Fifth Book of the financial regime of local authorities - Law 2019/024 of 24 Dec 2019 on the General Code of Decentralized Territorial Communities

ARTICLE 372 -(1) The financial regime of Territorial Authorities sets out all the rules relating to the nature, content, presentation, preparation, adoption and execution of the budgets of Regions, Communes, Urban Communities, Syndicates of Communes, regional and communal public establishments or any other Territorial Authority created by law.

(2) The provisions of the law on the Code of transparency and good governance in the management of public finances and those of the law on the financial regime of the State and other public entities shall apply to the Territorial Collectivities subject to the specific provisions of this law.

ARTICLE 373 - (1) Each year, the executive body of the Collectivité Territoriale shall draw up a long-term budgetary framework defining, on the basis of realistic economic assumptions, the development over a minimum period of three (03) years:

• • all expenditure and revenue of the Local Authority and its public bodies, including funding from the State, national and international donors, decentralised cooperation and all other partners;
• • - the financing needs or capacity of the Local Authority and its public bodies;
• • - financing elements, as well as the overall level of financial indebtedness of the Local Authority and its public establishments;

(2) On the basis of this medium-term budget framework and within the limits it sets, the Executive Body of the Collectivité Territoriale establishes the medium-term expenditure framework (CDMT), breaking down, over a minimum period of three (03) years, the major categories of local public expenditure.

(3) The medium-term expenditure framework referred to in paragraph 2 above is established taking into account the development plan of the Territorial Community concerned, previously adopted by the deliberating body.

(4) These medium-term framework documents are made public by any means.

ARTICLE 374 -(1) Each year, before 1st August, the Executive body of the Territorial Community shall forward to the deliberating body the medium-term framework documents referred to in article 373 above, together with a report on the regional or local economic situation and the level of implementation of the budget for the current financial year.

(2) On the basis of these documents and reports, the deliberating body holds a budgetary orientation debate, in public session, but without voting.

(3) The budget of the Local Authority adopted and approved must comply with the first year of the medium-term framework, as agreed during the budget orientation debate.

ARTICLE 387 - (1) The initial budget is voted by the deliberating body and implemented at the beginning of the financial year.

(2) The amending budget is, if necessary, voted by the deliberating body during the financial year.

ARTICLE 388 - (1) The amending budget is intended to adjust the estimates in the initial budget. It shall include, in particular, additional appropriations required during the financial year, new revenue not provided for in the initial budget and revenue and expenditure operations carried over from the previous year's budget.

(2) The amending budget shall be prepared, voted on and approved in the same manner as the initial budget, in accordance with the provisions of this law.

ARTICLE 389 - (1) The budget comprises two (02) parts: the first part is devoted to revenue and the second part to expenditure.

(2) The total revenue covers the total expenditure.

(3) Operating transactions are annual and are intended to be repeated. Investment operations are those that have an impact on the assets of the Local Authority and may be multiannual.

(4) The methods of distribution, between the Territorial Communities, of the General Decentralisation Grant instituted by article 23 of this law may be determined by the Finance Law.

SECTION I - REVENUE

ARTICLE 390 - The revenues of the Local Authorities, described according to their nature, include tax revenues, income from the use of land and services, grants and subsidies, cash resources and financing.

SUBSECTION I - TAX REVENUE

ARTICLE 391 - The tax revenues of the Territorial Communities are made up of all the deductions made by the State's tax departments or the relevant departments of the Territorial Community for the benefit of the latter. All these levies are referred to as <<local taxes >>.

ARTICLE 392 - Local taxes include :

• • local taxes;
• • additional municipal levies on State taxes and duties ;
• • local taxes ;
• • Regional taxes and charges ;
• • any other type of levy provided for by law.

SUB-SECTION II - INCOME FROM THE OPERATION OF THE ESTATE AND SERVICES

ARTICLE 393 - Revenue from the operation of the estate and regional or communal services comprises :

• • income from regional or municipal public property;
• • income from regional or municipal private property;
• • income from the provision of services.

SUBSECTION III - GRANTS AND SUBSIDIES

ARTICLE 394 - Territorial Authorities receive grants and subsidies from the State for the performance of their duties.

ARTICLE 395 - A general operating grant is allocated to Borough Communes by the Urban Community to which they are attached.

ARTICLE 396 - (1) The general operating subsidy referred to in Article 395 above is indexed to certain revenues of the Urban Community.

(2) The procedures for the repayment of the general operating subsidy provided for in article 395 above, as well as those for the indexation provided for in paragraph 1 above, are determined by order of the Minister in charge of Local Authorities.

ARTICLE 397 - Local Authorities may receive endowments and grants for investment, equipment or operation.

SUBSECTION IV - OTHER REVENUE

ARTICLE 398 - Other revenue includes in particular :

• • operating reserves;
• • rebates and royalties granted by the State ;
• • financial income;
• • transfers received;
• • other miscellaneous income and gains ;
• • reversals of depreciation;
• • medium and long-term borrowings ;
• • assistance funds ;
• • donations and bequests involving capital expenditure ;
• • proceeds from the sale of assets and the disposal of buildings ;
• • the proceeds from the sale of animals or equipment impounded and not claimed within the statutory time limits;
• • capital gains on disposals of fixed assets;
• • earmarked investment reserves;
• • outstanding amounts from previous years deemed recoverable ;
• • reserves that are not allocated but are maintained as quasi-cash assets;
• • the production of fixed assets by the Local Authority for its own use or as self-equipment;
• • dividends and other income from investment returns ;
• • any resources from international or decentralised cooperation.

ARTICLE 399 -(1) Domestic loans are authorised by a resolution of the governing body, which is submitted to the State representative for approval. They are intended first and foremost to finance investments. The relevant resolution sets the amount of the loan.

(2) Borrowing from natural or legal persons with a direct or indirect link to the Collectivité Territoriale is prohibited.

(3) External loans, authorised by deliberation, subject to the approval of the representative of the State, are guaranteed by the State.

ARTICLE 400 - (1) Donations and legacies are accepted by deliberation approved by the representative of the State.

(2) Notwithstanding the provisions of paragraph 1 above, the executive body may, as a precautionary measure, accept gifts and bequests; the relevant resolution, indicating in particular the use to be made of them, shall be submitted to the deliberative body at its next meeting.

(3) A reasoned refusal by the deliberating body to accept gifts and legacies accepted on a precautionary basis by the Chief Executive entails their return to their owner within fifteen (15) days of the date of the deliberation.

SECTION II - EXPENDITURE

ARTICLE 401 - Expenditure by Local Authorities includes operating expenditure and capital expenditure.

SUBSECTION I - OPERATING EXPENDITURE

ARTICLE 402 - Operating expenses are those linked to the running of services, and which are recurrent. They enable the Territorial Community to meet its current expenses and obligations. They may be compulsory or optional.

ARTICLE 403 - Compulsory expenses are those imposed by law - They are necessary for the optimal functioning of the Territorial Community due to their particular interest. As such, they must be included in the budget.

ARTICLE 404 - (1) The following expenditure is compulsory:

• • Salaries and wages;
• • The allowances and other benefits provided for by the laws in force;
• • Social security contributions;
• • taxes to be paid ;
• • incompressible costs associated with the operation of services ;
• • debts payable ;
• • contributions to local authority support bodies as provided for by the laws and regulations in force;
• • expenditure arising from the enforcement of final court judgements;
• • contributions to groups or associations of which the Collectivité Territoriale is a member ;
• • expenditure on maintenance and upkeep of roads, public lighting, health facilities, schools and all other infrastructure;
• • expenditure on counterpart funds ;
• • transfer expenses.

(2) The general operating grant allocated to the Communes d'Arrondissement is a compulsory expenditure for the Urban Community.

ARTICLE 405 - Optional expenditure is that which is not included in the compulsory expenditure set out in article 404 above. They may be temporarily suspended when the financial resources of the Territorial Community prove to be insufficient.

ARTICLE 406 -(1) Prohibited expenses are those formally prohibited by the laws and regulations in force.

(2) The following in particular are prohibited

• • loans granted by a Local Authority to a private person;
• • subsidies to unregistered associations and other unapproved bodies ;
• • subsidies to religious associations and congregations ;
• • subsidies to political parties ;

(3) Funds spent in contravention of paragraphs 1 and 2 above shall be charged to the authorising officer.

SUBSECTION II - CAPITAL EXPENDITURE

ARTICLE 407 - (1) Capital expenditure is that which enables the construction of equipment, buildings and infrastructures, as well as the acquisition of equipment relating to these works, in the economic, social, health, educational, cultural and sporting fields.

(2) In this respect, capital expenditure contributes in particular to :

• • building and equipping markets, bus stations and abattoirs;
• • improving the quality of the environment, access to drinking water and the management of natural resources;
• • development projects;
• • the creation of municipal roads and the upgrading of departmental and regional roads;
• • the development of public lighting and electrification in needy areas;
• • the creation of unclassified rural roads;
• • equipping health facilities;
• • equipment for schools ;
• • building sports and socio-educational infrastructure at regional or local level;
• • the acquisition of equipment to improve basic local services;
• • the implementation of investment programmes and projects adopted by the governing body.

ARTICLE 408 - (1) A budget appropriation is the maximum amount of expenditure which the deliberating body authorises the executive body to commit and pay, for a given purpose during the financial year.

(2) Budgetary appropriations are set out in the adopted and approved budget.

ARTICLE 409 - (1) The appropriations in the budget of the Territorial Community are grouped by programme.

(2) The programme groups together the appropriations intended to implement an action or a coherent set of actions to which are associated precise objectives, defined in terms of general interest objectives, as well as expected results. The objectives of each programme are accompanied by performance indicators.

(3) Communal programmes are part of the development strategy and sectoral strategies defined at national level. They are also consistent with the programmes of the parent Region, as well as with the medium-term framework documents referred to in article 373 above.

(4) The programmes of the Region are part of the national development strategy and sectoral strategies defined at national level and are consistent with the programmes of the Communes within their territorial jurisdiction as well as with the medium-term framework documents mentioned in article 373 above.

(5) An order of the Minister responsible for local authorities shall lay down the nomenclature of the programmes, which the local authorities shall be responsible for breaking down into actions and activities.

(6) The programmes and documents mentioned above are made public.

ARTICLE 410 - (1) Appropriations are specialised by programme.

(2) Within each programme, appropriations are fungible in the proportions provided for in Article A 414 below and their presentation by title is only indicative and is not binding on authorising officers or accounting officers in budget implementation operations.

(3) However, within a programme, the appropriations:

• • for staff costs cannot be increased;
• • for capital expenditure cannot be reduced.

ARTICLE 411 - The appropriations allocated for staff costs are accompanied by authorisation ceilings for jobs paid for by the Local Authority. The number and distribution of paid posts may only be modified by deliberation.

ARTICLE 412 - (1) The appropriations opened in the budget of the Territorial Community to cover each of its expenses are made up of commitment authorisations and payment appropriations.

(2) Commitment authorisations constitute the upper limit of expenditure that may be committed during a financial year and whose payment may extend, where applicable, over a period of several years within the medium-term budgetary framework.

(3) Payment appropriations are the upper limit of expenditure which may be paid during the year to cover commitments entered into under commitment authorisations.

(4) For operating expenditure, the amount of commitment authorisations opened is equal to the amount of payment appropriations opened.

(5) For investment expenditure incurred during a financial year, the amount of commitment authorisations opened shall be equal to the amount of payment appropriations opened.

ARTICLE 413 - (1) Transfers of appropriations during the financial year may modify the distribution of budget appropriations between programmes.

(2) The cumulative amount of appropriations transferred in any one year may not exceed 2% of the appropriations opened for each of the programmes concerned. Transfers of payment appropriations for investment
expenditure may not lead to an increase in commitment authorisations. They are made by order of the Chief Executive of the Collectivité Territoriale.

(3) Transfer orders are immediately communicated to the deliberating body for information.

ARTICLE 414 -(1) Subject to the provisions concerning commitment authorisations, the credits opened and the ceilings of employment authorisations fixed for the year shall not create any rights for subsequent years.

(2) Commitment appropriations not used at the end of the year may not be carried over.

(3) Payment appropriations available on a programme at the end of the year may be carried over to the same programme, up to the limit of the commitment authorisations actually used but not yet paid.

(4) These carryovers are carried out by order of the Chief Executive after receiving the assent of the committee responsible for financial matters.

ARTICLE 416 - (1) The Head of the Executive prepares the budget of the Collectivité Territoriale.

(2) The draft budget referred to in paragraph 1 above is drawn up with reference to:
the joint circular letter from the Minister responsible for territorial collectivities and the Minister responsible for finance.
the results of public consultations
the medium-term framework adopted following the budgetary orientation debate.

ARTICLE 417 - (1) The budget of the Commune and the Urban Community is drawn up in compliance with the following ratios:

• • capital expenditure forecasts must be set at a minimum rate of 40% of total expenditure;
• • Estimated operating expenditure must not exceed 60% of total expenditure;
• • staff costs must not exceed 35% of operating costs.
• (2) The Region's budget is drawn up in compliance with the following ratios:
• • capital expenditure forecasts must be set at a minimum rate of 60% of total expenditure
• • Estimated operating expenditure must not exceed 40% of total expenditure;
• • staff costs must not exceed 30% of operating costs.

ARTICLE 418 - (1) A report on the economic and social situation and prospects of the Collectivité Territoriale is attached to the draft budget.

(2) The report mentioned in paragraph 1 above presents in particular :

• • the assumptions and results of the projections on which the draft budget is based ;
• • the medium-term budgetary framework documents provided for in article 373 of this law;
• • an analysis of budgetary trends compared with the previous financial year;
• • an analysis of budget revenue forecasts for the year in question and, by way of indication, the amounts expected for the following two (02) years;
• • the debt situation and the debt strategy;
• • a table showing the Territorial Authority's financial operations;
• • a monthly cash flow plan;
• • explanatory annexes indicating, by programme, the amount of appropriations presented by title for the year in question, as well as for the following two (02) years. These annexes are accompanied by the Territorial Authority's annual performance project;
• • a summary of all external funding planned for the coming financial year, specifying the amount, purpose and method of integration. Copies of the relevant funding agreements are attached to this summary;
• • an appendix presenting the financial assistance provided by the Local Authority to its companies, public establishments, trade unions and other groupings;
• • a report identifying and assessing the main budgetary risks;
• • a description of the main expenditure and revenue measures, specifying their contribution to the Territorial Authority's policy objectives and their consistency with major national public policies, as well as with the policies of other Territorial Authorities;
• • an appendix showing the progress of the main investment projects.

ARTICLE 419 - (1) The Territorial Authority's annual performance plan, appended to the draft budget, sets out, for each programme, the objectives pursued and the expected results, measured by means of activity and result indicators.

(2) It is drawn up by the programme managers, designated in accordance with the provisions of article 435 below of this law, under the authority of the Chief Executive.

ARTICLE 420 - In addition to the documents mentioned in article 418 above, the following documents must be attached to the draft budget:

• • the staff list;
• • an inventory of vehicles and equipment;
• • the location of owned or rented properties;
• • the draft resolution approving the budget;
• • financial decisions ;
• • the results of the last approved administrative account;
• • the statement of income and expenditure for the financial year in progress at the date of the meeting;
• • any other relevant documents.

ARTICLE 421 - (1) Where the Head of the Executive of the Territorial Community has not presented the budget before 15th December, he/she may be suspended for a period not exceeding three (03) months.

(2) In the event of the suspension of the Head of the Executive, his or her replacement, in order of precedence, shall exercise his or her full functions. He/she must present the budget within fifteen (15) days.

ARTICLE 422 - (1) The budget of the Collectivité Territoriale is voted by the deliberating body no later than 15th December of each year, subject to the provisions of article 423 paragraph 2 below.

(2) The deliberating body is convened at least fifteen (15) days before the session during which the budget is voted. This period may be reduced to three (03) days in urgent cases.

(3) The draft budget submitted to the vote shall be accompanied by the documents and exhibits provided for in articles 419 and 421 of this law.

(4) The budget is adopted by deliberation.

(5) Should the Head of the Executive of the Territorial Community fail to convene the session within the aforementioned deadlines, the representative of the State shall prescribe the convening of the session without delay.

ARTICLE 423 - (1) Where the deliberating body refuses to vote the budget, the Head of the Executive shall refer the matter to the representative of the State for arbitration. In the event of unsuccessful arbitration, the deliberating body may, on a reasoned proposal from the representative of the State, be suspended by the Minister responsible for local authorities for a period not exceeding two (02) months.

(2) At the end of the suspension, a further period of fifteen (15) days is granted to the deliberating body to vote on the budget.

(3) If the refusal persists, the deliberating body may be dissolved.

ARTICLE 424 - The deliberating body may amend the draft budget presented by the Executive of the Local Authority in accordance with the laws and regulations in force.

ARTICLE 425 - The Head of the Executive of the Territorial Community has a period of seven (07) days to send the approved budget, its annexes and the minutes of the meeting to the representative of the State.

ARTICLE 426 - The budget of the Collectivité Territoriale is approved by order of the representative of the State within a period of fifteen (15) days following the date of its receipt by the Collectivité Territoriale. After this period, the budget is deemed to have been approved.

ARTICLE 427-(1). The representative of the State who approves the budget of the Collectivité Territoriale may, after a formal notice has remained without effect, modify it ex officio when :

• • the said budget is not voted in balance;
• • the appropriations entered to cover compulsory expenditure are insufficient;
• • expenditure is prohibited within the meaning of article 406 of this law;
• • the ratios provided for in article 417 above are not complied with.

(2) Where the representative of the State amends the budget on his or her own initiative, he or she may not increase expenditure or enter new expenditure unless it is compulsory.

ARTICLE 428 - (1) Where the budget has not been voted before the beginning of the financial year, the representative of the State shall give formal notice to the Territorial Community concerned to remedy the situation within fifteen (15) days.

(2) Until the budget has been voted and approved, the representative of the State shall renew the budget for the previous financial year by provisional twelfths.

ARTICLE 429 - The approved budget shall be published on the Territorial Community's electronic website, by posting or by any other means and shall be deposited at its headquarters where it may be consulted. A copy is sent to the Ministers responsible for Local Government and Finance respectively.

ARTICLE 430 - Special revenue and expenditure authorisations are voted and approved in the same way as the budget.

ARTICLE 434 - (1) The President of the Regional Council and the President of the Regional Executive Council are respectively authorising officer for the budget of the Region and authorising officer for the budget of the Region with special status.

(2) The Mayor is the authorising officer for the budget of the Commune, the Urban Community and the Commune d'Arrondissement.

(3) The President of the Syndicat de Communes is the authorising officer for the budget of the Syndicat de Communes.

(4) The authorities mentioned in paragraphs 1, 2 and 3 above are principal authorising officers.

ARTICLE 435 - (1) The person responsible for the programme is designated by decision of the Head of the Executive of the Local Authority. The appointment decision shall specify the conditions under which the powers of authorising officer are delegated to him/her, as well as the procedures for managing the programme. This act is sent, for information, to the State representative, to the relevant court of auditors, to the Minister in charge of Local Authorities and to the Minister in charge of Finance.

(2) On the basis of the general objectives defined in the management charter, the programme manager determines the specific objectives, allocates the resources and monitors the results of the departments responsible for implementing the programme. He ensures compliance with the management control mechanisms.

ARTICLE 436 - (1) A Financial Controller is appointed to the Chief Authorising Officer of the Collectivité Territoriale by the Minister in charge of finance.

(2) The Financial Controller is responsible for controlling budgetary operations, under the conditions laid down by decree of the President of the Republic.

(3) The Financial Controller shall give an opinion on the fairness and sustainability of expenditure commitment plans.

(4) He may not, under any circumstances, make the granting of his approval subject to an assessment of the appropriateness of decisions taken by the authorising officer.

(5) Within seventy-two (72) hours of receipt of the application, the authorising officer must give reasons for any rejection.

ARTICLE 437- (1) The Collectivité Territoriale shall have an autonomous accounting office with exclusive responsibility for its financial operations. This accounting office is created by order of the Minister in charge of finance. A regulatory text determines its organisation and operation.

(2) The accounting office is placed under the authority of a public accountant. He is a senior accounting officer.

ARTICLE 438 - The collection of revenues and the payment of local expenses are carried out by the public accountant of the Territorial Community known as the "Regional Receiver" or "Municipal Receiver".

ARTICLE 439 - (1) The Regional Receiver and the Municipal Receiver of an Urban Community are chosen from the staff of the civil and financial services of the State and appointed by joint order of the Minister responsible for Local Authorities and the Minister responsible for Finance.

(2) The other heads of the regional accounting post and the other heads of the accounting post of an Urban Community are chosen from among the staff of the Territorial Communities or; where applicable, from among the staff of the civil and financial services of the State, and appointed by joint order of the Minister in charge of Territorial Communities and the Minister in charge of Finance.

(3) The other municipal collectors are appointed from among the staff of the Territorial Collectivities or, where applicable, from among the staff of the civil and financial services of the State, by order of the Minister responsible for the Territorial Collectivities.

(4) The other heads of the Communes' accounting posts are appointed from among the staff of the territorial collectivities by order of the Head of the Executive Body of the Territorial Collectivity.

(5) The organisation of the accounting function of the Local Authorities is laid down by regulation.

(6) The status and duties of the accounting officers of the Local Authorities shall be laid down by regulation.

(7) Where a Local Authorities does not have a financial controller, this function shall be performed by the Public Accountant of the said Local Authorities.

ARTICLE 440 - Regional Councillors, members of Regional Executive bodies, Municipal Councillors, Municipal Executive bodies, Regional and Municipal Collectors, as well as their spouses and other beneficiaries, are prohibited from providing goods or services to the Territorial Communities in which they work or to which they belong.

ARTICLE 441 - The revenue enforcement procedure comprises the stage of issuing an enforcement order, which is the responsibility of the authorising officer, and the stage of collection, which is the responsibility of the accounting officer. In the case of revenue collected directly by the accounting officer, vouchers are issued to regularise the situation.

ARTICLE 442 - At the initiative of the accounting officer, the authorising officer may, by deliberation approved by the supervisory authority, write off debts deemed irrecoverable, in compliance with the regulations in force.

ARTICLE 443 - Claims, cancellations and proceedings relating to debts owed by Local Authorities are subject to the same rules and procedures as those of the State.

ARTICLE 444 - The authorising officer of the budget of a territorial collectivity may only execute an expenditure after ensuring that :

• • it corresponds to the correct budget item and its amount is within the voted appropriations;
• • that it can be covered by available funds;
• • the supporting documents are complete;
• • that the service or supply has been made;
• • the formalities required by the laws and regulations in force have been complied with.

ARTICLE 445 - The expenditure implementation procedure comprises two (02) phases:
the administrative phase, which is the responsibility of the authorising officer. It includes commitment, liquidation and authorisation;
the accounting phase which is the responsibility of the accounting officer of the Collectivité Territoriale and which consists of the payment of the expenditure.

ARTICLE 446 - The execution of expenditure is governed by the provisions applicable to public procurement by territorial collectivities.

ARTICLE 447 - Notwithstanding the provisions of article 446 above, the authorising officer may, on the basis of a decision approved by the representative of the State, open an imprest account for the payment of current operating expenses in accordance with the regulations in force.

ARTICLE 448 - The accounting officer of the Local Authority shall check the regularity of the expenditure. He may not, under any circumstances, make his acts of payment subject to an assessment of the appropriateness of decisions taken by the authorising officer. He must, within seventy-two (72) hours of receiving the file, give reasons for suspending or refusing payment.

ARTICLE 449 - Local expenditure is paid by cash voucher, bank transfer, cheque or order, in accordance with the procedures laid down by the regulations in force.

ARTICLE 450 - The Head of the Executive body may not force the Receiver of the Local Authority to certify or pay expenses in violation of the provisions of the law.

ARTICLE 451 - (1) Commitment operations on the budget of the Collectivité Trerritoriale for the financial year are closed on 30 November.

(2) Authorisation operations for a budget year are closed on 31 December.

ARTICLE 452- (1) Operating appropriations not committed at the end of the financial year shall be deemed to have lapsed. Investment appropriations shall be carried over to the next budget.

(2) Expenditure liquidated but not authorised at the end of the financial year shall be forwarded by the authorising officer to the accounting officer for entry in the accounts.

(3) Payment appropriations opened on a programme and available at the end of the year are carried over to the same programme or, failing that, to a programme with the same objectives. The amount of appropriations thus carried over is included in a provision set aside for this purpose in the budget.

ARTICLE 453- (1) The following are defined as cash transactions
all movements of cash, marketable securities, deposit accounts and current accounts ;
transactions relating to receivables and payables accounts.

(2) Cash transactions are described by nature by the accounting officers of the Collectivité Territoriale in their entirety and without contraction between them.
(3) Expenses and income resulting from the execution of treasury operations are charged to the budgetary accounts.

ARTICLE 454 - (1) The funds of the Collectivité Territoriale are deposited with the Recette Régionale, the Recette Municipale or the Caisse de Dépôt et Consignation.

(2) Funds that are centralised or equalised, as well as loan funds whose management is entrusted to the bodies referred to in Article 497 of this Act, may be deposited in a sub-account of the single Treasury account opened at the Central Bank or at the Caisse de Dépôt et Consignation.

ARTICLE 455 - (1) The Municipal or Regional Receiver is responsible for the collection, custody and handling of the funds and assets of the Territorial Community concerned.

(2) Any person who, without legal authorisation, interferes in the handling of public funds is deemed to be a de facto accountant.

(3) The funds of the Territorial Communities are public funds.

ARTICLE 456 - (1) At the end of each day, the Collector is required to send the Authorising Officer a statement of his cash holdings.

(2) In a Collectivité Territoriale where an accountant of the Treasury performs the duties of the Receiver, the funds of the Collectivité Territoriale are used exclusively to cover its expenses.

ARTICLE 457 - At their request, the State may grant territorial collectivities a cash advance on expected revenues, after receiving the reasoned opinion of the Minister in charge of Territorial Collectivities.

ARTICLE 458 - Unclaimed debts are deemed to be time-barred within a period of four (04) years from the financial year to which they relate and are definitively extinguished in favour of the Territorial Authority.

ARTICLE 459 - (1) An annual commitment plan, produced by the authorising officer, and a cash flow plan, produced by the accounting officer, are attached to the budget of the Territorial Community.

(2) They are updated and present every three (03) months the cash position and budget implementation.

ARTICLE 460- (1) Resources from decentralised cooperation made available to Territorial Communities by international institutions and organisations, as well as by foreign States, are subject to the rules of implementation, accounting, treasury management and control provided for by the present law.

(2) The financing agreements negotiated with development partners and appended to the budget of the Territorial Authority set out the terms and conditions for the implementation of the rules and regime provided for in paragraph 1 above.

ARTICLE 461 - The Local Authorities shall keep three (03) types of accounts:

• • budgetary accounting ;
• • general accounting ;
• • cost accounting.

ARTICLE 462 - (1) The budgetary accounts shall record the revenue and expenditure operations of the budget. They shall be kept, in simple part, by the authorising officer and by the accounting officer, each insofar as he is concerned, in accordance with the budgetary nomenclature of the Territorial Authorities.

(2) The purpose of budgetary accounting is to check that the Executive has complied with the authorisation given by the deliberating body.

(3) Budget revenue and expenditure are accounted for in accordance with the following principles :
revenue is entered in the accounts under the budget for the year in which it is received by a public accountant ;
expenditure is entered in the accounts, successively at the time of commitment and payment, under the budget for the year in which it is committed by the authorising officer and paid by the public accountant;
all expenditure must be charged to the appropriations for the year in question, regardless of the date of the debt.

(4) The authorising officer shall keep subsidiary budgetary accounts for the payment and issue of revenue on the one hand, and subsidiary budgetary accounts for the payment and authorisation of expenditure on the other.

(5) The public accounting officer keeps auxiliary budgetary accounts which provide information on receipts in respect of revenue operations and payments in respect of expenditure. This makes it possible to identify outstanding amounts to be recovered and outstanding amounts to be paid.

(6) However, budgetary expenditure committed and liquidated during the financial year may be paid after the end of the financial year, during an additional period which may not exceed (30) days.

ARTICLE 463 - (1) The general accounts shall record budgetary transactions, cash transactions, transactions with third parties, movements of assets and operating values.

(2) The general accounts of the Collectivité Territoriale are based on the principle of recording rights and obligations. Transactions are entered in the accounts for the financial year to which they relate, regardless of the date of payment or collection.

(3) The general accounts are kept according to the double-entry system. The accounting principles are determined by the sectoral chart of accounts for Local Authorities, established by regulation.

(4) The rules applicable to the general accounts of the Local Authorities are based on State accounting standards. Their purpose is production:

• • the net position table or balance sheet, or a statement summarising the Territorial Authority's financial assets and liabilities;
• • cash flow statement ;
• • the table of the Territorial Authority's financial operations.

ARTICLE 464 - The accounts of the Collectivité Territoriale include the results of budgetary accounting and those of general accounting: they must be regular, accurate and give a true and fair view of the implementation of the budget, changes in the assets of the Collectivité Territoriale and its financial situation.

ARTICLE 465 - Cost accounting, set up by authorising officers, makes it possible to analyse the detailed costs of services rendered or the various programmes and projects undertaken within the framework of the Territorial Community's budget.

ARTICLE 466 - Authorising officers are required to report on the implementation of programmes and projects. They prescribe the execution of the budget.

In this respect, they :

• • record entitlements and settle receipts;
• • commit, settle and authorise expenditure.

ARTICLE 467 - (1) Authorising officers are required to produce an administrative account setting out their management actions and an annual performance report on the programmes.

(2) The annual performance report presents, for each programme, the results obtained compared with the objectives set, the actions developed and the resources used, accompanied by activity and result indicators, as well as an estimate of the costs of the activities and services rendered.

(3) The annual performance report is produced by the programme managers under the authority of the Head of the Executive of the Collectivité Territoriale.

ARTICLE 468- (1) The administrative account shall be adopted by the deliberating body no later than 31st March of the year following the financial year to which it relates. It shall be approved by 30 April of the same year at the latest.

(2) The administrative account and the budget may not be voted during the same session.

(3) The draft budget may not be submitted for discussion to the deliberative body before the latter has voted on the administrative account for the year preceding that in which the draft budget is to be discussed.

(4) The form of the administrative account referred to in paragraph 1 above shall be determined by regulation.

ARTICLE 469 - (1) During the session devoted to the adoption of the administrative account, the deliberating body shall elect a Chairman. The members of the executive body shall attend the debate, but shall withdraw when the vote is taken.

(2) Any decision to adopt the administrative account taken in violation of the provisions of paragraph 1 above shall be null and void.

ARTICLE 470 - The deliberating body may not modify the figures in the administrative account. In the event of a management irregularity, the administrative account shall be rejected. A detailed report is sent by the Chairman of the meeting to the representative of the State, for referral to the competent State services, within a period of seventy-two (72) hours.

ARTICLE 471 - (1) The administrative account adopted by the deliberating body shall be accompanied by the following attachments:

• • the annual performance report ;
• • the minutes of the deliberation session;
• • the vote on the administrative account;
• • a statement of amounts still to be recovered and amounts still to be paid, together with a report setting out the measures planned to bring these amounts under control;
• • the statement of expenditure committed but not settled;
• • the table of the Territorial Authority's financial operations;
• • a report on the implementation of investment projects, justifying the differences between forecasts and actual expenditure for the year in question;
• • the status of equipment and buildings acquired during the implementation of the corresponding budget;
• • the authorising officer's asset management account.

(2) It is approved by the representative of the State and deposited at the headquarters of the Collectivité Territoriale.

(3) The approved administrative account is published on the Territorial Community's electronic site and deposited at its headquarters where it may be consulted. A copy is sent to the Ministers responsible for Finance and Territorial Authorities respectively.

(4) Any inhabitant or taxpayer of the Territorial Community concerned may, at their own expense, request communication of or obtain a copy of all or part of the administrative account and its appendices.

(5) If no reply is received within ten (10) days, any applicant may refer the matter to the representative of the State who shall take action within seventy-two (72) hours.

ARTICLE 472 - Authorising officers of Local Authorities are subject to the same liability regime as authorising officers of the State budget.

ARTICLE 473 - (1) Accountants of Local Authorities are public officers duly entrusted with the accounts and/or responsible for the collection, custody and handling of funds and assets.

(2) They shall render an annual account of the operations related to their management in accordance with the laws and regulations in force.

(3) The form of the accounts referred to in paragraph 1 above and the supporting documents relating thereto shall be determined by regulation.

ARTICLE 474 - (1) Accountants of Local Authorities are public accountants.

(2) The chief accountant is required to produce a management account.

(3) The management account is submitted to the deliberating body at the same time as the administrative account. The two (02) accounts must be in agreement.

ARTICLE 475- (1) Accountants of Local Authorities are personally and financially liable:

• • of the funds and securities in their charge;
• • the recovery of collection orders assumed ;
• • actual payments;
• • the accuracy of their entries.

(2) The accounts of public accountants of Local Authorities shall be judged by the Audit Office.

ARTICLE 476 - The Audit Office shall judge the accounts of persons it declares to be de facto accountants.

ARTICLE 477 - In the event of a transfer during the year, the account is produced by the outgoing Receiver for his management period.

ARTICLE 478 - (1) The Head of the Executive is the authorising officer for the Territorial Community.

(2) He/she may be assisted by a public official with the necessary skills.

ARTICLE 479 - (1) The authorising officer is responsible for the regularity of entries in the accounts.

(2) He/she is responsible for the custody and preservation of the furniture and equipment of the Local Authorities.

(3) He/she keeps stock accounts in accordance with the conditions laid down by the regulations in force.

ARTICLE 480 - The rules governing State accounting are applicable to the accounting of Territorial Communities.

ARTICLE 482 - Jurisdictional control of the accounts of Local Authorities is exercised by the Audit Office, in accordance with the laws and regulations in force.

ARTICLE 483 - (1) Administrative control comprises :

• • Control exercised by State institutions and control bodies;
• • financial and accounting control as defined by the financial regime of the State and other public entities;
• • the internal audit carried out by the Executive of the Local Authority.

(2) An audit of the regularity and performance and management of the Territorial Communities and local public establishments, as well as private entities that have received a subsidy, endorsement or guarantee from the Territorial Community, may be carried out by the specialised services of the State, in accordance with the laws and regulations in force.

(3) The procedures for organising these controls are laid down by regulation.

ARTICLE 484 - When examining the draft budget or the administrative account, the deliberating body exercises control over the implementation of the budget, as well as related programmes and projects.

ARTICLE 485- (1) The deliberating body may set up ad hoc committees on matters relating to the financial management of the Local Authority. The reports of these committees are submitted to the deliberating body for approval.

(2) The deliberating body may refer to the supervisory authority or any other competent department any reprehensible acts that have been observed.

(3) The governing body may rely on the court of auditors to exercise its power of control. To this end, the committee responsible for finance may ask the Court of Audit to carry out any investigation into the management of the departments or bodies that it audits.

ARTICLE 486 - Audits may be carried out at the request of the representative of the State, the governing body or the Executive.