N5 – Module 3
Ex post facto Formulated, enacted, or operating retroactively. Used especially of a law (Latin ex post facto : ex, from + postfacto, ablative of postfactum, that which is done afterwards.) Anti – Latin for against or, as in here, before.
The Functions of the Treasury The Treasury has the power to not approve of any proposed (ex-anti) expenditure by any given department should this not be properly motivated. Properly motivated expenditure in proposed budgets means extensive research and financial planning. It sometimes happens that less deserving proposals are approved because of proper and extensive motivation, while more deserving and worthwhile programme proposals are not approved because of a lack of proper motivation. One can see that there rests a great deal of responsibility with the financial administrative staff members of each government department.
In South Africa, although these functions are performed by the Department of State Finance, most people still speak of The Treasury. This office should ensure that the financial policy of The Legislature is correctly interpreted and effectively executed – it will therefore oversee the administration of public funds. Its status enables it to demand a say in all facets of public finance. The Treasury plays a vital role in ensuring that the financial policy – as stipulated and detailed in the budget – is correctly interpreted and effectively and efficiently executed. To do the above it has, according to Gildenhuys (1993:126-131), the following functions:
Co-ordination of financial policy – must ensure a balance of expenditure – there should not be too much spent on one programme in comparison with that spent on an equally important programme. In this sense the Treasury actually plays a role in the interpretation of government policy.
Granting of permission beforehand – if a department plans any changes to a programme, the Treasury must be informed so that it can study the financial implications; it should be consulted in the early stages of planning so that it may study the financial implications relative to other programmes proposed by other departments, and then advise the executive authority accordingly.
Evaluation of new policies and legislation – it must advise The Legislature on the financial implications (costs) of any new policies and laws. The Minister of Finance is under obligation to make sure the Treasury is given enough opportunity to study and investigate the financial implications of new legislation and policy and then to advise the executive authority of its findings.
Review of the budget – the Treasury should determine whether all government departments have properly motivated budget proposals (if they have done the necessary research with regard to the needs of the community and also the financial implications thereof), and also to check if the proposed expenditure is in agreement with the existing financial policy of the government. This can be done only with the support of the executive authority – should there be a dispute between the Treasury and an Accounting Officer of any particular department, the executive authority has the final say. It is also its task to consider the merits of any budget proposal by any government department – the Department of Health, for example – does the proposal to meet some public need fall within the policy of The Legislature and are the proposals within the intended limits and financial capabilities of The Legislature?
Guardian of public money – the Treasury acts as watchdog; it controls the withdrawal of funds by all government departments, protects the taxpayers’ interests by preventing the wastage of money and ensures that monthly requisitions (claims or requirements for funds) by Accounting Officers are correct.
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