PART 1: Definitions, application and date of commencement 1 1. General definitions, application and date of commencement 3 1.1 General definitions 3 1.2 Application 3 1.
PART 2: Management arrangements 5 2. Corporate management 7 2.1 Chief financial officer 7 3. Internal control 8 3.1 Audit committees 8 3.2 Internal controls and internal audit 9 4. Financial misconduct 10 4.1 Investigation of alleged financial misconduct 10 4.2 Criminal proceedings 10 4.
PART 3: Planning and budgeting 13 5. Strategic planning 15 5.1 Date of implementation 15 5.2 Strategic plans 15 5.3 Evaluation of performance 15 6. Budgeting and related matters 16 6.1 Annual budget circular 16 6.2 Formats of the annual budget 16 6.4 Rollovers 16 6.5 Transfer of functions 17 6.
PART 4: Revenue and expenditure management 19 7. Revenue management 21 7.1 Application 21 7.2 Responsibility for revenue management 21 7.3 Services rendered by the state 21 8. Expenditure management 22 8.1 Responsibility of the accounting officer 22 8.2 Approval of expenditure 22 8.3 Personnel costs 22 8.4 Transfers and grants 23 8.5 Charging of expenditure against a particular vote or main division of a vote 23 9. Unauthorised, irregular, fruitless and wasteful expenditure 24 9.
PART 5: Asset and liability management 25 10. Asset management 27 10.1 Responsibility for asset management 27 10.2 Disposal and letting of assets 27 10.3 Assets accruing to the state by operation of any law 27 11. Management of debtors 28 11.1 Application 28 11.2 Responsibility for the management of debtors 28 11.3 Recovery of debts by instalments 28 11.4 Writing off of debts owing to the state 28 11.5 Interest payable on debts to the state 28 12. Management of losses and claims 29 12.1 General 29 12.2 Claims against the state through acts or omissions 29 12.3 Claims by the state against other persons 30 12.4 Claims by officials against the state 30 12.5 Losses or damages through criminal acts or omissions 30 12.6 Losses and damages through vis major and other unavoidable causes 30 12.7 Recovery of losses and damages 30 13. Loans, guarantees and other commitments 31 13.1 General 31 13.2 Provinces 31 14. Money and property held in trust 32 14.1 General 32 14.2 Responsibility for trust money and property 32 14.3 Trust money must be kept in a trust account 32 14.
PART 6: Frameworks 33 15. Banking, cash management and investment 35 15.1 Control of the national and provincial revenue funds 35 15.2 Bank account configuration 35 15.3 Deposits into the revenue funds 35 15.4 Responsibilities of the South African Revenue Service 36 15.5 Responsibilities of departments 36 15.6 Withdrawals from and investments in revenue funds 36 15.7 Requisitioning of funds by departments 36 15.8 Surrender of voted surplus funds 36 15.9 Accounting and reporting 37 15.10 Banking and cash management 37 15.11 Private money, private bank accounts and cashing private cheques 38 15.12 Warrant vouchers, cheques and electronic payments 38 16. Public-private partnerships 39 16.1 Definitions 39 16.2 Exclusive competency of accounting officers 40 16.3 Treasury approval 40 16.4 Feasibility study 40 16.5 Submission to obtain treasury approval 41 16.6 Procurement 41 16.7 Contracting public-private partnership agreements 41 16.8 Management of public-private partnership agreements 42 16.9 Amendment of public-private partnership agreements 42 16.10 Certain agreements not binding on the state 42 16.11 Exemptions 42 16.
PART 7: Accounting and reporting requirements 43 17. Basic accounting records and related issues 45 17.1 Use of clearing and suspense accounts 45 17.2 Availability of financial information 45 17.3 Changes to financial systems 46 18. Monthly and annual reports 47 18.1 Monthly reports 47 18.2 Annual financial statements 47 18.3 Contents of annual reports for the financial year ending 31 March 2002 48 18.
PART 8: Miscellaneous 49 19. Trading entities 51 19.1 Definitions 51 19.2 General 51 19.3 Policy and reporting framework 51 19.4 Establishment 51 19.5 Capital requirements 51 19.6 Disposal of assets 52 19.7 Surrender of surplus funds 52 19.8 Financial reporting 52 20. Commissions and Committees of Inquiry 53 20.1 Definitions 53 20.2 Remuneration of members 53 20.3 Services rendered by members during private time 53 21. Gifts, donations and sponsorships 55 21.1 Granting of gifts, donations and sponsorships by the state 55 21.2 Acceptance of gifts, donations and sponsorships to the state 55 21.3 Gifts or donations of immovable property by or to the state 55 21.4 Identity of donors and sponsors 55 22. Payments, refunds and remissions as an act of grace 57 22.1 General 57 23. Government payroll deductions 58 23.1 Definitions 58 23.3 Deduction codes 59 23.4 Contravention of regulations and penalties 60 23.
PART 9: Public Entities63 24. General definitions 65 24.1 General definitions 65 25. Application and listing 66 25.1 Application 66 25.2 Listing 66 26. Responsibilities of designated accounting officers 67 26.1 Responsibilities over Schedule 3A and 3C public entities 67 27. Internal control and corporate management 68 27.1 Audit committees 68 27.2 Internal controls and internal audit 68 27.3 Chief financial officers 69 28. Annual financial statements 70 28.1 Financial statements 70 29. Corporate planning, shareholder's compacts and annual budgets 71 29.1 Corporate plans 71 29.2 Shareholder's compact 72 29.3 Evaluation of performance 72 29.4 Annual budgets 72 30. Strategic planning 73 30.1 Strategic plan 73 30.2 Evaluation of performance 73 31. Cash, banking and investment management 74 31.1 Cash management 74 31.2 Banking framework 74 31.3 Investment policy 75 32. Borrowings 76 32.1 Borrowing 76 33. Financial misconduct 77 33.1 Investigation of alleged financial misconduct 77 33.2 Criminal proceedings 77 33.
PART 10: Repeal of regulations 79 34. Repeal of regulations 81 34.
"official" means an employee contemplated in section 1 of the Public Service Act, 1994, read with section 1 of the Public Service Amendment Act (Act 13 of 1996); and includes a magistrate contemplated in section 1 of the Magistrates Act (Act 90 of 1993) and an employee of a constitutional institution.
to all public entities listed in Schedules 3A and 3C, but only to the extent as indicated in paragraph 6.1.
to all public entities listed in Schedules 2, 3B and 3D, but only to the extent as indicated in paragraph 6.1.
to the South African Revenue Service, but only to the extent as indicated in paragraphs 6.1.2 and 15.4 and regulations 24 to 28 and 30 to 33.
These Treasury Regulations take effect from 9 April 2001, unless otherwise indicated in the text.
Unless directed otherwise by the relevant treasury, each institution must have a chief financial officer serving on the senior management team.
The chief financial officer is directly accountable to the accounting officer.
Without limiting the right of the accounting officer to assign specific responsibilities, the general responsibility of the chief financial officer is to assist the accounting officer in discharging the duties prescribed in Part 2 of Chapter 5 of the Act and the annual Division of Revenue Act. These duties relate to the effective financial management of the institution; the exercise of sound budgeting and budgetary control practices; the operation of internal controls and the timely production of financial reports.
The relevant treasury must inform the Auditor-General by no later than 30 June 2001 of any determination to share audit committees between departments.
In the case of a non-shared audit committee, the accounting officer of an institution must appoint audit committee members in consultation with the relevant executive authority.
In the case of a shared audit committee, the head of the relevant treasury must appoint audit committee members after consultation with the relevant executive authorities.
The chairperson of an audit committee may not be a political office bearer.
Audit committees must be constituted so as to ensure their independence.
Members of an audit committee who have been appointed from outside the public service pursuant to section 77(a)(i) of the Act must have appropriate experience, be appointed on contract and be remunerated in accordance with paragraph 20.2.2 of these regulations. Should it be deemed necessary, such members may be remunerated taking into account tariffs determined by the South African Institute of Chartered Accountants in consultation with the Auditor-General as provided for in paragraph 20.2.3.
The relevant executive authority has to concur with any premature termination of the services of a person serving on an audit committee.
An audit committee must establish an audit charter to guide the audit approach, as well as its operating procedures, which must spell out the rules that govern the audit relationship.
An audit committee must report and make recommendations to the accounting officer, but the accounting offic er retains responsibility for implementing such recommendations.
the quality of in year management and monthly reports submitted in terms of the Act and the Division of Revenue Act; and its evaluation of the annual financial statements.
Should a report to an audit committee, whether from the internal audit unit or any other source, implicate the accounting officer in fraud, corruption or gross negligence, the chairperson of the audit committee must promptly report this to the relevant executive authority.
An audit committee may communicate any concerns it deems necessary to the executive authority, the relevant treasury and the Auditor-General.
The accounting officer must facilitate a risk assessment to determine the material risks to which the institution may be exposed and to evaluate the strategy for managing these risks. Such a strategy must include a fraud prevention plan. The strategy must be used to direct internal audit effort and priority, and to determine the skills required to manage these risks.
The accounting officer must provide a certificate to the relevant treasury by 30 June 2001 indicating that the risk assessment has been completed and that the fraud prevention plan is fully operational.
Accounting officers must establish internal audit units for their institutions in accordance with the policy determined in terms of paragraph 3.2.4.
The relevant treasury must inform the Auditor-General by no later than 30 June 2001 of any determination to share internal audit units between departments.
An internal audit unit may be partly or wholly contracted to an external organisation with specialist audit expertise, provided that its selection is in accordance with the relevant government's competitive tendering procedures.
Internal audit must be conducted in accordance with the standards set by the Institute of Internal Auditors.
operating procedures, with management inputs, to guide the audit relationship; and a quarterly report to the audit committee detailing its performance against the annual internal audit plan, to allow effective monitoring and possible intervention.
An internal audit unit must assess the operational procedure and monitoring mechanisms over all transfers made and received, including transfers in terms of the annual Division of Revenue Act.
An internal audit unit must be independent, with no limitation on its access to information.
If an official is alleged to have committed financial misconduct, the accounting officer of the institution must ensure that disciplinary proceedings are carried out in accordance with the relevant prescripts.
The accounting officer must ensure that disciplinary proceedings are instituted within 30 days.
If an accounting officer is alleged to have committed financial misconduct, the relevant treasury, as soon as it becomes aware of the alleged misconduct, must ensure that the relevant executive authority and/or the Department of Public Service and Administration initiates appropriate disciplinary proceedings against the accounting officer.
direct that an official other than an employee of the institution conducts the investigation; or issue any reasonable requirement regarding the way in which the investigation should be performed.
The accounting officer must advise the executive authority, relevant treasury and the Auditor-General of any criminal charges it has laid against any person in terms of section 86 of the Act.
The relevant treasury may direct an institution to lay criminal charges against any person should an accounting officer fail to take appropriate action.
any sanction imposed on the official; and any further action to be taken against the official, including criminal charges or civil proceedings.
The institution must inform the executive authority, the relevant treasury, the Department of Public Service and Administration and the Public Service Commission of the outcome of any criminal proceedings instituted against any person for financial misconduct in terms of section 86 of the Act.
the names and ranks of officials involved; and the sanctions and any further actions taken against these officials.
The schedule mentioned in paragraph 4.3.3 must be accompanied by a report which refers to any changes made to the institution's systems of financial and risk management as a result of any investigation.
The accounting officer of an institution must prepare a strategic plan for the MTEF period commencing 1 April 2002 for approval by the relevant executive authority.
The approved strategic plan must be tabled in Parliament or the relevant provincial legislature within 15 working days after the Minister or relevant MEC for finance has tabled the annual budget.
include details of proposed information technology acquisition or expansion in reference to an information technology plan that supports the information plan; and for departments, include the requirements of Chapter 1, Part III B of the Public Service Regulations, 2001.
The strategic plan must form the basis for the annual reports of accounting officers as required by sections 40(1)(d) and (e) of the Act.
The accounting officer of an institution must establish procedures for quarterly reporting to the executive authority to facilitate effective performance monitoring, evaluation and corrective action.
The accounting officer of a department must comply with any annual budget circulars issued by the relevant treasury. Budget circulars issued by provincial treasuries must be consistent with any budget circular issued by the National Treasury to provincial treasuries.
The accounting officer of a constitutional institution or the accounting authority of a public entity who receives transfer payments appropriated by vote must provide such information as may be required by the accounting officer responsible for the vote for the purposes of complying with a budget circular. A budget submission by such an institution or public entity must be made through the accounting officer of the department responsible for transfer payments to that institution or public entity.
An accounting officer of a budget vote must ensure that the budget submission for that vote includes appropriate supporting information in respect of institutions and public entities receiving transfer payments on that vote.
The annual budget documentation, as presented to Parliament or a provincial legislature, must conform to such formats as may be published by the National Treasury by notice in the national Government Gazette.
new transfers may not be introduced without the approval of the relevant treasury; and allocations earmarked by the relevant treasury for a specific purpose (excluding personnel expenditure) may not be used for other purposes, except with its approval.
Funds appropriated but not spent in a particular financial year may be rolled over to a subsequent year subject to approval of the relevant treasury.
Capital expenditure: Unspent funds on capital expenditure may only be rolled over to finalise projects still in progress.
Transfer payments: Savings on transfer payments may not be rolled over for purposes other than originally voted for.
Current expenditure: A maximum of five per cent of a department's non-personnel current expenditure may be rolled over.
a disbursement schedule indicating the month(s) in which the expenditure is expected to be incurred.
Where a function is to be transferred between votes during a financial year, the relevant treasury must be consulted in advance, to facilitate any request for the resulting transfer of funds voted for that function in terms of section 33 of the Act. In the absence of agreement between the affected departments on the amount of funds to be transferred, the relevant treasury will determine the funds to be shifted.
Should the Minister of Public Service and Administration or a Premier of a province make a determination regarding the transfer of a function in terms of the Public Service Act, 1994, that determination must accompany a request for the transfer of funds as per paragraph 6.5.1. Should the Minister of Public Service and Administration or a Premier approve a function transfer after the finalisation of the adjustments estimates, it must be dealt with on a recoverable basis.
Before seeking formal approval from the Minister of Public Service and Administration or the Premier of a province for any transfer of functions to another sphere of government, the transferring accounting officer must first seek the approval of the relevant treasury or treasuries on any funding arrangements.
The transfer of functions to municipalities must be dealt with in terms of the annual Division of Revenue Act.
tariff adjustments and price increases; and extensions of existing services and the creation of new services that are not unforeseeable and unavoidable.
The department requesting additional funds through an adjustments budget must submit a memorandum to the relevant treasury, the Cabinet/EXCO Secretariat and any treasury committee of the Cabinet/EXCO, on a date determined by the relevant treasury.
Where a national adjustments budget allocates funds to a province, the relevant provincial treasury must table an adjustments budget within 30 days of the tabling of the national adjustments budget, or within such longer period as the National Treasury may approve.
This regulation applies to the identification, collection, recording and safeguarding of all revenue for which an institution is responsible.
The accounting officer of an institution must manage revenue efficiently and effectively by developing and implementing appropriate processes that provide for the identification, collection, safeguarding, recording and reconciliation of information about revenue.
The accounting officer of an institution must review, at least annually when finalising the budget, all fees, charges or the rates, scales or tariffs of fees and charges that are not or cannot be fixed by any law and that relate to revenue accruing to a revenue fund. The accounting officer must obtain approval from the relevant treasury for the proposed tariff structure.
Information on the tariff structure must be disclosed in the annual report, including information on exemptions, discounts, free services and any other aspect of material influence on the revenue yield.
The accounting officer of an institution must ensure that internal procedures and internal control measures are in place for payment approval and processing.
An official of an institution may not spend or commit public money except with the approval (either in writing or by duly authorised electronic means) of the accounting officer or a properly delegated or authorised officer.
Before approving expenditure or incurring a commitment to spend, the delegated or authorised official must ensure compliance with any limitations or conditions attached to the delegation or authorisation.
Unless determined otherwise in a contract or other agreement, all payments due to creditors must be settled within 30 days from receipt of an invoice or, in the case of civil claims, from the date of settlement or court judgement.
Activities relating to the authorisation of appointments, the authorisation of payments and the recording of those payments may not be performed by the same person.
The accounting officer of an institution must ensure that the personnel cost of all appointees, as well as promotion and salary increases, can be met within the budgetary allocation of the institution.
Group A: Persons who must be paid on the 15th day of the month, or if it is not a working day, on the last working day preceding the 15th.
persons appointed permanently on the fixed establishment and employed in terms of the Public Service Act, 1994; and persons appointed on contract.
Group B: This group represents personnel paid on the last working day of the month and includes temporary and part-time staff, and persons appointed on probation.
For all employees, the person in charge at the respective pay-points must certify that all persons listed on the payroll report are entitled to payment. People paid by cheque must sign the payroll report when collecting their cheques.
Within ten days of being certified, the payroll report must be returned to the chief financial officer. The accounting officer must ensure that all pay-point certificates have been received on a monthly basis.
An accounting officer must maintain appropriate measures to ensure that grants and other transfer payments are applied for their intended purposes.
scheduled or unscheduled inspection visits or reviews of performance; and any other control measures deemed necessary.
the agreed objectives have not been attained; and the transfer payment or grant does not provide value for money in relation to its purpose or objectives.
Should a dispute arise over which vote or main division of a vote should be charged with any particular expenditure, the relevant treasury must settle the dispute and determine the vote or main division against which the expenditure must be charged.
The accounting officer of a department must exercise all reasonable care to prevent and detect unauthorised, irregular, fruitless and wasteful expenditure, and must for this purpose implement effective, efficient and transparent processes of financial and risk management.
When an official of a department discovers unauthorised, irregular or fruitless and wasteful expenditure, that official must immediately report such expenditure to the accounting officer. Such expenditure must also be reported in the monthly report, as required by section 40(4)(b) of the Act. Where irregular expenditure occurred in contravention of tender procedures, the relevant tender board must also be notified.
the extent of the expenditure involved; and the nature and seriousness of the transgression.
The recovery of losses or damages resulting from unauthorised, irregular or fruitless and wasteful expenditure must be dealt with in accordance with regulation 12.
The amount of the unauthorised, irregular, fruitless and wasteful expenditure must be disclosed as a note to the annual financial statements of the institution.
preventative mechanisms are in place to eliminate theft, losses, wastage and misuse; and stock levels are at an optimum and economical level.
The accounting officer must ensure that processes (whether manual or electronic) and procedures are in place for the effective, efficient, economical and transparent use of the institution's assets.
Disposal of movable assets must be at market-related value or by tender or auction, whichever is most advantageous to the state, unless determined otherwise by the relevant treasury.
Any sale of immovable state property must be at market-related value, unless the relevant treasury approves otherwise.
The letting of immovable state property (excluding state housing for officials and political office bearers) must be at market-related tariffs, unless the relevant treasury approves otherwise. No state property may be let free of charge without the prior approval of the relevant treasury.
The accounting officer must review, at least annually when finalising the budget, all fees, charges, rates, tariffs or scales of fees or other charges relating to the letting of state property to ensure sound financial planning and management.
Where any money, property or right accrues to the state by operation of law (bona vacantia), the relevant treasury may exercise all powers, authority and prerogatives, and fulfil any obligation on behalf of the state.
This regulation applies to all debts accruing to an institution and includes any amount owing to or receivable by the institution, such as invoices for charges for goods or services, fees or fines outstanding.
maintenance of proper accounts and records for all debtors, including amounts received in part payment; and referral of a matter to the State Attorney, where economical, to consider a legal demand and possible legal proceedings in a court of law.
Unless otherwise determined by law or agreement, debts owing to the state may, at the discretion of the accounting officer of the institution, be recovered in instalments.
it would be to the advantage of the state to effect a settlement of its claim or to waive the claim.
All debts written off must be disclosed in the annual financial statements, indicating the policy in terms of which the debt was written off.
Interest must be charged on debts to the state at the interest rate determined by the Minister of Finance in terms of section 80 of the Act.
Subject to the provisions of this regulation, or any other legislation or agreement, the state will bear its own damages and accident risks and be responsible for all claims and losses of state property where these arise from state activities by an official who is liable in law and who is or was employed by an institution.
Notwithstanding paragraph 12.1.1, the accounting officer of an institution may (if deemed economical and based on a risk assessment) insure motor vehicles or such other movable assets determined by the relevant treasury, but the insurance premium cost may not exceed R250 000 a year on that vote, unless otherwise approved by the relevant treasury.
did not deviate materially from the official journey or route without prior authorisation; and did not, without prior consultation with the State Attorney, make an admission that was detrimental to the state.
If in doubt, the accounting officer of the institution must consult the State Attorney on questions of law on the implementation of paragraph 12.2.1.
Except when an institution has accepted liability in terms of paragraph 12.2.1, an amount paid by the institution for losses, damages or claims arising from an act or omission of an official must be recovered from the official concerned if the official is liable in law to compensate the institution.
The State Attorney may only obligate the funds of an institution with the prior written approval of the accounting officer.
If the state suffers a loss or damage and the other person denies liability, the accounting officer must, if deemed economical, refer the matter to the State Attorney for legal action.
If an official sustains a loss or damage in the execution of official duties and is not compensated, the accounting officer may make good the loss or damage provided that the official can prove such loss or damage.
When it appears that the state has suffered losses or damages through criminal acts or possible criminal acts, the matter must be reported, in writing, to the accounting officer and the South African Police Service. In the case of omissions, the matter must be reported, in writing, to the accounting officer. Whether or not the person is still in the employ of the state, the accounting officer must recover the value of the loss or damage from the person responsible.
When movable assets are written off, this must be noted in the asset register.
The accounting officer may write off losses and damages that result from vis major and other unavoidable causes.
Losses or damages suffered by an institution because of an act committed or omitted by an official, must be recovered from such an official if that official is liable in law.
The accounting officer must determine the amount of the loss or damage and, in writing, request that official to pay the amount within 30 days or in reasonable instalments. If the official fails to comply with the request, the matter must be handed to the State Attorney for the recovery of the loss or damage.
A claim against an official must be waived if the conditions in paragraph 12.2.1(b) to (e) are met.
If in doubt, the accounting officer of the institution must consult the State Attorney on questions of law in the implementation of paragraphs 12.7.1 and 12.7.3.
The executive authority of a provincial department may not issue a guarantee, security or indemnity that may bind the provincial revenue fund, except with the prior written approval of the MEC for finance in the province.
The accounting officer of a department must ensure that no official in that department or any other person borrows money on behalf of that department, or issues an unauthorised guarantee, security or indemnity. The accounting officer must ensure that appropriate misconduct or criminal proceedings are instituted against any person responsible for transgressions with regard to borrowings, guarantees, securities or indemnities.
Should the accounting officer be responsible for transgressions with regard to borrowings, guarantees, securities or indemnities, the relevant treasury must initiate appropriate misconduct or criminal proceedings against the accounting officer as soon as it becomes aware of the transgression.
The accounting officer must report on all known contingent liabilities of the department in its annual report.
This regulation does not preclude the use of credit cards, fleet management cards or other credit facilities repayable within 30 days from the date of statement.
The MEC for finance may raise funds during a financial year for bridging purposes. All bridging finance raised during a financial year must be repaid within 30 days after the end of the financial year.
Regulation 15 is not applicable to the management of trust money.
For purposes of this regulation, trust money or property is money or property that does not belong to the State and that is held by an institution on behalf of other persons or entities in terms of a deed of trust or equivalent instrument that details the specific purposes for which it may be used.
The accounting officer, through the chief financial officer or a duly authorised agent, is responsible for the safekeeping and proper use of trust money and property, in accordance with the relevant deed of trust or equivalent instrument.
The institution, or its duly authorised agent, may charge a fee for the administration of a trust account at rates approved by the board of trustees or, in its absence, as agreed with the trustee. Such fees are payable from the trust account and are revenue accruing to the relevant revenue fund.
maintain separate accounting records for each trust account, of the transactions, including investment transactions, undertaken; and annually prepare separate annual financial statements that comply with generally accepted accounting practice.
in public securities issued by the government; or in other securities approved by the National Treasury.
The proceeds of an investment, including interest and realised capital gains, and all money received from the realisation, sale or conversion of securities, must be treated as money of the trust on whose behalf the money was invested.
Each treasury is responsible for the effective and efficient management of its revenue fund.
Each treasury must ensure that its revenue fund always has sufficient money for appropriated expenditure and direct charges to meet the progressive cash flow requirements.
Each revenue fund consists, at any point in time, of all cash balances of the fund, derived from the relevant treasury's operating, investing and financing activities.
The bank account configuration for the National Revenue Fund comprises an Exchequer bank account, a Paymaster-General bank account with the South African Reserve Bank, the four tax and loan accounts with commercial banks, and any other bank account opened to facilitate the management of the National Revenue Fund. The National Treasury may open additional accounts on such terms and conditions as it may determine.
Each provincial revenue fund must have a bank account configuration that consists of at least an Exchequer bank account and a Paymaster-General bank account, opened with a commercial bank.
Each head of a provincial treasury must nominate one bank account, which is under the control of the provincial treasury and is part of the provincial revenue fund, as the accredited account into which all transfers from national departments must be deposited.
If the accounting for a department necessitates a separate bank account, the relevant treasury may approve one subaccount within the Paymaster-General account of the relevant revenue fund. Such subaccounts remain an integral part of the bank account configuration of the relevant revenue fund.
In terms of sections 11(3) and 21(2) of the Act, money is paid into a revenue fund by depositing it into a bank account in accordance with the configuration requirements prescribed above.
Money deposited into the Paymaster-General account must immediately be available to the relevant treasury for funding expenditure or investment according to its central cash management responsibilities.
The South African Revenue Service must supply the relevant treasury with an annual revenue projection no later than the tenth working day of March preceding the start of the financial year. It must also submit the actual collection for the preceding month and an updated monthly revenue projection for the remainder of the year, no later than the 15th working day of each month.
For purposes of section 12 of the Act, the South African Revenue Service must implement measures to ensure that all taxes, levies, duties, fees and other money due to and collected by it for a revenue fund are accounted for and deposited daily into the relevant fund. The relevant treasury must be informed daily of such revenue and its standard revenue classifications.
All revenue received by a department must be paid daily into its Paymaster-General account or, for amounts less than R500, as soon as practicable, but at least by the last working day of the month.
No provincial department may receive a transfer payment from a national department or public entity directly; such funds must be deposited into the nominated banking account of the province as required by paragraph 15.2.3.
Money collected by a department, which is not classified as revenue, must be paid into the department's Paymaster-General account and accounted for in its ledger. This includes money received for agency services provided to another department.
Provincial treasuries may, in accordance with section 24 of the Act, temporarily invest surplus money in the provincial revenue fund in an account in South Africa, approved as part of the bank account configuration of the fund.
When requesting the transfer of appropriated funds, accounting officers of national departments must submit such requisitions to the National Treasury, in accordance with approved cash flow estimates, at least four full working days before the end of the month preceding the month in which the funds are required. Provincial treasuries may determine their own time-scales in this regard.
Provincial treasuries will receive their grants from the National Revenue Fund in accordance with the payment schedule determined in terms of the annual Division of Revenue Act.
At the end of each financial year, and after the books of account of a department have been closed, the accounting officer must surrender to the relevant treasury any unexpended voted money, for re-depositing into the Exchequer bank account of the relevant revenue fund.
Each treasury must account daily for the cash movements of all bank accounts in the books of its revenue fund.
15.10.1.1 The accounting officer is responsible for establishing systems, procedures, processes and training and awareness programmes to ensure efficient and effective banking and cash management.
avoiding prepayments for goods or services (i.e.
recognising the time value of money, i.e.
performing bank reconciliation's on a daily basis to detect any unauthorised entries; and ensuring that dishonoured warrant vouchers and cheques are followed up immediately.
15.10.2.1 The accounting officer must annually submit to the relevant treasury a breakdown of anticipated revenue and expenditure in the format determined by the National Treasury, no later than the last working day of February preceding the financial year to which it relates.
15.10.2.2 Provincial treasuries must submit to the National Treasury, by the 15th working day of March, projections of their expenditure, revenue and borrowings, in a format determined by the National Treasury.
15.10.2.3 Once such amounts have been approved, modified as necessary after consultation with the relevant treasury, the accounting officer may not draw from the revenue fund more than the amount approved for a month, without prior written approval from the relevant treasury.
15.10.2.4 Should the accounting officer need to adjust the approved projections, the proposed adjustments must be motivated to the relevant treasury for evaluation against the availability of funds in the Exchequer.
15.10.3.1 Institutions may not open a bank account without the written approval of the relevant treasury. All treasury approvals granted before 1 April 2001 lapse on 30 June 2001.
15.10.3.2 The National Treasury will negotiate with the approved clearing banks for appropriate banking services on a regular basis for national departments and constitutional institutions.
Private money may not be deposited into an official bank account, except in accordance with the provisions relating to money held in trust for other persons or bodies, nor may state money be paid into a private bank account.
The safekeeping of private money or personal possessions in a state safe or strongroom is prohibited. However, an accounting officer or an official authorised by the accounting officer may approve arrangements for safeguarding personal effects reasonably held on official premises in the course of official duty (e.g. by providing lockable rooms for staff).
State money may not be used to cash private cheques.
Accounting officers of departments must assign authority in writing to officials to approve warrant vouchers, cheques or electronic payments.
Only authorised officials may sign hand-drawn vouchers or cheques and must initial the counterfoils.
All payments in excess of R2 000 must be effected electronically unless otherwise approved by the relevant treasury. Payments may not be split to circumvent this regulation and any non-compliance with this regulation constitutes financial misconduct.
All warrant vouchers and cheques must be crossed "NOT NEGOTIABLE" and should also preferably be crossed "NOT TRANSFERABLE" between parallel lines. The cancellation of crossings is not permitted.
When an issued warrant voucher or cheque is lost, stolen or damaged, an instruction to stop payment must immediately be issued to the responsible bank. Once confirmation has been received that the cheque was stopped, the transaction must be reversed and a new warrant voucher or cheque issued and accounted for.
All cashed warrant vouchers of national departments that have not been captured on the respective financial systems will be returned as unpaid.
designated within the institution's existing budget for the institutional function to which the agreement relates; and destined for the institution in accordance with the relevant treasury's future budgetary projections for the institution.
but excludes a service, task, assignment or other function that is not of an ongoing nature.
a municipality or an enterprise or other entity controlled by one or more municipalities; or the accounting officer, accounting authority or other person or body acting on behalf of an institution, municipality, enterprise or entity referred to in paragraph (a) or (b).
the private party is generally liable for the risks arising from the performance of the function, subject to paragraph 16.13.1; and depending on the specifics of the agreement, state facilities, equipment or other state resources may be transferred or made available to the private party.
The definition excludes an agreement or category of agreements exempted by the National Treasury in terms of clause 16.11.
"value for money" means that the provision of the institutional function by a private party in terms of the public-private partnership agreement results in a net benefit to the institution, defined in terms of cost, price, quality, quantity, or risk transfer, or a combination thereof.
Only an accounting officer may enter into a PPP agreement on behalf of the institution.
the National Treasury; or the relevant provincial treasury, if it is a provincial institution and the National Treasury has, in terms of section 10(1)(b) of the Act, delegated the appropriate powers to the provincial treasury.
be affordable for the institution; and transfer appropriate technical, operational and financial risk to the private party.
When a provincial treasury gives such approval, it must exercise its delegated powers subject to any limitations and qualifications in terms of the National Treasury's delegation.
If an institution lacks the expertise to proceed with the procurement of a PPP agreement, the accounting officer of the institution must inform the relevant treasury accordingly; and if the relevant treasury so requests, must appoint a specialist consultant for this purpose.
transfer appropriate technical, operational and financial risk to the private party.
explains the capacity of the institution to effectively enforce the agreement, including to monitor and regulate implementation of and performance in terms of the agreement.
An institution may not proceed with the procurement of a PPP agreement without written treasury approval for the feasibility study in terms of clause 16.3.
Part III should contain the institutional arrangements for monitoring the implementation of the PPP agreement.
An institution may not proceed to issue procurement documentation unless it has obtained written treasury approval in terms of clause 16.3 and has obtained subsequent treasury acceptance of the procurement documentation, including at least the main terms of the proposed agreement.
A PPP agreement must be procured in accordance with applicable procurement legislation.
a competitive bidding process in which only pre-qualified organisations may participate; and criteria for the evaluation of bids to identify the bid that represents the best value for money.
a preference for categories of bidders, such as persons disadvantaged by unfair discrimination, provided that this does not compromise the value for money requirement; and incentives for recognising and rewarding genuine innovators in the case of unsolicited proposals, provided that these incentives do not compromise the competitive bidding process.
obtain relevant treasury agreement to future budgetary commitments; and ensure that the financial commitments in terms of the agreement are denominated in rand.
resolving disputes and differences with the private party; and generally overseeing the day-to-day management of the agreement.
A PPP agreement does not divest the accounting officer of the responsibility for ensuring that the relevant institutional function is effectively and efficiently performed in the public interest.
Only the accounting officer may enter into an agreement to amend a PPP agreement.
Written approval of the relevant treasury is required for material amendments of PPP agreements.
The accounting officer must substantially follow the procedure prescribed by clauses 16.3 and 16.5 for obtaining treasury approval.
by a person other than the accounting officer of the institution; or without the approval of the National Treasury.
The National Treasury may exempt from the application of this regulation any agreement or category of agreements that fall within the definition of "public -private partnership agreement", if these are of a nature or have a monetary value deemed not to warrant application of this regulation.
An agreement between an institution and a private party for the latter to perform an institutional function without accepting the significant risks is not a PPP agreement and must be dealt with as a borrowing transaction in terms of the appropriate legislation.
All the transactions of an institution must be supported by authentic and verifiable source documents, clearly indicating the approved accounting allocation.
monthly reconciliation's are performed to confirm the balance of each account; and reports are provided to the accounting officer about uncleared items on a monthly basis.
In each month's section 40(4) report, the accounting officer must certify that the forecast/projection for the remainder of the financial year adequately makes provision for all amounts not yet cleared from clearing and suspense accounts.
information relating to one financial year - for one year after the audit report for the financial year in question has been tabled in Parliament or the provincial legislature; or information relating to more than one financial year - for one year after the date of the audit report for the last of the financial years to which the information relates.
After the expiry of the above retention periods, the information may, if required, be secured in an alternative form that ensures the integrity and reliability of the data and ensures that the information can be reproduced, if necessary, as permissible evidence in a court of law.
Irrespective of paragraph 17.2.
When financial information is required as evidence in proceedings before a court, Parliament, a provincial legislature, an official inquiry or otherwise, or for purposes of an audit, it must be secured in its then current form until no longer required, even if the National Archivist has authorised its disposal.
Institutions may not amend existing or institute new computerised systems that will affect financial administration without the prior written approval of the National Treasury.
In addition to the reporting requirements of sections 40(4)(b) and (c) of the Act, the accounting officer must also comply with the reporting requirements of the annual Division of Revenue Act.
A provincial treasury must submit a statement to the National Treasury on actual revenue and expenditure with regard to its revenue fund before the 22nd day of each month in the format determined by the National Treasury. Such a statement must include a certificate to the effect that the information supplied has been verified by the head official of the provincial treasury. The information supplied must be based on information submitted to the provincial treasury by provincial accounting officers in terms of section 40(4)(c) of the Act.
National and provincial revenue funds Annual financial statements must consist of - (a) a statement of liabilities and financially related assets; (b) an income statement; (c) a cash flow statement; (d) notes to the annual financial statements; (e) a report on the financial position of and performance by the Treasury; and (f) such other statements as may be determined by the Accounting Standards Board. The annual financial statements must be prepared on a cash basis and must be accompanied by the audit opinion of the Auditor-General. The annual financial statements must, by means of figures and a descriptive report, explain any other matters and information material to the affairs of the relevant revenue fund.
Departments Annual financial statements must consist of - (a) a balance sheet; (b) an income statement; (c) a cash flow statement; (d) notes to the annual financial statements; and (e) such other statements as may be determined by the Accounting Standards Board. The statements must be prepared on a cash basis and be accompanied by the audit opinion of the Auditor-General. The annual financial statements must, by means of figures and a descriptive report, explain any other matters and information material to the affairs of the institution.
notes to the annual financial statements; and such other statements as may be determined by the Accounting Standards Board.
The annual financial statements must be accompanied by the audit opinion of the Auditor-General.
The annual financial statements must conform with generally accepted accounting practice. These statements must fairly represent the financial position, financial performance and cash flows of the institution at the end of the financial year concerned.
The annual financial statements must, by means of figures and a descriptive report, explain any other matters and information material to the affairs of the institution.
report on the use of foreign aid assistance, detailing the source and intended use of the assistance (including the value of any aid-in-kind in rand), performance information on the institution's use of the assistance, and any pending applications for assistance; and a report from the audit committee as required by paragraph 3.1.10.
a statement of the functions of each trading and/or public entity; and the accountability arrangements established between the accounting officer or executive authority and the management of the trading and/or public entity.
the accounting officer appointed in terms of section 36(3)(b) of the Act; or an official assigned to head the trading entity in terms of section 44(1)(a) of the Act.
For purposes of this regulation, a trading entity is regarded as an entity operating within the administration of a department. All obligations on departments in this regulation apply to trading entities, unless the context indicates otherwise.
The accounting officer of the department operating a trading entity must ensure that the head of the trading entity complies with the Act and these Treasury Regulations.
Trading entities allowed to open bank accounts may not borrow for bridging purposes and may not run overdrafts on their banking accounts unless approved otherwise in writing by both the accounting officer of the department and the relevant treasury.
The accounting officer of a department operating a trading entity must formulate a polic y and reporting framework for the head of the trading entity.
The head of the trading entity is accountable to the accounting officer of the department operating that trading entity and must forward all reports or approvals required in the Act via the accounting officer of the department.
Provincial treasuries may only establish a trading entity after consultation with the National Treasury.
The capital requirements of the trading entity must be determined in consultation with the relevant treasury, and increases in such requirements are also subject to treasury approval.
In determining charges for goods or services, the head of the trading entity must aim to recover the full cost of providing the goods or services, unless the relevant treasury approves lower charges.
The head must review rates for user charges at least annually before the budget, and any tariff increases are subject to approval by the relevant treasury.
When assets are disposed of other than in the ordinary course of the business of the trading entity, the relevant treasury must approve the transaction.
An accounting officer of a department operating a trading entity must, at the end of each financial year and after books of account have been closed, declare any surplus or deficit to the relevant treasury. The relevant treasury may apply such surplus to reduce any proposed allocation to the trading entity, or require that all or part of it be redeposited in the Exchequer bank account.
appropriate steps were taken to address the deficit; and financial misconduct sanctions should be instituted if paragraphs (a) and (b) were not adhered to.
The annual financial statements in respect of a trading entity must be compiled in accordance with paragraph 18.4.
"commission" means a commission of inquiry appointed by the President or the Premier of a province to investigate a matter of public concern, and does not include any permanent commission, board, council, committee or similar body, whether appointed pursuant to any law or otherwise.
"committee" means a committee of inquiry appointed by the executive authority and includes an interdepartmental committee of inquiry, but does not include any permanent commission, board, council, committee or similar body, whether appointed pursuant to any law or otherwise.
"non-official member" means a person who is not an official member.
"official member" means a person as defined in section 8(1) of the Public Service Act, 1994 (Proclamation No. R.103 of 1994), a member of Parliament or a judge, as well as a person employed by a body that was established by an Act of Parliament and that receives its funds wholly, or in part, from the National Revenue Fund, where such a person represents the department or body where he or she is employed as a member of a commission or committee.
An official member may not receive additional remuneration. Subsistence and other allowances may be paid to the official member in accordance with his or her conditions of service.
A non-official member must be remunerated according to scales approved by the National Treasury.
the terms of reference are properly defined in terms of time and cost; and the remuneration is considered taking into account the tariffs as determined by the South African Institute of Chartered Accountants in consultation with the Auditor-General.
The remuneration of all members of a commission or committee must be disclosed as notes to the financial statements of the institution.
Should the chairperson request a non-official member of a commission or committee to render services in his or her private time, other than the normal preparations for meetings, the person may be paid an honorarium (within the budget), as determined by the accounting officer and the executive authority. In the case of official members, section 30 of the Public Service Act of 1994 must be complied with.
The accounting officer may approve gifts, donations and sponsorships of state money and other movable property in the interest of the state. When such cash amounts exceed R100 000, the approval of the relevant legislature must be sought by including the item separately in the estimates of expenditure.
The accounting officer may approve the acceptance of any gift, donation or sponsorship to the state, whether such gifts, donations or sponsorships are in cash or kind.
All cash gifts, donations or sponsorships must be paid into the relevant revenue fund, except those donations received in terms of paragraph 21.2.5.
Where it is not apparent for what purpose a gift, donation or sponsorship should be applied, the relevant executive authority may decide how it must be utilised.
All gifts, donations or sponsorships received during the course of the financial year must be disclosed as a note to the annual financial statements of the institution.
Donor funding received in terms of the Reconstruction and Development Fund Act (Act 7 of 1994, as amended by Act 79 of 1998), must be dealt with as determined by the National Treasury from time to time.
The relevant treasury's approval must be obtained before institutions offer or accept any gifts or donations of immovable property.
Institutions must submit to the relevant treasury the reasons for and the conditions under which the gift or donation of immovable property is offered or accepted.
When a donor or sponsor requests to remain anonymous, the accounting officer must submit to the relevant treasury a certificate from both the Public Protector and the Auditor-General, which states that the identity of the donor or sponsor has been revealed to them, that they have noted it and have no objection.
The above provision in no way limits the Auditor-General or the Public Protector from supplying this information to their staff, and where they deem it in the public interest, to report on this.
the remission of money due to a revenue fund; and payments from a revenue fund.
Where more than R100 000 is involved, Parliament or provincial legislature approval must be sought by including the item separately in the estimates of expenditure.
Where there is doubt as to whether an amount may be written off as irrecoverable or should be treated as a remission of grace, the relevant treasury must make the decision.
All remissions, refunds or payments made as an act of grace during the financial year must be disclosed as a note to the annual financial statements of the institution.
"basic salary" means the annual notch that an official is employed on divided by 12.
"statutory deduction" means a deduction on Persal against an official's salary, which is required or permitted in terms of a law, court order or arbitration award.
Subject to paragraph 23.3, no official or employee of an entity contracted to operate Persal may, whether for paying a debt or any other purpose, process a discretionary deduction as from 1 April 2001.
Before a benefit, collective agreement, state or statutory deduction is processed on Persal, the accounting officer must certify that the deduction is due and that no portion of it is a discretionary deduction.
after the deduction, the official will have sufficient means for maintenance for him or herself and any dependants.
Should the deduction not leave the official with sufficient means for maintenance, the accounting officer must request the judgement creditor or his or her attorney to approach the court to either rescind the order or amend it to affect only the balance of the salary after provision for such maintenance.
Notwithstanding paragraphs 23.2.1 and 23.3.2, existing deduction codes for discretionary deductions remain in force until 30 June 2001. New deduction codes issued in terms of paragraph 23.3.3 will remain in force until 31 October 2001.
Despite anything to the contrary in this regulation, a person may apply for a deduction code for a discretionary deduction.
Only the Accountant-General may approve the issuing of deduction codes, in terms of an agreement between the Accountant-General and a person qualifying for such a code.
the person is in good standing with the South African Revenue Services and will annually provide the Accountant-General with proof of such good standing.
The Accountant-General may levy a fee of up to 5 per cent of deductions for emolument attachment orders, except orders specifically for child maintenance.
for loans below R10 000, the maximum is 27 per cent plus an administrative cost subject to a limit set out in the agreement with the Accountant-General.
other discretionary deductions do not exceed 25 per cent; and the minimum take-home pay is as specified in the agreement with the Accountant-General.
The Minister of Finance may determine the number of deduction codes on the Persal system.
Any serious or persistent material non-compliance with this regulation or the terms of the agreement with the Accountant-General constitutes misconduct.
It is a serious contravention for any person to knowingly exceed the deduction limits described above.
laying criminal charges; and if the person is an official, direct that the contravention be dealt with in terms of the Act.
Any person aggrieved by a decision of or penalty imposed by the Accountant-General may appeal to the Minister of Finance, whose decision will be final.
Any discretionary deduction in force on 1 April 2001 will remain registered until 30 June 2001, unless the official requests an earlier date of termination.
Between 1 April and 30 June 2001, any existing insurance deduction may be increased only once, provided that the increase does not exceed 15 per cent of the premium or R10, whichever is greater. Parties given new deduction codes may vary premiums periodically, provided that the increase does not exceed 15 per cent of the premium or R10, whichever is greater.
On 30 June 2001, any deduction to parties without a new deduction code will be removed from the system.
deductions where payments in a specific category exceed the limits outlined above; and a "last in-first out" basis will be used, unless determined otherwise by the Accountant-General.
"designated accounting officer" means the accounting officer of a designated department.
public entities listed in Schedule 2 or 3 of the Act, unless the context indicates otherwise; and public entities not listed in Schedule 2 or 3 but which, in terms of section 47 of the Act, are required to be listed.
Public entities that should have been listed in terms of the Act but which are not listed, must deposit all money received into the relevant revenue fund.
Public entities must submit all information required by the National Treasury in terms of the Act and these regulations to the Registrar of Public Entities in the National Treasury.
amount of budgetary transfers received over the past three financial years; and most recent corporate/strategic plan of the public entity.
The designated accounting officer must ensure that, within ten days of the end of each quarter, the public entity submits a report on its actual revenue and expenditure up to the end of that quarter. This regulation takes effect from 1 April 2002.
The accounting authority must quarterly report to the executive authority through the designated accounting officer on the extent of compliance on the Public Finance Management Act, 1999 and regulations. Any non-compliance must be reported together with reasons for the non-compliance.
The designated accounting officer may, after consultation with the relevant public entity, approve the sharing of services where it is economical, including the services of the audit committee and internal audit unit.
The accounting authority of a public entity must establish an audit committee for the public entity.
A shared audit committee may be established for a public entity and any subsidiaries under the ownership and control of that entity.
The chairperson of the audit committee may not be an employee of the public entity or a political office bearer.
The majority of the members of an audit committee may not be employed by the public entity or be members of the controlling body and all members must have appropriate experience.
The relevant executive authority has to concur with any premature termination of services of a member of the audit committee.
The audit committee must, in consultation with the head of internal audit, establish an audit charter to guide the internal audit approach.
report on the effectiveness of internal controls in the annual report of the institution; and comment on its evaluation of the financial statements in the annual report.
Should a report from internal audit (or any other source) to the audit committee implicate any member(s) of the accounting authority in fraud, corruption or gross negligence, the chairperson of the audit committee must promptly report this to the relevant executive authority and the Auditor-General.
The audit committee must communicate any concerns it deems necessary to the executive authority, the Auditor-General and if appropriate, to the external auditor.
The accounting authority must facilitate a risk assessment to determine the material risks to which the entity may be exposed and to evaluate the strategy for managing these risks. The strategy must be used to direct the internal audit effort and priority, and to determine the skills required for managing these risks.
The accounting authority must establish an internal audit unit.
A public entity and subsidiaries under the ownership control of the entity may have a shared internal audit unit.
The internal audit function may, in accordance with preferred tendering procedures, be contracted out to an external institution with specialist audit expertise, provided that the external auditors may not perform the internal audit function.
a modus operandi, with management inputs, to guide the audit relationship; and reports to the audit committee detailing its performance against the plan, to allow effective monitoring and intervention when necessary.
The internal audit unit must be independent, with no limitation on its access to information.
Unless directed otherwise by the relevant treasury, each public entity listed in Schedule 3A or 3C of the Act must appoint a chief financial officer by no later than 31 October 2001.
Without limiting the right of the accounting authority to assign specific responsibilities, the general responsibility of the chief financial officer is to assist the accounting authority in discharging the duties prescribed in Part 2 of Chapter 6 of the Act.
The annual financial statements must, include a report by the directors or controlling body which must also include a disclosure of all directors' and officer's emoluments of the holding company and its subsidiaries in accordance with the reporting standards determined by the National Treasury.
Public entities listed in Schedule 3A or 3C of the Act may, after consultation with the designated accounting officer, submit their annual financial statements and any other information required in terms of the Act to the designated accounting officer for inclusion in the relevant department's annual report.
capital expenditure programmes; and dividend policies.
The executive authority of a public entity may request additional information to be included in the corporate plan.
submit a three-year borrowing programme (beginning with the first financial year of the corporate plan) with their corporate plan to the National Treasury; and submit quarterly reports on the borrowing programme to the National Treasury, reflecting actual borrowing for that quarter and any update of the borrowing programme.
submit to the relevant treasury, with their corporate plans, a three-year borrowing programme beginning with the first financial year of the corporate plan. The programme must be in terms of approvals and limits determined by the Minister, and in terms of the Borrowing Powers of Provincial Governments Act; and submit to the relevant treasury, quarterly reports on the approved borrowing programme, reflecting actual borrowing for that quarter and any update of the borrowing programme.
quarterly updates reflecting actual borrowing for that quarter; and any update in the borrowing programme of Schedule 3D provincial government business enterprises that are authorised to borrow.
The borrowing programme referred to in paragraphs 29.1.3 and 29.1.
motivations for government guarantees, if required, and the executive authority's approval of the borrowing programme, if required by the legislation in terms of which the public entity was established.
The accounting authority for a public entity listed in Schedule 2, 3B or 3D must, in consultation with its executive authority, annually conclude a shareholder's compact.
The shareholder's compact must document the mandated key performance measures and indicators to be attained by the public entity as agreed between the accounting authority and the executive authority.
The accounting authority of a public entity must establish procedures for quarterly reporting to the executive authority in order to facilitate effective performance monitoring, evaluation and corrective action.
For purposes of section 52(a) of the Act, the projection of revenue, expenditure and borrowings must be in the same format as submitted for the accounting authority's approval.
The accounting authority for a public entity listed in Schedule 3A or 3C must submit a proposed strategic plan starting with the 2002/2003 financial year for approval by the relevant executive authority. Such a plan must be submitted at least six months before the start of the financial year of the designated department or another time period as agreed to between the executive authority and the public entity.
The strategic plan must be finalised and submitted to the relevant executive authority no later than 1 April 2002.
be updated annually on a rolling basis; and form the basis for the annual reports of accounting authorities in terms of section 55 of the Act.
The executive authority may request additional information to be included in the strategic plan.
The accounting authority of a public entity listed in Schedule 3 is responsible for establishing systems, procedures, processes and training and awareness programmes to ensure efficient and effective banking and cash management.
avoiding pre-payments for goods or services (i.e.
variance analyses of actual cash flow with the approved budget; and sweeping bank accounts to effectively utilise surplus cash.
The accounting authority must ensure that the public entity's cash management performance is reported regularly, but at least on a monthly basis.
When a public entity listed in Schedule 3 of the Act intends to open a new bank account, the National Treasury must approve of the bank. For purposes of section 7(2)(a) of the Act, existing banking arrangements can be regarded as approved by the National Treasury, but the accounting authority must submit a list of all such banking accounts by 31 May 2001.
the cost effectiveness; and the ability of the bank to provide the required services which through adequate systems, infrastructure and branch networks.
The adjudication and awarding of tenders must be done in accordance with the public entity's own internal tendering procedures.
Only the accounting authority or the person to whom such authorisation has been delegated may open a bank account.
A public entity or a government business enterprise with funds under management must have an investment policy approved by the accounting authority.
The investment policy referred to in paragraph 31.3.
reassessment of counter-party credit risk based on credit ratings; and assessment of investment instruments based on liquidity requirements.
invest surplus funds with the Corporation for Public Deposits, where such surpluses exceed R1 million; and invest surplus funds in an institution with an investment grade rating, where such surpluses are less than R1 million.
Public entities mentioned in paragraph 31.3.3 with existing investments as at 10 April 2001 are exempted until 1April 2002, provided that all relevant information on such investments are submitted to the National Treasury by 30 June 2001.
a request for borrowing for bridging purposes must be submitted to the Minister of Finance at least 30 days before the borrowing.
detailed cash flow and income and expenditure statements indicating how the debt will be repaid during the prescribed period; and the terms and conditions on which the money is borrowed.
This regulation does not preclude the use of credit cards, fleet management cards or other credit facility repayable within 30 days of the date of statement.
If an employee is alleged to have committed financial misconduct, the accounting authority of the public entity must ensure that disciplinary proceedings are carried out in accordance with the relevant prescripts.
The accounting authority must ensure that the investigation is conducted within 30 days.
If an accounting authority or any of its members is alleged to have committed financial misconduct, the relevant executive authority must ensure that appropriate disciplinary proceedings are initiated immediately.
issue any reasonable requirement regarding the way in which the investigation should be performed.
The accounting authority must advise the Auditor-General and the relevant executive authority and treasury of any criminal charges it has laid against any person in terms of section 86 of the Act.
The executive authority or relevant treasury may direct a public entity to lay charges of criminal financial misconduct against any person should an accounting authority fail to take appropriate action.
the names and ranks of employees involved; and the sanctions and any further actions taken against these employees.
The regulations issued in terms of the Public Finance Management Act (Act 1 of 1999) on 31 May 2000 (Regulation Gazette 21249) are hereby repealed with the exception of paragraphs 6.4, 18.4, 18.5 and 18.6.
The regulations issued in terms of the Public Finance Management Act (Act 1 of 1999) on 1 September 2000 (Regulation Gazette 21534) are hereby repealed.