- 4 Marks
Question
In Ghana, the government has enacted the Financial Administration Act, 2003 and the Financial Administration Regulations (L.I. 1802) to ensure that public funds and resources are properly safeguarded and are used economically, efficiently, effectively and with due propriety.
Required:
Identify TWO essential provisions of the Financial Administration Act and Regulations meant to protect public funds and safeguard public resources and property. (4 marks)
Answer
The Act and Regulations:
i) Establish the Consolidated Fund, the central mechanism for the control of public finances, outlining the principle by which funds are collected into the consolidated fund, kept, and disbursed.
ii) Establish the modalities for the collection of revenue.
iii) Establish budgetary control over public finances related to revenue and expenditure and to receipts and payments. For example, it outlines government borrowing and lending, transactions in trust moneys, and any other transactions occurring within the Consolidated Fund.
iv) Describe the conditions under which appropriations are made. Government expenditure is subject to annual legislative appropriation.
v) Establish the mechanism by which the Controller and Accountant General ensures that payments from appropriations are lawfully made. No payment must be made except in a manner provided by law. Specific enactments may give continuing authority for payments such as charged expenditure.
vi) Establish principles under which Government Accounts are managed and kept, the preparation of government accounts, and the reporting of final accounts of government.
vii) Describe the management and accountability of Government stores.
viii) Outlines the establishment and operations of revolving funds.
(2 marks for 2 points = 4 marks)
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