Legislative Acts - PFMA - Normative Measures for Financial Management Annexure A

8/12/2019 Legislative Acts - PFMA - Normative Measures for Financial Management Annexure A

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INSTRUCTIONS FOR COMPLETION1) Please complete the Excel Spreadsheet relative to your Department i.e.

National or Provincial

2) Provincial Departments - Please ensure that the field requiring the name

of the Department is completed

3) Answer all questions4) Complete all fields that are shaded in the colours indicated below

INSTRUCTIONS FOR COMPLETION

1) Please complete the Excel Spreadsheet relative to yourDepartment (National/Provincial) or ConstitutionalInstitution.

2) Provincial Departments - Please ensure that the fieldrequiring the name of the Department is selected.

3) Please answer all questions

4) Complete all fields that are shaded in the coloursindicated below

National TreasuEnquiries:

Jayce NairTel: (012) 315-5482E-mail: Jayce.Nair@ Treas

NORMATIVE MEASURES


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ry

ury.gov.za


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National Department:

109

A. Management arrangementsCritical Performance Area Basic Evaluation Yes/ No Performance

Indicator/Measure/

Requirement

1. Accounting officer (AO)

Chief financial officer (CFO)

and other organisational issues

1. Has an employment contract/annual

performance agreement been prepared between the

executive authority and the accounting officer? [sec

36(5) of the PFMA & PSR, Chapter 1 Part VII.B.2].

Existence

Signed pe

on or be

three m

Frequency of evaluation and

updating4

Quality of performance agreement

Perform

are in line

strateg

Quality of employment contract

Respons

of sec 38

part

Ma

authoris

t

2. Has a competent CFO been appointed?

[TR 2.1]Appropriate qualifications CA

Appropriate experience 5 years

3. Has an annual performance agreement been

prepared between the AO and the CFO? [PSR,

Chapter 4 Part III]

Existence

Signed a

30 April o

dat


updating4

NORMATIVE MEASURES FOR FINANCIAL MANAGE

(PHASE 1 : PERFECTING THE BASI

You still need to answer 315 questions!

Select Department

Questions to be answ

3


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Critical Performance Area Basic Evaluation Yes/ No Performance

Indicator/Measur

Requirement

Quality of performance ag

4. Is the CFO seen as a business partner who is

actively involved in the strategic issues facing the

department?

Effective contributio

5. Has the CFO and his/her financial team

prepared a strategic plan for the finance

component?

Documented eviden

Frequency of updati

6. Has the finance component been aligned to

support the CFO and implementation of the PFMA?Existence of key perso

7. Is the vacancy rate in the finance component

addressed on a regular basis? [PSR, Chapter 1, Part

III]

No. of vacancies X

Establishment of fina

Component

Average length of vaca

4


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Indicator/Measu

Requirement

8. Does the finance staff have adequate

qualifications and/or experience to perform their

duties? [PSR, Chapter 1 Part I.B]

% of staff who have fi

related qualifications or

studying towards obtainin

qualifications

Appropriate experie

9. Have career development plans been drawn

up for all staff members in the finance section?

[PSR, Chapter 1 Part VIII.B]

% of financial staff with

development plan

% of staff in structured

programme

10. Have detailed job descriptions been prepared

for each post or group of posts in the finance

component? [PSR, Chapter 1 Part III.I]

Existence of job descr

Frequency of updat

11. Are all departmental policies and procedures

within the finance component documented and

approved?

% of departmental poli

procedures docume

Compliance

Frequency of updat

12. Are regular information sessions held with the

rest of the management team to explain the

principles of financial management and to

emphasise their responsibility for financial

management? [sec 44 & 45 of PFMA]

Frequency of information

13. Are performance agreements/plans drawn up

at all levels of the hierarchy? [PSR, Chapter 1 Part

VIII.]

Existence

Timeliness

5


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Indicator/Measu

Requirement

Frequency of perform

evaluation

14. Are officials within the department acquainted

with the measures set out in the code of conduct for

the public service? [PSR, Chapter 2 ]


15. Has your department established processes to

ensure suitable oversight over public entities under

the control of your executive authority? [sec 63(2) of

PFMA]

Compliance

Compliance


ensure suitable oversight over trading entities under

its control? [TR19.3.1]

Compliance

17. Has the accounting officer delegated his/her

responsibility to other officials in terms of the PFMA?[sec 44 of the PFMA]

Existence of written dele

Frequency of updat

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Indicator/Measu

Requirement

18. Has the executive authority delegated his/her

responsibilities to officials in terms of the Public

Service Regulations? [PSR, Chapter 1 Part 11.B]

Existence of written del

Frequency of upda

2. Risk management

1. Has the AO accepted responsibility for the

total process of risk management, as well as forming

his/her own opinion on the effectiveness of the

process? [TR 3.2.1]

Existence and commu

2. Has the AO made use of generally recognised

risk management and internal control models and

frameworks?

Existence and best p

3. Has the AO ensured that a formal risk

assessment is undertaken to determine the major

risks (key strategic and material/ significant risks)

facing the organisation? [TR 3.2.1]

Frequency

4. Has a comprehensive system of internal

control been established by the AO to ensure that

the identified major risks are mitigated and that the

organisations objectives are attained? [TR 3.2.1]

Existence

5. Are the strategies and control activities

implemented by management adequate and

appropriate to mitigate identified major risks?

Regular feedbac

6. Does the strategy to manage identified risks

include a fraud prevention plan? [TR 3.2.1]Existence

Implementation

7


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Indicator/Measu

Requirement

3. Internal control procedures1. Are proper internal control mechanisms

designed and implemented?Internal audit findin

2. Are the activities of the department organised

in such a manner that the following functions are

segregated in each cycle:

Internal audit findin

Execution of the transaction

Accounting for the transaction

Custody of the related assets

3. Is the accounting for each transaction type

organised in such a manner that different persons

perform the following activities:


Approving

Processing

Recording

Reconciling

4. Have the levels of authority of the employees

been clearly communicated to them? (by means of

clear job descriptions etc.)

Frequency of revis


5. Are audit enquiries raised by the Auditor Generalbeing finalised timeously?

Timeliness

4. Internal audit

1. Does the department have a system of

internal audit? [sec 38(1)(a) (ii) of the PFMA] [TR

3.2]

Existence and effectiv

2. Has a competent head of internal audit been

appointed?Appropriate qualifica

Appropriate experie

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Indicator/Meas

Requiremen

3. Does the internal audit function report at a

level within the organisation that allows it to

accomplish its responsibilities fully? [TR 3.2.9]

Documented reportin

4. Is the purpose, authority and responsibility of

the internal audit function formally defined? [TR

3.2.5]

Documented pro

5. Is the internal audit effort based on the

strategy for managing departmental risks? [TR3.2.1]Documented pro

6. Is the internal audit function monitored and

evaluated to ensure that internal audits are

performed with proficiency and due professional

care?

Regular review

7. Does internal audit submit reports to the audit

committee detailing performance against the internal

audit plan? [TR 3.2.7 (d)]

Frequency

Timeliness

8. Is the internal audit function scrutinised and

evaluated to ensure that it maximises the benefits

from its independent status?

Frequency

9. Does internal audit assess the operational

procedure and monitoring mechanisms over all

transfers made and received in terms of the annual

Division of Revenue Act? [TR 3.2.8]

Frequency

5. Audit committees

1. Has an audit committee been established?

[sections 38 (1) (a) (ii) & 77 of the PFMA and TR

3.1]

Establishment of an e

independent audit com

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Indicator/Measure

Requirement

2. Does the audit committee have formally

determined, written terms of reference ? [TR 3.1.8]Existence

3. Does the Audit Committee meet with the

external auditors on a regular basis? [TR3.1.16]Frequency

4. Does the audit committee have clearly agreed

reporting lines? [TR3.1.12]Clear reporting lines

5. Is the audit committee subject to regular

evaluation by the accounting officer as to its

performance and effectiveness?

Frequency

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Indicator/Measure

Requirement

6. Does the audit committee meet on a regular

basis? [sec 77 of PFMA ]Frequency

7. Does the Audit Committee render an effective

service to the department? [TR 3.1]Coverage and quality of re

8. Does the audit committee submit a report for

purposes of the annual report? [TR 3.1.13]Coverage of report

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Indicator/Measu

Requiremen

B. Planning and Budgeting

1. Planning

1. Has the Executive Authority tabled an

approved strategic plan in the

Legislature? [TR 5.2.1]

Timeliness

2. Has the AO established procedures to

facilitate effective performance monitoring,

evaluation and corrective action? [TR 5.3.1]

Documented pro

3. Is the strategic plan consistent with the

medium term expenditure estimates? [TR5.2.2 (a)]Compliance

4. Is the content of the strategic plan in

accordance with the requirements of the Treasury

Regulations and Public Service Regulations? [TR

5.2.2 and PSR, Chapter 1, Part III.B]

Compliance

5. Is the strategic plan performance based? [TR

5.2.2 (d)]

Measurable objectives

programme

6. Is the strategic plan updated and revised on a

regular basis? [TR.5.1.1]Frequency of revis

7. Has the department established a sustainableservice delivery improvement programme? [PSR,

Chapter 1, Part III.C]

Compliance

2. Budgeting

1. Has the AO complied with the prescriptions of

the budget circular as issued by the relevant

Treasury. [TR 6.1.1; 6.2.1]

Compliance

2. Are measurable outputs per programme

specified in the departmental budget? [sec 27(4) of

PFMA]

Number of perform

measures/indicators per

measure

QuantityQuality

Timeliness

3. Has the organisational processes and

structure been re-evaluated and aligned to the

outputs?

Frequency of evalu

4. Is your department submitting reports concerning

the utilization of savings in terms of sec 43 (1) of the

PFMA?

Timeliness

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Indicator/Measu

Requirement

C. Revenue and expenditure management

1. Revenue Management

1. Does the AO regularly examine the operations

of the department to identify new sources or

potential sources of revenue?

Frequency

2. Does the AO regularly review existing fees,

charges, rates, tariffs or scales of fees or other

charges relating to the revenue accruing to a

revenue fund and the letting of state property? [TR

7.3, TR 10.2.4]

Frequency

Compliance

3. Is the collection of revenue monitored on a

regular basis and reported to the executive

authority? [sec 39 (2)(b) of the PFMA]

Frequency

Timeliness

Quality

4. Is cash received deposited on a regular basis,

where possible? [TR 15.10]Frequency

2. Expenditure Management1. What is the estimated/actual % of

overspending?

Total expenditure X

Total voted amount

2. What is the estimated/actual % of

underspending?

Total expenditure X

Total voted amount

3. Is over/underspending monitored on a regular

basis and reported to the relevant executive

authority? [sec 39 of the PFMA]

Frequency

Timeliness

Quality

4. Does the AO ensure that, before transferring

funds to an entity, the requirements of sec 38(1)(j) of

the PFMA are met?

Compliance

5. Are the certified payroll reports returned to

the CFO as required? [TR 8.3.5]Timeliness

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Indicator/Measure/

Requirement

6. Is the actual monthly expenditure per

programme in accordance with the cash flow

projection?

% of variance

7. Are all payments in excess of R2 000 being

effected electronically [TR.15.12.3]Compliance

14


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Indicator/Measur

Requirement

D. Asset and liability management

1. Asset Management

1. Has the department established a

comprehensive asset register for departmental

assets? [sec 38(1) of the PFMA & TR.10.1.2]

Existence

2. Has the department developed a policy and

procedure manual to ensure effective management

of assets? [sec 38(1)(d) of the PFMA & TR10.1.2]

Existence

3. Are replacements costs weighed against the

cost of maintenance?

Investment cost analysis

support of all decisio

4. Are assets utilised optimally?

[TR10.1.2]Regular evaluation

Utilisation:

Land and buildings

Furniture and office

equipment

Computer equipme

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Indicator/Measu

Requirement

2. Inventory/stock1. Are stock levels at an optimum and

economical level? [TR 10.1.1. (b)]

% of excessive and red

stock items in relation t

number of stock ite

Number of out-of-stock r

as a % of number of req

Value of stock held in exc

months

2. Is there a formal documented procedure

providing for management to monitor stock losses?

Value of stock losses as

total stock value

3. Debtors

1. Are effective processes in placeto collect outstanding debt?

[TR.11.2.1]

Number of days before pa

received

Amount of debt in ar

exceeding 6 month

2. Does the department produce a debtors age

analysis on a regular basis?Timeliness

3. Has the accounting officer established a debt

write-off policy? [TR 11.4.2]Existence

Bad debt X 100

Debtors 1

4. Creditors1. Are all payments due to creditors settled

within the prescribed period [TR8.2.3]?Compliance

2. Does the department produce a creditors age


3. Are interest free facilities and possible

discount utilised to the fullest extent? [TR.15.10.1.2]

Number of reported case

discounts were not ut

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Critical Performance Area Basic Evaluation Yes/ No Performanc

Indicator/Meas

Requiremen

E. Accounting and reporting requirements

1. Accounting

1. Are revenue and expenditure transactions

allocated to a clearing or suspense account

approved at an appropriate level?

Written delegations

2. Are suspense accounts cleared and

reconciled appropriately? [TR 17.1.2]Frequency

Quality of reconcil

Regular reports to acc

officer

Amounts dormant for lon

months

Value of cases older

months not writte

3. Are control measures in place to ensure that

all transactions are supported by authentic and

verifiable source documents, clearly indicating the

approved accounting allocation [TR.17.1.1]

Post audit findin

4. Are bank reconciliations done on a regular

basis by the department? [TR15.10.1.2(j)]Frequency

5. Does the accounting officer ensure that all

transactions have been recorded before the closure

of accounting months?

Compliance

2. Financial Systems

1. Is the objective within the general ledger

aligned with the approved structure of the Estimates

of Expenditure of the department?

Degree of alignm

2. Is the responsibility structure within the

general ledger aligned with the approved

organisational structure of the department?

Degree of alignm

3. Is the current approved establishment

captured and updated on the PERSAL system?Degree of captur

4. Are processes in place to ensure suitable

absorption of employees into posts on the approved

establishment?

% of employees emplo

adjustment

5. Does the department conduct regular system

training courses to ensure optimal utilisation of the

departmental financial systems?

Frequency

6. Is proper maintenance done on the

departments technical infrastructure (i.e. hardware,

software, networks, etc)

Acceptable uptime for

Acceptable respons

7. Are proper Batch control procedures

implemented and maintained for Batch systems?

Frequency of updatin

control register

8. Is there a proper password control strategy in

the department?Regular renewal of pa

Number of login att

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Indicator/Measu

Requirement

3. Monthly reports

1. Have the actual revenue and expenditure,

projections and variances been submitted in the

prescribed format? [sec 40(4)(b) & (c) of PFMA]

Frequency

Timeliness

Quality

4. Quarterly reports

1. Is reporting on performance against the

strategic plan done on a regular basis? [TR.5.3.1]Frequency

Timeliness of repor

2. Do Schedule 3A & 3C Public entities under

the control of the department report on a regular

basis regarding actual revenue and expenditure?

[TR.26.1.1]

Frequency

Timeliness

3. Do Schedule 3A & 3C Public entities report on

a regular basis on the extent of compliance with the

PFMA and Treasury Regulations? [TR26.1.2]

Frequency

Timeliness

Quality

5. Annual Reporting

1. Has the department submitted the AFS

timeously for audit purposes? [sec 40(1) of PFMA]Compliance

Quality

2. Has the department submitted the annual

report, including, the audited financial statements

and the audit report, timeously to the executive

authority?

Compliance

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Indicator/Measu

Requirement

QUALITY

Annual report

Financial statemen

3. Has the executive authority tabled the

department'sannual report including the financialstatements and audit report thereon in the

legislature? [sec 65(1) of PFMA]

Compliance

Non-compliance

4. Has the executive authority tabled the annual

reports of public entitiesunder his/her control in the


Compliance

Non-compliance5. Is the content of the dept's annual report in

accordance with the legislative requirements? [sec

40(3) of the PFMA, TR 18.3 & PSR, Chapter1, Part

111 J]

Compliance

6. Is a schedule regarding disciplinary

procedures and criminal charges submitted to the

relevant treasury and the Auditor-General. [TR

4.3.3]

Frequency

Timeliness

Quality

7. Are any surpluses/ deficits at the end of the

financial year for trading entities under your controlbeing declared to the relevant treasury. [TR 19.7.1]

Frequency

Timeliness

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Province

Provincial Department of:

109


Indicator/Measure/

Requirement







36(5) of the PFMA & PSR, Chapter 1 Part VII.B.2].

Existence

Signed p

on or be

three


updating4


Perform

are in lin

strate


Respon

of sec 3

par

Maauthoris


[TR 2.1]Appropriate qualifications CA

Appropriate experience 5 years


prepared between the AO and the CFO? [PSR,

Chapter 4 Part III]

Existence

Signed a

30 April

da


updating4

NORMATIVE MEASURES FOR FINANCIAL MANAGEM

(PHASE 1 : PERFECTING THE BASIC

You still need to answer 315 questions!

Select Provinc e

Questions to be answ

Select Departm ent

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Indicator/Meas

Requiremen

Quality of performance a



department?

Effective contribu



component?

Documented evide

Frequency of upda


support the CFO and implementation of the PFMA?Existence of key per


addressed on a regular basis? [PSR, Chapter 1, Part

III]

No. of vacancies

Establishment of fin

Component

Average length of va

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Critical Performance Area Basic Evaluation Yes/ No Performan

Indicator/Mea

Requireme



duties? [PSR, Chapter 1 Part I.B]

% of staff who have

related qualifications o

studying towards obtain

qualification

Appropriate expe



[PSR, Chapter 1 Part VIII.B]

% of financial staff w

development pl

% of staff in structure

programme



component? [PSR, Chapter 1 Part III.I]

Existence of job des

Frequency of upd

11. Are all departmental policies and procedures

within the finance component documented and

approved?

% of departmental po

procedures docum

Compliance

Frequency of upd






Frequency of informatio


at all levels of the hierarchy? [PSR, Chapter 1 Part

VIII.]

Existence

Timeliness

22


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Indicator/Meas

Requiremen

Frequency of perfor

evaluation

14. Are officials within the department acquainted


the public service? [PSR, Chapter 2 ]

Frequency of informatio




PFMA]

Compliance

Compliance




Compliance


responsibility to other officials in terms of the PFMA?[sec 44 of the PFMA]

Existence of written de

Frequency of upd

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Indicator/Mea

Requireme




Existence of written d

Frequency of up

2. Risk management




process? [TR 3.2.1]

Existence and comm



frameworks?

Existence and best





Frequency





Existence




Regular feedb



Implementati

24


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Indicator/Mea

Requireme


designed and implemented?Internal audit fin

2. Are the activities of the department organised

in such a manner that the following functions are


Internal audit fin







Internal audit fin

Approving

Processing

Recording

Reconciling




Frequency of rev

Internal audit fin

5. Are audit enquiries raised by the Auditor Generalbeing finalised timeously?

Timeliness

4. Internal audit

1. Does the department have a system of

internal audit? [sec 38(1)(a) (ii) of the PFMA] [TR

3.2]

Existence and effec


appointed?Appropriate qualifi

Appropriate expe

25


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Indicator/Mea

Requireme




Documented repo



3.2.5]

Documented p

5. Is the internal audit effort based on the

strategy for managing departmental risks? [TR3.2.1]Documented p




care?

Regular revie




Frequency

Timeliness




Frequency



transfers made and received in terms of the annual

Division of Revenue Act? [TR 3.2.8]

Frequency

5. Audit committees



3.1]

Establishment of an

independent audit c

26


27/53


Indicator/Measu

Requirement






reporting lines? [TR3.1.12]Clear reporting lin




Frequency

27


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Indicator/Measur

Requirement




service to the department? [TR 3.1]Coverage and quality of


purposes of the annual report? [TR 3.1.13]Coverage of repor

28


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Indicator/Mea

Requireme


1. Planning




Timeliness




Documented p





Regulations and Public Service Regulations? [TR

5.2.2 and PSR, Chapter 1, Part III.B]

Compliance


5.2.2 (d)]

Measurable objective

programme


regular basis? [TR.5.1.1]Frequency of re

7. Has the department established a sustainableservice delivery improvement programme? [PSR,


Complianc

2. Budgeting



Treasury. [TR 6.1.1; 6.2.1]

Compliance



PFMA]

Number of perfor

measures/indicators p

measure

QuantityQuality

Timeliness



outputs?

Frequency of eva



PFMA?

Timeliness

29


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Indicator/Mea

Requireme




of the department to identify new sources or

potential sources of revenue?

Frequency





7.3, TR 10.2.4]

Frequency

Compliance




Frequency

Timeliness

Quality




overspending?

Total expenditure

Total voted amou


underspending?

Total expenditure

Total voted amou




Frequency

Timeliness

Quality



the PFMA are met?

Compliance



30


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Indicator/Measure/

Requirement



projection?

% of variance



31


32/53


Indicator/Meas

Requiremen


1. Asset Management

1. Has the department established a

comprehensive asset register for departmental


Existence

2. Has the department developed a policy and



Existence



Investment cost analys

support of all decis


[TR10.1.2]Regular evaluati

Utilisation:

Land and buildin

Furniture and off

equipment

Computer equipm

32


33/53


Indicator/Mea

Requiremen



% of excessive and re

stock items in relatio

number of stock i

Number of out-of-stoc

as a % of number of re

Value of stock held in e

months



Value of stock losses

total stock valu

3. Debtors


[TR.11.2.1]

Number of days before

received

Amount of debt in

exceeding 6 mo

2. Does the department produce a debtors age




Bad debt X 10

Debtors



2. Does the department produce a creditors age




Number of reported ca

discounts were not

33


34/53


Indicator/Me

Requirem


1. Accounting




Written delegatio



Quality of recon

Regular reports to a

officer

Amounts dormant for

months

Value of cases olde

months not writ





Post audit find


basis by the department? [TR15.10.1.2(j)]Frequency




Complianc





Degree of align



organisational structure of the department?

Degree of align


captured and updated on the PERSAL system?Degree of cap



establishment?

% of employees emp

adjustmen

5. Does the department conduct regular system


departmental financial systems?

Frequency


departments technical infrastructure (i.e. hardware,

software, networks, etc)

Acceptable uptime fo

Acceptable respo



Frequency of upda

control regis


the department?Regular renewal of

Number of login a

34


35/53


Indicator/Mea

Requiremen

3. Monthly reports




Frequency

Timeliness

Quality




Timeliness of rep




[TR.26.1.1]

Frequency

Timeliness




Frequency

Timeliness

Quality

5. Annual Reporting

1. Has the department submitted the AFS


Quality

2. Has the department submitted the annual

report, including, the audited financial statements

and the audit report, timeously to the executive

authority?

Compliance

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Indicator/Meas

Requiremen

QUALITY

Annual repor

Financial statem


department'sannual report including the financialstatements and audit report thereon in the


Compliance

Non-complian




Compliance

Non-complian5. Is the content of the dept's annual report in

accordance with the legislative requirements? [sec

40(3) of the PFMA, TR 18.3 & PSR, Chapter1, Part

111 J]

Compliance




4.3.3]

Frequency

Timeliness

Quality



Frequency

Timeliness

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Constitutional Institution:

109


Indicator/Measure/

Requirement







36(5) of the PFMA]

Existence

Signed per

on or befo

three m

a


updating4 t


Performa

are in line

strategic


Responsib

of sec 38-

part o

Main

authorisath


[TR 2.1]Appropriate qualifications CA/

Appropriate experience 5 years f


prepared between the AO and the CFO?Existence

Signed ag

30 April or

date

Frequency of evaluation andupdating

4 t

NORMATIVE MEASURES FOR FINANCIAL MANAGEM

(PHASE 1 : PERFECTING THE BASIC

You still need to answer 315 questions! Questions to be answe

Select Inst i tut io n

37


38/53


Indicator/Measur

Requirement

Quality of performance agr



institution?

Effective contributio



component?

Documented eviden



support the CFO and implementation of the PFMA?Existence of key perso


addressed on a regular basis?

No. of vacancies X

Establishment of finan

Component

Average length of vaca

38


39/53


Indicator/Measu

Requirement



duties?

% of staff who have fi

related qualifications or

studying towards obtainin

qualifications

Appropriate experie



% of financial staff with

development plan

% of staff in structured t

programme



component?

Existence of job descr

Frequency of updat

11. Are all policies and procedures within the

finance component documented and approved?

% of institutional polici

procedures documen

Compliance

Frequency of updat








at all levels of the hierarchy?Existence

Timeliness

39


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Indicator/Measu

Requirement

Frequency of perform

evaluation

14. Are officials within the institution acquainted


the public service?





PFMA]

Compliance

Compliance




Compliance


responsibility to other officials in terms of the PFMA?

[sec 44 of the PFMA]


Frequency of updat





40


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Indicator/Measu

Requiremen

Frequency of upda

2. Risk management




process? [TR 3.2.1]

Existence and commu



frameworks?

Existence and best p





Frequency





Existence




Regular feedbac



Implementation


designed and implemented?Internal audit findi

2. Are the activities of the institution organised in

such a manner that the following functions are


Internal audit findi



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Indicator/Measu

Requirement






Approving

Processing

Recording

Reconciling




Frequency of revis


5. Are audit enquiries raised by the Auditor General

being finalised timeously?Timeliness

4. Internal audit

1. Does the institution have a system of internal

audit? [sec 38(1)(a) (ii) of the PFMA] [TR 3.2] Existence and effectiv


appointed?Appropriate qualifica

Appropriate experie




Documented reportin



3.2.5]

Documented pro

42


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Indicator/Measu

Requirement

5. Is the internal audit effort based on thestrategy for managing risks? [TR3.2.1]

Documented proo




care?

Regular reviews




Frequency

Timeliness




Frequency



transfers made and received in terms of the annualDivision of Revenue Act? [TR 3.2.8]

Frequency

5. Audit committees



3.1]

Establishment of an ef

independent audit com

43


44/53


Indicator/Measure

Requirement






reporting lines? [TR3.1.12]Clear reporting lines




Frequency

44


45/53


Indicator/Measure

Requirement




service to the institution? [TR 3.1]Coverage and quality of re


purposes of the annual report? [TR 3.1.13]Coverage of report

45


46/53


Indicator/Measu

Requiremen


1. Planning




Timeliness




Documented pro





Regulations ? [TR 5.2.2]

Compliance


5.2.2 (d)]

Measurable objectives

programme


regular basis? [TR.5.1.1]Frequency of revis

7. Has the department established a sustainable

service delivery improvement programme? [PSR,


Compliance

2. Budgeting



Treasury. [TR 6.1.1; 6.2.1]

Compliance



PFMA]

Number of perform

measures/indicators per

measure

Quantity

Quality

Timeliness



outputs?

Frequency of evalu



PFMA?

Timeliness

46


47/53


Indicator/Measu

Requirement




of the institution to identify new sources or potential

sources of revenue?

Frequency





7.3, TR 10.2.4]

Frequency

Compliance




Frequency

Timeliness

Quality




overspending?

Total expenditure X

Total voted amount


underspending?

Total expenditure X

Total voted amount




Frequency

Timeliness

Quality



the PFMA are met?

Compliance



47


48/53


Indicator/Measure/

Requirement



projection?

% of variance



48


49/53


Indicator/Measur

Requirement


1. Asset Management

1. Has the institution established a

comprehensive asset register for institutional


Existence

2. Has the institution developed a policy and



Existence



Investment cost analysis

support of all decisio


[TR10.1.2]Regular evaluation

Utilisation:

Land and buildings

Furniture and office

equipment

Computer equipme

49


50/53


Indicator/Measu

Requirement



% of excessive and red

stock items in relation t

number of stock ite

Number of out-of-stock r

as a % of number of req

Value of stock held in exc

months



Value of stock losses as

total stock value

3. Debtors


[TR.11.2.1]

Number of days before pa

received

Amount of debt in ar

exceeding 6 month

2. Does the institution produce a debtors age




Bad debt X 100

Debtors 1



2. Does the institution produce a creditors age




Number of reported case

discounts were not ut

50


51/53


Indicator/Meas

Requiremen


1. Accounting




Written delegations



Quality of reconcil

Regular reports to acc

officer

Amounts dormant for lon

months

Value of cases older

months not writte





Post audit findin


basis by the institution? [TR15.10.1.2(j)]Frequency




Compliance





Degree of alignm



organisational structure of the institution?

Degree of alignm


captured and updated on the PERSAL system?Degree of captur



establishment?

% of employees emplo

adjustment

5. Does the institution conduct regular system


institutional financial systems?

Frequency


institutions technical infrastructure (i.e. hardware,software, networks, etc)

Acceptable uptime for

Acceptable respons




control register


the institution?Regular renewal of pa

Number of login att

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Indicator/Measu

Requirement

3. Monthly reports




Frequency

Timeliness

Quality




Timeliness of repor




[TR.26.1.1]

Frequency

Timeliness




Frequency

Timeliness

Quality

5. Annual Reporting

1. Has the institution submitted the AFS


Quality

2. Has the institution submitted the annual report,

including, the audited financial statements and the

audit report, timeously to the National Treasury?

Compliance

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Indicator/Measu

Requirement

QUALITY

Annual report

Financial statemen


institution'sannual report including the financialstatements and audit report thereon in the


Compliance

Non-compliance




Compliance

Non-compliance

5. Is the content of the institution's annual report

in accordance with the legislative requirements?

[sec 40(3) of the PFMA & TR 18.3]

Compliance




4.3.3]

Frequency

Timeliness

Quality



Frequency

Timeliness

Legislative Acts - PFMA - Normative Measures for Financial Management Annexure A

Documents