The State Bureau for Financial Control Law

Having examined

• The Constitution
• The Law No. 30 of 1964, establishing the State Bureau for Financial Control and its amendments
• Decree-Law No. 31 of 1978 on the Rules for Preparing Public Budgets, Oversight their Implementation, and the Final Accounts and its amendments
• Decree-Law No. 15 of 1979 on the Civil Service and its amendments
• The Decree issued on 04/04/1979 on the Civil Service System and its amendments
• The National Assembly approved the following law, which we have ratified and promulgated:

 

Chapter One - Definitions

 

Article (1)

 

For the purposes of applying the provisions of this Law, the terms, words, and phrases listed below, wherever they appear, shall have the meanings indicated next to each of them:

The Bureau: is the State Bureau for Financial Control, which is established under this Law.

The Head of the Bureau: is the Head of the State Bureau for Financial Control.

The Supreme Committee: means the Supreme Committee of the State Bureau for Financial Control.

Financial Controllers are the technical staff working at the State Bureau for Financial Control.

Entities subject to the Bureau's oversight are ministries, government departments, and entities with attached and independent budgets.

 

Chapter Two - Establishment, Formation, and Objectives of the Bureau

 

Article (2)

 

An independent State Bureau for Financial Control is established under the provisions of this Law, reporting to the Minister of Finance.

Article (3)

 

The Bureau is composed of a Head with the rank of Minister, who manages its affairs and represents it in communication with relevant entities. The Head is appointed by decree for a four-year term, renewable once, based on the nomination of the Minister of Finance. The Head has a Deputy and heads of sectors, who are appointed by decree for a four-year term, renewable once, based on the nomination of the Minister of Finance. The Bureau is staffed with the necessary number of financial controllers, administrative staff, assistants, and experts in various specializations to enable it to perform its duties

Article (4)

 

The Bureau shall have a special staff, established by a decision of the Council of Ministers, which shall specify the schedule of grades, salaries, allowances, incentives, and monetary and in-kind benefits.

 

Article (5)

 

Without prejudice to the appointment conditions stipulated in the Civil Service Law issued by Decree dated April 4, 1979, a Financial Controller shall be a Kuwaiti citizen holding a Bachelor's degree in Accounting, recognized in the State of Kuwait. The determination of their place of work and transfer shall be by decision of the Head of the Bureau, and the Executive Regulations shall specify the conditions and criteria for this.

 

Article (6)

 

The Head of the Bureau, the Deputy, the Heads of Sectors, and the Financial Controllers, while holding their positions, may not:

 

1. practice a freelance profession or engage in commercial activity that conflicts with the requirements of their position.
2. purchase or lease property belonging to any entity subject to the Bureau's oversight, even indirectly or through public auction, nor lease, sell, or exchange any of their own property with such entity
3. participate in commitments entered into by any entity subject to the oversight of the Bureau.
4. hold a position within the Bureau and membership on the board of directors of a company, institution, or governmental or non-governmental body.
5. receive any sums or rewards from any public or private entity those have a direct or indirect impact on the impartiality and independence of the Bureau.
6. be appointed to the entities he previously oversaw before five years have elapsed since leaving his position there

 

Article (7)

 

A Supreme Committee shall be formed within the Bureau, consisting of:

1. The Minister of Finance, as Chairman.
2. The Head of the Bureau, as Vice-Chairman of the Committee.
3. The Deputy Head of the Bureau and the three most senior Heads of Sectors, as members.

The Secretariat shall be provided by one of the Bureau's employees, appointed by a decision of the Head of the Bureau. The Committee shall convene at least three times a year, upon the invitation of the Chairman or, in his/her absence, the Deputy Chairman. A quorum shall only be considered valid if the Chairman or Deputy and a majority of the members are present. Decisions of the Committee shall be held by a majority vote of those present, and in the event of a tie, the Chairman's vote shall be decisive.

The Executive Regulations shall define the powers and duties of the Supreme Committee, in accordance with the provisions of this Law.

 

The Supreme Committee shall establish the organizational structure of the Bureau, ensuring that the offices of the Financial Controllers are at the level of a department reporting directly to the Heads of the relevant Sectors. The Committee shall also establish the administrative and financial regulations necessary for the proper functioning of the Bureau and the achievement of its objectives, provided that these regulations do not conflict with the provisions of this Law.

Article (8)

The Bureau shall exercise its oversight role, which aims to:

1. Achieve effective prior oversight of the State's financial performance
2. Ensuring transparency, integrity, and clarity in overall financial performance, and enhancing credibility and confidence in financial procedures.
3. Ensuring that financial performance complies with applicable laws, regulations, bylaws, circulars, and decisions.
4. Providing necessary financial advice and guidance to entities subject to the oversight of the Bureau
5. Oversight the collection of public revenues for the State.

 

Chapter Three - Scope of the Bureau's Oversight and Jurisdictions

Article (9)

 

The provisions of this Law shall apply to entities subject to the Bureau's oversight. The Minister of Finance may assign the Bureau to oversee any other entity or activities it deems necessary for the Bureau to monitor.

 

 

Article (10)

The Head of the Bureau may form committees or working groups for oversight, verification, or study, and delegate to them specific tasks or issues within the Bureau's duties and powers. The results of their work shall be submitted to it.

Article (11)

The Head of the Bureau shall prepare a periodic report every six months on the Bureau's work and performance. This report shall be submitted to the Minister of Finance for presentation to both the Council of ministers and the National Assembly.

Article (12)

Without prejudice to the jurisdictions established for the Bureau in accordance with the provisions of Law No. (30) of 1964 referred to above, the jurisdictions of the Financial Controllers shall be as follows:

The Head of the Bureau shall prepare a periodic report every six months on the Bureau's work and performance. This report shall be submitted to the Minister of Finance for presentation to both the Council of ministers and the National Assembly.

Without prejudice to the jurisdictions established for the State Bureau for Financial Control in accordance with the provisions of Law No. (30) of 1964 referred to above, the jurisdictions of the Financial Controllers shall be as follows:

1. Oversight the implementation of the budget, revenues and expenditures, as well as assets and liabilities, in accordance with applicable laws, regulations, approved systems, and accounting standards, including the commitment system, and auditing the objectives of uses and resources
2. Signing disbursement, entry, and supply forms, after auditing them with all supporting documents and verifying the accuracy and integrity of the procedures, accounting guidelines, and their conformity with reality, financial laws and instructions, and the entity's regulations and bylaws, within five working days from the day following receipt of the form and the necessary supporting documents. For this purpose, they may audit all documents and files they deem relevant to the Oversight process.
3. Signing the final accounts and financial statements for the past fiscal year prepared by entities subject to the oversight of the Bureau and providing their opinion before submission to the Ministry of Finance. The executive regulations of this law shall specify the mechanism by which this function is to be carried out
4. Verify that accounting and financial settlements are made in accordance with financial regulations and approved systems, taking into account generally accepted accounting principles, especially when closing the fiscal year accounts.
5. Audit the issued internal control systems governing the work, assess their efficiency and adequacy in ensuring control over financial operations, and submit the necessary recommendations to the relevant authorities.
6. Provide an opinion on the draft budget of the entity under audit before its submission to the Ministry of Finance.
7. Attend bidding, practice, and tender committees formed by the entity to which the assigned individual is assigned, and provide opinions and observations
8. Auditing all contracts and commitments, within the limits of amounts requiring submission to the Central Tenders Committee and auction contracts before their conclusion to verify the validity of procedures in accordance with laws, regulations, and instructions.
9. Verifying the signing of penalty clauses against suppliers or contractors in case of their violation of contract terms, and approving the refund of penalties or fines to suppliers or contractors, after verifying that the decision to cancel or reduce them was issued by the competent Bureau.
10. Auditing requests for the disbursement of personal cash advances and authorizing their disbursement in light of financial instructions.
11. Verifying the collection and remittance of revenues in accordance with laws and financial instructions.
12. Participating in and approving periodic and surprise inventory committees for cash on hand, financial and postal stamps, and similar items.
13. Auditing accounting records and books to ensure the regularity of accounting entries.
14. Following up on the implementation of recommendations from various oversight bodies in the country and procedures for addressing their observations, in accordance with the Bureau's role
15. Preparing periodic reports on the results of prior financial audits.
16. Oversight grants, subsidies, gifts, donations, awards, and support provided by individuals and local or foreign entities to ensure their compliance with laws and regulations, and adherence to applicable rules and the terms stipulated in their agreements or contracts.
17. Participating with the entity under audit in investigating incidents of theft, embezzlement, or fires, auditing the investigation results, proposing necessary control systems to prevent such incidents, and submitting a report on these incidents and the investigation results to the head of the Bureau. In the event of losses, the responsible party shall bear their cost

 

 

The executive regulations shall specify any other powers of the financial controllers, in light of their full responsibilities in implementing this law, provided that these powers do not conflict with those stipulated in this law.

Financial controllers are prohibited from executing any order or decision that violates the provisions of the Constitution, laws, decrees, financial decisions, instructions, or approved financial rules, provided that such order or decision is justified.

 

Article (14)

 

The financial controller shall ensure that the creation of financial obligations or the imposition of a burden on the public treasury has been authorized by the competent Bureau, in accordance with the laws, decisions, and financial instructions, and after the supporting documents have been submitted. Otherwise, the financial controller shall refrain from signing the form, stating the reasons for the refusal in writing.

 

If the financial controller's opinion is not adopted, the matter shall be referred to the Minister or the head of the entity, including both opinions. If the Minister or the head of the entity does not approve the financial controller's opinion, the opinion of the Minister or the head of the entity shall be implemented, and the head of the Bureau shall be notified accordingly.

 

Chapter Four - General Provisions

Article (15)

 

A technical office, reporting directly to the head of the Bureau, shall be formed. It shall consist of Kuwaiti technical staff within the Bureau with no less than 15 years of experience. This office shall be responsible for verifying the Bureau's employees' compliance with their duties as stipulated in the law and its implementing regulations, and for conducting prior oversight of.

 

 

 

Article (16)

 

Any employee of the Bureau violated the requirements of his/her duties or engages in conduct unbecoming of the position shall be subject to disciplinary action, in accordance with the provisions of the Civil Service Law and the aforementioned Service Regulations, without prejudice to criminal liability where applicable.

 

Article (17)

 

Entities subject to the Bureau's oversight shall not delay the respond to its observations or correspondence a valid excuse. A response intended to stall or procrastinate shall be considered a failure to respond. Officials of these entities shall respond to the observations contained in the Bureau's reports within one month of being notified thereof.

Article (18)

 

Information, data, and documents accessed by Bureau employees by virtue of their positions and in the course of or as a result of their financial oversight duties shall be considered confidential and shall be treated as such.

 

Article (19)

 

The automated systems used in entities subject to the Bureau's oversight shall be configured so that no amounts are approved, deducted, or recorded except after automated approval by the financial controllers

 

Article (20)

 

Employees of the Bureau are prohibited from receiving any sums of money from entities subject to the Bureau's oversight in the form of bonuses or monetary or in-kind benefits

 

Article (21)

 

Entities subject to the oversight of the Bureau shall enable financial controllers to exercise their powers as stipulated in this Law and its Implementing Regulations. They shall also be obligated to remove all difficulties and obstacles to enable the Bureau to perform its duties optimally, in accordance with the provisions of this Law and its Implementing Regulations.

 

Article (22)

 

Financial controllers shall be considered as department directors, and the furnishing of their offices and related administrative services shall be the responsibility of the entities to which they are attached.

 

Article (23)

 

The Bureau shall qualify and train its employees to enable them to perform their duties and responsibilities in the field of oversight.

Article (24)

 

All financial controllers and heads of accounts working in the financial control units of the Financial Control Sector at the Ministry of Finance shall be transferred to the Bureau effective from the date of issuance of this Law, with their previous years of service being fully credited as service with the Bureau.

Article (25)

 

The provisions of the Civil Service Bureau and the Civil Service Commission Laws referred to above shall apply to the employees of the Bureau, except where otherwise stipulated in this Law and its Implementing Regulations.

 

 

Article (26)

 

The implementing regulations for this law shall be issued by decree, based on a proposal from the Supreme Committee, within six months of the date of issuance of this law, and until the issuance of these regulations, implementing the regulations governing the powers of financial controllers in a manner that does not conflict with the provisions of this law.

 

Article (27)

a special section in the state's general budget.

Article (28)

 

Any provision that conflicts with the provisions of this law shall be repealed.

 

Article (29)

 

The Prime Minister and the Ministers, each within their respective jurisdiction, shall implement this law.

 

Deputy of Emir of Kuwait

Nawaf Al-Ahmad Al-Jaber Al-Sabah

Issued at Seif Palace on: 22 Rajab 1436 AH

Corresponding to: 11 May 2015