Public accounts of Gibraltar
The public accounts of Gibraltar are audited by the GAO on behalf of the Principal Auditor in accordance with the provisions of Section 74(1) of the Gibraltar Constitution Order 2006. These comprise the statements of accounts as specified in Section 52 of the Public Finance (Control and Audit) Act.
Section 52 of the Public Finance (Control and Audit) Act requires the Accountant General within a period of 9 months, or such longer period as shall be allowed, after the close of each financial year to sign and transmit to the Principal Auditor accounts showing fully the financial position of the Government of Gibraltar at the end of such financial year.
The Government of Gibraltar’s current policy is to prepare the public accounts on the cash receipts and disbursements basis. On this basis revenue is recognised when received rather than earned, and expenses are recognised when paid rather than when incurred.
The statement of Assets and Liabilities, prepared as part of the public accounts of Gibraltar, does not reflect a large number of government assets, as the government accounting system is maintained on a cash basis. Assets not shown include government housing and buildings, vehicles, debtors, as well as shareholding in government-owned companies and joint venture companies. Liabilities, such as sundry creditors are similarly not shown in the Statement. The statement of Assets and Liabilities therefore represents only year-end cash assets and liabilities. A note to this effect appears in the statement of Assets and Liabilities in the Annual Accounts.
Accounts of Statutory Corporations, Authorities and Agencies
The accounts of statutory corporations, authorities and agencies are audited by the GAO on behalf of the Principal Auditor in accordance with the provisions of their respective laws.
The current policy of statutory corporations, authorities and agencies is to prepare the accounts on the cash receipts and disbursements basis. On this basis revenue is recognised when received rather than earned, and expenses are recognised when paid rather than when incurred.
Accounts of Corporate and Similar Bodies
Part IX of the Public Finance (Control and Audit) Act empowers the Principal Auditor to audit the accounts of every person, corporate or similar body that is in receipt of a contribution from public moneys; or in respect of whom the Government has given a guarantee to any person; or whose operations may impose or create a liability on any public moneys – not being a body corporate whose accounts the Principal Auditor is for the time being specifically required or empowered to audit and report on under any other law.
Liquidators’ Accounts, etc
The Principal Auditor has a statutory obligation to examine Liquidators’ accounts in respect of companies in compulsory liquidation and official trustee accounts of debtors adjudged bankrupt where the winding up commenced prior to 1 November 2014, the date of the coming into force of the Insolvency Act 2011.