1. Overview Public Finance Management Act and Treasury Regulations
National Treasury: Office of the Accountant-General

2. HIERACHY OF THE LEGISLATIVE FRAMEWORK
Not forming part of the legislative framework

3. DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONS (CHAPTER 5)
Appointment of Accounting Officer (AO) Sec 36
Employment contract of the AO must be in writing, where possible include performance standards
The provisions of sections 38 to 42 of the PFMA must form part of the contract
When AO is absent or unable to perform the functions, the functions must be performed by the official acting

4. DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONS (CHAPTER 5)……….CONTINUES
General responsibilities of AO – Sec 38
Effective, efficient & transparent systems of financial and risk management & internal control
System of internal audit under the control and direction of the audit committee
A procurement system – fair, equitable, transparent, competitive & cost effective
Effective, efficient, economical and transparent use of resources
Effective steps to prevent UIF
settle all contractual obligations and pay all money owing, including intergovernmental claims with the prescribed or agreed period

5. DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONS (Chapter 5)……….CONTINUES
Report unauthorized, irregular, fruitless/wasteful expenditure
Effective and appropriate disciplinary steps against officials who:
contravenes or fails to comply with the PFMA;
commits an act which undermines the financial management and internal control system;
makes or permits UIF
Certificate when transferring funds to institutions
Comply and ensure compliance by the department with the provisions of PFMA
May not commit a department to any liability for which money has not been appropriated

6. DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONS (Chapter 5)……….CONTINUES
AO reporting responsibilities – Sec 40
Keep full and proper records of the financial affairs
Prepare financial statements in accordance (GRAP)
Submit financial statements within 2 months after the end of the financial year to AG and relevant treasury
Submit the following to the relevant treasury within 5 months of the end of the financial year:
annual report on activities of the department;
audited financial statements for that financial year; and
AG report on the AFS
Each year provide relevant treasury with a breakdown per month of anticipated revenue and expenditure

7. DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONS (Chapter 5)……….CONTINUES
Each month submit information on actual revenue and expenditure for the preceding month
Within 15 days of the end of the month submit the following to the relevant treasury and EA:
information for that month;
projection of expected expenditure and revenue collection for the remainder of the financial year; and
explanation of material variances

8. REPORTING - ACCOUNTING OFFICER
Submit approved Annual Financial Statements (AFS) and report of the accounting officer/authority to relevant treasury and Auditor-General (for auditing).
Section
40 (1)(c)  
31/05 (Final date)
(Within 2 months after year-end)
Submission of Annual Report , AFS & audit report to relevant treasury and the executive authority
40(1)(d)/
31/08
(Within 5 months after year-end)
The annual report and annual financial statements must:
- faily present the state of affairs, its business, its financial results , its performance against predetermined objectives and its financial position
-any material losses through criminal conduct & irregular /fruitless & wasteful exp
-any criminal or disciplinary steps taken as a consequence of such losses -any losses recovered or written off
Any financial assistance received
40(1)(d) & 40(3)
The Accounting officer must submit the annual report and AFS for tabling in Parliament or the relevant legislature,
55(3)

9. DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONS (Chapter 5)……….CONTINUES
AO responsibilities when assets and liabilities are transferred – Sec 42
When assets or liabilities are transferred between departments or following a reorganization of functions, the AO of transferring departments must:
draw up an inventory of such assets or liabilities; and
provide AO of receiving department with substantiating records, including personal records of staff transferred

10. DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONS (Chapter 5)……….CONTINUES
Virements and shifting of funds – Sec 43
Virements - section 43 of the PFMA – sets 2 two conditions that must exist before funds can be moved
mutual existence of a saving/underspending in one programme and over spending in another; and
8% of amounts appropriated in that programme
Shifting of funds is moving of funds between different economic classification within the same programme

11. ROLL-OVERS
Amounts appropriated – not spent in a financial year – rolled over to the next financial year with approval of the relevant treasury
Unspent funds for the following economic classification may be rolled over only:
finalize projects / acquisitions still in progress - payment for Capital Assets
only for purposes originally voted for – transfers and subsidies
compensation of employees may not be rolled over- current payments
Maximum of 5% for goods and services may be rolled over – current payments
Funds for a specific purpose ,ay not be rolled over for more than one financial year – unless approved in advance by the relevant treasury

12. EXECUTIVE AUTHORITIES - CHAPTER 7
Financial responsibilities
Ensure that departments spend within limits
Must consider the monthly reports
Any directive by an executive authority of a department to the AO of a department having financial implications must be in writing
Tabling of Annual Reports in the National Assembly/Legislature

13. DELEGATIONS OF AUTHORITY IN TERMS OF THE PFMA
SECTION 44, 56 OF THE PFMA:
The AO may in writing delegate any of the powers entrusted or delegated to the them in terms of the PFMA to an employee; or
Instruct an employee in that institution to perform any of the duties assigned to the accounting authority
A delegation or instruction to an official is subject to:
Limitations and conditions as may be imposed by the AO;
May either be to a specific individual or to a holder of a specific post;
Does not divest the AO of the responsibility concerning the exercise of the delegated power or the performance of the assigned duty.
The AO may confirm, vary or revoke any decision taken by an employee

14. SECTION 79 AND 92 OF THE PFMA Responsibility of the Minister
Responsibility of the relevant DDG
Responsibility of the AO/AA or official
EXEMPTIONS
(sec 92)
Specific provision of the PFMA
DEVIATIONS
(sec 79)
Treasury Regulations
Instruction
NON-COMPLIANCE
If not granted & continue
Include in a Gazette
Notify the Auditor-General
Audit Report
Annual Report

15. BORROWINGS - CHAPTER 8 Approval for Loans, Guarantees – Sec 66
National Departments - Minister of Finance or Cabinet member acting with concurrence of the Minister
4th E = equity

16. FINANCIAL MISCONDUCT – CHAPTER 10
NB!!! NOT all non-compliance with the PFMA leads to Financial Misconduct
AO fails to comply with requirements of sections 38 to 42 makes or permits unauthorized, irregular, fruitless/wasteful expenditure
Officials of department– wilfully or negligently fails to exercise powers or duties assigned in terms of sections 44 (Delegations)
Treasury officials – wilfully or negligently fails to exercise powers or duties in terms of sections 10 or 20
4th E = equity

17. INVESTIGATION OF FINANCIAL MISCONDUCT
Grounds for dismissal, suspension or other sanction
Official – AO to ensure investigation – disciplinary proceedings i.t.o prescripts
Investigation within 30 days of discovery
AO – relevant EA to initiate investigation
Relevant treasury – if aware may perform the investigation

18. CRIMINAL PROCEEDINGS
AO to advise EA, relevant treasury and AG of any criminal charges laid against officials
Should AO fail to lay criminal charges – relevant treasury may direct institution to do so
AO – may be found guilty of financial misconduct and liable on conviction to a fine or imprisonment not exceeding five years

19. REPORTING OF FINANCIAL MISCONDUCT
After disciplinary proceedings – AO of a department report specific information to executive authority, Department of Public Service and Administration and Public Service Commission on the outcome
AO of Departments – inform EA, relevant treasury, DPSA and PSC – outcome of criminal proceedings

20. KEY PROVISIONS IN TR Expenditure Management – TR 8
Asset Management – TR 10
Supply Chain Management – TR 16A
Gifts, donations and sponsorships – TR 21

21. Governance Monitoring & Compliance Office of the Accountant-General
THANK YOU
Moipone Ramoipone
Governance Monitoring & Compliance
Office of the Accountant-General
National Treasury
Tel: