ATC240229: Seventh Report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Department of Public Service and Administration dated 28 February 2024
Public Accounts (SCOPA)
Seventh Report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Department of Public Service and Administration dated 28 February 2024.
The Standing Committee on Public Accounts (the Committee) considered and heard evidence on the unauthorised expenditure of the Department of Public Service and Administration (the Department) in relation to previous year and reports as follows:
- Background:
The Committee notes that the unauthorised expenditure of R8.812 million incurred during the 2013/14 financial year, emanates from overspending in the Administration programme, under the Ministry subprogramme. The overspending arose from expenditure related to additional members appointed to the then Minister’s advisory body, and increased personnel in the Minister’s office, outside what the Government Gazette and the budget in the office of the Minister provided for.
2. Mitigating actions and steps taken to prevent unauthorised expenditure
- Although money was reprioritised from other spending areas, these virements were restricted by the 8 percent virement threshold set by section 43(2) of the PFMA. In the end, the virements applied were not sufficient to cover all the operational costs, particularly costs related to travel and subsistence for the advisory body.
- The objectives associated with the ministry should have been addressed using what is laid down by the Government Gazette of 31 July 2012 and the outcome of normal budget processes. As such, the unauthorised expenditure incurred by the department budget was avoidable.
Recommendation
Having considered the above matter the Committee recommends that an amount of R8.812 million 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.