Government officials and senior executives in state-owned enterprises (SOEs) and constitutional bodies will from September 1, 2024 have to justify their expenditure on hiring consultants, hosting and attending local and international conferences, as well as travel and subsistence.
National Treasury yesterday published the revised cost-containment measures directed to accounting officers in all government departments, constitutional institutions, and public entities as per schedules 2 and 3 of the Public Finance Management Act (PFMA).
This comes as the public finances continue to deteriorate, with the national government having spent R2.04 trillion in the 2022/23 financial year, representing a rise of 6.1% from R1.92trln the previous year, with more than half of total expenses allocated to grants paid to other levels of government, institutions, and foreign governments.
Treasury said accounting officers and accounting authorities must implement control measures to ensure that all expenditure in their institutions is necessary, appropriate, cost-effective, recorded, and reported.
“An accounting officer and accounting authority must ensure that all employees are mindful of the current economic realities and they need to intensify efforts to improve efficiency in spending by reducing non-essential expenditure,” Treasury said.
Accordingly, Treasury said accounting officers must ensure consultants are only used if the required capacity, skills and expertise do not exist in their institutions and that value for money is achieved.
Accounting officers can also host conferences if the expenditure is at market-related rates and determined in an internal policy of the institution. If there is deviation, it must be motivated and recorded in a register at the end of each quarter, and recorded in the annual report at the end of each financial year.
For attending conferences within and outside the country, Treasury said expenditure approved must include conference registration costs, incidental costs, and any other expenditure in relation to the conference.
“Expenditure referred to (above) must exclude costs related to travel and accommodation. An accounting officer or accounting authority must ensure air travel and accommodation arrangements are in line with internal travel policy of the institution,” Treasury said. – BR Reporter