HDA Annual Report

ANNUAL REPORT 2023/24

Irregular, Fruitless and Wasteful Expenditure During the financial year under review, the Agency managed to reduce irregular and wasteful spending by enforcing accountability through consequence management, enhancement of internal controls and training of staff. The entity confirmed an irregular expenditure of R36 million which is a reduction from the previous financial year’s irregular expenditure amount of R371 million. The significant reduction in irregular expenditure is due to the enhancement of internal controls and the cancellation of certain projects. No irregular expenditure was recovered or written off during the period under review. Consequence management was implemented against nine employees for irregular expenditure, with sanctions including warnings and suspensions. During the reporting period, R742 thousand was confirmed to be fruitless and wasteful expenditure, which is an increase on the R404 thousand confirmed 7 5 7 0 0 2 4 6 8 10 Programme 1 Annual Targets

in the previous financial year. The previous year’s wasteful expenditure was mainly due to penalties and duplicate payments, which were identified and are under recovery. R45 thousand fruitless and wasteful expenditure was recovered during the current period, and some amounts were written off. Consequence management resulted in a dismissal and warnings for involved employees. Consequence Management The HDA established a Condonation Committee to deal with irregular, fruitless and wasteful expenditure dating back to 2017 as per the required National Treasury framework. The HDA applied consequence management against officials whose actions led to irregular, fruitless and wasteful expenditure as per the recommendations of the Condonation Committee and the Special Investigations Unit (SIU). As and when required, the HDA implements consequence management to manage staff misconduct in line with the Disciplinary Code and Procedure, which is supported by the organisational Code of Conduct Policy. 9 9 2 0 Programme 3

Programme Achievement 2023/24

3

Programme 2

Targets Achieved Targets Not Achieved

Irregular and Fruitless Expenditure

569

600

500

Values (R Millions )

371

400

300

200

36

49,8 15,6

100

20

0,9 0,021 0,404 0,742

0

2019/20 2020/21 2021/22 2022/23 2023/24

Irregular Expenditure ( m ) Fruitless Expenditure ( m )

49,8 15,6

20

569

371

36

0,9

0,021 0,404 0,742

Years

Irregular Expenditure (M)

Fruitless Expenditure (M)

Figure 2: Irregular and fruitless expenditure

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