Gauteng Department of Health has an administrative arrangement system, known as a web cycle, that deals with transactions that are to be finalised through the submission of invoices, goods received, vouchers and orders. The Department has managed to reduce the web cycle by 64% in terms of invoices and 46% in rand value. The web cycle’s target should not be over 8%of the goods and service.
“As a Department, we have prioritised the web cycle and we are putting more efforts in ensuring that they are reduced even further. Their reduction will ultimately aid in improving payment of service providers within 30 days and improve cash flow for service providers especially SMME’s”, says Spokesperson for MEC Kwara Kekana.
The CEOs’ key performance areas will include web cycles and efforts to reduce them. The CEOs will be expected to work closely with their finance and supply chain management units to clear web cycles on time. Kekanaalso stated that the department had trained 456 service providers on how to submit documents correctly in order to facilitate payment and comply with the 30 days payment requirement.
