127363 Gauteng Sports 2020.indb

GAUTENG DEPARTMENT OF SPORT, ARTS, CULTUREAND RECREATION: VOTE 12

4.4.3 Virements/roll overs The details and rationale for virements requested from Gauteng Provincial Treasury per programme are:

• Irregular expenditure is recorded in the notes to the ¿ nancial statements when con ¿ rmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine it, in which case reasons therefore are provided in the note. • Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery, not condoned and removed or written-off. • Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable. Unauthorised expenditure The department did not incur any unauthorised expenditure during the period under review. Unauthorised expenditure is recognised in the statement of ¿ nancial position until such time as the expenditure is either: • approved by Parliament or the Provincial Legislature with funding and the related funds are received; or • approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of ¿ nancial performance; or • transferred to receivables for recovery. Unauthorised expenditure is measured at the amount of the con ¿ rmed unauthorised expenditure. Fruitless and wasteful expenditure The department incurred R9 904,19 in fruitless and wasteful expenditure in the 2019/20 ¿ nancial year due to interest paid on overdue Telkom and Eskom accounts. An amount of R2 455 000 was approved to be written off for a settlement claim, costs incurred for late cancellation of interviews, penalty fees paid to the Department of Environmental affairs, overpayment of value added tax (VAT) to a service provider and interest paid on overdue accounts.

PROGRAMME 1 No virements. PROGRAMME 2 No virements.

PROGRAMME 3 An amount of R491 000 was shifted from buildings and other ¿ xed structures in Programme 3 to buildings and other ¿ xed structures in Programme 4 to defray over-expenditure on the Operation Mabaleng project. PROGRAMME 4 Programme 4 received R491 000 for buildings and other ¿ xed structures from the Rietvallei community library project in Programme 3 to defray over- expenditure on the Operation Mabaleng project. The department has requested a rollover from Provincial Equitable Share funding to the value of R6 611 million and R1 947 million from Conditional Grant funding. The conservative request for roll- overs is based on legitimate invoices payable for goods or services rendered as at 31 March 2020. 4.4.4 Irregular, unauthorised, fruitless and wasteful expenditure Irregular expenditure • During the 2019/20 ¿ nancial year, irregular expenditure increased with R70 677 million. Of these R36 046 million (51,0%) related to legacy contracts concluded in previous years. New instances of irregular expenditure for the 2019/20 ¿ nancial year amounted to R34 631 million (49,0%) of the R70 677 million. Investigations have been initiated and concluded in most of the historical cases but could not be ¿ nalised for condonement; the newly identi ¿ ed irregular expenditure has been reported to be investigated.

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2019/20 ANNUAL REPORT