The National Treasury has come under fire from the auditor-general who gave it a qualified opinion.
In its annual report the auditor-general also found the National Treasury failed to disclose R68 million in fruitless and wasteful expenditure.
This was in relation to payments for the Integrated Financial Management System.
“Section 40(3)(b)(i) of the PFMA requires the department to disclose particulars of all fruitless and wasteful expenditure that had occurred during the financial year in the annual financial statements.
“The department did not record fruitless and wasteful expenditure in note 26 to the financial statements of R68 million (2021: R67 million), in respect of payments for the technical support and maintenance on licences for the Integrated Financial Management System (IFMS) for which no value was derived.
“The balances of fruitless and wasteful expenditure were incorrectly removed in note 26.1 and disclosed as a prior period error in note 26.2 and note 36. Consequently the fruitless and wasteful expenditure balance as at March 31, 2022 is understated by R400 million (2021: R333 million) and the prior period error note is misstated,” said the auditor-general in the report.
The 2021/22 annual report was tabled in Parliament.
Minister of Finance Enoch Godongwana had asked the Speaker to extend the deadline for him to table the annual report by January 15.
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