Supplementary to the Republic of Zambia Government iazelte dated the 17th November, 2006 GOVERNMENT OF ZAMBIA } Statutory Instrument No, 111 oF 2006 . The Public Finance Act (Act No. 15 of 2004) THE FINANCIAL REGULATIONS, 2006 ‘ARRANGEMENT OF REGULATIONS PART I PRELIMINARY Regulation 1. Tile 2. Interpretation PART IL Manacement oF PUBLIC FINANCES Powers and functions of Treasury Responsibilities of Secretary to the Treasury Responsibilities of controlling officers Audit committees information PART I Accountine Unrrs 8. Returns and reports 9. Periodic checks by controlling officers 10, Responsibilities of accounting officers 11. Reports by accounting officers 12, Claim of questionable validity 13, Brasures in accounts 14, Register of cheques and cash 15. Approval of accounting systems and forms Secretary to the Treasury to decide regarding disclosure of 1611 (Copies ofthis Stansory Instrument can be obtained from the Government Printer P.O Box 30136, 10101 Lusaka. Price K13,000 each1612 16. 11, 18, 19. 21 22. 2. 24, 28, 26. 27, 28. 29. 30. 31. 32 33. 34, 35, 36. 37. 38. 39. 40. 4. 2 48. 45. 46. 47, 48. 49. 50. Statutory Instruments __17thNovember, 2006 Delegation of responsibility End of year transactions End of year accounting procedures Preservation of accounting records Powers and responsibilities of internal auditor Controlling officers not relieved of responsibility PART IV ‘Conrrot oF Pusuic Finances Esravates PROCEDURES Form of estimates Draft. estimates Presentation of estimates to National Assembly ‘Appropriation Limitation or suspension of expenditure Withholding of funding Releases to be credited ‘Treasury Authority Submission of supplementary request Variation of funds Copies of warrants and treasury authority to be sent to ‘Auditor-General Restrictions on expenditure Expiry of spending authority Excess expenditure appropriation Bank balances at end of financial year PART V (ConTRot oF EXPENDITURE AND PAYMENTS Cash flow control Authority to spend Authority on payment vouchers ‘Commitment and expenditure ledger Payment on behalf of other institutions Date of payment Unexpended budget provision releases |. Chargeable expenditure to accounts of financial year Vouched payments Details on payment vouchers Preparation of vouchers Signing of vouchers Panel of signing officers Responsibilities of officers signing vouchers17th November, 2006 Statutory Instruments 1613 51. Recoverable payments 52. Suppliers’ invoices 53. Mislaid or lost invoices 54, Mislaid requisition forms $5, Payments on incorrect certificates 56. Payees outside Zambia 57. Methods of payments 58. Payment on duplicates 59. Responsibilities of cheque signatories 60, Payments through third parties 61, Identification of payees 62. Daily accounting for payments 63. Responsibilities of officers signing requisitions and stores, orders 64, Extraordinary payments 65. Custody of original documents 66. Access to documents PART VI PAYROLL. MANAGEMENT 67. Day of payment of salaries and wages 68. Calculation of salary and wages 69. Salaries and wages not to be paid in advance 70. Adjustment of salary or moneys due to death or other causes 71, Salaries and wages of convicted officers 72. Payroll records ‘73. Payroll verification 14, Method of payment of salaries and wages 15. Third party payments 76, Net salary and wage deductions 71. Salary record on transfer 78. Unpaid salaries and wages to be returned 79. _ Payments on wage sheets 80. Payment of salary or wage on leave 81. Payment of overtime PART VII REFUND OF REVENUE 82. Authority for refunds 83. Vouchers for refunds1614 84, 85, 86. 87, 88. 89. 90. 91 92. 93 94, 95, 96. 97, 98. 99. 100. 101. 102, 103. 104. 105. 106. 107. 108. 109. 110. M1 112. 113, 14, Statutory Instruments __17thNovember, 2006 Court fees and fines Classification of refunds PART VIII Tres ‘Types of imprest Authority to issue special and accountable imprest Approval of standing imprest Amount of standing imprest Amount of special imprest Restriction in issue of special imprest when another imprest is outstanding Restriction in use of imprest Register of imprests Field cash book Reimbursement of standing imprest Retirement of special and accountable imprest Retirement of standing imprest Recoverable advances PART IX AccouNTABLE DocumENTs Meaning of receipt form Obtaining of receipt forms Auditor General to be informed of issue of receipt forms Checking of receipt forms Register of receipt forms ‘Transfer of receipts forms Consecutive use of receipt forms Unused and surpius receipts Destruction of obsolete receipts Recording of retumed or destroyed receipt forms Loss or damage to receipt forms Monthly check of receipt forms Hand over certificates ‘Notice to public of official receipts Completion of receipt forms Method of cancelling receipts17th November, 2006 y Instruments 1615 115. Office of issue of receipt forms 116. Consecutive receipting 117. Free issuance of receipt forms 118. Duplicate licences 119. Certified copies of receipt forms 120. Prohibition of transfer and destruction of receipt forms PART X [RECEIPTING AND ACCOUNTING FOR REVENUE 121, Gross revenue 122. Prohibition of private use of revenue 123, Receipt form to be issued 124, Vouching of receipts 125. Legal tender 126, Exchange of foreign currency 127. Classification of revenue ‘128. General revenue cash book 129. Bringing revenue to account 130, Deposit to main account 131. Cash surplus 132, Recovery of over payments 133. Abandoning of revenue 134, Bank accounts in respect of public moneys 135. Opening and closing of bank account 136. Bank overdrafts 137. Date of submission of bank statements 138. Bank reconciliations 139, Restriction on transfer of public moneys 140, Misappropriation of public funds 141. Security of cheques 142. Acceptance of cheques 143. Dishonoured cheques 144, Cashing of Government cheques 145, — Maintenance of cash books PART XI Funps Np INVESTMENTS 146, Investment of idle and surplus funds 147, Third party deposits 148. Deposits from seizure of money or property not to be part of general revenues 149, Use of money in Contingency Fund1616 Statutory Instruments 17th November, 2006 150, Use of money in working accounts 151, Restrictions regarding signing of loans and agreements, 152. Loans, grants, donations and receivables in kind 153. Project books and records 154, Project funds PART Xi ‘ares 155. Definition of safe 156. Responsibility for obtaining safes 157. Care of safes 158. Responsibility for safe keys 159, Allocation of safe keys 160. Prohibition of handing over of safe keys 161. Officer to hold original safe keys 162. Control over spare keys 163. Inspection reports 164, Transfer of safes within Ministries 165. Transfer of safes between Ministries 166. Loss of safe keys 167. Prohibition of keeping of private moneys in public safes 168. Register of articles 169. Weekly checks of safes 170. Cash in transit PART XIII Loss oF Pustic MoNeY AND STORES 171. Loss of public money and stores 172. Investigation of loss 173. Recommendation for write off of loss 174, Report by controlling officer 175. Write-off by Secretary to the Treasury 176. Assessment of claim against defaulting officer 177, Representations by officer 178, Decision of Secretary to the Treasury 179, Admission of lisbility 180, Failure to admit liability 181. Monthly deductions 182, Officers leaving the service ——————17th November, 2006 Statutory Instruments isi PART XIV Haine ano Taxi OVER 183. - Handing and taking over office 184, Handing and taking over of safe keys 185. Discrepancies on handing over 186. Handing over certificate 187, Witness to handover PART XV. ‘SURCHARGE 188, Attachment of property of officer as security PART XVI Conrrot oF Statutory CORPORATIONS 189, Representation on statutory corporations 190. Conditions for appropriation of grants 191. Action by Secretary to the Treasury on misapplication of grants 192. Transfer of assets to statutory corporations 193. Financial statements and records of investments 194. Protection of assets of statutory corporations 195, Recovery of outstanding moneys. PART XVII ‘AUpIT OF StaTuTORY CORPORATION 196. Auditor General to audit the accounts of statutory corporations 197, Access to records by agent PART XVII Rerorrs 198 Annual financial report 199. Auditor-General's report1618 Statutory Instruments __7th November, 2006 PART XIX Pupuc Accounts COMMITTEE 200. Examination of accounts by Public Accounts Committee 201. Treasury Minute 202, Revocation of Statutory Instrument No. 398 of 196917th November, 2006 __Statutory Instruments 1619 In Exercise of the powers contained in section fifiy-two of the Public Finance Act, 2004, the following Regulations are hereby made: PARTI PRELIMINARY 1. These Regulations may be cited as the Financial Regulations, 2006. 2. Inthese Regulations, unless the context otherwise requires— “Accountant General” means the person appointed as ‘Accountant General under section eight of the Act; “accounting unit” means a section established on the authority of the Secretary to the Treasury to maintain the accounts of Ministry, Province or Spending Agency and which has a controlling officer in the estimates of revenue and expenditure; “accounting officer” means a person appointed assuch under section mine of the Act; “accounting services” means the financial services provided by an accounting unit in a Ministry, Province or Spending Agency; “Act” means the Public Finance Act, 2004; “advance” means any recoverable sum of money issued to ‘any person and is repayable at some future date; “aided project” means any project which is partially financed ‘through a loan, grant, donation or technical assistance and partially financed from public funds; “Appropriation Act” means an Act passed by Parliament authorising the Republic to incur expenditure of public ‘moneys for specific purposes; “Auditor General” means the Auditor General appointed Pursuant to clause (1) of Article one hundred and twenty- ‘one of the Constitution; “audit committee” means an audit committee appointed pursuant to subsection (2) of section twelve of the Act; “below the line accounts” means suspense accounts which include advances, deposits, imprests, remittances and special funds, Tide Interpret tion Aste. 15 of 2006 Cap.1620 ‘Statutory Instruments 17th November, 2006 “call circular” means a circular issued by the Secretary to the Treasury to controlling officers calling for draft estimates of revenue and expenditure; “Consolidated Fund” means the Consolidated Fund established under section thirteen, of the Act into which all general revenues and other public moneys accruing to the Treasury are credited; “Contingency Fund” means a Fund to meet urgent and unforeseen expenditure esteblished pursuant to section twenty-four of the Act ; “controlling officer” means an officer designated as such by ‘the Secretary to the Treasury pursuant to section seven of the Act, “Controller of Internal Audit” means an officer appointed as such under section ten of the Act; “financial year” means the period of twelve months ending ‘on 31st December in any year; “general revenues” include moneys accruing to the Republic by way of taxes, licences, import fees, fines, levies and charges, sale of Government property and shares, loans, donations and grants raised from within or outside Zambia or any other income due to the Republic; “Government agency” means any unincorporated person or body of persons to which functions exercisable on behalf of the Republic, involving the use of public moneys or stores are delegated by or under any written law; “Government building” means any building owned or occupied by or under the control of the Republic and used for Government purposes; “head of expenditure” means a head of expenditure shown in the estimates of revenue and expenditure in respect of a financial year approved by Parliament pursuant to the cup. Constitution; “internal audit” means the process of evaluating and assessing the efficiency and effectiveness of intemal control systems, “internal auditor” means an officer appointed as internal auditor under section eleven of the Act; “officer” means any public officer holding public office; “Public Accounts Committee” means a sessional committee of the National Assembly established in terms of the Standing Orders of the National Assembly; “personal emoluments” means the salaries, wages and related allowances of all monthly paid officers in the Public Service and members of the service commissions; RR17th November, 2006 ___Statutory Instruments __1621 “Privatisation Revenue Account” has the meaning assigned to it by section chree of the Zambia Development Agency Act No. 11 ‘Act, 2006; 0 2006 “public accounts” means all accounts required under the Act to be kept by Ministries, Provinces, Spending Agencies or statutory corporations in respect of transactions involving assets of liabilities of the Republic; “public debt” means financial, material and other resources including guarantees acquired or borrowed by the Government, Government agencies or local authorities in the interest of the Republic; “public funds” means funds received by an officer by virtue of the officer's employment and includespublic moneys; “public moneys” means moneys received by an officer in the course of the officer’s employment or any other person directly or indirectly, for the purpose of Government and includes all stores, stamps, negotiable instruments, bonds, debentures, investments and other securities raised or received by or on behalf of, or for the benefit of, the Republic; “public stores” means all chattels of whatever nature purchased or donated belonging to or in possession of, or under the control of, the Republic and includes plant, vehicles, machinery and equipment; “receipt forms” means all receipts, licences, permits certificates, discs or tokens; “Secretary to the Treasury” means the Secretary to theTreasury appointed under section six of the Act; “strongroom” means a secured room where public funds, public moneys, public stores, receipt forms and safes are kept; “Spending Agency"means any unincorporated institution which receives and spends public funds as appropriated by Parliament; “statutory corporation” means any body corporate established by an Act of Parliamént in which the Government has a majority or controlling interest, and includes a Government agency; “Treasury Account” means the Treasury Account maintained at the Bank of Zambia into whichmoneys payable to the Consolidated Fund are deposited; “Treasury” means the office of the Treasury established under section four of the Act;1622 Statutory Instruments __ 17th November, 2006 “wasteful expenditure” means wasteful expenditure as determined, from time to time by the Secretary to the Treasury; and “working account” means an account authorised by the Secretary to the Treasury to operate a revolving fund for specific services at a fee, PART I MANAGEMENT OF PUBLIC FINANCES Powers and 3. ‘The functions and powers of the Treasury shall be as functions of specified in section five of the Act. Treasury Reporsitks 4, ‘The Secretary to the Treasury shall be responsible for the of ‘management of public finances and the appointment of controlling, Seren w officers in aovrdance wit he provisions ofthe Act. Regeesbits 5. (1) Controlling officers shal perform the functions ofthat efcontoling office as specified in section seven of the Act. on (2) Acontrolling officer shall be responsible for - (a) keeping accounts in accordance with any order issued or approved by the Secretary to the Treasury ; () the accuracy of these accounts; and (@) the safe custody of all public money entrusted to the controlling officer. (3) A controlling officer shall ensure that officers accounting for revenue and expenditure for which the controlling officer is responsible, comply with the Act and these Regulations and any lementary instructions issued by the controlling officer pursuant tothe Act and these Regulations. (A) _In the performance of their functions under the Act ‘controlling officers shall be subject tothe direction of the to the Treasury and shali be personally responsible for the observance of all instructions issued by the Secretary to the Treasury. ‘Audit 6. (1) There shall be appointed an audit committee for each ‘commitees Ministry, Province, Spending Agency and statutory corporation in accordance with section twelve of the Act. (2). The chairperson ofa statutory corporation shall be a member of the board of that statutory corporation. ) Any person appointed from the private sector as a member cof an audit committee shall subscribe tothe osth of office before taking up the appointment.17th November, 2006 Statutory Instruments (4) The functions of an audit committee shall be as specified in subsection (3) of section twelve of the Act. 5) The secretarial services of an audit committee of a Ministry, Province or Spending Agency shall be provided by an officer of the rank of administrative officer or higher who shall be assisted by two other officers from the administration. 7. (1) Where in the performance of functions under the Act, an audit committee requires information from a controlling officer which information the controlling officer considers should not be disclosed, the chairperson of the audit committee shall refer the ‘matter to the Secretary to the Treasury. (2) Where the Secretary to the Treasury considers that the controlling officer should disclose the information required by the audit committee, the Secretary to the Treasury shall direct the controlling officer to disclose the required information. (3) If the Secretary to the Treasury considers that the disclosure of the information would— (@) prejudice the security, defence or international relations of the Republic or the investigation or detection of offences; or (2) involve the disclosure of any matters or deliberations of 8 secret of confidential nature of the Cabinet or any subcommittee of the Cabinet; the Secretary to the Treasury shall direct that the information should not be disclosed and the decision of the Secretary to the ‘Treasury on the matter shall be fina. PART IT Accountmic Uxrrs 8. Controlling officers shall submit such returns and reports, as may be required by the Secretary to the Treasury, of revenue collected by thém or funds expended under the head for which they are responsible. 9. Controlling officers shall make arrangements for periodic checks of cash held by accounting units under their control. 10. The responsibilities of accounting officers shall be— (@ to account for receipts and disbursements of public moneys in accordance with the Act and these Regulations; 1623 Secretary to the Treasury to decide reparding dlislosure of information Returns and reports Periodic checks by conroling officers ‘ocounting officers1624 Statuiory Instruments ___17thNovernber, 2006 () to ensure that proper arrangements aremade for the safe keeping of public moneys, securities, revenue counterfoil receipts, licences, warrants and all forms of requisitions; (¢)t0 collect punctual all revenues and other public moneys which itis the accounting officer's duty to collect, {d) to bring to account promptly under the correct head and sub head all public moneys which the accounting officer collects or which is paid to the accounting officer; (¢) to check regularly all cash in the accounting officer’s charge and to verify the amounts with the balances ‘shown in the cash book; (P to bring to aocount promptly any revenue in cash found in the accounting officer’scharge in excess ofthe balances shown in the cash book; (g) to make good any shortage in cash for which the accounting officer is responsible; () to ensure that all disbursements made or incurred by the issue of paymentvouchers, orders, warrants, requisitions or any other documents are properly authorised; (i) to charge in the accounts under the proper head or ‘accounting allocation all expenditure when it occurs; (to ensure the satisfactory control of the funds warranted to the accounting officer, by the controlling officer, by ‘maintaining a record of commitments incurred; (& to prepare and dispatch promptly all financial statements and returns in the prescribed format; ()to ensure that the books of accounts are correctly posted and kept up to date; (m) to report in writing to the controlling officer any apparent defect in the procedure of revenue collection, any ‘eapparent waste or any extravagance in expenditure which comes to the accounting officers’s notice in the ‘course of the officer’s duties or otherwise; (n) to produce all books and records or accounting documents in the accounting officer’s charge when required to do so by the Secretary to the Treasury, the controlling officer or the Auditor General; (0) 0 reply promptly and fully to any observations or queries received from the Secretary to the Treasury, the controlling officer or the Auditor General; (P) to effectively supervise all officers under the accounting officer's authority; and maintain effective checks to take precautions against fraud and nugatory expenditure;17th November, 2006 Statutory Instruments 1625 (@) to bring to the attention of the controlling officer any incompetence, carelessness or insubordination on the part of subordinates; and (f) to facilitate business transactions with the public without xy inconvenience to the public. 11. (1) Accounting officers shall— (@) report to their controlling officer where it is envisaged that any head, sub-head or item is likely to be overspent, (0) draw the attention of the controlling, officer to— () delays and shortages in the collection of revenue for which the controlling officer is responsible; Gi any advance or imprest account which they are unable to clear atthe time that it should be cleared; (iil) any deposit account which has become dormant; and (iv) any weakness in the accounting system employed, or in the internal checks applied to accounting transactions, (2) Thereports referred to in subregulation (1) shall be copied to the Accountant General. 12. (1) Accounting officers shall refer to their controlling officers any claim of an unusual nature, or any claim the validity of ‘which is doubtful and any claim in respect of expenditure which is not provided for in the approved estimates. @)_ Where an accounting officer receives instructions to make ‘a payment which is not covered by a financial authority, the officer shall advise the controlling officer in writing ofthe lack of financial authority. (@)__ Where inspite of the advice given under subregulation (2) an instruction to pay is given in writing to the accounting officer by the controlling officer, a payment may be made or accepted by the accounting officer, but responsibility for the payment shall rest with the controlling officer, who shall be held personally liable. (@)__ After payment is made pursuant to subregulation (3), the accounting officer shall in writing inform the Secretary to the Treasury, the Auditor General and the Accountant General of the circumstances under which such payment is made 13. (1) Erasures shall not be made in the books of accounts. (2) Corrections shall be made by striking out the incorrect figures and writing the correct figures above them. Claim of ‘questionable validity Erasures in ‘accounts1626 Register of cheques and cash Approval of accounting systems and forms Delegation of responsibility End of year ‘ransactions End of year accounting procedures. Statutory instruments 17th November, 2006 (3) The corrections shall be made in such a way that the original figures are still legible. (4) Corrections shall be init them. (5) Onno account may alterations be made to figures which have already been audited. 14, Anaccounting officer responsible for dealing with incoming mail which contains money shall maintain a register of cheques and cash for the purposes of recording details of remittances received. 15. (1) The Secretary to the Treasury shall approve the procedures and systems, including the use and introduction of forms, adopted by ministries, Provinces and Spending Agencies for ‘controlling their expenditure. (2) Each accounting unit shall maintain such books of accounts as may be prescribed by the Secretary to the Treasury. 16. Where it becomes necessary for an officer to delegate to another officer any financial duty for which the delegating officer is responsible, the delegation, its scope and duration shall be made in clcar and specific terms and shal be in writing. 17. (1) Allclaims received before the last day ofthe financial year shall be paid before the accounts are closed. (2) All moneys received before the end of the financial year shall be brought to account before accounts are closed. 18. (1) Controlling officers shall be responsible for ensuring that action called for is taken atthe appropriate time and that returns are submitted within the stated periods. (2) Subject to subregulation (3), the procedures to be followed by accounting units at the close of the financial year shall be as follows: (@) the accounts shall be closed in the normal manner, as for ‘an ordinary month end, but supplementary accounts shall bbe opened by accounting units only for the purpose of adjusting misallocations, for the transfer of revenue and expenditure to other accounting units and for final entries on the closing of the accounts; (0) any revenue or expenditure, whether recurrent or capital, ‘which appears in the accounts of one accounting unit but is controlled by another shall be duly transferred; (0) only revenue and expenditure controlled by an accounting unit shall appear in the accounts of that unit for clearance to the Surplus and Deficit Account maintained lled by the officer who makes17th November, 2006 Statutory Instruments 1627 in the books of the Ministry responsible for finance according to the procedureoutlined in paragraph (a); (@) the final closing of the accounts shall be made not later than one month after the last day of the financial year, () immediately after the final closing of the accounts, ‘accounting units shall transfer all items of recurrent and capital revenue and expenditure to the Surplus and Deficit Account in the books of the Ministry responsible for finance; the final contro! balance for each unit shall reflect only the balances outstanding on below the line accounts; (within two months of the end of the financial year, statements of revenue and expenditure and below the line accounts, together with balance sheets and accounts of all funds, shall be submitted in quadruplicate by all ‘accounting units to the Ministry responsible for finance for inclusion in the financial report; and (gall statements, balance sheets and accounts referred to in paragraph (f) shall be duly signed by controlling officers. G) __Attheend ofa financial year, the Secretary to the ‘Treasury may issue guidelines and procedures on the closure of the accounts, in addition to, or varying the procedures referred to in subregulation (2). 19. (1) The following accounting records shall be preserved. Preservation for the periods specified below: facing (@) main cash books and ledgers ten years; wo (@) receipts of all types. ten years; (©) payment and journal vouchers seven years; (@) establishment and salary records required for superannuation purposes sixty years from the date on which a pensionable officer leaves the service. (2) The accounting records referred to in subregulation (1) shall be transferred to the National Archives at the end of the Period specified in subregulation (1). 20. (1) Anintemal auditor shall, in the performance oftheir Powers and duties under the Act and these Regulations, exercise the powers anne specified in subsection (2) of section eleven of the Act. ee (@)_Itshall be the duty of an internal auditor to ensure that— (a) the work entailed in the receipt and payment of public ‘money has been properly carried out under proper1628 Conwolling officers not relieved of esponsibility Form of estimates Cap 1 Statutory Instruments 17th November, 2006 (®) the safeguards for the prevention or prompt detection of fraud or loss of stores, cash or other Government assets, are adequate; () accounting forms are properly protected, recorded and regularly checked; @ the duties of accounting staff are changed from time to time; (@) a satisfactory system exists forthe checking of computer, ‘input and output, @ the system for the control of the receipt, issue and use of stores is adequate; (the recording of the assets is up to date and correct; (hy returns of revenue or expenditure required by controlling officers are correctly prepared and promptly submitted; and (monthly progress reports are submitted to the Controller of Internal Audit G) Internal auditors shall in accordance with subsection (3) of section eleven submit reports to their controlling officers and the audit committees and shall copy such report to the Secretary to the Treasury and Auditor-General, 21. The existence of internal audit teams shall not relieve controlling officers or anyother accounting officers of their individual responsibilities, nor shall it remove the need for normal checks within the Ministries, Provinces, Spending Agencies or statutory ‘corporations. PART IV ‘Cowrrot oF Pustic FovaNces EstiMares PROCEDURES: 22, The estimates of revenue and expenditure laid before the ‘National Assembly in accordance with clause (1) of Article one hundred and seventeen of the Constitution shall be set out as follows: (q) the total expenditure shall be shown under the head of expenditure in respect of which a controlling officer is designated; () each head of expenditure shall show respective Programmes;17th November, 2006 Statutory Instruments 1629 (c) the first programme under each head of recurrent expenditure shall be the estimated expenditure on personal emoluments in respect of such head of expenditure and there shall be a supporting document entitled Establishment Register for posts in Ministries, Provinces and Spending Agencies which shall be deemed to be part of the estimates and which shall show, in respect of each head of expenditure, the grades and salary scalesof the posts included in the programme for personal emoluments; (@) except in the case of the programme “personal emoluments” where activities are standard, activities shall be shown in respect of each programme of recurrent and capital expenditure. 23. (1) The preparation of the draft estimates of revenue Draft ‘and expenditure shalibe called for inan annual estimates call circular estimates issued by the Secretary to the Treasury. (2) Controlling officers shall prepare and submit their draft estimates in accordance with the requirements ofthe call circular. (3) The submission shall only be acceptable after the respective Minister or the responsible officer has signed off the submission. 24, The draft estimates of revenue and expenditure shall be Presentation ‘Prepared under the direct supervision of controlling officers before _ of estimates ‘submission to the Ministry responsible for finance for presentation ane in the National Assembly by the Minister. ne 25, Following the passing of the Appropriation Act pursuant to Appropriation clause (2) of article one hundred and seventeen of the Constitution Cap. and the issue of the General Warrant by the President, expenditure ‘shall be limited to the amou ints specified in the approved estimates. 26. The Minister may limit or suspend expenditure, with or Limitsion or without cancellation of the warrant, if in the Minister's opinion swpexsionof financial exigencies, or the public interest so require. — 27. The Secretary to the Treasury shall withhold the release Withbolding of funds to a controlling officer or an institution which - i @ over commits Government to expenditures in excess of “A appropriated funds; or () does not submit to the Secretary to the Treasury and the Auditor-General etums including receipts and utilisation of grants or donations contrary to the provisions of the Act.1630 Releases to be credited ‘Treasury authority ‘Submission of supplementary request Variation of funds Copies of and treasury authority to be sent to ‘Auditor- Restriction Spendire Statutory Instruments 17th November, 2006 28, Allreleases from the Treasury shall be credited to the control accounts of the Ministries, Provinces and Spending Agencies. 29. On receipt of the General Warrant fom the President, the Secretary to the Treasury shall issue treasury authority authorising controlling officers to incur and commit expenditure during the ‘current financial year within the amounts approved by the National Assembly. 30. (1) Ministries, Provinces and Spending Agencies s responsible for submitting supplementary requests to the Mi responsible for finance under the following circumstances: (@) when the expenditure is of an emergency nature which ‘was not envisaged when the estimates were prepared; (®) when the excess expenditure on an activity cannot be ‘met from savings on another activity under the same programme, or another programme notbeing @ programme for personal emoluments, under the same head; and (c) when accounting for sundry receipt as a result of unspent cash balances from the previous financial year. 31. (1) Where excess expenditure on one item can be met from savings on another item within the programme or another programme, not being a programme for personal emoluments, an application for treasury authority shall be submitted for approval to the Secretary to the Treasury. (2) The Secretary to the Treasury shall exercise discretion to approve or disapprove an application to vary funds. 32. The Secretary to the Treasury shall send to the Auditor General copies of all warrants and treasury authorities issued in accordance with the Act and these Regulations as soon as practicable after they are issued. Ibe 33. (1) The Secretary to the Treasury may impose a restriction on expenditure under any programme or activity appearing in the estimates. 2) The controlling officer shall be informed of the reason for the restriction and the circumstances under which the restriction may be removed or varied. @) Approval of a complete or partial removal of a restriction shall be conveyed to the controlling officer by the Secretary to the ‘Treasury through a revised treasury authority.17th November, 2006 Statutory Instruments 1631 34. (1) Allauthorities to incur expenditure under the recurrent estimates shall expire on the last business day of the financial year to which they refer. @)_No payment may be made against these authorities after that date. (3) Instructions regarding expenditure under capital estimates ‘on the last day of the financial year shall be issued by the Secretary to the Treasury, 35. (1) Forthe purposes of clause (5) of Article one hundred and seventeen of the Constitution, where in any financial year expenditure has been incurred without the authorisation of the National Assembly, the Minister shall on approval of such ‘expenditure by the appropriate committee of the National Assembly, prepare the Excess Expenditure Appropriation Bill for submission to Parliament. @) The Excess Expenditure Appropriation Bill referred to in subregulation (1) shall be submitted to the National Assembly within 1 period of thirty months after the end of the financial year to which the excess expenditure relates. 36. (1) In accordance with the provisions of the Act, all ‘unspent and uncommitted balances standing to the credit of control accounts and other bank accounts at the end of every financial ‘year shall be paid into the Treasury Account unless prior authority inas been obtained from the Secretary to the Treasury for their retention in such accounts, (2) The Treasury shall treat such amounts as sundry receipts. PART V ‘ConTROL oF EXPENDITURE AND PAYMENTS 37. (1) Controlling officers shall maintain a cashflow account for programmes or activities for each expenditure head. (2) Cash flow accounts shall show in detail all the transactions on a monthly basis and the unspent cash balances available at any siventime. 38. Expenditure provided for in the approved estimates of revenue and expenditure may be made by warrant holders holding. ‘one of the following authorities: (@) treasury authority or a warrant issued by the Secretary to the Treasury; Expiry of spending authority ‘expenditure Cap. endof financial Cash flow control ‘Authority to spend1632 Authority on payment ‘vouchers Commitment wd expenditure ledger Payment on behalfof other institutions Date of payment nexpended budget provision roles Chargeable expenditure to accounts of financial year Vouched payments Statutory Instruments __\7thNovember, 2006 () a warrant issued by a controlling officer to a warrant holder in the Ministry or Department; and (6) a sub warrant issued by a warrant holder. 39, All payment vouchers shall quote the authority against which expenditure is being incurred, such as the warrant number, the memorandum or minute or the written law authorising the expenditure. 40, A commitment and expenditure ledger with details of commitments and expenditure for each expenditure head and department shall be maintained by every Ministry, Province and Spending Agency. 41, Payments on behalf of other Ministries, Provinces or Spending Agencies shall be made under the following circumstances: (a) when prior written authority has been obtained from the ‘controlling officer of the Ministry, Province or Spending ‘Agency on whose behalf the payment is to be made; () where funds have been received for the payment of specific expenditure on behalf of another Ministry, Province or Spending Agency under whose budget the expenditure head is approved 42, The date of payment shall determine the date of record of ‘ transaction in the accounts. 43, Unexpended budget provision releases on a vote during the year shall not be drawn and placed on deposit for the purpose of setting aside funds as a reserve to meet payments in the next financial year unless prior authority has been obtained from the Secretary to the Treasury. 44, Expendituré chargeable tothe accounts ofa financial year shall, so far as possible, be made within that year and shall not be deferred for the purpose of avoiding an excess on the authorised provision forthe year in which authority should have bees obtained by supplementary provision estimates. 45. (1) All payments shall be vouched for on one of the following forms: (@) Accounts Form 2: A wages payment voucher; @) Accounts Form 5: A general payment voucher; and (©) Accounts Form 44: A claim and payment voucher used for avelling on ty including mileage nd sbsistence lowance. @ all by cheque or cash for goods, services and ‘works shall be supported by cash sale receipts.17th November, 2006 Statutory Instruments 1633 @)_ Any document which is acquitted, certified and approved by aresponsible officer shall form part of cash sale receipts. 46. Allvouchers shall be complete with details including coding allocations, dates, numbers, quantities, rates, distances and authorities. 47. Vouchers shall be typewritten or made out in ink or indelible pencil and all copies must be legible. 48. (1) The original of a payment voucher shall be signed by a controlling officer, a warrant holder or by any other officer authorised to sign on their behalf. (2) _Thename and designation of the officer signing shall be printed below the officer's signature. (@)_ Copies shall be initialled by the signing officer or stamped with the officer’s name stamp. 49. Alist of accounting or other officers authorised in writing to sign vouchers on behalf of warrant holders for ‘each financial year shall be sent by controlling officers to the Auditor General. 50, The officer signing a voucher or document certifies the ‘accuracy and validity of the payment and must therefore ensure that— (@) all deductions due to be made from salaries or wages have in fact been made; {® the goods have been supplied or the services provided as certified by the receiving officer, (©) the prices charged are either according to contract or approved rates, or are fair and reasonable according to current local rates; (@ the payment is covered by proper authority and is a proper charge to public funds; (@) the calculations are correct; (the persons named as payees are entitled to receive payment; @ the voucher is property allocated to a head, programme and activity; and (H) payment of the amount stated on the voucher does not ‘cause an excess over the amount allocated in the budget. 51. Officers signing vouchers which relate to payments which are recoverable are responsible for ensuring that proper arrangements exist for the recoveries to be made. Deuils 02 payment ‘vouchers Preparation of vouchers Signing of ‘vouchers Panel of officers of officers1634, Statutory Instruments 17th November, 2006 Suppliers’ $2. (1) Vouchers relating to purchases shall be invoices supported by an official order and the supplies invoices, 2) Payment shall not be made on statements of account only. 3) Onno account shall requisitions for local supplies be issued in arrear if goods have already been supplied, (4) Where goods are supplied before a requisition is issued, the responsible officer shall certify the voucher giving reasons for the failure to issue a requisition before hand. Mislaid or 53. (1) Where an original invoice has been mislaid or lost, a ne duplicate shall be obtained from the supplier. invoices (2) The duplicate shall be clearly marked “Copy Invoice”. @) A certificate that payment has not previously been made shall be recorded on the voucher by the officer making the payment, after the officer is satisfied that payment of the account has not in fact been made. (4) Where a mislaid invoice is found after payment on a certified duplicate copy, the invoice shall be attached to the payment voucher and shall form part ofthe supporting documents. Mislaid 54, (1) Inno circumstances shall a duplicete requisition form ‘eauston be isued ifan original has been mislad am (2) Payment shall be made against the supplier's copy invoice which shail be endorsed with the serial number of the requisition form against which the supply of goods or services was made, and the certificate referred to in subregulation (3) of reguiation 53 shall be recorded on the payment voucher, Payments on 58. In the event of any unauthorised payment being made in incomect_ consequence of an incorrect certificate on a voucher, the certifying certificates officer shall be held responsible and shall be surcharged with the amount paid. Payees 56. -(1) A Ministry, Province or Spending Agency, which outside wishes to effect payment outside the Republic shall submit to the ne Secretary to the Treasury Accounts Form 120 (Rev.) duly completed in triplicate and supported by the appropriate payment vouchers; the issuing Ministry sball complete Part B of Accounts Form 120 ‘and the Ministry responsible for finance shall complete Part A of the form after payment has been approved. 2 Subject to the provisions of subregulation (1), payment of money by 8 Ministry, Province or Spending Agency to a payee outside the Republic shall be made through the respective controlling officer. $e17th November, 2006 Statutory Instruments (3)__Allpayments on account of expenditure, whether recurrent ‘orcapital, relating o a diplomatic mission abroad, shall be made by the Ministry responsible for foreign affairs from funds made available to such mission against the annual budget as reflected in the printed estimates for such mission. 57. (1) Payments shall be made by cheque, cash or such other mode as the Secretary to the Treasury may determine. (2). Controlling officers shall ensure that payments are made payable to those to whom payment is due. 58. (1) Where payment voucher is lost, a certified copy of the duplicate of the payment voucher shall be obtained. (2) Iacertified copy of the duplicate of a payment voucher ‘cannot be obtained, the expenditure shall be treated as unvouched and a written application shall be submitted immediately to the Secretary to the Treasury, and shall be copied to the Auditor General, for authority for the payment to stand as a charge to public funds. (3) The controlling officer shall be required to certify that the payment is authentic and that the payee had received the payment which the original voucher covered. 59. Cheque signatories shall be responsible for ensuring— (@) that original documents such as invoices, salary sheets and claim forms are attached; (®) that original documents are all stamped”Paid” by means of a stamp with details of the respéctive Ministry, Province or Spending Agency, and that the cheque number is correctly shown within the “Paid” stamp; (6) that the relevant payment voucher (Accounts Form 5) is duly completed; and . (@ that the cheques are correctly made put in every respect. 60. (1) Only in the following circumstances may payments bbe made other than to the persons or firms to whom payment is doe (@ onthe written authority of the person or firm to whom the payment is due or on the production of a power of atlomey or letters of administration; (®) in cases where the timely payment of wages to an employee is impracticable and delay would cause hardship, a paying officer may effect payment to a third party who shall give a receipt for the payment; and (©) where there is a court order directing that payment be ide to a duly appointed receiver, an official receiver, a trustee in bankruptcy or to a named third person. Methods of payments Payment on duplicates Responses ofeheque signatories Payments through third partes1636 Statutory Instruments \7thNovember, 2006 Identification of payees Daily for payments of officers requisitions and stores Extrordinary payments Custody of documents Access to documents (2) The paying officer shall ensure that the payee receives the payment. 61. (1) Paying officers and officers who are witnesses to a payment shall satisfy themselves that the person claiming the payment is in fact the person authorised to receive the money. (2) The claimant shall be required to produce a valid identity card, which shall include a national registration card or a valid passport, 62. All payments shall be entered into the books of accounts on the day the payments are made, 63.. (1) Officers signing requisitions and stores orders shall bbe responsible for— (@ ensuring that proper authority exists for the expenditure being incurred; and (&) in the case of passenger fares, ensuring thatthe officer in ‘entitled to the fare quoted inthe requisition and that all, appropriate concessions are claimed. (2) Where excess expenditure is incurred as a result ofa fajlure to observe the provisions of these Regulations, the officer who signed the requisition or stores order shall be surcharged with the amount over spent. 64, Payments which are extraordinary in that they are not ‘covered by normal regulations or procedures such as compensation for loss of or damage to private property, shall require the prior written approval of the Secretary to the Treasury. 65. (1) Payment vouchers with supporting documents, and any other forms which support a charge entered in the accounts, shall be filed, secured against loss, and be readily available for audit. (2). Allppaid and cancelled cheques shall be held for audit. 66. (1) Access to documents shall be restricted to those officers authorised by the controlling officer to make reference to them. (2) Inno circumstances shall the documents be removed from the files in which they are kept.17th November, 2006 Statutory Instruments 1637 PART VI PAYROLL MANAGEMENT 67. Salaries and wages shall be paid on the last working day of each month or according’to any staggered dates which the Secretary to the Treasury may from time to time approve. 68. (1) Salaries and wages are payable in monthly instalments calculated at one twelfth of the annual rate. (2) Salaries and wages for a part of any month shall be calculated in proportion to the number of days in that particular month. 69. Except as provided in the Public Service Terms and Conditions of Service, an officer shall not be granted an advance of salary or wages. 70. (1) Any contingency which is likely to affect an officer's salary, wage, pension ot gratuity such as death, suspension or dismissal, shall be notified immediately by the controlling officer to a senior officer in charge of salaries in the respective Ministry, Province or Spending Agency. (2) The senior officer shall then be responsible for ensuring that timely and correct adjustments are made to the officer’s salary, ‘wage, pension or gratuity, 71. Any balance of salary or other moneys due to an officer ‘who has been convicted of misappropriation of Government funds ‘or theft of Government property or who has been dismissed, leaving sums owing to Government including losses of cash or stores which are under investigation, shall not be paid without the written authority of the Secretary to the Treasury. 72, Ministries, Provinces and Spending Agencies shall maintain the following payroll records: (@) establishment register as approved by the National ‘Assembly; (©) payroll schedules; (©) payslips for the tax year; and @ individual records on salary progression for all employees. 73. Ministries, Provinces and Spending Agencies shall ensure ‘that the payroll is verified and reconciled by an officer each from administration, audit and accounts units before cheques are distributed. Day of payment of salaries and wages Calculation of salary and Salaries and wages of convicted Payroll Payroll1638 Method of payment of salaries and wages Third party payments Unpaig salaries and wages to be returned Payments on Payment of| salary or age on leave Statutory Instruments ___17thNovember, 2006 74, Payment of salaries and wages shall be made directly to the credit of an officer’s account at any bank. 75. Ministries, Provinces and Spending Agencies shall ensure that third party payments are made in full and cheques distributed to the beneficiaries on a monthly basis. 76. Deductions and the net amount of an officer's salary or wage shall be charged to the personal emoluments allocation. 71. Where an employee is transferred and the transfer involves ‘a change of pay office, the employee's salary record shall be made up to date and transferred to the employee’s new pay office. 78. (1) Unpaid salaries and wages shall be retumed to the” respective Ministry, Province or Spending Agency by the bank after six months of receipt. 2). Ministries, Provinces and Spending Agencies shall maintain a record of retuned salaries and wages. (3) Returned salaries and wages shall be deposited in the salaries account not later than the next business day following the day of receiving the salaries or wages. 79. (1) Controlling officers shall ensure that adequate security precautions are taken in the handling of money for the payment of wages. (2) Controlling officers shall ensure that the following internal checks are in place for the preparation of wage sheets and the payment of wages: (@ officers responsible for entries on the wage sheet shall sign for their particular responsibilities on the face of the wage sheets; (®) a wage sheet shall be checked by an officer other than the officer who prepared it; (©) payment shall take place inthe presence of an officer who is able to identify the recipients; (@ the paying officer shall, where practicable, be an officer ‘not concerned with the preparation and checking of wage sheets. 80. An officer who proceeds on an approved leave shall continue receiving a salary or wage._17th November, 2006 Statutory Instruments 81. Controlling officers shall ensure that attendance registers Paymeat of ‘of employees engaged in overtime are maintained, overtime PART VII Rerun OF REVENUE 82. (i) Atno time shall a controlling officer authorize @ Authority refund of revenue without the written approval of the Secretary to for refinds the Treasury. (2) Where need arises to refund revenue, a controlling officer shall recommend to the Secretary to the Treasury for approval. 83. Payment vouchers-éfating to refunds of revenue— __VoushersYor (@ shall staie— aaa (the authority for the refund; and (ii) the receipt number on which the revenue was originally collected; and (shall be accompanied by the original receipt which shall ‘be attached to the payment voucher. 8 Court fees and fines may be refunded by the Registrar of Court fees ‘the High Court or by the judge or magistrate of the court to which and fines the fees or fines were paid. 85. (1) Allrefunds of revenue shall be charged against the Cisifeaion approved budget allocation on refunds of revenue provided under of efinds the Ministry responsible for finance. (2) Nopayment shal be charged against this vote without the ‘written authority ofthe Secretary to the Treasury. PART Vill Iverest 86, There are three types of imprest. These are itemised as follows: ‘Types of (@) standing imprest this is imprest issued to facilitate" payments of a minor nature as approved by the controlling, officer; (®) special imprest this is imprest that is issued as payment ‘ofa temporary nature to an officer for the purpose of providing funds to meet expenses when the officer is ‘travelling on duty ands limited to an officer's entitlement; oe1640 Statutory Instruments ___17thNovemiber,2006 Authority to issue special and, accountable imprest Approval of | standing imprest Amount of standing imprest Amount of special imprest Restriction inissue of, special imprest when another imprest is outstanding Restriction inuse of imprest (©) accountable imprest this is imprest that is issued as payment to facilitate the purchase of goods and services whose value cannot be ascertained at the time. 87. (1). Special and accountable imprests shall not be issued in respect of tours outside Zambia without the authority of — (@) the Secretary to the Cabinet, in the case of for a public officer; or (®) the President, in the case of a Minister. 2) Where authority to travel within or outside Zambia has been granted by a controlling officer, the Secretary to the Cabinet or the President, the authority to travel shall indicate whether the cost shall be borne by the Government or the sponsor. 88. (1) The Secretary tothe Treasury shall approve standing. imprests each year for ail ministries, Provinces and Spending Agencies, (2) The amount for standing imprest shall be limited in total to the amount authorised by the Secretary to the Treasury. (3) The controlling officer shall pay standing imprest from allocated funds in the budget. 89. The amount of each standing imprest shall be limited to the monthly requirements in each case, but if itis desirable to recoup the imprest more frequently, this is permissible. 90. (1) The amount of special imprest issued to meet expenses while travelling on duty shall be limited to the amount which an officer shall be eligible to claim for the period of absence from the station. (2) Where the period of absence on duty is not known, the officer may be given an accountable imprest authorised by - (@) the controlling officer, in the case of a local trip; oF (b) the Secretary to the Cabinet, in the case of a foreign trip. 91. (1) Inno circumstances shall any officer be issued with another imprest while there is already a special imprest outstanding in the officer’s name, (2) Any officer authorising a second imprest before the first is retired shall be surcharged and shall be liable for the whole amount of both imprest. 92. (1) _Imprests shall be used only for the purposes for which they are issued and on no account shall they be used for personal expenditure or for making advances of salary or wages.17th November, 2006 Statutory Instruments 1641 (2) Where an officer uses imprest for a purpose other than that for which it was intended, the imprest shall be recovered in full at once, where this is possible, from the officer's personal emoluments or other benefits and the officer shall be liable to disciplinary action, which shall be carried out in accordance with the Public Service Terms and Conditions of Service. 93. Arecord of the issue and retirement of all imprests shall bbe kept in a Register of Imprests (Accounts Form 17). 94. (1) Holders of standing imprests shall record all payments and reimbursements in a Field Cash Book (Accounts Form 39). 2) The standing imprest shall be reconciled to the total ‘expenditurd and the balance of cash shall equal the total authorised amount. 95. (1) Standing imprest shall be reimbursed by the submission of the tear off copies of the Field Cash Book folios, supported by duly completed original payment vouchers, to the office from which the imprest was obtained. (2) The amount reimbursed to the imprest holder shall equal the total sum of the vouchers submitted less any rejected vouchers, 96. (1) Special and accountable imprests shall be retired ‘immediately the purpose for which they are issued has been fulfilled. (2) Any unspent balance shall be surrendered to the accounting officer immediately on the officer’s return to the station and a receipt shall be issued to that effect. (3)_ Where imprest is not retired within two working days of the officer’s return to the station, the issuing officer shall notify the controlling officer of the imprest holder’s failure to retire the imprest within the specified period. (4) The controlling officer shall on receipt ofthe notice referred to in subregulation (3) require the imprest holder to immediately retire the imprest and where the imprest holder fails to retire the imprest the controlling officer shall institute disciplinary action ‘against the imprest holder in accordance with the Public Service ‘Terms and Conditions of Service. (5) Accounting officers shall submit to controlling officers a schedule of outstanding imprests every month and controlling officers shall take action against any officer who has not retired the imprest in accordance with subregulation (4). Register of iprests Field cash book Reichusenert of standing. imprest Retirement ofspecial and accountable imprest1642. Statutory Instruments 17th November, 2006 Retirement of standing imprest Recovertble advances (©) Whereacontrolling officer or Minister or other constitution office holder fails to retire the imprest within two working days of the controlling officer, Minister or constitution office holder’s return to the station, the Secretary to the Treasury shall - (a)in the case of a controlling officer, refer the metterto the Secretary to Cabinet for appropriate disciplinary action; or (0) in case of a Minister or a constitution office holder, refer the matter to the Secretary to the Cabinet for appropriateaction to be taken against the Minister or constitution office holder concemed. (7) _ Every month, accounting officers shall submit a copy of the schedule of outstanding imprest to the Accountant General, for onward submission to the Secretary to the Treasury who shall ensure that action is taken in line with sub regulation (6). (8) Accounting officers shall process the retirement documents to effect the retirement of imprest within two working days of receipt of the documents. (©) Anaccounting officer who fails to process the retirement documents shall be liable to disciplinary action to be carried out in accordance with the Public Service Terms and Conditions of Service. (10) Controlling officers shalt ensure that imprests are retired within each financial year to avoid under reporting of expenditure and unconstitutional expenditure inthe following year. 97. (1) Standing imprest shall be retired at the end of the financial year, unless prior authority for its retention into the following, financial year has been granted by the Secretary to the Treasury. (@) The imprest holder shall be required to produce proof of the imprest as at the close of business on the last working day of the financial year on Accounts Form 16. 98. Recoverable advances shall be the advances, loans and imprests which are specified in the Public Service Terms and Conditions of Service and in circulars issued by the Secretary to the Cabinet.1th November, 2006 ___Statutory Instruments 1643 PART IX Accountaaie Documents 99. (1) The term “receipt form” includes all receipts, licences, permits, certificates, discs or tokens used in the collection of revenue or other moneys. (2) Alllicences, permits, certificates, discs, tokens and other documents for which payments are received shall be issued on or with the prescribed forms. (3) A general receipt (Accounts Form 40) shall be used in ‘cases where a special receipt form is not prescribed. 100. (1) Receipt forms shall be obtainable from the ‘Strongroom Superintendent of the Ministry responsible for finance. (2) Inno circumstances shall any officer make arrangements for the printing or alteration of receipt forms other than through the Secretary to the Treasury. (3) Receipt forms shall be issued only to authorised accounting officers (@)_Any officer who contravenes subregulation (2) or (3) shall be liable to disciplinary action which shall be carried out in accordance with the Public Service Terms and Conditions of Service. 101. ‘The Auditor General shall be informed of all issues and transfers of receipt forms. 102. (1) All receipt forms shall be checked immediately they are received to ensure that they are complete and correctly numbered. (2) _Any forms which are defective shall be returned to the ‘Strongroom Superintendent without delay. @),_ The Advice of Issue of Licences, Revenue and Receipt ‘Books Form (Accounts Form 40) shall be completed and returned ‘immediately to the Strongroom Superintendent with a report of any discrepancies, and shall be copied to the Auditor General and the controling officer concerned. 103. (1) _Every officer who is required to hold receipt forms shall maintain an Accountable Documents Register (Accounts Form 103) in which the receipt and issue of all receipt farms shall ‘be promptly entered. @) The register referred to in subregulation (1) shail be obtained from the Strongroom Superintendent, Meaning of receipt form Obtaining of receipt forms receipt forms Checking of receipt forms Register of reesipt1644 Statutory Instruments 17th November, 2006 Transfer of receipt forms Consecutive se of receipt forms ‘Unused and surplus receipts Destruction of obsolete receipts Recording of returned or destroyed receipt forms 3) _ Receipt forms shall be printed only by a printer authorised by the Secretary to the Treasury and shall be received end kept by the Strongroom Superintendent. 104, (1) Receipt forms shal! not be transferred from one receipt holder to another. 2) fin anemergency the transfer of receipt forms from one receipt holder to another becomes necessary, the transfer shall be reported immediately to the controlling officer, the Auditor General and the Strongroom Superintendent. 105, Receipt forms shall be used in consecutive order, within the sequence of numbers of receipts held by one officer. 106. (1) Surplus stocks of complete and unused receipt books which are not obsolete shall be listed and returned by registered mail or physically delivered to the Strongroom ‘Superintendent by the responsible officer. 2) Copies of lists of receipts prepared pursuant to subregulation (1) shall be sent to the Auditor General and to the controlling officer. 107. (1) Controlling officers shall obtain authority from the Secretary to the Treasury for the destruction of obsolete receipt forms which are complete and unused. (2) The destruction of receipt forms shall be carried out in the presence of the accounting officer in charge, and another officer from internal audit who shall check that the obsolete receipt forms which are to be destroyed are complete and unused. (3) A certificate of destruction, listing the serial numbers of all receipt forms which have been destroyed, must be signed by both officers referred to in subregulation (2). (4) The original certificate of destruction shall be filed by the officer responsible for the custody af the forms and copies of the certificate shall be sent to the controlling officer, the Auditor General ‘and the Strongroom Superintendent. 108. Whenever— (a) surplus stocks of receipt forms are returned to the ‘Strongroom Superintendent; or (®) obsolete receipt forms are destroyed; ‘the return of the surplus stocks of receipt forms or the destruction of the receipt forms shall be recorded in the Accountable Documents Register (Form 103).17th November, 2006 Statutory Instruments 1645 109. Where a receipt form is lost or damaged, the holder shall immediately report the loss or damage of the receipt form to the controlling officer and copies of the report shall be sent to the ‘Auditor General and the Secretary to the Treasury. 110. A holder of receipt forms shall carry out a monthly check of used and unused receipt forms and shall record in the ‘Accountable Documents Register (Form 103) the date of the check and sign for the entry. 111. Where an officer hands over receipt forms to another officer, a handover certificate shall be signed by both officers for the receipt forms which are handed over Notice to public of official receipts 112. A printed notice shall be displayed in all offices where revenue of any type is received, to bring to the attention of the public the need for them to obtain an official receipt for every payment made by them. 113. (1) Receipt forms shall be completed either in ink or in indelible pencil. (2) Counterfoils or copies of receipt forms shall contain exactly the same details as those appearing on the original receipt form. (3) All copies of receipt forms shall be date stamped at the time of issue and shall not be altered in anyway. 114. (1) Where areceiptis cancelled, the original and all the copies of the zeceipt shall be cancelled and the holder of the receipt ‘book shall sign for the cancellation of the receipt. (2) The original receipt shall be kept in the receipt book and the duplicate shall be included with other duplicate receipts which accompany the Revenue Cash Book. 115. Every receipt form and counterfoil shall be printed or stamped with the offical starnp of the office of issue and shall be signed by the issuing officer. 116. (1) Officers receiving payments from collectors of ‘revenue shall ensure that the numbers of receipt forms issued by the collectors run consecutively. @) Any missing receipt forms shall be reported without delay to the controlling officer who shall institute investigations. 117, Where a free issue is made of a receipt form for which a fee would normally be payable, the receipt form shall be certified by the issuing officer. Loss or damage 10 receipt forms Monthly check of receipt forms Hand over certificates Notice to public of official receipts Completion of receipt forms Method of cancelling receipts Office of issue of receipt receipting {issuance of receipt1646 Statutory Instruments \7thNovember, 2006 Daplicate 118, Aduplicate of licence shall be issued only in accordance licenses with the provisions of a written law or regulations made under it . Certified 119. (1) Where acentfied copy ofa receipt formis required, copies of it shall be made on plain paper and headed “certified copy”. (2) Inno circumstances shall another receipt form be used as a copy of an original receipt previously issued. Prohibition 120, It is prohibited to transfer used receipt forms from one oftransfér accounting unit to another, or to destroy the counter foils and copies = of used receipt forms until after they have been examined by the Steep” Auditor-General forms PART X RECEPTING AND ACCOUNTING FOR REVENUE, Gross 121. (1) Subject to the written direction of the Secretary to Revenues the Treasury in respect of the operation of any fund or working account established pursuant to section twenty-five ofthe Act, all moneys received by any accounting officer zhall be deposited not Jater than the next business day following the day of receipt. (2) Where no banking facilities exist, the accounting officer shall bring to account all revenues collected through the nearest bank to their station, at least twice every month. (3) Allrevenues, including government taxes, and other public ‘moneys that are deposited into the Treasury Account shal, without ‘exception, be recorded daily according to their source, date of deposit and amount. Prohibition 122. (1)_An officer shall not use public revenue, for any of private purpose, whether temporarily or otherwise. pvicwseof (2) _An officer who contravenes subregulation (1) shall be disciplined in accordance with the Public Service Terms and Conditions of Service and may be liable to suspension or dismissal. Receiptfom 123. A receipt form shall be issued by the rbceiving officer tobeitsued whenever a sum of public money is received. Vouching of 124. All receipts must be vouched for on a prescribed form. receipts Legatender —-*125. (1) Thenotes and coins issued by the Bank of Zambia constitute legal tender in the Republic. (2) Noother currencies may be accepted as payment for any transaction without the specific authority of the Secretary to the foreign currency . $$ eee17th November, 2006 Statutory Instruments 1647 126. Foreign currency shall be exchanged for Zambian currency only at the Bank of Zambia or any commercial bank or bureau-de-change. 127. All revenue shall be brought to account under the appropriate sub head in the approved estimates of revenue and expenditure. 128. (1) Collectors of revenue shall keep a General Revenue Cash Book (Accounts Form 47B) which shall be written up daily. (2) Accounts Form 47B provides for the collection of revenue ‘under four headings but where more columns are required Accounts Form 47A shall be used. 129. (1) Collectors of revenue are required to bring to account daily the whole amount of their collections. (2) Controlling officers shall conduct checks to ensure that this isdone. (G) . Any officer who without reasonable cause fails to deposit moneys received shall be liable to the Government for the full amount not deposited in respect of such failure to deposit and may be surcharged in accordance with section thirty-one of the Act. 130. (1) All revenue shall be deposited to the credit of the ‘Treasury Account (Control 99) at the Bank of Zambia, using Accounts Form 25 (Rev.), six copies of which shall be completed in respect of each deposit. 2). Where money is received other than revenue, it shall be eposited into the Ministry or Department's control account using ‘Accounts Form 25A, six copies of which shall be completed in respect of each deposit. @)_ The following banking facilities shall be used to enable eposits referred to in subregulation (1) and (2) to be made: (@) where daily banking facilities exist, revenue shall be deposited either directly with the Bank of Zambia or transferred through a commercial bank or through revenue transit account at an authorised commercial bank, or (®) where a banking agency or mobile banking services exists, revenue shall be deposited through that agency to the Bank of Zambia. 131. Where acollector of revenue finds thatthe collector bas & surplus of cash, the collector shall bring such surplus to account ‘and shall credit the surplus cash to the “miscellaneous” sub head in the approved estimates of revenue and expenditure, Exchange of Foreign Currency Chassifcaton ofrevenue General revenue cash book Bringing revenue to account Deposit to ‘mai account ‘Cash surplus1648, ‘Statutory Instruments 17th November, 2006 Recoveryof 132. (1) Receipts in respect of the recovery of over over payments or erroneous payments shall be credited to the vote from Payments’ Which the payment was made. @) Where the payment was made in a previous financial year the receipt shall be credited to the “miscellaneous” sub head provided in the approved estimates of revenue and expenditure. ‘Abandoning 133, (1) Revenue may be abandoned only with the approval of revenue of the Secretary to the Treasury. (2) A controlling officer shall apply to the Secretary to the ‘Treasury for authority to abandon revenue stating - (a) the sum of the revenue to be abandoned; (@) the date on which it was due; and (©) any action taken to collect it and the reasons why it was not possible to collect. G3) _Acopy of the application for authority to abandon revenue referred in subregulation (2) shall be sent to the Auditor General. (4) Where the Secretary to the Treasury authorises the abandonment of such revenue, a copy of the authority issued by ‘the Secretary to the Treasury shall be sent to the Auditor General. ‘Bank 134. (1) ‘The moneys payable to the Consolidated Fund shall accounts in be deposited into the Treasury Account which shall be maintained respect of at the Bank of Zambia. Snel (2) Payments from the Consolidated Fund shall be effected through the Treasury Account (control 99) into the respective control accounts maintained at the Bank of Zambia. 135, (1) The opening of an official bank account for any purpose and any change in signatories shall require the authority of the Secretary to the Treasury given on Accounts Form 49. (2) The purpose for which the bank account is required shall be stated in a minute submitted with Accounts Form 49 by the controlling officer. (3) A commercial bank shall not open or close an account in ‘which public moneys are held without the written approval of the Secretary to the Treasury. Bank 136. (1) ‘A bank account in which public moneys are held shall overdrafts not be overdrawn without the prior written authority ofthe Secretary ‘ to the Treasury. (2) Where a bank account referred to in subregulation (1) is overdrawn without the written authority of the Secretary to the ‘Treasury, the officer responsible for the overdraft shall refund any bank charges incurred by the Government as a result of the overdraft. —— eee17th November, 2006 Statutory Instruments 1649 137. (1) _Ail banks maintaining accounts in respect of public moneys shall submit bank statements to the account holders and the Secretary to the Treasury by the fifth working day of each ‘month. @) Accounting officers authorised to keep official bank accounts shall ensure that bank statements are obtained by the fifth working day of the month. 138. (1) Bank reconciliations for Government accounts at the Bank of Zambia and commercial banks shall be submitted to the office of the Accountant-General by the fifteenth day of the following month, 2) Controlling officers shall send each month's reconciliation ‘on below-the-line accounts and above -the -line accounts to the Secretary to the Treasury within fifteen days from the date of receipt of computer abstracts, (3)_ Where a controlling officer fails to submit reconciliations to the Secretary to the Treasury as required by these Regulations, the Secretary to the Treasury may— (@) withhold finding othe Ministry, Province, Spending Agency ‘or statutory corporation for which the controlling officer is responsible; or () recommend to the Secretary to Cabinet that disciplinary action be taken against the controlling officer concemed, 139, (1) Where Bank of Zambia facilities are available, no ‘transfer of public moneys shall be made between accounts at the ‘same bank or in different banks without the written approval ofthe Secretary to the Treasury. @) Ministries, Provinces and Spending Agencies which are not near the Bank of Zambia banking facilities or the Ministry responsible for finance shall notify the Secretary to the Treasury in ‘writing of all transfers of public moneys between accounts at the same bank or in different banks not later than seven days after the ‘transfer has been made, » +140. (1) Under no circumstances shall public money be credited to a private bank account or used for personal purposes. (2) The controlling officer shalt institute disciplinary action against an officer who contravenes subregulation (1). 3). The disciplinary action referred to in subregulation (2) may include suspension or dismissal in accordance with the Public Service Terms and Conditions of Service and the officer may be prosecuted in addition to the disciplinary action. Date of submission of'bank statements Restriction ontransfer of public moneys Misappro- prition of public funds1650 Statutory Instruments ___ \7th November, 2006 Security of 141. (1) Cheque books for official bank accounts shall be cheques obtained from the banks with which business is transacted. (2) Cheque books must be kept secure under lock and key. (3) The Cashier shail— (@) be responsible for the custody and control of the cheques; and (®) maintain a record of receipts and issues in the Accountable Documents Register (Accounts Form 103) and the ‘Cheque Distribution Register. (4) If a cheque is lost, whether such cheque has been issued or is unused the accounting officer shall notify the controlling officer and all the relevant banks. (5) Where a cheque which has been issued is lost a “stop payment order” shall be sent to the bank on which it was drawn. (© Before a replacement cheque is issued for an open or crossed cheque which has been lost, or is stolen from the payee, the claimant shall be required to sign a certificate of indemnity in the form prescribed by the Secretary to the Treasury. Acceptance 142. (1) Cheques may, at the discretion of a controlling ofcheques officer, be accepted in payment for licences, fees, taxes and other payments due to the Government. (2) Before acceptance of a cheque; the controlling officer shall ensure that— (a) the identity of the person presenting the cheque is ascertained; (®) the cheque is not post dated or stale; (©) the amount in words and figures agree; (@) the cheque is correctly signed and datedby the drawer; (©) alterations of any kind are duly signed for by every signatory to the cheque; and ‘the drawer has unquestionable reputation, (3) Cheques received shall be made payable to the Government of Zambia and crossed “account payee only”. Dishonowed _ 143. (1) Where a cheque is dishonoured, immediate action cheques shall be taken to secure prompt reimbursement of the amount owed. (2)_ Bank charges accruing on dishonoured cheques shall be borne by the drawer. 3) _Allicence or permit relating toa dishonoured cheque shall be invalid if a replacement for such a cheque is not made within fourteen days. ee17th November, 2006 Statutory Instruments 1651 (4) Any other payments due to the Government relating to ddishonoured cheques shall be invalid if replacements are not made within fourteen days. (5) Where it proves to be impossible to obtain reimbursement ofa dishonoured cheque, the matter shall be referred to the Attorney General. 144. (1) Government cheques may be exchanged for cash by accounting officers at stations where there are no banking cm (2) Collectors of revenue and other accounting officers who collect or receive public money shall not encash personal cheques from public money in their custody. 145. (1) Controlling officers shall maintain cash books for bank accounts at the Bank of Zambia and commercial banks. (2) Each cash book shall show in detail all the transactions on receipts and payments. (8) The cash book shall be reconciled to the bank statements on a monthly basis. PART XI -Funps ANp INVESTMENTS. 146. For purposes of section twenty-two of the Act moneys standing to the credit of the Republic in the Treasury Act or with any other bank account and which are not immediately required for any other purposes shall be determizied and invested as directed by the Secretary to the Treasury. 147, Anaccounting officer shall teat any deposit of third party ‘moneys received by such officer in accordance with section fwenty- three of the Act. 148. (1) Any deposit arising from any seizure of money or property shall not constitute part of the general revenues until the ‘case to which the seized money or property relates is disposed off by acourt and the seized money or property is ordered by the court 10 be forfeited to the Government. (2) Money or property which is seized from a third party shall be placed under contingent assets. 149. The moneys in the Contingency Fund shall be used only in the circumstinces specified in subsections (1) and (2) of section ‘twenty-four of the Act. Caskingof Government cheques Maintenance of cash Investment of idle and surplus funds Third party deposits Deposits from seizure of money oF eo, en st Useof Contingency Find1652 Useot money in ‘working accounts Restrictions regarding signingof Joans and agreements receivables inking Project books and records Statutory Instruments ___\7thNovember, 2006 150. The moneys in a working account referred to in section twenty-five of the Act shall be used only for the purposes authorised by the Secretary to the Treasury. 151. (1) Ministries, Provinces and Spending Agencies shall not enter into any agreement or incur any loan on behalf of the Government without the express written authority of the Minister and the Attorney-General. (2) The controlling officer of a Ministry, Province or Spending ‘Agency shall ensure that all contracts entered into in which Government has an interest are cleared by the Attorney-General prior to signing, 152. (1) Controlling officers shall ensure that — (@ the value of loans, grants, donation and receivables in kind are determined and included in ‘the estimates of revenue and expenditure in the financial year; and (®) donations in kind are valued by a qualified Government or private valuer appointed with the approval of the Secretary to the Treasury. 2 Where’Joans, grants and donations are received after the ‘budget is finalised, the controlling officer shall submit an application to the Secretary to the Treasury for supplementary estimates to regulatise the expenditure. 153. (1) The Secretary to the Treasury shall ensure that controlling officers— (@) maintain books and records in respect of all projects and that audited financial statements are submitted to the ‘Treasury for inclusion in the financial report; and (®) that assets of completed projects, including buildings, plant, vehicles, furniture, fittings and equipment are recorded and handed over to the Government or other appropriate authorities within the time frame specified in the ‘agreement relating to the project. (2) Where no time frame is specified in the agreement, project assets shall be handed over within three months from the date of the closure of the project. (3) Unexpended balances standing to the credit of any project account shall form part of the general revenues.17th November, 2006 Statutory Instruments 1653 154, Project funds which have been paid into the Treasury ‘Account shall be released when required to the appropriate project bank account. PART XI SarEs ‘155. In this Part “safe” means a secure container issued by ‘the Government in which public moneys, articles and accountable documents are to be kept. 156. (1) The Secretary to the Treasury shall be responsible for the procurement of safes. (2) The Strongroom Superintendent shall distribute safes to ‘Ministries, Provinces and Spending Agencies for use in their offices. 157. Controlling officers shall ensure that'safes are secured by ‘the accounting officer responsible for them. 158. Accounting officers shall be personally responsible for the keys of the safes in their charge. 159. (1) Where asafe or vault is issued to a ministry, Province or Spending Agency by the Strongroom Superintendent, only one set of keys shall be allocated to a controlling officer. (2) Where a safe has a combination number, the number shall not be communicated to any officer except the officer responsible for the safe. 160. Akey toa safe shall not be handed over to a person who is not the designated holder of the key and a safe shall not be opened except by the officer responsible for it. 161. (1) The officer responsible fora safe shall hold only the original key to the safe which is issued by the Secretary to the ‘Treasury. (2) Inno circumstances shall an officer have duplicate keys made, 162. Except as may be otherwise authorised, all spare keys of ‘safes shall be held by the Secretary to the Treasury. 163. (1) Inspection reports by internal auditors or other inspecting officer shall include a list of safes in the offices under pales 2) _ The serial numbers of te keys tothe safes shall be recorded in such reports, Project funds Definition of Responsibility for obtaining safes Care of safes for safe keys Allocation of safe keys Prohibition of handing over of safe keys, Officer to hold original safe keys Control over spare keys Inspection reports1654 ‘Transfers of safes within Ministries ‘Transfers of safes between Ministries Loss of safe keys Prohibition ofkeeping of private moneys in publie safes Register of articles cheeks of Cash in wansit Statutory Instruments 17th November, 2006 164, The transfer of safes between departments within the same Ministry or Spending Agency shall be notified to the Secretary to the Treasury immediately after the transfer is made. 165. Safes shall not be transferred between Ministries, Provinces and Spending Agencies without the prior written approval of the Secretary to the Treasury. 166. (1) When the key to a safe is lost the loss shall be reported to the controlling officer who shall ensure that the safe is sealed and the room in which itis kept is locked and the loss shall ‘be promptly reported to the police, (2) The officer responsible for the safe custody of the key may be called upon to make good the cost of repairs and replacement of the key. @) A Ministry, Province and Spending Agency shall be responsible for the cost of repairs and replacement of the key (s) ‘where no officer is responsible for the loss, 167. (1) No private money or articles may be kept in a safe -ovided for the safe keeping of public moneys. (2) Where private money or articles are found in a safe the ‘money or articles shall be seized and forfeited to the Government. (3) Any private money forfeited for non-compliance with this’ regulation shall be receipted as miscellaneous revenue and the articles shall form part of the Government assets. 168. (1) A register shall be kept of articles other than cash, receipt forms and other accountable documents deposited in a safe. (2). Any officer, other than the holder of the safe key, who deposits or withdraws an article in a safe shall sign the register referred to in subregulation (1) at the time of depositing or withdrawing the article from the safe. 169. (1) Supervisors of officers responsible for safes shall verify the contents of the safe at least once a week. (2) The register shall be initialled on each occasion of check. 170, Whenever cash is taken to or collected from a bank of other office, the responsibility for the safe custody of the cash in transit shall rest with the officer charged with conveying the cash to or from the bank or other office.17th November, 2006 Statutory Instruments PART XIII Losses oF PupLic Moxey AND STORES 171, Losses of public money and stores may occur when an officer, through wilful default or gross neglect of duty— (@ fails to collect any money, whether revenue or other ‘payment, due to the Government; (®) makes, causes or permits an unauthorised, unvouched or incorrect payment of public money for which the officer is responsible in circumstances which include fraud, ‘forgery, misappropriation, theft and burglary; (©) causes or permits damage to or destruction ot loss of any public buildings, equipment, vehicles, stores, fittings or furniture; (@) causes or permits personal injury or damage to property in circumstances which render the Government liable to a third party in respect of such injury or damage; or (© causes the Government to incur expenses in compensation to third parties as a result of the officer’s neglect of duty or unlawful act. 172. (1) Immediately a loss of any kind is discovered, the officer in whose office the loss occurred shall by the quickest means possible inform the officer's immediate supervising officer of the nature, extent and date ofthe loss and the supervising officer shali report the loss to the controlling officer: Provided that where a verbal report is made it shall as soon as practicable be confirmed in writing (2) Where the controlling officer considers that the circumstances of the case make it necessary to do so, as in the case of burglary, the loss shall be reported to the police, (8). The officer investigating the loss shall, at the conclusion of therinvéstigation, report the loss on Accounts Form 92 (Loss of Public Money/Stores Form), attaching a police report where necessary. 173. (1) The controlling officer shall consider the ease in the light of the circumstances set out in Accounts Form 92. @)_ Ifthe controlling officer considers that there is no case for charge of wilful default or gross neglect of duty against any officer, the controlling officer shall recommend to the Secretary to the ‘Treasury that the loss should stand as a charge against public funds. 1655 Loss of public mponey and stores Investigation of loss for write-off of loss1656 Report by controlling officer Write-off by the Treasury ‘Assessment ofelaim faulting officer Decision of Secretary to the Statutory Instruments 17th November, 2006 (3) The original copy of Accounts Form 92 shall be sent to the ‘Secretary to the Treasury and a copy shall be sent to the Auditor General. 174, Ifthe controlling officer considers that the loss was due to the wilful default or gross neglect of duty of any officer, the controlling officer shall forward the controlling officer's recommendations on ‘Accounts Form 92 to the Secretary to the Treasury, with a copy to ‘the Auditor-General indicating whether in the controlling officer's ‘opinion, there isa case for a surcharge against the officer or officers concerned, 175, The Secretary to the Treasury may authorise the loss, or part thereof, to be charged to public funds if the Secretary to the ‘Treasury considers that there has been no wilful default or gross neglect of duty by any officer. 176, If the Secretary to the Treasury considers that the loss ‘was due to the wilful default or gross neglect of duty on the part of an officer, the Secretary to the Treasury shall assess the amount to be attributed to the default or negligence of the officer and send a notice of assessment of claim and the amount of the claim to the officer who caused the loss: Provided that in no circumstances will the assessment exceed the amount of the actual loss suffered. 177. (1) The officer to whom the notice of assessment of claim is sent may, within twenty one days of receipt of the notice make representations in writing to the Secretary to the Treasury, through the controlling officer— (@) admitting the liability in full; () admitting the liability in part; or (©) denying the liability. (2) In the cases of paragraphs (b) and ( c) the officer may ‘make representations with a view to obtaining a full or partial cancellation ofthe liability attributed in the notice of assessment to the officer’s own wilful default or gross neglect of duty. 178. (1) If the Secretary to the Treasury does not receive representations within twenty-one days, or if the Secretary to the ‘Treasury receives representations from the officer and considers that the officer should be liable in terms of the notice of assessment, the Secretary to the Treasury shall determine whether the officer shall pay in full or whether the libility shall be reduced in the light of the representations made by the officer.17th November, 2006 ___ Statutory Instruments 1657 (2) _ In either case the Secretary to the Treasury shall send a. demand in writing for payment of the sum for which the Secretary to the Treasury considers the officer liable and shall require the officer to pay the sum demanded within ninety days pf receipt of a demand. 3) Ifthe Secretary to the Treasury considers that the circumstances ofthe case justify a cancellation ofthe full assessment against the officer, the Secretary to the Treasury shall notify the officer of the cancellation in writing. 179. Ifafter receipt of the demand for payment, the officer Aémissionot admits Jiability in writing, the sum assessed shall be recovered from jiability ‘the officer’s salary or pension, or both. 180. (1) __If-an officer to whom a demand has been sent Failure to fails to admit liability within ten days after receipt of the demand, si the Secretary to the Treasury shall require the officer to pay the" sum demanded within ninety days and send a copy of the demand ‘to the Attorney General for the recovery of the sum demanded as acivil debtto the Republic, 181. Where the sum assessed is to be recovered from the Monthly officer’s salary the Secretary to the Treasury shall, on the deductions recommendation of the controlling officer, determine the monthly rate of deductions. 182. (1) If an officer who has admitted liability and Officers consented to the recovery of an assessed sum dies, resigns or is lewvisgthe dismissed from the service of the Government before the full sum —Sevice ‘has been recovered, the balance due to the Government shall be a charge against any sum owing to the officer or to the officer's estate. (2) Where an officer resigns or leaves the service of the Government and there is no money due to the officer from the Government from which the assessed sum can be recovered and the officer fails to pay the balance still due, the Secretary to the ‘Treasury shall refer the matter to the Attomey General for recovery as pcivil debt to the Republic. PART XIV HANDING AND TAXING OVER 183. (1) Where an accounting officer is transferred from Handing and cone office ot station to another or is leaving the service of the king over Government, the officer shall hand over to the officer taking over, ° —_Handing and of safe keys handing over Handing over certificate Witness t0 handover Attachment of property of officer a8 security Statutory Instruments \7th November, 2006 any safe, public moneys and stores, books of accounts and other records under the officer's charge within fourteen days of receipt of notification of the transfer or prior to Provided that, where the accounting officer is under investigations for any reason, the officer shali immediately hand over any safe, public moneys and stores, books of accounts and other records under such officer’s charge. (2) The detailed procedures to be followed when handing and taking over an office shall be as determined by the Secretary tothe Treasury. 184. The key of each safe under the charge of an accounting officer who is leaving the office’shall be handed to the officer taking over as soon es the contents have been verified. 185. (1) Any discrepancies revealed in the course of handing over shall be acknowledged in writing by the officer who is handing over. (2) The officer taking over shall make a report of the discrepancies referred to in subregulation (1) to the officer's controlling officer. 186. (1) On completion of the hand over, a certificate shall be signed by both the officer handing over and the officer taking over to the effect that the requirements of this Part have been fulfilled (2) One copy of the certificate shall be kept by the officer taking over and the other shall be retained by the officer who has handed over. 187, An officer from internal audit unit shall witness the handover and sign the handing over certificate. PART XV ‘SURCHARGE 188. (1) Where an officer misappropriates or converts to the officer’s own use any public funds or stores and an action is brought against the officer at the suit of the Attorney General, property belonging to the officer shall remain attached as security pending the determination of the proceedings in court. (2) The Secretary to the Treasury shall maintain a record of such attached property pending the determination of the proceedings in a court of law.17th November, 2006 Statutory Instruments 1659 (3) The attachment of the property of an officer as security shall be dealt with by the Attorney General in accordance with section thirty-three of the Act. PART XVI ‘ConTRot OF StaTUTORY CORPORATIONS 189, Notwithstanding the provisions of any other written law, the Secretary to the Treasury shall ensure that the Ministry responsible for finance is represented on the board of directors of all statutory corporations. 190. (1) The Secretary to the Treasury shall ensure that ‘grants released to statutory corporations are appropriated for the purposes for which they are released through guidelines issued by the Secretary to the Treasury. (2). The Secretary to the Treasury may suspend the release of further grants to a statutory corporation which does not comply ‘with the conditions set for the appropriation of such grants. 191, Where there is evidence that moneys released from the ‘Treasury have been used for purposes other than those for which the moneys were intended, the Secretary to the Treasury shall institute investigations into the matter and where it is proved that the moneys have been used for purposes other than those for which ‘they were intended, the Secretary to the Treasury shall recommend to the Minister appropriate sanctions shall be taken against the statutory corporation. 192. (1) The Secretary to the Treasury shall ensure that the assets vested in a statutory corporation by the Government under the provisions of any written law are valued by a qualified valuer and the value of such assets shall be added to the accumulated fund of the statutory corporation. (2) Onthe transfer of assets vested in a statutory corporation, the value of the assets so transferred shall be reflected in the financial report of the statutory corporation . (3) Whenever projects are completed, the project assets, including buildings, plant, vehicles, furniture, fittings and equipment shall be recorded and handed over to a statutory corporation or other appropriate authorities within the time frame specified in the agreement relating to the project. Representation ‘on statutory ‘corporations Coneitions fr appro- ration of| ‘rants Action by Secretary to the Treasury misapplication of grants ‘Transfer of assets 10 statutory corporations1660 Financial statements and records of investments Protection of assets of statutory corporations Recovery of outstanding. moneys Auditor “General to audit the fccounis of statutory rporations 378 Cap, 378 Statutory Instruments 17th November, 2006 193. (1) The Secretary to the Treasury shall ensure that a record of all moneys invested in statutory corporations is maintained and that such statutory corporations are managed efficiently so that they yield reasonable dividends to Government. (2) Thechiefexecutive officer ofa statutory corporations shall ensure that— (@) management reports and retums are submitted to the Secretary to the Treasury at such intervals as the Secretary to the Treasury may determine; and (®) they provide such other information as the Secretary to ‘the Treasury or an officer authorised in writing by the Secretary to the Treasury may require. (3) The board of directors of a statutory corporation shall, at the end of every financial year, furnish the Secretary to the Treasury ‘with audited financial statements for each financial year. (4) Wa chief executive officer of a statutory corporation fails to submit any report or returns as required under paragraph (a) of subregulation (2), the Secretary to the Treasury shall bring this matter tothe attention of the Board of such a statutory corporation. 194, The board of a statutory corporation shall ensure that adequate internal control systems exist to safeguard the assets of the statutory corporation against misuse or theft. 195. The Secretary to the Treasury shall ensurg that moneys owing to the Government from a sale of statutory corporation to private investors are collected, receipted and banked. PART XVII ‘Auprr oF StaruToRY CORPORATION 196. (1) The Auditor General shall be responsible for auditing the accounts of any statutory corporation in accordance with the provisions of the Public Audit Act. (2) The Auditor-General may in accordance with the provisions of section six of the Public Audit Act, secure the services of agents ‘or specialist consultants to assist the Auditor General in the execution of such duties.17th November, 2006 Statutory Instruments 1661 197. Any public officer, agent or specialist consultant authorised by the Auditor General shall have access to all the books, records, returns, reports and other documents relating to the accounts of a statutory corporation as the Auditor- General considers necessary. PART XVII Reports 198. (1) _ Within four months after the end of the financial year, Statements of revenue and expendityre and below-the-line-accounts together with balance sheets of all funds, shall be submitted in quadruplicate by all accounting units to the Ministry responsible for finance for inclusion in the Financial Report. 42) _Allstatements, balance sheets and accounts shall be duly signed by controlling officers. @) Statements of revenue and expenditure together with the abstracts shall be submitted to the Auditor-General within six months after the end of each financial year. (@)__ Audited statements of revenue and expenditure shall be ‘consolidated into the financial report which shall be tabled in the National Assembly by the Minister within nine months after the end of each financial year. 199. (1) In accordance with Article one hundred and twenty- ‘one of the Constitution, the Auditor-General shall submit a report to the National Assembly on the accounts of each financial year not later than twelve months after the end of that financial year. (2) _Thereport referred to in subregulation (1) shall be examined by the Public Accounts Committee of the National Assembly. PART XIX PUBLIC ACCOUNTS COMMITTEE 200, (1) The Public Accounts Committee shall examine the accounts showing the appropriation of the sums approved by the National Assembly to meet public expenditure and such other accounts laid before the National Assembly as the Committee may deem fit. (2) Controlling officers shall submit memoranda to the Public Accounts Committee through the Clerk of the National Assembly within fourteen days before the notified date on which the Public Accounts Committee is to sit. ‘Access 10 records by ageat report Axditor- General's report Cap. 1 Examination of accounts by Public Accounts Committee1662 Statutory Instruments 17th November, 2006 Treasury Minute Revocation of statutory instrument No. 398 of 1969 (3) The memoranda shall provide explanations on issues raised in the Auditor-General’s Report. (4) The Public Accounts Committee may summon persons to appear before itor call for papers and records relating to any matter under consideration. (5) The Public Accounts Committee shall cause controlling officers to appear before the Committee to speak to their ‘memoranda. (©) The Public Accounts Committee, on completion of the examination shall prepare a report with observations and recommendations to the National Assembly. (1) This report shall be printed and made available to the public after adoption by the National Assembly. 201. (1) The Secretary to the Treasury shall prepare the Treasury Minute which is an action taken report on the recommendations contained in the report of the Public Accounts ‘Committee, (2) Within sixty days of the tabling of the report of the Public ‘Accounts Committee, the Minister shall table the Treasury Minute before the National Assembly. 202, The Financial Regulations, 1969, are hereby revoked. NP. MacAnDe, Minister of Finance and LusaKa National Planning 10th November, 2006