Financial Instructions
Department of Finance Financial Instructions are official directives issued by the Papua New Guinea Secretary for Finance under Section 117 of the Public Finances (Management) Act 1995. They regulate the management of public funds, assets, procurement, and accounting procedures for all national departments, statutory bodies, and provincial governments.
Core Financial Instructions
Key Financial Instructions outline critical procedures and controls for government expenditures:
- FI 03/25: Details procedures for Sub-National Payments and the mandatory use of Form 11.
- FI 02/25: Covers the updated framework for Service Improvement Program (SIP) funds directed toward the 50th Independence Celebrations.
- FI 04/24: Dictates the closure and acquittal of all outstanding COVID-19 Emergency Trust Bank Accounts.
Financial Instructions No. | Date Issued | Subject |
| 01/25 | 14/01/2025 | Use of SIP funds for 50th Independence Celebrations |
| 02/25 | 17/03/2025 | Use of SIP funds for 50th Independence Celebrations (Amended) |
| 03/25 | 17/03/2025 | Sub-National Payments & Use of Form 11 (Amended) |
Circular Instructions No. | Date Issued | Subject |
| 04/25 | 18/02/2025 | Notice – IFMS migration to Cloud & Upgrade.-1 |
The Finance Management Manual (FMM)
The Financial Instructions operate in conjunction with the comprehensive Finance Management Manual, which is organized across seven volumes. This manual guides the entire public financial management cycle, including budget formulation, internal controls, and reporting frameworks.
Access and Compliance
All public officials must strictly adhere to these instructions; failure to comply constitutes a strict liability offense under the Public Finances (Management) Act
View financial instructions by year
Financial Management Manual
FINANCE MANAGEMENT MANUAL
The Finance Management Manual is the Government of Papua New Guinea’s authoritative guide to public financial management, issued under the authority of the Secretary for Finance under Section 117 of the Public Finances (Management) Act 1995. It establishes the practical standards, procedures, and accountability frameworks that apply to all national departments, provincial governments, local-level governments, statutory bodies, public bodies, and government-controlled entities across Papua New Guinea.
The Manual is organised across seven volumes, covering the full cycle of public financial management from the principles of financial governance and accountability, through to financial reporting, internal audit, elected member guidance, and budget formulation. It is designed to be used by departmental heads, heads of finance, internal auditors, budget officers, and all public officials responsible for the management of public resources.
The Finance Management Manual reflects Papua New Guinea’s commitment to modern, transparent, and accountable public financial management. It is a living resource, updated as legislation, standards, and practice evolve.
View Volume 1 Chapters
- FMM 01 01 Introduction to the Finance Management Manual
- FMM 01 02 Framework of PFM Legislation and Directions
- FMM 01 03 Efficient Effective Economical Ethical VFM
- FMM 01 04 Public Financial Management Oversight
- FMM 01 05 Public Accounts Committee
- FMM 01 06 Accountable Officeholder
- FMM 01 07 Finance Instructions and Manuals
- FMM 01 08 Ministerial Directions and Decisions
- FMM 01 09 Different Types of Public Entities
- FMM 01 10 Formation Restruction or Acquisition of Public Entity
- FMM 01 11 Winding up of Statutory Body or Subsidiary
- FMM 01 12 Acronyms
- FMM 01 13 Glossary
View Volume 2 Chapters
- FMM 02 01 Governance and Financial Control
- FMM 02 02 Min Proficiency Heads of Finance and Internal Audit
- FMM 02 03 ESG Principals
- FMM 02 04 Establishing Internal Controls
- FMM 02 05 Delegations
- FMM 02 06 Appt of Financial Controllers
- FMM 02 07 Fraud Controls
- FMM 02 08 Risk Management & Planning
- FMM 02 09 Surcharge and Penalty
- FMM 02 10 Sub National Financial Arrangements
- FMM 02 11 Retention of Financial Records
View Volume 3 Chapters
- FMM 03 01 Government Accounting Framework
- FMM 03 02 Retained Finance Forms from FMM Prior Version
- FMM 03 03 Accounting Basis
- FMM 03 04 Approved Accounting and IT Systems
- FMM 03 05 Business Continuity in Accounting
- FMM 03 06 Chart of Accounts
- FMM 03 07 Financial Fiscal Year
- FMM 03 08 Revenue Receipts
- FMM 03 09 Non Tax Revenue
- FMM 03 10 Waiver of Fees
- FMM 03 11 Revenue Collection
- FMM 03 12 Proceeds from Dividends Sales and Interest
- FMM 03 13 Goods Below Fair Value Donations
- FMM 03 14 Receipt of Grants and Special Funding
- FMM 03 15 Procurement
- FMM 03 16 Authority to Pre Commit
- FMM 03 17 Contract Management
- FMM 03 18 Claims Against the State
- FMM 03 19 Expenses
- FMM 03 20 Special Classes of Expenditure
- FMM 03 21 Payment Processing
- FMM 03 22 Payment Distributions to Groups such as Royalties Compensation
- FMM 03 24 Cancellation, Dishonoured and Stale Cheques
- FMM 03 25 Government Purchasing and Corporate Cards
- FMM 03 26 Foreign Receipts and Payments
- FMM 03 27 Financial Operations Overseas
- FMM 03 28 Employee Expenses
- FMM 03 29 Recalled and Repaid Salaries
- FMM 03 30 Treatment of Grants, Subsidies, Financial Assistance and Contributions Expenses
- FMM 03 31 Ex-gratia payments and compensation
- FMM 03 32 Taxation
- FMM 03 33 Assets
- FMM 03 34 Asset Register and Maintenance
- FMM 03 35 Inventory
- FMM 03 36 Operation of Bank Accounts
- FMM 03 37 Trust Fund Accounts
- FMM 03 38 Bank Reconciliations
- FMM 03 39 Advances and Acquittals
- FMM 03 40 Public Investments, including funds and grants to Commercial Enterprises & Subsidiary Statutory Bodies
- FMM 03 41 Liabilities
- FMM 03 42 Borrowings, Loans, OnLending and State Guarantees
- FMM 03 43 Recognition of Commitment Provisions and Contingent Liabilities
- FMM 03 45 Losses and Deficiencies Writing Off
View Volume 4 Chapters
- FMM 04 01 Financial Reporting Obligations
- FMM 04 02 Definition of a Reporting Entity
- FMM 04 03 Application of IPSAS
- FMM 04 04 Climate Change Risks and Financial Reporting
- FMM 04 05 Annual General Purpose Financial Statements
- FMM 04 06 Keeping of Registers Annual Financial Reporting
- FMM 04 07 First Time Reporting for New Agencies
- FMM 04 08 Financial Reporting of Abolished Agencies
- FMM 04 09 Special Purpose Financial Statements
- FMM 04 10 Reporting to Treasury
- FMM 04 11 Management and Performance Reporting
- FMM 04 12 Period End Closing Procedures
- FMM 04 13 Preparing for External Audit
- FMM 04 90 Kumul Sample Financial Statements
View Volume 5 Chapters
- FMM 05 01 Introduction to Internal Audit and Controls
- FMM 05 02 Designing Internal Controls
- FMM 05 03 Understanding Internal Audit Standards
- FMM 05 04 Establishing Internal Audit Unit and Charter
- FMM 05 05 Establishing an Audit Committee
- FMM 05 06 Proficiency Independence and Objectivity of the Internal Audit
- FMM 05 07 Audits versus Investigations versus Advisory activities
- FMM 05 08 Risked-Based Auditing
- FMM 05 09 Planning Internal Audit Activities Annual Audit Work plan
- FMM 05 10 Conducting Internal Audits Cycle and Practice
- FMM 05 11 Internal Audit Fieldwork and Testing
- FMM 05 12 Audit Findings and Developing Recommendations
- FMM 05 13 Final Audit Report
- FMM 05 14 Monitoring and Follow up
- FMM 05 90 Appendix A Internal Audit Charter Template
- FMM 05 90 Appendix B Audit Committee Charter Template
- FMM 05 90 Appendix C Audit Committee Agenda Listing
- FMM 05 90 Appendix D PSAP Performance Assessment Benchmarks Form
- FMM 05 90 Appendix E – Annual Internal Audit Plan Summary
- FMM 05 90 Appendix F IIA Global Code of Ethics
- List ItemFMM 05 90 Appendix G Engagement Plan Template
- FMM 05 90 Appendix H Test Program Guides
- FMM 05 90 SOP on Implementation and Followup
