Public Audit Act, 2004 (Act No. 25 of 2004)

Memorandum of Agreement (2020)

Annexure A

B. Criteria: Financial Performance Indicators

B.3. Reliance on grants (Own Source Revenue to Total Operating Revenue)
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Description:

The ratio assesses the extent of own source revenue to total operating revenue. This indicator determines the levels at which the auditee is able to generate own funds to finance revenue generating assets in order to enhance and sustain revenue generating streams.

 

Calculation

Own Source Revenue (Total Revenue - Government Grants and Subsidies - Public Contribution and Donations)/Total Operating Revenue (Including Agency Services) x 100

 

Score

Rating

Score 3

revenue grants exceed 75%

Score 2

revenue grants are between 30% to 75%

Score 1

revenue grant that is less than 30%