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Annual Report 2011/2012

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67

REPORT OF THE AUDITOR-GENERAL TO NORTH WEST PROVINCIAL LEGISLATURE ON VOTE NO. 6: DEPARTMENT OF ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION AND TOURISM

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the Department of Economic Development,

Environment, Conservation and Tourism set out on pages 72 to 112, which comprise the

appropriation statement, the statement of financial position as at 31 March 2012, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the departmental financial reporting framework prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2011 (Act No. 6 of 2011) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

68

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Economic Development, Environment, Conservation and Tourism as at 31 March 2012, and its financial performance and cash flows for the year then ended in accordance with the departmental financial reporting framework prescribed by the National Treasury and the requirements of the PFMA and the DoRA.

Emphasis of matters

7. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Irregular and fruitless and wasteful expenditure

8. As disclosed in note 24 to the financial statements, irregular expenditure of R2 223 000 was

incurred in the current year and irregular expenditure from prior years of R13 086 000 is still awaiting condonation.

9. As disclosed in note 25 to the financial statements, fruitless and wasteful expenditure of

R103 000 for the current year and R76 000 from prior years had not yet been resolved.

Material underspending of the budget

10. As disclosed in the appropriation statement, the department has materially underspent the budget on programmes 1, 2, 4, 5 and 6 by R70 642 000. Consequently, the department has not achieved the objectives of these programmes. The underspending of the budget resulted from an amount of R50 million included in the budget for goods and services for the Provincial Growth Fund, which could not be spend following a directive by Provincial Treasury as well as the result of vacancies in these units.

Additional matters

11. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Unaudited supplementary schedules

12. The supplementary information set out on pages 111 to 112 does not form part of the

financial statements and is presented as additional information. I have not audited these annexures and, accordingly, I do not express an opinion thereon.

Financial reporting framework

13. The financial reporting framework prescribed by the National Treasury and applied by the department is a compliance framework. The wording of my opinion on a compliance framework should reflect that the financial statements have been prepared in accordance with this framework and not that they “present fairly”. Section 20(2)(a) of the PAA, however, requires me to express an opinion on the fair presentation of the financial statements. The wording of my opinion therefore reflects this requirement.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

14. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

69

Predetermined objectives

15. I performed procedures to obtain evidence about the usefulness and reliability of the

information in the annual performance report as set out on pages 14 to 51 of the annual

report.

16. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

17. The reliability of the information in respect of the selected programmes/ objectives is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).

18. There were no material findings on the annual performance report concerning the usefulness and reliability of the information.

Additional matters

19. Although no material findings concerning the usefulness and reliability of the performance information were identified in the annual performance report, I draw attention to the following matters below.

Achievement of planned targets

20. Of the total number of planned targets, only 161 were achieved during the year under review. This represents 43% of total planned targets that were not achieved during the year under review. This was mainly due to the fact that indicators and targets were not suitably developed during the strategic planning process

Material adjustments to the annual performance report

21. Material misstatements (39%) in the annual performance report were identified during the audit, all of which were corrected by management.

Compliance with laws and regulations

22. I performed procedures to obtain evidence that the department has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Expenditure management

23. The accounting officer did not take effective steps to prevent irregular and fruitless and wasteful expenditure, as required by section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1.

24. Money owed by the department were not settled within 30 days, as required by section 38(1)(f) of the PFMA and Treasury Regulation 8.2.3.

70

Human resource management and compensation

25. Employees were appointed without following a proper process to verify the claims stated in their applications in contravention of Public Service Regulation 1/VII/D.8.

26. Employees acted in higher vacant posts for more than 12 months in contravention of Public Service Regulation 1/VII/B.5.3.

27. The human resource plan did not include an assessment of the human resources necessary to perform the department’s functions and/ or a gap analysis between the human resources required and the existing human resources with plans to address the identified gaps and/ or a budget analysis that ensures that the plan can be executed within the available budgeted funds as required by Public Service Regulation 1/III/D1.

Procurement and contract management

28. Goods and services with a transaction value below R500 000 were procured without

obtaining the required price quotations, as required by Treasury Regulation 16A.6.1

Internal control

29. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the findings on the annual performance report and the findings on compliance with laws and regulations included in this report.

Leadership

30. There was a lack of appropriate oversight to ensure that matters relating to financial reporting and compliance with laws and regulations previously reported, were addressed.

Financial and performance management

31. Management did not implement controls to ensure that information in the report on predetermined objectives was reliable before submission for audit purposes.

Governance

32. Management did not implement appropriate risk management activities to consider IT risks as the Departmental risk framework has not been aligned with the ICT Directorate key objectives and function.

Rustenburg

31 July 2012

71

Vote 6- NW: ECONOMIC DEVELOPMENT, ENVIRONMENT, CONSERVATION & TOURISM

Appropriation Statement

for the year ended 31 March 2012

Appropriation per programme

2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure

Variance Expenditure

as % of final

appropriation

Final

Appropriation

Actual

Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

1. ADMINISTRATION

Current payment 107,202 - - 107,202 49,980 57,222 46.6% 45,226 42,321

Transfers & subsidies 1,055 - - 1,055 1,053 2 99.8% 203 167

Payment for capital assets 1,000 - - 1,000 729 271 72.9% 1,901 1,485

109,257 - - 109,257 51,762 57,495 47.4% 47,330 43,973

2. INTEGRATED ECONOMIC

DEVELOPMENT SERVICES

Current payment 14,584 - - 14,584 13,280 1,304 91.1% 13,962 10,170

Transfers & subsidies 21,500 - - 21,500 20,573 927 95.7% 20,000 16,508

36,084 - - 36,084 33,853 2,231 93.8% 33,962 26,678

3. TRADE & INDUSTRY

PROMOTION

Current payment 7,919 - - 7,919 6,695 1,224 84.5% 12,973 10,687

Transfers & subsidies 185,731 - - 185,731 184,281 1,450 99.2% 208,895 200,348

193,650 - - 193,650 190,976 2,674 98.6% 221,868 211,035

4. BUSINESS REGULATION &

GOVERNANCE

Current payment 16,427 - - 16,427 14,181 2,246 86.3% 13,588 13,190

Transfers & subsidies 28,505 - - 28,505 28,504 1 100.0% 20,277 20,277

Payment for capital assets - - - - - - 30 29

Payment for financial assets - - - - 7 -7 - -

44,932 - - 44,932 42,692 2,240 95.0% 33,895 33,496

5. ECONOMIC PLANNING

Current payment 4,776 - - 4,776 3,813 963 79.8% 5,135 4,694

4,776 - - 4,776 3,813 963 79.8% 5,135 4,694

6. ENVIRONMENTAL SERVICES

Current payment 69,138 - - 69,138 61,451 7,687 88.9% 65,592 61,306

Transfers and subsidies - - - - - - -50 26

Payment for capital assets 205 - - 205 179 26 87.3% 971 775

Payment for financial assets - - - - - - - 85

69,343 - - 69,343 61,630 7,713 88.9% 66,513 62,192

Subtotal 458,042 - - 458,042 384,726 73,316 84.0% 408,703 382,068

Statutory Appropriation

TOTAL 458,042 - - 458,042 384,726 73,316 84.0% 408,703 382,068

Reconciliation with Statement of Financial Performance

Add:

Departmental receipts 6,320 4,559

Actual amounts per Statement of Financial Performance (Total Revenue) 464,362 413,262

Add: -

Prior year unauthorised expenditure approved without funding

Actual amounts per Statement of Financial Performance Expenditure 384,726 382,068

72


Appropriation per Economic classification

2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure

Variance Expenditure as

% of final

appropriation

Final

Appropriation

Actual

Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 115,107 - - 115,107 105,249 9,858 91.4% 101,721 99,609

Goods and services 104,789 -14 - 104,775 44,025 60,750 42.0% 54,675 42,397

Interest and rent on land 150 14 - 164 126 38 76.8% 30 44

Transfers & subsidies

Provinces & municipalities - - - - - - - 2

Departmental agencies &

accounts

197,015 9,519 - 206,534 205,603 931 99.5% 249,375 237,301

Public Corporations & Private 39,776 -9,670 30,106 28,652 1,454 95.2%

Households - 151 - 151 151 - 100.0% - 24

Gifts and donations 5 -5

Payment for capital assets

Machinery & equipment 1,205 -80 - 1,125 908 217 80.7% 2,836 2,541

Software & other intangible

assets

- 80 - 80 - 80 0.0% 66 65

Payment for financial assets - - - - 7 -7 - 85

Total 458,042 - - 458,042 384,726 73,316 84.0% 408,703 382,068

73


Detail per programme 1 - ADMINISTRATION

For the year ended 31 March 2012

2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure

Details per Sub-Programme

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

1.1 OFFICE OF THE MEC

Current payment 5,732 -273 5,459 4,911 548 90.0% 5,413 5,050

Transfers and subsidies - - 50 34

Payment for capital assets - - -20

1.2 OFFICE OF THE HOD -

Current payment 55,833 -707 55,126 2,409 52,717 4.4% 3,843 2,786

Transfers and subsidies 1,000 1,000 1,000 - 100.0% 100 99

1.3 FINANCIAL MANAGEMENT -

Current payment 10,721 -155 10,566 9,404 1,162 89.0% 8,906 8,472

Payment for capital assets 600 20 620 583 37 94.0% 551 567

1.4 CORPORATE SERVICES -

Current payment 34,916 1,135 36,051 33,256 2,795 92.2% 27,064 26,013

Transfers and subsidies 55 55 53 2 96.4% 53 34

Payment for capital assets 400 -20 380 146 234 38.4% 1,350 938

Total 109,257 - - 109,257 51,762 57,495 47.4% 47,330 43,973

2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure

Programme 1 Per Economic

classification

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 30,251 30,251 26,491 3,760 87.6% 22,491 21,833

Goods and services 76,861 76,861 23,380 53,481 30.4% 22,707 20,135

Interest and rent on land 90 90 109 -19 121.1% 28 35

-

Transfers & subsidies -


accounts

1,055 1,055 1,053 2 99.8% 203 168

-

Payment for capital assets -

Machinery & equipment 1,000 (80) 920 729 191 79.2% 1,835 1,737

Software & other intangible

assets

80 80 80 0.0% 66 65

-

-

Total 109,257 - - 109,257 51,762 57,495 47.4% 47,330 43,973

74


Detail per programme 2 - INTEGRATED ECONOMIC DEVELOPMENT SERVICES


2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure


R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

2.1 ENTERPRISE DEVELOPMENT

Current payment 4,872 4,356 9,228 8,959 269 97.1% 7,393 6,403

Transfers and subsidies 20,000 20,000 19,073 927 95.4% 5,000 1,508

2.2 REGIONAL AND LOCAL

ECONOMIC DEVELOPMENT

Current payment 3,321 428 3,749 2,789 960 74.4% 2,813 2,681

2.3 ECONOMIC EMPOWERMENT -

Current payment 6,391 -4,784 1,607 1,532 75 95.3% 3,756 1,086

Transfers and subsidies 1,500 1,500 1,500 - 100.0% 15,000 15,000

Total 36,084 - - 36,084 33,853 2,231 93.8% 33,962 26,678

2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure


classification

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments


Goods and services 3,890 3,890 3,669 221 94.3% 5,237 1,565



accounts 21,500 (151) 21,349 20,422 927 95.7% 20,000 16,508

Households 151 151 151 - 100.0%

Total 36,084 - - 36,084 33,853 2,231 93.8% 33,962 26,678

75


Detail per programme 3 - TRADE AND INDUSTRY PROMOTION


2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure


R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

3.1 TRADE & INVESTMENT

POMOTION

Current payment 823 823 545 278 66.2% 4,555 4,327

Transfers and subsidies 24,627 24,627 24,631 -4 100.0% 27,402 22,402

3.2 SECTOR DEVELOPMENT

Current payment 6,454 14 6,468 6,013 455 93.0% 7,040 6,242

Transfers and subsidies 126,328 9,670 135,998 135,998 - 100.0% 134,624 134,624

3.3 STRATEGIC INITIATIVES -

Current payment 642 -14 628 137 491 21.8% 1,378 118

Transfers and subsidies 34,776 -9,670 25,106 23,652 1,454 94.2% 46,869 43,322

Total 193,650 - - 193,650 190,976 2,674 98.6% 221,868 211,035

2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure


classification

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 7,026 7,026 6,154 872 87.6% 6,181 6,081

Goods and services 893 (14) 879 528 351 60.1% 6,792 4,606

Interest and rent on land 14 14 13 1 92.9%



accounts 145,955 9,670 155,625 155,624 1 100.0% 208,895 200,348

Public Corporations and

Private enterprises 39,776 (9,670) 30,106 28,652 1,454 95.2%

Gifts and donations - 5 -5

Total 193,650 - - 193,650 190,976 2,674 98.6% 221,868 211,035

76


Detail per programme 4 - BUSINESS REGULATION AND GOVERNANCE


2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure


R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

4.1 REGULATION SERVICES

Current payment 3,004 90 3,094 2,463 631 79.6% 3,827 1,443

4.2 CONSUMER PROTECTION

Current payment 7,329 7,329 6,780 549 92.5% 5,430 5,180

Payment for capital assets - - - 30 29

Payment for financial assets - 7 -7 0.0%

4.3 LIQOUR REGULATION

Current payment 6,063 -116 5,947 4,882 1,065 82.1% 4,331 6,567

4.4 GAMBLING AND BETTING

Current payment 31 26 57 56 1 98.2% 20,277 20,277

Transfers and subsidies 28,505 28,505 28,504 1 100.0%

Total 44,932 - - 44,932 42,692 2,240 95.0% 33,895 33,496

2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure


classification

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments


Goods and services 2,848 2,848 2,179 669 76.5% 1,522 1,144

Interest and rent on land - - 2

- -



accounts 28,505 28,505 28,504 1 100.0% 20,277 20,277


Machinery & equipment - - 30 29

Payment for financial assets - 7 -7

Total 44,932 - - 44,932 42,692 2,240 95.0% 33,895 33,496

77


Detail per programme 5 - ECONOMIC PLANNING


2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure Variance

Expenditure

as % of final

appropriation

Final

Appropriation

Actual

Expenditure Details per Sub-Programme

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

5.1 POLICY AND PLANNING

Current payment 1,554 1,554 1,201 353 77.3% 2,016 1,842

5.2 RESEARCH & DEVELOPMENT

Current payment 1,440 25 1,465 1,360 105 92.8% 1,827 1,667

5.3 KNOWLEDGE MANAGEMENT

Current payment 617 -25 592 104 488 17.6% 1,292 1,185

5.4 MONITORING & EVALUATION

Current payment 1,165 1,165 1,148 17 98.5%

Total 4,776 - - 4,776 3,813 963 79.8% 5,135 4,694

2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure


classification

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 4,037 4,037 3,226 811 79.9% 4,103 4,087

Goods and services 739 739 587 152 79.4% 1,032 607

Total 4,776 - - 4,776 3,813 963 79.8% 5,135 4,694

78


Detail per programme 6 - ENVIRONMENTAL SERVICES


2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure


R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

6.1 ENVIRONMENT MANAGEMENT

SUS DEV POLICY

Current payment 8,952 -1,469 7,483 5,894 1,589 78.8% 15,072 17,781

Transfers and subsidies - - 0.0% 26

Payment for capital assets - - 0.0% 201 90

Payment for financial assets - - 0.0% 85

6.2 PLANNING, IMPACT,

POLLUTION & WASTE

MANAGEMENT

Current payment 31,592 -12,058 19,534 16,123 3,411 82.5% 30,666 15,634

Transfers and subsidies -50

Payment for capital assets 128 128 127 1 99.2% 350 341

6.3 ECOSYSTEM, BIODIVERSTIY &

NATURAL HERBS

Current payment 11,534 9,865 21,399 20,123 1,276 94.0% 11,497 21,011

Payment for capital assets 205 -128 77 52 25 67.5% 380 344

6.4 ENVIRONMENTAL

MANAGEMENT SUSTAIN

RESOURCE

Current payment 17,060 3,662 20,722 19,311 1,411 93.2% 8,357 6,880

Payment for capital assets 40

Total 69,343 - - 69,343 61,630 7,713 88.9% 66,513 62,192

2011/12 2010/11

Adjusted

Appropriation

Shifting

of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure


classification

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments


Goods and services 19,558 19,558 13,682 5,876 70.0% 17,385 14,340

Interest and rent on land 60 60 4 56 6.7% - 9


Provinces & municipalities - - 0.0% - 2


accounts

Households - - 0.0% 24


Buildings & other fixed

structures - - 0.0%

Machinery & equipment 205 205 179 26 87.3% 971 775

Payment for financial assets - - 0.0% - 85

Total 69,343 - - 69,343 61,630 7,713 88.9% 66,513 62,192

79

80


Notes to the Appropriation Statement


1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the

Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on payments for financial assets

Detail of these transactions per programme can be viewed in the note to Payments for financial assets to the Annual Financial

Statements.

4. Explanations of material variances from Amounts Voted (after virement):

4.1 Per programme: Final

Appropriation

Actual

Expenditure

Variance Variance as

a % of Final

Approp.

R’000 R’000 R’000 %

Administration 109,257 51,762 57,495 53%

Included in Goods and services budget is R50m allocated for provincial growth fund, which has not been used pending

instruction from Provincial treasury. R0.400m was allocated for overseas travelling which was not undertaken. Non-fiiling of

vacant positions has resulted in an underspending of R3.760m on compensation of employees

Intergrated Economic Development Services 36,084 33,853 2,231 6%

Non filling of budgeted vacant positions and non-payment of performance bonus resulted in the underspending of R1.083m.

R0.927m savings on transfer payments is as a result of using less than what was budgeted for on feasiblity studies

conducted on identified projects.

Trade and Industry Promotion 193,650 190,976 2,674 1%

R0.500m allocated for Bio-diesel project under tranfer payments could not be transferred as the projects has been kept on

hold pending outcome of feasiblity studies.Non filling of budgeted vacant positions has resulted in an underspending of

R0.876m

Business Regulation and Governance 44,932 42,692 2,240 5%

Non filling of budgeted vacant positions as well as non-payment of performance bonus has resulted in an under-spending of

R1.544m on compensation of employees. This had also resulted in undespening on goods and services related to the

budgeted vacant positions

Economic Planning 4,776 3,813 963 20%

Non-filling of budgeted vacant positions as well as non-payment of performance bonus which was provided for has resulted

in an underspending of R0.811m on compensation of employees.

Environmental Services 69,343 61,630 7,713 11%

Delays in filling of vacated senior positions has resulted in under-spending of R1,7m on compensations of employees.

R2.8m allocated for projects could not be used due to evaluation process which could not be finalised before year end.

81


Notes to the Appropriation Statement


Final

Appropriation

Actual

Expenditure

Variance Variance as

a %

of Final

Approp.

4.2 Per economic classification: R’000 R’000 R’000 %

Current expenditure

Compensation of employees 115,107 105,249 9,858 8.6%

Goods and services 104,775 44,580 60,195 57.5%

Interest and rent on land 164 126 38 23.2%

Transfers and subsidies

Departmental agencies and accounts 206,534 205,603 931 0.5%

Public corporations and private enterprises 30,106 28,652 1,454 4.8%

Households 151 151 - 0.0%

Donations - 5 5 0.0%

Payments for capital assets

Machinery and equipment 1,125 908 217 19.3%

Software and other intangible assets 80 - 80 100%

Payments for financial assets 7 -7

Explanation of variance: Compensation of employees: Non-filling of vacated positions,

non-payment of performance bonuses. During the adjustment budget an amount of R3m

was transferred from within the allocated budget to cater for increase in administration

services brought about by the re-configuration of the department. These positions were

not filled during the year.

Goods and services: Included in goods and services is R50m allocated for provincial

growth fund. This amount was not used during the year pending the environmental

services:on Alien Plant removal and Development of Intergrated Waste Management

Plan. The evaluation process could not be finalised before end of year

Transfer Payments: An amount of R0.927m was saved on feasibility studies conducted

on identified projects. R0.500m for Bio-diesel project could not be transferred pending

the outcome of the feasibility study.

Payment on capital Assets: Appointment of service provider for the furnishing of the

MEC's boardroom and Auditorium could not be finalised before the end of the year.


Statement of Financial Performance


2011/12 2010/11

Note R'000 R'000

REVENUE

Annual appropriation 1 458,042 408,703

Departmental revenue 2 6,320 4,559

TOTAL REVENUE 464,362 413,262

EXPENDITURE

Current expenditure

Compensation of employees 3 105,249 99,609

Goods and services 4 44,025 42,397

Interest and rent on land 5 126 44

Total current expenditure 149,400 142,050

Transfers and subsidies

Transfers and subsidies 7 234,411 237,327

Total transfers and subsidies 234,411 237,327

Expenditure for capital assets

Tangible capital assets 8 908 2,541

Software and other intangible assets 8 - 65

Total expenditure for capital assets 908 2,606

Payments for financial assets 6 7 85

TOTAL EXPENDITURE 384,726 382,068

SURPLUS/(DEFICIT) FOR THE YEAR 79,636 31,194

Reconciliation of Net Surplus/(Deficit) for the year

Voted Funds 73,316 26,635

Annual appropriation 73,316 26,635

Departmental revenue and NRF Receipts 2 6,320 4,559

SURPLUS/(DEFICIT) FOR THE YEAR 79,636 31,194

82


Statement of Financial Position


2011/12 2010/11

Note R’000 R’000

ASSETS

Current Assets 8,943 4,907

Unauthorised expenditure 9 - 440

Cash and cash equivalents 10 8,611 4,393

Prepayments and advances 11 146 -

Receivables 12 186 74

TOTAL ASSETS 8,943 4,907

LIABILITIES

Current Liabilities 8,910 4,907

Voted funds to be surrendered to the Revenue Fund 13 8,906 4,281

Departmental revenue and NRF Receipts to be surrendered to the

Revenue Fund 14 - 126

Payables 15 4 500

TOTAL LIABILITIES 8,910 4,907

NET ASSETS 33 -

Represented by:

Recoverable revenue 33 -

TOTAL 33 -

83


Statement of Changes in Net Assets


2011/12 2010/11

Note R’000 R’000

Recoverable revenue

Opening balance - -

33 -

Debts raised 33

Closing balance 33 -

TOTAL 33 -

84


Cash Flow Statement


2011/12 2010/11

Note R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 484,401 459,766

Annual appropriated funds received 1.1 393,632 385,863

Departmental revenue received 2 90,769 73,903

Net (increase)/ decrease in working capital (314) 471

Surrendered to Revenue Fund (95,176) (80,420)

Current payments (149,400) (142,135)

Payments for financial assets (7) -

Transfers and subsidies paid (234,411) (237,327)

Net cash flow available from operating activities 16 5,093 355

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 8 (908) (2,606)

Net cash flows from investing activities (908) (2,606)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase/ (decrease) in net assets 33 -

Net cash flows from financing activities 33 -

Net increase/ (decrease) in cash and cash equivalents 4,218 (2,251)

Cash and cash equivalents at beginning of period 4,393 6,644

Cash and cash equivalents at end of period 17 8,611 4,393

85


Accounting Policies


86

Vote O6: NW: Economic Development, Environment, Conservation and Tourism

Notes to the Annual Financial Statements


1. Annual Appropriation

1.1 Annual Appropriation

Final

Appropriation

Actual Funds

Received

Funds not requested/

not received

Appropriation

Received

2010/11

Programmes R'000 R'000 R'000 R'000

Admnistration 109,257 58,745 50,512 44,495

Intergrated Economic Development Services 36,084 34,124 1,960 33,893

Trade and Industry Promotion 193,650 191,300 2,350 213,539

Business Regulation and Governance 44,932 42,964 1,968 26,994

Economic Planning 4,776 3,931 845 4,750

Enviromental Services 69,343 62,568 6,775 62,192

Total 458,042 393,632 64,410 385,863

2 Departmental revenue Note

2011/12

R'000

2010/11

R'000

Tax revenue 86,962 72,795

Sales of goods and services other than capital assets 2.1 3,242 83

Transactions in financial assets and liabilities 2.2 15 1,025

Fines, penalties and forfeits 2.3 550 -

Total revenue collected 90,769 73,903

Less: Departmental revenue budgeted * 14 84,449 69,344

Total 6,320 4,559

2.1 Sales of goods and services other than capital assets

Sales of goods and services produced by the department

Administrative fees 3,153 24

Other Sales 89 59

Total 3,242 83

2.2 Transactions in financial assets and liabilities

Other Receipts including Recoverable Revenue 15 1,025

Total 15 1,025

2.3 Fines, penalties and forfeits

Fines 550 -

550 -

93




3 Compensation of employees Notes 2010/11

2011/12

R'000 R'000

3.1 Salaries and wages

Basic salary 73,104 68,511

Performance award 730 289

Service Based 115 86

Compensative/circumstantial 1,343 997

Other non-pensionable allowances 15,418 16,220

Total 90,710 86,103

3.2 Social contributions

Employer contributions

Pension 9,386 8,874

Medical 5,134 4,614

Bargaining council 19 18

Total 14,539 13,506

Total compensation of employees 105,249 99,609

Average number of employees 360 181

4 Goods and services

Advertising 500 515

Assets less then R5,000 4.1 153 506

Catering 1,815 1,427

Communication 2,191 2,421

Computer Services 4.2 374 323

Consultants, contractors and agency/outsourced services 4.3 6,758 6,043

Entertainment - 33

Audit cost – external 4.4 2,006 1,643

Government motor transport 3,399 1,514

Inventory 4.5 2,463 2,876

Operating leases 10,379 9,657

Property Payments 4.6 1,890 2,699

Transport provided as part of the departmental activities 231 11

Travel and subsistence 4.7 10,302 10,959

Venues and facilities 771 383

Training and staff development 519 941

Other operating expenditure 4.8 274 446

Total 44,025 42,397

94




Notes

2011/12

R'000

2010/11

R'000

4.1 Assets less than R5,000

Tangible assets 153 506

Machinery and equipment 153 506

Intangible assets - -

Total 153 506

4.2 Computer Services

SITA computer services 101 97

External computer service providers 273 226

374 323

4.3 Consultants,Contractors and agency/outsourced services

Legal costs 210 42

Contractors 293

Agency and support/outsourced services 6,255 6,001

Total 6,758 6,043

4.4 External audit fees

Regulatory audits 2,006 1,643

Total 2,006 1,643

4.5 Inventory

Learning and teaching support material 10 3

Food and food supplies 80 81

Other consumable materials 328 489

Maintenance material 31 92

Stationery and printing 2,014 2,211

Total 2,463 2,876

4.6 Property Payments

Municipality services 194 47

Property maintenance and repairs 1,689 2,652

Other 7 -

Total 1,890 2,699

4.7 Travel and subsistence

Employee costs

Local 10,211 10,545

Foreign 91 414

Total 10,302 10,959

4.8 Other operating expenditure

Resettlement costs 77 88

Other 197 358

274 446

95




Notes

2011/12

R’000

2010/11

R’000

5. Interest and rent on land

Interest expense 126 44

Total interest and rent on land 126 44

6 Payments for financial assets

Debts written off 6.1 7 85

7 85

6.1 Debts written off

Nature of debts written off

Staff debt written off 7 85

Total debt written off 7 85

7 Transfers and subsidies

Public corporations and private enterprises ANNEXURE

1A 232,755 230,039

Non-profit institutions ANNEXURE

1B 1,500 7,288

Households ANNEXURE

1C 151 -

Gifts and donations ANNEXURE

1D 5

Total 234,411 237,327

8. Expenditure on capital assets

Machinery and equipment 28 908 2,541

Total 908 2,541

Software and other intangible assets - 65

Total 65

8.1 Analysis of funds utilised to acquire capital assets - 2011/12

Voted Funds

R'000

Aid assistance

R'000

TOTAL

R'000

Tangible assets 908 - 908

Machinery and equipment 908 908

Total 908 - 908

96




8.2 Analysis of funds utilised to acquire capital assets – 2010/11

Voted Funds

R’000

Aid assistance

R’000

TOTAL

R’000

Tangible assets 2,541 2,541

Machinery and equipment 2,541 2,541

Software and other intangible assets 65 65

Computer software 65 65

Total 2,606 2,606

9 Unauthorised expenditure Notes

2011/12

R’000

2010/11

R’000

9.1 Reconciliation of unauthorised expenditure

Opening balance 440 440

Less: Amount approved by Legislature with Funding (440) -

Unauthorised expenditure awaiting authorisation - 440

9.2 Analysis of unauthorised expenditure awaiting authorisation

per economic classification

Current - 440

Total - 440

9.3 Analysis of unathorised expenditure awaiting authorization per type

Unauthorised expenditure incurred not in accordance with the purpose

of the vote or main division - 440

Total - 440

10 Cash and cash equivalents

Consolidated Paymaster General Account 8,611 4,393

Total 8,611 4,393

11 Prepayments and Advances

Travel and subsistence 146 -

146 -

97




12 Receivables

2011/12 2010/11

Less than one year

One to three years

Older than three years Total Total

R’000 R’000 R’000 R’000 R’000

Claims recoverable 12.1 26 26 5

Recoverable expenditure 12.2 9 9 6

Staff debtors 12.3 147 147 63

Other debtors 12.4 4 4 -

Total 186 - - 186 74

2011/12

R’000

2010/11

R’000

12.1 Claims recoverable

Provincial departments 26 5

Total 26 5

12.2 Recoverable Expenditure

Disallowance expenditure 9 -

Salary reversal - 6

Total 9 6

12.3 Staff debtors

GG Accidents 25 -

Tax Debt 25 4

Telephone Debt 40 40

Salary overpayment 46 8

Debt out of service 11 11

Total 147 63

12.4 Other debtors

Salary income tax 4 -

4 -

13 Voted funds to be surrendered to the Revenue Fund

Opening balance 4,281 7,129

Transfer from Statement of Financial Performance 73,316 26,635

Voted funds not requested (64,410) (22,840)

Paid during the year (4,281) (6,643)

Closing balance 8,906 4,281

98




Notes

2011/12

R’000

2010/11

R’000

14 Departmental revenue to be surrendered to the Revenue Fund

Opening balance 126 -

Transfer from Statement of Financial Performance 6,320 4,559

Own revenue included in appropriation 2 84,449 69,344

Paid during the year (90,895) (73,777)

Closing Balance - 126

15 Payables - current

Clearing accounts 15.1 1 4

Other payables 15.2 3 496

Total 4 500

15.1 Clearing accounts

Salary income tax 1 4

Total 1 4

15.2 Other payables

Tshwarelo enterprise EBT Rejection 3 -

Outstanding Persal cheque - 132

Outstanding Payment Suppliers - 357

Outstanding salaries - 7

Total 3 496

16 Net cash flow available from operating activities

Net surplus/(deficit) as per Statement of Financial Performance 79,636 26,873

Add back non cash/cash movements not deemed operating activities (74,543) (26,518)

(Increase)/decrease in receivables – current (112) (29)

(Increase)/decrease in prepayments and advances (146) -

(Increase)/decrease in other current assets 440 -

Increase/(decrease) in payables – current (496) 500

Expenditure on capital assets 908 2,606

Surrenders to revenue fund (95,176) (80,420)

Voted funds not requested/received (64,410) (18,519)

Own revenue included in appropriation 84,449 69,344

5,093 355 Net cash flow generated by operating activities

99




17 Reconciliation of cash and cash equivalents for cash flow purposes

Consolidated Paymaster General Account 8,611 4,393

Total 8,611 4,393

100

101


Disclosure Notes to the Annual Financial Statements


Note

2011/12

R'000

2010/11

R'000

18 Contingent liabilities

Liable to Nature

Housing loan guarantees Employees ANNEXURE

2A 123 104

Claims against the Department ANNEXURE

3A 562 580

Total 685 684

19 Commitments

Current expenditure 6,024 8,549

Approved and contracted 6,024 8,549

Capital Expenditure 1,234 1,234

Approved and contracted 1,234 1,234

Total Commitments 7,258 9,783

20 Accruals

30 Days 30+ Days Total Total

Listed by economic classification

Goods and services 1,149 1,149 2,251

Capital assets 8

Total 1,149 1,149 2,259

Listed by programme level

Administration 514 1095

Intergrated Economic Development Service 83 10

Trade and Industry Promotion 75 522

Business Regulation and Governance 40 254

Economic Planning 16 103

Environmental Services 421 275

Total 1,149 2,259

Confirmed Balances with departments - 365

Total - 365

21 Employee benefit provisions

Leave entitlement 5,176 4,015

Thirteenth cheque 3,155 2,991

Performance awards 1,830 1,817

Capped leave commitments 6,856 4,032

Total 17,017 12,855

102




22 Lease Commitments

22.1 Operating Lease expenditure

Land

Buildings & other

fixed structures

Machinery and

equipment Total

R'000 R'000 R'000 R'000

2011/12

Not later than 1 year 5,734 5,734

Later than 1 year and not later than 5 years 312 312

Total lease Commitments - 6,046 - 6,046

2010/11

Not later than 1 year 9,462 172 9,634

Later than 1 year and not later than 5 years 5,539 133 5,672

Total lease Commitments - 15,001 305 15,306

22.2 Finance Lease Expenditure

Land

Buildings & other

fixed structures

Machinery and

equipment Total

R'000 R'000 R'000 R'000

2011/12

Not later than 1 year 467 467


Later than five years - -

Total lease commitments 875 875

LESS: finance costs 89 89

Total present value of lease liabilities 786 786

2010/11

Not later than 1 year 304 304


Later than five years - -

Total lease commitments 385 385

LESS: finance costs 27 27

Total present value of lease liabilities 358 358

103




Note

2011/12

R'000

2010/11

R'000

23 Receivables for departmental revenue

Tax revenue 7,096 6,239

Other 226 226

Total 7,322 6,465

Analysis of receivables for departmental revenue

Opening balance 6,465

Less: Amounts received 6,239

Add: Amounts recognised 7,096 6,465

Closing balance 7,322 6,465

24 Irregular expenditure

24.1 Reconciliation of irregular expenditure


Add: Irregular expenditure - relating to current year 2,223 3,104

Less: Amounts condoned (1,938) (2,890)

Irregular expenditure awaiting condonation 14,877 14,592

Analysis of awaiting condonation per age classification

Current year 1,791 1,185

Prior years 13,086 13,407

Total 14,877 14,592

24.2 Details of irregular expenditure - current year

Incident Disciplinary steps taken/criminal proceedings `2011/12

Payment for accommodation above threshold made without DBAC approval None 108

Payment made with expired contract None 117

Payment made for price adjustment made without DBAC approval None 8

Payment made for grocery for the needy without DBAC approval None 74

Accommodation payment made without DBAC approval None 164

Payment for advert above threshold without DBAC approval None 89

Payment of acting allowance for more than 12 months None 122

Payment for printing of annual report above threshold not approved by DBAC None 101

Payments made on appointments made without adverts None 433

Payment on leased machines (RT contracts) None 567

Payment made with one quotation None 5

Payment made without tax clearance certificate: OFUSS projects None 44

Payments made without 3 quotations None 391

2,223

104




2011/12

R’000

24.3 Details of irregular expenditure condoned

Incident Condoned by (condoning authority)

Accommodation payment above threshold DBAC (190)

Payment made with expired contract DBAC (55)

Payment for printing of annual report DBAC (101)

Payment made for advert DBAC (78)

Price adjustment on security contract DBAC (8)

Overspending on Mega Expo DBAC (934)

Price adjustment on security contract (2011) DBAC (97)

Payment for outside broadcast (2011) DBAC (75)

Payment for MEC's furniture DBAC (21)

Payment speech for catering DBAC (112)

Payment above threshold SHANGAI DBAC (267)

(1,938)

2011/12 2010/11

25 Fruitless and wasteful expenditure R’000 R’000

25.1 Reconciliation of fruitless and wasteful expenditure

Opening balance 76 -

Fruitless and wasteful expenditure – relating to current year 103 205

Less: Amounts condoned - (129)

Fruitless and wasteful expenditure awaiting condonement 179 76

25.2 Analysis of awaiting condonement per economic classification

Current 179 76

Total 179 76

25.3 Analysis of Current Year's Fruitless and wasteful expenditure

2011/12

Incident Disciplinary Steps taken/Criminal proceedings R’000

Interest paid on overdue accounts 38

Penalty charged on non-submission of logsheet on due dates 10

Re-advertising costs: Errata 10

Penalty for not meeting contractual obligations 45

103

105




2011/12 2010/11

R’000 R’000

26 Related party transactions

Payment made

Goods and services 1,000 99

Total 1,000 99

The Following companies are Public Entities of the Department: Mafikeng Industrial Development Zone, North West Development Corporation, Invest North West, North West Parks and Tourism Board and Gambling Board. Annexure 1A entails all payments made to these entities. The above disclosed amount relates to the amount paid by the department for forensic investigation conducted at Parks Board

27 Key management personnel

No. of

Individuals

Political office bearers:

Member of Executive Council 1 1,566 1,468

Officials:

Level 15 to 16 1 - 1,523

Level 14 (incl CFO if at a lower level) 8 5,419 4,523

Total 6,985 7,514

Salary in relation to the Head of Department has not been included in above calculation. The incumbent has been seconded to the office of the Premier as Acting Director General and the department has been reimbursed for his services.

106




28 Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012

Opening balance

Current year adjustments to prior year

balances Additions Disposals Closing balance

R'000 R'000 R'000 R'000 R'000

MACHINERY AND EQUIPMENT 11,482 - 908 462 11,928

Transport assets 1,302 1,302

Computer equipment 4,432 284 - 4,716

Furniture and office equipment 3,742 624 462 3,904

Other machinery and equipment 2,006 - 2,006

TOTAL MOVABLE TANGIBLE CAPITAL

ASSETS 11,482 - 908 462 11,928

Additions

28.1 ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012

Cash Non-cash

(Capital work-in-

progress current

costs and finance

lease payments)

Received current, not paid

(Paid current

year, received

prior year Total

R'000 R'000 R'000 R'000 R'000

MACHINERY AND EQUIPMENT 908 - - - 908

Transport assets - -

Computer equipment 284 284

Furniture and office equipment 624 624

Other machinery and equipment - -

TOTAL ADDITIONS TO MOVABLE

TANGIBLE CAPITAL ASSETS 908 - - - 908

Disposals 28.2 DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH

2012

MACHINERY AND EQUIPMENT Sold for cash

Transfer out or

destroyed or

scrapped Total

disposals

Cash received

Actual

R'000 R'000 R'000 R'000

Computer equipment - - - -

Furniture and office equipment - 462 462 -

TOTAL DISPOSAL OF MOVABLE

TANGIBLE CAPITAL ASSETS 462 462 -

107




Movement for 2010/11

28.3 MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Opening balance

Current year

adjustments to prior year


R'000 R'000 R'000 R'000 R'000

MACHINERY AND EQUIPMENT 3,297 8,890 705 11,482

Transport assets - 1,987 685 1,302

Computer equipment 1,312 3,140 20 4,432

Furniture and office equipment 1,322 2,420 3,742

Other Office Equipment 663 1,343 2,006

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 3,297 8,890 705 11,482

Minor assets

28.4 MOVEMENT IN MINOR ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012

Intangible

assets Heritage

assets

Machinery and

equipment Biological

assets Total

R'000 R'000 R'000 R'000 R'000


Current year adjustments to prior year balances

Additions 153 153

Disposals 7 7

TOTAL MINOR ASSETS 13,208 13,208

Intangible

assets Heritage

assets

Machinery and


assets Total

Number of R1 minor assets - -

Number of minor assets at cost 6,990 6,990

TOTAL NUMBER OF MINOR ASSETS - - 6,990 - 6,990

MOVEMENT IN MINOR ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Intangible

assets Heritage

assets

Machinery &


assets Total

R'000 R'000 R'000 R'000 R'000


Current year adjustments to prior year balances 4 4

Additions 6,064 6,064

Disposals 5 5

TOTAL MINOR ASSETS 13,062 13,062

Intangible

assets Heritage

assets

Machinery and


assets Total

Number of minor assets 6,941 6,941

TOTAL - - 6,941 - 6,941

108




Movable assets written off

28.5 MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2012

Intangible

assets Heritage

assets

Machinery and


assets Total

Assets written off 79 79

TOTAL MOVABLE ASSETS WRITTEN OFF - - 79 - 79

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2011

Intangible

assets Heritage

assets

Machinery and


assets Total

Assets written off 5 5

TOTAL MOVABLE ASSETS WRITTEN OFF - - 5 - 5

29 Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012

Opening balance

Current year adjustments to prior year


R'000 R'000 R'000 R'000 R'000


TOTAL INTANGIBLE CAPITAL ASSETS 65 - - - 65

Movement for 2010/11

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Opening balance Additions Disposals

Closing balance

R'000 R'000


TOTAL INTANGIBLE CAPITAL ASSETS - 65 - 65

109




30 TRANSFER OF FUNCTIONS

During 2010/11 Financial year a decision was taken to re-configure the department of Economic Development and Tourism by transferring Environmental Services programme from DARD. The incorporation of this programme has necessitated the review of the organizational structure

30.1 Statement of Financial Position

Bal per dept

2010/11 AFS before

transfer

Functions per dept

(transferred) / received

Functions per dept


Functions per dept


2010/11 Bal after transfer

2010/11 2010/11 2010/11 2010/11 2010/11

R'000 R'000 R'000 R'000 R'000

ASSETS

Current Assets 4,907 - - - 4,907

Unauthorised expenditure 440 440

Fruitless & wasteful expenditure -

Cash and cash equivalents 4,393 4,393

Other financial assets -

Prepayments and advances -

Receivables 74 74

Loans -

Aid assistance receivable -

Non-Current Assets - - - - -

Investments -

Loans -

Other financial assets -

TOTAL ASSETS 4,907 - - - 4,907

LIABILITIES

Current Liabilities 4,907 - - - 4,907

Voted funds to be surrendered to the Revenue Fund 4,281 4,281

Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 126 126

Direct Exchequer Receipts to be surrendered to the Revenue Fund -

Bank overdraft -

Payables 500 500

Aid assistance repayable -

Aid assistance unutilised -

Non-Current Liabilities - - - - -

Payables -

TOTAL LIABILITIES 4,907 - - - 4,907

NET ASSETS - - - - -

110




30.2 Disclosure Notes

Bal per dept

2010/11 AFS

before transfer

Functions per dept


Functions per dept


Functions per dept


2010/11 Bal

after transfer

2010/11 2010/11 2010/11 2010/11 2010/11

R'000 R'000 R'000 R'000 R'000

Contingent liabilities 220 464 684

Contingent assets -

Commitments 9,783 9,783

Accruals 1,984 275 2,259

Employee benefits 8,254 4,601 12,855

Lease commitments - operating lease 15,306 15,306

Lease commitments - finance lease 358 358

Lease commitments - operating lease revenue -

Receivables for departmental revenue 6,465 6,465

Irregular expenditure 14,592 14,592

Fruitless & wasteful expenditure 76 76

Impairment & other provisions -

Movable tangible capital assets 4,037 7,445 11,482

Immovable tangible capital assets -

Intangible capital assets -

All assets transferred from Department of Agriculture and Rural Development were verified and signed for by both Head of Departments

111


Annexures to the Annual Financial Statements


ANNEXURE 1A

STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

TRANSFER ALLOCATION EXPENDITURE 2010/11

NAME OF PUBLIC CORPORATION/PRIVATE ENTERPRISE

Adjusted appropriation

Act Roll

Overs Adjustments

Total Available

Actual Transfer

% of Available

funds transferred Capital Current

Appro-priation

Act

Public Corporations R'000 R'000 R'000 R'000 R'000 % R'000 R'000 R'000

Transfers

North West Parks & Tourism

- Operations 127,328 127,328 127,328 100% 127,328 126,724

- Infrastructure 9,670 9,670 9,670 100% 9,670 8,000

Invest North West 19,627 19,627 19,627 100% 19,627 17,402

Gambling Board 28,505 28,505 28,504 100% - 28,504 20,277

MIDZ (operations) 10,078 10,078 10,078 100% 10,078 8,969

MIDZ (Infrastructure) 2,691 2,691 2,691 100% 2,691 18,300

NWDC (Project) 36,686 34,804 5,000 29,805 40,600

Theta 55 53 52 50

Donations 50

TOTAL 234,640 - - 197,899 232,755 17,361 215,394 240,372

ANNEXURE 1B

STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS


NON-PROFIT INSTITUTIONS


Act Roll Overs Adjustments Total

Available Actual

Transfer

% of Available

funds transferred

Appro-priation Act

R'000 R'000 R'000 R'000 R'000 % R'000

Transfers

Madikwe Sisal 1,000 1,000 1,000 100% 2,000

Wild Silk 500 500 500 100% 6,000

Bio-diesel 500 500 - 0% 1,000

Total 2,000 - - 2,000 1,500 9,000

ANNEXURE 1C

STATEMENT OF TRANSFERS TO HOUSEHOLDS


HOUSEHOLDS


Act Roll Overs Adjustments Total

Available Actual

Transfer

% of Available

funds transferred

Appro-priation Act

R'000 R'000 R'000 R'000 R'000 % R'000

Transfers

Leave Gratuity 151 151 151 100%

Total 151 - - 151 151 -

ANNEXURE 1D

STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMISSIONS, REFUNDS AND PAYMENTS MADE AS AN ACT OF GRACE

NATURE OF GIFT, DONATION OR SPONSORSHIP 2011/12 2010/11

R'000 R'000

Paid in cash

Sponsorship for 2010 Tourism award winner university of North West 5

Subtotal 5 -


Annexures to the Annual Financial Statements


ANNEXURE 2A

STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2012 - LOCAL

GUARANTOR INSTITUTION

Stannic

Gurarantee in respect

of Housing

original guaranteed

capital

amount

Opening balance 1 April

2011

Guarantees draw

downs during the

year

Guaranteed repayments/ cancelled/ reduced/ released

during the

year Revaluations

Closing balance

31 March

2012

Guaranteed interest for year ended 31 March

2011

Realised losses not

recoverable i.e. claims

paid out

R'000 R'000 R'000 R'000 R'000 R'000 R'000

ABSA 758 64 24 40

Nedbank 200 40 40

Standard Bank 98 19 19

First Rand Bank 129 24 24

- -

-

-

Total 1,185 104 43 24 - 123 - -

ANNEXURE 3A

STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2012

Nature of liability

Opening balance

1 April 2011 Liabilities incurred

during the year

Liabilities paid/ cancelled/

reduced during the year

Liabilites recoverable

(Provide details hereunder)

Closing balance

31 March 2012

R'000 R'000 R'000 R'000 R'000

Claims against the department

Appeal Pick and pay 100 100 -

Payments of logsheets under dispute 80 82 162

Van Rensberg 400 400

-

Total 580 82 100 - 562

112

d

136

5. OTHER INFORMATION

ACRONYMS

AEL - Atmospheric Emission License

BAS - Basic Account System

BCA - Biodiversity Conservation Area

DPSA - Department of Public Service Administration

COP17 - Conference of Parties no. 17

CSIR - Council for Scientific and Industrial Research

DCA - Damage Causing Animal

DEDECT - Department of Economic Development, Environment, Conservation and

Tourism

DTI - Department of Trade and Industry

EIA - Environmental Impact Assessment

EE Centres - Environmental Educational Centres

EIP - Environmental Implementation Plan

EMF - Environmental Management Framework

LED - Local Economic Development

HOD - Head of Department

IDP - Integrated Development Plan

IHI _ Index of Habitat Integrity

INW - Invest North West

MEC - Member of Executive Council

MINMEC - Ministers and Member of Executive Council

MOA’s - Memorandum of Agreements

MIDZ - Mafikeng Industrial Development Zone

NEMBA - National Environmental Management Biodiversity Act

NEMPAA - National Environmental Management Protected Areas Act

NWDC - North West Development Corporation

NWGB - North West Gambling Board

NWP&TB - North West Parks and Tourism Board

140

OHS - Occupational Health Safety

PGDS - Provincial Growth Development and Strategy

PFMA - Public Finance Management Act

PPP - Public Private Partnership

QPR - Quarterly Performance Report

SMs - Senior Management Services

SDI - Spatial Development Initiatives

SCOPA - Standing Committee on Public Accounts

SABS - South African Bureau of Standards

SMMEs - Small Medium Micro Enterprises

SOE - State-Owned Enterprises

SAQA - South African Qualification Authority

S24G - Section 24G

UNESCO - United Nation Education Scientific and Cultural Organization

WIS - Waste Information System

141

LIST OF CONTACT DETAILS

NAME AND SURNAME CONTACT

1.Mr Motsepe Moiloanyane 018 3877 850

2. Ms Constance Molosiwa 018 3877 743

3. Mr K. Sehularo 018 3877720

4. Mr. David Asuamah 018 3877 782

5. Ms Lorato Gasealahwe 018 3877 787

142

Development House (NWDC Building)

1st Floor

Corner Provident Str. & University Drive

Mmabatho, 2735

Tel: (018) 387 7771

Fax: (018) 384 4788 / 387 7901

Pr 272/2012

ISBN: 978-0-621-41125-6

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