To support the Government’s goal to strengthen public financial management, the Government will amend the Financial Administration and Audit Act, 2010 (FAA) to require that all Government authorities, companies, and corporations that receive more than 50 percent of their operating budget from the Central Government, produce and submit monthly and quarterly financials.
These reports are to be submitted within 30 days of the reporting period. Should entities fail to submit, the Minister will have the right to withhold any subventions to the non-compliant entity. This amendment will not only allow for a more programmatic approach to Government budgeting, but will also aid in the cost rationalization project currently being conducted on SOEs.
Similarly, the Government will amend the FAA to allow all financial warrants (the financial instruments the Government uses to pay vendors) to be endorsed or approved electronically. This amendment supports the Government’s overall push for digitization, particularly within the new norm set by COVID-19.
Right now, there are dozens of warrants prepared every month on paper that often have to be navigated through Government agencies and then the Ministry of Finance. These warrants also required the physical signature of up to three senior Government officials to process.
The amendments regarding financial warrants will allow the warrants and the workflow to move online, with approvals to be made digitally. This amendment will also help to increase the ease of doing business, as the time associated with approving financial warrants will be less, thereby making the payment processes and settling of Government bills more convenient and efficient.
DOWNLOAD THE LEGISLATIONFinancial Administration and Audit (Amendment) Bill, 2020