1. Many enquiries are received in connection with the submission of requests for furniture and equipment, which are recorded as both major and minor items on the Asset Register.
2. Treasury Circular No 18 of 2008 of 6 May 2008 determines that the head of department must keep a register of all movable assets. In terms of the Preparation Guide to the Annual Financial Statements, issued by National Treasury, Provincial Treasury now also requires heads of department to reconcile all minor assets (assets with a value of less than R5 000) purchased, with the expenditure on BAS as well as LOGIS. A report to this effect must be submitted to Treasury every month. To reconcile LOGIS with BAS, all inventory items (furniture and equipment) must be purchased and paid via LOGIS, which automatically interfaces with BAS via the LOGIS Integration. Thus, all expenditure via LOGIS will reflect on BAS. However, if an inventory item is paid via BAS, it will not reflect on LOGIS.
3. At this stage, education district offices do not have access to LOGIS and with immediate effect, all purchases of furniture and equipment must therefore be made via Head Office, irrespective of the costs involved. This will allow Head Office to ensure that the correct Item Control Number is used on LOGIS; that a barcode is allocated centrally on LOGIS; that the item description and value are indicated correctly; that the location is indicated correctly; and that the Asset Register of the WCED is updated.

4. Responsibility Managers at Head Office and the education district offices are requested to adhere to the following procedure:
4.1 A Log 1 (Requisition) form in respect of furniture and equipment must be completed and signed by the Responsibility Manager. This Log 1 form must be sent to Mr RL Africa on the 6th floor of the Grand Central Towers building. The following information must appear on the Log 1 form:

  1. A complete description, with specifications and number of the item(s) required

  2. The approval of the relevant programme manager for the capital expenditure (major and minor)

  3. The precise location of the item(s) (building, floor and room number). The door barcode number installed by Head Office must be recorded if it is an existing location.

  4. Where more than one of the same item is ordered, the Responsibility Manager must indicate where each item will be located. Where there is insufficient space on the LOG 1 form, a separate list of the item(s) can be compiled and attached.

  5. Ensure that all requisitions are numbered consecutively. The responsibility manager's code must precede the requisition number.
4.2 Funds for the relevant acquisition must be reflected on the BAS Allocation form (PGWC002). The Directorate: Management Accounting must be consulted regarding the financial structure codes that must be used.
4.3 Ensure that specifications are complete and correct. Incorrect specifications are common causes for delays in processing of requisitioned items.
4.4 Requisitions for furniture and equipment must be submitted at least 30 days before these items are required. Quotations for these items will be obtained via Sourcelink. Bids will be called for equipment with a value exceeding R200 000. Requisitions for these items must therefore be submitted at least 3 months in advance.
4.5 The requisitions must be divided and separate requisitions must be submitted for the following items:
  1. Contract items: Items available on National or Provincial transversal contract, which include

    • the purchase of shredders and rental of reprographic machines (contract RT 3/2006 GE)
    • IT equipment (contract RT 285); and
    • IT software (contract RT 185).

    Responsibility managers must ensure that, in respect of IT equipment, the Ditcom approval accompanies the approved requisition.

  2. Non-contract items: Items not available on National or Provincial transversal contract: including software (that is not available on contract RT 185), binders, fax machines, etc.

  3. Equipment, including standard and non-standard furniture: filing cabinets, workstations, etc. However, standard modular work stations and accompanying furniture for MMS and SMS members will be purchased from Service Products in accordance with the provisions of the Accounting Officers System, and standard open-plan work stations will be purchased from the provincial contract administered by the Department of Transport and Public Works. The current contractor is Cape Seating Manufacturers.
5. The WCED is compelled to adhere to Treasury Instructions regarding inventories and these and the Asset Register will be continually updated. It must be emphasised that all furniture and equipment are in the custody and care of the relevant Responsibility Manager. Such furniture and equipment must therefore, be kept in a safe place. The co-operation of all Responsibility Managers will, therefore, be much appreciated.
6. Please note that aforementioned information must be read in conjunction with Circulars 28/2005 of 23 May 2005, 41/2005 of 17 August 2005 and 63/2007 of 29 November 2007.
7. The measures contained in Circular 0021/2005 of 22 April 2005, regarding preferential procurement, i.e. applying preferences to quotations obtained via the Electronic Purchasing System, and written quotations obtained for the supply of goods and services, remain in place.
8. Responsibility Managers are requested to inform all personnel of the content of this circular.
9. Any enquiries regarding the content of this circular may be directed to the following persons:

Mr HJ Fisher       021 467 2804

Mr D Scholtz       021 467 2799

Ms M Abrahams  021 467 2809


SIGNED: LJ ELY
HEAD: EDUCATION
DATE: 2008:12:07