Public Finance Act
2008 Revised Edition
CAP. 4.20
PUBLIC FINANCE ACT
Public Finance Act CAP. 4.20 Arrangement of Sections
2008 Revised Edition
Page 3
PUBLIC FINANCE ACT
Arrangement of Sections
Section
PART I - PRELIMINARY 5
1 Short title and construction .................................................................................... 5
2 Interpretation.......................................................................................................... 5
PART II - POWERS AND DUTIES OF MINISTER 6
3 Supervision of finances.......................................................................................... 6
4 National Budget ..................................................................................................... 7
5 Power to make regulations..................................................................................... 8
6 Accounting and accountable officers to obey instructions .................................... 8
7 Saving in relation to trusts ..................................................................................... 8
PART III - THE CONSOLIDATED FUND 9
8 Repayments from Consolidated Fund.................................................................... 9
9 Revenues and other moneys to be paid into Consolidated Fund ........................... 9
10 Payments................................................................................................................ 9
11 Consolidated Fund moneys to be kept with specified banks ................................. 9
12 Investment of moneys .......................................................................................... 10
13 Advances.............................................................................................................. 10
14 Money issued but not spent to be paid to the Consolidated Fund........................ 10
15 Interim expenditure.............................................................................................. 11
16 Accounting officers.............................................................................................. 12
17 Reallocations within Heads.................................................................................. 12
18 Restrictions on borrowing.................................................................................... 12
PART IV - OTHER PUBLIC FUNDS 13
19 Development Fund............................................................................................... 13
20 Special Funds....................................................................................................... 14
Arrangement of Sections CAP. 4.20 Public Finance Act
2008 Revised Edition Page 4
PART V - DEPOSITS 14
21 Deposits................................................................................................................14
22 Investment of deposits..........................................................................................14
23 Deposits may be used to finance advances ..........................................................15
24 Unclaimed deposits ..............................................................................................15
PART VI - THE AUDITOR-GENERAL 15
25 Duty in respect of accounts ..................................................................................15
26 Powers of Auditor-General ..................................................................................16
27 Discretion with regard to vouchers etc.................................................................16
28 Limit on duties of Auditor-General......................................................................17
29 (repealed)..............................................................................................................17
30 Acting Auditor-General........................................................................................17
PART VII - THE AUDIT AND EXAMINATION OF PUBLIC
ACCOUNTS 18
31 Annual Accounts ..................................................................................................18
32 Report on accounts ...............................................................................................19
33 Powers of Parliament ...........................................................................................19
34 Irregularities .........................................................................................................19
PART VIII - EXAMINATION AND AUDIT OF ACCOUNTS OF
STATUTORY BODIES 20
35 Accounts of statutory bodies ................................................................................20
36 (repealed)..............................................................................................................20
37 Audit fees to be charged.......................................................................................20
PART IX - ABANDONMENT OF CLAIMS, ETC., AND WRITE-OFF
OF PUBLIC MONEYS AND STORES 21
38 Abandonment of claims and write-off of public moneys and stores....................21
39 Disposal of serviceable stores or property ...........................................................21
SCHEDULE 22
RULES FOR THE OPERATION OF THE DEVELOPMENT FUND 22
ENDNOTES 25
Public Finance Act CAP. 4.20 Section 1
2008 Revised Edition
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PUBLIC FINANCE ACT
AN ACT TO MAKE PROVISION, ADDITIONAL TO THAT IN PART IX
OF THE CONSTITUTION, FOR THE CONTROL, MANAGEMENT AND
AUDIT OF THE PUBLIC FINANCES OF TUVALU AND FOR MATTERS
CONNECTED THEREWITH AND INCIDENTAL THERETO1
Commencement [1st October 1978]
PART I - PRELIMINARY
1 Short title and construction
(1) This Act may be cited as the Public Finance Act.
(2) This Act shall be subject to, read in conjunction with and construed as one
with the provisions of Part IX of the Constitution.
2 Interpretation
In this Act unless the context otherwise requires —
“accountable officer” means any public officer, including an accounting
officer, concerned in or responsible for the collection, receipt, custody, issue
or payment of public moneys, stores, stamps, investments, securities or
negotiable instruments whether the same are the property of the Government
or on deposit with or entrusted to the Government or to any public officer in
his official capacity either alone or jointly with any other public officer or any
other person;
“accounting officer” means any public officer appointed under the provisions
of this Act and charged with the duty of accounting for any service in respect
of which moneys have been appropriated;
Section 3 CAP. 4.20 Public Finance Act
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“Appropriation Act” means any Act to apply a sum out of the Consolidated
Fund to the service of a financial year and includes a Supplementary
Appropriation Act;
“Consolidated Fund” means the Consolidated Fund of Tuvalu established by
section 167(1) of the Constitution;
“Crown Agents” means the Crown Agents for Overseas Governments and
Administrations;
“Expenditure Head” or “Head” means the total sum applied to and
appropriated for any purpose by an Appropriation Act or Supplementary
Appropriation Act;
“financial year” means the year commencing January 1st;
“public moneys” include —
(a) all revenues or other moneys raised or received for the purpose
of the Government of Tuvalu;
(b) any other moneys or funds held, 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;
“public officer” and “public service” have the meanings respectively
assigned to those terms by section 2(1) of Schedule 1 to the Constitution;
“public stores” means all chattels of whatsoever nature the property of or in
possession of or under the control of the government;
“sitting” means, in relation to Parliament, any period during which
Parliament is sitting continuously without adjournment and includes any
period during which Parliament is in committee;
“statutory expenditure” means expenditure charged on the Consolidated
Fund by any written law (including this Act) other than an Appropriation Act;
“Supplementary Appropriation Act” means any Act the purpose of which
is the appropriation of moneys in supplementation of the appropriation
already made by an Appropriation Act.
PART II - POWERS AND DUTIES OF MINISTER
3 Supervision of finances
(1) The Minister shall so supervise the finances of the Government as to ensure
that a full account is made to Parliament and for such purposes shall, subject
to the provisions of this Act, have the management of the Consolidated Fund
Public Finance Act CAP. 4.20 Section 4
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and the supervision, control and direction of all matters relating to the
financial affairs of the Government.
(2) In the discharge of the duties imposed upon him by subsection (l) the
Minister —
(a) shall take all proper steps to ensure that any regulations made or
directions and instructions given pursuant to the provisions of section
12 are brought to the notice of all persons directly affected thereby but
subject as aforesaid and notwithstanding the provisions of section 25 of
the Interpretation and General Provisions Act2 the Minister shall not be
bound to cause such regulations to be published by exhibition or to be
printed in the Gazette;
(b) shall be entitled to inspect all Government offices and shall be given
access at all times thereto and shall be given all available information
he may require with regard to the moneys and property specified in
section 6 and to all documents and records in respect thereof so far as
may be necessary for the purpose of compliance with subsection (1).
(3) In the discharge of his duties in connection with the management and
operation of the Government's accountancy organization and central treasury,
the Minister shall —
(a) ensure the maintenance of a system that brings promptly and properly
to account all moneys received and paid by the Government;
(b) refuse payment on any voucher wrong or insufficient in content, or that
contravenes any regulations, directions or instructions properly made or
given under this or any other Act for the management of public
moneys, or that is in his opinion in any other way unacceptable as a
charge on the public moneys;
(c) investigate or cause to be investigated any defect in departmental
control of revenue, expenditure, cash, stamps and other property of the
Government that may be brought to his notice;
(d) ensure, so far as is practicable, that adequate provision is made for the
safe custody of public moneys and stamps and for the control of
Government property;
(e) require that the control, management and audit of public finances shall
be conducted in accordance with generally accepted international
accounting practices and take into consideration the requirement for
good stewardship and developing practices with respect to the reporting
of public finances.
4 National Budget
The National Budget prepared in terms of section 165 of the Constitution shall be in
such form as the Minister may determine or as Parliament may direct:
Section 5 CAP. 4.20 Public Finance Act
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Provided that —
(a) the estimates of statutory expenditure shall show the sums to be issued
from the Consolidated Fund to meet the expenditure on such service
and shall contain a reference to the law authorising expenditure on such
service to be charged on the Consolidated Fund;
(b) the estimates of each Expenditure Head shall —
(i) describe the ambit of the Head; and
(ii) show the sum required to be applied to such Head by
appropriation from the Consolidated Fund; and
(iii) contain a reference to the accounting officer appointed in respect
of such Head.
5 Power to make regulations
The Minister may make such regulations and may give such directions and
instructions as may appear to him to be necessary and expedient for the proper
carrying out of the intent and purposes of this Act and for the safety, economy and
advantage of the public revenue and property.
6 Accounting and accountable officers to obey instructions
Every accounting officer and every accountable officer shall obey all regulations
made and directions or instructions given by the Minister or under powers delegated
by him in respect of the custody and handling of and the accounting for public
moneys, public stores, stamps, investments, securities or 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 either alone or jointly
with any other public officer or any other person.
7 Saving in relation to trusts
Nothing in this Act shall extend to, abridge or alter the terms of any trust or shall be
construed as authorising the Minister to make any regulations or to give 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.
Public Finance Act CAP. 4.20 Section 8
2008 Revised Edition
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PART III - THE CONSOLIDATED FUND
8 Repayments from Consolidated Fund
Without prejudice to any other expenditure which may be authorised by this or any
other Act, expenditure by the Minister from the Consolidated Fund is hereby
authorised for the purpose of repaying any moneys received in error by the
Consolidated Fund or for the purpose of paying such sums as may be required for
drawbacks, rebates or discounts.
9 Revenues and other moneys to be paid into Consolidated Fund
(1) Subject to sections 19 and 20 all revenues and other moneys raised or
received for the purpose of the Government of Tuvalu shall be paid into the
Consolidated Fund in accordance with the instructions of the Minister.
(2) For the avoidance of doubt it is hereby declared that the reference to moneys
raised or received for the purpose of the Government does not include moneys
received on deposit.
10 Payments
(1) The Minister shall from time to time authorise the issue from the
Consolidated Fund of sums coming in the course of payment during the
financial year for statutory expenditure.
(2) On the coming into operation of any Appropriation Act or Supplementary
Appropriation Act the Minister shall authorise by Warrant under his hand the
issue and payment from the Consolidated Fund of such sums as may have
been applied to the service of the financial year by such Appropriation Act.
(3) Notwithstanding the issue of a Warrant, it shall be within the discretion of the
Minister to limit or suspend at any time expenditure (not being statutory
expenditure) with or without cancelling the Warrant if in his opinion financial
exigencies or the public interest so require.
11 Consolidated Fund moneys to be kept with specified banks
All sums accounted for in the Consolidated Fund shall be kept with such bank or
banks as the Minister shall from time to time determine:
Provided that this section shall not apply to moneys invested under the provisions of
section 12.
Section 12 CAP. 4.20 Public Finance Act
2008 Revised Edition Page 10
12 Investment of moneys
(1) The Minister may authorise the investment of moneys forming part of the
Consolidated Fund with a bank either at call or subject to notice not exceeding
12 months or with the Joint Consolidated Fund administered by the Crown
Agents or in a manner authorised for the investment of property in the hands
of trustees by any law for the time being in force in England.
(2) All investments made under this section together with any interest received
therefrom shall form part of the Consolidated Fund, and the issue of such
moneys from the Consolidated Fund for the purpose of such investment shall
be deemed to be statutory expenditure.
13 Advances
(1) Subject to the provisions of this section, the Minister may authorise the
disbursement 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, any other Government;
(b) to, or on account of, any Special Fund where such advances are
recoverable before the close of the financial year in which such
advances are made;
(c) to public officers for such purposes and on such terms and conditions as
may be prescribed from time to time;
(d) to meet expenditure authorised by a Loan Act in anticipation of the
receipt of any instalment of the loan authorised by such Act;
(e) in accordance with a specific agreement, to agents appointed by the
Government to perform functions on its behalf;
(f) for such other purposes and subject to such terms and conditions as
Parliament may from time to time approve.
(2) The total of the sums issued and disbursed for the purpose of making
advances shall not exceed in aggregate at any one time after deducting
repayments an amount of $750,000.3
14 Money issued but not spent to be paid to the Consolidated Fund
Every appropriation by Parliament of public moneys for the service of any financial
year shall lapse and cease to have any effect at the close of that financial year, and
any moneys issued from the Consolidated Fund but not spent shall be repaid to the
Consolidated Fund.
Public Finance Act CAP. 4.20 Section 15
2008 Revised Edition
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15 Interim expenditure
(1) If the Appropriation Act in respect of any financial year has not come into
operation by the beginning of that financial year, Parliament by resolution
may empower the Minister to authorise the issue of monies from the
Consolidated Fund for the purpose of meeting expenditure necessary to carry
on the public services at a level not exceeding the level of those services in
the previous financial year, until the expiration of four months from the
beginning of that financial year or the coming into operation of the
Appropriation Act, whichever is the earlier.
(2) Where at any time Parliament has been dissolved before any provision or any
sufficient provision is made for the financing of the carrying on of the
Government of Tuvalu, the Minister may issue a warrant for the payment out
of the Consolidated Fund of such sums as he may consider necessary for the
continuance of the public services from the date of dissolution until the expiry
of a period of 3 months commencing with the date on which Parliament first
meets after that dissolution, but a statement of the sums so authorised shall as
soon as practicable be laid before Parliament and the aggregate sums shall be
included, under the appropriate heads, in the next Appropriation Bill.
(3) Where in respect of any financial year the Minister is satisfied that an urgent
and unforeseen need has arisen to authorise for any purpose advances from
the Consolidated Fund for expenditure in excess of the sum appropriated for
that purpose by an Appropriation Act, or for a purpose for which no sum has
been appropriated, he may, subject to the provisions of subsection (4)
authorise such advances by warrant and shall include such amount in a
Supplementary Appropriation Bill for appropriation at the meeting of
Parliament next following the date on which the warrant was issued.
(4)
(i) A warrant under subsection (3) may be issued only if:
(a) funds cannot be provided under section 17 of this Act; and
(b) the expenditure cannot be deferred without detriment to the public
interest.
(ii) The total of sums authorised to be advanced in anticipation of the grant of an
appropriation shall not exceed at any one time the sum of $750,000.4
(iii) Upon the grant of an appropriation to meet the expenditure in respect of
which an advance was made from the Consolidated Fund, the warrant
authorising such advance shall cease to have effect and the advance shall be
deemed to have been made for the purpose of the grant and shall be accounted
for accordingly.
Section 16 CAP. 4.20 Public Finance Act
2008 Revised Edition Page 12
16 Accounting officers
(1) An accounting officer shall be appointed in respect of each Expenditure Head
for any financial year to control and account for the expenditure of moneys
applied to that Head by any Appropriation Act.
(2) An accounting officer shall be personally accountable for all public moneys
received, collected or disbursed and for all public stores received, held or
disposed of by or on account of the department or service for which the Head
for which he is the accounting officer is provided.
(3) An accounting officer may, and shall if so required by the Minister, define in
writing the extent to which the powers and duties conferred or imposed upon
him may be exercised or performed on his behalf by any public officer under
his control and give such directions as may be necessary to secure the proper
exercise or performance of such powers and duties.
17 Reallocations within Heads
(1) If in the opinion of the Minister the exigencies of the public service render it
necessary or expedient to vary the sum assigned to any purpose within any
Expenditure Head shown in the estimates of expenditure for any financial
year, or to make provision for a new purpose within such Head, he may direct
by means of a Virement Warrant under his hand that there shall be applied in
aid of any purpose for which the sum assigned may be deficient or in aid of
any new purpose a further sum out of any surplus arising on any sum assigned
to any other purpose within the same Head:
Provided that —
(i) the sum appropriated to any Head by the Appropriation Act and by any
Supplementary Appropriation Act is not thereby exceeded; and
(ii) any new purpose to which any sum is assigned shall be within the ambit
of the Head.
(2) Any Virement Warrant issued under subsection (1) shall be laid before
Parliament at its sitting next following the date on which such Virement
Warrant was signed.
18 Restrictions on borrowing
(1) The Government shall not borrow money except in accordance with the
provisions of a written law.
(2) The powers conferred by any general or specific Loans Act or by an
Appropriation Act to borrow money by means of advances from a bank or
from the Crown Agents may be exercised by means of a fluctuating overdraft.
(3) Except as otherwise provided by or under any other law for the time being in
force, any money borrowed by the Government shall be paid into and form
Public Finance Act CAP. 4.20 Section 19
2008 Revised Edition
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part of the Consolidated Fund or such other public fund as the Minister may
in each case designate and shall be available in any manner in which the
Consolidated Fund or such other public fund, as the case may be, is available.
(4) An account set up by an advance made in accordance with a specific
agreement under section 13(1)(e) may be overdrawn in accordance with that
agreement but shall be reimbursed as soon as possible.
(5) Except as otherwise provided by or under any other law for the time being in
force the principal money and all interest and other charges on any money
borrowed by the Government, and the interest upon any imprest account
overdrawn under sub-section (4), shall be charged upon and paid out of the
Consolidated Fund or such other public fund as the Minister may in each case
designate without further appropriation than this Act.
PART IV - OTHER PUBLIC FUNDS
19 Development Fund
(1) There is hereby established a capital fund to be known as the Development
Fund, which shall not form part of the Consolidated Fund and which shall not
be a Special Fund within the meaning of section 20 of this Act.
(2) The Development Fund shall consist of the following moneys —
(a) such moneys as may be appropriated for the purpose by Parliament;
(b) moneys received from any other government and any body or person as
grants to the Government of Tuvalu for development purposes;
(c) moneys received from the proceeds of loans raised for the purpose by
or on behalf of the Government;
(d) moneys received by way of interest or dividend on any investment or
loan of any moneys belonging to the Development Fund;
(e) moneys earned by or received in reimbursement of any project financed
wholly or in part from the Development Fund:
Provided that the moneys referred to in paragraph (b), (d) or (e) may with the
prior approval of Parliament in any case be paid into the Consolidated Fund or
such other public fund as the Minister may in each case designate.
(3) The Development Fund shall be operated in accordance with the Rules set out
in the Schedule to this Act.
(4) The Minister may by order amend the Rules set out in the Schedule but shall
cause a copy of any order so made to be laid before Parliament at its sitting
next following the date on which the order comes into operation.
Section 20 CAP. 4.20 Public Finance Act
2008 Revised Edition Page 14
(5) Subject to the provisions of this section any moneys forming part of the
Development Fund which are not required for immediate use for development
purposes may be invested in like manner to that permitted by section 12(1) of
this Act in respect of the Consolidated Fund.
20 Special Funds
(1) The Minister may from time to time by order establish Special Funds which
shall not form part of the Consolidated Fund. Any such fund shall be
governed by the provisions of this section and the moneys of such a fund may
only be expended for the purposes for which it was established.
(2) There shall be paid into any Special Fund all revenue of the Government
exclusively relating to or derived from the subject-matter of such a fund
together with any moneys appropriated for that purpose by Parliament.
(3) The Minister shall, subject to the provisions of this section, have the
management of any Special Fund established under this section and for such
purposes may —
(a) authorise the investment of moneys standing to the credit of any Special
Fund;
(b) by order direct that any Special Fund be wound up;
(c) make regulations for the control and operation of any Special Fund.
(4) Where the Minister directs that any Special Fund shall be wound up,
thereupon, after all liabilities of such Fund have been paid, the Fund shall be
closed accordingly and the balance of moneys standing to the credit of such
Fund shall be paid into the Consolidated Fund.
PART V - DEPOSITS
21 Deposits
Any moneys, not being moneys raised or received for the purposes of the
Government, which may be deposited with the Government (such moneys being
hereinafter called “deposits”) shall not form part of the Consolidated Fund and
except as provided in this Act shall not be applied in any way for the purposes of the
Government.
22 Investment of deposits
(1) The Minister may authorise the investment of deposits in like manner to that
provided by section 12(1) in respect of the Consolidated Fund.
Public Finance Act CAP. 4.20 Section 23
2008 Revised Edition
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(2) Any interest or dividend received in respect of deposits invested in
accordance with subsection (1) shall be paid into the Consolidated Fund.
23 Deposits may be used to finance advances
Subject to the provisions of this section, the Minister may authorise the use of
deposits for the purpose of making advances for all or any of the purposes specified
in section 13(1):
Provided that deposits shall not be so used where the advance in question is
repayable or recoverable as the case may be after the close of the financial year in
which such advance is made.
24 Unclaimed deposits
Any deposit which is unclaimed for 5 years shall be paid into the Consolidated Fund
for the public purposes of the Government:
Provided that if any person entitled thereto shall subsequently prove to the
satisfaction of the Minister his claim to any such deposit the Minister shall
thereupon refund to such person his deposit.
PART VI - THE AUDITOR-GENERAL
25 Duty in respect of accounts
In exercising his powers of audit and examination of accounts, the Auditor-General
shall satisfy himself —
(a) that all reasonable precautions have been taken to safeguard the
collection and custody of revenue and that the Acts, directions and
instructions relating thereto have been duly observed;
(b) that all moneys which have been appropriated and disbursed have been
applied to the purposes for which they were appropriated, and that the
expenditure conforms to the authority which governs it;
(c) that all public moneys other than those which have been appropriated
have been dealt with in accordance with proper authority;
(d) that all reasonable precautions have been taken to safeguard the receipt,
custody, issue and proper use of cash, stamps, securities and stores and
that the regulations, directions and instructions relating thereto have
been duly observed;
(e) that adequate regulations, directions or instructions exist for the
guidance of accounting officers and accountable officers; and
Section 26 CAP. 4.20 Public Finance Act
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(f) that expenditure has been incurred with due regard to economy and the
avoidance of waste.
Notwithstanding the provisions of this section the Auditor-General shall not be
required to examine, inquire into or audit the accounts of any trust or other fund or
account not provided for in section 31 unless the officer administering such fund or
account has been directed by the Minister as provided in subsection (2)(b) of that
section, to prepare, sign and transmit to the Auditor-General an account of such fund
or account.
26 Powers of Auditor-General
(1) In the exercise of his duties to audit, inquire into and examine accounts the
Auditor-General may —
(a) call upon any officer for any explanation and information which he may
require in order to enable him to discharge his duties;
(b) authorise any person publicly carrying on the profession of accountant
or any public officer to conduct on his behalf any inquiry, examination
or audit and such person or officer shall report thereon to the Auditor-
General;
(c) without the payment of any fee cause search to be made in and extracts
to be taken from any book, document or record pertaining to matters of
finance or accounts in any public office;
(d) lay before the Attorney-General a case in writing as to any question
regarding the interpretation of any Act or regulation concerning the
powers of the Auditor-General or the discharge of his duties, and the
Attorney-General shall give a written opinion upon such question.
(2) In the exercise of his duties the Auditor-General or any person duly
authorised by him in writing shall have access to all records, books, vouchers,
and documents pertaining to matters of finance and accounts, and to all cash,
stamps, securities, stores or other Government property of any kind
whatsoever in the possession of any public officer.
(3) Anything which, under the authority of this Act and any other law for the time
being in force, is directed to be done by the Auditor-General other than the
certifying of and reporting on accounts, may be done by any person duly
authorised by him in writing.5
27 Discretion with regard to vouchers etc.
(1) Notwithstanding the provisions of sections 25 and 26, in the examination of
any account it shall be lawful for the Auditor-General, in cases where it shall
appear to him to be reasonable and expedient for the public service and after
satisfying himself that the vouchers have been examined and certified as
correct by an accounting officer, to admit and allow without further
Public Finance Act CAP. 4.20 Section 28
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examination the sums so certified in support of the charges to which they
relate.
(2) In his examination of any account the Auditor-General may, in cases where
the accuracy and propriety of the payment is not in doubt, admit and allow
any voucher supporting such payment notwithstanding that such voucher is
defective in some particular.
(3) In the event that any voucher —
(a) has been lost or inadvertently destroyed; or
(b) is not admitted and allowed by the Auditor-General under
subsection (2),
the Minister may, if upon due inquiries he is satisfied as to the accuracy and
propriety of the payment and as to the circumstances of such defect, loss or
destruction, authorise the payment to stand charged in the accounts and the
Auditor-General shall accept such voucher or dispense with its production as
the case may be.
28 Limit on duties of Auditor-General
(1) The Auditor-General shall not be required to undertake any examination of
accounts partaking of the nature of a pre-audit which involves the acceptance
by him of responsibility which would preclude him from full criticism of any
accounting transaction after such transaction has been duly recorded.
(2) The Auditor-General shall not be required to undertake any duties outside
those pertaining to his office if in his opinion such duties are incompatible
with the responsibilities and duties of that office.
29 (repealed)6
30 Acting Auditor-General
Every person appointed to act as the Auditor-General, during the period he is so
acting, shall have and may exercise all the powers and authority of, and shall
perform the duties imposed upon, the Auditor-General by the Constitution, this Act
or any other law for the time being in force.7
Section 31 CAP. 4.20 Public Finance Act
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PART VII - THE AUDIT AND EXAMINATION OF PUBLIC
ACCOUNTS
31 Annual Accounts
(1) Within a period of 6 months (or such longer period as Parliament may
appoint) after the end of each financial year there shall be transmitted to the
Auditor-General by the Minister accounts showing fully the financial position
of Tuvalu, which shall include —
(i) a statement of assets and liabilities;
(ii) a statement of receipts and payments, by Heads and other receipts and
payments;
(iii) a comparative statement of actual and estimated revenue, by sub-heads;
(iv) a comparative statement of actual and estimated expenditure, by sub-
head;
(v) a statement of Special Funds’ balances, by annual and aggregate
receipts and payments;
(vi) a statement of other ledger balances;
(vii) a statement of balances on advances account from the Consolidated
Fund, analysed under the several categories set out in section 13;
(viii) a statement of balances on advances accounts from deposits;
(ix) a statement of balances on deposit account;
(x) a statement of contingent liabilities;
(xi) a statement of investments, showing the funds on behalf of which such
investments have been made;
(xii) a statement of outstanding loans made from the Consolidated Fund, by
annual and aggregate receipts and payments;
(xiii) a statement of the Public Debt;
(xiv) a statement of arrears of revenue, by sub-head;
(xv) tabulated summaries of unallocated stores and manufacturing accounts;
(xvi) a statement of the balance on the Development Fund account by annual
and aggregate receipts and payments;
(xvii) a statement of the balances on clearance account;
(xviii) a statement of unauthorised expenditure by sub-head and item showing
the provision as at 31st December, the expenditure for the year and the
excess of expenditure over provision;
(xix) a statement of balances on remittance account.
Public Finance Act CAP. 4.20 Section 32
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(2) Within a period of 6 months after the close of such period of account as may
be prescribed by any law relating thereto, or in the absence of such law, such
period of account as the Minister may appoint —
(a) any officer administering a Special Fund; and
(b) any officer administering any trust or other fund or account not
provided for in this section,
if so directed by the Minister, shall prepare, sign and transmit to the Auditor-
General an account of such fund or account relating to the period of account
in such form as the Auditor-General may from time to time require.
32 Report on accounts
(1) On receipt of the accounts prescribed by section 31 the Auditor-General shall
cause them to be examined and audited and shall, within a period of 9 months
(or such longer period as Parliament may appoint) after the end of the
financial year to which the accounts relate, certify in respect of each account
the result of the examination and audit and shall within the aforesaid period
prepare and sign and transmit to Parliament a report upon the examination and
audit of all such accounts, together with copies of the accounts, certified as
aforesaid.
(2) The Auditor-General may, and if so required by Parliament shall, transmit to
Parliament, a report on any Heads in excess and any shortfalls of revenue
collected against heads of revenue.
(3) The Auditor-General may at any time if he considers it desirable, transmit a
special report to Parliament. Such special report may be made on any matter
incidental to his powers and duties under the Constitution, this Act or any law
for the time being in force.8
33 Powers of Parliament
(1) Every report of the Auditor-General laid before or presented to Parliament
under this or any other section shall be dealt with by Parliament in the manner
prescribed by its rules of procedure.
(2) In this and the preceding section any reference to Parliament may be
construed so as to include a reference to the Public Accounts Committee.
34 Irregularities
If at any time it appears to the Auditor-General that any irregularities have occurred
in the receipt, custody, issue or expenditure of public moneys or in the receipt,
custody, issue, sale transfer or delivery of any stamps, securities, stores or other
Government property, or in the accounting for the same, he shall immediately bring
the matter to the notice of the accounting officer concerned and the Minister.
Section 35 CAP. 4.20 Public Finance Act
2008 Revised Edition Page 20
PART VIII - EXAMINATION AND AUDIT OF ACCOUNTS OF
STATUTORY BODIES
35 Accounts of statutory bodies9
(1) Unless other provision is made by or under an Act of Parliament in respect of
the audit and examination of them, the Auditor-General shall audit and
examine, and report to Parliament on the accounts, finances and
property of —
(a) each branch, department, agency and instrumentality of the
Government; and
(b) each body set up by an Act of the Parliament, or by executive or
administrative act of the Government for governmental or official
purposes.
(2) Notwithstanding that other provision for examination or audit is made as
referred to in subsection (1), the Auditor-General may, if he thinks it proper to
do so, examine and audit, and report to Parliament on, any accounts, finances
or property of an organization referred to in that subsection so far as they or it
relate to, or consist of or are derived from, public money or property of
Tuvalu.
(3) In the exercise of the duty imposed and power conferred upon him by this
section, the Auditor-General shall have in relation to an organization referred
to in subsection (1) and its members, officers and employees, the same
powers and discretion as are conferred upon him by sections 25 and 26 in
relation to public officers, public moneys, stamps, securities, stores or other
Government property.
36 (repealed)
37 Audit fees to be charged
Any corporation and any statutory board, body or commission the accounts of which
are audited by the Auditor-General under the provisions of section 35 shall in
respect of such audit pay such fee as may, with the concurrence of the Minister, be
determined by the Auditor-General:
Provided that the Minister may, in any case in which it shall appear to him to be in
the public interest that no audit fee shall be paid, direct the Auditor-General to waive
the payment of such fee.
Public Finance Act CAP. 4.20 Section 38
2008 Revised Edition
Page 21
PART IX - ABANDONMENT OF CLAIMS, ETC., AND WRITE-
OFF OF PUBLIC MONEYS AND STORES
38 Abandonment of claims and write-off of public moneys and stores
(1) Parliament may, by resolution, authorise the Minister to the extent specified in
such resolution to abandon and remit any claim by or on behalf of the
Government or any service thereof and to write-off losses of public moneys,
stores or other moveable property belonging to the Government or provided
for the public service.
(2) Such resolution may be in general terms and of continuing application and
may be made retrospective to any date.
(3) The Minister may by writing under his hand delegate to any public officer any
of the powers which he is authorised to exercise by resolution of Parliament
under this section.
39 Disposal of serviceable stores or property
The Minister may authorise the gift of serviceable Government stores or property
not required for Government purposes to institutions or organizations in Tuvalu
established solely or principally for educational, scientific, cultural or charitable
purposes:
Provided that where the value of such stores or property exceeds $1,000 the prior
approval of Parliament shall be required.
SCHEDULE CAP. 4.20 Public Finance Act
2008 Revised Edition Page 22
SCHEDULE
(Section 19(3))
RULES FOR THE OPERATION OF THE DEVELOPMENT FUND
1.
(1) No moneys shall be issued from the Development Fund (hereinafter called
“the Fund”) for the purpose of meeting any expenditure except in accordance
with a Development Warrant under the hand of the Minister.
(2) Subject to rules 3, 4, 5 and 6 no Development Warrant shall be issued unless
the expenditure in question has been authorised by Parliament by resolution.
2.
(1) The Minister shall cause to be prepared in each financial year estimates of the
revenue and expenditure of the Fund for the next following year.
(2) The proposals for all expenditure contained in the estimates shall be submitted
to Parliament before the end of the financial year to which they relate,
together with a statement showing the estimated balance of the Fund at the
commencement of the next financial year and the anticipated revenue
accruing to and total expenditure from the Fund during the next financial year.
3.
(1) If Parliament has not yet authorised for any financial year the expenditure of
sums necessary to finance the continued construction and provision of
development works for which provision was made from the Fund in the
previous financial year the Minister may by warrant authorise the issue from
the Fund of such sums as are necessary to finance the continued construction
and provision of such works to enable such works to be carried out for a
period of 4 months or until the expenditure of sums necessary to finance the
continued construction and provision of such works has been approved by
Parliament whichever is the shorter period.
(2) Notwithstanding paragraph (1) no sum may be issued under this rule in
respect of any subhead where such sum would be in excess of 20 per cent of
the estimate of the total cost for such sub-head as it appears in the
development estimates or supplementary development estimates approved by
Parliament.
4.
(1) When in any financial year the development estimates or supplementary
development estimates for that year include an estimate of total cost for any
subhead, over any period, which is in excess of the total sum appropriated for
Public Finance Act CAP. 4.20 SCHEDULE
2008 Revised Edition
Page 23
that sub-head for the current year the Minister may by warrant authorise the
expenditure of any sum which, when added to the expenditure incurred on the
corresponding sub-head in previous years and to the expenditure already
authorised for the same sub-head for the current year, does not cause to be
exceeded the latest estimate of total cost for that sub-head included in the
development estimates or supplementary development estimates approved by
Parliament for that year.
(2) When at the commencement of any financial year the provision included for
any sub-head in the development estimates or supplementary development
estimates of the immediately preceding financial year has been only partially
expended the Minister may by warrant authorise the expenditure of the
unspent balance of such provision under a corresponding sub-head in the
current financial year:
Provided that the amount so authorised shall not when added to the
expenditure incurred in previous years and to the provision already made in
the current year, exceed the latest overall estimate of total cost for the sub-
head included in any development estimates or supplementary development
estimates approved by Parliament.
(3) No warrant under this rule shall authorise the issue of an amount which if it
were expended at once would exceed the balance of the Fund remaining after
all other expenditure authorised for the year has been provided for.
5. The Minister may by warrant authorise the issue from the Fund of such sum
as may be necessary for expenditure under any sub-head of a special character
which is not provided for in the expenditure already authorised by Parliament
for that year and which cannot or cannot without serious injury to the public
interest be postponed until adequate provision can be made by Parliament:
Provided that no such warrant shall authorise the issue of an amount which if
it were expended at once would exceed the balance of the Fund remaining
after all other expenditure authorised for that year has been provided for.
6.
(1) The Minister may in any year by warrant authorise the issue from the Fund of
such additional sum as may be necessary for expenditure under any sub-head
which has been authorised by Parliament for that year and the issue of which
cannot without serious injury to the public interest be postponed until
adequate provision can be made by Parliament:
Provided that no such warrant shall authorise the issue of a sum in excess of
20 per cent of the latest estimate of total cost for that sub-head as included in
any development estimate except under the provisions of rule 5.
(2) No warrant under this rule shall authorise the issue of an amount which if it
were expended at once would exceed the balance of the fund remaining after
all other expenditure authorised for the year has been provided for.
SCHEDULE CAP. 4.20 Public Finance Act
2008 Revised Edition Page 24
7. The Minister shall at the sitting of Parliament next following the issue of any
warrant under rule 4, 5 or 6 present a supplementary estimate covering the
expenditure to Parliament for its approval.
Public Finance Act CAP. 4.20 SCHEDULE
2008 Revised Edition
Page 25
ENDNOTES
1 1990 Revised Edition; Acts 5 of 1978, 1 of 1986, 3 of 1989 and 9 of 1990
Amended by Act 19 of 1991, commencement 1 December 1992 by GN 5/1992
Amended by Act 1 of 2001, commencement 5 May 2001 by LN 5/2001
Amended by Act 4 of 2009, commencement 6 July 2009
2 Cap. 1.04
3 Amended by Act 4 of 2009
4 Amended by Act 1 of 2001
5 Inserted by Act 19 of 1991
6 Repealed by Act 19 of 1991
7 Substituted by Act 19 of 1991
8 Inserted by Act 19 of 1991
9 Substituted by Act 19 of 1991
