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A framework for accountability Improving financial management and financial information

Learn about the accountability framework in financial management and information at National Treasury enacted in 2000. Roles, responsibilities, sanctions, and follow-up mechanisms are established to ensure transparent resource usage. Improved financial information includes revamped classification, better budget transparency, and enhanced reporting quality. The constitution and PFMA provide a framework for accountability with enforcement by Parliament.

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A framework for accountability Improving financial management and financial information

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  1. A framework for accountabilityImproving financial management and financial information National Treasury 1 December 2004

  2. Accountability framework • Accountability clearly assigned • Good information • Sanctions • Follow-up

  3. Accountability clearly assigned • PFMA enacted in 2000 • Framework legislation • Sets out roles and responsibilities • Between centre and line • Between executive officer and managers • Stipulates reporting requirements • Sets sanctions • Brings public entities into financial management net • Supported by Treasury Regulations • Implemented over 5 years

  4. Responsibilities of center • Responsibilities of National Treasury • Developing macro-economic and fiscal framework • Coordinate intergovernmental relations • Coordinate budget process • Manage implementation of budget • Manage and enforce revenue, asset and liability management • Manage Revenue Fund • Determine banking and cash management framework • Implement PFMA

  5. Responsibilities of line agency managers • Accounting officers (heads of departments) responsible (threat of sanctions) • Is responsible for effective, efficient, economical and transparent use of resources in accordance with appropriation act • Produces monthly, quarterly and annual financial reports • Ensure effective, efficient and transparent systems of • financial and risk management • and internal control; • appropriate procurement • Must ensure collection of revenue, prevention of irregular, wasteful and fruitless expenditure

  6. Responsibilities of executive authority • Must fulfill statutory responsibilities within appropriation • Must consider reports presented by accounting officers • Process to determine accountability when political directive can result in unauthorised expenditure

  7. Improved financial information • Revamped classification to improve budget transparency, quality of financial reporting • Programmatic, administrative, economic and functional • Chart of accounts reviewed • Better link between budgeting and accounting information • New economic reporting format • Old line item and economic • GFS 2001, but adapted for cash base • Terminology adapted for SA • Implementation important • Garbage in garbage out • Worked with line agencies to recode • Training programme

  8. Sanctions and follow-up • Constitution, PFMA provides framework • Role of parliament • Is accountability in place? • Enforcement and follow-up

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