Matragement Act, 2016 for the frndenl, efftcictrt' eflectivg and

ACT Stpplernen, to the Sierra Leone Extraordinary Gdzette yol- CXLX . No. 61 dated l9.h February, 2021 SIGNED this dsy of October 2023 DR JULruS MAADA BIO, President. No. 2023 Sierra Leone TIIE PUBIIC FINANCIAL MANAGEMINT (AII{ENDMEM) sho'r dtle- AC t, 2023. Being atr Act to amend provisions of tb€ Public Firancisl Matragement Act, 2016 for the frndenl, efftcictrt' eflectivg and tratrspa rent rystems of fina ucial managemeDt atrd iDternel controb and to prolide for other relatcd matlers tl ENACTED by the President and Members ofParliament in this present ParliameDt asseinbled. DsL of corr- ,llCnCCment. @ 1 i.io. The Public Financial Managernerd {Amendment) Act, 2023 PARTI-INSTITUTIONAL RESPONSIBILITIES IN BTJEGE-T SYSTEMS Respors-hlitis d vde dtrdlss to h'rlgday 4erd6' Amcndmcm l. Serricl l3cf tfEfudicFirsrjd MaBgsrerlAd20l6is ;; -- arEd€d in paar4h (b) cf sbdist(2) byr@ ad reflairg i"liX'irt pary4h (b) with sefdlorvirg ren pdagr€ptF "(b) ndrt in dfi cisr ad dfediveqrgsrs€f firsrid rEqsrst ad irtsrd crtrdq ad aqpernfa rdvirg ad indsrslirE irtqrd ad edsrC ' rrt ,ffirrrgddiffE " Amrn.tment 2 Sim13€f tlERlCicFirarid MaqgrEtAd 2016 is :1,, ,. -. arsdd inpqrEph (n) of s'Hian (2) byrePed adHajrg I$tl.'ir' paas4h(it)' i'tt'tretot.''virgtp'l'parydr '(m) 6Ere tH ar atgrirg cffics, irdLdrg ttE vttestrdls, trepaead s'tnit acfirprdsdve Hrg wr rdes to be dgrEd ad aoo+ed bY ttE irFsri rE cff i€ e,ri rE the dfi ce " A'netdmcnt 3 Sedidl 13cf tleRlHicFirsrjd MaqstEtAd 2916 is arrrdd trv irrstiru tfefdloMrg rer pa-4r4h (n) irrYdddy "Y,ff. ii' dter pragraph(m) a sldim (z)- of 20I6. "(n) sE etH an irwrirg offics irdLdirE ttE-vde cortrdls, Fr+ae a ddtB r+ort, in cm wfEe tfE prede@r cf thd cffice is dttEr ded. dfE *adtrEd ttecfficead fa wtidl ttEeis no aidd{ to pro/ide ary irforndim m the frrdiss cf tl'edecd d A€cddd cfficq" 4 Him 13cf tteRtiicFirEEid MaEgrErtAd 2016 is lkl,ir" ffi Wit*ti'utrefdloa'rgrEi/pa"4r4h(o) cf s'tdim of 2016 \o. The Publie Financial (Amendnent) "(m| i.n consultation with the budgetary ag€ncies' intemai auditor and audit committee, within 14 days of final audit report aod fuml maDageDeDt l€ner issued ior each conrplel.ed audiq develop separate implernentation plans forboth internal ard e*emal audit that set clear responsibilities and timelines for the implemeDtation of audit recommendations; " "(o) iu consultation with the agenc iDtemal auditor and audit committee, 4 days of final audit repot and final management letter ; issued for each completed audit, develop separate implementation plans that set clear responsibilities and timelines forrhe implernertation afbo& intemal and external audh recommetrdations."

Section 13 ofthe Public Financial Manag€menr Act 20 l6 is Ancndmeranended by insertingthe following new paragraph (p) ofsubsecd* llr* rr",(2)wilh the following new paragpph- Acl No. tj of 20t6. "(p) implement remmm€rdatioDs of iDtsrDal and extemal auditors." Responsibilities ofthe Vote Controllers ofSub -vented Agencies

Section l5 ofilre Public Financial MrugementAct 2016 is Atrtcddmcntanended ir paragraph (d) ofsubsetion (4) by repeal ard replacbg of sc{tion 15 paragraph {d) with the follouing new paragraph- - ii ,, li " 20t6. (d) maintain efficient and effective slrstcms of financial management md intemal controls" and a system forresolvingand implernenting intemal ad exemal audit recommeadatioos;

Section l5 ofthe Pubiic Financial ManagementAct20t6 is Amcndmcdtamended by inserting the following newparagraih (m) immediately ol,ffm l;ater paragraph (l) ofsubsection (4). of 2016. 4 No. The Pablic Fixanc i.i l{anigentenl (Amendnent) AcL 20?3 Amcndment of sactioo 15 of Act No. l3of 2016. Amcodmetrt ofj saction l5 of Act No. 13 Amcnddcnt of s.ction 75 of Act No. l3of 2016. ' & Section 15 ofthe Public Financial MaDagementAct 2016b arDended by inserting the follo$'ing new paragraph (n) imrnediately after paragraph (m) of subsection (4)- (n) "ensure that an outgoing otrlcsr prePare and submit a comPrcheDs iv€ handfuig over aotes to be signed and accepted by the in-coming officer assuming the office; "

Section 15 of the Public Financial Man€ementAct 2016is amerded by inserting the following new paragraph (o) immediately afterparagaph (n) of subsection (4)- (o) "an incoming officer including the vote controller shall prepare a seatus rcpon" i n cases where the predecessor of tiat office is either dead or has abandoned the office an{ for rvhich lbere is no assistanl to provide information on the fimctioDs ofihe deceased or absconded officer" PARTII -BUMET EXECI,JTION AND TREAS1JRY N{ANAGEMENT INTERNALAI.IDIT

Section 75 ofthe Public Finarcial MamgementAct 2016is amended in paragraph (d) ofsul'iection (2) by repeal and replacing paragraph (O) with the follorv-r1::i: riraqraph' '(d) rcvie$' implementation ofthe recommendations of intemal audit, Auditor Gen€ral ard other extetml auditors;" No. The Public Finoncial Management (Anendment) It. Section 75 ofthe Public Finaocial Maaagemqrt Act 20 16 is A."id.cot ameoded by repeal aud replacing paragraph () with the foltowing LL,- ,, o, new paragraphof subsection (2F "*,ri,i;. " "O sball prepare and submit to tlrc Mioister follow{p status report of extemal audit aad internal audit recommendations for publication on the minisfy's websitg 30 days after submission of such rpporq"

Section 75 ofthe Public Financial Marngeme Act20l6is Amcrdmentamerded by inserthg a new paragraph (l) of subs€ction (2), maki"g :l Ht"75previous paragraph 0) to become now paragraph (l) - ti or zoro. 12 Section 75 oftbe Public Financial ManagementAct20l6 is amended by inserting a new paragraph (k) ofsubsection (2) - "(k)shall categorise findings and recomrnendations arising from the htema.l a.od ext€mal audit reports in accordaace wifh standard operating procedures manual on audit follow-up" "(l) perform any otier fimctions assigned to it by the head oftte agency or entity"

Section 75 ofthe Public Financial ManageDentAct 20t6 isamended by deleting the word 'Director of Inrcmal Audit" and inserting the word 'Miuister" under subssction (O, to now rEad as - '(ONotqrithstadi4g this Act or any other law, wheie a person fails to respond to a query or observation from the lltemal Audit, bis remrmeratio4 fees and allowances shall be withheld subject to the authorizatioD of the Miaister urtil the otrrrer responds to the Internal Audit's query or observation- " Arrctrdmellt of sectioa 75 of Act No. 13 Aroandmcrt of scctioD 75 of Act No. 13 )n)? 6 No- The Public Finoncia! Manage,rent (Amendment) ,4ct, 2023 MEMORANDLM OE OBJEC'TS,AND REASONS Tbe object of this Bill is mainly to amend the Public Fiaancial Matragemenl Act iOiO 6t ptop". u"*untability and transparcnt systems of financial management and intemal controls. The bill is divided into two Pads - Pafi I - deals with Fovisions for a system that shall resohe and implement audil recomnendations; and orovides that a serving officer, at the tinre ofthe audir tbtlorv-up' shall not refuse il" rJeo""ruifiry "fpioviairg ioformation and supporting documents relating to 'the activities ofhis Part II - provides for the following - (a) ensuring consistency and comparability in the ca*egorization of audit obsewatiols and recoarmendations for effective follou'uP, data ana$sis and disseminatio4 (b) establishes a structued and disciPlined follorv-up process by the iaternal audit function for aggressive and continuous resolutio and implemeDtation of audit recommendations; (c) captwes internal audit on the rcview df implementation of extemal audit recommen&tions; and (rI) gving powers to the Minister responsible for Finance instead ofihe Director InterDal Audit torespond to wiibhold remunemtion- fees and allcwances of a person wbo frils to respond to a quttl'r: obsrivation from the Internal Audit- No. The Public Fi a,rcial Management (Amendment) Ad ?n)1 Passed in Parliament this l,ord two thousand aud TweotyTwo. dol'oj , inthe Y€ar of our PARAN UMAR TARAWALLY Clerk of Pa iament. Trls PrnfiED IMpREssroN has beer carefirlly compared by me wirh the Bill which has passerl Parliament and found by rre to be a true and corrert priDted copy ofihe said Bill. PARAN UMAR TARAVTALLY, Clerk of Parliaorent Ptr.reo,,...o RmusrcD By rljE GorERNr@qr Prorrno Deexrrm.I, SIEnRA LEolrE F-v.noaruat G*t::'rs No. 64 or l9m Ocroare, 2023.