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

Memorandum of Agreement (2020)

Annexure A

B. Criteria: Financial Performance Indicators

B.6. Percentage of debtors over total revenue
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Description:

This indicator determines whether the bulk of the revenue is tied up in debt, i.e. whether there is a low recovery of revenue converted into cash.

 

Calculation

The percentage of debtors over revenue is calculated by dividing the amount of the debtors' balance by the total revenue as indicated in the auditee's statement of financial position.

 

Score

Rating

Score 3

Debtors more than 30% of total own revenue

Score 2

Debtors between 15% and 30% of total own revenue

Score 1

Debtors less than 15% of total own revenue