Page 285 - Department of Social Development Annual Report 2021

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 MARCH 2021

25.4 Prior period error

Note 2019/20
R’000
Nature of prior period error
Relating to 2019/20 [affecting the opening balance] (321)

Relating to 2019/20 (2 011)
Correction of 2019/20 overstated current Irregular
Expenditure
Total prior period errors (2 332)

The AGSA had identified irregular expenditure cases and it was recorded in the Financial Misconduct
Register. It was later discovered that the National Treasury has approval the extension of the
contract, thus being not irregular. Therefore, the amounts were adjusted from financial misconduct
register. An amount of R426 000 relates to findings identified by AGSA but were resolved and not
included in the management report. An amount of R105 000 relates to The amount was picked up
by AGSA and not recorded in the financial misconduct register and not disclosed in the Financial
Statement

26. FRUITLESS AND WASTEFUL EXPENDITURE
26.1 Reconciliation of fruitless and wasteful expenditure

Note 2020/21 2019/20
R’000 R’000
Opening balance 1 477 1 022
As Related 1 477 1 022
Fruitless and wasteful expenditure – relating to prior 390 -
year
Fruitless and wasteful expenditure – relating to current 1 603 903
year
Less: Amounts recoverable (170) (141)
Less: Amounts Written-off (179) (307)
Closing balance 3 121 1 477

The loss control committee dealt with a large number of cases during the year under review

26.2 Details of current and prior year fruitless and wasteful expenditure – added current year (under
determination and investigation)

Incident Disciplinary steps taken/criminal 2020/21
proceedings R’000
Car Damages 1 132
Hotel and transport no shows 22
Undelivered goods 449
Unused Assets 390
Total 1 993

The cases were investigated and still need to be presented to the Loss Control committee.
Depending on the decisions taken by the committee the cases will be referred to HRM to assist
with disciplinary processes against officials. An amount of R390 000 relates to unused asset that
will be investigated.

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21 285