         FINANCIAL ADMINISTRATION AND AUDIT      ġCAP. 174.       1
CHAPTER 174
FINANCIAL ADMINISTRATION AND AUDIT ACT
To regulate the receipt, control and disbursement of public moneys, to provide for the audit
of accounts in relation thereto, and to provide for other matters connected with or incidental
to the purposes aforesaid.
29th May, 1962
ACT I of 1962, as amended by Act VI of 1962; Lega1 Notice 47 of 1962; Act XII of 1965;
Legal Notices: 17 and 46 of 1965; Acts: XXIV of 1967, XXXI of 1968, XXXII of 1969; Legal
Notices: 48 of 1970, 24 and 93 of 1971, 48 of 1973, 50 of 1974; Act LVIII of 1974; Legal
Notices: 56 of 1975, 63 of 1976; Acts: XXII and XXXIX of 1976; Legal Notices: 48 of 1977, 4
and 42 of 1978, 33 of 1979; Acts: III and XXIX of 1979; Legal Notices: 26 of 1980, 4 of 1981,
3 of 1982; and Acts: XIII of 1983, XVI of 1997 and I of 2004.
ARRANGEMENT OF ACT
 Sections
Part I.  Preliminary  1-2 
Part II.  General Provisions  3-4 
Part III.  Repealed by: XVI.1997.7. 5-11 
Part IV.  Accounting Officers  12-13 
Part V.  Banking arrangements and Collection of moneys  14-21 
Part VI.  Appropriation of Public Moneys  22-25 
Part VII.  Payment of Moneys  26-38 
Part VIII.  Investments  39-46 
Part IX.  Moneys outside Malta  47 
Part X.  Audit and Inspection  48-61 
Part XI.  Accounts and Statements  62-70 
Part XII.  Miscellaneous  71-73
SCHEDULE 
 2        CAP. 174.ħ          FINANCIAL ADMINISTRATION AND AUDIT
PART I 
PRELIMINARY
Short title. 1. The short title of this Act is the Financial Administration
and Audit Act.
Interpretation. 
Amended by: 
L.N. 46 of 1965; 
III. 1979.2;
I. 2004.2.
2. In this Act, unless the context otherwise requires -
"accounting officer" means a person holding or acting in the
office of permanent head of a government department and includes
every person who is charged with the duty of collecting, receiving
or accounting for, or who in fact collects, receives or accounts for,
any public moneys, or who is charged with the duty of disbursing,
or who does in fact disburse, any public moneys, and every person
who is charged with the receipt, custody or disposal of, or the
accounting for, public stores, or who in fact receives, holds or
disposes of public stores:
 Provided that where there is in force a direction in writing by the
Minister that the duties, functions and responsibilities of an
accounting officer specified in the direction shall vest exclusively
in one or more public officers as is so specified, "accounting
officer", in respect of the said duties, functions and responsibilities
and to the extent specified in the said direction, means and includes
only the public officer or public officers specified as aforesaid;
"bank" means any bank which for the time being is entrusted
with the keeping of public moneys of the Government of Malta; 
"Consolidated Fund" means the Consolidated Fund established
by article 102 of the Constitution of Malta; 
"Constitution" means the Constitution of Malta;
"estimates" means the estimates, presented to the House of
Representatives in respect of any financial year, of the expenditure
for the service of that financial year and includes any
supplementary estimates of expenditure for which it may be
necessary to provide after the estimates have been presented to the
House of Representatives;
"financial year" has the meaning as it has for the purposes of the
Constitution;
Cap. 461.
"internal audit" shall have the same meaning assigned to it by
article 2 of the Internal Audit and Financial Investigations Act;
"irregularity" means an act or omission by any person in breach
of a contractual agreement with the Government or in breach of any
relevant provision of law or of any act the binding force of which
derives from any treaty or international agreement entered into by
Malta;
"Malta" has the same meaning as is assigned to it by article 124
of the Constitution of Malta;
"Minister" means the Minister responsible for finance;
"public moneys" means all revenue, loan, trust and other funds
received or managed or held by, for or on account of the
Government, including moneys which the Government pays out or
         FINANCIAL ADMINISTRATION AND AUDIT      ġCAP. 174.       3
disburses from funds received from any international or
supranational organization or body or from any of its institutions or
bodies;
"revenue" means all taxes, imposts, rates, and duties and all other
moneys collected or received for or on account of the Consolidated
Fund;
"vote" means a separate head of the estimates or a main division
of the appropriation by the House of Representatives for the service
of a financial year.
PART II 
GENERAL PROVISIONS
Administration of 
Act.
3. (1) The Minister is charged with the administration of this
Act.
(2) Subject to the provisions of this Act and of any regulations
made thereunder, accounting officers shall follow the directions
which may, from time to time, be given by the Minister concerning
public moneys and the rendering of accounts thereof.
(3) The Minister, or any officer of his Ministry authorised by
him in that behalf, shall be entitled to inspect such offices and to
have such access to official books, documents and other records as
may be necessary for the purpose of the Minister’s exercise of his
powers and his performance of his duties under this Act.
Regulations. 
Amended by: 
L.N. 46 of 1965;
I. 2004.3.
4. (1) The Minister may make regulations not inconsistent
with the provisions of this Act for carrying the provisions of this
Act into effect, and without prejudice to the generality of the
foregoing, such regulations may provide - 
(a) for the collection, receipt, custody, issue, expenditure,
due accounting for, care and management of all public
moneys and the guidance of all persons concerned
therein;
(b) for the more effectual record, examination, inspection
and departmental check of all receipts and expenditure
and the keeping of all necessary books and accounts;
(c) for the books which are to be kept and the accounts
which are to be rendered for the purposes of this Act
and the form in which such books and accounts are to
be kept and rendered;
(d) for the purchase, safe custody, issue, sale or other
disposal or writing off of public stores and other
government property, and the proper accounting for,
and stock-taking of, such stores and property;
(e) for prescribing anything required to be prescribed
under this Act;
(f) for the co-funding of economic and social
development programmes and initiatives from public
 4        CAP. 174.ħ          FINANCIAL ADMINISTRATION AND AUDIT
moneys;
(g) for effecting adjustments, set-offs in and payments
from any account relating to public moneys as may be
required in connection with the co-financing referred
to in the previous paragraph and funding from any
international or supranational organization or body or
from any of its institutions or bodies;
(h) for the preparation, codification and publication of
such sets of accounting standards, methodologies,
policies and procedures as may from time to time be
deemed necessary or expedient for the better carrying
the provisions of this Act into effect;
(i) for any other matter incidental or supplementary to
any of the foregoing matters.
(2) All regulations made under this section shall be published
in the Government Gazette and shall be laid on the Table of the
House of Representatives within ten days of such publication:
  Provided that in reckoning such period no account shall be
taken of any time during which the House of Representatives is
dissolved or prorogued, or during which it is adjourned for more
than ten days.
PART III 
DIRECTOR OF AUDIT
Director of Audit. 
Amended by: 
L.N. 46 of 1965.
5. Repealed by: XVI.1997.7.
Salary. 
Amended by:
XII.1965.4; 
L.N. 46 of 1965; 
XIII.1983.5; 
L.N. 25 of 1990; 
L.N. 26 of 1991; 
L.N. 13 of 1992; 
L.N. 32 of 1993; 
L.N. 11 of 1994; 
L.N. 10 of 1995; 
L.N. 23 of 1995; 
L.N. 75 of 1995;
L.N. 32 of 1996;
L.N. 67 of 1998.
6. Repealed by: XVI.1997.7.
Audit of accounts. 
Amended by: 
L.N. 46 of 1965.
7. Repealed by: XVI.1997.7.
Production of 
books, etc., to 
Director of Audit.
8. Repealed by: XVI.1997.7.
Information to 
Director of Audit. 
Amended by: 
L.N. 46 of 1965.
9. Repealed by: XVI.1997.7.
         FINANCIAL ADMINISTRATION AND AUDIT      ġCAP. 174.       5
Report of 
irregularities.
10. Repealed by: XVI.1997.7.
Disputes.
Amended by: 
L.N. 46 of 1965; 
LVIII. 1974.68.
11. Repealed by: XVI.1997.7.
PART IV 
ACCOUNTING OFFICERS
Duties of 
accounting 
officers.
12. Every accounting officer shall be subject to the provisions
of this Act and any regulations made thereunder and shall perform
such duties, keep such books and render such accounts as may be
prescribed by or under this Act or by instructions issued by the
Minister.
Bank account not 
to be opened by 
accounting officers 
without Minister’s 
authority.
13. No accounting officer shall open any public or official
account in any bank, except as authorised by this Act or by any
regulations made thereunder, without the authority in writing of the
Minister, and the Government shall not be held liable for any
overdraft on any such account unless it be authorised by the
Minister as provided in article 21.
PART V
BANKING ARRANGEMENTS AND COLLECTION OF MONEYS
Arrangement with 
bank.
14. The Minister may from time to time make arrangements
with any bank or banks upon such terms and conditions as he thinks
fit for the receipt, custody and payment of public moneys and their
transmission from and to Malta, and for any advances which may
be made under the authority of this Act or of any other law, for the
charges in respect thereof, and for the interest payable by or to the
bank or banks upon balances or advances respectively and
generally for the conduct of the banking business of the
Government.
The Public 
Account and the 
Malta Government 
Savings Bank 
Account.
Amended by: 
L.N. 46 of 1965. 
15. All public moneys shall be kept in the bank under an
account to be known as "the Public Account" to which shall be
carried and paid all moneys forming the Consolidated Fund, and all
other moneys whatsoever, except - 
(a) moneys belonging to the Malta Government Savings
Bank*, which shall be kept under a separate account to
be known as "the Malta Government Savings Bank
Account"; and
(b) any other moneys which the Minister may specifically
authorise to be kept in separate accounts.
All moneys in the 
bank to be public 
moneys.
16. All moneys paid into the bank to the credit of the accounts
mentioned in the last preceding section shall be deemed to be
public moneys, and may not be removed from the bank except as
* Vide Malta Government Savings Bank (Winding Up) Act (Cap. 307).
 6        CAP. 174.ħ          FINANCIAL ADMINISTRATION AND AUDIT
provided by this Act.
Deposits. 17. (1) Moneys received by or on behalf of the Government
by way of deposit on account of customs duties or otherwise on
public account, moneys deposited in court under any law or
authority whatever, moneys deposited in the Malta Government
Savings Bank*, moneys received in trust, and all moneys deposited
by any person pending the completion of any work or transaction
whereby the same or any portion thereof may become payable to
the Government or repayable to the depositor or other person, shall
be deemed to be public moneys within the meaning and for the
purposes of this Act.
(2) Such moneys shall be either paid into the bank to the credit
of the proper account or otherwise dealt with and accounted for by
the person having custody thereof as the Minister, subject to this
Act and any regulations made thereunder, may from time to time
direct.
Unclaimed 
deposits. 
Amended by: 
L.N. 46 of 1965;
XIII. 1983.5.
18. (1) Unless otherwise expressly provided, every sum so
deposited, with the exception of moneys deposited in the Malta
Government Savings Bank*, which is unclaimed for a period of
thirty years shall be transferred to a special account to be known as
"the Deposits Fund Account" and the Minister may, without further
appropriation than this Act, authorise the Accountant General to
pay the same out of the said account at any time to any claimant
who establishes his claim thereto.
(2) At the end of each financial year any balance in excess of
ten thousand liri of the said Deposits Fund Account may, if the
Minister so decides, be passed to the Consolidated Fund. Should at
any time the said account not be sufficient to meet such claims,
these will be met out of the Consolidated Fund without any further
appropriation than this Act.
Payment of all 
moneys into bank. 
Amended by: 
XIII. 1983.5.
19. The Accountant General shall, from day to day, cause to be
paid into the bank to the credit of the proper account, all public
moneys collected or received at the Treasury, including Savings
Bank deposits:
  Provided that the Accountant General may retain in hand such
amount as may be deemed necessary to meet daily requirements,
which amount shall not, however, except with the written authority
of the Minister, exceed thirty thousand liri in respect of moneys
payable to the credit of the Public Account exclusive of any
moneys temporarily held by the Accountant General pending
withdrawal from circulation and destruction, and twenty thousand
liri in respect of moneys payable to the credit of the Malta
Government Savings Bank Account.
Collection of 
public moneys to 
be paid into bank.
20. Every accounting officer collecting or receiving public
moneys shall pay into the bank to the credit of the proper account,
the gross amount of his collections on such days and in such
manner and form as the Accountant General may direct:
 Provided that, where the Minister so directs, accounting officers
may deduct from the gross amount of their collections such sums as
         FINANCIAL ADMINISTRATION AND AUDIT      ġCAP. 174.       7
may be required to enable them to effect payments of drawback,
repayments or refunds.
Borrowing of 
money. 
Amended by: 
L.N. 46 of 1965.
21. Except as may be specifically provided by any law and
subject to the provisions of this section, it shall not be lawful for
the Government to borrow, nor for any bank or other person to lend
to the Government, any moneys, and every engagement for the
repayment of any such loan shall be absolutely null and void:
  Provided that the Minister may authorise a fluctuating overdraft
on the Public Account as and when required, and in such case -
(a) the repayment of any such overdraft shall be made
before the close of the financial year in which such
overdraft was incurred, and
(b) a statement of the position of such overdraft on the last
day of each quarter shall, as soon as possible
thereafter, be laid on the Table of the House of
Representatives.
PART VI 
APPROPRIATION OF PUBLIC MONEYS
Lapsing of 
Appropriation Act. 
Amended by: 
L.N. 46 of 1965.
22. Any Act appropriating moneys out of the Consolidated
Fund shall not be construed as authorising the expenditure of such
moneys in any financial year other than the financial year to which
it is expressed to relate, and any moneys so appropriated which
may remain unexpended at the close of any financial year shall
cease to be a liability on the Consolidated Fund for that year.
Authorisation of 
expenditure before 
appropriation. 
Amended by: 
L.N. 46 of 1965.
23. (1) If the Appropriation Act has not come into operation at
the commencement of any financial year, the Minister may
authorise the issue of moneys from the Consolidated Fund for the
purpose of meeting such expenditure as he may consider necessary
for carrying on the Government of Malta:
  Provided that moneys so authorised to be issued for any service
which is of a recurrent nature shall not exceed one-third of the
amount voted for that service in the Appropriation law for the
preceding financial year.
(2) Any moneys authorised to be issued as provided in
subarticle (1) shall not exceed the sum specified for that service in
the estimates presented for the current financial year and shall be
set off against the amounts respectively provided in the
Appropriation Act on its coming into operation.
(3) The powers conferred on the Minister by this section shall
not extend beyond the period of the first four months of any
financial year or beyond the day on which the Appropriation Act
for that year comes into operation, whichever is the earlier.
Application of 
savings on 
subheads.
24. (1) If the exigencies of the public service render it
necessary to alter the proportions assigned to the subheads under a
 8        CAP. 174.ħ          FINANCIAL ADMINISTRATION AND AUDIT
head of expenditure shown in the estimates the Minister may by
minute authorise the transfer of a further sum out of any surplus
arising on any other subhead of the same head in aid of any
subhead which may be deficient.
(2) The Minister may in his discretion and subject to such
conditions as he may deem proper delegate to an officer of his
Ministry the power vested in him under subarticle (1):
  Provided that whenever any such delegation has been made the
officer so delegated shall submit to the Minister at the end of each
quarter a statement showing particulars of all the cases where he
has exercised the powers so delegated.
Supplementary 
provision. 
Amended by:
L.N. 46 of 1965;
I. 2004.4.
25. If in respect of any financial year it is found that the
amount appropriated by the Appropriation Act for any purpose is
insufficient or that a need has arisen for expenditure for a purpose
for which no amount has been appropriated by the Act, or that any
moneys have been expended for any purpose in excess of the
amount appropriated for the purpose by the Appropriation Act, or
for a purpose for which no amount has been appropriated by the
Act, supplementary estimates showing the sums required or spent
shall be laid before the House of Representatives and the
Appropriation Bill shall contain such expenditure under
appropriate heads:
Provided that the Minister may for such purposes from time to
time authorise the issue of such sums out of the Consolidated Fund
(not exceeding ten per cent of the sum appropriated for the
financial year, or such other percnetage as the House may by
resolution from time to time approve) as he may consider necessary
for the purpose without the need of any further appropriation other
than this Act, and he shall make a report thereon to the House
within one month of such appropriation, and where the House is not
sitting at the time not later than the third sitting after the House
reconvenes.
PART VII 
PAYMENT OF MONEYS
Authority for the 
issue of moneys. 
Amended by: 
L.N. 46 of 1965.
26. No moneys shall be issued out of the Consolidated Fund,
except as provided in the Constitution, nor out of other funds or
accounts except for the purpose of such funds or accounts and
under such authority as may be applicable to their constitution.
All disbursements 
to be made by 
Accountant 
General.
Amended by:
XVI.1997.8.
27. (1) Subject to the provisions of this Act and of any
regulations made thereunder, all disbursements of public moneys
shall be made by the Accountant General in such manner as may be
prescribed by the Minister by regulations made under the
provisions of this Act.
(2) The Accountant General shall not make any payments
(notwithstanding that the services to which they relate may be duly
provided for in the Appropriation Act) unless authorised so to do
         FINANCIAL ADMINISTRATION AND AUDIT      ġCAP. 174.       9
by warrant under the Minister’s hand and directed to him.
(3) Such warrant shall be signed in triplicate by the Minister.
One copy of the warrant shall be filed in the Minister’s office, one
in the Accountant General’s office and one in the National Audit
Office.
(4) No warrant under this section shall continue in force except
during the financial year for which it is issued.
Payment on 
vouchers.
28. Every claim for the payment of public moneys shall be set
out in a voucher in such form as the Accountant General may
direct, and shall be charged against the proper vote or account and
certified by the officers who are recognised by the Accountant
General as the proper officers for the purpose.
Payment of 
accounts by 
accounting 
officers.
29. No accounting officer shall pay any account unless he has
ascertained that the provisions of this Act and of any regulations
made thereunder relating to the payment of accounts have been
complied with and that the payment of the account is in accordance
with proper authority.
Contingencies 
Fund. 
Amended by: 
VI.1962.2; 
L.N. 46 of 1965;
XIII. 1983.5.
30. (1) There shall be established a fund (to be known as "the
Contingencies Fund") of five hundred thousand liri which amount
shall be provided, within a period of five years, by appropriation
made from time to time out of the Consolidated Fund to the said
fund.
(2) The Minister may, if he is satisfied that there has arisen an
urgent and unforeseen need for expenditure for which no other
provision exists or for which funds cannot be provided under article
24, make advances from the Contingencies Fund to meet that need,
until a Supplementary Appropriation Bill providing for such
expenditure can be passed into law.
(3) The Contingencies Fund shall be operated in accordance
with the rules set out in the Schedule. The provisions of this
Schedule may be amended by further rules to be made by the
Minister, which shall be published in the Government Gazette and
shall be laid on the Table of the House of Representatives at the
next meeting thereafter.
Imprest. 
Amended by:
XXII. 1976.4.
31. (1) Whenever it becomes necessary for any accounting
officer to have at his disposal, for disbursement on the public
service, moneys for which vouchers cannot be presented direct to
the Accountant General for payment, an imprest may be issued to
him for such amount as the Minister may authorise.
(2) The Secretary for Gozo Affairs may receive a floating
imprest for such amount as the Minister may authorise to enable
him to carry out the service of all the departments in Gozo in
accordance with this Act and with any regulations made thereunder.
(3) The authority mentioned in the two last preceding
subsections shall be conveyed to the Accountant General by an
imprest warrant under the Minister’s hand.
 10        CAP. 174.ħ          FINANCIAL ADMINISTRATION AND AUDIT
Treasury Clearance 
Fund. 
Amended by: 
L.N. 46 of 1965.
32. There shall be established a fund to be known as "the
Treasury Clearance Fund" to provide for the receipt and repayment
of court and other deposits and of moneys raised by the issue of
Treasury Bills, and for payments of money orders and other postal
transactions, for payments on behalf of other administrations, for
payments on account of pensions awaiting sanction, for purchase of
wheat and unallocated stores, and for the purpose of meeting any
other expense temporarily defrayable out of public funds and
repayable gradually or otherwise into this fund out of the
Consolidated Fund or from other sources.
Disbursements 
from Treasury 
Clearance Fund for 
advances or loans 
to the Dockyard. 
Added by: 
XXIV. 1967.2. 
Amended by: 
XIII. 1983.5. 
Cap. 177.
33. (1) If, at any time during the period of six months from the
lst August, 1967, circumstances exist which in the opinion of the
Minister are deemed to be of sufficient gravity as to warrant in the
national interest the making of advances or loans in respect of the
Dockyard, the Minister may, during the period aforesaid, make
such advances or loans under such terms of repayment and
servicing as he may deem appropriate and may, for such purpose
and in the manner specified in this Act, utilise moneys raised by
Treasury Bills up to an amount at any one time outstanding not
exceeding in the aggregate the sum of five hundred thousand liri.
(2) In this section "Dockyard" has the same meaning as it has
in the Malta Dockyard (Temporary Provision) Act.
Disbursements 
from Treasury 
Clearance Fund for 
advances, loans or 
deposits in aid of 
exports.
Added by: 
XXXI. 1968.2. 
Amended by:
XXXII.1969.2; 
XIII.1983.5.
34. The Minister may during the period of two years to be
reckoned from the 27th November, 1968, make such advances,
loans or deposits in aid of exports made during the said period
under such terms as he may deem appropriate and may, for such
purpose and in the manner specified in this Act, utilise moneys
raised by Treasury Bills up to an amount at any one time
outstanding not exceeding in the aggregate one million liri.
Transfer of 
moneys.
35. (1) The debit and credit balances existing on the lst April,
1962, of those accounts the receipts and payments whereof would
have been accounted for in the Treasury Clearance Fund had that
fund been established on that date shall be deemed as from that date
to have been transferred to that fund, which shall be deemed to
have been established on that date as a fund of the Government of
Malta for the specific purpose referred to in article 32.
(2) All receipts and payments of the accounts referred to in
subsection (1) of this section which, as from the 1st April, 1962,
would have been accounted for in the Treasury Clearance Fund had
that fund been established on that date shall be deemed as from that
date to have been so accounted for.
Accrual of interest 
and investment 
fluctuation. 
Amended by: 
L.N. 46 of 1965;
XXXIX.1976.8.
36. Subject to the provisions of this section, interest and other
income accruing to the Treasury Clearance Fund shall be credited
to the Consolidated Fund and any appreciation or depreciation in
the value of any investments of the Treasury Clearance Fund shall,
together with any profits or losses arising from the sale or
redemption of securities, be credited or debited as the case may be
to the Consolidated Fund:
  Provided that in the case of deposits on account of foundations
         FINANCIAL ADMINISTRATION AND AUDIT      ġCAP. 174.       11
or trusts, the Il-Monti and the Custodian of Enemy Property such
interest and other income, appreciation or depreciation in the value
of investments and the profits or losses on the sale or redemption of
securities shall be credited or debited as the case may be to the
proper account.
Disbursements out 
of Treasury 
Clearance Fund.
37. The Minister may without further appropriation than this
Act cause the Accountant General to effect disbursements from the
Treasury Clearance Fund by warrant under the Minister’s hand,
which in the case of all payment of moneys repayable into the fund
shall specify the manner and terms of such repayment.
Power to transfer 
temporarily from 
one account to 
another.
38. The Accountant General may from time to time transfer
any balances of the public account, or any part thereof, from one
fund or account to another fund or account, within the public
account for such periods and on such terms as the Minister may
authorise.
PART VIII 
INVESTMENTS
Investment of 
balances.
39. The Minister may, from time to time, cause any of the
balances of the public account or any other account, or any part
thereof, to be invested, on behalf of the proper fund or account, for
such periods and on such terms as he thinks fit, in the purchase of
such securities as he may from time to time declare to be securities
in which public moneys may be invested.
Accounting of 
interest on 
investments.
40. The interest received on securities purchased under this
Part of this Act shall unless otherwise provided in this or any other
law be paid to the public account or any other account to the credit
of the proper fund or account to which the securities belong.
Sale or exchange 
of securities.
41. Whensoever it shall seem to the Minister to be expedient in
the interest of the public service, he may from time to time cause
such securities, or any part thereof, to be sold and converted into
money and the proceeds either paid to the credit of the proper fund
or account to which they belong or re-invested, on behalf of the
proper fund or account in the purchase of any other securities
authorised by this Part.
Purchase and 
custody of 
securities. 
Amended by: 
XXII. 1976.4.
42. (1) The investments in securities shall, in the case of
securities held in Malta, be made in the name of three or more
persons jointly, who shall be appointed from time to time by the
Minister, and, in the case of securities held abroad, in the name of
such person or persons as may be appointed from time to time by
the Minister.
(2) Such persons shall only have the custody of such securities
on behalf of the Government of Malta and it shall not be lawful for
them severally or jointly to take any measures in respect of such
securities save as provided by this Act.
 12        CAP. 174.ħ          FINANCIAL ADMINISTRATION AND AUDIT
Provisions for 
ensuring safe 
custody. 
Amended by: 
XXII. 1976.4.
43. In order to ensure the safe custody of all securities, the
following provisions shall apply:
(a) all securities in Malta shall be held under two or more
keys by the persons vested with their custody, or
deposited by them in the bank, and such of the
securities as are kept abroad shall be held in the
custody of such person or persons as may be appointed
from time to time by the Minister;
(b) securities held in respect of each fund or account shall
be kept separate and apart from those of any other fund
or account;
(c) securities held in respect of each fund or account shall
be kept and used solely for the purposes of that fund or
account.
Manner in which 
securities may be 
sold, converted or 
exchanged.
44. In order to facilitate the sale, conversion, exchange or
other disposition of such securities, as occasion requires, the
persons vested with the custody thereof shall, at the written request
of the Minister or of any other officer duly authorised by him in
writing in that behalf, part with the possession of the securities and
sign without delay such documents as may be necessary for the
sale, conversion, exchange or other disposition thereof. The request
shall specify the purpose for which the securities named therein are
required.
Certified returns of 
securities held 
abroad. 
Amended by: 
XXII. 1976.4;
XVI. 1997.7.
45. At least once in every year in respect of securities held
abroad on behalf of the Government of Malta, the Accountant
General shall obtain from the persons vested with their custody a
certified statement of all such securities, showing separately the
fund or account for which they are respectively held.
Return of securities 
to be submitted to 
Auditor General. 
Amended by: 
XXII. 1976.4;
XVI. 1997.7.
46. An annual return of all securities held in Malta and abroad
under the provisions of this Part of this Act shall be prepared by the
Accountant General and forwarded to the Auditor General as
provided in article 67.
PART IX 
MONEYS OUTSIDE MALTA
Arrangements 
regarding moneys 
outside Malta.
47. Notwithstanding anything in this Act, the Minister may
make arrangements on such terms and conditions as he considers
necessary for the collection, receipt, custody, deposit in banks,
issue, expenditure, advances, due accounting for, care and
management outside Malta of any public moneys and for the
keeping of accounts, and furnishing of statements, returns and
vouchers relating to such collection, receipt, custody, deposit,
issue, expenditure, advances and for the examination of such
accounts, statements, returns and vouchers.
         FINANCIAL ADMINISTRATION AND AUDIT      ġCAP. 174.       13
PART X 
AUDIT AND INSPECTION
Duties of the bank.
Amended by:
XVI.1997.7.
48. The bank into which public moneys are paid, shall, at such
times as the Accountant General may fix, transmit to him a
statement showing, in order of date, every sum received and paid
under each account kept at the bank, and shall furnish him with a
monthly certificate, in duplicate, of the public moneys in the hands
of the bank at the end of each month and at such other dates as may
be fixed by him. One copy of the certificate shall, after the balance
therein shown has been found to agree with that shown in the
Treasury books, be forwarded by the Accountant General to the
Auditor General.
Measures against 
fraud and 
irregularities.
Added by:
I. 2004.5.
Cap. 396.
Cap. 461.
Cap. 12.
49. (1) Where, on the detection of any irregularity or fraud
against public moneys, a report made in terms of the provisions of
the Auditor General and National Audit Office Act or the Internal
Audit and Financial Investigations Act is sent or referred to a Head
of Department he shall thereupon take all necessary measures for
the protection of such public moneys, including the levying of
administrative penalties in accordance with regulations made under
article 52 and legal action for the recovery of the amount of any
deficiency, loss, improper payment caused or made as a result or in
the course of any such irregularity or fraud and the provisions of
article 466 of the Code of Organization and Civil Procedure shall
apply to any amount recoverable as aforesaid.
(2) Notwithstanding any stipulation to the contrary any bond,
bank guarantee or other security given for the proper performance
of any contract payable out of public moneys shall also extend to
guarantee the recovery of any moneys or administrative penalties in
connection with the contract and for which the person supplying
the bond, bank guarantee or other securitymay be liable.
(3) Where the deficiency, loss, or improper payment as a result
of the irregularity or fraud involves funds received by the
Government from any international or supranational organization
or body or from any of its institutions or bodies or under the terms
of any treaty or other agreement between States any proceedings
under this article shall take place in consultation with the person in
Malta, if any, specifically charged with authorising the payment or
release of such funds by the Head of Department:
Provided that the lack of such consultation shall not in any
way whatsoever affect the validity of any proceedings taken under
this article.
(4) Where two or more persons are responsible for the
irregularity or fraud which resulted in the deficiency, loss, or
improper payment those persons shall be held jointly  and severally
liable therefor together with any other person who, although in duty
bound to do so, failed to take reasonable precautions and to
exercise due diligence to prevent the irregularity or fraud.
(5) Nothing in this article or in this Part shall be construed as
precluding any other person interested from taking action, whether
jointly with the Head of Department or otherwise, for the recovery
 14        CAP. 174.ħ          FINANCIAL ADMINISTRATION AND AUDIT
of any sum recoverable under the provisions of this article.
(6) For the purposes of this article and the other articles under
this Part, "Head of Department" includes any director, manager,
secretary or other principal officer of a body, whether vested with
legal personality or not, which is responsible for administering,
holding or using public moneys or which is a recipient or
beneficiary of public moneys, or who is a person having a power of
representation of such a body or having an authority to take
decisions on behalf of that body or having authority to exercise
control within that body.
Interest to be 
charged.
Added by:
I. 2004.5.
50. On any amount recoverable under article 49 there shall be
charged interest equivalent to the average weighted rate applicable
on the due date on the local money market for short-term public
finance operations for the period during which the amount remains
unpaid from the date on which it becomes payable.
Information.
Added by:
I. 2004.5.
51. For the purpose of recovering any moneys that may be
recoverable under the provisions of article 49 any Head of
Department who receives or to whom is referred a report as
provided in that article may, without prejudice to the constraints
imposed by professional secrecy according to law, require any
person managing public moneys to provide any information in his
possession relevant for the said purpose.
Administrative 
penalties.
Added by:
I. 2004.5.
52. The Minister may by regulations provide for administrative
penalties which may be imposed for any irregularity, for the
procedure to be followed for the imposition of such penalties and
for any other matter incidental or supplementary to any of the
foregoing matters:
Provided that an administrative penalty may not be greater
than fifty thousand liri.
Production of 
vouchers. 
Added by: 
VI. 1962.3.
53. Repealed by: XVI.1997.7.
Receipts for 
wages, social 
service allowances, 
etc. 
Amended by: 
VI. 1962.4.
54. Repealed by: XVI.1997.7.
Power of surcharge 
by Director of 
Audit.
55. Repealed by: XVI.1997.7.
Person surcharged 
and Minister to be 
notified of 
surcharges.
56. Repealed by: XVI.1997.7.
Manner of 
recovering 
surcharges.
57. Repealed by: XVI.1997.7.
Surcharge may be 
withdrawn.
58. Repealed by: XVI.1997.7.
Appeal to Minister. 59. Repealed by: XVI.1997.7.
         FINANCIAL ADMINISTRATION AND AUDIT      ġCAP. 174.       15
Prosecution of 
defaulters.
60. Repealed by: XVI.1997.7.
Extent of audit.
PART XI 
ACCOUNTS AND STATEMENTS
Accountant 
General’s books of 
account.
 62. The Accountant General shall cause to be kept at the
Treasury the following books of account: a cash book, a journal, a
ledger and a monthly abstract, together with such subsidiary and
other books as he may consider necessary.
Accounting 
officers’ books of 
account.
63. Subject to the provisions of any regulations made under
this Act, every accounting officer collecting, receiving or paying
public moneys shall keep such books and accounts in such manner
and form as the Accountant General may, from time to time, by
circular or minute, direct.
Quarterly 
statement of 
Consolidated Fund 
Account to be 
published in the 
Government 
Gazette. 
Amended by: 
L.N. 46 of 1965. 
64. The Accountant General shall, as soon as conveniently
possible after the end of each quarter, submit to the Minister for
publication in the Government Gazette, a statement of the
Consolidated Fund Account as compared with the corresponding
quarter of the immediately preceding financial year. 
Annual statements. 
Amended by: 
L.N. 46 of 1965;
XVI. 1997.7.
65. (1) As soon as possible after the close of each financial
year, and in every case not later than three months after the close of
such year, the Accountant General shall prepare and forward to the
Auditor General the following returns: 
(a) a statement of the Consolidated Fund Account as
compared with that of the last preceding financial
year;
(b) a statement of the receipts and expenditure of any fund
or account created by this or any other law.
(2) As soon as the Auditor General returns such statements to
the Accountant General, the Minister shall cause such statements to
be published in the Government Gazette, and shall lay them on the
Table of the House of Representatives within ten days of such
publication:
  Provided that in reckoning such period, no account shall be
taken of any time during which the House of Representatives is
dissolved or prorogued, or during which it is adjourned for more
than ten days.
Certificate by 
Director of Audit. 
Amended by: 
L.N. 46 of 1965.
66. Repealed by: XVI.1997.7.
 16        CAP. 174.ħ          FINANCIAL ADMINISTRATION AND AUDIT
Preparation of 
annual financial 
accounts. 
Amended by: 
L.N. 46 of 1965;
XVI. 1997.7.
67. The Accountant General shall, as soon as possible after the
close of the accounts of every financial year, and in any case not
later than six months after the close of such year, prepare and send
to the Auditor General the following statements and accounts:
(a) an abstract of the receipts and payments of the Public
Account as compared with the receipts and payments
of the last preceding financial year;
(b) an abstract of the Consolidated Fund Account as
compared with that of the last preceding financial
year; 
(c) a detailed statement of revenue, as compared with the
estimates, showing variations in respect of each item; 
(d) a detailed statement of expenditure showing the
several sums appropriated under each head distributed
according to subheads as detailed in the estimates, the
expenditure made during the financial year, and the
amount over-expended or under-expended thereon;
(e) a statement of the receipts and payments in respect of
loans made by the Government;
(f) a statement of the public debt and the annual charge
thereon showing also the amount repaid during the
financial year;
(g) a statement of the receipts and expenditure of trust
funds and of any other fund or account of the
Government; 
(h) a statement of all investments held by the Government
at the end of the financial year on behalf of each fund
or account as required by section 46 hereof, showing
the cost price and the current market value in London
on that date;
(i) a statement of the revenue and expenditure of the
Malta Government Savings Bank* and of deposits
received and repaid and interest credited to depositors
together with a statement of assets and liabilities;
(j) a statement of assets and liabilities of the Government
at the end of the financial year;
(k) a statement of balances (excluding special funds) at
the end of the financial year;
(l) a statement of special funds deposited in the Treasury; 
(m) a detailed statement of advances made out of the
Treasury Clearance Fund;
(n) a tabular summary of unallocated stores financed out
of the Treasury Clearance Fund; and
(o) a statement of claims abandoned, of losses of cash and
of stores written off.
*Vide Malta Government Savings Bank (Winding Up) Act (Cap.307).
         FINANCIAL ADMINISTRATION AND AUDIT      ġCAP. 174.       17
Annual report on 
accounts and 
finances.
68. The Accountant General shall, as soon as possible after the
closing of the accounts of every financial year and in any case not
later than six months after the close of such year submit to the
Minister for publication a report on the accounts and finances of
the Government.
Contents of report 
by Director of 
Audit.
69. Repealed by: XVI.1997.7.
Recommendations 
by Director of 
Audit.
70. Repealed by: XVI.1997.7.
PART XII
MISCELLANEOUS
Loss of titles to 
goods or deposits. 
71. (1) On the loss of any receipt or document, entitling the
holder thereof or the person named therein to withdraw from any
government department any sum of money or any article deposited
therein, the Accountant General may, on receiving proof of such
loss through the permanent head of the department concerned,
authorise the issue of a duplicated receipt or document so lost,
provided a written indemnity is given to his satisfaction against all
claims that may be made against him by reason of the issue of such
duplicate receipt or document.
(2) The Accountant General may in his discretion and on his
own responsibility delegate in writing, on such conditions as he
may deem proper, any of his powers under this section to any
public officer not below the administrative officer class suitable in
his opinion for the purpose.
(3) The Minister may prescribe for the levying of a fee on the
issue of such duplicate receipts or documents.
Amended by: 
L.N. 46 of 1965.
SCHEDULE 
ġSECTION 30ħ
RULES FOR THE OPERATION OF THE CONTINGENCIES FUND
1. Advances from the Contingencies Fund shall be made on
the authority of a warrant under the hand of the Minister.
2. The amount for which any warrant is issued shall be
withdrawn from the Contingencies Fund and shall be paid into the
Consolidated Fund to meet the expenditure specified on the warrant
and the moneys remaining available in the fund shall be reduced
accordingly. Any amounts withdrawn and remaining unspent at the
end of the year shall accrue to the Consolidated Fund.
3. Each warrant authorising the issue of a sum from the fund
shall specify under which head or heads of the estimates the
 18        CAP. 174.ħ          FINANCIAL ADMINISTRATION AND AUDIT
expenditure of the sum issued shall be recorded and such
expenditure shall be accounted for in the same manner as if it had
been authorised by a supplementary Appropriation Act.
4. All withdrawals from the fund shall be included in a
supplementary estimate and an Appropriation Bill shall be
introduced in the House of Representatives as soon as possible for
the purpose of appropriating from the Consolidated Fund to the
Contingencies Fund a sum equal to the total of the sums withdrawn
and not already made good by previous appropriations from the
Consolidated Fund so that the Contingencies Fund shall be restored
to the amount appropriate under article 30.
5. No moneys shall accrue to the fund other than moneys
appropriated by an Act and any interest or other accruals which
might otherwise be received by the fund shall accrue to the
Consolidated Fund.
