No. 10 of 2009: Financial Management of Parliament Act, 2009.
any expenditure from Parliament's approved budget or a main division within that budget for a purpose unrelated to the approved budget or main division, subject to section 22; and any expenditure of donor funds for a purpose not speciï¬ed in the agreement with the donor; ''vote'' means that portion of Parliament's budget which forms part of an appropriation Act and which speciï¬es the total amount of funds to be appropriated from the National Revenue Fund for Parliament.
to establish norms and standards for managing the ï¬nancial affairs of provincial legislatures.
Provincial legislatures must adhere to the norms and standards for ï¬nancial management set out in Schedule 1.
Parliament, or consistent with the objects of this Act.
may only participate in the deliberations of the oversight mechanism at the request of the oversight mechanism.
The oversight mechanism may require the Accounting Officer and any other official of Parliament to appear before it.
The oversight mechanism has the powers that committees of Parliament have under sections 56 and 69 of the Constitution.
The Executive Authority of Parliament is the Speaker of the National Assembly and the Chairperson of the National Council of Provinces, acting jointly.
The Executive Authority is accountable to Parliament for the sound ï¬nancial management of Parliament.
Members of the Executive Authority must act in accordance with the Code of Ethics in Schedule 2.
The Secretary to Parliament is the Accounting Officer.
The Accounting Officer is accountable to the Executive Authority for the ï¬nancial management of Parliament.
disciplinary action is instituted against any employee of Parliament who has allegedly committed an act of ï¬nancial misconduct; and when appropriate, criminal proceedings are initiated against any person who has allegedly committed an offence in terms of section 69.
The Executive Authority and the Accounting Officer must conclude a written performance agreement for the Accounting Officer annually.
The annual assessment of the Accounting Officer's performance must take cognisance of the audit report on the annual ï¬nancial statements of Parliament.
If the post of Accounting Officer is vacant, or if the Accounting Officer is unable to perform the functions of the post, those functions must be performed by another official designated in writing by the Executive Authority.
maximise administrative and operational efficiency; and provide adequate checks and balances in the ï¬nancial management of Parliament.
may authorise that official to sub-delegate, in writing, the delegated power or duty to another official, or to the holder of a speciï¬c post in the administration of Parliament; and does not divest the Accounting Officer of responsibility for the exercise of the delegated power or the performance of the delegated duty.
The Accounting Officer may conï¬rm, vary or revoke any decision taken by an official in terms of a delegation under subsection (1), subject to any rights that may have become vested as a consequence of the decision.
Parliament's assets and liabilities are managed effectively, and that assets are safeguarded and maintained to the extent necessary.
in the case of any other person, to the Accounting Officer.
may use their position or any conï¬dential information obtained in the exercise of their responsibilities for personal gain or to beneï¬t improperly themselves or any other person.
table the strategic plan and annual performance plan in Parliament.
Executive Authority a draft strategic plan for Parliament's administration.
include performance measures and indicators for assessing the administra tion's performance in implementing the strategic plan.
At least ten months prior to the start of the ï¬nancial year, the Accounting Officer must prepare a draft budget for Parliament and present it to the Executive Authority.
contain a schedule of planned expenditure under Parliament's donor funded projects; and be in accordance with the format prescribed under section 65, for the purpose of maintaining consistency with the format followed by other organs of state.
submit the budget and adjustments budget to the National Treasury; and represent Parliament in any discussions with the Minister of Finance on any aspect of Parliament's budget or adjustments budget.
appropriate funds contemplated in section 16(2)(b)(i) in the annual national budget; and approve the use of the funds contemplated in section 16(2)(b)(iii).
by a national adjustments budget referred to in section 30 of the Public Finance Management Act; and in accordance with the procedure set out in section 17(2).
Any revision of an approval in terms of subsection (1)(b) must be approved by Parliament.
funds may be withdrawn from the National Revenue Fund for the requirements of Parliament during that ï¬nancial year as a direct charge against the Fund until the budget is passed; and funds from Parliament's own revenue sources may be used to meet the requirements of Parliament.
during each of the following months, exceed ten per cent of the total amount in the previous approved budget; or in aggregate, exceed the total amount appropriated and approved in the previous approved budget.
The funds provided for in subsection (1) are not additional to funds appropriated or approved for the relevant ï¬nancial year, and any funds withdrawn or used in terms of that subsection must be regarded as forming part of the funds appropriated and approved in the budget for that ï¬nancial year.
This section applies to any unauthorised expenditure incurred by Parliament, other than the unauthorised expenditure of donor funds.
the expenditure is an overspending of Parliament's approved budget and Parliament appropriates an additional amount to cover the overspending; or the expenditure is unauthorised for another reason and Parliament authorises the expenditure as a direct charge against the National Revenue Fund.
Parliament must advise the National Treasury of any unauthorised expenditure that is authorised in terms of subsection (2).
If Parliament authorises unauthorised expenditure in terms of subsection (2) but does not appropriate an additional amount to cover the amount of the unauthorised expenditure, the unauthorised expenditure becomes a charge against Parliament's own funds.
Any unauthorised expenditure that Parliament does not approve must be recovered from the person responsible for the unauthorised expenditure.
Any unauthorised expenditure of donor funds that Parliament approves becomes a charge against Parliament's own funds.
Any unauthorised expenditure of donor funds that Parliament does not approve must be recovered from the person responsible for the unauthorised expenditure.
The Accounting Officer may use a saving in the total amount appropriated or approved under a main division within Parliament's approved budget towards defraying excess expenditure under another main division within the approved budget, unless the Executive Authority directs otherwise.
appropriated or approved for transfer to another institution; or appropriated or approved for capital expenditure when used to defray current expenditure.
The amount of a saving under a main division of Parliament's approved budget that may be used in terms of subsection (1), may not exceed eight per cent of the amount appropriated and approved under that main division.
This section does not authorise the use of a saving of an amount that is a direct charge against the National Revenue Fund in order to supplement Parliament's appropriated funds.
The Executive Authority may make regulations or issue instructions in accordance with sections 65 and 66 respectively concerning the application of this section.
Parliament is not required to return to the National Revenue Fund any money appropriated or approved for a particular ï¬nancial year but not spent in that year.
Funds appropriated for, but not spent in, a particular ï¬nancial year must be regarded as funds derived from Parliament's own revenue sources, and the approval of their use in subsequent ï¬nancial years must be in accordance with section 18(1)(b).
Funds derived from Parliament's own revenue sources that are approved for a particular ï¬nancial year, but not spent in that year, must be approved for use in subsequent ï¬nancial years in accordance with section 18(1)(b).
The Accounting Officer is responsible for establishing systems and procedures for the effective implementation of the policy prescribed in terms of subsection (1).
with an institution not registered as a bank in terms of the Banks Act, 1990 (Act No. 94 of 1990); or otherwise than in the name of Parliament.
is accountable to the Executive Authority for Parliament's bank accounts; and must enforce compliance with section 27.
Only the Accounting Officer, or an official to whom that power has been delegated in terms of section 10, may withdraw money, or authorise the withdrawal of money, from any of Parliament's bank accounts.
A delegation in terms of subsection (1) must be in accordance with the policy made in terms of section 24.
making other refunds approved by the Executive Authority; or cash management or investment purposes in accordance with the policy made in terms of section 24.
issue a guarantee or security; or enter into any other similar transaction that binds or may bind it to any future ï¬nancial commitment.
Neither the state nor Parliament is bound by a loan, guarantee, security or other transaction entered into in breach of subsection (1).
using credit cards, ï¬eet management cards or other credit facilities repayable within 30 days from the date on which an account is rendered.
Parliament maintains a system of internal control of assets and liabilities, including a register of assets and liabilities.
Revenue management 20 31. (1) The Accounting Officer is responsible for managing the revenue of Parliament.
if appropriate, instituting legal proceedings.
The Accounting Officer may settle or write off a debt only in accordance with a policy prescribed in accordance with section 65.
Interest must be charged on any debt owed to Parliament in accordance with a policy prescribed in accordance with section 65.
the amount is unclear or disputed; or it is agreed otherwise; and all ï¬nancial accounts of Parliament are closed monthly and reconciled with its records.
The Executive Authority must make regulations concerning the allocation and use of any funds provided by Parliament to political parties or to Members of Parliament.
the Speaker of the National Assembly must consult with the political parties represented in the National Assembly; and if delegations in, or individual delegates to, the National Council of Provinces are to receive funds, the Chairperson of the National Council of Provinces must consult with the delegations in the Council.
provide for the recovery of funds spent irregularly; and establish a dispute resolution procedure.
any other information reasonably necessary to conï¬rm that the party or Member is entitled to the funds; and in instances of a qualiï¬ed audit report in respect of such funding, until adequate measures are put in place to rectify the qualiï¬cation.
Each party represented in the Assembly must be provided with ï¬nancial and administrative assistance in proportion to its representation to enable it and its leader to perform their functions in Parliament effectively.
obtain a written assurance from the entity that it implements effective, efficient and transparent ï¬nancial management and internal control systems; or render the transfer subject to conditions and remedial measures requiring the entity to establish and implement effective, efficient and transparent ï¬nancial management and internal control systems.
Subsection (1) does not apply to transfers to entities in other countries or to international institutions.
Any transfer contemplated by sub-paragraph (a) is governed by the instrument regulating the relationship between South Africa and that entity or institution.
be in writing; and be addressed to the Accounting Officer.
may not proceed with the implementation of the directive; and must inform the Executive Authority in writing of the likelihood that the directive may lead to unauthorised expenditure.
If the Accounting Officer proceeds to implement a directive contemplated in subsection (2), without receiving a further instruction from the Executive Authority in terms of subsection (5), and it results in unauthorised expenditure, the Accounting Officer is responsible for such unauthorised expenditure.
An official may not implement a directive by the Executive Authority that may have ï¬nancial implications, unless the Accounting Officer issues a written instruction to proceed with implementation.
an expenditure of an exceptional nature which is currently not provided for in Parliament's budget and which cannot, without serious prejudice to the interests of Parliament, be postponed to a future parliamentary appropriation or approval of funds; or an unforeseeable and unavoidable expenditure approved by Parliament.
give a copy to the Accounting Officer; and table a copy in Parliament for prompt referral to the oversight mechanism.
On receipt of a written instruction contemplated in subsection (6), the Accounting Officer must ï¬le a copy with the Auditor-General promptly.
If Parliament does not authorise the expenditure arising from an instruction contemplated in subsection (6), the Executive Authority is responsible for the unauthorised expenditure and it must be recovered from the members of the Executive Authority in their personal capacities.
complies with other applicable legislation;1 and covers at least the matters speciï¬ed in Schedule 3 to this Act.
The Executive Authority may prescribe a policy in accordance with section 65 for considering offers to supply goods or services that are unsolicited or are made otherwise than in accordance with the supply chain management policy contemplated in section 40.
is not obliged to consider any offer contemplated in subsection (1); and may consider an offer contemplated in subsection (1) only in accordance with the prescribed policy.
The Accounting Officer must notify the Auditor-General and the Executive Authority in writing if a contract is concluded in respect of a tender, quotation, or other bid other than the one recommended.
Subsection (1) does not apply if a contract was concluded in order to rectify an irregularity.
attend any meeting of such committee as an observer; or participate in any other way in evaluating or approving tenders, quotations, contracts or other bids for Parliament.
impede the Accounting Officer in fulï¬lling the responsibilities of the Accounting Officer in terms of this Chapter; or amend or tamper with any tender, quotation, contract or bid after its submission.
a person in the employ of the State whose participation in bidding for the contract may result in a conï¬ict of interest; or any entity in which a person mentioned in paragraphs (a) to (d) is a Director or has a controlling or other substantial interest.
Parliament must have an audit committee appointed by the Executive Authority.
be constituted in a manner that ensures its independence; and consist of at least three persons with appropriate experience and knowledge.
are not employed by Parliament or the state and are not Members of Parliament, a provincial legislature or a municipal council; and have no personal or ï¬nancial interest in any matter related to Parliament.
The Executive Authority must appoint one of the members contemplated by subsection (3), who is knowledgeable of the status of the position and have the requisite business, ï¬nancial and leadership skills, as the chairperson of the committee.
The terms of appointment and remuneration of members of the audit committee contemplated by subsection (3) must be consistent with the requirements for audit committees of other organs of state, taking into account tariffs determined by the South African Institute of Chartered Accountants in consultation with the Auditor-General, and tariffs determined by the National Treasury.
A member of the audit committee who has a personal or ï¬nancial interest in any matter before the committee must disclose that interest and withdraw from the proceedings of the committee when that matter is considered.
report to and advise the Accounting Officer on matters relating to the ï¬nancial and risk management of Parliament; and communicate any concerns it deems necessary to the Executive Authority and the Auditor-General.
must meet as often as required to perform its functions, but at least four times a year; and the internal audit unit of Parliament; and the person designated by the Auditor-General to audit the ï¬nancial statements of Parliament.
If the audit committee becomes aware of information implicating the Accounting Officer in fraud, corruption or gross negligence, it must report this promptly to the Executive Authority and the oversight mechanism.
The Accounting Officer must establish Parliament's internal audit unit which must conduct internal audits in accordance with the standards set by the Institute of Internal Auditors, for the purpose of maintaining consistency with internal audit functions in other organs of state.
a three-year risk-based audit plan; and an internal audit programme for each ï¬nancial year setting out the proposed scope of each audit.
The unit must report quarterly to the Accounting Officer and the audit committee on its performance against the annual audit plan.
be independent of the activities that are audited; and have access to the ï¬nancial records and other relevant information of Parliament.
The statement must include a projection of revenue and expenditure for the remainder of the ï¬nancial year, and any revisions from initial projections.
The amounts reï¬ected in the statement must in each case be compared with the corresponding amounts set out in the projected cash-ï¬ows and in Parliament's budget.
the past year's annual report, and progress on resolving problems identiï¬ed in the report; and performance in implementing the annual performance plan.
The Executive Authority must table the monthly, quarterly and mid-year reports in Parliament within ï¬ve working days of receiving the reports.
Parliament must refer the reports to the oversight mechanism promptly.
For each ï¬nancial year, the Accounting Officer must prepare an annual report.
For each ï¬nancial year, the Accounting Officer must prepare annual ï¬nancial statements in accordance with the standards of generally recognised accounting practice and, in the absence of an applicable standard, in accordance with standards prescribed by the Executive Authority for the purpose of maintaining consistency with other organs of state.
to the Auditor-General for auditing; and to the National Treasury for inclusion in the consolidated ï¬nancial statements.
audit the ï¬nancial statements submitted in terms of section 57; and submit an audit report on those statements to the Executive Authority within two months of receiving the statements.
If the Auditor-General is unable to complete an audit within two months of receiving the ï¬nancial statements, the Auditor-General must promptly submit a report outlining the reasons for the delay to the Executive Authority. The Executive Authority must promptly table the report in Parliament.
Once the Auditor-General has submitted an audit report to the Executive Authority, no person may alter the report or the annual ï¬nancial statements to which the report relates.
The Accounting Officer must submit Parliament's annual report to the Executive Authority so that the Executive Authority is able to table the report in Parliament within ï¬ve months of the end of the ï¬nancial year concerned.
The Executive Authority must table the annual report in Parliament within ï¬ve working days of receiving it.
The annual report, including the audited ï¬nancial statements and audit report, must be made public.
The annual report of Parliament must be referred to the oversight mechanism.
varying the time period within which any act must be performed in terms of this Act if it is necessary to achieve conformity with the budgeting or accounting cycles applicable to the public sector; and any other matter concerning the ï¬nancial management of Parliament that may facilitate the application of this Act.
the Auditor-General may issue a special report on such failure to Parliament which must be made public.
may issue a special report on the delay.
Executive Authority immediately on discovery.
Executive Authority, or the Auditor-General for information, documents, explanations and motivations.
Regulations in terms of subsection (1) may prescribe that the prior approval of the Executive Authority must be obtained for particular actions.
periodically review regulations made in terms of the Act; and when appropriate, ensure that draft amendments are prepared.
The Executive Authority may approve departures from regulations or condone a failure to comply with a regulation provided that the objectives of the Act are not undermined.
The reasons for any decision taken in terms of paragraph (a) must be recorded in writing and submitted to the oversight mechanism promptly.
The Executive Authority must ensure that a draft of any proposed regulations dealing with any matter contemplated in section 34 or Chapter 6 is published for public comment.
Regulations issued by the Executive Authority in terms of subsection (1) may come into effect only after they have been approved by Parliament.
in a parliamentary paper; and in the Government Gazette, if the regulations deal with a matter contemplated by subsection (5).
For the purpose of implementing this Act, the Executive Authority may issue written instructions not inconsistent with this Act or its regulations.
A copy of any instruction issued in terms of subsection (1) must be submitted to the oversight mechanism promptly.
investigate promptly any allegation of ï¬nancial misconduct against the Accounting Officer, unless it is obviously unfounded; and if the investigation warrants such a step, institute disciplinary proceedings promptly and in accordance with any applicable systems and procedures.
investigate any allegation of ï¬nancial misconduct against an official unless it is obviously unfounded; and if the investigation warrants such a step, institute disciplinary proceedings within 30 days in accordance with any applicable systems and procedures.
deliberately mislead or withhold information from the Executive Authority or Auditor-General on any bank accounts of Parliament or on money received or spent by Parliament; or deliberately provide false or misleading information in any document which in terms of a requirement of this Act must be submitted to the Executive Authority or Auditor-General.
any official who exercises ï¬nancial management responsibilities in terms of section 11, to fail to fulï¬l those responsibilities deliberately or in a grossly negligent way; or any official to contravene section 12(3)(b).
It is an offence for any person to contravene sections 44, 45, 46 or 58(3).
A person convicted of an offence in terms of section 69 is liable to a ï¬ne or to imprisonment for a period not exceeding ï¬ve years.
the word ''Parliament,'' in section 13(5).
This Act is called the Financial Management of Parliament Act, 2009 and comes into operation on assent by the President and in accordance with the transitional arrangements set out in Schedule 4 to this Act.
require ï¬nancial statements to be submitted to the legislature and made accessible to the public; and require the legislature to comply with the standards of generally recognised accounting practice.
The object of this Code is to enhance the conï¬dence of the public and Members in the integrity of the management of Parliament. It applies to the members of the Executive Authority of Parliament and supplements the parliamentary Code of Conduct for Assembly and permanent Council members. It recognises that in holding high public office members of the Executive Committee have an obligation to perform their official functions and duties in a way that will bear the closest public scrutiny, an obligation that is not discharged by simply acting within the law.
Members of the Executive Authority must conform to the principles of good governance set out in this Schedule.
act in all respects in a manner that is consistent with the integrity of their office; and arrange their private affairs in a manner that will prevent real, potential or apparent conï¬icts of interests from arising and, if such a conï¬ict does arise, resolve the conï¬ict in favour of the interests of Parliament and the public.
receive remuneration for any work or service other than for the performance of their functions as members of the Executive Authority; or use any allowance provided by Parliament for a purpose other than that for which it was provided.
Any complaints concerning adherence to this Code must be determined by the parliamentary committee established under the Rules of Parliament to oversee the Code of Conduct for Assembly and permanent Council members.
the circumstances in which a contract or agreement procured through the supply chain management policy of Parliament may be amended by the parties.
Act comes into effect.
ï¬nancial year after the Act comes into effect.
Schedule comes into effect, Parliament shall continue to comply with any applicable requirement on the Public Finance Management Act and its regulations.
Until such time as any regulation that must be made in terms of this Act comes into force, any policies, regulations or rules concerning the subject-mater of such regulation remain in force.
Accounting Officer as required in terms of section 8, an agreement must be concluded 15 within a month.
if a power or duty was delegated to the holder of an office in Parliament before the Act came into effect, the holder of that office and any future holder of the office may continue to exercise the power or perform the duty.
42 anticipate are made in terms of section 65.
Regulations required by this Act must be made within a reasonable time of the Act coming into effect.