The Committee recommends that the Accounting Authority ensures that: a) The organisational structure addresses adequate controls and procedures to ensure the entity maintains full and proper record of its financial affairs. b) The entire accounting record of discretionary grants and administrative expenditure is reviewed and reclassified. c) Disciplinary steps are taken in terms of section 51 (1)(e) of the Public Finance Management Act (PFMA) against any employee who permits irregular expenditure or commits an act which undermines the financial management and internal control systems. d) Irregular expenditure is recorded and disclosed in the financial statements in terms of section 55(2)(b)(i) and (ii) of the PFMA. e) The prior year's errors are adjusted against the reserves. f) The prior year's adjustments are disclosed separately in a note in the annual financial statements according to GRAP 3.