VOLUME 8
RESTRICTED
15.3 -
15.2.4 Treasury approval is therefore required for proposals for expenditure from FCO Votes in and for the DTs. In the case of aid expenditure from ODM Votes, the Treasury has delegated certain authority to ODM. The Finance Department ODM determines and recommends to the Treasury the estimates provision which should be made for grants-in-aid to the DTs. ODM also has delegated authority in respect of development aid projects and technical cooperation on certain conditions and within certain limits. Reference should be made in this connection to ODM Office Procedure and to ODM Finance Department Circulars. Finance Department ODM should be consulted if there is any doubt as to whether a particular matter falls within the scope of ODM delegated authority or is one requiring prior Treasury agreement. Where the Treasury has delegated authority it is NOT necessary to consult them further. Care should be taken to ensure, notwithstanding the delegated authority, that estimates provision exists for a project or purpose before expenditure is authorised.
15.3
15.3.1
AUDIT
The Director of Audit is responsible for the audit and inspection of all public accounts of the Government and for reporting on his audit annually. The Governments of all DTs are governed by the provisions of Colonial Regulations Nos 254-268, and by the provisions of the Territory's Audit Ordinance, in respect of their audit.
15.3.2 Detailed examination of the audited accounts of DTs in which UK aid is not involved is not normally necessary. DT geographical Departments should, however, consider whether the report of the Director of Audit, or the OAG's comments on it, reveal any significant shortcomings in accounting and financial control which call for comment or action by the Secretary of State. The accounts should if necessary be referred to the Finance Department ODM (Adviser on Audit).
15.3.3
15.3.4
When a DT is receiving budgetary or development aid, exchequer funds are being expended and have to be accounted for. It is a necessary condition of the aid that the accounting requirements should be complied with. If Territories in receipt of aid fail to meet their commitments in this respect difficulty may arise in the consideration of further aid, whether for development or budgetary purposes. It can also lead to criticism in Parliament and adversely affect HMG's relationship with the Territory. Audited accounts should be scrutinized by the DT geographical Department (see Chapter VIII of Colonial Regulations and Annex 17). The audit report, the Governor's comments on it and any comments made by ODM Accounts Department should also be consulted. Queries of substance arising from this scrutiny (eg material variations between actual and estimated revenue or expenditure, excess over the "approved deficit", unauthorised borrowing, accumulation of surplus balances and setting of reserves) should be referred to the Territory for explanation. In the case of developnient aid, the examination should determine that the aid issues have been expended in accordance with the terms and conditions on which the project was accepted for financing.
The Comptroller and Auditor-General is responsible to Parliament. He is required to examine the annual audited statements of account of all the DTs in receipt of aid. Although he has discretion to accept the Certificate of the Territory's Director of Audit, he will expect an examination of the accounts, in the light of the Report of the Director of Audit, to be made by the DT geographical Department, and Finance and Accounts Departments of ODM. It is
October 1978
65
RESTRICTED
No comments yet.
Private notes are available after approval.