GOVERNMENT GAZETTE STAATSKOERANT - SAFLII

1 - .- ____ .-- .-.. -. - .._ - , _- ..,_1- ..iL)_, .,----~ ._ /., I , />--,:. - , -J~{i .. ___ ~.lr<-REpuBL C-- ~ .: .,,..-, ~~ ~~ j ~~~~~~OF SOUTH AFRICAGOVERNMENT GAZETTESTAATSKOERANTVAN DIE REPUBLIEK VAN SUID-AFRIKAR egistered at the Post O@ce as a NewspaperAs n Nlillsblad by die Poskantoor GeregistreerCAPE TOWN, 2 MARCH 1999 VOL. 405No. 19814 KAAPSTAD, 2 MAART 1999 IOFFICE OF THE PRESIDENTNo. March 1999It is hereby notified that the President has assented to thefollowing Act which is hereby published for generalinformation: No. 1 of 1999 : Public Finance management Act, VAN DIE PRESIDENTNo. Maart 1999 Hierby word bekend gemaak dat die President sy goed-keuring geheg het aan die onderst~ande Wet wat hierby teralgemene irrligting gepubliseer word: No.}

2 1 van 1999 : \Vet op Openb~re Finansiele Bestuur. 1999 .(EIIgl;sll tf.~t signed by tlze President.)( to 2 Marclz 1999 . )ACTTo regulate financial management in the national GOVERNMENT ; to ensure that allrevenue, expenditure, assets and liabilities of that GOVERNMENT are managedefficiently and effectively; to provide for the responsibilities of persons entrustedwith financial management in that GOVERNMENT ; and to provide for mattersconnected IT ENACTED by the Parliament of the Republic of South Africa, asfollows: ARRANGEMENT OF SECTIONSCHAPTER 1 INTERPRETATION. OBJECT, APPLICATION AND AMENDMENT , THIS ACTD efinitionsObject of this ActInstitutions to which this Act appliesAmendments to this ActCHAPTER 2 NATIONAL TREASURY AND NATIONAL REVENUE FUNDPart 1: National TreasuryEstablishmentFunctions and powersBanking, cash management and investment frameworkAnnual consolidated financial statementsFinancial statistics and ag&regationsDelegations by National TreasuryPart 2.

3 National Revenue FundControl of National Revenue FundDeposits and withdrawals by South African Revenue Services in RevenueFundsDeposits into National Revenue FundWithdrawal of exclusionsWithdrawals and investments from National Revenue FundUse of funds in emergency situationsCHAPTER 4 NATIONAL BUDGETSA nnual appropriations15J25304No. 19814(; OVI;RX>IENT GAZ13~E, 2 N!ARCH 19~)9.!ct N(). 1. 199YP[ BLIC FINANCE ACT. , budgetsMulti-year budget projectionsExpenditure before annual budget is passedNational adjustments budgetPublishing of reports on state of budgetWithholding of appropriated fundsUnauthorised expenditureCHAPTER 5 DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONSPart 1: Appointment of accounting oficersAccounting oficersActing accounting officersPar( 2.)]

4 Responsibilities of accounting oficers10 General responsibilities of accounting officersAccounting officers responsibilities relating to budgetary control15 Accounting officers reporting responsibilitiesInformation to be submitted by accounting officersAccounting officers responsibilities when assets and liabilities are transferredVlrement between main divisions within votesPart 3: Other oflcials of departments and constitutional institutions20 Assignment of powers and duties by accounting officersResponsibilities of other officialsCHAPTER 6 PUBLIC ENTITIESPart 1: Application of this ChapterApplicationUnlisted public entitiesClassification of public entitiesPart 2: Accounting authorities for public entities25 Accounting authorities30 Fiduciary duties of accounting authoritiesGeneral responsibilities of accounting authoritiesAnnual budget and corporate plan by Schedule 2 public entities andgovernment business enterprisesAnnual budgets by non-business Schedule 3 public entities35 Information to be submitted by accounting authoritiesAnnual reports and financial statementsPart 3.

5 Other oficials of public entitiesAssignment of powers and duties by accounting authoritiesResponsibilities of other officialsPart 4: External auditorsAppointment of auditorsDischarge of auditorsDuties and powers of auditors40(>\,) IYSIJG()\ l:RNMl:NT GAZETTE . 2 1009 ,icl No. 1, 199 YPL BLIC N1.\ .\ CT, ,Reports of audi[orDuties and powers of Auditor-GeneralCHAPTER 7 EXECUTIlzE AUTHORITIESF inancial responsibilities of executive authoritiesExecutive directives having financial implicationsTabling in legislaturesCHAPTER 8 LOANS, GUARANTEES AND OTHER COMMITMENTSPart 1: General principlesRestrictions on borrowing, guarantees and other commitmentsConsequences of unauthorised transactionsRegulations on borrowing by public entitiesGuarantees, indemnities and securities by Cabinet membersPart 2.]

6 Bans by national governmentPurposes for which Minister may borrow moneySigning of loan agreementsInterest and repayments of loans to be direct chargesRepayment, conversion and consolidation of loansObligations from lien over securitiesCHAPTER 9 GENERAL TREASURY MATTERST reasury regulations and instructionsAudit committeesPublishing of draft treasury regulations for public commentDepartures from treasury regulations, instructions or conditionsDetermination of interest rates for debt owing to stateCHAPTER 10F~ANCML MISCONDUCTPart 1: Disciplinary proceedingsFinancial misconduct by officials in departments and constitutional institutionsFinancial misconduct by treasury officialsFinancial misconduct by accounting authorities and officials of public entitiesApplicable legal regime for disciplin~ proceedingsRegulations on financial misconduct procedures101520253035 Part 2: Criminal proceedingsOffences and penaltiesCHAPTER 11 ACCOUNTING STANDARDSE stablishmentBOARD40xA(1.)

7 IYX14G()\ I:RNJII:NT GAZETTE . 2 \lARCH 1999 :tct N(). 1. lYYYI l FIS4 SCE \ T 4CT. Functions of of Board91. Regulations on accounting standards of BoardCHAPTER 12hlISCELLANEOUS92. Exemptions93. Transitional provisions94. Repeal of legislation95. Short title and commencement510 SCHEDULESCHAPTER 1 INTERPRETATION, OBJECT, APPLICATION AND AMENDMENT OFTHIS ACTD efinitions151. In this Act, unless the context otherwise indicates accounting oficer means a person mentioned in section 36; accounting authority means a body or person mentioned in section 49; Accounting Standards Board means the board established in terms of section87;20 annual Division of Revenue Act means the Act of Parliament which mustannually be enacted in terms of section 214(1) of the Constitution; constitutional institution means an institution listed in Schedule l; department means a national department.

8 Executive authority -25(a) in relation to a national department, means the Cabinet member who isaccountable to Parliament for that department; and(b) in relation to a national public entity, means the Cabinet member who isaccountable to Parliament for that public entity or in whose portfolio it falls; financial year -30(a) means a year ending 31 March; or(b) in relation to a national public entity that existed when this Act took effect andthat has a different financial year in terms of other legislation, means thatfinancial year, provided the National Treasury has approved that otherfinancial year;35 financial statements means statements consisting of at least (a) a balance sheet:(b) an income statement;(c) a cash-flow statement;(d) any other statements that may be prescribed; and40(e) any notes to these statements.

9 Fruitless and wasteful expenditure means expenditure which was made in vainand would have been avoided had reasonable care been exercised; generally recognised accounting practice means an accounting practicecomplying in material respects with standards issued by the Accounting Standards 45 Board; irregular expenditure means expenditure, other than unauthorised expendi-ture, incurred in contravention of or that is not in accordance with a requirement ofany applicable legislation. including (a) this Act; or50(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulationsmade in terms of that Act; main division within a vote me~s one of the main segments into which a voteis divided and which (u) specifies the total amount which is appropriated for the items under thatsegment: and(/J) is approled by Parliament as part of the vote: Minister.

10 Means the Minister of Finance; national department. means 5(u) a department lis[ed in Schedule 1 of the Public Service Act, 1994(Proclamation No. 103 of 1994), but excluding a provincial administration; or(b) an organisational component listed in Schedule 3 of that Act; national GOVERNMENT business enterprise means an entity which (a) is a juristic person under the ownership control of the national executive; 10(b) has been assigned financial and operational authority to carry on a businessactivity;(c) as its principal business. provides goods or services in accordance withordinary business principles: and(d) is financed fully or substantially from sources other than (i) the National Revenue Fund; or15(ii) by way of a tax, le~y or other statutory money; national public entity means (a) a national GOVERNMENT business enterprise; or(b) a board, commission, company, corporation, fund or other entity (other than a 20national GOVERNMENT business enterprise) which is (i) established in terms of national legislation ;(ii) ful]