General UAE Legal Questions LawCabinet Resolution No. (40) of 2021 Regarding the Executive Regulations of Federal Decree by Law No. (26) of 2019 Regarding Public Finance

Article (1) Definitions Definitions provided in the Federal Law No (26) of 2019 mentioned shall apply to this Resolution, otherwise, the following words and phrases shall have the meanings assigned to each of them, unless the context otherwise requires: Cash Flow Hedging : Ensuring the availability of sufficient liquidity in anticipation of exposure to variations and fluctuations in cash flows during subsequent financial periods. Financial Circular : The circular issued by the Minister to the Federal Entities specifying the rules, controls, procedures and accounting treatments for the

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Cabinet Resolution of 2021 Regarding the Executive Regulations of Federal Decree by Law of 2…

Article (2) Powers of the Minister 1. The Minister may, if they ascertain that an exceptional or unexpected decline has occurred in the cash revenues expected to be collected in the current fiscal year, submit a memorandum to the Cabinet including an estimation of the percentage of decline and its source and a statement of its causes, along with a proposal for the percentage of reduction in the approved allocations in the current general budget in proportion to the expected percentage of decline, provided that it does not exceed (50%) fifty percent of the approved allocations in the general budget for the current fiscal year. 2. The Minister may, in the memorandum stipulated in Clause (1) of…

Article (3) Cash Flow Hedging 1. The Minister shall monitor the financial position of the Government and the liquidity flows. 2. Cash flow hedging aims to achieve the following: a. Mitigate the negative effects of variations and fluctuations through the existence of pre-established contingency plans to address them; b. Ensure that the Government continues to implement the sustainable development plans approved in its strategic plans within the draft medium-term budget framework or the long-term strategic vision; c. Ensure the government’s continued ability to fulfil its financial obligations without resorting to loans; and d. Develop long-term financial policies that contribute to the govern…

Article (4) Controls and Procedures for Concluding Contracts Upon concluding contracts that entail financial obligations extending beyond the fiscal year into one or more future fiscal years, the Federal Entities shall abide by the following controls: 1. The contracts shall pertain to projects that have been approved within the Medium-Term Fiscal Framework (MTFF); 2. Contract appropriations shall be included in the Medium-Term Fiscal Framework (MTFF); 3. The Federal Entity shall adopt a clear implementation plan that specifies the total expected cost and the financial allocations required to be included in the draft law for the General Budget for each year of project implementation. 4. A fin…

Article (5) Rules for Preparing the Draft Final Account When preparing their draft final account for the completed fiscal year, Federal Entities shall comply with the following basic rules: 1. Submit to the Supreme Audit Institution all documents arising from changes or modifications in the final account data, and attach a copy of the correspondences and related documents to the Ministry; 2. Ensure accuracy in accounting classifications in accordance with the proper Chart of Accounts, and avoid misclassifications intended to conceal any budget overruns or justify transfers between line items; 3. Carry out transfers in a manner that precludes the improper reliance on manual adjustment entries…

Article (6) Rules for Preparing the Consolidated Draft Final Account 1. The Ministry shall prepare the draft Federal Law on the consolidated final account based on the draft fila accounts submitted by the Federal Entities submitted to them and the reports issued by the Supreme Audit Institution, before the expiry of the period specified in the financial Circular. The Draft Law shall include the following electronically prepared documents: a. A draft federal law approving the consolidated final account for the relevant fiscal year. b. Consolidated financial performance summary statement. c. Consolidated financial position summary statement. d. Liquidity summary statement. e. The explanatory m…

Article (7) Disposal of Documents, Records, and Files 1. Federal Entities may dispose of documents, records and files after the lapse of ten years from the date of the issuance of the law approving the consolidated final account. If the Concerned Entity determines that they are no longer needed, and in accordance with the provisions of the Federal Law No. (7) of 2008 Regarding the National Archives, and its executive regulation. 2. Documents, records and files may not be disposed of under any circumstances, even after the expiry of the aforementioned period, if they are the subject of an investigation or an administrative or judicial dispute.

Article (8) Closure of Accounts of a Federal Entity that has been Merged or Dissolved Upon the issuance of a decision to restructure, dissolve, or merge a Federal Entity with another, the Ministry shall invite the concerned entities to a coordination meeting with the aim of achieving the following: 1. Formation of a joint committee of the concerned entities to manage operations. 2. Preparation of a plan to implement the decision, especially with regard to the mechanisms for implementing the budget of each concerned entity for the remaining period of the fiscal year, and the provisions for preparing the final account for each of the concerned Federal Entity. 3. This includes the preparation b…

Article (9) Trust Funds 1. The Federal Entities shall provide the Ministry, upon request, with detailed statements listing the trust funds in their custody, specifying their nature and the names of the beneficiaries the date of establishment, the name and number of the bank account in which they are deposited, and any other information as determined by the Ministry. 2. Instructions concerning the management and governance of trust funds and the mechanisms of disbursement thereof shall be issued by a decision of the Minister.

Article (10) Executive Resolutions The Minister shall issue the Resolutions necessary for the implementation of the provisions of this Resolution.

Article (11) Repeals The referred Cabinet Resolution No. (20) of 2019 shall be repealed. Any provision that contradicts or conflicts with the provisions of this resolution shall be repealed.

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Cabinet Resolution of 2021 Regarding the Executive Regulations of Federal Decree by Law of 2019 Regarding Public Finance 13

Article (12) Resolution Publication and Enforcement This Resolution shall be published in the Official Gazette and shall enter into force from the day following the date of its publication. Mohamed bin Rashid Al Maktoum Prime Minister Issued by Us: On: Ramadan 16,1442 H Corresponding to: April 14, 2021

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