The Public Finance Management ACT 2018

1 THE Public Finance Management ACT, 2018 ARRANGEMENTOFSECTIONSPART title and of ActPART of and powers of the to of Secretary to of Accountant-General10. Controlling officers11. General responsibilities of controlling duties of controlling officer and controlling body13. Appointment and responsibilities of accounting officers14. Controller of Internal of Controller of Internal and powers of internal of internal and powers of stock committeesPART IIICONTROLOFPUBLICFINANCES20. Additional principles of Public funds to be credited to Consolidated from Consolidated of and Single and lendingSupplement to the Republic of Zambia GovernmentGazette dated Wednesday, 11th April, 2018No.

2 1 of 20181 Copies of this Act can be obtained from the Government Printer, Box 30136, 10101 Lusaka. Prices Public debt chargeable to Consolidated Fund28. General revenues29. Generation of revenue30. Releases of funds31. Bank balances at end of financial year32. Bank accounts in respect of Public monies33. Interest on bank accounts34. Investments35. Deposits excepted from Consolidated Fund36. Appropriation in aid37. Working accounts38. Recoverable advances39. Variation of funds40. Aided projects41. Management of Public assets and stores in ministries andgovernment agencies42.

3 Disposal of Public assets and stores by Public bodies43. Establishment of committee of survey44. Disposal of Public assets and stores by local authority, statutorycorporation and state owned enterprise45. Disposal procedures for Public assets and stores in Public bodies46. Methods of disposal of Public assets and stores in Public bodies47. Restriction on disposal to employees48. Losses of monies or storesPART IVFINANCIALMISCONDUCT49. Financial misconduct by controlling officers, committees andoffice holders50. Disciplinary proceedings51. Surcharge for failure by controlling officers or controlling bodyto perform52.

4 Surcharge for failure by office holder to perform duty assigned53. Interim order of surcharge54. Attachment of property of office holder as security2No. 1 of 2018 ] Public Finance ManagementPART VCONTROLOFSTATUTORYCORPORATIONSANDSTATEO WNEDENTERPRISES55. Responsibilities of Minister in Management of state ownedenterprises and statutory corporations56. Management of statutory corporations and state ownedenterprises57. Representation in statutory corporations and state ownedenterprises58. Annual report and financial statements59. Shareholders meetings60. Conditions for appropriation of grants61.

5 Grants disbursed to statutory corporations and state ownedenterprises62. Transfer of assets to statutory of investments in statutory corporations or stateowned enterprises to be maintained64. Inefficient operations of statutory corporations or state ownedenterprises65. Protection of assets of statutory corporation or state ownedenterprise66. Audit of statutory corporation or state owned enterprise67. Protection of Government interests on privatisation of statutorycorporations or state owned enterprises68. Recovery of outstanding monies69. Dissolution of statutory corporationPART VIREPORTS70.

6 Financial report of Republic71. Financial year for Public body72. Financial reports for statutory corporations and state ownedenterprisesPART VIIEXTERNALAUDIT73. Mandate of Auditor-General74. Auditor-General may secure services of agent or specialistconsultantsPublic Finance Management [No. 1 of 20183 PART VIIIGENERALPROVISIONS75. Prohibition of unauthorised incentives76. Unauthorised use of Public money77. Right to make representations78. Consultancy services79. Restrictions regarding agreements80. Establishment or merging of Government ministries,departments and Government agencies81.]

7 Dissolution of Government ministries, departments andGovernment agencies82. Offences and penalties83. General penalty84. Establishment, merging or dissolution of grant aided institutions85. Form of document86. Establishment of committees87. Remuneration of committees88. Forfeited assets89. Conflict of interest90. Regulations91. Existing funds92. Transitional arrangements93. Repeal of Act No. 15 of 20044No. 1 of 2018 ] Public Finance ManagementAn Act to provide for an institutional and regulatoryf ramew ork f or Management of Public f unds; thestrengthening of accountability, oversight, managementand control of Public funds in the Public financialmanagement framework; responsibilities and fiduciaryduties of controlling officers and Controlling bodies;enhancement of cash Management systems to ensureef f icient and ef f ective utilisation of cash f or theGovernment; the processes for efficient production of theFinancial Report for the Republic.

8 The Management andcontrol of Public assets and stores; the repeal of the PublicFinance Act No. 15 of 2004; and matters connected with,or incidental, to, the foregoing.[11th April, 2018 ENACTED by the Parliament of Act may be cited as the Public Finance ManagementAct, 2018 , and shall come into operation on a date that the Ministermay appoint by statutory this Act, unless the context otherwise requires accountable document means a validated official documentthat has a monetary value and required to be accountedfor by an accounting officer; Accountant-General means a person appointed asAccountant-General to perform the function of head ofAccounting servicesunder section 8; Public Finance Management [No.]]

9 1 of 20185 Short titleandcommencementInterpretationEnactm entGOVERNMENT OF ZAMBIAACTNo. 1 of 2018 Date of Assent: 9th April, 2018 accounting officer means a person appointed as accountingofficer under section 13; advance means a recoverable sum of money issuedpursuant to section 38; aided project means any project which is partially financedthrough a loan, grant, donation or technical assistance andpartially financed from Public funds pursuant to section40; applicable accounting reporting framework means acommon set of accounting principles, standards andprocedures provided by the treasury for use in compilingfinancial statements involving Public monies.

10 Appointed agent means an institution engaged byGovernment to collect general revenues on its behalf andpublic funds; appropriation-in-aid means revenue assigned to andcollected by Public bodies which they are permitted by theTreasury to appropriate against expenditure approved byParliament; appropriate Minister in relation to a Public body means theMinister to whom responsibility for the ministry, Governmentinstitution, department, Government agency, state ownedenterprises or statutory corporation, as the case may be,is assigned; audit committee means a committee established undersection 19; Auditor-General means the Auditor-General appointed inaccordance with the Constitution; bank account means an account at a bank into whichmoneys are deposited and drawn; cash resources means cash in form of Bank notes or coinsor cash equivalents that include stocks, bonds, etc.