PUBLIC FINANCE MANAGEMENT ACT - PowerPoint PPT Presentation

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PUBLIC FINANCE MANAGEMENT ACT

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Title: PUBLIC FINANCE MANAGEMENT ACT


1
PUBLIC FINANCE MANAGEMENT ACT
AND
  • TREASURY REGULATIONS

2
KEY OBJECTIVES OF THE PFMA
  • Modernise the system of financial management
  • Enable public sector managers to manage, but at
    the same time to be accountable
  • Ensure timely provision of quality information
  • To eliminate waste and corruption in the use of
    public assets

3
NATIONAL TREASURY SEC 6 (1) (2)
  • Promote and enforce transparency and effective
    management in respect of revenue, expenditure,
    assets and liabilities
  • Must prescribe uniform Treasury norms and
    standards
  • Must enforce the PFMA and any prescribed norms
    and standards
  • May assist departments in building capacity for
    efficient, effective and transparent financial
    management
  • May investigate any system of financial
    management and internal control in any department

4
RESPONSIBILITIES OF ACCOUNTING OFFICERS (SEC38)
  • - Must ensure that the department has and
    maintains
  • Effective and efficient systems of financial and
    risk management and internal control
  • A system of internal audit under control of an
    audit committee
  • An appropriate procurement and provisioning
    system which is fair, equitable, transparent and
    cost effective
  • - Responsible for the effective, efficient,
    economical and transparent use of resources of
    the department
  • - Must take effective and appropriate steps to
    prevent unauthorized, irregular and fruitless
    and wasteful expenditure and losses resulting
    from criminal conduct
  • - Must take effective and appropriate
    disciplinary steps against any official who
  • Commits an act which undermines the financial
    management and internal control systems
  • Makes or permits an unauthorized, irregular or
    fruitless and wasteful expenditure
  • - Delegate in writing any powers or duties to an
    official in the department

5
RESPONSIBILITIES OF OTHER OFFICIALS (SEC45)
  • - Must ensure that the system of financial
    management and internal control established for
    that department is carried out
  • - Is responsible for the effective and
    efficient use of financial and other
    resources
  • - Must take effective and appropriate steps to
    prevent unauthorized, irregular and fruitless
    and wasteful expenditure
  • - Is responsible for the management, including
    safeguarding of the assets within that
    officials responsibility

6
FINANCIAL MISCONDUCT
  • - An accounting officer commits an act of
    financial misconduct if willfully or
    negligently fails to comply with a requirement
    of sec 38
  • - An official of a department to whom a power or
    duty is assigned in terms of section 44 commits
    an act of financial misconduct if willfully or
    negligently fails to exercise that power or
    perform that duty
  • - An official of a treasury to whom a power or
    duty is assigned in terms of section 10
    commits an act of financial misconduct if
    willfully or negligently fails to exercise that
    power or perform that duty
  • - An accounting officer is guilty of an offence
    and liable on conviction to a fine or to
    imprisonment for a period not exceeding five
    years, if that accounting officer willfully or
    in a grossly negligent way fails to comply with
    a provision of section 38

7
TREASURY REGULATIONS
  • Chief Financial Officer (Chapter 2)
  • Establish an audit committee (Chapter 3)
  • Establish an internal audit unit (Chapter 3)
  • Accounting officer must facilitate regular risk
    assessments (Chapter 3)
  • Develop and implement a fraud prevention plan
    (Chapter 3)
  • Revenue management (Chapter 7)
  • Expenditure management (Chapter 8)
  • Asset management (Chapter 10)
  • Banking and cash management framework (Chapter 15)

8
PROCUREMENT SYSTEM
  • - Accounting Officer must ensure that his
    department has and maintains an appropriate
    procurement and provisioning system (Sec 38)
  • - Cabinet resolved that national provincial
    tender boards should be phased out.
  • - Accounting Officers must accept
    responsibility and accountability for AD HOC
    tenders
  • - Accounting Officer must submit procurement
    procedures to national treasury for
    accreditation
  • - Preferential Procurement Policy Framework Act
    (no 5 of 2000) requires that criteria to be
    applied during evaluation and adjudication
    must form part of tender documents.
  • - Procurement reforms aims to strengthen
    accountability, ensure a fair and open system
    and to prevent corruption

9
DEPARTMENTAL PFMA IMPLEMENTATION PLANS
  • Submission date 31 August 2000
  • Appointment of chief financial officer
  • Delegation of powers and assignment of duties
  • Establishment of internal audit function
  • Risk assessment
  • Review of departmental prescripts (procedures and
    processes)
  • Training of managers on generic financial
    management responsibilities
  • Development of strategic plans (2002/3)
  • Compliance with reporting standards (2000/2001)
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