The Governor signed the new Public Finance Management Ordinance into law yesterday, Monday, 19 Mar 2012. This follows on from signing the National Audit Office Ordinance last Friday.
Both will be published in the Gazette on Fri, 23rd March. They will both commence from the start of the new financial year on the 1st of April 2012.
This is a major achievement. Completion and introduction of the PFM Ordinance takes the TCI one step closer to fulfilment of the milestones set out by UK Ministers in the Written Ministerial Statement published in December 2010.
It was also a requirement of the EU for the release of EDF 9 funds to the TCI, that new PFM legislation should be in place before the end of 31st March 2012.
Completion of the National Audit Office Ordinance provides additional legal measures to support stronger management and scrutiny of the management of public money.
The UK’s National Audit Office previously noted that the NAO Bill is exemplary and could be used as a benchmark for all UK Overseas Territories and even other Caribbean nations.
The Public Financial Management Bill sets out the high standard of public financial management framework that the UK expects from its Overseas Territories.
This includes measures to strengthen the management of public finances; improve medium term fiscal planning, to put value for money first, to limit borrowing, and to deliver greater public sector accountability to the people of the Turks and Caicos Islands.
In addition to the strengthened public financial management provisions, the enactment of the NAO Bill will allow for the new National Audit Office to be established for the TCI providing a further layer of oversight and required accountability for the spending of public money.
Enactment of both Bills before the start of the new financial year will allow ample time for implementing the laws and embedding new higher standards of public financial management and oversight ahead of new elections planned for later in 2012.
