ATC240229: Fifth Report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Department of Social Development 14 February 2024.
Public Accounts (SCOPA)
Fifth Report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Department of Social Development 14 February 2024.
The Standing Committee on Public Accounts (the Committee) considered and heard evidence on the unauthorised expenditure of the Department of Social Development (the Department) in relation to the previous year and reports as follows:
- Background:
The Committee notes that the Department incurred unauthorised expenditure in the 2019/20 financial year by overspending the vote by R15.134 billion.
- Unauthorised expenditure of R15.134 billion in 2019/20 due to the President’s declaration of a National State of Disaster due to the COVID-19 global pandemic: announcement of a 21-day national lockdown from 26 March to 16 April included an announcement by the President to pay grants early (26 March as opposed to 1 April 2020).
- R15.134 billion was paid towards the April (2020/21) social grants for which it was budgeted. Early payment of social grants: April 2020 (2020/21 FY) payments made in March 2020 (2019/20 FY) resulting in over-spending in 2019/20 budget.
- Resulted in overspending on the main division of vote (Prog 2: Social Assistance) and vote.
Mitigating actions and steps taken to prevent unauthorised expenditure.
- Not a function of negligence nor poor planning but emergency response
- Funding for grants was allocated in 2020/21. These social grant payments were accounted for in the 2019/20 financial year and financial statements.
Recommendation
Having considered the above matter the Committee recommends that an amount of R15.134 billion should be financed as a direct charge against the National Revenue Fund 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.