Key Elements of the Public Finance Management Act

  • Treasury must prepare consolidated annual financial statements to be submitted to the Auditor-General within three months after financial year-end.
  • Treasury must formulate a framework for cash management and establish appropriate, effective cash management and banking arrangements.
  • For the annual budget, each department must submit to Parliament measurable objectives for each main division within their vote.
  • Establish a system of internal audit under the control and direction of an audit committee.
  • Devise a system for proper evaluating all major capital projects prior to a final decision on such projects.
  • Prevent unauthorised and fruitless expenditure and ensure that expenditure is in accordance with the vote.
  • Prevent overspending and report on overspending.
  • Manage available working capital efficiently and economically, settle all contractual obligations and pay all money owing by the prescribed or agreed period.
  • Obtain assurance regarding effective, efficient and transparent financial management and internal control systems, from entities that Transfer Payments are made to.
  • Comply with measures imposed by the Treasury to prevent overspending of the vote or a main division within the vote.
  • Prepare financial statements for each financial year in accordance with generally recognized accounting practice.
  • Prepare annual reports and financial statements that fairly represent the state of affairs of the department, its business, financial results and performance against objectives and planned financial position.
  • Provide the treasury with a monthly breakdown of revenue and expenditure (budget against actual), explanations of variances and steps which will be taken to ensure remaining within the budget.
  • Ensure articulation and cascading of responsibility, authority and performance expectations to all levels of management (performance management).
  • Report on the collections of revenue due, and shortfalls in budgeted revenue.