a) As disclosed in note 23 to the financial statements, irregular expenditure to the amount of R720 308 was incurred as the entity failed to comply with Supply Chain Management Regulations; and b) As disclosed in note 22 to the financial statements, fruitless and wasteful expenditure to the amount of R1 603 809 was incurred as a result of the following: . The entity failed to comply with its internal policies and procedures regarding insurance claim payments; . Interest and penalties were incurred as a result of late payment on amounts owed to the South African Revenue Service and the Auditor General of South Africa; and . The human resource function was outsourced even though Boxing SA staff received training to perform the function themselves.