1. National Treasury 1 December 2004
A framework for accountability Improving financial management and financial information
National Treasury
1 December 2004

2. Accountability framework
Accountability clearly assigned
Good information
Sanctions
Follow-up

3. Accountability clearly assigned
PFMA enacted in 2000
Framework legislation
Sets out roles and responsibilities
Between centre and line
Between executive officer and managers
Stipulates reporting requirements
Sets sanctions
Brings public entities into financial management net
Supported by Treasury Regulations
Implemented over 5 years

4. Responsibilities of center
Responsibilities of National Treasury
Developing macro-economic and fiscal framework
Coordinate intergovernmental relations
Coordinate budget process
Manage implementation of budget
Manage and enforce revenue, asset and liability management
Manage Revenue Fund
Determine banking and cash management framework
Implement PFMA

5. Responsibilities of line agency managers
Accounting officers (heads of departments) responsible (threat of sanctions)
Is responsible for effective, efficient, economical and transparent use of resources in accordance with appropriation act
Produces monthly, quarterly and annual financial reports
Ensure effective, efficient and transparent systems of
financial and risk management
and internal control;
appropriate procurement
Must ensure collection of revenue, prevention of irregular, wasteful and fruitless expenditure

6. Responsibilities of executive authority
Must fulfill statutory responsibilities within appropriation
Must consider reports presented by accounting officers
Process to determine accountability when political directive can result in unauthorised expenditure

7. Improved financial information
Revamped classification to improve budget transparency, quality of financial reporting
Programmatic, administrative, economic and functional
Chart of accounts reviewed
Better link between budgeting and accounting information
New economic reporting format
Old line item and economic
GFS 2001, but adapted for cash base
Terminology adapted for SA
Implementation important
Garbage in garbage out
Worked with line agencies to recode
Training programme

8. Sanctions and follow-up
Constitution, PFMA provides framework
Role of parliament
Is accountability in place?
Enforcement and follow-up