Public Finance Management Act, 1999 (Act No. 1 of 1999) Understanding and Using this Act National Treasury Guidelines for Annual Reporting 5. Contents of the Annual Report

 

It is important that institutions, after completion of the financial year, report on the institution’s actual performance as measured against pre-determined objectives.

The report also needs to show that money has been spent in accordance with the appropriations and priorities of Parliament or the relevant Provincial Legislature. To accomplish this, institutions need to adhere to the following guidelines for the compilation of annual reports:

 

PART 1:    GENERAL INFORMATION

PART 2:    HUMAN RESOURCES MANAGEMENT

PART 3:    PROGRAMME PERFORMANCE

PART 4:    AUDIT REPORTS, FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION

 

PART 1: GENERAL INFORMATION

 

The following information must be provided under this particular part:

 

Submission of the annual report to the executive authority

Under this particular sub-heading, the accounting officer should formally submit the annual report to the executive authority responsible for the institution.

 

Introduction by the head of the institution

The head of the institution should summarize the institution’s highlights and indicate publications and key documents published for the period of reporting.

 

Information on the Ministry

A summary should be given as to what work the Ministry is involved with as well as (if practical) the names of institution’s falling under the executive authority’s control. The executive authority should also give an indication of the bills that he or she has submitted to the legislature during the financial year. Further, the executive authority’s official visits abroad, indicating the dates and purposes of visit would ideally complete the information required under this sub-heading.

 

Mission statement

The mission statement must be a concise statement indicating the institution’s fundamental unique purpose that distinguishes it from any other organization of its type and identifies the scope of its operations in terms of its products, services and the market that it serves. The mission is a general statement of an institution’s reason for existence. The mission defines what the institution does, whom it serves and how this should be done.

 

Legislative mandate

The legislative mandate refers to the legislation that governs the existence of the institution and its operations (core mandates). An indication must also be given of the trading and/or public entities controlled by the institution, clearly indicating the:

 

PART 2: HUMAN RESOURCES MANAGEMENT

 

Public Service Regulations

 

The executive authority shall:

 

The following human resource requirements (as required by Part III J of the Public Service Regulations, 1999) must where possible, be presented in a graphic format.

 

Planning and service delivery

 

The core mandates should be addressed under ‘Legislative mandates’ in Part 1, whereas the functions and objectives of the department should be addressed under ‘Organisation’ (Part 2) and Programme Performance (Part 3) respectively.

 

Organisation

 

Job evaluation

 

Remuneration

 

Affirmative action, recruitment, promotions and termination of services

 

 

Performance management and skills development

 

Injury, illness and death

The number and nature of incidents of injury, illness and death resulting from official duty or the work environment.

 

Collective agreements

The number and subject matter of collective agreements entered into.

 

Sick leave

 

Ill- Health

The number of employees discharged due to ill-health.

 

Disciplinary steps

Disciplinary steps taken against employees for, inter alia, unauthorized, irregular and fruitless and wasteful expenditure.

 

PART 3: PROGRAMME PERFORMANCE

 

For the 2000/2001 financial year, the annual reporting framework for programme performance must be in accordance with the programmes (main divisions within the vote) as presented to Parliament and as reflected in the National Treasury’s publications ‘ESTIMATE OF EXPENDITURE TO BE DEFRAYED FROM THE NATIONAL REVENUE ACCOUNT (Blue Book)’ and the NATIONAL EXPENDITURE SURVEY (NES). As from the financial year 2001/2002, the framework must be in accordance with the NATIONAL MEDIUM TERM EXPENDITURE ESTIMATES (NMTEE).

 

The following serves a format for this particular part, using the Department of Trade and Industry as an example:

 

Aim of the Vote

The aim of the Department of Trade and Industry is………

 

Key programmes and achievements

Requiring departments to publish information on key programmes and achievements strengthens the link between annual reporting and budgeting.

 

There must be a distinct link between the annual report and the programmes specified in the budget documentation.

 

The Department of Trade and Industry has achieved ………….

 

Overview and key policy developments: Period covered by the annual report (financial year)

 

Major policy developments that have taken place during the period of review must be reflected here.

 

The Department of Trade and Industry has continued its …………..

 

Key areas of work undertaken by the Department during the year of reporting were ……

 

The Department, in collaboration with the Department of ………

 

PROGRAMME 1: ADMINISTRATION

 

Aim:

 

To conduct the overall management of the Department

 

Policy and developments: ……………………………..

 

Output and service delivery trends: ……………………………..

 

PROGRAMME 2: TRADE, INVESTMENT AND ENTREPRENEURIAL DEVELOPMENT

 

Aim:

To facilitate trade, investment and entrepreneurial development through sectoral policies, investment, export assistance, technology and support to SMME’s

 

Policy developments:

The Trade, Investment and Entrepreneurial Development programme consists of the following eleven sub-programmes:

 

The Environmental Support Fund (ESF) focused on ……

 

The three main activities with the sub-programme Industry development and promotion included:

 

Outputs and service delivery trends

 

*Although section 27(4) of the PFMA (measurable objectives) has been delayed for implementation from 1 August 2002 (2003/2004 financial year), departments are expected to start with initiatives in preparation for its implementation. For the 2000/2001 to 2002/2003 financial years, departments should at least try and furnish the information (as set out in the strategic and operational plans and budget documentation) in the above format, even if not in totality, together with the actual performance.

 

Annexure A provides a guideline for the establishment of Service Delivery Indicators.

 

Transfer payments

 

Information on transfer payments per organisation for the entire financial year must be tabulated as follows:

 

A report must also be included on the institution’s compliance with section 38(1)(j) of the PFMA.

 

PROGRAMME 3: TRADE POLICY AND GLOBAL REPOSITIONING

(Ditto)

 

PROGRAMME 4: BUSINESS REGULATION AND CONSUMER SERVICES

(Ditto)

 

PART 4: AUDIT REPORTS, FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION

 

This part must consist of the following information relevant to the institution:

 

The annual financial statements as required by the Public Finance Management Act (PFMA), 1999 and the Treasury Regulations, must consist of the following:

 

The Office of the Accountant-General will furnish the formats of the financial statements and guidelines for its completion.

In addition to the notes prescribed by the Office of the Accountant-General (in consultation with the Office of the Auditor-General), the following additional information must also be disclosed as notes, as required by the Treasury Regulations: