Older Persons Act, 2006
R 385
Public Finance Management Act, 1999 (Act No. 1 of 1999)RegulationsTreasury Regulations for Departments, Constitutional Institutions and Public EntitiesPart 8 : Miscellaneous19. Trading entities |
| 19.1 | Definitions [Section 76(4)(b) of the PFMA] |
In this regulation, unless the context indicates otherwise, a word or expression to which a meaning has been assigned in the Act, has the same meaning, and—
"head of the trading entity" refers to either –
| (a) | the accounting officer appointed in terms of section 36(3)(b) of the Act; or |
| (b) | an official assigned to head the trading entity in terms of section 44(1)(a) of the Act. |
| 19.2 | General |
| 19.2.1 | For purposes of this regulation, a trading entity is regarded as an entity operating within the administration of a department. All obligations on departments in these regulations apply to trading entities, unless the context indicates otherwise. |
| 19.2.2 | The accounting officer of the department operating a trading entity must ensure that the head of the trading entity complies with the Act and these Treasury Regulations. |
| 19.2.3 | Trading entities allowed to open bank accounts may not borrow for bridging purposes and may not run overdrafts on their banking accounts. |
| 19.3 | Policy and reporting framework |
| 19.3.1 | The accounting officer of a department operating a trading entity must formulate a policy and reporting framework for the head of the trading entity. |
| 19.3.2 | The head of the trading entity is accountable to the accounting officer of the department operating that trading entity and must forward all reports or approvals required in the Act via the accounting officer of the department. |
| 19.4 | Establishment |
| 19.4.1 | Provincial treasuries may only establish a trading entity after consultation with the National Treasury. |
| 19.5 | requirements and user charges |
| 19.5.1 | The capital requirements of the trading entity must be determined in consultation with the relevant treasury, and increases in such requirements are also subject to treasury approval. |
| 19.5.2 | In determining charges for goods or services, the head of the trading entity must aim to recover the full cost of providing the goods or services, unless the relevant treasury approves lower charges. |
| 19.5.3 | The head must review rates for user charges at least annually before the budget, and any tariff increases are subject to approval by the relevant treasury. |
| 19.6 | Disposal of assets |
| 19.6.1 | When assets are disposed of other than in the ordinary course of the business of the trading entity, the relevant treasury must approve the transaction. |
| 19.7 | Surrender of surplus funds |
| 19.7.1 | An accounting officer of a department operating a trading entity must, at the end of each financial year and after books of account have been closed, declare any surplus or deficit to the relevant treasury. The relevant treasury may apply such surplus to reduce any proposed allocation to the trading entity, or require that all or part of it be re-deposited in the Exchequer bank account. |
| 19.7.2 | Where a trading entity suffers a deficit in trading, the accounting officer of the department operating the trading entity must investigate whether— |
| (a) | the head of the trading entity reported any foreseeable potential over-expenditure in the monthly reports; |
| (b) | appropriate steps were taken to address the deficit; and |
| (c) | financial misconduct sanctions should be instituted if paragraphs (a) and (b) were not adhered to. |
| 19.7.3 | In the event of a trading entity incurring a deficit, the accounting officer of the department controlling the trading entity must disclose the financial impact of such a deficit on the department in its annual report. |
| 19.8 | Monthly and annual reporting |
| 19.8.1 | The accounting officer of a department controlling a trading entity must provide the monthly information as required by section 40(4)(b) and (c) of the Act in respect of such a trading entity in the monthly report of the department. |
| 19.8.2 | In the event of the accounting officer of the trading entity not being the accounting officer of the department, then such an accounting officer must provide the information required in Treasury Regulation 19.8.1 to the accounting officer of the department for inclusion in the department’s monthly report. |
| 19.8.3 | The relevant treasury may direct that the annual report and financial statements of the trading entity be incorporated into those of the department responsible for that trading entity. |
| 19.8.4 | The annual financial statements in respect of a trading entity must be compiled in accordance with paragraph 18.2. |
| 19.9 | Closure of a trading entity |
| 19.9.1 | Upon closure of a trading entity, all assets of the trading entity shall be transferred to the controlling department and taken on record. |
