SCOPA BRIEFING
The Mandate, role and functions of the National Treasury
and Provincial Treasuries
Presenter: Michael Sass
|
Accountant-General, SA
| 19 August 2014
AGENDA
• PFMA powers of the National Treasury;
• National Treasury actions required to implement the PFMA;
• MFMA powers of the National Treasury;
• National Treasury actions required to implement the PFMA;
• Purpose and functions of the Office of the Accountant – General (OAG);
• Business units within the OAG responsible for PFMA and MFMA related
activities; and
• Support to stakeholders
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PFMA POWERS OF
THE NATIONAL TREASURY
• Promote national government’s fiscal policy framework and co-ordinate
macro-economic policy;
• Co-ordinate inter-governmental financial and fiscal arrangements;
• Manage the budget preparation process;
• Exercise control over implementation of the national budget;
• Facilitate implementation of the annual Division of Revenue Act;
• Monitor implementation of provincial budgets
• Promote & enforce transparency & effective management of REAL; and
• Perform the functions of the National Treasury in terms of the PFMA.
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NATIONAL TREASURY ACTIONS REQUIRED
TO IMPLEMENT THE PFMA
• Prescribe uniform treasury norms and standards;
• Enforce the PFMA and GRAP in national departments;
• Monitor and assess implementation of the PFMA’
• Assist to build capacity for effective and efficient financial management;
• Investigate any system of financial management and internal control;
• Intervene by taking appropriate steps which may include invoking section
100 of the Constitution; and
• Do anything further that is necessary to fulfil its responsibilities.
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MFMA POWERS OF
THE NATIONAL TREASURY
• Fulfil responsibilities in terms of Chapter 13 of the Constitution, 1996;
• Promote objectives of the MFMA:
within the framework of cooperative government (Chapter 2 of
Constitution); and

when co-ordinating inter-governmental financial and fiscal relations.
• Enforce compliance with measures established in terms of section 216(1)
of the Constitution and those contained in the MFMA.
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NATIONAL TREASURY ACTIONS REQUIRED
TO IMPLEMENT THE MFMA
• Monitor the budgets of municipalities;
• Promote good budget and fiscal management by municipalities;
• Monitor and assess MFMA compliance in municipalities;
• Investigate any system of financial management and internal control;
• Take appropriate steps if a municipality commits a breach of this Act; and
• Provincial treasuries must monitor:



MFMA compliance in municipalities in their respective provinces;
Budget preparation of municipalities;
Monthly outcome of budgets;
Submission of reports required in terms of the MFMA.
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OFFICE OF THE ACCOUNTANT-GENERAL
Purpose
• To facilitate accountability, governance and oversight in the public sector
by promoting the effective, efficient, economical and transparent
management of REAL in the SA public sector
Functions
• Technical Support Services;
• Accounting Support and Reporting;
• Internal Audit and Risk Management Support;
• Specialised Audit Services;
• Governance Monitoring and Compliance;
• MFMA Implementation; and
• Capacity Building
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TECHNICAL SUPPORT SERVICES
Purpose
• To develop policies, guidelines and frameworks on matters related to
accounting, internal audit and risk management
Functions
• Develop public sector financial reporting requirements;
•
Participate in the IPSAS Board for the development of local and
international public sector accounting standards;
•
Development of accounting, internal audit and risk management related
frameworks, policies and guidelines for the public sector;
• Develop strategies to migrate from cash to accrual accounting; and
• Contribute towards the development of a chart of accounts for PFMA and
MFMA compliant institutions.
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ACCOUNTING SUPPORT & REPORTING
Purpose
• To provide accounting & reporting support to PFMA and MFMA compliant
institutions; manage and report on the NRF and the RDP Fund.
Functions
• Provide accounting support to PFMA and MFMA compliant institutions;
• Contribute towards the development of policies, guidelines & frameworks;
• Guide implementation of accounting policies, guidelines and frameworks;
• Assist institutions to resolve audit outcomes (accounting related matters);
• Manage and report on the NRF and the RDP Fund;
• Prepare and publish monthly reports on the state of the budget; and
• Prepare annual consolidated financial statements (ACFS); and
• Provide consolidation guidance to provincial treasuries.
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INTERNAL AUDIT (IA) SUPPORT
Purpose
• To provide IA support to all PFMA and MFMA compliant institutions
Functions
• Contribute towards the development of policies, guidelines & frameworks
• Guide the implementation of all IA policies, guidelines and frameworks;
• Assist institutions to resolve audit outcomes (IA related matters);
• Provide technical IA support to all institutions;
• Facilitate implementation of local and international IA best practices;
• Facilitate Quality Assurance Reviews in institutions; and
• Facilitate knowledge sharing initiatives through fora and workshops.
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RISK MANAGEMENT (RM) SUPPORT
Purpose
• To provide RM support to PFMA and MFMA compliant institutions
Functions
• Contribute towards development of policies, guidelines & frameworks;
• Guide implementation of policies, guidelines an frameworks;
• Provide technical RM support to institutions;
• Assist institutions to resolve audit outcomes (RM related);
• Facilitate implementation of local and international RM best practices;
• Facilitate knowledge sharing initiatives through fora & workshops; and
• Provide fraud prevention support to institutions.
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SPECIALISED AUDIT SERVICES
Purpose
• To provide financial management investigative capacity to public sector
institutions in all 3 spheres of government.
Functions
•
Intervene to rectify the breakdown of financial management in PFMA and
MFMA compliant institutions;
•
Investigate incidences of fraud & corruption in institutions;
•
Liaison with investigative organs of state (Hawks and SAPS);
•
Provide assurance on systems of FM and institutional integrity;
• Provide specialised FM training to investigative organs to assist with their
public sector investigations; and
• Serving as expert witnesses during the prosecution of persons charged
with fraud and corruption.
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GOVERNANCE MONITORING AND
COMPLIANCE (PFMA)
Purpose
• Monitor financial management governance and compliance with
legislation in PFMA compliant institutions.
Functions
• Maintain the PFMA and Regulations and the issuing of Instructions;
• Co-ordinate implementation of the PFMA in all institutions;
• Provide guidance on the interpretation and application of the Act;
• Regular monitoring of financial management and the annual submission
of progress reports to SCOPA & the Portfolio Committee on Finance;
• Analysis of audit outcomes and reporting thereof to Cabinet;
• Development of misc. guidelines to assist with PFMA implementation;
• Represent the National Treasury at OECD anti-corruption activities; and
• Provide miscellaneous PFMA support to provincial treasuries.
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MFMA IMPLEMENTATION
Purpose
• Monitor financial management governance and compliance with
legislation in MFMA compliant institutions.
Functions
• Maintain the MFMA, including the issuing of Regulations and Circulars;
• Monitor implementation of the MFMA in all municipal institutions;
• Provide guidance on interpretation and application of the MFMA;
• Assessing the financial maturity of municipal institutions using the
Financial Management Capability Maturity Model (FMCMM);
• Provide templates and related guidance to municipalities on the
development of their delegations of authority; and
• Provide a Municipal Finance Recovery Service (MFRS) for municipalities
experiencing financial management problems.
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CAPACITY BUILDING
Purpose
• To implement the public sector Capacity Building Strategy.
Functions
• Identify FM training needs for the public sector;
•
Coordinate the development of FM training material with the NSG;
•
Develop occupational profiles and training dictionaries for FM personnel;
• Implement interventions to address identified training needs;
• Develop Standard Operating Procedures for departments;
• Manage the National Treasury’s TOPP programme; and
• Manage the Financial Management Improvement Programme.
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SUPPORT TO STAKEHOLDERS
Accounting Support,
implementation of
frameworks and
consolidation of FS
Monitoring FM governance and
compliance with legislation
FMIP
Governance
Development of
frameworks, policies
guidelines &
templates
Special
Audit
Services
Capacity
Building
Risk Management
Support &
implementation of
frameworks
Supply
Chain
Compliance
Unit
Technical
Support
Services
Accounting
Support &
Reporting
OAG
Risk
Management
Support
PFMA & MFMA
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Financial
Management
Capability
Maturity
Model
Internal
Audit
Support
Internal Audit
Support &
implementation of
frameworks
ROLES OF SCOPA
(Protector of the Public Purse)
Specific focus should be placed on:
•
General Report of the Auditor-General
•
Matters raised in the individual audit reports of departments
•
Compliance with Laws and Regulations (including PFMA &TR)
•
Interrogation of instances of unauthorised expenditure, irregular
expenditure and fruitless and wasteful expenditure
•
Functioning of transversal systems and financial, risk and personnel
management systems
•
Supply chain management and contract management
•
Major financial losses suffered by government
•
Corporate governance and Ethics
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ROLES OF SCOPA
(Protector of the Public Purse)
Specific focus should be placed on:
•
Issues of financial probity (e.g. fraud and corruption)
•
Disposal of significant state assets
•
Tenders of national importance
•
Condonation of irregular expenditure
•
Consolidated financial statements of government
•
Information sharing with other committees
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THANK YOU
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