Mpumalanga
South Africa
South Africa
Financial Management of Mpumalanga Provincial Legislature Act, 2010
Act 3 of 2010
- Published in Mpumalanga Provincial Gazette 1820 on 4 June 2010
- Assented to on 20 May 2010
- Commenced on 4 June 2010
- [This is the version of this document from 4 June 2010 and includes any amendments published up to 7 March 2024.]
Chapter 1
Interpretation and objects
1. Definitions
In this Act, unless the context indicates otherwise—"Accounting Officer" means the Secretary to the Legislature, and includes, where appropriate, a person acting as Secretary to the Legislature, duly appointed by the Executive Authority in terms of section 4(3) of this Act;“annual provincial budget” means the annual provincial budget referred to in section 27(2) of the Public Finance Management Act;“annual report”, means the annual report referred to in section 54;“approved budget” means the total amount of funds that the Legislature has-(a)appropriated from the Provincial Revenue Fund for the Legislature in a vote on a provincial appropriation Act; and(b)approved from the Legislature’s own revenue sources in terms of section 15(2)(b);“the Committee” means a committee of the Legislature responsible for oversight in terms of this Act;“Executive Authority” means the Speaker of the Legislature;“financial year” means a year ending 31 March;“fruitless and wasteful expenditure” means expenditure that was made in vain and would have been avoided had reasonable care been exercised;“irregular expenditure” means expenditure, other than unauthorised expenditure, incurred in contravention of, or that is not in accordance with, a requirement of this Act or any other applicable legislation;“legislature” means the provincial Legislature of the Province of Mpumalanga;"main division” means one of the main segments into which the Legislature’s approved budget is divided and which specifies the total amount which is appropriated and approved for the items under that segment;“MEC” means the Member of the Executive Council responsible for Finance in the province;“month” means a calendar month;"official" means an employee of the Legislature or any other person to whom any function is delegated in terms of this Act;"overspending"—(a)in relation to the approved budget of the Legislature means causing expenditure to exceed the amount appropriated and approved for the approved budget; or(b)in relation to a main division within the approved budget of the Legislature, means causing expenditure under the main division to exceed the amount appropriated or approved for that main division;“person in the employ of the state” means(a)a member of the board of directors of any municipal entity;(b)an official of any municipality or municipal entity;(c)an employee of any national or provincial department, national or provincial public entity or constitutional institution within the meaning of the Public Finance Management Act;(d)a member of the accounting authority of any national or provincial public entity; or(e)an employee of the Legislature or a provincial legislature;“political parties” means political parties represented in the Legislature;“prescribed” means prescribed by regulation in accordance with section 64;“Public Finance Management Act” means the Public Finance Management Act, 1999 (Act No. 1 of 1999), as amended;“quarter” means any of the following periods in a financial year:(a)1 April to 30 June;(b)1 July to 30 September;(c)1 October to 31 December; or(d)1 January to 31 March;"standards of generally recognised accounting practice" means an accounting practice complying with the standards issued by the Minister of Finance on the advice of the Accounting Standards Board;“this Act” includes regulations issued in terms of section 64 and Schedules to the Act;“unauthorised expenditure” means—(a)overspending of the Legislature’s approved budget or a main division within that budget;(b)any expenditure from the Legislature's approved budget or a main division within that budget for a purpose unrelated to the approved budget or main division, subject to section 21; and(c)any expenditure of donor funds for a purpose not specified in the agreement with the donor; and“vote” means that portion of the Legislature’s budget which forms part of an appropriation Act and which specifies the total amount of funds to be appropriated from the Provincial Revenue Fund for the Legislature.2. Objects of this Act
The objects of this Act are-Chapter 2
Oversight, Executive Authority and administration of Act
Part 1 – The Committee
3. The Committee
Part 2 – Executive Authority
4. Executive Authority
Part 3 – Administration of Act
5. Accounting Officer
The Accounting Officer is accountable to the Executive Authority for the financial management of the Legislature.6. General financial management functions
The Accounting Officer must ensure that-7. Performance of Accounting Officer
8. Acting Accounting Officer
If the post of Accounting Officer is vacant, or if the Accounting Officer is unable to perform the functions of the post, those functions must be performed by another official designated in writing by the Executive Authority.9. Delegation of authority and duties by Accounting Officer
10. Responsibilities of officials
Every official must-11. Fiduciary responsibilities
Chapter 3
Planning and budgeting
12. Preparation of strategic plan, annual performance plan and budget
The Executive Authority must-13. Strategic plan
14. Annual performance plan
15. Annual budget
16. Submission of drafts of strategic plan, annual performance plan and budget
17. Annual appropriations and approvals
18. Expenditure before the Legislature’s annual budget is passed
19. Unauthorised expenditure
20. Unauthorised expenditure of donor funds
21. Virement between main divisions within the approved budget
22. Treatment of unspent funds
Chapter 4
Cash management and investment
23. Cash management and investment policy
24. Opening of bank accounts
25. Control of bank accounts
The Accounting Officer—26. Withdrawals from bank accounts
27. Restrictions on borrowing, guarantees and other transactions
28. Requisitioning of funds by Accounting Officer
The Executive Authority must determine a process for requisitioning appropriated funds that provides for sound cash-flow management.Chapter 5
Financial management
29. Asset and liability management
30. Revenue management
31. Management of debtors
32. Expenditure management
33. Support for Members and political parties
34. Transfers
35. Budget implementation
The Accounting Officer is responsible for implementing the Legislature’s budget and must ensure that-36. Executive directive with financial implications
37. Impending shortfalls and overspending
The Accounting Officer must-Chapter 6
Supply chain management
38. Application of this Chapter
This Chapter applies to-39. Supply chain management policy
The Executive Authority must prescribe in accordance with section 64 a supply chain management policy which-40. Implementation of supply chain management policy
The Accounting Officer must-41. Unsolicited offers
42. Tenders not recommended
43. Members of the Legislature barred from serving on tender committees
No Member of the Legislature may-44. Interference
No person may-45. Prohibition on contracts
No contract to provide goods or services to the Legislature may be awarded to-Chapter 7
Audit committee and internal audit unit
46. Establishment of audit committee
47. Functions of audit committee
48. Allegations against Accounting Officer
If the audit committee becomes aware of information implicating the Accounting Officer in fraud, corruption or gross negligence, it must report this promptly to the Executive Authority and the Committee.49. Internal audit
Chapter 8
Reporting and auditing
Part 1 – In-year reporting
50. Monthly financial reports
51. Quarterly performance reports
The Accounting Officer must, within thirty days of the end of each quarter, report to the Executive Authority on the Legislature’s performance in implementing the annual performance plan in that quarter.52. Mid-year budget and performance assessment
53. Submission of reports to the Committee
Part 2 – Annual report, financial statements and auditing
54. Preparation of annual reports
55. Preparation of financial statements
56. Submission of annual financial statements
Accounting Officer must, within two months after the end of the financial year, submit the annual financial statements-57. Auditing of annual financial statements
58. Submission of annual report
The Accounting Officer must submit the Legislature's annual report to the Executive Authority within one month of receipt from the Auditor-General.59. Tabling and consideration of annual report
60. Issues raised in audit reports
The Accounting Officer must-61. Consequences of non-compliance with certain provisions
Part 3 – General reporting responsibilities
62. Reporting of irregularities
The Accounting Officer must report particulars of any unauthorised, irregular or fruitless and wasteful expenditure, or the likelihood of any such expenditure, to the Executive Authority immediately on discovery.63. Other information
The Accounting Officer must comply with any request by the Legislature, the Committee, the Executive Authority, or the Auditor-General for information, documents, explanations and motivations.Chapter 9
Regulations and instructions
64. Regulations
65. Instructions
Chapter 10
Financial misconduct
Part 1 – Disciplinary proceedings
66. Financial misconduct by Accounting Officer
67. Financial misconduct by officials
Part 2 – Criminal proceedings
68. Offences
69. Penalties
A person convicted of an offence in terms of section 68 is liable to a fine or to imprisonment for a period not exceeding five years or both.Chapter 11
Miscellaneous
70. Liability of functionaries exercising powers and functions in terms of this Act
71. Repeal of legislation
Sections 3, 4(a), 4(b) and 5 of the Mpumalanga Provincial Legislature Service and Administration Act, 2006 (Act No. 7 of 2006) are hereby repealed.72. Short title and commencement
This Act is called the Financial Management of Mpumalanga Provincial Legislature Act, 2010 and comes into operation after assent by the Premier and from the date of publication in the Provincial Gazette and in accordance with the transitional arrangements set out in Schedule 3 to this Act.History of this document
04 June 2010 this version
20 May 2010
Assented to