Public Finance (Control And Audit) Act (Gibraltar)

Public Finance (Control And Audit) Act

Published: 1977-03-15

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Public Finance (Control and Audit)

1977-09

PUBLIC FINANCE (CONTROL AND AUDIT) ACT

Principal Act

Act. No. 1977-09 Commencement 15.3.1977

Assent 15.3.1977

Amending

enactment

Relevant current provisions Commencement

date

LN. 1978/017 Sch. 1

Act. 1978-21 ss.10(1) and 16

LNs. 1978/117 Sch. 1

1980/103 Sch. 1

Act. 1982-05 ss.2, 6, 9, 10, 11, 12(1), 16(2), 18(2),

32(1), 42(1), 47(3), 55(2), 56(1), 57,

58, 60-64, 65(1), 75(2) and Sch. 1

LNs. 1987/176 s 12(e)(vii) 1.1.1988

Act. 1988-23 s. 12(e)(viii) 1.12.1988

LNs. 1988/054 s 12(e)(viii) 21.4.1988

1988/131 s 12(e) 1.12.1988

1989/047 Schedule 1 1.4.1989

Act. 1989-06 ss. 6(2), 23(2) and 23(1)(a)(b) 2.3.1989

1991-04 ss.18, 20 and 59 1.4.1990

LNs. 1991/118 s 12(e)(x) 1.4.1991

1992/030 s 12(e)(x) 1.1.1992

1992/062 s. 12(e)(xi) 1.4.1992

1993/163 s. 12(e)(xi) 1.4.1993

1993/171 s. 12(e)(xiii) 1.1.1994

1993/169 s. 12(e)(xii) 1.4.1993

1995/175 s. 75 1.1.1996

1997/045 s. 12(e) and Sch. 24.4.1997

Act. 1999-38 s 6(2)(b) & (c) 1.9.1991

LN. 2005/164 * s.12(e) & Sch. 1 8.12.2005

Act. 2007-17 ss. 3, 4(1), 5(1) & (2), 7(1), 8(2) & (3),

9(2), 10(1) & (2), 12, 13(1) & (2),

16(2), 17(1) & (2), 21(1) & (2), 22(1),

28(1) & (2), 29, 30(1), 32(1) 33(2), 35,

37(1), 38, 41, 42(1), (3) & (4), 44(2) &

(3), 45(1), 47(3)(d), 49, 50(1), 58,

65(1), 66, 67, 68(1) & (2), 69, 71,

74(1), 75(3),

14.6.2007

LN. 2007/118 Corrigendum

Act. 2008-17 ss. 2, 7(1), 28(1) & (3), 33(2), 41 &

* Corrigendum published see LN. 2007/118

Public Finance (Control and Audit)

1977-09

44(2) 13.11.2008

2009-51 ss. 76 - 82 1.12.2009

2011-02 1 ss. 17A to 17D 1.4.2009

“ ss. 18(3) & (4), 19(1), 20(d), 23(1) &

(2), 52(1), 62, 63, 64, 70(1) & (2),

74(1) & Sch. 3

10.2.2011

LN. 2011/062 Sch. 3 12.5.2011

EU Legislation/International Agreements involved:

Directive 2006/111/EC

English sources

None Cited

1 Any expenditure funded out of revenue to which clause 2 applies incurred prior to the

commencement of this Act and the coming into operation of new sections 17A to 17D of the

Principal Act, or to be incurred prior to the 1 st of April 2011, for a use and in a manner

that would have been lawful but for this Act shall be deemed to have been appropriated by

Parliament to those uses and this Act shall constitute an appropriation law of all such

expenditure which shall thus be deemed to have been authorised and prescribed by this

Act.

Public Finance (Control and Audit)

1977-09

Previous number New number Remarks

1-9 Unchanged

9A 10

9b 11

10 12

11 13

12 14

13 15

14 16

15 17

16 18

17 19

18 20

19 21

20 22

21 23

22 24

23 25

24 26

25 27

26 28

27 29

28 30

29 31

30 32

31 33

32 34

33 35

34 36

35 37

36 38

37 39

38 40

39 41

40 42

41 43

42 44

43 45

44 46

45 47

46 48

47 49

48 50

49 51

50 52

51 53

Public Finance (Control and Audit)

1977-09

52 54

53 55

54 Repealed

55 56

56 57

57 58

58 59

59 Repealed

60 Repealed

61 Repealed

62 60

63 61

64 62

65 63

66 64

67 65

68 66

69 67

70 68

71 69

72 70

73 71

74 72

75 73

76 74

77 75

First Schedule Schedule 1

Second Schedule Schedule 2

Public Finance (Control and Audit)

1977-09

ARRANGEMENT OF SECTIONS.

PART I.–PRELIMINARY AND GENERAL.

Section

1. Short title.

2. Interpretation.

3. Minister responsible for finance to have the management

Consolidated Fund and Improvement and Development Fund.

4. Authorization of expenditure.

PART II.–THE CONSOLIDATED FUND.

5. Custody and investment of moneys accounted for in the

Consolidated Fund.

6. Statutory payments.

7. Authorization of expenditure in advance of appropriation under

section 70 of the Constitution.

8. Borrowing powers.

9. Guarantees.

10. Guarantees for supplier finance.

11. Payments under guarantees.

12. Advances.

13. Imprests.

14. Refunds, etc.

15. Erroneous receipts.

16. Limitation as to trusts.

17. Receivers of revenue.

PART IIA – REVENUE OF PUBLIC UNDERTAKINGS

17A. Revenue of certain public undertakings to be paid into Consolidated

Fund.

17B.

17C.

17D.

PART III.–SPECIAL FUNDS.

18. Special Funds.

19. Regulations for Special Funds.

20. Revenue of Special Funds.

21. Investment of moneys in Special Funds.

22. Accounts and balances of Special Funds.

23. Dissolution of Special Funds.

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1977-09

PART IV.–THE IMPROVEMENT AND DEVELOPMENT FUND.

24. Interpretation.

25. The Fund not part of the Consolidated Fund.

26. Revenue of the Fund.

27. Use of the Fund.

28. Annual estimates of the Fund. .

29. Supplementary estimates.

30. authorization of expenditure in advance of appropriation.

31. Conditions attached to grants or loans.

32. Development warrant.

33. Re-allocation.

34. Accounts and audit.

35. Investment of moneys accounted for in the improvement and

Development Fund.

PART V.–DEPOSITS.

36. Deposits.

37. Investment of deposits.

38. Deposits may be used to finance advances.

39. Unclaimed deposits.

40. Accountant General to administer deposits.

PART VI.–ESTIMATES AND SUPPLY.

41. Annual Estimates.

42. Controlling officers.

43. Disbursement of and accounting for expenditure on Consolidated

Fund Services.

44. Contingencies Fund.

45. Re-allocation.

PART VII.–ACCOUNTING OFFICERS AND ACCOUNTS.

46. Accountant General.

47. Powers and duties of Accountant General.

48. Duties of accounting officers.

49. Accounting officers not permitted to open bank accounts.

50. Overdrafts on public or official bank accounts.

51. All public moneys to be accounted for in the public accounts of

Gibraltar.

52. Annual Accounts.

53. Annual accounts of Special Funds.

54. Valuation of assets, etc.

PART VIII.–THE PRINCIPAL AUDITOR.

Public Finance (Control and Audit)

1977-09

55. Office of Principal Auditor.

56. Powers of Principal Auditor.

57. Nature of audit.

58. Notification of irregularities.

59. Delegation.

PART IX.–EXAMINATION AND AUDIT OF THE

ACCOUNTS OF CORPORATE AND SIMILAR BODIES.

60. Application of Part IX.

61. Power of Principal Auditor to audit.

62. Reports on accounts of statutory and other bodies.

63. Observations of bodies corporate, etc. on reports of the Principal

Auditor to be obtained.

64. Reports on accounts of statutory and other bodies to be laid before

the Parliament.

65. Audit fees.

PART X.–ABANDONMENT OF CLAIMS, WRITE-OFFS

AND SURCHARGE. ,

66. Abandonment of claims and write-off.

67. Disposal of surplus stores to certain organizations.

68. Surcharge.

69. Notification of surcharge.

70. Appeal against surcharge.

71. Withdrawal of surcharge.

72. Recovery of surcharge.

73. Surcharge to be a debt to the Government.

PART XI.–REGULATIONS.

74. Regulations by the Minister responsible for finance.

75. Public procurement.

PART XII–FINANCIAL RELATIONS BETWEEN THE GOVERNMENT

AND PUBLIC UNDERTAKINGS

76. Interpretation of Part.

77. Transparency of financial relations.

78. Application of section 77.

79. Maintenance of separate accounts.

80. Exemptions.

81. Supply of information to the European Commission concerning the

information referred to in section 77.

82. Public undertakings in the manufacturing sector.

Public Finance (Control and Audit)

1977-09

SCHEDULE 1.

Special Funds.

SCHEDULE 2.

Purposes for which the improvement and Development Fund may be

applied.

SCHEDULE 3.

Public Finance (Control and Audit)

1977-09

Public Finance (Control and Audit)

1977-09

AN ACT TO PROVIDE FOR THE MANAGEMENT AND CONTROL OF

THE PUBLIC FINANCES OF GIBRALTAR, FOR FINANCIAL AND

ACCOUNTING PROCEDURES, FOR THE AUDIT OF PUBLIC

ACCOUNT AND THE ACCOUNTS OF CERTAIN STATUTORY AND

OTHER CORPORATE BODIES AND FOR MATTERS CONNECTED

THEREWITH AND INCIDENTAL THERETO.

PART I.–PRELIMINARY AND GENERAL.

Short title.

1. This Act may be cited as the Public Finance (Control and Audit) Act.

Interpretation.

2. In this Act, unless the context otherwise requires,–

“accounting officer” means any public officer who is concerned or

entrusted with or responsible for–

(i) the collection, receipt, custody, issue or payment of

public moneys;

(ii) the receipt, custody, issue, sale, transfer or disposal of, or

the accounting for, any stamps, securities, stores or any

other Government property of whatsoever kind;

(iii) any monetary or financial responsibilities connected with

or arising from his official duty,

and includes a receiver of revenue and a controlling officer appointed in

accordance respectively with section 17 or 42;

“appropriation law” means the law enacted in respect of each financial

year to provide for the issue from the Consolidated Fund and from

the Improvement and Development Fund of the sums necessary to

meet expenditure (other than expenditure charged upon the

Consolidated Fund by the Constitution or any other law) in that

year and includes any supplementary appropriation law;

“Consolidated Fund” means the Consolidated Fund Established by

section 67 of the Constitution;

“Consolidated Fund Services” means the services of the Government of

Gibraltar the expenditure on which is charged on or payable out of

the Consolidated Fund under the Constitution or any other law

other than an appropriation law but including this Act;

Public Finance (Control and Audit)

1977-09

“Improvement and Development Fund” means the special fund

designated the Improvement and Development Fund in Schedule I;

“public moneys” means all revenue, grants, loans, trust and other moneys

raised or received by or on account of the Government and all

stamps, bonds or debentures and other securities whatsoever held

by or on account of the Government and includes moneys received

or held whether on trust or otherwise, and whether temporarily or

otherwise, by any public officer in his official capacity either alone

or jointly with any other person, whether a public officer or not, for

purposes other than the purposes of the Government;

“public stores” means all chattels of whatsoever nature the property of or

in the possession or under the control of the Government;

“revenue” means all tolls, taxes, imposts, rates, duties, fines, fees,

penalties, rents and dues and all other receipts of the Government

from whatsoever source arising’

“written law” means any written law for the time being in force in

Gibraltar.

Minister responsible for finance to have the management of

Consolidated Fund and Improvement and Development Fund.

3. The Minister responsible for finance shall so supervise the finances of the

Government as to ensure that a full account thereof is made to the

Parliament and for such purposes shall, subject to the provisions of the

Constitution and of this Act, have the management of the Consolidated

Fund and the Improvement and Development Fund and the control and

direction of all matters relating to the financial affairs of the Government.

Authorisation of expenditure.

4.(1) On the coming into force of an appropriation law the Financial

Secretary shall by general warrant under his hand authorize the Accountant

General –

(i) to pay out of the Consolidated Fund such sums as may be

required to meet expenditure chargeable upon the

Consolidated Fund under such law; and

(ii) subject to the provisions of Part IV to pay out of the

Improvement and Development Fund such sums as may

be required to meet expenditure chargeable upon the

improvement and Development Fund under such law:

Public Finance (Control and Audit)

1977-09

Provided that it shall be within the discretion of the Minister responsible for

finance to limit or suspend at any time any expenditure so chargeable under

an appropriation law if in his opinion the public interest so requires.

(2) Every appropriation by the Parliament of public moneys for the

service of a financial year and every general warrant issued under this

section shall lapse and cease to be of any effect at the close of that year.

PART II.–THE CONSOLIDATED FUND.

Custody and investment of moneys accounted for in the Consolidated

Fund.

5.(1) All sums accounted for in the Consolidated Fund shall be kept with

such bank or banks as the Financial Secretary shall from time to time direct

or with the Crown Agents.

(2) The Financial Secretary may authorize the investment of moneys

forming part of the Consolidated Fund–

(a) with any bank either at call or subject to notice not exceeding

twelve months or with the Crown Agents;

(b) in any of the investments authorized by any written law for the

investment of trust funds;

(d) as otherwise authorized by any written law or by resolution of

the Parliament, and such investments, together with any

interest received therefrom, shall form part of the Consolidated

Fund.

Statutory payments.

6.(1) The Accountant General shall pay out of the Consolidated Fund such

sums coming in course of payment during a financial year as are required to

meet expenditure charged upon the Fund by the Constitution or by any other

written law.

(2) The sums payable by Government as an employer–

(a) in pursuance of the provisions of any Act;

(b) in respect of the transfer value of the pension rights of the

former public officers;

Public Finance (Control and Audit)

1977-09

frozen as if there had been no qualifying period for the grant of

a pension under Regulation 4(1) and (3) of the Pensions Act by

virtue of an agreement between the Government and the officer

when that officer left the Government service, and augmented

by corresponding increases in the Index of Retail Prices–

(i) on his retirement from his subsequent employment as

from the age of 55 years; or

(ii) on retirement from that employment at any time on

medical grounds; or

(iii) on death occurring before that officer reaches the age of

retirement under the Pensions Act.

shall be a charge upon the Consolidated Fund.

Authorisation of expenditure in advance of appropriation under section

70 of the Constitution.

7.(1) Where the Minister responsible for finance authorizes the

withdrawal of moneys from the Consolidated Fund under the provisions of

section 70 of the Constitution the sum or sums so authorized and withdrawn

in respect of any service of the Government shall not exceed one third of the

sum specified for such service in the Estimates presented for the current

financial year, or, if the estimates have not been presented, one third of the

sums provided therefor in the appropriation law for the financial year

immediately preceding such current year.

(2) Any sums withdrawn from the Consolidated Fund under the

provisions of subsection (1) shall be set off against the amount authorized

by the appropriation law for the current financial year upon the coming into

operation of such law.

Borrowing powers.

8.(1) Except as is otherwise provided in this section the Government shall

not borrow money except in accordance with the provisions of a written law.

(2) The Government acting by the Financial Secretary with the consent

of the Minister responsible for finance may borrow by means of advances

from a bank or from the Crown Agents such sum or sums as he may require

to meet expenditure which lawfully may be defrayed for the service of a

financial year:

Public Finance (Control and Audit)

1977-09

Provided that the total of any such sum or sums so borrowed in any financial

year shall not exceed five per cent of the total sum appropriated by law out

of the Consolidated Fund in that year.

(3) The power to borrow money conferred by any general or specific law

and the power to borrow conferred on the Government acting by the

Financial Secretary with the consent of the Minister responsible for finance

by subsection (2) may be exercised by means of a fluctuating overdraft.

(4) Repayment of the principal sum of and payment of all interest and

other charges on all money borrowed under this section is hereby charged

upon and shall be paid out of the Consolidated Fund without further

appropriation than this Act.

(5) A statement giving details of any sum or sums borrowed under the

powers conferred by subsection (2) shall be laid before the Parliament as

soon as may be practicable after the end of each quarter of the financial year.

Guarantees.

9.(1) No guarantee involving a financial liability shall bind the

Government unless such guarantee is given –

(a) in accordance with the provisions of any law; or

(b) in accordance with subsection (2).

(2) Where he has been authorized to do so by a resolution of the

Parliament, the Minister responsible for finance may in writing in the name

of and on behalf of the Government give a guarantee to any person or

persons, involving a financial liability, and a guarantee so given shall be

binding on the Government.

Guarantees for supplier finance.

10.(1) The Financial Secretary, for the purpose of any agreement for the

Government’s obtaining any goods or services wholly or partly on supplier

finance terms or on extended payment terms in respect of any service

included in the Estimates presented for the current financial year, may in

writing, in the name of and on behalf of the Government, give to any person

or persons a guarantee for the repayment of that credit, and a guarantee so

given shall be binding on the Government.

(2) Where the Minister responsible for finance gives any guarantee

under subsection (I), he shall lay on the table of the Parliament a copy of the

agreement in respect of which it has been given, and a copy of the

guarantee, at the earliest opportunity after it has been given.

Public Finance (Control and Audit)

1977-09

Payments under guarantees.

11. All money that becomes payable by the Government under any

guarantee given under section 9 or section 10 is hereby charged upon and

shall be paid out of the Consolidated Fund without further appropriation

than this Act.

Advances.

12. Subject to the provisions of this section, the Financial Secretary may, by

advance warrant under his hand, authorize the Accountant General to make

disbursements of moneys forming part of the Consolidated Fund or of other

public moneys for the purpose of making advances–

(a) on behalf of, and recoverable from, other Governments,

administrations, public corporations or institutions;

(b) to meet expenditure authorized by any loan Act in anticipation

of the receipt of any installment of the loan authorized by such

Act;

by the Government to perform functions on its behalf;

(d) to public officers for such purposes and on such terms and

conditions as may be prescribed from time to time by General

Orders or Financial Regulations or in such circumstances as the

Financial Secretary may approve;

(e) (i) the Improvement and Development Fund

(ii) the Short Term Benefits Fund

(iii) the Closed Long-Term Benefits Fund

(iv) the Open Long-Term Benefits Fund

(v) any other Special Fund where such advances are

recoverable before the close of the financial year in

which the advance is made.

(f) to the Director of Labour and Social Security for use by him in

such cases as may be prescribed by Financial Regulations.

Imprests.

Public Finance (Control and Audit)

1977-09

13.(1) The Financial Secretary may by imprest warrant under his hand

authorize the Accountant General to issue moneys from the Consolidated

Fund by way of imprests to public officers for any purpose specified in

General Orders or Financial Regulations.

(2) Every public officer to whom an imprest has been issued shall

account for and retire such imprest not later than the last business day of the

financial year in which it was issued unless the imprest warrant otherwise

requires or unless the Financial Secretary otherwise directs.

(3) Where any public officer to whom an imprest has been issued fails to

account for and retire such imprest as provided by subsection (2), the

Accountant General shall forthwith recover the amount of the imprest by

deduction from the salary or other emoluments of such public officer.

Refunds, etc.

14. Where any written law provides for the payment of any refund, rebate or

drawback in respect of money paid to the Government the amount of such

refund, rebate or drawback as the case may be shall where such money has

been paid into the Consolidated Fund, be charged on that Fund without

appropriation.

Erroneous receipts.

15. Where any moneys have been received in error in the Consolidated Fund

the Accountant General may authorize the repayment from the Fund of such

moneys.

Limitation as to trusts.

16.(1) Nothing in this Act shall extend to abridge or alter the terms of any

trust or shall be construed as authorizing the making of any regulations or

the giving of any directions or instructions requiring any person to obey such

regulations, directions or instructions in relation to moneys held on trust

which contravene or are inconsistent with the terms of such trust.

(2) Except as otherwise provided in any written law, no public officer

shall accept appointment in his official capacity as a trustee without the

written authority of the Financial Secretary and any appointment contrary to

this section shall be void.

Receivers of revenue.

17.(1) The Financial Secretary shall appoint in respect of each item of

revenue for any financial year a receiver of revenue for the collection of and,

subject to the provisions of this Act and any regulations made or instructions

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issued thereunder, for the accounting for all moneys received for the credit

of such item.

(2) A public officer designated by the title of his office in the annual

estimates of revenue for any financial year to be the receiver of revenue in

respect of any item of revenue shall be deemed for the purpose of subsection

(1) to have been appointed by the Financial Secretary and such designation

shall constitute sufficient notification of the appointment.

PART IIA – REVENUE OF PUBLIC UNDERTAKINGS

Revenue of certain public undertakings to be paid into Consolidated

Fund.

17A. Notwithstanding any provision of any other enactment to the

contrary but subject to section 17C below the revenues of the public

undertakings listed in Schedule 3 shall constitute revenue of and be paid into

the Consolidated Fund.

17B. The Minister may by Legal Notice published in the Gazette add

public undertakings to and remove public undertakings from Schedule 3.

17C. Subject to section 17D any revenue of a public undertaking listed in

Schedule 3 which has been paid to it from funds voted out of the

Consolidated Fund shall not be deemed to constitute the revenue of the

Consolidated Fund for any purpose.

17D. All expenditure incurred by a public undertaking listed in Schedule

3, including expenditure funded out of monies paid to it from funds voted

from the Consolidated Fund and to which section 17C thus applies, shall

require to be authorised by an appropriation law and the provisions of

sections 68, 69 and 70 of the Constitution shall apply thereto mutatis

mutandis as if the revenue and expenditure of such undertaking were the

revenue and expenditure of Gibraltar.

PART III.–SPECIAL FUNDS,

Special Funds.

18.(1) The funds specified in Schedule 1 shall be special funds.

(2) Every sinking fund provided for in a written law authorizing the

Government to borrow any money shall be a special fund.

(3) The Minister responsible for finance may by notice in the Gazette–

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1977-09

(a) declare any fund established under any written law to be a

special fund; and

(b) establish such other special funds as he may consider necessary

and expedient,

and upon publication of any such notice any special fund specified therein

shall be added to Schedule 1.

(4) The Minister responsible for finance may in any notice declaring or

establishing a special fund, or, in a subsequent notice, direct that such

special fund shall be a fund to which advances may be made under section

12(1) and such fund shall be included in paragraph (e) of that subsection.

Regulations for Special Funds.

19.(1) The Minister responsible for finance may make regulations for the

purposes for which a special fund may be used, for the manner in which

such fund shall be administered and for the appointment of a controlling

officer to control and account for such fund.

(2) Any regulations made under subsection (1) shall–

(a) in the case of a special fund established under any written law

be in addition to and not in conflict with the provisions of the

law establishing such fund; and

(b) in the case of a special fund consisting in whole or in part of

moneys arising from any gift, trust or bequest be in addition to

and not inconsistent with the wishes, expressed or implied, of

the donor or testator as the case may be.

(3) The provisions of this section shall not apply to the improvement

and Development fund.

Revenues of Special Funds.

20. Notwithstanding the provisions of any other Act, the revenue of a

special fund established under any written law or under the privisions of

section 18(3)(b) shall, in addition to any monies which may accumulate

thereto pursuant to such law, consist of–

(a) any monies appropriated thereto by the Parliament;

(b) any interest or dividend which may accrue from any deposit or

investment of monies forming part of such fund;

Public Finance (Control and Audit)

1977-09

arising from the operation of the undertaking to which the fund

relates;

(d) any monies declared by the Minister responsible for finance to

form part of such fund; and

(e) any monies transferred to the fund from any other special fund.

Investment of moneys in Special Funds.

21.(1) Subject to the provisions of this Act and any other written law the

Financial Secretary may authorize the investment of moneys standing to the

credit of a special fund, and not for the time being required for the purposes

of that fund, in like manner to that permitted by section 5(2) in respect of the

Consolidated Fund.

(2) The Financial Secretary may, in respect of a special fund other than

the Improvement and Development Fund, delegate to the Accountant

General or to the Controlling Officer of that fund by writing under his hand

the powers conferred upon him by subsection (1).

Accounts and balances of Special Funds.

22.(1) A special fund shall be kept in a separate account by the Accountant

General or, where under any law or by virtue of regulations made under

section 19 some other public officer is appointed by the controlling officer,

by that other public officer:

Provided that it shall be lawful for the Accountant General with the consent

of the Financial Secretary to keep the account on behalf of such other public

officer.

(2) A special fund shall not form part of the Consolidated Fund and

neither the receipts nor accruals of a special fund nor any balance of moneys

standing to the credit of a special fund at the close of a financial year shall

be paid into the Consolidated Fund but shall be retained in that fund for the

purposes of such fund.

Dissolution of Special Funds.

23.(1) Subject to the provisions of section 16 if–

(a) the moneys in a special fund are exhausted and no legal

provision exists whereby any further moneys may be paid into

the fund; or

Public Finance (Control and Audit)

1977-09

(b) the purposes for which a special fund was established are

fulfilled or cease to exist and in the opinion of the Minister

responsible for finance there is no likelihood that any purposes

for which such fund could be lawfully used will arise in future,

the Governor may, by notice, dissolve such fund.

(2) Any money or other assets remaining in a special fund dissolved

under subsection (1)(b) shall as the Minister responsible for finance may

direct into or transferred to the Consolidated Fund or into or to a Special

Fund established by or in pursuance of this Act.

PART IV.–THE IMPROVEMENT AND DEVELOPMENT FUND.

Interpretation.

24. In this Part–

“development project” means any one of the purposes or any

combination of the purposes specified in Schedule 2;

“the Fund” means the special fund designated as the improvement and

Development fund in schedule 1.

The Fund not part of the Consolidated Fund.

25. The Fund shall not form part of the Consolidated Fund and shall be kept

in a separate account by the Accountant General.

Revenue of the Fund.

26. There shall be paid into the Fund and the Fund shall consist of–

(a) all such moneys as may from time to time be appropriated by

written law out of the Consolidated Fund for the purposes of

the Fund.

(b) all moneys received from time to time by way of grants and

loans from Her Majesty’s Government in the United Kingdom

in aid of a development project;

international organization, or from any institution, body or

person for a development project or generally for the purposes

of the Fund;

Public Finance (Control and Audit)

1977-09

(d) all moneys received from the proceeds of loans raised by or on

behalf of the Government for a development project or

generally for the purposes of the Fund;

(e) all moneys received from the proceeds of the sale of any land

belonging to the Government; and

(f) all moneys received by way of interest or dividend on any

investment or loan of moneys belonging to the Fund.

Use of the Fund.

27. No provision shall be made for expenditure to be charged on the Fund

other than for the purpose of a development project.

Annual estimates of the Fund.

28.(1) The Minister responsible for finance shall cause to be prepared and

laid before the Parliament, before or not later than thirty days after the

commencement of each financial year estimates of the revenue and

expenditure of the Fund for that year and such estimates shall form part of

the annual estimates of the Government to be laid before the Parliament in

accordance with the provisions of section 69(1) of the Constitution.

(2) The estimates shall be in such form as the Minister responsible for

finance may from time to time direct:

Provided that the estimates of expenditure shall–

(a) conform with the requirements of proviso (b) to section 41; and

(b) show in respect of each development project for which

provision is made therein–

(i) the total estimated cost of the project; and

(ii) the revised estimate of expenditure on the project in the

preceding financial year and amount expended in

previous financial years.

(3) The heads of expenditure contained in the estimates of the Fund for a

financial year shall be included in the Appropriation Bill introduced in the

Parliament in accordance with the provisions of section 69(2) of the

Constitution to provide for the issue from the Fund of the sums necessary to

meet that expenditure and for the appropriation of those sums for the

purposes specified in the Bill.

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Supplementary estimates.

29. If in the course of any financial year it is found–

(a) that the amount appropriated by the appropriation law for any

development project in any head of expenditure is insufficient;

(b) that a need has arisen to proceed with a development project

for which no amount has been appropriated by the

appropriation law, the Minister responsible for finance shall

cause a supplementary estimate substantially in the form

prescribed by section 28 of the sums required to meet such

deficiency or such need to be prepared and laid before the

Parliament and the heads of expenditure shall be included in a

supplementary Appropriation Bill to be introduced in the

Parliament to provide for the appropriation of those sums.

Authorisation of expenditure in advance of appropriation.

30.(1) If the appropriation law in respect of any financial year has not come

into operation by the commencement of that financial year, the Minister

responsible for finance shall by warrant under his hand authorize the

withdrawal of moneys from the Fund for the purpose of meeting expenditure

necessary to carry on the development projects of the Government until the

expiration of four months from the commencement of that financial year or

the coming into operation of the appropriation law whichever is the earlier:

Provided that no such withdrawal shall be authorized in respect of a

development project, which is not specified in the estimates of the Fund

presented for the current financial year, or if the estimates have not been

presented, in respect of a development project provided for in an

appropriation law of the financial year immediately preceding such current

year.

(2) The amount of any moneys so authorized and withdrawn from the

Fund shall be set off against the expenditure authorized by the appropriation

law for the current financial year on the coming into operation of such law.

Conditions attached to grants or loans.

31. Any conditions which may be attached to any grant or loan of moneys

forming part of the Fund shall be observed and shall have effect in relation

to the moneys so granted or loaned as if the same were prescribed by this

Act.

Development warrant.

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32.(1) Subject to the provisions of sections 27 and 31, and of this section, if

in the course of any financial year the circumstances described in section 29

arise and in the opinion of the Minister responsible for finance expenditure

on a development project is so urgent that it cannot without serious

detriment to the public interest be deferred until adequate financial provision

can be made for it by the Parliament–

(a) in respect of a development project which has not been

specified in the estimates of the Fund presented for any

financial year, the Minister responsible for finance may by

development warrant under his hand and in anticipation of the

grant of an appropriation by the Parliament authorize an

advance from the Fund not exceeding one hundred thousand

pounds or the estimated total cost of the development project,

whichever is the lesser amount; and

(b) in respect of a development project which has been specified in

the estimates of the Fund for any financial year, the Minister

responsible for finance may by a development warrant under

his hand and in anticipation of the grant of an appropriation by

the Parliament authorize an advance from the Fund not

exceeding–

(i) thirty thousand pounds; or

(ii) ten per cent of the estimated total cost of the

development as shown in the estimates of the Fund

presented for the current financial year; or

(iii) the balance required to complete expenditure of the

estimated total cost of the development project as shown

in the estimates of the Fund presented for the current

financial year–

whichever is the greatest amount.

(2) Where any advance is made from the Fund under subsection (1) a

supplementary estimate substantially in the form prescribed by section 28 of

the sum required for the development project for the purpose of which the

advance was made, shall be laid before the Parliament and an Appropriation

Bill shall be introduced therein as soon as possible to provide for the

appropriation of that sum.

(3) Upon the grant of an appropriation by the Parliament to provide for

expenditure on the development project in respect of which the advance was

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made, the development warrant shall cease to have effect and the sum

advanced shall be set off against the amount appropriated for that project.

Re-allocation.

33.(1) No surplus arising on any development project financed wholly or

partly by moneys received by the Fund under section 26(b)(c) or (d) shall be

applied in aid of any other development project unless–

(a) in the case of the moneys specified in paragraph (b) of that

section the prior consent of Her Majesty’s Government in the

United Kingdom has been obtained;

(b) in the case of the moneys specified in paragraph (c) of that

section the prior consent of the international organization, or

the institution, body or person concerned as the case may be,

has been obtained, or the moneys were received generally for

the purposes of the Fund; or

such moneys have been raised generally for the purposes of the

fund.

(2) Subject to the provisions of subsection (1) the Minister responsible

for finance, if it appears to him to be necessary to do so, may by means of a

warrant under his hand re-allocate moneys between one development project

and another of the same head of expenditure if he is satisfied that further

provision is needed for the development project to which moneys are to be

re-allocated and that there is, or is likely to be, a surplus in respect of the

development project from which the moneys are to be allocated.

(3) Any warrant issued in accordance with subsection (2) shall be laid

before the Parliament at the earliest opportunity.

Accounts and audit.

34. The accounts of the Fund shall be audited, certified and reported on

annually by the Principal Auditor

Investment of moneys accounted for in the Improvement and

Development Fund.

35. Subject to–

(a) any conditions which may from time to time be made by Her

Majesty’s Government in the United Kingdom in relation to

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moneys made available to the Government of Gibraltar by way

of grants or loans in aid of development projects;

(b) any conditions which may be attached by any other

Government, institution, body or person to the grant or loan of

moneys for the purpose of any development project or

generally for the purposes of the Fund; and

regulations made under the provisions of section 74,

the Financial Secretary may authorize the investment of moneys accounted

for in the Fund and which are not required for immediate use for the purpose

of a development project in like manner to that provided by section 5(2) in

respect of the Consolidated Fund.

PART V.–DEPOSITS.

Deposits.

36. Any moneys not being moneys raised or received for the purposes of the

Government, which may be deposited with the Accountant General or with

any other public officer authorized by the Accountant General or by

regulations made under this Act to receive the same (such moneys being

hereinafter referred to as deposits), shall not form part of the Consolidated

Fund and except as provided in this Part shall not be applied in any way for

the purpose of the Government.

Investment of deposits.

37.(1) The Financial Secretary may authorize the investment of deposits in

like manner to that permitted by section 5(2) in respect of the Consolidated

Fund.

(2) Any interest or dividend received in respect of deposits invested in

accordance with subsection (1) shall be paid into the Consolidated Fund.

(3) Section 54 shall apply to any investments made on account of

deposits and, for the purpose only of any adjustment which may have to be

effected in accordance therewith, such investments shall be regarded as

being held for account of the Consolidated Fund.

Deposits may be used to finance advances.

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38. The Financial Secretary may authorize the Accountant General to apply

deposits towards the making of advances for any of the purposes specified in

section 12;

Provided that deposits shall not be so applied where the advance in question

is only repayable or recoverable whether in full or in part after the close of

the financial year in which it is made.

Unclaimed deposits.

39. Any deposit which is unclaimed for five years shall be paid into the

Consolidated Fund for the purposes of the Government :

Provided that if any person entitled thereto shall subsequently prove to the

satisfaction of the Accountant General his claim to any such deposit, the

Accountant General shall thereupon refund to such person his deposit out of

the Consolidated Fund.

Accountant General to administer deposits.

40. Subject to the provisions of this Part, the Accountant General is hereby

authorized to administer and, in appropriate cases, to refund deposits to the

person or persons entitled to them.

PART VI.–ESTIMATES AND SUPPLY.

Annual estimates.

41. The estimates of the revenue and expenditure of the Government in

respect of each financial year laid before the Parliament in accordance with

the provisions of section 69 of the Constitution shall be in such form as the

Minister responsible for finance may from time to time determine :

Provided that–

(a) the estimates of expenditure on the Consolidated Fund services

shall show the sums to be issued from the Consolidated Fund

to meet the expenditure that is charged upon the Fund by the

Constitution or by any other written law and shall contain a

reference to the relevant provisions of the Constitution or of

such other law, as the case may be, authorizing the expenditure

to be so charged;

(b) the estimates of other expenditure required for the service of

the financial year–

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(i) shall be classified by heads of expenditure;

(ii) shall describe the ambit of each such head;

(iii) shall show the sum to be supplied for each such head by

appropriation; arid

(iv) shall designate in respect of each head the controlling

officer appointed to control and account for expenditure

of the sums appropriated for that head by the

appropriation law.

Controlling officers.

42.(1) The Financial Secretary shall appoint in respect of each head of

expenditure provided for any financial year in the annual estimates of the

Government, a controlling officer to control that head subject to the

provisions of this Act and of any Financial Regulations made or any

directions given thereunder, and to account for the expenditure of the sums

appropriated for that head.

(2) A controlling officer shall be the accounting officer in respect of,

and shall be personally accountable for, all public moneys disbursed and all

stores held, issued or received or used by or on account of the department or

service for the head of expenditure for which he is the controlling officer.

(3) A controlling officer may, subject to the provisions of this Act and of

any regulations made or instructions issued thereunder, and if so required by

the Financial Secretary shall, define in writing under his hand the extent to

which the powers and duties conferred or imposed upon him may be

exercised or performed on his behalf by any accounting officer under his

control, and may give such directions as may be necessary to secure the

proper exercise and performance of such powers and duties:

Provided that no delegation under this subsection shall extend to abridge the

personal accountability imposed on a controlling officer by subsection (2).

(4) A public officer designated by the title of his office in the annual

estimates of expenditure for any financial year to be the controlling officer

in respect of any head of expenditure pursuant to section 41(b)(iv) shall be

deemed for the purpose of subsection (1) to have been appointed by the

Financial Secretary and such designation shall constitute sufficient

notification of the appointment.

Disbursement of and accounting for expenditure on Consolidated Fund

Services.

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43. The disbursement of moneys provided for in the annual estimates of

expenditure for any financial year to meet expenditure on the Consolidated

Fund services shall be accounted for by the Accountant General.

Contingencies Fund.

44.(1) The Contingencies Fund shall consist of moneys from time to time

appropriated thereto and all moneys so appropriated shall be paid from the

Consolidated Fund into the Contingencies Fund.

(2) The Minister responsible for finance shall apply the moneys in the

Contingencies Fund in accordance with the provisions of section 71 of the

Constitution.

(3) Every advance from the Contingencies Fund shall be authorized by

means of a warrant under the hand of the Minister responsible for finance.

Re-allocation.

45.(1) If in the opinion of the Minister responsible for finance the

exigencies of the public service render it necessary or expedient to vary the

sums assigned to any purpose within a head of expenditure or to make

provision for a new purpose within such head, he may direct by means of a

warrant that there shall be applied in aid of any purpose for which the sum

assigned may be deficient or in aid of a new purpose a further sum out of

any surplus arising, or likely to arise, on any sums assigned to any other

purpose within that head:

Provided that any new purpose to which any sum is assigned shall be within

the ambit of such head.

And provided further that the total authorized establishment of staff

provided for in that head is not thereby exceeded.

(2) Any warrant issued under the provisions of this section shall be laid

before the Parliament at the earliest opportunity.

PART VII.–ACCOUNTING OFFICERS AND ACCOUNTS.

Accountant General.

46. The Accountant General is hereby charged with the compilation,

management and supervision of the accounts of the Government and with

the conduct of the treasury.

Powers and duties of Accountant General.

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47.(1) The Accountant General shall issue such instructions as may appear

to him to be necessary, to be known as accounting instructions, for the

advantage and safety of public moneys and public property and for the due

and proper accounting therefor.

(2) Without prejudice to the generality of subsection (1), accounting

instructions may provide for–

(a) the collection, custody, issue, expenditure and management of

all public moneys and the guidance of and compliance by all

persons concerned therewith;

(b) the effectual record, examination, inspection and departmental

check of all receipts, payments and expenditure and the

keeping of all necessary books and accounts;

all books, returns and documents whatsoever required for the

proper accounting for public moneys and public stores;

(d) the proper accounting for the purchase, safe custody, issue, sale

or other disposal or writing off of stores and other property of

the Government and for the stock taking of such stores and

property;

(e) the custody, handling and proper accounting for stamps,

securities and negotiable instruments whether the property of

the Government or on deposit with or entrusted to the

Government or to any public officer in his official capacity;

and

(f) the reporting of losses, by whatever means, of public moneys,

stamps, accountable documents of whatever kind and public

stores and the reporting of the destruction of or damage to any

property of the Government.

(3) Without prejudice to the generality of section 46 the Accountant

General shall–

(a) ensure that all moneys received and paid by the Government

are brought promptly and properly to account;

(b) take all reasonable steps to satisfy himself as to the correctness

of payment vouchers, and to insure that payment is refused on

any voucher which is wrong or insufficient in content, or which

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contravenes accounting instructions, or which in his opinion is

in any way unacceptable in support of a charge on public funds;

made for the safe custody of public moneys, stamps, securities

and other accountable documents; and

(d) report to the Financial Secretary in writing any apparent defect

in departmental control of expenditure, revenue, cash, stamps,

stores or other property of the Government and any persistent

breach or non-observance of accounting instructions that may

come or be brought to his notice.

(4) The Accountant General in the exercise of the powers and duties

conferred upon him by this section shall be entitled –

(a) to inspect any office, store or premises and shall be given

access at all times thereto and shall be freely given all available

information, documents and records he may require with regard

to public moneys, public stores and other property of the

Government; and

(b) to check any public moneys, stamps, stores and securities for

the purpose of satisfying himself that accounting instructions

and any regulations made under this Act are being complied

with.

(5) The Accountant General may delegate to any public officer under his

control by writing under his hand any of the powers conferred upon him by

subsection (4).

Duties of accounting officers.

48.(1) Every accounting officer shall be subject to the provisions of this Act

and shall perform such duties as may be prescribed by or under this Act or

any financial regulations made or any directions given thereunder.

(2) Every accounting officer shall comply with accounting instructions

and shall keep such books and render such accounts and in such manner as

may be required by such instructions.

Accounting officers not permitted to open bank accounts.

49. No accounting officer shall open any public or official account in respect

of public moneys in any bank without the authority in writing of the

Financial Secretary.

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Overdrafts on public or official bank accounts.

50.(1) No bank shall permit an overdraft on any public or official account

unless such overdraft has been authorized in writing by the Financial

Secretary.

(2) If any bank permits an overdraft contrary to the provisions of

subsection (1) no action shall lie to recover the whole or any part of such

overdraft and no interest shall be chargeable on such overdraft.

All public moneys to be accounted for in the public accounts of

Gibraltar.

51. All public moneys shall be accounted for in the public accounts of

Gibraltar.

Annual accounts.

52.(1) The Accountant General shall within a period of nine months (or

such longer period as the Minister responsible for finance shall allow) after

the close of each financial year sign and transmit to the Principal Auditor

accounts showing fully the financial position of the Government of Gibraltar

at the end of such financial year.

(2) The accounts shall include–

(a) a statement of assets and liabilities;

(b) an abstract statement of receipts and payments;

expenditure respectively by heads and sub-heads;

(d) a statement of unauthorized expenditure by heads;

(e) a statement of balances on advance accounts from the

Consolidated Fund analysed under the several categories

specified in section 12;

(f) a statement of the balances on deposit accounts;

(g) a statement of outstanding loans made from the Consolidated

Fund;

(h) a statement of the public debt;

(i) a statement of aggregate arrears of revenue by subheads;

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(j) a statement of the accounts of each special fund, other than the

Improvement and Development Fund, showing in respect of

each such fund the investments or other assets relating thereto;

(k) a statement of losses of cash and stores written-off and claims

abandoned;

(l) a statement of unretired imprests;

(m) in respect of the Improvement and Development Fund–

(i) a comparative statement of actual and estimated revenue

by heads;

(ii) a comparative statement of actual and estimated

expenditure by development projects;

(iii) a statement of unauthorized expenditure;

(iv) a statement of outstanding loans made from the Fund;

and

(n) such other statements as the Parliament may from time to time

by resolution require.

Annual accounts of special funds.

53.(1) In this section–

“controlling officer” means any public officer, other than the Accountant

General, appointed under any written law or by virtue of

regulations made under section 19 to be the controlling officer of a

special fund.

“period of account” means –

(a) in relation to any fund declared to be a special fund under the

provisions of section 18(3)(a) such period of account as may be

provided in the written law establishing such fund or in any

regulations relating thereto made under section 19;

(b) in relation to any other fund declared to be a special fund under

the provisions of section 18(3)(b) such period of account as

may be provided in any trust instrument relating thereto or in

any regulations made in connection therewith under section 19;

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as aforesaid, the financial year;

“special fund” means any fund, other than the Improvement and

Development Fund, specified in Schedule 1.

(2) Within a period of six months after the close of the period of account

the controlling officer shall cause to be prepared and shall sign and transmit

to the Principal Auditor an account, in such form as the Accountant General

may from time to time require, of each special fund in respect of which he is

the controlling officer and a copy of each such account so transmitted shall

be transmitted to the Accountant General.

Valuation of assets, etc.

54.(1) At the close of each financial year the value of every security held on

account of the Government in the Consolidated Fund and, subject to the

provisions of subsection (3), in any special fund shall be adjusted to accord

with the middle market price in London on the last working day of that year

and any consequent increase or decrease of the value of such securities shall

be carried to the credit or debit of the Consolidated Fund or appropriate

special fund as the case may be.

(2) Whenever during the course of a financial year and in order to take

advantage of the state of the market, a security held for account of the

Consolidated Fund or any special fund is sold for the purpose of re-investing

the proceeds in another security, any adjustment which may be required as a

result thereof shall be carried to the credit or debit of the Consolidated Fund

or appropriate special fund as the case may be.

(3) Where in relation to any special fund the financial year is not the

period of account the adjustment required by subsection (1) shall accord

with the middle market price in London on the last working day of the

period of account prescribed for such special fund and for the purposes of

this subsection the expression “period of account’’ shall have the meaning

ascribed to it in section 53(1) (a) and (b).

PART VIII.–THE PRINCIPAL AUDITOR.

Office of Principal Auditor.

55.(1) The Principal Auditor shall not, while holding the office of Principal

Auditor, hold any other office of profit under the Crown.

(2) The Principal Auditor shall not be required to undertake–

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(a) any duties outside those pertaining to his office if in his opinion

such duties are incompatible with the responsibilities and

duties of that office; and

(b) any examination of accounts partaking of the nature of a pre-

audit which involves the acceptance by him of responsibility

which would in his opinion preclude him from full criticism of

any accounting transaction after such transaction has been duly

recorded.

Powers of Principal Auditor.

56. (1) In the performance of his functions under the Constitution and under

this Act, the Principal Auditor–

(a) shall have access to all accounts, books, cash, documents,

securities, stamps, stores, vouchers or other Government

property under the control or in possession of any public

officer;

(b) may call upon any public officer for any explanations and

information which he may require in order to enable him to

discharge his duties;

profession of accountant to conduct on his behalf any inquiry,

examination or audit and such person shall report thereon to the

Principal Auditor in such manner as he may direct;

(d) may without payment of fee, cause search to be made in and

extracts to be taken from any book, document or record in any

public office; and

(e) may lay before the Attorney-General a case in writing as to any

question of law and the Attorney-General shall give a written

opinion upon such question.

(2) The Principal Auditor may authorize in writing any public officer,

with the consent of the head of such officer’s department, to exercise in that

behalf the power conferred upon him by subsection (1) (a).

Nature of audit.

57. In the performance of his functions under the Constitution and under this

Act, the Principal Auditor shall have such other powers as are reasonably

necessary in order to satisfy himself whether or not–

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(a) all reasonable steps have been taken to secure the due

collection of revenues and of all other public moneys due and

owing to the Government and the provisions of the

Constitution and of this Act and any regulations and

instructions relating to such collection have been complied

with;

(b) all moneys which have been appropriated and disbursed have

been applied for the purposes for which they were appropriated

and the expenditure conforms with the authority which governs

it;

have been dealt with in accordance with proper authority;

(d) all reasonable precautions have been taken to safeguard the

proper receipt, custody, issue and proper use of cash, stamps,

securities and stores and the regulations and instructions

relating thereto are sufficient and have been duly observed;

(e) the regulations, directions and instructions in force relating to

the issue and payment of public moneys are sufficient to secure

effective control over expenditure and such regulations,

directions and instructions have been duly observed by the

public officers concerned therewith; and

(f) the regulations, directions and instructions in force relating to

the accounting for public moneys, stores and other Government

property are adequate and such regulations and instructions

have been duly observed by the public officers concerned

therewith.

Notification of irregularities.

58. If at any time it appears to the Principal Auditor that irregularities have

occurred in the receipt, custody or expenditure of public moneys or in the

receipt, custody, issue, sale, disposal, transfer or delivery of any stamps,

securities, stores, accountable documents or other property of the

Government or in the accounting for the same, he may bring the matter to

the notice of the Financial Secretary.

Delegation.

59. Anything, which under the authority of this Act is directed to be done by

the Principal Auditor other than–

(a) the certifying of and reporting on accounts; and

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(b) the exercise of the power conferred upon the Principal Auditor

by section 56(1)(c),

may be done by any officer of his staff duly authorized by him.

PART IX. –EXAMINATION AND AUDIT OF ACCOUNTS OF

CORPORATE AND SIMILAR BODIES.

Application of Part IX.

60.(1) This Part shall apply to every person or body–

(a) that is in receipt of a contribution from any public moneys : or

(b) in respect of whom the Government has given a guarantee to

any person; or

moneys–

not being a body corporate whose accounts the Principal Auditor is for the

time being specifically required or empowered to audit and report on under

any other law.

Power of Principal Auditor to audit.

61.(1) The Principal Auditor may audit and report on the accounts of any

person or body to whom this Part applies.

(2) In the exercise of his powers under subsection (1), the Principal

Auditor shall have, in relation to any person or body to whom this Part

applies, the same powers as are conferred on him under sections 56 and 57

in relation to public offices, public moneys, stamps, securities, stores and

other Government property.

Reports on accounts of statutory and other bodies.

62. Where in accordance with the provisions of this Part the Principal

Auditor has, or by virtue of directions given by him under the provisions of

section 57(c), caused to be examined, inquired into and audited the accounts

of any person or body, he may

(i) certify the accounts;

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(ii) prepare and sign a report on such audit if he considers

such a report is necessary;

(iii) transmit to the Minister responsible for finance all such

certified accounts together with any report that he may

have made; and

(iv) transmit the report to the person or body which is the

subject of the report.

Observations on reports of the Principal Auditor to be obtained.

63. On receipt of any report of the Principal Auditor under section 62 the

Minister responsible for finance shall request the person or body for its

comments, to be supplied within such time, being not less than 14 days from

the date of request, as may be specified therein, on any matter to which the

Principal Auditor has called attention in such report.

Reports on accounts of statutory and other bodies to be laid before the

Parliament.

64. A copy of every account and of any report of the Principal Auditor

thereon transmitted to the Minister responsible for finance in accordance

with the provisions of section 62 together with the comments, if any, of the

person or body and a copy of any document forming a part of or appended to

any such report shall be laid before the Parliament.

Audit fees.

65.(1) Notwithstanding anything to the contrary contained in any written

law, any person or body whose accounts are examined, inquired into or

audited by the Principal Auditor under the provisions of section 61 shall in

respect of such examination, inquiry into or audit pay such fee as the

Principal Auditor may determine :

Provided that the Financial Secretary may, in any case in which it shall

appear to him to be in the public interest that some lesser fee shall be paid or

that no fee shall be charged, direct the Principal Auditor to levy such lesser

fee or to make no charge as the case may be.

(2) Any fee charged under this section shall be paid into the

Consolidated Fund.

PART X. –ABANDONMENT OF CLAIMS, WRITE-OFFS AND

SURCHARGE.

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Abandonment of claims and write-off.

66. The Financial Secretary shall have in respect of public moneys, stores

and other movable property belonging to the Government or provided for

the public service–

(a) power to abandon irrecoverable amounts of revenue, debts or

over-payments; and

(b) power to write-off losses or deficiencies of public moneys and

the value of lost, deficient, condemned, unserviceable, or

obsolete stores.

Disposal of surplus stores to certain organizations.

67. The Financial Secretary shall have power to authorize the gift of

serviceable stores which are surplus to Government requirements or are not

required for Government purposes to institutions or organizations in

Gibraltar established solely or principally for educational, scientific, cultural

or charitable purposes.

Surcharge.

68.(1) Notwithstanding the provisions of any other written law if at any

time it appears to the Financial Secretary that by reason of neglect of duty,

carelessness or fault any person who is or was at the time of such neglect,

carelessness or fault a public officer-

(a) has failed to collect any moneys owing to the Government for

the collection of which he is or was responsible;

(b) is or was responsible for any improper payment of public

moneys or for the payment of any moneys which were not duly

vouched;

destruction of or damage to any public moneys, stamps,

securities, stores or other Government property; or

(d) is or was responsible for any loss of or in jury to the property of

any other person and as a result the Government is liable for

the payment of damages or compensation,

he may after due investigation, call upon such public officer to show cause

why he should not be surcharged the amount of the moneys not collected,

improperly paid, not duly vouched, lost, destroyed or damaged or the value

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1977-09

of the stores or other property lost, destroyed or damaged or the amount of

damages or compensation paid as the case may be.

(2) If, within such period as the Financial Secretary may allow, an

explanation satisfactory to him is not furnished by such public officer with

regard to the failure to collect, improper payment, payment not duly

vouched, deficiency, loss, destruction, damage or injury including damage

or in jury for which the Government has paid damages or compensation as

the case may be the Financial Secretary may surcharge that public officer

such sum as he may determine :

Provided that–

(i) in determining the sum to be surcharged the Financial Secretary

shall take due account of the ability of the public officer to pay

the surcharge without undue financial hardship; and

(ii) the sum to be surcharged shall not in any case exceed–

(a) in relation to public moneys, the amount of any such

moneys not collected, improperly paid, unvouched,

deficient, destroyed, lost or damaged;

(b) in relation to stores or other property the value of such

stores or property lost, deficient, destroyed or damaged;

the in jury or by way of payment of damages or

compensation;

(d) in the case of a public officer, other than a public officer

in industrial employment, one sixth of the gross annual

pensionable emoluments or pension of such public

officer, and in the case of a public officer in industrial

employment eight weeks basic wages.

(3) For the purposes of this section and section 72 industrial

employment means employment of which the terms and conditions are

decided after negotiation in the Official Employers Joint Industrial Council.

Notification of surcharge.

69. The Financial Secretary shall cause the public officer, the Accountant

General, the Principal Auditor and the Head of Department of such public

officer to be notified in writing of any surcharge made under section 68.

Appeal against surcharge.

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70.(1) A person who is aggrieved by any surcharge made against him under

the provisions of section 68 may appeal to the Minister responsible for

finance within a period of thirty days (or such longer period as the Minister

responsible for finance may allow) from the date on which he is notified of

the surcharge.

(2) The Minister responsible for finance, after making or directing to be

made such investigations as he may deem to be necessary, may confirm the

surcharge or direct that the public officer surcharged be released wholly or

in part from the surcharge as may appear to him to be just and reasonable.

Withdrawal of surcharge.

71. The Financial Secretary may at any time withdraw any surcharge

imposed by him for any reason that he may think fit and in such event he

shall notify in writing the public officer, the Accountant General, the

Principal Auditor and the head of department of such public officer of such

withdrawal.

Recovery of surcharge.

72.(1) Subject to the provisions of this section the Accountant General shall

cause the amount of any surcharge to be recovered from the public officer

surcharged by equal instalments from the salary, wages, pension or other

emoluments of such public officer:

Provided that–

(a) in the case of a public officer not in industrial employment, the

instalments shall be monthly and no one such instalment shall

exceed one sixth of the officer’s gross pensionable emoluments

or pension for that month;

(b) in the case of a public officer in industrial employment the

instalments shall be weekly and no such instalment shall

exceed one-eighth of such person’s basic weekly wage;

case of a public officer not in industrial employment and not

exceed sixty-four in the case of a public officer in industrial

employment;

(d) where the public officer surcharged is due to be paid any

moneys by the Government other than by way of salary, wages

or pension the Financial and Development Secretary may direct

that the amount of any surcharge imposed on that public

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officer, be deducted from such moneys in whole or in part as he

considers just and reasonable.

(2) No recoveries shall be made until after the expiration of the period

allowed by section 70 for the lodging of an appeal and where the public

officer surcharged appeals under the provisions of that section, no recoveries

shall be made until and unless the amount of the surcharge has been

confirmed or otherwise determined in accordance with that section.

Surcharge to be a debt to the Government.

73. The amount of any surcharge shall be a debt due to the Government

from the public officer in respect of whom the surcharge is imposed and the

provisions of section 72 shall be without prejudice to the right, which is

hereby declared, of the Government to sue for such surcharge in any court of

competent jurisdiction.

PART XI.–REGULATIONS.

Regulations by the Minister responsible for finance.

74.(1) The Minister responsible for finance may make regulations, to be

called Financial Regulations, not inconsistent with the provisions of this

Act, for the proper carrying out of the intent and purposes of this Act and

without prejudice to the generality of this provision such regulations may

provide for–

(a) the preparation of estimates of revenue and expenditure;

(b) the administration and management of the Improvement and

Development Fund;

specific purposes where such rates of payment are not provided

for by law;

(d) the duties of controlling officers.

(2) Regulations made under subsection (1) shall not have the force of

law.

Public procurement.

75. (1) This section applies to the contracts of a public body in respect of

which Community law relating to public procurement may from time to

time apply.

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(2) A body mentioned in sub-section (1) shall in respect of prescribed

contracts comply with regulations made under sub-section (3).

(3) The Minister responsible for finance may make regulations for the

purpose of transposing into the law of Gibraltar Community law in respect

of public procurement and without prejudice to the generality of the

foregoing may in particular make provision in respect of the following

matters, that is to say–

(a) the designation of the public bodies to which this section shall

apply;

(b) the proposed activities, including exceptions thereto, of a

designated body to which this section shall apply;

money’s worth, below which this section shall not apply;

(d) the manner in which a designated body may lay down technical

specifications in respect of the activities to be carried out under

a prescribed contract;

(e) the procedures to be adopted by a designated body in the award

of a prescribed contract;

(f) the administrative procedures in relation to a prescribed

contract to be followed by a designated body;

(g) the contents of and the method and form of publication of

notices in respect of a prescribed contract;

(h) remedies and penalties in respect of the failure by a designated

body to comply with the provisions of this section including

the consequences in respect of any prescribed contract

purportedly made other than in compliance with those

provisions;

(j) matters to be notified to the Commission;

(k) any other matters necessary to satisfy an obligation of

Community Law relating to public procurement.

(4) Regulations made under this section may make provision for

different public bodies and for different classes of contract and may make

different provisions in respect of each different body and different class of

contract.

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(5) In this section —

“designated body” means a public body designated in accordance with

sub-section (3)(a);

“prescribed contract” means a contract to which this section applies by

virtue of paragraphs (a), (b) and (c) of sub-section (3).

PART XII–FINANCIAL RELATIONS BETWEEN THE

GOVERNMENT AND PUBLIC UNDERTAKINGS

Interpretation of Part.

76.(1) In this Part and unless the context otherwise requires–

“different activities” means, on the one hand, all products or services in

respect of which a special or exclusive right is granted to an

undertaking or all services of general economic interest with which

an undertaking is entrusted and, on the other hand, each other

separate product or service in respect of which the undertaking is

active;

“exclusive rights” means rights that are granted by the Government to

one undertaking in Gibraltar through any legislative, regulatory or

administrative instrument, reserving it the right to provide a service

or undertake an activity within Gibraltar;

“public authorities” means all public authorities;

“public undertakings” means any undertaking over which the public

authorities may exercise directly or indirectly a dominant influence

by virtue of their ownership of it, their financial participation

therein, or the rules which govern it;

“public undertakings operating in the manufacturing sector” means all

undertakings whose principal area of activity, defined as being at

least 50% of total annual turnover, is in manufacturing. These

undertakings are those whose operations fall under Section D —

Manufacturing being subsection DA up to and including subsection

DN of the NACE (Rev.1) classification, as published in the Official

Journal of the European Communities with the following reference,

OJ L 83, 3.4.1993, p. 1;

“special rights” means rights that are granted by Gibraltar law or by the

Government to a limited number of undertakings, through any

legislative, regulatory or administrative instrument, which–

Public Finance (Control and Audit)

1977-09

(a) limits to two or more the number of such undertakings

authorised to provide a service or undertake an activity,

otherwise than according to objective, proportional and non-

discriminatory criteria;

(b) designates, otherwise than according to such criteria, several

competing undertakings, as being authorised to provide a

service or undertake an activity; or

according to such criteria, any legal or regulatory advantages

which substantially affect the ability of any other undertaking

to provide the same service or to operate the same activity in

Gibraltar under substantially equivalent conditions;

“undertaking required to maintain separate accounts” means any

undertaking that enjoys a special or exclusive right granted in

Gibraltar pursuant to Article 106(1) of the Treaty or is entrusted

with the operation of a service of general economic interest

pursuant to Article 106(2) of the Treaty, that receives public service

compensation in any form whatsoever in relation to such service

and that carries on other activities;

(2) For the purposes of the definition of “public undertakings” in

subsection (1), a dominant influence on the part of the public authorities

shall be presumed when these authorities, directly or indirectly in relation to

an undertaking–

(a) hold the major part of the undertaking’s subscribed capital;

(b) control the majority of the votes attaching to shares issued by

the undertakings; or

administrative, managerial or supervisory body.

Transparency of financial relations.

77.(1) The Financial Secretary shall take steps to ensure that financial

relations between public authorities and public undertakings as defined in

section 76 are transparent as provided in this Part, so that the following

details emerge clearly, that is to say–

(a) the public funds made available directly by public authorities to

the public undertakings concerned;

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(b) the public funds made available by public authorities through

the intermediary of public undertakings or financial

institutions; and

(2) The Financial Secretary shall ensure that the financial and

organisational structure of any undertaking required under any statutory

provision to maintain separate accounts is correctly reflected in the separate

accounts, so that the following emerge clearly, that is to say–

(a) the costs and revenues associated with different activities; and

(b) full details of the methods by which costs and revenues are

assigned or allocated to different activities.

Application of section 77.

78. The transparency referred to in section 77(1) shall apply in particular to

the following aspects of financial relations between public authorities and

public undertakings–

(a) the setting-off of operating losses;

(b) the provision of capital;

(d) the granting of financial advantages by forgoing profits or the

recovery of sums due;

(e) the forgoing of a normal return on public funds used; and

(f) compensation for financial burdens imposed by the public

authorities.

Maintenance of separate accounts.

79.(1) To ensure the transparency referred to in section 77(2), the Financial

Secretary shall ensure that for any undertaking required to maintain separate

accounts–

(a) the internal accounts corresponding to different activities are

separate;

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1977-09

(b) all costs and revenues are correctly assigned or allocated on the

basis of consistently applied and objectively justifiable cost

accounting principles; and

accounts are maintained are clearly established.

(2) Subsection (1) shall only apply to activities which are not otherwise

covered by specific provisions laid down by the Union and shall not affect

any obligations of the Government or undertakings arising from the Treaty

or from such specific provisions.

Exemptions.

80.(1) As far as the transparency referred to in section 77(1) is concerned,

this Part shall not apply to financial relations between the public authorities

and–

(a) public undertakings, as regards services the supply of which is

not liable to affect trade between Gibraltar and Member States

to an appreciable extent;

(b) the Gibraltar Savings Bank;

funds placed with them by public authorities on normal

commercial terms; and

(d) public undertakings whose total annual net turnover over the

period of the two financial years preceding that in which the

funds referred to in section 77(1) are made available or used

has been less than EUR 40 million; save that in respect of the

Gibraltar Savings Bank and any other public credit institution,

the corresponding threshold shall be a balance sheet total of

EUR 800 million.

(2) As far as the transparency referred to in section 77(2) is concerned, this

Part shall not apply–

(a) to undertakings, as regards services the supply of which is not

liable to affect trade between Gibraltar and Member States to

an appreciable extent;

(b) to undertakings whose total annual net turnover over the period

of the two financial years preceding any given year in which–

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1977-09

(i) it enjoys a special or exclusive right granted in Gibraltar

pursuant to Article 106(1) of the Treaty; or

(ii) it is entrusted with the operation of a service of general

economic interest pursuant to Article 106(2) of the

Treaty,

is less than EUR 40 million; save that in respect of the

Gibraltar Savings Bank and any other public credit institution,

the corresponding threshold shall be a balance sheet total of

EUR 800 million; and

of services of general economic interest pursuant to Article

106(2) of the Treaty if the compensation they receive, in any

form whatsoever, was fixed for an appropriate period following

an open, transparent and non-discriminating procedure.

Supply of information to the European Commission concerning the

information referred to in section 77.

81.(1) Information concerning the financial relations referred to in section

77(1) shall be kept by the Financial Secretary at the disposal of the European

Commission for five years from the end of the financial year in which the

public funds were made available to the public undertakings concerned;

where the same funds are used during a later financial year, the five-year

time limit shall run from the end of that financial year.

(2) Information concerning the financial and organisational structure of

undertakings referred to in section 77(2) shall be kept by the Financial

Secretary at the disposal of the European Commission for five years from

the end of the financial year to which the information refers.

(3) The Financial Secretary shall, where the European Commission

considers it necessary so to request, ensure the supply to the European

Commission of the information referred to in subsections (1) and (2),

together with any necessary background information, notably the objectives

pursued.

Public undertakings in the manufacturing sector.

82.(1) The Financial Secretary shall ensure that, in relation to public

undertakings operating in the manufacturing sector, the European

Commission is supplied with the financial information set out in subsections

(2) to (4) on an annual basis and within the timetable contained in

subsection (8).

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(2) The financial information required for each public undertaking

operating in the manufacturing sector, and in accordance with subsection

(5), shall be as follows–

(a) the annual report and annual accounts, in accordance with the

provision of the Companies (Accounts) Act 1999 and the

Companies (Consolidated Accounts) Act, including the balance

sheet and profit/loss account, explanatory notes, together with

accounting policies, statements by directors, segmental and

activity reports; and

(b) notices of shareholders’ meetings and any other pertinent

information.

(3) The reports required under subsection (2) shall be provided for each

individual public undertaking separately, as well as for the holding or sub

holding company which consolidates several public undertakings in so far as

the consolidated sales of the holding or sub holding company lead to its

being classified as “manufacturing”.

(4) The following details, in so far as not disclosed in the annual report

and annual accounts of each public undertaking, shall be provided in

addition to the information referred to in subsections (2) and (3)–

(a) the provision of any share capital or quasi-capital funds similar

in nature to equity, specifying the terms of its or their provision

(whether ordinary, preference, deferred or convertible shares

and interest rates; the dividend or conversion rights attaching

thereto);

(b) non-refundable grants, or grants which are only refundable in

certain circumstances;

and advances on capital injections, with a specification of

interest rates and the terms of the loan and its security, if any,

given to the lender by the undertaking receiving the loan;

(d) guarantees given to the undertaking by public authorities in

respect of loan finance (specifying terms and any charges paid

by undertaking for these guarantees);

(e) dividends paid out and profits retained; and

(f) any other forms of intervention by the Government, in

particular, the forgoing of sums due to the Government by a

public undertaking, including inter alia the repayment of loans,

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grants, payment of corporate or social taxes or any similar

charges.

The share capital referred to in paragraph (a) shall include share capital

contributed by the Government directly and any share capital received

contributed by a public holding company or other public undertaking,

including financial institutions, whether inside or outside the same group, to

a given public undertaking. The relationship between the provider of the

finance and the recipient shall always be specified.

(5) The information required by subsections (2) to (4) shall be provided

only in respect of public undertakings whose turnover for the most recent

financial year was more than EUR 250 million.

(6) The information required by subsections (2) to (4) shall be supplied

separately for each public undertaking including those located in Member

States, and shall include, where appropriate, details of all intra- and inter-

group transactions between different public undertakings, as well as

transactions conducted directly between public undertakings and the

Government.

(7) Where public undertakings split their activities into several legally

distinct undertakings, one consolidated report may be submitted, reflecting

the economic reality of a group of undertakings operating in the same or

closely related sectors. Consolidated reports from diverse, and purely

financial, holdings shall not be sufficient for the purposes of this section.

(8) The information required under subsections (2) to (4)–

(a) shall be supplied to the European Commission on an annual

basis; and

(b) shall be provided within 15 working days of the date of

publication of the annual report of the public undertaking

concerned,

Provided that, in any case, and specifically for undertakings which do not

publish an annual report, the required information shall be submitted not

later than nine months following the end of the undertaking’s financial year.

(9) In order to assess the number of companies covered by this reporting

system, the Financial Secretary shall ensure that the European Commission

is supplied with a list of the companies covered by this section and their

turnover. The list is to be updated by 31 March of each year.

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(10) The Financial Secretary shall ensure that the European Commission is

furnished with any additional information that it deems necessary in order to

complete a thorough appraisal of the data submitted.

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SCHEDULE 1

Section 18

SPECIAL FUNDS

Administrator General’s

Account

(Administrator General’s Act)

Closed Long-Term Benefits

Fund

(Social Security (Closed Long-Term

Benefits and Scheme) Act)

Employment Injuries

Insurance Fund

(Social Security (Employment Injuries

Insurance) Act)

Government Trusts Fund

(Public Finance (Control and Audit) Act)

Improvement and

Development Fund

(Public Finance (Control and Audit) Act)

Note Security Fund

(Currency Notes Act)

Open Long-Term Benefits

Fund

(Social Security (Open Long-Term

Benefits Scheme) Act)

Savings Bank Fund

(Savings Bank Act)

Social Assistance Fund

(Public Finance (Control and Audit) Act

Short Term Benefits Fund

(Social Security Insurance Act)

Supreme Court Fund

(Supreme Court Act)

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SCHEDULE 2.

Section 24.

PURPOSES FOR WHICH THE IMPROVEMENT AND DEVELOPMENT

FUND MAY BE APPLIED.

1. The construction, improvement, extension, enlargement and

replacement of buildings and civil works and the provision, acquisition,

improvement and replacement of other capital assets (including vehicles,

vessels, machinery, instruments and equipment) required in respect of or in

connection with–

(a) housing and building projects;

(b) public roads, harbours and other means of communications;

(d) official transportation;

(e) telecommunications and broadcasting;

(f) the production, distribution and supply of water, electricity and

other forms of energy;

(g) education, libraries, museums, laboratories and scientific

research;

(h) hospitals, clinics, dispensaries, quarantine stations and other

medical and health institutions;

(i) public health and sanitation;

(j) fire control;

(k) tourist and industrial development;

(l) any other project, scheme or programme for economic or

social development.

2. The acquisition of land or any right or interest in or over land.

3. The carrying on of any survey, research or investigation preparatory

to the undertaking of any purpose referred to in paragraph 1 of this Schedule

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or for the formation or preparation of any scheme or plan for the

development, improvement, conservation or exploitation of the resources of

Gibraltar.

4. The payment of any charges or expenses incidental to or arising from

the carrying out of any of the purposes referred to in paragraphs 1, 2 and 3

of this Schedule.

____________________

SCHEDULE 3

Section 17A

(1) The Gibraltar Health Authority;

(2) The Gibraltar Electricity Authority;

(3) The Port Authority;

(4) The Care Agency;

(5) The Gibraltar Sports and Leisure Authority;

(6) The Gibraltar Regulatory Authority;

(7) The Gibraltar Development Corporation;

(8) The Housing Works Agency.