PFMA
nationalprovincialPublic Finance Management Act
The PFMA is the primary financial management legislation for national and provincial government departments, constitutional institutions, and public entities in South Africa. It establishes the framework for budgeting, expenditure management, revenue management, and supply chain management (SCM). The Act requires accounting officers to implement and maintain an effective SCM system that is fair, equitable, transparent, competitive, and cost-effective. The PFMA also establishes the responsibilities of accounting officers and the oversight role of executive authorities.
SCM System Requirement
Every accounting officer must implement a supply chain management system that is fair, equitable, transparent, competitive, and cost-effective (Section 76(4)(c)).
Accounting Officer Responsibility
The accounting officer is personally responsible for ensuring proper financial management and compliance with the PFMA (Section 38).
Unauthorized Expenditure
Strict prohibitions against unauthorized, irregular, and fruitless expenditure with personal liability implications (Section 38(h)).
Annual Financial Statements
Entities must prepare annual financial statements in accordance with GAAP/GRAP and submit for audit (Section 55).
- Verify SCM policy complies with PFMA requirements and Treasury Regulations
- Ensure competitive bidding processes are followed for all procurements above threshold
- Maintain proper records of all procurement decisions and deviations
- Report all irregular and fruitless expenditure as required
- Submit annual financial statements within prescribed timelines