Employment of Educators Act, 1998
R 385
Public Audit Act, 2004 (Act No. 25 of 2004)Memorandum of Agreement (2020)Annexure AB. Criteria: Financial Performance IndicatorsB.5. Capital underspending |
Description:
This indicator assesses—
| • | the effectiveness of auditee's capital spending; and |
| • | also provides an indication of whether, for example, auditees are compromising their capital programmes to resolve cash flow challenges. |
Calculation
The percentage of capital underspending is calculated on actual capital expenditure less the budgeted expenditure by dividing the budgeted capital expenditure as indicated in the auditee's capital expenditure statement.
|
Score |
Rating |
|
Score 3 |
Under-spending of more than 30% of capital budget |
|
Score 2 |
Under-spending of between 10% and 30% of capital budget |
|
Score 1 |
Under-spending of less than 10% of capital budget |
