| 1. |
PURPOSE
To ensure a uniform procedure for the handling of payment vouchers processed on the Basic Accounting System (BAS) and to ensure compliance with Chapters 8.1 and 8.2 of the National Treasury Regulations (NTR), issued on 15 March 2005 in terms of Section 76 of the Public Finance Management Act, 1999 (Act 1 of 1999) (PFMA), as well as with Chapter 8.1 of the Provincial Treasury Instructions (WCPTI), issued on 5 November 2009 in terms of Section 18(2)(a) of the PFMA
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| 2.1 |
Education Finance Minute 0004/2007, dated 17 May 2007, is hereby repealed. |
| 2.2 |
Chapter 8.1 of the WCPTI regulates payments and vouchers and must be adhered to at all times. |
| 2.3 |
According to Chapter 8.1.8 of the WCPTI, the person verifying a voucher for payment must be authorised by delegation. The delegated official must also ensure that the requirements indicated in Chapter 8.1.8(a) to (g) of the WCPTI have been complied with before proceeding with the payment. |
| 2.4 |
All directors must implement procedures to ensure that their authorisers comply with the requirements indicated in this minute. |
| 3. |
COMPLETION OF PAYMENT VOUCHERS |
| 3.1 |
Officials allocated the function of authorisers on BAS must ensure that completed BAS input forms support each payment processed on the system. All fields on the BAS input forms are compulsory and must be completed. |
| 3.2 |
Authorisers must ensure that the following correct input forms are completed:
- PGWC 001 (TRAVEL & SUBSISTENCE SUNDRY ADVANCE PAYMENT) - to apply for authorisation of a travel and subsistence advance. The payment is made by completing a PGWC 013 form and attaching the completed PGWC 001.
- PGWC 002 (BAS ALLOCATION ATTACHMENT) - summary of the applicable allocations and to be attached to the PGWC 013 and PGWC 015 forms
- PGWC 003 (BAS DEBT: AGREEMENT MAINTENANCE) - for dealing with debtors
- PGWC 004 (BAS JOURNAL ENTRY PROCESSING MAINTENANCE) - for journals
- PGWC 013 (BAS SUNDRY/ RECURRING PAYMENT MAINTENANCE) - for sundry payments
- PGWC 015 (BAS PURCHASE ORDER PAYMENT) - for the payment of orders placed
- Form 1450 (ORDER PAYMENT TRANSACTION FORM) - use in conjunction with PGWC 015
- Receipts - use to record all funds received by Cashier of the WCED
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| 3.3 |
The necessary supporting documentation must be securely attached to the BAS input forms. |
| 3.4 |
BAS input forms must be stamped "PROCESSED" and all invoices and other supporting documents must be stamped "PAID" once the transaction has been authorized on BAS. |
| 3.5 |
The following attached annexures provide guidance on supporting documents and completion of input forms: |
| 3.5.1 |
Annexure A: Forms and supporting documents for payments |
| 3.5.2 |
Annexure B: Completion of forms PGWC 015 and PGWC 013 |
| 3.6 |
To ensure that requirements for the completion of payment vouchers have been complied with and to eliminate irregular and wasteful expenditure, the attached checklist for payments (Annexure D) must be completed and verified by the official authorising the payment and must be submitted, together with each payment voucher and supporting documentation, to the Division: Financial Capacity Building (FCB) of the Directorate: Financial Accounting in Room 7-03 in the Grand Central Building, Cape Town. This must be done with effect from 1 April 2011. |
| 3.7 |
Unless determined otherwise in a contract or other agreement, all payments due to creditors must be settled within 30 days after receipt of an invoice. If any payment due to a creditor is not settled within 30 days after receipt of the invoice, the reason for the delayed payment must be provided on the attached checklist for payments (Annexure D - see space provided for motivation of delayed payments on the checklist). |
| 4. |
COMPLETION OF JOURNAL ENTRIES
To prevent recapturing of journals and supporting documents to journals, it is necessary that supervisors who authorise journals online affix the word "PROCESSED" to the face of the journal and the supporting documentation so as to indicate that it has been posted to books.
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| 5. |
SUBMITTING OF VOUCHERS |
| 5.1 |
The delegated authorisers are responsible for the safekeeping of their vouchers, which are to be submitted, together with their Document Control Reports (DCR) drawn from BAS at the beginning of each month, to the FCB by the 7th day of each month. |
| 5.2 |
Each authoriser must draw a monthly DCR for the first to the last day of each month. In cases where there is more than one authoriser per directorate, each authoriser must draw a DCR for their own user ID. The purpose of the report is to indicate all transactions that have been processed for a particular month. |
| 5.3 |
Authorisers must ensure that all the vouchers listed on that month's DCR are in their possession. |
| 5.4 |
The vouchers must be sorted numerically and submitted, together with the relevant DCR and securely attached supporting documentation and checklist, for payments. |
| 5.5 |
An official from the Verification Section of the FCB and the official submitting the vouchers will validate that all vouchers are submitted according to the DCR. The official from the Verification Section of the FCB will then certify that all vouchers have been received. Both parties must sign the DCR and keep copies of the certified DCR for record purposes. |
| 5.6 |
DCR's lacking vouchers will not be accepted and will be referred back to the relevant authoriser for the submission of the complete batch, as stated on the DCR. |
| 5.7 |
The official from the Verification Section of the FCB will check to ensure that all documents submitted are originals and properly certified, and that all vouchers are accompanied by the necessary supporting documentation, including the checklist. |
| 5.8 |
A list of all outstanding vouchers will be issued monthly to all authorisers, whereafter, if these vouchers are still not received by the FCB, the list will be escalated to the relevant director for intervention. |
| 5.9 |
Failure to submit vouchers will be seen in a serious light. The non-submission of vouchers was raised as a matter of concern by the Auditor-General in the 2008-09 and 2009-10 audits. Should the vouchers not be submitted, the expenditure incurred will be regarded as irregular and will be reported as such. Furthermore, where payment vouchers are not submitted after a period of 2 months, user access to BAS by the officials responsible will be revoked. |
| 6. |
REQUESTING BAS PAYMENT VOUCHERS FROM THE DIVISION: FINANCIAL CAPACITY BUILDING (FCB) |
| 6.1 |
Officials requiring access to the original BAS vouchers previously submitted to the FCB must complete and sign a replacement voucher. The replacement voucher must clearly indicate the name and contact details of the person requesting the voucher(s) and the date of request. |
| 6.2 |
Original vouchers will be issued only for a period not exceeding five working days, whereafter the vouchers must be returned to the FCB. Exceptions to this rule will be allowed only for vouchers issued to the Office of the Auditor-General, Forensic Audit, Internal Audit or SARS. |
| 7. |
RECORD OF GOODS AND SERVICES RECEIVED AND NOT YET INVOICED, AS WELL AS INVOICES RECEIVED AND NOT YET PAID
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| 7.1 |
For the purposes of reporting on Accruals, all offices must keep a register of all goods and services received and of all invoices received. In order to facilitate reporting on Accruals to the Provincial Treasury, as well as for inclusion in the Interim and Annual Financial Statements, the following information must be submitted to the FCB by the 7th day after the end of each quarter:
- All goods and services received and not yet invoiced
- All invoices on hand and not yet paid
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| 8. |
It is essential that the contents of this minute be brought to the attention of all officials dealing with the preparation, processing and authorising of payments and journals on BAS. |
| 9. |
Your co-operation will be appreciated. |
SIGNED: LJ ELY
CHIEF DIRECTOR: FINANCIAL MANAGEMENT
DATE: 2011:02:23
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