| 18.1 | Monthly reports [Sections 32(2) and 40(4)(b) and (c) of the PFMA] |
| 18.1.1 | In addition to the reporting requirements of sections 40(4)(b) and (c) of the Act, the accounting officer must also comply with the reporting requirements of the annual Division of Revenue Act. |
| 18.1.2 | A provincial treasury must submit a statement to the National Treasury on actual revenue and expenditure with regard to its revenue fund before the 22nd day of each month in the format determined by the National Treasury. Such a statement must include a certificate to the effect that the information supplied has been verified by the head official of the provincial treasury. The information supplied must be based on information submitted to the provincial treasury by provincial accounting officers in terms of section 40(4)(c) of the Act. |
| 18.2 | Annual financial statements [Section 40(1)(b) of the PFMA] |
In the absence of any implementation dates set for the standards of generally recognized accounting practice issued by the Accounting Standards Board, the following reporting standards comprise generally recognised accounting practice and must be adhered to for the preparation of annual financial statements, unless otherwise approved by the National Treasury:
Reporting entity
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Generally recognised accounting practice
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National and provincial revenue funds
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Annual financial statements must consist of—
| (a) | a statement of liabilities and financially related assets; |
| (b) | a balance sheet (statement of financial position); |
| (c) | an income statement (statement of financial performance); |
| (d) | a cash flow statement; |
| (e) | notes to the annual financial statements; |
| (f) | a report on the financial position of and performance by the Treasury; and |
| (g) | such other statements as may be determined by the National Treasury. |
The annual financial statements must be prepared on a modified cash basis in accordance with the formats prescribed by the National Treasury and must be accompanied by the audit opinion of the Auditor-General.
The annual financial statements must, by means of figures and a descriptive report, explain any other matters and information material to the affairs of the relevant revenue fund.
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Departments
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Annual financial statements must consist of—
| (a) | a balance sheet (statement of financial position); |
| (b) | a statement of changes in equity; |
| (c) | an income statement (statement of financial performance); |
| (d) | a cash flow statement; |
| (e) | an appropriation statement; |
| (f) | notes to the appropriation statement and annual financial statement; and |
| (g) | such other statements as may be determined by the National Treasury. |
The statements must be prepared on a modified cash basis in accordance with the formats prescribed by the National Treasury and must be accompanied by the audit opinion of the Auditor-General.
The annual financial statements must, by means of figures and a descriptive report, explain any other matters and information material to the affairs of the department.
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Trading entities
Constitutional institutions
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Annual financial statements must consist of –
| (a) | a balance sheet (statement of financial position); |
| (b) | an income statement (statement of financial performance); |
| (c) | a cash flow statement; |
| (d) | notes to the annual financial statements; and |
| (e) | such other statements as may be determined by the National Treasury. |
The annual financial statements must be accompanied by the audit opinion of the Auditor-General.
The annual financial statements must conform with generally accepted accounting practice. These statements must fairly represent the financial position at the end of the financial year concerned and cash flows of the institution for the year then ended.
Should these statements materially depart from the Statements of GAAP, the financial statements must provide a disclosure of the departure, the particulars thereof, the reasons therefore and the financial effect of such a departure on the financial statements.
The annual financial statements must, by means of figures and a descriptive report, explain any other matters and information material to the affairs of the institution.
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| 18.3 | Contents of annual reports [Section 40(1)(d) of the PFMA] |
| 18.3.1 | In preparing the annual report of an institution, the accounting officer must— |
| (a) | in the case of a department or trading entity, comply with the requirements prescribed in Chapter 1, Part III J of the Public Service Regulations, 2001; |
| (b) | include information about the institution’s efficiency, economy and effectiveness in delivering programmes and achieving its objectives and outcomes against the measures and indicators set out in any strategic plan for the year under consideration; |
| (c) | include information on transfers and subsidies per organisation for the entire financial year as well as a report on compliance with section 38(1)(j) of the Act; |
| (d) | include all information required in terms of the annual Division of Revenue Act; |
| (e) | include any additional information required by Parliament or the provincial legislature; |
| (f) | report on the use of foreign aid assistance, detailing the source and intended use of the assistance (including the value of any aid-in-kind in rand), performance information on the institution’s use of the assistance, and any pending applications for assistance; |
| (g) | a report from the audit committee as required by paragraph 3.1.13; and |
| (h) | include information on the management of PPP agreements as required by paragraph 16.7.1(f). |
| 18.4 | Additional annual reporting requirements for departments controlling trading entities, and public entities |
| 18.4.1 | A department’s annual report must include a list of trading and/or public entities; controlled by or reporting to the department or responsible executive authority, together with— |
| (a) | an indication of the legislation under which the trading and/or public entity was established; |
| (b) | a statement of the functions of each trading and/or public entity; and |
| (c) | the accountability arrangements established between the accounting officer or executive authority and the management of the trading and/or public entity. |
