PUBLIC FINANCIAL MANAGT. ACT, 2016

1 PUBLIC FINANCIAL Management Act, 20161 Act 921 ARRANGEMENT OF SECTIONSS ectionPreliminary Provisions 1. object of this Act 2. ApplicationResponsibilities and Roles for PUBLIC FINANCIAL Management 3. General responsibility 4. Responsibilities of Minister 5. Powers of Minister 6. Responsibilities of Chief Director 7. Duties of a Principal Spending Officer 8. Controller and Accountant-General 9. Deputy Controller and Accountant-General10. Budget Office11. Oversight of ParliamentMacroeconomic and Fiscal Policies12. Application of sections 13 to 1713. Fiscal policy principles14. Fiscal policy objectives15. Fiscal Strategy Document16. Fiscal policy indicators17. Cabinet to adhere to targets in Fiscal Strategy Document18. Suspension of rules or targetsBudget Preparation, Approval and Management19. Salary negotiations for PUBLIC sector20. Guidelines for preparation of annual budget21. Annual budget22. Approval of annual budget by Parliament23.

2 Expenditure in advance of appropriation24. Budgeting on a gross basis25. Commitment of approved budget26. Expiry of appropriation27. Performance Report28. Mid-year reviewPUBLIC FINANCIAL MANAGEMENT ACT, 2016 PUBLIC FINANCIAL Management Act, 20162 Act 92129. Re-allocation of funds from a covered entity30. Budget implementation by Principal Spending Officers31. Cash flow forecast32. Virement33. Multi-year expenditure commitments34. Submission of quarterly reports on budget implementation35. Supplementary budgetContingency Fund36. Contingency Fund payments and advancementsSinking Fund and Debt Servicing37. Creation of Sinking Fund38. Sources of money for the Sinking Fund39. Administration of the Sinking Fund40. Bank account of Sinking Fund41. Payment from Sinking Fund42. Accounts and audit43. Annual report and other reports44. Transfer of moneyCash and Asset Management45. Management and use of Government moneys46.

3 Treasury Single Account47. Collection, deposit and retention of Government revenue48. Consolidated Fund49. Investment of balances on the Consolidated Fund50. Spending from the Consolidated Fund51. Bank account management52. Custody and management of assets53. Abandonment of claims and write off of PUBLIC fundsPublic Debt Management54. Functions of the PUBLIC Debt Management Office55. Government borrowing and debt management56. Approval of Parliament of terms and conditions of governmentborrowings57. Borrowing purposesPUBLIC FINANCIAL MANAGEMENT ACT, 2016 PUBLIC FINANCIAL Management Act, 20163 Act 92158. Debt management objectives59. Debt management strategy60. Annual borrowing and recovery plan61. Issuance of government debt securities in the domestic debt market62. Issuance of government debt securities abroad63. Borrowing from banks and other FINANCIAL institutions64. Other market transactions65.

4 Status of Government debt66. Government guarantees67. Government lending68. Supplier s credit agreements entered into by Government69. Finance lease agreements entered into by Government70. Record of government debt and finance arrangements71. Publication of government debt and finance arrangements72. Annual report to Parliament73. Borrowing by local government authorities, PUBLIC corporationsand state-owned enterprises74. Borrowing by local government authorities75. Reporting requirements of local government authorities76. Borrowing by PUBLIC corporations and state-owned enterprises77. Reporting requirements of PUBLIC corporations and state-ownedenterprises78. Power to appoint agentsAccounts and Audit79. Submission of FINANCIAL statements80. Annual accounts81. Consolidated annual accounts82. Changes to accounting or classification system83. Internal audit84. External audit85. Report on findings and recommendationsAudit Committees86.

5 Establishment of Audit Committee87. Composition of Audit CommitteePUBLIC FINANCIAL MANAGEMENT ACT, 2016 PUBLIC FINANCIAL Management Act, 20164 Act 92188. Functions of Audit Committee89. Submission of consolidated audit accounts of local governmentauthorities90. Duty of governing body of PUBLIC corporation and state-ownedenterprise91. Collection and receipt of moneys due to PUBLIC corporations92. Removal of directors of a PUBLIC corporation93. Annual FINANCIAL plan of PUBLIC corporations and state-ownedenterprises94. FINANCIAL directives to PUBLIC corporations and state-owned enter-prises95. Accounts and audit of PUBLIC corporations and state-owned enter-prisesMiscellaneous Provisions 96. Offences and penalties 97. Surcharge 98. Penalty for contravetion of this Act 99. Waiver of sovereign immunity100. Fiscal impact analysis of legislation and proposals101. Repeals and savings104. Transitional provisionsSCHEDULEPUBLIC FINANCIAL MANAGEMENT ACT, 2016 PUBLIC FINANCIAL Management Act, 20165 Act 921 ACTOF THE PARLIAMENT OF THE REPUBLIC OF GHANAENTITLEDPUBLIC FINANCIAL MANAGEMENT ACT, 2016AN Act to regulate the FINANCIAL management of the PUBLIC sector withina macroeconomic and fiscal framework; to define responsibilitiesof persons entrusted with the management and control of publicfunds, assets, liabilities and resources, to ensure that PUBLIC fundsare sustainable and consistent with the level of PUBLIC debt; to providefor accounting and audit of PUBLIC funds and to provide for by Parliament and assented to by the President:Preliminary ProvisionsObject of this Act1.

6 (1) The object of this Act is to regulate the FINANCIAL managementof the PUBLIC sector within a macroeconomic and fiscal framework.(2) For the purpose of subsection (1), there shall be established(a)a framework to support a sound fiscal policy and themacroeconomic management of PUBLIC funds;DATE OF ASSENT: 25th August, OF GHANATHE NINE HUNDRED AND TWENTY-FIRSTP ublic FINANCIAL Management Act, 20166 Act 921(b)processes for the preparation, approval and managementof a transparent, credible and predictable annual budget;(c)mechanisms for the operation of the Consolidated Fund;(d)mechanisms for the management of PUBLIC funds, assets andliabilities;(e)internal and external audit frameworks and correlativereporting and accounting systems; and(f)a mechanism to oversee the matters specified under para-graphs (a) to (e).Application2.(1) This Act applies to(a)a covered entity; and(b)a PUBLIC officer responsible for receiving, using, or managingpublic funds.

7 (2) This Act shall be read together with any other enactmentrelevant to PUBLIC FINANCIAL management.(3) Where there is a conflict or inconsistency between the provi-sions of this Act and any other relevant enactment, the provisions of thisAct shall and Roles for PUBLIC FINANCIAL ManagementGeneral responsibility3. The Minister, Chief Director, Controller and Accountant-General,a Principal Account Holder, a Principal Spending Officer and any otherpublic officer designated by the Minister to manage PUBLIC funds shalldischarge their respective responsibilities and exercise their powers inaccordance with this Act and the of Minister4.(1) The Minister is responsible for the policy and strategic mattersrelated to the efficient operation of the PUBLIC FINANCIAL managementsystem of the country subject to policy guidance from Cabinet.(2) For the purpose of subsection (1) and subject to the Constitu-tion and any other enactment, the Minister shall(a)prepare the annual and supplementary budget estimates andreports for submission to Parliament; PUBLIC FINANCIAL Management Act, 20167 Act 921(b)submit to Parliament for approval, the budget of coveredentities as required under this Act or any other enactmentto ensure compliance of the covered entities;(c)monitor and assess the implementation of the annualbudget and ensure the implementation of the fiscal policyof Government;(d)manage Government property, FINANCIAL assets, Govern-ment debts, Government guarantees and other contingentliabilities specified under this Act;(e)account for PUBLIC funds through a consolidated publicaccount;(f)supervise the FINANCIAL operations of a covered entity;(g)prepare Fiscal Strategy Document;(h)manage PUBLIC funds.

8 (i)coordinate and mobilise resources including financialassistance from development partners and integrate theresources into the planning, budgeting, reporting andaccountability processes provided under this Act;(j)provide policy framework for conducting banking andmanagement of cash for a covered entity;(k)issue directives and instructions necessary for the effectiveimplementation of this Act or any other enactment to thehead of a covered entity, a Principal Account Holder andPrincipal Spending Officer of a covered entity; and(l)perform any other functions assigned to the Ministerunder this of Minister5.(1) Pursuant to section 4, the Minister may(a)request a report or any other information from any coveredentity or any other person receiving grants, advances, loans,guarantees or indemnities from the Government;(b)in consultation with the Civil Service Council and with theapproval of Cabinet, establish structures or units, withinthe Ministry necessary to enable the Minister dischargeresponsibilities under this Act;(c)acting on the advice of the Attorney-General and subject tothe approval of Parliament, enter into and execute an agree-ment on behalf of the Government in relation to matters ofa FINANCIAL nature; andPublic FINANCIAL Management Act, 20168 Act 921(d)give directives and instructions necessary for the implemen-tation of the provisions of this Act.

9 (2) The Minister may delegate any of the responsibilities undersubsection (1) to the Chief Director or to a senior PUBLIC officer notbelow the rank of a Director within the Ministry but shall not be relievedof the ultimate responsibility for the performance of the delegatedresponsibility.(3) Subject to any procurement laws, the Minister may hire orretain the services of professionals, consultants or experts, as the Ministerconsiders necessary for the proper and effective performance of thefunctions of the Minister under this Act, on the terms and conditions tobe agreed of Chief Director6.(1) In addition to the duties assigned under section 20 of the CivilService Act, 1993 (PNDCL 327) and responsibilities specified under thisAct relating to a Principal Spending Officer, the Chief Director shall(a)advise the Minister on economic, budgetary, and financialmatters and on matters related to the implementation ofthis Act;(b)coordinate the preparation of the (i) Fiscal Strategy Document,(ii) budget estimates, and(iii)the Appropriation Bill;(c)co-ordinate the promotion and enforcement of a transparent,efficient and effective manangement of (i) PUBLIC revenue,(ii) PUBLIC expenditure, and(iii)the assets and liabilities of a covered entity;(d)monitor the performance of the PUBLIC FINANCIAL manage-ment systems of the PUBLIC sector;(e)monitor the FINANCIAL and related performance of a coveredentity.

10 And(f)prepare a report within one month after the end of eachquarter on the implementation of the annual budget by theGovernment and submit the report to the FINANCIAL Management Act, 20169 Act 921(2) For purposes of subsection (1), the Chief Director(a)shall through the Controller and Accountant-General haveaccess, during working hours, to(i)the accounting records or information of a coveredentity,(ii)the place where PUBLIC accounting services are carriedout, and(iii)the place where PUBLIC accounting records are kept;and(b)may inspect, during working hours, the offices of acovered entity and access any information relating topublic finance that the Chief Director may request.(3) The Chief Director may, under paragraph (b) of subsection (2),authorise a PUBLIC officer to inspect the offices of a covered entity.(4) The Chief Director may, in writing, delegate any of the respon-sibilities under this section to a senior PUBLIC officer of the Ministry butshall not be relieved of the ultimate responsibility for the discharge of thedelegated of a Principal Spending Officer7.