Entire Document - Chris Hani District Municipality

17.FRUITLESS AND WASTEFUL EXPENDITURECHRIS HANI DISTRICT MUNICIPALITY ANNUAL REPORT 2011 / 2012Fruitless and Wasteful Expenditure is expenditure that was made in vain and wouldhave been avoided had reasonable care been exercised. All expenditure relating toFruitless and wasteful expenditure is accounted for as expenditure in the Statementof Financial Performance in the year that the expenditure was incurred. Theexpenditure is classified in accordance with the nature of the expense, and whererecovered, it is subsequently accounted for as revenue in the Statement of FinancialPerformance. If the expenditure is not condoned by the Council, it is treated as anasset until it is recovered or written off as irrecoverable.18.CHANGES IN ACCOUNTING POLICIES, ESTIMATES AND ERRORSChanges in Accounting Policies that are affected by management have been appliedretrospectively in accordance with GRAP 3 requirements, except to the extent thatit is impractical to determine the period-specific effects or the cumulative effect ofthe change in policy. In such cases the municipality restated the opening balancesof assets, liabilities and net assets for the earliest period for which retrospectiverestatement is practical. Details of Changes in Accounting Policies are disclosed inthe Notes to the Annual Financial Statements where applicable.Changes in Accounting Estimates are applied prospectively in accordance withGRAP 3 requirements. Details of changes in estimates are disclosed in the Notes tothe Annual Financial Statements where applicable.Correction of Errors is applied retrospectively in the period in which the error hasoccurred in accordance with GRAP 3 requirements, except to the extent that it isimpractical to determine the period-specific effects or the cumulative effect of theerror. In such cases the municipality shall restate the opening balances of assets,liabilities and net assets for the earliest period for which retrospective restatement ispractical. Details of Correction of Errors are disclosed in the Notes to the AnnualFinancial Statements where applicable.19.TREATMENT OF ADMINISTRATION AND OTHER OVERHEADEXPENSESThe costs of internal support services are transferred to the various services anddepartments to whom resources are made available.274