38 Questions
What is the main purpose of the Guide to the PFMA?
To facilitate a general understanding and assist in the smooth implementation of the PFMA
How long is the complete implementation of the Act expected to take?
Several years
What is the primary concern of Chapter 3?
The priorities for implementation of the PFMA
What is the significance of the three sets of Treasury Regulations?
They are necessary for the implementation of the PFMA
Why is the Guide not a substitute for the Act?
Because it is not intended for legal interpretations
What is the purpose of the Division of Revenue Act of 2000?
To address intergovernmental and labour issues
What will be the result of addressing the priorities set out in Chapter 3?
Better management of departments and improved service delivery
What is the significance of the Public Service Regulations?
They are relevant to the complex system of intergovernmental and labour issues
Which of the following topics is related to gifts or payments?
Gifts, donations and sponsorships
What is the title of section 13?
The way forward
What is a key success factor mentioned in the content?
Capacity building
What is the title of section 12?
Implications for executive authorities
Which of the following is related to financial transactions?
Gifts, donations and sponsorships
What is mentioned as an important aspect for 'The way forward'?
National and provincial treasuries
What is the main purpose of the Guide?
To familiarise accounting officers with changes to their responsibilities introduced by the PFMA
What is the main objective of the Government's public sector transformation?
To meet the needs of the people and the objectives of the RDP
How many chapters are introductory in this Guide?
2
What is the focus of Chapter 3 in this Guide?
The most urgent steps accounting officers will take in the next 6-12 months
What is the time period mentioned in Chapter 3?
6-12 months
What is the last section of this Guide about?
The way forward
What is Annexure A about?
Exemptions
What is the purpose of the PFMA?
To upgrade financial management throughout Government
Who should be capacitated to implement the reforms?
Both finance and non-finance professionals
What will accounting officers need to do if they write off losses?
Report on and justify their decisions
What will happen to accounting officers who cannot justify their decisions?
The sanctions prescribed in the Act will come into effect
What is the main benefit of empowering accounting officers?
They will no longer need to request treasuries for procedural controls and approvals
What is the approach to implementation of the reforms?
A collective learning experience for all involved
What is the timeframe for significant improvements in the implementation of the reforms?
12 months
What is one of the essential components for effective implementation of the reforms?
Employing CFOs and accountants
What will be phased in over several years?
The more qualitative changes
What is the deadline for submitting the department's annual report?
Five months of the year-end
What is the purpose of the annual report and the Auditor-General's report?
To provide a basis for evaluating achievements
What is the role of the Office of the Auditor-General?
To focus on performance and compliance auditing
Who is responsible for delivering clearly specified outputs?
The accounting officers
What is the benefit of the reduced timescale for finalizing the annual reports?
It will enhance accountability and provide actual figures for the next budget cycle
Who will consolidate the departmental information to show the Government's overall position?
The Accountant-General
What is the purpose of the interim audits?
To ensure that financial and other records are readily available for auditing at year-end
What is submitted to the Parliament?
The department's annual report
Study Notes
Purpose of the Guide
- The Guide is designed to familiarise accounting officers with the changes to their responsibilities introduced by the Public Finance Management Act (PFMA).
- The Guide aims to facilitate a general understanding and assist in the smooth implementation of the PFMA.
Background to the Act
- The Government has prioritised the transformation of the public sector to enable it to meet the needs of the people and the objectives of the Reconstruction and Development Programme (RDP).
- Both finance and non-finance professionals should be suitably capacitated to implement the reforms.
Changes for Accounting Officers
- Accounting officers will have the authority to write off losses, but will have to report on and justify the decisions they take, if necessary to the Auditor-General or to the public accounts committees.
- Departments will no longer need to continually request treasuries to exercise procedural controls and approvals.
Implementation Approach
- Implementation will be a collective learning experience for all involved, as practices that have been in place for many years will be challenged, rethought and modified.
- The more qualitative changes will be phased in over several years, but significant improvements are possible and necessary over the next 12 months.
Key Steps for Implementation
- Employing appropriately qualified and experienced chief financial officers (CFOs) and accountants.
- Setting up effective internal controls.
- Constituting an audit committee.
- Ensuring that the in-year management requirements are met.
Reporting Cycle
- The accounting officer must submit the department’s annual report containing the audited financial statements and the Auditor-General’s report to the relevant treasury and the executive authority within five months of the year-end.
- The Accountant-General will consolidate the departmental information to show Government’s overall position.
Audit and Oversight
- The Office of the Auditor-General will focus on performance as well as compliance auditing.
- Departments and the Auditor-General must cooperate to ensure that annual reports are finalised within five months of the year-end.
This quiz covers the impact of the Municipal Financial Management Act on national and provincial departments, including the planning, implementation, and reporting cycles. It also touches on the role of the national Treasury in guiding financial management improvement.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
