Statistics SA Vote 14 Unauthorised Expenditure

Transcript:Statistics SA Vote 14 Unauthorised Expenditure:
Statistics SA Vote 14 Unauthorised Expenditure SCOPA Risenga Maluleke Statistician-General 17 October 2023 Contents Background Unauthorised Expenditure Change in recognition of Unauthorised Expenditure (UE) Engagements with National Treasury Consequence Management National Treasury Recommendations Stats SA Recommendations & Motivation Background Stats SA incurred unauthorised expenditure in financial year 2015/16 to 2019/20 as defined in section 1 of the Public Finance Management Act No 1 of 1994: (a) overspending of a vote or main division within a vote: 2015/16 – R6.803 million 2017/18 – R57.270 million 2018/19 – R54.395 million 2019/20 – R50.940 million (b) expenditure not in accordance with the purpose of a vote: 2018/19 – R2.745 million Unauthorised expenditure incurred by the department is mainly on compensation of employees due to budget reductions implemented by National Treasury Unauthorised Expenditure – 2015/16 The Population and Social Statistics branch overspent on its baseline allocation by R6.803 million after virements and shifts were applied during the 2015/16 financial year. The overspending was as a result of funding the unfunded mandate relating to the Living Conditions Survey (LCS) used to update the Consumer Price Index (CPI) utilising savings from vacancies and austerity measures. The Department did not overspend on the voted baseline, the over expenditure for programme 3 could not be completely defrayed due to the 8 percent limit prescribed for virements – sec 43 of the PFMA. Treasury Regulations 6.3 and section 5 of the Appropriation Act. As a result, the department surrendered R6.803 million to National Treasury. Unauthorised Expenditure – 2017/18 to 2019/20 National Treasury reduced the Department’s Compensation of Employees (CoE) budget to an extent that the cost of currently filled positions (warm bodies) at the time exceeded the reduced budget allocation. This CoE budget reduction resulted in unauthorised expenditure amounting to R163.877 million as follows: R57.270 million in 2017/18 financial year R48.865 million in 2018/19 financial and R50.939 million in the 2019/20 financial year. Unauthorised Expenditure – 2018/19 The KwaZulu-Natal Citizen Satisfaction Survey (CSS KZN) was undertaken by Stats SA in terms of an agreement entered into between Stats SA and the Office of the Premier (OTP) KwaZulu-Natal with a total budget of R6,754 million over two years. The actual expenditure on the project was R9,499 million, resulting in a shortfall of R2,745 million. Continuous engagements to obtain a refund for the additional funding were unsuccessful, notwithstanding the benefits the project provided to the KZN Provincial Government The shortfall of