Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Regulations and subsequentMinutes of Secretaries, pleasenote that the Minutes ofSecretaries will prevail.• Secretaries are urged tointroduce/improve systems andprocedures so that there would beeffective supervision and controlover the financial administration,procurement management, projectimplementation and managementof related institutions.• In order to ensure adequacyof internal controls and also toprevent/detect errors, omissionsand/or frauds, it is necessary toestablish Internal Audit Units asenvisaged in FR 133. Availableresources should be mobilizedas may be suitable to strengthenInternal Audit Units. In order toensure effective functioning ofthe Internal Audit Mechanism,separate Internal Audit Unitsshould be established for all largeDepartments and Institutions,while the General Internal AuditUnit of the Ministry should havethe internal auditing mandateover all remainder Departmentsand Institutions. They shouldbe required to submit periodicreports, at least on a quarterlybasis.• Secretaries are urged tointroduce/improve an earlywarning system relating tofinancial controls as it wouldhelp to ensure proper conductof government finance. Hence,observations of Internal AuditUnits as well as observations ofthe Auditor General should bereviewed at regular intervals andresponses should be suitablysubmitted while immediatemeasures should be taken toremedy the situations. The AuditCommittees’ Reports should bereviewed at least on a quarterlybasis at staff meetings, so asto ensure transparency andaccountability.• With regard to the Programmesand Projects being implementedunder various fundingarrangements, the relevantManagement Circular shouldbe strictly adhered with.Appropriate managementarrangements (i.e. SteeringCommittees etc.) should bein place so that the requiredmanagement capabilitiescould be streamlined to ensureeffectiveness and sustainability.Such Programmes/Projectsshould be implemented on timewhile effectively utilizing theallocated amounts to achievethe best output in line with therelated implementation goals.An effective mechanism shouldbe put in place to sustain, postmonitor as may be necessary, theoutcome of such Programmes/Projects.• It is important to maintain andupdate inventories with regardto all assets, including vehicles,computers, communicationequipment, and furniture etc.,provided through Governmentfunds, Programmes/Projectfunds, and donations so asto ensure that the Ministry isin a position to account forsuch assets in the GovernmentAccounts.• Corporate Plans, ActionPlans, Annual Accounts andPerformance Reports of theMinistry and related institutions,as may be appropriate, should besubmitted to the Parliament, in atimely manner.• Special attention should bepaid to the observationsof the Auditor General, theCommittee on Public Accounts(COPA) and the Committeeon Public Enterprises (COPE).While the minutes of themeetings of the COPA andCOPE contain observations/directives to be complied with,the reports submitted by suchCommittees to the Parliamentcontain recommendationsto be implemented by therelevant line Ministry, orthe relevant institutionpertaining to accounting andother deficiencies, reportingdelays, system weaknesses,inadequacies etc. Appropriateactions as well as remedialmeasures should be takenwithout delay.• An assessment of the internalcapacity of each Ministryshould be made by theSecretary and appropriatemeasures should be taken tohave in place sufficient skillsand human resources requiredto assist to carry out the tasksthat a Secretary is entrustedwith, as the Chief AccountingOfficer.• Secretaries are requested tobe mindful inter alia of thefollowing when awardingtenders, so as to ensure thattenders are awarded in a timelymanner while safeguarding thenational interest.a. The least cost which bringsmaximum benefit to theGovernment.b. Optimum economicadvantage to the nation.c. Maximum income inthe disposal of assetsor in granting of rights,concessions or exclusivebenefits.• The recent decisions takenby the Cabinet of Ministers inrelation to the Tender Process,including the process to befollowed regarding unsolicitedor stand alone developmentproposals, relating to which aStanding Cabinet AppointedReview Committee (SCARC)has been appointed should becomplied with.195