Change in managing government entities takes place at breathtaking speed. Governments are currently moving away from public administration towards public management and towards a more businesslike approach in managing their affairs. Developments such as the new public management, the adoption of corporate governance in the public sector and the proclamation of the Public Finance Management Act, 1999 (PFMA) highlight the shift of a business outlook on management processes. During the past few years financial management and accounting in the public sector have been characterised by several developments at international and national level. The most important development was the proposal to introduce accrual-based accounting in the public sector in the near future. Public sector entities currently experience difficulties in implementing accrual-based accounting and the requirements of the PFMA. The implementation of sound financial manag