Compliance Monitoring
30-Day Creditor Payment Compliance
Adherence to the MFMA Section 65 and PFMA Treasury Regulation requirement to pay suppliers within 30 days.
Late payment is both a compliance breach and a service-delivery risk
Section 65(2)(e) of the MFMA and the equivalent PFMA Treasury Regulations require that valid supplier invoices be paid within 30 days, and persistent breaches feed directly into AGSA findings, fruitless and wasteful expenditure on interest, and the collapse of small-supplier cash flow. Late payment is one of the most frequently raised compliance matters in the public sector. AuditPro Core measures payment performance against the statutory clock from the date a valid invoice is received, exposing ageing exposure before it becomes an irregular-expenditure or litigation issue.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Paid within 30 days
76%
▲ 6 pts vs prior year
Overdue value
R 214 m
Avg days to pay
41
target 30
Invoices > 90 days
1 207
Share paid within 30 days
Ageing of unpaid valid invoices
| Age bucket | Invoices | Value |
|---|---|---|
| 0-30 days | 4210 | R 612 m |
| 31-60 days | 1880 | R 198 m |
| 61-90 days | 740 | R 88 m |
| Over 90 days | 1207 | R 214 m |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
The clock starts at valid receipt
The 30-day period runs from receipt of a valid, undisputed invoice, not from the date of capture or approval. Disputes must be raised promptly and documented, or the delay still counts against the entity.
Compliance percentage versus ageing
A headline compliance rate can mask a long tail of severely overdue invoices. Monitoring the ageing band of unpaid items reveals concentrated risk that an average figure hides.
Consequences beyond the breach
Late payment can trigger interest charges that constitute fruitless and wasteful expenditure, and chronic delay to SMMEs undermines the developmental and preferential procurement objectives of the framework.
Root cause sits upstream
Most late payments originate in slow goods-receipting, invoice mismatches or budget-availability holds rather than in the payment run itself, so remediation must reach into the procure-to-pay chain.
How AuditPro Core Bridges the Gap
- Statutory-clock measurement: ageing is computed from valid invoice receipt against the 30-day requirement, not from capture date.
- Exception workflow: invoices approaching or breaching the deadline are escalated to the responsible official with cause codes.
- Continuous monitoring: the open creditor book is re-aged daily so emerging exposure is visible between reporting cycles.
- Audit-ready export: compliance percentages, breach listings and interest exposure export for the section 71 report and the audit file.
Key Takeaways
- The 30-day clock runs from receipt of a valid invoice, not from approval or capture.
- Watch the ageing tail; a high average compliance rate can hide severely overdue items.
- Interest on late payment is fruitless and wasteful expenditure and must be reported.
- Fix root causes in goods-receipting and invoice matching, not just the payment run.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.