-compliances with financial Orders and instructions, even if one by one in isolation and possibly apparently trivial can lead to serious breakdown in the total. It follows, therefore, that any queries or observations on the accounts, whether from an Accounting Officer’s own ministry or the Ministry of Finance, or Treasury/Sub-Treasury or Audit, shall be taken seriously and promptly attended to. Non-compliance. 102 Finance and Audit (Reform) CHAPTER VIII Losses, Shortages and Write offs (Note: Losses of stores, plant and machinery, equipment, stationery, etc. are dealt with separately in Stores Orders). 601. Every public officer is duty bound to bring to the notice of his superior officer without delay for notification to the Accounting Officer, any loss, shortages, irregularity, fraud, theft, failure or delay affecting the funds or property of government or for which government is responsible. The hiding of an irregularity or loss of any kind shall be the subject of severe disciplinary action against the officer(s) responsible. In this connection the responsibility of an officer for a loss shall not be affected should the sum be made good by any other officer. Reporting procedure - losses, shortages, irregularities, frauds, thefts, failures or delays: immediate action. 602. Where theft, burglary, or fraud committed by persons outside the government services are involved, the facts shall be immediately referred to the Police. 603. Where an Accounting Officer or his representative considers at any stage before a final report can be submitted that the facts reported to him clearly indicate that a member of the government service may be guilty of a criminal offence, or of an offence which would involve proceedings against him with a view to dismissal, he shall relieve him of all his financial duties and he shall forthwith refer the matter direct to the Solicitor General with a copy to the Chief Executive Officer, Ministry of the Public Service, the Financial Secretary, the Accountant General and the Auditor General. If the Solicitor General advises the Accounting Officer in reply (copy to the Chief Executive Officer, Ministry of the Public Service, the Financial Secretary, the Accountant General and the Auditor General) that a criminal offence has been committed by an officer, the Accounting Officer shall then refer the matter to the Police. Finance and Audit (Reform) 103 604. If the crown law officers advise either that a criminal offence has been committed or that disciplinary action with a view to dismissal is appropriate, and the Accounting Officer is of the opinion that the interest of the service demands that the officer should instantly cease to exercise the duties and functions of his office, he shall recommend to the Financial Secretary, the Accountant General and the Auditor General that the officer be interdicted. 605. Notwithstanding any action which may have been taken at Orders 601 to 604 the Accounting Officer, through his Finance Officer where appointed, shall in all cases, on discovering any loss, shortage, fraud, theft or irregularityGeneral action to be taken by Accounting Officers or Finance Officers. (a) arrange with the Accountant General for the amount of any deficiency to be debited to personal advances in the name of the loser. The word ‘losses’ shall appear in the title of the advance account before the loser’s name i.e. Advances, Personal Advances (Losses Tom Jones); (b) report the facts by memorandum to the Accountant General with copies to the Financial Secretary and the Auditor General confirming that the personal advances account has been opened and giving its title; (c) send interim reports, including police reports, as at (b). (d) pay in any lost cash recovered to the credit of the personal advances account; (e) submit his final report on the prescribed form to the parties as in (b) together with a statement from the officer responsible for the loss showing cause, if he wishes to do so, why 104 Finance and Audit (Reform) he should not be surcharged with the amount of the loss. 606. On receipt of the Accounting Officer’s final report, the Financial Secretary shall where appropriate submit his firm recommendations to the Chief Executive Officer, Ministry of the Public Service with specific recommendations as toAction to be taken by the Financial Secretary. (a) whether any of the officers concerned should be surcharged and, if so, to what amount; (b) in cases where criminal charges, or proceedings for dismissal have not already been preferred, whether formal disciplinary action under the Public Service Regulations should be taken against any of the officers concerned in addition to the surcharge. If so, details of the specific charge or charges shall be provided, with a recommendation as to whether the seriousness of the offence warrants action with a view to the officer’s dismissal from the service; or (c) whether a letter embodying a general warning should be sent to any of the officers concerned, without taking formal disciplinary action under the Public Service Regulations. 607. On receiving the final decision, the Financial Secretary shall on advice of the Accountant General and Auditor General take necessary action to initiate any necessary write off for the clearance of any advance account. 608. Where criminal proceedings are instituted leading to a conviction, Accounting Officers shall immediately investigate the prospects of recovery by means of a civil action from the assets of the convicted person or persons and the result of such investigation shall be communicated to the Financial Secretary Civil action after conviction. Finance and Audit (Reform) 105 through the Accountant General, with a copy to the Auditor General. 609. The authority of the House of Representatives is required for the writing off of any loss of public money or stamps or postal Orders where the amount in any one case exceeds $10,000. The authority of the Minister of Finance is required for the writing off where the amount does not exceed $10,000 but is more than $4,000. The authority of the Financial Secretary is required for the writing off where the amount does not exceed $4,000. Authority for write off of cash. 610. The authority of the House of Representatives is required for the writing off of arrears of revenue in individual cases where the amount in any case exceeds $10,000. The authority of the Minister of Finance is required for the writing off where the amount does not exceed $4,000. Also falling to be written off under this Order are losses of revenue due to under assessment as distinct from arrears e.g. a ship calls at a port and is assessed and pays $40.00 for light dues, but after the ship has left it is found that it should have been assessed $100; all efforts to collect the balance due of $60 fail. Authority for write off of arrears of revenue in individual cases. 611. Application for authority to write off arrears of revenue in individual cases shall be submitted by the Accounting Officer to the Financial Secretary with copy to the Accountant General and Auditor General. Procedure to obtain write off of arrears of revenue. 612. Such application shall contain a certificate by the Finance Officer, or the Accounting Officer where no Finance Officer has been appointed, in the following form‘I certify that– (a) the cases of irrecoverable revenue have been personally investigated by me; 106 Finance and Audit (Reform) (b) I am satisfied that every avenue to obtain payment of the revenue has been explored without success; (c) there has been no negligence or carelessness on the part of any officer of this department so far as I have been able to ascertain by all possible enquiries as a result of which the revenue has become irrecoverable’. 613. The authority of the House of Representatives is required for the writing off of any irrecoverable advances where the amount in any one case exceeds $10,000. The authority of the Minister of Finance is required for the writing off where the amount does not exceed $10,000 but is more than $4,000. The authority of the Financial Secretary is required for the writing off where the amount does not exceed $4,000. Authority for write off of irrecoverable advances. 614. Save where other authority is prescribed by specific law the approval of the Legislature is required for any general cancellation of revenues due to government prior to a given date. Application for any such general cancellation shall be made by letter to the Financial Secretary with copy to the Accountant General and the Auditor General. Authority for general cancellation of arrears of revenue and cancellation of all arrears prior to a given date. 615. The authority of the House of Representatives is required for the writing off of any abandoned claims where the amount in any one case exceeds $10,000. The authority of the Minister of Finance is required for the writing off where the amount does not exceed $10,000 but is more than $4,000. The authority of the Financial Secretary is required for the writing off where the amount does not exceed $4,000. This Order covers the abandonment of claims in respect of loans, defaults by contractors and cases of a similar nature. Writing off of abandoned claims. 616. The authority of the Minister of Finance is required for the writing off of lost receipt forms. General action to be taken by Accounting Officers on discovering the loss of any receipt forms shall be as set out in Order 605. Writing off of losses of receipts. Finance and Audit (Reform) 107 617. The authority of the House of Representatives is required for the writing off of irrecoverable overpayments or where for legal or other reasons it is decided not to take action to effect whole or partial recovery, where the amount in any one case exceeds $10,000. The authority of the Minister of Finance is required for the writing off where the amount does not exceed $10,000 but is more than $4,000. The authority of the Financial Secretary is required for the writing off where the amount does not exceed $4,000. Irrecoverable overpayments (non-fraudulent). 618. In all cases of overpayments, any erroneous rate of payments shall be stopped immediately, the fact becomes known, and all necessary measures shall be taken to determine the liability, if any, of the officers responsible for the overpayments. 619. Accounting Officers are required to report all cases of overpayments to the Accountant General with copy to the Financial Secretary and the Auditor General immediately after coming to the notice, if not recovered immediately on discovery. When reporting cases to the Accountant General, the Accounting Officer shall give full details of how the overpayment occurred, the officer or officers considered responsible, the measures taken to prevent a recurrence, the action proposed to effect recovery and any other information which will help to make a decision in the matter. 620. An Accounting Officer shall report to the Financial Secretary (with copies to the Accountant General and the Auditor General) the circumstances attending all cases which come to his attention in his own Ministry of nugatory expenditure, and fruitless payments, as a result of which monies are expended which represent a dead loss to government. Cases shall likewise be reported where partial losses are sustained in similar circumstances. Nugatory expenditure. 621. When it is necessary to refer to the Attorney General for advice in any matter involving a question as to whether a claim for any item of revenue or for any sum due to Government Legal Advice. 108 Finance and Audit (Reform) should either be abandoned or recovered by legal process the Attorney General shall advise, inter alia, especially in the following formseither– (a) that on strictly legal grounds a civil claim would probably not succeed; or (b) that on strictly legal grounds a civil claim would probably succeed; or (c) that on strictly legal grounds a civil claim would probably succeed but that, on other grounds stated, legal action is not advisable. 622. In the event of advice tendered as at 621(a), authority for write off shall be sought. 623. In the event of advice tendered as at 621(b), legal action shall be taken unless, in special circumstances, the Accounting Officer obtains the authority of the Ministry of Finance not to proceed. 624. In the event of advice tendered as at 621(c), the Accounting Officer shall refer the matter with his comments to the Ministry of Finance for a decision as to whether legal action should be taken. 625. If it is decided not to take legal action in cases covered by Orders 623 and 624, application to write off shall be made. Finance and Audit (Reform) 109 CHAPTER IX Miscellaneous 651. The Auditor General or any officer deputed by him is at all times entitled to have access to all books, records or returns relating to accounts, and all officers with accounting responsibilities shall give him every facility for inspecting such documents. He shall also have authority to carry out surveys of cash, stamps and stores. Audit. 652. It is the duty of all officers with accounting responsibilities to reply promptly to any enquiries addressed to them by the Auditor General giving fully the particulars of information desired. 653. The Auditor General shall arrange for all inspection reports to be copied to the Ministry concerned and the Accountant General. Ministries and the Accountant General shall pay due attention to and follow up these reports. If ministries in consultation with the Accountant General where necessary cannot bring about a solution, they shall inform the Ministry of Finance accordingly. 654. The use of green pencil or green ink in all papers and records is restricted to the Audit Department. 655. The authority of the Accountant General is required before accounting records are destroyed, and the responsible officer shall ascertain that the periods specified below for their preservation have been exhausted. Destruction of account book and records. 110 Finance and Audit (Reform) Class of record To be retained for at Least (a) Principal Treasury ledgers and principal journals 20 years (b) Special ledgers and records e.g. Savings Bank depositors’ ledgers, loan registers 20 years after the final completion of all transactions, and the closing of the last account therein (c) Cash books 7 years (d) Vote Control Books 7 years (e) Abstracts and similar class of records 7 years (f) Original payment vouchers, receipts, transfer vouchers, paid cheques and similar records 7 years (g) Stores ledgers and vouchers 7 years (h) Copies of contracts, paid foreign money Orders and trade charge money Order registers 5 years (i) Paid inland money Orders, telegrams and telegraph returns and any financial records not specifically referred to 2 years (j) Establishment records which may be required for pension purposes (e.g. personal files at Ministry of Public Service and Salary registers) 45 years 656. Accounting Officers shall consult the Accountant General before the introduction of any mechanised accounting system and before making any firm order for adding, accounting or calculating machines. Mechanisation of accounts. Finance and Audit (Reform) 111 657. It is the policy to standardise on adding, accounting and calculating machines, and in pursuing this policy, Government is guided by the facilities available for maintenance, supply of spare parts, and the speed of getting machines back into service in the event of breakdown. 658. The Auditor General shall be consulted during the planning stages for any mechanised system. 659. The Accountant General may also at any time require an investigation to be made in any department where he considers that the introduction of mechanised accounting methods will be advantageous. 660. All machines shall receive the best servicing possible, and departments shall be guided by the instructions of the Accountant General in this respect. 661. No government officer or employee unless specifically authorised to do so by the Chief Executive Officer of the Ministry concerned, may make use of any government property, premises, labour or services for private purposes. Use of government property, premises, labour or services for private purposes. 662. When a government vehicle is involved in an accident, the officer responsible for the vehicle shall report the full facts to his Accounting Officer who shallAccidents. (a) report the facts by memorandum to the Accountant General, and copy to the Financial Secretary and the Auditor General; (b) arrange assessment through the Chief Executive Officer, Ministry of Works (without admitting liability) of the damage to the government vehicle, any private vehicle or any other government or private property involved. It is within the discretion of the Chief Executive Officer, Ministry of Works to decide whether the assessment shall be done 112 Finance and Audit (Reform) by one of his officers (he may accept the assessment of a competent officer of another department who may even be a member of the department involved in the accident); (c) send interim reports, including police reports as at (a); (d) submit his final report which shall be marked as such together with a statement from the driver of the vehicle involved in the accident showing cause, if he wishes to do so, why he should not be surcharged with the cost of repairs to the government vehicle and with the amount of any other liability falling on government. 663. If on receipt of the Accounting Officer’s final report, the Financial Secretary considers that there is a case for disciplinary action providing as for recovery of costs, he shall– (a) in the case of a public officer, submit his firm recommendations to the Chief Executive Officer, Ministry of the Public Service; and (b) in other cases, hand down his decision to the Accounting Officer concerned with a copy to the Accountant General and Auditor General; (c) when the Accounting Officer considers a write off is the better course, apply for the necessary board of survey to be appointed for the purpose. 664. Any cash recoveries (from the driver, or from a third party) after an accident shall be credited to revenue. 665. Any compensation awarded to a third party by the government, on the advice of the Attorney General, as a result Finance and Audit (Reform) 113 of an accident shall be paid by the Financial Secretary from the appropriate vote under his control. 114 Finance and Audit (Reform) CHAPTER X Contracts (Works and Services) and Tenders Committee 701. An Accounting Officer may make verbal contracts for works and services under ten thousand dollars. An Accounting Officer may make written contracts to a limit of fifty thousand dollars with the approval of that Accounting Officer’s Minister. Tenders shall normally be invited for contracts over twenty thousand dollars. Tenders shall be invited for contracts over fifty thousand dollars. Contracts. 702. The Tenders Committee is constituted to advise the Minister of Finance on the acceptance of tenders for works, services and stores, and if necessary to recommend the nature of the security to be taken for the proper execution of contracts awarded after tender. The Committee shall consist of the Deputy Financial Secretary, Lands Commissioner and Chief Executive Officer, Ministry of Works. In the absence of the Deputy Financial Secretary, the Chief Executive Officer, Ministry of Works shall be chairman. Tenders Committee. 703. Each Ministry should establish its own Tenders Committee which should examine tenders received. The Committee shall comprise the Chief Executive Officer, a Head of Department and the Finance Officer. The Committee should forward its decision as a recommendation to their Minister for final decision. 704. The chairman and one other member form a quorum. The secretary shall be the officer responsible for the schedule of duties of Under Secretary, Finance. 705. The Tenders Committee shall meet at a date and hour to be fixed by the chairman and notified to members by the secretary. Finance and Audit (Reform) 115 706. The Tenders Committee is empowered to call upon any departmental officers to assist with expert advice. 707. The secretary to the Tenders Committee shall be responsible for giving publicity to notices inviting tenders by advertisement as approved by the chairman in the Gazette and in the local newspapers. 708. Tenders forms, as approved by the Tenders Committee, with the description of the articles or services required and the general or special conditions obtaining, shall be supplied to prospective tenderers by the secretary to the Tenders Committee on application to the Ministry. 709. Tenders, which shall be addressed to the Chairman of the Tenders Committee, may be sent through the post or may be placed in the tender box at the Ministry. They shall be submitted in sealed envelopes and marked legibly on the outside to indicate the service in respect of which they are made. All tenders sent through the post by air freight shall be endorsed to that effect by the chairman with a note of the date and hour of receipt and shall then be deposited by him in the tender box. Any tender which does not comply with the terms of the tender notice or which is brought before the board through any other channel shall not be considered. 710. The tender box which is lodged in the Ministry shall be double locked, one key being held by the chairman and the other by a member. 711. The tender box shall be closed at the hour fixed, after which the tenders shall be opened by or under the immediate supervision of the chairman. They shall receive consecutive numbers and shall be authenticated by the initials of the chairman and members present. Any corrections, deletions or additions in the tender shall be initialled by the chairman. 712. A record shall be made of the proceedings of the Committee at each meeting. 116 Finance and Audit (Reform) 713. Tenders, while under consideration, shall be kept confidential and in safe custody. 714. Tenderers may be called upon when supplied with tenders forms to deposit such sums as may be fixed by the Committee. 715. The deposit shall be refunded in accordance with the conditions notified in the tender notice. 716. In no case shall tenders be referred back to tenderers for amendment without the authority of the Tenders Committee. 717. Any contract arising out of consideration of tenders shall be prepared by the Accounting Officer concerned and referred to the Solicitor General who shall initial it to show that, from the legal point of view, the document is in order. Any contract not arising out of consideration of tenders shall be prepared by the Accounting Officer concerned and shall, if not in a form already approved by the Solicitor General, be referred to the Solicitor General who shall initial it to show that, from the legal point of view, the document is in order. 718. Accounting Officers shall maintain a register of all contracts/tenders approved. The register shall contain the full particularsName of contractor Nature of contract Value of contract Particulars of payment Remarks 719. Unsuccessful tenderers shall also be notified of the non- acceptance of their tender as soon as possible. 720. Contracts, once entered into, shall on no account be altered, assigned or sub-let without the authority of the Ministry Finance and Audit (Reform) 117 obtained through the Tenders Committee, unless the contract otherwise provides. 721. Copies of all contracts shall be sent by the Accounting Officer to the Accountant General, the Auditor General and the Contractor General. 722. As indicated in paragraph 111 of The Control of Public Expenditure handbook, the Ministry of Works shall arrange the letting of contracts for works through the Tenders Committee (if the Ministry is not carrying out the work itself) afterTenders Committee Rules (works contracts). (a) the relevant project has been approved by the Legislature; (b) plans have been approved, where appropriate, by the Ministry of Works; and (c) the Ministry of Finance has approved the relevant warrant. 723. The Chief Engineer, Ministry of Works, shall maintain a register of contractors in which contractors shall be graded under the following headings: Category A - multi-storey buildings and major works Category B - other buildings and works Category C - trial category 724. The register shall also contain, in respect of each contractor, brief details of his capabilities (e.g. plant and equipment available, capital employed) and a completed record of his work as a contractor for the government. The Chief Engineer shall arrange to keep the register accurately and up-to- date and for the architect or engineers responsible for the work to make an accurate report to the Tenders Committee on the work of the contractor at the time of the preparation of the 118 Finance and Audit (Reform) handing-over certificate (see Order 724). The register shall be available for reference by the Tenders Committee on request to the Chief Engineer. 725. On completion of contract works, they shall be inspected as follows– (a) by the architect or engineer in charge of construction; (b) by a representative of the commissioning department; (c) by the contractor or his representative; (d) by a representative of the branch of the Ministry of Works responsible for ultimate maintenance. A final handing-over certificate shall be signed by the persons referred to in (a), (b) and (d) above and a copy sent to the Principal Auditor. __________