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St Helena Government’s Financial Regulations Face Scrutiny

The St Helena Government has introduced new financial regulations aimed at ensuring transparency and accountability in the management of public funds.

Restrictions on Withdrawals from Consolidated Fund

According to the new rules, any amounts withdrawn from the Consolidated Fund must be restricted to one-third of the aggregate sums provided for in the Appropriation Ordinance and Supplementary Ordinances of the previous financial year. This restriction can only be waived in exceptional circumstances certified by the Governor and a Secretary of State.

Special Warrants

The regulations also provide for the issuance of Special Warrants, which allow the Financial Secretary to make urgent payments from the Consolidated Fund without prior approval of the Legislative Council. The Financial Secretary must notify the Council within 10 days of issuing such a warrant.

Virement Warrants

In addition, the regulations permit the Financial Secretary to issue Virement Warrants, which enable the transfer of funds between different purposes within a Head of Expenditure. This can only be done if savings can be foreseen on other purposes and the total sum appropriated to any Head is not exceeded.

Withdrawal Warrant

The government has also introduced a new mechanism for withdrawing funds from the Consolidated Fund in cases where financial exigencies require it. This Withdrawal Warrant must be issued by the Governor, acting on the recommendation of the Financial Secretary, and after consulting with the Executive Council.

Accountability and Transparency

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The regulations emphasize the importance of accountability and transparency in financial management.

  • Accounting Officers are responsible for providing information regarding physical performance and any variances from planned deliverables contained in the Estimates.
  • The Finance Directorate will operate the main accounts for Government, but Accounting Officers must ensure the correctness of their Service Area’s accounts by carrying out necessary reconciliations and taking corrective action.

Managing Revenues

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The regulations also highlight the importance of managing revenues effectively.

  • Accounting Officers are responsible for ensuring the prompt assessment, collection, and bringing to account of all revenues in their Service Area.
  • Public officers must similarly ensure the prompt assessment, collection, and bringing to account of all revenues under their control.
  • If revenue subheads appear likely to be shortfalls for the year, public officers must notify the Financial Secretary immediately through their Accounting Officers, so that government can reassess its spending priorities.

Conclusion

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These new financial regulations demonstrate the St Helena Government’s commitment to transparency, accountability, and effective management of public funds.