The Auditor-General has highlighted an escalating trend in
unauthorised, irregular, fruitless and wasteful expenditure in
municipalities over recent years, evident in the audit reports and
summarized in the annual reports. We have also noticed a sense of
uncertainty amongst municipalities on the understanding of how
irregular expenditure should be treated and who has the legislative
power to deal with irregular expenditure. The uncertainty relates
mainly to how municipalities should conclusively deal with such
matters, the process to be followed and the manner in which such
matters should be recorded and disclosed. This training aims to
provide clarity in this regard so that there is a common understanding
on the process to be followed in dealing with these categories of
expenditure.

• By the end of the workshop, participants must be able to:
  • Define unauthorised, irregular, fruitless and wasteful expenditure
  in public entities
  • Identify unauthorised, irregular, fruitless and wasteful expenditure
  in public entities.
  • Manage to avoid or minimise unauthorised, irregular, fruitless and
  wasteful expenditure
  • Report incidences of unauthorised, irregular, fruitless and wasteful
  expenditure

Section 1: Course orientation
• Introduction
• Course design and process
Section 2: Background and Legislative Framework
• Legislative framework
• Constitution of RSA 1996
• PFMA 1999
• Treasury Regulation 2005
• Auditor General reports
• Roles and Responsibilities
• Treasury Guidelines
• Guideline on Unauthorized Expenditure
• Guideline on Irregular Expenditure
• Guideline on Fruitless and Wasteful Expenditure
• Policy Statements: on unauthorised, irregular, fruitless and
wasteful expenditure
• Policy on Fruitless and Wasteful expenditure (SoEs)
PFMA, unauthorized, irregular, or fruitless and
wasteful, expenditure in the organisation
• Background of the procedures for irregular, fruitless and
wasteful expenditure in terms of the PFMA
• Definitions of irregular, fruitless and wasteful expenditure in
terms of the PFMA
• Role of the accounting officer and municipal manager in
terms of the PFMA
• Process to authorize unauthorized expenditure
Section 3: How to minimize/ avoid unauthorised,
irregular, fruitless and wasteful expenditure in
municipalities
a. Unauthorized expenditure
b. Irregular Expenditure
c. Fruitless and wasteful expenditureHigh Risk Areas and Activities where unauthorised,
irregular or fruitless and wasteful expenditure occur
• Procurement and disposal of assets
• Recruitment
• Information technology
• Grants management
• Payroll
• Telephone accounts and the hiring of Post Office boxes
and private post bags
• Guidelines on Virement
• Written estimate of advances i.r.o. subsistence, other
relevant expenses and undertaking to repay
• Policy on provision of GG Transport between residence
and work
• Tariff for GG Transport between residence and work
• Regulations and tariff of allowances payable to
Witnesses in Criminal Cases
• Regulations prescribing the tariff of allowances Payable
to psychiatrists and clinical psychologists who appear
as witnesses in court
• Tariff payable to psychiatrists or clinical psychologists
for an enquiry into the mental condition of an accused
•
Internal accounting and operational of unauthorised,
irregular, or fruitless and wasteful expenditure
• Nature and theory of internal control structures
• Internal operational controls
• Internal accounting controls
• Controls and the detection of unauthorised, irregular or
fruitless and wasteful expenditure
• Controls and the investigation of unauthorised, irregular
or fruitless and wasteful expenditure
• Controls and compliance with the foreign corrupt
practices act of 1977
• Controls and compliance with section 302 and 404 of
the Sarbanes-Oxley act of 2002
Control of Personnel Costs
• Advice in respect of salaries, wages, allowances,
• Paydays
• Method of paying salaries, wages, and allowances
• Unclaimed salaries, wages, and allowances
• Persons seconded to other Departments
• Payments of salaries, wages, and allowances in the case
of transfers
• Salary deductions
• Subsistence and Travel Arrangements
• Scope & Definitions
• Travelling Information
• Trip Authorisation and Financial Implications
• Car Hire and Other Ground Transportation
• Accommodation
• Advances in respect of subsistence and other related
expenses
• Tariff of subsistence allowances payable• Submission, signing and re-imbursement of Claims
• Attendance of Social Functions
• Government Motor Transport Operational Plan
• Travel Arrangements: Non-employees
• Expenses Incidental to Transfers
• Transfer Payment Management
a. Financial Assistance, Grants-in-Aid, Subsidised,
Transfer
b. Payments, Etcetera to Local Authorities and other
Institutions
c. Agency Services
d. Accounting Officer – Additional Conditions
Acknowledgement by payees
e. Unauthorised, Irregular, Fruitless and Wasteful
Expenditure
Section 4: Auditor General Report on Key Findings
from Audits
• Chris Hani Audit Report: 2020
• Alfred Nzo Audit Report: 2020
• Report of the Auditor General: 2020 Section
Section 5: Annexures
Annexure C: Irregular Expenditure Examples
Annexure D: Irregular Expenditure Register

2 Day Training

TBC

Group discounts available on request.

Hybrid Session
Live and In-class

• • Revenue and Expenditure Officials, Budget managers, Audit
    committee members, Board of Directors, Accounting authority,
    Budget committee, Internal control committee, Risk Management,
    Accounting Officers, Human Resource Personnel, Supply Chain
    Officials, Assets Managers, Treasury and Cash Officials, Compliance
    officials, Chief Risk and Risk officials, Financial Managers, CFOs