CGE ANNUAL REPORT

2022/23 ANNUAL REPORT

Financial Statements for the year ended 31 March 2023

Notes to the Financial Statements for the year ended 31 March 2023

Figures in Rand

2023

2022

Fruitless and wasteful expenditure (continued)

Fruitless and wasteful expenditure amounting to R2 753 340 was incurred in the prior year in respect of payments made to Part-time Commissioners as retainer with no timesheets submitted to vouch for actual time of the remuneration. The amount was reclassified in the current year from irregular expenditure to fruitless and wasteful expenditure after management obtained a legal opinion from an independent party to confirm the assessment and classification. Management awaits an assessment outcome from National Treasury-Office of the Accounting General.

In line with the requirements of the Public Finance Management Act and Fruitless and Wasteful Expenditure Framework, investigations are currently underway to determine liability.

Fruitless and wasteful expenditure disclosed in the current year amounting to R1 450 468 is broken down as follows; • R1 012 273 was incurred in the current year in respect of payments made to Part-time Commissioners as retainer with no timesheets submitted to vouch for actual time of the remuneration.The amount was reclassified in the previous year from irregular expenditure to fruitless and wasteful expenditure. Management obtained a legal opinion from an independant party to confirm the assessment and classification. Management awaits for an assesment outcome from National Treasury-Office of the Accounting General. • R205 600 was incured as a result of a policy change on Medical Subsidy for staff not communicated to payroll office due to exit in management. R58 236 was incurred as a result of a policy change on Housing Subsidy for staff not communicated to payroll office due to exit in management. • R132 400 was incurred as a result of staff member who incurred an accident on the 17th of August 2022 from a hired motor vehicle to attend the SALGA event as per invite and third party liability was imposed to the Commission. • The remaining balance comprised of R1 832 of interest imposed on underpayment to SARS resulting in interest and penalties being charged. In the current year traffic fines and unverified assets amounting to R34 884 was written of as bad debts.Cellphones which were lost in the current year amounted to R5 243, investigations are still underway.

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