Streaming issues? Report here
702 logo Gradients 702 logo Gradients
Best of 702
00:00 - 06:00
volume_up
volume_mute

Up Next: Weekend Breakfast with Refiloe Mpakanyane
See full line-up
Best of 702
00:00 - 06:00
Home
arrow_forward
Business

What ‘fruitless’, ‘wasteful’, ‘irregular’ and ‘unauthorised’ expenditure mean

23 May 2018 5:06 PM
Tags:
irregular expenditure
Auditor-general
fruitless and wasteful expenditure
Unauthorised expenditure

When the Auditor-General says “fruitless and wasteful expenditure”; what does it actually mean? A dummies' guide...

Every time the Auditor-General releases a report on the state of municipalities, and their compliance with proper financial controls, a term such as “fruitless and wasteful expenditure” is bandied about.

Here’s a distillation of what those terms actually mean…

Fruitless and wasteful expenditure

Expenditure which was made in vain and would have been avoided had reasonable care been exercised.

“In vain” is defined as:

A transaction, event or condition which was undertaken without value or substance and which did not yield any desired results or outcome.

“Reasonable care” is defined as:

Applying due diligence (careful application, attentiveness, caution) to ensure that the probability of a transaction, event or condition not being achieved as planned is being managed to an acceptable level.

Irregular expenditure

Irregular expenditure is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation.

It also includes expenditure in contravention of, or that is not in accordance with, a requirement of the supply chain management policy, or any applicable by-laws.

Unauthorised expenditure

Unauthorised expenditure refers to expenditure that municipalities incurred without provision having been made for it in the budget approved by the council or which does not meet the conditions of a grant.


23 May 2018 5:06 PM
Tags:
irregular expenditure
Auditor-general
fruitless and wasteful expenditure
Unauthorised expenditure

Recommended

More from Business

Restaurant with spaced table for Covid-19 social distancing

Load shedding yet another blow for struggling SA businesses

11 July 2020 2:19 PM

Eskom is implementing stage two load shedding for a second day, while technicians work to bring generating units back online.

Share this:
Read More arrow_forward

Darkness, no electricity, load shedding

Loadshedding to be implemented from Friday - Eskom COO

10 July 2020 11:03 AM

More generating units have broken down, resulting in the utility battling to meet the high demand for electricity.

Share this:
Read More arrow_forward

wifi-internet-data-broadband-cell-phone-mobile-device-network-providers-123rf

Small Business Focus: How to get your marketing right in a shrinking media world

9 July 2020 8:38 PM

Pavlo Phitidis says focus must be on the customer group you are trying to reach. You've got to get your demographics right.

Share this:
Read More arrow_forward

broken-heart-broke-money-coins-finances-love-relationship-divorce-break-up-123rf

Personal Finance Feature: Julia - The super saver

9 July 2020 8:02 PM

Though leaving corporate to venture into tourism has been a big test of resilience, she is still happy with her decision.

Share this:
Read More arrow_forward

180710sactwu-strikejpg

SA is becoming a country of old people. Median age has risen from 23 to 27

9 July 2020 7:30 PM

Lumkile Mondi says skills and knowledge that have driven a lot of the growth in the past are going to be undermined.

Share this:
Read More arrow_forward

190430-joburg-soca-edjpg

City of Joburg tables R68.1bn budget for 2020/2021

9 July 2020 5:25 PM

This follows several delays which saw the Gauteng government throw the book at the city’s council threatening to place it under administration.

Share this:
Read More arrow_forward

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Supersaver Julia has changed lives, and she can change yours! – Bruce Whitfield

9 July 2020 3:00 PM

Need the inspiration to save? The Money Show’s Bruce Whitfield interviews “Supersaver Julia” at around 7:15 pm tonight.

Share this:
Read More arrow_forward

200106-daniel-mminele-edjpg

Daniel Mminele on his shapeshifting career

8 July 2020 8:43 PM

Absa CEO Daniel Mminele says they had to transition very quickly within a very space of time into operating in a new normal.

Share this:
Read More arrow_forward

171227prieska-arrestjpg

Payment methods ... the good, the bad and the ugly

8 July 2020 8:14 PM

Wendy Knowler says it is expensive to issue or bank a cheque. For example, to deposit a cheque can cost well over R100.

Share this:
Read More arrow_forward

123rf A pile of two hundred rand notes, South African currency money

For the first time in SA there is a specific law on how banks treat customers

8 July 2020 7:42 PM

Caroline Da Silva of the FSCA says they will look into patterns of complaints to see how to change a bank's behaviour.

Share this:
Read More arrow_forward