PUBLIC FINANCE MANAGEMENT ACT 1 OF 1999 - …

1 PUBLIC FINANCE MANAGEMENT ACT 1 OF 1999 [ASSENTED TO 2 MARCH 1999 ][DATE OF COMMENCEMENT: 1 APRIL 2000](Unless otherwise indicated)(English text signed by the President)as amended byPublic FINANCE MANAGEMENT Amendment Act 29 of 1999 ACTTo regulate financial MANAGEMENT in the national government; to ensure that all revenue, expenditure, assets and liabilities ofthat government are managed efficiently and effectively; to provide for the responsibilities of persons entrusted with financialmanagement in that government; and to provide for matters connected therewith.[NB: The long title has been substituted by s. 47 of the PUBLIC FINANCE MANAGEMENT Amendment Act 29 of 1999 , a provision whichwill come into operation on 1 April 2000. See PENDLEX.]ARRANGEMENT OF SECTIONS[NB: The Arrangement of Sections has been amended by s.]

2 48 of the PUBLIC FINANCE MANAGEMENT Amendment Act 29 of 1999 , aprovision which will come into effect on a date to be determined by the Minister by notice in the Government Gazette. SeePENDLEX.]CHAPTER 1 INTERPRETATION, OBJECT, APPLICATION AND AMENDMENT OF THIS ACT1. Definitions2. Object of this Act3. Institutions to which this Act applies4. Amendments to this ActCHAPTER 2 NATIONAL TREASURY AND NATIONAL REVENUE FUNDPart 1 National Treasury5. Establishment6. Functions and powers7. Banking, cash MANAGEMENT and investment framework8. Annual consolidated financial statements9. Financial statistics and aggregations10. Delegations by National TreasuryPart 2 National Revenue Fund11. Control of National Revenue Fund12. Deposits and withdrawals by South African Revenue Services in Revenue Funds13. Deposits into National Revenue Fund14.

3 Withdrawal of exclusions15. Withdrawals and investments from National Revenue Fund16. Use of funds in emergency situationsCHAPTER 4file:///D|/NEWACT~1/ PUBLIC FINANCE (1 of 51) [3/24/2000 2:08:42 PM]NATIONAL BUDGETS26. Annual appropriations27. National budgets28. Multi-year budget projections29. Expenditure before annual budget is passed30. National adjustments budget32. Publishing of reports on state of budget33. Withholding of appropriated funds34. Unauthorised expenditure CHAPTER 5 DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONSPart 1 Appointment of accounting officers36. Accounting officers37. Acting accounting officersPart 2 Responsibilities of accounting officers38. General responsibilities of accounting officers39. Accounting officers' responsibilities relating to budgetary control40. Accounting officers' reporting responsibilities41.

4 Information to be submitted by accounting officers42. Accounting officers' responsibilities when assets and liabilities are transferred43. Virement between main divisions within votesPart 3 Other officials of departments and constitutional institutions44. Assignment of powers and duties by accounting officers45. Responsibilities of other officialsCHAPTER 6 PUBLIC ENTITIESPart 1 Application of this Chapter46. Application47. Unlisted PUBLIC entities48. Classification of PUBLIC entitiesPart 2 Accounting authorities for PUBLIC entities49. Accounting authorities50. Fiduciary duties of accounting authorities51. General responsibilities of accounting authorities52. Annual budget and corporate plan by Schedule 2 PUBLIC entities and government businessfile:///D|/NEWACT~1/ PUBLIC FINANCE (2 of 51) [3/24/2000 2:08:42 PM]enterprises53.

5 Annual budgets by non-business Schedule 3 PUBLIC entities54. Information to be submitted by accounting authorities55. Annual reports and financial statementsPart 3 Other officials of PUBLIC entities56. Assignment of powers and duties by accounting authorities57. Responsibilities of other officialsPart 4 External auditors58. Appointment of auditors59. Discharge of auditors60. Duties and powers of auditors61. Reports of auditor62. Duties and powers of Auditor-General CHAPTER 7 EXECUTIVE AUTHORITIES63. Financial responsibilities of executive authorities64. Executive directives having financial implications65. Tabling in legislatures CHAPTER 8 LOANS, GUARANTEES AND OTHER COMMITMENTSPart 1 General principles66. Restrictions on borrowing, guarantees and other commitments68. Consequences of unauthorised transactions69.

6 Regulations on borrowing by PUBLIC entities70. Guarantees, indemnities and securities by Cabinet membersPart 2 Loans by national government71. Purposes for which Minister may borrow money72. Signing of loan agreements73. Interest and repayments of loans to be direct charges74. Repayment, conversion and consolidation of loans75. Obligations from lien over securitiesCHAPTER 9 GENERAL TREASURY MATTERS76. Treasury regulations and instructions77. Audit committeesfile:///D|/NEWACT~1/ PUBLIC FINANCE (3 of 51) [3/24/2000 2:08:42 PM]78. Publishing of draft treasury regulations for PUBLIC comment79. Departures from treasury regulations, instructions or conditions80. Determination of interest rates for debt owing to state CHAPTER 10 FINANCIAL MISCONDUCTPart 1 Disciplinary proceedings81. Financial misconduct by officials in departments and constitutional institutions82.

7 Financial misconduct by treasury officials83. Financial misconduct by accounting authorities and officials of PUBLIC entities84. Applicable legal regime for disciplinary proceedings85. Regulations on financial misconduct procedures Part 2 Criminal proceedings86. Offences and penaltiesCHAPTER 11 ACCOUNTING STANDARDS BOARD87. Establishment88. Composition89. Functions of Board90. Powers of Board91. Regulations on accounting standards of Board CHAPTER 12 MISCELLANEOUS92. Exemptions93. Transitional provisions94. Repeal of legislation95. Short title and commencementSCHEDULESCHAPTER 1 INTERPRETATION, OBJECT, APPLICATION AND AMENDMENT OF THIS ACT (ss 1-4)1 Definitions[NB: The definitions of 'department', 'executive authority', ' PUBLIC entity' and 'treasury' have been substituted, definitions of'MEC for FINANCE ', 'provincial department', 'provincial government business enterprise', 'provincial PUBLIC entity' and'provincial treasury' have been inserted and the definitions of 'financial year', 'irregular expenditure', 'main division within avote', 'Revenue Fund', 'trading entity' and 'vote' have been amended by section 1 of the PUBLIC FINANCE MANAGEMENT AmendmentAct 29 of 1999 , a provision which will come into operation on 1 April 2000.]

8 See PENDLEX.]In this Act, unless the context otherwise indicates-'accounting officer' means a person mentioned in section 36;file:///D|/NEWACT~1/ PUBLIC FINANCE (4 of 51) [3/24/2000 2:08:42 PM]'accounting authority' means a body or person mentioned in section 49;'Accounting Standards Board' means the board established in terms of section 87;'annual Division of Revenue Act' means the Act of Parliament which must annually be enacted in terms of section 214 (1) of theConstitution;'constitutional institution' means an institution listed in Schedule 1;'department' means a national department;'executive authority'-(a) in relation to a national department, means the Cabinet member who is accountable to Parliament for thatdepartment; and(b) in relation to a national PUBLIC entity, means the Cabinet member who is accountable to Parliament forthat PUBLIC entity or in whose portfolio it falls;'financial year'-(a) means a year ending 31 March; or(b) in relation to a national PUBLIC entity that existed when this Act took effect and that has a differentfinancial year in terms of other legislation, means that financial year, provided the National Treasury hasapproved that other financial year;'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; and(e) any notes to these statements.

9 'fruitless and wasteful expenditure' means expenditure which was made in vain and would have been avoided had reasonable carebeen exercised;'generally recognised accounting practice' means an accounting practice complying in material respects with standards issued by theAccounting Standards Board;'irregular expenditure' means expenditure, other than unauthorised expenditure, incurred in contravention of or that is not inaccordance with a requirement of any applicable legislation, including-(a) this Act; or(b) the State Tender Board Act, 1968 (Act 86 of 1968), or any regulations made in terms of that Act;'main division within a vote' means one of the main segments into which a vote is divided and which-(a) specifies the total amount which is appropriated for the items under that segment; and(b) is approved by Parliament as part of the vote;'Minister' means the Minister of FINANCE ;'national department' means-(a) a department listed in Schedule 1 of the PUBLIC Service Act, 1994 (Proclamation No.)

10 103 of 1994), butexcluding 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;(b) has been assigned financial and operational authority to carry on a business activity;(c) as its principal business, provides goods or services in accordance with ordinary business principles; andfile:///D|/NEWACT~1/ PUBLIC FINANCE (5 of 51) [3/24/2000 2:08:42 PM](d) is financed fully or substantially from sources other than-(i) the National Revenue Fund; or(ii) by way of a tax, levy 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 national governmentbusiness enterprise) which is-(i) established in terms of national legislation ;(ii) fully or substantially funded either from the National Revenue Fund, or by way of a tax,levy or other money imposed in terms of national legislation; and(iii) accountable to Parliament;'National Treasury' means the National Treasury established by section 5;'overspending'-(a) in relation to a vote, means when expenditure under the vote exceeds the amount appropriated for thatvote; or(b) in relation to a main division within a vote, means when expenditure under the main division exceeds theamount appropriated for that main division, subject to section 43.