ATC240229: Third report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Department of Women, Youth, and Persons with Disabilities; dated 14 February 2024.

Public Accounts (SCOPA)

Third report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Department of Women, Youth, and Persons with Disabilities; dated 14 February 2024.

 

The Standing Committee on Public Accounts (the Committee) considered and heard evidence on the unauthorised expenditure of the former Department of Women, Youth and Persons with Disabilities (the DWYPD) in relation to the 2011/2012 financial year and reports as follows:

 

1. Background

 

The DWYPD incurred unauthorised expenditure amounting to R27.338 million at the end of the 2011/12 financial year.

 

1. Unauthorised expenditure incurred in 2011/12: R27.338. million

 

The unauthorised expenditure in 2011/12 comprises the following items per economic classification:

 

1. The DWYPD overspent on the main division of the vote (Programme 1: R25.5 million) and (Programme 3: R1.8 million). On the further breakdown of the unauthorised expenditure, it reflects that it was mainly on Compensation of Employees (CoE), amounting to R11.4 million, and Goods & Services amounting to R12.4 million. During the 2010/11 financial year, the DWYPD was still part of the Presidency and as of the 2011/12 financial year, the DWYPD became a fully-fledged stand-alone department.
2. The main contributing factors for the overspending on the Compensation of Employees were due to the appointment of officials to capacitate the support functions in the Administration programme, as well as the capacity in the Administration and Children’s Rights and Responsibilities programme within the approved post establishment, but outside of the Compensation of Employees allocation, appointments of officials on higher notches and appointment of officials additional or outside of the post establishment.
3. Due to the appointments made, the related Goods & Services expenditure in the respective programmes also increased due to but not limited to telecommunication cost, computer services, municipal services as well as the rental of office accommodation and audit fees.

 

The DWYPD to prevent the re-occurrence of unauthorised expenditure, a turn-around strategy was developed and implemented during the 2012/13 financial year which led to the non-incurring of unauthorised expenditure linked to the inadequate internal controls as identified in the investigation report.

 

1. Unauthorised expenditure incurred in the 2015/16 financial year – R2.2 million.

 

The Department of Women (DoW) incurred unauthorised expenditure in the 2015/16 financial year amounting to R2.2 million.

 

The overspending occurred on two (2) main divisions, namely Programme 1: Administration and Programme 3, Policy Stakeholder Coordination and Knowledge Management (PSCKM), and not on the main vote.

 

1. Unauthorised expenditure incurred in the 2019/20 financial year – R3.2 million.

 

The Department of Women, Youth and Persons with Disabilities (DWYPD) incurred unauthorised expenditure in the 2019/20 financial year amounting to R3.2 million.

 

The overspending on Programme 1: Administration was linked to CoE amounting to R1.2 million; and G&S amounting to R2.0 million. These two (2) amounts total to R3.2 million but are decreased by the underspending on Transfers and Subsidies of R1 thousand, Payments for Capital Assets of R3 thousand, and Payment of Financial Assets of R19 thousand. The final total is therefore R3.2 million.

 

4. Recommendation

 

The unauthorised expenditure should be financed as a reduction of the Department’s future allocation in terms of section 34(1)(b) of the PFMA, 1999.

 

 

5. Conclusion

The Committee further recommends that the Auditor-General should follow up on all matters raised above and report thereon in its audit outcome on unauthorised expenditure after the end of the 2023/24 financial year.

Report to be considered.