Housing Development Agency Act, 2008
R 385
Public Finance Management Act, 1999 (Act No. 1 of 1999)Understanding and Using this ActGuide for Accounting OfficersAnnexure D: Structure of the PFMA |
The contents of the 12 chapters of the PFMA are summarised below, as are the Treasury Regulations.
Public Finance Management Act
| (1) | Interpretation, objective, application and amendment of the Act (sections 1–4): This chapter deals with definitions, the objectives of the PFMA, the departments to which it applies and a procedure for amending the Act. The PFMA applies to national and provincial departments, and to the entities under their control. The definitions of ownership control, national government business enterprise and public entity determine which entities fall under the control of a national or provincial executive authority. |
| (2) | National Treasury and National Revenue Fund (sections 5–16): This chapter establishes the national Treasury and deals with its composition, functions, powers and responsibilities. It gives effect to section 213 of the Constitution on the management of the NRF, any exclusions to depositing money received, and the authorisation required before any money can be withdrawn from the NRF. |
| (3) | Provincial treasuries and provincial revenue funds (sections 17–25): It establishes provincial treasuries and deals with their composition, powers and functions, and the management of provincial revenue funds. |
| (4) | National and provincial budgets (sections 26–35): It gives effect to section 215 of the Constitution on the timing and content of national and provincial budgets, and sets out the reporting requirements for transparency in the implementation of a budget. It introduces the concept of measures and objectives, and deals with the authorisation of unauthorised expenditure. |
| (5) | Departments and constitutional institutions (sections 36–45): This chapter ensures that constitutional institutions and national and provincial departments appoint accounting officers, and spells out their responsibilities. It also addresses the shifting of funds between programmes and the responsibilities of other officials. |
| (6) | Public entities (sections 46–62): All public entities are to be listed in terms of the PFMA. The chapter outlines the fiduciary and other responsibilities of the controlling bodies. Furthermore, it assigns certain responsibilities to the accounting officer of the department, as designated by the executive authority responsible for the public entity. |
| (7) | Executive authorities (sections 63–65): Executive authorities are defined as Ministers or MECs responsible for a department. This chapter deals with the responsibilities of the executive authorities of departments. |
| (8) | Loans, guarantees and other commitments (sections 66–75): This chapter outlines general principles on borrowing and the issuing of guarantees. It gives effect to section 218 of the Constitution on the issuing of guarantees. |
| (9) | General Treasury matters (sections 76–80): It lists areas over which the national Treasury is empowered to issue uniform norms and standards, and deals with the composition of audit committees. |
| (10) | Financial misconduct (sections 81–86): It defines financial misconduct and lays down the procedures for disciplining public officials guilty of financial misconduct. It also includes provisions for criminal prosecution in cases of gross financial misconduct. |
| (11) | Accounting Standards Board (sections 87–91): An Accounting Standards Board is to be established to set accounting standards for the public sector. The chapter also deals with the composition, powers and functions of the Board. |
| (12) | Miscellaneous (sections 92–95): It deals with sundry matters, including exemptions and transitional provisions. |
Treasury regulations for departments and constitutional institutions
| (1) | Definitions and application (Chapter 1): These regulations relate to departments and constitutional institutions, and to the South African Revenue Services in so far as it collects and administers state revenue. Public entities are covered by a separate set of regulations issued under the Act. |
| (2) | Management arrangements (Chapters 2–4): This part addresses corporate management issues, including the appointment of a CFO and arrangements for internal audit and the audit committee. Chapter 4 relates to financial misconduct. |
| (3) | Planning and budgeting (Chapters 5 & 6): It sets out the requirements and time-frame for quantifying strategic plans over the MTEF period, as well as the arrangements for virement, rollovers and adjustments budgets. |
| (4) | Revenue and expenditure management (Chapters 7–9): The accounting officer’s responsibilities in respect of revenue management, authorising and controlling expenditure (including transfer payments) are set out. Chapter 9 deals with unauthorised, irregular, fruitless and wasteful expenditure. |
| (5) | Assets and liability management (Chapters 10–14): Frameworks are provided for managing revenue due to the state, arranging for payments from debtors, dealing with assets and liabilities, and managing losses and claims. Chapter 13 sets out arrangements for loans, guarantees and other commitments, and Chapter 14 deals with money and property held in trust. |
| (6) | Frameworks (Chapters 15 & 16): Detailed frameworks are provided to cover banking, cash management and investment, and public -private partnerships. |
| (7) | Accounting and reporting requirements (Chapters 17 & 18): The requirements for maintaining accounting records, and the formats for annual financial statements and various other reports are contained in this part of the Regulations. |
| (8) | Miscellaneous (Chapters 19–23): This part deals with sundry matters, including the operation of trading entities; commissions and committees of inquiry; payments, gifts, donations and sponsorships; refunds and remissions as an act of grace; and the repeal of legislation. |
Payroll deduction regulation
This regulation prohibits discretionary deductions from the salary of an employee on the Persal system.
