National Consumer Tribunal Annual Report 2011/12 National Consumer Tribunal 2011-12 | Page 90

Annual Financial Statements
ACCOUNTING POLICIES
for the year ended 31 March 2011

1.22 Irregular expenditure
Irregular expenditure as defined in Section 1 of the PFMA is expenditure other than
unauthorised expenditure, incurred in contravention of, or that is not in accordance with a
requirement of any applicable legislation, including National Treasury Practice Note 4 of
2008/2009 which was issued in terms of Sections 76(1) to 76(4) of the PFMA requires the
following (effective from 1 April 2008):
- -
- -
- -
- -
Irregular expenditure that was incurred and identified during the current financial year
and which was condoned before year-end and/or before finalisation of the financial
statements must also be recorded appropriately in the irregular expenditure register. In
such an instance, no further action is also required with the exception of updating the
note to the financial statements.
Irregular expenditure that was incurred and identified during the current financial
year and for which condonement is being awaited at year-end must be recorded in
the irregular expenditure register. No further action is required with the exception of
updating the note to the financial statements.
Where irregular expenditure was incurred in the previous financial year and is only
condoned in the following financial year, the register and the disclosure note to the
financial statements must be updated with the amount condoned.
Irregular expenditure that was incurred and identified during the current financial year
and which was not condoned by the National Treasury or the relevant authority must be
recorded appropriately in the irregular expenditure register. If liability for the irregular
expenditure can be attributed to a person, a debt account must be created if such
a person is liable in law. Immediate steps must thereafter be taken to recover the
amount from the person concerned. If recovery is not possible, the accounting officer
or Accounting Authority may write off the amount as bad debt and disclose such in the
relevant note to the financial statements. The irregular expenditure register must also
be updated accordingly. If the irregular expenditure has not been condoned and no
person is liable in law, the expenditure related thereto must remain against the relevant
expenditure item, be disclosed as such in the note to the financial statements and
updated accordingly in the irregular expenditure register.
Annual Report 2011
page 88 | national consumer tribunal