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

Memorandum of Agreement (2020)

Annexure A

B. Criteria: Financial Performance Indicators

B.7. Annual growth in debtors
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Description:

This indicator determines the extent to which auditees are able to recover their debt book year-on-year.

 

Calculation

The percentage of debtor's growth is calculated by dividing the amount of debtors' balance by the previous financial year's debtors' balance as indicated in the auditee's statement of financial position.

 

Score

Rating

Score 3

Growth in debtors of more than 20% over period

Score 2

Growth in debtors of between 10% and 20% over period

Score 1

Growth in debtors of less than 10% over period