Page 334 - SAMRC Annual Report 2024-2025

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
NOTES TO THE ANNUAL FINANCIAL STATEMENTS

(CONTINUED)

2025 2024
31 MARCH 31 MARCH
R R
39. Irregular expenditure and Fruitless and
wasteful expenditure for the year

Fruitless and wasteful expenditure 217,800 –
Fruitless and wasteful expenditure 47,420 1,552
265,220 1,552

During the period under review irregular expenditure was incurred amounting to R217,800 for the appointment
of legal services, management is considering the appropriate consequence management actions (2024: RNil).

Following the discovery of the irregular expenditure, a decision was taken to review all transactions that were
incurred during the 2024/2025 financial year via a Request for Quotes procurement basis to assess and determine
if they were procured irregularly or not.
Expenditure relates to staff incurring costs for private travel (R43,372); interest on the late renewal of motor
vehicle licenses (R1,671); a traffic fine (R2,075) and interest on Cashsend bank accounts (R2) and theft of a
participant re-imbursement of R300. ( March 2024 expenditure relates to interest on the late renewal of motor
vehicle licences; traffic fines and interest on a municipal account).
The Accounting Authority approved fruitless and wasteful expenditure for the amount of R1,871 being the interest
on the late renewal of motor vehicle licences and the traffic fine for a temporary employee (March 2024:The
Accounting Authority approved interest on municipal bills totaling 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).

During the period under review R45,447 was recovered from staff. In the 2023/2024 financial year 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.

40. 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.

332 SAMRC ANNUAL REPOR T 2025-26