NAME : TAWANDA P NYAKWAWA

REG NUMBER : R1611139

COURSE : AC403

TASK : ASSIGNMENT 1

DATE : 27 SEPTEMBER 2019

Question: Describe how public funds should be accounted for, controlled and administered in

accordance with the provisions of public finance legislation. (25)

Public funds are referred to as the funds of every political division of the state to which taxes are

levied or charged apon for public purposes. The term public fund also covers the revenue or money

income of a government, state, or municipal corporation and the bonds, stocks, or other securities

that are owned by a nation or state government. Public funds are also referred to as the government

expenditure which serves the purpose of acquiring goods and services for current use. The use of

these goods and services should have the direct satisfaction to individuals or collective needs of the

members of the community. These funds are usually under the governance of the responsible

ministries, which follows the legislation that set the basis for recognition and utilisation of these

public funds. It is clearly set out in the constitution of Zimbabwe the way in which these public

funds should be utilised through the Acts of Parliament and it is with the responsible ministry to

apply other principles in public finance management in order to avoid fraud and misuse of

government funds which is entrusted to them.

In accordance with the public finance Act it is provided that the relationship between the

government, acting on behalf of the crown, and parliament, representing the public, is central to

how public resources are managed. It is the responsibility of the Ministers to implement

government policies, and deliver public services, through public servants; but these Ministers are

able to do so if and only if the parliament grants the right to raise, commit and spend resources. The

responsibility to respect and secure the rights of both government and parliament in this process

control and management of public resources, the protection and recovery thereafter is given to the

Treasury. The standards expected of all public services are; honesty, impartiality, openness,

accountability, accuracy, fairness, integrity, transparency, objectivity as well as reliability. All these

standards should be carried out in the spirit of law and the letter of the law that is within the public

interest to high ethical standards.

The Treasury is given the mandate in the management of the consolidated revenue fund as well as

determining the manner in which public resources shall be accounted for; and exercise a general

direction and control over public resources. In terms of Section 78 of the Public Finance

Management Act, the treasury may by notice to officers concerned issue instructions or directions in
relation to matters involving the collection, receipt, custody, control, issue or expenditure of public

money as well as the acquisition, receipt, custody, control, issue, sale, delivery, transfer or disposal

of any State property. In addition, the treasury may also issue a notice in relation to matters

involving the expenditure on any service involving a charge on the Consolidated Revenue Fund, the

operation of any statutory fund as well as the acceptance, on behalf of the State, of any gift,

donation, bequest or other grant of revenue or other property which is made subject to a condition

that is likely to involve a charge on the Consolidated Revenue Fund and the accounting therefor.

However these Instructions or directions issued may require an accounting officer or receiver of

revenue to issue written departmental instructions to the officers in his or her Ministry or

department relating to any matter referred to. Also in accordance to section 21 of the Interpretation

Act (Chapter 1:01), it shall apply with the necessary changes, in relation to the power conferred on

the Treasury to issue instructions or directions.

Additionally, the Constitution of Zimbabwe gives the Treasury is allowed to write off any losses or

deficiencies of public money or the value of any lost, deficient, condemned, unserviceable or

obsolete State property even any public resources payable to or receivable by the State either to or

by an officer for the benefit of a fund established in terms of section 18 which in the opinion of the

Treasury is irrecoverable. The Treasury may also write off any public resources payable to or

receivable by the State or to or by an officer for the benefit of a fund established in terms of section

18 if the difficulties, disadvantages or cost of collection thereof in the opinion of the Treasury

outweighs the value thereof; as well as waive or remit any claim by the State against any person or

another government or agency of another government; and on such terms and conditions as the

Treasury may determine, invest or authorise the investment of any public money held in an account

or fund, as it he is allowed, he can also make a refund of any revenues or public resources

erroneously brought to account as revenues. Moreover, if there is any written off made, the Minister

shall provide a report and present it to the National Assembly thirty days before the financial year

end if he fails by that time, he must present it to the National Assembly not later than thirty days

after the year end. In the same note any investment made shall be repaid to the fund or account to

which the money was withdrawn for the purpose of making such investment.
The implementation of the fiscal policy and a macroeconomic budget for zimbabwe should be

developed by the minister in order to monitor and supervise the finances of Zimbabwe as well as

coordinating inter governmental and international fiscal and financial relations. It is the duty of the

Minister to advise the Government on how public resources should be allocated between reporting

units , constitutional entities, Ministries, public entities as well as any other government

programmes which are independent of the foregoing.

The Minister should make sure that there is transparency and full accounts from time to time and

the time should not be less than annually made to parliament. These accounts should be indicating

the projected and current state of the economy, the fiscal policy of the government as well as the

public resources of Zimbabwe. Minister should also make sure that systems are established

throughout the Government for the purpose of planning, allocation and budgeting public resources

and also approving all requests for the issue of public funds before they are included in any

estimates of the expenditure due to be submitted to the parliament as it is provided by the Act.

Furthermore, the Minister is also held responsible for the Consolidated Revenue Fund management,

its supervision, control as well as the direction all matters which relates to the public resources of

Zimbabwe. The Minister also ensure that there is control of National Assembly over public

resources and transparent systems are established in order to provide a full account pertaining to the

use of resources as well as ensuring the exercise of propriety and regularity in handling and

spending of public funds.

Moreover, there must be an established and operated system which is effective that is used for the

collection of information in order to make sure that there is effective preparation of annual

expenditure estimates which should be considered and approved by the Minister and submitted to

the Parliament. These estimates are prepared in accordance with either any general or specific

directions by the Minister and they should reflect as they can best be attained at the time and the

effective use of these public resources. All these are the duties and responsibilities of the Secretary

or the Paymaster-General. The Secretary also require an accounting officer to supply such

information as it is considered necessary. If the Secretary specify the date and time by which any

information is supplied he or she shall allow a reasonable time for the information to be provided
having regard to the nature of the information which is required. The Secretary shall act as the

Paymaster-General in that capacity and subject to that directions of Treasury in the controlling of

public funds to Government departments and Ministries and perform other functions as per the

Minister’s prescription.

The public accounts should be compiled and effectively managed by the Accountant General. For

the safety and custody of public funds, the Accountant General may give instructions of the general

or even a specific character to accounting officers as it may be necessary for the effective

implementation of the Public Finance Management Act, but this is only done in a manner which is

prescribed and which has the prior consent of the Secretary. The Accountant General shall specify

the basis of the accounting system adopted and the classification system that has to be used and by

doing so, he will ensure that there is a proper system of accounts established in each of them that all

money received and paid by the Government taken into account promptly and properly and this is

done for every Ministry, statutory fund or reporting unit.

In addition, the Accountant General should refuse payment on a voucher which is in support of a

charge placed on the Consolidated Revenue Fund which contravenes the Public Finance

Management Act in any way. If the Accountant General allows a payment against a defective,

destroyed or a voucher which is lost and satisfied with an explanation given to him by his

accounting officer he should produce a report in writing any apparent defect in the expenditure,

cash, revenue and other public resources and non-observance of regulations , instructions and

directions which pertains to those public resources which may be brought to his attention. He

should also take precautions by maintaining efficient checks which involves inspections against

fraud occurrences as well as embezzlement and negligence in connection with these resources of the

public. Furthermore, there should be annual reports as well as financial statements to be laid before

the National Assembly. These financial statements must be accompanied by the audit report and

they should be provided within a period of one month after an accounting officer for the

constitutional entity or public entity to which the Minister is responsible and received the report.

The minister is also deemed to present the finding of any sanctions imposed by the disciplinary

authority which was caused by a case of financial misconduct against the accounting authority.
REFERENCE LIST

1. The Public Finance Management Act 2013, c.22.Available at: https://zimlii.org › legislation ›

consolidated-act › chapter-2219