COMPLIANCE MANAGEMENT FRAMEWORK Presenter: Sandiso

Transcript:COMPLIANCE MANAGEMENT FRAMEWORK Presenter: Sandiso:
COMPLIANCE MANAGEMENT FRAMEWORK Presenter: Sandiso Thutshini | Director: PFMA Compliance | 08 September 2016 PURPOSE To assist the Accounting Officers/ Authorities of PFMA Compliant institutions to improve the levels of compliance by their respective Institutions with all applicable compliance obligations. 2 LEGISLATIVE REQUIREMENTS Sec 38(1)(n) of the PFMA - AO must comply and ensure compliance by their institutions with the provisions of the Act; TR 3.1.10(f) - the audit committee must, amongst others, review the institution’s compliance with legal and regulatory provisions; and TR 3.2.11(e) - The internal audit function must assist the accounting officer in maintaining efficient and effective controls by evaluating those controls to determine their effectiveness and efficiency, and by developing recommendations for enhancement or improvement. The controls subject to evaluation include compliance with laws, regulations and controls. 3 LEGISLATIVE REQUIREMENTS Cont.. Regulation 14 of the revised Treasury Regulations – Requires AO to ensure that sufficient capacity exists within their institutions to prevent, detect and mitigate any non-compliance with the applicable financial management regulatory framework; How - by establishing a compliance function with such roles and responsibilities as prescribed by National Treasury Instruction. King III – Compliance structure and appointment of Compliance Officer to manage and monitor compliance; King IV – To assist organisations to move beyond a mere compliance (compliance with the letter of the law) to compliance with the spirit of the law. 4 APPLICABILITY OF THE FRAMEWORK National and provincial departments; National and provincial trading entities; Constitutional institutions; and Schedule 3 (a) and 3 (c) public entities. 5 CONSEQUENCE MANAGEMENT Sections 81 of the PFMA - An AO commits an act of financial misconduct if that AA wilfully or negligently— fails to comply and ensure compliance with any provisions of the PFMA; and makes or permits an unauthorised expenditure, an irregular expenditure or a fruitless and wasteful expenditure; and Sections 81(2) of the PFMA - An official to whom a power or duty is assigned in terms of section 44 commits an act of financial misconduct if that official wilfully or negligently fails to exercise that power or perform that duty. 6 CONSEQUENCE MANAGEMENT Cont.. Section 38(1)(h) of the PFMA – AA must take effective and appropriate disciplinary steps against any official who— (i) contravenes or fails to comply with a provision of the PFMA; (ii) commits an act which undermines the financial management and internal control systems of the institution; and (iii) makes