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PFMA
Public Finance Management Act — governance for public entities and government departments.
PFMA 1 of 1999Public entitiesAGSA auditsIrregular expenditure

The requirements

The PFMA applies to national and provincial government departments, constitutional institutions, and public entities listed in Schedule 2 and 3 of the Act. Accounting authorities (boards of public entities) and accounting officers (heads of departments) bear personal accountability for compliance. The Auditor-General of SA (AGSA) audits all PFMA entities.

Accounting Authority Duties (§50–52)
Fiduciary duties of boards of public entities — safeguard assets, prevent irregular expenditure, maintain effective systems
SCM Compliance
Supply chain management in accordance with Treasury Regulations — 3-quote process, preferential procurement, PPPFA compliance
Annual Report
Annual report to executive authority within 5 months of financial year end — performance information and financial statements
Internal Audit & Audit Committee
Mandatory internal audit function and audit committee for Schedule 2 and 3 entities
AGSA Clean Audit
Avoiding qualified, adverse, or disclaimer audit opinions — irregular, fruitless, and wasteful expenditure prevention
Anti-Corruption (PRECCA)
Reporting obligations under the Prevention and Combating of Corrupt Activities Act, including mandatory reporting of corruption above R100,000

Mapped in Encircle

This framework contributes to the following governance domains in your Encircle score:

D02 LeadershipD03 RiskD04 ComplianceD11 Assurance
How Encircle maps this framework

Encircle maps PFMA obligations to D02 Leadership (accounting authority duties), D04 Compliance (SCM and regulatory requirements), and D11 Assurance (internal audit and AGSA readiness). A PFMA compliance dashboard tracks your position against all major AGSA audit requirements.

Your PFMA readiness score

Encircle tells you when you are PFMA Audit-Ready — meaning your governance documentation, SCM procedures, and financial management controls meet the requirements that the AGSA will assess. Connect with a public sector governance consultant from the Encircle Network for pre-audit readiness review.

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