PFMA training explains what the Public Finance Management Act (Act 1 of 1999) expects of the officials who plan, spend and report on public money, and builds the budgeting and reporting skills they need to meet it. A practical public finance management course covers who the Act applies to, the duties of accounting officers, how budgets and financial reports fit together, and how to recognise and prevent irregular and fruitless and wasteful expenditure. BOTI’s two-day course is aimed at managers, budget holders and finance staff in government departments and public entities.
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Public finance courses: why the PFMA is the starting point
Many people searching for a public finance course or a general financial management course work in the public sector. In that setting, budgeting and reporting skills are not just good management. They are legal duties. The PFMA sets out how money is planned, spent, controlled and accounted for in national and provincial government. Every budget holder works inside that framework, whether or not they have a finance title.
BOTI’s Public Finance Management (PFMA) Training brings the two together. It covers the core skills of budgeting, forecasting and reading financial statements, and places them in the context of what the Act requires.
What the Public Finance Management Act is for
In plain terms, the PFMA regulates financial management in national and provincial government. Its aim is that the revenue, expenditure, assets and liabilities of those governments are managed efficiently and effectively. It also sets out the responsibilities of the people entrusted with financial management in government.
This is a summary, not the wording of the Act. Officials who need the exact text should read the Act itself, along with the Treasury Regulations issued under it, which add the detailed rules.
Who the PFMA applies to
The Act covers the public sector outside local government. This includes:
- National government departments
- Provincial government departments
- Public entities, the organisations established by government to deliver a service or run a function at arm’s length
- Constitutional institutions
What about municipalities?
Municipalities and municipal entities are not governed by the PFMA. Their financial management falls under the Local Government: Municipal Finance Management Act (MFMA), Act 56 of 2003. The principles are similar: planned budgets, controlled spending, accountability and reporting. The roles, structures and reporting rules differ, though, so municipal teams should keep the MFMA in view when they apply anything learnt about the PFMA.
Accounting officers and their duties
The PFMA places responsibility for an institution’s finances on named people. In a department, the accounting officer is normally the head of the department. A public entity usually has an accounting authority, such as its board, which carries similar responsibilities.
In broad terms, the accounting officer must:
- keep effective, efficient and transparent systems of financial management, risk management and internal control
- make sure the institution’s resources are used economically, efficiently and effectively
- take reasonable steps to prevent unauthorised, irregular and fruitless and wasteful expenditure
- keep full and proper financial records
- prepare financial statements and report on the institution’s finances and performance
- act when officials do not follow the financial rules
It does not stop with the accounting officer
Officials below the accounting officer also carry responsibilities. A programme manager, a cost-centre manager or a supply chain official is expected to work within the budget, follow the prescribed processes and report problems. This is why PFMA training is useful well beyond the finance unit. Anyone who approves spending, signs off orders or manages a budget line needs to understand the rules they are applying.
Budgets and reporting under the PFMA
Budgets in the public sector are tied to plans. A department’s budget is meant to fund the objectives in its strategic and operational plans, and spending is then tracked against that budget during the year. Good practice at unit level looks like this:
- Plan: link each budget line to an operational objective, so it is clear what the money is for.
- Estimate: use historical spending, known commitments and expected changes to set realistic amounts.
- Monitor: compare actual spending with the budget regularly, not only at year end.
- Explain variances: identify why spending is over or under budget and propose corrective steps.
- Report: give accurate figures to the finance unit and the accounting officer, so the institution’s own reports are reliable.
Reporting is where weak budgeting shows. If unit-level records are incomplete, the institution’s financial statements and annual report suffer, and audit findings follow.
Irregular and fruitless and wasteful expenditure in plain words
These terms appear in audit reports and in the news, and they are often confused. Here is a plain-language summary. Use the definitions in the Act for formal purposes.
Unauthorised expenditure
This is broadly spending that goes beyond the amount voted for a main division of the budget, or spending that is not in line with the purpose of that division. In short, the money was not authorised for what it was spent on.
Irregular expenditure
This is spending that was not incurred in the way the applicable legislation or prescribed processes require. The goods or services may have been delivered and may even have been good value, but the rules were not followed. A common example is a contract awarded without following the required procurement process.
Fruitless and wasteful expenditure
This is spending made in vain that would have been avoided if reasonable care had been taken. Examples include interest and penalties paid because invoices were settled late, or paying for a venue or service that was booked but not used.
Understanding these categories helps officials spot risks before money is spent, which is far easier than explaining the spending afterwards.
What BOTI’s PFMA course covers
The course is a finance and budgeting training course for public sector managers. It works through the practical skills a budget holder needs:
- Key concepts of managerial finance: the accounting cycle, and the financial reports your institution publishes, explained with examples.
- Interpreting financial statements: analysing statements and using ratios to comment on liquidity, working capital, returns and resource use.
- Budgeting concepts and techniques: what a budget is for an area of responsibility, with worked examples of techniques such as forecasting from historical data and zero-based budgeting.
- Elements and constraints of a budget: identifying the resources needed to meet objectives, and the internal and external constraints on the budget.
- Financial forecasts: the types and formats of forecasts, where the figures come from and what to consider when preparing them.
- Drafting budgets from the operational plan: linking budget lines to operational objectives that come from the unit’s strategic plan.
- Monitoring and control: tracking actual expenses against the budget, identifying variances and proposing corrective measures.
- Supervising a unit’s financial management: agreeing monitoring systems and keeping to them.
Throughout, these skills are related back to the PFMA: why the Act requires them, and how they support the accounting officer’s responsibilities.
Who should attend
- Managers and supervisors who hold or approve a budget in a department or public entity
- Finance, budget and administration staff who prepare figures and reports
- Officials newly promoted into roles with financial responsibility
- Teams preparing for tighter internal controls or responding to audit findings
Format
The course runs over two days. It can be delivered in-house for a team, at BOTI’s venue in Sunningdale, Johannesburg, or live online. In-house delivery lets a department or entity work through its own budget structure and examples as a group.
Related financial management courses
If you need a broader financial management course, or a shorter introduction, these BOTI courses cover related ground:
- Business Unit Budgeting: Apply the Budget Function, a three-day focus on planning and managing a unit budget.
- Finance for Non-Finance Managers: Reading the Numbers Fast, a three-hour online masterclass for managers who need the basics quickly.
- Interpret Basic Financial Statements, for officials who need to read and question financial reports.
- Governance & Efficiency in Tendering and Supply Chain Management, for teams whose spending risk sits in procurement.
You can see all of BOTI’s finance courses in one place, or browse the strategy, risk, governance and compliance courses.
Frequently asked questions
Who does the Public Finance Management Act apply to?
The PFMA applies to national and provincial government departments, public entities and constitutional institutions. Municipalities and municipal entities fall under a separate law, the Municipal Finance Management Act (Act 56 of 2003).
Do I need PFMA training if I am not in the finance department?
Yes, if you hold, approve or manage any part of a budget. The Act places the overall duty on the accounting officer, but officials who approve spending, sign orders or manage cost centres are expected to follow the financial rules in their own areas.
What is the difference between irregular and fruitless and wasteful expenditure?
In plain terms, irregular expenditure is spending that did not follow the required laws or processes, even if the goods or services were delivered. Fruitless and wasteful expenditure is spending made in vain that reasonable care would have avoided, such as interest on late payments.
Is the PFMA course accredited?
No. It is run as a professional skills programme rather than an accredited qualification, and delegates who complete it receive a BOTI certificate of attendance.
To build budgeting, reporting and PFMA compliance skills in your department or public entity, book BOTI’s two-day Public Finance Management (PFMA) Training. This course is not accredited. It is delivered as a professional skills programme, and delegates receive a BOTI certificate of attendance. Call BOTI on 011 882 8853 or email [email protected]. Training runs in-house at your premises, at BOTI’s venue in Sunningdale, Johannesburg, or live online.
