1. PFMA and Parliament’s Oversight
Presentation to Arts and Culture Portfolio Committee
16 March 2010

2. Presentation Outline Legal Framework
PFMA and Parliament’s oversight role
Portfolio Committees and the Money Bills Amendment Procedures and Related Matters Act (2009)

3. Legal Framework
The Constitution of the Republic of S.A., Chapter 13
Public Service Act, 1994 and Regulations
Public Finance Management Act, 1999 and Treasury Regulations 2005
Money Bills Amendment Procedures and Related Matters Act (2009)

4. PFMA (Act No 1 of 99, Amended by Act 29 of 99)
Focus on outputs & responsibilities
Flexibility with accountability
Clarity of role of accounting officer
“Let the managers manage,
But hold them accountable”
National Treasury

5. Aims of the PFMA To regulate financial management…
To ensure all revenue, expenditure, assets, and liabilities … are managed efficiently and effectively;
To provide for the responsibilities of persons entrusted with financial management;
Applicable to all public entities , except the Reserve Bank, Auditor General, higher education institutions and local authorities (own acts)

6. Parliament’s PFMA Roles
Legisl framework for budget, financial management
Constitutional resp.
Protect the integrity to the National Revenue Fund
s.11(2), s.13(3) & s.14
Appropriate funds for government requirements
s.26
Receive annual budgets (by main division of vote)
s.27(1-2)
Receive departments ‘measurable objectives’
s.27(4)
Receive MTEF and macro-economic projections
s.28
Receive adjustments budget
s.30 & s.31
Review unauthorised expenditures
s.34
Oversight of use of funds in emergency situations
s.16(5) & s.25(4-5)
Review unfunded mandates
s.35
Receive and publicise audited annual financial statements
s. 8(3-5), s.19(3-5), s.40(1e), s.55(3), s.65(1a)
Receive annual reports and other documents
s.65(1a)
Receive information on the discharge of auditors by public entities
s.59(3)
Receive AG’s reports
s.62(4)
Receive information on financial misconduct by accounting officers
s.65(1b)

7. Money Bills Amendment Procedures and Related Matters Act (2009)
Parliamentary Committees to annually assess the performance of departments using:
ENE of dept, with strategic priorities and measurable objectives
Strategic Plan
Expenditure reports (Section 32 of the PFMA) and quarterly reports to SCoA
Financial Statements and Annual reports
SCoPA reports
Any other relevant info
PCs to annually submit budgetary review and recommendation report on dept’s service delivery performance

8. Thank You