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Public Finance Management Act, 1999 (Act No. 1 of 1999)

Regulations

Treasury Regulations for Departments, Constitutional Institutions and Public Entities

Part 7 : Accounting and reporting requirements

17. Basic accounting records and related issues

 

17.1 Use of clearing and suspense accounts [Section 40(1)(a) of the PFMA]

 

17.1 All the transactions of an institution must be supported by authentic and verifiable source documents, clearly indicating the approved accounting allocation.

 

17.1.2 Should it be necessary, in exceptional cases, to account for revenue and expenditure transactions in a clearing or suspense account because the classification has not been resolved, the accounting officer must ensure that—
(a) the sources of the transactions are readily identifiable;
(b) amounts included in clearing or suspense accounts are cleared and correctly allocated to the relevant cost centres on a monthly basis;
(c) monthly reconciliation’s are performed to confirm the balance of each account; and
(d) reports are provided to the accounting officer about uncleared items on a monthly basis.

 

17.1.3 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.

 

17.2 Availability of financial information [Section 40(1)(a) of the PFMA]

 

17.2.1 Accounting officers of institutions must, subject to the provisions of the relevant national or provincial legislation, retain all financial information in its original form, as follows—
(a) 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
(b) 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.

 

17.2.2 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.

 

17.2.3 Irrespective of paragraph 17.2.1, the following standards apply to the retention of certain types of record—

 

Type of record

Years after which records can be disposed of

General ledger and cash books or similar records

15

Main transaction summary records, including general journals and transaction summaries

 

Internal audit reports

 

System appraisals

10

Primary evidentiary records, including copies of forms issued for value, vouchers to support payments made, pay sheets, returned warrant vouchers or cheques, invoices and similar records associated with the receipt or payment of money

 

Subsidiary ledgers, including inventory cards and records relating to assets no longer held or liabilities that have been discharged

5

Supplementary accounting records, including, for example, cash register strips, bank statements and time sheets

5

General and incidental source documents not included above, including stock issue and receivable notes, copies of official orders (other than copies for substantiating payments or for unperformed contracts), bank deposit books and post registers

5

 

17.2.4 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.

 

17.3 Changes to financial systems

 

17.3.1 Institutions may not amend existing or institute new computerised systems that will affect financial administration without the prior written approval of the National Treasury.