Government Spends Big: New Rules Introduced for Financial Management

Effective Use of Public Funds Ensured with Revised Regulations

The Government of St. Helena has introduced new financial regulations aimed at ensuring the effective and efficient use of public funds.

Key Changes to Financial Management

• Special Warrants: The Financial Secretary can issue a Special Warrant to make payments from the Consolidated Fund in cases where no other provisions exist.
  • This warrant will constitute an appropriation of that amount and must be notified to the Legislative Council within 10 days of its issue.
• Supplementary Estimates: Supplementary Estimates can be laid before the Legislative Council if:
  • Initial appropriations are insufficient
  • A new need arises for which no amount has been appropriated
  • A Supplementary Appropriation Bill will then be introduced to provide for the necessary expenditure and appropriation
• Virement Warrants: The Financial Secretary may issue Virement Warrants to transfer funds between heads of expenditure, provided that savings can be foreseen on other purposes within the same head.
  • All Virement Warrants must be submitted electronically to the Financial Secretary
• Withdrawal Warrants: In cases where financial exigencies require it, the Governor may issue a Withdrawal Warrant authorizing the limitation or suspension of appropriation expenditure.
  • Notification of every Withdrawal Warrant must also be laid before the Legislative Council within 10 days of its issue

Emphasis on Accountability and Transparency

• Accounting for Performance: The Government has emphasized the importance of accounting for performance, with Accounting Officers being responsible for providing information on their Service Area’s outputs and deliverables.
• Main Accounts Operation: Corporate Finance will operate the main accounts for Government, while Accounting Officers are responsible for ensuring the correctness of their Service Area’s accounts.

Managing Revenues

• Revenue Assessment and Collection: Accounting Officers must ensure the prompt assessment, collection, and bringing to account of all revenues in their Service Area.
• Debtor Management: The Government aims to recover outstanding debts through the Court system.

Conclusion

The new financial regulations aim to provide greater transparency and accountability in the use of public funds, while ensuring that the Government can continue to deliver effective and efficient services to the people of St. Helena.