Government agencies and subvented organisations receive financial support from the government for their operations.
Required:
Explain THREE conditions which these entities must fulfil to enable them receive financial support from the government. (3 marks)
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i) Other public institutions as defined in section 45 (1) of Act 654 and government agencies, which receive financial support from government shall have agreements covering the payment of such support and shall provide for the:
a. appointment of a government nominee in the governing body;
b. Prior approval by the Government of financial and accounting arrangements of the institution concerned;
c. Submission of the annual estimates to the Minister for review and submission to Parliament for approval;
d. Audit of accounts by the Auditor-General or an Auditor appointed for the reporting to the Auditor-General; and
e. Issue of directions by the government on matters affecting the financial policy to be adopted by the institution concerned.
ii) The requirement for receipt of financial support shall be subject to the condition that the institution assisted shall render audited annual statements of accounts to the Minister with a copy to the Controller and Accountant-General.
iii) The provisions of section 50(1) and (2) of the Financial Administration Act, 2003 (Act 654) shall apply to all other public institutions.
iv) Where financial support is given by Government to public institutions, quarterly returns on expenditure shall be forwarded to the Minister and the Controller and Accountant General in such form as may be determined by the Controller and Accountant-General in consultation with the Minister.