Law
No. (1) of 2016
Concerning
the
Financial
Regulations of the Government of Dubai[1]
ـــــــــــــــــــــــــــــــــــــــــــــــ
We, Mohammed bin Rashid Al
Maktoum, Ruler of Dubai,
After
perusal of:
Law
No. (5) of 1995 Establishing the Department of Finance;
Law
No. (7) of 1995 Concerning the Financial Regulations of Government Departments
in the Emirate of Dubai and its Implementing Bylaw;
Law
No. (6) of 1997 Concerning Contracts of Government Departments in the Emirate
of Dubai and its amendments;
Law
No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law
No. (11) of 2006 Establishing the Investment Corporation of Dubai and its
amendments;
Law
No. (7) of 2008 Concerning Public Debt Procedure;
Law
No. (31) of 2009 Establishing the Dubai Government Human Resources Department;
Law
No. (14) of 2009 Concerning the Pricing of Government Services in the Emirate
of Dubai and its amendments;
Law
No. (35) of 2009 Concerning Management of the Public Funds of the Government of
Dubai and its amendments;
Law
No. (8) of 2010 Concerning the Financial Audit Department and its amendments;
Decree
No. (24) of 2007 Forming the Supreme Fiscal Committee in the Emirate of Dubai
and its amendments; and
Decree
No. (21) of 2011 Authorising Government Entities in the Emirate of Dubai to
Open Bank Accounts,
Do hereby issue this Law.
The
following words and expressions, wherever mentioned in this Law, will have the
meaning indicated opposite each of them unless the context implies otherwise:
|
Emirate: |
The
Emirate of Dubai. |
|
Ruler: |
His
Highness the Ruler of Dubai. |
|
Government: |
The
Government of Dubai. |
|
Executive
Council: |
The
Executive Council of the Emirate of Dubai. |
|
SFC: |
The
Supreme Fiscal Committee formed pursuant to the above-mentioned Decree No.
(24) of 2007. |
|
DOF: |
The
Department of Finance. |
|
ICD: |
The
Investment Corporation of Dubai. |
|
Government
Entity: |
Any of
the Government departments, public agencies or corporations, Government
authorities or councils, or similar entities. |
|
Director
General: |
The
director general of the DOF. |
|
Government
Company: |
A
commercial establishment or company wholly or partly owned by the Government
or by a Government Entity. |
|
Head
of Government Entity: |
A
director general, executive director/ chief executive officer, or secretary
general of a Government Department or a person holding a similar position. |
|
Financial
Year: |
A Gregorian calendar
year starting on 1 January and ending on 31 December of the same year. |
|
General
Budget: |
The
Government budget, for a Financial Year, which is approved pursuant to a law
and which contains the total estimated Public Revenue and estimated Public
Expenditure of the Government and Government Entities whose budgets are
included in the General Budget. |
|
Independent
Budget: |
A budget
which is separate from the General Budget and contains the estimated Public
Revenue and Public Expenditure of a Government Entity having legal
personality, Financial Autonomy, and administrative autonomy pursuant to its
establishing legislation, and whose annual budget is not included in the
General Budget. |
|
Supplementary
Budget: |
A budget of
an entity receiving annual support from the Government, which is separate
from the General Budget. |
|
Final
Accounts: |
The actual
financial statements for the Financial Year then ended, prepared by a
Government Entity in accordance with the standards and principles of the DOF
and in compliance with the accrual basis of accounting adopted for the public
sector. |
|
Consolidated
Final Accounts: |
Actual
consolidated financial statements of Government Entities for the Financial
Year then ended, prepared by the DOF in accordance with its standards and
principles and in compliance with the accrual basis of accounting adopted for
the public sector. |
|
Public
Revenue: |
Financial proceeds
generated from the services provided and the activities conducted by
Government Entities. This includes, without limitation, taxes, fees, prices,
tariffs, fines, sale proceeds, rent, proceeds from franchises, profits,
encashing guarantees, and similar revenue. |
|
Public
Expenditure: |
Financial
allocations included in the General Budget to meet the needs of Government
Entities and enable them to perform their duties and achieve public interest.
This includes ordinary expenditure and Contingent Expenditure. |
|
Contingent
Expenditure: |
Estimated
amounts required to meet unforeseen emergency needs which may not be deferred
as they affect public interest, and to which no funds are allocated under
Public Expenditure in the General Budget. |
|
Public
Treasury Account: |
An account
in which the following are deposited: -
all Public Revenue collected from Government Entities whose budgets
are included in the General Budget; -
amounts received from such entities as deposits and amounts held in
trust; -
surpluses and profits of Government Entities having Independent
Budgets; and -
profits earned by Government Companies. From this
account, amounts are disbursed to meet Public Expenditure in implementation
of the General Budget, and it includes all amounts, from whatever source,
managed by the DOF. |
|
Public Debt: |
The total
financial liabilities of the Government expressed in UAE Dirhams, including
internal and external debt incurred by the Government and Government
Entities. |
|
Debt
Instrument: |
Any debt document
issued by the Government or to which the Government is a party, and which
involves an obligation by the Government to settle a specific amount. |
|
Public
Funds: |
All tangible
and intangible assets owned by the Government and Government Entities,
including Public Revenue and damages; capital invested in Government
Companies; embezzled, stolen, or unlawfully paid Government funds; debts owed
by third parties to the Government; funds provided to the Government or
Government Entities as loans, financial aid, gifts, or cash or in-kind
donations; proceeds from Public Treasury bills and investment certificates
issued by the Government; financial support provided by the Government to
entities and individuals; and any other funds deemed as Public Funds by the
legislation in force. |
This Law applies to the following
entities:
1. Government Entities whose budgets are included
in the General Budget;
2. to the extent allowed by this Law,
Government Entities having Independent Budgets; and
3.
to
the extent allowed by this Law, entities receiving
financial support from the Government.
This Law aims to achieve transparency,
accountability, and good governance of Public Funds by regulating:
1.
management of the General Budget;
2.
audit of the Public Revenue, Public
Expenditure, Government assets, and various accounts of all the entities to
which this Law applies;
3.
preparation and approval of Final
Accounts, and establishing the fundamental rules governing financial records;
4.
preparation and approval of the fiscal
and accounting policies and procedures that must be followed by Government
Entities;
5.
approval of the institutional
performance governance rules and standards based on relevant best practices;
and
6.
improvement of financial risk
management and aversion systems.
For purposes of this Law, the SFC will
have the duties and powers to:
1. discuss and approve the general fiscal
policy of the Government, and submit it to the Executive Council for final
approval;
2. discuss and approve the General Budget
and Supplementary Budget, refer these to the Chairman of the Executive Council
or his authorised representative for approval, and submit them to the Ruler for
final approval;
3. approve Independent Budgets upon the
recommendations of the DOF;
4.
approve
Public Debt management rules, and approve Debt
Instruments submitted to it by the DOF;
5. upon the recommendations of the DOF, approve
methods of funding the General Budget deficit;
6. determine the Public Expenditure
ceiling upon the recommendations of the DOF; and
7.
perform
any other duties that are required for the
achievement of the objectives of this Law.
For purposes of this Law, the DOF will
have the duties and powers to:
1. prepare the general fiscal policy of
the Government based on the approved strategic objectives of the Emirate;
2. in cooperation and coordination with
Government Entities and the entities receiving financial support from the Government,
prepare the General Budget, Supplementary Budget, and medium term fiscal plan
in compliance with the policies and standards approved by the SFC;
3. follow up the implementation of the
approved General Budget and the Supplementary Budget, and develop the plans
required to secure financial liquidity, and transfer approved financial
allocations to concerned entities;
4. review Independent Budgets and submit
the relevant recommendations to the SFC;
5. develop the rules governing the
collection of Public Revenue, the disbursement of Public Expenditure, and the
bank accounts of Government Entities;
6. manage all Government reserves set
aside by deduction from Public Revenue as per the rates prescribed by the SFC;
7. manage Public Debt and propose methods
for funding the General Budget deficit in accordance with the relevant
legislation in force;
8. develop policies and procedures for
the management of the tangible and intangible assets of Government Entities
such as intellectual property rights, machinery, vehicles, equipment, supplies,
tools, and similar assets;
9. prepare the Consolidated Final
Accounts at the end of each Financial Year, and submit the same to the Ruler
for approval;
10. establish the accounting standards and
prepare the chart of accounts adopted for the financial regulations of the
Government;
11. prepare studies and reports on the
general financial affairs of the Government;
12. raise awareness of the objectives of
the fiscal policy and of the General Budget implementation indicators, and
disseminate the same in any manner it deems appropriate;
13. in accordance with the procedure
adopted by the DOF in coordination with concerned Government Entities, review
draft local and federal financial and tax legislation, and any other
legislation or Contract that may result in the Public Treasury incurring
financial burdens, and provide comments on the same;
14. supervise the implementation of this
Law and the resolutions, circulars, instructions, and manuals issued in
pursuance hereof, and submit any non-compliance reports to the Chairman of the
Executive Council or his authorised representative; and
15. perform any other duties related to
the management of Public Funds as assigned to the DOF by the SFC.
A Government Entity must comply with this Law
and the resolutions, circulars, instructions, and manuals issued in pursuance
hereof, and must in particular:
1. manage Government financial resources
in an efficient, effective, and economical manner through financial management,
performance, and internal audit systems that comply with the rules and
regulations issued by the DOF with regard to matters related to the
implementation of this Law;
2. implement the regulations, procedures,
and instructions related to the planning and analysis of primary and secondary
programmes and capital projects in accordance with the relevant rules issued by
the DOF;
3. comply with the programmes and
projects approved under the General Budget. Where, pursuant to a resolution,
such programmes and projects are extended or unbudgeted programmes are
introduced, these programmes and projects must be
submitted to the DOF for consideration, and the DOF will submit the relevant
recommendations to the SFC for approval in preparation for submission to the
Executive Council for final approval; and
4.
refer
all recommendations related to imposition, amendment, or cancellation of
sources of Public Revenue to the DOF for consideration and approval in
accordance with the legislation in force in the Emirate.
The General Budget is an important tool that enables the
Government to plan and implement its general policy. It is an efficient tool to
enable the Government to achieve its objective of good governance of Public
Funds, and to achieve economic stability and sustainable development in the
Emirate through efficient allocation and effective utilisation of resources.
When preparing the draft General
Budget, the following fundamental rules must be followed:
1.
Comprehensiveness
The General Budget must include all
estimated Public Revenue and all estimated Public Expenditure of Government
Entities for the relevant Financial Year.
2.
Universality
The whole Public Revenue estimated for
a Financial Year must be used to cover the whole estimated Public Expenditure
for that Financial Year. No particular Public Revenue may be allocated to cover
a particular Public Expenditure. No set-off may be allowed between Public
Expenditure and collected Public Revenue. Particular Public Revenue items may
be allocated to cover particular Public Expenditure items only in cases
determined by the DOF subject to the approval of the SFC and the exigencies of
public interest.
3.
Annuality
A General Budget must be prepared for
each Financial Year, and a law approving such budget will be issued on a yearly
basis. The financial appropriations allocated in the General Budget and their
purposes, and the breakdown of the General Budget must be adhered to.
4.
Unity
A draft General Budget must be
prepared and submitted as an integrated unit comprising all Public Revenue and
Public Expenditure.
Unless otherwise decided by the Ruler
or the SFC, the Financial Year of the Government will commence on 1 January and
will end on 31 December of each year, and the Financial Year of each Government
Entity must coincide with the Financial Year of the Government.
Government Entities whose budgets are
included in the General Budget and any other entities determined by the DOF
must:
1. create accounting entries, record
accounting transactions, and issue Final Accounts in accordance with the
principles and standards issued by the DOF in compliance with the accrual basis
of accounting adopted for the public sector; and
2.
submit
their annual budgets and their reports on the implementation of the annual
budgets which include estimated and actual Public
Expenditure and Public Revenue.
a.
Financial and accounting statements,
reports, and data; agreements; Contracts; and correspondence concerning all Government
financial transactions must be prepared in Arabic. These documents may be translated
into English where required, in which case the original Arabic version will
prevail in any case of conflict between the Arabic text and the English text.
b.
Notwithstanding the provisions of
paragraph (a) of this Article, an agreement or a Contract drafted in English may,
where necessary and subject to approval of the Head of a Government Entity, be concluded
where the nature of the Contract or the technical terms contained therein so
require.
Smart systems and applications must be
used in all financial transactions in accordance with the provisions and
procedures stipulated in the implementing bylaw of this Law.
Unless pursuant to a resolution of the
Director General issued upon the recommendation of the Dubai Government Human
Resources Department, budgeted posts approved in the General Budget may not be
increased and their grades may not be changed, new posts may not be introduced,
and new employees may not be appointed in excess of the financial allocations approved
by the General Budget law or contrary to the relevant policies approved by the
Government.
Prior to commencement of the Financial
Year, the DOF will:
1.
prepare the financial framework of the
General Budget and the fiscal policy of the Government in line with the
approved strategic objectives of the Emirate, and in accordance with the relevant
policies approved by the SFC;
2.
determine the basis on which General
Budget estimates are prepared;
3.
propose the Government Public
Expenditure ceiling for the upcoming Financial Years; and
4.
determine the standards and basis for
determining the financial allocations of Government Entities.
Before the end of May of each
Financial Year, the SFC will issue a circular to all Government Entities. This
circular will determine the Government Public Expenditure ceiling, and the
rules, instructions, procedures, and deadlines that Government Entities must abide
by when preparing their annual budgets.
Each
Government Entity will form a committee responsible for preparing its draft
annual budget. When preparing this draft budget, the committee must:
1. comply with the rules of preparing the
General Budget stipulated in this Law and the resolutions, circulars,
instructions, and manuals issued in pursuance hereof;
2. give priority to the strategic
programmes and initiatives that are in line with the approved strategic plan of
the Emirate;
3. abide by the Public Expenditure
ceiling adopted by the Government;
4. take into account the actual outcomes
of the implementation of previous budgets;
5. ensure accuracy of Public Revenue and
Public Expenditure estimates and avoid overestimation;
6. ensure that Public Funds are used
efficiently and effectively by adopting indicators for measuring the outcomes
of planned programmes;
7. take into account the conditions and
variables that may affect the estimation by a Government Entity of its Public
Revenue and Public Expenditure;
8. ensure that Public Revenue and Public
Expenditure estimates are in line with the functions of the Government Entity;
9. ensure that Public Revenue and Public
Expenditure estimates are consistent with the approved plans, programmes, and
initiatives of the Government Entity for the relevant Financial Year;
10. take into account the stock available
in the stores, including machinery, equipment, tools, and similar items; and
11.
comply
with any other rules and standards determined by
the SFC or the DOF.
Where a Government Entity delays in
submitting its draft annual budget beyond the deadlines prescribed by the SFC,
the DOF will estimate Public Revenue and Public Expenditure for that Government
Entity. This estimation must take into account the outcomes of the outgoing annual
budget for that entity, and any other considerations the DOF deems appropriate.
A Government Entity must include in
its draft annual budget the cost of the projects it intends to implement over a
period that extends beyond one (1) Financial Year. This draft annual budget
must include:
1. the total cost of each new project to
be commenced in the upcoming Financial Year, and the financial allocations for
the portion of the project expected to be completed during that Financial Year;
and
2.
the
total cost of each project which is commenced in previous Financial Years and
whose implementation is to continue in the upcoming Financial Year, the actual
Public Expenditure for the portion of the project completed by the end of the
previous Financial Year, and the estimated total cost to be paid during the Financial Year of the draft General Budget.
a.
A Government Entity may not enter into
Contracts or financial obligations with any other entity to implement any
project which is not listed in the General Budget law without first obtaining
the written approval of the DOF.
b.
A Government Entity must notify the
DOF of all its financial obligations payable during the Financial Year covered
by the General Budget or subsequent Financial Years.
A
Government Entity must attach to its draft annual budget a detailed and
accurate study describing the basis and grounds on which the draft annual
budget estimates are made. The Government Entity must also attach a comparative
study in which the financial allocations of the outgoing Financial Year,
including the actual revenue, expenditure, and actual estimates up to the end
of that Financial Year, are compared to the actual Public Revenue and Public
Expenditure for the previous Financial Year. All data and documents requested
by the DOF must also be attached.
a.
The General Budget items will be
classified as follows:
1.
Administrative
Classification
Public
Expenditure and Public Revenue for each Government Entity are stated separately.
2.
Economic
Classification
Public
Expenditure and Public Revenue are classified according to the type of revenue
and type of expenditure, so that each type of revenue or expenditure is stated in
a separate chapter that is divided into specific subcategories and items.
3.
Functional
Classification
Public
Expenditure and Public Revenue are classified according to the main Government
objectives to be implemented through certain programmes.
b.
The annual budget of a Government
Entity will be classified according to the economic classification referred to in
paragraph (a)(2) of this Article.
Upon approval of the SFC, the DOF must
allocate in the General Budget an estimated amount as a “Special Reserve”
to be used to meet unforeseen or contingent needs, or the needs of strategic
initiatives not included in the General Budget. Disbursement from the Special
Reserve account will be made in accordance with the relevant rules and powers
determined by the SFC.
a.
The DOF will prepare the draft General
Budget for every Financial Year after reviewing and discussing the draft annual
budgets submitted to it by Government Entities.
b. When preparing the draft General
Budget, consideration must be given to the actual expenditure of Government
Entities during past years, the changes to the future plans of these entities,
number of their employees, projects that they will implement over the upcoming Financial
Years, the economic indicators of the Emirate, and any other relevant factors
determined by the Ruler, the Executive Council, or the SFC.
c.
The
DOF must, within the deadline prescribed in the circular referred to in Article
(15) of this Law, submit the draft General
Budget to the SFC for opinion and approval.
Once it approves the draft General
Budget, the SFC must submit it to the Chairman of the Executive Council or his
authorised representative for approval.
a.
The draft General Budget will be
approved before the end of December of each year pursuant to a law.
b.
Upon issuance of the General Budget
law, the DOF will:
1.
announce the General Budget and explain
the main features of the fiscal policy of the Government which are reflected by
this budget;
2.
notify Government Entities of their
respective allocations in the General Budget for implementation purposes; and
3.
issue the circulars, instructions, and
approvals with which Government Entities must comply, as required for the implementation
of the General Budget.
Where the General Budget law is not
issued before commencement of the Financial Year, the DOF must issue a circular
to Government Entities requesting them to abide by the financial allocations
included in the General Budget for the previous Financial Year at the rate of
one twelfth (1/12) of these allocations per month and in accordance with the
relevant rules determined by the SFC, until the General Budget law of the
current Financial Year is issued. Public Revenue collected and Public
Expenditure covered during this period must be accounted for in the relevant
accounts of the new General Budget upon its approval.
The General Budget will be funded from
the Public Revenue. In case of General Budget deficit, the DOF will propose the
appropriate solutions to fund this deficit, and will submit these to the SFC
for approval.
The
DOF will, in accordance with a timeline covering the whole Financial Year,
provide financial liquidity to a Government Entity within the expenditure
limits determined for that entity in the General Budget to enable it to perform
its duties and implement its plans and programmes.
No
Public Expenditure may be incurred unless this is warranted by the legislation
in force, and unless it is covered by financial allocations in the approved
annual budget of the relevant Government Entity.
Public
Revenue will be collected in accordance with the legislation in force, and will
be deposited in the Public Treasury Account pursuant to the rules and
procedures prescribed by the implementing bylaw of this Law.
All
the Public Revenue collected by the Government Entities whose budgets are
included in the General Budget will be paid into the Public Treasury Account.
These entities may not retain any portion of their revenue, spend it to fund their
activities or investments, use it in any other way, or make any set-off between their
revenues and their expenditures.
The
implementing bylaw of this Law will determine the competent authority
responsible for implementing the annual budgets of Government Entities; the
table of financial approval authorities of Heads of Government Entities; and
the rules of delegating these authorities.
An
internal financial audit unit will be established within each Government
Entity, and will directly report to the Head of the Government Entity, or to
its board of directors, as the case may be. This unit will be responsible for
ensuring the proper and correct implementation of the approved annual budget of
the Government Entity; auditing its financial transactions; and ensuring proper
management and protection of Public Funds, in accordance with the legislation
in force, and with the relevant financial and accounting rules approved by the
DOF. It will also be responsible for preparing the required reports and
submitting the same to the authority to which it reports.
The
DOF will follow up the implementation of the General Budget to ensure
consistency with the strategic plan of the Emirate; with the financial policy
of the Government; with the applicable legislation; and with the main
objectives of Government Entities. For this purpose, it may have access to the
original instruments, records, and supporting documents of financial
transactions, and may require any data, information, or reports whose review is
deemed important by the DOF. Subject to liability, the employees and Heads of
Government Entities must take all necessary actions to meet the requirements of
the DOF and must cooperate with DOF employees to enable them to perform the
duties assigned to them under this Law and the resolutions, circulars,
instructions, and manuals issued in pursuance hereof.
a.
The Director General may, upon the
approval of the SFC, directly withdraw from the special reserve referred to in
Article (22) of this Law to cover Contingent Expenditure. The Director General
must submit to the SFC periodic reports detailing the actual Contingent
Expenditure spent. The implementing bylaw of this Law will prescribe the rules
and procedures for spending Contingent Expenditure.
b.
A Government Entity may not request
additional or new appropriations unless this is mandated by compelling reasons.
This entity must account to the DOF for such reasons to consider them;
determine their validity; and present its relevant recommendations to the SFC
for approval before submission of the same to the Ruler for final approval.
c.
A Government Entity may not, in the course
of implementing the General Budget, use any additional appropriations
authorised by the competent authority for other than the purpose for which they
are allocated.
d.
Additional appropriations will be included
in the General Budget pursuant to a law supplementing the General Budget law.
a.
Financial
appropriations within a Government Entity’s annual budget will be cancelled if
not used within their respective Financial Year.
b.
All budget savings realised in any Financial Year by a
Government Entity as a result of implementing its annual budget will be
returned to the Public Treasury Account.
c.
A Government Entity may not use, or cause to be used, any
cancelled financial appropriations or any budget savings realised in any
Financial Year.
Financial transactions among Government Entities will be settled
in accordance with the requirements, rules, and procedures prescribed by the
implementing bylaw of this Law.
a.
Financial appropriations may, upon the
recommendation of the Director General, be reallocated from a Government Entity to
another pursuant to a resolution of the Chairman of the Executive Council or
his authorised representative.
b.
Financial appropriations may be
reallocated from one chapter to another within the approved annual budget of a
Government Entity pursuant to a resolution of the Director General.
c.
Financial appropriations may be
reallocated from one item to another within the same chapter within the
approved annual budget of a Government Entity pursuant to a resolution of the
Head of this Government Entity.
If,
in the course of implementing the General Budget for any Financial Year, it becomes
evident that there is a reduction in the collected Public Revenue compared to the
estimated Public Revenue for the same year, the Director General may propose
the measures and actions required to address this reduction. These measures and
actions must be approved by the SFC and the Chairman of the Executive Council
or his authorised representative.
General Budget
surplus or deficit will be dealt with in accordance with the rules and
procedures prescribed by the implementing bylaw of this Law.
The DOF will, pursuant to the relevant
resolutions issued by the Director General, prescribe the types and forms of
the records, documents, template, and manuals required for financial
transactions, and will also prescribe the disbursement and collection requirements,
and conditions and other accounting procedures that must be adopted.
When preparing and organising disbursement and
collection documents, Government Entities must comply with the procedures and
deadlines prescribed by the implementing bylaw of this Law.
a.
Government
Entities must submit to the DOF monthly financial reports on Public Revenue and
Public Expenditure no later than the end of the month following the reporting
month, and must also submit quarterly financial reports according to the same classification
adopted in the General Budget. These reports must be approved by the respective
Head of Government Entity or his authorised representative; by the head of internal
audit; and by the head of accounting or similar officials.
b.
The DOF
will prepare, and submit to the SFC and to the Executive Council, quarterly
reports on the performance and implementation of the General Budget; on the
financial performance of the Government; and on any other matters that the
Director General deems relevant.
a. The Director General will, before the
end of every Financial Year, issue a circular concerning closing the Final
Accounts. The circular will specify the rules, procedures, and deadlines that Government
Entities must abide by in respect of closing their accounts prior to preparing
the draft Consolidated Final Accounts and the final sub-accounts of Government
Entities.
b. A Government Entity will prepare its
draft Final Accounts for the Financial Year then ended and submit the same to
the DOF, accompanied by the reports prescribed by the implementing bylaw of
this Law. The Government Entity must comply with the rules, procedures, and
deadlines prescribed by the circular mentioned in paragraph (a) of this
Article.
Consolidated Final
Accounts will be prepared and approved within the deadlines prescribed by the
DOF and in accordance with the following procedures:
1. the DOF will prepare the draft Consolidated
Final Accounts based on the final sub-accounts submitted by Government
Entities;
2. the DOF will send the draft Consolidated
Final Accounts to the Financial Audit Department for review and providing comments
in a report detailing the outcomes of this review;
3. the DOF will finalise the draft Consolidated
Final Accounts after making the required settlements and adjustments based on
the report of the Financial Audit Department, and will present to the SFC a
detailed report on the draft Consolidated Final Accounts; and
4. the DOF will, upon approval by the SFC
of the draft Consolidated Final Accounts, submit a report on the draft Consolidated
Final Accounts to the Executive Council for comments prior to submitting it to the
Ruler for final approval.
a.
Financial
support will be granted to any entity pursuant to a resolution of the SFC upon the
recommendation of the DOF.
b.
The DOF
will prepare an annual Supplementary Budget for the entities to be granted annual
financial support, such as societies, sports clubs, and other entities. The
Supplementary Budget must include the names of these entities; the amount of
support allocated for each of them; the activities funded by this support; and
the term of support.
c.
The entities
that receive financial support from the Government must:
1.
submit to
the DOF financial reports in the form and within the deadlines prescribed by the
implementing bylaw of this Law; and
2.
provide
the DOF, within the deadlines prescribed by it, with the financial statements related
to its estimated budget and final accounts, and any other data required by the
DOF.
a.
A
Government Entity is considered to have Financial Autonomy and an Independent
Budget if this is mandated by its establishing legislation and nature of work.
This entity must:
1.
prepare
its Independent Budget annually in accordance with the relevant procedures it
adopts, and submit the same to the SFC for discussion and approval. Before
granting such approval, the SFC will present the Independent Budget to the DOF for
opinion;
2.
prepare
all data related to its approved budget and Final Accounts at the beginning and
at the end of its Financial Year, and provide these to the DOF;
3.
comply
with the provisions regulating Public Debt and borrowing; approval of fees and
taxes; financial audit; and submission of financial statements and reports to concerned
entities, and with any other applicable financial legislation;
4.
prepare
the Final Accounts of the Financial Year then ended, or prepare, on commercial
basis, a balance sheet if its activities so require, and submit the Final
Accounts or the balance sheet to the DOF within the deadlines prescribed by the
DOF; and
5.
transfer
its Public Revenue surplus and its annual profits to the Public Treasury
Account.
b.
No Government
Entity having Financial Autonomy pursuant to paragraph (a) of this Article may
be granted General Budget allocations or appropriations except as loans. This
will not apply to the entities to which the SFC decides, upon the
recommendation of the DOF, to grant such allocations or appropriations as
Government financial support. Such financial support will be granted in accordance with the
relevant rules, requirements, and time frames prescribed by the SFC.
a. Government Entities that have
Independent Budgets and entities which are covered by the Supplementary Budget
will have their own accounting systems if so mandated by the nature of their
activities.
b. The accounting systems mentioned in
paragraph (a) of this Article must include the accounting records and documents
required for the financial transactions conducted by such entities and the requirements
and conditions adopted for disbursement and collection.
c. Where the establishing legislation,
statutes, or financial bylaws of Government Entities are silent, the accounting
systems approved under this Law and the resolutions issued in pursuance hereof
will apply to the Government Entities that have Independent Budgets and to the entities
which are covered by the Supplementary Budget.
The
Director General will present to the SFC the Final Accounts of the entities
that are covered by the Supplementary Budget, and of the Government Entities
that have Independent Budgets, accompanied by a report on the financial
position of these entities for approval, prior to submitting the same to the
Ruler for final approval.
The
ICD or any other Government Entity determined by the SFC, must submit estimates
of revenue, expenditure, and cash flow statements of companies wholly owned by
the Government or by that entity, and statements of the financial position of
the companies in which the Government or that entity holds shares. These
statements will be attached by the DOF to the draft General Budget presented
for approval. The statements must be submitted by the entities in accordance
with the relevant standards and deadlines prescribed by the DOF and with the
nature of the business of these companies.
The ICD and any other
Government Entity determined by the SFC must submit quarterly reports on the
financial statements of companies wholly owned by the Government in accordance with
the standards prescribed by the DOF. These reports must include the following
information:
1.
the funds
received by the ICD or the Government Entity from companies wholly owned by the
Government;
2.
the expenditure
and revenue of companies wholly owned by the Government; and
3.
the loans
obtained by companies wholly owned by the Government, their financing sources,
and the requirements and cost of these loans.
The net profits of
Government Companies are deemed part of Public Revenue. The SFC may, upon the
recommendation of the DOF, authorise the ICD or any Government Entity determined
by the SFC to reinvest these profits before transferring them to the Public
Treasury Account.
a. In respect of Public Debt, the SFC
will have the duties and functions to:
1. approve the ceiling of the domestic and external Public Debt;
2. approve financing proposals by the local and foreign financing institutions;
3. approve loans on behalf of the Government; and
4. issue authorisations to allow Government Entities, and companies that are wholly owned by the Government or by Government Entities, to directly obtain loans.
b. Loans that the SFC authorises
Government Entities having Independent Budgets, and companies wholly owned by
the Government or by Government Entities, to obtain will not be guaranteed by
the Government.
In respect of Public Debt management, the DOF will
have the duties and functions to:
1.
set the
general framework for Public Debt policies and strategies;
2.
determine
the long-term and short-term objectives of Public Debt management;
3.
issue
circulars related to rationalising borrowing policies and to the optimal Government
debt ceiling;
4.
present
recommendations to the SFC on the Government projects to be financed by loans
and on the financing proposals submitted by local and foreign financial
institutions;
5.
consider,
assess, and determine the appropriate financing instruments and options;
6.
consider
and propose the borrowing mechanisms and the process for providing necessary guarantees; and consider and
propose the repayment mechanisms and future borrowing plans;
7.
ensure consistency
of Public Debt policies of the Emirate with the United Arab Emirates monetary
policy;
8.
coordinate
with all internal and external entities concerned with financing and credit;
and
9.
create a
transparent and reliable Public Debt database that must include, without
limitation:
a. resolutions issuing all Debt Instruments;
b. loan agreements;
c. debt rescheduling agreements; and
d. early repayment of debts resolutions.
a.
Government
borrowing will be exclusively for:
1. funding the General Budget deficit;
2. financing the projects included in the General Budget;
3. restructuring domestic and external debts; and
4. any other purposes approved by the Ruler.
b.
The
Government will be liable to provide guarantees only for the loans whose
purposes are set out in paragraph (a) of this Article.
Debt securities
may be listed for trading in domestic and foreign markets. A Government Entity
that requests borrowing must:
1.
submit a borrowing
request to the DOF supported by all the statements on its existing and planned
debts. The DOF will consider this request and submit the relevant
recommendations to the SFC to make the decision it deems appropriate in respect
of authorising the Government Entity to obtain a loan, and of the guarantees
that may be provided to secure the loan; and
2.
give
access to any person authorised by the SFC to review the financial and
accounting records and any other documents related to the loan and its
purposes.
Without prejudice to any case-specific provisions stipulated by the
legislation in force in the Emirate, Public Funds are deemed due and
immediately payable first-lien debts that have priority over other debts with
the exception of judicial fees, and will be collected by the DOF; the
Government Entities responsible for collecting these funds; and the entities
authorised to collect them in accordance with the procedures and rules
prescribed by the implementing bylaw of this Law and the resolutions issued by
the DOF in this respect.
Obligors and debtors liable for settlement of
Public Funds must, either in person or through their legal representatives, settle
all amounts owed by them on their due dates, adopting the methods, following
the procedures, and using the payment options approved in this respect by the
entities responsible for Public Funds collection. Being a creditor to the
Government or to a Government Entity may not exempt an obligor or
debtor from settlement of the Public Funds owed by him on their due dates
without delay.
The entities responsible for Public Fund
collection may directly deduct any amounts from an obligor’s or debtor’s property
in their possession, to the extent required to settle the Public Funds owed by
that obligor or debtor.
a.
Where an obligor or debtor refrains
from settlement of the Public Funds legally due from him, an entity responsible
for Public Funds collection must take the following procedures against him in
this order:
1.
sending a notice
requesting settlement within thirty (30) days;
2.
upon expiry of the notice period, confiscating the
obligor’s or debtor’s property in its possession; and, subject to obtaining a relevant
summary court judgment, selling such property at a public auction;
3.
applying to the competent court to impose
precautionary attachment on the legally attachable property of the obligor or
debtor, where there are substantial grounds for attachment or to prevent the
obligor or debtor from smuggling or concealing his property including through assignment
of the same to third parties; and
4.
taking recourse to court to compel the obligor or
debtor to settle the Public Funds he owes.
b.
Public Funds collection proceedings will be stayed in
any of the following cases:
1.
where the debtor’s insolvency is established by a
definitive court judgment, and it becomes evident that proceeding with the
execution on the debtor’s property will cause the debtor to sustain substantial
harm;
2.
where it is established to the entity responsible for
Public Fund collection that there is a general or personal force majeure event which
affects the obligor or debtor and prevents proceeding with the execution on his
property to collect the debt in full. The debt owed by the obligor or debtor may
be paid in instalments, pursuant to the provisions of the implementing bylaw of
this Law, over the current year or within a period not exceeding five (5)
years, subject to providing the relevant appropriate guarantees; or
3.
where a resolution on exemption from settlement of Public
Funds is issued by the Ruler or the SFC.
A
person who refuses to surrender the property in his possession of an obligor or
debtor who owes Public Funds will, upon receiving a property surrender notice
from the competent judicial authority, be deemed personally liable for payment
out of his own property. This person’s liability will be limited to the
obligor’s or debtor’s property proved to be in his possession, and the
confiscation procedures will be taken against him in accordance with the
legally established principles.
a.
No ownership rights to Public Funds may be acquired by
way of prescription, occupancy, or any form of possession.
b.
Judicial claims involving Public Funds, owed to the
Government or Government Entities by obligors or debtors, may not be
time-barred.
The
Chairman of the Executive Council and First Deputy Chairman of the Executive
Council will have the power to authorise Government Entities, upon the
recommendation of the DOF, to open bank accounts with the financial
institutions operating in the Emirate.
Government
Entities may not open any bank accounts with
financial institutions within or outside of the Emirate without first obtaining
the authorisation mentioned in Article (63) of this Law.
Fees
and fines will be approved, upon request by a Government Entity and the
recommendation of the DOF, pursuant to a resolution issued by the Chairman of
the Executive Council.
Heads
of Government Entities may delegate to employees any of their powers under this
Law and the resolutions issued in pursuance hereof. For a delegation of powers to
be valid:
1. the delegated
powers must be within the powers of the delegating person;
2. the delegation must
be in writing;
3. the delegation must be
granted to the person in his official rather than personal capacity;
4. the delegation must be
time-limited;
5. the delegation must not
grant all the powers vested in the delegating person;
6. the delegation must not
adversely affect control on Public Funds or compromise the internal control
rules. For example, a delegation must not authorise an
employee to perform two roles in the same financial transaction; one is falling
within his original job duties, and the other is granted by delegation; and
7. a copy of the delegation
decision must be served on the DOF, the Financial Audit Department, and the
concerned entities.
a.
For any
Financial Year, Government Entities
must keep, for at least ten (10) years from the date of approving the Final
Accounts of that Financial Year, all the financial documents and records
prescribed by the implementing bylaw of this Law.
b.
After the
lapse of the period prescribed in paragraph (a) of this Article, the financial
documents and records will be destroyed in accordance with the rules and
procedures prescribed by a resolution of the Director General. Copies of these
documents must be kept by the respective Government Entities in their approved
archiving systems.
Without
prejudice to any legislation prescribing a shorter time limit, a claim filed
against a Government Entity to recover any dues or debts owed to third parties
may not be heard after the lapse of five (5) years from the end of the
Financial Year in which these debts or dues become mature. This limitation
period will be interrupted where a claim to recover the debts or dues is filed,
within this period, with a judicial authority by an interested party. The
limitation period will commence again after the grounds for interruption cease
to exist.
a. Government Entities whose budgets are included
by the General Budget must transfer to the DOF all the amounts paid to them by
their clients as refundable security amounts or other deposits. These amounts
will be transferred in accordance with the relevant instructions issued by the
DOF.
b. A Government Entity will maintain the
necessary detailed records of the amounts received in trust by it and
transferred to the DOF. The records will detail the security or deposit amount;
the name of the person making it; the reasons for depositing the amount; and
the date and requirements of refunding the same.
c. On the due date of refund of the
amount of the deposit or security, the Government Entity will request the DOF,
by a letter other than the letter stating the Government Entity’s periodic
needs from the General Budget, to refund the amount.
d. The DOF will set the instructions and
prescribe the templates required for the accounting and administrative processes
related to refundable security amounts and deposits, and Government Entities
must comply with these instructions and templates.
a. Government support will be granted
to any entity by a resolution of the Ruler or his authorised representative.
b.
Government Entities may
provide grants, subsidies, contributions, donations, or gifts to any other
entity only within the amounts allocated for this purpose in its annual budget.
This may not include sponsoring any activities that fall within the
jurisdiction of any other Government Entity.
c. Neither
Government Entities, nor any Heads of Government Entities, nor their employees
may accept any donations or aid of any value without first obtaining the
approval of the competent authority. These donations and support will be
disposed of in accordance with the rules prescribed by the implementing bylaw
of this Law.
The
DOF will uphold the principles of transparency in implementing this Law and the
resolutions issued in pursuance hereof; managing Public Funds; and implementing
the fiscal policy of the Government. This will be achieved by:
1.
announcing
the objective of the Government fiscal policy;
2.
publishing
the key indicators of the approved General Budget; and
3.
disclosing
changes in the recognised accounting standards and policies.
The
Chairman of the Executive Council will issue the implementing bylaw of this
Law.
The
financial bylaws, resolutions, and circulars that are in force on the effective
date of this Law will continue in force to the extent that they do not
contradict the provisions of this Law, until new superseding bylaws,
resolutions, and circulars are issued.
a. The following legislation is hereby
repealed:
1. Law No. (7) of 1995 Concerning the Financial Regulations of Government Departments in the Emirate of Dubai;
2. Law No. (35) of 2009 Concerning Management of the Public Funds of the Government of Dubai and its amendments; and
3. Decree No. (21) of 2011 Authorising Government Entities in the Emirate of Dubai to Open Bank Accounts.
b. Any provision in any other legislation
will also be repealed to the extent that it contradicts the provisions of this
Law.
This
Law will be published in the Official Gazette and will come into force on the
first day of the month following its publication.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 7 March 2016
Corresponding to 27 Jumada al-Ula 1437 A.H.
©2016 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict the Arabic text will prevail.