QUICK & EASY GUIDE

THREE KINDS OF SPENDING PROBLEMS

Usually there are three kinds of problems when it comes to spending that the auditors might flag or what the Auditor-General terms the “UIF” Factor.

Unauthorised spending:

Spending that goes over budget or wasn’t used for the purpose intended. This can be as result of admin errors or accidents.

Irregular expenditure:

Spending that was incurred “without complying with applicable laws and regulations”. This may be caused by procedures not being followed.

Fruitless and wasteful expenditure:

When pointless spending that could have been avoided, if uncovered. This can be simple things such as not paying suppliers in time and incurring interest.