NPA Annual Report 2011/2012 - National Prosecuting Authority

NATIONAL PROSECUTING AUTHORITY – VOTE 24 ACCOUNTING POLICIES For the year ended 31 March 20123. Expenditure3.1 Compensation of employees3.1.1 Salaries and wagesSalaries and wages are expensed in the statement of financial performance when the final authorisationfor payment is effected on the accounting system (by no later than 31 March of each year).Other employee benefits that give rise to a present legal or constructive obligation are disclosed in thedisclosure notes to the financial statements at its face value and are not recognised in the statement offinancial performance or position.Employee costs are capitalised to the cost of a capital project when an employee spends more than 50%of his/her time on the project. These payments form part of expenditure for capital assets in the statementof financial performance.3.1.2 Social contributionsEmployer contributions to post employment benefit plans in respect of current employees are expensedin the statement of financial performance when the final authorisation for payment is effected on the accountingsystem (by no later than 31 March of each year).No provision is made for retirement benefits in the financial statements of the department. Any potentialliabilities are disclosed in the financial statements of the National Revenue Fund and not in the financialstatements of the employer department.Employer contributions made by the department for certain of its ex-employees (such as medical benefits)are classified as transfers to households in the statement of financial performance.3.2 Goods and servicesPayments made during the year for goods and/or services are recognised as an expense in the statementof financial performance when the final authorisation for payment is effected on the accounting system(by no later than 31 March of each year).The expense is classified as capital if the goods and/or services were acquired for a capital project or ifthe total purchase price exceeds the capitalisation threshold (currently R5, 000). All other expendituresare classified as current.Rental paid for the use of buildings or other fixed structures is classified as goods and services and notas rent on land.3.3 Interest and rent on landInterest and rental payments are recognised as an expense in the statement of financial performancewhen the final authorisation for payment is effected on the accounting system (by no later than 31 March98