Public Finance Management Act, 1999 (Act No. 1 of 1999)RegulationsTreasury Regulations for Departments, Constitutional Institutions and Public EntitiesPart 9 : Public entities28. Annual financial statements and annual reports |
| 28.1 | Financial statements [Section 55 of the PFMA] |
| 28.1.1 | The annual financial statements must include a report by the accounting authority which must include the disclosure of remuneration in respect of all: |
| (a) | members of the accounting authority; |
| (b) | the chief executive officer or the person in charge of the public entity; |
| (c) | the chief financial officer; |
| (d) | persons serving on the public entity’s senior management; and |
| (e) | members or persons in (a) to (d) above serving in other entities under the ownership control of the public entity. |
| 28.1.2 | Remuneration paid or receivable by the members or persons in paragraph 28.1.1 (a) to (e) shall be disclosed in aggregate and per member or person for the last financial period. |
| 28.1.3 | Disclosures in terms of paragraphs 28.1.1 and 28.1.2 is required whether such payment is receivable in the capacity as indicated in paragraph 28.1.1 (a) to (d) or in any other capacity. |
| 28.1.4 | The disclosure requirements in paragraphs 28.1.1 to 28.1.3 shall include: |
| (a) | fees for services as a member or person in paragraph 28.1.1 (a) to (d); |
| (b) | basic salary; |
| (c) | bonuses and performance related payments; |
| (d) | sums paid by way of expense, salary or other allowances; |
| (e) | contributions made to any pension fund, medical aid, insurance scheme, etc; |
| (f) | any commission, gain or profit sharing arrangements; |
| (g) | any share options, including their strike price and period; and |
| (h) | any other material benefits received. |
| 28.1.5 | Public entities listed in Schedule 3A or 3C of the Act may, after consultation with the designated accounting officer, submit their annual financial statements and any other information required in terms of the Act to the designated accounting officer for inclusion in the relevant department’s annual report. |
| 28.1.6 | In terms of section 55(1)(b) of the Act, public entities shall prepare financial statements in accordance with generally accepted accounting practice. Should the statements materially depart from Statements of GAAP, the financial statements must provide disclosure of the departure, the particulars thereof, the reasons therefore and the effect of such departure on the financial statements. |
| 28.2 | Annual reports [Section 55(1)(d)(i) of the PFMA] |
| 28.2.1 | Any material losses through criminal conduct and any irregular and fruitless and wasteful expenditure must be disclosed as a note to the annual financial statements of the public entity. |
| 28.2.2 | Particulars of the public entity’s strategic objectives and outcomes as identified and agreed on by the executive authority, the key performance measures and indicators for assessing the entity’s performance in delivering the desired outcomes and objectives and the entity’s actual performance against the strategic objectives and outcomes, must be disclosed in the annual report of the public entity. |
| 28.3 | Materiality and Significance [Sections 55(2) and 54(2) of the PFMA] |
| 28.3.1 | For purposes of material [section 55(2) of the Act] and significant [section 54(2) of the Act], the accounting authority must develop and agree a framework of acceptable levels of materiality and significance with the relevant executive authority. |