Checklist of activities / duties in terms of the PFMA, Treasury Regulations and Draft Protocol on Corporate Governance in the public sector : Part 2

• Pages: 73-144
• Date: 01 January 2003
• Author: UFS Legal Department, FDC and the Faculty of Law
• DOI: 10.10520/EJC74015
• Published date: 01 January 2003

PAR T 2

CHECKLIST OF ACTIVITIES/DUTIES IN TERMS OF

THE PFMA,TREASURY REGULATIONS AND

DRAFT PROTOCOL ON CORPORATE

GOVERNANCE IN THE PUBLIC SECTOR

1. PLANNING

1.1 CORPORATE PLAN

(PFMA, section 52(b); TR 29; DP 5.2.6, 5.25, 5.2.11, 5.2.18.2, 6.2.1)

Activity/duty Yes No Steps Person/ Time frame

needed entity for compli-

to respon- ance

comply sible

1Have steps been taken to

ensure that a corporate

plan for the next financial

year will be in place?

2Is the corporate plan in

the prescribed format?

(See TR 29.1.1, DP

5.2.5.2, 5.2.5.6, 5.2.5.8,

5.2.6, 5.2.11, 6.2.1)

3Does the plan cover the

affairs of the FDC for the

next three (3) financial

years?

4Have steps been taken

to ensure that the plan

will be submitted to:

- the accounting officer de-

signated by the MEC for

Tourism, Environmental

and Economic Affairs, and

the Provincial Treasury

at least one (1) month be-

fore the start of the finan-

cial year?

5Does the plan also cover

the activities of all the

FDC’s subsidiaries?

6Does the corporate plan

contain a statement by the

board that it has appropriate

risk management policies

in place and that adequate

systems and expertise are

being applied to achieve

compliance with its risk

policies and procedures?

7Does the corporate plan

include a corporate

objectives statement?

73

1.2 BORROWING PROGRAMME

(TR 29.1.4; DP 5.2.7)

Activity/duty Yes No Steps Person/ Time frame

needed entity for compli-

to respon- ance

comply sible

1Has the FDC been autho-

rized by the Minister of

Finance to borrow money?

2If so, has provision been

made for a borrowing pro-

gramme to be included

with the corporate plan?

3Does the borrowing pro-

gramme cover the next

three years?

4Have steps been taken to

ensure that the borrowing

programme will be submit-

ted to the Provincial

Treasury?

5Is the programme in compli-

ance with the approvals

and limits set by the Minis-

ter of Finance and the

BPPGA?

6Does the borrowing pro-

gramme include the items

listed in TR 29.1.6?

7Does the method of eva-

luating borrowing proposals

comply with the recom-

mended method provided

for in DP 5.2.7.4 or an ap-

proved alternative?

8Is the board satisfied that

the forecasted interest co-

verage ratio will be suffi-

cient to service the debt?

(DP 5.2.7.5)

9Have the most favourable

terms been obtained from

the lending institution?

10 Is the board satisfied that

the risk and return of the

project support the debt

service and meet the

FDC’s benchmark expect-

74