Understanding and Using this Act > Normative Measures for Financial Management > Annexure A : User Manual for applying NMFM

Critical Performance Area

Basic Evaluation

Yes/No

Performance Indicator/Measure/ Requirement

Performance

Refer Annexure

Norm

Actual

1)	Asset Management

1)	Has the department established a comprehensive asset register for departmental assets? [sec 38(1) of the PFMA & TR.10.1.2]

Existence

Integration with purchasing and payments system

Structure to allow for different classification of assets

Clear identification of person responsible for assets

Data on acquisition, asset identification, performance, disposal and accounting

D1.1

1)	Has the department developed a policy and procedure manual to ensure effective management of assets? [sec 38(1)(d) of the PFMA & TR10.1.2]

Existence

Include all aspects of the asset life-circle

Updated on a regular basis

Staff involved receive appropriate training

D1.2

1)	Are replacements costs weighed against the cost of maintenance?

Investment cost analysis done in support of all decisions

100%

D1.3

1)	Are assets utilised optimally? [TR10.1.2]

Regular evaluation Utilisation :

- Land and buildings

- Furniture and office equipment

- Computer equipment

Annually

100%

90%

D1.4

2)	Inventory/stock

1)	Are stock levels at an optimum and economical level? [TR 10.1.1. (b)]

% of excessive and redundant stock items in relation to total number of stock items

Number of out-of-stock requests as a % of number of requisitions

Value of stock held in excess of 6 months

R0,00

D2.1

1)	Are stock losses / shortages monitored?

Value of stock losses as a % of total stock value

0,1%

D2.2

Debtors

1)	Are effective processes in place to collect outstanding debt? [TR.11.2.1]

Number of days before payment is received

Amount of debt in arrears exceeding 6 months

< 30 days

D3.1

1)	Does the department produce a debtors age analysis on a regular basis?

Timeliness

Monthly

D3.2

1)	Has the accounting officer established a debt write-off policy? [TR 11.4.2]

Existence

Bad debt X 100

Debtors 1

Documented Policy

0,5%

D3.3

Creditors

1)	Are all payments due to creditors settled within the prescribed period [TR8.2.3]?

Compliance

Normal creditors <30 days

D4.1

1)	Does the department produce a creditors age analysis on a regular basis?

Timeliness

Monthly

D4.2

1)	Are interest free facilities and possible discount utilised to the fullest extent? [TR.15.10.1.2]

Number of reported cases where discounts were not utilised

D4.3

Understanding and Using this Act

Normative Measures For Financial Management

Annexure A : User Manual for applying NMFM

D. Asset and liability management