Financial Management Manual

Public Finances (Management ) Act, 1995 (as amended) (PFMA) provides for the Finance Departmental Head may issue Financial Management Manuals (FMM), not inconsistent with the PFMA, for instruction and guidance on the implementation of any matter provided for in this Act for the better control and management of public moneys and public property.

A revision of the Financial Management Manual was necessitated by the enactment of new legislation. The PFMA was substantially amended in 2016 and certified on 09 November 2016.  A further amendment was certified 28 November 2018 to reflect changes to the legislative arrangements for national procurement, resulting in the repeal and replacement of Part VII State Tenders and Contracts.

The Finance Management Manual is issued by the Finance Departmental Head (the Finance Secretary) pursuant to Section 117 of the PFMA and is effective from 28 November 2018.

The FFM applies to –

  • every public and statutory body, other than a statutory body that has a Financial Management Manual approved under Section 64C of the PFMA;
  • Constitutional institutions, as they are deemed to be statutory bodies under the PFMA; and
  • the Bougainville Government established under Part XIV of the Constitution.

All persons shall comply with the terms, conditions, requirements and instruction of the FMM. Any instances of failing to observe any Finance Instructions will be dealt with in accordance with the non–compliance provisions of the PFMA.

INTERIM NOTICE

The Finance Management Manual is temporarily unavailable, pending review and update.

The Supreme Court of PNG delivered a decision on 27 May 2020 that the Public Money Management Regularisation (Amendment) Act 2019  is unconstitutional and invalid in its entirety.  This has substantial implications for non-tax revenue (NTR) management, which will be subject to PFMA provisions for managing NTR.  This will require interim changes to administrative arrangements pending the introduction of updated NTR legislation.

The review will also is to take into account changes to PFM as a result of changes to managing the execution of the national budget through an amendment to the Public Finances (Management) (Amendment) Bill 2019, and also presents an opportunity to consider other issues that require further explanation and operational directions in the FMM that have been identified during the implementation of the 2016 revision of the PFMA and the National Procurement Act 2018 (NPA).  The revision will be circulated for consultation and awareness before being reloaded to the Department of Finance website.

We thank you for your patience while the review is being completed.

FINANCE INSTRUCTIONS

Pursuant to the Public Finances (Management) Act 1995 (as amended), (PFMA) Section 117, the Finance Departmental Head may issue Financial Instructions (FI), not inconsistent with the PFMA, as to any matter prescribed by this Act to be so provided for, or that are necessary or desirable for carrying out or giving effect to this Act and in general for the better control and management of public moneys and public property.

The Financial Instructions are intended to support the efficient, effective and ethical use of Government (public) money, property and other resources. The Financial Instructions support the application and implementation of the PFMA and the management of the financial affairs of the Government.

All persons shall comply with the terms, conditions, requirements and instruction of these Financial Instructions. Any instances of failing to observe any Finance Instructions will be dealt with in accordance with the non–compliance provisions of the PFMA.