PUB2607 ASSIGNMENT 02 SEMESTER 01 2025 Introduction 3 1. Legislative Framework 3 Key Components of the Legislative Framework 4 Constitution of the Republic of South Africa, 1996 4 Public Finance Management Act (PFMA), No. 1 of 1999 4 National Budget (App

THE BMZ ACADEMY




THE BMZ ACADEMY




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BMZ ACADEMY 061 262 1185/068 053 8213

, THE BMZ ACADEMY

Table of Contents

Introduction ........................................................................................................................... 4


1. Legislative Framework ...................................................................................................... 4


Key Components of the Legislative Framework .................................................................... 5


Constitution of the Republic of South Africa, 1996............................................................. 5


Public Finance Management Act (PFMA), No. 1 of 1999................................................... 5


National Budget (Appropriation Act) .................................................................................. 6


Treasury Regulations and Practice Notes ......................................................................... 6


Municipal Finance Management Act (MFMA), No. 56 of 2003............................................... 6


Division of Revenue Act (DoRA) ....................................................................................... 6


Preferential Procurement Legislation................................................................................. 7


Critical Analysis and Examples ............................................................................................. 7


2. Procedural Framework for Expenditure Control................................................................. 7


Key Components of the Procedural Framework .................................................................... 8


Public Finance Management Act (PFMA) .......................................................................... 8


Treasury Regulations ........................................................................................................ 8


Manual on the Financial Planning and Budgeting System of the State .............................. 8


Procurement Processes .................................................................................................... 8



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Financial Management System (FMS) .............................................................................. 8


Critical Analysis and Examples ............................................................................................. 9


3. Internal Control Framework in Public Expenditure ............................................................. 9


Key Components of the Internal Control Framework ........................................................... 10


Internal Auditing .............................................................................................................. 10


Reporting ........................................................................................................................ 10


Inspection........................................................................................................................ 10


Authorisation ................................................................................................................... 10


Signature......................................................................................................................... 10


Risk Assessment ................................................................................................................ 11


Fraud Plan .......................................................................................................................... 11


Accounting Standards ......................................................................................................... 11


Segregation of Duties ...................................................................................................... 11


Asset Management ......................................................................................................... 11


Critical Analysis and Examples ........................................................................................... 11


Conclusion .......................................................................................................................... 12


References ......................................................................................................................... 13




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