FAQ's

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Deductions/Recalls Section
Tax Section
Cheque Control
Banking
Fraud Section
Chief Financial Office
Procurement/Provisioning Control
Procurement Advice
Suppliers Database
BAS FAQ's

Deductions/Recalls Section

Q: Who must the refunds for over paid deductions and employer contributions which were erroneously paid to creditors be made payable to

A:For those Departments currently on FMS, refunds must still be made payable to the Province KZN Paymaster-General. For those departments on BAS, the refunds must be forwarded to the Chief Financial Officer of the relevant, BAS Department, or deposited directly into the relevant Department’s Bank Account.

Q: Where does the processing take place of the new deductions, cancellations and amendments to stop orders in respect of a deduction for medical aids, pensions, small funds, insurances and official associations etc?

A: These are implemented either through the magnetic tape by the relevant creditors or are manually amended by the personnel department of the respective departments and not by Provincial Treasury.

Q: Who should receive and process correspondence by fax, by post and telephonic queries relating to any changes to be made on PERSAL to deductions of insurances, medical aids and pensions etc?

A: All these enquiries are to be addressed at the employee’s relevant staff office. The Provincial Treasury merely acts as an agent between the creditors and the various departments and is therefore not responsible for dealing with enquiries of this nature.

Q: What are the postal addresses, telephone numbers and contact persons for the various departments?

A: Check with your staff office or supervisor.

Q: Who can assist outside departments with information and training relating to the filling in of FMS information on journals and 1084 payment vouchers?

A: The various personnel departments at the head offices of this administration are to be contacted for training as it is not the responsibility of the staff at Provincial Treasury’s office to provide this information due to erroneous details being furnished.

Q: Why are bond refunds made to Provincial Treasury?

A: Due to the fact that all officials qualify for a taxable housing subsidy, the refunds have to be returned to Provincial Treasury to ensure that the subsidy is reversed and updated in this administration’s records.

Q: When do the bond payments, garnishee payments and non-subsidised loan payments are paid over to the said creditors?

A: These payments are made to the creditors on the relative pay dates.

Q: What commission/administration fee is charged by this administration for the pay over of insurance premiums?

A: This administration currently charges 2,5% of the premiums as a commission/administration fee.

Q: How is the regional services levy calculated?

A: The levy payable is calculated as follows, the total renumeration multiplied by 0,342%.

Q: What is the percentage that officials contribute to the Government Employees Pension Fund (GEPF)?

A: 7,5% of the current gross income (salary only, not including service bonus).

Q: What is the percentage that officials contribute to the Temporary Employees Pension Fund (TEPF)?

A: 5% of the current gross income (salary plus service bonus).

Q: Do temporary employees contribute to a pension fund?

A: Yes, they contribute to the TEPF.

Q: What percentage of the medical aid employer contribution is paid to the medical aid companies?

A: 2/3, for example the total premium is R900,00 - the employee pays R300,00 and the employer pays R600,00.

Q: What is the present maximum of the employer contribution that is paid to the medical aid?

A: R1014. If the premium exceeds the maximum of R1521 then the extra amount must be paid by the employee.

Q: Which department is responsible for payment of the employer contribution if it is owing to the medical aid?

A: The department where the employee is employed.

Q: Where must the correspondence from the medical aid companies relating to amendments to premiums, dependents, etc. be sent?

A: The correspondence must be forwarded to the member’s staff office.

Q: Who must the staff offices contact or write to when they wish to request a refund for one of their employees?

A: They must contact the medical aid company concerned. Only once the refund has been processed by the medical aid concerned and forwarded to Provincial Treasury will the Provincial Treasury process the refund to the member concerned.

Q: How much does the employer contribute towards the GEPF on behalf of the employee?

A: The employer contributes R2,00 (two rand) for every rand that is deducted from the employees salary towards GEPF.

Q: What is the amount of commission/administration fee charged by the administration for garnishee deductions?

A: A commission/administration fee of 5% is recovered from the garnishee pay-overs by the administration.

Q: How do I obtain a refund in respect of over deductions on my non-subsidised loans?

A: The onus is on the official to claim the refund from the company (financial institution) concerned.

Q: The employee asks the question, has my Salary been returned?

A: Contact your Personnel Office, as letters advising of returned funds would have already been faxed to them with the relevant official/s details.

Q: Personnel Offices ask the question, has the Salary or Housing loan of an employee been returned by the banks?

A: For Departments on BAS, contact the Chief Financial Officer of your Department as a letter and the returned salary advice form (EF70) has been faxed to him/her. For Departments still on FMS, check the fax machine to ensure that a notification has not already been sent to the designated officer in your Department whom this type of letter will be addressed.

Q: What if notification is received advising the Department that a Salary or Housing Loan has been misplaced?

A: For Departments on FMS, draw a Report 43 against that employee’s PERSAL number, if there is a credit reflected against this number from distribution 0021, this is an indication that the money was retruned. For Departments on BAS, contact your Chief Financial Officer, as all letters and the returned salary advice form (EF70) would have been faxed to him.

Q: What do we do when we need to process a payment when the amount exceeds the ACB Limit?

A: The ACB Limit for Normal Salary runs is R 55 000.00 and for Supplementary Salary Runs is R 35 000.00. If this limit is exceeded, the Provincial Treasury Recalls Section will advise of the rejection once the relevant report is received. The Department must process a 1084 through their own distributions to process the salary on FMS or on BAS, where applicable.

Q: What do I do if a Company phones and asks why did we do a Stop Payment on their cheque?

A: If an employee resigns and is not entitled to the salary, the salary and any garnishee deductions must be withheld. The refund of the balance owing will be processed once the relevant financial institution returns the funds.

Q: What must the Staff Offices do when a Salary or Housing Loan is returned for a Closed Account?

A: The Salaries and Housing loans are automatically returned when the bank account is closed. The Recalls Section faxes letters to the various Staff offices informing them that the Salary/Housing Loan is returned. The Staff Offices must ensure that the new banking details are coded onto PERSAL to avoid further delays. It is the responsibility of the Staff Offices to keep this Department informed of any changes to the designated officer’s contact details to avoid letters being faxed through numerous times and to avoid delays.

Q: How will I get a refund in the case of an overpaid Garnishee?

A: In the cases of overpaid garnishee orders, the Recalls Section can only refund the amounts once the funds have been returned by the relevant Attorney/s. In the case of BAS Departments, each Department is responsible for processing their own refunds.

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Tax Section

Q: When do I make payments using a 1084 advice and when must a journal 1098 be used?

A: Use a 1084 for payment and a 1098 for reversals of salary when salary records are archived ie. #5.6.12. payment of any allowance must be forwarded to tax section to update IRP 5 accumulations.

Q: What FMS codes, Responsibility/Major/Minor (Item and allowance codes) should I use for payment?

A: Contact your FMS section, Responsibility Manager for codes.

Q: What are supporting documents that must be forwarded with a 1084?

A: Original signed documents warranting payment.

Q: When to pay leave gratuity and when to pay leave discounting?

A: Consult your supervisor and regulations pertaining to payment.

Q: Who issues IRP 3?

A: South African Revenue Service. Issued for tax exemption, lump sum payments.

Q: How does "Recurring" method of bonus tax recovery work?

A: One twelfth of bonus tax is recovered monthly over the tax year period - March to Feb.

Q: Resigned after bonus pay date - results in tax debt.

A: Resigned before bonus pay date - results in tax refund.

Q: Who do we contact to solve PERSAL function problems?

A: Contact PERSAL Help Desk – telephone number (033) 3952025.

Q: What tax do TOGT labourers pay and when is tax payable?

A: The tax threshold for TOGT wages is R103 per day or more than 22 hrs per week. Tax tables change annually.

Q: Where are cheques for re-issue payments processed?

A: At the PMG Section on the ground floor of Treasury House. Contact Mrs Sue Ponsford on (033) 8974224.

Q: Where can tax debt and other liabilities be paid?

A: Contact your staff office.

Q: How did debits appear in the tax debt account after final recalculation?

A: Tax debts are set up on PERSAL and an automatic interface between PERSAL and FMS brings up the debit in tax debt account.

Q: Where do we register as a tax payer?

A: At a South African Revenue Service (SARS) office near you.

Q: What percentage of tax do I pay monthly including tax on the service bonus?

A: Tax calculated on a persons earnings is done according to the prescribed tax tables in the guidelines for employees tax - EMP 10.

Q: When does the tax year begin?

A: In March and ends in February. Financial year runs from April to March.

Q: I'd like to request duplicate certificates.

A: Past records are kept for five years. If the request is for a certificat that is already 4 and 5 years ago, the request must hav an attached letter from South African Revenue Services. (e.g. For the period 1999 to 2003, both years 1999 and 2000 require a SARS request letter.) The Provincial Treasury Tax Section holds all certificates where the IRP5 certificat number begins with an ‘AP’ number. If this is not the case, then the relevant Staff Office of each Department must be contacted.

Q: Can I have the duplicate certificate faxed to me?

A: We do not fax as per SARS instructions.

Q: I sent a request for a duplicate and have not yet received it?

A: Find out when the request was sent and check for the request on PERSAL. Inform us when it was posted or ask for another application.

Q: Why is tax high on salary and service bonus?

A: Submit your enquiry in writing. An investigation will be done and a reply will be forwarded to you.

Q: If a certificate is opened but the salary record is archived, I cannot do a reversal on PERSAL?

A: If the Department is not on BAS, a Salary Reversal is to be processed on an FMS journal, form code 1098. If the Departmen is on BAS, a BAS journal must be processed on the Bas System. In both cases a copy of the journal must be forwarded to the Tax Section for updating onto the Tax Records.

Q: A person is emigrating and needs a certificate for the current tax year?

A: If the reason for resignation on PERSAL reads "emigration", inform the person to submit it in writing. If termination is incorrect, inform the person to contact their staff office.

Q: A person wants to apply for a tax number or tax directive?

A: Contact SARS.

Q: How do I change my tax method to the recurring method of tax on Service Bonus?

A: This change will be done at your Department’s Personnel Section.

Q: My address and income tax number on my certificate is incorrect, how do I rectify this?

A: Contact your Staff Office who will update the details on PERSAL. Once this change has been approved and updated, a new duplicate IRP5 certificate copy can be requested. This will now reflect the new correct information.

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Cheque Control

The following questions and answers are only for Departments still on the Financial Management System (FMS)

Q: When will the computer generated cheques be posted?

A: For Departments on FMS, Cheques are posted on the 15th of the month and at month end.

Q: When will the cheque reach the payee?

A: We cannot account for the postal system and cannot commit to a time period as to when a cheque will reach its destination.

Q: Where was the cheque posted to?

A: The payment advice has an address field that is completed by a department and that is the address that will be printed on the cheque stub. This office does not keep record of the addresses were cheques are posted to. Departments can find the information on the copy of the payment advice that is kept in their office.

Q: A cheque was posted and not received?

A: We suggest that a 15 working day waiting period lapses before a stop payment is requested. Once a stop payment is instated the transaction cannot be reversed.

Q: Confirmation of the stop payment on the cheque has been received, when will your department process a re-issue cheque.

A: This office only acts on completed documents compiled by a particular department regarding the re-issue of a cheque that has to be submitted to this office. The onus rests on the department to compile the 1084 form, and 10b form and submit the request to this office with a copy of the stop payment or original cheque as supporting documentation. In order for this office to generate a replacement cheque, please note that the cheque control section is the only component where a replacement cheque can be issued.

Q: A cheque was issued to the incorrect payee, what action should be taken?

A: A Department generates a payment according to an original invoice. A complete cheque cancellation must be processed, and a new payment advice must be compiled and captured at your Institution.

Q: An official in a department is deceased, what do we do with his cheque?

A: This office needs proof of identity of the executor of the Estate. The majority of cases are handled by a Magistrate Office. The Magistrate concerned will provide a letter with a file number of the estate late quoted on the letter, and a copy of that letter is needed to generate a replacement cheque.

Requirements for a deceased estate in order for a payment to be generated:

A 1084 (Payment Advice)
A 10b form
Stop payment or original cheque
Copy of Executer’s/Magistrate appointment letter
Certified copy of ID should the executer be a family member or marriage certificate in the case of the spouse
Certified copy of Death Certificate.

The re-issue codes are: 0015/201946/KN/ZN..............

Q: Creditors enquiring with this department of the status regarding their payments?

A: This department will refer all queries to the department were the services were rendered. Departmental officials must supply payment information and follow up on non payments. All departmental officials must ensure that the names and telephone numbers of the officials working in the cheque control section are not supplied to the public.

Q: We have made an overpayment, what now?

A: If a duplicate payment was generated or an erroneous payment generated, the original cheque must be cancelled and returned to this office with a 10b form allocating the funds to the department’s objectives. This office will journalise it accordingly on receipt of the 10b form and cheque.

Q: The cheque is stale, can we re-issue?

A: Please note that cheques are valid for 6 months and are only regarded as stale after that period. Request for a re-issue can be submitted by supplying a completed payment advice (1084 form) and 10b form and the original cheque or a copy of the stop payment.

Q: I want a copy of a cheque, how do I go about it?

A: To obtain a copy of a cheque involves two steps:

Copies of cheques are only issued to officials performing audit/fraud investigations. A verification request must be submitted to establish if the cheque was negotiated.

After it has been established that the cheque has been cashed a schedule must be compiled in the following manner:

Requested by:
Telephone number:
Department:
Date requested:
Payee:
Micro number (not KN or ZN numbers):
Amount:
Cashed date:
Comments:

NB: Departments have to do the verifications themselves where there are lists of cheque numbers involved, this can be done by scrutinising the orders payable closed months reports 44 which are kept in the Cheque Control Section.

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Banking

Q: Who are cheques to be made payable to?

A: For departments on FMS
"Province KZN Paymaster General".

For departments on BAS
KwaZulu-Natal Provincial Government – Treasury
KwaZulu-Natal Provincial Government – Premier
KwaZulu-Natal Provincial Government – Economics
KwaZulu-Natal Provincial Government – RDP
KwaZulu-Natal Provincial Government – Safety
KwaZulu-Natal Provincial Government – Royal Household
KwaZulu-Natal Provincial Government – Trad & Local
KwaZulu-Natal Provincial Government – Welfare
KwaZulu-Natal Provincial Government – Legislature
KwaZulu-Natal Provincial Government – Housing
KwaZulu-Natal Provincial Government – Works
KwaZulu-Natal Provincial Government – Transport
KwaZulu-Natal Provincial Government – Agriculture

Q: Request for deposit books?

A: The following information is required by fax on a departmental letterhead:

Cashiers name and phone number
The Responsibility Manager’s name and telephone number
Indicate whether to be collected or posted.

Q: Pay Master General and BAS departments banking details for electronic payments?

A: Send a letter requesting bank details to this office who will then complete the applicable documentation and obtain a bank stamp and signature from the out bankers.

Q: Has money been deposited into the PMG and BAS account?

A: A query can be executed if the enquirer can provide the following information:

Amount and the date the money interfaced or was deposited into the specific bank account.

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Fraud Section

Q: I have never received a payment due to me and when I queried this with the Department who were supposed to pay me, I was told that a cheque had been issued and cashed. What must I do?

A: Prepare an affidavit (sworn statement) in which you declare that you have never received the cheque or the proceeds thereof. Remember to mention in your statement all the details about your payment and who you spoke to including their names and the dates of conversations or correspondence. Sign the statement before a Commissioner of Oaths (a Police Station is a good place and the service is free) and then send the original statement to the Provincial Treasury for investigation (remember to keep a copy for your records). Remember that all facts will be investigated and if any falsehood is found in an affidavit you can be charged with perjury.

Q: I know of people in my community/workplace who are stealing from the Provincial Government (for example they receive a disability grant but there is nothing wrong with them) and I’m scared to tell anyone in case the criminals will find out and hurt me. Is there anything I can do?

A: There is a toll-free number that you can call -0800 31 32 33 - and an operator will listen to your story and take notes. He/she will not ask who you are or where you are calling from. There is no "tracing" equipment to trace your call. You will be given a reference number unique to your call that you can use to follow up once the matter has been investigated.

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Chief Financial Office

Q: What is the latest travelling rate per km to be claimed?

A: Refer to latest schedule of rates under documents, see circulars.

Q: I have not been paid my S&T claim?

A: It takes 5 days from the date that the S&T claim form is authorized on FMS to be deposited into the employees’ bank account.

Q: Can we have supplier numbers?

A: Request a Report 0122 which lists all the suppliers for the Province together with the supplier numbers, on a regular basis.

Q: When is the next EFT release date?

A: Refer to documents, then click on circulars.

Q: What report do I request detailing information regarding debts?

A: You need to complete a form code 1055, refer to debtors user manual.

Q: How do they go about transferring the debt from the old debt system to the new debt system?

A: First confirm with FMS section, Provincial Treasury if the E/E responsibility (the responsibility used in the Auto Credit Account details), when the debt was initially set up is still open, as codes are regularly blocked if not used for a certain period. If so, they need to inform FMS to open this responsibility so that they can clear the debt on the old system. Once this has been done then the following day the 1083 must be resubmitted. Once the debt has been transferred then inform the FMS section at Provincial Treasury to re-block that E/E responsibility again. Also refer to the debtors system manual.

Q: Why does it take so long for them to receive their remittance advice?

A: Due to the delay in postal system, incorrect addresses supplied, the address of the accounts section not supplied, not informed of changes of contact name and not notified of address change. Therefore suppliers must inform the department of any changes. Remittance advices are posted 2 days prior to the money being deposited into the supplier’s bank account. Arrangements can be made for suppliers to collect their remittance advices, which must be communicated in writing.

Q: How much money is being deposited into their bank account?

A: Suppliers must wait for their remittance advice.

Q: When can we expect payment for various invoices?

A: Query the payment of the individual invoices with the departments to whom the goods and services were rendered, as the individual departments are responsible for checking, approving and capturing the invoices. At Provincial Treasury we are only releasing the funds and if departments do not capture the invoice by the required cut-off dates then these invoices will miss the relevant payment run.

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Procurement/Provisioning Control

Q: How can a potential supplier be registered on the supplier’s database?

A: They need to fully complete an Application for Registration form (ZNT 31) and submit it to the Suppliers Database section for processing. The ZNT 31 is obtainable from the tender enquiries section of the Department. Full registration will only take place once all required information has been received from the applicant.

Q: How long will it take for a supplier to get registered on the Database?

A: A registration number will be allocated within three days. Full registration will be completed within three weeks after receiving all the required information from an applicant.

Q: When will a registered supplier get an order from the Provincial Government?

A: Once a quotation or tender submitted by the supplier has been accepted by the relevant department.

Q: How are preference points allocated/determined?

A: The principles and tables that underpin the preference system are contained in the Procurement Regulations, 2001.

Q: What legislation governs procurement in the KZN Province?

A: The Procurement Act, 2001 and the Procurement Regulations, 2001.

Q: Were can the Act and Regulations be obtained?

A: From the Tender Enquiries Desk on the ground floor of Treasury House or call the toll free number on 0800 20 10 49.

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Procurement Advice

Q: What tenders are available?

A: Tenders available at the time are provided under Tenders Advertised.

Q: When do we advertise tenders?

A: Tenders are advertised on a weekly basis in the KZN Provincial Gazette and the Ilanga Newspaper on Thursdays and the Natal Mercury and Empowerment Report on Fridays. Check the website daily to see any new advertisement for tenders.

Q: Will this Department’s submission serve before the next Central Procurement Committee (CPC) meeting?

A: By means of a register indicating the status of a particular submission, this office is able to advice departments whether submissions will serve before the next CPC.

Q: Although my tender price was lowest, why was my company not awarded the contract?

A: An endeavor will be made to offer an explanation. Reasons could range from unacceptable tender documents to the award of preference to certain tenderers. The possibility of lodging a formal appeal if not satisfied is pointed out.

Q: How should companies register on the Database?

A: By completing the Database registration form (ZNT 31).

Q: What forms need to be completed in order for a company to be on the Database?

A: The Database registration form (ZNT 31).

Q: How do we download the ZNT 31 from the website?

A: We supply clients with our website address which gives them direct access to KwaZulu-Natal Provincial Treasury, where a click on the word "Documents" and then a click on the word "Forms" will lead the client to the Database registration form. The client is advised to first save the document (ZNT 31) onto a disk before downloading it.

Q: What is the website address?

A: Website address: www.kzntreasury.gov.za

Q: If a company is already on the DZN Suppliers Database, is it necessary to register a company again with other Departments?

A: The Database registration number supplied by this office caters for all Provincial Departments, but other departments do keep their own database registers for emerging contractors and companies are thus advised to contact relevant Departments.

Q: Where can I get information about all tenders available?

A: The Ilanga Newspaper and Provincial Gazette every Thursday and the Empowerment Report Newspaper and Natal Mercury every Friday. Please note that subscription to the Provincial Gazette is a pre-requisite in order for one to receive a copy. Also log onto the website and see the Tenders Advertised section.

Q: What procedure is followed when lodging an appeal?

A: An appeal should be lodged in writing within 7 days of publication of an award and the appeal has to be faxed to (033) 342 4238 for the attention of The Chairman, Tender Appeals Tribunal. Clients are also advised to subscribe to the KZN Provincial Gazette in order for them to see (in time) which company the tender was awarded to.

Q: The procedure to be followed for one to receive copies of Provincial Gazettes?

A: Contact the Natal Witness on (033) 355 1111; Address: 224 Longmarket Street, Pietermaritzburg.

Q: How are tenderers informed if the tender has been awarded?

A: By advertising the results in the Provincial Gazette.

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Suppliers Database

Q: How long will it take for a supplier to get registered on the Database?

A: A registration number will be allocated within three days. Approval as a registered supplier will be granted within three weeks after receiving all the required information from an applicant.

Q: When will a registered supplier get an order from the Provincial Government?

A: Once a quotation or tender submitted by a registered supplier has been accepted by the relevant Department.

Q: How are preference points allocated/determined?

A: The principles and tables that underpin the preference point system are contained in the Procurement Regulations, 2001.

Q: What legislation governs procurement in the KZN Province?

A: The Procurement Act, 2001 and the Procurement Regulations, 2001.

Q: Where can the Act and Regulations be obtained?

A: From the Tender Enquiries desk on the ground floor of Treasury House, or by calling the toll free number on 0800 20 10 49.

Q: When will you get preference points?

A: Clients requiring information on preference points are referred to the KwaZulu-Natal Procurement Regulations, 2001 or may consult the Tender Enquiries desk at 0800 20 10 49.

Q: When do you become an "Approved" supplier?

A: After submitting all information called for in the ZNT 31 – October 2003 edition - and the document has been scanned into the Database and approved.

Q: Why do suppliers have to complete a ZNT 30 form each time a supplier is completing a tender document, after a supplier has been allocated a Database registration number?

A: As long as the supplier is only provisionally registered, it will always be required to complete a ZNT 30 form, until such time that the supplier has been approved as a supplier on the Database.

Q: How would I know that my business is on the Database?

A: An applicant supplier may visit the Departmental website (www.kzntreasury.gov.za) and search for its business on the Suppliers Database, or it may call the Database section at (033) 897 4200.

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