Governance
Finance on 30 September 2010; and a further
engagement between the CEO of SALGA and
the Deputy Minister of Finance on 25 January
2011. However, the Funding model is not fully
implemented in the current MTEF cycle as the
Executive Authority and National Treasury are
considering the model. The NEC shall continue
to engage the Executive Authority and National
Treasury for the implementation of the funding
model. Despite the non-implementation of
the funding model the NEC is convinced that
SALGA’s continuation as a going-concern is
assured.
Fruitless and Wasteful Expenditure and
Irregular Expenditure
Fruitless and wasteful expenditure
Fruitless and wasteful expenditure is disclosed
in note 37 of the annual financial statements.
Fruitless and wasteful expenditure amounting
to R 91 965 was incurred during the financial
year. An amount of R 100 695 was recovered in
the current year from SARS relating to penalties
incurred in prior periods, resulting in a net
amount of R 8 730 being incurred for the year.
A disciplinary process was instituted against
the officials responsible for the incurrence of
fruitless and wasteful expenditure of R 81 788. The
accounting authority subsequently condoned
the residual fruitless and wasteful expenditure
incurred of R 10 177 and R 81 788 as it was not
recoverable.
Irregular expenditure
During the year under review, the organisation
did not incur any expenditure deemed as
irregular expenditure in terms of the Public
Finance Management Act, 1999 (PFMA), also see
note 38 to the annual financial statements.
Losses, Irregularities and Other Matters
Losses or irregularities are referred to in Section
55(2) (b) of the PFMA. The organisations Materiality
and Significance Framework was developed and
agreed to in terms of PFMA Treasury Regulation
28.3.1.
42
In terms of Section 55, the following are specified
as matters that must be reported on in the annual
report and financial statements:
(i) any material losses through criminal
conduct and any irregular expenditure
and fruitless and wasteful
(ii) expenditure that occurred during the
financial year;
(iii) any criminal or disciplinary steps taken as
a consequence of such losses or irregular
expenditure or fruitless and wasteful
expenditure;
(iv) (any losses recovered or written off;
(v) any financial assistance received from
the State and commitments made by the
State on its behalf; and
(vi) (any other matters that may be prescribed.
SALGA’s annual financial statements comply
with the requirements as stated above, where
applicable.
Materiality and significance framework
The NEC approved the materiality and
significance framework; developed in terms
of the PFMA Treasury Regulation 28.3.1. The
framework defines aspects of significance and
materiality in terms of sections 54(2) and 55(2(b)
(i) of the PFMA.
The framework, has been agreed to with the
Executive Authority as required by the PFMA
Treasury Regulation 28.3.1.
Legal proceedings
The organisation did not disclose any contingent
liabilities because there are no litigation matters
currently pending.