HEALTH SERVICE COMMISSION (GENERAL HOSPITAL LAGOS)

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1 HEALTH SERVICE COMMISSION (GENERAL HOSPITAL LAGOS) PRESENTS X-RAY of FINANCIAL REGULATIONS By RASUL TAIWO,Bsc,Msc,AMNIM,Cert.IFRS,ACA.

2 X-Ray of FINANCIAL REGULATIONS MODULE. 1 BY TRASULT Consult Int l (tci)

3 Presentation Outline Introduction Financial Authorities Financial Responsibilities Government Expenditures Offences & Penalties Questions & Comments

4 Objectives To Examine the General Overview of Financial Regulations. To highlight crucial areas of FR and their practical applications for Non Accountants. To discuss examinable areas for senior public servants. To address the Relevance & Implication of FR in contemporary Society.

5 Introduction FINANCIAL REGULATIONS are set of guidelines, principles, rules and procedures that govern the daily operation of government financial activities.

6 REGULATIONS! What & Why?

7 PURPOSES OF FINANCIAL REGULATIONS (FR). To ensure fairness and Transparency in the management of public fund. To ensure financial decision are correct and in public interest. To promote Standardization in the public sector. To specify Offences and Corresponding Purnishments. To guide the Actions and Decisions of Public Officers.

8 Objectives & Benefits of FR To Guide Actions & Decisions To Ensure Transparency of Transactions To promote Fairness

9 To ensure UNIFORMITY To Promote Accountability To SECURE Govt Funds & Properties

10 BENEFITS/MERITS/ADVANTAGE To prevent / reduce Fraud and Mismanagement. To promote public Accountability. To promote Uniformity of Financial procedures in the public sector. To Secure government Resources.

11 PROBLEMS /DISADVANTAGES PROBLEMS/DEMERITS/DISADVATAGEs It discourage personal initiatives. Its time consuming, slows down the processing of fund. Its requires regular review/amendment. It brings about administrative bureaucracy.

12 It results in too much procedures : bureaucracy excessive rules!

13 It s time consuming : wastage of time!

14 FINANCIAL AUTHORITIES These are documents or legal instruments that empowers and guide all public officers in carrying out government financial transactions. Examples of FINANCIAL AUTHORITIES are: The 1999 Constitution of the Federal Republic of Nigeria Annual Appropriation Act Supplementary Appropriation Act Warrants Issued by the Minister of Finance Treasury Circulars and Financial Circulars Official Gazette of the Government Financial Regulations Issued by the Minister of Finance Public Procurement Act 2007.e.t.c. AND OTHER ACTS

15 Authority = Power or right to do something

16 FINANCIAL RESPONSIBILITIES OF PUBLIC OFFICERS KEY OFFICERS = AAASRIO ACCOUNTANT GENERAL AUDITOR GENERAL ACCOUNTING OFFICER SUB-ACCOUNTING OFFICER REVENUE COLLECTOR IMPREST HOLDER OFFICER CONTROLLING EXPENDITURE

17 A G = Head of Govt Accounting services & Head of Treasury. Accountant to all MDAs, Executive, Judiciary & Legislature.

18 Auditors = Examine Accounts& write Report

19 CCOUNTING OFFICER Perm.Secs and Heads of MDAs who is in full control of,and responsible for the human, material and financial resources of the organisation. Responsibilities : Ensuring proper Accounting and budgetary Systems Safeguarding of Assets &Controlling of Expenditure Ensuring adherence to Financial & other regulations. Preparing Reports, Returns and attending to Queries. Carrying out other functions as directed by Authority.

20 Accounting Officer = P.S, M.D. The Officer that has full control over Men Money Materials Machines

21 SUB-ACCOUNTING OFFICER = HEAD OF ACCOUNTS Collection Safekeeping Disbursement Accounting for Money

22 GOVERNM,ENT REVENUE REVENUE: any form of income generated or received by an organisation. SOURCES OF GOVERNMENT REVENUE Taxes, Levies & Fines Rental Income & Royalties Grants, Donations and Loans Interests and Fees received Income from Sales/Disposal and Services

23 GOVERNMENT REVENUE BELOW THE LINE & ABOVE THE LINE BELOW THE LINE ACCOUNTS: An item of Revenue or Expenditure created &control by the AG whose amount cannot be reasonably ascertained as at the time of preparing the Budget. ABOVE THE LINE ACCOUNTS: An item of Revenue or Expenditure whose exact amount can be reasonably ascertained as at the time of Budget preparation.

24 Above = Known ; Below = Unknown

25 FUND ACCOUNTING What is a FUND : A separate fiscal &accounting entity in which resources are held governed by special regulation & established for specific purposes. Types of FUND General Fund / CRF Special Fund.e.g. Education Tax Fund Trust Fund.e.g. Petroleum Trust Fund Contigency Fund.e.g. Disaster relief funds. Self-Liquidating Fund

26 EXPENDITURE :Authorisation Costs or Expenses incurred by an organisation within a given period of time. Any Officer who expend public fund without proper approval does so at his own risk & will be held pecuniarily responsible for such action. No direct deductions from Revenue collected or Receipts. MDAs can only incur expenses on the authority of a WARRANT.

27 EXPENDITURE :Authorisation WARRANT : Is a Document issued and signed by the Minister/Commissioner of Finance authorising the AG to release fund as appropriated. Types of Warrant : Provisional General Warrant Annual Expenditure General Warrant Supplementary Expenditure General Warrant Statutory Expenditure Warrant Contingencies Expenditure General Warrant Virement Warrant : transfer of funds from one subhead to another

28 EXPENDITURE :Authorisation VOUCHERS : Is a Document prepared (on behalf of the Accounting Officer) to authorise the receipt or issue of fund or stores. TYPES OF VOUCHERS : Payment Vouchers: authorises the release of money.e.g. TF1 Reciept Vouchers.e.g. SRV which authorises the collection of stores. Adjustment Vouchers used in making amendment by way of transfer of funds from one

29 EXPENDITURE :Authorisation BUDGET : Is an estimate of Revenue and Expenditure for the coming financial year sent to the house of Assembly. TYPES OF BUDGET: Balanced Budget : Revenue = Expenditure Budget Supplus : Revenue > Expenditure Budget Deficit : Revenue < Expenditure METHODS OF BUDGET PREPARATION: Zero Based Budget : without considering the previous budget Incremental Budget : increasing previous year s budget Planning Programming Budgetary System

30 EXPENDITURE :Classification Recurrent Expenditure (personnel&overheads) Capital Expenditure Recurrent.e.g. Salaries, Fuel,Electricity, Utilities.e.t.c Capital.e.g. Constructions, Purchase of Vehicles, Heavy Equipments.e.t.c

31 Level of Approvals 3 APPROVING AUTHORITIES MEDICAL DIRECTOR PROCUREMENT COMMITTEE GOVERNING BOARD Gov.Board PROC. COMM M.D

32 Approval Limits CATEGORIES OF HOSPITAL UNITS MD PROCUREMENT BOARD Category A : 100, m Above 1m Category B : 50, Above 200 Category C : 50, Above 100

33 IMPRESTS all sums advanced to a public officer under the current estimate for which vouchers cannot be immediately presented to a sub-accounting officer TYPES: STANDING : An imprest that will be reimbursed periodically SPECIAL : Imprest granted for a particular purpose and must be fully retired after achiving its purpose(s). Imprests are different from Personal advances!

34 OFFENCES & SANCTIONS ON FR (Subject to the discretion of the Authority) Dismissal & Prosecution : Inflation of Contracts, Variation of Contracts, Payments without Jobs. Surcharge &Removal from Schedule : Wrong Payments,Losses of Stores, Shortage of Cash,Contracts Splitting. Public Service Rules: Overpayment of Salaries/Allowances,Poor Cash Mgt, Non-recovery of Advances,Premature Scrapping of Assets. EFCC Cases : Payments without Jobs, Poor quality work,ghost worker.

35 Thank You for your Attention RASUL TAIWO,Bsc,Msc,AMNIM,Cert.IFRS,ACA. Trasult Consult Int l , rasulutaiwo1@yahoo.com Trasult@gmail.com

TOPIC: GOVERNMENT EXPENDITURE AUTHORIZATION, CONTROL & PREPARATION OF VOUCHERS AND TRANSCRIPTS

ICAN PUBLIC SECTOR ACCOUNTING AND FINANCE SKILLS LEVEL TOPIC: GOVERNMENT EXPENDITURE AUTHORIZATION, CONTROL & PREPARATION OF VOUCHERS AND TRANSCRIPTS WEEK THREE QUESTIONS NOV 2016 Kindly go through chapter