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Consolidated Fund - Ministry of Finance and The Public Service

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Consolidated Fund - Ministry of Finance and The Public Service

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    INSTRUCTION NO. 5

    CONSOLIDATED FUND

    5.1 Accountant General

The Accountant General shall be the custodian of the Consolidated Fund and shall perform such functions as are

    conferred upon him by this or any other enactment Part III Section 15(2) of the Act refers. The accounts of Government

    shall be kept in a manner designed to indicate that the intentions of Parliament as embodied in the Annual Estimates of

    Revenue and Expenditure and the Appropriation Act have been complied with:

(a) Section 24-24J Financial Administration and Audit (Amendment) Act 1992 sets out the accounts and financial

    statements which the various officers of Government accountable for the receipt and expenditure of public Monies

    must submit to the Minister and the Auditor General at the end of each financial year for presentation to Parliament;

(b) Accounts must therefore be kept by financial year and shall indicate the receipt and expenditure under the

    programmes, objects and sub-objects set out in the estimates of Revenue and Expenditure;

(c) All classes of account books and records shall be carefully preserved for the minimum periods prescribed after

    which, provided the Archives Committee is agreeable, approval may be sought from the Financial Secretary for

    their destruction.

5.2 Consolidated Fund Bank Account

A Principal Consolidated Fund into which subject to the provisions of any other Act shall be paid the revenues of

    Jamaica, has been established in accordance with the provisions of the Act.

    (a) The Act also provides that no sums shall be withdrawn from the Principal Consolidated Fund except

    under the authority of a warrant addressed to the Accountant-General by the Minister.

    (b) The Monies at credit of the Principal Consolidated Fund shall be kept in such banks as approved by

    the Minister in Accounts entitled "The Accountant General for the Consolidated Fund" also there shall

    be kept subsidiary Consolidated Fund Bank Accounts in such banks as approved by the Financial

    Secretary.

    (c) The Consolidated Fund account is operated by the Accountant General who shall authorize

    withdrawals from the account to meet expenditure provided for in the Estimates or otherwise provided

    for by law, subject to prior authentication by the Auditor General.

5.3 Lodgements to Consolidated Fund

The duty of collecting and accounting for revenues payable to the Principal Consolidated Fund and for actual

    payments into the Fund has been the responsibility of Principal Receivers of Revenue. Details of the revenues to

    be collected and the collection procedure have been set out in Instruction No. 6.

Principal Receivers of Revenue shall forward to the Accountant General as custodian of the Consolidated Fund and the

    Auditor General a monthly statement showing the amounts actually collected under each head of revenue, the lodgments

    to the Consolidated Fund and the balance for which they are responsible.

"Special Account (s)" are revolving accounts funded with an advance from a bank loan and used exclusively for full and

    prompt access to the Special Account to make eligible payments which are essential to cover the bank's share of eligible

    expenses in both local and foreign currencies.

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Each loan using this arrangement has a covenant governing the currency and location of the account and a schedule

    governing its operation.

The legal requirements for establishing a special account are agreed at negotiations set out in the loan agreement, and

    further explained in the disbursement letter.

5.4 Withdrawals from the Principal Consolidated Fund Account

    Expenditure met from the Consolidated Fund falls into two broad classes namely:

    (a) charges on revenue provided for by special Acts

    (b) voted services provided under the Appropriation Act.

Charges on revenue provided for by special Acts relate to public debt charges, certain salaries such as those of the

    Governor General, Auditor General and Judges, Contractor General, Ombudsman and certain other payments such as

    pensions. These provisions which are included under the heads of expenditure in the annual Estimates of Revenue and

    Expenditure are not included in the Appropriation Act but are listed in a schedule for payment by the Accountant

    General as they become due.

Voted services provided under the Appropriation Act are authorized by Parliament Annually and may only be changed

    by Supplementary Estimates Appropriation Act.

Departments are not required to make requisitions for issues from the Principal Consolidated Fund of sums appropriated

    to meet their requirements as withdrawals from the Principal Consolidated Fund will be authorized by the Accountant

    General.

The Accountant General functions within the general requirements of Section 10 of the Act Subsection (2).

"Orders so authenticated by the Auditor General shall be in the prescribed form and shall be the necessary authority to

    the Bank in which the Consolidated Fund Principal Bank Account is held to issue from the account the amount specified

    to be paid to such other account or bank as the said order may direct".

Withdrawals from the Consolidated Fund Principal Bank Account to meet the requirements of Ministries/Departments

    are paid into their respective Expenditure Clearing Accounts in such banks as authorized by the Financial Secretary.

5.5 Accounting for Withdrawals from the Consolidated Fund

The Accountant General will requisition withdrawals to be made from the Principal Consolidated Fund Account within

    the limits of the warrant issued by the Minister of Finance:

    (a) Cheques issued by ministries and departments within the limits approved by the Minister of Finance's

    Warrants will be honoured by such banks as designated by the Financial Secretary. The banks will

    charge these cheque against the respective ministry's department's expenditure Clearing Accounts",

    after monthly Bank Reconciliations with ministries and departments.

    (b) In making his requisitions for withdrawals the Accountant General will take into account the cash

    book balance in respect of expenditure clearing accounts for each ministry/department together with

    stated commitments.

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    (c) After withdrawals have been approved and made, advice will be made available to ministries and

    departments concerned. On receipt of such an advice the ministry or department should prepare a

    journal voucher debiting the Bank Account. The Accountant General will requisition the withdrawals

    to be made from the Principal Consolidated Fund Account as designated by the Financial Secretary,

    crediting the Warrants Account with the amount withdrawn.

    (d) The Accountant General shall keep an account for each ministry/department specified in the

    Appropriation Act to which the original provision and any supplementary provision which may be

    approved are credited

    (e) Voted services provided under the Appropriation Act are authorized by Parliament annually. To

    ensure that money is applied solely for the purpose for which it was approved, Parliament appropriates

    the total estimated expenditure by separate votes, which correspond to the heads of expenditure in the

    Estimates. The control of the Auditor General is designed to ensure that the Accountant General does

    not issue from the Consolidated Fund more than the Appropriation Act authorizes for the respective

    heads.

    (f) Departments are not required to make requisitions for issues from the Principal Consolidated Fund of

    sums appropriated to meet their requirements as withdrawals from the Principal Consolidated Fund

    will be authorized by the Accountant General.

    (g) When withdrawals from the Consolidated Fund have been authorized pursuant to Section 9 of the Act:

    "The Auditor General shall on the requisition of the Accountant General authenticate orders issued by

    the Accountant General for the withdrawal of sums from the Consolidated Fund Principal Bank

    Account, so long as the sums requisitioned for the various services do not in the aggregate exceed the

    respective sums authorized for those services".

5.5 Loans from Consolidated Fund

Loans from the Consolidated Fund are monies appropriated for specific purposes and institutions. These now constitute

    loans provided for:

    (a) Miscellaneous Revolving Loan Scheme

    (b) Institutional Loans

    (c) Semi-Revolving Training Fund

    (d) Loans to Civil Servants to purchase computers

    (e) Parastatal Bodies.

Applications for a loan from any of the above loan categories are processed and approved by the Establishment Division

    of the Ministry of Finance then submitted to the Accountant General for cheque payments together with a repayment

    schedule to be enforced by the Accountant General.

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