HDA Annual Report

ANNUAL REPORT 2023/24

the process was finalised due to resignation and employment contract that came to an end. The remaining seven employees who were responsible for the prior year’s irregular expenditure were given sanctions that included five written warnings, two suspensions without pay and two final written warnings.

Reconciling notes

2023/2024 2022/2023 R’000 R’000

Description

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

-

-

Fruitless and Wasteful Expenditure

(a) Reconciliation of Fruitless and Wasteful Expenditure

-

337

2023/2024 2022/2023 R’000 R’000

Description

742 742

67

Opening balance

Total

404

1,404

18,483

Adjustment to opening balance Opening balance as restated Add: fruitless and wasteful expenditure confirmed Less: fruitless and wasteful expenditure recoverable Less: fruitless and wasteful expenditure not recoverable and written off

The assessment was finalised for all fruitless and wasteful expenditure identified during the current financial period. The balance for the current financial period is R738 thousand and R337 thousand for the prior period after some expenditure was written off in March 2024.

-

337

1,404

18,820

742

67

(b) Details of fruitless and wasteful expenditure (under assessment, determination and investigation)

-

-

2023/2024 2022/2023 R’000 R’000

Description

(4)

(17,483)

Fruitless and wasteful expenditure under assessment Fruitless and wasteful expenditure under determination Fruitless and wasteful expenditure under investigation

Closing balance

2,142

1,404

-

-

Fruitless and wasteful expenditure incurred in prior years and discovered in the current financial period relate mainly to South African Revenue Service’s penalties of R337 thousand. Duplicate payments of R1 million (incurred in 2019/20) and missing petty cash of R1,300 (incurred in 2020/21) were also discovered in the current financial period. The recovery process for duplicated payments and penalties is underway.

689

337

-

-

Total

689

337

No fruitless and wasteful expenditure is under assessment and investigation at the end of the current financial period.

86