9.2 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.
What is a fruitless and wasteful expenditure?
Section 1 of the PFMA defines fruitless and wasteful expenditure as “expenditure which was. made in vain and would have been avoided had reasonable care been exercised”.
What does irregular expenditure mean?
Irregular expenditure. These items of expenditure occur on a less regular basis and the amounts involved also tend to vary with usage.
What is irregular expenditure Mfma?
Irregular expenditure is defined in section 1 of the MFMA as follows: “irregular expenditure”, in relation to a municipality or municipal entity, means— (a) expenditure incurred by a municipality or municipal entity in. contravention of, or that is not in accordance with, a.
What is an example of irregular expenditure?
Expenditure resulting from non-adherence to an institution’s delegations of authority is also regarded as irregular expenditure since such delegations are issued in terms of sections 44 and 56 of the PFMA for departments/constitutional institutions/trading entities and public entities respectively.
Why is it important to disclose irregular expenditure?
In order to promote transparency and accountability, auditees must disclose all irregular expenditure identified (whether by the auditee or through the audit process) in their financial statements together with details on how it was resolved; in other words, how much was investigated, recovered or condoned.
What is the definition of fruitless and wasteful expenditure?
Fruitless and wasteful expenditure Expenditure which was made in vain and would have been avoided had reasonable care been exercised. “In vain” is defined as: A transaction, event or condition which was undertaken without value or substance and which did not yield any desired results or outcome.
When does the Auditor General say fruitless and wasteful expenditure?
When the Auditor-General says “fruitless and wasteful expenditure”; what does it actually mean? A dummies’ guide… Every time the Auditor-General releases a report on the state of municipalities, and their compliance with proper financial controls, a term such as “fruitless and wasteful expenditure” is bandied about.
Which is an example of a fruitless attempt?
They made a fruitless attempt to find a solution. It would be fruitless to continue. Recent Examples on the Web Record labels and artists have been working since the 1940s to get radio to pay for playing records, but those efforts have so far been fruitless.
What does it mean when something is fruitless?
— Star Tribune, 28 May 2021 The righteous backlash against the group may ultimately prove to be fruitless. — Adam Epstein, Quartz, 10 May 2021 Regardless, Lillard said that avoiding a matchup can prove to be fruitless. — oregonlive, 16 May 2021 But other experts say adjusting attitudes is a fruitless exercise.
