National Treasury 1 December 2004 A framework for accountability Improving financial management and financial information National Treasury 1 December 2004

Accountability framework Accountability clearly assigned Good information Sanctions Follow-up

Accountability clearly assigned PFMA enacted in 2000 Framework legislation Sets out roles and responsibilities Between centre and line Between executive officer and managers Stipulates reporting requirements Sets sanctions Brings public entities into financial management net Supported by Treasury Regulations Implemented over 5 years

Responsibilities of center Responsibilities of National Treasury Developing macro-economic and fiscal framework Coordinate intergovernmental relations Coordinate budget process Manage implementation of budget Manage and enforce revenue, asset and liability management Manage Revenue Fund Determine banking and cash management framework Implement PFMA

Responsibilities of line agency managers Accounting officers (heads of departments) responsible (threat of sanctions) Is responsible for effective, efficient, economical and transparent use of resources in accordance with appropriation act Produces monthly, quarterly and annual financial reports Ensure effective, efficient and transparent systems of financial and risk management and internal control; appropriate procurement Must ensure collection of revenue, prevention of irregular, wasteful and fruitless expenditure

Responsibilities of executive authority Must fulfill statutory responsibilities within appropriation Must consider reports presented by accounting officers Process to determine accountability when political directive can result in unauthorised expenditure

Improved financial information Revamped classification to improve budget transparency, quality of financial reporting Programmatic, administrative, economic and functional Chart of accounts reviewed Better link between budgeting and accounting information New economic reporting format Old line item and economic GFS 2001, but adapted for cash base Terminology adapted for SA Implementation important Garbage in garbage out Worked with line agencies to recode Training programme

Sanctions and follow-up Constitution, PFMA provides framework Role of parliament Is accountability in place? Enforcement and follow-up