SCHEDULE Treasury Regulations for departments, …

1 The Minister of Finance has, in terms of Section 78 of the PFMA, published the enclosed draft Treasury Regulations for public comment in Government Gazette No. 25613 dated 28 June 2004. SCHEDULE . Treasury Regulations for departments, trading entities, constitutional institutions and public entities Issued in terms of the Public Finance Management Act, 1999. National Treasury Republic of South Africa March 2005. Contents PART 1: Definitions, application and date of commencement 1. 1. General definitions, application and date of commencement 3. General 3. Application .. 3. Date of commencement .. 4. PART 2: Management arrangements 5. 2. Corporate management 7.

2 Chief financial officer .. 7. 3. Internal control 8. Audit committees .. 8. Internal controls and internal audit .. 9. 4. Financial misconduct 11. Investigation of alleged financial misconduct .. 11. Criminal proceedings .. 11. Reporting .. 11. PART 3: Planning and budgeting 13. 5. Strategic planning 15. Annual preparation of strategic plans .. 15. Submission and contents of strategic plans .. 15. Evaluation of performance .. 15. 6. Budgeting and related matters 16. Annual budget 16. Formats of the annual budget .. 16. Virement .. 16. Rollovers .. 16. Transfer of functions .. 17. Additional funds through an adjustments budget .. 17. Definitions introduced by the new Economic Reporting Format 18.

3 PART 4: Revenue and expenditure management 19. 7. Revenue management 21. i Application .. 21. Responsibility for revenue management .. 21. Services rendered by the state .. 21. 8. Expenditure management 22. Responsibility of the accounting officer .. 22. Approval of expenditure .. 22. Compensation of employees .. 22. Transfers and subsidies (excluding Division of Revenue grants and other allocations to municipalities) .. 23. Division of Revenue grants .. 23. Other allocations to municipalities . 23. Charging of expenditure against a particular vote or main division of a vote .. 24. Recovery, disallowance and adjustment of payments .. 24. 9. Unauthorised, irregular, fruitless and wasteful expenditure 25.

4 General .. 25. PART 5: Asset and liability management 27. 10. Asset management 29. Responsibility for asset management .. 29. Assets accruing to the state by operation of any law .. 29. 11. Management of debtors 30. Application .. 30. Responsibility for the management of debtors .. 30. Recovery of debts by instalments .. 30. Writing off of debts owing to the 30. Interest payable on debts to the state .. 30. 12. Management of losses and claims 31. 31. Claims against the state through acts or omissions .. 31. Claims by the state against other 32. Claims by officials against the 32. Losses or damages through criminal acts or omissions .. 32. Losses and damages through vis major and other unavoidable causes.

5 32. Losses or damages through acts comitted or omitted by officials .. 32. 13. Loans, guarantees, leases and other commitments 34. General .. 34. Lease transactions .. 34. ii 14. Money and property held in trust 35. 35. Responsibility for trust money and property .. 35. Trust money must be kept in a trust account .. 35. Investment of trust 35. PART 6: Frameworks 37. 15. Banking, cash management and investment 39. Control of the national and provincial revenue funds .. 39. Bank account configuration .. 39. Deposits into the revenue 39. Responsibilities of the South African Revenue Service .. 40. Responsibilities of departments .. 40. Withdrawals from and investments in revenue funds.

6 40. Requisitioning of funds by 40. Surrender of voted surplus funds .. 41. Accounting and reporting .. 41. Banking and cash management .. 41. Private money, private bank accounts and cashing private cheques .. 42. Warrant vouchers, cheques and electronic payments .42. 16. Public-private partnerships 43. Definitions .. 43. Exclusive competency of accounting officers and accounting authorities .. 44. Project inception .. 44. Feasibility study - Treasury Approval I .. 45. Procurement - Treasury Approval IIA & IIB .. 46. Contracting public private partnership agreements - Treasury Approval III .. 46. Management of public private partnership agreements .. 46. Amendment and variation of public-private partnership agreements.

7 47. Agreements binding on the 47. 47. 16A Supply Chain Management 49. Definitions 49. Application 49. Supply chain management system 49. Establishment of supply chain management units 50. Training of supply chain management officials 50. Procurement of goods and services 50. Disposal and letting of state assets . 51. iii Compliance with ethical standards .. 52. Avoiding abuse of supply chain management system 52. National Industrial Participation Programme ..53. Reporting of supply chain management information ..53. Interim arrangements 54. PART 7: Accounting and reporting requirements 55. 17. Basic accounting records and related issues 57. Use of clearing and suspense accounts.

8 57. Availability of financial information .. 57. Changes to financial 58. 18. Monthly and annual reports 59. Monthly reports .. 59. Annual financial statements .. 59. Contents of annual reports .. 60. Additional annual reporting requirements for departments controlling trading entities and public entities .. 61. PART 8: Miscellaneous 63. 19. Trading entities 65. Definitions .. 65. 65. Policy and reporting 65. Establishment .. 65. Capital requirements and user 65. Disposal of 66. Surrender of surplus funds .. 66. Monthly and annual reporting .. 66. Closure of a trading entity 66. 20. Commissions and Committees of Inquiry 67. Definitions .. 67. Remuneration of members.

9 67. Services rendered by members during private 67. 21. Gifts, donations and sponsorships 69. Granting of gifts, donations and sponsorships by the state .. 69. Acceptance of gifts, donations and sponsorships to the 69. Gifts or donations of immovable property by or to the 69. iv Identity of donors and 69. 22. Payments and remissions as an act of grace 71. General .. 71. 23. Government payroll deductions 72. Definitions .. 72. Persal deductions .. 73. Deduction codes .. 73. Contravention of Regulations and penalties .. 74. PART 9: Public Entities ..75. 24. General definitions 77. General 77. 25. Application and listing 78. Application .. 78. Listing .. 78. 26.

10 Responsibilities of designated accounting officers 79. Responsibilities over SCHEDULE 3A and 3C public entities .. 79. 27. Internal control and corporate management 80. Audit committees .. 80. Internal controls and internal audit .. 81. Chief financial 82. 28. Annual financial statements and annual reports 83. Financial statements .. 83. Annual reports .. 84. Materiality and Significance Framework .84. 29. Corporate planning, shareholder's compacts and annual budgets 85. Corporate plans .. 85. Shareholder's compact .. 86. Evaluation of performance .. 86. Annual budgets .. 86. 30. Strategic planning 87. Strategic 87. v Evaluation of performance .. 87. 31. Cash, banking and investment management 88.