Irregular Expenditure
SCM Deviation Register Quality
Review of reported SCM deviations and expansions that convert into irregular expenditure.
Why deviation quality drives irregular expenditure
Deviations from competitive SCM processes and contract expansions are the single largest source of irregular expenditure in South African government, and most of it is avoidable through better register discipline. National Treasury SCM instructions permit deviations only in defined circumstances, and Regulation 36 reporting exists precisely so deviations remain the exception. AuditPro Core scores the deviation register for justification quality, reporting timeliness and conversion into irregular expenditure, giving the accounting officer an early warning before a deviation hardens into a disclosed transgression.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Deviations reported
4 820
▲ 11% vs prior year
Value of deviations
R12.7 bn
Ruled irregular
31%
of value
Properly justified
44%
Deviation value by reason (R bn)
Deviation outcomes
| Reason | Count | Ruled irregular | Irregular % |
|---|---|---|---|
| Emergency | 1820 | 712 | 39 |
| Sole supplier | 1340 | 388 | 29 |
| Impractical bid | 980 | 245 | 25 |
| Contract expansion | 680 | 231 | 34 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Permissible deviation grounds
Deviations are lawful only on grounds such as sole supplier, emergency or impracticality, and each ground demands specific evidence. A deviation recorded without that evidence is irregular from inception regardless of the reason cited.
Expansions and variations
Contract expansions above the permitted threshold without Treasury approval are a common conversion point into irregular expenditure. The register must track the cumulative expanded value against the original award, not each variation in isolation.
Regulation 36 reporting
Deviations must be reported to the relevant treasury and the AGSA within the prescribed period. Late or omitted reporting is itself a control failure that the auditor will raise even where the underlying deviation was justified.
How AuditPro Core Bridges the Gap
- Justification scoring: each deviation is rated against the permissible grounds and required evidence, flagging thin or boilerplate justifications.
- Cumulative expansion tracking: the system aggregates variations against the original award value to catch threshold breaches early.
- Reporting deadline monitoring: Regulation 36 reporting dates are tracked so overdue notifications surface before they become findings.
- Conversion traceability: deviations that become irregular expenditure are linked directly to the resulting register entry for a clean audit trail.
Key Takeaways
- Most irregular expenditure begins as a poorly justified deviation or expansion, so register quality is preventive control.
- Track expansions cumulatively against the original award to catch threshold breaches.
- Late Regulation 36 reporting is a finding even when the deviation itself was sound.
- Scoring justifications early lets management fix evidence gaps before year-end.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.