Normative Measures Annexure A

NORMATIVE
NORMATIVE MEASURES
MEASURES
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NORMATIVE MEASURES FOR FINANCIAL MANAGEMENT (Annexure A)
(PHASE 1 : PERFECTING THE BASICS)
National Department: Select Department
You still need to answer 315 questions! 109 Questions to be answered 206
NATIONAL DEPARTMEN
A. Management arrangements
Critical Performance Area Basic Evaluation Yes/ No Performance Performance Remarks/Reference
Indicator/Measure/ Annexure
Requirement
Norm Actual
Monthly
1. Accounting officer (AO) 1. Has an employment contract/annual Signed performance agreement

Chief financial officer (CFO) performance agreement been prepared between the on or before 30 April or within
Existence A1.1
and other organisational issues executive authority and the accounting officer? [sec three months from date of
36(5) of the PFMA & PSR, Chapter 1 Part VII.B.2]. appointment
Frequency of evaluation and

updating
4 times per year No
Performance standards which

Quality of performance agreement are in line with objectives in the Not Applicable
strategic plan are included
Responsibilities of AO in terms of
Quality of employment contract sec 38-42 of the PFMA form part Other
of the agreement
Main delegations or
authorisations are specified in ###
the agreement
2. Has a competent CFO been appointed?

Appropriate qualifications CA/ MBA/ B Comm/ A1.2
[TR 2.1]
± 5 years financial management

Appropriate experience
experience
###
3. Has an annual performance agreement been Signed agreement on or before

prepared between the AO and the CFO? [PSR, Existence 30 April or within 3 months from A1.3
Chapter 4 Part III] date of appointment

updating
4 times per year ###
Requirement
Norm Actual
Monthly

are in line with objectives in the
Quality of performance agreement
strategic plan are included in the
###
agreement
4. Is the CFO seen as a business partner who is CFO attends at least 12 senior
actively involved in the strategic issues facing the Effective contribution (Top) management meetings A1.4
department? per year
CFO tables 12 management

reports on financial issues
###
CFO is directly accountable to

the AO
###
5. Has the CFO and his/her financial team

Documented evidence Strategic plan exists A1.5
prepared a strategic plan for the finance component?
Plan is accessible to employees ###
Frequency of updating Annually ###
6. Has the finance component been aligned to

Existence of key personnel Financial accountant A1.6
support the CFO and implementation of the PFMA?
Management accountant ###
Supply chain management

practitioner
###
7. Is the vacancy rate in the finance component No. of vacancies X 100

addressed on a regular basis? [PSR, Chapter 1, Part Establishment of finance 5% A1.7
III] Component
Requirement
Norm Actual
Monthly
Average length of vacancy 3 months ###
% of staff who have finance related

8. Does the finance staff have adequate
qualifications or who are studying
qualifications and/or experience to perform their 90% A1.8
towards obtaining related
duties? [PSR, Chapter 1 Part I.B]
qualifications
Average of 5 years of
appropriate experience
###
9. Have career development plans been drawn

% of financial staff with career
up for all staff members in the finance section? [PSR, 100% A1.9
development plans
Chapter 1 Part VIII.B]
% of staff in structured training

programme
100% ###
10. Have detailed job descriptions been prepared

for each post or group of posts in the finance Existence of job descriptions 100% A1.10
component? [PSR, Chapter 1 Part III.I]
Job descriptions communicated

to employees
###
Frequency of updating Every 3 years ###
11. Are all departmental policies and procedures

% of departmental policies and
within the finance component documented and 100% A1.11
procedures documented
approved?
In-line with latest Treasury

Compliance
Regulations
###

Requirement
Norm Actual
Monthly
12. Are regular information sessions held with the

rest of the management team to explain the
principles of financial management and to emphasise Frequency of information sessions 2 sessions per year A1.12
their responsibility for financial management? [sec 44
& 45 of PFMA]
13. Are performance agreements/plans drawn up at

Existence Documented plans/agreements A1.13
all levels of the hierarchy? [PSR, Chapter 1 Part VIII.]
Timeliness 1-Apr ###
Frequency of performance
evaluation
14. Are officials within the department acquainted

with the measures set out in the code of conduct for Frequency of information sessions 2 sessions per year A1.14
the public service? [PSR, Chapter 2 ]
15. Has your department established processes to

ensure suitable oversight over public entities under PUBLIC ENTITIES: SCHEDULE
A1.15
the control of your executive authority? [sec 63(2) of 2/3B/3D
PFMA]
Compliance Corporate plans submitted ###
Estimates of revenue &

expenditure and borrowings ###
submitted
Annual shareholders compact

concluded
###
Quarterly reports regarding

performance submitted
###
PUBLIC ENTITIES: SCHEDULE

3A/3C
Compliance Strategic plans submitted ###

expenditure submitted
###

###

Documented policy and reporting
ensure suitable oversight over trading entities under Compliance A1.16
framework
its control? [TR19.3.1]
Requirement
Norm Actual
Monthly
17. Has the accounting officer delegated his/her COMPLETE SET OF

responsibility to other officials in terms of the PFMA? Existence of written delegations DELEGATIONS COMPILED A1.17
[sec 44 of the PFMA] AND APPROVED FOR:
PFMA ###
Treasury Regulations ###
18. Has the executive authority delegated his/her COMPLETE SET OF

responsibilities to officials in terms of the Public Existence of written delegations DELEGATIONS COMPILED A1.18
Service Regulations? [PSR, Chapter 1 Part 11.B] AND APPROVED FOR:
Public Service Act; ###
Public Service Regulations ###
1. Has the AO accepted responsibility for the total

Written, approved documents
process of risk management, as well as forming
2. Risk management Existence and communication exist and are properly A2.1
his/her own opinion on the effectiveness of the
distributed/communicated
process? [TR 3.2.1]
Documented, approved system

2. Has the AO made use of generally recognised
of risk management and internal
risk management and internal control models and Existence and best practice A2.2
control based on a recognised
frameworks?
model
3. Has the AO ensured that a formal risk

assessment is undertaken to determine the major
Frequency Annually A2.3
risks (key strategic and material/ significant risks)
facing the organisation? [TR 3.2.1]
4. Has a comprehensive system of internal

Documented, approved portfolio
control been established by the AO to ensure that the
Existence of evaluated control activities for A2.4
identified major risks are mitigated and that the
each risk identified
organisation’s objectives are attained? [TR 3.2.1]
Requirement
Norm Actual
Monthly
5. Are the strategies and control activities

implemented by management adequate and Regular feedback Twice per annum A2.5
appropriate to mitigate identified major risks?
6. Does the strategy to manage identified risks

Existence Documented plan A2.6
include a fraud prevention plan? [TR 3.2.1]
Implementation 2 reports per year ###
1. Are proper internal control mechanisms

3. Internal control procedures Internal audit findings Favourable A3.1
designed and implemented?
2. Are the activities of the department organised
in such a manner that the following functions are Internal audit findings Favourable A3.2
segregated in each cycle:
· 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 Internal audit findings Favourable A3.3
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 Frequency of revision Annually A3.4
job descriptions etc.)
Internal audit findings Favourable ###

5. Are audit enquiries raised by the Auditor General
Timeliness Audit queries: within 30 days A3.5
being finalised timeously?
Interim audit management
letters: within 21 days
###
Final audit management letters:
within 14 days
###
1. Does the department have a system of internal Internal Audit Function In-house;
4. Internal audit Existence and effectiveness A4.1
audit? [sec 38(1)(a) (ii) of the PFMA] [TR 3.2] shared or outsourced
Reliance by top management ###
Reliance by the external auditor ###

Requirement
Norm Actual
Monthly
At least 4 recommendations
annually
###
75% of recommendations
implemented
###
2. Has a competent head of internal audit been

Appropriate qualifications CIA/MBA/B. Com/ACIS A4.2
appointed?
5 years management experience

in internal auditing
###
3. Does the internal audit function report at a

Report directly to accounting
level within the organisation that allows it to Documented reporting line A4.3
officer
accomplish its responsibilities fully? [TR 3.2.9]
4. Is the purpose, authority and responsibility of
Internal audit charter is approved
the internal audit function formally defined? [TR Documented proof A4.4
by the Audit Committee
3.2.5]
Rolling three year strategic

internal audit plan exists
###
Annual internal audit plan ###
Plans indicating proposed scope

of each audit
###
5. Is the internal audit effort based on the strategy Internal audit plan addresses
Documented proof A4.5
for managing departmental risks? [TR3.2.1] risk areas
6. Is the internal audit function monitored and

evaluated to ensure that internal audits are Annual review by audit
Regular reviews A4.6
performed with proficiency and due professional committee
care?
Every 5 years quality assurance

review by an independent, ###
external party
7. Does internal audit submit reports to the audit

committee detailing performance against the internal Frequency Quarterly reports A4.7
audit plan? [TR 3.2.7 (d)]
Timeliness 15 days after each quarter ###

Requirement
Norm Actual
Monthly
8. Is the internal audit function scrutinised and

Review by audit committee
evaluated to ensure that it maximises the benefits Frequency A4.8
performed at least every 3 years
from its independent status?
9. Does internal audit assess the operational

procedure and monitoring mechanisms over all Annually
Frequency A4.9
transfers made and received in terms of the annual (form part of annual plan)
Division of Revenue Act? [TR 3.2.8]
1. Has an audit committee been established? Establishment of an effective Members have appropriate
5. Audit committees A5.1
[sections 38 (1) (a) (ii) & 77 of the PFMA and TR 3.1] independent audit committee experience
Members appointed in
consultation with the executive ###
authority
Committee consists of at least

three members
###
Majority of members may not be

in the employ of the department
###
One member from outside the

public service
###
Chairperson may not be in the

employ of the department
###
Formal, written terms of

2. Does the audit committee have formally
Existence reference, approved by the A5.2
determined, written terms of reference ? [TR 3.1.8]
accounting officer
TERMS OF REFERENCE
ADEQUATELY ADDRESSES:
Membership ###
Authority/responsibility ###
Operating procedures ###
3. Does the Audit Committee meet with the

external auditors on a regular basis? [TR3.1.16]
Requirement
Norm Actual
Monthly
4. Does the audit committee have clearly agreed
Clear reporting lines Report to accounting officer A5.4
reporting lines? [TR3.1.12]
5. Is the audit committee subject to regular
evaluation by the accounting officer as to its Frequency Annually A5.5
performance and effectiveness?
Requirement
Norm Actual
Monthly
6. Does the audit committee meet on a regular
Frequency At least twice per annum A5.6
basis? [sec 77 of PFMA ]
7. Does the Audit Committee render an effective
Coverage and quality of reports REVIEW PERFORMED ON: A5.7
service to the department? [TR 3.1]
Effectiveness of internal audit

function
###
Effectiveness of internal control ###
Risk areas to be covered in

internal and external audit
###
Reliability and accuracy of

financial reports
###
Compliance with legal and

regulatory provisions
###
8. Does the audit committee submit a report for

Coverage of report REPORTS SUBMITTED ON: A5.8
purposes of the annual report? [TR 3.1.13]
Quality of in year management

and monthly reporting in terms of ###
the PFMA and DORA
Evaluation of annual financial

statements
###
Requirement
Norm Actual
Monthly
B. Planning and Budgeting
At least 7 days prior to the

1. Has the Executive Authority tabled an
1. Planning Timeliness discussion of the department’s B1.1
approved strategic plan in the Legislature? [TR 5.2.1]
budget vote
2. Has the AO established procedures to facilitate

effective performance monitoring, evaluation and Documented proof Existence of a written procedure B1.2
corrective action? [TR 5.3.1]
3. Is the strategic plan consistent with the

Compliance 100% B1.3
medium term expenditure estimates? [TR5.2.2 (a)]
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]
5. Is the strategic plan performance based? [TR Measurable objectives for each
100% B1.5
5.2.2 (d)] programme
6. Is the strategic plan updated and revised on a

Frequency of revision Annually B1.6
regular basis? [TR.5.1.1]
7. Has the department established a sustainable Annual statement of public

service delivery improvement programme? [PSR, Compliance service commitment including B1.7
Chapter 1, Part III.C] service standards published
1. Has the AO complied with the prescriptions of

the budget circular as issued by the relevant Compliance 100% B2.1
2. Budgeting Treasury. [TR 6.1.1; 6.2.1]
2. Are measurable outputs per programme Number of performance

specified in the departmental budget? [sec 27(4) of measures/indicators per output to At least B2.2
PFMA] measure
Quantity 1 ###
Quality 1 ###
Timeliness 1 ###
3. Has the organisational processes and structure

Frequency of evaluation Annually B2.3
been re-evaluated and aligned to the outputs?
4. Is your department submitting reports concerning

the utilization of savings in terms of sec 43 (1) of the Timeliness Within 7 days B2.4
PFMA?
REPORTS SUBMITTED TO:
Executive authority ###

Requirement
Norm Actual
Monthly
Relevant Treasury ###
Requirement
Norm Actual
Monthly
C. Revenue and expenditure management
1. Does the AO regularly examine the operations

1. Revenue Management of the department to identify new sources or potential Frequency At least annually C1.1
sources of revenue?
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 Frequency At least annually C1.2
fund and the letting of state property? [TR 7.3, TR
10.2.4]
Treasury approval obtained for

Compliance
tariff structure
###
3. Is the collection of revenue monitored on a

regular basis and reported to the executive authority? Frequency Monthly C1.3
[sec 39 (2)(b) of the PFMA]
Timeliness 15 days after month end ###
All variances explained and

Quality
followed up
###
4. Is cash received deposited on a regular basis,
Frequency Daily C1.4
where possible? [TR 15.10]
1. What is the estimated/actual % of Total expenditure X 100

2. Expenditure Management 0% C2.1
overspending? Total voted amount X 1

2% C2.2
underspending? Total voted amount X 1
3. Is over/underspending monitored on a regular

basis and reported to the relevant executive Frequency Monthly C2.3
authority? [sec 39 of the PFMA]

Quality
followed up
###
4. Does the AO ensure that, before transferring
funds to an entity, the requirements of sec 38(1)(j) of Compliance Availability of written assurance C2.4
the PFMA are met?
5. Are the certified payroll reports returned to the
Timeliness Within 10 days of payment date C2.5
CFO as required? [TR 8.3.5]
Requirement
Norm Actual
Monthly
6. Is the actual monthly expenditure per
programme in accordance with the cash flow % of variance 2% C2.6
projection?
7. Are all payments in excess of R2 000 being

Compliance 100% C2.7
effected electronically [TR.15.12.3]
Requirement
Norm Actual
Monthly
D. Asset and liability management
1. Has the department established a Register integrates with

1. Asset Management comprehensive asset register for departmental Existence purchasing and payments D1.1
assets? [sec 38(1) of the PFMA & TR.10.1.2] system
Structure of register allows for

different classification of assets
###
Register clearly identifies of

persons responsible for assets
###
Register provides data on

acquisition, asset identification,
performance, disposal and
###
accounting
2. Has the department developed a policy and

Include all aspects of the asset
procedure manual to ensure effective management Existence D1.2
life-circle
of assets? [sec 38(1)(d) of the PFMA & TR10.1.2]
Updated on a regular basis ###
Staff involved receive

appropriate training
###
3. Are replacements costs weighed against the Investment cost analysis done in
100% D1.3
cost of maintenance? support of all decisions
4. Are assets utilised optimally?
Regular evaluation Annually D1.4
[TR10.1.2]
Utilisation:
Land and buildings 100% ###
Furniture and office
equipment
90% ###
Computer equipment 90% ###

Requirement
Norm Actual
Monthly
1. Are stock levels at an optimum and economical
2. Inventory/stock D2.1
level? [TR 10.1.1. (b)]
% of excessive and redundant
stock items in relation to total 0% ###
number of stock items
Number of out-of-stock requests as

a % of number of requisitions
0% ###
Value of stock held in excess of 6

months
R0,00 ###
2. Is there a formal documented procedure Value of stock losses as a % of

0,1% D2.2
providing for management to monitor stock losses? total stock value
1. Are effective processes in place

Number of days before payment is
to collect outstanding debt? < 30 days D3.1
received
3. Debtors [TR.11.2.1]
Amount of debt in arrears
exceeding 6 months
R0,00 ###
2. Does the department produce a debtors age

Timeliness Monthly D3.2
analysis on a regular basis?
3. Has the accounting officer established a debt

Existence Documented Policy D3.3
write-off policy? [TR 11.4.2]
Bad debt X 100

Debtors 1
0,5% ###
1. Are all payments due to creditors settled within

4. Creditors Compliance Normal creditors <30 days D4.1
the prescribed period [TR8.2.3]?
2. Does the department produce a creditors age

3. Are interest free facilities and possible discount Number of reported cases where
0 D4.3
utilised to the fullest extent? [TR.15.10.1.2] discounts were not utilised
Requirement
Norm Actual
Monthly
E. Accounting and reporting requirements
1. Are revenue and expenditure transactions
1. Accounting allocated to a clearing or suspense account Written delegations exist CFO E1.1
approved at an appropriate level?
2. Are suspense accounts cleared and reconciled
Frequency Monthly E1.2
appropriately? [TR 17.1.2]
Quality of reconciliation 100% reconciled and cleared ###
Regular reports to accounting Report to AO on uncleared items
officer monthly
###
Amounts dormant for longer than 6
months
R0 ###
Value of cases older than 12
months not written off
R0 ###
3. Are control measures in place to ensure that all

transactions are supported by authentic and
Post audit findings Favourable E1.3
verifiable source documents, clearly indicating the
approved accounting allocation [TR.17.1.1]
4. Are bank reconciliation’s done on a regular

Frequency Daily E1.4
basis by the department? [TR15.10.1.2(j)]
5. Does the accounting officer ensure that all

Certificate of compliance signed
transactions have been recorded before the closure Compliance E1.5
by the accounting officer
of accounting months?
1. Is the objective within the general ledger

2. Financial Systems aligned with the approved structure of the Estimates Degree of alignment 100% E2.1
of Expenditure of the department?
2. Is the responsibility structure within the general
ledger aligned with the approved organisational Degree of alignment 100% E2.2
structure of the department?
3. Is the current approved establishment captured
Degree of capturing 100% E2.3
and updated on the PERSAL system?
4. Are processes in place to ensure suitable
% of employees employed out of
absorption of employees into posts on the approved 0% E2.4
adjustment
establishment?
5. Does the department conduct regular system

training courses to ensure optimal utilisation of the Frequency Annually E2.5
departmental financial systems?
6. Is proper maintenance done on the

department’s technical infrastructure (i.e. hardware, Acceptable uptime for the users 98% E2.6
software, networks, etc)
Acceptable response time < 5 seconds ###

7. Are proper Batch control procedures Frequency of updating batch
Daily E2.7
implemented and maintained for Batch systems? control registers
8. Is there a proper password control strategy in

Regular renewal of passwords < 30 days E2.8
the department?
Number of login attempts < 3 ###

Requirement
Norm Actual
Monthly
1. Have the actual revenue and expenditure,

projections and variances been submitted in the Frequency Monthly E3.1
prescribed format? [sec 40(4)(b) & (c) of PFMA]
3. Monthly reports
All variances explained, including
Quality information on DORA reporting ###
requirements
1. Is reporting on performance against the

Frequency Quarterly E4.1
strategic plan done on a regular basis? [TR.5.3.1]
4. Quarterly reports
30 days after the end of each

Timeliness of reporting
quarter
###
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]
Timeliness 30 days after end of quarter ###
3. Do Schedule 3A & 3C Public entities report on

a regular basis on the extent of compliance with the Frequency Quarterly E4.3
PFMA and Treasury Regulations? [TR26.1.2]
Explanations rendered for non-

Quality
compliance
###
1. Has the department submitted the AFS

Compliance On or before 31 May E5.1
timeously for audit purposes? [sec 40(1) of PFMA]
5. Annual Reporting
In accordance with National

Quality
Treasury guidelines
###
Accepted by the auditors ###

Requirement
Norm Actual
Monthly
2. Has the department submitted the annual

report, including, the audited financial statements and Compliance On or before 31 August E5.2
the audit report, timeously to the executive authority?
QUALITY

Annual report
Treasury Guidelines
###
Financial statements Unqualified report ###
3. Has the executive authority tabled the

department's annual report including the financial
Compliance On or before 30 September E5.3
statements and audit report thereon in the
legislature? [sec 65(1) of PFMA]
Tabling of written explanation in

Non-compliance
the legislature
###
4. Has the executive authority tabled the annual

reports of public entities under his/her control in the Compliance Within 6 months after year end E5.4

Non-compliance
the legislature
###
5. Is the content of the dept's annual report in

accordance with the legislative requirements? [sec
Compliance 100% E5.5
40(3) of the PFMA, TR 18.3 & PSR, Chapter1, Part
111 J]
6. Is a schedule regarding disciplinary procedures

and criminal charges submitted to the relevant Frequency Annually E5.6
treasury and the Auditor-General. [TR 4.3.3]
Timeliness 30 days after year end ###

Include report on changes made
Quality to systems of financial and risk ###
management
7. Are any surpluses/ deficits at the end of the

financial year for trading entities under your control Frequency Annually E5.7
being declared to the relevant treasury. [TR 19.7.1]
Timeliness 2 months after year end ###

Province Select Province
Provincial Department of: Select Department
NATIONAL DEPARTME
A. Management arrangements Select Department
Requirement
Norm Actual
Monthly

Existence A1.1
36(5) of the PFMA & PSR, Chapter 1 Part VII.B.2]. appointment

updating
4 times per year No

of the agreement
Main delegations or
the agreement

[TR 2.1]

experience
###
3. Has an annual performance agreement been Signed agreement on or before

prepared between the AO and the CFO? [PSR, Existence 30 April or within 3 months from A1.3
Chapter 4 Part III] date of appointment

updating
Requirement
Norm Actual
Monthly

###
agreement
department? per year

###

the AO
###



practitioner
###
7. Is the vacancy rate in the finance component No. of vacancies X 100

addressed on a regular basis? [PSR, Chapter 1, Part Establishment of finance 5% A1.7
III] Component
Requirement
Norm Actual
Monthly

duties? [PSR, Chapter 1 Part I.B]
qualifications
###
9. Have career development plans been drawn

% of financial staff with career
up for all staff members in the finance section? [PSR, 100% A1.9
development plans
Chapter 1 Part VIII.B]

programme
100% ###

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

to employees
###
11. Are all departmental policies and procedures

% of departmental policies and
within the finance component documented and 100% A1.11
procedures documented
approved?

Compliance
Regulations
###

Requirement
Norm Actual
Monthly

& 45 of PFMA]

all levels of the hierarchy? [PSR, Chapter 1 Part VIII.]
evaluation
14. Are officials within the department acquainted

with the measures set out in the code of conduct for Frequency of information sessions 2 sessions per year A1.14
the public service? [PSR, Chapter 2 ]

A1.15
PFMA]
Compliance Corporate plans submitted

Select Province

expenditure and borrowings
submitted
Eastern Cape
concluded Free State

Gauteng
3A/3C KwaZulu-Natal
Compliance Strategic plans submitted

Limpopo
expenditure submitted Mpumalanga

North West
framework
Requirement
Norm Actual
Monthly

PFMA Western Cape

Treasury Regulations
Frequency of updating Annually

Public Service Act;
Public Service Regulations
Frequency of updating Annually

process? [TR 3.2.1]

frameworks?
model


Requirement
Norm Actual
Monthly



2. Are the activities of the department organised
in such a manner that the following functions are Internal audit findings Favourable A3.2

· Approving ###
· Processing ###
· Recording ###
· Reconciling ###


###
within 14 days
###
1. Does the department have a system of internal Internal Audit Function In-house;

Requirement
Norm Actual
Monthly
annually
###
implemented
###

appointed?

###

officer
3.2.5]

###

of each audit
###
for managing departmental risks? [TR3.2.1] risk areas

care?

external party


Requirement
Norm Actual
Monthly


Frequency A4.9
authority

three members
###

in the employ of the department
###

public service
###

employ of the department
###

accounting officer
TERMS OF REFERENCE
Membership ###

Requirement
Norm Actual
Monthly
Requirement
Norm Actual
Monthly
service to the department? [TR 3.1]

function
###

###

financial reports
###

###


the PFMA and DORA

statements
###
Requirement
Norm Actual
Monthly

1. Planning Timeliness discussion of the department’s B1.1
budget vote



accordance with the requirements of the Treasury
Regulations and Public Service Regulations? [TR
5.2.2 and PSR, Chapter 1, Part III.B]
100% B1.5




PFMA] measure
Quantity 1 ###
Quality 1 ###
Timeliness 1 ###


PFMA?

Requirement
Norm Actual
Monthly
Requirement
Norm Actual
Monthly

1. Revenue Management of the department to identify new sources or potential Frequency At least annually C1.1
sources of revenue?

10.2.4]

Compliance
tariff structure
###


Quality
followed up
###


2% C2.2


Quality
followed up
###
the PFMA are met?
Requirement
Norm Actual
Monthly
projection?

Requirement
Norm Actual
Monthly
1. Has the department established a Register integrates with

1. Asset Management comprehensive asset register for departmental Existence purchasing and payments D1.1
assets? [sec 38(1) of the PFMA & TR.10.1.2] system

###

###

###
accounting
2. Has the department developed a policy and

life-circle

###
100% D1.3
[TR10.1.2]
Utilisation:
equipment
90% ###

Requirement
Norm Actual
Monthly
level? [TR 10.1.1. (b)]

0% ###

months
R0,00 ###

0,1% D2.2

received
exceeding 6 months
R0,00 ###
2. Does the department produce a debtors age


Bad debt X 100

Debtors 1
0,5% ###

2. Does the department produce a creditors age

0 D4.3
Requirement
Norm Actual
Monthly
officer monthly
###
months
R0 ###
R0 ###


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


structure of the department?
adjustment
establishment?
5. Does the department conduct regular system

departmental financial systems?
6. Is proper maintenance done on the

department’s technical infrastructure (i.e. hardware, Acceptable uptime for the users 98% E2.6
software, networks, etc)

Daily E2.7

the department?

Requirement
Norm Actual
Monthly

3. Monthly reports
requirements


quarter
###

[TR.26.1.1]


Quality
compliance
###
1. Has the department submitted the AFS

5. Annual Reporting

Quality
Treasury guidelines
###

Requirement
Norm Actual
Monthly
2. Has the department submitted the annual

report, including, the audited financial statements and Compliance On or before 31 August E5.2
the audit report, timeously to the executive authority?
QUALITY

Annual report
Treasury Guidelines
###

department's annual report including the financial

Non-compliance
the legislature
###


Non-compliance
the legislature
###
5. Is the content of the dept's annual report in

accordance with the legislative requirements? [sec
Compliance 100% E5.5
40(3) of the PFMA, TR 18.3 & PSR, Chapter1, Part
111 J]


management


Constitutional Institution: Select Institution
Constitutional Institutions
A. Management arrangements
Requirement
Norm Actual
Monthly
Existence A1.1
36(5) of the PFMA] appointment

updating
4 times per year No

of the agreement
Main delegations or
the agreement

[TR 2.1]

experience
###
Signed agreement on or before

3. Has an annual performance agreement been
Existence 30 April or within 3 months from A1.3
prepared between the AO and the CFO?
date of appointment

updating
Requirement
Norm Actual
Monthly

###
agreement
institution? per year

###

the AO
###



practitioner
###
No. of vacancies X 100

7. Is the vacancy rate in the finance component
Establishment of finance 5% A1.7
addressed on a regular basis?
Component
Requirement
Norm Actual
Monthly

duties?
qualifications
###
9. Have career development plans been drawn % of financial staff with career
100% A1.9
up for all staff members in the finance section? development plans

programme
100% ###

component?

to employees
###
11. Are all policies and procedures within the % of institutional policies and
100% A1.11
finance component documented and approved? procedures documented

Compliance
Regulations
###

Requirement
Norm Actual
Monthly

& 45 of PFMA]

all levels of the hierarchy?
evaluation
14. Are officials within the institution acquainted with

the measures set out in the code of conduct for the Frequency of information sessions 2 sessions per year A1.14
public service?
A1.15
PFMA]
Compliance Corporate plans submitted ###

expenditure and borrowings ###
submitted

concluded
###

###

3A/3C
Compliance Strategic plans submitted ###

expenditure submitted
###

###

framework
Requirement
Norm Actual
Monthly

PFMA ###
Treasury Regulations ###

Public Service Act; ###
Public Service Regulations ###

process? [TR 3.2.1]

frameworks?
model


Requirement
Norm Actual
Monthly



2. Are the activities of the institution organised in
such a manner that the following functions are Internal audit findings Favourable A3.2

· Approving ###
· Processing ###
· Recording ###
· Reconciling ###


###
within 14 days
###
1. Does the institution have a system of internal Internal Audit Function In-house;

Requirement
Norm Actual
Monthly
annually
###
implemented
###

appointed?

###

officer
3.2.5]

###

of each audit
###
for managing risks? [TR3.2.1] risk areas

care?

external party


Requirement
Norm Actual
Monthly


Frequency A4.9
authority

three members
###

in the employ of the institution
###

public service
###

employ of the institution
###

accounting officer
TERMS OF REFERENCE
Membership ###

Requirement
Norm Actual
Monthly
Requirement
Norm Actual
Monthly
service to the institution? [TR 3.1]

function
###

###

financial reports
###

###


the PFMA and DORA

statements
###
Requirement
Norm Actual
Monthly

1. Planning Timeliness discussion of the institution’s B1.1
budget



accordance with the requirements of the Treasury Compliance 100% B1.4
Regulations ? [TR 5.2.2]
100% B1.5




PFMA] measure
Quantity 1 ###
Quality 1 ###
Timeliness 1 ###


PFMA?

Requirement
Norm Actual
Monthly

1. Revenue Management of the institution to identify new sources or potential Frequency At least annually C1.1
sources of revenue?

10.2.4]

Compliance
tariff structure
###


Quality
followed up
###


2% C2.2


Quality
followed up
###
the PFMA are met?
Requirement
Norm Actual
Monthly
projection?

Requirement
Norm Actual
Monthly
1. Has the institution established a Register integrates with

1. Asset Management comprehensive asset register for institutional assets? Existence purchasing and payments D1.1
[sec 38(1) of the PFMA & TR.10.1.2] system

###

###

###
accounting
2. Has the institution developed a policy and

life-circle

###
100% D1.3
[TR10.1.2]
Utilisation:
equipment
90% ###

Requirement
Norm Actual
Monthly
level? [TR 10.1.1. (b)]

0% ###

months
R0,00 ###

0,1% D2.2

received
exceeding 6 months
R0,00 ###
2. Does the institution produce a debtors age


Bad debt X 100

Debtors 1
0,5% ###

2. Does the institution produce a creditors age

0 D4.3
Requirement
Norm Actual
Monthly
officer monthly
###
months
R0 ###
R0 ###


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


structure of the institution?
adjustment
establishment?
5. Does the institution conduct regular system
institutional financial systems?
6. Is proper maintenance done on the institution’s

technical infrastructure (i.e. hardware, software, Acceptable uptime for the users 98% E2.6
networks, etc)

Daily E2.7

the institution?

Requirement
Norm Actual
Monthly

3. Monthly reports
requirements


quarter
###

[TR.26.1.1]


Quality
compliance
###
1. Has the institution submitted the AFS

5. Annual Reporting
In accordance with generally

Quality
accepted accounting practice
###

Requirement
Norm Actual
Monthly
2. Has the institution submitted the annual report,

including, the audited financial statements and the Compliance On or before 31 August E5.2
audit report, timeously to the National Treasury?
QUALITY

Annual report
Treasury Guidelines
###

institution's annual report including the financial

Non-compliance
the legislature
###


Non-compliance
the legislature
###
5. Is the content of the institution's annual report

in accordance with the legislative requirements? [sec Compliance 100% E5.5
40(3) of the PFMA & TR 18.3]


management


Normative Measures Annexure A

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Normative Measures Annexure A

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NORMATIVE

1. Accounting officer (AO) 1. Has an employment contract/annual Signed performance agreement

Frequency of evaluation and

Performance standards which

2. Has a competent CFO been appointed?

± 5 years financial management

3. Has an annual performance agreement been Signed agreement on or before

Frequency of evaluation and

Performance standards which

CFO tables 12 management

CFO is directly accountable to

5. Has the CFO and his/her financial team

Plan is accessible to employees ###

Frequency of updating Annually ###

6. Has the finance component been aligned to

Management accountant ###

Supply chain management

7. Is the vacancy rate in the finance component No. of vacancies X 100

Average length of vacancy 3 months ###

% of staff who have finance related

9. Have career development plans been drawn

% of staff in structured training

10. Have detailed job descriptions been prepared

Job descriptions communicated

Frequency of updating Every 3 years ###

11. Are all departmental policies and procedures

In-line with latest Treasury

Frequency of updating Annually ###

12. Are regular information sessions held with the

13. Are performance agreements/plans drawn up at

Timeliness 1-Apr ###

14. Are officials within the department acquainted

15. Has your department established processes to

Compliance Corporate plans submitted ###

Estimates of revenue &

Annual shareholders compact

Quarterly reports regarding

PUBLIC ENTITIES: SCHEDULE

Compliance Strategic plans submitted ###

Estimates of revenue &

Quarterly reports regarding

16. Has your department established processes to

17. Has the accounting officer delegated his/her COMPLETE SET OF

Frequency of updating Annually ###

18. Has the executive authority delegated his/her COMPLETE SET OF

Public Service Act; ###

Public Service Regulations ###

Frequency of updating Annually ###

1. Has the AO accepted responsibility for the total

Documented, approved system

3. Has the AO ensured that a formal risk

4. Has a comprehensive system of internal

5. Are the strategies and control activities

6. Does the strategy to manage identified risks

Implementation 2 reports per year ###

1. Are proper internal control mechanisms

3. Is the accounting for each transaction type

4. Have the levels of authority of the employees been

Internal audit findings Favourable ###

Reliance by top management ###

Reliance by the external auditor ###

2. Has a competent head of internal audit been

5 years management experience

3. Does the internal audit function report at a