Department of Infrastructure Development Annual Report 2021-2022

ANNUAL REPORT 2021 | 2022

Programme 3 An amount of R14,5 million will be shifted to Programme 2 to defray overexpenditure on compensation of employees which was due to filling of critical posts.

Budget rollover

Final Appropriation

Actual Expenditure

Committed but not paid

Varience

% Spent

% Spent

R’000

R’000

R’000

R’000

R’000

R’000

Compensation of Employees

1,173,087

1,151,014

22,073

98%

-

-

Goods and Services

942,776

932,309

10,467

99% 50,118

100%

Interest and rent on land

21,500

21,500

-

100%

-

-

Transfers and Subsidies

1,031,252

1,031,252

1

100% 288,566

125%

Payments of Capital Assets

79,637

39,567

40,070

49%

-

-

Payments for Financial Assets

768

768

0

100%

-

-

Total

3,249,020

3,176,409

72,611

98% 399, 201

107%

Rollovers relate to commitments made by the Department before end of the year that could not be processed for payment at year-end. Commitments are usually raised as accruals at year-end provide the goods and services were received. Accruals are usually paid in the following year since, at the time of closure of payment system, suppliers failed to upload invoice on the electronic invoicing submission system. The Department spent only 98% of the allocated budget, which resulted in underspending of R72 million and total accruals incurred is R399 million. Although there was an underspending on the infrastructure budget, the Department did not request any rollover as there were no commitments on these at year-end.

Unauthorised expenditure The Department did not incur any unauthorised expenditure for the year ended 31 March 2022.

Fruitless and wasteful expenditure

2021/22

Descriptions

R’000

Opening balance

22 583

Fruitless and wasteful expenditure – relating to prior year

-

Fruitless and wasteful expenditure – relating to current year

21 536

Less: Amounts resolved

-44 119

Closing Balance

0

Based on the above table, the Department reported fruitless and wasteful expenditure of R22 million in relation to prior year, as at the end of the current financial year the entire R22 million had since been resolved. In the current year the Department incurred fruitless and wasteful expenditure of R21 million because of interest charged based on court settlements in relation to projects. The Department issued a circular to all officials to refrain from incurring fruitless expenditure hence there was a reduction in fruitless and wasteful expenditure because of late payments. The above balance of R21 million was referred to the Risk Management Unit for investigation - based on these recommendations, the Department has since written off the expenditure as prescribed by the PFMA (1999, as amended).

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT