Question Tag: Covered Entity

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  • 3 Marks

PSAF – Nov 2019 – L2 – Q5c – The context of public financial management

This question asks for the conditions that must be met by a Principal Spending Officer before a payment is made by a covered entity.

c) State THREE (3) conditions that must be met by a Principal Spending Officer before payment is made by a covered entity.
(3 marks)

A principal spending officer makes payment only when:

  • The payment has been budgeted for and approved by Parliament.
  • Warrants have been given by the Minister of Finance.
  • Valid commitments entered for the expenditure in the GIFMIS.
  • Certificate of completion of work is issued by the principal spending officer.
  • When valid Store receipt Advice (SRA) is issued from the Store.

(1 mark for 3 points = 3 marks)

  • 2 Marks

PSAF – May 2020 – L1 – Q1c – The context of public financial management

Define what constitutes a covered entity in Public Sector Accounting and Finance.

Explain what a covered entity is in Public Sector Accounting and Finance.

The PFM Act 2016 defines a covered entity to mean:

  • Executive, Legislature, and Judiciary;
  • Constitutional bodies;
  • Ministries, Departments, Agencies, and local government authorities;
  • The public service; autonomous agencies; and
  • Statutory bodies.
  • 10 Marks

PSAF – May 2018 – L2 – Q2a – The context of public financial management

Define a Covered Entity, Public Funds, and identify sources for the Sinking Fund under the PFM Act 2016.

The Public Financial Management (PFM) Act 2016, Act 921 applies to a covered entity and a public officer responsible for receiving, using, or managing public funds. The PFM Act, Act 921 provides for the creation of a sinking fund by the Minister to be used to redeem specific debt obligations of the Government.

Required:
i) What is “a Covered Entity” as defined by the PFM Act 2016, Act 921? (3 marks)

ii) What is “Public Funds” as defined by the PFM Act 2016, Act 921? (2 marks)

iii) Identify FIVE sources of money for the sinking fund. (5 marks)

i) The PFM Act 2016 defines a covered entity to mean:

  • Executive, Legislature, and Judiciary;
  • Constitutional bodies;
  • Ministries, Departments, Agencies, and local government authorities;
  • The public service, autonomous agencies;
  • Statutory bodies.

(3 marks maximum)

ii) The PFM Act, consistent with the 1992 Constitution, defines public funds as:

  • The Consolidated Fund, the Contingency Fund, and any other fund established by or under an Act of Parliament.

(2 marks maximum)

iii) Under the PFM Act, the following are the sources of money for the sinking fund:

  • Periodic contributions of specified amounts determined by the Minister as part of the annual budget.
  • Repayment inflows of money on-lent by the Ministry to covered entities, state-owned enterprises, and public corporations.
  • Moneys that accrue to the Fund from the investment of moneys of the Fund.
  • Moneys borrowed or raised from capital markets for the purpose of redemption of existing debts.
  • Moneys approved by Parliament for debt repayment under subsection (4) of section 23 of the Petroleum Revenue Management Act 2011 (Act 815).
  • Any other moneys that the Minister, with the approval of Parliament, determines to be paid into the Fund.

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