Public Finance Management Act 2001 - Government Of Samoa

8Public Finance Management Act 2001payment in the nature of reimbursement for expensesincurred;“public body” has the meaning in section 2 of the PublicBodies (Performance and Accountability) Act2001;“public debt” means all liabilities of the State; but doesnot include liability where the State is trustee foranother person, or the liabilities of any publicbody;“public interest” means something that is to theadvantage, direct or indirect, of the people ofSamoa;“public money” means all money other than trust moneyreceived by the Government, including allrevenues, grants, loans and other monies, and allbonds, debentures, and any other securitiesreceived by, or on account of, or payable to, orbelonging to, or deposited with the Government orany department by:(a) an officer of the Government in his or hercapacity as such; or(b) a person on behalf of the Government;“public property” means real or personal property thatbelongs to or is owned or held by the State;“public securities” means securities representing theinvestment, or securing the payment, of any publicmoney;“records”:(a) means information recorded and kept by anymeans; and(b) and includes—(i) all books, accounts, rolls, files, vouchers,receipts, cheques, records, registers,papers, documents, photographic plates,microfilms, photostatic negatives, prints,tapes, disks, computer reels, diskettes andhard disk, perforated rolls, and any othertype of written, printed, copied, magnetictape, electronic data record or otherinformation whatsoever; and(ii) all papers and other records relating toaccounting operations and practice orinformation recorded and kept by anymeans;“Responsible Minister” means:

Public Finance Management Act 20019(a) for a department, the Minister for the time beingappointed to be Minister for that departmentand thus responsible for the performance(financial or otherwise) of the department; and(b) for an office of the Legislative Assembly, theSpeaker; and(c) for a public body, the Minister responsible forthat public body;“revenue” means all non-repayable Governmentreceipts;“Shareholding Ministers”, for public bodies, means theMinister of Finance and the Responsible Ministerand, where the Minister of Finance is also theResponsible Minister, a Minister who is approvedby Cabinet to be a Shareholding Minister for thepurpose;“special purpose account” means a special purposeaccount established under section 56(Establishment of special purpose accounts);“Special Purpose Fund” means the Special Purpose Fundestablished under section 55 (Establishment ofSpecial Purpose Fund);“State” means the Independent State of Samoa,established by the Constitution;“statutory expenditure” means:(a) expenditure which is not subject to the vote of theLegislative Assembly; and(b) expenditure charged on the Treasury Fund underthe Constitution or charged on the TreasuryFund or any other public fund or account byany other Act in which it is expressly stated tobe statutory expenditure;“sub-output” means a category, part or division of anoutput;“subsidiary” has the same meaning as in section 2 of theCompanies Act;“Tenders Board” means the Government Tenders Boardestablished by section 88 (Government TendersBoard);“third party outputs” means grants, subsidies or othernon-repayable payments to persons (other thandepartments) who provide outputs on behalf ofGovernment;“this Act” means the provisions of this Act including theSchedules, and any regulations, Treasury

10Public Finance Management Act 2001Instructions or Operating Manuals madethereunder;“trading revenue” means cash receipts derived from theproduction of a department’s outputs andreceived from another department or person; butdoes not include:(a) monetary transfers between outputs or suboutputs of the same department; or(b) revenue derived from taxation, fees, licencesor grants; or(c) income provided by appropriation;“transactions on behalf of the State” means the categoriesof appropriations listed in section 25(2)(c), (d)and (e) (Appropriation required);“Treasury” means Treasury established under section 3(Treasury);“Treasury Instructions” means Treasury Instructionsissued under section 127 (Treasury Instructionsand Operating Manuals);“trust account” means a trust account established undersection 61 (Establishment of Trust Fund and trustaccounts);“Trust Fund” means the Trust Fund established undersection 61 (Establishment of Trust Fund and trustaccounts);“unclaimed money” means unclaimed money to whichPart 10 (Unclaimed money) applies;“vote” means a sum of money authorised to be spentunder section 25(2) (Appropriation required).(2) If a word or phrase is underlined, the word or phraseso underlined is a defined term under subsection (1).(3) If there is a cross-reference to an Article, Part, sectionor Schedule, the words in the brackets following that crossreference is the title heading of the cross-referenced Article,Part, section or Schedule.PART 2RESPONSIBILITY FOR FINANCIALMANAGEMENT3. Treasury – There is established a department calledTreasury.

Public Finance Management Act 2001114. General responsibilities of the Minister – (1) TheMinister is responsible to Cabinet and to the LegislativeAssembly for Treasury and for:(a) the preparation and presentation of financial andeconomic policy in accordance with this Act;and(b) ensuring adequate guidelines exist for the use ofpublic money and public property; and(c) the compliance by Treasury with itsresponsibilities under this Act.(2) When submitting the Estimates to Cabinet theMinister shall provide:(a) detailed assessment of the economic andfinancial impact of the receipts andexpenditure estimates in relation to the budgetstatement required under section 18 (Budgetaddress); and(b) where appropriate, details of options to changethe Estimates including details of possiblechanges in Government programme policyobjectives or outputs to make them compatiblewith the budget address.5. Specific responsibilities of the Minister – TheMinister is responsible for:(a) the preparation of plans for the economicdevelopment of Samoa, and for the financialmanagement of on-going operationalactivities, both annually and for such longerperiods as the Minister considers appropriate,specifying outcomes and outputs to beachieved, and taking into account the views ofsuch committees of Cabinet, of the PublicService and the private sector of the economyas seem to be appropriate; and(b) coordination of the activities of all sectors,departments, public bodies, districts, villagesand persons so far as they are engaged inimplementingindividualdevelopmentprojects and other aspects of economic plansapproved by the Legislative Assembly; and(c) periodic appraisal of the efficiency with whichindividual projects and other aspects ofeconomic plans approved by the Legislative

12Public Finance Management Act 2001(d)(e)(f)(g)(h)Assembly, as well as on-going activities, arebeing implemented; andpublication, by whatever means the Ministerconsiders appropriate, of information as toeconomic plans and projects approved by theLegislative Assembly, and the progress madein their implementation; andthe formulation of the annual Estimates and suchother Estimates as may be necessary andoverseeing their implementation on behalf ofthe Government; andthe supervision of the finances, assets andliabilities of the State so as to ensure that a fullaccounting is made to the LegislativeAssembly of all transactions involving publicmonies or the disposition of public property;andthe supervision of the finances of public bodies;andplanning, management and utilisation ofdevelopment cooperation activities andresources.6. Minister may delegate powers – (1) Subject tosubsection (2), the Minister may in writing either generally orparticularly, delegate to the Financial Secretary as theMinister thinks fit all or any of the powers or dutiesexercisable under this or any other Act, including any powersdelegated to the Minister under any other Act, including thispresent power of delegation.(2) The Minister shall not delegate any power or dutyunder subsection (1) where in this Act or any other Act orregulation, this or other Act or regulation, as the case may be,prohibits the power of delegation.7. General responsibilities of Responsible Ministers –(1) A Responsible Minister is responsible to Cabinet and theLegislative Assembly for ensuring that the head of adepartment coming within the area of the ResponsibleMinister’s assigned responsibilities complies with the head ofdepartment responsibilities under this Act for the efficient andcost-effective financial management of all public moneyunder the head of department’s control.(2) Each Responsible Minister shall ensure that allestimates of receipts and expenditure provided from entities

Public Finance Management Act 200113that comprise the Responsible Minister’s assignedresponsibilities are realistic, practicable and fully consistentwith the Government’s budget statement published undersection 18 (Budget address).(3) Each Responsible Minister shall ensure that thefinancial management of the public money and resourceswhich are allocated to the Minister’s assigned responsibilitiesin an Appropriation Act achieves the objectives and outputsapproved for each vote.(4) A Responsible Minister shall ensure compliance withall reporting responsibilities coming within his or herassigned area of responsibility under this Act.(5) The responsibilities of a Responsible Minister underthis section are to be interpreted in accordance with theresponsibility of each Responsible Minister to the PrimeMinister and Cabinet under the Constitution.(6) Nothing in this section is to be interpreted or appliedso as to make a Responsible Minister personally liable for anyact or omission in the carrying out of any duty, power orobligation under this Act save for any offence provided forunder this Act.8. The Financial Secretary – (1) There shall beappointed a Financial Secretary who is the administrativehead of Treasury, with responsibility for administration ofthis Act, and who is the principal financial adviser to theGovernment.(2) The Financial Secretary shall report and is responsibleto the Minister for compliance by Treasury with itsobligations under this Act.9. Specific responsibilities of the Financial Secretary– In addition to the responsibilities of heads of departmentsset out in section 13 (Responsibilities of heads ofdepartments) (with the necessary modifications to paragraphs(n) and (o) in subsection (1) of that section), the FinancialSecretary is responsible for:(a) providing financial and economic advice andpreparing the Estimates, supplementaryestimates and periodic and annual financialstatements for Government; and(b) setting accounting policies, practices andprocedures for all financial managementpractices and information required by this Act

14Public Finance Management Act 2001(c)(d)(e)(f)in accordance with generally acceptedaccounting principles and practice; andoperating the accounting systems forGovernment; andcoordinating and supervising and, whereappropriate, effecting the purchase, receipt,custody, distribution, use, disposal, and interdepartmental transfer of public property; andcoordinating and monitoring systems of financialmanagement, internal control and reporting inall Government departments; andexercising and maintaining control and directionof all matters relating to the financialmanagement of the State in accordance withGovernment policy as communicated by theMinister.10. Financial Secretary may delegate powers – (1) TheFinancial Secretary may in writing either generally orparticularly, delegate to such officer or officers of Treasuryor other departments as he or she thinks fit all or any of thepowers or duties exercisable under this or any other Act,including the powers delegated under this or any other Act,including this present power of delegation.(2) The Financial Secretary shall not delegate a power orduty under subsection (1) where in this Act or any other Actor regulation, the Act or regulation, as the case may be,prohibits the power of delegation.11. Deputy Financial Secretaries – (1) There may beappointed Deputy Financial Secretaries who shall exercisesuch delegated powers, duties and functions as the FinancialSecretary may determine.(2) A Deputy Financial Secretary may be appointed to actin the position of Financial Secretary:(a) by the Minister, in the case of a vacancy in theoffice (whether by reason of death, resignationor otherwise), for so long as any such vacancyoccurs; or(b) by the Financial Secretary, in the case of theabsence of the Financial Secretary from dutyor absence from Samoa for so long as suchabsence continues.

Public Finance Management Act 20011512. Appointment of other officers and employees –There may be appointed under the Public Service Act 2004and within the funding provided in an Appropriation Act,such other officers of Treasury as may be necessary to achieveits designated outputs.13. Responsibilities of heads of departments – (1)Subject to the Constitution and this Act and in so far as eachhead of department has the authority and legal capacity to doso each head of department is responsible to his or herResponsible Minister for putting systems in place designed toensure that in relation to his or her department:(a) advice on financial management is provided tothe Responsible Minister; and(b) all accounts and records relating to the functionsand operations of the department are properlymaintained; and(c) all necessary precautions are taken to safeguardthe collection and custody of public monies;and(d) all expenditure, including salaries and otherpersonal emoluments, is properly authorisedand applied to the purposes for which it isappropriated; and(e) there is no over-expenditure or over-commitmentof funds and a review is undertaken eachmonth to ensure that there is no such overexpenditure or over-commitment; and(f) the collection of public monies is according toapproved plans and Estimates; and(g) all expenditure is incurred with due regard toeconomy, efficiency and effectiveness and theavoidance of waste; and(h) all necessary precautions are taken to safeguardpublic property; and(i) any tax, duty, fee or charge imposed bylegislation for which the department isresponsible is collected promptly and to thefullest extent; and(j) any tax, duty, fee or charge imposed bylegislation for which the department isresponsible is reviewed and reported on to theNational Revenue Board in the formatspecified in Treasury Instructions at least oncein each year in order to establish—

16Public Finance Management Act 2001(i) whether the level of such tax, duty,fee or charge is adequate; and(ii) whether such tax, duty, fee or chargeshould be varied and, if so, by what amount;and(k) any charge intended to be made under section 27(Charge for supply of goods or services) isfirst approved by the National Revenue Board;and(l) information required by the Public AccountsCommittee is submitted to that Committeeaccurately and promptly; and(m) estimates and forecasts in respect of collectionand expenditure of public monies are preparedin the format specified in TreasuryInstructions or Operating Manuals; and(n) after the first 6 months of each financial year andat such other times as required by the FinancialSecretary he or she submits reports, asspecified in Treasury Instructions, on themanagement of funds provided for theachievement of the Department’s outputs andthe collection of revenues; and(o) an effective system of internal control isdeveloped and maintained and, unless theFinancial Secretary approves otherwise incircumstances provided for in TreasuryInstructions, an effective internal auditfunction is developed and maintained; and(p) all accountable officers of the department areaware of their duties and responsibilities underthis Act and any other Acts for which thedepartment is responsible.(2) The responsibility of a head of department undersubsection (1) is not derogated or reduced by reason of adelegation of functions by him or her to another person.(3) Responsibilities other than those listed in subsection(1) may be conferred or imposed on a head of department bythis or any other Act or by other lawful process.(4) A head of department is liable to imposition ofsurcharge or levy of penalty for an offence under Part 15(Surcharge, offences and discipline).

Public Finance Management Act 20011713A. Responsibilities of public beneficial bodies andselected public trading bodies – (1) The chief executive (orhowsoever called) of a public body shall:(a) put in place a system to review any tax, duty, fee orcharge under the enactment for which the publicbody is responsible, at least once a year toestablish whether –(i) the level of the tax, duty, fee or charge isadequate; and(ii) the tax, duty, fee or charge be varied andif so, by what amount; and(b) prepare and submit a report of the review to theNational Revenue Board in the format specifiedin Treasury Instructions.(2) In this section, “public body” means the followingpublic bodies:(a) a public beneficial body listed in Part B of Schedule1 of the Public Bodies (Performance andAccountability) Act 2001; and(b) the following public trading bodies –(i) Land Transport Authority;(ii) Ports Authority;(iii) Public Trust Office;(iv) Samoa Water Authority;(v) any other public trading body approvedby Cabinet for the purposes of this section.14. Access to information and removal of authority todeal with public money etc. – (1) The Financial Secretaryhas power to obtain full and free access at all times to allaccounts and records of accountable officers that relate,directly or indirectly, to:(a) the collection, receipt, expenditure, issue or useof public money; and(b) the receipt, custody, disposal, issue or use ofpublic property, andto inspect and inquire into and call for any information arisingfrom those accounts and records.(2) In the exercise of his or her powers under this section,the Financial Secretary may appoint a person by writing underhis or her hand to inquire into and report on any matter ormatters specified in the instrument of appointment.(3) If :(a) as a result of any information coming to theattention of the Financial S

"financial statements" means the financial statements required under Part 14 (Financial reporting) and Schedule 5 (Form and content of financial statements); "financial year" means: (a) for the Government and its financial statements, a period of 12 months ending on 30 June; and (b) for a public body, the body's annual accounting