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STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESSECTION B – EXPENDITURE MANAGEMENT7. STANDARD OPERATING PROCEDURES FOR EXPENDITURE MANAGEMENTProcedures for the performing of responsibilities and duties of Expenditure Management,provides the staff in the Finance Department with procedures and guidelines on theoperational management aspects of the day to day running of the Finance Department ofa municipality.This Manual is intended to be a practical guide, assisting municipalities to maintain amanagement, accounting and information system that accounts for the expenditure ofthe municipality.Each section of the Procedures Manual indicates the staff involved for that specificsection. Municipalities can adjust the staff members involved, based on their owncircumstances. In assigning different responsibilities to staff members, care must betaken that each procedure is monitored (verified) by a staff member senior to the personperforming the procedure.A staff member senior to the verifier, must review theprocedure/s as indicated in the time-frames. This will reduce the opportunities to allowany person to be in a position to both perpetrate and conceal errors or fraud in thenormal course of the person's duties. It will also ensure that management directives arecarried out.When monitoring/reviewing procedures performed by staff members, sufficient evidencemust be available to confirm that specific procedures were performed. This evidencecan then be used for performance monitoring of staff members.The level of involvement of each official is indicated at each procedure and aresummarised as form DailyPerform WeeklyPerform MonthlyPerform QuarterlyPerform Bi-AnnuallyPerform AnnuallyVerify DailyVerify WeeklyVerify MonthlyVerify QuarterlyVerify Bi-AnnuallyVerify AnnuallyReview DailyReview WeeklyReview MonthlyReview QuarterlyReview Bi-AnnuallyReview AnnuallyPage 295May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1PROCESS FLOW CHARTSHigh-level overview of business processes covered in this section:Page 296May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.1PlanningAn overview of procedures for Planning Activities. Detailed standard operating procedures are set out in section 7.2.Page 297May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.2SCM UnitAn overview of procedures to establish a Supply Chain Management Unit. Detailedstandard operating procedures are set out in section 7.2.4.Page 298May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.3Registration on SCM DatabaseAn overview of procedures to register Prospective Service Providers on the SCMDatabase and Web Based Central Supplier Database. Detailed standard operatingprocedures are set out in section 7.2.5.Page 299May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.4ProcurementAn overview of Supply Chain Management Procedures for procurement of goodsand services. Detailed standard operating procedures are set out in section 7.3.Page 300May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.5Petty CashAn overview of Petty Cash procedures. Detailed standard operating procedures areset out in section 7.3.1.Page 301May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.6Recording and Payment of InvoicesAn overview of procedures for the Recording and Payment of Invoices. Detailedstandard operating procedures are set out in section 7.4.Page 302May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.7Salary RunAn overview of procedures to perform the Salary Run. Detailed standard operatingprocedures are set out in section 7.5.Page 303May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.8Resignation / Termination of ServicesAn overview of procedures to perform during the Resignation / Termination ofServices. Detailed standard operating procedures are set out in section 7.5.3.Page 304May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.9Purchase of InventoryAn overview of procedures to purchase Inventory. Detailed standard operating procedures are set out in section 7.6.1.Page 305May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.1.10Receiving and Distribution of InventoryAn overview of procedures to distribute Inventory. Detailed standard operating procedures are set out in section 7.6.2.Page 306May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.2PLANNINGThe accounting officer of a municipality must take all reasonable steps, in terms ofsection 65(2) of the Municipal Finance Management Act (Act 56 of 2003), to ensurethat:a)The municipality has and maintains an effective system of expenditurecontrol, including procedures for the approval, authorisation, withdrawal andpayment of funds;b)The municipality has and maintains a management, accounting andinformation system which —(i) recognises expenditure when it is incurred;(ii) accounts for creditors of the municipality; and(iii) accounts for payments made by the municipality;c)The municipality’s available working capital is managed effectively andeconomically in terms of the prescribed cash management and investmentframework;d)The municipality’s supply chain management policy is implemented in a waythat is fair, equitable, transparent, competitive and cost-effective;Staff members involved in : ExpenditureManager: Strategic ServicesManager: Supply Chain ManagementManager: Project Management UnitHead: Assets and ExpenditureHead: Budget and TreasuryChief Financial OfficerMunicipal ManagerHeads of Departments within MunicipalityFinance Committee (can also be Executive Committee)CouncilPage 307May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESNo.1ProcedureFollow the procedures, as set out in Chapter5 of the Municipal Systems Act (Act of 2000)to develop, implement and approve anIntegrated Development Plan (IDP).2Review the Integrated Develop Plan (IDP)and previous year’s actual performanceagainst set targets.345Obtain inputs from: Ward Committees Public (via Public IDP Meetings) Public Sector (via IDP Forum)Capture projects in the Planning Module ofthe financial system.Send draft list of projects to OtherDepartments within Municipality for inputs.Hold meetings within the Departments toprioritise projects.CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHeads of DepartmentsStrategic ManagerProcedures for performing Planning Activities (Revised IDP and Annual Budget)Head: Assets and AN/AApproved IDPN/AN/AAttendanceRegister andMinutes APAPAVAPAPARARAMSAS 34GRAPStandardPage 308May 2016
No.6ProcedurePrioritise projects, based on: Master Plans; Spatial Development Framework; Housing Implementation Plans; Asset Replacement Policy; Statutory Requirements; Infrastructure Plans identified in prioryears; Duration of project; Cost effectiveness of project; Indicate if project is for a new/renewalasset; Inputs received during IDP process.This procedure is performed in the PlanningModule of the financial system.78Identify funding sources of prioritisedprojects. (Make use of Funding segment ofmSCOA)Allocate all segments of mSCOA to allprioritised projects.CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHeads of DepartmentsStrategic ManagerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR VAN/AN/APAVAN/APAVAN/AN/AmSCOAItemChartsPage 309May 2016
No.91011ProcedureSend list of prioritised projects, with alignedmSCOA segments, to Strategic Manager.Compile list of all prioritised projects. Thislist should be an extract from the PlanningModule of the financial system.Hold Executive Council Committee ance CommitteeMunicipal ManagerChief Financial OfficerHeads of DepartmentsStrategic ManagerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR MUNICIPALITIESGRAPStandardKPIMinutes ofMeetingFinalise projects based on: Available Funding; Master Plans; Spatial Development Framework; Housing Implementation Plans; Service Delivery Backlogs; Asset Replacement Policy; Statutory Requirements; Maintenance Plans; Strategic Objectives; Future Operational Cost and Revenue ofProject; Municipal tariffs implications; and Duration of project.PAVAPage 310May 2016
No.1314ProcedureIndicate on Final Project List: Strategic Objectives; Duration of project; Future Operational Cost and Revenue ofProject; Estimate monthly expenditure of project;and mSCOA Project Number.Prepare the draft Revised IDP.1617Prepare the draft Budget, by using allsegments of mSCOA. Add mSCOA ProjectNumber to GUID of Project Segment. Allbudget schedules should be generated bythe financial system.Prepare the draft Service Delivery andBudget Implementation Plan (SDBIP). AddmSCOA Project Number to each project toensure a link between the IDP, the Budgetand the SDBIP.Evaluate the draft Budget against approvedBenchmarking ratios and norms.CouncilFinance CommitteeLegislationPAPA15Municipal ManagerChief Financial OfficerHeads of DepartmentsStrategic ManagerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR MUNICIPALITIESVAVAVARAMSAS inal Project ListN/AN/ARevised IDPKPIPARAVAVAN/AN/ADraft BudgetPAPARAVAVAN/AN/ADraft SDBIPPAPARAVAVAFinancial Ratiosand NormsPage 311May 2016
No.181920ProcedureSubmit the draft IDP, the draft Budget andthe draft SDBIP to Council and followbudget procedures as set out in the MFMA,Budget Regulations and Planning andPerformance Management Regulations.Council approve the IDP and the AnnualBudget.Council approve the SDBIP.CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHeads of DepartmentsStrategic ManagerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR APAN/AN/ABudget ProcessDocumentsIDP /Annual N/AN/ALegislationPAVAPA2122Upload budget on the National TreasuryLocal Government Database (LG Database)portal by using data extraction from thesegments of mSCOA.Publish the IDP, the Budget and the SDBIPon municipal website.23Implement the SDBIP.24Start with Supply Chain ManagementProcedures as per monthly APStandardKPIDataPage 312May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESProcedures for performing Planning Activities (Revised IDP and Annual Budget) accepted by:EmployeeSignatureDateAEHAESMCFOMMProcedures for performing Planning Activities (Revised IDP and Annual Budget) approved by:SignatureDateChief Financial OfficerMunicipal ManagerPage 313May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESNo.12ProcedureCapture Operating Expenditure of approved OperatingBudget on the Financial System. This procedure requiresseamless integration from the Planning Module of thefinancial system.Perform a test run, to ensure that all segments of mSCOAhave been captured correctly.3Investigate and correct any differences found after the testrun.4Perform a Final Budget Run on the financial system.5File the Final Budget Run for future reference.6Lock Operating Budget on the Financial System.7Issue signed Quality Certificate as prescribed in theMunicipal Budget and Reporting Regulations.8Follow normal Supply Chain Management procedures.Municipal ManagerChief Financial OfficerHead: Assets and ExpenditureProcedures for Capturing of Approved Operating BudgetHead: Budget and oposedmSCOAItemKPIPARAVAOPEXProjectsApproved OperatingBudget and SystemPrint-outPARAVAOPEXProjectsBudget Test RunPARAVAOPEXProjectsPARAVAOPEXProjectsFinal Budget RunPARAVAOPEXProjectsFinal Budget RunRAVAOPEXProjectsOPEXProjectsOPEXProjectsPAPage 314May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESProcedures for capturing of approved Operating Budget accepted rocedures for capturing of approved Operating Budget approved by:Chief Financial OfficerMunicipal ManagerPage 315May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESNo.123ProcedureEach municipality (and each municipal entity) must have andimplement a Supply Chain Management Policy (SCM Policy)which gives effect to the provisions of Chapter 11 of theMFMA.Develop a SCM Policy that is fair, equitable, transparent,competitive and cost-effective and comply with a inmanagement.The SCM Policy must at least cover the following:a) The range of supply chain management processes thatmunicipalities and municipal entities may use, includingtenders, quotations, auctions and other types ofcompetitive bidding;b) when a municipality or municipal entity may or must use aparticular type of process;c) procedures and mechanisms for each type of process;d) procedures and mechanisms for more flexible processeswhere the value of a contract is below a prescribedamount;e) open and transparent pre-qualification processes fortenders or other bids;CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerProcedures for development and implementation of Supply Chain Management PolicyHead: Assets and Expenditure7.2.3LegislationPAVARAPAVARAMFMAS AN/AN/AN/AKPIApprovedSCM PolicyPage 316May 2016
No.Proceduref) competitive bidding processes in which only pre-qualifiedpersons may participate;g) bid documentation, advertising of and invitations forcontracts;h) procedures and mechanisms for—i. the opening, registering and recording of bids in thepresence of interested persons;ii. the evaluation of bids to ensure best value for money;iii. negotiating the final terms of contracts; andiv. the approval of bids;i) screening processes and security clearances forprospective contractors on tenders or other bids above aprescribed value;j) compulsory disclosure of any conflicts of interest’sprospective contractors may have in specific tenders andthe exclusion of such prospective contractors from thosetenders or bids;k) participation in the supply chain management system ofpersons who are not officials of the municipality ormunicipal entity, subject to section 117 of the MFMA;CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR roposedmSCOAItemKPIPage 317May 2016
No.Procedurel) the barring of persons from participating in tendering orother bidding processes, including persons—i. who were convicted for fraud or corruption during thepast five years;ii. who wilfully neglected, reneged on or failed to complywith a government contract during the past five years;oriii. whose tax matters are not cleared by South AfricanRevenue Service;m) measures for—i. combating fraud, corruption, favouritism and unfair andirregular practices in municipal supply chainmanagement; andii. promoting ethics of officials and other role playersinvolved in municipal supply chain management;CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR roposedmSCOAItemKPIPage 318May 2016
No.Proceduren) the invalidation of recommendations or decisions that wereunlawfully or improperly made, taken or influenced,including recommendations or decisions that were made,taken or in any way influenced by—i. councillors in contravention of item 5 or 6 of the Codeof Conduct for Councillors set out in Schedule 1 to theMunicipal Systems Act; orii. municipal officials in contravention of item 4 or 5 ofthe Code of Conduct for Municipal Staff Members setout in Schedule 2 to that Act;o) the procurement of goods and services by municipalities ormunicipal entities through contracts procured by otherorgans of state;p) contract management and dispute settling procedures; andq) the delegation of municipal supply chain managementpowers and duties, including to officials.CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR roposedmSCOAItemN/AN/AKPIMFMAS 112PAVARASCMReg.ApprovedSCM PolicyPage 319May 2016
No.4ProcedureWorkshop the SCM Policy with all stakeholders.5Amend the SCM Policy, if needed.6Approve the SCM Policy.7Implement the SCM Policy in a way that –CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR RAa) gives effect to Section 217 of the Constitution and Part 1 ofChapter 11 and other applicable provisions of the MFMA;b) is fair, equitable, transparent, competitive and costeffective;c) complies with the Regulations and any minimum normsand standards that may be prescribed in terms of section168 of the MFMA;d) is consistent with other applicable legislation;e) does not undermine the objective for uniformity in supplychain management systems between organs of state in allspheres; andf) is consistent with national economic policy concerning thepromotion of investments and the conduct of business withthe public sector.MFMAS 112N/AN/AN/AN/AKPIMinutes ofCouncilMeetingPAPage 320May 2016
No.8ProcedureReview annually the implementation of the SCM Policy.9Ensure that proposed amendments of the SCM Policy complywith the Regulations and Treasury guidelines standardsdetermining standards for municipal supply chainmanagement policies.10Take into account the need for uniformity in supply chainpractices, procedures and forms between all spheres oforgans of state to promote accessibility of supply chainmanagement systems for small businesses.11Submit proposals for the amendment of the SCM Policy toCouncil.CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR pPage 321May 2016
No.12Approve the SCM Policy.Procedure13Implement the SCM Policy.14Report any deviation from the Regulations and Treasuryguideline standards determining standards for municipalsupply chain management policies to the National andProvincial TreasuriesCouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureSTANDARD OPERATING PROCEDURES FOR /AMFMAS 170KPIMinutes ofCouncilMeetingPage 322May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESProcedures for development and implementation of Supply Chain Management Policy accepted by:EmployeeSignatureDateHAECFOMMProcedures for development and implementation of Supply Chain Management Policy approved by:SignatureDateChief Financial OfficerMunicipal ManagerPage 323May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESNo.123ProcedureDetermine the size and responsibilities of aSupply Chain Management Unit (SCM Unit).Establish a SCM Unit.5Appoint staff for the SCM Unit that complywith the Minimum Competency Regulations.6Implement the SCM Policy.7Provide training to officials in SCM Unit.PAFinance ionSubmit the draft organogram to Council forapproval.Approve revised organogram.4Municipal ManagerChief Financial OfficerHead: Assets and ExpenditureProcedures for establishing a Supply Chain Management UnitManager: Supply Chain Management7.2.4PAVAVAPAVDRMRQPAVARAVAMFMAS 119MFMAS portsimplementationSCM PolicyonofPage 324May 2016
No.8ProcedureAll SCM officials must annually submitsigned declarations of all financial interestfor themselves and their immediate familymembers.PACouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureManager: Supply Chain ManagementSTANDARD OPERATING PROCEDURES FOR eItemProposedmSCOAItemN/AN/AKPIPage 325May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESProcedures for establishing a Supply Chain Management Unit accepted rocedures for establishing a Supply Chain Management Unit approved by:Chief Financial OfficerMunicipal ManagerPage 326May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES2ProcedureRequest through newspapers commonlycirculating locally, the municipal websiteand any other appropriate ways, invite toprospective Service Providers of goods orservices to apply for evaluation and cify the criteria for the accreditedprospective Service Providers.3Receive request from prospective ServiceProviders to register.4Send registration documentation to theprospective Service Providers.CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureManager: Supply Chain ManagementNo.1Accountant: Supply Chain ManagementProcedures for registration on Supply Chain Management DatabaseClerk: Supply Chain QRQN/AN/APQVQRQN/AN/AKPIAdvertisementPage 327May 2016
No.5ProcedureReceive the registration documentationwith original supporting documentationfrom the Service Providers.6Verify all supporting documentation withthe relevant institutions, e.g. CIPC, SARSand Central Supplier Database forGovernment.Disallow the listing of any prospectiveService Provider whose name appears onthe National Treasury’s database as aperson prohibited from doing business withthe public sector.78Capture information on the list ofaccredited prospective Service Providers.9Print audit trail of information captured.PQVQCouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureManager: Supply Chain ManagementAccountant: Supply Chain ManagementClerk: Supply Chain ManagementSTANDARD OPERATING PROCEDURES FOR MUNICIPALITIESLegislationRQPQVQRQPQVQPQPQMFMACirc. mentationfrom institutionsAudit TrailPage 328May 2016
No.10ProcedureReview information captured on the SCMDatabase with supporting documentation.11Create a vendor number.12File audit trail, vendor number andsupporting documentation in individual fileof prospective Service Provider.Send vendor number to prospectiveService Provider.Review information on list of accreditedprospective Service Providers on anannual basis.Mark on list of accredited prospectiveService Providers if the Service Provider isActive/Inactive.Send annual confirmation to prospectiveService Provider, indicating status on list ofaccredited prospective Service Providers.13141516CouncilFinance CommitteeMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureManager: Supply Chain ManagementAccountant: Supply Chain ManagementClerk: Supply Chain ManagementSTANDARD OPERATING PROCEDURES FOR KPIVendor NumberProof of annualreviewPage 329May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESProcedures for registration on Supply Chain Management Database accepted by:EmployeeSignatureDateMSCMHAECFOMMProcedures for registration on Supply Chain Management Database approved by:SignatureDateChief Financial OfficerMunicipal ManagerPage 330May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESNo.1ProcedureCFO holds monthly meeting with theManager: Supply Chain Management andHead: Assets and Expenditure to discussexceptions identified during the month.PM2Chief Financial OfficerMunicipal ManagerGRAPLine-ItemProposedmSCOAItemRMCapital /OperatingExpenditureCapital /OperatingExpenditureRMCapital /OperatingExpenditureCapital /OperatingExpenditureNumber of meetingsper yearNumberofoutstanding findingsand findings solvedduring year.Capital /OperatingExpenditureCapital /OperatingExpenditureNumber of pre-auditchecklists per year.LegislationPMPMDetermine corrective action to be taken toprevent or reduce similar exceptions.PM3Head: Assets and ExpenditureManager: Supply Chain Management7.2.6 Procedures for Monthly Meetings (SCM Unit)Submit pre-audit checklist to the CFO as proofthat tasks have been performed and workperformed was verified as correct by relevantofficials.PMPMPMRMGRAPStandardKPIPage 331May 2016
No.4ProcedureSubmit a report on bidders that have abusedthe SCM system, committed fraud or anyother improper conduct or has failed toperform on a previous contract to the CFO, forinvestigation.PMMunicipal ManagerChief Financial OfficerHead: Assets and ExpenditureManager: Supply Chain ManagementSTANDARD OPERATING PROCEDURES FOR e-ItemProposedmSCOAItemKPICapital /OperatingExpenditureCapital /OperatingExpenditureMonthly report onfraud and improperconductPage 332May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESProcedures for Monthly Meetings (SCM Unit) accepted rocedures for Monthly Meetings (Creditors Department) approved by:Chief Financial OfficerMunicipal ManagerPage 333May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES7.3PROCUREMENTThe accounting officer of a municipality must implement an efficient system ofacquisition management, in terms of paragraph 11 of the Municipal Supply ChainManagement Regulations, to ensure that:a)That goods and services are procured by the municipality in accordance withauthorized processes only;b)That expenditure on goods and services is incurred in terms of an approvedbudget in terms of section 15 of the MFMA;c)That the threshold values for the different procurement processes arecomplied with;d)That bid documentation, evaluation and adjudication criteria and the generalconditions of a contract, are in accordance with any applicable legislation; ande)That any Treasury guidelines on acquisition management are properly takeninto account.Staff members involved in l SecretaryLeader Worker (Supervisor)Clerk: Supply Chain ManagementAccountant: Supply Chain ManagementAccountant: ExpenditureManager: Supply Chain ManagementHead: Assets and ExpenditureHeads of other Departments within MunicipalityChief Financial OfficerMunicipal ManagerPage 334May 2016
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIESPD2PDVMMunicipal ManagerChief Financial OfficerHeads of DepartmentsHead: Assets and ExpenditureAccountant: ExpenditureRMManager: Supply Chain ManagementProcedurePetty cash purchases mayonly be made in accordancewith the Petty Cash Policy ofthe municipality and section15 of the Supply ChainManagement Regulations.Accountant: Supply Chain ManagementNo.1Leader Worker (Supervisor)Procedures for performing Petty Cash PurchasesDepartmental CMReg.Par 15OperatingExpenditureOperatingExpenditurePetty CashPolicyPASCMReg.Par ionRMRMRADetermine the maximumnumber of transactions orthe maximum amount of thepermissiblepettycashexpenditure per month;VAVAGRAPStandardPage 335May 2016
ProcedurePurchases within the predeterminedthresholdconstitutes cash purchaseswithouttheneedforquotations.Identify the need to purchaseanitem,withinthepredetermined values.PDMunicipal ManagerLegislationVA4Chief Financial OfficerHeads of DepartmentsHead: Assets and ExpenditureManager: Supply Chain ManagementAccountant: ExpenditureAccountant: Supply Chain ManagementNo.3Leader Worker (Supervisor)Departmental SecretarySTANDARD OPERATING PROCEDURES FOR penditureKPIPage 336May 2016
67ProcedureComplete a pre-numberedPetty Cash Request Form,by documenting the followingminimum information: Applicant details; Applicant ID number; ItemthatwillbepurchasedviaPettyCash; All segments of mSCOA;and The amount.Sign the Petty Cash RequestForm.Approve the PettyRequest Form.Municipal ManagerLegislationPDVMVMVDRMPDPDRMVDCashVDChief Financial OfficerHeads of DepartmentsHead: Assets and ExpenditureManager: Supply Chain ManagementAccountant: ExpenditureAccountant: Supply Chain ManagementNo.5Leader Worker (Supervisor)Departmental SecretarySTANDARD OPERATING PROCEDURES FOR mberedPetty CashRequest ingExpenditureOperatingExpenditurePage 337May 2016
91011ProcedureReceive the PettyRequest Form.Municipal ManagerChief Financial OfficerHeads of DepartmentsHead: Assets and ExpenditureManager: Supply Chain ManagementAccountant: ExpenditureAccountant: Supply Chain ManagementNo.8Leader Worker (Supervisor)Departmental SecretarySTANDARD OPERATING PROCEDURES FOR ProposedmSCOAItemKPICashReview the Petty CashRequestFormforcompleteness.Confirm that requesting userdoesnothaveanyou
STANDARD OPERATING PROCEDURES FOR MUNICIPALITIES Page 300 May 2016 7.1.4 Procurement An overview of Supply Chain Management Procedures for procurement of goods and services. Detailed standard operating procedures are set out in section 7.3.
