1. PRESENTATION ON 30 DAY PAYMENT OF INVOICES
17 SEPTEMBER 2013

2. PROCESSES ALREADY PUT IN PLACE TO MONITOR PAYMENTS AND TO ENSURE COMPLIANCE TO TREASURY REGULATIONS (TR8.2.3)
Payments not made within 30 days are monitored on a monthly basis
Head Office and Regions are requested to indicate payments not made within 30 days and to provide reasons
Monthly finance meetings were also introduced to assist in the monitoring of expenditure and ensure that payments are made after goods and services have been delivered.
Monthly finance meetings are held by each Head Office Directorate as well as each management area / centre
Payments are part of the agenda for the finance meeting
The turnaround for the processing of sundry payments was first set as seven days within the receipt of payment documentation
As from 2012/13 the turnaround for the processing of sundry payments has been reduced to 48 hours within the receipt of payment documentation
In case BAS is extremely slow at DCS, arrangements are made for officials to capture payments at SITA to ensure that payments are processed on time

3. CHALLENGES ON THE PROCESSING OF PAYMENTS
System related problems
BAS not working
Extreme slowness of BAS
LOGIS is most of the time very slow
Month-end closure of LOGIS – for 2 working days in a month (LOGIS is down)
Financial year-end closure of LOGIS - for 10 working days after year-end (LOGIS is down)
Calls are logged with National Treasury when system related problems are encountered
National Treasury does not always have a solution for the slowness of BAS and LOGIS

4. REASONS FOR PAYMENTS MADE AFTER 30 DAYS
In April and May 2013, the changes from SCOA V3 to SCOA V4 contributed a lot in delaying payments, which among other included the following:
Recapturing of commitments and orders on LOGIS due to conversion from SCOA V3 to SCOA V4 which could only be done from 09 April 2013
Chief users using SCOA V3 codes instead of SCOA V4 codes
Payments were on a resubmission queue due to LOGIS system closure for 2012/2013 financial year
Capturing invoice date instead of invoice receipt date
Delays in submission of suppliers’ bank details
Orders not delivered in full but the invoices charged were for the full price
Incorrect supplier numbers provided with respect to injury on duty payments
LOGIS system was closed as from 27 March 2013 for the year-end procedures and was only available on the 09 April 2013

5. STATUS OF PAYMENTS MADE AFTER 30 DAYS – 2013/14 FINANCIAL YEAR
MONTH
TOTAL NUMBER OF PAYMENTS
NUMBER OF PAYMENTS MADE AFTER 30 DAYS
OVERALL PERCENTAGE
April 2013
3 427
372
10.85%
May 2013
14 742
1 869
12.68%
June 2013
13 571
679
5.00%
July 2013
19 546
675
3.45%
August 2013
14 536
386
2,66%

6. Thank you