SOP Unique ID: [Nr]

[NAME OF INSTITUTION]

INSTRUCTIONS / POLICIES
AND
STANDARD OPERATING PROCEDURES

TRAINING AND DEVELOPMENT

This is not a Treasury Instruction. This document is the foundation upon which Institutions are encouraged to draft their own instructions, policies and
procedures as required by the Treasury Regulations. This document is a template that may be used by individual Institutions to adjust their existing policies if
needed. They do not necessarily include every possible instruction, process or procedure that might be necessary to comply with the requirements of the
Treasury Regulations. It remains the entity's responsibility to ensure that its specific processes and procedures encompass all necessary instructions,
processes and procedures, to ensure it complies with the requirements of the Treasury Regulations.

Document # Title: Print Date:

[ID] [Procedure Name] [Date]
Revision # Prepared By: Date Prepared:
[Nr] [Authors Name] [Date]
Effective Date: Reviewed By: Date Reviewed:
[Date] [Reviewers Name] [Date]
Standard: Approved By: Date Approved:
[Standard, Law, or [Approvers Name] [Date]
Regulation]

Issued in terms of section of the Public Finance Management Act, 1999 (Act 1 of 1999)
[PFMA] and Treasury Regulations 2016

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TABLE OF CONTENTS

1. Purpose 3

2. Scope 3

3. Definitions and abbreviations 3

4. Financial management governance and regulatory framework 5

5. Capacity development 7

6 Institutional Instructions / Policies: Training and development 8

7 Annexures 9

8 Delegations of authority 9

9 Non-compliance 10

10 Monitoring, oversight and maintenance 10

11 Conclusion 10

12 Contact person 10

13 Approval 10

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1. Purpose

1.1 The purpose of these Instructions / Policies and Standard Operating Procedures
is to foster a culture of responsibility and accountability in the management and
use of training and development expenditure in <Insert name of Institution>.

1.2 It serves to outline the responsibility of each employee in the policy(ies),

procedures and the processing of payments and aims to ensure uniformity in its
application.

1.3 It also serves as a reference tool for educational and training purposes.

2. Scope

2.1 These Institutional Instructions / Policies and Standard Operating Procedures are
applicable to all employees of the <Insert name of Institution> including the
Accounting Officer / Accounting Authority [delete what is not applicable].

3. Definitions and abbreviations

3.1 The comprehensive list of Abbreviations and Definitions are covered in detail in
General Concepts, Definitions and Principles, and should be read in conjunction
with these Instructions / Policies and Standard Operating Procedures.

3.2 The abbreviations and definitions that are pertinent to these Instructions / Policies
and Standard Operating Procedures are described below:
WSP Workplace Skills Plan
SCOA Standard Chart of Accounts
SETA Sector Education Training Authority

Training and development expenditure can be defined as a function of human

resource management concerned with organisational activity aimed at bettering the
performance (in terms of attitude, skills and behaviour) of individuals and groups in the
Institution. It is also known as "human resource development", and "learning and
development".

The terms "training" and "development" are used together to describe the overall
improvement and education of the Institutions employees through a variety of
educational methods and programs. Training programs have very specific and
quantifiable goals, for example, operating a particular piece of machinery, understanding
a specific process, or performing certain procedures with great precision. Developmental
programs, on the other hand, concentrate on broader skills that are applicable to a wider
variety of situations, such as decision making, leadership skills, and goal setting.
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A brief description of the payments for the various goods/ services as reflected on the
SCOA follows:

Training and development provided to employees and non-employees as well as training

materials not provided for separately under goods and services. Included under this item
are payments made to institutes (SAGO, IPFA, SAICA, etc.) to attend seminars,
workshops and training sessions. This item will include registration fees for attending
workshops and seminars relevant to the job description of the individual either or the
business and operational requirements of the institution. Costs incurred for materials
and manuals specifically related to training and staff development.

The following items relating to training and development are not included in the definition.
They are treated separately in the SCOA and are as follows:

Bursaries, reimbursement of travel and subsistence costs

Accommodation fees included in registration fees should be classified as Travel

and Subsistence - Domestic - Accommodation if the cost element is provided. In
the event where the information is not readily available the split would not be
required.

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4. Financial management governance and regulatory framework

4.1 Legislation

4.1.1 The Public Finance Management Act 1 of 1999.

4.2.2 Public Service Act of 1994.

4.2.3 Skills development Act 97 of 1998

4.2 Treasury Regulations

4.2.1 The AA / AO and CFO are responsible for establishing of a system of

internal control, and processes for the effective and efficient risk
assessments in their institution. The following Treasury Regulations (2016)
must be complied with in the execution of this Instructions / Policies and
SOPs.

Para 6 Institutional instructions and standard operating procedures

Para 9 Functions of Chief Financial Officers

Para 16 System of internal control [sections 38(1)(a)(i) and 51(1)(a)

(i)]

Para 17 Control environment

Para 18 Risk assessment [sections 38(1)(a)(i) and 51(1)(a)(i)]

Para 54 Planning processes

Para 63 Capturing of budget on financial system

Para 73 Monthly revenue and expenditure reports

Para 90 System for expenditure management

Para 91 Approval of expenditure and commitments

Para 93 Payments within prescribed period

Para 186 Annual procurement plan

Para 187 Acquisition management system

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 Para 194 Strategic procurement

4.2.2 Provincial Treasury Instructions are those Instructions issued by a

Provincial Treasury in terms of the PFMA for and in respect of provincial
institutions of a province.

Provincial Departments may customise this section to add Provincial Treasury

Instructions

4.2.3 General Recognised Accounting Practice (GRAP) are standards issued by

the Accounting Standards Board in terms of the PFMA, to regulate the
reporting and accounting frameworks for municipalities and public entities.

4.2.4 The Modified Cash Standard (MCS) is "GRAP" for departments and any
other entity that claims compliance with the modified cash basis of
accounting. The MCS, as prescribed by the National Treasury: Office of the
Accountant-General, sets out the principles for the recognition, recording,
measurement, presentation and disclosure of information required in terms
of formats prescribed by the National Treasury.

It is important to note that although Institutions adhere to different reporting frameworks, i.e.
the Standards of GRAP and the MCS, these Instructions/Policies and SOPs serves as a
foundation of good practices to aid in compliance with either framework.
[Entity to complete this section for their own reference(s), if any GRAP standard(s), are to
be noted here]

4.3 Other Instructions / Policies and SOPs to be read with this SOP

4.3.1 General Concepts, Definitions and Principles

4.3.2 Payments Processing SOP

4.3.3 Accounting and Month-end Procedures SOP.

4.3.4 YIM Reporting SOP

4.3.5 Financial Misconduct SOP

4.3.6 Public Service and Administration (DPSA) financial handbook.

4.3.7 DPSA Resolutions.

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 4.3.8 SMS handbook.

4.3.9 Ministerial Handbook.

4.3.10 Chief Financial Officers Handbook

Detailed Systems and/or business processes, relating to these Standard Operating

Procedures, are to be developed by <Insert name of Institution> to supplement the
high level processes contained in this SOP

5. Capacity development

5.1 Capacity development is covered in detail in General Concepts, Definitions and

Principles, and should be read in conjunction with these specific Instructions /
Policies and Standard Operating Procedures.

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6 Institutional Instructions / Policies: Training and development

6.1 The CFO or his/her delegates must:

6.1.1 Ensure that training and development expenditure forms part of goods and
services envisaged to be procured over the 5 year period linked to the
Institutions strategic plan.

6.1.2 Include provision for such expenditure in the Annual operational plan that is
developed and implemented by the CFO (delegated to by the Accounting
Officer / Accounting Authority) of the Institution for the Supply Chain
Management unit.

6.1.3 Submit the procurement plan for the financial year to the relevant treasury
by 30 April of each year containing all planned procurement in a format and
according to threshold values as may be prescribed by National Treasury
Instruction.

6.1.4 Ensure that training and development expenditure is allocated as per the
appropriation in the budget and the correct items are used.

6.1.5 Ensure that the delegation of authority specify the responsibilities and
authorities responsible for the authorisation and management of this type
of expenditure.

6.1.6 Ensure that the delegation of authority and specimen signatures regarding
Training and development expenditure is communicated throughout the
Institution.

6.1.7 The Training and development budget for the institution is captured on its
financial system as per the Standard Chart of Accounts (SCOA). The
financial system must be configured to be able to display the available
budget for each line item of expenditure to assist in the decision-making
process of delegated officials when considering the purchase of Training
and development items. The system must be designed to block the
approval of a payment should there be insufficient budget available for an
item of expenditure.

6.1.8 Ensure the application of control measures regarding segregation of duties

in that the person capturing payments and/or orders must not be the same
TRAINING AND DEVELOPMENT
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 person authorising such payments and/or orders. This would apply to both
the supply chain management system and the accounting system.

6.2 Other employees (including budget managers) must:

6.2.1 Ensure that training and development expenditure is incurred only in

connection with the activities of the Institution, or division within the
Institution, that directly relates to the achievement of its objectives.

6.2.2 Ensure that the job descriptions and measurable outputs of the
performance contracts of all relevant delegated officials are aligned to the
processes of this SOP.

6.2.3 Ensure that requisitions for training and development and approval of
orders are only approved by delegated officials if the items have been
included in the annual procurement plan.

6.2.4 Ensure that the acquisition processes for training and development follows
the Supply Chain Management Process (refer to SCM Policy)

7 Annexures

7.1 Annexure 1: Goods and services: Training and development flowchart

7.2 Annexure 2: Process and procedures for Training and development

7.3 Annexure 3: Internal control checklist for Goods and services: Training and
development

7.4 Annexure 4: Risk analysis and proposed internal control measures

8 Delegations of authority

8.1 A copy of the delegation framework in relation to training and development is

attached;

Or <Entity to decide on this>

8.2 Role-players involved in training and development should strictly adhere to the
Institutional delegations of authority.

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9 Non-compliance

9.1 Departure from the provisions of these Instructions / Policies and SOPs, without
prior written authorisation by the AO / AA, will be treated as financial misconduct
and will result in appropriate disciplinary or criminal procedures being considered
and instituted against the relevant person where deemed necessary. Refer to the
SOP on Financial Misconduct for additional information.

10 Monitoring, oversight and maintenance

10.1 To ensure these Instructions / Policies and SOPs operate efficiently, users must
report any required changes to their superiors. Whenever something changes in
the payments processing areas and / or environment, it should be reviewed for
appropriateness. These Instructions / Policies and SOPs must be reviewed
periodically as set out in General Concepts, Definitions and Principles.

11 Conclusion

11.1 The content of these Instructions / Policies and SOPs must be brought to the
attention of all officials within the Institution.

11.2 These Instructions / Policies and SOPs are effective from [insert date].

12 Contact person

12.1 For any queries related to these Instructions and Standard Operating Procedures,
contact [Persons name].

13 Approval

________________ _____________

Accounting Officer Date

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 Annexure 1: Training and development flowchart

General overview of Goods/ Services - Training and development

SCM process - record

Demand Management invoice on the system Reporting
Process Identification of SCM/Finance monthly and
a need CFO
Quarterly and annual report on
invoices and commitments
Treasury regulations
requirements:
Budget process and capturing
Verification of invoice and Annual operational plan
of Budget against Vote on
payment preparation by end Annual procurement plan
financial system
user Contracts awarded over
threshold value
Risk assessments
Requisition by user, Internal control schedules
Acquisition mgt and Sourcing Transaction checklists
- approval of Order by Prog/ Approval by Prog. /
Budget manager Budget Manager and
return to SCM for
submission to finance for
payment

Services rendered/Goods
received - Invoice Received
and Certification by Prog
manager

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 Annexure 2: process and procedures for training and development

Action Template Responsibility

reference

Demand Management process - Identification of the need for Training and development expenditure
1. The budget division of the institution must collate and consolidate the needs of all the
Budget office
operational divisions of the Institution that would require Training and development. and
To give effect to the provisions of the Constitution, Act No 108 of 1996, Institutional Instruction Programme
Managers
and legislation regulating Human Resources Development, the Institution must create
opportunities for all employees to acquire the knowledge and skills necessary to perform the CFO
duties assigned to them and improve their career prospects. The mandate of this Institutional
SCM
Instruction is derived from the following:
o Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997);

o Constitution, RSA, 1996 (Act No. 108 of 1996);

o Employment Equity Act, 1998 (Act No. 55 of 1998);

o Employee Performance Management System of the Institution;

o Government Gazette No 20865 of 7 February 2000;

o Human Resources Development Strategy of the Institution;

o Human Resources Development Strategy of the Public Service; (Vision 2015)

o National Skills Development Strategy for South Africa, (2010-2025)

o Policy on compilation of job description of the Institution;

o Public Finance Management Act, 1999 (Act No 1 of 1999)

o Public Service Regulations of 2001;

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Action Template Responsibility
reference
o Public Service Central Bargaining Chamber (PSCBC) Resolution No 14 of 2002;

o PSCBC Resolution No 1 of 2003;

o Performance Management and Development System for members of the

o Senior Management Service (SMS), 2002;

o Skills Development Act, 1998 (Act No. 97 of 1998);

o Skills Development Levies Act, 1999 (Act No.9 of 1999);

o White Paper on Public Service Training and Education, 1996; and

o White Paper on the Transformation of the Public Service, 1997.

To derive maximum benefits from all the skills development interventions, an assessment must
be conducted to determine competencies (skills and knowledge) that employees and the
Institution would need. It should be determined, at the same time, if the competencies the
Institution needs are scarce, abundant or less critical.
An assortment of training interventions must be planned and implemented annually to fill the
identified gaps. To manage the effectiveness of training, it should be evaluated against the
targets set in the National Skills Development Strategy of the Department of Higher Education
and Training, Human Resource Development Strategy Vision 2015 of the Public Service and
the Human Resource Development Strategy of the Institution. Training interventions include
ABET/GET, FET, HET, learnerships, short courses and conferences.
All employees, including those appointed on a fixed term contract subject to the terms and
conditions thereof, must have equal access to appropriate and relevant training opportunities
and effective career development.
The Institution must in terms of Government Gazette No 20865 of 7 February 2000, develop
and submit Workplace Skills Plans (WSP) annually. The WSP will document all planned
training and development interventions for a financial year. The WSP will include the

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Action Template Responsibility
reference
following:
o Strategic vision and mission of the Institution.

o Key education, training and development priorities and targets.

o Linkage with affirmative measures and the Employment Equity Plan.

o Linkage with personal development plans of all employees.

The Director-General must perform the following:

o Identify the training and development needs of the Institution and compiling training plans to
address training priorities;
o Align needs-directed training programmes with the strategic objectives of the institution;

o Ensure that sufficient funds are available for the training of the institutions employees at all
levels;
o Ensure that funds are available for developmental programmes.

The Internal Training and Development Committee (ITDC) must oversee the quality of training
interventions implemented in the Institution and recommend the approval of the human
resources development policies, reports and strategies to the EXCO of the Institution.

The directorate: Employee Development and Performance Management must:

o Facilitate the development of competency profiles;

o Facilitate the assessment of competencies;

o Consolidate a WSP for the department;

o Organize the transversal courses based on the WSP;

o Compile Quarterly and Annual Training Reports;

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Action Template Responsibility
reference
o Perform the administrative functions for internal study aid;

o Keep a database of employees and records of training courses arranged for them;

o Monitor and evaluate the effectiveness of training programmes, and assist respective line
managers with the selection of service providers and co-ordination of training courses
o Ensure that all employees have fair access to training opportunities.

o Advise on all learning and development outcomes within the Department.

Management must provide resources for training or skills development equally and fairly to all
employees. They must also manage the performance of their employees by nominating them
for courses that are relevant to improve their performance and career prospects.
The primary responsibility for an individuals training and development lies with the employee
her/himself. The employee will recognize her/his role in self-improvement through continued
training and development. Employees must accept the responsibility to utilize all measures and
channels available to them to address their training and developmental needs including taking
initiatives in self-study and training whilst in the employment of the institution.
Employees (bursars) receiving financial assistance in terms of the bursary scheme for
attendance of short courses must enter into a contractual agreement with the Department.
The Skills Development Facilitator must:

o Develop the WSP which complies with the guidelines provided by the applicable SETA.

o Submit the Workplace Skills Plan to the Applicable SETA.

o Advise the Department on the implementation of the Workplace Skills Plan.

o Identify strategic opportunities for learnership, and the promotion of national skills
development priorities.
o Develop structures and systems for effective skills planning.

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Action Template Responsibility
reference
o Facilitate and coordinate Internal Training and Development Committee meetings.

o Assist the Department in completing key reporting documentation as required by the

applicable SETA and the Institution.
o Assist the Institution with the drafting of an Annual Monitoring Report against the approved
WSP.
o Advise the Institution on quality assurance requirements as set by the applicable SETA and
those determined by the Institution.
o Facilitate the implementation of quality assurance measures.

o Serve as a contact between the Department and Applicable SETA.

Training and development must form part of the Supply Chain Management strategy for the
current year and the medium term expenditure period.

Training and development must then form part of the Annual Operational plan of the Institution
which includes the method, timelines, estimated value, funding and responsible office to
execute the procurement.

The spend for Training and development must be specified in the annual procurement plan in a
format and according to threshold values which will determine the procurement strategy.

The detailed processes are contained in the Demand Management SOP

The budget for Training and development expenditure must be allocated and captured on the
accounting system to the correct, fund, objective, responsibility and item as appropriated in the
appropriation act.
The delegation of authority and specimen signatures of the delegated officials that may
approve Training and development expenditure must be communicated throughout the
Institution.
Note: The system should be configured with the appropriate levels of approval for all delegated

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Action Template Responsibility
reference
officials thus an official that does not meet the required level of authority cannot approve
certain transactions- [check if new system has this functionality
The relevant Programme/Budget Manager must control spending on Training and development
expenditure to ensure that no overspending occurs.
The relevant Programme/Budget Manager must monitor the spending trends on Training and
development against the procurement plan and ensure that public funds are not spent
inappropriately or misused in any way.
The procurement plan must be reviewed on a quarterly basis against the budget of the
Institution and the Annual Performance Plan.
Supply Chain Management Reports must be submitted by the accounting officer in a manner
and format and at intervals as may be prescribed by NT instruction.

Budget process and Capturing of Budget on financial system

2. The Budget for the institution must be captured on its financial system as per the 8 segments
CFO
of the Standard Chart of Accounts (SCOA).
HR
The financial system must be configured to be able to display the available budget for each
line item of expenditure to assist in the decision-making process of delegated officials when Programme
considering the purchase of Training and development. managers

The system must be configured to block the approval of a payment should there be insufficient
budget available for an item of expenditure.
The job descriptions and measurable outputs of the performance contracts of all relevant
delegated officials must be aligned to the processes of this SOP. For example, payments to
suppliers must be effected within 30 days of receipt of the invoice to prevent non-compliance
with TR 81 from occurring. Therefore the performance contracts of all delegated officials
involved in the payment process must reflect that the requirement that the delegated officials
must prevent non-compliance with TR81 from occurring when performing their respective
responsibilities. The job descriptions must also reflect that officials are required to prevent
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Action Template Responsibility
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non-compliance with treasury regulations.
To ensure effective and efficient management of Training and development expenditure
Programme Managers need to discharge the following responsibilities:
o Take responsibility to manage and control funds allocated to them relating to Training
and development expenditure;
o Use funds allocated to them in line with the institutions policies and the relevant
prescripts;
o Compare on a monthly basis their budgeted amount as per the procurement plan to
actual expenditure and report any discrepancies to the CFO; and
o Supply motivations or information as may be required by the CFO relating to Training
and development.

Requisitions and Orders

3. Approval of Requisition
Delegated
End user completes a request for goods/ services Official

The Programme manager must ensure that a need for the goods/ service exists and a budget
is available before incurring Training and development expenditure. Programme
manager
The relevant Programme Manager verifies that the expenditure is relevant and checks
supporting documents to ensure that SCM processes and other prescripts are adhered to
(necessary approvals have been obtained from the applicable Departmental Committee). SCM

The relevant Programme manager must also check against system reports if funds are
available at SCOA item description level before approving the requisition.

Acquisition Management would now occur - SCM involved in sourcing of Goods/ services
this is dependent on the value of the spending in line with the annual procurement plan.
Please refer to SCM SOP.
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Action Template Responsibility
reference
The processes relating to the acquisition of Goods and Services are addressed in the Supply
Chain Management and Sourcing Strategy SOP.

4. Approval of order
Delegated
No goods/ services may be procured without the issuing of an official order Official

Orders must only be processed on condition that

Programme
o funds are available under the correct item SCOA description; manager
o banking details of the supplier have been verified and the order has been authorised on Delegated
the relevant financial/procurement system; and official
o all relevant approvals and documentation are attached to the procurement requisition Data Capturer

The system prints the following when the order is authorised at the Acquisition stage End user /
Budget
o The order (this is sent to the external supplier) manager

o The receipt (this is signed by the end user when the goods and services are received)

o The commitment (which is sent via interface to the accounting system)

The receipt must be processed daily on the system to update the accounting records.

The simultaneous receipt is filed in the receipt voucher file in numerical sequence.

Alternatively - a copy of the order with the original invoice is sent to the financial section after
the official at the stores has captured the information electronically
When specialised goods are delivered directly to the end user, the end user must inform
stores, and the goods receiving clerk/ transit official from stores must be present when such

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Action Template Responsibility
reference
deliveries take place.

5. Services are rendered

Services are normally rendered in terms of a contractual agreement between the institution
and the external supplier.
Invoices can be received directly by the end user/ Budget manager either electronically or in
hard copy per hand or the post. The end user must certify that the services have been
rendered.
The invoice must be sent to the delegated official to be date stamped and registered on the
system
A receipt will be generated by the system when the signed invoice received from the end user/
Budget manager invoice is captured.
The following is documented on the Receipt transit official signs receiving goods, second official
- user signs off, third official - data capturer. Fourth official - line manager transit warehouse
(logistics)
6. Receipt of goods and services
Delegated
On arrival of goods ordered, they must be offloaded in the presence of the delegated official official
and the end user in a designated goods receiving area (stores).
The following process must be followed:

o Obtain delivery note from delivery personnel of supplier and compare it to purchase order;

o Check the quantity and descriptions of goods delivered against purchase order and

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Action Template Responsibility
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delivery note;
o Perform superficial test of condition of goods delivered e.g. broken or wet boxes etc.;

o Reject all incorrect goods and identify and mark rejections on both copies delivery note
and purchase order;
o Make list of goods accepted and rejected;

o Ensure that suppliers personnel sign both copies of the delivery note including
amendments;
o Sign delivery note of supplier.

Note: Non-compliance to procedure may lead to Fruitless and wasteful expenditure being
incurred by institution
7. Receipt of services
Delegated
When services are rendered, the end user/ Programme manager must perform an Official/
assessment of the services rendered by the supplier and rate the following: Programme
o Whether the services rendered are in accordance with the contractual terms of the Manager
agreement.
o The level of co-operation received from the supplier

o The delivery of the service in accordance with the specified time frames

o The quality and performance of the supplier, and

o An assessment whether the supplier should be used in future by the Institution.

8. SCM process invoice received relating to goods and/or services
SCM Head
The Head of SCM must appoint an official within the SCM unit that will be responsible to End user
receive all invoices.
Delegated

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Action Template Responsibility
reference
Where the institution has multi-locations a delegated official (Stores Controller) must be official
appointed at each location.
CFO
A dedicated email address must be set-up to receive all emailed invoices which must be
Programme/
accessed by the delegated official at SCM.
Budget
All officials must be informed of the function of the delegated official responsible for receiving manager
all invoices.
All invoices that are hand delivered or received by the post must be given by the end user to
the delegated official at SCM.
All invoices received by the delegated official must be date stamped in order to enable the
institution to evaluate its compliance with the thirty (30) days payment requirement.
Invoice received through email must be printed and date stamped.

The delegated official must record the invoice in the invoice register (electronic/ manual
register) upon receipt of the invoice.

The delegated official must as a minimum check the invoice to ensure that:

o it is in the name of the institution

o That it is a valid tax invoice not copy tax invoice/ pro forma invoice not accepted if
service has been rendered
o The date of the invoice

o The description of the goods supplied / services rendered corresponds to the

purchase order and delivery note
o The bank details of the supplier appears on the invoice

o the invoice casts

The documents must be stamped as Received on the date of receipt of the invoice, name
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Action Template Responsibility
reference
and signature documented
The delegated SCM official must take the invoice and the manual register to the end user.

The end user must sign the register and date the register with the date the invoice was given
to them.

The delegated SCM official must update the electronic register (if applicable) with the date the
invoice was handed to the end user.

The delegated SCM official will make regular enquiries on invoices that have not been
returned by the end user.

The Invoice register must also indicate the authorised signatory for the cost code and amount.
The SCM delegated official must route the invoice through to the delegated programme/
budget manager for authorisation as per delegation.

The authorising signature on the invoice must correspond with the authorised signature
appearing on the specimen register, as per the delegation for the certification of invoices.

The delegated SCM official must increase the frequency of the enquiries if the 30 days period
is drawing close and the invoice has not been returned by the end user.

When the invoice is returned to SCM, the delegated official must check each invoice versus
covering advice and register and confirm that all the invoices are received.

If the invoice is incorrect for any reason, the delegated SCM official may via email inform the
supplier. The delegated SCM official must cancel the invoice from the invoice register, state
the reason on the register and keep the email to the supplier as evidence.

The delegated SCM official must take the invoices with the supporting documents to the
Finance unit.
The delegated SCM official must update the electronic register with the relevant information.

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Action Template Responsibility
reference
Note: Risk of Non-compliance to PFMA and TRs if not adhered to
The delegations of authority must be communicated throughout the institution
Timelines need to be defined for all the flow of documents between the various officials these
need to be linked to their performance contracts
The 30 day period equates to 21 working days

9. Verification of invoice by end user and payment preparation

End user
When the end user receives the invoice from SCM he/she must sign the register and record
the date the invoice was given to them.
The end user must be satisfied with the condition of the goods received.

The end user must check the following:

o Invoice agrees to the order or the signed contractual agreement (where applicable),
purchase order, and goods received voucher/note;
o The goods or services have been received /delivered.

o Where the end users good were received by the institutions receiving staff, the end
user must obtain a copy of the GRN and ensure that the correct goods were received
and they were received in good condition.
o The order number is included in the invoice and agrees to the original order number;

o It is for the goods and/or services actually ordered and received (item description);

o The date of the invoice relates to the current or prior period;

o The amount of the invoice agrees to the amount per the purchase order and/or
quotation, and goods received voucher/note; and

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Action Template Responsibility
reference
o cast and cross cast all valid invoices for accuracy

Risk - if not performed correctly could lead to Fruitless and Wasteful expenditure

The end user must attach the documents relating to the transaction (requisition, quotations,
purchase order(s), contracts where applicable)

The invoice must be signed/stamped by the end user as an indication that it has been
correctly verified, or;
Risk if performed incorrectly it becomes the catalyst for incurring unauthorised expenditure

The end user may prepare the payment advice. The end user must include all required
payment details and in the case of an Institution the SCOA codes.

The end user must sign the payment advice as preparer.

The end user then gives the invoice with supporting documents to the Programme/Budget
Manager for authorisation.

7. Approval by the Programme/Budget Manager Programme/

Once the Programme/Budget Manager receives the invoice and supporting documents from Budget
manager
the end user he/she must determine whether the payment can be approved.

The Programme/Budget Manager must ensure that the amount of the invoice is within the
amount they are delegated to approve per the financial delegations.

All discrepancies leading to payments being declined must be sent back to the relevant
division for correction, reviewed and new authorisation must be obtained after corrections
were made.

All discrepancies must be followed up with service provider until they are resolved before
invoices are paid time frames

The Programme/Budget Manager must after verifying the invoices, approve the payment if the
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Action Template Responsibility
reference
amount is within their financial delegations
Where the amount is outside their delegated amount, the payment must be referred to the
relevant delegated official for approval.
The approval should be indicated by evidence of a signature on the invoice; or if a payment
advice has been prepared then the payment advice should be signed.
Programme/Budget managers should ensure that budget is available before acquisitions of
goods and services and must declare the availability of funds on the payment.
Payments should always be made to the correct allocations and not to another item where
budget is available.
The approved invoice must be returned to the end user.

The end user returns the approved invoice with the supporting documents to the delegated
SCM official to be forwarded to the Finance section for payment.
Monitoring
8. CFO
Transaction checklists must be implemented to record all actions to be performed from the
initiation of a request for Training and development to the final authorisation for payment.

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 Annexure 3: checklist for compliance: training and development

COMPLIANCE CHECKLIST RESPONSIBLE REMARK /

REMEDIAL
ACTION
Demand Management
1. Is the Training and development expenditure required Programme
to support the strategic and operational commitments manager
of the institution?
2. Is the Training and development expense part of the Programme
SCM strategy for goods and services (Training and manager
development) expenditure in line with the spend for
the current financial year and the medium term
expenditure period?
3. Is this expenditure on Training and development in Programme
line with the Annual Operational plan in relation to: manager
The method of procurement;

Timelines to execute the procurement;

Estimated value (including all applicable

taxes);

Confirmation that funds are available; and

The responsible office or regional office?

Budget process and capturing of budget on system

4. Has the budget for Training and development Budget section
expenditure been allocated and captured on the
accounting system to the correct, fund, objective,
responsibility and item as appropriated in the
appropriation act?
5. Has the budget for Training and development Budget section
expenditure been allocated centrally for the institution
or allocated to each individual cost centre?
6. Has the delegation of authority for approval of this CFO
expenditure been verified and confirmed?
7. Does the system block the approval of expenditure CFO
should there be insufficient funds available?
8. Does the programme manager compare actual spend Programme
against the budget and report any discrepancies to manager
the CFO?
Approval of requisitions and orders for Training and development
9. Has the programme manager checked the following Programme
relating to the expenditure before approving the manager
request in accordance with the purpose of the vote;
within the Institutions budget provision for the
item (funds are available) and will not result in
unauthorised, irregular and fruitless and
wasteful expenditure;

representing value for money, and the

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COMPLIANCE CHECKLIST RESPONSIBLE REMARK /
REMEDIAL
ACTION
services to be obtained is of the required
quality, quantity, and price; and

within any limitations, and accordance with

any conditions, attached to his/ her delegation
of authority?

10. Were the following monitoring of controls performed Finance officials

for the capturing of orders to ensure that:
all transactions are promptly recorded at the CFO
correct amount and in the correct accounting
period;

all transactions are recorded appropriately in

accordance with the SCOA line item of
expenditure and that funds are available for
the Training and development line item
(detection of unauthorised expenditure); and

commitment registers are maintained and

updated on a regular basis.

Goods delivered/ services rendered

11. When services are rendered, was the invoice sent to End user
SCM to be date stamped and an order generated to Finance official
be registered on the system?
12. Was the invoice stamped with the date of the receipt? Finance official
13. Was the quantity and description of goods delivered End user
compared against the purchase order and delivery
note?
14. Was the delivery note signed in acceptance of goods End user
and/or services?
15. Does the invoice amount agree to the order amount? End user
Where this is not the case, were reasons provided?
16. Has the invoice been recorded in the Finance official
electronic/manual register?
17. Has the end user signed the register to acknowledge End user
receipt?
18. Were the following monitoring controls implemented Manager
to assess the reliability of suppliers to ensure that: Finance
There was compliance with delivery periods,

The quantity and quality of goods supplied or

services rendered was satisfactory, and

Actions were taken against under or non-

performing suppliers?

SCM process invoices received

19. Are all invoices date stamped by the delegated SCM SCM official
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COMPLIANCE CHECKLIST RESPONSIBLE REMARK /
REMEDIAL
ACTION
official when received and recorded in the electronic
or manual register?
20. Does the SCM official perform a check on the details SCM official
of the invoice to determine the validity of the invoice?
21. Does the invoice amount agree to the order amount? SCM official
Where this is not the case, were there reasons
provided?
22. Has the invoice been taken to the delegated program SCM official
manager for authorisation?
23. Has the SCM official followed up on approved SCM official
invoices from the programme manager that has not
been returned to the SCM official?
24. Has the SCM official taken the invoices with the SCM official
supporting documents to the finance unit for
payment?
Verification of invoice by end user and payment preparation
25. Has the end user signed the invoice register that the End user
goods have been delivered and/or services rendered?
26. Does the invoice agrees to the order or the signed End user
contract agreement (where applicable), purchase order,
and goods received voucher/note;
27. Is the order number included on the invoice and agrees End user
to the original order number;
28. Is the invoice correct in term of amount, address, End user
financial year and allocations?
29. Are the relevant supporting documents attached to End user
the invoice/payment advice?
30. Is the payment stamped and signed after verification? End user
Verification by end Programme/Budget Manager
31. Is budget available for the particular payment on the Programme
correct item? manager
32. Is the amount of the invoice within the amount Programme
delegated to approve as per the financial delegations? manager
33. Is the payment and supporting documents correct in Programme
terms of amount, order, goods/services delivered, manager
dates and allocations?
34. Are all the relevant supporting documents attached to Programme
the payment? manager
35. Is the payment authorised by the Programme/Budget Programme
manager? manager

Monitoring
36. Have transaction checklists been implemented as Finance officials
prescribed by Treasury instruction which records all
actions to be performed from the initiation of a request
for Training and development to the final authorisation
of a payment?

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 Annexure 4: risk analysis and proposed internal control measures: training and development

* For the purposes of this Table, the following abbreviations have the following meanings:
TYPE OF CONTROL MEASURE
TYPE OF RISK PROBABILTY
Acc = Access
Accu = Accuracy Pro = Procedural
Auth = Authorisation L = Low Rep = Reporting
Com = Completeness M = Medium Seg = Segregation of Duties
Val = Validity H = High Tr = Training
RISK CONTROL MEASURES
NO.
DESCRIPTION TYPE IMPACT PROB TYPE DESCRIPTION
Unauthorised
1 H Monitoring by Programme Manager and CFO
expenditure
Allocation of item to incorrect program
Unauthorised
2 Exceeding allocated budget of program H Budget blocking on system
expenditure
Receipt of goods and services that do not meet Fruitless or
3 specifications or substandard goods/ services wasteful H Monitoring by SCM
rendered expenditure

Non-payment of invoices within 30 days of Non-

4 H Monitoring by SCM management and CFO
receipt compliance

Fruitless or
wasteful
expenditure/ H
Service level agreement and penalties
5 Non-performance by Service Provider Service
Monitoring by The Directorate
delivery
objectives not
met.