Seventh Report of the Standing Committee on Public Accounts, dated 26 June 2002:
The Standing Committee on Public Accounts, having considered the Report of the Auditor-General on the financial statements of Vote 35 - Social Development for the year ended 31 March 2001 [RP153-01], reports as follows:
The Committee studied the Report of the Auditor-General and put questions for clarification to the Accounting Officer of the Department on matters which, according to the Committee, needed attention.
After considering written replies from the Department, the Committee took note of the steps taken by the Accounting Officer and the staff to fulfil their obligations in terms of the PFMA concerning financial management at the Department. The Committee resolved not to have a hearing on the report for the year under review, but to await the Auditor-General's Report on the next financial year.
Having noted the above, however, the Committee wishes to bring the following to the attention of the Accounting Officer:
1. Audit opinion
The Committee commends the Accounting Officer and staff of the Department for the Auditor-General's unqualified audit opinion on both the financial and compliance audits, and trusts that future audit opinions will be equally unqualified.
2. Unauthorised expenditure
Noting that R1,253 million relates to over-expenditure, the Committee expressed its concern. As the expenditure charged against the Vote exceeded the total amount voted by R1,253 million, this amount is regarded as unauthorised expenditure in terms of section 34(a) of the PFMA.
Given the adequate explanation provided by the Accounting Officer, the corrective measures implemented by the Department and the fact that the over-expenditure represented only 0,3% of the total expenditure, as well as the fact that the expenditure was still within the tender price limit approved by the State Tender Board, the Committee recommends that this amount be authorised by Parliament.