Financial Instructions

INSTRUCTIONS TO MINISTRIES AND DEPARTMENTS

ACCRUAL ACCOUNTING

Instruction 1

Introduction

1.1 These Financial Instructions are applicable to all Government Ministries and Departments who will now be preparing their accounts and reports on an accrual basis. 1.2 The Constitution of Barbados, the Financial Management and Audit Act and the Financial Regulations lay down the basic principles for the operation of the Consolidated Fund and the management and control of public moneys. 1.3 Under Section 19 of the Act, the Director of Finance and Economic Affairs is empowered to issue instructions in relation to public financial business for the efficient administration of the Government. 1.4 The duty of implementing the provisions of the Act, and any regulations and instructions issued thereunder, is the responsibility of each accounting officer designated under Section 18 of the Act. 1.5 It is necessary for all officers to whom any functions relating to finance may be delegated, to be made fully aware of the constitutional and legal framework within which the Government of Barbados functions, and of the regulations and instructions issued in order that their duties may be adequately performed in strict compliance therewith. 1.6 The Accountant General has authority to review these instructions periodically, incorporating, where applicable, circulars issued in keeping with the Financial Management practices of the Public Sector and to make recommendations to the Director of Finance and Economic Affairs for amendments. 1.7 These instructions are therefore issued for the guidance of Public Officers, to provide a sound basis for proper financial administration. 1.8 Accounting officers must comply with the provisions of these instructions, non-compliance will lead to sanctions by the Director of Finance and Economic Affairs. 1.9 These Instructions supplement and do not replace the existing Instructions. Where however a conflict exist between a matter in these Instructions and that in any existing Instructions, these Instructions shall prevail. GRANTLEY SMITH Director of Finance and Economic Affairs March 2007