Unauthorised Expenditure — Condonation Pipeline — Audit & Governance Dashboard

Awaiting the legislature's authorisation

Unauthorised expenditure cannot be resolved by management alone; under the MFMA and PFMA it must ultimately be authorised by the council or legislature, or recovered. Tracking each item through that approval pipeline prevents balances from accumulating unresolved year after year, a frequent AGSA observation. AuditPro Core gives a clear status of every item awaiting authorisation so the oversight body can act on a complete, current list.

The Numbers

AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.

Awaiting authorisation

R6.1 bn

Authorised this year

R1.4 bn

▲ 9%

Older than 3 years

R2.8 bn

stalled

Recommended write-off

R900 m

Unauthorised expenditure awaiting condonation by age (R m)

Condonation backlog by sphere

Sphere	Awaiting (R m)	Oldest (yrs)
Local government	3400	7
Provincial	1900	6
National	800	4

Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.

Authorisation by the oversight body

Only the legislature or municipal council can authorise unauthorised expenditure after the fact. Until it does, the amount remains a live balance requiring disclosure and follow-up.

Recovery as the alternative

Where authorisation is not granted and a person is liable, the amount must be recovered. The pipeline must therefore branch toward recovery, not only condonation.

The cost of backlog

Items that sit unauthorised for multiple cycles distort the financial statements and attract repeat findings. Ageing each item keeps the backlog in front of decision-makers.

Evidence for the decision

The oversight body needs the investigation outcome and liability assessment to decide. Assembling that record in advance prevents the decision from stalling for lack of information.

How AuditPro Core Bridges the Gap

Pipeline tracking: each item moves from identified through investigated to authorised or recovered, with clear status.
Exception workflow: items overdue for a council or legislature decision are escalated automatically.
Traceability to source: the supporting investigation and liability assessment travel with each item to the decision-maker.
Audit-ready export: the pipeline reconciles to the disclosure note and supports the submission to the oversight body.

Key Takeaways

Only the council or legislature can authorise unauthorised expenditure after the fact.
Where authorisation is refused and liability exists, recovery is mandatory.
Multi-cycle backlogs distort statements and trigger repeat findings.
Prepare the investigation record before the oversight decision is sought.