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Maltese Laws |
FINANCIAL ADMINISTRATION AND AUDIT ACT
To regulate the receipt, control and disbursement of public moneys, to provide for the audit of accounts in relation thereto, and to provide for other matters connected with or incidental to the purposes aforesaid.
29th May, 1962
ACT I of 1962, as amended by Act VI of 1962; Lega1 Notice 47 of 1962; Act XII of 1965; Legal Notices: 17 and 46 of 1965; Acts: XXIV of 1967, XXXI of 1968, XXXII of 1969; Legal Notices: 48 of 1970, 24 and 93 of 1971, 48 of 1973, 50 of 1974; Act LVIII of 1974; Legal Notices: 56 of 1975, 63 of 1976; Acts: XXII and XXXIX of 1976; Legal Notices: 48 of 1977, 4 and 42 of 1978, 33 of 1979; Acts: III and XXIX of 1979; Legal Notices: 26 of 1980, 4 of 1981,
3 of 1982; Acts: XIII of 1983, XVI of 1997, I of 2004 and XIII of 2005; Legal Notice 410 of
2007;p and Act IV of 2011.
ARRANGEMENT OF ACT
Articles | ||
Part I. | Preliminary | 1-2 |
Part II. | General Provisions | 3-4 |
Part III. | Repealed by: XVI.1997.7. | 5-11 |
Part IV. | Accounting Officers | 12-13 |
Part V. | Banking arrangements and Collection of moneys | 14-21 |
Part VI. | Appropriation of Public Moneys | 22-25 |
Part VII. | Payment of Moneys | 26-38 |
Part VIII. | Investments | 39-46 |
Part IX. | Moneys outside Malta | 47 |
Part X. | Audit and Inspection | 48-61 |
Part XI. | Accounts and Statements | 62-70 |
Part XII. | Miscellaneous SCHEDULE | 71-73 |
PART I
PRELIMINARY
Short title. 1. The short title of this Act is the Financial Administration and Audit Act.
Interpretation. Amended by: L.N. 46 of 1965; III. 1979.2;
I. 2004.2.
Cap. 461.
"accounting officer" means a person holding or acting in the office of permanent head of a government department and includes
every person who is charged with the duty of collecting, receiving or accounting for, or who in fact collects, receives or accounts
for, any public moneys, or who is charged with the duty of disbursing, or who does in fact disburse, any public moneys, and every
person who is charged with the receipt, custody or disposal of, or the a ccounting for, public stores , or who in fact receives,
holds or disposes of public stores:
Provided that where there is in force a direction in writing by the Minister that the duties, functions and responsibilities of an
accounting officer specified in the direction shall vest exclusively i n o n e or m o re p ubl ic offic e rs a s is so spe c ified,
"accoun ti ng officer", in respect of the said duties, functions and responsibilities and to the extent specified in the
said direction, means and includes only the public officer or public officers specified as aforesaid;
"bank" means any bank which for the time being is entrusted with the keeping of public moneys of the Government of Malta;
"Consolidated Fund" means the Consolidated Fund established by article 102 of the Constitution of Malta;
"Constitution" means the Constitution of Malta;
"e s t imates" means the estimates, presented to the House of Representatives in respect of any financial year, of the expenditure
for the service of that fi nanci a l year and includ es any supplem entary estimates of expenditure for which it may be
necessary to provide after the estimates have been presented to the House of Representatives;
"financial year" has the meaning as it has for the purposes of the
Constitution;
"internal audit" shall have the same meaning assigned to it by article 2 of the Internal Audit and Financial Investigations
Act;
"irregularity" means an act or omission by any person in breach of a contractual agreement with the Government or in breach
of any relevant provision of law or of any act the binding force of which derives from any treaty or international agreement entered
into by Malta;
"Malta" has the same meaning as is assigned to it by article 124 of the Constitution of Malta;
"Minister" means the Minister responsible for finance;
"public moneys" means all revenue, loan, trust and other funds recei v ed or manag e d or held b y, for or o n account
of th e Government, including moneys which the Government pays out or
disburses from funds receive d from any international or supranational organization or body or from any of its institutions or bodies;
"revenue" means all taxes, imposts, rates, and duties and all other moneys collected or received for or on account of the
Consolidated Fund;
"vote" means a separate head of the estimates or a main division of the appropriation by the House of Representatives for
the service of a financial year.
PART II
GENERAL PROVISIONS
Act.
(2) Subject to the provisions of this Act and of any regulations made thereunder, accounting officers shall follow the directions
which may, from time to time, be given by the Minister concerning public moneys and the rendering of accounts thereof.
(3) The Minister, or any officer of his Ministry authorised by him in that behalf, shall be entitled to inspect such offices and
to have such access to official books, documents and other records as may be necessary for the purpose of the Minister ’s exercise
of his powers and his performance of his duties under this Act.
Administration of
Act.
(a) for the collection, receipt, custody, issue, expenditure, due accounting for, care and management of all public moneys and the
guidance of all persons concerned therein;
(b) for the more effectual record, examination, inspection and departmental check of all receipts and expenditure and the keeping
of all necessary books and accounts;
(c) for the books which are to be kept and the accounts which are to be rendered for the purposes of this Act and the form in which
such books and accounts are to be kept and rendered;
(d) for the purchase, safe custody, issue, sale or other disposal or writing off of public stores and other government
property, and the proper accounting for, and stock-taking of, such stores and property;
(e) for prescribing anything required to be prescribed under this Act;
(f) for the co-funding of economic and social development programmes and initiatives from public
Regulations. Amended by: L.N. 46 of 1965; I. 2004.3.
moneys;
(g) for effecting adjustments, set-offs in and payments from any account relating to public moneys as may be required in connection
with the co-financing referred to in the previous paragraph and funding from any international or supranational organization
or body or from any of its institutions or bodies;
(h) for the preparation, codification and publication of such sets of accounting standards, methodologies, policies and
procedures as may from time to time be deemed necessary or expedient for the better carrying the provisions of this Act into effect;
(i) for any other matter incidental or supplementary to any of the foregoing matters.
(2) All regulations made under this article shall be published in the Government Gazette and shall be laid on the Table of the
House of Representatives within ten days of such publication:
Provided that in re ckoning such pe riod no account shall be taken of any time during which the House of Representatives is dissolved
or prorogued, or during which it is adjourned for more than ten days.
PART III
DIRECTOR OF AUDIT
Director of Audit. Amended by: L.N. 46 of 1965. | 5. | Repealed by: XVI.1997.7. |
Salary. Amended by: XII.1965.4; L.N. 46 of 1965; XIII.1983.5; L.N. 25 of 1990; L.N. 26 of 1991; L.N. 13 of 1992; L.N. 32 of 1993; L.N. 11 of 1994; L.N. 10 of 1995; L.N. 23 of 1995; L.N. 75 of 1995; L.N. 32 of 1996; L.N. 67 of 1998. | 6. | Repealed by: XVI.1997.7. |
Audit of accounts. Amended by: L.N. 46 of 1965. | 7. | Repealed by: XVI.1997.7. |
Production of books, etc., to Director of Audit. | 8. | Repealed by: XVI.1997.7. |
Information to | 9. | Repealed by: XVI.1997.7. |
Director of Audit. | ||
Amended by: | ||
L.N. 46 of 1965. |
Report of irregularities.
Disputes. Amended by: L.N. 46 of 1965; LVIII. 1974.68.
PART IV
ACCOUNTING OFFICERS
(2) The Minister may delegate his authority to authorise an accounting officer to open any public or official account in any bank in accordance with subarticle (1) to any public officer not below the rank of Director General.
Duties of accounting officers.
Bank account not to be opened by accounting officers without Minister’s authority.
Amended by: IV. 2011.26.
PART V
BANKING ARRANGEMENTS AND COLLECTION OF MONEYS
(a) moneys belonging to the Malta Government Savings Bank*, which shall be kept under a separate account to be known as "the Malta Government Savings Bank Account"; and
(b) any other moneys which the Minister may specifically
Arrangement with bank.
The Public Account and the Malta Government Savings Bank Account.
Amended by: L.N. 46 of 1965.
* Vide Malta Government Savings Bank (Winding Up) Act (Cap. 307).
authorise to be kept in separate accounts.
All moneys in the bank to be public moneys.
Deposits. 17. (1) Moneys received by or on behalf of the Government by way of deposit on account of customs duties or otherwise on pu blic accou n t, mon e ys deposited in cou r t under any law or authority whatever, moneys deposited in the Malta Government Savings Bank*, moneys received in trust, and all moneys deposited by any person pending the completion of any work or transaction whereby the same or any portion thereof may become payable to the Government or repayable to the depositor or other person, shall be deemed to be public moneys within the meaning and for the purposes of this Act.
(2) Such moneys shall be either paid into the bank to the credit of the proper account or otherwise dealt with and accounted for by the person having custody thereof as the Minister, subject to this Act and any regulations made thereunder, may from time to time direct.
Unclaimed deposits. Amended by: L.N. 46 of 1965; XIII. 1983.5;
L.N. 410 of 2007.
18. (1) Unless otherwise expressly provided, every sum so deposited, with the exception of moneys deposited in the Malta Government
Savings Bank*, which is unclaimed for a period of
thirty years shall be transferred to a special account to be known as "the Deposits Fund Account" and the Minister may,
without further appropriation than this Act, authorise the Accountant General to pay the same out of the said account at any time
to any claimant who establishes his claim thereto.
(2) At the end of each financial year any balance in excess of twenty-three thousand and three hundred euro (23,300) of the said
Deposits Fund Account may, if the Minister so decides, be passed to the Consolidated Fund. Should at any time the said account not
be suff icient to meet such claim s , t h ese w ill b e met o u t of the Consolidated Fund without any further appropriation than
this Act.
Payment of all moneys into bank. Amended by:
XIII. 1983.5;
L.N. 410 of 2007.
Provided that the Accountant General may retain in hand such amount as may be deemed necessary to meet daily requirements, which amount shall not, however, except with the written authority of the Minister, exceed seventy thousand euro (70,000) in respect of moneys payable to the credit of the Public Account exclusive of any moneys temporarily held by the Accountant General pending wit hdr aw al fro m circul at ion and destru ct ion , and fort y-seven thousand euro (47,000) in respect of moneys payable to the credit of the Malta Government Savings Bank Account.
Provided that, where the Minister so directs, accounting officers may deduct from the gross amount of their collections such sums as may be required to enable them to effect payments of drawback, repayments or refunds.
Collection of public moneys to be paid into bank.
Provided that the Minister may authorise a fluctuating overdraft on the Public Account as and when required, and in such case -
(a) the repayment of any such overdraft shall be made before the close of the financial year in which such overdraft was incurred,
and
(b) a statement of the position of such overdraft on the last day of each quarter shall, as soon as possible thereafter,
be laid on the Table of the House of Representatives.
Borrowing of money. Amended by:
L.N. 46 of 1965.
PART VI
APPROPRIATION OF PUBLIC MONEYS
Provided that moneys so authorised to be issued for any service which is of a recurrent nature shall not exceed one-third of the
amount voted for that service in the Appropriation law for the preceding financial year.
(2) Any moneys authorised to be issued as provided in subarticle (1) shall not exceed the sum specified for that service
in the estimates presented for the current financial year and shall be s e t of f agains t the a m ounts re spectively provided
in the Appropriation Act on its coming into operation.
(3) The powers conferred on the Minister by this article shall
Lapsing of Appropriation Act. Amended by:
L.N. 46 of 1965.
Authorisation of expenditure before appropriation. Amended by:
L.N. 46 of 1965.
n o t exten d b e yon d the peri od of th e first four m o n t hs o f any financial year or beyond the day on which the Appropriation Act for that year comes into operation, whichever is the earlier.
Application of savings on subheads.
(2) The Minister may in his discretion and subject to such co nd iti on s as h e m ay deem p ro per del egat e t o a
n o fficer o f hi s Ministry the power vested in him under subarticle (1):
Provided that whenever any such delegation has been made the officer so delegated shall submit to the Minister at the end of each
quarter a statement showing particulars of all the cases where he has exercised the powers so delegated.
Supplementary provision. Amended by: L.N. 46 of 1965; I. 2004.4.
Appropriation Bill sh all contain such expenditure under appropriate heads:
Provided that the Minister may for such purposes from time to time authorise the issue of such sums out of the Consolidated Fund (no
t exceeding ten per cent o f the sum appropri a ted for the fin a nc ial ye ar, or su ch ot her p e rcent a ge as t h e Ho use
m a y by resolution from time to time approve) as he may consider necessary for the purpose without the need of any further appropriation
other than this Act, and he shall make a repo rt thereon to the House within one month of such appropriation, and where the House
is not sitting at the time not later than the third sitting after the House reconvenes.
PART VII
Authority for the issue of moneys. Amended by: L.N. 46 of 1965.
PAYMENT OF MONEYS
(2) The Accountant General shall not make any payments (notwithstanding that the services to which they relate may be duly
provided for in the Appropriation Act) unless authorised so to do by warrant under the Minister ’s hand and directed to him.
(3) Such warrant shall be signed in triplicate by the Minister. One copy of the warrant shall be filed in the Minister ’s office,
one in the Accountant General’s office and one in the National Audit Office.
(4) No warrant under this article shall continue in force except during the financial year for which it is issued.
All disbursements to be made by Accountant General.
Amended by: XVI.1997.8.
(2) The Minister may, if he is satisfied that there has arisen an urg en t and un foreseen need for expend iture for w hich no
o ther provision exists or for which funds cannot be provided under article
24, make advances from the Contingencies Fund to meet that need, unt il a Su pp lem e nt ary Ap prop ri ati on Bil l prov idi n g
for such expenditure can be passed into law.
(3) The Contingencies Fund shall be operated in accordance with th e rules set ou t in th e Schedu le. The provision s o f
this Sch e dul e m a y b e am end e d b y further rul e s to be mad e by th e Minister, which shall be published in the Government
Gazette and shall be laid on the Table of the House of Representatives at the next meeting thereafter.
Payment on vouchers.
Payment of accounts by accounting officers.
Contingencies Fund. Amended by: VI. 1962.2;
L.N. 46 of 1965; XIII. 1983.5;
L.N. 410 of 2007.
(2) The Secretary for Gozo Affairs may receive a floating
Imprest. Amended by: XXII. 1976.4.
imprest for such amount as the Minister may authorise to enable h im t o car r y o u t t h e serv ice of all the department s in Gozo
i n accordance with this Act and with any regulations made thereunder.
(3) The authority mentioned in the two last preceding subarticles shall be conveyed to th e Accountant General by
an imprest warrant under the Minister ’s hand.
Treasury Clearance
Fund.
Amended by:
L.N. 46 of 1965.
Disbursements from Treasury Clearance Fund for advances or loans to the Dockyard. Added by:
XXIV. 1967.2. Amended by: XIII. 1983.5;
L.N. 410 of 2007.
Cap. 177.
(2) In this article "Dockyard" has the same meaning as it has in the Malta Dockyard (Temporary Provision) Act.
Disbursements from Treasury Clearance Fund for advances, loans or deposits in aid of exports.
Added by: XXXI. 1968.2. Amended by: XXXII. 1969.2; XIII. 1983.5;
L.N. 410 of 2007.
Transfer of moneys.
1962, of those accounts the receipts and payments whereof would have been accounted for in the Treasury Clearance Fund had that
fund been established on that date shall be deemed as from that date to have been transferred to that fund, which shall be deemed
to have been established on that date as a fund of the Government of
Malta for the specific purpose referred to in article 32.
(2) All receipts and payments of the accounts referred to in subarticle (1) which, as from the 1st April, 1962, would have been
accounted for in the Treasury Clearance Fund had that fund been established on that date shall be deemed as from that date to have
been so accounted for.
Provided that in the case of deposits on account of foundations or trusts, the Il-Monti and the Custodian of Enemy Property such interest and other income, appreciation or depreciation in the value of investments and the profits or losses on the sale or redemption of securities shall be credited or debited as the case may be to the proper account.
Accrual of interest and investment fluctuation. Amended by:
L.N. 46 of 1965; XXXIX.1976.8.
Disbursements out of Treasury Clearance Fund.
Power to transfer temporarily from one account to another.
PART VIII
INVESTMENTS
Investment of balances.
Accounting of interest on investments.
Sale or exchange of securities.
Purchase and custody of securities. Amended by: XXII. 1976.4.
such person or persons as may be appointed from time to time by the Minister.
(2) Such persons shall only have the custody of such securities on behalf of the Government of Malta and it shall not be lawful
for them severally or jointly to take any measures in respect of such securities save as provided by this Act.
Provisions for ensuring safe custody. Amended by: XXII. 1976.4.
(a) all securities in Malta shall be held under two or more keys by the persons vested with their custody, or deposited
by them in the bank, and such of the securities as are kept abroad shall be held in the custody of such person
or persons as may be appointed from time to time by the Minister;
(b) securities held in respect of each fund or account shall be kept separate and apart from those of any other fund or account;
(c) securities held in respect of each fund or account shall be kept and used solely for the purposes of that fund or account.
Manner in which securities may be sold, converted or exchanged.
Certified returns of securities held abroad.
Amended by: XXII. 1976.4; XVI. 1997.7.
Return of securities to be submitted to Auditor General. Amended by:
XXII. 1976.4; XVI. 1997.7.
PART IX
Arrangements regarding moneys outside Malta.
MONEYS OUTSIDE MALTA
ke eping of accounts, and furnishing of statements, retu rns and vouchers relating to such collection, receipt, custod y, deposit, issue, expenditure, advances an d fo r the ex aminat io n o f su ch accounts, statements, returns and vouchers.
PART X
AUDIT AND INSPECTION
49. (1) Where, on the detection of any irregularity or fraud against public moneys, a report made in terms of the provisions of the
Auditor General and National Audit Office Act or the Internal Audit and Financial Investigations Act is sent or referred to a Head
of Department he shall thereupon take all necessary measures for th e pr ot ection of such public moneys, including th e levying
of administrative penalties in accordance with regulations made under article 52 and legal action for the recovery of the amount
of any deficiency, loss, improper payment caused or made as a result or in the course of any such irregularity or fraud and the provisions
of article 466 of the Code of Organization and Civil Procedure shall apply to any amount recoverable as aforesaid.
(2) Notwithstanding any stipulation to the contrary any bond, bank guarantee or other security given for the proper performance
of any contract payable out of public moneys shall also extend to guarantee the recovery of any moneys or administrative penalties
in connection with the contract and for which the person supplying the bond, bank guarantee or other security may be liable.
(3) Where the deficiency, loss, or improper payment as a result of the irregularity or f r aud in volves funds received by the
Government from any international or supranational organization or body or from any of its institutions or bodies or under the terms
of any treaty or other agreement between States any proceedings under this article shall take place in consultation with the person
in Malta, if any, specifically charged with authorising the payment or release of such funds by the Head of Department:
Provided that the lack of such consultation shall not in any way whatsoever affect the validity of any proceedings taken under this
article.
(4) Where two or more persons are responsible for the i rregul arit y or fraud w h ich result ed i n the defici
ency, loss, or
Duties of the bank. Amended by: XVI.1997.7.
Measures against fraud and irregularities. Added by:
I. 2004.5. Cap. 396. Cap. 461.
Cap. 12.
improper payment those persons shall be held jointly and severally liable therefor together with any other person who, although in
duty bound to do so, failed to take reasonable precautions and to exercise due diligence to prevent the irregularity or fraud.
(5) Nothing in this article or in this Part shall be construed as precluding any other person interested from taking action, whether
jointly with the Head of Department or otherwise, for the recovery of any sum recoverable under the provisions of this article.
(6) For the purposes of this article and the other articles under this Part, "Head of Department" includes any director,
manager, secretary or other principal officer of a body, whether vested with legal personality or not, which is responsible for administering,
h o ld ing or u s ing pu bli c m oney s or wh ich is a reci pien t or beneficiary of public moneys, or who is a person having a power
of representation of such a body or having an autho r ity to tak e decisions on behalf of that body or having authority to exercise
control within that body.
Interest to be charged. Added by:
I. 2004.5.
Information.
Added by:
I. 2004.5.
Administrative penalties. Added by:
I. 2004.5. Amended by:
L.N. 410 of 2007.
Provided that an administrative penalty may not be greater than one hundred and sixteen thousand and four hundred and sixty- eight euroeuro and sixty-seven cents (116,468.67).
Production of vouchers. Added by:
VI. 1962.3.
Receipts for wages, social service allowances, etc.
Amended by: VI. 1962.4.
Power of surcharge by Director of Audit.
Person surcharged and Minister to be notified of surcharges.
Manner of recovering surcharges.
Surcharge may be withdrawn.
Appeal to Minister. Prosecution of
defaulters.
Extent of audit.
PART XI
ACCOUNTS AND STATEMENTS
(a) a statement of the Consolidated Fund Account as compared with that of the last preceding financial year;
(b) a statement of the receipts and expenditure of any fund or account created by this or any other law.
(2) As soon as the Auditor General returns such statements to the Accountant General, the Minister shall cause such statements
to be published in the Government Gazette, and shall lay them on the Ta ble of the House of Representatives within ten days of such
publication:
Provided that in reckoning such period, no account shall be
Accountant General’s books of account.
Accounting officers’ books of account.
Quarterly statement of Consolidated Fund Account to be published in the Government Gazette.
Amended by: L.N. 46 of 1965.
Annual statements.
Amended by:
L.N. 46 of 1965;
XVI. 1997.7.
taken of any time during which the House of Representatives is dissolved or prorogued, or during which it is adjourned for more than ten days.
Certificate by Director of Audit. Amended by:
L.N. 46 of 1965.
Preparation of annual financial accounts. Amended by: L.N. 46 of 1965; XVI. 1997.7.
(a) an abstract of the receipts and payments of the Public Account as compared with the receipts and payments of the last preceding
financial year;
(b) an abstract of the Consolidated Fund Account as compared with that of the last preceding financial year;
(c) a detailed statement of revenue, as compared with the estimates, showing variations in respect of each item;
(d) a detailed statement of expenditure showing the several sums appropriated under each head distributed according to
subheads as detailed in the estimates, the expenditure made during the financial year, and the amount over-expended or under-expended
thereon;
(e) a statement of the receipts and payments in respect of loans made by the Government;
(f) a statement of the public debt and the annual charge thereon showing also the amount repaid during the financial year;
(g) a statement of the receipts and expenditure of trust funds and of any other fund or account of the Government;
(h) a statement of all investments held by the Government at the end of the financial year on behalf of each fund or account as required
by article 46 hereof, showing the cost price and the current market value in London on that date;
(i) a statement of the revenue and expenditure of the Malta Government Savings Bank* and of deposits received and repaid and interest credited to depositors together with a statement of assets and liabilities;
(j) a statement of assets and liabilities of the Government at the end of the financial year;
(k) a statement of balances (excluding special funds) at the end of the financial year;
(l) a statement of special funds deposited in the Treasury;
*Vide Malta Government Savings Bank (Winding Up) Act (Cap.307).
(m) a detailed statement of advances made out of the
Treasury Clearance Fund;
(n) a tabular summary of unallocated stores financed out of the Treasury Clearance Fund; and
(o) a statement of claims abandoned, of losses of cash and of stores written off.
Annual report on accounts and finances.
Contents of report by Director of Audit.
Recommendations by Director of Audit.
PART XII
MISCELLANEOUS
(2) The Accountant General may in his discretion and on his own responsibility delegate in writing, on such conditions as he
may deem proper, any of his powers under this article to any public officer not below the administrative officer class suitable
in his opinion for the purpose.
(3) The Minister may prescribe for the levying of a fee on the issue of such duplicate receipts or documents.
Loss of titles to goods or deposits.
(2) The directives referred to in subarticle (1) may regulate:
(a) the recruitment of employees and, or their remuneration;
Directives. Added by: XIII. 2005.21.
(b) the procurement of fixed assets, services, consultancies, contracts of whatever type or nature relating to operational and, or administrative expenses, and, where such directives are issued, the Board of Directors or other Board responsible for the affairs of the entity shall ensure that the decisions taken at Board and at management level respect such directives.
Amended by: L.N. 46 of 1965.
SCHEDULE [ARTICLE 30]
RULES FOR THE OPERATION OF THE CONTINGENCIES FUND
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