Executive Authority in Governance

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Questions and Answers

Who is considered the 'executive authority' for a national department?

The Cabinet member accountable to Parliament for that department.

What does 'executive authority' mean in relation to a provincial public entity?

The member of the provincial Executive Council accountable to the provincial legislature for that public entity.

What is the standard financial year as defined in the content?

A year ending on 31 March.

Under what condition may a public entity's financial year differ from the standard definition?

If it existed when the Act took effect and has National Treasury approval for a different financial year. Signup and view all the answers

Who is responsible for a provincial department's executive authority?

The member of the Executive Council of the province accountable to the provincial legislature. Signup and view all the answers

What happens to legislation that is inconsistent with subsection (1)?

It is of no force and effect to the extent of the inconsistency. Signup and view all the answers

Where must money received by a provincial legislature or public entity be deposited?

It must be paid into a bank account opened by the entity concerned. Signup and view all the answers

Under what conditions can the National Treasury withdraw exclusions from provincial departments or entities?

If the exclusion is not reasonable under section 226 or necessary for transparency and effective financial management. Signup and view all the answers

Can an exclusion of a provincial government business enterprise company be withdrawn without approval?

No, it cannot be withdrawn without prior written approval from the National Treasury. Signup and view all the answers

What is required for the National Treasury to withdraw an exclusion on a specific kind of money?

The National Treasury must determine the date for withdrawal after consultation with the relevant provincial treasury. Signup and view all the answers

What must be reported to Parliament and the Auditor-General within 14 days?

An amount authorized as per subsection (1). Signup and view all the answers

Who determines the reporting period for funds authorized for the deployment of security services?

The President. Signup and view all the answers

What must be submitted to the National Assembly for tabling according to subsection (4)(a)?

A report to Parliament regarding the authorized expenditure. Signup and view all the answers

Where must expenditure authorized in terms of subsection (1) be included?

In the next adjustments budget or other appropriation legislation within 120 days. Signup and view all the answers

Who is the head of the provincial treasury?

The MEC for finance in the province. Signup and view all the answers

What department constitutes a provincial treasury along with the MEC for finance?

The provincial department responsible for financial matters. Signup and view all the answers

What role does the MEC for finance play in a provincial treasury?

The MEC makes policy and other decisions of the treasury. Signup and view all the answers

What is the primary purpose of reporting authorized amounts to Parliament?

To ensure accountability and oversight of public funds. Signup and view all the answers

What defines a 'provincial public entity'?

A 'provincial public entity' is defined as a provincial government business enterprise or a board, commission, company, corporation, fund, or other entity established by legislation or a provincial constitution, which is funded by the Provincial Revenue Fund and accountable to a provincial legislature. Signup and view all the answers

Explain what constitutes a 'Revenue Fund'.

A 'Revenue Fund' consists of the National Revenue Fund mentioned in section 213 of the Constitution or a Provincial Revenue Fund referenced in section 226 of the Constitution. Signup and view all the answers

What is a 'trading entity' and how is it established?

A 'trading entity' is an entity operating within a department for the sale of goods or services, established with the approval of the National Treasury for national departments or the relevant provincial treasury for provincial departments. Signup and view all the answers

Define 'unauthorized expenditure'.

Unauthorized expenditure refers to overspending of a vote or a main division within a vote, or spending not aligned with the approved purpose of that vote or division. Signup and view all the answers

What role does a 'provincial treasury' play?

A 'provincial treasury' is responsible for managing provincial funds and finances as established in section 17 of the legislation. Signup and view all the answers

What is meant by the term 'vote' in an appropriation act?

A 'vote' is one of the main segments of an appropriation Act that specifies the total amount appropriated per department and must be approved by Parliament or a provincial legislature. Signup and view all the answers

What does 'this Act' encompass?

'This Act' includes any regulations and instructions given in accordance with sections 69, 76, 85, or 91. Signup and view all the answers

How does a 'public entity' differ from a 'provincial public entity'?

A 'public entity' refers to either a national or provincial public entity, whereas a 'provincial public entity' is specifically related to provincial governance. Signup and view all the answers

What is the function of a 'provincial government business enterprise'?

A 'provincial government business enterprise' functions as a public entity that operates primarily for profit within the framework of provincial legislation. Signup and view all the answers

Under what conditions can a departmental trading entity be established?

A departmental trading entity can be established with approval from the National Treasury for national departments or the relevant provincial treasury for provincial departments, following a prescribed framework. Signup and view all the answers

When must the Minister table the national annual budget in the National Assembly?

Before the start of the financial year, or as soon as possible after if exceptional circumstances arise. Signup and view all the answers

What is the deadline for the MEC for finance to table the provincial annual budget?

Not later than two weeks after the national annual budget is tabled. Signup and view all the answers

What must be included in an annual budget according to the prescribed format?

Estimates of all expected revenue and current and capital expenditures. Signup and view all the answers

What does the budget estimate regarding interest and debt?

Estimates of interest and debt servicing charges, along with any repayments on loans. Signup and view all the answers

How should capital expenditure be detailed in the budget?

It must be estimated per vote and per main division within a vote for the financial year. Signup and view all the answers

What type of revenue can be excluded from the relevant Revenue Fund?

Revenue excluded in terms of section 13 (1) or 22 (1). Signup and view all the answers

What financial implications must be projected in the capital expenditure estimates?

Projected financial implications of that expenditure for future financial years. Signup and view all the answers

What is the role of the Minister in relation to provincial budget deadlines?

The Minister may approve an extension of time for the tabling of a provincial budget. Signup and view all the answers

Study Notes

Definitions of Key Terms

Executive Authority:
- National department: Cabinet member accountable to Parliament.
- Provincial department: Executive Council member accountable to provincial legislature.
- National public entity: Cabinet member accountable to Parliament or under their portfolio.
- Provincial public entity: Executive Council member accountable to provincial legislature or under their portfolio.
Financial Year:
- Ends on 31 March, or as approved by the National Treasury for existing public entities with different financial years.
Provincial Public Entity:
- Constituted as a provincial government business enterprise or other entities funded by Provincial Revenue Fund, accountable to provincial legislature.
Revenue Fund:
- National Revenue Fund as per section 213 of the Constitution, or a Provincial Revenue Fund per section 226.
Trading Entity:
- Operates within departmental administration to provide goods/services; established with National Treasury (national) or provincial treasury approval.
Unauthorised Expenditure:
- Overspending or spending not aligned with the approved purpose of a vote.

Budget and Financial Management

Vote Definition:
- Main segments of appropriations in an Act, specifying amounts appropriated per department.
Expenditure Reporting:
- Authorised amounts must be submitted to Parliament and the Auditor-General within 14 days.
- Must be included in the next adjustment budget or other appropriation legislation within 120 days.

Provincial Treasuries and Revenue Funds

Provincial Treasury Structure:
- Established for each province, led by the MEC for finance and includes the provincial department responsible for financial matters.
Withdrawal of Exclusions:
- National Treasury can withdraw exclusions from Provincial Revenue Funds after consulting provincial treasury based on Constitution considerations or for financial transparency.

Annual Budgeting Process

Annual Budget Tabling:
- National budget must be tabled in National Assembly prior to the start of the financial year; provincial budget must be tabled within two weeks thereafter.
Budget Format Requirements:
- Estimates of revenue, current expenditure per vote, debt servicing, capital expenditure per vote, and excluded revenue must be detailed within the budget document.

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Description

This quiz explores the concept of executive authority as defined in relation to national and provincial departments. Understand the roles of Cabinet members and Executive Council members in governance and their accountability to respective legislative bodies. Test your knowledge on these definitions and their implications.