Hon Acting Speaker,
The Auditor General’s Report on Accounts of the Free State Provincial Government for the 2010/11 and 2011/12 financial years revealed certain unauthorised expenditure.
This unauthorised expenditure does not form a charge against the Provincial Revenue Fund until it has been authorised by a Finance Act. In terms of Resolution 18/2013, the Provincial Public Accounts Committee recommended that the authorised expenditure be authorised by the Provincial Legislature and the House approved the Committee report on 13 March 2013.
Furthermore, in Finance Act, 2009 (Act No. 8 of 2009) and Finance Act, 2011 (Act No. 1 of 2011), the unauthorised expenditure of the Department of Health was authorised subject thereto that the expenditure forms a direct charge against the budget of the department. The department could not give effect to these Acts and for this reason this Bill also addressed this aspect.
Section 34 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) regulates the authorising of unauthorised expenditure.
Unauthorised expenditure as a result of overspending of a Vote
Unauthorised expenditure of the Department of Health, amounting to R94.319 723.00 million, emanates from the Finance Act, 2009 (R91, 927, 000.00 million) and the Finance Act, 2011 (R18,329,538.00 million) which were not fully implemented and should have been charged against the vote of the department.
The department could only reprioritise R15.963 815 million of the total accumulative amounts as per the two Finance Acts of 2009 and 2011 as a result of additional priorities as well as a negative cash position. This amount therefore now becomes a direct charge against the Provincial Revenue Fund.
Unauthorised expenditure as a result of reasons other than overspending of a vote
Unauthorised expenditure of the following departments are authorised and becomes a direct charge against the Provincial Revenue Fund.
Department of Health: R 61.591 million
The unauthorised expenditure related to the budget programmes of Administration, District Health Services, Emergency Medical Services, Provincial Hospital Services, Central Hospital Services and Health Facilities Management.
Department of Social Development: R395 302.55
Department of Agriculture: R2000.00
Department of Agriculture & Rural Development: R66 551.06
Department of Sport, Arts, Culture and Recreation: R2.688 710.00 million
The details of the unauthorised expenditure as it relates to each of the mentioned departments are set out in the Memorandum to the bill.
Department of Police, Roads and Transport
Unauthorised expenditure for the 2010/11 financial year amounting to R64 017 081.08 is authorised as a direct charge against the Provincial Revenue Fund and a further R3.326 704.97 relating to the 2011/12 financial year is authorised as a direct charge against the budget vote of the department in the 2013/14 financial year.
Hon. Acting Speaker, I request the House to support the Bill.
Thank you.
