Diplomatic Representations’ Expenditures and Missions’ Funds Under Scrutiny
The Ministry of Finance and the Ministry of Foreign Affairs have introduced a new framework governing the transfer and monitoring of public funds allocated to Algerian embassies and consulates abroad. A joint decree, recently published in the Official Gazette, establishes detailed accounting procedures aimed at strengthening financial oversight, transparency, and accountability in the management of state funds overseas.
The new regulations create a comprehensive mechanism to track every dinar transferred to diplomatic and consular representations through a rigorous administrative and accounting process. The process begins with the preparation of financial documentation by the Ministry of Foreign Affairs, passes through multiple stages of authorization and control, and concludes with accounting reconciliation and expenditure verification.
Accordingly, the accounting procedures governing the transfer of financial resources required to implement budget appropriations placed at the disposal of heads of Algerian diplomatic and consular missions abroad have been defined through this joint decree.
The decree aims to regulate the accounting and financial management of funds allocated to Algerian embassies and consulates abroad by defining the various stages and procedures preceding financial transfers, as well as the mechanisms for monitoring and accounting settlement. The objective is to ensure that appropriations are used in accordance with applicable regulations while enabling close supervision of expenditures incurred by diplomatic and consular missions.
Under the decree, once budget appropriations have been allocated and the necessary accounting documents prepared by the Ministry of Foreign Affairs, the responsible financial officer must issue a formal authorization for the transfer of funds corresponding to the relevant budget allocation. The Ministry’s authorizing officer then forwards the transfer file to the designated public accountant, accompanied by the original budget allocation documents for each activity, the transfer authorization decision, and a detailed breakdown of the amounts assigned to each diplomatic or consular mission by expenditure category.
The decree stipulates that funds transferred to diplomatic and consular missions shall be financed from the Public Treasury and recorded under Category Four, which is dedicated to third-party accounts. Upon receiving the transfer documents from the competent accountant, the Central Treasury Accounting Agent is responsible for settling the transfers in favor of the beneficiaries in accordance with the applicable legislation and regulations.
To reinforce financial control of transferred funds, the Ministry of Foreign Affairs is tasked with monitoring the liquidity allocated to diplomatic and consular missions through periodic financial reports submitted by each mission. Prepared according to a standardized template attached to the decree, these reports enable authorities to track the use of transferred funds and verify compliance with approved budget allocations.
The text also details the accounting procedures governing expenditure settlement. Authorizing officers at the Ministry of Foreign Affairs must submit settlement orders to the designated accountant together with standardized semi-annual financial statements classified by expenditure category and certified by the competent authorities. Based on these documents, the accountant records and reconciles expenditures according to their nature, distinguishing between operating expenses under Category Six and fixed-asset investments under Category Two.
To facilitate oversight, the decree introduces two standardized financial monitoring forms. The first form records payment orders accepted by diplomatic and consular missions during the fiscal year. It contains detailed information on the authorizing officer, budget program, activity, budget line, and chapter, as well as data on initial appropriations, transferred or revised appropriations, available payment credits, expenditures incurred during each semester, cumulative spending, and remaining balances. This document provides the Ministry of Foreign Affairs and the Treasury with a comprehensive overview of budget execution at each diplomatic or consular mission.
The second form concerns settled payment orders and is compiled using data submitted by diplomatic and consular missions. It includes information on appropriations, expenditures, and outstanding balances during the various reporting periods, serving as a key reference for periodic accounting reconciliation and verification of expenditures’ compliance with authorized budget allocations.
The decree further states that the detailed technical and detailed procedures for recording and processing these transactions will be defined in a future accounting directive issued by the Director General of the Treasury and Accounting. The directive is expected to standardize accounting practices across all institutions involved in the management of diplomatic mission funds.
By establishing a unified accounting framework for the transfer of public funds to Algerian embassies and consulates abroad, the new regulations enhance the traceability of public funds from their allocation by the Treasury to their final expenditure and accounting settlement. The reform represents a significant step toward strengthening financial governance, improving expenditure control, and increasing transparency in the management of resources allocated to Algeria’s diplomatic and consular network abroad.
