Public Finance Management Act, 1999 (Act No. 1 of 1999)

Regulations

Treasury Regulations for Departments, Constitutional Institutions and Public Entities

Part 3 : Planning and budgeting

5. Strategic Planning

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5.1Annual preparation of strategic plans

 

Each year, the accounting officer of an institution must prepare a strategic plan for the forthcoming MTEF period for approval by the relevant executive authority.

 

5.2Submission and contents of strategic plans

 

5.2.1In order to facilitate the discussion of individual votes, the approved strategic plan must be tabled in Parliament or the relevant legislature at least 7 days prior to the discussion of the department’s budget vote.

 

5.2.2The strategic plan must –
(a)cover a period of three years and be consistent with the institution’s published medium term expenditure estimates;
(b)include specific Constitutional and other legislative, functional and policy mandates that indicate the output deliverables for which the institution is responsible;
(c)include policy developments and legislative changes that influence programme spending plans over the three-year period;
(d)include the measurable objectives, expected outcomes, programme outputs, indicators (measures) and targets of the institution’s programmes;
(e)include details of proposed acquisitions of fixed or movable capital assets, planned capital investments and rehabilitation and maintenance of physical assets;
(f)include details of proposed acquisitions of financial assets or capital transfers and plans for the management of financial assets and liabilities;
(g)include multi-year projections of income and projected receipts from the sale of assets;
(h)include details of the Service Delivery Improvement Programme;
(i)include details of proposed information technology acquisition or expansion in reference to an information technology plan; and
(j)for departments, include the requirements of Chapter 1, Part III B of the Public Service Regulations, 2001.

 

5.2.3The strategic plan must form the basis for the annual reports of accounting officers as required by sections 40(1)(d) and (e) of the Act.

 

5.3Evaluation of performance [Section 27(4) read with 36(5) of the PFMA]

 

5.3.1The accounting officer of an institution must establish procedures for quarterly reporting to the executive authority to facilitate effective performance monitoring, evaluation and corrective action.