scopa 23 september 2003
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National Treasury. PROGRESS REPORT ON PFMA IMPLEMENTATION. SCOPA 23 September 2003. PFMA IMPLEMENTATION NATIONAL TREASURY. Accreditation of training courses Roll-out of large-scale training programme Systems master plan - Jan 2004 ASB fully operational - PowerPoint PPT PresentationTRANSCRIPT
SCOPA23 September 2003
National Treasury
PFMA IMPLEMENTATION NATIONAL TREASURY
Accreditation of training courses
Roll-out of large-scale training programme
Systems master plan - Jan 2004
ASB fully operational
Supply Chain Management Framework
PFMA IMPLEMENTATION DEPARTMENTS AND
CONSTITUTIONAL INSTITUTIONS
Previous reports based on compliance
Normative measures for Financial Management
Measure compliance and qualitative improvements
Progress by departments/institutions presented graphically
National Treasury
13
34
54
49
77
91
0 20 40 60 80 100
Vacancies - Finance Component
Alignment of Finance Component to support CFO
Appointment: Supply Chain Practitioner
Appointment: Management Accountant
Appointment: Financial Accountant
Appointment of CFO
OFFICE OF THE CFOOFFICE OF THE CFO
MANAGEMENT ARRANGEMENTS
60
51
71
80
63
0 20 40 60 80 100
Favourability of Internal Audit findings -Organisation of functions
Favourability of Internal Audit findings -Control mechanisms
Annual revision of policies/procedures
Consistency of policies/procedures withTreasury Regulations
Documented financial policies/procedures
INTERNAL CONTROL (INC. POLICIES/PROCEDURES)INTERNAL CONTROL (INC. POLICIES/PROCEDURES)
MANAGEMENT ARRANGEMENTS (CONT.)
74
83
83
100
0 20 40 60 80 100
Regular feedback on strategies implementedto mitigate risks
Documented Fraud Prevention Plan as part ofrisk strategy
Risk Assessment performed annually
Risk Assessment conducted
RISK MANAGEMENTRISK MANAGEMENT
MANAGEMENT ARRANGEMENTS (CONT.)
63
63
100
91
94
89
57
0 20 40 60 80 100
IA Unit report directly to Accounting Officer
IAP addresses risk areas
IA Unit reports quarterly to the Audit Committee
Rolling 3 year strategic Internal Audit Plan (IAP)
Audit Charter approved by Audit Committee
Head of Internal Audit appointed
System of Internal Audit (IA)
INTERNAL AUDITINTERNAL AUDIT
MANAGEMENT ARRANGEMENTS (CONT.)
66
60
86
94
97
0 20 40 60 80 100
Reports on compliance with legal andregulatory provisions
Reports on risk areas to be covered ininternal and external audit
Reports on effectiveness of internal audit
Meets with external auditors at leastannually
Meets at least twice per annum
EFFECTIVENESS OF AUDIT COMMITTEESEFFECTIVENESS OF AUDIT COMMITTEES
MANAGEMENT ARRANGEMENTS (CONT.)
54
54
69
58
67
0 20 40 60 80 100
Submission: Quarterly reports on performance (2 & 3B)
Conclusion of shareholders compacts (2 & 3B
Submission of Corporate Plans & est i.r.o rev,exp & borrowings (2 & 3B)
Submission: Quarterly performance reports(3A)
Submission: Strategic Plans & estimates ofrev & exp (3A)
NATIONAL PUBLIC ENTITIES (SCH 2/3A/3B)NATIONAL PUBLIC ENTITIES (SCH 2/3A/3B)
MANAGEMENT ARRANGEMENTS (CONT.)
7
42
100
100
0 20 40 60 80 100
Variance of deviation in excess of cashflow projection
Actual expenditure in accordance withcash flow projection
Compliance with Sec 38(1)(j) beforetransferring funds
Regular cash deposits
REVENUE, EXPENDITURE, ASSET AND LIABILITY MANAGEMENT
(REAL) MANAGEMENT
REVENUE AND EXPENDITUREREVENUE AND EXPENDITURE
7
54
63
66
77
89
0 20 40 60 80 100
Bad debts in relation to debtors
Documented debt write off policy
Integration with purchasing and paymentsystem
Clear identification of persons responsible forassets
Classification of different assets
Establishment of Asset Register
ASSET AND LIABILITY MANAGEMENTASSET AND LIABILITY MANAGEMENT
REVENUE, EXPENDITURE, ASSET AND LIABILITY MANAGEMENT (REAL) MANAGEMENT (CONT)
46
31
62
83
100
0 20 40 60 80 100
Accounting officer certifies month endclosures
Uncleared amounts reported to accountingofficer
Postings to suspense/clearing accountsapproved by CFO
Monthly recon of suspense/clearingaccounts
Control measures to ensure authenticsupporting documentation
ACCOUNTING AND REPORTING
ACCOUNTINGACCOUNTING
29
67
65
29
0 20 40 60 80 100
PFMA and Treasury Reg compliance - Quarterlyreporting: 30 days from end of quarter
Rev/Exp - Quarterly reporting (3A) within 30 daysfrom end of quarter
Tabling of explanations if not tabled within 6months
Tabling:Annual Report and Fin Statements -Legislature within 6 months from year end
ACCOUNTING AND REPORTING (CONT)
REPORTING - PUBLIC ENTITIESREPORTING - PUBLIC ENTITIES
83
100
66
97
94
0 20 40 60 80 100
Monthly reports on actual/projected rev&exp
Annual Report/Fin Statements -consistentwith Treasury Guidelines
Tabling of explanations if not tabled by30 Sept 2002
Annual reports tabled in legislature before 30 Sept 2002
Submission of financial statements toTreasury by 31 May 2002
REPORTING- DEPARTMENTSREPORTING- DEPARTMENTS
ACCOUNTING AND REPORTING (CONT)
National Treasury
3
13
38
50
100
75
0 20 40 60 80 100
Percentage of vacancies in the Finance Component
Alignment of Finance Component to support the CFO
Appointment of Management Account
Appointment of Supply Chain Practitioner
Appointment of Financial Accountant
Appointment of competent CFO
MANAGEMENT ARRANGEMENTS
OFFICE OF THE CFOOFFICE OF THE CFO
63
88
88
0 20 40 60 80 100
Documented FraudPrevention Plan as part ofrisk strategy
Regular feedback onstrategies implemented tomitigate risks
Risk Assessmentconducted/Annual RiskAssessment
MANAGEMENT ARRANGEMENTS (CONT)
RISK MANAGEMENTRISK MANAGEMENT
25
25
50
75
0 20 40 60 80 100
Annual revision of policies and procedures
Consistency of policies andprocedures with TR's
Documentation of financialpolicies and procedures
Delegations i.t.o the PFMAand Treasury Regulations
MANAGEMENT ARRANGEMENTS (CONT)
DELEGATIONS OF AUTHORITY AND INTERNAL CONTROLDELEGATIONS OF AUTHORITY AND INTERNAL CONTROL
50
75
63
88
100
0 20 40 60 80 100
IA Unit reports quarterlyto the Audit Committee
IAP addresses riskareas
Rolling 3 year strategicInternal Audit Plan
Audit Charter approvedby Audit Committee
System of Internal Audit(IA) reporting directly toAO
MANAGEMENT ARRANGEMENTS (CONT)
INTERNAL AUDITINTERNAL AUDIT
50
50
88
88
0 20 40 60 80 100
Reports on risk areas to be covered in internaland external audit
Reports: Effectiveness of internalaudit/compliance with legal prov
Meets with external auditors at least annually
Meets at least twice per annum
MANAGEMENT ARRANGEMENTS (CONT)
EFFECTIVENESS OF AUDIT COMMITTEESEFFECTIVENESS OF AUDIT COMMITTEES
25
63
100
63
0 20 40 60 80 100
Documented procedureto monitor performanceagainst SP
SP annually revised
SP compliant withTreasury Regulations
Strategic plan (SP)tabled timeously inlegislature
STRATEGIC PLANNING
3
63
100
0 20 40 60 80 100
Variance of deviation in excess of cashflow projection
Actual expenditure in accordance withcash flow projection
Regular cash deposits
REVENUE, EXPENDITURE, ASSET AND LIABILITY (REAL)
MANAGEMENT
REVENUE AND EXPENDITURE MANAGEMENTREVENUE AND EXPENDITURE MANAGEMENT
38
50
50
100
0 20 40 60 80 100
Integration with purchasing and paymentsystem
Persons responsible for assets
Classification of assets
Establishment of Asset Register
REVENUE, EXPENDITURE, ASSET AND LIABILITY (REAL)
MANAGEMENT (CONT)
ASSET AND LIABILITY MANAGEMENTASSET AND LIABILITY MANAGEMENT
0
25
25
50
50
100
0 20 40 60 80 100
Daily bank reconciliations
Uncleared amounts reported to AO
AO certificate of compliance w.r.t month endclosures
Postings to suspense/clearing accountsapproved by CFO
Monthly recon of suspense/clearing accounts
Control measures: ensure authentic supportingdocuments
ACCOUNTING AND REPORTING
ACCOUNTINGACCOUNTING
0
63
50
0 20 40 60 80 100
Tabling of Sec 65 explanations if nottabled by 30 Sept 2002
Annual report & fin statements tabled inlegislature by 30 Sept 2002
Submission: fin. statements to NationalTreasury by 31 May 2002
ACCOUNTING AND REPORTING(CONT)
REPORTING - CONSTITUTIONAL INSTITUTIONSREPORTING - CONSTITUTIONAL INSTITUTIONS
INTERVENTIONS TO ADDRESS ISSUES OF CONCERN
Financial Management Improvement Programme
Accounting policies, practices, procedures and guidelines related to REAL.
Revised Internal Audit Framework and booklets on various areas of internal control.
Quality assurance reviews on internal units.
RECOMMENDATIONS
NOTE
Progress with Implementation of the PFMA
Interventions to assist departments with PFMA implementation
Next progress report towards end of 2003/04 financial year.
National Treasury