Executive Council Resolution No. (5) of 2021
Issuing the Implementing Bylaw of Law No. (1)
of 2016
Concerning the Financial Regulations of the
Government of Dubai[1]
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We, Hamdan bin Mohammed bin Rashid Al Maktoum,
Crown Prince of Dubai, Chairman of the Executive Council,
After perusal
of:
Law No. (5) of
1995 Establishing the Department of Finance;
Law No. (11)
of 2006 Establishing the Investment Corporation of Dubai and its amendments;
Law No. (32)
of 2008 Establishing the Government of Dubai Legal Affairs Department;
Law No. (1) of
2016 Concerning the Financial Regulations of the Government of Dubai;
Law No. (4) of
2018 Establishing the Financial Audit Authority;
Law No. (1) of
2020 Concerning the Smart Dubai Department;
Law No. (12)
of 2020 Concerning Contracts and Warehouse Management in the Emirate of Dubai;
Decree No.
(24) of 2007 Forming the Supreme Fiscal Committee in the Emirate of Dubai and
its amendments; and
Executive
Council Resolution No. (5) of 2019 Concerning Payment by Instalments of Fees
and Fines Payable to Government Entities in the Emirate of Dubai,
Do hereby issue this Resolution.
The following words and expressions, wherever mentioned in this
Resolution, will have the meaning indicated opposite each of them unless the
context implies otherwise:
|
Emirate: |
The Emirate 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. |
|
SDD: |
The Smart Dubai Department. |
|
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. |
|
Head of Government Entity: |
The director general, executive director/ chief executive officer, or secretary general of a Government Entity; or a person holding a similar position. |
|
Law: |
Law No. (1) of 2016 Concerning the Financial Regulations of the
Government of Dubai. |
|
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 the Government Entities
whose budgets are included in the General Budget. |
|
Financial Statements: |
The actual financial data for the Financial Year then ended
prepared by a Government Entity in accordance with the standards and
principles issued by the DOF 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, proceeds
from 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 respond to an unforeseen
emergency in respect of which action may not be deferred as it affects the
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, the amounts required to meet Public Expenditures are disbursed for the purposes of implementation of the General Budget. The account also includes all amounts, from whatever
source, managed by the DOF. |
|
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 to the Government by others; 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. |
|
e-Payment Method: |
Any digital payment method adopted by the DOF through which
Public Funds are collected or financial obligations are paid. |
|
Financial Establishment: |
An establishment that provides smart financial systems,
applications, and solutions; and provides smart Public Revenue collection
services using these systems, applications, and solutions. |
a.
The DOF will adopt smart financial systems, applications, and
solutions for the management and planning of Government financial resources, including without
limitation:
1.
management
of receivables,
payables, fixed and cash assets, general ledger, and financial transactions
among Government Entities;
2.
management
of Government
Purchases, Contracts, and warehouses;
3.
management of salaries and wages;
4.
financial management of projects;
5.
financial planning and budgeting;
6.
Government service costing;
7.
various financial systems, including the consolidation, presentation, disclosure, and adjustment of financial data; and
8.
tax management.
b.
Government Entities must
use the smart
financial systems, applications, and solutions adopted by the DOF in accordance
with the mechanisms, powers, and procedures prescribed for each
system or application.
c.
All financial transactions conducted through the smart financial
systems, applications, and solutions adopted by the DOF will be deemed legally effective, provided
that they are compliant
with the legislation in force.
d.
Notwithstanding the provisions of paragraph (a) of this Article, a
Government Entity may adopt its own smart financial systems, applications, and
solutions subject to the following conditions:
1.
the smart financial systems, applications, and solutions must be
compliant with the Law, the resolutions issued in pursuance thereof, and the
circulars issued by the DOF;
2.
the smart financial systems, applications, and solutions must be
compatible with, and linked
to, the systems,
applications, and solutions adopted by the DOF; and
3.
the approval of the DOF and the SDD must be obtained prior to
developing the smart financial systems, applications,
and solutions.
Public Revenue will be collected by the Government Entities whose annual budgets are included in the
General Budget in accordance with the legislation in force, and will be
deposited in the Public Treasury Account according to the following rules:
I. Public Revenue Collected through Direct
Payment
1.
A Government Entity must deposit all the Public Revenue it
collects, pursuant to the rules and procedures stipulated in this Resolution,
into the Public Treasury Account on a daily basis or within the deadlines
prescribed by the DOF.
The Government Entity must submit the supporting documents evidencing the
collection of this revenue.
2.
A Government Entity must record all the Public Revenue payable to
it in its financial records; and must collect this revenue and deposit it into the Public Treasury Account in accordance with the accounting
standards and policies, and
using the smart
financial systems, adopted by the DOF.
3.
A Government Entity must deposit all security
amounts, guarantees, and
other amounts it collects, other than Public Revenue, into the special accounts
designated by the DOF for these amounts.
4.
A Government Entity must separate the duties of conducting financial transactions from the duties of receiving Public Revenue and entering it into financial records, and must separate both sets of duties from the duties of auditing Public Revenue, in accordance with the standards adopted
in this respect.
5.
A Government Entity may, upon coordination with the DOF, authorise any other Government Entity to collect
the Public Revenue payable to it. In this case, the Government Entity
authorised to collect the Public Revenue on behalf of another must deposit the
collected revenue into the Public Treasury Account in the name of the
Government Entity for which that revenue is collected.
II. Public Revenue Collected and Deposited through
Smart Financial Systems, Applications, and Solutions
1.
In
case of using the smart
financial systems, applications, and solutions of the DOF, the Public Revenue must be collected and deposited
in accordance with the rules,
procedures, and time frames prescribed in the agreement concluded by the DOF,
the SDD, and the concerned Financial Establishment.
2.
In case of using the smart financial systems, applications, and
solutions of the Government Entity, the Public Revenue must be collected and
deposited in accordance with the rules, procedures, and time frames prescribed in the agreement
concluded by the Government Entity and the concerned
Financial Establishment, subject to obtaining the approval of the DOF and the
SDD prior to concluding that agreement.
Public Revenue will be collected and deposited into the Public
Treasury Account in accordance with the following procedures:
1.
a receipt will be issued upon collecting any Public Revenue
regardless of the amount received and method of payment;
2.
the Public Revenue will be collected by the concerned employees of the Government Entity;
3.
the Government Entity will insure the Public Revenue and the
employees assigned to collect, transport, and deposit the revenue into the designated bank accounts, in accordance with the
standards and rules prescribed by the Director General in this respect;
4.
the claims received from the Financial
Establishment assigned to collect Public Revenue through smart financial
systems, applications, and solutions will be examined and will be subject to
the necessary matching and reconciliation to ensure the validity of such
claims; and
5.
compliance by the Financial Establishment with the collection and
deposit procedures stipulated in the agreement concluded with it will be
verified.
A Government Entity may, upon obtaining the prior approval of the
DOF, outsource the collection or transport of its
Public Revenue to a specialised company under a relevant agreement. This agreement must contain all terms required for protecting and preserving the rights of the Government Entity, including the insurance of
its funds, and the methods and procedures for collection and deposit thereof.
The Director General will exercise all the duties and powers
required for implementing the General Budget. The Director General will, in
particular:
1.
supervise the conduct of studies and research on the fiscal policy
related to the implementation of the General
Budget, and submit the necessary recommendations to the SFC;
2.
propose the measures and procedures required for addressing any
situations or circumstances that may affect the implementation of the General
Budget. These measures and procedures must be approved by the SFC and the Chairman of the Executive Council or
his authorised representative;
3.
approve the ground
rules related to implementation
of the General Budget, Independent Budgets, and Supplementary Budgets and the relevant Financial Statements;
4.
approve the conditions of the loans granted or obtained by the
Government; and of the guarantees of such loans;
5.
take the necessary action to ensure that Government Entities maintain the financial forms and records
required for implementation of the General Budget and update them on a regular basis and within the prescribed
deadlines, in accordance with the procedures and principles adopted in this
respect; and
6.
submit to the SFC,
within the legally prescribed deadlines, reports on the implementation of the General
Budget.
a.
A Head of Government Entity will exercise all the duties and powers
required for the implementation of the General Budget. The Head of Government
Entity may, in particular:
1.
supervise the implementation of the approved annual budget of the
Government Entity to ensure the preservation and efficient utilisation of
Public Funds in accordance with the legislation in force and the regulations,
procedures, and principles adopted in this respect;
2.
approve the reallocation of financial appropriations from one item to another within the same chapter in the approved
annual budget of the Government Entity in accordance with the legislation in
force and the financial ground
rules adopted by the DOF;
3.
request additional financial appropriations in accordance with the
rules and regulations adopted by the DOF in this respect;
4.
approve any variations to the costs of projects in accordance with
the rules and regulations adopted by the DOF in this respect and with the
approved financial appropriations in the annual budget of the Government Entity;
5.
approve the financial documents and Contracts of the Government
Entity, in accordance with the legislation in force and the standards adopted in this respect; and
6.
take the necessary corrective action in respect of any financial
violations, and notify the concerned entities of the same.
b.
In implementing the annual budget as
stipulated in paragraph (a) of this Article, the Head of Government Entity must comply with the relevant circulars and ground rules issued by the DOF.
A Head of Government Entity will approve the table of financial
approval powers of employees, and will provide the DOF with a
copy of that table. In approving the table, the rules adopted under the
resolutions and circulars issued by the DOF in this respect must be observed.
Subject to the approval of the Head of Government Entity, an employee vested with financial approval powers pursuant to the table of financial approval powers
referred to in Article (8) of this Resolution may delegate some of his powers
to any of his subordinates. The delegation of powers will be subject to the
following rules:
1.
the delegated financial approval powers must be within the powers
of the delegator;
2.
the delegated financial approval powers must be relevant to the
employment duties of the delegatee;
3.
delegation must be in writing;
4.
delegation must be time-limited;
5.
the delegatee must exercise his powers within the limits prescribed by the delegation decision and must not
exceed these limits;
6.
in disbursing any amounts, the delegatee must comply with the limits of the approved
financial
appropriations in the annual budget of the Government Entity;
7.
the financial appropriations allocated in the annual budget of the
Government Entity must be used as per the disbursement plan endorsed by the
DOF;
8.
the delegatee must not delegate to others the financial approval
powers delegated to him;
9.
the circulars and ground
rules issued by the DOF
in respect of approving Public Expenditures must be observed;
10.
the delegation of financial approval powers may not exempt the delegator from his responsibility for any actions and decisions taken within
the scope of the
delegation; and
11.
the concerned organisational units of the Government Entity and
other concerned entities must be notified of the delegation decision.
The Director General may, upon obtaining the approval of the SFC,
directly withdraw, and make disbursements, from the Special Reserve in the following
cases and subject to the following rules:
1.
Disbursement
may be made to respond to an unforeseen emergency that was unpredictable at the time of
preparing the General Budget, and that requires urgent action that may not be
deferred.
2.
Disbursement
may be made to fund an essential strategic initiative that requires funding from the Special
Reserve and that may not be postponed to a subsequent Financial Year.
3.
Funding the emergency response or the strategic
initiative from the approved annual budget must be infeasible.
4.
The amount disbursed from the Special
Reserve must be commensurate with the emergency response or strategic
initiative.
5.
Where the Contingent Expenditure relates to more than one Government Entity, coordination with the concerned
entities must be undertaken as necessary to determine the required
funding from the Special Reserve.
6.
A study stating the grounds for requesting
funding from the Special Reserve, the purpose of this funding, the disbursement channels, the cash flow needed to cover the Contingent Expenditure, and any other details
required by the DOF must be prepared.
In requesting the disbursement of any amounts from the Special Reserve, the following procedures will be followed:
1.
A Government Entity will submit an application for disbursement
from the Special Reserve on the form and using the systems adopted by the DOF. The application must include the supporting grounds, a
description of the emergency or strategic initiative, the requested amount, the
cash flow plan, the financial impacts on the annual budget of the Government
Entity, and any other details required by the DOF.
2.
The DOF will consider the application for disbursement from the
Special Reserve and make the appropriate decision.
3.
The DOF will disburse the amount from the
Special Reserve pursuant to a resolution of the Director General if the
requested amount is within his financial approval powers, or pursuant to a
resolution of the SFC if the requested amount is beyond the financial approval
powers of the Director General.
4.
The DOF will prepare an annual report on the amounts disbursed from
the Special Reserve and submit the same to the SFC.
A
financial transaction between Government Entities will be settled subject to the following
conditions:
1.
Both Government Entities must be subject to the General Budget.
2.
The Government Entity receiving services from the other Government Entity must accept the services provided and the relevant charges.
3.
The financial transaction between both Government Entities must not
result in any financial dues that
are owed to a third party or that
are to be collected by a third party.
4.
The financial transaction must not be excluded by the DOF from the application of the procedures for settlement of
transactions among Government
Entities.
Government Entities must observe the following rules and
procedures when conducting any financial transactions with other Government Entities:
1.
Government Entities must not disburse any cash amounts,
issue any cheques, or make any bank transfers to other Government Entities on account of conducted financial
transactions. The Government Entity receiving products or
services must record the
amount of transaction in its general ledger under expenditure items, and the Government Entity providing these products or services must record the amount of transaction in its general
ledger under revenue items. Alternatively, the Government Entities may enter
the transaction in records through any other accounting process prescribed by
the DOF.
2.
Where two (2) Government Entities fail to agree on the amount of the financial dues
arising from their
transactions, the Government Entity that has provided the products or services
will, within no later than fourteen (14) days from the date of disagreement,
submit to the DOF an application to settle the disagreement, accompanied by the relevant supporting
documents. The DOF decision on the disagreement will be final and binding on both Government
Entities.
3.
The Government Entity will match outstanding balances every three
(3) months with the other Government Entity.
4.
The Government Entity will settle balances at the end of each year in accordance with the
instructions of the DOF.
a.
For the purposes of this Article, a General Budget Deficit means
that payables exceed receivables, i.e. a negative balance in the General Budget. A General Budget Surplus
means that receivables exceed payables, i.e. a positive balance in the General Budget.
b.
A General Budget Surplus or General Budget Deficit will be managed
as follows:
I. In case of a General
Budget Deficit, the Director General may, upon obtaining the approval of the
SFC, take any of the following measures:
1. rationalise Public Expenditure and
increase Public Revenue;
2. issue Public Debt Instruments;
3. obtain bank loans; and/ or
4. take any other measures determined by the
SFC.
II. In case of a General
Budget Surplus, the Director General may, upon obtaining the approval of the
SFC, take any of the following measures:
1. transfer the full surplus amount or any
part thereof to the Public Treasury Account;
2. allocate the full surplus amount or any
part thereof to settle any Government liabilities;
3. reinvest the full surplus amount, or any part thereof, in coordination with the Investment Corporation
of Dubai; or
4. take any other measures determined by the
SFC.
In disbursing from its annual budget, a Government Entity must:
1. ensure optimum use of the financial
appropriations allocated for expenditure in its annual budget;
2. perform its duties and implement its work
and plans, ensuring cost-effectiveness and compliance with the prescribed
deadlines;
3. not disburse amounts from the financial appropriations allocated in its annual budget without legal grounds authorising such disbursement;
4. not incur any financial commitments towards any entity or person without ensuring
the availability of the required financial appropriations in its annual budget;
5. not disburse any payment to cover an expense unless that expense is due;
6. subject to the legislation in force, ensure that the disbursed payments do not exceed the value of the delivered supplies or provided
services, unless otherwise stipulated in the agreement concluded with the
Government Entity;
7. ensure that the payments made to cover expenses are disbursed in UAE dirhams, unless the Government Entity has obtained the DOF approval to
make them in any other
currency;
8. not pay, even temporarily, any expenses
from the Public Revenue collected by the Government Entity, from the amounts held in trust by it, from imprest amounts, or from any other amounts placed at its
disposal without first coordinating with the DOF; and comply with the relevant rules and procedures prescribed by
the DOF;
9. not transfer, pay, or release the expense amounts owed to any entity or person to another party
without:
a.
a final court judgement issued by the competent court authorising
the transfer of the full expense
amount or any part
thereof to that party;
b.
the written approval of the beneficiary authorising the release of such expense amounts to that other party; or
c.
a provision in the Contract concluded with the contractor or
supplier authorising the release of such expense amounts to that other party.
10. not make any set-off between the expenses
due to any person or entity and the amounts owed by
that person or entity without valid reasons
warranting this set-off. The set-off will be made subject to the following:
a.
The
prior approval of
the DOF to the set-off must be obtained.
b.
The person or entity must consent in writing to the set-off between the amounts due to that person or entity and the amounts owed by him or it. The person
or entity must sign a clearance in respect of the amounts settled by the Government Entity.
c.
The expenditures and revenue in respect of
which the set-off is made must be recorded under expenditure items and General Revenue items,
or any other relevant accounting item of the Government Entity.
11. Any expense amounts due to any person or entity must be withheld where that person or entity refrains from making, or stalls or delays,
the payment of any
amounts owed by him or it to any Government Entity.
12. Any expense amounts owed to any person or entity must
be paid only after
deducting any delay Fines, penalties, or other deductible amounts owed by that person or
entity to the Government
Entity pursuant to any legal document. In the event of such deduction, the Fines and penalties must be
deposited in the Public Treasury Account, while other deducted amounts must be treated as prescribed by the DOF; and
13. Government expenditure may not be broken down with a view to circumventing any provisions or
procedures related to the payment procedures prescribed by the DOF. This includes the breakdown of expenditures with a view to avoiding the authorisation of payments as per the limits prescribed under the
financial approval powers levels.
When
disbursing any amounts
payable by it, a Government Entity must:
1. obtain the supporting documents related
to the payable amounts whether in paper or electronic
format to match and review them against its own records; and keep these documents together with the relevant disbursement vouchers;
2. record the full payable amount, once it
is incurred, under the relevant appropriations item in its annual budget;
3. organise and prepare the necessary
disbursement documents as per the relevant procedures; and ensure, upon recording expenditures and
disbursing payments, that:
a.
electronic copies of all supporting documents related to the
recording and disbursement of payments, and any other
documents required by the DOF, are attached;
b.
the disbursement order or the payment is compliant with the
legislation in force and the relevant adopted standards; and
c.
the required signatures and approvals of the concerned authorised
officers, as per the financial approval powers
adopted in this respect, are obtained.
Amounts payable to suppliers and contractors will be disbursed
within no later than ninety (90) working days from the date of final delivery
of the supplies or services; or within the time frames
stipulated in the Contracts concluded with these suppliers or contractors.
a.
The DOF will supervise the payment of expenses using e-Payment Methods. For this purpose, the DOF may:
1. negotiate and contract with banking and
financial institutions to issue e-Payment Methods and determine the credit
limit for each card delivered to the employees of
Government Entities to pay expenses using the Internet as per work
requirements;
2. approve requests of the Government
Entities that are subject to the General Budget for designating e-Payment
Methods for use by these Government Entities to pay for its
Purchases using the Internet;
3. determine the cases where e-Payment
Methods may be used to pay expenses;
4. cancel e-Payment Methods where their
users fail to comply with the rules and obligations stipulated in this Article;
5. request any information from the
e-Payment Methods issuing entity or from the Government Entities authorised to
use these methods to pay their expenses; and
6. review the documents related to Government payments using e-Payment Methods
to verify the validity of the transactions and payments.
b.
An e-Payment Method must state the name of
the employee entrusted with keeping and using this method to pay expenses on behalf of the Government Entity.
c.
An e-Payment Method may not be used by any unauthorised person and
must be used only by the employee whose name is displayed on the same.
d.
No more than one e-Payment Method may be issued to an employee.
e-Payment Methods may only be issued to Employees of Government Entities.
e.
An
e-Payment Method may
not be used for:
1.
cash withdrawals;
2.
transferring any amounts from the e-Payment Method account to personal accounts;
3.
payment for any Purchases other than those of the Government
Entity;
4.
payment for any personal purchases; or
5.
payment for any Purchases that are not authorised pursuant to this
Resolution and the legislation in force in the Emirate.
f.
The amounts paid using an e-Payment Method must not exceed the
credit limit authorised for that method.
g.
Government Entities must pay the total outstanding amounts on the account of e-Payment Methods before the deadlines for settlement of the debit balance, in order to avoid incurring late payment
interest charges.
Heads of Government Entities must provide the DOF, within the deadlines it determines, with audited financial reports, which comprise the Financial Statements for the Financial Year then ended. These reports must be prepared in accordance with the International
Public Sector Accounting Standards and the accounting policies manual of the
Government adopted by the DOF.
a.
A Government Entity receiving financial support from the Government
must provide the DOF with a monthly report that includes:
1.
details of all expenditures and Revenues;
2.
financial reallocations made within the relevant month;
3.
the financial position of employees and other workers, including
any new appointments and terminations; and
4.
any other information determined by the DOF.
b.
A Government Entity receiving financial support from the Government
must provide the DOF with the monthly report referred in paragraph (a) of this
Article no later than the twentieth (20th) of the month following
the month in respect of which the report is required.
The following Public Revenues will be subject to the Public Funds
collection rules and procedures stipulated in the Law and in this Resolution:
1.
taxes, fees, and levies imposed pursuant to the legislation in
force;
2.
the charges and prices collected by Government
Entities in return for the goods and services they provide;
3.
the
administrative fines
and the damages payable to Government Entities;
4.
guarantees
in respect of which enforcement proceedings are conducted;
5.
returns on investments and amounts payable in respect of the sale, lease, transfer of title, or use of Public Funds;
6.
loans that are granted to individuals, or private or
public entities, and are repayable to the Emirate or Government Entities; and
7.
any other Public Revenue that is collected based on legal grounds.
a.
In collecting Public Funds, a Government
Entity must:
1.
develop an internal audit system to regulate the procedures for
receiving and safekeeping Public Funds and for depositing the same
in the bank accounts designated by the Government for this purpose;
2.
dispose of the collected Public Funds only in accordance with the
legislation in force and the circulars issued by the DOF in this respect;
3.
comply with the provisions, procedures, standards, and policies
issued by the DOF in respect of receiving, and disbursing from, the
Public Funds held in custody or trust;
4.
separate, whenever possible, the responsibility for preparing invoices and other financial documents from the responsibility
for actually receiving Public Funds;
5.
provide the employees assigned to receive Public Funds with the necessary support that enables them to smoothly perform their duties, within the scope of work requirements. This
includes setting up a suitable workspace and providing currency checking and counting machines;
6.
ensure that the Public Funds are collected only by the employees of
the Government Entity or the employees of any other entity engaged by the
Government Entity, based on the approval of the DOF, to collect these funds;
7.
insure the collected Public Funds and the employees assigned to
collect and transport these funds until they are deposited in the
designated bank accounts;
8.
verify the authenticity of currency notes before receiving them. An employee receiving currency notes will be responsible for any
counterfeit notes that can be
identified through inspection by naked eye or by the machines provided to him by the
Government Entity for this purpose; and
9.
keep Public Funds in a properly locked safe under the custody of a
designated employee. This safe must be kept in a secure and locked place.
b.
Public Funds must be deposited in the bank account determined by
the DOF on the day on which they
are received or by the
end of the working day following that day. Moreover, cheques in any amount must be deposited in this account by the end of the working day following the day on which they are received.
c.
A Government Entity will take the appropriate measures to secure
Public Funds while being transported from one place to another, including while
being deposited with a bank. These measures must be determined based on the amount of money transported.
a.
Obligors or debtors liable for payment of outstanding Public Funds must pay all amounts owed by them in the manner, following the procedures, and using the
payment methods approved in this respect by the
Government Entity responsible for collection of these Public Funds.
b.
Being a creditor to the Government or to a Government Entity will
not exempt an obligor or debtor from his obligation to pay any outstanding Public
Funds to the Government
Entity on their due dates and without delay.
c.
Without prejudice to the functions of the Government of Dubai Legal Affairs Department under its
above-mentioned establishing Law No. (32) of 2008, a Government Entity will be responsible for
taking all actions required for the collection of the Public Funds owed to it.
d.
Where an obligor or debtor refrains from payment of Public Funds that are legally owed by him, the Government Entity responsible for
collection of these funds must take the measures below against him in the following order:
1.
serving the obligor or debtor with a notice requesting him to pay the Public Funds within thirty (30) days from their due date;
2.
upon expiry of the notice period referred to in sub-paragraph
(d)(1) of this Article, seizing the obligor’s or debtor’s property held
in its possession; and, subject to obtaining a relevant summary court
judgement, selling this property at a public auction;
3.
applying to the competent court to impose provisional attachment on the legally attachable property of the
obligor or debtor, where there are substantial grounds for this attachment or with
a view to preventing 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 pay the
Public Funds he owes.
e.
A competent Employee of a Government Entity will be legally liable where he fails to take
the necessary action to collect outstanding Public Funds within the prescribed
time frames.
f.
The DOF will take the necessary action to follow up depositing collected Public Funds into the Public
Treasury Account.
g.
A Government Entity may, subject to obtaining the approval of the
DOF, authorise any public or private entity to collect,
on its behalf, Public Funds under a relevant written agreement which provides
for the rights and obligations of both parties. In this case, the entity
authorised to collect Public Funds must:
1.
take the necessary action to collect the outstanding Public Funds
pursuant to the Law and this Resolution;
2.
deposit the collected Public Funds at the end of each working day
in the bank accounts designated for this purpose; and
3.
perform its obligations under the agreement concluded with it.
a.
A Government Entity may accept the following guarantees for payment
of the Public Funds owed to it:
1.
a letter of bank guarantee issued by a bank recognised in the United Arab Emirates;
2.
a notarised suretyship
agreement concluded by a solvent surety who guarantees the settlement of the Public Funds owed by the obligor or debtor, as per the relevant suretyship agreement template prescribed by the DOF; or
3.
any other
guarantees approved by the DOF.
b.
A Government Entity must not accept a Person as surety for the payment of Public Funds without first
verifying his solvency and ability to settle these funds where the obligor or debtor fails to settle the same.
c.
Government Entities must use the suretyship agreement template referred to in subparagraph
(a)(2) of this Article.
The agreement will not
be deemed valid unless it is attested by a Notary Public.
a.
A Government Entity will prepare a list of the Public Funds that
may be paid by instalments, and will submit the same to the DOF for approval.
The list must be prepared in accordance with the relevant rules and criteria
adopted by the DOF.
b.
A Head of Government Entity or his authorised representative may, based on a request submitted to the Government Entity by the obligor or debtor, or his legal representative, authorise
the payment by instalments of any Public Funds set forth in the list referred to in paragraph (a) of this Article. The
request will be determined in accordance with the rules and procedures
stipulated in this Article.
c.
Payment of Public Funds by instalments is subject to the following
conditions:
1.
Public Funds must be due by the date on which the application for payment
by instalment is submitted.
2.
The amount of Public Funds to be paid by instalments must not be
less than the minimum amount prescribed by the DOF based on the type and nature
of the Public Funds.
3.
The applicant for payment by instalments must prove his inability
to pay the total outstanding amounts in one payment.
4.
An applicant for payment by instalments must make an initial
payment of at least twenty-five percent (25%) of the outstanding amount of Public
Funds requested to be paid by instalments.
5.
Instalments must be paid by bank cheques or by providing any other guarantees or security as prescribed
by the DOF.
6.
The instalment period must not exceed five (5) years, or the period
in respect of which the Public Funds are due,
whichever is shorter.
7.
Any other conditions prescribed by the DOF must be satisfied.
d.
An applicant for payment by instalments must, within fifteen (15)
days from being notified of the decision approving the application for payment
by instalments, submit the guarantees or security prescribed by the DOF in
respect of the total outstanding amounts. The guarantees or security must be valid
throughout the instalment period and until full payment. Where the applicant
for payment by instalments fails to pay the instalments by the prescribed
deadlines, the decision approving the application for payment by instalments
will be deemed null and void.
a.
A Head of Government Entity or his authorised representative may,
subject to the relevant procedures adopted by that Government Entity, approve
the request of an obligor or debtor, who is issued an approval to pay Public
Funds by instalments, to defer the payment of up to three (3) instalments
payable by him. In this case, the applicant for payment by instalments must pay
the deferred instalments within the prescribed deadlines.
b.
A fee of one hundred dirhams (AED 100.00) will be collected from
any natural person applying for deferral of instalments under paragraph (a) of
this Article, and a fee of two hundred dirhams (AED 200.00) will be collected
from any sole proprietorship or natural person applying for the same.
a.
Where an applicant for payment by instalments defaults in the
payment of an instalment due from him without providing a written justification
acceptable to the Head of Government Entity or his authorised representative,
the Government Entity will take the following punitive measures against him:
1.
revocation of the approval of payment by instalments, and
collection of all remaining instalments in a single payment; and
2.
deprivation from applying for payment of Public Funds by
instalments for a period of two (2) consecutive years starting from the date on
which he defaults in payment.
b.
The punitive measures provided for in paragraph (a) of this Article
will be imposed without prejudice to taking any other measures or actions
stipulated in the legislation in force to claim the unpaid amount from the
person making payment by instalments.
a.
A Government Entity must maintain the following financial books,
records, and documents whether in a paper or electronic format:
1.
Ledger Group
This includes:
·
journal;
·
general ledger;
·
creditor
ledger;
·
debtor ledger;
·
fixed assets
ledger; and
·
inventory
ledger.
2.
Financial Records
Group
This includes:
·
suppliers and contractors’
record;
·
customers
record;
·
bounced
cheques record;
·
petty cash and
imprest record; and
·
tax return
record.
3.
Financial Documents Group
This includes:
·
cash receipts;
·
cheque
receipts;
·
cash disbursement vouchers;
·
cheque disbursement vouchers;
·
cash transfer
vouchers;
·
stock receiving note;
·
purchase
orders;
·
tax invoices;
and
·
bank
statements.
b.
The DOF may require maintaining any financial books, records, and
documents in addition to those stipulated in paragraph (a) of this Article.
c.
A Government Entity must keep the books, records, and documents set forth in paragraph (a) of this Article, together with
any additional books, records, and documents prescribed
by the DOF pursuant to paragraph (b) of this Article, for at least ten (10) years from the
date of approving the Financial Statements for the relevant Financial Year. These books, records, and documents may be copied using any electronic or digital method as from the date of keeping them.
d.
The period referred to in paragraph (c) of this Article may be
extended for keeping the financial books, records, and documents related to any
disputed rights between the Government Entity and any other party,
until the final settlement of such disputes or the lapse of the relevant
limitation period, whichever comes first.
e.
The period of
keeping disbursement and
collection documents will
commence at the beginning
of the Financial Year following the year in which these documents cease to be used. The period of
keeping contracting
documents, including financial Contracts, will commence from the date of satisfaction
of all contractual
obligations stipulated in the relevant Contract or contractual document, including the expiry of the warranty and maintenance periods.
f.
financial books, records, and documents must be kept in an
organised manner that ensures their protection and easy access thereto when needed, in accordance with the relevant rules and procedures
adopted by the DOF in this respect.
g.
A Government Entity will prepare lists of the financial books,
records, and documents to be discarded, within three (3) months after the end
of their keeping period.
a.
Neither the Heads of Government Entities nor the Employees of these entities may accept any donations or aid of any value without
first obtaining the approval of the competent authority in the Emirate.
b.
Donations and conditional monetary aid will be spent through the disbursement channels prescribed by the donor or the entity granting the aid.
c.
The donations and monetary aid for which the donor or the entity
granting the aid does not prescribe the disbursement channels, or conditions
for use, will be disposed of in coordination with the DOF.
d.
The Purchases and supplies procured, and the disbursements made, out of donations and monetary aid will be governed by the provisions of the legislation applicable
to Government Purchases.
e.
A Government Entity must coordinate with the DOF prior to accepting
any in-kind donations or aid. Such donations and aid will, upon their acceptance, form part of the assets and property of the
Government Entity.
f.
A Government Entity may, for any reasons relating to the
achievement of the public interest, sell in-kind donations and aid upon the
recommendations of the DOF. The sale proceeds must be paid into the account
designated by the DOF.
The Director General will issue the resolutions, circulars, and instructions required for the
implementation of the provisions of this Resolution.
The above-mentioned Executive Council Resolution No. (5) of 2019 is
hereby repealed. Any provision in any other resolution will also be repealed to
the extent that it contradicts the provisions of this Resolution.
This Resolution will be published in the Official Gazette and will
come into force on the day on which it is published.
Hamdan bin Mohammed bin Rashid Al Maktoum
Crown Prince of Dubai
Chairman of the Executive Council
Issued in Dubai on 4 March 2021
Corresponding to 20 Rajab 1439 A.H.
©2021 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.