Economic Development Annual Report

Annual Report 2023/2024 Mpumalanga: Department of Economic Development and Tourism - Vote 6

IRREGULAR,FRUITLESSANDWASTEFUL,UNAUTHORISED EXPENDITURE AND MATERIAL LOSSES 1.1 Irregular expenditure

Reconciliation of irregular expenditure

Description

2023/2024

2022/2023

R’000

R’000

Opening balance

114,658

100,588

Adjustment to opening balance Opening balance as restated Add: Irregular expenditure confirmed Less: Irregular expenditure condoned Less: Irregular expenditure not condoned and removed Less: Irregular expenditure recoverable 1 Less: Irregular expenditure not recoverable and written off Closing balance

-4,604

- -

110,054 13,010

14,070

-79,867

-

43,197

114,658

The opening balance relates to irregular expenditure from previous year on the extension of contracts and non-compliance to supply chain management processes. The opening balance has been reduced by amounts assessed as incorrectly included previously. Investigations and processes related to the remaining balance and new amounts are ongoing, and contributed towards a request for condonation to the value of R32 313 946 which was submitted shortly before the end of the year. The total irregular expenditure confirmed (2023/24) amounts to R13 010 000 of which R11 400 198 is in relation to the extension of contracts without following due processes. The remaining amount of R1 609 802 relates to participation agreement not signed with the service provider. Reconciling notes

Description

2023/2024 2022/2023 R’000 R’000

Irregular expenditure that was under assessment

112

Irregular expenditure that relates to the prior year and identified in the current year Irregular expenditure for the current year

13,010 13,010

13,958 14,070

Total

1

Transfer to receivables

180