HDA Annual Report

ANNUAL REPORT 2023/24

Irregular, Fruitless and Wasteful Expenditure

After the year end, the Board of Directors approved the derecognition of R37,6 million in irregular expenditure that was found to have complied with applicable procurement prescripts. This amount consists of R1,8 million and R35,8 million incurred in 2020/21 and 2019/20 financial periods respectively.

Irregular Expenditure

(a) Reconciliation of Irregular Expenditure

2023/2024 2022/2023 R’000 R’000

Description

(b) Details of irregular expenditure

Opening balance

331,914

360,065

(under assessment, determination and investigation)

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

-

37,609

2023/2024 2022/2023 R’000 R’000

331,914

322,456

Description

Irregular expenditure under assessment Irregular expenditure under determination Irregular expenditure under investigation

36,087

371,369

-

-

-

-

-

-

- -

- -

- (361,911)

Total

-

-

Assessment, determination and investigation of irregular expenditure incurred in the current and prior years were concluded and consequence management was implemented and finalised in line with the HDA’s human resources policies.

-

-

Closing balance

368,001

331,914

(c) Details of irregular expenditure condoned

Reconciling notes

2023/2024 2022/2023 R’000 R’000

2023/2024 2022/2023 R’000 R’000

Description

Description

Irregular expenditure condoned

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

- -

- -

Total

-

-

No irregular expenditure was condoned during the current financial period as this process was in progress at the end of the period.

-

-

36,087 36,087

371,369 371,369

Total

Enhancement of internal controls and cancellation of the emergency housing services project contract in Gauteng which was implemented in the 2020/21 financial year resulted in the significant reduction of irregular expenditure in the current financial period.

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