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Treasury gets tough on funding

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The Ministry of Finance, Economic Planning and Development has announced various measures aimed at tightening conditions of funding to ministries and departments.

Treasury says the re-enforcements are in accordance with requirements under the Public Finance Management Act of 2003 which were suspended following the introduction of Integrated Financial Management and Information System (Ifmis).

A statement from the Treasury says effective this month, funding to ministries, departments and agencies (MDAs) will only be made upon receipt of monthly expenditures, monthly revenue returns, monthly commitment returns, monthly bank reconciliation reports and monthly payroll reports.

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“As stipulated by the said Act, MDAs are expected to submit these reports to the Treasury within 14 days from the end of the month to which they relate,” says the Ministry of Finance in a statement signed by Secretary to the Treasury, Ronald Mangani.

He said Treasury expects to receive the said reports in an appropriate format and in conformity with the desired standards as templates of the reports have already been provided to all controlling officers and heads of agencies.

Ministry of Finance spokesperson, Nations Msowoya, said in an interview the measures were part of tightening loose ends in public finance management, saying such reports will be used to monitor the use of funds.

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“As part of these reports we will be able to check on prioritisation of funds in line with the budgeted activities,” said Msowoya.

He said there is enough capacity in the MDAs and that with support from the desk officers at the Treasury, some of the procedures were already being followed before the centralisation of the financial management systems through Ifmis which made it difficult for the MDAs to access full information to prepare such reports.

“The current Ifmis allows the MDAs to access such information and we expect that they will comply. Those that will fail to provide the reports will not get the next funding,” said Msowoya.

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