1. Section 38(1)(a) of the Public Finance Management Act, 1999 (PFMA) places the responsibility for financial and risk management, as well as the effective and efficient use of assets, on the Accounting Officer. Treasury Regulation 10.1 (issued in terms of Section 76 of the said Act) requires the Accounting Officer to ensure that processes and procedures are in place for the effective, efficient, economical and legal use of the Departmentís assets.
2. In keeping with the requirements of Section 38 of the PFMA, the WCED already has a system of procurement and management of assets which is referred to as the Accounting Officerís System. The WCED recently issued Circular 0028/2005, dated 23 May 2005 and entitled Inventory Control at Head Office and EMDCs, and this is the policy document for the maintaining of the WCED Asset Register.
3. The following procedures for the procurement and installation of computer- and related equipment will, therefore, apply.
3.1 BUDGET FOR WCED COMPUTER ACQUISITIONS
3.1.1 The budget for WCED Head Office and EMDC computer equipment acquisitions is currently the responsibility of the Director: Information and Technological Services who, as budget responsibility manager, consolidates the computer needs for presentation to the Departmental IT Committee for recommendation. However, this arrangement does not facilitate the maintenance of the Asset Register, as all computer equipment for the Head Office and EMDCs is purchased via the Logistical Information System (LOGIS), which has an asset management function.
3.1.2 Inventories for each responsibility manager currently exist on LOGIS, which means that any acquisition of equipment by a responsibility manager is automatically recorded on the individual inventory, from order- to delivery stage. In the case of computer equipment, assets are added to the inventory of the Director: Information and Technological Services, which does not indicate the true location of the equipment. This arrangement will therefore change.
3.2 RESPONSIBILITY FOR COMPILING A 3-YEAR REPLACEMENT PLAN

The Management Information Systems (MIS) Manager (Education) of the Centre for e-Innovation (CEI) will be responsible for compiling the replacement policy for a 3-year budget cycle in line with the 3-year procurement plans required from responsibility managers. The replacement policy will reflect which type of equipment will be replaced in a particular year, e.g. Pentium III computers acquired during 2003 will be replaced in 2006/2007.

3.3 SUBMISSION OF REQUISITIONS

The MIS Manager (Education), in consultation with the various directorates, will be required to

(a) draw up a requisition plan which will indicate exactly what computer equipment will be replaced and where, and what new equipment will be purchased. The unique item numbers of items to be replaced must be indicated in the acquisition plan for each directorate.
(b) submit requisition forms for the computer needs to the Directorate: Logistical Services.
(c) indicate whether a requisition is for additional equipment or for replacement equipment. If it is the latter, each item to be replaced must be identified in full (reflecting location, the serial number and the barcode number on the computerised inventory system).
3.4 DELIVERY OF COMPUTER EQUIPMENT

Unlike past practice, computer equipment will not be delivered to a central store at the CEI and then issued to components. Delivery will, henceforth, be directly to the relevant director who must take responsibility for safe storage until the items can be installed by CEI staff and simultaneously issued to the users in the directorate. On delivery of the items, the director will certify the number and quality of items received. Suppliers reflect serial numbers on invoices and these serial numbers must be recorded on LOGIS. The configurations of the central processing unit will be assessed during the installation phase by CEI staff. Any exchange of equipment that arrives damaged, will be handled in terms of the warranty.

3.5 INSTALLATION PROCEDURES

Once delivered, the Director must arrange with the CEI for installation. The installation request must correlate with the locations indicated in the requisition. If there are any deviations, the movement forms attached to Circular 0028/2005 must be completed. A copy of the installation request will be submitted to the WCED asset manager (Mr D Scholtz) by the CEI, who will have ensured that the recipient of the new or replacement equipment has acknowledged the installation with a signature. The asset manager will then issue a VA7 Issue and Receipt Form on which the receipt has to be certified by the user of the equipment.

3.6 DISPOSAL
3.6.1 A disposal plan for items which are to be replaced will be submitted by the CEI with the requisition for the supply of computer equipment as indicated in paragraph 3.3 above. The disposal plan must be drawn up in consultation with the relevant director and approved in terms of the Accounting Officerís System.
3.6.2 The disposal process will be undertaken concurrently with the ordering of the new equipment so that, once it is received and installed, the administrative processes will have been completed and disposal can begin immediately. For this purpose, the CEI, in consultation with the director, is required to submit a separate requisition form declaring the items redundant. The Asset Manager will appoint a disposal board, comprising Supply Chain Management and CEI officials, which will perform its prescribed functions at the place where the items are still in use whilst replacement is awaited.
3.6.3 The co-operation of responsibility managers will ensure that the Asset Register reflects the de facto situation regarding their inventories.
4. The WCED is compelled to adhere to Treasury instructions regarding inventories, which require that the Asset Register be continually updated. The co-operation of all responsibility managers will, therefore, be much appreciated. To ensure compliance, senior management staff will be required to indicate, as one of their key measurable objectives, the recording of the movement of all equipment and to regularly report this movement to the Directorate: Logistical Services in the manner described above.
5. Kindly bring the content of this circular to the attention of all officials concerned.


SIGNED: L.J. ELY
HEAD: EDUCATION
DATE: 2005:08:17