ATC240229: Eighth Report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Independent Police Investigative Directorate (IPID) dated 28 February 2024.

Public Accounts (SCOPA)

Eighth Report of the Standing Committee on Public Accounts on the unauthorised expenditure of the Independent Police Investigative Directorate (IPID) dated 28 February 2024.

 

The Standing Committee on Public Accounts (the Committee) considered and heard evidence on the unauthorised expenditure incurred in 2005/06 and 2008/09 by the then Independent Complaints Directorate (ICD), now the Independent Police Investigative Directorate (IPID) in relation to previous years and reports as follows:

1. Background:

 The Committee notes that unauthorised expenditure incurred:

• In 2005/06, the department overspent its Programme 3 Budget allocation by R91 000 that was incurred under goods and services as a result of the printing of hard copies of the ICD Strategic Plan for the period 2006-2009, as well as its Annual Report for the 2004/05 financial year.
• Copies of both Strategic Plan and Annual Reports were distributed to Internal and External Stakeholders including the Parliament and National Treasury.
• The quotations/invoices were received from the service provider which were higher than the allocated budget provided and no funds could be shifted to the programme to offset the excess expenditure as the 8 percent virement limit, in terms of section 43(2) of the Public Finance Management Act (PFMA) (1999), would have been exceeded.
• In 2008/09, the Department incurred higher than planned at Vote level by R800 000 as a result of an unanticipated interface on the PERSAL system which occurred on 30 March 2009, a day before the end of the financial year. On 31 March 2009, the Department discovered that there was an unavoidable PERSAL interface transaction that took place on 30 March 2009 for employees' salaries and allowances. The interface affected the Compensation of Employees (CoE) as the amount involved was more than the available budget on CoE at that point in the financial year, this resulted in overspending at Vote level.

Mitigating actions and steps taken to prevent unauthorised expenditure.

• The Department implemented internal controls and cost containment measures. There has been no unauthorised expenditure recorded subsequent to 2008/9​.

​   Recommendation

Having considered the above matter the Committee recommends that an amount of R891000 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.