National Treasury: Updated FAQs for 2024/25 Modified Cash Standard

Posted 26 June 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The National Treasury has issued updated guidance for the preparation of departmental financial statements for the 2024/25 reporting cycle.

In terms of the Public Finance Management Act, No. 1 of 1999 (PFMA), the National Treasury Office of the Accountant-General (OAG) has published updated Frequently Asked Questions (FAQs) to support national and provincial departments. These FAQs are specifically designed to assist stakeholders in the preparation and finalisation of Annual Financial Statements (AFS) in accordance with the Modified Cash Standard (MCS).

The updated guidance applies to the 2024/25 financial year and all subsequent reporting periods. The OAG developed these responses to address recurring technical queries encountered during the finalisation of departmental accounts. Access to the full FAQ database is provided via the National Treasury Learning Management System (LMS), which may require users to register a profile for full document retrieval.

For auditors, independent reviewers, and accountants, these updates are relevant to the assessment of statutory compliance. Under the PFMA framework, practitioners must evaluate whether departmental financial statements adhere to the MCS. Failure to apply the guidance correctly may result in:

  • The identification of material misstatements during the audit process;
  • The requirement to qualify audit opinions;
  • Reporting obligations regarding Non-Compliance with Laws and Regulations (NOCLAR); and
  • The potential reporting of Reportable Irregularities where applicable.

Click here to access the National Treasury OAG FAQ portal.

What this means for you, your business, or your clients

  • For yourself: You must register an account on the National Treasury Learning Management System to ensure you have immediate access to the latest technical interpretations of the Modified Cash Standard for the 2024/25 cycle.
  • For your business: Audit and accounting firms must update their internal compliance checklists and audit programmes for the 2024/25 financial year to incorporate these OAG interpretations, ensuring that staff are assessing departmental AFS against the most recent regulatory guidance.
  • For your clients: National and provincial departmental clients must perform a gap analysis between their current accounting treatments and the updated FAQs to ensure that their 2024/25 financial statements are compliant with the MCS before the submission deadline.

Originally published at https://accountingacademy.co.za/news/read/national-treasury-updated-faq-published-for-departments

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