1. Presentation to the Standing Committee on Public Accounts: Irregular and Fruitless and Wasteful Expenditure 2016/17
16 May 2018

2. Presentation Outline Purpose Irregular expenditure
Fruitless expenditure
Damages and losses
Accruals and Commitments
Recommendations

3. Purpose
The purpose of this presentation is to present to the Standing Committee on Public Accounts SASSA 2016/17 Annual Report; focusing on:
Irregular Expenditure;
Fruitless and Wasteful expenditure and;
Damages and losses;
Accruals and Commitments

4. Irregular Expenditure
SUMMARY OF IRREGULAR EXPENDITURE FOR THE FIN YEAR 2016/17
Description
Amount
Balance carried forward from 2015/16
Add: Irregular expenditure – Current :2016/17
CIDB non compliance
Extension of contracts including lease payments
Local content non compliance
Lease payments: paid to Trifecta/ Delta
Forensic investigations : paid to SAB & T
Medical assessments contract
Work Streams contract
Other matters
Less: Expenditure condoned
( )
Less: Amount not irregular and adjustment and corrections & transfer to debt of R39 669
( )
TOTAL

5. Summary of Progress On Irregular Expenditure as at 31 March 2018

6. Progress on Major Irregular expenditure items disclosed in 2015/16 including adjustments

7. Progress on Major Irregular expenditure items disclosed in 2015/16 including adjustments

8. Progress on Major Irregular expenditure items disclosed in 2015/16 including adjustments

9. Progress on Major Irregular expenditure items disclosed in 2015/16 including adjustments

10. Progress on Major Irregular expenditure items disclosed in 2016/17

11. Other Major Irregular expenditure items disclosed in 2016/17

12. Other Major Irregular expenditure items disclosed in 2016/17

13. Progress on unfinalised cases of irregular expenditure as at 31 March 2018

14. Fruitless and Wasteful Expenditure
SUMMARY OF FRUITLESS AND WASTEFUL EXPENDITURE FOR 2016/17
Description
Amount
Balance carried forward from 2015/16
Add: Fruitless and Wasteful Expenditure – Current :2016/17
Interest and penalties
Hotels- on shows
74 605
Other matters
Less: Expenditure written off
( )
Less: Transfer to accounts Receivable ( money to be recovered)
( )
Less: Transfers to damages and losses register and corrections of prior year amounting to R71 939
( )
TOTAL

15. Summary progress on fruitless and wasteful expenditure as at 31 March 2018

16. Progress on unfinalised cases of fruitless expenditure as at 31 March 2018

17. Progress on Major Fruitless and Wasteful expenditure items disclosed in 2015/16

18. Summary of cases of damages and losses

19. Progress on unfinalised cases of damages and losses as at 31 March 2018

20. Explanations of accruals and commitments

21. Explanations of accruals and commitments

22. Interventions on Irregular, fruitless and wasteful expenditure and damages and losses
Started with a review project of all existing valid contracts to ensure compliance with SCM prescripts be concluded before 31 May 2018 to validate all contracts concluded. Agency is reviewing all existing contracts to check comply to SCM prescripts to resolve any anomaly if found
New bids are pre-audited before the orders are issued to ensure any non-compliance elements are address and resolved beforehand contracts are signed off
Training conducted on local content by DTI and CIDB to all SCM officials to ensure compliance to SCM prescripts (Local content and CIDB Act)
Training provided to procurement structures i.e. Bid Committees and officials etc
SASSA SCM policy will be under review during 2018/19 to ensure it is updated and aligned SCM prescripts and instruction notes
Development and implementation of efficient and effective electronic financial misconduct register on Oracle- ERP- Online register
Consequence management elevated and included as one of the priorities of the Agency in the 2018/19 APP

23. Recommendations
It is recommended that the Standing Committee on Public Accounts (SCOPA) notes SASSA 2016/17 Annual Report focusing on:
Irregular Expenditure;
Fruitless and Wasteful expenditure;
Damages and losses
Notes the Interventions being implemented

24. THANK YOU