ATC240229: Fourth Report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Department of Justice and Correctional Services dated 14 February 2024
Public Accounts (SCOPA)
Fourth Report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Department of Justice and Correctional Services dated 14 February 2024.
The Standing Committee on Public Accounts (the Committee) considered and heard evidence on the unauthorised expenditure of the Department of Justice and Correctional Services (the Department) in relation to the previous year and reports as follows:
- Background:
The Committee notes that unauthorised expenditure incurred unauthorised expenditure in the 2015/16 financial year by overspending the vote by R121 000.
Unauthorised expenditure of R121 000 in 2015/16 due to the adjustment of housing allowances for employees below salary level 12 (DPSA directive issued in December 2015), adjustments to the medical aid contributions, and budget reductions. With proper financial management, this could have been avoided since the CoE budget was underspent.
Mitigating actions and steps taken to prevent unauthorised expenditure.
- Presentation of IYM reports to the budget committee, National Management Committee (NatManco), and the audit committee.
- Conducting monthly financial meetings to discuss financial issues including those that may lead to irregular, wasteful, fruitless, and unauthorized expenditure.
- Quarterly analysis of financial variables to detect unusual expenditure movements.
Recommendation
Having considered the above matter the Committee recommends that an amount of R121.000 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.