Page 216 - DSD ANNUAL REPORT 2022-2

PART E: FINANCIAL INFORMATION

Notes of the Annual Financial Statements for the year ended 31 March 2022

Buildings and other Machinery and
2020/21 Total
fixed structures equipment
R’000 R’000 R’000
Later than one (1) year and not later than five (5) years 28 908 - 28 908
Total lease commitments 56 156 137 56 293

The material amount relates to the Leasing of the Department’s office accommodation and parking for the Pretoria Head Office.
Included in this amount is the extended period of additional two (2) years. This amount was not included the previous year.
Machinery and equipment relate to fifty-four (54) photocopy machines that were leased from October 2021.

There are no sub-lease agreements

23.2. Finance leases **

Machinery and Total
2021/22 equipment
R’000 R’000
Not later than one (1) year 4 289 4 289
Later than one (1) year and not later than five (5) years 7 7
Total lease commitments 4 296 4 296

Machinery and Total
2020/21 equipment
R’000 R’000
Later than one (1) year and not later than five (5) years 4 261 4 261
Total lease commitments 10 407 10 407

The Financial Lease amounts relate to cell phone contracts, Government Garage vehicles and data cards contracts. Two cell phone
contracts will be expiring in 2023.

There are no sub lease agreements

24. IRREGULAR EXPENDITURE
24.1. Reconciliation of irregular expenditure
Note 2021/22 2020/21
R’000 R’000
Opening balance 10 541 10 599
Prior period error (229)
As restated 10 541 10 370
Add: Irregular expenditure – relating to current year 24.2 14 667 3 047
Less: Prior year amounts condoned 24.3 (5 856) (2 876)
Closing balance 19 352 10 541

Analysis of closing balance
Current year 14 667 3 047
Prior years 4 685 7 494
Total 19 352 10 541

A closing balance of R19,352,000 has cases amounting to R 3,151 that have been submitted to National Treasury to consider for
condonement. These cases were finalised by the Loss Control Committee and are awaiting a response from National Treasury. A
remainder of cases amounting to R1,764,000 is still under investigation.

216 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2021/22