EXPENDITURE-CLASSIFICATION AND CONTROL

Officers controlling expenditure

501 - All disbursements of public money shall be made by the Accountant-General on the authority of the appropriate Warrant issued to him and by Accounting Officers entrusted with the expenditure of public money falling within the vote of charge of their Ministry or Extra-Ministerial Department.

The officers charged with the control of votes will be specified in the Annual Estimates together with the votes for which they are responsible. The provisions of Regulations 504 notwithstanding, the ultimate responsibility to the Executive Council for the control of votes rest with the Accounting Officer at all times. Any officer, however, making, allowing or directing any disbursement without proper authority may be personally responsible for the amount and any officer whose duties require him to render accounts may similarly be held responsible for any inaccuracies in these accounts.

Departmental Vote Book

502 - It is the duty of every officer controlling a vote to watch the expenditure of his Ministry or Extra-Ministerial Department with reference to the amounts provided in the Estimates and he will keep a vote Book posted up-to-date in such form as will clearly show in respect of each sub-head.

1) In the space provided at the top of the Vote Book for:

a) The amount of any additional provision by supplementary or other Warrants quoting the Warrant Number:

b) The amount of any additional provision by supplementary or other Warrants quoting the Warrant Number;

c) Any reduction of the provision by virement to another sub-head or item quoting the Warrant Number. Any such reduction should be shown in red ink.

2) In the columns provided in the body for the Vote Book:

d) Expenditure incurred;

e) Any further known liabilities under the sub-head for the year;

f) The balance available.

It is the duty of the officer controlling the vote, or such other officer acting under his instructions, to investigate fully, without delay, any payments or charge appearing in the schedules submitted by the Accountant-General which do not appear in the Vote Book, with a particular view to the detection of fraudulent payments.

Entries in Book

503-The gross amount, i.e. the actual charge to the vote, of every expenditure voucher will be entered in the Vote Book. Similarly all liabilities and commitments will be entered as soon as they are known or incurred, e.g. indents and requisitions for stores, transport warrants. etc. Adjustments should be made when actual costs are known. Sub-Heads affected by supplementary or other warrants should be adjusted in the Vote Book by addition to, or deduction from the amount hitherto shown as provided, as the case may be.

Delegation of Responsibility for Expenditure control

504 - An Accounting Officer, at his discretion, may delegate the day to-day control of expenditure to a subordinate officer by the direct delegation of the whole vote by formal letter or written instruction (Regulation 501). The delegated officer will then keep the Vote Book in the manner described in Regulation 502. A delegated Officer may not sub-delegate responsibility for a vote, wholly or partly, without the knowledge and approval of the officer controlling the Vote.

Authority Incur Expenditure

505- When it is necessary for an Accounting Officer to authorize other officers to incur expenditure and sign vouchers on his behalf, he will do so by means of Authority to incur Expenditure backed with appropriate cash addressed to the officer concerned with copies to the Sub-Accounting Officer at the paying station or office. The Sub-Accounting Officer shall maintain an appropriate record and ensure that the amount on the AIE is not exceeded. The officer controlling the vote will enter the amount of the AIE in his Vote Book as a commitment. The officer to whom the AIE has been issued will also keep a Vote Book and will submit to the officer controlling the vote at the end of every month, a return of expenditure, liabilities incurred and the balance available together with copies of the vouchers. The expenditure so incurred will be reconciled by the officer controlling the vote in accordance with Regulation 503. In the end, all the unexpended funds should be forwarded to the issuing authority.

Issue Authority to incur Expenditure

506-When an Authority to Incur Expenditure is issued by one Ministry or Department to another, it will be the duty of the responsible officer in the receiving Ministry or Department to keep a Vote Book and send a monthly return to the issuing Ministry/Department showing expenditure, liabilities incurred and balance available. The monthly returns must be supported by copies of the vouchers.

Vouchers to be stamped "Entered in Vote Book"

507-At the time of entry in the Vote Book whether as a payment or a liability, all vouchers, indents, transport warrants, etc. should be stamped "Entered in Vote Book" and initialled by the officer responsible for maintaining the Vote Book. Officers empowered to incur expenditure must ensure by adding their initials against the relative entry that the requisite Vote Book entries are made before the payments are authorized by their signatures to the payments vouchers.

Notification of Expenditure to Departments

508-As soon as possible after the end of each month the Accountant-General will furnish Accounting Officer with the schedules of all payments and adjustments, together with copies of the vouchers and warrants charged to their Vote Books, or monthly returns of expenditure, and any discrepancies which such examination may disclose will immediately be brought to the notice of the Accountant General (see Chapter 12 for procedure for self accounting units).

Suspicion of Fraud

509- In any case where a serious irregularity in a voucher is established or suspected the vote controlling officer will immediately investigate and report the circumstances, inform the police if fraud is suspected, and take such other action as is necessary to remedy the error or to prevent re-occurrence. When a loss of public fund is revealed, action will be taken in accordance with chapter 15. In the event of any authorized payment being made in consequence of an incorrect certificate or entry on a voucher the certifying officer or the sub-accounting officer a provided under Financial Regulation 519 will be held responsible and the amount may be surcharged against him.

Responsibility for signing Certificate or Vouchers

510-The signature of the officer controlling a vote, or an officer signing for him, certifies to the accuracy of every detail on the voucher. He will, therefore, be held responsible that the services specified have been duly performed, that the prices charged are either according to contracts or approved scales, or fair and reasonable according to current local rates, that authority has been obtained as quoted, that the computations and costing have been verified and are arithmetically correct, and that the persons named in the vouchers are those entitled to receive payment, and that stores purchased have been duly taken on charge or correctly issued for immediate consumption if they are expendable.

Officers authorized to sign vouchers & specimen signature

511 -Officers authorized to sign payment vouchers will be of the rank of senior Executive Officer or above, Specimen signature together with a list of relevant votes chargeable, will be furnished by Accounting officers to the Auditor General and the appropriate Paying Office.

Contracts payment for

512-When supplies are furnishing or work done under agreement or contract, there will be attached to the voucher a certificate that the payments are in accordance with terms of the contract agreement that as regards supplies, the articles have been received and, in the case of work, that is has been properly done. In the case of a payment on account, no money will bw claimed that the cost of the work certified to have been performed. When a deduction is made from the amount payable on a contract in respect of a penalty or fine, the net sum only will be paid and charged to the vote, while the deduction shall be credited to the appropriate revenue head.

Authorities: lapse of

513-The authorities conveyed by warrants of the classes, unless specifically otherwise stated, lapses on the last day of the financial year in respect of which they are issued, and no payments may be made after that date except under the authority of a fresh Warrant or warrants see FR 514 on date of charge in accounts governed by date of payment.

Date of charge in accounts governed to date of payment

514- The date of payment governs the date of the record of the charge in the accounts, except as otherwise specifically authorized by the Accountant General. In no circumstances may payments be made before they are due for the purpose of utilizing an anticipated saving on a sub-head, nor may the unexpended portion of any sub-head be drawn for the purpose of setting it in reserve to meet impending payments, or be carried to a deposit or suspense account. On the other hand, expenditure properly chargeable to the account of a given year must, as far as possible, be met within the year, and must not be deferred or placed in suspense for the purpose of avoiding an excess on the amount provided in the Estimates. Unallocated stores may not be drawn for use before they are required in order to utilize provision in the Estimates which would otherwise lapse at the end of the financial year.

Economy

515-The State Government requires all officers responsible for expenditure to exercise due economy. Money must not be spent merely because it has been voted.

Classification of Expenditure

516- Expenditure will be classified strictly in accordance with the Estimates, and votes must be supplied only to the purpose for which the money is provided. Expenditure incorrectly charged to a vote will be disallowed by the Accountant General.

Payments on behalf of self accounting units

517-All payments made under authority on behalf of self accounting Units by Accounting Officers of other units or Departments must be backed by cheques and cash and should be classified appropriately and not direct to the expenditure sub-head of the Estimates.

Expenditure: apportionment of

518 - Officers controlling votes and officer acting under their instructions should arrange as far as is practicable to spread expenditure evenly over the year. Officers controlling votes are solely liable for unauthorized expenditure in excess of the sum allocated.

Sub-Accounting Officer's responsibilities before making payments

519 - Before making any payment a Sub-Accounting Officer will satisfy himself so far as he is in a position to do so that:

(a) The expenditure has been authorized by Warrant and voucher correctly classified in accordance with the Estimates or Supplementary Estimates.

(b) The information furnished on the vouchers is correct in all particulars, the certificates on voucher completed where necessary and the vouchers signed by the appropriate officer.

(c) All proper deductions from salaries or pensions on account of contributions, repayment of advances, or other liabilities have been duly made.(see also Regulations 609 and 611).

Alteration in classification

520 - The classification of a voucher shall not be changed arbitrarily by a checking officer or Sub-Accounting Officer. An alteration to the classification of a voucher will only be effected by the signing officer who will amend his Vote Book accordingly.

Expenditure settlement within financial year.

521 - a) Officers controlling votes are responsible for ensuring that, as far as possible, payment for services rendered are settled within the financial year in which they were rendered. When necessary reminders should be sent to private parties to forward their claims without delay. Neglect to do this will not prejudice the private party but the Officer who has neglected to press for claims will be held responsible. Officers controlling votes must impress this necessity upon their subordinate officers. Where the validity of claim is beyond doubt, payment before the end of the year should not be held over because of imperfections in the vouchers which can be corrected after payment.

b) All instruments of commitments, indents, LPOs, Job Orders and signed contracts must be entered into the vote Book as liabilities. All such contracts should be embossed with the impression "Entered into Vote Book"