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Appropriations (Financial Year 2009) Act, 2008

NITIJELA OF THE REPUBLIC OF THE MARSHALL ISLANDS

29TH CONSTITUTIONAL REGULAR SESSION, 2008

BILL NO: 12ND1
P.L.2008-4

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APPROPRIATIONS (FINANCIAL YEAR 2009) ACT, 2008.
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A
BILL FOR AN
ACT

To provide -

(a) in accordance with Article VIII of the Constitution, for the issue from the Marshall Islands General Fund, including funds provided under the Compact of Free Association, as Amended and other funds, of a total sum of $124,505,579 to meet the expenditures of the Government for the Financial Year 2009, and to appropriate sums to program areas; and

(b) for a Contingencies Fund in accordance with Section 9 of Article VIII of the Constitution; and

(c) for contingent appropriation of amounts that may be received in the future; and

(d) for delegation of expenditures approval under Section 5 of Article VIII of the Constitution; and

(e) for controls on reprogramming and transfer of funds within appropriation areas; and

(f) for control on specific expenditures.

BE IT ENACTED BY THE NITIJELA OF THE REPUBLIC OF THE
MARSHALL ISLANDS:

Section 1. Short Title.

This Act may be cited as the Appropriations (Financial Year 2009) Act, 2008 and shall be deemed to have come into effect on 1 October, 2008.

Section 2. Statement of National Objective.

It is the intention of the Government of the Republic of the Marshall Islands to enact and implement a national budget for the whole of the Financial Year 2009 as provided in the FY 2009 Budget Statement attached as Appendix A.

Section 3. Interpretation.

In this Act:

(1) "program area" means program areas set out in Schedules 1 to Schedule 4 as indicated by the headings in those schedules.

(2) "unanticipated income" means any money, not being loan money, that:

(a) becomes available for expenditures from a source at a time when the Nitijela is not meeting; and

(b) has not been specifically included in the budget estimates for the Financial Year, which the Cabinet is satisfied should, in the interests of the Republic of the Marshall Islands, be expended, in whole or in part, before the expenditures could reasonably be authorized by an Appropriation Act or a Supplementary Appropriation Act.

Section 4. Appropriations from the Marshall Islands General Fund

(1) Total Appropriation.

The sum of $33,249,896 is hereby appropriated, and may be withdrawn from the Marshall Islands General Fund and expended pursuant to Article VIII of the Constitution for program areas as set out in Schedule 1.

(2) Compact Funds.

All Funds provided under the Compact of Free Association, as Amended, in the amount $71,895,516 shall be credited to the General Fund and shall be appropriated in accordance with the relevant provisions and Schedule 2 of this Act.

(3) Restrictions on Reprogramming of Compact Funds.

Fund received under the Compact of Free Association, as Amended shall not be transferred to any other activity, or reprogrammed or expended for any purpose during the Financial Year other than the permissible uses of those funds as provided for in the Compact of Free Association as Amended and its Subsidiary Agreements.

(4) Lapse of Compact Funds.

All moneys received under the Compact of Free Association, as Amended and appropriated herein shall not lapse at the end of the Financial Year, but shall continue until either the purpose of the appropriation is completed or funds are expended, whichever occurs first.

(5) Notwithstanding the provisions of any other law or agreement, any entity or organization receiving funds under the Compact of Free Association as Amended, shall not receive such funding if the Auditor General or its contractors have determined that the books, accounts and financial records of any such entity or organization have not been auditable for the past three preceding fiscal years until such time as the Auditor General or its contractor determine that such entity or organization has taken necessary corrective action to render such books, accounts and financial records in an auditable condition to permit a financial audit to proceed.

Section 5. Appropriation of U.S. Agency and other Foreign Grants.

(1) The sum of $19,360,168 (being the total amount of special U.S. Federal Agency and other Foreign Grants including capital grants from the Republic of China) is appropriated and may be withdrawn from the Marshall Islands General Fund pursuant to Article VIII of the Constitution, for program areas in accordance with Schedules 4 and 5, during the Financial Year.

(2) The amounts set out in Schedules 4 and 5 are not available for expenditure as reprogrammed expenditure under Article VIII Section 7 of the Constitution, except as authorized by or under the agreements with the donor nation and/or institution.

(3) The appropriation made by Subsection (1) shall not lapse, except those made under the capital grant allocations from the Republic of China, at the end of the Financial Year, but shall continue until either the grant expires or the funds are expended, whichever occurs first.

Section 6. Funding of the Office of the Auditor General and the Office of the Project Management Unit (PMU)

(1) The Secretary of Finance shall withhold and deposit in the special account in the Marshall Islands General Fund, 0.6 percent of all amounts appropriated in Schedules 1 and 5, and the sum so withheld and deposited maybe withdrawn and expended by the Auditor-General in accordance with the budget approved for his/her office by the Cabinet, for the operations and activities of his/her office.

(2) The Secretary of Finance shall withhold and deposit in a special account that is part of the Compact Capital Funds, 8.0 percent or $400,000 (whichever amount is less) of any amounts specified under the Compact Capital Funds appropriated in Schedule 2, and the sum so withheld and deposited may be withdrawn and expended by the Project Management Unit (Ministry of Public Works) in accordance with the budget approved by the Cabinet, for the operations and activities of the Project Management Unit.

Section 7. Contingencies Fund.

(1) In accordance with Article VIII, Section 9(1) of the Constitution, up to $200,000 is authorized to be advanced against the General Fund for purposes of the Contingencies Fund.

(2) Where, during the Financial Year, an amount of unanticipated income is received by the Government for the purpose of an urgent and unforeseen need, the amount prescribed in Subsection (1) for the Contingencies Fund is increased by the amount of that unanticipated income, to meet such need.

Section 8. Unanticipated Income.

Where, during the Financial Year, an amount of unanticipated income is received by the Government for a specified program area, otherwise than as set out in Section7 (2), that amount is appropriated for the corresponding program area in Schedules as the case may be, and the amount of the appropriation for that program area is increased accordingly.

Section 9. Notification to the Cabinet by the Minister.

When any money is received under Section 7 (2) or Section 8 herein above, the Minister of Finance shall notify the Cabinet of the receipt of such money, and such money shall not be expended without the approval of the Cabinet.

Section 10. Lapsing of Certain Appropriations.

Any increase in the amount prescribed for the Contingencies Fund provided for by Section 7 (2) ceases and any increase in the amount of an appropriation affected by Section 9 lapses:

(a) on the effective date of the next Appropriation Act or Supplementary Appropriation Act enacted after the date referred to in Subsection (1); or

(b) on the adoption of a Resolution to that effect by the Nitijela, whichever occurs first.

Section 11. Delegation of Authority to Approve.

(1) For the purposes of Article VIII, Section 5 (1) of the Constitution, the authority to approve expenditure in a program area in accordance with Schedules 2-5 is hereby delegated to:

(a) The member of the Cabinet primarily responsible for that program area and;

(b) If the responsible member of the Cabinet so directs by instrument in writing, and subject to any limitations imposed by the instrument and to general control by the member, an appropriate person, authority, or agency.

(2) The Chief Justice of the High Court is hereby vested with the authority to approve expenditure of the Judiciary Fund in accordance with the provisions of 27 MIRC Chapter 1.

(3) Any expenditure otherwise than in accordance with Schedule 1, 2, 3, 4 and 5 shall require the approval of the Cabinet in accordance with Article VIII, Section 5(1) of the Constitution.

Section 12. Reprogramming of Funds.

Before any reprogramming of expenditure between program areas is approved under Article VIII, Section 7 (1) of the Constitution, the Cabinet shall approve such reprogramming.

Section 13. General.

(1) In the event the actual receipts into the Marshall Islands General Fund fall short of the total amount appropriated in Schedules 6, 7, 8 and 9, the Cabinet may make the necessary adjustments to Schedules 1, 2, 3 and 4 to accommodate the shortfall.

(2) All contracts awarded by the Government and associated agencies must comply with the provisions of the RMI Procurement Code. Funds will only be released by the Ministry of Finance upon proof of compliance with the code.

(3) Gross Revenue Tax of 3% on all Government contracts will be withheld by the Ministry of Finance at the time of payment, and credited against the contractor's liability to pay gross revenue tax for the period of the payment. The contractor is still required to file a tax for return for the period.

(4) All Government Ministries and associated agencies must have been audited and have complied with all the audit recommendations prior to receiving any quarterly allocation. Any Ministry or Department unable to comply with all the audit requirements must provide an expense report before release of any funds.

(5) No funds appropriated under this Act shall be released to any Local Government, statutory corporation or agency whose financial records have not been auditable for the past two preceding fiscal years, until such Local Government, statutory corporation or agency has taken the necessary steps to render such records auditable, or provides a full and complete report of its expenses to Cabinet.

Section 14. Special Revenue Fund.

Any moneys in excess of an appropriation made in Schedule 3 (Special Revenue Funds) may be expended during the Financial Year only in accordance with terms of the Act establishing such Special Revenue Fund.

Section 15. Effective Date.

This act shall take effect on the date of certification in accordance with Article IV, Section 21 of the Constitution.

CERTIFICATE

I hereby certify:

(1) That Nitijela Bill No: 12 N.D.1 was passed by the Nitijela of the Republic of the Marshall Islands on the 17th day of September, 2008; and

(2) That I am satisfied that Nitijela Bill No.: 12 N.D.1 was passed in accordance with the relevant provisions of the Constitution of the Republic of the Marshall Islands and the Rules of Procedures of the Nitijela.

I hereby place my signature before the Clerk this 29th day of September, 2008.

Attest:

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