The Ministry of Finance has issued a periodical letter, in late 2017, on the accounting treatment of special accounts and funds. It stresses the necessity of speeding the application of final ban on issuance of government paper checks to all special funds and accounts and limiting the payment of financial dues required by these authorities to be done by issuing electronic payment orders through the electronic payment and collection system only.
The periodical letter stressed the need to comply with the instructions of the Minister of Finance, Amr EL-Garhy, related to the procedures and accounting treatments specified by the Ministry by the funds and accounts which do not have an institutional code. For example, when transferring amounts from the accounts of those entities at the Central Bank, this shall be under a letter of transfer directed to the Central Bank approved and signed by both authorized employees who dealing with the account of the main accounting unit to be disbursed from, and that in the central accounting unit.
The periodical letter noted that the accounting procedures and treatments also include the need to take into account the disbursement mechanism specified for both the special fund or account. The disbursement form shall be released and approved of the amounts due to be disbursed from special accounts and funds by the competent department of the special account or the special fund accompanied by the supporting documents approved by the entity head or its authorized representative to the accounting unit responsible for audit completion, and to verify the disbursement validity, and according to the special account or fund regulation, and the laws governing the financial government aspects, as well as complete the net amounts form to be disbursed that explains number of statements, such as (disbursement statement, beneficiary name, bank branch, account number, national ID number), signed by those officials to whom signatory, and stamped with the coat of arms or stamped with the stamp of the special account as applicable, attaching adopted list of eligible for disbursement names.
The periodical letter mentioned that for the disbursement mechanism of the main accounting unit, when the special form received and attached with the disbursement request, it will be fulfilled and audited; it will be also adopted by Ministry of Finance’s representative to the main accounting unit, and registered in the accounting records. In addition to that, the necessary payment order will be issued in accordance with the received form sent by the special account or fund.
The periodical letter underlined the commitment of all financial officials in the State’s administrative system, local administrative units, service bodies, independent central bodies, directors of financial directorates, controllers, and accounting managers and agents; and taking into account these instructions without further delay.