5-Day Skills Programme:
Demonstrate an Understanding of the Public Finance Management Act (PFMA) & Related Treasury Regulations).
Accredited with PSeta - Aligned to US 377913, NQF Level 5, 15 CREDITS
The Public Finance Management Act, Act 1 of 1999 (PFMA) and Treasury Regulations (TR), require the National and Provincial government sphere departments in South Africa to align their budgets to the achievement of their strategic plans. In order to achieve this, Management in the public sector must be empowered to apply strategic and operational planning principles for effective public service delivery.
This training will include reference to the Institutions 2014 – 2019 Strategic Plans, National Treasury MTEF and Budget Guidelines for 2015. This course is designed to assist managers in the public sector to effectively apply the requirement of the PFMA, TR and other related legislation as well as implement public financial management reform initiatives in the South African public sector.
Module 1: Core Components of the PFMA and Treasury Regulations
Principles of sound public financial management:
- Understand the complexity and transformation in the public sector institutions and the strategic leadership role of the public sector managers
- Familiarise yourself with principles of sound Public Financial Management
- Understand the roles of parliament oversight processes
- Understand the concepts of good corporate governance in the public sector
Core components of the constitution, PFMA and Treasury Regulations:
Formulate linkages between the Constitution and the PFMA
- Explain the roles and responsibilities of the relevant treasuries.
- Understand the roles and responsibilities of key role players of public finance
Module 2: Strategic and Operational Planning and Budgeting
Strategic Planning and Annual Performance Plans:
Determine the implications of the strategic plans and annual performance plans
Linking the Budget to the strategic and operational planning within the MTEF:
- Define a budget and its purpose
- Understand the legislation provisions regarding budgeting
- Align your departmental budget with your department’s strategic business plan
- Apply the various types of costing methods used in budgeting
Module 3: Management of Revenue, Expenditure, Assets and Liabilities (Real)
Revenue, Expenditure, Assets and Liabilities (REAL):
- Describe revenue, expenditure, assets and liabilities management as provided for in the PFMA and TR
- Differentiate between finance and operating leases
- Differentiate between different types of expenditure to reflect unauthorised, irregular, fruitless and wasteful expenditure.
Unauthorised, Irregular, Fruitless and Wasteful Expenditure:
- Overview of
- Review of AG consolidated report
- PFMA roles and responsibilities
- Root causes of the problem
- Managing sources
- AG Findings
- Understanding and applying Legislation, NT Circulars and best Practice
- Supply Chain Management and unauthorised, irregular and fruitless wasteful expenditure
Module 4: Application of Effective Internal Audit, Internal Controls and Risk Management
- Discuss concepts, processes and structures set out in PFMA and TR regarding the following:
- Internal Auditing
- Audit Committees
- Internal Controls
- Risk Management
Module 5: Actions Required for Successful Integration of Supply Chain Management Model
- Demand management;
- Acquisition management;
- Logistics management;
- Disposal management;
- Performance management
COURSE OUTCOMES: During this course on PFMA and TR, you will learn to:
- Familiarise yourself with principles of sound Public Sector Financial Management.
- Identify the Roles and Responsibilities of Line Managers regarding Public Financial Management.
- Understand the Core Components of the PFMA and Treasury Regulations (TR).
- Link the budget to the Strategic and Operational Planning within the MTEF (Medium Term Expenditure Framework).
- Apply a sound public financial management process with regard to Revenue, Expenditure, Assets and Liabilities and prevent Unauthorised, Irregular and Wasteful Expenditure.
- Apply effective Risk Management principles and Internal Control Systems.
- Identify and apply actions required for successful integration of the Supply Chain Management Model into a government department’s management process.