Chapter 2 - P rogramme 1 - Department of Defence

| Department of Defence |
Table 2.8 Financial Services Performance and Service Delivery for FY 2007/08
Activities Planned
Management
Interventions
Implement
PFMA/Treasury
Regulations/
practice notes
through enforceable
DODDs/DODIs/
JDPs
Provision of a
budget management
service to obtain
and execute
an appropriate
medium-term
defence budget
Provision of a
financial accounting
service to execute,
account for and
report on financial
transactions
Policy Developments
To provide for the
interim and final
implementation
of the PFMA/
Treasury
Regulations/
practice notes
The provision of
a corporate budget
preparation service
The provision of
a corporate budget
execution service
To provide a
corporate financial
assets and annual
reporting service
To provide stores,
services and related
payment services
Anticipated
Benefit
Unqualified
financial statements
Compliance with
New Economic
Reporting Format
Compliance
with GRAP
and Accounting
Standards, as
prescribed by
National Treasury
Improved budget
control subsystem
on FMS
Improved debtor
management
outputs with regard
to medical debtors
Effective, efficient
and economical
management of
State monies
Accounting Policy: National Treasury is
implementing generally recognised accounting
practices in accordance with the PFMA through the
Treasury Regulations and related Practice Notes. The
Accounting Standards Board is currently establishing
the related standards. Public financial accounting
is consequently migrating from cash to an accrual
basis. The migration from cash to accrual poses a
serious challenge to the Department to comply with
the emergent practices and reporting as prescribed,
Status Actual Achievement
Utilise existing
capabilities and
budget
Use existing
capacity and budget
Use existing
capacity and budget
The initiatives include ensuring
promulgation of legally enforceable
instructions, implementing an integrated
financial management information
system supporting generally recognised
accounting practices and related
standards, building of departmental
capacity and reinforcing accountability
arrangements. Implementation ongoing
as planned.
Conversion tables completed, tested and
implemented. Compliance achieved.
Budget submission complies with
National Treasury guidelines, Exposure
Draft 26 regarding revenue and the
standard on Presentation of Budget
Information in financial statements.
Ongoing In anticipation of the IFMS, the
Financial Management System has been
enhanced to improve the reporting
process to the satisfaction of National
Treasury.
Ongoing Medical debtor system has been
implemented. Health informatics
transfer of electronic information is not
covering all information aspects and is
under development.
Ongoing Safes: The specifications of the newgeneration
Category 4 safes, destined
to replace existing equipment at all
cash offices, are being reconsidered.
The request for procurement will be
submitted as soon as the specifications
are finalised.
Cash offices: The original plan
to secure cash offices individually
(according to the dimensions/
constraints of the buildings/facilities
where such offices are currently housed)
was replaced with the procurement of
modular cashier units that are more
cost-effective and transportable. The
acquisition of the units is in progress.
given the current state of the related supporting
information systems and organisational capacity.
The Department is currently unable to achieve
unqualified financial statements unless deviations
from reporting requirements are authorised by
National Treasury and the required information
support systems are provided. National Treasury
is currently busy with the implementation of an
Integrated Financial Management System. The
Financial Management Division is fully involved in
developing the accounting standards specifying the
requirements of this system as and when required.
45 Annual Report FY 2007 - 2008
| Chapter 2 - Programme 1: Administration |