PRESENTATIONS ON: -

2013 NATIONAL BUDGET CASH FLOW MANAGEMENT, DISBURSEMENTS & ROLE OF FINANCIAL AUDITORS TO STATE MINISTERS, GOVERNORS, DEPARTMENTAL HEADS AND

PROVINCIAL ADMINISTRATORS

GATEWAY HOTEL DATE: 4TH FEBRUARY 2013

HON. JAMES MARAPE, MPMINISTER FOR FINANCE

GoPNG DEFICIT BUDGET

PROVINCIAL AND RURAL DEVEPMT K1.5B

2013 NATIONAL BUDGET A DEFICIT OF K2.6B

FUND RAISING1. Domestic Market k1.6b2. Off shore Market k1.0b

RECURRENT AND OTHER DEVPMT K 8.9B

GoPNG TOTAL BUDGET K13.0 BILLION

DISBURSEMENTS OF PUBLIC FUNDS

SYSTEM AND PROCEDURES

1. VISION 2050, NSP, MTDS

2. AGENCY CORPORATE PLANS

3. SUBMISSION OF ANNUAL MANAGEMENT PLAN WITH CASH FLOW STMT

4. PUBLIC DEBTS COMMITTEE [PDC] ASSESS CASH LIQUIDITY POSITION

5. RELEASE OF WARRANTS BY TREASURY

6. FINANCE REMIT CASH TO AGENCIES, PROV. & LOCAL LEVEL GOVERNMENTS

7. FUND ACCOUNTING THRU PGAS SYSTEM BY AGENCIES

8. FINANCE SHALL ISSUE CHART OF ACCOUNTS FOR PSIP, DSIP, & LLGSIP

9. ACTIVITY REPORTING SUBMISSION BY DEPT’AL HEADS TO CACC

10. JOINT MONITORING AND INSPECTIONS BY PLANNING, DIRD AND FINANCE

11. COMPLIANCE, NON COMPLIANCE AND PUNITIVE MEASURES.

DISBURSEMENTS OF PUBLIC FUNDS [Cont]

PROCUMENT THRESHOLD AMENDMENTS

1. DISTRICTS AND LOCAL LEVEL GOVERNMENTS

JDP & BPC : K300, 000 –K500, 000

2. PROVINCIAL GOVERMENTS

PSTB : K3.0M – K5.0M

3. NATIONAL GOVERNMENT

CSTB: K10.0M

4. NATIONAL EXECUTIVE COUNCIL

K10.0M AND ABOVE

COMPLIANCE ON USE OF PUBLIC FUNDS

1. PF[M]A SECTION 3 – MINISTER’S OVER ARCHING POWERS

i. SUPERVISION OF THE FINANCES OF THE STATEii. SUPERVISION OF FINANCES OF PUBLIC BODIESiii. BUDGET IMPLEMENTATION RESPONSIBILITY ON BEHALF OF

GOVERNMENT

2. PF[M]A SECTION 6 :-COMPLIANCE WITH LEGAL REQUIREMENTS OF PFMA.

iv. ALL ACCOUNTABLEOFFICERS ARE REQUIRED TO COMPLY WITH REQUIREMENTS FOR FINANCIAL CONTROL UNDER THE ACT .

3. FINANCE INSTRUCTION No.1/2013 :-COMPLIANCE TO PSIP, DSIP & LLGSIP GUIDE LINES & FINANCE INSTRUCTIONS.

4. REMAIN CONSISTENT WITH AGENCY CORPORATE PLAN, ANNUAL ACTIVITY PLAN, CASH FLOW STATEMENT, DISBURSEMENTS AND REPORTING REQUIREMENS.

FINANCE INSTRUCTION NO. 01/2013

CONTENTS :-

1. PROCUMENT PROCESSES

2. TECHNICAL EVALUATION [TEC] FOR AWARDING OF CONTRACTS

3. RELEASE OF PSIP, DSIP & LLGSIP FUNDS TO PROVINCES AND DISTRICTS

4. PAYMENT PROCEDURES ON ACCOUNTS PAYABLES

5. PROJECT MANAGEMENT FOR JPP&BPC AND JDP&BPC

6. CHART OF ACCOUNTS FOR PSIP, DSIP, LLGSIP

7. MONTHLY BANK RECONCILIATION REPORT

8. MONITORING AND REPORTING

9. AUDIT AND INSPECTION

10. TREATMENT OF UNSPEND FUNDS

11. PUNITIVE MEASURES ON NON-COMPLIANCES

NON COMPLIANCE

PFMA SECTION 6 :-ALL PUBLIC FUNDS DISBURSEMENTS MUST COMPLY TO PROCUMENT REQUIREMENTS OF PUBLIC FINANCE MANAGENMENT ACT AND ITS INSTRUCTIONS AND;

PFMA SECTION 102 :-PROVINCIAL ADMINISTRATORS, DISTRICT ADMINISTRATORS, DEPARTMENTLA HEADS AND ALL OTHER ACCOUNTABLE OFFICERS OF THE GOVERNMENT WILL BE HELD ACCOUNTABLE TO NON COMPLIANCE IN DISBURSEMENTS OF PUBLIC FUNDS UNDER THEIR CUSTODIES.

PUNITIVE MEASURES

CONSTITUTION SECTION 27 :-COMMUNITY LEADERS SHALL BE HELD ACCOUNTABLE UNDER THE LEADERSHIP CODE OF THE CONSTITUTION FOR THE FOLLOWING RERASONS;

1. CONFLICT OF INTERESTS IN DEMEENING HIS OFFICE OR POSITION, USING THE OFFICE FOR HIS PERSONAL GAINS.

2. FURTHER PROVISIONS CAN BE FOUND UNDER SECTION 28 UNDER WHICH THE OMBUDSMAN MAY INVESTIGATE THE LEADER OR;

3. AN INVESTIGATION BY A TRIBINAL OR PROSECUTION UNDER SECTION 29 FOR MISCONDUCT IN OFFICE.

PF[M]A SECTION 102 :-SECRETARY FOR FINANCE, DEPARTMENTAL HEADS AND PROVINCIAL ADMINISTRATORS SHALL ALSO BE HELD ACCOUNTABLE WITH PUBLIC SERVICE MANAGEMENT ACT AND PUBLIC FINANCE MANAGEMENT ACT.

1. ANY OF THE ABOVE WHERE APPROPRIATE MAY SURCHARGE OFFENDING OFFCERS OR IMPOSE CERTAIN FINES AS STIPULATED IN THE ACT;

2. OR A DISCIPLINE UNDER PUBLIC SERVICE MANAGEMENT ACT FOR FAILURE TO PERFORM AS REQUIRED FOR THE POSITION.

PF[M]A SECTION 39: SUPPLY WORKS CONTRACTS OR WORKS CONTRACT SHALL BE TERMINATED, INVESTIGATED AND CONTRACTORS BLACK LISTED FOR POOR WORKMANSHIP FOR FURTHER CONTRACT WITH THE STATE.

POLICY PROGRAMS AND AMENDMENTS

FINANCE MINISTRY 3 IMPACT PROJECTS FOR 2013-2016;

1. FINANCE FRAMEWORK REVIEWS AND AMENDMENTS ON PF[M]A.

2. FINANCE INFRASTRUCTURE TO 89 DISTRICTS;i. COMPLETED 57 DISTTRICT TREASURIESii. 20 DISTRICT TREASURIES YET TO BE CONSTRUCTEDiii. 9 TO BE COMMISSIONED THIS YEAR 2013.

3. FINANCE CLOUDi. INTEGRATED FINANCIAL MANAGEMENT SYSTEM [IFMS]ii. PGAS ENHANCEMENT TO AGENCIES, PROV. AND DISTRICTS.

THE END

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