Public Money Management Regularization (PMMR) is a financial control system introduced by the government as part of the financial reforms process arising out of the Public Expenditure & Financial Accountability (PEFA) assessment in 2015, to ensure an effective and efficient regulation of Non-Tax Revenue derived from fees and charges imposed by state agencies and the timely remittance of these revenues into the governments Consolidated Revenue Fund to assist finance the governments National Budget.
These improvements also ensured good governance, transparency and accountability in the management of public revenue. Any revenue generated by a Public or Statutory Body in carrying out its functions rightfully belongs to the Independent State of Papua New Guinea. These functions include all forms of provision of goods or services, including fees imposed for regulatory purposes.
The PMMR Act was passed by the National Parliament in November of 2017. It was ratified by the Speaker of the National Parliament on the 14th of February 2018 and commenced implementation in March 2018.. It simply requires 90% of all Non-Tax Revenue generated from fees and charges imposed by state agencies to be remitted into the Consolidated Revenue Fund and that state agencies are entitled for 10% to sustain their operations in addition to their annual budgetary allocations.
Agencies requiring further financing are required to submit a proposal for that through the PMMR Strategic Budget Committee (PMMR SBC) to determine and make recommendations to the Treasurer for approval, by ratifying the SBC’s recommendation. The Department of Finance and the Department of Treasury have successfully identified, reviewed, and swept government agency’s accounts containing Non Tax Revenue.
Under the PMMR implementation exercise all existing accounts held by Public and Statutory bodies in various commercial banks have been closed. An agency as per PMMR Act is required to have one (1) – Revenue Account; Operating Account; and Mirror Account to be held with Bank South Pacific (BSP).
A mirror account is temporary holding account for each agency, as required under the PMMR Sweeping Exercise. The mirror account will be closed at the conclusion of the sweeping exercise pending that the agency conforms to the operationalization of the PMMR requirements. The agency’s operating and revenue accounts are permanent, which the Department of Finance has internet visibility over for monitoring purposes daily.
The PMMR Act will cease to operate on the 31st of December 2019. From 1st January 2020, all public money shall be paid to the nominated bank accounts of the Consolidated Revenue Fund and no money shall be remitted to any public or statutory body without following the governments’ annual appropriation process.