gauteng province...the gauteng department of finance was established as a separate department from...
TRANSCRIPT
FINANCEREPUBLIC OF SOUTH AFRICA
GAUTENG PROVINCE
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Gauteng Provincial Government | Finance | Annual Report 2012/2013
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Contents
Section 1Executive Summary ................................... 4
Section 2Departmental Overview ........................... 10
Section 3Performance Report ................................ 16
Section 4Annual Financial Statements .................. 48
Section 5Outlook for the Coming Year ................. 121
Section 6Human Resource Oversight Report ...... 125
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Gauteng Provincial Government | Finance | Annual Report 2012/2013
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AFS Annual Financial Statements
AG Auditor General
APP Annual Performance Plan
BBBEE Broad Based Black Economic Empowerment
CFO Chief Financial Offi cer
DORA Division of Revenue Act
DPSA Department Of Public Service & Administration
EXCO Executive Committee
GCR Gauteng City Region
ERM Enterprise Risk Management
GBN Gauteng Broadband Network
1GBPS 1 Gigabyte Per Second
GDF Gauteng Department of Finance
GoL Gauteng Online
GPT Gauteng Provincial Treasury
GPG Gauteng Provincial Government
HOD Head of Department
HR Human Resources
ICT Information and Communications Technology
IFS Interim Financial Statement
LAN Local Area Network
IM Inventory Management
IYM In-Year Monitoring
M & E Monitoring & Evaluation
MEC Member of Executive Committee
MFMA Municipal Finance Management Act
MPAT Management Performance Assessment Tool
MTEF Medium Term Expenditure Framework
MTBPS Medium Term Budget Policy Statement
NT National Treasury
MTSF Medium-term strategic framework
NDP National Development Plan
NPF National Planning Frameworks
PFMA Public Finance Management Act
PWD People with Disabilities
SMART Specifi c, Measurable, Achievable, Relevant and Time-Bound
VOIP Voice Over Internet Protocal
WAN Wide Area Network
Acronym/Abbreviation Description
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Section 1EXECUTIVE SUMMARY
Gauteng Provincial Government | Finance | Annual Report 2012/2013
4The Gauteng Department of Finance was established as a separate department from the Gauteng Treasury with effect from 01 April 2012. The department’s new mandate seeks to bridge the technology divide amongst the citizens. This will entail creating an ICT-enabled government environment to enhance the delivery of services.
This is our last Annual Report for this political term of offi ce. When we resumed offi ce in 2009, we committed ourselves to be an activist, developmental and interventionist department. This outlook has gone a long way in providing solutions to many challenges that our society is faced with. We committed ourselves into forming critical partnerships with our stakeholders so we work hand in hand to deliver critical service delivery priorities.
Our on-going discussions with our partners, has played a critical role in learning and developing new ICT models that will make our work more effective. The ICT Summit held last year was such an engagement and a real eye opener for the department, bringing all experts in the ICT sector to share their knowledge with us. I must say, we learned a great deal and we are already in the process
of implementing some of the key resolutions of the Summit such as exploring the capabilities of Mobility and introducing Cloud Computing to the Province. We have commenced moving all our emails, and systems will follow to the Cloud environment. This will ensure that our systems and data are secured and the system downtime that we usually experience is kept at a minimal. This will ensure focus on service delivery and systems that are an enabler of service delivery are fully functional.
This will also see the department provide a holistic ICT approach to assist departments deliver effi cient services through the GPG ICT Strategy.
Our new focus in ICTs is not a new phenomenon as it has always been at the core of our existence in the shared services environment. We have over the years delivered on crucial ICT projects under the auspices of e-Government such as ERP Systems, Gauteng Online (now e-Learning) and the Gauteng Broadband Network in order to enhance our service delivery processes.
However, over the years we have learnt critical lessons through the implementation of these systems. Amongst others; the reliance on consultants for skills transfer - which has been a slow process, vital ICT skills get
MEC ForewordAs we bow out, we are certain that we have laid a solid foundation to improve the lives of the people of Gauteng.
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poached by the private sector and the current ICT infrastructure in the Province is too fragmented with many systems sitting on different platforms whilst it is also ageing and needs to be replaced.
As part of the overall plan to consolidate our programme towards 2014, GDF will place particular emphasis on the implementation of two provincial government’s flagship ICT projects, the e-Learning Programme and the Gauteng Broadband Network.
We have, however, taken a decision to review the Gauteng Online Schools Programme (now e-Learning) in order to incorporate e-Learning as part of the schooling curriculum and merge it with the Gauteng Broadband Network (GBN) once it has been built. Through the broadband initiative, we want to provide an affordable network for government, business and citizens.
As the operational centre of the provincial government, GDF will continue to contribute towards job creation and inclusive economic growth. In addition to increasing the number of people who access the Job Centre located at the Thusong Service Centre in Maponya Mall, GDF will continue to streamline the recruitment processes of the
provincial government, making it easier for candidates to access job opportunities offered by various departments.
As we bow out, we are certain that we have laid a solid foundation to improve the lives of the people of Gauteng. I would like to thank HOD Stewart Lumka, his team of executives and the rest of the staff members of the GDF for a job well done.
Mandla Nkomfe
Member of Executive Council: Finance
Gauteng Provincial Government | Finance | Annual Report 2012/2013
6The 2012/2013 fi nancial year was a signifi cant period for the Gauteng Department of Finance. It marked the fi rst year of implementing our ICT driven strategy, improvement of ICT for the provincial government, corporate governance, and facilitation to bridge the digital divide. This new mandate of the GDF sought to address the:
• Aged network that adversely impacts the province’s ability to provide effective services through the utilisation of information technology
• Incongruent infrastructure systems deployed by the different provincial departments, and the
• Disproportionate allocation of infrastructure resources, which hindered the optimisation of our computing competences
In order to address the aforementioned challenges, we invited proposals for the implementation of the Gauteng Broadband Network and the e-Learning Solution. These flagship projects are estimated to moderate our challenges, and also improve our delivery of universal access to broadband for all citizens.
During June 2012, we hosted the inaugural Gauteng Provincial Government’s ICT Summit. This event was our effort to improve collaboration with strategic stakeholders. It attracted a large number of ICT industry representatives, including manufacturers, intermediaries, private and public sector users. As a result, it has been included on the international calendar of annual ICT events.
Our Gauteng Auditing Services (GAS) continued to provide internal auditing services to the Provincial Government. This involvement was consistent with our strategic outcomes and approved internal audit plans. In our attempt to enhance GAS’ operational capacity, we fi lled several vacancies during the year, and recruitment processes are currently underway for the remaining vacancies. These intermediations enabled GAS to expand their scope to include IT risk assessments in all departments, and are intended to facilitate the realisation of clean audits by all provincial departments at the end of the 2013/14 fi nancial year.
On the procurement front, we confi rmed that all service providers were paid within the stipulated 30-days. To this end, 99,5% of all invoices received were processed within
HOD Executive SummaryThrough the employment of prudent fi nancial management processes, we spent 98% of our voted funds during the 2012/2013 fi nancial year.
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the service level agreement of four working days, and we registered all vendors on our database of suppliers within the service level agreement of 12-working days. Additionally, we captured all transversal contracts on our contract management system within 30-days. These efforts enabled the provincial government to pay in excess of 85% of all its service providers within 30-days during this fi nancial year.
In an effort to improve and provide customer driven services, and make government employment opportunities accessible to all citizens, we launched the e-Recruitment solution for job seekers - which provided easy access to available career opportunities in the province. This solution also assisted applicants in saving money on postage, photocopying of documents, and travelling costs to submit their employment applications to the various Departments. We deployed this system in order to realise the provincial government’s strategic priority of creating decent employment through inclusive economic growth, and to achieve an effi cient, effective, and development oriented public service.
Through the employment of prudent fi nancial management processes, we spent 98% of our voted funds during the 2012/2013 fi nancial year. Internal fi nancial control systems were strictly adhered to, which included periodical monitoring of our budgets against expenditure. Consequently, we incurred the bare minimum in unauthorised expenditure.
In line with our value statement of a caring organisation, we emphasised and promoted career development and training. We then supported these statements by awarding study bursaries to numerous offi cials to pursue their chosen academic and professional careers. These interventions were deemed necessary to actualise our aspiration of becoming a continuously learning organisation.
It is according to this background that we present to you the Annual Report for GDF for the 2012/13 fi nancial year, which provides details of our performance against set targets.
Mr Stewart Lumka
HoD: Gauteng Department of Finance
Section 2DEPARTMENTAL OVERVIEW
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Legislative and Other MandatesThe Gauteng Department of Finance derives its mandate from the following Legislation:
• The Constitution of the Republic of South Africa (Act 108 of 1996)
The Mandate of and environment within which National, Provincial and Local Government Financial Departments and Treasuries operate, is specifi cally described in Chapter 13: General Financial Matters.
• Division of Revenue Act
Provides for the equitable division of revenue raised nationally, inclusive of conditional grants, amongst the three spheres of government, and matters incidental thereto.
• Basic Conditions of Employment Act, 1997 (Act 75 of 1997)
Provides regulatory prescrip ts, in addition to the Public Service Act, 1994 and the Public Service Regulations, 2001, regarding the conditions of employment of staff in the Gauteng Government.
• Borrowing Powers of Provincial Government Act, 1996 (Act 48 of 1996)
Provides norms and conditions which the Department must adhere to in negotiating loans for the Provincial Government.
• Employment Equity Act, 1998 (Act 55 of 1998)
Regulates the processes and procedures of the Department in achieving a diverse and competent workforce broadly representative of the demographics of Gauteng, and eliminating unfair discrimination in employment towards implementing employment equity.
• Intergovernmental Fiscal Relations Act, 1997 (Act 97 of 1997)
Defi nes the role of the Minister of Finance and Economic Development and that of the Department Finance as representatives of the Provincial Government, in promoting co-operation between other spheres of government on fi scal, budgetary and fi nancial matters; to provide insight into the prescribed processes for the determination of the equitable share and allocation of revenue raised nationally and for matters in connection therewith.
• Labour Relations Act, 1995 (Act 66 of 1995)
To regulate and guide the Department in recognising and fulfi lling its role in effecting labour harmony and the democratisation of the workplace.
• Municipal Finance Management Act (2004)
To support and monitor fi nancial management in municipalities.
• Preferential Procurement Policy Framework Act (2000)
Provides a framework for the implementation of preferential procurement policy.
• Promotion of Access to Information Act, 2000 (Act 2 of 2000)
To give effect to the constitutional right of access to any information held by the State and any information that is held by another person and that is required for the exercise or protection of any rights; and to provide for matters connected therewith.
• Public Finance Management Act, 1999 (Act 1 of 1999)
Regulates fi nancial management in the Department to ensure that all revenue, expenditure, assets and liabilities of the Department are managed effi ciently and effectively; to provide for the responsibilities of persons entrusted with fi nancial management in the Department and to provide for matters connected therewith. To fulfi l all Department responsibilities with respect to other departments and public entities.
• Public Service Act, 1994 (Act 103 of 1994)
Provides for the organisation and administration of the
Department and for human resource management which
includes the regulation of conditions of employment,
terms of offi ce, discipline, retirement and discharge of
staff members of the Department and matters connected
therewith.
• Gauteng Tender Board Repeal Act, 2002
Gives effect to new procurement reform initiatives in Gauteng.
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• Occupational Health and Safety Act, 1995
Provides a framework for the standards and requirements for workplaces, facilities and employee health and safety.
• The National Archives Act, 1996
Provides for the archiving and storage and accessibility of information, and for the manner in which government bodies store documents, papers and records.
• Public Service laws Amendment Act, 1997
Regulates the functions and conditions of service of heads of provincial departments and the conditions of service of heads of organisational components; provides for the appointment of persons on the grounds of policy considerations; and makes provisions in connection with ineffi ciency and misconduct
• Promotion of Administrative Justice Act, 2000
Gives effect to the right to administrative action that is lawful, reasonable and procedurally fair and to the right to written reasons for administrative action as contemplated in section 33 of the Constitution of the Republic of South Africa.
• Prevention and Combating of Corrupt Activities Act, 2004
The Prevention and Combating of Corrupt Activities Act makes corruption a crime. It covers anyone working for government (such as Ministers, department staff, and the police) and people outside of government (like someone working for a business).
• Government Employees Pension Law, 1996 and 2004 Amendment
Gives effect to frameworks that governs pension fund contributions, management and pay-outs for employees in South Africa.
Vision, Mission, Purpose Statement, Strategic Objectives and ValuesTo be an activist and interventionist department; providing and operational support to the Province, that will maximise service delivery through ICT towards the achievement of inclusive growth. Illustration of the GDF vision is as follows:
Developmental: To mobilise towards a common understanding of the strategic agenda of the Province. To rally together, a partnership. A focus on impact –A department able to mobilise the province resources of GPG towards impact-the achievement of provincial priorities. To focus on both the capacity of the state and sustainability of provincial resources.
Activist: To be proactive, not passive. The GDF should participate in strategy planning sessions of the departments to better understand their business and ICT needs and to be able to provide appropriate solutions. To get involved, and be forward looking. To be champion-an activist through technology innovation and research.
Interventionist: To be proactive intervening-we need systems and capacity (e.g. rapid response team). We must question how we can best utilise tools such as early warning systems.
Strategic: To provide leadership and direction in all matters pertaining to technology corporate governance. This will require a fore-sighting capacity. The focus is on sustainability and affordability of government systems and processes. We need the ability to predict and to be able to navigate the province in terms of optimal resource utilisation.
GDF Purpose StatementTo improve ICT and corporate governance, making Gauteng a sound, innovative integrated and connected government
The GDF encompasses the ethos of the Batho pele principles namely:
ConsultationWe can only assume to know what our customers want. The only way we can fi nd out for certain is by asking them. This can be done through surveys, questionnaires, meetings, suggestion boxes, izimbizo and by talking to our customers. It’s important to report back to customers so they know what to expect, and to our staff so they know what is expected from us.
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Service StandardsCitizens should be told about the level and quality of the services they receive .If possible they should be given an opportunity to choose the service they want. The standards we set are the tools we can use to measure our performance, and therefore need to be realistic depending on available resources. We should also be able to measure these standards so that everyone can see if they are being met.
AccessThere is much more involved when referring to access. It means making it easy for our customers to benefi t from the services we provide. Easy access can be made possible by; having wheelchair ramps, disabled parking bays, taking our services out to the community. Staff attitude may determine how approachable your component/directorate/department is.
CourtesyWe must be polite and friendly to our customers. Customers should be treated with respect and consideration. We must always be willing to assist. Telephone etiquette is vital. All our correspondence must be respectful.
InformationCitizens should be given full accurate information about the public services they are entitled to receive. Information is about reaching all our customers to make sure they are well informed about the services our department provides. This may be done in a number of ways-for example through newspapers, radio, posters and leaflets. It’s important to remember that different customers have different needs and they do not all speak the same language.
Openness and TransparencyWe should be open about our day to day activities, how much our departments receive, how that money is spent. This information should be available to the public. Annual reports, strategic plans, service commitment charters, etc must be made available to the public .We should tell our customers where to complain and how to do it.
RedressRedress is making it easy for people to tell us if they are unhappy with our service. We should train staff to deal with complaints in a friendly, helpful manner. An apology, full explanation and effective, speedy remedy should be offered when the promised standards of service have not been delivered. When complaints are made, we must give our customers a sympathetic ear. Have positive responses to complaints.
Value for MoneyWe need to make the best use of available resources. Avoid wastage of time, money, and other resources. It also means eliminating waste, fraud and corruption and fi nding new ways of improving services at little or no cost.
Encouraging Innovation and Rewarding ExcellenceInnovation: using new ways of doing things. Encourage partnerships with different sectors in order to improve service delivery. Rewarding Excellence is also about rewarding the staff who “go the extra mile” in making it all happen.
Customer ImpactIf we put all the Batho Pele Principles into practice, we then increase the chances of improvement in our service delivery. This in turn will have a positive impact on our customers. It is about how the nine principles link together to show how we have improved our overall service delivery. Here we look at the benefi ts we have given to our customers both internally and externally.
Leadership and Strategic DirectionOur leaders must create an atmosphere which allows for creativity. Management must ensure that goals are set and that planning is done.
MissionWe are a strategic, proactive and value adding partner that will promote and enhance effective and effi cient service delivery, by:
• Instilling sound corporate governance
• Ensuring innovation and leading edge technologies and processes
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• Providing enabling solutions for GPG departments to deliver core services
• Providing expert skills that GPG can leverage
• Provide Province with IT capability
• Ensuring continuous improvement and operational effi ciencies.
Strategic Objectives• Provide a modern, reliable and secure ICT infrastructure
that meets GPG needs
• To provide administrative, fi nancial and management support services that enable the GDF to achieve clean audit.
• Provide customer focused value add services that enhance service delivery
• Promote sound corporate governance in the province through an effective internal control environment.
• Provide advisory and transactional services in Human Capital Management and Strategic procurement services
• Be a preferred employer, attracting and retaining highly skilled and performing individuals
The GDF has developed a comprehensive ICT strategy for the province. This strategy has been informed by the objective that seeks to create connectivity to every household, Small, Micro and Medium Enterprises (SMMEs), communities, government institutions (schools, clinics etc.) and citizens across Gauteng.
This will, amongst other things, lower the cost of doing business for vital economic players such as SMMEs and increase economic participation by the broader society.
In the long run, this will contribute towards reshaping the provincial economy to be more inclusive and broad-based by opening up new opportunities for the marginalised communities. The strategy also takes Green ICT consideration and expounds on how the province can reduce the carbon footprint whilst at the same time ensuring economic growth and development.
The main objectives of the Provincial ICT strategy is operationalised and achieved in the province by:
• Providing universal access to broadband (as defi ned by the national policy) for citizens, businesses as well as government institutions.
• Building the network infrastructure and information super-highway to encourage the development of advanced workforce with better ICT skills.
• Enhancing economic productivity through ICT infrastructure development in order to lower the cost of doing business and increase connectivity to companies especially SMMEs.
• Increasing the ICT skills capacity within the public and the private sectors to create a pool of ICT Practitioners.
• Improving service delivery by providing high quality ICT services through e-government.
• Reducing the carbon footprint of the province through Green ICT.
ValuesIntegrity
Professionalism
Service Excellence
Commitment
Customer Centric
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Section 3PERFORMANCE REPORT
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2. Service Delivery Environment
2.1 Main Service for Service Delivery Improvement and StandardsMain Services Actual Customers Potential
CustomersStandard of Service Actual
Achievement against
Standards
Gauteng Audit Services GPG Departments N/A The internal audit is completed within budgeted time as per engagement letter 48%
Procurement Services GPG Departments N/A
Completion of RFP Process (Award of contract) within 90 working days from date of receipt of complete request to fi nalisation of Department Acquisition Council (DAC) submission or in line with the agreed project plan.
100%
Hire to Retire GPG Departments N/A
Job evaluation; providing job grades and close-out reports for single evaluations conducted within 8 working days, if the job description has to be developed as well.
165%
Technology Support Services GPG Departments N/A
Internet and intranet is available to users in the Gauteng Provincial Government departments 715 hours per month.
98%
Forensics GPG Departments N/A
Forensic Investigations are conducted on behalf of the Department within 5 working days of the receipt of approved engagement letter from Department.
100%
Consultation Arrangements for Customers
Type of Arrangement Actual Customer Potential Customer
Actual Achievements
Service Review Meetings GPG Departments N/A 4 Meetings Annually (1 Meeting per quarter)
Service Delivery Access Strategy
Access Strategy Actual Achievements
Service Level Agreement (SLA) 12 SLA signed with GPG departments
Service Information Tool
Type of Information Tool Actual Achievements
Service Standard Performance Reports 4 Reports
Complaint Mechanism
Complaint Mechanism Actual Achievements
Gauteng Department of Finance has a SAP system with the GPG Hotline where all complaints are logged, escalated, followed-up, and closed to the satisfaction of the client or citizen.
98% Complaints Resolved.
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Organisational environmentTo address these and many other challenges, the GDF has developed a comprehensive ICT strategy for the province. This strategy has been informed by the objective that seeks to create connectivity to every household, Small, Micro and Medium Enterprises (SMMEs), communities, government institutions (schools, clinics, etc.) and citizens across Gauteng. This will, amongst other things, lower the cost of doing business for vital economic players such as SMMEs and increase economic participation by the broader society. In the long run, this will contribute towards reshaping the provincial economy to be more inclusive and broad-based by opening up new opportunities for the marginalised communities. The strategy also takes Green ICT into consideration and expounds on how the province can reduce the carbon footprint whilst at the same time ensuring economic growth and development.
The main objectives will be to ensure that the provincial ICT strategy is operationalised and achieved in the province, by:
• Providing universal access to broadband (as defi ned by the national broadband policy) for citizens, business as well as government institutions;
• Building the Network Infrastructure and Information Super-highway to encourage the development of advanced workforce with better ICT skills;
• Enhancing economic productivity through ICT infrastructure development in order to lower the cost of doing business and increase connectivity for companies especially SMMEs;
• Increasing the ICT skills capacity within the public and the private sectors to create a pool of ICT practitioners and entrepreneurs;
• Improving service delivery by providing high quality ICT services through e-government; and
• Reducing the carbon footprint of the province through Green ICT.
These objectives are all interrelated and, to ensure that the objectives are achieved, three goals were formulated:
Productivity: To create a heightened environment for ICT-enabled economic activity amongst large fi rms and SMMEs; for electronic government services to citizens and business; and for support measures for ICT research and development (R&D).
Connectivity Networks: To foster the diffusion of ICT fi xed and mobile broadband infrastructure and the connectedness of SMMEs, schools and households, in ways that contribute to reducing the cost of communications and, therefore, of economic participation.
ICT Skills Capacity: To address the demand for skills in the broad ICT infrastructure and ICT services sectors, as well as in the society at large; and to provide for online learning in every primary and secondary school classroom; as means to increasing South Africa’s future competitiveness and laying the foundation for ICT innovation and sector development.
The implementation will ensure that the GDF succeeds as an enabler to service delivery. However, service delivery needs to adopt an outcome-based approach that was adopted by the National Cabinet Lekgotla in January 2010.
This approach is guided by the Gauteng Monitoring and Evaluation Policy Framework, developed by the Gauteng Planning Commission. It seeks to ensure the realisation of government’s politically agreed outcomes and have been developed to give effect to service delivery renewal and be part of broader public sector reform. It is an overarching policy and system framework for monitoring and evaluation in the GPG, in so far as it promotes enhanced planning, implementation, monitoring, evaluation and reporting so as to ensure effectiveness in realising the intent of the Medium Term Strategic Framework. Furthermore, it seeks to provide evidence for addressing challenges and replicating successes in the work of government in achieving its intended outcomes.
This Annual Performance Plan is expected to demonstrate the fundamental shifts in the operations of the GDF in the fi nancial year 2013/14; with outputs and performance measures set out to shape and position the GDF for effectiveness in carrying out its mandate.
The shift of emphasis from traditional monitoring of outputs to monitoring for life-changing results through outcomes monitoring is quite evident in the Improving Government Performance (IGP). This approach that government has taken and is advancing in the IGP is guided by three imperatives:
- The need for prioritisation.
- The benefi t of outcome-based planning.
- Effective performance management by focusing on a few priorities.
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1. Programme 1 – Administration
1.1 Sub-Programme 1 – Offi ce of the HODPurpose: Provide administrative support to the accounting offi cer, whose primary purpose is to lead according to the agreed strategic direction of the GDF.
Strategic Objective: To provide strategic and management support services that enable the GDF to achieve its objectives.
Strategic objectives, performance indicators, planned targets and actual achievements
Sub-Programme Name: Offi ce of the HOD
Strategic objectives Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
To provide strategic and management support services that enable the GDF to achieve its objectives
- 100% of EXCO decisions tracked and managed
100%(4) EXCO decisions tracked and managed
None Targets Achieved
- 100% of Legislature matters resolved within agreed time frames
100% (4) Legislature matters resolved within agreed time frames
None Targets Achieved
- Submit 12 Programme of Action Reports to the Offi ce of the Premier
Submitted 12 Programme of Action Reports to Offi ce of the Premier
None Targets Achieved
• Reasons for deviationsNone
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Performance indicators
Programme / Sub-programme:
Performance Indicator Actual Achieve-ment 2011/2012
Planned Target
2012/2013
Actual Achievement
2012/2013
Deviation from planned tar-get to Actual
Achievement for 2012/2013
Comment on deviations
% of EXCO decisions tracked and managed
- 100% EXCO deci-sions tracked and managed
100%(4) EXCO decisions tracked and managed
None Targets Achieved
% of Legislature matters resolved within agreed time frames
- 100% Legislature matters resolved within agreed time frames
100% (4)
Legislature matters resolved within agreed time frames
None Targets Achieved
Number of Programme of Action Reports sub-mitted to the Offi ce of the Premier
- Submit 12 Programme of Action Reports to the Offi ce of the Premier
Submitted 12 Pro-gramme of Action Reports to the Offi ce of the Premier
None Targets Achieved
• Reasons for deviationsNone
Strategy to overcome areas of under performanceNone
Changes to planned targets
Performance Indicator Annual Target Reasons for Changes
Functional and effective management of GDF calendar of key events and executive reporting
Implement an effective tracking system of key events and executive reporting
Functional and effective management is not easily quantifi able and therefore not realistic and achievable.
Functional and effective GDF programme of steering committees
Implement an effective system of steering committees
A functional and effective system steering committee is not a realistic measure of performance.
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1.2 Sub-Programme 2 – ForensicsPurpose: Provide Forensic services including the Prevention, Detection and Investigation of Fraud and Corruption in all GPG departments.
Strategic Objective: Promote sound corporate governance in the province through the provision of an effective internal control environment.
Strategic objectives, performance indicators, planned targets and actual achievements
Sub -Programme Name: Forensics
Strategic objective
Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned target to
Actual Achievement for 2012/2013
Comment on deviations
Promote sound corporate governance in the province through the provision of an effective internal control environment
67% (31) reports issued on allrequests for investigation
Complete 100% of investigations as per the LOE
Completed 100% (41) of investigations as per the LOE
None Targets Achieved
4 Fraud detection reviewsconducted
Conduct 11 fraud detection reviews
Conducted 11 fraud detection reviews
None Targets Achieved
15 Fraud risk assessmentsconducted
Issue Fraud risk assessment reports
Conducted 11 fraud risk assessments
None Targets Achieved
5 Fraud prevention plans updated
Update 11 GPG Fraud prevention plans annually
Updated 11 fraud prevention plans
None Targets Achieved
19 Anti- fraud and corruptionawareness workshops conducted
Conduct 50 Anti- fraud and corruption awareness workshops
Conducted 38 Anti-fraud and corruption awareness workshops
Client departments were not available on agreed dates.
Rescheduled for the 1st Quarter of the 2013/14 fi nancial year.
• Reasons for all deviations Anti-fraud and corruption awareness campaigns suffered a setback due to non-availability of client departments on agreed dates.
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Performance indicators
Sub-programme: Forensics
Performance Indicator Actual Achievement 2011/2012
Planned Target
2012/2013
Actual Achievement
2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
% of investigations completed as per agreed Engagement terms with clients
67% (31) reports issued on all requests for investigation
100% of investigations completed as per the LOE
Completed 100% (41) investigations as per the LOE
None Targets Achieved
Number of fraud detection reviews conducted
4 Fraud detection reviews conducted
Conduct 11 fraud detection reviews
Conducted 11 fraud detection reviews
None Targets Achieved
Number of fraud risk assessment reports issued
15 Fraud risk assessments
conducted
Issue fraud risk assessment reports
Conducted and issued 11 fraud risk assessment reports
None Targets Achieved
Number of GPG Fraud prevention plans updated annually
5 Fraud prevention plans updated
Update 11 GPG Fraud prevention plans annually
Updated 11 fraud prevention plans
None Targets Achieved
Number of Anti- fraud and corruption awareness workshops conducted
19 Anti- fraud and corruption awareness workshops conducted
Conduct 50 Anti- fraud and corruption awareness workshops
Conducted 38 Anti-fraud and corruption awareness workshops
Client departments were not available on agreed dates.
Rescheduled for the 1st Quarter of the 2013/14 fi nancial year.
• Reasons for deviationsAnti-fraud and corruption awareness campaigns suffered a setback due to non-availability of client departments on agreed dates.
• Strategy to overcome areas of under performanceAwareness workshops were rescheduled for the 1st Quarter of 2013/14 fi nancial year. In future, all engagement letters will be signed with client departments in order to ensure that all parties commit their availability on the agreed upon dates.
• Changes to planned targetsNone
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1.3 Sub-Programme 3 – Risk ManagementPurpose: Render effective and effi cient risk management within the GDF
Strategic objective: Promote sound corporate governance in the province through an effective internal control environment
Strategic objectives, performance indicators, planned targets and actual achievements
Sub- Programme Name: Risk Management
Strategic objective Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
To promote sound corporate governance in the province through an effective internal control environment.
- Approved risk management policy
The risk management policy was approved
None Target Achieved
- Approved risk management framework
The risk management framework was approved
None Target Achieved
• Reasons for deviationNone
Performance indicators
Sub- Programme Name: Risk Management
Performance Indicator Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned target to
Actual Achievement for 2012/2013
Comment on deviations
Approved risk management policy
- Approved risk management policy
The risk management policy was approved on 30 June 2012
None Target Achieved
Approved risk management framework
- Approved risk management framework
The risk management framework was approved on 30 June 2012
None Target Achieved
• Reasons for deviationNone
• Strategy to overcome areas of under performanceNone
• Changes to planned targets
Performance Indicator Annual Target Reasons for Changes
Awareness of risk management responsibilities of various role players in the Enterprise Risk Management process
Facilitate risk management briefi ng sessions and orientations
The level of risk awareness of the various role players cannot be realistically determined and therefore the measure does not meet the smart criteria required of indicators.
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1.4 Sub-Programme 4 – Financial Management (Offi ce of the CFO)Purpose: Provide strategic fi nancial planning support, fi nancial management and quality supply chain management services to the GDF
Strategic objectives: Provide strategic and management support services that enable the GDF to achieve its objectives
Strategic objectives, performance indicators, planned targets and actual achievements
Sub- Programme Name: Offi ce of the CFO
Strategic objective Actual Achievement 2011/2012
Planned Target
2012/2013
Actual Achievement
2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
To provide strategic and management support services that enable the GDF to achieve its objectives
- Submit accurate budget and adjustment statements timely
Accurate budget and adjustment statements submitted timely
None Targets Achieved
- Demand plan approved
The demand plan was approved
None Targets Achieved
• Reasons for deviationNone
Performance indicators
Sub-programme: Offi ce of the CFO
Performance Indicator Actual Achievement 2011/2012
Planned Target
2012/2013
Actual Achievement
2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
Accurate and timely submission of the budget and adjustment statements
- Accurate and timely submission of the budget and adjustment statements
Submitted accurate budget and adjustment statements on time
None Targets Achieved
Approved demand plan - Demand plan approved
The demand plan was approved
None Targets Achieved
• Reasons for deviationsNone
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Strategy to overcome areas of under performance
No deviations
• Changes to planned targets
Performance Indicator Annual Target Reasons for Changes
% Progress Asset Management Strategy Asset management practices that are 100% aligned to treasury regulations, the PFMA, international accounting standards, and regulatory frameworks
Implementation of Asset Management practices cannot be realistically expressed in percentage terms and therefore could not be measured.
Accurate and timely budget planning, development, maintenance and reporting
Maintain budget resource allocation integrity, and enhance management resource allocation decisions through intelligent reporting and analysis
Accurate and timely budget planning, development, maintenance and reporting is not realistic as an indicator since it seeks to measure several dimensions. To verify this indicator, data would need to be collected from several data sources, thus complicating the data gathering process.
GDF AG Report Unqualifi ed Audit: GDF Achieving an unqualifi ed audit is not a realist measure if expected from a single business unit within the organisation since it has interdependencies.
% Progress GDF Contract Management SOP Implemented
Implemented GDF Contract Management SOP
All contract management are now measured by our procurement services business unit within the GDF refer to Programme 4
Risk management practices that are 100% aligned to the Risk management strategy, implementation plan, and regulatory framework
Risk management practices that are 100% aligned to the Risk management strategy, implementation plan, and regulatory framework
Risk management practices that are 100% aligned to the Risk management strategy, implementation plan, and regulatory framework cannot be realistically measured.
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1.5 Sub -Programme 5: Corporate ManagementPurpose: Ensure compliance to good governance principles by providing corporate support services to the GDF
Strategic Objective: Provide strategic and management support services that enable the GDF to achieve its objectives
Strategic objectives, performance indicators, planned targets and actual achievements
Sub -Programme: Corporate Management
Strategic objectives
Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
To provide strategic and management support services that enable the GDF to achieve its objectives
Strategy in draft format
Develop and approve a Human Resources plan
The Human Resource plan was developed and approved and was subsequently submitted to the Offi ce of the Premier and to the DPSA
None Targets Achieved
- Develop and approve a security threats and risk mitigation plan
Developed and approved a security threats and risk mitigation plan
None Targets Achieved
- Develop and approve a communications strategy
Developed and approved a communications strategy
None Targets Achieved
- 100% legal opinions issued
Issued 100% (21) legal opinions
None Targets Achieved
- 100% of litigation matters managed
Managed 100% (35) litigation matters
None Targets Achieved
- 100% of legal contracts handled
Handled 100% (22) legal contracts
None Targets Achieved
- 4 GEYODI reports submitted
Submitted 4 GEYODI reports
None Targets Achieved
- Approve and submit the Annual Report on time
The annual report will be submitted by 31 August 2013
None Targets will be achieved
- Approve and submit 4 Quarterly Performance Reports
Submitted 4 approved Quarterly Performance Reports
None Targets Achieved
- 78% Compliance by GDF to Service Standards
91% Compliance by GDF to Service Standards
None Targets Achieved
- 60% of Hotline customer interactions handled and resolved at fi rst line support level
Handled and resolved 88.5% of Hotline customer interactions at fi rst line support level
None Targets Achieved
- 70% of escalated cases resolved within 60 working days
Resolved 75.7% of escalated cases within 60 working days
None Targets Achieved
Provided 70% customer feedback on escalated cases within 3 working days
Provided 70% customer feedback on escalated cases within 3 working days
None Targets Achieved
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Sub -Programme: Corporate Management
Strategic objectives
Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
To provide strategic and management support services that enable the GDF to achieve its objectives
- 80% of Hotline calls answered within 20 seconds
93% of Hotline calls were answered within 20 seconds
None Targets Achieved
- Approved and Submitted GDF Strategic Plan
Approved and Submitted Revised GDF Strategic Plan
None Targets Achieved
- Approved and Submitted Annual Performance Plan
Submitted the approved fi nal draft of the APP to the Provincial Legislature and Treasury
None Targets Achieved
- Complete enhancements to DMCi, DOCTRACK, QUF and ARTS applications
Completed:Phase 1 changes andIncorporation of QUF onto the Doctrack and DMCi and Phase 2 of the Document Management Centre (DMCi). The indexing system has not been , and the BIS reporting is still outstanding until completion of phase 2 of the DMCi
Skills for Delphi not available within TSS which caused delays in dependencies
These challenges have been escalated to the Head of TSS, and the targets will be implemented in Q1 of the 2013/14 fi nancial year
• Reasons for deviationsDue to internal skills shortages, the DMC had to source external skills as Delphi is not available within TSS which caused delays in dependencies. These challenges have been escalated to the Head of TSS, and these targets will be pursued during Q1 of the 2013/14 fi nancial year
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Performance indicators
Sub-programme: Corporate Management
Performance Indicator
Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
Approved Human Resources plan
HR Strategy in draft format
Develop and approve a Human Resources plan
Developed and Approved a Human Resource plan which was submitted to the Offi ce of the Premier and to the DPSA
None Targets Achieved
Approved security threats and risk plan
- Develop and approve a security threats and risk mitigation plan
Developed and approved a security threats and risk mitigation plan
None Targets Achieved
Approved communications strategy
- Develop and approve a communications strategy
Developed and approved a communications strategy
None Targets Achieved
% of legal opinions issued
- 100% legal opinions issued
Issued 100% (21) legal opinions
None Targets Achieved
% of litigation matters managed
- 100% of litigation matters managed
Managed 100%(35) litigation matters
None Targets Achieved
% of legal contracts handled
- 100% of legal contracts handled
Handled 100%(22) legal contracts
None Targets Achieved
Number of GEYODI reports submitted
- 4 GEYODI reports submitted
Submitted 4 GEYODI reports
None Targets Achieved
Approve and submit the Annual Report on time
- Approve and submit the Annual Report on time
The annual report will be submitted by 31 August 2013
None Targets will be Achieved
Number of Approved and submitted Quarterly Performance Reports
- Submit 4-Approved Quarterly Performance Reports
Submitted 4 Approved Quarterly Performance Reports
None Targets Achieved
% Compliance by GDF to Service Standards
- 78% Compliance by GDF to Service Standards
Achieved 91% Compliance to Service Standards
None Targets Achieved
% of Hotline customer interactions handled and resolved at fi rst line support level
- 60% of Hotline customer interactions handled and resolved at fi rst line support level
Handled and resolved 88.5% of hotline customer interactions at fi rst line support level
None Targets Achieved
% Compliance to providing customer feedback within 3 working days
- 70% of escalated cases resolved within 60 working days
Provided 74.5% customer feedback on escalated cases within 3 working days
None Targets Achieved
% of escalated cases resolved within 60 working days
- Resolved 75.7% escalated cases within 60 working days
Resolved 75.7% escalated cases within 60 working days
None Targets Achieved
% of Hotline calls answered within 20 seconds
- Answered 93% of hotline calls within 20 seconds
Answered 93% of hotline calls within 20 seconds
None Targets Achieved
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Sub-programme: Corporate Management
Performance Indicator
Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
Approved and Submitted GDF Strategic Plan
- Submit the approved GDF’s Strategic Plan
Submitted the revised and approved GDF’s Strategic Plan
None Targets Achieved
Approved Annual Performance Plan
- Submit an approved Annual Performance
Plan
Submitted the approved fi nal draft of the APP to the Provincial Legislature and Treasury
None Targets Achieved
Complete enhancements
to the DMCi, DOCTRACK,
QUF and ARTS applications.
- Complete enhancements to the
DMCi, DOCTRACK, QUF and ARTS applications
Completed:The phase 1 changes and Incorporation of QUF into Doctrack and DMCi and Phase 2 of the Document Management Centre (DMCi) Indexing system has not been fi nalised. The BIS reporting is still outstanding pending the completion of the DMCi Phase 2
Skills for Delphi not available
within TSS which caused delays in
dependencies
These challenges have been
escalated to the Head of TSS, and the targets will be implemented in
Q1 of the 2013/14 fi nancial year
• Reasons for deviationsDue to skills shortage internally, DMC had to source external skills. Delphi is not available within TSS which caused delays in dependencies. These challenges have been escalated to the Head of TSS, and the targets will be implemented in Q1 of the 2013/14 fi nancial year.
• Strategy to overcome areas of under performanceThese challenges have been escalated to the Head of TSS, and the targets will be implemented in Q1 of the 2013/14 fi nancial year.
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• Changes to planned targets
Performance Indicator Annual Target Reasons for Changes
% Achieved in overall Customer Satisfaction
78% customer satisfaction rating
78% Compliance by GDF to Service Standards could not be measured because it is based on customer perception.
Approved GEYODI advocacy and compliance monitoring plan
Develop and approve a GEYODI advocacy and compliance monitoring plan
Develop and approve a GEYODI advocacy and compliance monitoring plan was not specifi c and measurable and therefore the indicator has been revised to number of GEYODI reports submitted which is achievable and measured
Reviewed M&E System 1 The M&E system has been integrated into an approved 2012/2013 M&E framework, which output is now part of the M&E operational plan.
An effective legal and advisory support services
Provide effective legal and advisory support services
An effective legal and advisory support services are not easily quantifi able and therefore not realistic and achievable.
Number of accountability reports
12 An accountability report is vague terminology and therefore subject to misinterpretation. The target has since been revised to read: ‘4- Approved and submitted Quarterly Performance Reports.’ This target has been achieved
Number of evaluation studies conducted
1 Evaluation studies are varied and differ in the level of complexity and the extent of resources required to accomplishing them. Unless the evaluation study is specifi ed, the measure is not realistic and achievable. Most importantly, the Gauteng Provincial Planning Commission is the custodian of the Gauteng evaluation plan.
% implemented Outcome based M&E System
Institutionalised the Outcome based M&E System
The term ‘institutionalised’ is vague and unrealistic measure.
No of completed research projects
Completed 15 research projects
The research projects target could not be measured and achievable and target revised to 4 innovation projects ‘refer’ to Programme 3 (TSS)
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2. Programme 2 – Gauteng Audit ServicesPurpose: Perform an independent evaluation of internal control systems, governance and risk management processes for adequacy and effectiveness, and make recommendations on continuous improvements thereon, in order to provide reasonable assurances that GPG departmental objectives will be met.
Strategic Objectives: Promote sound corporate governance in the province through an effective internal control environment.
Strategic objectives, performance indicators, planned targets and actual achievements
Programme Name: Gauteng Audit Services
Strategic objectives Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
To promote sound corporate governance in the province through an effective internal control environment.
39 audits 39 audits 40 audits None Targets Achieved
62 audits 57 audits 57 audits None Targets Achieved
25 audits 26 audits 29 audits None Targets Achieved
27 audits 26 audits 34 audits None Targets Achieved
• Reasons for deviationsNone
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Performance indicators
Programme Name: Gauteng Audit Services
Performance Indicator Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
Number of planned risk audits completed for Risk and Compliance Clusters 1, 2
39 audits 39 audits 40 audits None Targets Achieved
Number of planned risk audits completed for Risk and Compliance Clusters 3, 4, 5
62 audits 57 audits 57 audits None Targets Achieved
Number of planned computer audits completed
25 audits 26 audits 29 audits None Targets Achieved
Number of planned performance audits completed
27 audits 26 audits 34 audits None Targets Achieved
• Reasons for deviationsNone
• Strategy to overcome areas of under performanceNone
• Changes to planned targets
Performance Indicator Annual Target Reasons for Changes
Number of completed quality assurance reviews
16 quality assurance reviews Quality assurance reviews constitute internal processes which form part of the business unit’s operational plan
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3. Programme 3 – Technology Support ServicesPurpose: Provide strategic leadership and guidance in resource mobilisation, management and operational support that maximises service delivery through the effective and effi cient use of ICT resources in the Gauteng Province.
Strategic objective: Provide a modern, reliable and secure ICT infrastructure that meets the GPG’s needs.
Strategic objectives, performance indicators, planned targets, and actual achievement
Programme Name: Technology Support Services
Strategic objectives
Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned target to
Actual Achievement for 2012/2013
Comment on deviations
To provide a modern, reliable and secure ICT infrastructure that meets the GPG’s needs.
3 513 hrs per annum
3 586 hrs per annum
8 580 hrs per annum
WAN availability for Bronze Sites of 2,496 hours or (94%) per annum
WAN availability for Silver Sites of 2,568 hours or (96%) per annum
WAN availability for Gold Core Sites of 8,672 hours or (99%) per annum
Achieved 82% WAN availability for Bronze Sites which is equivalent to 624 Hrs per quarter
Achieved 96% WAN availability for Silver Sites which is equivalent to 642 Hrs per quarter
Achieved 98% WAN availability for Gold Core sites, which is equivalent to 2 168 Hrs per quarter
Telkom network cable link errors and network equipment Failures
Faulty Telkom network cables and network equipment Failures
VPNS Core Router Shut down due to ICT generator failure, resulting In the BGP (Borger Gateway Protocol) Confi gurations being lost requiring Network tables to be restored.
A daily report is produced to escalated to Telkom for resolution
A Backup of Network tables has been made.
- 2 additional GPG departments utilising the single domain
1 additional GPG department utilising single domain
Technical challenges delayed the completion of the project amongst others being Firewall confi guration, building of Domain Controllers, and communications with remote site users.
These technical issues are resolved on a site by site basis, hence the slow migration rate. The migration of users for this department remains a priority.
- 1 Department migrated to the fully managed data center
0 Departments migrated to the Fully Managed Data Centre
Finalisation of the tender and contract took longer than expected to complete
Departments will be migrated during the 2013/14 fi nancial year
- Automate and implement 5 additional Identifi ed SAP modules
Implemented 5 additional identifi ed SAP modules
None Targets Achieved
- 6 additional business / mobile applications to be automated
Automated 6 additional business/mobile applications
None Targets Achieved
- 1 additional collaboration application to be implemented
Implemented 1 additional collaboration application
None Targets Achieved
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Programme Name: Technology Support Services
Strategic objectives
Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned target to
Actual Achievement for 2012/2013
Comment on deviations
To provide a modern, reliable and secure ICT infrastructure that meets the GPG’s needs.
- 1 department to have a completed Master System Plan (MSP)
Completed the Master System Plan (MSP) in 1 department
None Targets Achieved
- 1 GDF key process implemented with ISO 9001 Best Practice
Implemented the ISO 9001 Certifi cation of Best Practice in 2 GDF key processes
None Targets Achieved
- 4 completedInnovation Projects
Completed 3 Innovation Projects
Suggested improvement opportunities could not be implemented due to the unsatisfactory participation from business unit experts
Rescheduled for Quarter 1 of the 13/14 fi nancial year.
1 564 Gauteng Online School computer laboratories deployed
636 Gauteng Online Schools deployed
0 Revised the key objectives and comprehensive e-Learning components for incorporation onto the new specifi cations.
The new specifi cations will be incorporated into the new technology solution
1 564 Gauteng Online School computer laboratories managed and supported
2 200 school computer laboratories managed
1 538 Gauteng Online School computer laboratories managed and supported
27 schools have requested to be decommissioned.
The Gauteng public schools’ master list has been sought from the GDE and updated accordingly, as this is unfortunately not a static number
• Reasons for Deviations• Telkom network cable link errors and network equipment failure.
• VPNS Core Router shut down due to ICT generator failure, resulting In the BGP (Borger Gateway Protocol) confi gurations being lost requiring Network tables to be restored.
• Technical problems prevented the completion of the Department of Education. The Firewall confi guration prevented migration and replication of Domain Controllers and diffi culties experienced in the building of Domain Controllers for use in the Education environment.
• Deploying Domain Controllers in the Education environment took time, and were diffi cult to correctly confi gure.
• Departmental communications with remote site users caused delays in the timely execution of the migration process. Prompt delivery of user information for migration disrupted and delayed scheduled migration, and inaccuracy of site lists prevented the migration of users from sites.
• Finalisation of the tender and contract took longer than expected to complete.
GoL Deviations• Revised the key objectives and comprehensive e-Learning components for incorporation onto the new specifi cations.
• Schools have merged or have been decommissioned.
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Performance indicators
Programme Name: Technology Support Services
Performance Indicator
Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned target to Actual Achievement for
2012/2013
Comment on deviations
% of WAN availability (uptime of all data lines per SLA)
3 513 hrs per annum
3 586 hrs per annum
8 580 hrs per annum
Achieve WAN availability for Bronze Sites of 2 496 hours or (94%) per annum
Achieve WAN availability for Silver Sites of 2,568 hours or (96%) per annum
Achieve WAN availability for Gold Core Sites of 8 672 hours or (99%) per annum
Achieved 82% WAN availability for Bronze Sites which is equivalent to 552 Hrs per quarter
Achieved 96% WAN availability for Silver Sites which is equivalent to 601 Hrs per quarter
Achieved 98% WAN availability for Gold Core sites, which is equivalent to 2 168 Hrs per quarter
Telkom network cable link errors and network equipment Failure
Faulty Telkom network cables and network equipment Failure
VPNS Core Router Shut down due to ICT generator failure, resulting In the BGP (Borger Gateway Protocol) Confi gurations being lost requiring Network tables to be restored.
A daily report is produced to escalated to Telkom for resolution
A Backup of Network tables has been made.
Number of departments migrated to the Single Domain
- 2 additional GPG departments utilising the single domain
1 additional GPG department utilising the single domain
Technical challenges delayed the completion of the project amongst others being Firewall confi guration, building of Domain Controllers, communications with remote site users.
These technical issues are resolved on a site by site basis, hence the slow migration rate. The migration of users for this department remains a priority.
Number of departments migrated to the fully managed Data Centre.
- 1-Department migrated to the fully managed data center
0 -Departments migrated to Fully Managed Data Centre
Finalisation of the tender and contract took longer than expected to complete
Departments will be migrated during the 2013/14 fi nancial year
Number of SAP modules to be implemented (identifi ed SAP modules)
- 5-additional Identifi ed SAP modules to be implemented
Implemented 5 additional identifi ed SAP modules
None Targets Achieved
Number of automated business/mobile applications implemented for the GPG
- 6-Additional business / mobile applications to be automated
Automated 6 additional business/mobile applications
None Targets Achieved
Number of collaboration applications to be implemented
- 1-Additional collaboration application to be implemented
Implemented 1 additional collaboration application
None Targets Achieved
No of departments with a completed Master System Plan (MSP)
- 1-Department with a completed Master System Plan (MSP)
Completed 1 department with a Master System Plan (MSP
None Targets Achieved
Number of GDF key processes implemented with ISO 9001 Best Practice
- 1-GDF key process implemented with ISO 9001 Best Practice
Implemented 2 GDF key processes with ISO 9001 Certifi cation of Best Practice
None Targets Achieved
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Programme Name: Technology Support Services
Performance Indicator
Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned target to Actual Achievement for
2012/2013
Comment on deviations
Number of completed Innovation Projects
- 4 completed Innovation Projects
Completed 3 Innovation Projects
Suggested improvement opportunities could not be implemented due to the unsatisfactory participation from business unit experts on agreed dates
Rescheduled for Quarter 1 of the 13/14 fi nancial year.
Number of Gauteng Online Schools deployed
1564 Gauteng Online School computer laboratories deployed
636 Gauteng Online Schools deployed
0 Revised the key objectives and comprehensive e-Learning components for incorporation onto the new specifi cations.
The new specifi cations will be incorporated into the new technology solution
Number of school computer laboratories managed
1564 Gauteng Online School computer laboratories managed and supported
2,200 school computer laboratories managed
1538 Gauteng Online School computer laboratories managed and supported
27 schools have requested to be decommissioned.
The Gauteng public schools’ master list has been sought from GDE and updated accordingly as this is unfortunately not a static number.
• Reasons for Deviations• Telkom network cable link errors and network equipment failures. VPNS Core Router shut down due to ICT generator
failure, resulting in the BGP (Borger Gateway Protocol) confi gurations being lost and requiring Network tables to be restored.
• Technical problems prevented the completion of the Department of Education. The Firewall confi guration prevented migration and replication of Domain Controllers and diffi culties experienced in the building of Domain Controllers for use in the Education environment.
• Deploying Domain Controllers in the Education environment took time, and were diffi cult to correctly confi gure.
• Departmental communications with remote site users caused delays in the timely execution of the migration process. Prompt delivery of user information for migration disrupted and delayed scheduled migration, and inaccuracy of site lists prevented the migration of users from sites.
• Finalisation of the tender and contract took longer than expected to complete.
• GoL Deviations• Revised the key objectives and comprehensive e-Learning components for incorporation onto the new specifi cations.
• Schools have merged or have been decommissioned.
• Strategy to overcome areas of under performance• A daily report will be produced and escalated to Telkom for resolution, and a Backup of Network tables has been
made in order to avoid delays in restoring the tables.
• These technical issues are resolved on a site by site basis, hence the slow migration rate in the Department of Education. The migration of users for this department remains a priority though.
• Departments will be migrated during the 2013/14 fi nancial year.
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• GoL Mitigations• The new specifi cations will be incorporated into the new e-Learning technology solution
• The Gauteng public schools’ master list has been sought from the GDE and updated accordingly as this is unfortunately not a static number.
Changes to planned targets
Performance Indicator Annual Target Reasons for Changes
99% infrastructure available 95% The term ‘infrastructure’ is broad and could involve several ICT systems. The target has since been revised to: ‘WAN availability uptime of all data lines as per SLA’, which is more specifi c measure.
Increase the number of source systems to be monitored by the SOC.
3 simple1 complex
The terms ‘simple’ and ‘complex’ system was not properly defi ned and therefore the measure did not conform to the SMART criteria required of indicators.
Number of systems monitored for end-user experience
1 The phrase ‘end-user experience’ was not properly defi ned and therefore the measure contravened the SMART criteria. Funding was reprioritised
Number of ERP module implementations
5 The original target of 5 ERP modules implementation was refi ned to 5-additional Identifi ed SAP modules to be implemented in the revised 2012/2013 APP in order to make the target realistic and achievable. The target of 5 additional identifi ed SAP modules was achieved
Number of e-service applications 6 The number of e-Service applications could not be measured and the target has since been revised to: ‘number of collaboration applications to be implemented’, which target has been achieved.
% completion of the mobile portal 10% Completion of the mobile portal cannot be realistically expressed in percentage terms
Number of enterprise services implemented
6 The original target of enterprise services implemented has been revised to 1 additional collaboration application to be implemented in the revised 2012/2013 APP in order to make the target realistic and achievable. The target of 1 Additional collaboration application was achieved
Number of GPG-entities with automated scanning facilities
21 No funding was made available for the project and could not be measured
Number of departments where Open Source devices are deployed
1 No funding was made available for the project and could not be measured
% reduction of server rooms within the GPG
1% The original target of % reduction of server rooms within the GPG has been revised in the 2012/2013 APP in order to make the target realistic and achievable to number of departments migrated to the fully managed Data Centre which was part of the revised APP
% reduction of duplicated applications within the GPG
1% The original target of % reduction of duplicated applications within the GPG has been revised in the 2012/2013 APP to number of departments migrated to the fully managed Data Centre
Knowledge Management Institutionalised
1 CoP10 users trained
Full access and provision to information resources
Target was not properly defi ned and therefore the measure did not conform to the SMART criteria required of indicators.
% reduction in operational costs 1% Target cannot be realistically measured because there was a general 5% reduction of budget
Number of months to reduce time to market of ICT services
< 5 months The number of months to reduce time to market of ICT services could not be measured as it incorporated in the fully managed data centre in the revised 2012/2013 APP
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4. Programme 4 – Procurement ServicesPurpose: Provide procurement related strategic and operational support to the Province. This is executed through an activist, developmental and interventionist customer-focused and socio- economically responsible manner, using technology as the key enabler in automating, standardising, and streamlining procurement processes
Strategic Objective: Provide advisory and transactional services in Human Capital Management and Strategic Procurement Services
Strategic objectives, performance indicators, planned targets and actual achievements
Programme Name
Strategic objectives Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
To provide advisory and transactional services in Human Capital Management and Strategic procurement services
81.4% of contracts have been established within 90 days
90% of all GPG transversal term agreements will be established within an average of 90 days
100% (33) of all GPG transversal term agreements were established within an average of 90 days.
None Targets Achieved
99% of Contracts loaded on the system
98% of all GPG transversal contracts will be loaded on the contract management system within 30 days.
100% (946) of all GPG transversal contracts were loaded on the contract management system within 30 days.
None Targets Achieved
89% of supplier invoices processed within 2 working days of receipt
98% of all invoices received by the GDF will be processed within 4-working days
99.5% (264 479 of 265 725) of all invoices received by the GDF were processed within 4 working days
None Targets Achieved
608 offi cials trained on Procurement processes and systems
900 procurement offi cials will be trained on SCM processes and systems
936 procurement offi cials were trained on SCM processes and systems
None Targets Achieved
- 100% of all GPG tender adverts submitted within 5 working days prior to the next publication will be advertised in the Tender Bulletin
100% (108) of all GPG tender adverts submitted within 5 working days prior to the next publication were advertised in the Tender Bulletin.
None Targets Achieved
- 12 Market related industry research analyses will be conducted in the fi nancial year
12 Market related industry research analyses were conducted during this fi nancial year
None Targets Achieved
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38
Programme Name
Strategic objectives Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
To provide advisory and transactional services in Human Capital Management and Strategic procurement services
- 100% of requested Ad Hoc Commodity research studies will be completed within 5 working days
100% (690) requested Ad Hoc Commodity research studies were completed within 5 working days
None Targets Achieved
- 12 B-BBEE GPG spend reports will be produced and distributed to all Departments in the fi nancial year.
12 B-BBEE GPG spend reports were produced and distributed to all Departments during this fi nancial year.
None Targets Achieved
- 100% of requested Price adjustments will be completed within 2 working days from date of request
100% (56) of requested Price adjustments were completed within 2 working days from date of request.
None Targets Achieved
- 100% of requested Price projections will be completed within 3 working days from date of request
100% (93) of requested Price projections were completed within 3 working days from date of request
None Targets Achieved
- 100% of requested Financial analyses reports will be made available within 3 working days from the date of request.
100% (93) of requested Financial analyses reports were made available within 3 working days from the date of request.
None Targets Achieved
- 98% of Procure to Pay vendors will be registered on the GPG’s database of suppliers within 12 working SLA days
93% (5020) of Procure to Pay vendors were registered on the GPG’s database of suppliers within 12 working SLA days
System down time (SRM slow)SLAs were not accurately measured
This indicator is demand driven and the deviation was as a result of increased demand for vendor registrations, which needed either additional resources or adjustment of the service level agreement. A formal SLA work study was conducted in September 2012, and its recommendations were implemented in quarter 3.
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Programme Name
Strategic objectives Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
To provide advisory and transactional services in Human Capital Management and Strategic procurement services
- 98% of Individual vendors will be registered on the GPG’s database of suppliers within 4 working SLA days
90% (5 708) of Individual vendors were registered on the GPG’s database of suppliers within 4 working SLA days
System down time (BAS slow or not available)SLA was not accurately measured
This indicator is demand driven and the deviation was as a result of increased demand for vendor registrations, which needed either additional resources or adjustment of the service level agreement. A formal SLA work study was conducted in September 2012, and its recommendations were implemented in quarter 3.
• Reasons for deviationsThe SRM and BAS system was slow for the Vendor Management employees who were utilising thin client computers. The unit had to replace the thin client computers with desktop computers.
SLA projections were based on historical performance of the indicators, which are demand driven indicators. There was an increase in volumes during the performance cycle, which affected SLA and productivity levels.
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Performance indicators
Programme / Sub-programme:
Performance Indicator Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual
Achievement for 2012/2013
Comment on deviations
% compliance with 90 day SLA in respect of GPG Transversal Term Agreements.
81.4% of contracts were established within 90 days
90% of all GPG transversal term agreements will be established within an average of 90 days
100% (33) of all GPG transversal term agreements were established within an average of 90 days
Targets Achieved
Not Applicable
% of all GPG contracts available in the updated central repository of awarded contracts.
99% of Contracts loaded on the system
98% of all GPG transversal contracts will be loaded on the contract management system within 30 days
100% (946) of all GPG transversal contracts were loaded on the contract management system within 30 days
Targets Achieved
Not Applicable
% of invoices processed within 4 working days from receipt by the GDF
89% of supplier invoices processed within 2 working days of receipt
Process 98% of all invoices received within 4 working days
99.5% (264 479 of 265 725) of all invoices received were processed within 4 working days
Targets Achieved
Not Applicable
Number of GPG procurement offi cials trained on procurement processes and systems
608 offi cials trained on Procurement processes and systems
Train 900 procurement offi cials on SCM processes and systems
Trained 936 procurement offi cials on SCM processes and systems
Targets Achieved
Not Applicable
% of tenders advertised on the Tender Bulletin within 5 days.
- 100% of all GPG tender adverts submitted within 5 working days prior to the next publication will be advertised in the Tender Bulletin
Advertised in the Tender Bulletin 100% (108) of all GPG tender adverts submitted within 5 working days prior to the next publication date
Targets Achieved
Not Applicable
Number of Procure to Pay market related analyses and research studies conducted
- 12 Market related industry research analyses will be conducted during this fi nancial year
Conducted 12 Market related industry research analyses during the fi nancial year
Targets Achieved
Not Applicable
% of requested Ad hoc commodity research studies to be completed within 5 working days
- 100% of requested Ad Hoc Commodity research studies will be completed within 5 working days
Completed 100% of (690) requested Ad Hoc Commodity research studies within 5 working days
Targets Achieved
Not Applicable
Number of B-BBEE expenditure reports produced and distributed monthly to the GPG
- 12 B-BBEE GPG spend reports will be produced and distributed to all Departments during this fi nancial year
Produced and distributed 12 B-BBEE spend reports to all GPG Departments during this fi nancial year
Targets Achieved
Not Applicable
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41
Programme / Sub-programme:
Performance Indicator Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual
Achievement for 2012/2013
Comment on deviations
% of Financial risk analyses provided to ensure that GPG Departments are not exposed to unfair price escalations
- 100% of requested Price adjustments will be completed within 2 working days from date of request.
Completed 100% (56) of requested Price adjustments within 2 working days from date of request
Targets Achieved
Not Applicable
100% of requested Price projections will be completed within 3 working days from date of request.
Completed 100% (93) of requested Price projections within 3 working days from date of request.
Targets Achieved
Not Applicable
100% of requested Financial analyses reports will be made available within 3 working days from date of request.
Availed 100% (93) of requested Financial analysis reports within 3 working days from date of request.
Targets Achieved
Not Applicable
% of Procure to Pay vendors registered on the GPG database within 12 SLA days
- 98% of Procure to Pay vendors will be registered on the GPG’s database of suppliers within 12 working SLA days
93% (5 020) of Procure to Pay vendors were registered on the GPG’s database of suppliers within 12 working SLA days
System down time (SRM slow)SLA was not accurately measured
This indicator is demand driven and the deviation was as a result of increased demand for vendor registrations, which needed either additional resources or adjustment of the service level agreement. A formal SLA work study was conducted in September 2012, and its recommendations were implemented during quarter 3.
% of Individual vendors registered on the GPG Database within 4 SLA days
- 98% of Individual vendors will be registered on the GPG’s database of suppliers within 4 working SLA days
90% (5 708) of Individual vendors were registered on the GPG’s database of suppliers within 4 working SLA days
System down time (BAS slow or not available)SLA was not accurately measured
This indicator is demand driven and the deviation was as a result of increased demand for vendor registrations, which needed either additional resources or adjustment of the service level agreement. A formal SLA work study was conducted in September 2012, and its recommendations were implemented in quarter 3.
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• Reasons for deviationsThe SRM and BAS system was slow for the Vendor Management employees who were utilising thin client computers. The unit had to replace the thin client computers with desktop computers.
The SLA projections were based on historical performances of demand driven indicators. There were increased volumes during the performance cycle, which affected SLA productivity levels.
• Strategy to overcome areas of under performanceThe programme conducted work studies to establish the causes of the deviation. This work study was completed in September 2012 and processes were revised and employees were redeployed to optimise output. It also revealed that the target set was unrealistic and unachievable. There were two options available under these circumstances. Firstly, the targets could be reset or secondly, staff numbers could be increased to ensure that the original targets would be achieved. It was decided that option two was most viable and in preparation for the new fi nancial year almost all funded vacant posts have been fi lled.
• Changes to planned targets
Performance Indicator Annual Target Reasons for Changes
% of payment proposals submitted to Departmental CFO’s as per system deadlines
98% of payment proposals submitted to Departmental CFO’s as per system deadlines
Functions transferred to Gauteng Provincial Treasury. This is as a result of the splitting of the GDF into two departments.
% of items catalogued within the SLA time frame of 1 working day
98% of items catalogued within the SLA time frame of 1 working day
Items catalogued could not be measures as it is more operational than outcome specifi c 12
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43
5. Programme 5: Human Resources Services Purpose: Build capacity, improve the quality of service and client experience in human resource transactional services, transform the human resource management environment, and improve effi ciency through the automation of transactional services.
Strategic Objective: Provide advisory and transactional services in Human Capital Management and Strategic Procurement Services
Strategic objectives, performance indicators, planned targets and actual achievements
Programme Name: Human Resources Services
Strategic objective Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual Achievement for
2012/2013
Comment on deviations
Provide Advisory and Transactional Services in Human Capital Management and Strategic Procurement Services
50 % Roll out of the enhanced and integrated E-recruitment model
Deploy Phase 2 of the integrated E-recruitment model
Deployed Phase 2 of the integrated E-recruitment model
None Targets Achieved
0% Roll out of automated HR21 and HR24 to GPG departments
2 GPG departments with SAP ESS to go live on automation services (HR21 and HR24 )
Connected 2 new departments the DED and OoP to the automated HR21 and HR24 system
None Targets Achieved
5 175 people accessing the Maponya Mall Thusong Service Centre
2 000 People accessing the Maponya Mall Thusong Service Centre
3 519 people accessed the Maponya Mall Thusong Service Centre
None Targets Achieved
• Reasons for deviationsNone
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Performance indicators
Programme : Human Resources
Performance Indicator Actual Achievement 2011/2012
Planned Target2012/2013
Actual Achievement2012/2013
Deviation from planned
target to Actual
Achievement for 2012/2013
Comment on deviations
Deploy Phase 2 of the integrated E-recruitment model
50 % Roll out of the enhanced and integrated E-recruitment model
Deploy Phase 2 of the integrated E-recruitment model
Deployed Phase 2 of the integrated E-recruitment model
None Targets Achieved
Number of GPG departments with SAP ESS to go live on the automated termination services ( HR21 and HR24)
0% Roll out of the automated HR21 and HR24 to GPG departments
2 GPG departments with SAP ESS to go live on automation services ( HR21 and HR24 )
Connected 2 new departments the DED and OoP to the automated HR21 and HR24 system
None Targets Achieved
Number of peopleaccessing the Maponya Mall PJC
5 175 people accessing the Maponya Mall Thusong Service Centre
2 000 People accessing the Maponya Mall Thusong Service Centre
3 519 people accessed the Maponya Mall Thusong Service Centre
None Targets Achieved
• Reasons for deviationsNone
• Strategy to overcome areas of under performanceNone
• Changes to planned targets
Performance Indicator Annual Target Reasons for Changes
Number of people accessing the Maponya Mall PJC
6 000 People accessing the Maponya Mall Thusong Service Centre
The original target of 6 000 people accessing the Maponya Mall was adjusted downwards to 2 000 in the revised 2012/2013 APP in order to make the target realistic and achievable. The target of 2 000 people accessing Maponya Mall conforms to the most recent demand patterns of people accessing the Maponya Mall. Consequently, the target of 2 000 has been achieved.”
45
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45
Section 4ANNUAL FINANCIAL STATEMENTS
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Table of ContentsReport of the Accounting Offi cer 49
Report of the Audit Committee 55
Report of the Auditor-General 57
Appropriation Statement 60
Notes to the Appropriation Statement 79
Statement of Financial Performance 81
Statement of Financial Position 82
Cash Flow Statement 83
Accounting Policies 84
Notes to the Annual Financial Statements 90
Disclosure Notes to the Annual Financial Statements 101
Annexures 112
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2013
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1. General review of the state of fi nancial affairs within the Gauteng Department of Finance (GDF)During the fi nancial year under review, the Department of Finance (GDF) became a stand-alone Department. This event occurred after its separation from the Gauteng Provincial Treasury, and as a consequence of a pronouncement and proclamation by the Gauteng Premier, which sought to increase the GDF’s effi ciency. In addition, it was intended to reposition the GDF to deliver on the Provincial ICT strategy of becoming strategically focused, and to provide limited back offi ce support to GPG Departments. Essentially, the Department is tasked with implementing the shared services model of the GPG, with its primary and secondary objectives being the acquisition and preservation of ICT infrastructure, internal audit, forensic services, transversal procurement, and human resources management.
The GDF has since enhanced its aptitude to provide strategic and operational support to Provincial Departments, in order to maximise service delivery through ICT. As the budget is the fi nancial expression of operational plans, efforts were then
made to ensure that the annual performance, strategic, and operational plans were aligned to it.
Regarding the expenditure on employee compensation, all payments were based on warm bodies who are currently employed by the Department. Unfortunately, some positions remained vacant during the year, resulting in the reported under-expenditure in all programmes. Nonetheless, the Department paid most of its service providers within the stipulated 30-days, and as a consequence, reduced its accrued expenses to R18 million (2012: R118 million and 2011: R336 million) at year-end. This is a signifi cant achievement which demonstrated the effi cacy of our prudent fi nancial management practices.
1.1 Spending trends The GDF under-spent its annual budget by R41 million or 3% (2012: R65 million). On the other hand, it signifi cantly reduced its historical accrued expenses by repaying all arrears that were older than 30-days, and 95% of all invoices were also paid within 30-days. A comparative analysis of this information is summarised in table 1 hereunder as follows:
Table 1: Comparative analysis of annual budgets and spending patterns
Financial Year FinalAppropriation
R’000’
Actual Expenditure
R’000’
VarianceR’000’
Variance%
2010/11 1,515,008 1,484,422 30,586 2
2011/12 1,551,236 1,486,138 65,098 4
2012/13 1,333,265 1,291,785 41,480 3
Table 2: Comparative analysis of accrued expenses
Description 2010/11R’000’
2011/12R’000’
2012/13R’000’
Accrued expenses 336,664* 118,555 18,229
Accrued expenses exceeding 30-days 80,644 - 2
* The 2010/11 amount has been adjusted
Report by the Accounting Offi cer to the Executive Authority and Parliament / Provincial Legislature of the Republic of South Africa.
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2013
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1.1.1 Breakdown of over and under-expenditurea) Administration under spent by R27,5 million
due to:
• R7,7 million on Compensation of employees as a result of vacant posts that were not fi lled at the end of the fi nancial year.
• R19,8 million on goods and services as a result of non-payments on some projects where invoices were submitted late.
b) Gauteng Audit Services under spent by R4,7 million due to:
• R3,3 million on Compensation of Employees as a result of vacant posts that were not fi lled at the end of the fi nancial year.
• R1,4 million on goods and services as a result of Audit Consulting Services that were partially completed.
c) Procurement under spent by R5,4 million due to:
• Compensation of employees as a result of vacant posts that were not fi lled at the end of fi nancial year.
d) Human Resource service under spent by R3,7 million due to:
• R3,4 million on Compensation of employees as a result of vacant posts not fi lled at the end of the fi nancial year.
• R270 000 on goods and services as a result of partly delivered services from the credit bureau facility and debt management at the end of the fi nancial year.
• R66 000 on households
• R1 000 on Machinery and Equipment
1.1.2 Impact on programmes and service deliveryThe under spending which occurred during the 2012/13 fi nancial year had no adverse impact on service delivery.
1.1.3 Action taken to avoid a recurrence thereofThe Department continues to encourage Programme Managers to spend their allocated budgets prudently. Furthermore, during our annual budget committee meeting, it was resolved to divert all funds that were projected to be underspent to areas with readily implementable projects. This information is provided in detail and per programme in the Appropriation Statement, and in the notes to the Appropriation Statement. Additionally, we will intensify our recruitment processes on approval of our new organisation structure by the DPSA, in order to avoid a recurrence of under-expenditure arising from vacancies. A summary of our virements is as follows:
Table 3: Schedule of budget movements
Programme AdjustedAppropriation
R’000’
Actual ExpenditureR’000’
VirementsR’000’
Final Appropriation
R’000’
Administration 178 462 148 493 (2 399) 176 064
TSS 941 884 944 316 2 432 944 316
Human Resource 91 377 87 605 (34) 91 344
We have already appealed to the Provincial Treasury for approval of these virements, and we expect their favourable response in due course.
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1.2 Any other material matter During the year under review, the Department did not incur any unauthorised expenditure. However, the irregular, fruitless and wasteful expenditure of R3,9 million (2012: R55,5 million) incurred was reported, tabled and condoned by the Departmental Acquisitions Committee (DAC). This expenditure was subsequently reported to the Provincial Treasury and to the Auditor General as required.
2. Services rendered by the DepartmentThe Member of the Executive Council (MEC) for Finance is the Executive Authority for the Department of Finance, and is primarily responsible for the execution of functions and powers as prescribed in Chapter 3 of the Public Finance Management Act (PFMA). Similarly, the Gauteng Department of Finance (GDF) provides oversight and limited back offi ce support to Provincial Departments. Consequently, the GDF is a critical delivery component of the Gauteng Provincial Government (GPG), and has to ensure that service delivery occurs in a smart and sustainable manner. It also houses the Gauteng Audit Services (GAS), which then provides internal audit services to all Provincial Departments as required by Treasury Regulations. Other functions that the Department is responsible for include but are not limited to forensic services, transversal procurement, human resources and payroll administration, debtors control, collections, and contract management services.
3. Capacity constraints The GDF’s revised mandate is to focus primarily on building and maintaining an effi cient ICT infrastructure for the GPG. In order to comply with this requirement, we revised our organisation structure which was then approved by the MEC, and was later submitted to the Offi ce of the Premier, and subsequently to the Minister of Public Service and Administration (DPSA) for fi nal approval. Respectively, the prescribed consultation process with the DPSA delayed its approval, resulting in our inability to advertise and fi ll vacant positions that were critical to our operations. This was the main reason for our reported under expenditure on our budget for compensation of employees.
4. Utilisation of donor funds No donor funding was received by the Department during the 2012/13 fi nancial year.
5. Trading entities and public entitiesThe GDF did not engage in any trading activities with trading entities and or public entities during the year under review.
6. Organisations to whom transfer payments have been madeThere were no transfer payments made during the 2012/13 fi nancial year.
7. Public private partnerships (PPP)The GDF did not initiate nor participate in any PPP related activities during the year under review.
8. Corporate governance arrangements 8.1 Risk management
The GDF has a fully functional and effective Risk Management Committee which is chaired by the HOD. It assembles monthly and all executive managers are members thereof. The purpose of this committee is to monitor the Departments risk profi le, receive and consider reported threats, and evaluate proposed remedial actions. These refi ned reports are then submitted to the Audit Committee. To this end, a risk analysis of each Chief Directorate was completed at the beginning of this fi nancial year.
8.2 Fraud Prevention In accordance with our Departmental outcomes, our fraud prevention plan is revised annually, and all responsible Departmental offi cials underwent fraud awareness training during the year. The purpose of this intervention was to up-skill them so that they could effectively identify, manage, and report fraud and corruption incidents timely and accurately.
8.3 Gauteng Audit Services (GAS)The GDF provides internal audit services to all GPG Departments. Risk based Internal Audit Plans were developed by the GAS, in order to comply with Internal Audit Charters. These blueprints were also
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2013
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approved by the respective Departmental Audit Committees which exercise oversight over the activities of GAS.
8.4 Audit CommitteeThe GDF has a dedicated Audit Committee whose membership comprises of non-Departmental offi cials, and the majority of whom are competent fi nancial, accounting, and public accounts experts. Furthermore, the Chief Audit Executive of GAS and representatives of the Auditor General’s offi ce are also audit committee members. This committee meets four (4) times a year to deliberate upon the quarterly, interim, and annual reports as prescribed in section 38 (1) (a) (ii) of the PFMA. .
8.5 Executive Management CommitteesThe Departments performance is governed by two (2) internal structures which are responsible for effective management. These committees are the:
• Executive Management Committee (EMC), which comprises of the HOD, all Deputy Directors General, and Chief Directors. It is responsible for strategic leadership and tactical management.
• Management Committee (ManCom), which comprises of the HOD, all Deputy Directors General, Chief Directors, and all Directors. This committee is responsible for operational management.
8.6 Forensic ServicesThe Forensic Services Unit (FSU) is a reactive investigations component. It contributed to sound corporate governance by convening quarterly Provincial Anti-Corruption Co-ordinating Committee (PACCC) meetings throughout the GPG. These Provincial fora constitute the implementation of the Anti-Corruption Strategy. The FSU also facilitated the development of a Case Management System, which sought to improve turn-around times on the fi nalisation of the National Anti-Corruption Hotline.
9. Discontinued Departmental FunctionsThe following programmes were discontinued during the year under review due to the separation of Departmental activities.
Table 4: Discontinued functions
Programme Purpose BudgetR’000’
Financial Governance Create an enabling environment that ensures sound fi nancial management in the Province
Implement best accounting practices,supplychain management, enterprise wide risk management, cash flow management and fi nancial management systems
33,748
Provincial Accounting Services
Provide strategic fi nancial management, leadership, guidance and support to all GPG Departments
Expedite transparent and effective fi nancial management and reporting in Provincial Departments and entities
39,426
Sustainable Resource Management (SRM)
Optimise resource allocation, utilisation, and revenue to maximise the net social benefi t to the residents of Gauteng
83,893
Provincial Treasury Management Administration
Provide strategic leadership and oversight in the promotion of good governance in fi nancial matters of Provincial and Local Government structures
47,417
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2013
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10. New Departmental activitiesThere were no new activities during the year under review
11. Asset management All newly procured assets were bar-coded and listed on the asset register, while already registered assets were verifi ed in accordance with the annual policy and programme of asset verifi cations. Therefore, all assets as reported in the annual fi nancial statements were reconciled to this asset register. Monthly asset reconciliation reports were also compiled and submitted to the Provincial Treasury on time and as required. On the other hand, a separate register was implemented and is currently maintained for all assets under fi nance leases.
12. InventoriesOn the 31 March 2013, our closing inventory was valued at R2,186 million and is reflected in Notes 4.5 of the Financial Statements.
13. Performance Information The formulation of realistic objectives, verifi able indicators and attainable targets is the critical departure point before the occurrence of quality reporting. In order to realise this milestone in a transparent, inclusive and participative manner, the
GDF convened its senior management forum to socialise organisational planning processes on the formulation of SMART and compliant objectives. During this planning phase, consideration was given to aligning these strategic objectives to the GPG’s outcomes.
On fi nalisation of these developments, proper reporting processes began in earnest, which are governed by the monitoring and evaluation (M&E) framework. In turn, the framework provides for a data flow protocol that should be adhered to by all management levels. Its stipulated processes required that M&E specialists from the respective programmes must assemble their information in accordance with the prescribed conventions for consistency. Prior to submitting these reports, the contents must be verifi ed and approved by each programme head, before submission to the M&E unit for consolidation and further verifi cation.
Afterwards, quarterly quality assurance meetings were convened to review and fi nalise the consolidated plan for consideration and approval by the Accounting Offi cer. He then submitted the completed quarterly performance reports to the corresponding stakeholders, including the National Treasury and the Gauteng Provincial Legislature.
Figure 1: A graphical presentation of the Annual Performance Plan process
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14. Events occurring after the reporting dateThe Department is not aware of any events that occurred after the balance sheet date.
15. SCOPA and other oversight bodies’ resolutions The GDF did not receive any resolutions from the Standing Committee on Public Accounts (SCOPA).
16. Prior modifi cations to audit reportsTable 5: Prior modifi cations to audit reports
Nature of matters of non-compliance Financial year in which it fi rst arose
Progress made in clearing / resolving the matter
Non-compliance with Section 40(1) of the PFMA. Material misstatements in the Annual Financial Statements
2011\12 The 2012/13 Annual Financial Statements (AFS) would be subjected to rigorous scrutiny in order to avoid material misstatements.
A representative AFS’ team was formed to ensure the completeness, correctness, and accuracy of the AFS’.
Irregular, fruitless, and wasteful expenditure contrary to the requirements of section 38(1) (c) (ii) of the PFMA and Treasury Regulations 9.1.1.
2011\12 Identifi ed irregular, fruitless, and wasteful expenditures were tabled before the Departmental Acquisitions Committee (DAC) for regularisation as stipulated
Non-compliance with Treasury Regulation 8.2.3 of paying invoices within 30-days.
2011\12 A control register was devised to ensure to that all invoices were paid within the stipulated 30-day period. Funds were also ring-fenced to settle all accrued expenses during the fi rst quarter of the 2012/13 fi nancial year
17. Exemptions and deviations received from the National TreasuryNo exemptions or deviations were received
18. Interim Financial StatementsIn accordance with the Provincial Treasury’s Practice Note 5 of 2009, the GDF submitted its Interim Financial Statements to the Provincial Treasury within the specifi ed timeframes. These interim fi nancials were reviewed and duly approved by the Accounting Offi cer and Chief Financial Offi cer, and complied with the Provincial Treasury’s Practice Note.
19. OtherThe Department of Finance prepares its Annual Financial Statements on the Modifi ed Cash Basis of Accounting, which are populated on a specifi ed template that was provided by National Treasury.
20. ApprovalThe Annual Financial Statements as set out on pages 60 to 120 were approved by the Accounting Offi cer.
Mr Stewart Lumka
HoD: Gauteng Department of Finance
31 May 2013
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AUDIT COMMITTEE REPORTfor the year ended 31 March 2013
GAUTENG PROVINCIAL GOVERNMENT
Report of the Audit Committee – Cluster 02
Gauteng Department of FinanceWe are pleased to present our report for the fi nancial year ended 31 March 2013.
Audit Committee and Attendance:The Audit Committee consists of the external members listed hereunder and is required to meet a minimum of at least two times per annum as per provisions of the Public Finance Management Act (PFMA). In terms of the approved Terms of Reference (GPG Audit Committee Charter), fi ve meetings were held during the current year, i.e. three meetings for Quarterly Performance Reporting (fi nancial and non-fi nancial) and two meetings to review and discuss the Annual Financial Statements and the Auditor-General Report.
Non-Executive Members:
Name of Member Number of Meetings Attended
Mfanyana Salanje (Chairperson) 03
Maemili Ramataboe (Member) 05
Halima Nazeer (Member) 05
Executive Members:In terms of the GPG Audit Committee Charter, the Offi cials listed hereunder are obliged to attend the meetings of the Audit Committee:
Compulsory Attendees Number of Meetings Attended
Stewart Lumka (Head of Department) 02
Kgomotso Mojapelo (Chief Financial Offi cer) 05
Sempotseng Mmope (Chief Risk Offi cer) 03
The Audit Committee noted that the Head of Department did not attend three meetings. However, a letter of apology was tendered with a duly authorised representative attending on his behalf. The Head of Department is expected to prioritise and attend future meetings. The Audit Committee is satisfi ed that the Department adhered to the provisions of the GPG Audit Committee Charter.
The members of the Audit Committee met with the Senior Management of the Department and Internal Audit, collectively to address risks and challenges facing the Departments. A number of in-committee meetings were held to address control weaknesses and conflicts with the Department.
Audit Committee ResponsibilityThe Audit Committee reports that it has complied with its responsibilities arising from section 38 (1) (a) of the PFMA and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this Charter and has discharged all its responsibilities as contained therein.
The effectiveness of internal control The Audit Committee has observed that the overall control environment has continued to improve during the year under review. However, there are still some concerns with the level of internal controls within the Department where evidence of lapses of effective monitoring and enforcement by Management were observed.
During the year under review, several defi ciencies in the system of internal control and deviations were reported by the Auditor-General South Africa. In certain instances, the matters reported previously have not been fully and satisfactorily addressed.
The quality of in year management and monthly / quarterly reports submitted in terms of the PFMA and the Division of Revenue Act The Audit Committee is satisfi ed with the content and quality of quarterly reports prepared and issued by the Accounting Offi cer of the Department during the year under review, in compliance with the statutory reporting framework.
Evaluation of Financial StatementsThe Audit Committee has:
• reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report, with the Auditor-General and the Accounting Offi cer;
Gauteng Provincial Government | Finance | Annual Report 2012/2013
54
AUDIT COMMITTEE REPORTfor the year ended 31 March 2013
• reviewed the Auditor-General’s management report and management’s response thereto;
• reviewed the Department’s compliance with legal and regulatory provisions; and
• reviewed signifi cant adjustments resulting from the audit.
The Audit Committee concurs with and accepts the Auditor-General’s conclusions on the Annual Financial Statements, and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the Auditor-General.
Internal Audit The Audit Committee is satisfi ed that the Internal Audit plans addresses a clear alignment with the major risks, adequate information systems coverage, a good balance between different categories of audits, i.e. risk-based, mandatory, performance and follow-up audits.
The Audit Committee has noted considerable improvement in the communication between the Executive Management, the Auditor-General and the Internal Audit Function, which has strengthened the Corporate Governance initiatives.
The Audit Committee wishes to stress that in order for the Internal Audit Function to operate at optimal level as expected by the Audit Committee, it requires more capacity and skills.
Risk ManagementProgress on Departmental risk management was reported to the Audit Committee on a quarterly basis. The Audit Committee is satisfi ed that the actual management of risk is receiving attention, although there are areas that still require improvement and Management should take full responsibility for risk management and support the Chief Risk Offi cer.
Forensic InvestigationsThe Audit Committee is not entirely satisfi ed that the forensic investigations are properly reported with age-analysis of all reported issues indicated. Details of results in respect of investigations conducted as a result of calls through the fraud hotline were not provided to the Committee. This is an area of improvement going forward.
One-on-One Meetings with the Accounting Offi cerThe Audit Committee has met with the Accounting Offi cer for the Department to address unresolved issues.
One-on-One Meetings with the Executive AuthorityThe Audit Committee has met with the Executive Authority for the Department to apprise him on the performance of the Department.
Auditor-General South Africa The Audit Committee has met with the Offi ce of the Auditor-General South Africa to ensure that there are no unresolved issues
…………………………………………
Mfanyana Salanje (Mr.)
Chairperson of the Audit Committee
Date: 31 July 2013
REPORT OF THE AUDITOR-GENERALfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
55
REPORT ON THE FINANCIAL STATEMENTS
Introduction 1. I have audited the fi nancial statements of the
Gauteng Department of Finance set out on pages 60 to 111, which comprise the appropriation statement, statement of fi nancial position as at 31 March 2013, the statement of fi nancial performance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of signifi cant accounting policies and other explanatory information.
Accounting Offi cer’s responsibility for the fi nancial statements
2. The accounting offi cer is responsible for the preparation of these fi nancial statements in accordance with the Departmental Financial Reporting Framework prescribed by the National Treasury and the requirements of the Public Finance Management Act,1999 (Act No.1 of 1999)(PFMA), and for such internal control as the accounting offi cer determines is necessary to enable the preparation of fi nancial 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
fi nancial 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 fi nancial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement
of the fi nancial 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 fi nancial 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 fi nancial statements.
5. I believe that the audit evidence I have obtained is suffi cient and appropriate to provide a basis for my audit opinion.
Opinion6. In my opinion, the fi nancial statements present fairly,
in all material respects, the fi nancial position of the Gauteng Department of Finance as at 31 March 2013, and its fi nancial performance and cash flows for the year then ended in accordance with the Departmental Financial Reporting Framework prescribed by the National Treasur y and the requirements of PFMA.
Additional matters 7. I draw attention to the matter below. My opinion is not
modifi ed in respect of this matter.
Financial reporting framework8. I draw attention to the matters below. My opinion is
not modifi ed in respect of these matters. The fi nancial reporting framework prescribed by the National Treasury and applied by the Gauteng Department of Finance is a compliance framework. The wording of my opinion on a compliance framework should reflect that the fi nancial 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 fi nancial statements. The wording of my opinion therefore reflects this requirement.
REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE ON VOTE NO.12: GAUTENG DEPARTMENT OF FINANCE
REPORT OF THE AUDITOR-GENERALfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
56
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
9. In accordance with the PAA and the General Notice issued in terms thereof, I report the following fi ndings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.
Predetermined objectives 10. I performed procedures to obtain evidence about the
usefulness and reliability of the information in the annual performance report as set out on pages 16 to 45 of the annual report.
11. 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’s 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 defi ned, verifi able, specifi c, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.
The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).
12. There were no material fi ndings on the annual performance report concerning the usefulness and reliability of the information.
Compliance with laws and regulations 13. I performed procedures to obtain evidence that
the entity has complied with applicable laws and regulations regarding fi nancial matters, fi nancial management and other related matters. My fi ndings on material non-compliance with specifi c matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:
Annual fi nancial statements14. The fi nancial statements submitted for auditing were
not prepared in all material respects in accordance with the requirements of section 40(1) of the PFMA as material adjustments were identifi ed during the audit.
Human Resource Management15. The department did not ensure that all new
appointments were vetted in contravention of Public Service Regulations 2001, PSR 1/ VII/ D8, read together with Public Service DPSA Circular 14/1/1/P.
Internal control 16. I considered internal control relevant to my audit of the
fi nancial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the signifi cant defi ciencies that resulted from the fi ndings on compliance with laws and regulations included in this report.
Leadership17. Inadequate oversight responsibility over fi nancial
reporting and compliance with laws and regulations and related internal controls which resulted in instances of non-compliance with DPSA.
18. Inadequate human resource management to ensure that adequate and suffi ciently skilled resources are in place and that performance is monitored.
Financial and performance management
19. The fi nancial statements submitted for audit were subject to material amendments resulting from the audit.
Governance20. Inadequate risk management activities to ensure that
regular risk assessments for consideration of IT risks are conducted and that a risk strategy to address the risks was fully implemented and monitored.
REPORT OF THE AUDITOR-GENERALfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
57
OTHER REPORTS
Investigations21. The department initiated fourteen investigations into
allegations of supply chain management, fraud and fi nancial misconduct of which eight investigation reports have been issued during the course of the year. The remaining six investigations are still in progress at year end.
Johannesburg
31 July 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
58
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Appr
opria
tion
per p
rogr
amm
e
2012
/13
2011
/12
SUM
MAR
YAd
just
ed
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
1.
ADM
INIS
TRAT
ION
178
462
-(2
399
)17
6 06
314
8 49
327
570
249
578
229
435
Curre
nt p
aym
ent
171
351
(1 7
84)
(2 3
99)
167
168
139
598
27 5
7084
240
552
222
224
Tran
sfer
s an
d su
bsid
ies
136
(49)
-87
87-
100
121
122
Paym
ent f
or c
apita
l ass
ets
6 93
61
726
-8
662
8 66
2-
100
7 78
45
969
Paym
ent f
or fi
nanc
ial a
sset
s39
107
-14
614
6-
100
1 12
11
120
2.
GAU
TEN
G A
UDI
T SE
RVIC
ES53
443
--
53 4
4348
672
4 77
148
727
43 9
50
Curre
nt p
aym
ent
53 3
06(4
4)-
53 2
6248
513
4 74
991
48 7
2743
950
Tran
sfer
s an
d su
bsid
ies
137
1-
138
116
2284
--
Paym
ent f
or fi
nanc
ial a
sset
s-
43-
4343
-10
0-
-
3.
TECH
NO
LOG
Y SU
PPO
RT S
ERVI
CES
941
884
-2
432
944
316
944
316
-87
7 33
187
7 33
1
Curre
nt p
aym
ent
929
894
(76
282)
-85
3 61
285
3 61
2-
100
870
658
870
659
Tran
sfer
s an
d su
bsid
ies
106
(15)
-91
91-
100
5857
Paym
ent f
or c
apita
l ass
ets
11 8
8476
081
2 43
290
397
90 3
97-
100
6 61
56
615
Paym
ent f
or fi
nanc
ial a
sset
s-
216
-21
621
6-
100
- -
Gauteng Provincial Government | Finance | Annual Report 2012/2013
59
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Appr
opria
tion
per p
rogr
amm
e
2012
/13
2011
/12
SUM
MAR
YAd
just
ed
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
4. P
ROCU
REM
ENT
SERV
ICES
68 0
99-
-68
099
62 6
995
400
98 4
4388
637
Curre
nt p
aym
ent
68 0
61(3
8)-
68 0
2362
623
5 40
092
98 2
6288
456
Tran
sfer
s an
d su
bsid
ies
38(1
9)-
1919
-10
018
118
1
Paym
ent f
or fi
nanc
ial a
sset
s-
57-
5757
-10
0-
-
5.
HU
MAN
RES
OU
RCE
SERV
ICES
91 3
77-
(33)
91 3
4487
605
3 73
994
440
78 5
04
Curre
nt p
aym
ent
91 2
03(8
3)-
91 1
2087
448
3 67
296
94 2
9278
354
Tran
sfer
s an
d su
bsid
ies
140
--
140
7466
5313
513
7
Paym
ent f
or c
apita
l ass
ets
34-
(33)
1-
1-
1313
Paym
ent f
or fi
nanc
ial a
sset
s-
83-
8383
-10
0-
-
6.
SUST
AIN
ABLE
RES
OU
RCE
MAN
AGEM
ENT
--
--
--
86 4
6683
893
Curre
nt p
aym
ent
--
--
--
-36
366
33 7
93
Tran
sfer
s an
d su
bsid
ies
--
--
--
-50
000
50 0
00
Paym
ent f
or fi
nanc
ial a
sset
s-
--
--
--
100
100
Gauteng Provincial Government | Finance | Annual Report 2012/2013
60
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Appr
opria
tion
per p
rogr
amm
e
2012
/13
2011
/12
SUM
MAR
YAd
just
ed
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
7. F
INAN
CIAL
GO
VERN
ANCE
--
--
--
-40
638
33 7
48
Curre
nt p
aym
ent
--
--
--
-40
633
33 7
43
Tran
sfer
s an
d su
bsid
ies
--
--
--
-5
5
8.
PRO
VIN
CIAL
ACC
OU
NTI
NG
SER
VICE
S-
--
--
--
55 6
1350
640
Curre
nt p
aym
ent
--
--
--
-55
613
50 6
39
Tran
sfer
s an
d su
bsid
ies
--
--
--
--
1
Subt
otal
1 33
3 26
5-
-1
333
265
1 29
1 78
541
480
971
551
236
1 48
6 13
8
TOTA
L1
333
265
--
1 33
3 26
51
291
785
41 4
8097
1 55
1 23
61
486
138
Gauteng Provincial Government | Finance | Annual Report 2012/2013
61
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reFi
nal
Appr
opria
tion
Act
ual
Expe
nditu
re
TOTA
L (b
roug
ht fo
rwar
d)1
333
265
1 29
1 78
51
551
236
1 48
6 13
8
Reco
ncili
atio
n w
ith s
tate
men
t of fi
nan
cial
per
form
ance
ADD
Depa
rtmen
tal r
ecei
pts
2 35
516
7 33
0
Actu
al a
mou
nts
per s
tate
men
t of fi
nan
cial
per
form
ance
(tot
al re
venu
e)1
335
620
1 71
8 56
6
Actu
al a
mou
nts
per s
tate
men
t of fi
nan
cial
per
form
ance
(tot
al e
xpen
ditu
re)
1 29
1 78
51
486
138
Gauteng Provincial Government | Finance | Annual Report 2012/2013
62
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Appr
opria
tion
per e
cono
mic
cla
ssifi
catio
n
2012
/13
2011
/12
SUM
MAR
YAd
just
edAp
prop
riatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
Curr
ent p
aym
ents
Com
pens
atio
n of
em
ploy
ees
410
634
(5 6
40)
-40
4 99
438
5 17
319
821
9557
7 79
152
9 09
9
Goo
ds a
nd s
ervi
ces
903
180
(72
592)
(2 3
99)
828
189
806
620
21 5
6997
895
914
887
322
Inte
rest
and
rent
on
land
39(3
9)-
--
--
11 3
9711
398
Tran
sfer
s an
d su
bsid
ies
Depa
rtmen
tal a
genc
ies
and
acco
unts
--
--
--
-50
000
50 0
00
Hou
seho
lds
558
(84)
-47
438
787
8250
250
1
Paym
ents
for c
apita
l ass
ets
Mac
hine
ry a
nd e
quip
men
t18
854
(2 7
40)
(33)
16 0
8116
079
210
014
398
12 5
84
Softw
are
and
othe
r int
angi
ble
asse
ts-
80 5
492
432
82 9
8182
981
-10
0-
-
Paym
ents
for fi
nan
cial
ass
ets
-54
6-
546
545
110
01
234
1 23
4
Tota
l1
333
265
--
1 33
3 26
51
291
785
41 4
8097
1 55
1 23
61
492
138
Gauteng Provincial Government | Finance | Annual Report 2012/2013
63
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Deta
il pe
r pro
gram
me
1 –
ADM
INIS
TRAT
ION
For t
he y
ear e
nded
31
Mar
ch 2
013
2012
/13
2011
/12
Deta
il pe
r sub
-pro
gram
me
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
1.1
OFF
ICE
OF
THE
HO
D
Curre
nt p
aym
ent
3 77
5(2
6)-
3 74
92
661
1 08
871
23 7
0423
704
Paym
ent f
or c
apita
l ass
ets
826
-34
34-
100
--
1.2
FORE
NSI
C SE
RVIC
ES
Curre
nt p
aym
ent
10 9
9411
4-
11 1
0810
177
931
9211
214
8 88
7
Paym
ent f
or c
apita
l ass
ets
1 30
0(1 3
00)
--
--
--
-
1.3
RISK
MAN
AGEM
ENT
Curre
nt p
aym
ent
1 92
9-
-1
929
1 70
022
988
--
Tran
sfer
s an
d su
bsid
ies
1011
-21
21-
100
--
1.4
OFF
ICE
OF
THE
CFO
Curre
nt p
aym
ent
68 8
84(6 5
08)
(2 3
99)
59 9
7738
994
20 9
8365
40 8
6139
435
Tran
sfer
s an
d su
bsid
ies
-5
-5
5-
100
78
Paym
ent f
or c
apita
l ass
ets
4 63
33
328
- 7
961
7 96
1-
100
6 00
04
186
Paym
ent f
or fi
nanc
ial a
sset
s-
73-
7373
-10
01
121
1 12
0
Gauteng Provincial Government | Finance | Annual Report 2012/2013
64
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Deta
il pe
r pro
gram
me
1 –
ADM
INIS
TRAT
ION
For t
he y
ear e
nded
31
Mar
ch 2
013
2012
/13
2011
/12
Deta
il pe
r sub
-pro
gram
me
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
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000
R’00
0
1.5
CORP
ORA
TE S
ERVI
CES
Curre
nt p
aym
ent
85 7
694
636
-90
405
86 0
664
339
9595
626
82 0
61
Tran
sfer
s an
d su
bsid
ies
126
(65)
-61
61-
100
6666
Paym
ent f
or c
apita
l ass
ets
995
(328
)-
667
667
-10
087
787
6
Paym
ent f
or fi
nanc
ial a
sset
s39
34-
7373
-10
0-
-
1.6
OFF
ICE
OF
THE
MEC
Curre
nt p
aym
ent
--
--
--
-5
808
5 80
8
Paym
ent f
or c
apita
l ass
ets
--
--
--
-90
790
7
1.7
DIV
ISIO
NAL
HEA
D: T
S
Curre
nt p
aym
ent
--
--
--
-2
376
2 37
6
1.8
DIV
ISIO
NAL
HEA
D: S
S
Curre
nt p
aym
ent
--
--
--
-1
069
71
Gauteng Provincial Government | Finance | Annual Report 2012/2013
65
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Deta
il pe
r pro
gram
me
1 –
ADM
INIS
TRAT
ION
For t
he y
ear e
nded
31
Mar
ch 2
013
2012
/13
2011
/12
Deta
il pe
r sub
-pro
gram
me
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
1.9
STR
TG M
NG
MN
T &
ENTR
S IN
TRG
TN
Curre
nt p
aym
ent
--
--
--
-44 7
7044
772
Tran
sfer
s an
d su
bsid
ies
--
--
--
-44
44
1.10
DO
CUM
ENTS
& R
ECO
RDS
MAN
AGM
NT
Curre
nt p
aym
ent
--
--
--
-15 1
2415
110
Tran
sfer
s an
d su
bsid
ies
--
--
--
-4
4
Tota
l17
8 46
2-
(2 3
99)
176
063
148
493
27 5
7084
249
578
229
435
Gauteng Provincial Government | Finance | Annual Report 2012/2013
66
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Stat
utor
y Ap
prop
riatio
n pe
r eco
nom
ic c
lass
ifi ca
tion
2012
/13
2011
/12
Pro
gram
me
1 Pe
r Eco
nom
ic c
lass
ifi ca
tion
Ad
just
edAp
prop
riatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
Curr
ent p
aym
ents
Com
pens
atio
n of
em
ploy
ees
80 2
83-
-80
283
72 5
987
685
9015
8 23
414
0 46
2
Goo
ds a
nd s
ervi
ces
91 0
67(1 7
84)
(2 3
99)
86 8
8467
001
19 8
8377
82 1
0381
547
Inte
rest
and
rent
on
land
39(3
9)-
--
--
216
216
Tran
sfer
s an
d su
bsid
ies
Hou
seho
lds
137
(50)
-87
87-
100
121
120
Paym
ents
for c
apita
l ass
ets
Mac
hine
ry a
nd e
quip
men
t6
936
1 63
2-
8 56
88
567
110
07
783
5 96
9
Softw
are
and
othe
r int
angi
ble
asse
ts-
95-
9595
-10
0-
-
Paym
ents
for fi
nan
cial
ass
ets
-14
6-
146
145
199
1 12
11
121
Tota
l17
8 46
2-
(2 3
99)
176
063
148
493
27 5
7084
249
578
229
435
Gauteng Provincial Government | Finance | Annual Report 2012/2013
67
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Deta
il pe
r pro
gram
me
2 –
GAU
TEN
G A
UDI
T SE
RVIC
ESFo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Deta
il pe
r sub
-pro
gram
me
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
2.1
GAS
PRO
GRA
MM
E SU
PPO
RT
Curre
nt p
aym
ent
3 99
8(3
27)
-3
671
2 25
51
416
612
314
1 73
9
Tran
sfer
s an
d su
bsid
ies
81(4
8)-
3311
2233
--
Paym
ent f
or fi
nanc
ial a
sset
s-
3-
33
-10
0-
-
2.2
RISK
& C
OM
PUTE
R AU
DIT
SERV
ICES
CLS
TR 1
.2.3
Curre
nt p
aym
ent
12 2
455
146
-17
391
17 3
91-
100
17 7
7416
013
Paym
ent f
or fi
nanc
ial a
sset
s-
6-
66
-10
0-
-
2.3
RIS
K &
COM
PUTE
R AU
DIT
SERV
ICES
CLS
TR 4
.5.
Curre
nt p
aym
ent
18 4
16(5 1
53)
-13
263
11 5
691
694
8711
727
10 9
41
Tran
sfer
s an
d su
bsid
ies
-45
-45
45-
100
--
Paym
ent f
or fi
nanc
ial a
sset
s-
25-
2525
-10
0-
-
Gauteng Provincial Government | Finance | Annual Report 2012/2013
68
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Deta
il pe
r pro
gram
me
2 –
GAU
TEN
G A
UDI
T SE
RVIC
ESFo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Deta
il pe
r sub
-pro
gram
me
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
2.4
PER
FORM
ANCE
AN
D CO
MPU
TER
AUDI
T
Curre
nt p
aym
ent
14 6
5929
0-
14 9
4913
369
1 58
089
12 6
9311
040
Tran
sfer
s an
d su
bsid
ies
564
-60
60-
100
--
Paym
ent f
or fi
nanc
ial a
sset
s-
9-
99
-10
0-
-
2.5
AUDI
T CE
NTR
E O
F EX
CELL
ENCE
Curre
nt p
aym
ent
3 98
8-
-3
988
3 92
959
994
219
4 21
7
Tota
l53
443
--
53 4
4348
672
4 77
191
48 7
2743
950
Gauteng Provincial Government | Finance | Annual Report 2012/2013
69
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Econ
omic
cla
ssifi
catio
nAd
just
edAp
prop
riatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
Curr
ent p
aym
ents
Com
pens
atio
n of
em
ploy
ees
48 5
38-
-48
538
45 2
043
334
9347
127
42 9
21
Goo
ds a
nd s
ervi
ces
4 76
8(4
3)-
4 72
53
309
1 41
670
1 60
01
029
Tran
sfer
s an
d su
bsid
ies
to:
Hou
seho
lds
137
--
137
116
2185
--
Paym
ents
for fi
nan
cial
ass
ets
-43
-43
43-
100
--
Tota
l53
443
--
53 4
4348
672
4 77
191
48 7
2743
950
Gauteng Provincial Government | Finance | Annual Report 2012/2013
70
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Deta
il pe
r pro
gram
me
3 –
TEC
HN
OLO
GIC
AL S
UPP
ORT
SER
VICE
SFo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Deta
il pe
r sub
-pro
gram
me
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
3.1
TSS
PRO
GRA
MM
E SU
PPO
RT
Curre
nt p
aym
ent
1 68
1(1
61)
-1
520
1 52
0-
100
1 70
61
706
Tran
sfer
s an
d su
bsid
ies
53(5
3)-
--
--
--
Paym
ent f
or fi
nanc
ial a
sset
s-
24-
2424
-10
0-
-
3.2
PRO
GRA
MM
ES A
ND
APPL
ICAT
ION
Curre
nt p
aym
ent
92 6
491
443
-94
092
94 0
92-
100
59 1
8159
180
Tran
sfer
s an
d su
bsid
ies
2825
-53
53-
100
2020
Paym
ent f
or c
apita
l ass
ets
68(6
8)-
--
--
--
Paym
ent f
or fi
nanc
ial a
sset
s-
115
-11
511
5-
100
--
3.3
PLA
NN
ING
AN
D O
PERA
TIO
NS
Curre
nt p
aym
ent
239
097
(4 5
69)
-23
4 52
823
4 52
8-
100
233
247
233
248
Tran
sfer
s an
d su
bsid
ies
255
-30
30-
100
3232
Paym
ent f
or c
apita
l ass
ets
11 8
16(4 3
04)
-7
512
7 51
2-
100
6 61
56
615
Paym
ent f
or fi
nanc
ial a
sset
s-
77-
7777
-10
0-
-
Gauteng Provincial Government | Finance | Annual Report 2012/2013
71
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Deta
il pe
r pro
gram
me
3 –
TEC
HN
OLO
GIC
AL S
UPP
ORT
SER
VICE
SFo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Deta
il pe
r sub
-pro
gram
me
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
3.4
E-
GO
VERN
MEN
T
Curre
nt p
aym
ent
596
467
(72
995)
-52
3 47
252
3 47
2-
100
576
524
576
525
Tran
sfer
s an
d su
bsid
ies
-8
-8
8-
100
65
Paym
ent f
or c
apita
l ass
ets
-80
453
2 43
282 8
8582 8
85-
100
--
Tota
l94
1 88
4-
2 43
294
4 31
694
4 31
6-
100
877
331
877
331
Gauteng Provincial Government | Finance | Annual Report 2012/2013
72
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Econ
omic
cla
ssifi
catio
nAd
just
edAp
prop
riatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
Curr
ent p
aym
ents
Com
pens
atio
n of
em
ploy
ees
125
277
(5 5
63)
-11
9 71
411
9 71
4-
100
68 3
4968
350
Goo
ds a
nd s
ervi
ces
804
617
(70
720)
-73
3 89
773
3 89
7-
100
791
131
791
130
Inte
rest
and
rent
on
land
--
--
--
-11
178
11 1
79
Tran
sfer
s an
d su
bsid
ies
to:
Hou
seho
lds
106
(15)
-91
91-
100
5857
Paym
ent f
or c
apita
l ass
ets
Mac
hine
ry a
nd e
quip
men
t11
884
(4 3
72)
-7
512
7 51
2-
100
6 61
56
615
Softw
are
and
othe
r int
angi
ble
asse
ts-
80 4
542
432
82 8
8682
886
-10
0-
-
Paym
ents
for fi
nan
cial
ass
ets
-21
6-
216
216
-10
0-
-
Tota
l94
1 88
4-
2 43
294
4 31
694
4 31
6-
100
877
331
877
331
Gauteng Provincial Government | Finance | Annual Report 2012/2013
73
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Deta
il pe
r pro
gram
me
4 –
PRO
CURE
MEN
T SE
RVIC
ESFo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Deta
il pe
r sub
-pro
gram
me
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
4.1
PRO
CURE
MEN
T SU
PPO
RT
Curre
nt p
aym
ent
3 22
531
7-
3 54
23
542
-10
07
917
6 23
5
Tran
sfer
s an
d su
bsid
ies
18(1
8)-
--
--
--
Paym
ent f
or fi
nanc
ial a
sset
s-
4-
44
-10
0-
-
4.2
TRAN
SVER
SAL
SERV
ICES
Curre
nt p
aym
ent
31 3
37(1 5
55)
-29
782
24 3
825
400
8253
829
48 7
56
Tran
sfer
s an
d su
bsid
ies
--
--
--
-13
613
6
Paym
ent f
or fi
nanc
ial a
sset
s-
49-
4949
-10
0-
-
4.3
PRO
CURE
MEN
T SO
URC
E AN
D SU
PPO
RT S
ERVI
CES
CLU
S1
Curre
nt p
aym
ent
33 4
991
200
-34
699
34 6
99-
100
36 5
1633
465
Tran
sfer
s an
d su
bsid
ies
20(1
)-
1919
-10
045
45
Paym
ent f
or fi
nanc
ial a
sset
s-
4-
44
-10
0-
-
Tota
l68
099
--
68 0
9962
699
5 40
092
98 4
4388
637
Gauteng Provincial Government | Finance | Annual Report 2012/2013
74
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Econ
omic
cla
ssifi
catio
nAd
just
edAp
prop
riatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
Curr
ent p
aym
ents
Com
pens
atio
n of
em
ploy
ees
66 1
462
-66
148
60 7
485
400
9292
178
84 2
23
Goo
ds a
nd s
ervi
ces
1 91
5(4
0)-
1 87
5 1 8
75-
100
6 08
44
233
Tran
sfer
s an
d su
bsid
ies
to:
Hou
seho
lds
38(1
9)-
1919
-10
018
118
1
Paym
ents
for fi
nan
cial
ass
ets
-57
-57
57-
100
--
Tota
l68
099
--
68 0
9962
699
5 40
092
98 4
4388
637
Gauteng Provincial Government | Finance | Annual Report 2012/2013
75
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
Deta
il pe
r pro
gram
me
5 –
HU
MAN
RES
OU
RCE
SERV
ICES
For t
he y
ear e
nded
31
Mar
ch 2
013
2012
/13
2011
/12
Deta
il pe
r sub
-pro
gram
me
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
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nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
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nAc
tual
expe
nditu
re
R’00
0R’
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R’00
0R’
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R’00
0R’
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%R’
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R’00
0
5.1
HRS
PRO
GRA
MM
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PPO
RT
Curre
nt p
aym
ent
134
--
134
134
-10
01
816
1 47
3
Tran
sfer
s an
d su
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ies
70(4
)-
66-
66-
11
Paym
ent f
or c
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l ass
ets
--
--
--
-13
13
Paym
ent f
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nanc
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sset
s-
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-10
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-
5.2
HR
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SOR
SERV
ICES
Curre
nt p
aym
ent
30 7
70(9
98)
-29
772
26 4
333
339
8936
534
26 9
43
Tran
sfer
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bsid
ies
244
-28
28-
100
8485
Paym
ent f
or c
apita
l ass
ets
34-
(33)
1-
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--
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ent f
or fi
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ial a
sset
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5.3
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ERVI
CES
Curre
nt p
aym
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60 2
9991
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61 2
1460
881
333
100
55 9
4249
938
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sfer
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-46
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5051
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1313
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0-
-
Tota
l91
377
-(3
3)91
344
87 6
053
739
9694
440
78 5
04
Gauteng Provincial Government | Finance | Annual Report 2012/2013
76
Appr
opria
tion
Stat
emen
tfo
r the
yea
r end
ed 3
1 M
arch
201
3
2012
/13
2011
/12
Econ
omic
cla
ssifi
catio
nAd
just
edAp
prop
riatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
Appr
opria
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Actu
alEx
pend
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Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
R’00
0R’
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R’00
0R’
000
R’00
0R’
000
%R’
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R’00
0
Curr
ent p
aym
ents
Com
pens
atio
n of
em
ploy
ees
90 3
90(7
9)-
90 3
1186
909
3 40
296
91 4
9777
058
Goo
ds a
nd s
ervi
ces
813
(5)
-80
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827
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2 79
11
293
Inte
rest
and
rent
on
land
--
--
--
-3
3
Tran
sfer
s an
d su
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to:
Hou
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140
--
140
7466
5313
613
7
Paym
ent f
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ry a
nd e
quip
men
t34
-(3
3)1
-1
--
-
Paym
ents
for fi
nan
cial
ass
ets
-84
-84
84-
100
1313
Tota
l91
377
-(3
3)91
344
87 6
053
739
9694
440
78 5
04
Gauteng Provincial Government | Finance | Annual Report 2012/2013
77
NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2013
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 1C and 1H to the Annual Financial Statements.
2. Detail of specifi cally 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 fi nancial assetsDetail of these transactions per programme can be viewed in the note on Payments for fi nancial assets to the Annual Financial Statements.
4. Explanations of material variances from Amounts Voted (after Virement):4.1 Variance as a % of Final Appropriation
Per Programme Actual Expenditure
Final appropriation
Variance Variance as a % of Final
Appropriation
R’000 R’000 R’000
Administration 176 063 148 493 27 570 16
Gauteng Audit Services 53 443 48 672 4 771 9
Technology Support Services 944 316 944 316 0 0
Procurement Services 68 099 62 699 5 400 8
Human Resource Services 91 344 87 605 3 739 4
Total 1 333 265 1 291 785 41 480 3
Administration
R27,5 million under spent due to:
• R7,7 million on Compensation of employees as a result of vacant posts that were not fi lled at the end of the fi nancial year.
• R19,8 million on goods and services as a result of non-payments on some projects were invoices were submitted late.
Gauteng Audit Services
R 4,7 million under spent due to:
• R3,3 million on Compensation of Employees as a result of vacant posts that were not fi lled at the end of the fi nancial year.
• R1,4 million on goods and services as a result of Audit Consulting Services that were partially completed.
Gauteng Provincial Government | Finance | Annual Report 2012/2013
78
NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2013
Procurement Services
R5,4 million under spent due to:
• Compensation of employees as a result of vacant posts that were not fi lled at the end of fi nancial year.
Human Resources Services
R3,7 million under spending due to:
• R3,4 million on Compensation of employees as a result of vacant posts not fi lled at the end of the fi nancial year.
• R270 000 on goods and services as a result of partly delivered services from the credit bureau facility and debt management at the end of the fi nancial year.
• R66 000 on households
• R1 000 on Machinery and Equipment
4.2 Per economic classifi cation
Final Appropriation
Actual Expenditure
Variance Variance as a % of Final Appropriation
R’000 R’000 R’000 %
Current payments
Compensation of employees 404 994 385 172 19 822 5
Goods and services 828 190 806 618 21 572 3
Transfers and subsidies
Households 474 388 86 18
Payments for capital assets
Machinery and equipment 16 080 16 080 0 0
Software and other intangible assets 82 981 82 981 0 0
Payments for fi nancial assets 546 546 0 0
R 41,4 million under spending relates to:
R 19,8 million under compensation of employees due to vacant posts that were not fi lled as at the end of fi nancial year.
R 21,6 million under goods and services as a result on delays of invoices and transfers of funds, non-Finalisation of some projects and consultation services that were partially completed.
Gauteng Provincial Government | Finance | Annual Report 2012/2013
79
STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2013
Note 2012/13 2011/12
R’000 R’000
REVENUE
Annual appropriation 1 1 333 265 1 551 236
Departmental revenue 2 2 355 167 330
TOTAL REVENUE 1 335 620 1 718 566
EXPENDITURE
Current expenditure
Compensation of employees 3 385 173 523 099
Goods and services 4 806 620 887 322
Interest and rent on land 5 - 11 398
Total current expenditure 1 191 793 1 421 819
Total transfers and subsidies 7 387 50 501
Expenditure for capital assets
Tangible capital assets 8 16 079 9 829
Software and other intangible assets 8 82 981 2 755
Total expenditure for capital assets 99 060 12 584
Payments for fi nancial assets 6 545 1 234
TOTAL EXPENDITURE 1 291 785 1 486 138
SURPLUS FOR THE YEAR 43 835 232 428
Reconciliation of Net Surplus for the year
Voted funds 41 480 65 098
Departmental revenue 14 2 355 167 330
SURPLUS FOR THE YEAR 43 835 232 428
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STATEMENT OF FINANCIAL POSITIONfor the year ended 31 March 2013
Note 2012/13 2011/12
R’000 R’000
ASSETS
Current assets 51 120 83 741
Unauthorised expenditure 9 - 5 534
Cash and cash equivalents 10 20 158 36 894
Prepayments and advances 11 50 50
Receivables 12 30 912 41 263
TOTAL ASSETS 51 120 83 741
LIABILITIES
Current liabilities 51 120 83 741
Voted funds to be surrendered to the Revenue Fund 13 41 480 68 222
Departmental revenue to be surrendered to the Revenue Fund14 165 353
Payables 15 9 475 15 166
TOTAL LIABILITIES 51 120 83 741
NET ASSETS - -
Gauteng Provincial Government | Finance | Annual Report 2012/2013
81
CASH FLOW STATEMENTfor the year ended 31 March 2013
Note 2012/13 2011/12
R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 1 335 620 1 718 566
Annual appropriated funds received 1 1 333 265 1 551 236
Departmental revenue received 2 2 355 167 330
Net (increase)/decrease in working capital 10 194 (3 811)
Surrendered to Revenue Fund (70 765) (207 555)
Current payments (1 191 793) (1 421 819)
Payments for fi nancial assets (545) (1 234)
Transfers and subsidies paid (387) (50 501)
Net cash fl ow available from operating activities 16 82,324 33,646
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 8 (99 060) (12 584)
Net cash fl ows from investing activities (99 060) (12 584)
Net increase/(decrease) in cash and cash equivalents (16 736) 21 062
Cash and cash equivalents at beginning of period 36 894 15 832
Cash and cash equivalents at end of period 17 20 158 36 894
ACCOUNTING POLICIESfor the year ended 31 March 2013
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82
The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. However, where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the Financial Statements and to comply with the statutory requirements of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2010.
1. Presentation of the Financial Statements
1.1 Basis of preparationThe fi nancial statements have been prepared on a modifi ed cash basis of accounting.
Under this basis, the effects of transactions and other events are recognised in the fi nancial records when the resulting cash is received or paid. The “modifi cation” results from the recognition of certain near-cash balances in the fi nancial statements as well as the revaluation of foreign investments and loans and the recognition of resulting revaluation gains and losses.
In addition supplementary information is provided in the disclosure notes to the fi nancial statements where it is deemed to be useful to the users of the fi nancial statements.
1.2 Presentation currencyAll amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.
1.3 RoundingUnless otherwise stated all fi nancial fi gures have been rounded to the nearest one thousand Rand (R’000).
1.4 Comparative fi guresPrior period comparative information has been presented in the current year’s fi nancial statements. Where necessary fi gures included
in the prior period fi nancial statements have been reclassifi ed to ensure that the format in which the information is presented is consistent with the format of the current year’s fi nancial statements.
1.5 Comparative fi gures - Appropriation StatementA comparison between actual amounts and fi nal appropriation per major classifi cation of expenditure is included in the Appropriation Statement.
2. Revenue2.1 Appropriated funds
Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory appropriation).
Appropriated funds are recognised in the fi nancial records on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the fi nancial records on the date the adjustments become effective.
Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts owing to the National/Provincial Revenue Fund at the end of the fi nancial year are recognised as payable in the statement of fi nancial position.
Any amount due from the National/Provincial Revenue Fund at the end of the fi nancial year is recognised as a receivable in the statement of fi nancial position.
2.2 Departmental revenueAll departmental revenue is recognised in the statement of fi nancial performance when received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.
Any amount owing to the National/Provincial Revenue Fund at the end if the fi nancial year is recognised as a payable in the statement of fi nancial position.
ACCOUNTING POLICIESfor the year ended 31 March 2013
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83
No accrual is made for amounts receivable from the last receipt date to the end of the reporting period. These amounts are however disclosed in the disclosure notes to the annual fi nancial statements.
2.3 Direct Exchequer receiptsAll direct exchequer receipts are recognised in the statement of fi nancial performance when the cash is received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.
Any amount owing to the National/Provincial Revenue Funds at the end of the fi nancial year is recognised as a payable in the statement of fi nancial position.
2.4 Direct Exchequer paymentsAll direct exchequer payments are recognised in the statement of fi nancial performance when fi nal authorisation for payment is effected on the system (by no later than 31 March of each year).
2.5 Aid assistanceAids assistance is recognised as revenue when received
All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexures to the Annual Financial Statements
The cash payments made during the year relating to aid assistance projects are recognised as expenditure in the statement of fi nancial performance when fi nal authorisation for payments is effected on the system (by no later than 31 March of each year)
The value of the assistance expensed prior to the receipt of funds is recognised as a receivable in the statement of fi nancial position.
Inappropriately expensed amounts using aid assistance and any unutilised amounts are recognised as payables in the statement of fi nancial position.
All CARA funds received must be recorded as revenue when funds are received. The cash payments made during the year relating to CARA earmarked projects are recognised as expenditure in the statement of fi nancial performance when fi nal authorisation for payments effected on the system (by no later then 31 March of each year)
Inappropriately expensed amounts using CARA funds are recognised as payables in the statement of fi nancial position. Any unutilised amounts are transferred to retained funds as they are not surrendered to the revenue fund
3. Expenditure3.1 Compensation of employees3.1.1 Salaries and wages
Salaries and wages are expensed in the statement of fi nancial performance when the fi nal authorisation for payment is effected on the system (by no later than 31 March of each year).
Other employee benefi ts that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the fi nancial statements at its face value and are not recognised in the statement of fi nancial 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 statement of fi nancial performance.
3.1.2 Social contributionsEmployer contributions to post employment benefi t plans in respect of current employees are expensed in the statement of fi nancial performance when the fi nal authorisation for payment is effected on the system (by no later than 31 March of each year).
ACCOUNTING POLICIESfor the year ended 31 March 2013
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84
No provision is made for retirement benefi ts in the fi nancial statements of the department. Any potential liabilities are disclosed in the fi nancial statements of the National Revenue Fund and not in the fi nancial statements of the employer department.
Employer contributions made by the department for certain of its ex-employees (such as medical benefi ts) are classifi ed as transfers to households in the statement of fi nancial performance.
3.2 Goods and servicesPayments made during the year for goods and/or services are recognised as an expense in the statement of fi nancial performance when the fi nal authorisation for payment is effected on the system (by no later than 31 March of each year).
The expense is classifi ed as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000). All other expenditures are classifi ed as current.
Rental paid for the use of buildings or other fi xed structures is classifi ed as goods and services and not as rent on land.
3.3 Interest and rent on landInterest and rental payments are recognised as an expense in the statement of fi nancial performance when the fi nal authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fi xed structures. If it is not possible to distinguish between payment for the use of land and the fi xed structures on it, the whole amount should be recorded under goods and services.
3.4 Payments for fi nancial assetsDebts are written off when identifi ed as irrecoverable. Debts written-off are limited to the amount of savings and/or underspending of appropriated funds. The write off occurs
at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the fi nancial statements.
All other losses are recognised when authorisation has been granted for the recognition thereof.
3.5 Transfers and subsidiesTransfers and subsidies are recognised as an expense when the fi nal authorisation for payment is effected on the system (by no later than 31 March of each year).
3.6 Unauthorised expenditureWhen confi rmed unauthorised expenditure is recognised as an asset in the statement of fi nancial position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the statement of fi nancial performance.
Unauthorised expenditure approved with funding is derecognised from the statement of fi nancial position when the unauthorised expenditure is approved and the related funds are received.
Where the amount is approved without funding it is recognised as expenditure in the statement of fi nancial performance on the date stipulated in the Act.
3.7 Fruitless and wasteful expenditureFruitless and wasteful expenditure is recognised as expenditure in the statement of fi nancial performance according to the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the statement of fi nancial performance.
ACCOUNTING POLICIESfor the year ended 31 March 2013
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85
3.8 Irregular expenditureIrregular expenditure is recognised as expenditure in the statement of fi nancial performance. If the expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable.
4. Assets4.1 Cash and cash equivalents
Cash and cash equivalents are carried in the statement of fi nancial position at cost.
Bank overdrafts are shown separately on the face of the statement of fi nancial position.
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.
4.2 Other fi nancial assetsOther fi nancial assets are carried in the statement of fi nancial position at cost.
4.3 Prepayments and advancesAmounts prepaid or advanced are recognised in the statement of fi nancial position when the payments are made and are derecognised as and when the goods/services are received or the funds are utilised.
Prepayments and advances outstanding at the end of the year are carried in the statement of fi nancial position at cost.
4.4 ReceivablesReceivables included in the statement of fi nancial position arise from cash payments made that are recoverable from another party (including departmental employees) and are derecognised upon recovery or write-off.
Receivables outstanding at year-end are carried in the statement of fi nancial position at cost plus any accrued interest. Amounts that
are potentially irrecoverable are included in the disclosure notes.
4.5 InvestmentsCapitalised investments are shown at cost in the statement of fi nancial position.
Investments are tested for an impairment loss whenever events or changes in circumstances indicate that the investment may be impaired. Any impairment loss is included in the disclosure notes.
4.6 LoansLoans are recognised in the statement of fi nancial position when the cash is paid to the benefi ciary. Loans that are outstanding at year-end are carried in the statement of fi nancial position at cost plus accrued interest.
Amounts that are potentially irrecoverable are included in the disclosure notes.
4.7 InventoryInventories that qualify for recognition must be initially reflected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition.
All inventory items at year-end are reflected using the weighted average cost or FIFO cost formula.
4.8 Capital assets4.8.1 Movable assets
Initial recognition
A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is defi ned as the total cost of acquisition. Where the cost cannot be determined accurately, the movable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R1.
All assets acquired prior to 1 April 2002 are included in the register R1.
ACCOUNTING POLICIESfor the year ended 31 March 2013
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86
Subsequent recognition
Subsequent expenditure of a capital nature is recorded in the statement of fi nancial performance as “expenditure for capital assets” and is capitalised in the asset register of the department on completion of the project.
Repairs and maintenance is expensed as current “goods and services” in the statement of fi nancial performance.
4.8.2 Immovable assetsInitial recognition
A capital asset is recorded on receipt of the item at cost. Cost of an asset is defi ned as the total cost of acquisition. Where the cost cannot be determined accurately, the immovable capital asset is stated at R1 unless the fair value for the asset has been reliably estimated.
Subsequent recognition
Work-in-progress of a capital nature is recorded in the statement of fi nancial performance as “expenditure for capital assets”. On completion, the total cost of the project is included in the asset register of the department that is accountable for the asset.
Repairs and maintenance is expensed as current “goods and services” in the statement of fi nancial performance.
4.8.3 Intangible assetsInitial recognition
An intangible asset is recorded in the asset register on receipt of the item at cost. Cost of an intangible asset is defi ned as the total cost of acquisition. Where the cost cannot be determined accurately, the intangible asset is stated at fair value. Where fair value cannot be determined, the intangible asset is included in the asset register at R1.
All intangible assets acquired prior to 1 April 2002 can be included in the asset register at R1.*
Subsequent expenditure
Subsequent expenditure of a capital nature is recorded in the statement of fi nancial performance as “expenditure for capital asset” and is capitalised in the asset register of the department.
Maintenance is expensed as current “goods and services” in the statement of fi nancial performance.
5. Liabilities5.1 Payables
Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost in the statement of fi nancial position.
5.2 Contingent liabilitiesContingent liabilities are included in the disclosure notes to the fi nancial statements when it is possible that economic benefi ts will flow from the department, or when an outflow of economic benefi ts or service potential is probable but cannot be measured reliably.
5.3 Contingent assetsContingent assets are included in the disclosure notes to the fi nancial statements when it is probable that an inflow of economic benefi ts will flow to the entity.
5.4 CommitmentsCommitments are not recognised in the statement of fi nancial position as a liability or as expenditure in the statement of fi nancial performance but are included in the disclosure notes.
5.5 AccrualsAccruals are not recognised in the statement of fi nancial position as a liability or as expenditure in the statement of fi nancial performance but are included in the disclosure notes.
5.6 Employee benefi tsShort-term employee benefi ts that give rise to
ACCOUNTING POLICIESfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
87
a present legal or constructive obligation are disclosed in the disclosure notes to the fi nancial statements. These amounts are not recognised in the statement of fi nancial performance or the statement of fi nancial position.
5.7 Lease commitmentsFinance lease
Finance leases are not recognised as assets and liabilities in the statement of fi nancial position. Finance lease payments are recognised as a capital expense in the statement of fi nancial performance and are not apportioned between the capital and the interest portions. The total fi nance lease payment is disclosed in the disclosure notes to the fi nancial statements.
Operating lease
Operating lease payments are recognised as an expense in the statement of fi nancial performance. The operating lease commitments are disclosed in the discloser notes to the fi nancial statement.
5.8 ImpairmentThe department tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An assessment of whether there is an indication of possible impairment is done at each reporting date. An estimate is made for doubtful loans and receivables based on a review of all outstanding amounts at year-end. Impairments on investments are calculated as being the difference between the carrying amount and the present value of the expected future cash flows / service potential flowing from the instrument.
5.9 ProvisionsProvisions are disclosed when there is a present legal or constructive obligation to forfeit economic benefi ts as a result of events in the past and it is probable that an outflow of resources embodying economic benefi ts will be required to settle the obligation and a reliable estimate of the obligation can be made.
6. Receivables for departmental revenueReceivables for departmental revenue are disclosed in the disclosure notes to the annual fi nancial statements. These receivables are written off when identifi ed as irrecoverable and are disclosed separately.
7. Net Assets7.1 Capitalisation reserve
The capitalisation reserve comprises of fi nancial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of fi nancial position for the fi rst time in the current reporting period. Amounts are recognised in the capitalisation reserves when identifi ed in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed and the related funds are received.
7.2 Recoverable revenueAmounts are recognised as recoverable revenue when a payment made in a previous fi nancial year becomes recoverable from a debtor in the current fi nancial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of fi nancial performance when written-off.
8. Related party transactionsSpecifi c information with regards to related party transactions is included in the disclosure notes.
9. Key management personnelCompensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.
10. Public private partnershipsA description of the PPP arrangement, the contract fees and current and capital expenditure relating to the PPP arrangement is included in the disclosure notes.
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
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88
1. Annual Appropriation 1.1 Annual Appropriation
Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for Provincial Departments:
2012/13 2011/12
Final Appropriation
Actual Funds Received
Funds not requested/
not received
Appropriation received
R’000 R’000 R’000 R’000
Administration 176 063 176,063 - 249 578
Gauteng Audit Services 53 443 53 443 - 86 466
Technological Support Services 944 316 944 316 - 40 638
Procurement Services 68 099 68 099 - 55 613
Human resource Services 91 344 91 344 - 48 727
Sustainable Resource Management - - - 94 440
Financial Governance - - - 98 443
Provincial Accounting Services - - - 877 331
Total 1 333 265 1 333 265 - 1 551 236
Note 2012/13 2011/12
R’000 R’000
2. Departmental revenue
Sales of goods and services other than capital assets 2.1 1 313 1 095
Interest, dividends and rent on land 2.2 - 164 758
Transactions in fi nancial assets and liabilities 2.3 1 042 1 477
Departmental revenue collected 2 355 167 330
2.1 Sales of goods and services other than capital assets
Sales of goods and services produced by the department 1 313 1,095
Sales by market establishment 1 313 -
Other sales - 1 095
Total 1 313 1 095
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
89
2012/13 2011/12R’000 R’000
2.2 Interest, dividends and rent on land
Interest - 164 758
Total - 164 758
2.3 Transactions in fi nancial assets and liabilities
Other Receipts including Recoverable Revenue 1 042 1 477
Total 1 042 1 477
3. Compensation of employees3.1 Salaries and Wages
Basic salary 266 430 361 993
Performance award 5 886 6 851
Service Based 19 133 25 544
Compensative/circumstantial 1 209 4 988
Periodic payments 4 978 2 076
Other non-pensionable allowances 37 248 53 485
Total 334 884 454 937
3.2 Social contributions
Employer contributions
Pension 33 175 45 271
Medical 17 083 22 801
Bargaining council 31 90
Total 50 289 68 162
Total compensation of employees 385 173 523 099
Average number of employees 1 257 1 712
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Note 2012/13 2011/12R’000 R’000
Gauteng Provincial Government | Finance | Annual Report 2012/2013
90
4. Goods and services
Administrative fees 114 372
Advertising 953 1 131
Assets less then R5,000 4.1 917 1 930
Bursaries (employees) 1 620 2 080
Catering 120 354
Communication 3 758 11 916
Computer services 4.2 146 533 146 254
Consultants, contractors and agency/outsourced services 4.3 598 312 684 373
Entertainment 2 145
Audit cost – external 4.4 3 639 8 902
Fleet services - 38
Inventory 4.5 2 186 5 084
Operating leases 15 045 8 288
Property payments 4.6 25 550 9 364
Rental and hiring - 2
Travel and subsistence 4.7 2 301 3 162
Venues and facilities 1 436 686
Training and staff development 1 899 994
Other operating expenditure 4.8 2 235 2 247
Total 806 620 887 322
4.1 Assets less than R5,000
Tangible assets
Machinery and equipment 917 1 930
Total 917 1 930
4.2 Computer services
SITA computer services - 18 149
External computer service providers 146 533 128 105
Total 146 533 146 254
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
91
2012/13 2011/12R’000 R’000
4.3 Consultants, contractors and agency/outsourced services
Business and advisory services 588 696 657 993
Legal costs 3 562 23 781
Contractors 6 054 2 542
Agency and support/outsourced services - 57
Total 598 312 684 373
4.4 Audit cost – External
Regularity audits 3 639 8 902
Total 3 639 8 902
4.5 Inventory
Food and food supplies 60 168
Fuel, oil and gas 11 7
Other consumables 323 25
Materials and supplies 351 97
Stationery and printing 1 441 4 787
Total 2 186 5 084
4.6 Property payments
Municipal services 25 275 8 883
Property management fees - 480
Property maintenance and repairs 107 1
Other 168 -
Total 25 550 9 364
4.7 Travel and subsistence
Local 1 541 2 462
Foreign 760 700
Total 2 301 3 162
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Note 2012/13 2011/12R’000 R’000
Gauteng Provincial Government | Finance | Annual Report 2012/2013
92
4.8 Other operating expenditure
Professional bodies, membership and subscription fees 160 175
Resettlement costs - 105
Other 2 075 1 967
Total 2 235 2 247
5. Interest and rent on land
Interest paid - 11 398
Total - 11 398
6. Payments for fi nancial assets
Debts written off 6.1 545 1 234
Total 545 1 234
6.1 Debts written off
Nature of debts written off
Irrecoverable Debts 537 709
Irrecoverable Claims written off 8 277
Travel and Subsistence - 248
Total 545 1 234
7. Transfers and subsidies
Departmental agencies and accounts Annex 1C - 50 000
Households Annex 1H 387 501
Total 387 50 501
8. Expenditure for capital assets
Tangible assets 16 079 9 829
Machinery and equipment 16 079 9 829
Software and other intangible assets 82 981 2 755
Computer software 82 981 2 755
Total 99 060 12 584
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
93
8.1 Analysis of funds utilised to acquire capital assets – 2012/13
Voted funds Aid assistance Total
R’000 R’000 R’000
Tangible assets 16 079 - 16 079
Machinery and equipment 16 079 - 16 079
Software and other intangible assets
Computer software
82 981
82 981
-
-
82 981
82 981
99 060 - 99 060
8.2 Analysis of funds utilised to acquire capital assets – 2011/12
Voted funds Aid assistance Total
R’000 R’000 R’000
Tangible assets
Machinery and equipment 9 829 - 9 829
Software and other intangible assets
Computer software 2 755 - 2 755
Total 12 584 - 12 584
2012/13 2011/12R’000 R’000
9. Unauthorised expenditure9.1 Reconciliation of unauthorised expenditure
Opening balance 5 534 5 534
Less: Amounts approved by Legislature with funding (5 534) -
Unauthorised expenditure awaiting authorisation - 5 534
9.2 Analysis of unauthorised expenditure awaiting authorisation per economic classifi cation
Capital - 2 351
Current - 3 183
Total - 5 534
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
94
2012/13 2011/12R’000 R’000
9.3 Analysis of unauthorised expenditure awaiting authorisation per type
Unauthorised expenditure relating to overspending of the vote or a main division within a vote - 5 534
Total - 5 534
10. Cash and cash equivalents
Consolidated Paymaster General Account 20 133 36 869
Cash receipts - 13
Cash on hand 25 12
Total 20 158 36 894
11. Prepayments and advances
Prepayments 50 50
Total 50 50
12. Receivables
R’000 R’000 R’000
Note Less than one year
One to three years
Older than three years Total Total
Claims recoverable 12.1Annex 4
8 858 - 20 478 29 336 38 419
Staff debt* 12.2 381 368 14 763 1 509
Other debtors 12.3 23 764 26 813 1 335
Total 9 262 1 132 20 518 30 912 41 263
*Departmental debts include a negative balance R10 736.07 not yet cleared at year end.
12.1 Claims recoverable
National departments
Provincial departments
18
29 318
-
38 419
Total 29 336 38 419
12.2 Staff debt
Various staff members (bursaries and salary related) 763 1 509
Total 763 1 509
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Note 2012/13 2011/12R’000 R’000
Gauteng Provincial Government | Finance | Annual Report 2012/2013
95
12.3 Other debtors
Various clearing accounts 23 80
Suppliers 790 1 076
Salary Recoverable - 179
Total 813 1 335
13. Voted funds to be surrendered to the Revenue Fund
Opening balance 68 222 33 710
Transfer from statement of fi nancial performance 41 480 65 098
Paid during the year (68 222) (30 586)
Closing balance 41 480 68 222
14. Departmental revenue to be surrendered to the Revenue Fund
Opening balance 353 9 992
Transfer from Statement of Financial Performance 2 355 167 330
Paid during the year (2 543) (176 969)
Closing balance 165 353
15. Payables – current
Amounts owing to other entities - 1 429
Advances received 15.1 8 798 2 757
Clearing accounts 15.2 69 96
Other payables 15.3 608 10 884
Total 9 475 15 166
15.1 Advances received
Local Government
Offi ce of the Premier
Agriculture
Community Safety
Social Development
-
5 528
-
-
3 270
31
11
2 691
24
-
Total 8 798 2 757
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
96
2012/13 2011/12R’000 R’000
15.2 Clearing accounts
Salary Related 69 96
Total 69 96
15.3 Other payables
Cheque payables
Outstanding payments
Debt receivable income
Debt receivable interest
-
3
383
222
14
9 867
730
273
Total 608 10 884
16. Net cash flow available from operating activities
Net surplus/(defi cit) as per Statement of Financial Performance
43 835 232 428
Add back non cash/cash movements not deemed operating activities
38 489 (198 782)
Decrease in receivables – current 10 351 32 826
Decrease in prepayments and advances - 229
Decrease in other current assets 5 534 -
Decrease in payables – current (5 691) (36 866)
Expenditure on capital assets 99 060 12 584
Surrenders to Revenue Fund (70 765) (207 555)
Net cash fl ow generated by operating activities 82 324 33 646
17. Reconciliation of cash and cash equivalents for cash flow purposes
Consolidated Paymaster General account 20 133 36 869
Cash receipts - 13
Cash on hand 25 12
Total 20 158 36 894
These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the Annual Financial Statements.
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
97
2012/13 2011/12R’000 R’000
18. Contingent liabilities and contingent assets18.1 Contingent liabilities
Liable to Nature
Housing loan guarantees* Employees Annex 3A 61 133
Claims against the department Annex 3B 49 355 2 766
Interdepartmental unconfi rmed balances Annex 5 901 1 357
Total 50 317 4 256
*Housing guarantees include R19,000.00 which is in respect of an employee transferred to another department.
18.2 Contingent assets
Nature of contingent asset
Civil recovery for supplier account overpayment 605 -
Total 605 -
19. Commitments
Current expenditure
Approved and contracted 472 217 691 247
Approved but not yet contracted 148 747 456 120
Total Commitments 620 964 1 147 367
Age Analysis
Not later than 1 year 372 282
Later than 1 year and not later than 3 years 248 682
Total 620 964
NOTES TO THE ANNUAL FINANCIAL STATEMENTfor the year ended 31 March 2013
Gauteng Provincial Government | Finance | Annual Report 2012/2013
98
2012/13 2011/12R’000 R’000
20. Accruals
Listed by economic classifi cation
30 Days 30+ Days Total Total
Goods and services 18 227 2 18 229 118 555
Total 18 227 2 18 229 118 555
Listed by programme level
Administration* 8 923 2 357
Technology Support Services 9 306 116 079
Sustainable Resource Management - 54
Financial Governance - 18
Human Resources - 47
Total 18 229 118 555
Confi rmed balances with other departments Annex 5 249 -
Confi rmed balances with other government entities Annex 5 1 222 1 429
Total 1 471 1 429
*Included in the accrual amount are invoices disclosed at 70% as they are shared costs between Gauteng Department of Finance and the Gauteng Provincial Treasury
21. Employee benefi ts
Leave entitlement* 11 269 15 176
Service bonus (Thirteenth cheque)** 10 282 13 567
Performance awards 7 709 5 886
Capped leave commitments 10 252 13 575
Total 39 512 48 204
*Leave entitlement and capped leave include a total amount of R1,276,391.93 for employees migrated to other department, pending fi nalisation of human resource processes.
*Included in leave entitlement is negative leave balance of R1,149,767.52 which is as a result of resolution 7 of 2000, which allows employees to accrue leave days on the 1st of January every year irrespective of employment date.
**Service Bonus include a total amount of R377,808.26 for employees migrated to other department, pending fi nalisation of human resource processes.
Gauteng Provincial Government | Finance | Annual Report 2012/2013
99
Disclosure Notes to the Annual Financial Statementfor the year ended 31 March 2013
22. Lease commitments22.1 Operating leases expenditure**
2012/13 Specialised military
equipment
Land Buildings and other fi xed structures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year - - 2 488 918 3 364
Later than 1 year and not later than 5 years - - - 821 821
Total lease commitments - - 2 488 1 739 4 185
2011/12 Specialised military
equipment
Land Buildings and other fi xed structures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year - - - 617 959 617 959
Later than 1 year and not later than 5 years - - - 2 452 2 452
Total lease commitments - - - 620 411 620 411
**Included in Machinery and Equipment are leased vehicles from Government Garage
22.2 Finance leases expenditure**
2012/13 Specialised military
equipment
Land Buildings and other fi xed structures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year - - - 377 377
Total lease commitments - - - 377 377
2011/12 Specialised military
equipment
Land Buildings and other fi xed structures
Machinery and
equipment
Total
R’000 R’000 R’000 R’000 R’000
Not later than 1 year - - - 943 943
Later than 1 year and not later than 5 years - - - 338 338
Total lease commitments - - - 1 281 1 281
**Finance lease is in respect of leased vehicles from Government Garage.
Gauteng Provincial Government | Finance | Annual Report 2012/2013
100
Disclosure Notes to the Annual Financial Statementfor the year ended 31 March 2013
2012/13 2011/12R’000 R’000
23. Receivables for departmental revenue
Tax revenue - -
Sales of goods and services other than capital assets 37 41
Total 37 41
Analysis of receivables for departmental revenue
Opening balance 41 7 762
Less: amounts received (41) (7 762)
Add: amounts recognised 37 41
Closing balance 37 41
24. Irregular expenditure24.1 Reconciliation of irregular expenditure
Opening balance 2 821 -
Add: Irregular expenditure – relating to current year 482 50 355
Less: Amounts condoned (3 273) (47 534)
Irregular expenditure awaiting condonation 30 2 821
Analysis of awaiting condonation per age classifi cation
Current year 30 2 821
Total 30 2 821
24.2 Details of irregular expenditure – current year
Incident Disciplinary steps taken/criminal proceedings
Extension of award for payment of outstanding invoices None 452
Contravention with TR -3 quotation not obtained None 30
Total 482
24.3 Details of irregular expenditure condoned
Incident Condoned by (condoning authority)
Extension of award for payment of outstanding invoices DAC 452
Total 452
Gauteng Provincial Government | Finance | Annual Report 2012/2013
101
Disclosure Notes to the Annual Financial Statementfor the year ended 31 March 2013
2012/13 2011/12R’000 R’000
24.4 Details of irregular expenditure not recoverable (not condoned)
Incident Condoned by (condoning authority)
Contravention with TR -3 quotation not obtained
30
Total 30
25. Fruitless and wasteful expenditure25.1 Reconciliation of fruitless and wasteful expenditure
Fruitless and wasteful expenditure – relating to prior year - 55 466
Fruitless and wasteful expenditure – relating to current year 3 878 -
Less: Amounts resolved (3 878) (55 466)
Fruitless and wasteful expenditure awaiting resolution - -
25.2 Analysis of Current year’s fruitless and wasteful expenditure
Incident Disciplinary steps taken/criminal proceedings
Contract cancellation fees None 3 878
Total 3 878
26. Related party transactions
Payments made
Transfers - 50 000
Total - 50 000
27. Key management personnel
No. of Individuals
Political offi ce bearers - 1 355
Offi cials:
Level 15 to 16 9 10 041 17 756
Level 14 (incl. CFO if at a lower level) 11 8 500 16 639
Total 18 541 35 750
Gauteng Provincial Government | Finance | Annual Report 2012/2013
102
Disclosure Notes to the Annual Financial Statementfor the year ended 31 March 2013
2012/13 2011/12R’000 R’000
28. Provisions
Bad debts 366 812
Payable 14 -
Total 380 812
29. Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Opening balance
Curr Year Adjustments to prior year
balances
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 119 986 8 592 15 109 64 747 78 940
Transport assets 1 742 - - 1 742 -
Computer equipment 81 055 4 955 14 103 44 539 55 574
Furniture and offi ce equipment 33 452 3 243 828 15 953 21 570
Other machinery and equipment 3 737 394 178 2 513 1 796
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS
119 986 8 592 15 109 64 747 78 940
29.1 Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Cash Non-cash (Capital Work in Progress current
costs and fi nance 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 15 600 - (491) - 15 109
Transport assets 491 - (491) - -
Computer equipment 14 103 - - - 14 103
Furniture and offi ce equipment 828 - - - 828
Other machinery and equipment 178 - - - 178
TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS
15 600 - (491) - 15 109
Gauteng Provincial Government | Finance | Annual Report 2012/2013
103
Disclosure Notes to the Annual Financial Statementfor the year ended 31 March 2013
29.2 Disposals
DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Sold for cash Transfer out or destroyed or
scrapped
Total disposals
R’000 R’000 R’000
MACHINERY AND EQUIPMENT - 64 747 64 747
Transport assets - 1 742 1 742
Computer equipment - 44 539 44 539
Furniture and offi ce equipment - 15 953 15 953
Other machinery and equipment - 2 513 2 513
TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS - 64 747 64 747
29.3 Movement for 2011/12
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012
Opening balance
Additions Disposals Closing balance
R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 110 906 9 080 119 986
Transport assets 930 812 - 1 742
Computer equipment 72 967 8 088 - 81 055
Furniture and offi ce equipment 33 452 - - 33 452
Other machinery and equipment 3 557 180 - 3 737
TOTAL MOVABLE TANGIBLE ASSETS 110 906 9 080 - 119 986
Gauteng Provincial Government | Finance | Annual Report 2012/2013
104
Disclosure Notes to the Annual Financial Statementfor the year ended 31 March 2013
29.4 Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipment
Biological assets
Total
R’000 R’000 R’000 R’000 R’000 R’000
Opening balance - 39 - 29 289 - 29 328
Curr Year Adjustments to Prior Year balances - - - 1 952 - 1 952
Additions - - - 917 - 917
Disposals - - - (15 949) - (15 949)
TOTAL MINOR ASSETS - 39 - 16 209 - 16 248
Specialised military assets
Intangible assets
Heritage assets
Machinery and equipment
Biological assets
Total
Number of minor assets at cost 11 11 950 11 961
TOTAL NUMBER OF MINOR ASSETS
11 11 950 11 961
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2012
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipment
Biological assets
Total
R’000 R’000 R’000 R’000 R’000 R’000
Opening balance - 57 - 27 359 - 27 416
Additions - - - 1 930 - 1 930
Disposals - (18) - - - (18)
TOTAL MINOR ASSETS - 39 - 29 289 - 29 328
Gauteng Provincial Government | Finance | Annual Report 2012/2013
105
Disclosure Notes to the Annual Financial Statementfor the year ended 31 March 2013
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipment
Biological assets
Total
Number of minor assets at cost - 11 - 12315 - 12326
TOTAL NUMBER OF MINOR ASSETS - 11 - 12315 - 12326
29.5 MOVABLE ASSETS WRITTEN OFF
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2013
Specialised military assets
Intangible assets
Heritage assets
Machinery and
equipment
Biological assets
Total
R’000 R’000 R’000 R’000 R’000 R’000
Assets written off - - - (9 606) - (9 606)
TOTAL MOVABLE ASSETS WRITTEN OFF - - - (9 606) - (9 606)
30. Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Opening balance
Current Year Adjustments to prior year
balances
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
COMPUTER SOFTWARE 115 018 33 529 82 981 - 231 528
TOTAL INTANGIBLE CAPITAL ASSETS 115 018 33 529 82 981 - 231 528
Additions
ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Cash Non-Cash (Development work in
progress – current costs)
Received current year, not paid
(Paid current year, received prior year)
Total
R’000 R’000 R’000 R’000 R’000
COMPUTER SOFTWARE 82 981 - - - 82 981
TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS 82 981 - - - 82 981
Gauteng Provincial Government | Finance | Annual Report 2012/2013
106
Disclosure Notes to the Annual Financial Statementfor the year ended 31 March 2013
30.1 Movement for 2011/12
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012
Opening balance
Additions Disposals Closing balance
R’000 R’000 R’000 R’000
COMPUTER SOFTWARE 117 641 2 755 (5 378) 115 018
TOTAL INTANGIBLE CAPITAL ASSETS 117 641 2 755 (5 378) 115 018
31. Immovable Tangible Capital Assets
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Opening balance
Curr Year Adjustments to
prior year balances
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES 37 - - - 37
Other fi xed structures 37 - - - 37
TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 37 - - - 37
31.1 Movement for 2011/12
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012
Opening balance
Additions Disposals Closing balance
R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES37 - - 37
Other fi xed structures 37 - - 37
TOTAL IMMOVABLE TANGIBLE ASSETS 37 - - 37
Gauteng Provincial Government | Finance | Annual Report 2012/2013
107
Disclosure Notes to the Annual Financial Statementfor the year ended 31 March 2013
32. Transfer of functionsDescription of the changes as a result of the transfer of functions can be viewed in the Accounting offi cer’s report paragraph 9 (Discontinued operations) .The transferred functions were Treasury related, and did not have an impact on Gauteng Department of Finance
32.1 Statement of Financial Position
Bal per dept 2011/12
AFS before transfer
Treasury (transferred)
/ received
Health (transferred)
/ received
Education (transferred)
/ received
2011/12 Bal after transfer
R’000 R’000 R’000 R’000 R’000
ASSETSCurrent Assets 83 741 - - - 83 741
Unauthorised expenditure 5 534 - - - 5 534
Cash and cash equivalents 36 894 - - - 36 894
Prepayments and advances 50 - - - 50
Receivables 41 263 - - - 41 263
TOTAL ASSETS 83 741 - - - 83 741
LIABILITIES
Current Liabilities 83 741 - - - 83 741
Voted funds to be surrendered to the Revenue Fund 68 222 68 222
Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 353 353
Payables 15 166 15 166
TOTAL LIABILITIES 83 741 - - - 83 741
NET ASSETS - - - - -
Gauteng Provincial Government | Finance | Annual Report 2012/2013
108
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Gauteng Provincial Government | Finance | Annual Report 2012/2013
109
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e w
ith th
e PF
MA
S42
• Th
e m
ajor
tra
nsfe
r fu
nctio
ns w
as fo
r as
sets
, Acc
ount
ing
offi c
er’s
for
the
tran
sfer
ring
and
the
rece
ivin
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part
men
ts s
igne
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f the
inve
ntor
y lis
t as
pre
scrib
ed in
Se
ctio
n 42
of t
he P
MFA
.
Indi
cate
whe
ther
ther
e w
as a
n ar
rang
emen
t dra
wn
up, a
nd p
rovi
de a
des
crip
tion
of ro
les,
resp
onsi
bilit
ies
and
acco
unta
bilit
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t
• Th
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ansf
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ctio
ns o
ccur
red
afte
r its
sep
arat
ion
from
the
Gau
teng
Pro
vinc
ial T
reas
ury,
and
as a
con
sequ
ence
of a
pro
noun
cem
ent a
nd p
rocl
aim
ed b
y th
e G
aute
ng P
rem
ier.
• O
nly
the
Gau
teng
Tre
asur
y Pr
ogra
mm
es w
ere
tran
sfer
red,
hen
ce n
o ag
reed
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dra
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nclu
ding
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lity
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xure
to th
e An
nual
Fin
anci
al S
tate
men
tsfo
r the
yea
r end
ed 3
1 M
arch
201
3
Gauteng Provincial Government | Finance | Annual Report 2012/2013
110
ANN
EXUR
E 1C
STAT
EMEN
T OF
TRA
NSF
ERS
TO D
EPAR
TMEN
TAL
AGEN
CIES
AN
D AC
COUN
TS
DEPA
RTM
ENT/
AG
ENCY
/ ACC
OU
NT
TRAN
SFER
ALL
OCA
TIO
NTR
ANSF
ER20
11/1
2
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sted
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rsAd
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-men
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labl
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nual
Fin
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al S
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arch
201
3
Gauteng Provincial Government | Finance | Annual Report 2012/2013
111
ANN
EXUR
E 1H
STAT
EMEN
T OF
TRA
NSF
ERS
TO H
OUSE
HOL
DS
HO
USE
HO
LDS
TRAN
SFER
ALL
OCA
TIO
NEX
PEN
DITU
RE20
11/1
2
Adju
sted
Appr
opria
tion
Act
Roll
Ove
rsAd
just
men
tsTo
tal
Avai
labl
eAc
tual
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sfer
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ry o
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ity
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ms
agai
nst t
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tate
- - -
- - -
- - -
- - -
8
379 -
53 314
134
Tota
l-
--
-38
750
1
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nual
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al S
tate
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1 M
arch
201
3
Gauteng Provincial Government | Finance | Annual Report 2012/2013
112
ANN
EXUR
E 1I
STAT
EMEN
T OF
GIF
TS, D
ONAT
ION
S AN
D SP
ONSO
RSH
IPS
RECE
IVED
NAM
E O
F O
RGAN
ISAT
ION
NAT
URE
OF
GIF
T, DO
NAT
ION
OR
SPO
NSO
RSH
IP
2012
/13
2011
/12
R’00
0R’
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Rece
ived
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roso
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uth
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a
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vatio
n
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Sap
SA
EOH
Telk
om
ICT
Sum
mit
ICT
Sum
mit
ICT
Sum
mit
ICT
Sum
mit
ICT
Sum
mit
ICT
Sum
mit
110
100
500
501
307
800
-
- -
- - -
TOTA
L2
318
-
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s su
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nual
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al S
tate
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tsfo
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1 M
arch
201
3
Gauteng Provincial Government | Finance | Annual Report 2012/2013
113
ANN
EXUR
E 3A
STAT
EMEN
T OF
FIN
ANCI
AL G
UARA
NTE
ES IS
SUED
AS
AT 3
1 M
ARCH
201
3 –
LOCA
L
Gua
rant
or in
stitu
tion
Gua
rant
ee in
resp
ect o
f
Orig
inal
guar
ante
edca
pita
lam
ount
Ope
ning
ba
lanc
e1
April
20
12
Gua
rant
ees
draw
dow
nsdu
ring
the
year
Gua
rant
ees
repa
ymen
ts/
canc
elle
d/
redu
ced/
re
leas
ed d
urin
g th
e ye
ar
Reva
luat
ions
Clos
ing
bala
nce
31 M
arch
20
13
Gua
rant
eed
inte
rest
for
year
end
ed 3
1 M
arch
201
3
Real
ised
loss
es n
ot
reco
vera
ble
i.e.
clai
ms
paid
out
R’00
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k
- - -
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-
42
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TOTA
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133
-72
-61
--
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tate
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arch
201
3
Gauteng Provincial Government | Finance | Annual Report 2012/2013
114
ANN
EXUR
E 3B
STAT
EMEN
T OF
CON
TIN
GEN
T LI
ABIL
ITIE
S AS
AT
31 M
ARCH
201
3
Nat
ure
of L
iabi
lity
Ope
ning
Bala
nce
1 Ap
ril 2
012
Liab
ilitie
s in
curr
ed d
urin
g th
e ye
ar
Liab
ilitie
s pa
id/
canc
elle
d/re
duce
d du
ring
the
year
Liab
ilitie
s re
cove
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unde
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ing
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nce
31 M
arch
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3
R’00
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Clai
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epar
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t
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l act
ion
agai
nst t
he D
epar
tmen
t for
unp
aid
serv
ices
Civi
l act
ion
agai
nst t
he D
epar
tmen
t for
unp
aid
invo
ices
1 25
0
1 51
6
- -
1 2
50
1 51
6
- -
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Civi
l act
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agai
nst t
he d
epar
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t for
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rofi t
-42
032
--
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32
Mal
icio
us p
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cutio
n an
d de
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atio
n ag
ains
t sta
te-
7 32
3-
-7
323
Tot
al2
766
49 3
552
766
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55
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arch
201
3
Gauteng Provincial Government | Finance | Annual Report 2012/2013
115
ANN
EXUR
E 4
CLAI
MS
RECO
VERA
BLE
Gov
ernm
ent E
ntity
Confi
rmed
bal
ance
out
stan
ding
Unc
onfi r
med
bal
ance
ou
tsta
ndin
gTo
tal
31/0
3/20
1331
/03/
2012
31/0
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1331
/03/
2012
31/0
3/20
1331
/03/
2012
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lth
6 80
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--
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625
Tran
spor
t and
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d w
orks
20 4
7830
478
--
20 4
7830
478
Trea
sury
213
--
-21
3-
Spor
ts a
nd R
ecre
atio
n22
0-
--
220
-
Safe
ty-
-17
6-
176
-
Agric
ultu
re42
--
-42
-
Educ
atio
n-
-92
8-
928
-
Econ
omic
Dev
elop
men
t24
--
-24
-
Soci
al D
evel
opm
ent
432
--
-43
2-
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tota
l28
214
38 1
031
104
-29
318
38 1
03
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pple
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Fin
anci
al S
tate
men
tsfo
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r end
ed 3
1 M
arch
201
3
Gauteng Provincial Government | Finance | Annual Report 2012/2013
116
Gov
ernm
ent E
ntity
Confi
rmed
bal
ance
out
stan
ding
Unc
onfi r
med
bal
ance
ou
tsta
ndin
gTo
tal
31/0
3/20
1331
/03/
2012
31/0
3/20
1331
/03/
2012
31/0
3/20
1331
/03/
2012
R’00
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Oth
er G
over
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t Ent
ities
Gau
train
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ernm
ent G
arag
e
- -
77
-
- -
-
470
- -
77
470
GFP
O-
50-
--
50
SAPS
--
18-
18-
Sub
tota
l-
127
1847
018
597
TOTA
L28
214
38 2
301
122
470
29 3
3638
700
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nual
Fin
anci
al S
tate
men
tsfo
r the
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r end
ed 3
1 M
arch
201
3
Gauteng Provincial Government | Finance | Annual Report 2012/2013
117
ANN
EXUR
E 5
INTE
R-GO
VERN
MEN
T PA
YABL
ES
GO
VERN
MEN
T EN
TITY
Confi
rmed
bal
ance
out
stan
ding
Unc
onfi r
med
bal
ance
out
stan
ding
TOTA
L
31/0
3/20
1331
/03/
2012
31/0
3/20
1331
/03/
2012
31/0
3/20
1331
/03/
2012
R’00
0R’
000
R’00
0R’
000
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000
DEPA
RTM
ENTS
Offi
ce o
f the
Pre
mie
r 88
--
2088
20
Roa
ds a
nd T
rans
port
27-
--
27-
Soc
ial D
evel
opm
ent
134
--
-13
4-
Econ
omic
Dev
elop
men
t-
--
56-
56
Subt
otal
249
--
7624
976
OTH
ER G
OVE
RNM
ENT
ENTI
TY
Curr
ent
Gov
ernm
ent G
arag
e Fl
eet
1 22
21
429
902
1 28
12
124
2 71
0
Subt
otal
1 22
21
429
902
1 28
12
124
2 71
0
Tota
l1
471
1 42
990
21
357
2 37
32
786
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s su
pple
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tary
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nual
Fin
anci
al S
tate
men
tsfo
r the
yea
r end
ed 3
1 M
arch
201
3
Gauteng Provincial Government | Finance | Annual Report 2012/2013
118
ANN
EXUR
E 6
INVE
NTO
RY
Inve
ntor
yQ
uant
ity20
12/1
3Q
uant
ity20
11/1
2
R’00
0R’
000
Ope
ning
bal
ance
6608
92
141
7063
42
190
Add:
Add
ition
s/Pu
rcha
ses
– C
ash
1294
193
513
608
1 68
9
(Les
s): I
ssue
s(1
6590
)(1 5
86)
(181
53)
(1 7
38)
Clos
ing
bala
nce
6244
01
490
6608
92
141
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s su
pple
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tary
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rmat
ion
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tate
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119
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11199
Section 5OUTLOOK FOR THE COMING YEAR
Gauteng Provincial Government | Finance | Annual Report 2012/2013
120
Outlook for the Coming Financial Year (2014 -15) Output 1: Service delivery quality and accessTo contribute to the province-wide strategies as well as supporting the GDF strategic plan, the department has adopted the ICT strategy as the key strategy to drive transformational ICT initiatives in Gauteng. The roll out of the Gauteng Broadband Network (GBN) is central to the implementation of key elements of the GPG ICT Strategy. The Implementation Partner will be tasked to roll out the network infrastructure from 2014 – 2015. To this end, our Broadband network infrastructure will be implemented in a phased approach, where the Gauteng Online network will receive fi rst priority. This will be followed by connecting Government buildings, e-Services to other Departments, and the 20 Priority Townships. Our key ICT strategic objectives and initiatives are to:
• Provide innovative, integrated and interoperable systems by introducing a fully managed data centre for the province and reduction of server rooms within GPG
• Migrate business applications to the fully managed data centre
• Reduce ICT operational costs by forming strategic partnerships with key service providers
• Provide the core network which will comprise of WiFi and 3G connectivity to all 2 200 Provincial public schools
• Provide a fi t-for-purpose ICT capability to support e-Learning and thinking in all learning areas for all learners and educators
At the same time, we will continue to ensure the stability of Provincial ICT services, which will include:
• Sustaining our stable LAN and WANs
• Prioritisation of VoIP as soon as 1Gbps bandwidth is available from our Broadband network
• Leverage from the fully managed data centre and fi bre optic network
• Integrate the Design and Validation Centre (DAV) to the rest of the GBN and current GPG networks
• As Broadband networks allow institutions and individuals to communicate, interact, and share knowledge across the globe with less effort, and in less time than would have been possible on older technologies, we intend to implement management controls and policies to enable responsible management of hosted and networked services
• Establish a Provincial Intelligence Portal to provide strategic assistance to the Executive Leadership
Output 2: HR Management and developmentIn a quest to automate the manual human resource processes, the department will roll out the automated termination system to four additional GPG departments. The performance managements and development system will be extended to six GPG departments that are already on SAP: ESS. The department will invest more time and resources in our quest to conclude the approval and issuing of letters of concurrence for the GPG departments that are still busy with the fi nalisation of their organisational structures. Maponya Mall Professional Job Centre will continue to create access of 3000 job seekers to the available GPG vacancies. Furthermore, we will avail GPG vacancies to our communities through the launch of 10 mobile recruitment campaigns. Employee Health and Wellness Programme (EHWP) will issue an annual GPG EHWP trend analysis in an effort to improve and enhance employee wellness.
Output 3: Business processes, systems, decisions rights and accountabilityIn a post migration environment, the unit will be focusing on consolidating and building on an existing range of services as well as ensuring that roles and responsibilities in the areas of Contracts Management and Transversal Agreements is implemented. The impact of the Migration of Functions project is such that the Procurement Services programme will be restructured in order to meet the provincial requirements of being a procurement centre of excellence, which will provide strategic intelligence to the GPG Departments and Entities as the various phases of the migration unfold.
The key focus areas are listed below:
• Administration and Maintenance of the GPG-wide Vendor Database, ensuring that targeted enterprises are adequately represented.
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• Maintenance of the GPG Catalogue of goods and services
• Maintaining the high integrity of the Tender advertising and closing process
• Maintaining fast, accurate invoice data processing as well as implementation and support of strategic Accounts Payable automation projects for GPG
• Providing strategic support and troubleshooting advice to the Province in the purchasing of goods and services
• Providing Contracts Management System Administration that will ensure optimal usage of functionality with the view of improving management information through enhanced reporting and increasing processing speed
• The Programme unit will ensure that all key performance indicators as identifi ed in the 2013/14 APP commitments and targets are achieved or exceeded
The unit will provide specialised consulting services to enhance Departmental performance within the Procurement environment. In this area the Unit will also provide operational support during emergency and other exceptional circumstances. This includes but not limited to the following:
• Identifi cation and implementation of Procurement business process automation projects e.g. Purchasing Card, e-Invoicing systems, automatic purchase orders, etc.
• Provide support to Departments as requested during the RFP process
• Project manage the entire RFP process on behalf of the Departments
• Assist the Departments in the implementation of the National Treasury Contract Management Framework
• Provide procurement related business intelligence reports to Departments to assist them with decision making
• Development of departmental and customised supplier databases
• Assist Departments with an end-to-end Request for Quotation process in emergency and exceptional cases.
Output 4: Corruption tackled effectivelyDuring the coming year, the Unit will continue to provide Forensic Services that include the Prevention, Detection and Investigation of Fraud and Corruption in all GPG Departments. This will be achieved through conducting investigations into reported incidents of fraud and corruption; fraud detection reviews; fraud risk assessments; assistance in dispute resolution arising from recommendations made; and heightening awareness through online and interactive fraud and corruption awareness campaigns.
Output 5: Effective fi nancial managementIn 2014, Gauteng Audit Services (GAS) will continue to perform internal audit services throughout the GPG that incorporate risk and compliance, computer and performance audits. The unit will undergo an external quality assurance assessment to evaluate conformance with the International Standards for the Professional Practices of Internal Auditing as prescribed by the Institute of Internal Auditors. We will continue to upgrade the knowledge and competencies of the internal audit staff through focused training and the update of our audit methodologies.
In assisting the GPG Departments to achieve the target of clean audits by 2014, the unit will continue to monitor progress on the implementation of audit fi ndings across the departments, and on a regular basis will report non implementation to Heads of Departments and Audit Committees for their intervention. In addition, GAS has planned to conduct quarterly reviews on interim fi nancial statements, key controls and performance information. Internal Audit services will further enhance co-operation between assurance providers in the GPG Departments through the roll-out of the Combined Assurance model. We will also implement the continuous auditing project for the provincial departments, which is largely dependent on the state of readiness of the required IT infrastructure.
Output 6: Performance monitoring and evaluationThe GDF will continue to work closely with the Provincial Treasury and Gauteng Planning Commission to harmonise the planning and reporting activities of departments. The GDF will add value to this process by ensuring that there are common platforms to facilitate ease of reporting.
122
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Section 6OVERSIGHT REPORT
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Human Resource ManagementPart 1: Overview
1. Mandate and Role of Human Capital
Management within the departmentThe purpose of human capital management is to render human resource management services within the GDF.
2. Programme StructureThe human capital management programme comprises of fi ve key capabilities:
• Human resource administration
• Performance management and development
• Employee relations and wellness
• Offi ce support and auxiliary services
• Human resource planning and organisational development
The human capital management programme is entrusted with the responsibility of fulfi lling the following functions:
• Manage and facilitate human resource planning and organisational development.
• Manage coordination and facilitation performance management and development programmes.
• Provide human resource administration to the department.
• Provide employee health, wellness and relations programmes in the GDF.
• Provide logistics and transport services to the GDF.
3. Legislative and Other Mandates• Public Service Act, 1994 that provides for the
organisation and administration of the GDF and for human resource management which includes the regulation of conditions of employment, terms of offi ce, discipline, retirement and discharge of staff members and matters connected therewith.
• The Basic Conditions of Employment Act, 1997 that provides regulatory prescripts in additional to the Public Service Act, 1994 and the Public Service
Regulations, 2001 regarding the conditions of employment of staff in the GDF.
• Employment Equity Act, 1998 that regulates the processes and procedures of the GDF in achieving a diverse and competent workforce broadly representative of the demographics of Gauteng and eliminating unfair discrimination in employment towards implementing employment equity.
• Labour Relations Act, 1995 that regulates and guides the GDF in recognising and fulfi lling its role in effecting labour harmony and the democratisation of the workplace.
• Occupational Health and Safety Act, 1995 that provides a framework for the standards and requirements for workplaces, facilities and employee health and safety.
Part 2: Good Governance Legislative Responsibilities
Commitment by the department to maintain the highest standards of governance is fundamental to the management of public fi nances and resources. Users want assurance that the department has good governance structures in place to effectively, effi ciently and economically utilise the state resources which are funded by the tax payer.
1. Code of ConductThe Gauteng Department of Finance is governed by the Code of Conduct for the public service which is a Collective Agreement PSCBC Resolution 2 of 1999 as amended by Resolution 1 of 2003. The Code of Conduct streamlines the issues of Discipline as it talks to all the developments in our departmental processes and throughout the Public Service. All employees within the department are expected to comply with the Code of Conduct.
The Public Service Code of Conduct acts as a guideline to employees as to what is expected of them from an ethical point of view, both in their individual conduct and in their relationship with others. Compliance with the Code can be expected to enhance professionalism and help to ensure confi dence in the Public Service.
During the year in review there has never been any case that was challenged through a dispute where the
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department suffered any loss due to either Procedural or Substantive defects. This is thus as far as the department’s adherence to the prescripts and regulations governing the code of conduct in the public service.
2. Safety, Health and Environmental IssuesSustaining corporate governance on SHE Management is the key driver within the department as we strive to promote continuous improvement to meeting world-class standards. Through our Employee Health and Wellness sub-unit, the department has successfully integrated this process and continues to improve SHE performance areas in the demonstration of its corporate citizenship. It is also concerned with protecting the safety, health and welfare of people engaged in work or employment.
The Gauteng Department of Finance has adopted an integrated and holistic approach to address social and work related problems through awareness programmes for its employees and families.
During the 2012/2013 fi nancial year, there was continued focus on the successful implementation on the following Safety, Health and Environmental issues:
• Appointing departmental OHS Chairperson and representatives as described on OHS at 85 of 1993 section 16, 17, 19 and 20.
• Keeping employees informed of the GDF emergency evacuation manual
This is evident in the number of reduces cases of injury on duty within the department.
Part 3: Year Under Review 2012/13Following deliberations with National Treasury, a decision was taken to re-establish Provincial Treasury as a separate vote to ensure alignment to the PFMA and National Constitution in as far as the Gauteng Treasury’s reporting was concerned. This decision led to the GDF also being established as a separate department with effect from 1st April 2012.
The migration of functions to the department was also successfully concluded with the migration positions and their respective functions to benefi ciary Departments during quarter 4. Such functions migrated with their concomitant resources (posts, people, and budgets).
As a result, the GDF’s organisational structure had to be revised in line with the new mandate of the department. During the year under review, the department completed the process of reviewing the HR strategy and HR plan, employment equity plan, retention strategy and a recruitment procedure manual. These documents will all play a major role in assisting the department to recruit and retain its critical and scarce skills.
As part of the retention strategy and to boost staff morale, most of the vacant positions were advertised internally and fi lled through internal promotions.
The Gauteng Department of Finance was able to meet and exceed the target set for the appointment of People with Disabilities on levels 1-12.The target set is 2% and the department was at 3.5% as of 31st March 2013.
New bursaries were awarded to 178 GDF employees and bursaries for 88 existing bursary holders continuing were renewed. Funds were made available for the 2013 academic year provided that bursary holders produce positive results for 2012 and only if they continue with the qualifi cations approved.
The development of staff was achieved through short and long term study programmes. The department also embarked on a project of partnering with institutions of higher learning to identify graduates to participate in the internship programme.
The department also launched an Employee Wellness Programme and successfully marketed the programme with all employees. The GDF commenced processes to develop an employee wellness strategy which will be informed by the Health Risk and Behavioural Risk Assessment.
Other areas of HR compliance; including Senior Management Financial Disclosure, Employment Equity Reporting, Grievance and Misconduct Reporting were complied with in line with the requirements.
Since the Gauteng Department of Finance currently shares the building with the Gauteng Treasury, the Facility and Logistics Support functions and Transport services are mainly performed by the Transport and Logistical Support Unit of the GDF. The Gauteng Treasury occupies the fi rst four floors and GDF the rest of the building, and during the year under review all employees were successfully moved to their respective work stations.
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HR Oversight - April 2012 to March 20131. ExpenditureThe Department’s budget in terms of clearly defi ned programmes. The following tables summarise fi nal audited expenditure by programme and by salary bands. In particular, it provides an indication of the amount spent on personnel costs in terms of each of the programmes or salary bands within the Department.
1.1 Personnel Costs by Programme
Programme Total Voted Expenditure
(R’000)
Compensation of Employees Expenditure
(R’000)
Training Expenditure
(R’000)
Professional and Special
Services (R’000)
Compensation of Employees
as percent of Total
Expenditure
Average Compensation of Employees
Cost per Employee
(R’000)
Employment
Administration 148,493 72,598 1899 1620 49% 61 424
Gauteng audit services 48,672 45,204 0 0 93% 38 114
Human resource services 87,605 86,909 0 0 99% 74 317
Procurement services 62,699 60,748 0 0 97% 55 181
Technological support services 944,316 119,714 0 0 13% 100 169
Z=Total as on Financial Systems (BAS) 1,291,785 385,173 1,899 1,620 30% 329 1205
1.2 Personnel Costs by Salary Band
Salary Bands Compensation of Employees Cost
(R)
Percentage of Total Personnel
Cost for Department
Average Compensation
Cost per Employee (R)
Total Personnel Cost for Department including Goods and
Transfers (R)
Number of Employees
Lower skilled (Levels 1-2) 208,000 100 120,500 208,000 2
Skilled (Levels 3-5) 12,731,000 100 146,221 12,731,000 110
Highly skilled production (Levels 6-8) 126,838,000 100 243,437 126,838,000 627
Highly skilled supervision (Levels 9-12) 130,336,000 100 440,254 130,336,000 386
Senior management (Levels 13-16) 5,206,000 100 918,579 5,206,000 19
Contract (Levels 1-2) 664,000 100 94,571 664,000 7
Contract (Levels 6-8) 466,000 100 467,000 466,000 1
Contract (Levels 9-12) 4,768,000 100 559,222 4,768,000 9
Contract (Levels 13-16) 21,746,000 100 951,486 21,746,000 37
Periodical Remuneration 4,978,000 100 292,824 4,978,000 7
TOTAL 307,941,000 100 332356 307,941,000 1205
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1.3 Salaries, Overtime, Home Owners’ Allowance and Medical Aid by Programme
Programme Salaries (R’000)
Salaries as % of
Personnel Cost
Overtime (R’000)
Overtime as % of
Personnel Cost
HOA (R’000)
HOA as % of
Personnel Cost
Medical Ass.
(R’000)
Medical Ass.
as % of Personnel
Cost
Total Personnel Cost per
Programme (R’000)
Administration 72598 92.3 326 0.4 2216 2.8 3488 4.4 78628
Gauteng audit services 45204 95.7 0 0 685 1.5 1323 2.8 47212
Hire to retire services 86909 92.1 94 0.1 2785 3 4556 4.8 94344
Procure to pay services 60748 92.6 101 0.2 1651 2.5 3116 4.7 65616
Technological support service 119714 94.2 103 0.1 2692 2.1 4600 3.6 127109
TOTAL 385173 93.3 624 0.2 10029 2.4 17083 4.1 412909
1.4 Salaries, Overtime, Home Owners’ Allowance and Medical Aid by Salary Band
Salary bands Salaries (R’000)
Salaries as % of
Personnel Cost
Overtime (R’000)
Overtime as % of
Personnel Cost
HOA (R’000)
HOA as % of
Personnel Cost
Medical Ass.
(R’000)
Medical Ass.
as % of Personnel
Cost
Total Personnel Cost per Salary Band
(R’000)
Lower skilled(Levels 1-2) 147 71.4 0 0 22 10.7 37 18 206
Skilled (Levels 3-5) 9922 77.9 150 1.2 1123 8.8 1536 12.1 12731
Highly skilled production (Levels 6-8) 109792 86.6 570 0.4 6085 4.8 10391 8.2 126838
Highly skilled supervision (Levels 9-12) 122366 93.9 155 0.1 2609 2 5206 4 130336
Senior management (Levels 13-16) 4755 91.3 0 0 152 2.9 299 5.7 5206
Contract (Levels 1-2) 664 100 0 0 0 0 0 0 664
Contract (Levels 6-8) 466 100 0 0 0 0 0 0 466
Contract (Levels 9-12) 4582 96.1 0 0 98 2.1 88 1.8 4768
Contract (Levels 13-16) 20841 95.8 0 0 442 2 463 2.1 21746
Periodical Remuneration 4978 100 0 0 0 0 0 0 4978
TOTAL 278513 90.4 875 0.3 10531 3.4 18020 5.9 307939
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2. Employment and VacanciesThe following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment. This information is presented in terms of three key variables: programme, salary band and critical occupations.
The vacancy rate reflects the percentage of posts that are not fi lled.
2.1 Employment and Vacancies by Programme at end of period
Programme Number of Posts Number of Posts Filled
Vacancy Rate Number of Posts Filled Additional to the Establishment
Administration, Permanent 578 424 26.6 0
Gauteng audit services, Permanent 129 114 11.6 0
Hire to retire services, Permanent 356 317 11 0
Procure to pay services, Permanent 246 181 26.4 0
Technological support services, Permanent 274 169 38.3 7
TOTAL 1583 1205 23.9 7
2.2 Employment and Vacancies by Salary Bands at end of period
Salary Band Number of Posts Number of Posts Filled
Vacancy Rate Number of Posts Filled Additional to the Establish-
ment
Lower skilled (Levels 1-2), Permanent 23 15 34.8 0
Skilled (Levels 3-5), Permanent 125 104 16.8 0
Highly skilled production (Levels 6-8), Permanent 768 627 18.4 0
Highly skilled supervision (Levels 9-12), Permanent 559 386 30.9 0
Senior management (Levels 13-16), Permanent 54 19 64.8 0
Contract (Levels 1-2), Permanent 7 7 0 7
Contract (Levels 6-8), Permanent 1 1 0 0
Contract (Levels 9-12), Permanent 9 9 0 0
Contract (Levels 13-16), Permanent 37 37 0 0
TOTAL 1583 1205 23.9 7
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2.3 Employment and Vacancies by Critical Occupation at end of periodCritical Occupations Number of
PostsNumber of
Posts FilledVacancy
RateNumber of
Posts Filled Additional
to the Establishment
Administrative related, Permanent 190 139 26.8 0
Advocates, Permanent 2 2 0 0
All artisans in the building metal machinery etc., Permanent 3 3 0 0
Authors journalists and other writers, Permanent 1 0 100 0
Cashiers tellers and related clerks, Permanent 5 3 40 0
Client inform clerks(switchboard reception inform clerks), Permanent 81 78 3.7 0
Communication and information related, Permanent 9 2 77.8 0
Computer programmers., Permanent 5 1 80 0
Computer system designers and analysts., Permanent 84 57 32.1 0
Finance and economics related, Permanent 80 67 16.3 0
Financial and related professionals, Permanent 33 15 54.5 0
Financial clerks and credit controllers, Permanent 189 169 10.6 0
Food services aids and waiters, Permanent 5 4 20 0
Head of department/chief executive offi cer, Permanent 3 1 66.7 0
Human resources & organisational development & relate prof, Permanent 163 141 13.5 0
Human resources clerks, Permanent 179 129 27.9 7
Human resources related, Permanent 52 41 21.2 0
Information technology related, Permanent 37 11 70.3 0
Language practitioners interpreters & other communication, Permanent 8 3 62.5 0
Legal related, Permanent 3 0 100 0
Library mail and related clerks, Permanent 56 50 10.7 0
Logistical support personnel, Permanent 69 56 18.8 0
Material-recording and transport clerks, Permanent 10 8 20 0
Messengers porters and deliverers, Permanent 9 6 33.3 0
Other administration & related clerks and organisers, Permanent 3 3 0 0
Other administrative policy and related offi cers, Permanent 1 1 0 0
Other information technology personnel., Permanent 46 36 21.7 0
Other occupations, Permanent 8 8 0 0
Risk management and security services, Permanent 57 38 33.3 0
Secretaries & other keyboard operating clerks, Permanent 49 31 36.7 0
Security offi cers, Permanent 67 57 14.9 0
Senior managers, Permanent 76 45 40.8 0
TOTAL 1583 1205 23.9 7
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3. Job EvaluationThe Public Service Regulations, 1999 introduced job evaluation as a way of ensuring that work of equal value is remunerated equally. Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are fi lled. This was complemented by a decision by the Minister for the Public Service and Administration that all SMS jobs must be evaluated before 31st December 2002.
The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.
3.1 Job Evaluation, 2012/2013
Salary Band Number of Posts
Number of Jobs
Evaluated
% of Posts Evaluated
Number of Posts
Upgraded
% of Upgraded
Posts Evaluated
Number of Posts
Downgraded
% of Downgraded
Posts Evaluated
Lower skilled (Levels 1-2) 23 0 0 0 0 0 0
Contract (Levels 1-2) 7 0 0 0 0 0 0
Contract (Levels 6-8) 1 0 0 0 0 0 0
Contract (Levels 9-12) 9 1 11.1 0 0 0 0
Contract (Band A) 26 0 0 0 0 0 0
Contract (Band B) 5 0 0 0 0 0 0
Contract (Band C) 5 0 0 0 0 0 0
Contract (Band D) 1 0 0 0 0 0 0
Skilled (Levels 3-5) 125 21 16.8 21 100 0 0
Highly skilled production (Levels 6-8) 768 12 1.6 2 16.7 0 0
Highly skilled supervision (Levels 9-12) 559 3 0.5 0 0 0 0
Senior Management Service (Band A) 39 0 0 0 0 0 0
Senior Management Service (Band B) 8 0 0 0 0 0 0
Senior Management Service (Band C) 7 0 0 0 0 0 0
TOTAL 1583 37 2.3 23 62.2 0 0
The following table provides a summary of the number of employees whose salary positions were upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.
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3.2 Profi le of employees whose positions were upgraded due to their posts being upgraded, 2012/2013
Benefi ciaries African Asian Coloured White Total
Female 13 0 1 0 14
Male 6 0 0 0 6
Total 19 0 1 0 20
Employees with a Disability 0 0 0 0 0
The following table summarises the number of cases where remuneration levels exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case
Total Number of employees whose salaries exceeded the grades determined by job evaluation in 2012/2013
None
4. Employment ChangesThis section provides on changes in employment over the fi nancial year. Turnover rates provide an indication of trends in the employment profi le of the department. The following tables provide a summary of turnover rates by salary band and critical occupations.
4.1 Annual turnover rates by Salary Band for the period 2012/2013, permanent positions
Salary Band Employment at Beginning
of Period (April 2012)
Appointments Terminations Turnover Rate
Lower skilled (Levels 1-2), Permanent 2 0 0 0
Skilled (Levels 3-5), Permanent 115 1 4 3.5
Highly skilled production (Levels 6-8), Permanent 728 33 12 1.6
Highly skilled supervision (Levels 9-12), Permanent 425 11 10 2.4
Senior Management Service (Band A), Permanent 18 0 0 0
Senior Management Service (Band B), Permanent 4 0 0 0
Senior Management Service (Band C), Permanent 2 0 0 0
Senior Management Service (Band D), Permanent 1 0 0 0
Contract (Levels 1-2), Permanent 36 14 10 27.8
Contract (Levels 6-8), Permanent 3 0 1 33.3
Contract (Levels 9-12), Permanent 10 0 1 10
Contract (Band A), Permanent 29 1 5 17.2
Contract (Band B), Permanent 5 1 2 40
Contract (Band C), Permanent 7 0 2 28.6
Contract (Band D), Permanent 1 0 0 0
TOTAL 1386 61 47 3.4
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4.2 Annual Turnover Rates by Critical Occupation for the period 2012/2013, permanent positions
Occupation Employment at Beginning
of Period (April 2012)
Appointments Terminations Turnover Rate
Administrative related, Permanent 202 5 6 3
Advocates, Permanent 3 0 0 0
All artisans in the building metal machinery etc., Permanent 3 0 0 0
Attorneys, Permanent 1 0 0 0
Cashiers tellers and related clerks, Permanent 2 0 0 0
Client inform clerks(switchboard reception inform clerks), Permanent 79 0 0 0
Communication and information related, Permanent 3 0 0 0
Computer programmers., Permanent 1 0 0 0
Computer system designers and analysts., Permanent 42 11 1 2.4
Finance and economics related, Permanent 75 0 1 1.3
Financial and related professionals, Permanent 22 0 2 9.1
Financial clerks and credit controllers, Permanent 177 14 2 1.1
Food services aids and waiters, Permanent 4 0 0 0
Head of department/chief executive offi cer, Permanent 2 0 0 0
Human resources & organisational development & relate prof, Permanent 129 3 4 3.1
Human resources clerks, Permanent 232 16 12 5.2
Human resources related, Permanent 46 0 1 2.2
Information technology related, Permanent 9 2 0 0
Language practitioners interpreters & other communication, Permanent 3 0 0 0
Library mail and related clerks, Permanent 55 0 0 0
Logistical support personnel, Permanent 60 0 1 1.7
Material-recording and transport clerks, Permanent 7 0 0 0
Messengers porters and deliverers, Permanent 6 0 1 16.7
Other administration & related clerks and organisers, Permanent 10 0 0 0
Other administrative policy and related offi cers, Permanent 1 0 0 0
Other information technology personnel., Permanent 16 1 0 0
Other occupations, Permanent 12 0 0 0
Risk management and security services, Permanent 27 3 2 7.4
Secretaries & other keyboard operating clerks, Permanent 44 4 1 2.3
Security offi cers, Permanent 63 0 3 4.8
Senior managers, Permanent 50 2 10 20
TOTAL 1386 61 47 3.4
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4.3 Reasons why Staff are Leaving the Department
Termination Type Number Percentage of Total
Resignations
Percentage of Total
Employment
Total Total Employment
Death, Permanent 4 8.5 0.3 47 1386
Resignation, Permanent 28 59.6 2 47 1386
Expiry of contract, Permanent 13 27.7 0.9 47 1386
Retirement, Permanent 2 4.3 0.1 47 1386
TOTAL 47 100 3.4 47 1386
Resignations as % of Employment
3.4
4.4 Granting of Employee Initiated Severance Packages
Category No of applications
received
No of applications
referred to the MPSA
No of applications supported by
MPSA
No of Packages approved by department
Lower Skilled (Salary Level 1-2) 0 0 0 0
Skilled (Salary Level 3-5) 0 0 0 0
Highly Skilled Production (Salary Level 6-8) 0 0 0 0
Highly Skilled Production (Salary Level 9-12) 0 0 0 0
Senior Management (Salary Level 13 and higher) 0 0 0 0
Total 0 0 0 0
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4.5 Promotions by Critical Occupation
Occupation Employment at Beginning
of Period (April 2012)
Promotions to another
Salary Level
Salary Level Promotions
as a % of Employment
Progressions to another
Notch within Salary Level
Notch progressions
as a % of Employment
Administrative related 202 13 6.4 103 51
Advocates 3 0 0 2 66.7
All artisans in the building metal machinery etc. 3 0 0 0 0
Attorneys 1 0 0 0 0
Cashiers tellers and related clerks 2 1 50 1 50
Client inform clerks(switchboard reception inform clerks) 79 2 2.5 65 82.3
Communication and information related 3 0 0 3 100
Computer programmers. 1 0 0 1 100
Computer system designers and analysts. 42 5 11.9 31 73.8
Finance and economics related 75 2 2.7 62 82.7
Financial and related professionals 22 2 9.1 10 45.5
Financial clerks and credit controllers 177 3 1.7 116 65.5
Food services aids and waiters 4 0 0 2 50
Head of department/chief executive offi cer 2 0 0 0 0
Human resources & organisational development & relate prof 129 12 9.3 111 86
Human resources clerks 232 10 4.3 103 44.4
Human resources related 46 5 10.9 30 65.2
Information technology related 9 3 33.3 3 33.3
Language practitioners interpreters & other communication 3 0 0 2 66.7
Library mail and related clerks 55 1 1.8 50 90.9
Logistical support personnel 60 1 1.7 42 70
Material-recording and transport clerks 7 0 0 6 85.7
Messengers porters and deliverers 6 0 0 4 66.7
Other administration & related clerks and organisers 10 0 0 4 40
Other administrative policy and related offi cers 1 0 0 1 100
Other information technology personnel. 16 5 31.3 16 100
Other occupations 12 1 8.3 3 25
Risk management and security services 27 5 18.5 24 88.9
Secretaries & other keyboard operating clerks 44 4 9.1 23 52.3
Security offi cers 63 0 0 60 95.2
Senior managers 50 0 0 35 70
TOTAL 1386 75 5.4 913 65.9
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4.6 Promotions by Salary Band
Salary Band Employment at Beginning
of Period (April 2012)
Promotions to another
Salary Level
Salary Level Promotions
as a % of Employment
Progressions to another
Notch within Salary Level
Notch progressions
as a % of Employment
Lower skilled (Levels 1-2), Permanent 2 0 0 2 100
Skilled (Levels 3-5), Permanent 115 2 1.7 85 73.9
Highly skilled production (Levels 6-8), Permanent 728 31 4.3 478 65.7
Highly skilled supervision (Levels 9-12), Permanent 425 40 9.4 303 71.3
Senior management (Levels 13-16), Permanent 25 2 8 9 36
Contract (Levels 1-2), Permanent 36 0 0 0 0
Contract (Levels 6-8), Permanent 3 0 0 0 0
Contract (Levels 9-12), Permanent 10 0 0 5 50
Contract (Levels 13-16), Permanent 42 0 0 31 73.8
TOTAL 1386 75 5.4 913 65.9
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5. Employment EquityThe tables in this section are based on the formats prescribed by the Employment Equity Act, 55 of 1998
5.1 Total number of Employees (incl. Employees with Disabilities) in each of the following Occupational Categories as at 31 March 2013
Occupational Categories Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Legislators, senior offi cials and managers, Permanent 18 3 8 9 16 1 1 1 57
Professionals, Permanent 130 12 12 13 168 7 8 15 365
Technicians and associate professionals, Permanent 69 11 8 8 86 4 3 7 196
Clerks, Permanent 134 13 8 8 244 33 11 20 471
Service and sales workers, Permanent 59 0 1 0 35 0 0 0 95
Craft and related trades workers, Permanent 3 0 0 0 0 0 0 0 3
Elementary occupations, Permanent 8 0 0 0 8 1 0 1 18
TOTAL 421 39 37 38 557 46 23 44 1205
Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Employees with disabilities 16 1 1 1 25 0 0 3 47
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5.2 Total number of Employees (incl. Employees with Disabilities) in each of the following Occupational Bands as at 31 March 2013
Occupational Bands Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Top Management, Permanent 1 0 1 0 0 0 0 0 2
Senior Management, Permanent 3 3 2 6 2 1 0 0 17
Professionally qualifi ed and experienced specialists and mid-management, Permanent 141 19 17
17
155 8 7 22 386
Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen, Permanent 196 16 10
7
330 35 15 21 630
Semi-skilled and discretionary decision making, Permanent 60 0 0
045 1 0 0 106
Unskilled and defi ned decision making, Permanent 0 0 0
02 0 0 0 2
Contract (Top Management), Permanent 9 1 1
03 0 0 0 14
Contract (Senior Management), Permanent 9 0 5
312 0 1 1 31
Contract (Professionally qualifi ed), Permanent 5 1 0
03 0 0 0 9
Contract (Skilled technical), Permanent 0 0 0
10 0 0 0 1
Contract (Unskilled), Permanent 5 0 0 0 2 0 0 0 7
TOTAL 429 40 36 34 554 45 23 44 1205
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5.3 Recruitment for the period, 2012/2013
Occupational Bands Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Professionally qualifi ed and experienced specialists and mid-management, Permanent 6 1 0 0 4 0 0 0 11
Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen, Permanent 9 1 0 0 16 4 1 2 33
Semi-skilled and discretionary decision making, Permanent 1 0 0 0 0 0 0 0 1
Contract (Senior Management), Permanent 0 0 0 0 2 0 0 0 2
Contract (Unskilled), Permanent 8 0 0 0 6 0 0 0 14
TOTAL 24 2 0 0 28 4 1 2 61
Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Employees with disabilities 0 0 0 0 0 0 0 0 0
5.4 Promotions for the period, 2012/2013
Occupational Bands Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Top Management, Permanent 0 0 1 0 0 0 0 0 1
Senior Management, Permanent 3 1 0 2 3 1 0 0 10
Professionally qualifi ed and experienced specialists and mid-management, Permanent 128 16 14 15 131 9 8 22 343
Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen, Permanent 155 17 6 9 264 30 11 17 509
Semi-skilled and discretionary decision making, Permanent 54 0 0 0 31 2 0 0 87
Unskilled and defi ned decision making, Permanent 0 0 0 0 2 0 0 0 2
Contract (Top Management), Permanent 0 0 0 1 1 0 0 0 2
Contract (Senior Management), Permanent 10 0 4 3 10 0 1 1 29
Contract (Professionally qualifi ed), Permanent 3 1 0 0 1 0 0 0 5
TOTAL 353 35 25 30 443 42 20 40 988
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Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Employees with disabilities 12 1 0 0 18 0 0 3 34
5.5 Terminations for the period, 2012/2013
Occupational Bands Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Professionally qualifi ed and experienced specialists and mid-management, Permanent 4 0 0 0 5 0 0 1 10
Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen, Permanent 6 1 0 0 3 0 0 2 12
Semi-skilled and discretionary decision making, Permanent 4 0 0 0 0 0 0 0 4
Contract (Top Management), Permanent 0 0 0 1 1 0 0 0 2
Contract (Senior Management), Permanent 3 0 0 0 4 0 0 0 7
Contract (Professionally qualifi ed), Permanent 1 0 0 0 0 0 0 0 1
Contract (Skilled technical), Permanent 0 0 0 0 1 0 0 0 1
Contract (Unskilled), Permanent 3 0 0 0 7 0 0 0 10
TOTAL 21 1 0 1 21 0 0 3 47
Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Employees with disabilities 0 0 0 0 0 0 0 0 0
5.6 Disciplinary Action for the period, 2012/2013
Disciplinary action Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
TOTAL 7 0 0 0 1 0 0 0 8
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5.7 Skills Development for the period, 2012/2013
Occupational Categories Male, African
Male, Coloured
Male, Indian
Male, White
Female, African
Female, Coloured
Female, Indian
Female, White
Total
Legislators, Senior Offi cials and Managers 2 0 0 0 5 0 0 0 7
Professionals 30 6 5 3 52 5 2 3 106
Technicians and Associate Professionals 24 4 3 0 12 4 5 5 57
Clerks 4 2 1 0 14 4 3 1 29
Service and Sales Workers 0 0 0 0 18 0 4 0 22
Skilled Agriculture and Fishery Workers 0 0 0 0 0 0 0 0 0
Craft and related Trades Workers 21 5 0 1 28 10 6 4 75
Plant and Machine Operators and Assemblers 0 0 0 0 0 0 0 0 0
Elementary Occupations 3 0 0 0 0 0 0 0 3
TOTAL 84 17 9 4 129 23 20 13 299
Employees with disabilities 3 0 0 0 4 0 0 0 0
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6. Performance RewardsTo encourage good performance, the department has granted the following performance rewards during the year review. The information is presented in terms of race, gender and disability, salary bands and critical occupations.
6.1 Performance Rewards by Race, Gender and Disability, 2012/2013
Demographics Number of Benefi ciaries
Total Employment
Percentage of Total
Employment
Cost (R’000) Average Cost per Benefi ciary
(R)
African, Female 179 455 34.1 2,144 11,978
African, Male 148 437 36.4 2,210 14,934
Asian, Female 11 23 47.8 150 13,613
Asian, Male 15 34 44.1 301 20,070
Coloured, Female 22 45 48.9 305 13,847
Coloured, Male 11 38 28.9 139 12,673
White, Female 22 41 53.7 269 12,250
White, Male 17 34 50 304 17,904
Employees with a disability 13 46 28.9 125 9,596
TOTAL 438 1153 36 5,948 126,865
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6.2 Performance Rewards by Salary Band for Personnel below Senior Management Service, 2012/2013
Salary Band Number of Benefi ciaries
Total Employment
Percentage of Total
Employment
Cost (R’000) Average Cost per
Benefi ciary (R)
Lower skilled (Levels 1-2) 1 2 50 4 4,000
Skilled (Levels 3-5) 30 104 28.8 140 4,667
Highly skilled production (Levels 6-8) 206 627 32.9 2,930 14,223
Highly skilled supervision (Levels 9-12) 197 386 51 2,770 14,061
Contract (Levels 1-2) 0 7 0 0 0
Contract (Levels 6-8) 0 1 0 0 0
Contract (Levels 9-12) 4 9 44.4 103 25,750
Periodical Remuneration 0 17 0 0 0
TOTAL 438 1153 38 5947 62,701
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6.3 Performance Rewards by Critical Occupation, 2012/2013
Critical Occupations Number of Benefi ciaries
Total Employment
Percentage of Total
Employment
Cost (R’000) Average Cost per
Benefi ciary (R)
Administrative related 58 100 58 934 16,103
Advocates 2 2 100 29 14,500
All artisans in the building metal machinery etc. 0 3 0 0 0
Cashiers tellers and related clerks 1 3 33.3 6 6,000
Client inform clerks(switchboard reception inform clerks) 7 78 9 69 9,857
Communication and information related 2 2 100 18 9,000
Computer programmers. 1 1 100 14 14,000
Computer system designers and analysts. 20 57 35.1 273 13,650
Finance and economics related 35 67 52.2 585 16,714
Financial and related professionals 6 15 40 78 13,000
Financial clerks and credit controllers 42 169 24.9 399 9,500
Food services aids and waiters 3 4 75 16 5,333
Head of department/chief executive offi cer 0 1 0 0 0
Human resources & organisational development & relate prof 61 141 43.3 827 13,557
Human resources clerks 55 129 42.6 534 9,709
Human resources related 25 41 61 377 15,080
Information technology related 5 11 45.5 76 15,200
Language practitioners interpreters & other communication 1 3 33.3 11 11,000
Library mail and related clerks 15 50 30 132 8,800
Logistical support personnel 21 56 37.5 201 9,571
Material-recording and transport clerks 8 8 100 62 7,750
Messengers porters and deliverers 3 6 50 18 6,000
Other administration & related clerks and organisers 2 3 66.7 21 10,500
Other administrative policy and related offi cers 0 1 0 0 0
Other information technology personnel. 17 23 73.9 213 12,529
Other occupations 4 8 50 50 12,500
Risk management and security services 8 38 21.1 77 9,625
Secretaries & other keyboard operating clerks 13 31 41.9 136 10,462
Security offi cers 8 57 14 50 6,250
Senior managers 15 45 33.3 742 49,467
TOTAL 438 1153 38 5948 335,657
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6.4 Performance Related Rewards (Cash Bonus) by Salary Band for Senior Management Service, 2012/2013
SMS Band Number of Benefi ciaries
Total Employment
Percentage of Total
Employment
Cost (R’000) Average Cost per Benefi ciary
(R)
% of SMS Wage Bill
Personnel Cost SMS
(R’000)
Band A 19 41 46.3 877 46,158 2.6 34,205
Band B 2 7 28.6 135 67,500 1.7 8,090
Band C 2 8 25 136 68,000 1.6 8,657
Band D 0 1 0 0 0 0 0
TOTAL 23 57 40.4 1148 49913 2.3 50952
6.5 (a) Signing of Performance Agreements by Senior Management Services Members as at 30 September 2012
SMS Band Number of Funded SMS Posts per Level
Number of SMS Members per Level
Total Number of signed Performance
Agreements per Level
Signed Performance Agreements as %
of Total Number of SMS Members per
Level
Director General/ Head of Department 1 1 1 100%
Salary Level 16 (but not HOD) 0 0 0 0%
Salary Level 15 12 7 5 71%
Salary Level 14 13 8 6 75%
Salary Level 13 66 41 28 68%
TOTAL 92 57 40 70%
6.5 (b) Signing of Performance Agreements by Senior Management Services Members as at 31 March 2013
SMS Band Number of Funded SMS Posts per Level
Number of SMS Members per Level
Total Number of signed Performance
Agreements per Level
Signed Performance Agreements as %
of Total Number of SMS Members per
Level
Director General/ Head of Department 1 1 1 100%
Salary Level 16 (but not HOD) 0 0 0 0
Salary Level 15 12 7 6 86%
Salary Level 14 13 8 6 75%
Salary Level 13 66 41 29 71
TOTAL 92 57 42 74%
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7. Foreign WorkersThe tables below summarise the employment of foreign nationals in the department in terms of salary bands and by major occupation. The tables also summarise changes in the total number of foreign workers in each salary band and by each major occupation.
7.1 Foreign Workers, 2012/2013 by Salary Band
Salary Band Employment at Beginning
Period
Percentage of Total
Employment at End of
Period
Percentage of Total
Change in Employment
Percentage of Total
Total Employment at Beginning
of Period
Total Employment
at End of Period
Total Change in
Employment
Highly skilled supervision (Levels 9-12) 1 100 1 100 0 0 1 1 0
TOTAL 1 100 1 100 0 0 1 1 0
7.2 Foreign Workers, 2012/2013 by Major Occupation
Major Occupation
Employment at Beginning
Period
Percentage of Total
Employment at End of
Period
Percentage of Total
Change in Employment
Percentage of Total
Total Employment at Beginning
of Period
Total Employment
at End of Period
Total Change in
Employment
Administrative offi ce workers 1 100 1 100 0 0 1 1 0
TOTAL 1 100 1 100 0 0 1 1 0
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8. Leave Utilisation for the period January 2012 until December 2012The Public Service Commission identifi ed the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.
8.1 Sick Leave for Jan 2012 to Dec 2012
Salary Band Total Days % Days with Medical
Certifi cation
Number of Employees using Sick
Leave
% of Total Employees using Sick
Leave
Average Days per Employee
Estimated Cost
(R’000)
Total number of Employees using Sick
Leave
Total number of days with medical
certifi cation
Lower skilled (Levels 1-2) 20 100 3 0.2 7 5 3 20
Skilled (Levels 3-5) 602 89.7 84 6.9 7 194 84 540
Highly skilled production (Levels 6-8) 4511 81.2 628 51.9 7 2,664 628 3665
Highly skilled supervision (Levels 9-12) 2487 77 414 34.2 6 3,393 414 1916
Senior management (Levels 13-16) 123 79.7 27 2.2 5 366 27 98
Contract (Levels 1-2) 16 81.3 6 0.5 3 3 6 13
Contract (Levels 6-8) 21 90.5 2 0.2 11 15 2 19
Contract (Levels 9-12) 54 94.4 7 0.6 8 111 7 51
Contract (Levels 13-16) 236 78.4 38 3.1 6 731 38 185
TOTAL 8070 80.6 1209 100 7 7482 1209 6507
8.2 Disability Leave (Temporary and Permanent) for Jan 2012 to Dec 2012
Salary Band Total Days % Days with Medical
Certifi cation
Number of Employees
using Disability
Leave
% of Total Employees
using Disability
Leave
Average Days per Employee
Estimated Cost (R’000)
Total number of days with medical
certifi cation
Total number of Employees
using Disability
Leave
Skilled (Levels 3-5) 7 100 2 8.3 4 2 7 24
Highly skilled production (Levels 6-8) 115 100 16 66.7 7 65 115 24
Highly skilled supervision (Levels 9-12) 82 100 5 20.8 16 92 82 24
Contract (Levels 9-12) 11 100 1 4.2 11 19 11 24
TOTAL 215 100 24 100 9 178 215 24
9.3 summarises the utilisation of annual leave. The wage agreement concluded with the trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrual.
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8.3 Annual Leave for Jan 2012 to Dec 2012
Salary Band Total Days Taken Average days per Employee
Number of Employees who took leave
Lower skilled (Levels 1-2) 27 9 3
Skilled (Levels 3-5) 1988 18 110
Highly skilled production (Levels 6-8) 15938.76 19 853
Highly skilled supervision (Levels 9-12) 10407.25 17 595
Senior management (Levels 13-16) 693 13 53
Contract (Levels 1-2) 107 10 11
Contract (Levels 6-8) 43 9 5
Contract (Levels 9-12) 222 17 13
Contract (Levels 13-16) 923 17 53
TOTAL 30349.01 18 1696
8.4 Capped Leave for Jan 2012 to Dec 2012
Salary Band Total days of capped
leave taken
Average number of days taken
per employee
Average capped leave per employee
as at 31 December
2012
Number of Employees who took
Capped leave
Total number of capped
leave available at
31 December 2012
Number of Employees
as at 31 December
2012
Highly skilled production (Levels 6-8) 15 4 23 4 2533 109
Highly skilled supervision (Levels 9-12) 15 8 42 2 5367 129
Contract (Levels 13-16) 0 0 0 0 952 13
TOTAL 30 5 35 6 8852 251
8.5 Leave Payouts for the period 2012/2013The following table summarises payments made to employees as a result of leave that was not taken.
Reason Total Amount (R’000)
Number of Employees
Average Payment per Employee (R)
Capped leave payouts on termination of service for 2012/13 335 30 11167
Current leave payout on termination of service for 2012/13 0 16 0
TOTAL 335 46 7283
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9. HIV/ AIDS & Health Promotion Programmes9.1 Steps taken to reduce the risk of occupational exposure
Units/categories of employees identifi ed to be at high risk of contracting HIV & related diseases (if any)
Key steps taken to reduce the risk
N/A N/A
9.2 Details of Health Promotion and HIV/AIDS Programmes for the period 2012/2013
Question Yes No Details, if yes
1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.
Yes
Ms. Sibongile Ngwenya – Director :HCM
2. Does the department have a dedicated unit or have you designated specifi c staff members to promote health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.
Yes
6 people
R280 000.00 for counseling purposes only
3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of the programme.
Yes
· Counseling
· Trauma & Incident Management
· Implementation of wellness events
· Substance abuse support
· Various workshops e.g. stress management & money management
4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.
No
Not yet, however there is a peer education forum which tackles HIV & AIDS issues in the workplace
5. Has the department reviewed the employment policies and practices of your department to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.
Yes
· Recruitment policy & procedure manual
· HIV &other chronic diseases policy
· Leave policy
· Abscondment policy
6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures. No
· The department is in the process of developing HIV /AIDS and TB Policy which will state clearly the rights of the people living with HIV.
· Peer educators are also planning to conduct trainings on the management of HIV/AIDS stigma and discrimination
7. Does the department encourage its employees to undergo Voluntary Counseling and Testing? If so, list the results that you have achieved. Yes
· The department has a close partnership with GEMS.
· It always assists with free testing and counseling
· 51 employees participated
8. Has the department developed measures/indicators to monitor & evaluate the impact of your health promotion programme? If so, list these measures/indicators.
Yes
· Number of health education or awareness programmes implemented
· Approved mainstreamed HIV/AIDS/TB and gender policy developed
· Number of employees participated in HIV/AIDS and TB
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10. Labour Relations10.1 Collective Agreements 2012/2013
Total collective agreements None
The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review
10.2 Misconduct and Discipline Hearings Finalised 2012/2013
Outcomes of disciplinary hearings Number Percentage of Total Total
Final written warning 4 67 4
Suspended without pay 0 0 0
Dismissal 2 33 2
TOTAL 6 100% 6
10.3 Types of Misconduct Addressed and Disciplinary Hearings
Type of misconduct Number Percentage of Total Total
Poor performance 0 0 0
Negligence 0 0 0
Insubordination 0 0 0
Ex post facto 0 0 0
Theft 6 75 6
Violence/ victimisation 0 0 0
Disregard to policy rules 1 12.5 1
Absenteeism/ and late coming 1 12.5 1
TOTAL 8 100 8
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10.4 Grievances Lodged for the period, 2012/2013
Number of grievances addressed Number Percentage of Total Total
Salary level 2 6 2
Victimisation 5 14 5
Assault 0 0 0
PMDS 7 21 7
Other 20 59 20
TOTAL 34 100 34
TOTAL RESOLVED 10 29% 10
10.5 Disputes Lodged with Councils for the period, 2012/2013
Number of disputes addressed Number % of total
Number of disputes upheld 8 80
Number of disputes dismissed 0 0
Number of disputes in process 2 20
Total number of disputes lodged 10
10.6 Strike Actions for the period, 2012/2013
Strike Actions Number
Total number of working days lost 1
Total cost(R’000) of working days lost 1842.55
Amount (R’000) recovered as a result of no work no pay 1842.55
10.7 Precautionary Suspensions
Precautionary Suspensions Number
Number of people suspended 6
Number of people whose suspension exceeded 30 days 6
Average number of days suspended 60
Cost (R’000) of suspensions 283489.12
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11. Skills DevelopmentThis section highlights the efforts of the department with regard to skills development.
11.1 Training Needs Identifi ed 2012/2013
Occupational Categories Gender Number of employment as at 1 April
2012
Learnerships Skills Programmes & other short
courses
Other forms of training
Total
Legislators, senior offi cials and managers
Female 19 0 10 0 10
Male 38 0 19 0 19
Professionals Female 198 37 102 0 139
Male 167 0 60 0 60
Technicians and associate professionals
Female 181 10 45 0 55
Male 196 0 46 0 46
Clerks Female 308 10 86 0 96
Male 163 0 66 0 66
Service and sales workers Female 0 0 0 0 0
Male 0 0 0 0 0
Skilled agriculture and fi shery workers
Female 35 0 3 0 3
Male 60 0 3 0 3
Craft and related trades workers Female 0 0 0 0 0
Male 3 0 0 0 0
Plant and machine operators and assemblers
Female 0 0 0 0 0
Male 0 0 0 0 0
Elementary occupations
Female 10 0 7 0 7
Male 8 0 5 0 13
Sub total
Female 751 57 0 0 57
Male 635 0 0 0 0
Total 1386 57 448 0 505
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11.2 Training Provided 2012/2013
Occupational Categories Gender Number of employment as at 1 April
2012
Learnerships Skills Programmes & other short
courses
Other forms of training
Total
Legislators, senior offi cials and managers
Female 19 0 2 3 5
Male 38 0 1 1 2
Professionals Female 198 0 43 19 62
Male 167 0 38 6 44
Technicians and associate professionals
Female 181 0 1 25 26
Male 196 0 13 18 31
Clerks Female 308 10 0 12 22
Male 163 3 0 4 7
Service and sales workers Female 0 0 0 22 22
Male 0 0 0 0 0
Skilled agriculture and fi shery workers
Female 35 0 0 0 0
Male 60 0 0 0 0
Craft and related trades workers Female 0 0 0 48 48
Male 3 0 0 27 27
Plant and machine operators and assemblers
Female 0 0 0 0 0
Male 0 0 0 0 0
Elementary occupations Female 10 0 0 0 0
Male 8 0 0 0 0
Gender sub totals Female 751 10 46 129 185
Male 635 3 52 56 111
Total 1386 13 98 185 296
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153
12. Injury on Duty The following tables provide basic information on injury on duty.
12.1 Injury on Duty 2012/2013
Nature of injury on duty Number % of total
Required basic medical attention only 13 100%
Temporary Total Disablement 0 0
Total Disablement 0 0
Fatal 0 0
Total 13 100%
13. Utilisation of Consultants13.1 Report on Consultant Appointments using Appropriated Funds
Project Title Total number of consultants that
worked on the project
Duration: Work days Contract value in Rand
Audit Support 0 80 1,325,000.00
Legal Support 6 45 3,561,831.76
Information Technology 10 365 592,296,624.26
Asset Management -
Editing and translation of publications -
Finance Support -
Human Resource Management 8 18 1,127,896.53
Forensic Support
Total 598,311,352.55
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13.2 Analysis of Consultant Appointments using Appropriated Funds, in terms of Historically Disadvantaged Individuals (HDIs)
Project Title Percentage ownership by HDI groups
Percentage management by HDI
groups
Number of Consultants from HDI groups that work on the
project
Audit Support 100% 100% 21
Legal Support 60% 58% 4
Information Technology 89% 85% 48
Asset Management - -
Editing and translation of publications - -
Finance Support - -
Human Resource Management 70% 63% 12
Forensic Support - -
Postal Address: Private Bag X112, Marshalltown, South Africa, 2107
Switchboard Number: 011 689 6000
Fax: 011 355 2112
Website: www. nance.gpg.gov.zawww.gautengonline.gov.za
Email: [email protected]
Contact Centre: 0860 GAUTENG (428 8364)
Physical Address: Imbumba House, 75 Fox Street, Johannesburg, South Africa, 2107
PR166/2013
ISBN: 978-0-621-41948-1