QUICK & EASY GUIDE

Mmileng - - 2017/18 Ral Audit -

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.

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