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

Memorandum of Agreement (2020)

Annexure A

B. Criteria: Financial Performance Indicators

B.4. Operational overspending
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Description:

This ratio measures the extent to which Budgeted Operating Expenditure has been spent during the financial year, under review. The ratio also assesses whether the auditee has effective controls in place to ensure that expenditure is incurred in accordance with an approved budget

 

Calculation

Actual Operating Expenditure / Budgeted Operating Expenditure x 100

 

Score

Rating

Score 3

Over-spending of more than 25% of operational budget

Score 2

Over-spending of between 10% and 25% of operational budget

Score 1

Over-spending of less than 10% of operational budget