Municipal Financial Management Act Implementation

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Questions and Answers

What is the main purpose of the Guide to the PFMA?

To explain the complete implementation of the Act in a single chapter
To facilitate a general understanding and assist in the smooth implementation of the PFMA (correct)
To outline the priorities for implementation of the PFMA over the next 12 months
To provide a detailed understanding of the PFMA for legal interpretations

How long is the complete implementation of the Act expected to take?

Several months
Over 5 years
Around 12 months
Several years (correct)

What is the primary concern of Chapter 3?

The implementation of the PFMA in public entities
The priorities for implementation of the PFMA (correct)
The role of Parliament and the legislatures
The importance of the Division of Revenue Act of 2000

What is the significance of the three sets of Treasury Regulations?

They are necessary for the implementation of the PFMA (D) Signup and view all the answers

Why is the Guide not a substitute for the Act?

Because it is not intended for legal interpretations (B) Signup and view all the answers

What is the purpose of the Division of Revenue Act of 2000?

To address intergovernmental and labour issues (C) Signup and view all the answers

What will be the result of addressing the priorities set out in Chapter 3?

Better management of departments and improved service delivery (A) Signup and view all the answers

What is the significance of the Public Service Regulations?

They are relevant to the complex system of intergovernmental and labour issues (A) Signup and view all the answers

Which of the following topics is related to gifts or payments?

Gifts, donations and sponsorships (B) Signup and view all the answers

What is the title of section 13?

The way forward (B) Signup and view all the answers

What is a key success factor mentioned in the content?

Capacity building (D) Signup and view all the answers

What is the title of section 12?

Implications for executive authorities (C) Signup and view all the answers

Which of the following is related to financial transactions?

Gifts, donations and sponsorships (B) Signup and view all the answers

What is mentioned as an important aspect for 'The way forward'?

National and provincial treasuries (C) Signup and view all the answers

What is the main purpose of the Guide?

To familiarise accounting officers with changes to their responsibilities introduced by the PFMA (C) Signup and view all the answers

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 (A) Signup and view all the answers

How many chapters are introductory in this Guide?

2 (D) Signup and view all the answers

What is the focus of Chapter 3 in this Guide?

The most urgent steps accounting officers will take in the next 6-12 months (A) Signup and view all the answers

What is the time period mentioned in Chapter 3?

6-12 months (D) Signup and view all the answers

What is the last section of this Guide about?

The way forward (D) Signup and view all the answers

What is Annexure A about?

Exemptions (D) Signup and view all the answers

What is the purpose of the PFMA?

To upgrade financial management throughout Government (C) Signup and view all the answers

Who should be capacitated to implement the reforms?

Both finance and non-finance professionals (C) Signup and view all the answers

What will accounting officers need to do if they write off losses?

Report on and justify their decisions (C) Signup and view all the answers

What will happen to accounting officers who cannot justify their decisions?

The sanctions prescribed in the Act will come into effect (D) Signup and view all the answers

What is the main benefit of empowering accounting officers?

They will no longer need to request treasuries for procedural controls and approvals (D) Signup and view all the answers

What is the approach to implementation of the reforms?

A collective learning experience for all involved (C) Signup and view all the answers

What is the timeframe for significant improvements in the implementation of the reforms?

12 months (B) Signup and view all the answers

What is one of the essential components for effective implementation of the reforms?

Employing CFOs and accountants (A) Signup and view all the answers

What will be phased in over several years?

The more qualitative changes (D) Signup and view all the answers

What is the deadline for submitting the department's annual report?

Five months of the year-end (B) Signup and view all the answers

What is the purpose of the annual report and the Auditor-General's report?

To provide a basis for evaluating achievements (D) Signup and view all the answers

What is the role of the Office of the Auditor-General?

To focus on performance and compliance auditing (D) Signup and view all the answers

Who is responsible for delivering clearly specified outputs?

The accounting officers (A) Signup and view all the answers

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 (B) Signup and view all the answers

Who will consolidate the departmental information to show the Government's overall position?

The Accountant-General (D) Signup and view all the answers

What is the purpose of the interim audits?

To ensure that financial and other records are readily available for auditing at year-end (B) Signup and view all the answers

What is submitted to the Parliament?

The department's annual report (B) Signup and view all the answers

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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.

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