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  • The Government of the Republic of

    South Sudan

    Public Financial Management

    Manual for Local Governments

    Issued by the Ministry of Finance and Economic Planning

    and the Local Government Board

    May 2013

    (Version 1.1)

  • 1

    CONTENTS

    LIST OF ABBREVIATIONS ................................................................................................. 2

    GLOSSARY.............................................................................................................................. 3

    PREAMBLE ............................................................................................................................. 4

    1. FINANCIAL ADMINISTRATION ................................................................................ 5

    2. BUDGETING .................................................................................................................... 9

    3. RECEIPTS ...................................................................................................................... 25

    4. PROCUREMENT AND CONTRACTS MANAGEMENT ....................................... 31

    5. MANAGEMENT OF CASH AND COMMITMENTS ............................................... 51

    6. PAYMENTS .................................................................................................................... 57

    7. THE PAYROLL ............................................................................................................. 63

    8. FIXED ASSETS AND STORES MANAGEMENT .................................................... 66

    9. FINANCIAL REPORTING .......................................................................................... 68

    10. MONITORING, AUDIT AND SCRUTINY ............................................................ 74

    11. PFM GUIDELINES FOR SERVICE DELIVERY UNITS .................................... 78

    APPENDICES ........................................................................................................................ 81

    APPENDIX 1: FINANCIAL ADMINISTRATION ........................................................... 83

    APPENDIX 2: BUDGET FORMS ....................................................................................... 88

    APPENDIX 3: RECEIPTS FORMS .................................................................................. 102

    APPENDIX 4: PROCUREMENT FORMS ...................................................................... 114

    APPENDIX 5: CASH & COMMITMENT FORMS ........................................................ 163

    APPENDIX 6: PAYMENTS FORMS ................................................................................ 166

    APPENDIX 7: PAYROLL FORMS .................................................................................. 171

    APPENDIX 8: FIXED ASSETS & STORES MANAGEMENT FORMS ..................... 182

    APPENDIX 9: FINANCIAL REPORTING FORMATS ................................................. 183

    APPENDIX 10: 2012/13 CHART OF ACCOUNTS ......................................................... 190

    (Version 1.1: 220513)

  • 2

    LIST OF ABBREVIATIONS BCPC Boma Community Procurement Committee

    BDC Boma Development Committee

    CBB Community Based Budget

    CBS Cost Based Selection

    CBTF Capacity Building Trust Fund

    CDG County Development Grant

    COA Chart of Accounts

    CPC Community Procurement Committee

    CSO Civil Society Organisation

    EDP Electronic Data Processing

    FM Financial Management

    FY Financial Year

    GAAP Generally Accepted Accounting Principles

    GF General Fund

    GRN Goods Received Note

    GRSS Government of the Republic of Southern Sudan

    ICRSS Interim Constitution of the Republic of South Sudan

    ICT Information and Communication Technology

    IFAC International Financial Accounting Committee

    IFB Invitation for Bid

    IFMS Integrated Financial Management System

    IPSAS International Public Sector Accounting Standards

    IPSASB International Public Sector Accounting Standards Board

    ITB Invitation to Bid

    ITT Invitation to Tender

    PDG Payam Development Grant

    PFM Public Financial Management

    PFMS Public Financial Management System

    LG Local Government

    LGA Local Government Act (2009)

    LGB Local Government Board

    Dire Local Purchase Order

    LSSAI Local Services Support Aid Instrument

    MoFEP Ministry of Finance and Economic Planning

    OSR Own Source Revenue

    PDG Payam Development Grant

    PFM Public Financial Management

    PFMAA Public Finance Management and Accountability Act

    PIC Project Implementation Committee

    PO Payment Order

    QCBS Quality Cost Based Selection

    RFP Request for Proposals

    RSS Republic of South Sudan

    SSEPS South Sudan Electronic Payroll System

    SMoFEP State Ministry of Finance

    SMoLG State Ministry of Local Government

    SOW Statement of Works

    SSP South Sudan Pound

    TOR Terms of Reference

  • 3

    GLOSSARY Accounting

    basis

    The accrual or cash basis of accounting as defined in the accrual basis International Public

    Sector Accounting Standards and the Cash Basis International Public Sector Accounting

    Standard.

    Appropriation An authorization granted by a legal body (e.g. the County Legislative Council) to allocate

    funds for purposes specified by the legislature or similar authority.

    Approved

    budget

    The expenditure authority derived from laws, appropriation bills, government ordinances and

    other decisions related to the anticipated revenue or receipts for the budgetary period

    Assets Resources controlled by a Local Government (LG) as a result of past events and from which

    future economic benefits or service potential are expected to flow to the entity All assets

    recorded in the LG PFM systems are economic assets (i.e. have value) over which ownership

    rights are enforced by the LG and from which economic benefits may be derived through

    holding them or using them over a period of time.

    Block Council The coordinative unit of a city or municipal council comprised of a number of quarter

    councils, which shall exercise delegated powers within the council.

    Cash Cash comprises cash on hand, demand deposits at bank and cash equivalents.

    Cash basis of

    accounting

    A basis of accounting that recognizes transactions and other events only when cash is

    received or paid.

    Cash flow An increase or decrease in cash resulting from transactions/operations of the LG i.e. cash

    flows is inflows and outflows of cash.

    Chief

    administrator

    The head administrative officer in a county, city, municipal or town council.

    Council Refers to County, City, Municipal or Town Council.

    Expense Decreases in economic benefits or service potential during the reporting period in the form of

    outflows or consumption of assets or incurrence of liabilities that result in decreases in net

    assets/equity.

    Fiduciary risk

    The risk that monies belonging to the LG are not used for the intended purposes; do not

    achieve value for money; and/or are not properly accounted for. The realisation of fiduciary

    risk can be due to a variety of factors, including lack of capacity, competency or knowledge;

    bureaucratic inefficiency; and/or active corruption.

    Financial

    accounting

    The classification and recording of monetary transactions of a LG in accordance with

    established concepts, accounting standards and legal requirements and presentation of a view

    of the effect of those transactions during and at the end of a financial year.

    Fixed asset Any asset, tangible or intangible, acquired for retention by the LG for the purpose of

    providing a service either to the LG administration itself or to the community

    Grants Assistance by government, the state or other organisations to a LG in form of cash or transfer

    of assets in return for compliance with certain conditions relating to the operations of the LG

    Head of

    finance

    The officer in charge of the finance section in a local government

    IPSAS IPSAS is an abbreviation for an International Public Sector Accounting Standard which is any

    of the accounting standards issued by the IFAC

    Local

    Government

    County, City, Municipal or Town Council.

    Petty cash A fund comprising a small amount of money held at hand within a LG specifically for making

    cash payments for small expenses when issuance of a formal voucher or cheque is not cost

    effective. It is replenished whenever it is used up

    Regulatory

    framework

    Legislation, accounting standards, financial regulations and guidelines issued by the central

    and state government, all of which govern the preparation of County financial statements

    Revenue The gross inflow of economic benefits or service potential during the reporting period when

    those inflows result in an increase in net assets/equity of a LG.

  • 4

    PREAMBLE

    The purpose of the Public Financial Management (PFM) Manual is to ensure that the Local

    Government finance function provides efficient, fast, accurate and complete financial information to

    the local government management team and to all other stakeholders on financial matters for proper

    direction and control of local governments.

    The Manual will e