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Notable decrease in unauthorised government expenditure: AG

FINANCIAL GRATIFICATION: Cultivating the culture of saving money early in life can reap a great and rewarding harvest later PHOTO: PUXLEY MAKGATHO
FINANCIAL GRATIFICATION: Cultivating the culture of saving money early in life can reap a great and rewarding harvest later PHOTO: PUXLEY MAKGATHO

There has been a notable decrease in unauthorised expenditure since 2013-14‚ the Auditor-General (AG) Kimi Makwetu said on Wednesday.

Releasing this year’s audit outcomes of national and provincial government departments and public entities (auditees)‚ said the overall decrease was largely due to a significant decrease in KwaZulu-Natal (79%) and Limpopo (69%)‚ while national auditees reduced theirs by 55%.

Fifteen auditees recorded unauthorised expenditure in the current and previous year‚ nine of which had incurred such expenditure for the past three years.

Makwetu said 99% of the unauthorised expenditure was identified by the departments themselves‚ while his office’s audit process had identified the remaining 1%.

Of the R1.641 billion in unauthorised expenditure incurred in 2014-15‚ most (99%) was as a result of overspending of the approved budget or main division within the budget.

Makwetu said there had also been a reduction in the value of fruitless and wasteful expenditure since 2013-14‚ and that the number of auditees that had incurred this kind of expenditure had also decreased.

“Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided had reasonable care been taken‚” he explained.

For the current and previous years‚ 197 auditees had incurred fruitless and wasteful expenditure‚ of which 151 (auditees) had incurred such expenditure for the past three years. Of the R936 million in fruitless and wasteful expenditure incurred in the year under review‚ R32 million (3%) was incurred to prevent further fruitless and irregular expenditure or losses.

This normally related to the cost of cancelling irregular contracts or contracts of non-performers‚ Makwetu said.

Makwetu said it was worth noting that 80% of this expenditure was identified by the auditees‚ “which shows an improvement in the detection and reporting thereof”.

 

 

 

 

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