ATC160209: First Report of the Committee on Public Accounts on the unauthorised expenditure of the Department of Home Affairs dated 03 February 2016

Public Accounts (SCOPA)

First Report of the Committee on Public Accounts on the unauthorised expenditure of the Department of Home Affairs dated 03 February 2016.
 

 Background

 

The Committee on Public Accounts (the Committee) considered and heard evidence on the unauthorised expenditure of the Department of Home Affairs (the Department) in relation to previous years and reports as follows:

 

The Committee notes that the Department incurred unauthorised expenditure amounting to R301.036 million in 2012/13, R687.304 million in 2010/11, and R99.883 million in 2005/06 financial years. 

 

Unauthorised expenditure incurred in 2005/06: R99.883 million

 

The unauthorised expenditure in 2005/06 comprises the following items per economic classification:

 

a)    An amount of R53 002 million was overspent; and

b)    An amount of R46 881 million was earmarked for information technology capital projects to defray current expenditure relating to information technology without prior approval from the National Treasury.

 

Unauthorised expenditure incurred in 2010/11: R687.304 million

 

The unauthorised expenditure in 2010/11 comprises the following items per economic classification:

 

1. In August 2010, the Department informed National Treasury about outstanding debts incurred in previous years amounting to R534 million which were not catered for in the 2010/11 baseline budget. The expenditure related to the modernisation of information and systems’ equipment and supply of official enabling documents.
2. The final over spending disclosed in the 2011 Annual Financial Statements amounted to R687.304 million.

 

Unauthorised expenditure incurred in 2012/13: R301.036 million

 

The Committee further notes that in 2012/13 the Department over spent on its budget by an amount of R160.394 million. An additional amount of R140.642 million was allocated for payments of capital assets without the Department obtaining National Treasury approval.

 

Recommendation

 

The Committee wishes to express its dissatisfaction with the non-compliance with relevant regulations.

 

However, in written evidence on the above-mentioned instances of unauthorised expenditure, the Accounting Officer confirmed that:

 

1. Services for the expenditure were received to the satisfaction of the Department;
2.  No individual has benefited unduly from such expenditure and;
3.  Control measures are now in place to prevent recurrence of this nature.

 

The Committee recommends that the R99.883 million and the R687.304 million incurred during the 2005/06 and 2010/11 financial years respectively as well as 2012/13 amount of R160.394 million, be approved by Parliament as a direct charge against the National Revenue Fund.

 

Report to be considered.