National Treasury

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The National Treasury recognises the critical importance of appropriate and well embedded risk management practices within state institutions and supports these institutions to deliver their constitutional mandates efficiently, effectively and economically.

MFMA Implementation

The legislation requires the National Treasury to promote and enforce transparency and effective management in respect of revenue, expenditure, assets and liabilities in public sector.

It also provides for the National Treasury to investigate any system of financial management and internal control and to do anything further that is necessary to fulfil its responsibilities effectively.

Accordingly, the Risk Management Support Unit was established within the Office of the Accountant-General in the National Treasury, to –

  • Develop, maintain and communicate risk management norms and standards aligned to relevant legislation;
  • Provide technical support and guidance to facilitate implementation of risk management legislation, regulations, norms and standards;
  • Monitor and evaluate the implementation of risk management legislation, regulations, norms and standards;
  • Facilitate risk management capacity building in collaboration with various stakeholders;
  • Facilitate risk management research and knowledge sharing.

National Treasury Public Sector Risk Management Framework Presentation

Section 62(1)(d) of the Municipal Finance Management (MFMA) provides that –

The Accounting Officer must take all reasonable steps to ensure that unauthorized, irregular, fruitless and wasteful expenditure or other losses are prevented.

Risk Management Support
The Risk Management Support Chief Directorate is responsible for providing risk management support to public sector institutions (national and provincial departments, public entities including their subsidiaries and trading entities, municipalities and municipal entities, and independent institutions established by the Constitution).  

The Chief Directorate’s function is to –         

Raise the standard of risk management in the public sector;        
Provide direction, support and guidance to enable public sector institutions to implement and maintain effective systems of risk management;·        
Enhance effectiveness and uniformity of risk management through development and maintenance of the Public Sector Risk Management Framework (including the guideline documents, templates, implementation tools and e-Learning programme);·         
Assist public sector institutions to build their capacity for executing risk management;·         
Facilitate risk management knowledge sharing; and·         
Create a public sector risk management information repository.

Public Sector Risk Management Framework  

The Public Sector Risk Management Framework (Framework) has been developed in response to the requirements of the Public Finance Management Act and Municipal Finance Management Act for Institutions to implement and maintain effective, efficient and transparent systems of risk management and control. A number of supplementary guidelines, templates and implementation tools have been developed to enhance the user’s understanding of the Framework and to facilitate its implementation. 

The Framework is “principles” rather than “prescriptive” based and adopts the approach of elucidating the principles, standards, models and practices proven to support and sustain effective risk management.

National Treasury welcome your comments on the Framework to assist in improving it’s relevance and overall quality

CONTACT NATIONAL TREASURY

Read More – Risk Management Framework

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