Financial Regulations are rules and regulations that govern the acquisition, recording, utilization and accounting for and control of public funds and resources of government to achieve stated objectives.
They are the standards against which all financial activities are measured and judged.
These provisions determine acceptable or unacceptable financial transactions and or practices.
It is the restoration of rules and regulations and the need to adhere strictly to them in the conduct of government business particularly in the control and management of public funds and resources of government. It is an accounting and financial control document that provides a body of guidelines regulating the recording of financial transactions in government MDA
Paragraph 5 of part 1 of Chapter 1 of the Financial Regulations state that:
“The Minister of Finance shall issue from time to time financial regulations in accordance with existing policies and laws.” “The financial regulations so issued shall generally apply to the Federal Public Service which term means ministries, extraministerial offices and other arms of government.”
Hence, the authority for the issuance of FR was derived from existing laws and policies governing finances of government. For example, Section 3 and 4 of the Finance (Control and Management) Act Cap 144 Laws of the Federation, 1990, states that the Minister of finance shall have full authority to direct on
all matters relating to the finance and accounting affairs of the federation which are not by law assigned to any other Minister.
Specifically, the Minister of Finance shall from time to time direct the issuance of the Financial Regulations to guide all public officers on the receipts and disbursements of Public Funds, as well
as the management of public assets
Objectives of Financial Regulations
To guide the day – to- day financial operation of government MDAs.
To ensure appropriate system of information flow from management to finance and accounts staff.
To ensure prudence in carrying out government business.
To provide common standard, procedures and guides by which auditors and treasury inspectors can ascertain that ministries are able to control and maintain up to date records of financial transactions.
To promote fiscal accountability, management accountability and programme result accountability in
government financial management and control.
To ensue the applicability of the principles of good government.