FORMATNE ASSESSDENT $2$

$[100$ MARKS$]$

Quastion $1$

The Municipal Finance Managenent Act $($MFMA$)$ Circular $$ pravides clarity on the procedures when dealing with unsuthorised, irregular fruitess and wasteful expenditure $($UFF$)$ as per the Municipal Finsnce Management Act of $2050$ MFMit. This Croular aims to provide olarity in this regard and to oreate a common understanding of the process to be folowed in dading with these categories of expendture.

$1\mathrm{.}1$ With reference to MFWA cincular $66,$ analyse the diffenences between unauthorised, inegular fruitless and wasteful expendiure.

$1\mathrm{.}2$ Use the following budget comparison statement to caloulate the unauthorised eipenditure. Demonstrate on each raianoe wheher it is autharised or unauthorised. Hint use final budget vs Actual amounts.

Statiment of Comparisan of Budget and Actual Amounts

$\backslash$table$[[,$Approved budget,Adjutiment,Final Budgei,$\backslash$table$[[$Achal amounts on$],[$comparable baras$]]],[$Expenditure$,,*,,],[$Personnel$,(175093000),(1050000),(175199000),(1695568958)],[$Permunaratan of asuncilors,$(13504000),(201000),(13006000),(12712854)],[$Deprociaton and amortisation,$(673003000),2124000,(55235000),678201177],[$Finance Cousts,$(2391000),1149000,(1242000),(12019197)],[$Debt impairmert,$1891996000),74350000,(748610007,(34129535)],[$Buls purchases,$(2111720007,29090000,(161279000),(156775643)],[$Dontractes Servises,$(45522000),(31827641),(77149661),(223432]],[$General Expenses,$(22393000),(18353399),(24729399),(39955370)],[$Total expenditure,$(6099350000),6730060,(1003200000),[586990854]],[$Optrating surplus,$(70963000),(357620010,35211000,5184343]]$