ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives

1 Introduction to the documentAn increasing proportion of future development partners’ support to the agriculturalsector development is proposed to be provided through budget support but as atransitional measure the GoT and its partners have agreed to finance the programmethrough a basket fund mechanism. The basket fund will finance ASDP initiativesthrough the GoT Exchequer and local government’s sector account. Under thisarrangement development partners funds are pooled in a holding account with theBank of Tanzania (BOT).1.2 About this documentThis document draws on existing GoT legislation and rules to specify commonfinancial management arrangements for the ASDP. This includes the Public FinanceAct No. 6 of 2001, Public Procurement Act of 2004 and other relevant regulations,directives and circulars issued by the Accountant General.At a central level, the document offers guidance to personnel in the AgriculturalSector Lead Ministries (ASLMs) charged with financial management. In addition thedocument is available for reference purposes to auditors and other interested partieswho wish to understand and/or are retained to evaluate ASDP’s financialmanagement arrangements.At a local level, the document assists Local Government Authorities (LGAs) in thesuccessful implementation of the programme. This document should be read alongwith Local Authorities Financial Memorandum (1997), the Local AuthoritiesAccounting Manual and the guidelines included in the District AgriculturalDevelopment Plans (DADP).This document is not an accounting manual as such, rather it provides an overview ofthe programme’s financial management mechanisms.1.3 AuthorityThis document is issued under the authority of the Accountant General and thePermanent Secretaries (PSs) in the ASLMs.All Accounting Officers are required to provide an efficient and effective service at alltimes in accordance with laws, regulations and instructions currently in placeincluding the ones in this document. Failure to do so renders Officers, personally andpecuniary liable for the restitution of any loss incurred by the Government and mayresult in disciplinary action being taken.Government of the United Republic of Tanzania3