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