• must ensure that that department, trading entity or constitutional institution has and maintains
  • effective, efficient and transparent systems of financial and risk management and internal control;
  • a system of internal audit under the control and direction of an audit committee complying with and operating in accordance with regulations and instructions prescribed in terms of sections 76 and 77;
  • an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost-effective;
  • a system for properly evaluating all major capital projects prior to a final decision on the project;
• is responsible for the effective, efficient, economical and transparent use of the resources of the department, trading entity or constitutional institution;
• must take effective and appropriate steps to
  • collect all money due to the department, trading entity or constitutional institution;
  • prevent unauthorised, irregular and fruitless and wasteful expenditure and losses resulting from criminal conduct; and
  • manage available working capital efficiently and economically;
• is responsible for the management, including the safe-guarding and the maintenance of the assets, and for the management of the liabilities, of the department, trading entity or constitutional institution;
• must comply with any tax, levy, duty, pension and audit commitments as may be required by legislation;
• must settle all contractual obligations and pay all money owing, including inter-governmental claims, within the prescribed or agreed period;
• on discovery of any unauthorised, irregular or fruitless and wasteful expenditure, must immediately report, in writing, particulars of the expenditure to the relevant treasury and in the case of irregular expenditure involving the procurement of goods or services, also to the relevant tender board;


[Para. (g) substituted by s. 19 of Act No. 29 of 1999.]

• must take effective and appropriate disciplinary steps against any official in the service of the department, trading entity or constitutional institution who
  • contravenes or fails to comply with a provision of this Act; 38
  • commits an act which undermines the financial management and internal control system of the department, trading entity or constitutional institution; or
  • makes or permits an unauthorised expenditure, irregular expenditure or fruitless and wasteful expenditure;
• when transferring funds in terms of the annual Division of Revenue Act, must ensure that the provisions of that Act are complied with;
• before transferring any funds (other than grants in terms of the annual Division of Revenue Act or to a constitutional institution) to an entity within or outside government, must obtain a written assurance from the entity that that entity implements effective, efficient and transparent financial management and internal control systems, or, if such written assurance is not or cannot be given, render the transfer of the funds subject to conditions and remedial measures requiring the entity to establish and implement effective, efficient and transparent financial management and internal control systems;
• must enforce compliance with any prescribed conditions if the department, trading entity or constitutional institution gives financial assistance to any entity or person;
• must take into account all relevant financial considerations, including issues of propriety, regularity and value for money, when policy proposals affecting the accounting officer’s responsibilities are considered, and when necessary, bring those considerations to the attention of the responsible executive authority;
• must promptly consult and seek the prior written consent of the National Treasury on any new entity which the department or constitutional institution intends to establish or in the establishment of which it took the initiative; and
• must comply, and ensure compliance by the department, trading entity or constitutional institution, with the provisions of this Act.

(2) An accounting officer may not commit a department, trading entity or constitutional institution to any liability for which money has not been appropriated.

Accounting officers’ responsibilities relating to budgetary control

(1) The accounting officer for a department is responsible for ensuring that -

• expenditure of that department is in accordance with the vote of the department and the main divisions within the vote; and
• effective and appropriate steps are taken to prevent unauthorised expenditure.

(2) An accounting officer, for the purposes of subsection (1), must -

• take effective and appropriate steps to prevent any overspending of the vote of the department or a main division within the vote;
• report to the executive authority and the relevant treasury any impending -
  • under collection of revenue due;
  • shortfalls in budgeted revenue; and
  • overspending of the department’s vote or a main division within the vote; and


[Para. (b) amended by s. 20 (a) of Act No. 29 of 1999.]

• comply with any remedial measures imposed by the relevant treasury in terms of this Act to prevent overspending of the vote or a main division within the vote.

[Para. (c) substituted by s. 20 (b) of Act No. 29 of 1999.]

Reference: PUBLIC FINANCE MANAGEMENT ACT NO. 1 OF 1999