South African Local Government Association
Schedule 3A public entity i. t. o. the Public Finance Management Act, 1999 and recognised i. t. o. the Organised Local Government Act, 1997
Annual Financial Statements for the year ended 31 March 2017
Notes to the Annual Financial Statements
Figures in Rand
2017 2016
37. Fruitless and wasteful expenditure( continued)
A disciplinary process was instituted against the officials responsible for the incurrence of fruitless and wasteful expenditure of R 81 788 made-up as follows;
• R 56 414 – Workmen’ s Compensation Commissioner; and
• R 25 374 – South African Revenue Services.
A further amount of R10 177 was incurred due to late payment of various creditors. On investigation it was established that a combination of factors rather than a specific official was responsible for the incurrence of the fruitless and wasteful expenditure
An amount of R100 695 was recovered in the current year from SARS relating to penalties incurred in prior periods
For the comparative year an amount of R 380 was recovered from the officials responsible for the incurrence of interest charges. The Accounting Authority condoned an amount of R91 965( 2016: R5 616)
The net effect for the year under review is that there is an over recovery of fruitless and wasteful expenditure resulting in a credit of R 8 730 overall
38. Irregular expenditure
Opening balance |
- |
- |
Add: Irregular expenditure – current year |
- |
- |
Add: Irregular expenditure – prior year( discovered in current year) |
- |
- |
Less: Amounts condoned |
- |
- |
Less: Amounts recoverable( not condoned) |
- |
- |
Less: Amounts not recoverable( not condoned) |
- |
- |
|
- |
- |
The organisation did not incur irregular expenditure for the year under review( 2016: Nil).
39. Statement of comparative budget and actual information
The SALGA budget is prepared on an accrual basis which is comparable with the financial statements. The original budget for 2016 / 17 was approved by the Accounting Authority on 29-30 March 2016. The first adjusted budget for 2016 / 17 was approved by the Accounting Authority on 14 March 2017 and the final adjustment budget for 2016 / 17 was approved with the annual financial statements on 26 May 2017.
The budgets mentioned above cover the periods 1 April 2016 to 31 March 2017. The budget is prepared on the accrual basis using a classification based on the nature of expenses in the statement of financial performance.
243 SALGA ANNUAL REPORT 2016 / 17