RAND WATER ANNUAL REPORT 2023

PFMA COMPLIANCE REPORT National Treasury issued Instruction No. 4 of 2022/23: PFMA Compliance and Reporting Framework, with effective date 03 January 2023. The instruction provides updated principles and compliance reporting requirements to be followed when dealing with Irregular, Fruitless and Wasteful Expenditure and reporting on Supply Chain Management matters. The following is information that should be disclosed by institutions in the Annual Report per the PFMA (1999, as amended) and the relevant frameworks.

PFMA COMPLIANCE REPORT Irregular Expenditure

Reconciliation of Irregular Expenditure

2 023

2 022

Description

R’000

R’000

Opening balance

3 795 601

3 446 500

Prior Period Errors

-

113 733

As restated

3 795 601

3 560 233

513 474

636 194

Add: Irregular expenditure confirmed

(110 013)

(4 746)

Less: Irregular expenditure condoned

1 253 479

Less: Irregular expenditure not condoned and removed

(264 479)

(396 081)

Less: Irregular expenditure cleared

Less: Irregular expenditure recoverable

-

-

Less: Irregular expenditure not recovered and written off

-

-

Closing balance 3 795 601 The irregular expenditure cleared is the expenditure that was confirmed as irregular during the assessment process. However, during the determination process, additional information was reviewed which proved that the expenditure was not irregular. Reconciling notes to the annual financial statement disclosure 2 681 105

2 023

2 022

Description

R’000

R’000

Irregular Expenditure that was under assessment in 2021/2022

-

53 142

Irregular Expenditure that relates to 2021/22 and identified in 2022/23

-

40 318

Irregular Expenditure for the current year

513 474

542 734

Irregular Expenditure incurred in the current year

-

9 660

Additional expenditure on multi-year contracts

513 474

533 075

Total

513 474

636 194

88