When an official of a department discovers unauthorised expenditure, that official must immediately report such expenditure to the accounting officer. The unauthorised expenditure must also be reported in the department’s monthly report to the relevant treasury, as required in terms of section 40(4)(b) of the PFMA.
What is the meaning of irregular expenditure?
Irregular expenditure is expenditure that was not incurred in the manner prescribed by legislation; in other words, somewhere in the process that led to the expenditure, the auditee did not comply with the applicable legislation.
What is Unauthorised irregular fruitless and wasteful expenditure?
Fruitless and wasteful expenditure refers to expenditure that was made in vain and could have been avoided had reasonable care been taken. Such expenditure includes interest, the payment of inflated prices, and the cost of litigation that could have been avoided.
How do you identify irregular expenditures?
Confirmation of irregular expenditure If a transaction has been processed in contravention of the legislation or internal policies and the same transaction has a financial implication (payment was made or a liability was recognized in the books), it must be recorded as irregular expenditure.
What causes irregular expenditure?
Irregular expenditure incurred as a result of non- compliance with a Treasury Regulation which required cognisance to be taken of a National Treasury determination.
What are examples of irregular expenditure?
Examples of irregular expenditure are: > Groceries > Clothing > Motor fuel > Light and heat > Waste/recycling charges > Telephone bills > Education costs > Repairs.
What are the three types of expenditure?
Expenditure Conclusion The three types of expenditure that a business can incur include capital expenditure, revenue expenditure, and deferred revenue expenditure.
What is the difference between PFMA and MFMA?
The PFMA applies to the national and provincial spheres of government, and the MFMA applies to the local sphere. While the MFMA differs considerably from the PFMA in detail, it shares the same broad objectives of promoting effective, efficient, transparent and accountable public sector financial management.
What is irregular expenditure in municipality?
Irregular Expenditure is expenditure that is contrary to the Municipal Finance Management Act (Act No. 56 of 2003), the Municipal Systems Act (Act No. 32 of 2000), and The Public Office Bearers Act (Act No. 20 of 1998) or is in contravention of the Municipality’s Supply Chain Management Policy.
What are 3 types of expenditure?
What are the 4 types of expenses?
You might think expenses are expenses. If the money’s going out, it’s an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far).
Is rent an expenditure?
Rent expense refers to the total cost of using rental property for each reporting period. It is typically among the largest expenses that companies report. It includes material cost, direct and compensation (wages) expense. Rent expense is the payment made to a landlord for the rental space that is used by the company.
What is the meaning of unauthorised expenditure?
Unauthorised expenditure refers to expenditure that municipalities incurred without provision having been made for it in the budget approved by the council or which does not meet the conditions of a grant. The Zim govt has scapegoated Old Mutual because its currency has “fallen through the floor”, says Africa At Work’s Dianna Games.
What do you mean by fruitless wasteful irregular and unauthorized expenditure?
What ‘fruitless’, ‘wasteful’, ‘irregular’ and ‘unauthorised’ expenditure mean 1 Fruitless and wasteful expenditure. Expenditure which was made in vain and would have been avoided had reasonable care been exercised. 2 Irregular expenditure. 3 Unauthorised expenditure.
What is unauthorised expenditure PFMA?
Definition Unauthorised Expenditure is defined in section 1 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA) to mean: overspending of a vote or a main division within a vote; or expenditure that is not made in accordance with the purpose of a vote or, in
What should the accounting officer do when an unauthorised expenditure occurs?
The accounting officer must immediately report the unauthorised expenditure in writing to the relevant treasury (PFMA 38(1)(g) & 40(4)(b)) The accounting officer must take effective action and appropriate disciplinary steps (PFMA 38(1)(h) & TR 9.1.3) Recover amounts where losses or damages have been incurred (TR 12) 7
