that 65 percent of departments, compared to 61 percent three
expenditure, it continues to be non-compliance with supply
years ago, are producing annual reports that are reliable and
Outstanding audits According to Makwetu, 27 audits were not completed in time to be fully included in the consolidated report. He said 18 out of the 27 audits were still in progress at the date of the report. “The main reason for this was non-submission or late submission of financial statements and information. “However, there were audits that were delayed as a result of disagreements on accounting matters.”
“So if a department does not comply with supply chain legislation, even if they have made a great effort to source the goods and services, they still remain non-compliant and that non-compliance triggers irregular expenditure,” he explained. The controls that should be put in place in the procurement process emanate from the constitutional requirements of supply chain management, as set out in section 201 of the Constitution, Makwetu said. Fruitless and wasteful expenditure in the 2015/16 financial year was 14 percent higher than in 2013/14, at R1.37 billion. He said the increase was incurred due to an increasing number of auditees. Unauthorised expenditure decreased by just over 50 per-
Of concern is the rise in irregular expenditure, which the AG
cent since 2013/14 to R925 million as a result of interventions
said had increased by nearly 40 percent since 2013/14 to R46.36
at national and provincial levels.
billion. “If you look at the main reason for the increase in irregular
The main reason for the unauthorised expenditure remained overspending of the budget.
Public Sector Manager • December 2016 / January 2017