Public Finance Management Act , 1 of 1999 : a compliance strategy

Abstract

The Public Finance Management Act, 1 of 1999, as amended by Act 29 of 1999 (PFMA), serves to modernise financial management in the South African Public Service in order to support the processes of public administration, which are focused on achieving sustainable development and high-level public services. Overall, the PFMA introduces a uniform system of public sector financial management, which improves on the erstwhile system in which accountability was undermined because different legislation applied to different entities, and expenditure control was too narrowly regulated. Compliance with the PFMA is compliance with the International Financial Reporting Standards (IFRSs). However, compliance with the PFMA remains a challenge. This article is aimed at suggesting a strategy for improving such compliance.