Page 296 - SAMRC Annual Report 2023-24

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
NOTES TO THE ANNUAL FINANCIAL STATEMENTS

(CONTINUED)

31 MARCH 31 MARCH
2024 2023
R R
38. Irregular expenditure and Fruitless and
wasteful expenditure for the year

Fruitless and wasteful expenditure 1,552 4,617

During the year under review no irregular expenditure was incurred (2023: RNil).

Expenditure relates to interest on the late renewal of motor vehicle licenses; traffic fines and interest on a municipal
account.

The Accounting Authority approved interest on municipal bills totalling of R3,250 being an amount of R108 incurred in the
current year and an amount of R3,142 incurred in 2023. The interest charges were investigated and it was determined that
it was not incurred due to negligence on the part of the staff member (March 2023: R1,300 approved for interest on late
payment of motor vehicle licenses in light of the prevailing circumstances at licensing departments).

Interest charged due to negligence on the part of the staff members and traffic fines paid is recovered from the employees.
An amount of R1,244 was recovered from staff. In the 2022/2023 financial year traffic fines paid in 2021/2022 were recovered
from staff and Interest charged due to negligence on the part of the staff members and traffic fines paid were recovered
from the employees.
39. Deviation from supply chain management regulations

Paragraph 12(1)(d)(i) of Government gazette No. 27636 issued on 30 May 2005 states that a supply chain management
policy must provide for the procurement of goods and services by way of a competitive bidding process.
Paragraph 36 of the same gazette states that the accounting officer may dispense with the official procurement process
in certain circumstances, provided that he records the reasons for any deviations and reports them to the next meeting of
ARIC and the Accounting Authority and includes a note to the annual financial statements.

All deviations were documented and will be submitted to the Accounting Authority or its delegate in terms of the
Delegation of Authority Framework. Deviations were motivated in advance and subsequently approved.

40. Public Finance Management Act (PFMA)
Section 55 (2)
No material losses through criminal conduct were incurred during the period ended 31 March 2024. Irregular and fruitless
and wasteful expenditure incurred has been disclosed in note 38.
Section 54 (2)
In terms of the PFMA and Treasury Regulation 28.3 the entity has developed and agreed to a framework of acceptable
levels of materiality and significance.

294 SAMRC ANNUAL REPOR T 2023-24