What is a fruitless expenditure?

Section 1 of the PFMA defines fruitless and wasteful expenditure as “expenditure which was. made in vain and would have been avoided had reasonable care been exercised”.

What is the meaning of fruitless and wasteful expenditure?

Fruitless and wasteful expenditure refers to expenditure that was made in vain and could have been avoided had reasonable care been taken. Such expenditure includes interest, the payment of inflated prices, and the cost of litigation that could have been avoided.

What does irregular expenditure mean?

Irregular expenditure. These items of expenditure occur on a less regular basis and the amounts involved also tend to vary with usage. Since both the timing and the amount of the payment are less predic pr table it is more difficult to plan for irregular spending.

What is other expenditure?

Other Expenditure means all or any operating costs, expenses, expenditures, outgoings and other payments of the Group (and any other items which, in accordance with IFRS, are treated as operating expenditure), but excluding Capital Expenditure. It does not include expenditure on capital items.)

What is an example of irregular expenditure?

Expenditure resulting from non-adherence to an institution’s delegations of authority is also regarded as irregular expenditure since such delegations are issued in terms of sections 44 and 56 of the PFMA for departments/constitutional institutions/trading entities and public entities respectively.

Why is it important to disclose irregular expenditure?

In order to promote transparency and accountability, auditees must disclose all irregular expenditure identified (whether by the auditee or through the audit process) in their financial statements together with details on how it was resolved; in other words, how much was investigated, recovered or condoned.

Who can condone irregular expenditure?

29. If the National Treasury or the relevant authority does not condone the irregular expenditure in paragraph 28 above and it is confirmed that there is no person liable in law for the irregular expenditure, the accounting officer or accounting authority may write off the irregular expenditure as irrecoverable.

What is irregular expenditure Mfma?

Irregular expenditure is defined in section 1 of the MFMA as follows: “irregular expenditure”, in relation to a municipality or municipal entity, means— (a) expenditure incurred by a municipality or municipal entity in. contravention of, or that is not in accordance with, a.

Is irregular expenditure illegal?

If the National Treasury or the relevant authority does not condone the irregular expenditure in paragraph 28 above and it is confirmed that there is no person liable in law for the irregular expenditure, the accounting officer or accounting authority may write off the irregular expenditure as irrecoverable.