1. PROGRESS REPORT ON IMPLEMENTATION OF THE PUBLIC FINANCE MANAGEMENT ACT
Freeman Nomvalo
Accountant-General
29 August 2007
National Treasury

2. CONTENT Introduction Internal Audit & Audit Committees Risk Management
Internal Controls
Asset Management
Supply Chain Management
Performance Information
Other PFMA related initiatives
Actual Expenditure for 2006/2007
Conclusion

3. INTRODUCTION
Implementation of PFMA contributed towards enhancement of financial management and accountability
Ongoing PFMA monitoring processes and assessment of audit reports of Auditor-General
Certain disciplines of financial management still pose challenges

4. INTERNAL AUDIT FUNCTION
Survey conducted on the functioning of internal audit activities
Several vacancies still exist within internal audit units
Position of chief audit executive not at appropriate level
Hosted the third public sector internal audit indaba
External service provider appointed to conduct quality assurance reviews

5. RISK MANAGEMENT
Risk Management tool rolled out from August 2006 has been enhanced.
Risk Management training to various public sector officials
Risk Management forum established proves to be successful in generating interest
Hosted a risk management symposium for all three spheres of government

6. INTERNAL CONTROLS
Proper and effective internal controls are critical for management to meet PFMA requirements
Progress with finalisation of internal control framework slower than expected.
Outcomes of 2006/2007 audit process will be used to update the framework
Further enhancement of the capability model in accordance with the South African public sector environment

7. ASSET MANAGEMENT
Departmental asset management plans developed and implemented since 2005/2006
Ongoing engagement with departments to address and resolve problems
High turnover of experienced and trained asset management personnel
Reconciliation between asset registers and financial reports remain a problem
Provide for additional reports and information on existing systems

8. SUPPLY CHAIN MANAGEMENT
Ongoing engagement with all organs of state regarding implementation of supply chain management reforms
All non-transversal contracts devolved to accounting officers
In process to align Preferential Procurement Policy Framework Act with the Broad-based Black Economic Empowerment Act
Progress with implementation of strategic sourcing

9. PERFORMANCE INFORMATION
Framework for managing performance information
Improved accountability and transparency through timely, accessible and accurate information
Facilitate easy auditing of performance information by auditors
Identify performance indicators for tracking service delivery against pre-determined indicators
Guides and training manuals to support implementation of framework

10. OTHER PFMA RELATED INITIATIVES
Integrated financial management system
Implementation of generally recognised accounting practice
Early warning report
Monthly management reports
Provincial budget preparation and implementation
Financial distribution and capital asset policies
Training outside public practice (TOPP) programme

11. ACTUAL EXPENDITURE FOR 2006/2007
FINANCIAL YEAR FROM NATIONAL REVENUE FUND 1) 1)
Unaudited figures

12. ACTUAL EXPENDITURE FOR 2006/2007
FINANCIAL YEAR FROM NATIONAL REVENUE FUND

13. ACTUAL EXPENDITURE FOR 2006/2007
FINANCIAL YEAR FROM NATIONAL REVENUE FUND

14. ACTUAL EXPENDITURE FOR 2006/2007
FINANCIAL YEAR FROM NATIONAL REVENUE FUND

15. CONCLUSION
Initiatives are consistent with National Treasury’s responsibilities i.t.o. section 6(2)(d) of the PFMA
Committed to exercise its enforcement and oversight responsibilities
Accounting Officers / Authorities remain the main role-players to promote and ensure effective financial management within their institutions