gauteng province...the gauteng department of finance was established as a separate department from...

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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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


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


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


- 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


• 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


% of EXCO decisions tracked and managed

- 100% EXCO deci-sions tracked and managed

100%(4) EXCO decisions tracked and managed


% 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


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



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.


Sub -Programme Name: Forensics

Strategic objective

Actual Achievement 2011/2012



Deviation from planned target to

Actual Achievement for 2012/2013


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


4 Fraud detection reviewsconducted

Conduct 11 fraud detection reviews

Conducted 11 fraud detection reviews


15 Fraud risk assessmentsconducted

Issue Fraud risk assessment reports

Conducted 11 fraud risk assessments


5 Fraud prevention plans updated

Update 11 GPG Fraud prevention plans annually

Updated 11 fraud prevention plans


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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Sub-programme: Forensics

Performance Indicator Actual Achievement 2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


% 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


Number of fraud detection reviews conducted

4 Fraud detection reviews conducted

Conduct 11 fraud detection reviews

Conducted 11 fraud detection reviews


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


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


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


Sub- Programme Name: Risk Management

Strategic objective Actual Achievement 2011/2012





2012/2013


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


• Reasons for deviationNone


Sub- Programme Name: Risk Management







Approved risk management policy

- Approved risk management policy

The risk management policy was approved on 30 June 2012


Approved risk management framework

- Approved risk management framework

The risk management framework was approved on 30 June 2012



• Strategy to overcome areas of under performanceNone

• Changes to planned targets


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


Sub- Programme Name: Offi ce of the CFO


Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013



- Submit accurate budget and adjustment statements timely

Accurate budget and adjustment statements submitted timely


- Demand plan approved

The demand plan was approved




Sub-programme: Offi ce of the CFO


Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


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


Approved demand plan - Demand plan approved

The demand plan was approved




24

Strategy to overcome areas of under performance

No deviations



% 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.


25

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


Sub -Programme: Corporate Management

Strategic objectives






2012/2013



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


- Develop and approve a security threats and risk mitigation plan

Developed and approved a security threats and risk mitigation plan


- Develop and approve a communications strategy

Developed and approved a communications strategy


- 100% legal opinions issued

Issued 100% (21) legal opinions


- 100% of litigation matters managed

Managed 100% (35) litigation matters


- 100% of legal contracts handled

Handled 100% (22) legal contracts


- 4 GEYODI reports submitted

Submitted 4 GEYODI reports


- 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


- 78% Compliance by GDF to Service Standards

91% Compliance by GDF to Service Standards


- 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


- 70% of escalated cases resolved within 60 working days

Resolved 75.7% of escalated cases within 60 working days


Provided 70% customer feedback on escalated cases within 3 working days

Provided 70% customer feedback on escalated cases within 3 working days



26

Sub -Programme: Corporate Management







2012/2013



- 80% of Hotline calls answered within 20 seconds

93% of Hotline calls were answered within 20 seconds


- Approved and Submitted GDF Strategic Plan

Approved and Submitted Revised GDF Strategic Plan


- Approved and Submitted Annual Performance Plan

Submitted the approved fi nal draft of the APP to the Provincial Legislature and Treasury


- 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


27


Sub-programme: Corporate Management

Performance Indicator






2012/2013


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


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


Approved communications strategy

- Develop and approve a communications strategy

Developed and approved a communications strategy


% of legal opinions issued

- 100% legal opinions issued

Issued 100% (21) legal opinions


% of litigation matters managed

- 100% of litigation matters managed

Managed 100%(35) litigation matters


% of legal contracts handled

- 100% of legal contracts handled

Handled 100%(22) legal contracts


Number of GEYODI reports submitted

- 4 GEYODI reports submitted

Submitted 4 GEYODI reports


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


% Compliance by GDF to Service Standards

- 78% Compliance by GDF to Service Standards

Achieved 91% Compliance to Service Standards


% 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


% 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


% 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


% of Hotline calls answered within 20 seconds

- Answered 93% of hotline calls within 20 seconds

Answered 93% of hotline calls within 20 seconds



28

Sub-programme: Corporate Management







2012/2013


Approved and Submitted GDF Strategic Plan

- Submit the approved GDF’s Strategic Plan

Submitted the revised and approved GDF’s Strategic Plan


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


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.


29



% 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)


30

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.


Programme Name: Gauteng Audit Services






2012/2013


To promote sound corporate governance in the province through an effective internal control environment.

39 audits 39 audits 40 audits None Targets Achieved






31


Programme Name: Gauteng Audit Services






2012/2013


Number of planned risk audits completed for Risk and Compliance Clusters 1, 2


Number of planned risk audits completed for Risk and Compliance Clusters 3, 4, 5


Number of planned computer audits completed


Number of planned performance audits completed






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


32

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








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


- 6 additional business / mobile applications to be automated

Automated 6 additional business/mobile applications


- 1 additional collaboration application to be implemented

Implemented 1 additional collaboration application



33









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


- 1 GDF key process implemented with ISO 9001 Best Practice

Implemented the ISO 9001 Certifi cation of Best Practice in 2 GDF key processes


- 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.


34







Deviation from planned target to Actual Achievement for

2012/2013


% 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


Number of automated business/mobile applications implemented for the GPG

- 6-Additional business / mobile applications to be automated

Automated 6 additional business/mobile applications


Number of collaboration applications to be implemented

- 1-Additional collaboration application to be implemented

Implemented 1 additional collaboration application


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


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



35






Deviation from planned target to Actual Achievement for

2012/2013


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.


36

• 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


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


37

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


Programme Name






2012/2013


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.


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.


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


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


- 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.


- 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



38

Programme Name






2012/2013



- 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


- 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.


- 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.


- 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


- 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.


- 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.


39

Programme Name






2012/2013



- 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


• 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.


40







target to Actual



% 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


41






target to Actual



% 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



42

• 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.



% 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


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


Programme Name: Human Resources Services






2012/2013


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


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


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




44


Programme : Human Resources





target to Actual




50 % Roll out of the enhanced and integrated E-recruitment model


Deployed Phase 2 of the integrated E-recruitment model


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


Number of peopleaccessing the Maponya Mall PJC

5 175 people accessing the Maponya Mall Thusong Service Centre


3 519 people accessed the Maponya Mall Thusong Service Centre






Number of people accessing the Maponya Mall PJC


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


46

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


47

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.



48

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.



49

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



50

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



51

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



52

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


53

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;


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


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



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.



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


58

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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.


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.


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


80

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 - -


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


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.



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).



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.



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.



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



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


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



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


Note 2012/13 2011/12R’000 R’000


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



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


Note 2012/13 2011/12R’000 R’000


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



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



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


Note 2012/13 2011/12R’000 R’000


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



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.



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



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.


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


equipment


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**


equipment


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


equipment


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.


100


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


101


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


102


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


103


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


104


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


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


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


105



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


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


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


106



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

Opening 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


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


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

Opening 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


107


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 - - - - -


108

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119

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11199

Section 5OUTLOOK FOR THE COMING YEAR


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.


121

• 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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121233

Section 6OVERSIGHT REPORT


124

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


125

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.


126

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


127

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


128

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




TOTAL 1583 1205 23.9 7


129

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


130

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.


131

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 (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


132

4.2 Annual Turnover Rates by Critical Occupation for the period 2012/2013, permanent positions

Occupation Employment at Beginning


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


133

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


134

4.5 Promotions by Critical Occupation

Occupation Employment at Beginning


Promotions to another

Salary Level

Salary Level Promotions

as a % of Employment

Progressions to another

Notch within Salary Level

Notch progressions


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


135

4.6 Promotions by Salary Band



Promotions to another

Salary Level

Salary Level Promotions


Progressions to another

Notch within Salary Level

Notch progressions


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 13-16), Permanent 42 0 0 31 73.8

TOTAL 1386 75 5.4 913 65.9


136

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


137

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


138

5.3 Recruitment for the period, 2012/2013


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


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


5.4 Promotions for the period, 2012/2013


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




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 (Professionally qualifi ed), Permanent 3 1 0 0 1 0 0 0 5

TOTAL 353 35 25 30 443 42 20 40 988


139

Male, African

Male, Coloured

Male, Indian

Male, White

Female, African

Female, Coloured

Female, Indian

Female, White

Total


5.5 Terminations for the period, 2012/2013


Male, Coloured

Male, Indian

Male, White

Female, African

Female, Coloured

Female, Indian

Female, White

Total




Contract (Top Management), Permanent 0 0 0 1 1 0 0 0 2


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


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


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


140

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



141

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


142

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


143

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


144

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 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 13 66 41 29 71

TOTAL 92 57 42 74%


145

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


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


146

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.


147

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




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


148

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


149

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


150

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


151

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


152

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


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


154

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

gauteng province...the gauteng department of finance was established as a separate department from...

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