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

Understanding and Using this Act

Normative Measures For Financial Management

Annexure A : User Manual for applying NMFM

E. Accounting and reporting requirements

 

Critical Performance Area

Basic Evaluation

Yes/No

Performance Indicator/Measure/ Requirement

Performance

 

Refer Annexure

Norm

Actual

 
1) Accounting
1) Are revenue and expenditure transactions allocated to a clearing  or  suspense account approved at an appropriate level

 

Delegations in writing exist

CFO

 

E1.1

 
1) Are suspense accounts cleared and reconciled appropriately? [TR 17.1.2]

 

Frequency

Monthly

 

E1.2

Quality of reconciliation

100% reconciled and cleared

Regular reports to accounting officer

Report to AO on uncleared items monthly

Amounts dormant for longer than 6 months

0

Value of cases older than 12 months not written off

0

 
1) Are control measures in place to ensure that all transactions are supported by authentic and verifiable source documents, clearly indicating the approved accounting allocation [TR.17.1.1]

 

Post audit findings

Favourable

 

E1.3

 
1) Are bank reconciliation’s done on a regular basis by the department? [TR15.10.1.2(j)]

 

Frequency

Daily

 

E1.4

 
1) Does the accounting officer ensure that all transactions have been recorded before the closure of accounting months?

 

Compliance

Certificate of compliance signed by the accounting officer

 

E1.5
2) Financial Systems
1) Is the objective within the general ledger aligned with the approved structure of the Estimates of Expenditure of the department?

 

Degree of alignment

100%

 

E2.1

 
1) Is the responsibility structure within the general ledger aligned with the approved organisational structure of the department?

 

Degree o f alignment

100%

 

E2.2

 
1) Is the current approved establishment captured on the PERSAL system?

 

Degree of capturing

100%

 

E2.3

 
1) Are processes in place to ensure suitable absorption of employees into posts on the approved establishment?

 

% of employees employed out of adjustment

0%

 

E2.4

 
1) Does the department conduct regular system training courses to ensure optimal utilisation of the departmental financial systems?

 

Frequency

Annually

 

E2.5

 
1) Is proper maintenance done on the department’s technical infrastructure (i.e. hardware, software, networks, etc)        

 

Acceptable uptime for the users

98%

 

E2.6

Acceptable response time

≤5 seconds

 
1) Are proper Batch control procedures implemented and maintained for Batch systems?

 

Frequency of updating batch control registers

Daily

 

E2.7

 
1) Is there a proper password control strategy in the department?

 

Regular renewal of passwords

≤30 days

 

E2.8

Number of login attempts

≤3
3) Monthly reports
1) Have the actual revenue and expenditure,  projections and variances been submitted in the prescribed format?  [sec 40(4)(b) & (c) of PFMA]

 

Frequency

Monthly

 

E3.1

Timeliness

15 days after month end

Quality

All variances explained, including information on DORA reporting requirements
4) Quarterly reports
1) Is reporting on performance against the strategic plan done on a regular basis?    [TR.5.3.1]

 

Frequency

Quarterly

 

E4.1

Timeliness of reporting

30 days after the end of each quarter

 
1) Do Schedule 3A & 3C Public entities under the control of the department report on a regular basis regarding actual revenue and expenditure? [TR.26.1.1]

 

Frequency

Quarterly

 

E4.2

Timeliness

30 days after end of quarter

 
1) Do Schedule 3A & 3C Public entities report on a regular basis on the extent of compliance with the PFMA and Treasury Regulations?  [TR26.1.2]

 

Frequency

Quarterly

 

E4.3

Timeliness

30 days after end of quarter

Quality

Explanation for non-compliance
5) Annual Reporting
1) Has the department submitted the AFS timeously for audit purposes? [sec 40(1) of PFMA]

 

Compliance

On or before 31 May

 

E5.1

Quality

In accordance with National Treasury  guidelines

 
1) Has the department submitted the annual report, including, the audited financial statements and the audit report, timeously to the executive authority?

 

Compliance

On or before 31 August

 

E5.2

Quality

- Annual report

In accordance with National Treasury Guidelines

 

- Financial statements

Unqualified report

 
1) Has the executive authority responsible for the department tabled the annual report including the financial statements and audit report thereon, timeously to the legislature?  [sec 65(1) of PFMA]

 

Compliance

On or before 30 September

 

E5.3

Non-compliance

Tabling of written explanation in the legislature

 
1) Has the executive authority responsible for the department tabled the annual reports of public entities under his/her control timeously in the legislature?  [sec 65(1) of PFMA]

 

Compliance

Within 6 months after year end

 

E5.4

Non-compliance

Tabling of written explanation in the legislature

 
1) Is the content of the annual report in accordance with the legislative requirements?  [sec 40(3) of the PFMA, TR 18.3 & PSR, Chapter1, Part 111 J]

 

Compliance

100%

 

E5.5

 
1) Is a schedule regarding disciplinary procedures and criminal charges submitted to the relevant treasury and the Auditor-General.  [TR 4.3.3]

 

Frequency

Annually\

 

E5.6

Timeliness

30 days after year end

Quality

Include report on changes made to systems of financial and risk management

 
1) Are any surpluses/ deficits at the end of the financial year for trading entities under your control being declared to the relevant treasury.  [TR 19.7.1]

 

Frequency

Annually

 

E5.7

Timeliness

2 months after year end