office of the premier bokone-bophirima province …...the 1st phase of the mrrrp implementation has...

OFFICE OF THE PREMIER

BOKONE-BOPHIRIMA PROVINCE

VOTE NO. 01

ANNUAL REPORT

FINANCIAL YEAR

2015-2016

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Contents

1. DEPARTMENT GENERAL INFORMATION ...........................................................................................................................8

2. LIST OF ABBREVIATIONS/ACRONYMS ...............................................................................................................................9

3. STRATEGIC OVERVIEW ..................................................................................................................................................... 11

3.1. Vision ................................................................................................................................................................................. 11

3.2. Mission ............................................................................................................................................................................... 11

3.3. Values ................................................................................................................................................................................ 11

3.4. Strategic outcome orientated goals.................................................................................................................................... 12

4. LEGISLATIVE AND OTHER MANDATES ............................................................................................................................ 13

4.1 Constitutional Mandate .......................................................................................................................................................... 13

5. ORGANISATIONAL STRUCTURE .......................................................................................................................................... 15

6. ENTITIES REPORTING TO THE OFFICE OF THE PREMIER ............................................................................................ 19

7. FOREWORD BY THE PREMIER .......................................................................................................................................... 20

8. OVERVIEW BY THE ACCOUNTING OFFICER - DR K.L SEBEGO .................................................................................... 23

1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION ..................................................................... 28

2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ................................................................................. 29

3. OVERVIEW OF DEPARTMENTAL PERFORMANCE .......................................................................................................... 29

3.1. Service Delivery Environment ............................................................................................................................................ 29

3.2. Service Delivery Improvement Plan ................................................................................................................................... 36

3.3. Organisational environment ............................................................................................................................................... 40

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3.4 Key policy developments and legislative changes ............................................................................................................... 41

4. STRATEGIC OUTCOME ORIENTED GOALS ...................................................................................................................... 41

5. PERFORMANCE INFORMATION BY PROGRAMME .......................................................................................................... 50

5.1 Programme 1: Administration ............................................................................................................................................ 50

5.2. Programme 2: Institutional Development Support and Integrity Management .................................................................... 64

5.3 PROGRAMME 3: POLICY, PLANNING AND MONITORING AND EVALUATION ............................................................... 83

6. SUMMARY OF FINANCIAL INFORMATION ........................................................................................................................ 95

6.1. Departmental receipts ........................................................................................................................................................ 95

6.2. Programme Expenditure .................................................................................................................................................... 95

6.3. Transfer payments, excluding public entities ..................................................................................................................... 96

6.4. Public Entities .................................................................................................................................................................... 96

6.5. Conditional grants and earmarked funds paid ................................................................................................................... 97

6.6. Conditional grants and earmarked funds received ............................................................................................................. 97

6.7. Donor Funds ...................................................................................................................................................................... 97

6.8. Capital investment, maintenance and asset management plan ......................................................................................... 97

1. INTRODUCTION ................................................................................................................................................................... 99

2. RISK MANAGEMENT ........................................................................................................................................................... 99

3. FRAUD AND CORRUPTION ................................................................................................................................................ 99

4. MINIMISING CONFLICT OF INTEREST ............................................................................................................................ 101

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5. CODE OF CONDUCT ......................................................................................................................................................... 101

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ......................................................................................................... 101

7. PORTFOLIO COMMITTEE .................................................................................................................................................... 103

8. SCOPA RESOLUTIONS ........................................................................................................................................................ 106

There were no SCOPA resolutions for the 2014/2015 Financial year. ....................................................................................... 106

9. PRIOR MODIFICATIONS TO AUDIT REPORTS ............................................................................................................... 106

10. INTERNAL CONTROL UNIT ........................................................................................................................................... 125

11. AUDIT COMMITTEE REPORT ........................................................................................................................................ 125

1. LEGISLATURE THAT GOVERN HR MANAGEMENT ........................................................................................................ 132

2. INTRODUCTION ................................................................................................................................................................. 132

3. HUMAN RESOURCE OVERSIGHT STATISTICS .............................................................................................................. 133

3.1. Personnel related expenditure ......................................................................................................................................... 133

3.2. Employment and Vacancies ............................................................................................................................................ 137

3.3. Job Evaluation ................................................................................................................................................................. 138

b. Employment Changes ......................................................................................................................................................... 144

c. Employment Equity ............................................................................................................................................................. 149

e. Foreign Workers .................................................................................................................................................................. 159

f. Leave utilisation .................................................................................................................................................................. 160

g. HIV/AIDS & Health Promotion Programmes ....................................................................................................................... 163

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h. Labour Relations ................................................................................................................................................................. 166

i. Skills development .............................................................................................................................................................. 168

j. Injury on duty ....................................................................................................................................................................... 171

3.4. Utilisation of Consultants ................................................................................................................................................. 172

1. REPORT OF THE ACCOUNTING OFFICER ..................................................................................................................... 175

Report of the auditor-general to the North West provincial legislature on vote no. 1: the Office of the Premier Introduction ................................................................................................................................................................................ 184

Accounting officer’s responsibility for the financial statements .................................................................................................. 184

Auditor-general’s responsibility .................................................................................................................................................. 184

Basis for qualified opinion .......................................................................................................................................................... 185

Goods and services ................................................................................................................................................................... 185

Qualified opinion ........................................................................................................................................................................ 185

Emphasis of matters .................................................................................................................................................................. 185

Irregular and fruitless and wasteful expenditure ........................................................................................................................ 185

Payables .................................................................................................................................................................................... 185

Material underspending of the budget ....................................................................................................................................... 185

Additional matter ........................................................................................................................................................................ 185

Unaudited supplementary schedules ......................................................................................................................................... 185

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Report on other legal and regulatory requirements .................................................................................................................... 186

Additional matters ...................................................................................................................................................................... 186

Achievement of planned targets ................................................................................................................................................ 186

Adjustment of material misstatements ....................................................................................................................................... 186

Annual financial statements ....................................................................................................................................................... 187

Expenditure management .......................................................................................................................................................... 187

Procurement and contract management .................................................................................................................................... 187

Leadership ................................................................................................................................................................................. 187

Financial and performance management .................................................................................................................................. 187

Governance ............................................................................................................................................................................... 188

Other reports .............................................................................................................................................................................. 188

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PART A:GENERAL INFORMATION

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1. DEPARTMENT GENERAL INFORMATION

Full name of the department: Office of the Premier - North West Province Physical address of Head Office: Garona Building: North West Province Postal Address of Head Office: Private Bag X 129 Mmabatho 2735 Contact telephone numbers: (018) 388 3040 Email – address: [email protected] Website address: http://premier.nwpg.gov.za

http://premier.nwpg.gov.za/

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2. LIST OF ABBREVIATIONS/ACRONYMS

AGSA Auditor General of South Africa

BBBEE Broad Based Black Economic Empowerment

CFO Chief Financial Officer

MEC Member of Executive Council

HOD Head of Department

PFMA Public Finance Management Act

TR Treasury Regulations

MTEF Medium Term Expenditure Framework

SMME Small Medium and Micro Enterprises

SCM Supply Chain Management

EU European Union

SITA State Information Technology Agency

SDIP

NDP

FSDM

Service Delivery Improvement Plan

National Development Plan

Frontline Service Delivery Model

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EXCO

CGICT

MEC

NWPCA

NWYDT

BBPCC

RRR

MRRRP

VTSD

ACT

PM&E

RYDP

NSDS

PMOS

NMOS

Executive Council

Corporate Governance of ICT

Members of the Executive Council

North West Provincial Council on Aids

North West Youth Development Trust

Bokone-Bophirima Premier’s Coordinating Council

Rebranding, Repositioning and Renewal

Mahikeng Rebranding, Repositioning and Renewal Plan

Village, Townships and Small Dorpies

Agriculture, Culture and Tourism

Performance Monitoring and Evaluation

Rural Youth Development Programme

National Skills Development Strategy

Provincial Macro Organisation of the State

National Macro Organisation of State

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3. STRATEGIC OVERVIEW

3.1. Vision

A united, non-racial, non-sexist and prosperous democratic society for the people of Bokone-Bophirima to uplift the quality

of life

3.2. Mission

To facilitate integrated governance, planningand accelerate service delivery that is people-centered for improved economic

growth in Bokone-Bophirimathrough integrated coordination of policy frameworks, performance monitoring and evaluation.

3.3. Values

The following are core values that the office will adhere to in promoting integrated governance and accelerated service delivery for improved quality of life and economic growth for the people of Bokone Bophirima:

Caring

Agile

Responsive

Excellence

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3.4. Strategic outcome orientated goals

The following are the three strategic outcome orientated goals for the Office of the Premier. The three strategic outcome orientated goals are aligned to Outcome 12: An efficient, effective and development oriented public service; an empowered, fair and inclusive citizenship through the delivery of quality services, as well as, access through co-operative governance and knowledge management that facilitates evidence based decisions.

Strategic Outcome Orientated Goal 1 Mobilise Effective Support for the Political and Administrative Leadership of the Bokone – Bophirima Province. Strategic Outcome Orientated Goal 2 Effective and efficient leadership within the Province on Human Resource Management and Development; Information Communication Technology; Legal Services; Communications and Programme Support Strategic Outcome Orientated Goal 3 Quality service delivery and access through co-operative governance and knowledge management that facilitates evidence-based decisions

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4. LEGISLATIVE AND OTHER MANDATES

4.1 Constitutional Mandate

The mandate of the Office of the Premier is to support the Premier in the execution of Constitutional responsibilities as well as

other political and ceremonial functions.

Section 125(2) of the Constitution determines that the Premier exercises the Executive Authority of the province together with the other members of the Executive Council (EXCO).

The Premier appoints these members and assigns functions and responsibilities. The Premier may also delegate powers to them.

The Constitution defines the powers and functions of the Premier, among others, as follows:

To assent to, sign and promulgate Bills duly passed by the Provincial Legislature and in the event of a procedural shortcoming

in the legislative process to refer a Bill passed by the Provincial Legislature back for further consideration by such Legislature;

To convene meetings of the Executive Council;

To appoint commissions of enquiry; and

To make such appointments as may be necessary under powers conferred upon him /her by this Constitution or any other

law. The Premier and Members of the Executive Council (MECs) must act in accordance with the Constitution and regularly provide

the Legislature with full reports concerning matters under their control. The Premier and MECs must act in accordance with the

code of conduct prescribed by national legislation and they are accountable to the President, as well as, the Provincial Legislature

for the exercise of powers including the performance of functions allocated to them. All MECs are accountable individually both to

the Premier and the Provincial Legislature for their portfolios. \

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The Executive Council has established Executive Council Cluster Committees which are responsible for cluster - specific programmes and functions. The Director-General as the Administrative Head of the Office of the Premier and Secretary to the Executive Council (EXCO), is mandated to coordinate the management of Provincial Governance and Provincial Public Service.

The Premier as the Head of the Provincial Government is also responsible for the implementation of Chapter 3 of the Constitution.

4.2 Legislative Mandate

In terms of Section 7 (3) of the Public Service Act, the Director General is a Head of Department, and in this respect he or she shall be “responsible for the efficient management and administration of his or her Department, including the effective utilisation and training of staff, the maintenance of discipline, the promotion of sound labour relations and the proper use and care of state

property, and he or she shall perform the functions that may be prescribed.”

In addition to the above, the Director-General shall be:

i. the Secretary to the Executive Council of the Province concerned; ii. responsible for inter-governmental relations the relevant Provincial Administration and other relevant Provincial

Administrations as well as national departments. iii. Responsible for the intra-governmental co-operation; between the relevant administration and its provincial departments

including the coordination of their actions and legislation; and iv. Responsible for the giving of strategic direction on any matter referred to in Section3 (2) (a) of the Act.

These responsibilities of the Director General in terms of the Public Service Act are also aligned to his / her responsibilities under the Public Finance Management Act, 1999.

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5. ORGANISATIONAL STRUCTURE

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6. ENTITIES REPORTING TO THE OFFICE OF THE PREMIER

Name of Entity Legislative Mandate Financial Relationship Nature of Operations

North West Provincial Council on

Aids

Schedule 3C Public Entity

Office of the Premier transfers

funds to NWPCA on a quarterly

basis. NWPCA submits audited

financial statements to the Office

of the Premier

Advise North West Provincial

Government on HIV/AIDS

related matters

Youth Development Trust

Schedule 3C Public Entity

The payment to NWYDT has not

been transferred as the entity is

currently being wound-up

None

A re Ageng Forum

Executive Council Resolution

Office of the Premier transfers

funds to A re Ageng Forum on a

quarterly basis. A re Ageng

Forum submit audited financial

statements to Office of the

Premier

Provide a platform for a social

dialogue with stakeholders in

the North West Province and

create an enabling

environment for sustainable

socio-economic development.

It facilitates participatory

planning on social, economic

and related development

issues in the Province

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7. FOREWORD BY THE PREMIER

During the last quarters of the 2015/16 Financial Year we introduced few amendments to review the 2016/17 Annual Performance Plan in order to accommodate priorities outlined in the State of the Province delivered on 24th February 2016, whilst at the same time maintaining and implementing the programme

of action of the 5th administration in the context of the NDP.

This critical approach to the NDP through Five Concretes as follows is fundamental:

Agriculture, Culture and Tourism (ACT)

Villages, Township and Small Dorpies (VTSD)

Rebranding, Healing and Renewal (RHR)

Saamtrek-Saamwerk

Setsokotsane

During the year under review, we introduced necessary changes to capacitate and strengthen the Office of the Premier to play its role to coordinate entire government programme and most importantly to ensure that the Office’s Performance, Monitoring, Evaluation and Intervention role is enhanced. In this regard we wish to list a few milestones achieved by the Office during 2015/16

Financial Year;

The 1st phase of the MRRRP implementation has been finalized for the Capital city. Restructuring of the Organisational Structure of the Office of the Premier in line with the new (80% Performance,

Monitoring, Evaluation and Intervention role and 20% programme coordination)

Commissioning and commencing of Province wide state of ICT infrastructure study In progress of completing the VTSD within the first quarter of the 2016/17 Budget In Collaboration with North West University, Mahikeng Campus, we facilitated the Research Show Case Assented to Bills as mandated by Constitution

Successfully separated and enacted a law of both the Parks and Tourism Boards

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Commenced the legal framework for Youth Entrepreneurship Services (YES) Commenced Public Servants Qualifications Set up a panel of legal and labour experts to attend to the challenges of ligations

Ensured that EXCO rotates in VTSD Established the Bokone-Bophirima Premier’s Coordinating Committee thereby achieving certainty in policy planning and

implementation. In total 7 BBPCC meetings were held as part of Intergovernmental Relations

We have set up a Provincial Call Centre to deal with service delivery challenges faced by our people on a daily basis and working towards a 24hr Setsokotsane Operation Centre

Successful establishment of Ikatisong School of Governance Intervened successfully in the Departments of Education and Sports Development, Health as well as Public Work and Roads

in financial matters

It is for this reason amongst others that we started with development of the Village development plans, Townships development plans and Small Dorpies development plans (VTSD) plans to redirect the limited resources available for services delivery towards the most deserving poor people in villages, townships and small dorpies. For the financial year 2015/16, 60% of government procurement spend will be spent, in 2016/17, 70%, 2017/18, 80% and 90% in 2018/19. This policy will be in place for the remaining part of the 5th administration’s term of office. This is a direct response to deal with Poverty, Inequality and

Unemployment in NDP context.

The VTSD strategy will be implemented alongside other policy initiatives with primary focus in maximising and extending the rand value of our available budget. We have already reached an agreement with all Municipalities in the Province to introduce a Shared Services Model which will see the centralisation of strategic functions in the Province.

Initially, there is an agreement on the following services to be centralised:

Internal Audit

ICT Risk Management Supply Chain Management (SCM) Legal Services Technical Services (Infrastructure Services

Corporate Support Services

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Revenue Enhancement Town Planning Infrastructure

We are grateful to all Executive Mayors and Mayors of all municipalities for the cooperation and support during the past year. We also thank administrators from both provincial and local government who have worked tirelessly during the financial year under

review to put together plans to enhance integration and cooperation between the two spheres of government.

We thank in particular the Director General, Dr Lydia Sebego, for her stewardship of provincial government administration over the last year, and entire management and civil service without whose support we would have failed.

We owe a great debt of gratitude to the Auditor General for the diligent, robust and objective oversight on the utilisation of public funds. We commit ourselves to continue our regular interaction and cooperation with the Audit General to improve entire provincial

government audit outcomes.

The people of Bokone-Bophirima who have opened their homes and welcomed us into their villages and townships, embraced government service delivery approach like Setsokotsane deserve a special mention. Go lona Bagaetsho ra re Kgetsi ya Tsie e kgonwa ka go tshwaraganelwa.

_________________ SOR Mahumapelo Office of the Premier

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8. OVERVIEW BY THE ACCOUNTING OFFICER - DR K.L SEBEGO

It is with great pleasure to present to you the performance overview of the Office of the Premier for the financial year 2015/16. The 5th administration introduced significant policy initiatives that are aimed at improving the lives of the people’s Province of Bokone Bophirima. This annual report presents significant milestone achieved and the progress registered in pursuit of the

attainment of the goals and targets we have set ourselves for the year under review. In line with the

mandate and role of the Office of the Premier the report will cover the transversal activities performed

and internal office excellence achieved in 2015/16.

Despite the challenges, the office remains focussed on delivering on its strategic objectives and policy

mandates encapsulated in the 2015-2019 Strategic Plan.

The government’s Outcomes based approach towards performance has been one of the defining

features of the 5th administration, with an emphasis on delivery that impact positively on people’s lives.

I am pleased to report that the Office of the Premier has successfully launched the Rebranding, Repositioning and Renewal of

Bokone - Bophirima within the context of implementing the National Development Plan through the five concretes, namely;

Agriculture, Culture & Tourism (ACT)

Villages, Townships and Small Dorpies (VTSD)

Reconciliation, Healing and Renewal (RHR)

Setsokotsane

Saamtrek-Saamwerk

In the context of Rebranding, Repositioning and Renewal, the Office has, in partnership with the relevant line function departments

successfully coordinated the launching and holding of Bokone-Bophirima Maize Triangle Challenge, as well as, Mahika-Mahikeng

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Cultural festival. The 5th administration also resuscitated the air transport between O.R. Tambo International Airport, Pilanesberg

and Mahikeng International Airports.

In relation to the Setsokotsane approach, the Office in partnership with provincial departments, municipalities and the business

sector successfully held Setsokotsane in the four district municipalities. The following are some of the key achievements of

Setsokotsane:

Handing over of community halls to the communities of Jericho and Moubana villages by Madibeng and Moses Kotane

Local Municipalities respectively.

Launching of the new car registration numbers of Bokone Bophirima Province at the Moretele Local Municipality.

Official opening of a 7,1Km paved internal road at Lerome village by Moses Kotane Municipality.

Handing over of food gardening equipment and food parcels to the community of Maubane by Provincial Government.

Condolence contribution by Setsokotsane public servants to the 7 family members at Senthumole in Kgetleng, who

perished in a fire.

Blading of the Lebotloane gravel roads ( grading of several gravel road around the Province)

Maquassi Hills – the sewage problem which had not been attended by the Municipality for a long time was fixed during

the week of Setsokotsane.

The Department of Local Government and Human Settlement arranged for the building of a house and its handing over

to a family in Bona-bona village.

Dr KK district – installed the CCTV cameras as well as put the Call Centre at both Maquassi Hills and Matlosana Local

Municipality offices.

Department of Social Development and Agriculture handed the food parcels and vegetable gardens to most deprived

ECDs in both Maquassi Hills and Matlosana Local Municipalities as part of sector engagement.

Department of Finance, Economy and Enterprise Development (FEED) provided electronic and electrical equipments

amount to R600 000 to the identified cooperatives in Matlosana.

Matlosana: MEC handed over completed 111 of the 143 houses to beneficiaries at Nkagisang

25

The Programme also identified the community of Toevlug in Ventersdorp as a key success since 200 houses were

electrified.

In promoting the spirit of Saamtrek-Saamwerk, all provincial departments, municipalities and business sectors participated during

the Setsokotsane programmes which enabled the office to achieve the above targets.

The Office has established the Ikatisong School of Government which will facilitate skills development as part of the

implementation of the National Development Plan to build an effective, efficient and productive public service in the province. The

Office has now put into place a review of the implementation of ongoing programmes across the public service, these include

scarce skills within departmental work skills programmes, compulsory induction programme, performance management and

development system, Batho – Pele (Mens eerste – People First), Executive Development Programme and PFMA/MFMA -

Improvement of Audit outcomes at Provincial and Municipal levels.

In addressing youth unemployment, the Office has embarked on the establishment of the Youth Entrepreneurship Services (YES)

unit. The process of finalising establishment of YES is at an advanced stage.

The Office coordinated Youth Camps in the Tlokwe local municipality, at 4 Artillery Regiment in partnership with the South African

National Defence Force. The Camps were used to expose youth to skills and business development as well as job creation

initiatives by linking them with various departments and private sector institutions. A total of 400 youth have gone through the first

two camps with a total of 2400 youth expected to go through this system by the end of November 2016.

The Office of the Premier has developed a service delivery monitoring system through which we are able to track the

implementation of SOPA pronouncements, including decisions taken by the EXCO from time to time. This will enable us to hold all

Departments and state owned entities accountable on service delivery commitments adopted by the fifth Administration.

26

The Office has started to implement a Shared Services Model to facilitate the improvement of service delivery. We have centralised

legal services function in the Office of the Premier for better management of litigation cases and coordination of quality legal

services output. We have centralised infrastructure across departments and municipalities through the shared services model.

The Office managed to assess the 1st draft, 2nd draft and Final APP 2016/17 in line with Treasury Framework and alignment to the

5th Administration Priorities. The Office had one on one feedback sessions with departments on each of their draft submissions of

2016/17 APP. During the year under review, the Office has started the process of reviewing the Provincial Spatial Development

Framework (PSDF) which will be concluded in 2016/17 financial year.

The Office further assessed all the Municipal Integrated Development Plans IDP’s) in line with the Provincial Priorities. The Planning

Commission in the Office of the Premier has started with the development of VTSD Plans in the 4th quarter of 2015/16.

I would like to thank the Premier, Hon SOR Mahumapelo, for his visionary leadership. A word of gratitude to the Heads of

Department for cooperating and providing an enabling environment that led to smooth implementation of Setsokotsane

programme which is the anchor for accelerated service delivery to our communities in Bokone Bophirima. I also thank the Portfolio

Committee on Premier, Treasury and Enterprise development Committee for the oversight role they provided and in particular the

feedback and support we received from members of the Committee. Lastly I thank the management and staff in the office for the

dedication to their work and support during the year under review.

__________________

Dr K.L Sebego

Director General

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PART B: PERFORMANCE INFORMATION

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1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION

To the best of my knowledge and belief, I confirm the following: All information and amounts disclosed throughout the annual report are consistent. The annual report is complete, accurate and is free from any omissions. The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury. The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury. The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information. The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements. The external auditors are engaged to express an independent opinion on the annual financial statements. In my opinion, the annual report reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2016. ____________________

Director General DR. KL Sebego

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2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

The AGSA currently performs the necessary audit procedures on the performance information to provide reasonable

assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is

included in the report to management, with material findings being reported under the Predetermined Objectives heading in

the Report on other legal and regulatory requirements section of the auditor’s report.

Refer to page 157 of the Report of the Auditor General, published as Part E: Financial Information.

3. OVERVIEW OF DEPARTMENTAL PERFORMANCE

3.1. Service Delivery Environment

Rebranding, Repositioning and Renewal

The Office of the Premier has successfully launched and coordinated the implementation of the Rebranding, Repositioning

and Renewal Strategy within the context of implementing the National Development Plan through the five concretes, namely;

Agriculture, Culture & Tourism (ACT)



Setsokotsane

Saamtrek-Saamwerk

The Office has, in partnership with the relevant line function departments, successfully coordinated the launching and

holding of Bokone-Bophirima Maize Triangle Challenge, as well as, Mahika-Mahikeng Cultural festival. The 5th administration

also resuscitated the air transport between O.R. Tambo International Airport and Mahikeng International Airport.

30

Mahikeng Rebranding, Repositioning and Renewal (MRRRP)

The 1st phase of the MRRRP implementation has been finalized. The Office has now handed over the MRRRP project back to

Mahikeng Local Municipality, working with relevant stakeholders including all Provincial Departments for further implementation. A total

of R142 million was allocated for all identified projects implemented during the 2015/2016 financial year, and the following are some of

its achievements:

• CCTV cameras installed in and around Mahikeng

• Street-lighting in Mahikeng

• Cultural Villages - designs of the three cultural villages have been completed.

Executive Council has taken a decision to migrate the North West Development Corporation (NWDC) to the Office of the Premier as part

of its rebranding, repositioning and renewal.

Agriculture, Culture and Tourism (ACT)

The Office of the Premier coordinated the handing over of cattle to traditional leaders of food gardening equipment as a means to

improve the economy in our villages through agriculture. The handing over was done during setsokotsane.

On promoting culture and tourism, the Office successfully coordinated the Bokone Bophirima Soccer Challenge as well as Mahika-

Mahika Arts and Cultural Festival.


The Office has now established VTSD Economic Focus Groups whose main mandate will be to work together with and guide Provincial

Departments, municipalities and relevant stakeholders on economic planning and development in every VTSD area of the Province.

Provincial departments’ budget expenditure, especially in goods and services were biased towards the VTSD during the year under

review.

31


The Office of the Premier successfully coordinated the Reconciliation, Healing and Renewal event in Marikana during the 3rd quarter.

Setsokotsane

The Office implemented Setsokotsane in the 4 districts. The following are some of the Setsokotsane key achievements:

Handing over of a community hall to the community of Jericho by Madibeng Local Municipality

Handing over of a community hall to the community of Moubana village by Moses Kotane Local Municipality

Launching of the new car registration numbers of Bokone Bophirima Province at the Moretele Local Municipality

Official opening of a 7,1Km paved internal road at Lerome village by Moses Kotane Municipality

Handing over of 25 cattle to 8 traditional leaders in Bojanala

Handing over of food gardening equipment and food parcels to the community of Maubane by Provincial Government

Condolence contribution by Setsokotsane public servants to the 7 family members at Senthumole in Kgetleng, who perished in a fire

Blading of the Lebotloane gravel roads

Maquassi Hills – the sewage problem which has been there for months was resolved during the week of Setsokotsane

The Department of Local Government and Human Settlement arranged for the building of a house and its handing over

to a family in Bona-Bona village

Dr KK district – installed the CCTV cameras as well as put the Call Centre at both Maquassi Hills and Matlosana Local Municipality offices

32

Department of Social Development and Agriculture handed the food parcels and vegetable gardens to most deprived ECDs in both Maquassi Hills and Matlosana Local Municipalities as part of sector engagement

FEED provided electronic and electrical equipment amount to R600 000 to the identified cooperatives in Matlosana

Matlosana: MEC handed over completed 111 of the 143 houses to beneficiaries at Nkagisang

The Programme also identified the community of Toevlug in Ventersdorp as a key success since 200 houses were electrified

Setsokotsane Newsletter

120 000 copies of Setsokotsane newsletter paper were distributed across the Province during the 4th quarter, i.e. in

Office of the Premier’s district offices, provincial departments, four district municipalities and local municipalities, tribal

offices, civil society, police stations, libraries, clinics and schools.

Setsokotsane Operation Centre

The Setsokotsane Operation Centre was established towards the end of December 2015. The Operation Centre comprises of

officials from various departments assigned to respond speedily to the service delivery needs/complaints. It is functional

with satisfactory participation from departments and other stakeholders such as SASSA and Home Affairs departments. Nine

(09) meetings convened shows consistent participation of the following Departments:

o Health

o Local Government and Human Settlement

o Culture, Arts and Traditional Affairs

o Rural, Environment and Agricultural Development

33

o Public Works and Roads

o Finance, Economy and Enterprise Development

o Social Development

o SASSA

o Home Affairs

o Office of the Premier

Saamtrek-Saamwerk In promoting the spirit of Saamtrek-Saamwerk, all provincial departments, municipalities and business sector participated during the setsokotsane programmes. This was to provide integrated services to the communities, especially in the VTSD area.

Repositioning of the Office of the Premier to 80% Performance Monitoring and Evaluation

The Office of the Premier has developed a service delivery monitoring system through which we are able to track the

implementation of SOPA pronouncements, including decisions taken by the Executing Authority from time to time. We have

thus been able to hold all Departments and state owned entities accountable on service delivery commitments adopted by

the 5th Administration.

The Office is exporting this success across Government and municipalities through a Shared Services Model to facilitate the

improvement of service delivery. We have already introduced an infrastructure shared services model with all municipalities

through the Department of Finance, Economy and Enterprise Development (FEED).

34

Assessment of Strategic Plans, Annual Performance Plans and Integrated Development Plans (IDPs)

The Office managed to assess the 1st draft, 2nd draft and Final APP 2016/17 in line with Treasury Framework and

alignment to the 5th Administration Priorities. The Office had one on one feedback sessions with departments on each of

their draft submissions of 2016/17 APP. During the year under review, the Office has started the process of reviewing the

Provincial Spatial Development Framework (PSDF) which will be concluded in 2016/17 financial year.

The Office managed to assess all the Municipal IDP’s in line with the Provincial Priorities. The Planning Commission in the

Office of the Premier has started with the development of VTSD Plans in the 4th quarter of 2015/16.

Management of Misconduct cases

The Misconduct Unit managed to investigate all allegations of misconduct which were reported and appropriate disciplinary

action was implemented where applicable. The unit managed to conduct advocacy and training on Public Service Prescripts

for 427 officials in the Department of Public Works and Roads.

The Unit engaged Office of the Premier KwaZulu-Natal, Integrity Management Unit, to share challenges and consider

establishing an Inter-Provincial Integrity Management Forum.

Employee Health and Wellness

The Provincial target of 80% of departments adhering to the DPSA's deadlines of 31 September 2015 and of 31 March 2016

was exceeded by 12 % and 20 % respectively. 11 of the 12 departments submitted their System Monitoring Tool Reports on

time (31 September 2016) while all the 12 departments submitted their Department-specific Plans on time (31 March 2016)

to the DPSA.

35

GITO

The Province was at Level 1 during the previous financial year (2014-15). The moderated MPAT report has shown that two

departments are compliant (Level 3) and three departments are doing things smart (Level 4). The Average is Level 2 which

is an improvement on the previous year. The SmartGov Solution suite has been piloted.

The ICT Continuity component of the Disaster Recovery Plan was successfully tested.

Complaints and Compliment Management System

The Office of the Premier has introduced a toll-free telephone line service for communities wishing to lodge complaints and

compliments about the service delivery performance of the Province. The Office established the Setsokotsane Operations

Centre to improve the efficacy in the management of the implementation of the complaints management system.

Skills Development

The Ikatisong School of Governance has been established to facilitate skills development as part of the implementation of

the National Development Plan to build an effective, efficient and productive public service. A total number of 229

unemployed youth were awarded bursaries and 109 Grants were awarded.

The Provincial Government working together with the National Department of Higher Education and Training has

successfully launched the new Skills Development Centre in Dr Kenneth Kaunda District.

Youth Entrepreneurship Services

The draft bill for the dis-establishment of the Youth Development Trust and the establishment of the Youth Entrepreneurship

Services has been developed and submitted to the North West Provincial Legislature. Youth camps began in March 2016 in

Tlokwe, at 4 Artillery Regiment in partnership with the South African National Defence Force.

36

3.2. Service Delivery Improvement Plan

The department has completed a service delivery improvement plan. The tables below highlight the service delivery plan

and the achievements to date.

Main

services

Actual customers Potential

customers

Current Standard Standard of service Actual

achievement

against standards

Improve

provincial

Management

Performance

Assessment

Tool process

Office of the Premier

Department of

Education and Sport

Development

Department of Local

Government and

Human Settlements

Department of Social

Development

Department of Tourism

Department of Health

Department of Culture

Arts and Traditional

Affairs

Department of Rural,

Environment, And

Agriculture

Development

Department of Finance

Economy and

Communities,

NGO’s; Business

Provincial Average

MPAT Level 2

Average Provincial

score of 3 was set

for the

departments which

is full compliance at

level 3

There is a slight

improvement in

relation to MPAT

implementation by

Provincial

departments

37

Enterprise

Development

Department of Public

Works and Roads

Department of

Community Safety and

Transport Management

Consultation arrangements with customers

Access Strategy Actual achievements

Bua le Puso The Office coordinated and mobilised government service delivery blitz (jamborees) during the Setsokotsane outreach Programme and captured issues raised by communities.

Responded to 433 SMS.

Presidential Hotline The Province’ current performance is at 81.55%.

Provincial Call Centre The Provincial Call Centre has received a total number of 2415 complaints, 840 complaints were closed, and 1575 calls are pending. The call centre team is capturing these issues and referred them to various government entities.

Setsokotsane

The Setsokotsane outreach programme was rolled out in all four (4) districts. Complaints received during the Setsokotsane Programme were referred to relevant stakeholders/ institutions for resolution. The top five issues raised are:

(1) Housing (RDPs)

38

(2) Health

(3) Water and Sanitation

(4) Roads

(5) Employment

The Directorate established the Setsokotsane Operations Centre to improve the efficacy in the management of the implementation of the complaints management system.

The Setsokotsane Operation Centre was established towards the end of December 2015. The Operation Centre comprises of officials from various departments assigned to respond speedily to the service delivery needs/complaints.

It is functional with satisfactory participation from departments and other stakeholders such as SASSA and Home Affairs department. Nine (09) meetings held with the Departments’ shows consistent participation of the following:

Health

Local Government and Human Settlement

Culture, Arts and Traditional Affairs

Rural, environment and agricultural development

Public Works and Roads

Finance, Economy and enterprise development

Social Development

SASSA

Home Affairs and

Office of the Premier

Thusong Centres There are thirteen (13) Thusong Services Centres that are operational

Walk-ins 113 walk-in clients were assisted during the period under review

Service information tool

39

Types of information tool Actual achievements

Intranet Government programmes communicated timeously to employees

e-mail Government programmes communicated timeously to employees

Complaints mechanism

Complaints Mechanism Actual achievements

Presidential Hotline The Province’ current performance is at 81.55%.

Provincial Call Centre The Provincial Call Centre has received a total number of 2415 complaints, 840 complaints were closed, and 1575 calls are pending. The call centre team is capturing these issues and referred them to various government entities.

Bua le Puso The Office coordinated and mobilised government service

delivery blitz (jamborees) during the Setsokotsane outreach

Programme and captured issues raised by communities.

Responded to 433 SMS.

Outreach Programme (Setsokotsane) The Setsokotsane outreach programme was rolled out in all

four (4) districts. Complaints received during the Setsokotsane

Programme were referred to relevant stakeholders/ institutions

for resolution.

The Directorate established the Operations Centre to improve

the efficacy in the management of the implementation of the

complaints management system.

Thusong Centres There are thirteen (13) Thusong Services Centres that are

40

operational

Walk-ins 113 walk-in clients were assisted during the period under review.

3.3. Organisational environment

The reconfiguration of Departments as proclaimed by the Premier resulted in the review of the Department’s organisational

structure. The aim was to align the Office’s organisational structure to the Premier’s pronouncements and mandate of the

5th Administration. The reconfiguration of Departments led to the transfer of the Population and Policy Unit from Office of

the Premier to the Department of Social Development.

The following critical posts were filled during the year under review:

DDG: Performance Planning, Monitoring, Evaluation and Intervention

DDG: Administration

Chief Director: Performance Monitoring, Evaluation and Intervention

Director: Finance

GITO

Director: Supply Chain Management

41

3.4 Key policy developments and legislative changes

There were two major provincial policy changes during the 2015/16 financial year that directly affected the Office of the

Premier’s operations. The 5th Administration resolved that the North West Provincial Council on Aids (NWPCA) be dis-

established and the Youth Entrepreneurship Services (YES) be established.

The process of dis-establishing the NWPCA has not been finalised and the target is to conclude it during the 2016/17

financial year. The dis-establishment of the NWPCA resulted in Office of the Premier absorbing some of the staff members

from the institution and thus resulting in an increased Compensation of Employees budget.

4. STRATEGIC OUTCOME ORIENTED GOALS

STRATEGIC OUTCOME-ORIENTATED GOAL 1: Efficient and effective administrative services

State Law Advisory Services

In contributing towards the Agriculture, Culture and Tourism (ACT) concrete, the Office has initiated, developed, and

certified the Parks Board Bill, 2015 and the Tourism Board Bill; which were passed by the Legislature, signed into law by

the Premier and came into operation as laws on 15 May 2015 thereby giving the legal basis towards the establishment of

the NW Tourism Board, which will be primarily responsible for the promotion of Tourism in the Province.

As part of the contribution towards the Agriculture, Culture and Tourism (ACT) concrete, the North West Rural, and

Agricultural Development Board Bill, 2015 as well as the North West Arts and Culture Agency Bill, 2015 were developed by

the Office. Once promulgated these two Bills will establish two new entities namely the North West Rural, and Agricultural

Development Board and the North West Arts and Culture Agency

In contributing towards the saamtrek-saamwerk concrete the Office provided technical assistance towards the development

of the following: –

42

The North West Biodiversity Bill, 2015 (Date certified – 02 September 2015);

The North West Youth Entrepreneurship Services Fund Bill, 2015 (Date certified – 06 August 2015); and

The North West Spatial Planning and Land Use Management Bill, 2015 (Date certified – 26 August 2015).

In line with the provisions of section 125 of the Constitution the Office in rendering technical support to the Province, has

during the 2015/16 financial year been involved with the development of the following Bills: –

Review of the 2015/16 Annual Performance Plan

The 2015/16 Annual Performance Plan was reviewed in the 3rd quarter in order to incorporate the 5th Administration

pronouncements and priorities.

Departmental MPAT Performance

In ensuring effective and efficient administrative support services, the Office has improved on the implementation of MPAT,

especially in the two KPAs; namely, Strategic Management and Human Resource Management. The Office has achieved

MPAT level 4 on the Employee Health and Wellness, as well as, Functionality of Management Structures MPAT standards for

the two (2) consecutive years. The Office will strengthen the monitoring of MPAT to improve performance.

No. Short title Responsibility Status

1. NW Development Corporation Act

Repeal Bill, 2015;

FEED Progress: The Office has certified the Bill during the 2014/2015 Financial Year

2. NW Provincial Archives Bill, 2015 CATA Progress: The Office has finalized and certified the Bill.

43

STRATEGIC OUTCOME-ORIENTATED GOAL 2:

Transformed institutional development that is efficient, effective and responsive.

OUTPUT: HUMAN RESOURCE MANAGEMENT & DEVELOPMENT

Sub-output: HR Planning, Skills Development and Cadre Development

Human Resource Planning (HRP)

The performance of the Province with regard to the development and implementation of HR Plans has improved. During the

period under review, all 12 provincial departments had approved Human Resource Plans and Annual HR Plan Plans and

Implementation reports are assessed in terms of compliance to the template and quality information submitted.

Employment Equity Planning

The province has also shown a lot of improvement in terms of 50% appointment of women at SMS level and 2%

employment of people with disabilities. The Department of Economy and Enterprise Development and the Department of

Tourism have exceeded the set target of 50%. Three departments are above 40%, six is above 30% and only one (1) is at

29%. Representation of People with disabilities stands as follows: Three departments have exceeded the 2% target, 7 is

above 1% and only 2 departments are below 1%. The Office of the Premier will continue to provide constant support,

guidance, monitoring and evaluation to provincial departments to meet and exceed the set targets. In addition to the

above, out of 12 departments, nine (9) Departments i.e. 75% have facilitated the meeting with Heads of Department and

their female senior managers.

44

OUTPUT: SERVICE DELIVERY QUALITY AND ACCESS

Sub-Output: Service User Satisfaction

The Office partnered with the National School of Government and National Departments on KHAEDU Field Assignment at

Moses Kotane Hospital, to assess service delivery challenges at coalface and compiled a report with recommendations for

improvement.

Services with challenges were identified within all provincial departments to inform the development of Service Delivery

Improvement Plans (SDIP’s). Service Delivery Improvement Plans (SDIPs) were developed outlining processes of

improvement for the particular services. Significant improvement in the rate of submission was registered and all

departments submitted their SDIP’s. All provincial departments were supported in the development of Service Charters and

Standards after the reconfiguration process.

Sub-output: Access to Government Services

Service Delivery Outreach programmes were conducted on a weekly basis in all four districts as part of Setsokotsane (Dr

Ruth Segomotsi Mompati District Municipality, Dr Kenneth Kaunda District Municipality, Ngaka Modiri Molema District and

Bojanala District Municipality. Through these Outreach programmes government services were brought closer to the citizens

for access, consultation, sharing of information and redress. Key service delivery departments and entities such as Home

Affairs, Social Development, Health, SAPS, Labour and SASSA provided services to the citizens.

Through the Service Delivery Outreach / Setsokotsane, a deserving granny headed household without proper residence was

identified in the Kagisano Molopo Local Municipality, Bona-Bona Village. The Office of the Premier in partnership with private

sector (i.e. contractor), constructed a five-roomed house for the family and the house has been completed and is being

occupied by the family.

45

Sub-outcome 2: A Public Service that is a career of choice

The Province managed to achieved a 100% submission rate of the 2015/16 Workplace Skills Plans (WSPs) to the PSETA and

a 100% submission rate of the 2015/16 Annual HRD Implementation Plans to the DPSA in compliance with the HRD

legislation. A total number of 1, 111 unemployed youth benefited from the skills development programmes that were

implemented by provincial department. The distribution was as follows: Learnerships 341; Internships 600 and Bursaries

170. Facilitated training for a total number of 288 interns on the BB2E programme. The programme is aimed at improving

the employability of the interns and a response to Outcome 12 of the Government Programme of Action. The Office

coordinated the recruitment and the awarding of 229 bursaries to unemployed youth and 109 Grants to needy financial

assistance applicants for the 2016/17 financial year.

Mandatory Skills Programmes coordinated/facilitated

Coordinated and facilitated the Compulsory Induction Programme (CIP) and a total number of 1, 373 new employees were

trained which is 102.8% of the annual target of 1335. The Office coordinated four sessions, one per district, for the Batho

Pele Change Management Training-of-Trainers (ToT) Programme in response to the EXCO directive to train frontline staff in

customer care. A total number of 100 officials were trained, 25 officials per district. The trained officials will train frontline

personnel in their respective departments in 2016/17.

Partnerships with SETAs

The Office of the Premier has signed Memoranda of Agreement with the Construction Sector Education and Training

Authority (CETA) and the Manufacturing, Engineering and Related Services Education and Training Authority (merSETA).

CETA

A total number of 48 students received bursaries to study in construction related fields of study at a total cost of R60,

000.00 per student.

merSETA

46

The Province has been awarded discretionary funds amounting to R26 million to implement skills development programmes

in the manufacturing, engineering and related services for a period of three years i.e. 2015/16 – 2017/18. The merSETA has

approved the Implementation Plan where a total number of 258 beneficiaries will be trained in Apprenticeship (60),

learnerships (108) and Internships programmes (90).

Percentage of Departments using their training budget in keeping with policy

The Province was able to set aside R 227,5 million (1% of personnel salary bill) for skills development programmes,

bursaries, internships and learnership programmes for both employees and unemployed youth. The total training

expenditure for 2015/16 was R 217 million (95.375% of the annual training budget of R227, 5 million).

Review and improve the Senior Management Services Performance Management and Development System

A Provincial report on the signing of Performance Agreements (PAs) by Heads of Department and other SMS members was compiled. The provincial compliance rate for the financial year 2015/16 was at 76.2%. An improvement of 6,6% compared the 2014/15 compliance rate of 69.6%. Grievance and Misconduct cases task team

In the effort to improve the interventionist role of the Office, a Task Team to process the long outstanding 75 grievances

and 67 misconduct cases in ten provincial departments was established. As a result 60 grievances and 58 misconduct cases

were finalized. The remaining 15 grievances and 9 misconduct cases are anticipated to be finalized during the first quarter of

2016/17.

Recognition of improved qualifications

The province is the first amongst the nine provinces to conclude the defined qualifications and implement the once off cash

bonus to qualifying employees in line with provisions of the agreement.

47

Disestablishment of the NW Provincial Council on AIDS (NWPCA)

Successfully coordinated and facilitated the seamless transfer of 59 officials affected by the disestablishment to provincial

departments.

Provincial Wage Bill Task Team

The Office conducted an intensive and extensive investigation of Cost of Employee Compensation (commonly known as the

Wage Bill). This project assisted the province to establish the extent of the Compensation of Employees budget.

STRATEGIC OUTCOME-ORIENTED GOAL 3: Quality service delivery and access through knowledge management that

facilitates evidence based decisions

Programme and Project Management

Departmental and municipal programme and project infrastructure plans were assessed and analysed to gauge the

alignment to the provincial priorities and the needs of the communities. Special attention was given to analyse the

contribution of the plans to ACT (Agriculture, Culture and Tourism).

The Office conducted an analysis of the infrastructure projects in the APP as to their alignment to the overall APP and the

provincial priorities as well as VTSD.

User Asset and Implementation Management Plans for MRRRP were developed for 2015/16 and 2016/17.

In order to enhance integrated planning, the Office presented the outcome of the 2015/16 IDP assessments to the Municipal

Infrastructure Forum (MIF) in Dr Ruth Segomotsi Mompati and Ngaka Modiri Molema District Municipalities.

48

The Office developed a planning guide with elements to be included in a VTSD Plan for presentation to EXTECH. The Office

coordinated the development of VTSD Plans in various municipalities. The project prioritisation framework to include inputs

from stakeholders and the provincial priorities of the 5th Administration (5 Concretes) was updated.

Project Information Warehouse and Monitoring of MRRRP

Project information was updated for departmental and municipal projects for 2015/16 and further categorised in context of

the provincial priorities such as ACT, MRRRP, Ward based planning and VTSD as well as in support of programme and

project plan assessment and analysis. Furthermore, progress reporting for SIP projects was facilitated and presented to

Premier’s Infrastructure Co-ordinating Council (PICOCO). MRRRP projects were monitored, interventions facilitated and

progress reports provided.

In context of its oversight role for the MRRRP, the Office:

monitored the up-grade and readiness of the premises in preparation for the Mahika Mahikeng cultural event;

facilitated presentation of design concepts of the following at EXCO: 1. Conversion of Lowe House to MECs Offices,

Stadium and Sports Precinct, Extension of Convention Centre and Government Precinct

intervened between NMM District and Eskom on Water Projects that are completed and need to be connected on

Eskom Grid. Close out meeting to be held in Jan 2016

prepared MRRRP progress reporting presentation for DG to present at EXCO

Programme and Project Management Capacity Building

To refine the capacity building framework and develop a strategy, capacity building assessment for municipalities and

departments was conducted.

A programme and project management capacity building strategy was developed.

ACT program/project analysis presented at the APP provincial planning workshop.

49

IDP assessment outcomes were presented to Dr RSM and NMMDM to promote integrated, needs' based and VTSD

aligned planning. Presentations were also prepared for Bojanala and Dr KK.

A Setsokotsane diagnostic report and presentations were prepared in order to provide capacity to the Setsokotsane

pre-planning process. Service delivery information, diagrammatic presentations and challenges were compiled for

various municipalities.

Challenges

The main challenge remains with the timeous availability of project information and planning documents from

departments and municipalities for analysis and planning processes.

The other challenge lies in the short term planning and implementation orientation of departments and municipalities.

Remedial Action

Follow up and engagements with stakeholders. The new provincial leadership places much emphasis on programme

and project information which should result in successive improvements of the availability and quality of information.

Systematic coordination between all stakeholders on an ongoing basis can contribute substantially to improved

forward planning, integration and resource allocation. The Premier’s Infrastructure Coordinating Committee was

established to support that process.

50

5. PERFORMANCE INFORMATION BY PROGRAMME

5.1 Programme 1: Administration

(a) Programme Purpose

This programme supports the Premier and Director General with strategic leadership and co-operative governance by performing internal strategic, administrative as well as financial management services on behalf of the Office of the Premier.

Sub-Programme and Strategic Objective

The programme consists of the following sub-programmes:

Premier Support – To co-ordinate and provide the administrative and political support services to the Premier.

EXCO Support – To co-ordinate and provide the secretariat support services to the Director General.

DG Support – To co-ordinate and provide the administrative support services to the Director General.

Financial Management – To provide effective and efficient financial management services in the Office.

State Law Advisory Services– To co-ordinate and monitor legal services in the province.

Corporate Management– To provide effective and efficient corporate management services in the Office.

Strategic objectives, performance indicators planned targets and

actual achievements

51

Strategic objectives

Programme Name: Administration

Strategic Objective: Efficient and effective administrative services.

Strategic

Objective

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016

Comment on

deviations

To co-ordinate and provide the administrative and political support services to the Premier.

7 4 4 0

To co-ordinate and

provide the

secretariat support

services to the

Director General.

N/A 4 4 0

To co-ordinate and

provide the

administrative

support services to

the Director General.

N/A 8 8 0

To provide effective and efficient financial management

N/A 7 5 2

PI 1 (Supply Chain

Management MPAT

indicator) was not

52



Strategic

Objective

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016

Comment on

deviations

services in the Office.

achieved due to lack of

sufficient evidence to

support the set target.

Remedial Action: M&E

will strengthen the

monitoring of MPAT

improvement plan to

ensure that the set

MPAT target is achieved

in the next MPAT cycle.

PI 3 (30 days payment

indicator) was not

achieved due to

Supplier changing banks

accounts and thus

delaying in processing

of invoices. Remedial

Action: The checklist to

verify the accounts of

suppliers doing business

53



Strategic

Objective

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016

Comment on

deviations

with the department to

be established in the

2016-2017 financial

year.

To co-ordinate and monitor legal services in the province.

N/A 12 12 0

To provide effective and efficient corporate management services in the Office.

N/A MPAT Level

3 MPAT level 2.5 0.5

The under-achievement

is a result of the Office

not uploading the

necessary POE for the

achievement of MPAT

Level 3.

Remedial Action: The

Office will ensure that

all necessary POE to be

uploaded in the next

MPAT cycle to achieve

54



Strategic

Objective

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016

Comment on

deviations

the set target.

Performance indicators

Sub-programme: Premier Support

Strategic Objective: To co-ordinate and provide administrative and political support services to the Premier.

Performance Indicator Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

Report on the provision of

administrative and political

support services to the

Premier.

N/A 4 4 0

55

Sub-sub programme: EXCO Support

Strategic Objective: To co-ordinate and provide the secretariat support services to the Director General.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

Monitoring report on the

Implementation of the

resolutions of the Cluster

Committees and EXCO. N/A 4 4 0

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Sub-sub programme: DG Support

Strategic Objective: To co-ordinate and provide the administrative support services to the Director General.


Achievement

2014/2015

Planned

Target

2015/201

6

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

Report on the provision of

administrative and

secretariat support to the

Director General.

N/A 4 4 0

Monitoring reports on the

implementation of MRRR

Projects from e-PMO 2 4 4 0

Sub-programme: Financial Management

Strategic Objective: To provide effective and efficient financial management services in the Office.

Performance

Indicator

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

Supply Chain management MPAT level obtained. N/A

MPAT Level

4 MPAT Level 2 2

Lack of sufficient

evidence to support the

set target.

Remedial Action: M&E

will strengthen the

57



Performance

Indicator

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

monitoring of MPAT

improvement plan to

ensure that the set

MPAT target is achieved

in the next MPAT cycle.

Programme manager will

take responsibility of the

targets not achieved

within his programme.

Percentage of the departmental budget spend.

N/A 100% 101% 1%

Mainly because of the

lump sum payment of R

72 million made in the

2nd Quarter to

management agent of

MRRRP, as well as, the

advance of R 19 million

on 3rd Quarter

drawdown to North West

Parks and Tourism

Board due to financial

58



Performance

Indicator

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

pressure.

Percentages of invoices paid within 30 days.

N/A 100% 94.25% 5.75%

Supplier changing banks

accounts thus delaying

in processing of invoices.


checklist to verify the

accounts of suppliers

doing business with the

department to be

established in the 2016-

2017 financial year.

Report on organisational risks mitigated.

N/A 4 4 0

59

Sub-programme: State Law Advisory Services

Strategic Objective: To co-ordinate and monitor legal services in the province.

Performance

Indicator

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016

Comment on

deviations

Report on the number of Legislative Reviews and by-laws approved.

4 4 4 0

Report on the number of litigation cases concluded.

N/A 4 4 0

Report on the number of legal opinions, MOU’s and contracts drafted.

N/A 4 4 0

60

Sub-programme: Corporate Management

Strategic Objective:To provide effective and efficient corporate management services in the department.

Performance

Indicator

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016

Comment on

deviations

Human Resource Management MPAT level obtained.

N/A MPAT Level

3 MPAT Level 2.5 0.5


is a result of the Office

not uploading the


achievement of MPAT

Level 3.


Office will ensure that

all necessary POE to be


MPAT cycle to achieve

the set target.

Programme manager

will take responsibility

of the targets not

achieved within his

programme.

61

Sub-programme: Corporate Management

Strategic Objective:To provide effective and efficient corporate management services in the department.

Performance

Indicator

Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016

Comment on

deviations

Strategic Management MPAT level obtained

N/A MPAT Level

3 MPAT Level 2.5 0.5

The under-

achievement is a result

of the Office not

uploading the


achievement of MPAT

Level 3.

Remedial Action:

The Office will ensure

that all necessary POE

to be uploaded in the

next MPAT cycle to

achieve the set target.

Programme manager

will take responsibility

of the targets not

achieved within the

programme.

62

Strategy to overcome areas of under performance

The strategy to overcome areas of under-performance is reflected per the under -achieved indicators in the comments for

deviations.

Changes to planned targets

There were no changes to the targets.

Linking performance with budgets

All functions performed were in line with the approved budget for the programme

Sub-programme expenditure

Programme 1: ADMINISTRATION 1 2 3 4 5 6 7 8 9

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure

Variance Expenditure as

% of final

appropriation

Final

Appropriation

Actual

Expenditure

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

1. PREMIER SUPPORT 203 926 808 3 317 208 051 189 929 18 122 91.3% 195 297 144 597

2. EXECUTIVE COUNCIL SUPPORT 5 372 263 - 5 635 6 227 (592) 110.5% 5 300 4 803

3. DIRECTOR-GENERAL SUPPORT 29 626 470 - 30 096 35 720 (5 624) 118.7% 25 331 23 861

4. FINANCIAL MANAGEMENT 23 454 (1 541) - 21 913 20 491 1 422 93.5% 21 416 18 069

262 378 - 3 317 265 695 252 367 13 328 95.0% 247 344 191 330

Sub programme

63

Economic classification

Current payments 89 780 320 13 317 103 417 177 859 (74 442) 172.0% 83 433 80 020

Compensation of employees 57 060 (437) 700 57 323 57 048 275 99.5% 49 247 45 460

Salaries and wages 52 730 (437) 700 52 993 50 992 2 001 96.2% 46 142 40 479

Social contributions 4 330 - - 4 330 6 056 (1 726) 139.9% 3 105 4 981

Goods and services 32 720 733 12 617 46 070 117 710 (71 640) 255.5% 34 186 34 560

Administrative fees 80 - - 80 37 43 46.3% 75 75

Advertising 120 - - 120 44 76 36.7% 397 214

Minor assets 240 - - 240 470 (230) 195.8% 135 196

Audit costs: External 4 195 - - 4 195 4 174 21 99.5% 4 120 4 839

Bursaries: Employees - - - - - - - 42 11

Catering: Departmental activities 633 - - 633 628 5 99.2% 935 585

Communication (G&S) 860 - - 860 310 550 36.0% 1 100 1 102

Computer services 106 - - 106 608 (502) 573.6% 200 1 082

Consultants: Business and advisory services 621 - - 621 5 444 (4 823) 876.7% 574 397

Contractors 11 933 833 12 617 25 383 91 857 (66 474) 361.9% 17 380 15 124

Agency and support / outsourced services - - - - - - - - 51

Fleet services (including government motor transport) 4 865 - - 4 865 3 961 904 81.4% 1 336 1 293

Inventory: Food and food supplies - - - - - - - 155 13

Consumable supplies 216 - - 216 185 31 85.6% 280 357

Consumable: Stationery, printing and office supplies 1 491 (100) - 1 391 1 075 316 77.3% 1 294 882

Operating leases 445 - - 445 133 312 29.9% 679 663

Property payments 20 - - 20 - 20 - 76 -

Transport provided: Departmental activity - - - - 200 (200) - - -

Travel and subsistence 5 836 - - 5 836 7 913 (2 077) 135.6% 4 383 5 897

Training and development 439 - - 439 202 237 46.0% 345 203

Operating payments 40 - - 40 176 (136) 440.0% 40 342

Venues and facilities 580 - - 580 293 287 50.5% 640 1 234

Interest and rent on land - 24 - 24 3 101 (3 077) 12920.8% - -

Interest (Incl. interest on unitary payments (PPP)) - 24 - 24 3 101 (3 077) 12920.8% - -

Transfers and subsidies 29 428 50 - 29 478 29 209 269 99.1% 73 310 72 963

Departmental agencies and accounts 17 658 - - 17 658 17 658 - 100.0% 20 520 20 520

Departmental agencies (non-business entities) 17 658 - - 17 658 17 658 - 100.0% 20 520 20 520

Public corporations and private enterprises 10 000 - - 10 000 10 000 - 100.0% 50 000 50 000

Public corporations 10 000 - - 10 000 10 000 - 100.0% 50 000 50 000

Other transfers to public corporations 10 000 - - 10 000 10 000 - 100.0% 50 000 50 000

Households 1 770 50 - 1 820 1 551 269 85.2% 2 790 2 443

Social benefits 1 770 50 - 1 820 421 1 399 23.1% 670 697

Other transfers to households - - - - 1 130 (1 130) - 2 120 1 746

Payments for capital assets 143 170 (370) (10 000) 132 800 45 299 87 501 34.1% 90 601 38 347

Buildings and other fixed structures 142 000 - (10 000) 132 000 43 078 88 922 32.6% 90 258 38 069

Other fixed structures 142 000 - (10 000) 132 000 43 078 88 922 32.6% 90 258 38 069

Machinery and equipment 1 170 (370) - 800 2 221 (1 421) 277.6% 343 278

Transport equipment - - - - 504 (504) - - -

Other machinery and equipment 1 170 (370) - 800 1 717 (917) 214.6% 343 278

262 378 - 3 317 265 695 252 367 13 328 95.0% 247 344 191 330

64

5.2. Programme 2: Institutional Development Support and Integrity Management

(a) Description of the Programme

The programme is primarily mandated to provide strategic leadership and support to all provincial departments through the

coordination of the implementation of policy frameworks, strategies and programmes related to Human Resource

Management and Development, Government Communication, Information Communication Technologies. The programme is

also mandated to promote integrity management in the provincial administration.


Youth, Moral regeneration and Social Cohesion: To promote positive values, social cohesion and institutional youth development Human Resource Management and Development: To coordinate, monitor and evaluate the development and implementation of HR management policies and systems to improve service delivery.

Government Information Technology Office: To coordinate and monitor the implementation of ICT frameworks.

Communications: To provide consistent, streamlined and integrated communication services in the province.

Integrity Management: To coordinate and monitor integrity and ethics management in the province.

65

Strategic objectives, performance indicators planned targets and actual achievements


Programme Name: institutional development support and integrity management

Strategic Objective: Transformed institutional development that is efficient, effective and responsive.

Strategic Objective Actual

Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

To promote positive values, social cohesion and institutionalise youth development.

N/A 12 12 0

To coordinate,

monitor and evaluate

the development and

implementation of HR

management policies

and systems to

improve service

delivery

N/A 31 29 2

Programmes such as

learnerships and bursaries

for employees’ intake was

very low compared to the

annual target in provincial

departments and this

resulted in departments

achieving lower targets

compared to those

planned for in the plans

because the unit is

responsible for provincial

66




Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

monitoring of

implementation of Inter-

Departmental Skills

Development and

Training Plan by

departments.


Office will strengthen the

monitoring of the

implementation of the

WSP in the province.



targets not achieved.

67




Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

To coordinate and monitor the implementation of ICT frameworks.

N/A 25 20 5

PI 1 was not achieved in

the 2nd quarter due to

Office aging facilities. The

air conditioners and UPS

were not working

properly for four (4) days

in this quarter. The

servers had to be

switched off to ensure

data protection.


of PI No. 6 (ICT MPAT) is

a result of the Office not

uploading the necessary

POE for the achievement

of MPAT Level 3.




68




Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

within her programme.


Office will ensure that all

necessary POE to be


MPAT cycle to achieve the

set target. Programme

manager will take

responsibility of the


within her programme

69




Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

To provide consistent, streamlined and integrated communication services in the province. N/A 9 8 1

The Office could not

finalise the development

of the Provincial

Corporate Communication

Strategy (currently in a

draft stage) as planned

and is in consultation

stage with relevant

stakeholders (Provincial

Communicators’ Forum

/District Communicators’

Forum) for inputs.

To coordinate and

monitor integrity and

ethics management

in the province.

N/A 16 16 0

70


Sub-sub programme: Youth, Moral regeneration and Social Cohesion.

Strategic Objective: To promote positive values, social cohesion and institutional youth development


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual Achievement

for 2015/2016

Comment on

deviations

Report on number of

programmes implemented to

promote positive values,

social cohesion and youth

Development.

N/A 4 4 0

Report on number of Youth

Owned Enterprises

established and supported.

N/A 4 4 0

Report on number of

programmes targeting HIV&

AIDS, STI and TB

coordinated in the province

N/A 4 4 0

71

Sub Programme : Human Resource Management and Development

Strategic Objective: To coordinate, monitor and evaluate the development and implementation of HR management policies

and systems to improve service delivery.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016

Comment on deviations


number of months taken to

fill vacant funded posts.

N/A 4 4 0


number of days taken to

finalise the PILIR

applications.

N/A 4 4 0

Monitoring report on the implementation of Organisational Development policies and directives.

N/A 6 6 0

Report on the number of

Service Delivery

Improvement programmes

coordinated.

N/A 4 4 0

Annual Inter-departmental

Skills Development and N/A 1 1 0

72





Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


Training Plan developed.

Percentage implementation of

the Inter-departmental Skills

Development and Training Plan

in the provincial administration

N/A

70% 37.02% 32.98%

Programmes such as

learnerships and bursaries

for employees’ intake was

very low compared to the

annual target in provincial

departments and this

resulted in departments

achieving lower targets

compared to those planned

for in the plans because the

unit is responsible for

provincial monitoring of

implementation of Inter-

Departmental Skills

Development and Training

Plan by departments.

Remedial Action: The Office

will strengthen the monitoring

of the implementation of the

73





Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


WSP in the province.



targets not achieved within

the programme


utilisation of departmental EHW

Interventions

N/A

3 3 0


implementation of labour

relations legislation, practices

and collective bargaining

processes.

N/A

4 4 0

Monitoring report on

management of grievances.

N/A 4 3 1

Departments delayed in

submitting their reports and

the matter will be finalised in

the new financial year.

Remedial Action: The Office

will strengthen its monitoring

74





Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


role. Programme manager

will take responsibility of the


her programme

75

Sub-programme: Government Information Technology Office

Strategic Objective: To coordinate and monitor the implementation of ICT frameworks.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


Average percentage network

uptime maintained.

N/A 95% 94% 0

Due to aging facilities, the air

conditioners and UPS were

not working properly for four

days in the 3rd quarter. The

servers had to be switched

off to ensure data protection.

Remedial Action: New air

conditioners have been

procured to ensure that UPS

function properly and there

will be no need to switch off

the servers in the future.

Number of sub-regions across

the province migrated to

broadband network

infrastructure. N/A 20 16 4

The Office could not migrate

the targeted sub regions to

broadband in the 2nd quarter

due to non-availability of the

budget.


Office has improved on its

budget process by requesting

76




Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


managers to budget for the

activities within their

units/components for the

2016/17 financial year. This

will alleviate the problems of

having projects not budgeted

for.

Number of e-enablement

services implemented

N/A 1 1 0

Average turnaround time in

days for resolving Helpdesk

calls maintained.

N/A

5 Days

11 Days 6 Days

The under achievement in

the 1st quarter is as a result

of delay of filling of posts

which were targeted to be

filled at the beginning of the

quarter. Interviews were held

in February but officials

assumed duty in August

(Interview report attached).

The under performance in

the 2nd quarter is as a result

77




Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


of usage of old and

inaccurate data in the system

to generate reports. Engaged

the system administrator for

the clean-up of the database.

Exercise concluded at the

end of the 2nd quarter.

Level of ICT Governance

capability/maturity achieved.

N/A 1 1 0

Corporate Governance of ICT

MPAT level obtained.

N/A MPAT Level 2 MPAT Level 1 0

The under-achievement is a

result of the Office not

uploading the necessary POE

for the achievement of MPAT

Level 3.


Office will ensure that all

necessary POE to be

uploaded in the next MPAT

cycle to achieve the set

target. Programme manager

78




Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


will take responsibility of the


her programme

Sub-programme: Communication

Strategic Objective: To provide consistent, streamlined and integrated communication services in the province.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


Provincial Corporate

communication Strategy

developed.

1 0 0

Provincial Corporate

Communication Strategy

has been developed and

still in consultation stage

with relevant stakeholders

(Provincial Communicators’

Forum /District

Communicators’ Forum)

79

for inputs.


strategic and integrated

communication

programmes implemented.

N/A 4 4 0


implementation of the

media plan.

N/A 4 4 0

80

Sub-programme:Integrity Management

Strategic Objective: To coordinate and monitor integrity and ethics management in the province.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


Report on number forensic

cases concluded. N/A 4 4 0

Report on number of Anti-

Corruption Programmes

implemented. N/A 4 4 0

Report on the

implementation of Minimum

Information Security

Standards.

N/A 4 4 0

Monitoring report on number

of misconduct cases

processed. N/A 4 4 0

81

Programme 2: INSTITUTIONAL DEVELOPMENT2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure

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

1. STRATEGIC HUMAN RESOURCES 45 857 (2 587) (3 382) 39 888 36 983 2 905 92.7% 39 266 35 372

2. INFORMATION COMMUNICATIONTECHNOLOGY 113 129 3 260 (1 800) 114 589 104 232 10 357 91.0% 77 659 75 864

3. LEGAL SERVICES 14 180 - - 14 180 10 005 4 175 70.6% 13 566 9 144

4. COMMUNICATION SERVICES 40 301 (4 373) (5 700) 30 228 37 582 (7 354) 124.3% 47 843 51 902

5. PROGRAMME SUPPORT 9 922 3 700 - 13 622 17 167 (3 545) 126.0% 12 108 17 379

223 389 - (10 882) 212 507 205 969 6 538 96.9% 190 442 189 661

Sub programme


The strategy to overcome areas of under-performance is reflected per under achieved indicators in the comments for

deviations.





Sub-programme expenditure

82


Current payments 215 915 (1 500) (10 882) 203 533 197 309 6 224 96.9% 180 955 178 561

Compensation of employees 91 345 4 530 (5 182) 90 693 90 390 303 99.7% 85 651 84 578

Salaries and wages 81 855 4 515 (5 182) 81 188 79 482 1 706 97.9% 76 310 74 609

Social contributions 9 490 15 - 9 505 10 908 (1 403) 114.8% 9 341 9 969

Goods and services 124 570 (6 030) (5 700) 112 840 106 336 6 504 94.2% 95 304 93 983

Advertising 1 244 - - 1 244 993 251 79.8% 2 130 1 485

Minor assets 720 - - 720 148 572 20.6% 381 221

Audit costs: External 950 - - 950 - 950 - 420 -

Catering: Departmental activities 682 - - 682 534 148 78.3% 1 574 545

Communication (G&S) 23 849 - - 23 849 26 475 (2 626) 111.0% 15 559 13 769

Computer services 36 290 - - 36 290 38 762 (2 472) 106.8% 12 683 15 204

Consultants: Business and advisory services 270 130 - 400 587 (187) 146.8% 696 143

Legal services 3 600 - - 3 600 2 988 612 83.0% 2 900 1 768

Contractors 38 317 (5 900) (5 700) 26 717 19 897 6 820 74.5% 39 816 44 588

Agency and support / outsourced services 457 - - 457 413 44 90.4% 198 214

Fleet services (including government motor transport) - - - - - - - 688 499

Inventory: Clothing material and accessories - - - - - - - 62 -


Inventory: Learner and teacher support material - - - - - - - 361 -

Inventory: Medicine - - - - - - - 115 -


Consumable: Stationery, printing and office supplies 2 994 200 - 3 194 2 298 896 71.9% 2 690 2 815

Operating leases 4 963 - - 4 963 3 298 1 665 66.5% 4 277 3 751

Property payments 50 - - 50 49 1 98.0% 86 -

Transport provided: Departmental activity - - - - 51 (51) - 140 29

Travel and subsistence 6 196 (460) - 5 736 7 353 (1 617) 128.2% 6 512 6 445

Training and development 1 534 - - 1 534 929 605 60.6% 1 242 804

Operating payments 755 - - 755 429 326 56.8% 228 268


Rental and hiring 60 - - 60 50 10 83.3% - -

Interest and rent on land - - - - 583 (583) - - -

Interest (Incl. interest on unitary payments (PPP)) - - - - 583 (583) - - -

Transfers and subsidies 3 317 1 500 - 4 817 3 585 1 232 74.4% 2 600 3 177

Households 3 317 1 500 - 4 817 3 585 1 232 74.4% 2 600 3 177

Social benefits 160 - - 160 252 (92) 157.5% 680 249

Other transfers to households 3 157 1 500 - 4 657 3 333 1 324 71.6% 1 920 2 928

Payments for capital assets 4 157 - - 4 157 5 075 (918) 122.1% 6 887 7 923

Machinery and equipment 4 157 - - 4 157 5 075 (918) 122.1% 6 887 7 923


Other machinery and equipment 4 157 - - 4 157 4 571 (414) 110.0% 6 887 7 923

223 389 - (10 882) 212 507 205 969 6 538 96.9% 190 442 189 661

83

5.3 PROGRAMME 3: POLICY, PLANNING AND MONITORING AND EVALUATION

a. Description of the Programme

This programme is mandated to contribute information and knowledge with regard to provincial growth and development policy

and planning formulation and rendering of Outcome Based Management (OBM), performance monitoring and evaluation. The

functional responsibilities of The Policy, Planning and Monitoring and Evaluation Branch reflect the fundamental change from

short and medium term planning to long-term planning that now characterise the planning environment in the country. The

Branch (PPME) renders technical support and reports to the Planning Commission in terms of policy, research, planning,

information management and monitoring and evaluation. The key outputs of the Branch contribute to outcomes, reporting and

policy recommendations formulated by the Planning Commission for the Executive Council resolutions. This Commission was

established in 2011 with the mandate to develop the long-term provincial vision and strategic plan to achieve the political

objectives of social justice, economic development, environmental protection, co-operative governance, freedom and security.

This includes the formulation and implementation of policy, strategy and long term planning across provincial and local spheres of

government.

Programme 3 is also mandated to promote international relations and inter-governmental cooperative governance across all three

spheres of government and social partnerships.


Executive Support, Governance and Stakeholder Management: To provide support and protocol services to Executive

Council and coordinate governance and stakeholder management.

84

Policy and Research: To manage and coordinate the integrated implementation of policies and research to support evidence

based decisions.

Provincial Planning and Support: To manage and coordinate development and implementation of strategies and planning in

line with Provincial and national priorities.

Monitoring and Evaluation: To manage and coordinate implementation of integrated M&E policies, systems and programmes in the province.

Planning Commission Secretariat: To provide secretariat and strategic support functions to the Planning Commission.

Strategic objectives, performance indicators planned targets and actual achievements


Programme Name : Policy, Planning and Monitoring and Evaluation

Strategic Objective: Quality service delivery and access through knowledge management that facilitates evidence based decisions


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016


To provide support and

protocol services to

Executive Council and

coordinate governance and

stakeholder management.

N/A 8 8 0

To manage and coordinate N/A 4 4 0

85




Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016


the integrated

implementation of policies

and research to support

evidence based decisions.

To manage and coordinate

development and

implementation of

strategies and planning in

line with Provincial and

national priorities.

N/A 8 7 1

The Term contract with EON

consulting for the update of

the Provincial statistics and

fact sheets has ended and

was not renewed.


deputy director within the

directorate has been

assigned the responsibility of

analysing statistical and

spatial data which was

previously performed by the

EON Consulting.

To manage and coordinate N/A 14 14 0

86




Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016


implementation of

integrated M&E policies,

systems and programmes

in the province.

To provide secretariat and

strategic support functions

to the Planning

Commission.

N/A 4 4 0

87


Sub-programme: Executive Support Governance and Stakeholder Management.

Strategic Objective: To provide support and protocol services to Executive Council and coordinate governance and stakeholder management.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target to

Actual

Achievement for

2015/2016

Comment on

deviations

Report on corporative

governance programmes

coordinated. N/A 4 4 0

Report on number of

stakeholder management

programmes coordinated N/A 4 4 0

88

Sub-programme:Policy and Research

Strategic Objective: To manage and coordinate the integrated implementation of policies and research to support evidence based decisions.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement for

2015/2016

Comment on

deviations

Report on the coordination of

provincial research. N/A 2 2 0

Report on number of

developmental policies assessed. N/A 2 2 0

89

Sub-programme: Provincial Planning and Support Strategic Objective: To manage and coordinate development and implementation of strategies and planning in line with Provincial

and national priorities


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement for

2015/2016


Report on number of

departmental plans assessed. N/A 2 2 0


statistical and spatial data

analysed.

N/A 4 3 1

The Term contract with EON

consulting for the update of

the Provincial statistics and

fact sheets has ended and

was not renewed.


deputy director within the

directorate has been

assigned the responsibility of

analysing statistical and

spatial data which was

previously performed by the

EON Consulting.


programme and project plans N/A 2 2 0

90

Sub-programme: Provincial Planning and Support Strategic Objective: To manage and coordinate development and implementation of strategies and planning in line with Provincial

and national priorities


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement for

2015/2016


assessed.

Sub-programme: Monitoring and Evaluation

Strategic Objective: To manage and coordinate implementation of integrated M&E policies, systems and programmes in the

province.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


Report on number of provincial

priorities and plans

implemented. N/A 4 4 0

Report on the implementation

of integrated provincial M&E N/A 2 2 0

91

Sub-programme: Monitoring and Evaluation

Strategic Objective: To manage and coordinate implementation of integrated M&E policies, systems and programmes in the

province.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation from

planned target

to Actual

Achievement

for 2015/2016


system.

Report on number of Service

delivery improvement

interventions implemented. N/A 4 4 0

Report on number of

Setsokotsane intervention

programmes coordinated. N/A 4 4 0

92

Sub-sub programme: Planning Commission Secretariat

Strategic Objective To provide secretariat and strategic support functions to the Planning Commission.


Achievement

2014/2015

Planned

Target

2015/2016

Actual

Achievement

2015/2016

Deviation

from

planned

target to

Actual

Achievement

for

2015/2016


Report on the provision of administrative and secretariat services to the Planning Commission

N/A 4

4 0

93


The strategy to overcome areas of under-performance is reflected per under achieved indicators in the comments for deviations.





Programme expenditure

Programme 3: POLICY AND GOVERNANCE2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure

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

1. INTER-GOVERNMENTAL RELATIONS 6 888 (3 320) - 3 568 2 686 882 75.3% 6 173 1 757

2. PROVINCIAL POLICY MANAGEMENT 226 936 (2 690) 10 565 234 811 234 637 174 99.9% 304 197 256 258

3. PREMIER'S PRIORITY PROGRAMMES 5 578 (710) - 4 868 4 778 90 98.2% 5 842 3 497

4. PROGRAMME SUPPORT 82 735 6 720 (3 000) 86 455 85 546 909 98.9% 2 687 46 317

322 137 - 7 565 329 702 327 647 2 055 99.4% 318 899 307 829

Sub programme

94


Current payments 140 945 1 430 (2 435) 139 940 132 488 7 452 94.7% 149 918 137 520




Goods and services 28 676 (3 415) - 25 261 17 979 7 282 71.2% 47 293 29 249

Advertising 157 70 - 227 145 82 63.9% 359 30

Minor assets 232 - - 232 278 (46) 119.8% 235 114


Communication (G&S) 858 (70) - 788 419 369 53.2% 1 210 1 132

Computer services 270 - - 270 582 (312) 215.6% 250 96

Consultants: Business and advisory services 12 476 (3 415) - 9 061 1 072 7 989 11.8% 26 591 5 154

Contractors 352 (100) - 252 366 (114) 145.2% 6 360 9 777

Agency and support / outsourced services (100) 100 - - 774 (774) - - -

Fleet services (including government motor transport) - - - - - - - 101 -


Consumable: Stationery, printing and office supplies 893 - - 893 559 334 62.6% 1 372 1 100

Operating leases 4 860 - - 4 860 3 993 867 82.2% 3 933 3 169

Property payments 20 (1) - 19 19 - 100.0% 22 -

Transport provided: Departmental activity 749 - - 749 700 49 93.5% 127 807



Operating payments 30 1 - 31 31 - 100.0% 136 200


Transfers and subsidies 180 013 (430) 10 000 189 583 188 718 865 99.5% 167 462 167 240

Departmental agencies and accounts 178 583 - 10 000 188 583 188 583 - 100.0% 166 142 166 142

Departmental agencies (non-business entities) 178 583 - 10 000 188 583 188 583 - 100.0% 166 142 166 142

Non-profit institutions 840 - - 840 - 840 - 840 840

Households 590 (430) - 160 135 25 84.4% 480 258

Social benefits 590 (430) - 160 135 25 84.4% 480 252

Other transfers to households - - - - - - - - 6

Payments for capital assets 1 179 (1 000) - 179 6 441 (6 262) 3598.3% 1 519 3 069

Machinery and equipment 1 179 (1 000) - 179 6 441 (6 262) 3598.3% 1 519 3 069


Other machinery and equipment 1 179 (1 000) - 179 5 937 (5 758) 3316.8% 1 519 3 069

322 137 - 7 565 329 702 327 647 2 055 99.4% 318 899 307 829

95

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure

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

Programme

1. ADMINISTRATION 262 378 - 3 317 265 695 252 367 13 328 95.0% 247 344 191 330

2. INSTITUTIONAL DEVELOPMENT 223 389 - (10 882) 212 507 205 969 6 538 96.9% 190 442 189 661

3. POLICY AND GOVERNANCE 322 137 - 7 565 329 702 327 647 2 055 99.4% 318 899 307 829

Programme sub total 807 904 - - 807 904 785 983 21 921 97.3% 756 685 688 820

Statutory Appropriation - - - - - - - - -

- - - - - - - - -

- - - - - - - - -

TOTAL 807 904 - - 807 904 785 983 21 921 97.3% 756 685 688 820

Add:

679 20

- -

- -

808 583 756 705

Add: - -

785 983 688 820

Reconciliation with Statement of Financial Performance

Departmental receipts

NRF Receipts

Aid assistance

NORTH WEST: OFFICE OF THE PREMIER

Appropriation Statement

for the year ended 31 March 2016

Appropriation per programme

Voted funds and Direct charges

Actual amounts per Statement of Financial Performance (Total

Aid assistance

Prior year unauthorised expenditure approved without funding

Actual amounts per Statement of Financial Performance

Expenditure

Index Units formatting Export App.Stat Manage data

6. SUMMARY OF FINANCIAL INFORMATION

6.1. Departmental receipts

R 999 148

6.2. Programme Expenditure

96

STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

2014/15

DEPARTMENT/AGENCY/ACCOUNT

Adjusted

appropriation

Roll Overs Adjustments Total

Available

Actual

Transfer

% of

Available

funds

transferred

Appro-

priation Act

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

North West Parks and Tourism Board 178 583 10 000 188 583 188 583 100% 166 142

North West Provincial Council of AIDS 17 658 17 658 17 658 100% 20 520

Total 196 241 - 10 000 206 241 206 241 186 662

TRANSFER ALLOCATION TRANSFER

STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

2014/15

NAME OF PUBLIC

CORPORATION/PRIVATE ENTERPRISE

Adjusted

appropriation

Act


Available

Actual

Transfer

% of

Available

funds

transferred

Capital Current Appro-

priation Act

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

Public corporations

Subsidies 10 000 - - 10 000 10 000 100.0% - - 50 000

North West Development Corporation 10 000 10 000 10 000 100.0%

S A Express - 50 000

Sub total: Public corporations 10 000 - - 10 000 10 000 100.0% - - 50 000

TOTAL 10 000 - - 10 000 10 000 100.0% - - 50 000

TRANSFER ALLOCATION EXPENDITURE

6.3. Transfer payments, excluding public entities

6.4. Public Entities

97

6.5. Conditional grants and earmarked funds paid

R117 558 000 Earmarked funds paid on the MRRRP projects

6.6. Conditional grants and earmarked funds received

R132 000 000 Earmarked funds for MRRRP projects.

6.7. Donor Funds

R2 106 000 was received from Construction & Education SETA towards Bursaries.

6.8. Capital investment, maintenance and asset management plan

2015/2016 2014/2015

Infrastructure Projects Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

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

Rehabilitation, Renovations and Refurbishments 132 000 117 558 14 442 90 000 37 730 52 270

98

PART C:GOVERNANCE

1. INTRODUCTION

The Office is committed to maintain high standards of governance in order to

effectively, efficiently and economically utilize the state resources which are

funded by the tax payer.

2. RISK MANAGEMENT

The department has approved risk management policy and strategy which

has been communicated to all employees in the Department.

Strategic risk assessment sessions were held during the financial year

under review. Risk register was also developed and monitored on a

quarterly basis.

The department has Risk Management Committee during the financial

year under review. This committee met on a quarterly basis to discuss the

status of risk management and the effectiveness of internal control

systems.

The audit committee as an oversight body provided guidance on the risk

management issues and monitored the progress of implementing risk

management treatment plan on a quarterly basis.

Although the department had effective risk management systems, the risk

management unit is not adequately capacitated to service the

department.

3. FRAUD AND CORRUPTION

The department’s fraud prevention plan and the progress made in

implementing the fraud prevention plan

The Department has the following adopted Policies

o Fraud Prevention Plan

o Fraud Implementation Plan

o Whistle blowing Policy

Progress made in the Implementation of Fraud Prevention Plan

o Facilitation of Awareness Campaign’s in Local and District Municipalities

o Anti-Corruption training for Provincial Departments

o Anti-Corruption Training for District and Local Municipalities

o Ethics Training for Departments and Anti-Corruption Forum members

o Forensic Investigation training for Provincial Departments

o Coordination of the following committees to fight corruption.

100

Provincial Anti-Corruption Technical & Ethics Committee

Provincial Anti-Corruption Forum

District Anti-Corruption Forum

Local Anti-Corruption forum

Provincial Risk Management Committee

Mechanisms in place to report fraud and corruption and how these

operate.eg: Whistle blowing - The need for officials to make confidential

disclosure about suspect fraud and corruption

Fraud and Corruption is reported in the following manner

o Through National Anti-Corruption Hotline – 0800 701 701

o By Walk-inns

o Through referral by Departments and Public entities

o Through ad-hoc mandate by the Premier

o Through ad-hoc mandate by the Director General

o Through anonymous reporting, Emails &Faxes

o Provincial HOTLINE Bua le Puso

The need for officials to make confidential disclosures

o Popularizing the toll free number to report corruption

o The right to remain anonymously when reporting

o Designed Tipp-off forms to report fraud and corruption

How these cases are reported and what action is taken

o Hotline cases are reported through National Anti-Corruption Hotline

o Cases are investigated by the dedicated Unit

o Reports with recommendations are sent to relevant client Departments

and other State Institutions

o Reporting cases with criminal elements are reported to SAPS

101

4. MINIMISING CONFLICT OF INTEREST

Minimising conflict of interest is achieved through:

o Through Electronic financial disclosures

o Application of external remunerative work

o Departmental gift register

o Conduct awareness programme to educate officials on ethics, good

governance anti-corruption measures

o Appointment of Ethics officers

o Appointment of Ethics Champion.

5. CODE OF CONDUCT

The Department is fully adhering to the Public Service Code of conduct in the following manner:

• Employees sign the code of conduct on their appointment to the Department and are kept in their personal files.

• Code of conduct road shows are conducted quarterly in the Department. The code of conduct as a whole has an effect in the Department, relationship amongst employees, and amongst employees and their managers, relationship with the Legislature and the Executive, relationship with the Public, and performance of duties, are all observed in terms of the Departmental Labour Relations database, grievances and disciplinary cases. Any breach of the code of conduct by the employee is dealt with in terms of the PSCBC Resolution 1 of 2003, the disciplinary code and procedure for the Public Service. The information provided above is a true reflection and supporting documents

will/can be provided as per the request by the receiver.

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

Description and nature of Health Safety and Environment issues:

(a) Slippery floors

(b) Offices without open windows

(c) Air conditions malfunctioning

(d) Lack of emergency exists

102

(e) Theft due to partitioned offices

(f) Toilet odour – pipes worn-out, overpopulation in the building

(g) Water problem – both for sanitation and drinking

(h) Clinic and Gym sharing space.

The effects it has on the department:

(a) Injury on duty

(b) Occupational diseases

(c) Lost items in case of theft (financial, trauma implications) that would also

lead to low productivity and low morale.

(d) Non adherence to emergency plans - more trauma for employees in case of emergency – stampede.

7. PORTFOLIO COMMITTEE

Date of the Meeting

Matters raised by the Portfolio

Committee

How has the department addressed

these matters

27/10/2015 Presentation of the Annual report: Office of the Premier (OTP) to correct the expenditures in the presentation for the year under review and to report back on the 03/11/2016.

OTP corrected the expenditure as directed by the Members of the Portfolio Committee.

03/11/2016

Why there is an expenditure of R256 000 while there is no budget for the sub-programme: Special programmes?

Why is there a budget of R2,687 million while the expenditure amounts to R46, 061 million under Programme Support in Programme 3?

The amount was the expenditure that came through after the two departments had agreed on the various balances to be transferred. It was agreed that due to the amount involved to be transferred Vis a Vis the administrative work involved, that the expenditure be absorbed by the Office of the Premier.

The expenditure relates to the Community Development Workers unit which was transferred to the Office through the re-configuration process. The budget of the unit was placed under the Sub-Programme: Provincial Policy Management under Programme 3. When the CDW was loaded on Persal, the link code used was that of the Sub-Programme: Programme

104

Date of the Meeting


Committee


these matters

Why Premier Priority Programmes under Programme 3 have expenditure of R 3,497 million whilst there are no targets reflected in the APP and Annual Report?

Why is there an under-achievement on targets but overspending in Sub-Programme: Communications under Programme 2.

Support also under Programme 3. This then meant the personnel expenditure was drawn from Sub-Programme: Programme Support whilst the budget was under a different Sub-Programme (Provincial Policy Management.)

The Sub-Programme: Premier Priority

Programmes reflected on page 254 of

the Annual Report, comprises of the

following units:

o Youth Development o Moral Re-generation and Social

Cohesion The performance information for the Sub-

Programme is captured as per above

individual units and reflected on pages 96

to 97 of the Annual Report.

The launching and implementation of

the following community engagement

programmes resulted in the over

expenditure in the Sub-Programme:

Communications:

o Setsokotsane

105

Date of the Meeting


Committee


these matters

o Bua le Puso o Reconciliation, Healing and

Renewal (RHR)

The over expenditure was as a result of

inadequate funding for these programmes

during the financial year under review.

16/02/2016

The 1st and 2nd quarter performance reports were noted with no exceptions N/A

106

8. SCOPA RESOLUTIONS

There were no SCOPA resolutions for the 2014/2015 Financial year.

9. PRIOR MODIFICATIONS TO AUDIT REPORTS

ID Finding Finding Description Financial year in which it first arose

Progress to Date Status

1 Unauthorised expenditure

Unauthorised expenditure of R16 000 000 in respect of prior years had not yet been dealt with in accordance with section 34 of the PFMA.

2013/14 The North West Provincial Legislature has condoned the Unauthorized Expenditure on 15 March 2016

Completed

2 Irregular Expenditure

Irregular expenditure of R32 257 000 incurred in 2013/2014 and irregular expenditure of R236 856 000 from 2009 to 2012/2013 financial years are still awaiting condonation.

2013/2014 A list of all irregular expenditure for the years 2009 to 2014 has been prepared and currently all files are being prepared for investigations by the forensic unit. Once the investigation has been concluded action will be taken against implicated officials.

In Progress

2009 to 2012/2013

3 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure of R22 800 000 for 2013/2014 and R880 000 from 2009 to 2013 financial years had not yet been resolved.

2013/2014 Forensic investigation has been concluded on the R22 800 000. Department is in the process of implementing recommendations of the investigation.

In Progress

107



2. The matter on the R880 000 has been referred to Forensic Unit for investigation. The target is to finalise the matter by the end of February 2016.

2009 to 2013 3. All payment requisitions are subjected to stringent scrutiny before payment is effected.

4 Misstatements in the financial statement

Misstatements in the financial statements due to the following:

The post for Director Finance has been filled.

Completed

Ø Incorrect mapping of employee related cost in the AFS.

Internal control checklist on the AFS will be updated to ensure that all material findings raised on the AFS are not repeated.

Ø Misclassification of goods and services.

2014/2015

Ø Claims against the department not disclosed.

Ø Immovable assets not transferred to local municipality/DPW not

2014/2015

108



disclosed. Ø Commitments incorrectly disclosed in AFS.

Ø Accruals incomplete. 2014/2015 Ø All disclosures not done and supporting documentation

discrepancies for the transfer of function note

2014/2015

for transfer from Department of Local Government and Traditional Affairs.

2012/13:2013/14:2014/15

Ø Irregular expenditure of 2014/2015 R 5 473 554 was not disclosed in the financial statements.

Ø Difference between asset register and annual financial statements.

2014/15

Ø Expenditure on finance leases not recognized and accounted for as payment for capital expenditure.

2014/15

109



5 Irregular expenditure

The department incurred irregular expenditure of R10 540 000 during 2014/2015 financial year.

2014/15 Investigation has already commenced on the irregular expenditure for 2014/2015 financial year including the first quarter of the current financial year. The outcome of investigations will be shared with the Cluster Audit Committee and the Legislature. . The department has introduced internal control system by ensuring that where sourcing of three quotations or tendering processes could not be followed; prior motivation for deviation should be obtained from an authorized official before the expense is incurred.

Completed

14/1/2016

Investigation has been finalized.

6 Fruitless and wasteful

The department incurred fruitless and wasteful

2014/15 1. The matter has been investigated.

Completed

110



expenditure expenditure of R224 000 2. The Risk Management has introduced a standard Operating Plan whereby a central point for receiving invoices of all G& S rendered is introduced.

7 Underspending The department has materially under spent the budget on Programme 1: Administration and Programme 3: Institutional development by R56 014 000 and R11 070 000 respectively.

2014/15 Internal Audit Steering Committee has been mandated to monitor the budget on a monthly basis before the DMC meetings.

Completed

Progress on the intervention made will be shared with the Cluster Audit Committee. A budget committee has been established.

8 Financial Statements not prepared in accordance of prescribed framework

The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1) (b) of the PFMA.

201415 42472 Completed

111



Material misstatements of expenditure and disclosure items identified by the auditors in the submitted financial statement were subsequently corrected resulting in the financial statements receiving an unqualified audit opinion.

The post of Director: Finance has been filled.

The financial statements will be reviewed before final submission to Audit Committee and the Auditor General.

9 Non Effective Internal Controls

Effective internal controls were not in place for payment approval and processing, as required by Treasury Regulation 8.1.1.

2012/13;2013/14:2014/15 Risk management checklist has been updated to include the testing of completeness and validity of the VA2 special forms.

Completed

10 30 Day Payment

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

2013/14:2014/15 All officials in the department were informed about actions that will be taken if service providers are not paid within 30 days.

Completed

112



Monthly reports on 30 days payments are submitted to the Accounting Officer.

Consequence management is being applied to ensure that the department achieves 100% compliance.

11 Vacant Funded Posts

Funded vacant posts were not filled within 12 months as required by Public Service Regulation 1/VII/C.1A.2.

2014/15 The following strategic post has been filled:

In Progress

1. Director General

The department obtained approval to fill the following strategic posts which were advertised and interviews held on 09 October 2015:

1. DDG; Admin - appointed

2. DDG: Monitoring and evaluation - appointed

3. Chief Director: Monitoring and Evaluation- Appointed

4. CFO- Still outstanding

5. Director SCM- Appointed

6. Director: Finance-

113



Appointed

7. Chief Director: GITO- appointed

12 Asset Management

Proper control systems to safeguard and maintain assets were not implemented, as required by section 38(1) (d) of the PFMA and Treasury Regulation 10.1.1(a). Although asset reconciliations were done and reviewed on a monthly basis, all the movements were not adequately monitored and adjusted to ensure that the asset register is updated at year end.

2014/15 Workshops were held with Asset controllers on 14 September 2015 where all were reminded to ensure that any movement of assets is reported to the Asset Management Unit.

Completed

Asset reconciliation is performed on a monthly basis to identify and mitigate any gaps that may exist.

13 Consequence Management on Fruitless and Wasteful expenditure

Effective and appropriate disciplinary steps were not taken against officials who made and permitted irregular and fruitless and wasteful expenditure, as required by section 38(1) (h) (iii) of the PFMA and

2014/15 1. Investigation on irregular and fruitless and wasteful expenditure has been finalized. 2. Supply Chain and Risk Management checklists have been updated to mitigate the reoccurrence of fruitless and

Completed

114



Treasury Regulation 9.1.3. This because instances of irregular expenditure and fruitless and wasteful expenditure were not all investigated.

wasteful expenditure.

14 Risk Management

Decisive actions to address risks relating to the achievement of complete and accurate financial and performance reporting were not taken.

2014/15 1. Risk Management unit visited all the directorates to obtain progress in terms of addressing outstanding risks.

Completed

2. Filled the following strategic posts: DDG: Admin; Director SCM; and Director Finance. CFO still to be appointed.

15 Communication of policies and procedures

Management did not communicate policies and procedures to enable and support understanding and execution of internal control objectives, processes and responsibilities.

2014/15 1. Departmental policies have been placed on a SharePoint to which all officials have access.

Completed

2. New staff is made aware of policies and procedures during induction.

16 Inadequate review of Financial and

The accounting officer did not adequately review the financial statements and

2014/15 The post of Director Finance has been.

Completed

115



performance Reports

the annual performance report prior to their submission for audit and therefore material adjustments were made during the audit to the financial statements and annual performance report.

The Office has developed the Quality Assurance Certificate which Sub Programme Managers and DDGs with managers who directly report to them sign-off. This is done to confirm that the reported outputs and POEs are correct and linked to the PIs in the APP.

17 Insufficient Monitoring controls on the reporting of performance information

The department did not have sufficient monitoring controls to ensure adherence to the internal policies and procedures regarding reporting on performance objectives at a programme level and for purposes of taking corrective action

2014/15 1. Internal Audit Steering Committee checks the accuracy and the completeness of performance information before being submitted to oversight bodies.

Completed

2. Quarterly review sessions are held.

3. Quality assurance certificates developed for signing off by Programme managers

18 Ineffective implementation of policies and procedures

Management does not ensure that policies and procedures to guide the operations of the department are

2014/15 Policies are presented during the induction workshops which are held on a quarterly basis

Completed

116



implemented effectively, resulting in numerous instances of non-compliance with the PFMA, as detailed under the findings on compliance with laws and regulations section of this report.

19 Inadequate monitoring of the implementation of Action Plans

The department developed a plan to address internal and external audit findings, but the appropriate level of management did not adequately monitor adherence to the plan as various findings that were raised in the prior years were not addressed.

2014/15 1. Implementation of Post Audit Action Plan is a standing item at both DMC and Audit Steering Committee meetings. 2. Scope of the Audit Steering Committee has been expanded to improve monitoring of action plans.

Completed

20 Risk Management

Lack of integration between the entity’s knowledge of risks and the development of its IT strategic plan (which takes into account risks)

2014/15 The IT strategic and operational risks have been identified and aligned to the OOP IT mandate and included in the departmental risk register.

Completed

21 Assessment of IT Roles and positions

Human resource department had not performed an assessment

2014/15 Job Description aligned with functions for the GITO has been developed and signed

Completed

117



of the roles and positions that were inherited from Department of Finance when central IT was moved to Office of the Premier.

off by employees.

22 Monitoring of IT Service level agreements

IT Service level agreements that had been entered with service providers did not include a clause regarding monitoring of services as these requirements were overlooked when the SLA were drafted.

2014/15 Renewal of SLA's and new contracts will include monitoring of Service Levels

Completed

Two SLA performance monitoring engagements were held with TransDara IT and Bitanium

These reports were submitted to the DG for noting

Engagements with Switch Air and Telkom were held during February. The performance reports are being finalized.

23 Financial Record management

The department did not have a proper system of record management that provides for the maintenance of information that supports the reported amounts in the annual financial statements as

2014/15 The posts of Directors for Finance and SCM were filled.

Completed

14/1/2016

The Director & Deputy Director finance has been appointed, interviews & competency assessment for CFO's post have been done.

118



various inaccurate registers and listings were initially provided.

24 Accrual and Commitment registers

Accrual listings, commitment registers (including finance and operating lease commitments) are not prepared accurately.

2013/14: The post of Director Finance has been filled.

Completed

2014/15 This following has been introduced to enhance internal control. Monitor open orders, check on accruals monthly, complete the accrual and commitment registers

25 Asset Management

Although asset reconciliations were done and reviewed on a monthly basis, all the movements were not adequately monitored and adjusted to ensure that the asset register is updated at year end.

2013/14: Workshops were held with Assets Controllers to ensure that movement of assets is reported to Assets Management Unit.

Completed

2014/15

26 Mainframe software upgrade

The z/operating system was not upgraded to the latest version as department was in the process of upgrading the Mainframe infrastructure.

2014/15 The Upgrade scheduled for December 2015 has been postponed to April 2016 due to the implementation of the Virtual Tape Library (VTL) device on the mainframe.

In Progress

119



27 Patch management procedure not adequately implemented

The approved patch management procedure and standards were not adequately implemented to enforce compliance which led to servers not being patched as mandated and the migration of an unauthorized change into the production environment leading System Management Facilities not being migrated.

2014/15 The file server for testing patches has been procured and is being configured. Patches are implemented on the Servers. Desktop patch management is still in progress.

In Progress

28 RACF Facility not adequately implemented

The approved Resource Access Control Facility (RACF) security standards did not cater for the RACF security group structure. This omission could be attributed to the limited level of expertise of the Office of the Premier’s mainframe security team and failure to ensure that the IBM requirements were followed when security

2014/15 RACF security group structure has been updated in line with IBM RACF security standards

Completed

120



standards were developed.

29 ICT Security policy

Office of the Premier had conducted a risk assessment however the ICT security policy was not updated to reflect the results of the assessment.

2014/15 The IT security policy was reviewed and must be approved.

Completed

30 Server Configuration policies and standards

The policies, standards and procedures for securely configuring of servers were not in place which led to servers and other network equipment being inadequately configured or default configurations not amended.

2014/15 1.The following policies, procedures and standards were approved for implementation:

Completed

- Patch management procedure and standard

- Remote Access Policy

- Problem and Incident management policy

31 Business Continuity Plans and Disaster Recovery

Management has not developed an understanding of the business impact of a loss of confidentiality, integrity or availability of information,

2014/15 The first meeting of the task team took place before the end of September 2015 and subsequent to the meeting the draft business continuity plans (BCP) and disaster

In Progress

121



and therefore documented procedures to be carried out to mitigate that risk.

recovery plans (DRP) were developed and will be circulated to DMC members for inputs before the end of November 2015.

The scope of non-compliance to BCP's cuts across all departments. A task team comprising of the provincial Disaster Management and Risk Management together with the OTP will conduct a workshop on 03 February 2016 with the provincial departments to facilitate the development of BCP's.

32 Oversight over Financial and Performance reporting and IT

The accounting officer did not adequately exercise appropriate oversight over financial and performance reporting, information technology (IT) systems and related internal controls.

2014/15 Internal Audit steering committee reviews financial information monthly and performance information quarterly.

Completed

122



Material adjustments were required to financial statements and the annual performance report.

IT Governance is a standing item on the agenda of the Internal Audit Steering Committee.

Furthermore, IT governance framework was not adequately implemented due to resource constraints which resulted in significant IT control deficiencies.

The Office holds quarterly performance review sessions where all DMC Members are mandated to attend and discuss performance information in order to address under performance, challenges and interventions. Each Programme Manager presents the Branch performance whilst the Strategic Management Directorate presents the overall performance of the department for the quarter.

33 Inadequate controls on the reliability of Financial and Performance Information

Management did not adequately implement controls to ensure that information in the financial statements and the report on predetermined objectives was reliable before submission for

2014/15 Posts of Directors for Finance and SCM and CFO have been advertised, interviews conducted and candidates recommended for appointment.

Completed

123



audit.

This was mainly due to differences identified during key reconciliations not resolved and staff not could have been prevented had compliance been properly reviewed and monitored and control fully understanding the requirements of the MCS. Non-compliance with laws and regulations measures implemented. Furthermore, effective IT controls were not sufficiently implemented which resulted in deficiencies in security settings, access control, configuration of server and network, server patch and migration of System Management Facilities. Policies and procedures did not always

124



adequately guide financial, performance and IT related activities and action plans to address prior year audit findings.

34 Vacant Funded Posts

The following deficiencies were identified during the assessment of these oversight matters:

2014/15 In progress In Progress

• The unit/directorate responsible to monitor the credibility of departmental HR plans and vacancies in the province has a vacancy rate of 50%.

125

10. INTERNAL CONTROL UNIT

The Office does not have an Internal Audit. The function is centralised at the department of Finance and services all the

departments. However the Office has established the departmental internal audit steering committee specifically to monitor

implementation of the AG’s Plan. Internal audit steering committee sits on weekly basis.

11. AUDIT COMMITTEE REPORT

OFFICE OF THE PREMIER Report of the Provincial Audit Committee We are pleased to present our report for the financial year ended 31 March 2016.

Audit Committee Members and Attendance The Audit Committee consists of the members listed hereunder and should meet at least four times per annum as the Central Audit

Committee and also four times per annum as the Cluster Audit Committee as per its approved terms of reference. During the

current year four meetings were held by the Central Audit Committee and five meetings were held by the Cluster Audit Committee.

Central Audit Committee

Scheduled Meetings

Special Meetings

Name Role Held Attended Held Attended

Mr. M. Mohohlo Chairperson 4 4 3 3

Ms. P. Mzizi External Member 4 2 3 3

Ms. N. Mtebele External Member 4 3 3 3

126

Mr. P. Tjie External Member 4 4 3 3

Mr. F. Gondwe External Member 4 4 3 2

Mr. M. Mokgobinyane

External Member 4 1* 3 Na

Ms. O. Bodigelo-Nyezi

Internal Member 4 1* 3 Na

Mr. N. Kunene Ex Officio Member 4 3 3 Na

Mr. G. Paul Ex Officio Member 4 1 3 Na

Mr. M. Bogosi Ex Officio Member 4 1** 3 Na

Ms. H. Kasirivu Ex Officio Member 4 1** 3 Na

*Co-opted for specific meetings. **On behalf of Ex Officio Members. Cluster Audit Committee

Scheduled Meetings

Name Role Held Attended

Ms. P. Mzizi Chairperson 5 5

Ms. M. Morata External Member 5 4

Mr. F. Sinthumule External Member 5 3

Mr. M. Mohohlo External Member 5 2*

Mr. P. Zwane External Member 5 1*

Ms. O. Bodigelo-Nyezi

Internal Member 5 3

127

*Co-opted for specific meetings. Audit Committee Responsibility The Audit Committee reports that it has complied with its responsibilities arising from section 38(1) (a) (ii) of the PFMA and

Treasury Regulation 3.1.

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

In line with the PFMA, Internal Audit provides the Audit Committee and management with assurance that the internal controls are

appropriate and effective. This is achieved by evaluating internal controls to determine their effectiveness and efficiency, and by

developing recommendations for enhancement or improvement. From the various reports of the Internal Auditors and audit reports

of the AGSA it was noted that matters were reported indicating deficiencies in the system of internal controls in areas pertaining to

financial reporting and compliance with laws and regulations.

Through our analysis of audit reports and engagement with the Department we can report that the system on internal control for

the period under review was not adequate and effective. The report of the Auditor General South Africa for the 31 March 2016

indicated further deficiencies in the system of internal controls.

A matter of concern for the Audit Committee is that the department is currently not implementing all Internal Audit action plans

agreed upon.

128

Based on the quarterly reviews performed, the departmental fraud and risk management system is not adequate and effective.

The Audit Committee remains concerned with the slow progress in the finalisation of irregular and fruitless and wasteful

expenditure.

In-Year Management and Quarterly Reporting

The Provincial Treasury has confirmed that the department has reported to the Treasury as is required by the PFMA. The quality

of the in-year financial and performance reporting including interim financial statements are however a concern to the Audit

Committee.

Evaluation of Financial Statements

The Audit Committee has:

reviewed and discussed the external audit outcomes on the audited annual financial statements to be included in the annual

report, with the Auditor General South Africa and the Accounting Officer,

reviewed the Auditor General South Africa’s management report and management’s responses thereto, and

reviewed significant adjustments resulting from the audit.

Evaluation of reporting on pre-determined objectives

129

The Audit Committee has discussed the external audit outcomes on the reporting on pre-determined objectives to be included in

the annual report with the Auditor General South Africa and the Accounting Officer.

Internal Audit

The Audit Committee is satisfied that the Internal Audit function operated effectively during the year under review. The Audit

Committee also notes that the deficiencies in the risk management system mentioned above impact on the effective

implementation of the risk based audit approach.

Auditor General South Africa

We have reviewed the department’s implementation plan for audit issues raised in the previous year and we are not satisfied that

all the matters have been adequately resolved.

The Audit Committee concurs and accepts the conclusions of the Auditor General South Africa 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 South Africa.

130

General

The Audit Committee wishes to extend its appreciation to the Premier, Accounting Officer and Management, Internal Auditors and

Auditor General South Africa for their tireless efforts, commitment and support throughout the year.

Signed on behalf of the Cluster Audit Committee by: P. Mzizi ................................................. P Mzizi CA(SA) Chairperson of the Cluster Audit Committee Date: 31 July 2016

The above report was presented to, considered and approved by the Central Audit Committee at a meeting held on 31 July 2016

and is signed by:

M.M Mohohlo

...........................................

M Mohohlo Chairperson of the Provincial Audit Committee Date: 31 July 2016

131

PART D:HUMAN RESOURCE MANAGEMENT

132

1. LEGISLATURE THAT GOVERN HR MANAGEMENT

The information provided in this part is prescribed by the Public Service Regulations (Chapter 1, Part III J.3 and J.4).

2. INTRODUCTION

As at 31 March 2016, 887 posts are reflected on PERSAL. These include 687 filled, vacant and 62 posts additional to

establishment (contracts, PCA staff and Internships). Additional Appointments are unpacked as follows: 22 officials from

the disestablished PCA were temporarily accommodated on PERSAL, 31 interns, 2 Special Advisors, 6 call centre

operators and 1 Driver to accommodate a person with Disability.

In the year under review, the design of the interim structure was prioritised. The final interim structure was approved on 9

March 2016. Priority was given to accommodating the staff from the dis-established PCA as well as the filling of critical

senior management positions. Of high priority was the filling of the Director-General position and the 2 vacant DDG

positions, which was achieved 01 July and 01 November 2015 respectively. Going forward in 2016/2017, the remaining

senior management positions will be filled.

In respect of skilling the workforce, the Chief Directorate of Ikatisong School of Government was established as part of

the organisational structure, not just to focus on the workforce of the Office of the Premier, but the entire NWPG.

The Performance Management and Development system for the 2014/2015 cycle was concluded and payments made.

The EHWP programmes were successfully implemented as planned.

Challenges include the fact that the Compensation of employee budget was not adequate to fund the full interim

structure, due to the newly created positions. Going forward in 2016/17, a proposal to create a functional, affordable,

approved structure is underway.

Further challenges that arose from the pronouncements of the 5th administration involve Human resource development.

Functional and focus shifts compel the Office to re-address job descriptions, conduct a skills audit, and ensure

identified skills and competency gaps are developed. Job Descriptions in respect of all posts on the organisational

structure are being developed in a project that started in 4th quarter of 2015/2016.

133

3. HUMAN RESOURCE OVERSIGHT STATISTICS

3.1. Personnel related expenditure

Table 3.1.1 Personnel expenditure by programme

Programme Total

expenditure

(R’000)

Personnel

expenditure

(R’000)

Training

expenditure

(R’000)

Professional

and special

services

expenditure

(R’000)

Personnel and

expenditure as

a % of total

expenditure

Average

personnel cost

per employee

(R’000)

03000001

PREMIER:PROGRAMME

1:ADMINISTRATION 253 341 54 447 446 202 5 444 21

344 604

03000002

PREMIER:PROGRAMME

2:INSTITUTIONAL

DEVELOPMENT

211 895 90 035 741 929 306 35

447 939

03000003

PREMIER:PROGRAMME

3:POLICY AND

GOVERNANCE

322 062 115 482 181 164 1 072 44 290 887

134

Table 3.1.2 Personnel costs by salary band for the period 1 April 2015 and 31 March 2016

Salary bands Personnel

expenditure (R’000)

% of total personnel

cost

No of employees Average personnel costs

per employees (R’000)

Lower skilled (Levels 1-2) 3 004 082 1 24 125 170

Skilled (Levels 3-5) 17 838 334 7 94 189 770

Highly skilled production (Levels 6-8) 98 723 800 38 383 257 764

Highly skilled supervision (Levels 9-

12) 85 476 663 33 161 530 911

Senior and Top Management (Level

13-16) 34 510 525 13 36 958 626

Contract (Levels 1-2) 2 047 792 1 31 66 058

Contract (Levels 3-5) 2 285 824 1 10 228 582

Contract (Levels 6-8) 236 542 0 0

Contract (Levels 9-12) 3 214 291 1 4 803 573

Contract (Levels 13-16) 11 782 954 5 12 981 913

Periodical Remuneration 0 0 0 0

Abnormal Appointment 0 0 1 844 557

Grand Total 259 965 369 100 756

343 870

135

Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2015 and 31 March 2016

Programme

Salaries Overtime Home Owners

Allowance

Medical Aid

Amount

(R’000

Salaries

as a % of

personnel

costs

Amount

(R’000)

Overtime

as a % of

personnel

costs

Amount

(R’000)

HOA as a

% of

personnel

costs

Amount

(R’000)

Medical

aid as a

% of

personnel

costs

03000001 PREMIER:PROGRAMME 1:ADMINISTRATION

36 678 910 67 287 466 1 1 346 479 1 346 479 1 930 494 4

03000002 PREMIER:PROGRAMME 2:INSTITUTIONAL DEVELOPMENT

63 401 137 70 392 612 0 1 795 841 1 795 841 2 653 293 3

03000003 PREMIER:PROGRAMME 3:POLICY AND GOVERNANCE

81 101 352 70 6 732 0 3 846 717 3 846 717 6 812 989 6

Grand Total

181 181 400

70 686 812 0 6 989 037 6 989 037 11 396

776 4

136

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2015 and 31 March 2016

SALARY BANDS

Salaries Overtime Home Owners

Allowance Medical Assistance

SALARIES VIA PERSAL

Salaries as % of

Personnel Cost

OVERTIME

Overtime as % of

Personnel Cost

HOUSE OWNERS ALLOWANCE

HOA as % of

Personnel Cost

MEDICAL FUNDS

Medical Ass. as %

of Personnel

Cost

Lower skilled (Levels 1-2) R 2,848.10 0 R 11,847.85 0 R 251,400.00 8 R 311,494.00 10

Skilled (Levels 3-5) R 158,711.84 1 R 203,233.14 1 R 1,059,600.00 6 R 1,326,019.25 7

Highly skilled production (Levels 6-8) R 2,011,501.16 2 R 389,492.93 0 R 3,984,900.00 4 R 7,200,414.25 7

Highly skilled

supervision (Levels 9-12) R 5,281,828.27 6 R 54,323.36 0 R 1,336,426.00 2 R 2,043,874.33 2

Senior and Top Management (Level 13-16) R 2,229,275.72 7 0 R 308,630.00 1 R 476,886.50 1

Contract (Levels 1-2) R 36,179.48 2 R 5,442.89 0 0 0

Contract (Levels 3-5) R 109,799.76 5 R 22,472.33 1 0 0

Contract (Levels 6-8) 0 0 0 0

Contract (Levels 9-12) R 427,114.76 13 0 0 0

Contract (Levels 13-16) R 1,275,636.34 11 0 R 48,081.29 0 R 38,088.00 0

Periodical Remuneration 0 0 0 0

Abnormal Appointment R 12,632.30 2 0 0 0

Grand Total R 11,545,527.73 4 R 686,812.50 0 R 6,989,037.29 3 R 11,396,776.33 4

137

3.2. Employment and Vacancies

Table 3.2.1 Employment and vacancies by programme as on 31 March 2016

PROGRAMME No. of posts

No. of posts filled

% Vacancy

Rate

No. of posts filled additional to the

establishment

03000001 PREMIER:PROGRAMME 1:ADMINISTRATION 174 139 20 19

03000002 PREMIER:PROGRAMME 2:INSTITUTIONAL DEVELOPMENT 243 184 24 16

03000003 PREMIER:PROGRAMME 3:POLICY AND GOVERNANCE 408 371 9 27

Grand Total 825 694 16 62

Table 3.2.2 Employment and vacancies by salary band as on 31 March 2016

SALARY BAND No. of posts on approved

Establishment

No. of posts filled

% Vacancy

Rate

No. of posts filled additional to the establishment

Lower skilled (Levels 1-2) 43 41 5 31

Skilled (Levels 3-5) 101 84 17 19

Highly skilled production (Levels 6-8) 429 363 15 5

Highly skilled supervision (Levels 9-12) 202 163 19 5

MEC & Senior management (Levels 13-16) 50 43 14 2


Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2016

138

Occupations No. of posts on

approved Establishment

No. of posts filled

% Vacancy

Rate

No. of posts filled additional to the establishment

ADMINISTRATIVE RELATED 162 134 17 4

ADVOCATES 5 4 20 0

CLEANERS IN OFFICES WORKSHOPS HOSPITALS ETC. 45 41 9 0

COMMUNITY DEVELOPMENT WORKERS 293 274 7 0

COMPUTER PROGRAMMERS. 6 3 50 0

COMPUTER SYSTEM DESIGNERS AND ANALYSTS. 1 1 0 0

FINANCIAL AND RELATED PROFESSIONALS 5 3 40 0

FINANCIAL CLERKS AND CREDIT CONTROLLERS 13 10 23 0

HEAD OF DEPARTMENT/CHIEF EXECUTIVE OFFICER 1 1 0 0

HUMAN RESOURCES & ORGANISAT DEVELOPM & RELATE PROF 21 11 48 0

HUMAN RESOURCES CLERKS 1 1 0 0

HUMAN RESOURCES RELATED 0 0 0 1

INFORMATION TECHNOLOGY RELATED 4 4 0 0

LANGUAGE PRACTITIONERS INTERPRETERS & OTHER COMMUN 4 3 25 0

LIBRARIANS AND RELATED PROFESSIONALS 1 1 0 0

LIBRARY MAIL AND RELATED CLERKS 8 6 25 0

MESSENGERS PORTERS AND DELIVERERS 17 11 35 0

OTHER ADMINISTRAT & RELATED CLERKS AND ORGANISERS 26 24 8 43

OTHER ADMINISTRATIVE POLICY AND RELATED OFFICERS 56 34 39 5

OTHER INFORMATION TECHNOLOGY PERSONNEL. 68 53 22 6

OTHER OCCUPATIONS 1 1 0 0

PROFESSIONAL NURSE 1 1 0 0

SECRETARIES & OTHER KEYBOARD OPERATING CLERKS 33 28 15 1

SECURITY OFFICERS 4 4 0 0

SENIOR MANAGERS 48 41 15 2

STATISTICIANS AND RELATED PROFESSIONALS 1 0 100 0


3.3. Job Evaluation

Table 3.3.1 Job Evaluation by Salary band for the period 1 April 2015 and 31 March 2016

139

Salary band Number of posts

on approved

establishment

Number of

Jobs

Evaluated

% of posts

evaluated

by salary

bands

Posts Upgraded Posts downgraded

Number % of posts

evaluated

Number % of posts

evaluated

Lower Skilled

(Levels1-2)

0 0 0 0 0 0 0

Skilled (Levels 3-5) 0 0 0 0 0 0 0

Highly skilled

production (Levels

6-8)

0 0 0 0 0 0 0

Highly skilled

supervision

(Levels 9-12)

0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

Senior Management

Service Band B

0 0 0 0 0 0 0

Senior Management

Service Band C

0 0 0 0 0 0 0

Senior Management

Service Band D

0 0 0 0 0 0 0

Total 0 0 0 0 0 0 0

140

Table 3.3.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2015 and 31

March 2016

Beneficiary African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability 0

Table 3.3.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2015 and 31

March 2016

Occupation Number of employees Job evaluation level Remuneration level Reason for deviation

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

Percentage of total employed

Table 3.3.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2015 and 31

March 2016

Beneficiary African Asian Coloured White Total

Female N/A N/A N/A N/A N/A

Male N/A N/A N/A N/A N/A

Total N/A N/A N/A N/A N/A

Employees with a disability N/A N/A N/A N/A N/A

141

a. Job Evaluation

Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2015 and 31 March 2016

Salary band Number of

posts on

approved

establishment

Number of

Jobs

Evaluated

% of posts

evaluated

by salary

bands


Number % of posts

evaluated

Number % of posts

evaluated

Lower Skilled

(Levels1-2)

0 0 0 0 0 0 0

Skilled (Levels 3-5) 0 0 0 0 0 0 0

Highly skilled

production (Levels

6-8)

0 0 0 0 0 0 0

Highly skilled

supervision

(Levels 9-12)

0 0 0 0 0 0 0

Senior

Management

Service Band A

0 0 0 0 0 0 0

Senior

Management

Service Band B

0 0 0 0 0 0 0

Senior 0 0 0 0 0 0 0

Total Number of Employees whose remuneration exceeded the grade determined by job evaluation in

2014/15 None

142

Salary band Number of

posts on

approved

establishment

Number of

Jobs

Evaluated

% of posts

evaluated

by salary

bands


Number % of posts

evaluated

Number % of posts

evaluated

Management

Service Band C

Senior

Management

Service Band D

0 0 0 0 0 0 0

Total 0 0 0 0 0 0 0

Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2015

and 31 March 2016

Gender African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a disability

143

Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April

20YY and 31 March 20ZZ

Occupation Number of

employees

Job evaluation level Remuneration

level

Reason for deviation

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

Total number of employees whose salaries exceeded the level determined by job

evaluation

None

Percentage of total employed

Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April

20YY and 31 March 20ZZ

Gender African Asian Coloured White Total

Female N/A N/A N/A N/A N/A

Male N/A N/A N/A N/A N/A

Total N/A N/A N/A N/A N/A

Employees with a disability N/A N/A N/A N/A N/A

Total number of Employees whose salaries exceeded the grades determine by job evaluation None

144

b. Employment Changes

Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2015 and 31 March 2016

Service Band

Total employees

as on 1 April 2015

Appointments Transfers into the

Department Terminations

Transfers out of the

Department

Turnover rate

Lower skilled (Levels 1-2) 24 0

Skilled (Levels 3-5) 96 9 1 5 1 6

Highly skilled production (Levels 6-8) 371 13 6 9 1 3

Highly skilled supervision (Levels 9-12) 150 12 2 8 5 9

Senior Management Service Band A (Level 13) 24 4 1 1 1 8

Senior Management Service Band B (Level 14) 5 2 0

Senior Management Service Band C (Level 15) 1 1 0

MEC & Senior Management Service Band D (Level 16) 1 1 0

Contracts 44 65 49 111

Periodical Remuneration 0

Abnormal Appointment 1 1 1 100

TOTAL 717 108 10 73 8 11

145

Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2015 and 31 March 2016

Occupation

Total employees as

on 1 April 2015

Appointments Transfers into

the Department

Terminations Transfers out

of the Department

Turnover rate

ADMINISTRATIVE RELATED 361 15 2 11 4 4

ADVOCATES 5 0

AGRICULTURE RELATED 1 0

BUS AND HEAVY VEHICLE DRIVERS 1 0

CLEANERS IN OFFICES WORKSHOPS HOSPITALS ETC. 45 2 4

COMMUNICATION AND INFORMATION RELATED 9 1 11

COMMUNITY DEVELOPMENT WORKERS 10 0

COMPUTER PROGRAMMERS. 3 1 0

ENGINEERING SCIENCES RELATED 2 0

FINANCE AND ECONOMICS RELATED 1 0

FINANCIAL AND RELATED PROFESSIONALS 4 1 2 1 25

FINANCIAL CLERKS AND CREDIT CONTROLLERS 3 1 1 33

GENERAL LEGAL ADMINISTRATION & REL. PROFESSIONALS 0 1 0

HEAD OF DEPARTMENT/CHIEF EXECUTIVE OFFICER 0 1 0

HUMAN RESOURCES & ORGANISAT DEVELOPM & RELATE PROF 13 2 15

HUMAN RESOURCES CLERKS 8 0

HUMAN RESOURCES RELATED 10 1 1 10

INFORMATION TECHNOLOGY RELATED 7 0

LANGUAGE PRACTITIONERS INTERPRETERS & OTHER COMMUN 3 1 0

LIBRARIANS AND RELATED PROFESSIONALS 0 1 0

LIBRARY MAIL AND RELATED CLERKS 6 0

LIGHT VEHICLE DRIVERS 1 0

MESSENGERS PORTERS AND DELIVERERS 7 2 4 57

MOTOR VEHICLE DRIVERS 2 0

OTHER ADMINISTRAT & RELATED CLERKS AND ORGANISERS 58 57 27 47

OTHER ADMINISTRATIVE POLICY AND RELATED OFFICERS 25 4 2 8

OTHER INFORMATION TECHNOLOGY PERSONNEL. 50 10 2 10 1 22

OTHER OCCUPATIONS 1 0

PHOTOGRAPHIC LITHOGRAPHIC AND RELATED WORKERS 1 0

PROFESSIONAL NURSE 1 0

RISK MANAGEMENT AND SECURITY SERVICES 1 0

SECRETARIES & OTHER KEYBOARD OPERATING CLERKS 38 2 2 4 1 13

146

Occupation

Total employees as

on 1 April 2015

Appointments Transfers into

the Department

Terminations Transfers out

of the Department

Turnover rate

SECURITY OFFICERS 3 0

SENIOR MANAGERS 36 12 1 6 1 19

STATISTICIANS AND RELATED PROFESSIONALS 1 1 100

GRAND TOTAL 717 108 10 73 8 11

Table 3.5.3 Reasons why staff left the department for the period 1 April 2015 and 31 March 2016

Resign Type Description Total % of Total

Resignations % of Total Employment

1 RETIREMENT - SECTION 16(1)(A) PUBLIC SERVICE ACT 3 4 0

2 DECEASED 4 6 1

3 RESIGNATION 33 45 5

30 DISMISSAL (DISCHARGED) 2 3 0

8 CONTRACT EXPIRY 31 43 4

TOTAL 73 100 10

99 TRANSFER OUT OF PERSAL 6 7 1

INTER DEPARTMENTAL TRANSFER (WITHIN NWPG) 2 3 0

TOTAL INCLUDING TRANSFERS OUT OF PERSAL 81 100 11

147

Table 3.5.4 Promotions by critical occupation

OCCUPATION

Total employees

as on 1 April 2015

TOTAL PROMOTIONS

Salary Level Promotions

as a % of Employment

TOTAL PAY PROGRESSION

Notch progressions as a % of employment

ADMINISTRATIVE RELATED 361 5 1 297 82

ADVOCATES 5 0 0 3 60

AGRICULTURE RELATED 1 0 0 1 100

BUS AND HEAVY VEHICLE DRIVERS 1 0 0 0 0

CLEANERS IN OFFICES WORKSHOPS HOSPITALS ETC. 45 0 0 46 102

COMMUNICATION AND INFORMATION RELATED 9 0 0 8 89

COMMUNITY DEVELOPMENT WORKERS 10 0 0 0 0

COMPUTER PROGRAMMERS. 3 0 0 2 67

ENGINEERING SCIENCES RELATED 2 0 0 2 100

FINANCE AND ECONOMICS RELATED 1 0 0 1 100

FINANCIAL AND RELATED PROFESSIONALS 4 0 0 4 100

FINANCIAL CLERKS AND CREDIT CONTROLLERS 3 0 0 2 67

HUMAN RESOURCES & ORGANISAT DEVELOPM & RELATE PROF 13 0 0 10 77

HUMAN RESOURCES CLERKS 8 0 0 7 88

HUMAN RESOURCES RELATED 10 0 0 8 80

INFORMATION TECHNOLOGY RELATED 7 0 0 4 57

LANGUAGE PRACTITIONERS INTERPRETERS & OTHER COMMUN 3 0 0 1 33

LIBRARY MAIL AND RELATED CLERKS 6 0 0 5 83

LIGHT VEHICLE DRIVERS 1 0 0 1 100

MESSENGERS PORTERS AND DELIVERERS 7 0 0 8 114

MOTOR VEHICLE DRIVERS 2 0 0 2 100

OTHER ADMINISTRAT & RELATED CLERKS AND ORGANISERS 58 0 0 25 43

OTHER ADMINISTRATIVE POLICY AND RELATED OFFICERS 25 3 12 23 92

OTHER INFORMATION TECHNOLOGY PERSONNEL. 50 3 6 26 52

OTHER OCCUPATIONS 1 0 0 0 0

PHOTOGRAPHIC LITHOGRAPHIC AND RELATED WORKERS 1 0 0 4 400

PROFESSIONAL NURSE 1 0 0 0 0

RISK MANAGEMENT AND SECURITY SERVICES 1 0 0 1 100

SECRETARIES & OTHER KEYBOARD OPERATING CLERKS 38 0 0 32 84

148

OCCUPATION

Total employees

as on 1 April 2015

TOTAL PROMOTIONS

Salary Level Promotions

as a % of Employment

TOTAL PAY PROGRESSION

Notch progressions as a % of employment

SECURITY OFFICERS 3 1 33 3 100

SENIOR MANAGERS 36 1 3 20 56

STATISTICIANS AND RELATED PROFESSIONALS 1 0 0 0 0

TOTAL 717 13 2 546 76

Table 3.5.5 Promotions by salary band for the period 1 April 2015 and 31 March 2016

SALARY BAND Total employees

as on 1 April 2015

PROMOTIONS TO ANOTHER

SALARY LEVEL

Salary bands promotions as

a % of employees by

salary level

PAY PROGRESSION

Notch progressions aa % of employees by salary band

Lower skilled (Levels 1-2) 24 0 0 9 38

Skilled (Levels 3-5) 96 1 1 87 91

Highly skilled production (Levels 6-8) 371 5 1 318 86

Highly skilled supervision (Levels 9-12) 150 6 4 109 73

Senior management (Levels 13-16) 31 1 3 22 71

Contracts 44 0 0 1 2

Periodical Remuneration 0 0 0 0 0

Abnormal Appointment 1 0 0 0 0

TOTAL 717 13 2 546 76

149

c. Employment Equity

Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on31

March 2016

Occ. Categories

MALE FEMALE Grand Total

AFRICAN COLOURED INDIAN WHITE AFRICAN COLOURED INDIAN WHITE

CLERKS 47 0 0 0 75 2 1 2 127

CRAFT AND RELATED TRADES WORKERS 1 0 0 0

0 0 0 1

ELEMENTARY OCCUPATIONS 6 0 0 0 42 0 0 0 48

LEGISLATORS,SENIOR OFFICIALS,MANAGERS 25 0 1 1 14 0 1 1 43

NON-PERMANENT WORKER 1 0 0 0

0 0 0 1

PLANT AND MACHINE OPERATORS AND ASSEMBLERS

3 0 0 0 1 0 0 0 4

PROFESSIONALS 62 2 2 7 47 2 0 1 123

SERVICE AND SALES WORKERS 2 0 0 0 3 0 0 0 5

TECHNICIANS, ASSOCIATE PROFESSIONALS 171 3 0 0 222 4 0 4 404

TOTAL 318 5 3 8 404 8 2 8 756

Employees with disabilities 8 1 5 14

150

Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March

2016

OCCUPATIONAL BANDS

MALE FEMALE

Grand Total

AFRICAN COLOURED INDIAN WHITE AFRICAN COLOURED INDIAN WHITE

MEC & Top Management (Levels 15-16) 3 0 0 0 1 0 0 0 4

Senior Management (Levels 13-14) 14 1 1 3 10 0 1 2 32

Professionally qualified (Levels 9-12) 82 3 2 3 65 3 0 3 161

Skilled technical (Levels 6-8) 165 1 0 2 212 3 0 0 383

Semi-Skilled (Levels 3-5) 23 0 0 0 66 2 1 2 94

Unskilled (Levels 1-2) 1 0 0 0 23 0 0 0 24

Contracts 29 0 0 0 27 0 0 1 57

Periodical Remuneration 0 0 0 0 0 0 0 0 0

Abnormal Appointment 1 0 0 0 0 0 0 0 1

Total 318 5 3 8 404 8 2 8 756

Employees with disabilities 8 1 5 14

Table 3.6.3 Recruitment for the period 1 April 2015 to 31 March 2016

OCCUPATIONAL BANDS MALE FEMALE

Grand Total AFRICAN COLOURED INDIAN WHITE AFRICAN COLOURED INDIAN WHITE

Top Management (Levels 15-16) 1 0 0 0 1 0 0 0 2






Contracts 28 0 0 1 35 0 0 1 65



Total 50 0 0 1 53 1 0 3 108

TRANSFERS TO THE DEPARTMENT 3 7 10

151



TOTAL INCLUDING TRANSFERS TO DEPARTMENT

53 0 0 1 60 1 0 3 118

Employees with disabilities 1 1 2

Table 3.6.4 Promotions









Contracts 0 0 0 0 0 0 0 0 0

Total 7 0 0 0 6 0 0 0 13

Employees with disabilities 0 0 0 0 0 0 0 0 0

152

Table 3.6.5 Terminations for the period 1 April 2015 to 31 March 2016





Professionally qualified (Levels 9-12)

6 0 0 0 2 0 0 0 8




Contracts 21 0 0 1 26 0 0 1 49



Total Terminations 37 0 0 1 34 0 0 1 73

TRANSFER OF A PERSON TO ANOTHER PERSAL BUREAU

2 0 0 0 4 0 0 0 6

INTER DEPARTMENTAL TRANSFER (WITHIN NWPG)

1 1 0 0 0 0 0 0 2

TOTAL INCLUDING TRANSFERS OUT OF PERSAL

40 1 0 1 38 0 0 1 81

Employees with disabilities 1 1

153

Table 3.6.6 Disciplinary action for the period 1 April 2015 to 31 March 2016

Disciplinary action Male Female

African Coloured Indian White African Coloured Indian White Total

Final Written

Warning/Written

warning

11

0

1

0

6

0

0

0

18

Table 3.6.7 Skills development for the period 1 April 2015 to 31 March 2016

Occupational category Male Female Total

African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers

7 1 2 2 5 0 1 3 20

Professionals 65 4 5 3 115 3 0 5 200

Technicians and associate professionals

89 8 0 5 91 6 0 3 202

Clerks 84 0 0 5 91 5 3 0 188

Service and sales workers 0 0 0 0 0 0 0 0 0

Skilled agriculture and fishery workers

0 0 0 0 0 0 0 0 0

Craft and related trades workers

0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers

0 0 0 0 0 0 0 0 0

Elementary occupations 8 0 0 0 45 0 0 0 53

Total 253 13 7 15 347 14 4 11 663

Employees with disabilities

7 0 0 0 5 0 0 0 0

154

Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2015

SMS Level Total number of

funded SMS posts

Total number of SMS

members

Total number of

signed performance

agreements

Signed performance

agreements as % of total

number of SMS members

Director-General/

Head of

Department

1 0 0

Salary Level 16 1 1 1 100



Salary Level 13 33 28 28 100

Total 50 37 37 100

Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2016

Reasons

Not Applicable

Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2016

Reasons

Not Applicable

d. Performance Rewards

Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2015 to 31 March 2016

155

RACE GENDER

Beneficiary Profile Cost

No. of Beneficiaries

No. of Employees as at 31 March

2016

% of total within group

Cost Average cost per

employee

AFRICAN FEMALE 19 404 5 R 342,544.83 R 18,028.70

MALE 11 317 4 R 224,405.43 R 20,400.50

COLOURED FEMALE 0 8 0 R 0.00 R 0.00

MALE 0 5 0 R 0.00 R 0.00

INDIAN FEMALE 0 2 0 R 0.00 R 0.00

MALE 0 3 0 R 0.00 R 0.00

WHITE FEMALE 0 8 0 R 0.00 R 0.00

MALE 0 8 0 R 0.00 R 0.00

TOTAL 30 755 4 R 566,950.26 R 18,898.30

EMPLOYEES WITH DISABILITY 0 14 0 R 0.00 R 0.00

Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2015 to 31 March

2016,

SALARY BANDS


Total cost as a % of the total personnel

expenditure No. of

Beneficiaries

No. of Employees

as at 31 March 2016

% of total within salary bands

Total Cost Average cost per

employee

Lower skilled (Levels 1-2) 0 55 0 R 0.00 R 0.00 0

Skilled (Levels 3-5) 10 104 10 R 84,131.61 R 8,413.20 0

Highly skilled production (Levels 6-8) 8 383 2 R 138,960.66 R 17,370.10 0

Highly skilled supervision (Levels 9-12) 12 165 7 R 343,857.99 R 28,654.80 0

Total 30 707 4 R 566,950.26 R

18,898.30 0

156

Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2015 to 31 March 2016

Occupation



No. of Employees as at 31 March 2016

% of total within

occupation Total Cost

Average Cost per

employee

ADMINISTRATIVE RELATED 10 373 3 R 311,044.14 R 31,104.40

ADVOCATES 0 4 0 0 R 0.00

AGRICULTURE RELATED 0 1 0 0 R 0.00

BUS AND HEAVY VEHICLE DRIVERS 0 1 0 0 R 0.00

CLEANERS IN OFFICES WORKSHOPS HOSPITALS ETC. 7 43 16 R 46,861.56 R 6,694.50

COMMUNICATION AND INFORMATION RELATED 1 8 13 R 12,190.50 R 12,190.50

COMMUNITY DEVELOPMENT WORKERS 0 10 0

0 R 0.00

COMPUTER PROGRAMMERS. 0 4 0 0 R 0.00

ENGINEERING SCIENCES RELATED 0 2 0 0 R 0.00

FINANCE AND ECONOMICS RELATED 0 1 0 0 R 0.00

FINANCIAL AND RELATED PROFESSIONALS 0 5 0 0 R 0.00

FINANCIAL CLERKS AND CREDIT CONTROLLERS 0 3 0 0 R 0.00

HEAD OF DEPARTMENT/CHIEF EXECUTIVE OFFICER 0 1 0 0 R 0.00

HUMAN RESOURCES & ORGANISAT DEVELOPM & RELATE PROF 1 11 9 R 21,210.60 R 21,210.60

HUMAN RESOURCES CLERKS 0 8 0 R 0.00

HUMAN RESOURCES RELATED 1 10 10 R 24,374.70 R 24,374.70

INFORMATION TECHNOLOGY RELATED 0 6 0 0 R 0.00

157

Occupation



No. of Employees as at 31 March 2016

% of total within

occupation Total Cost

Average Cost per

employee

LANGUAGE PRACTITIONERS INTERPRETERS & OTHER COMMUN 0 2 0 0 R 0.00

LIBRARIANS AND RELATED PROFESSIONALS 0 1 0 0 R 0.00

LIBRARY MAIL AND RELATED CLERKS 0 5 0 0 R 0.00

LIGHT VEHICLE DRIVERS 0 1 0 0 R 0.00

MESSENGERS PORTERS AND DELIVERERS 0 5 0 0 R 0.00

MOTOR VEHICLE DRIVERS 0 2 0 0 R 0.00

OTHER ADMINISTRAT & RELATED CLERKS AND ORGANISERS 3 76 4 R 49,193.25 R 16,397.80

OTHER ADMINISTRATIVE POLICY AND RELATED OFFICERS 1 30 3 R 21,210.60 R 21,210.60

OTHER INFORMATION TECHNOLOGY PERSONNEL. 2 58 3 R 42,421.20 R 21,210.60

OTHER OCCUPATIONS 0 1 0 0 R 0.00

PHOTOGRAPHIC LITHOGRAPHIC AND RELATED WORKERS 0 1 0 0 R 0.00

PROFESSIONAL NURSE 0 1 0 0 R 0.00

RISK MANAGEMENT AND SECURITY SERVICES 0 1 0 0 R 0.00

SECRETARIES & OTHER KEYBOARD OPERATING CLERKS 3 35 9 R 36,189.12 R 12,063.00

SECURITY OFFICERS 1 4 25 R 2,254.59 R 2,254.60

SENIOR MANAGERS 41 0 R 0.00

TOTAL 30 755 4 R 566,950.26 R 18,898.30

158

Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2015 to 31

March 2016

SALARY BANDS


Total cost as a % of the total personnel

expenditure

No. of Beneficiarie

s

No. of Employees as at 31

March 2016

% of total

within salary bands

Total Cost

Average cost per

employee

Senior Management Service Band A (Level 13) 0 30 0 R 0.00 R 0.00 0

Senior Management Service Band B (Level 14) 0 9 0 R 0.00 R 0.00 0

Senior Management Service Band C (Level 15) 0 6 0 R 0.00 R 0.00 0

MEC & Senior Management Service Band D (Level 16) 0 3 0 R 0.00 R 0.00 0

Total 0 48 0 R 0.00 R 0.00 0

159

e. Foreign Workers

.

Table 3.9.1 Foreign workers by salary band for the period 1 April 2015 and 31 March 2016

SALARY BANDS

1 April 2015 31 March 2016 Change

Number % of total

Number % of total

Number % of total

Lower skilled (Levels 1-2) 0 0 0 0 0 0

Skilled (Levels 3-5) 0 0 0 0 0 0

Highly skilled production (Levels 6-8) 0 0 0 0 0 0

Highly skilled supervision (Levels 9-12) 0 0 0 0 0 0

Senior & Top Management (Level 13-16) 1 50 1 100 0 0

Contract (Levels 1-2) 0 0 0 0 0 0




Contract (Levels 13-16) 1 50 0 0 -1 100

Periodical Remuneration 0 0 0 0 0 0

Abnormal Appointment 0 0 0 0 0 0

Grand Total 2 100 1 100 -1 100

160

Table 3.9.2 Foreign workers by major occupation for the period 1 April 2015 and 31 March 2016

Occupation

1 April 2015 31 March 2016 Change

Number % of total

Number % of total

Number % of total

ADMINISTRATIVE RELATED 1 50 1 100 0 0

SENIOR MANAGERS 1 50 0 -1 100

Grand Total 2 100 1 100 -1 100

f. Leave utilisation

Table 3.10.1 Sick leave for the period 1 January 2015 to 31 December 2015

SALARY BANDS Total days

% days with

medical certificatio

n

No. of employees using sick

leave

% of total employees using sick

leave

Average days per employe

e

Estimated Cost

Lower skilled (Levels 1-2) 158 88 45 12 4 R 57,101.09

Skilled (Levels 3-5) 468 81 71 19 7 R 294,142.04

Highly skilled production (Levels 6-8) 881 86 130 34 7 R 917,902.20

Highly skilled supervision (Levels 9-12) 724 83 107 28 7 R 1,403,967.16

Senior management (Levels 13-16) 186 88 26 7 7 R 680,782.18

Grand Total 2417 84 379 100 6 R 3,353,894.67

161

Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2015 to 31 December 2015

SALARY BANDS Total Days

% days with

medical certification

No. of employees

using Disability

Leave

% of total employees

using Disability

Leave

Average days per employee

Estimated Cost

Lower skilled (Levels 1-2) 21 100 5 18 4 R 8,702.07

Skilled (Levels 3-5) 252 100 9 32 28 R 158,350.76

Highly skilled production (Levels 6-8) 145 100 7 25 21 R 159,760.62

Highly skilled supervision (Levels 9-12) 110 100 6 21 18 R 263,784.13

Senior management (Levels 13-16) 68 100 1 4 68 R 244,282.52

Grand Total 596 100 28 100 21 R 834,880.10

Table 3.10.3 Annual Leave for the period 1 January 2015 to 31 December 2015

SALARY BANDS Total days Number of Employees using Annual Leave


Lower skilled (Levels 1-2) 776 85 9

Skilled (Levels 3-5) 2372 114 21

Highly skilled production (Levels 6-8) 6358 386 16

Highly skilled supervision (Levels 9-12) 3666 166 22

Senior management (Levels 13-16) 809 42 19

Grand Total 13981 793 18

162

Table 3.10.4 Capped leave for the period 1 January 2015 to 31 December 2015

SALARY BANDS Total days of capped

leave taken

No. of Employees

using capped leave


Average capped leave per

employee as at 31 March 2016

Total number of capped leave available at 31 March 2016

Lower skilled (Levels 1-2) 0 0 0 2 103.57

Skilled (Levels 3-5) 17 3 6 16 1706.47

Highly skilled production (Levels 6-8) 0 0 0 8 2898.65

Highly skilled supervision (Levels 9-12) 10 3 3 15 2453.38

Senior management (Levels 13-16) 8 1 8 14 644.42

Grand Total 35 7 5 10 7806.49

Table 3.10.5 Leave pay-outs for the period 1 January 2015 and 31 December 2015

Reason Total

Amount No. of

Employees Average payment per employee

Leave pay-out for 2015/16 due to non-utilisation of leave for the previous cycle (LEAVE DISCOUNTING (UNUSED LEAVE CREDITS))

R 221,770.26 6 R 36,962.00

Capped leave pay-outs on termination of service for 2015/16 (LEAVE GRATUITY )

R 0.00 0 R 0.00

Current leave pay-out on termination of service for 2015/16 (LEAVE DISCOUNTING \ GRATUITY (UNUSED LEAVE CR) )

R 712,707.47 52 R 13,706.00

Grand Total R 934,477.73 58 R 16,112.00

163

g. HIV/AIDS & Health Promotion Programmes

Table 3.11.1 Steps taken to reduce the risk of occupational exposure

Units/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)

Key steps taken to reduce the risk

None

Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes

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.

x MS AD Michael Director : HRM

2. Does the department have a dedicated unit or has it designated specific staff members to promote the 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.

x The Department has an internal Employee Wellness unit, which is responsible for implementing the Employee Health & Wellness strategy for the Public service that is inclusive of the workplace HIV and AIDS and TB management. There is a Deputy Director (Vacant), Assistant Director, Professional Nurse and Administrative Officer who are supported by the Wellness Buddy/Peer Educators Network. The unit has been allocated 0,05% of the personnel budget since 2014/2015 as per EXCO resolution

3. Has the department introduced an Employee Assistance or x The Department is implementing the

164


Health Promotion Programme for your employees? If so, indicate the key elements/services of this Programme.

Employee Health & Wellness strategy for the Public service that has four priority areas, via;

HIV and AIDS Management to provide among others prevention and care and support services to employees,

Health and Productivity Management to provide among others general disease management , health education and promotion to employees,

Safety, Health, Environment, Risk and Quality Assurance management to promote among others occupational health and safety issues among employees and

Wellness Management to promote individual and organisational wellness.

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.

x The Wellness Buddies structure serves as a committee for all EHW activities including HIV and AIDS and TB Management. Their appointment letters were renewed.

5. Has the department reviewed its employment policies and practices 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.

x The Department is guided among others by the following policy frameworks in its employment practices to ensure that there is no unfair discrimination against employees on the basis of their HIV status :

The Public Service Regulation as amended,

Guidelines on the Management of HIV and AIDS in the workplace , and

The HIV and AIDS & TB Management Policy for the Public Service.

Approved OOP HIV & AIDS and TB

165


Management 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.

x The Disciplinary code and procedure for the Public service as well as the following elements as stated in the Departmental HIV and AIDS & TB Management policy:

Non – discrimination

Confidentiality and disclosure

Ethical Behaviour

7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have you achieved.

x The Department promoted and provided HIV counselling and testing, onsite, during the financial year under review 241 employees tested at the onsite clinic and know their HIV status.

8. Has the department developed measures/indicators to monitor & evaluate the impact of its health promotion programme? If so, list these measures/indicators.

x The following indicators are used to monitor and to evaluate the health promotion programme and its impact:

The number of educational material distributed.

The number of employees attending health promotion information sessions.

The number of employees using onsite clinic.

The number of employees taking part in health screenings.

The monthly Wellness Buddy reports and meetings.

The beneficiaries feedback using evaluation forms (only for clinic at this stage)

The number of employees participating in physical health promotion.

166

h. Labour Relations

Table 3.12.1 Collective agreements

Total number of Collective agreements None

Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2015 and 31 March 2016

Outcomes of disciplinary hearings Number % of total

Correctional counselling 0 0

Verbal warning 0 0

Written warning 7 46.66%

Final written warning 4 26.66%

Suspended without pay 2 13.33%

Fine 0 0

Demotion 0 0

Dismissal 2 13.33%

Not guilty 0 0

Case withdrawn 0 0

Total 15 99.98%

167

Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2015 and 31 March 2016

Type of misconduct Number % of total

Insubordination 1 8.33%

Fraud 0 0

Gross Negligence 3 25%

Dereliction of Duty 3 25%

Incitement 1 8.33%

Wrongful appointment 3 25%

Misuse of State Property 1 8.33%

Total 12 99.99%

Table 3.12.4 Grievances logged for the period 1 April 2015 and 31 March 2016

Grievances Number % of Total

Number of grievances resolved 25 83.33%

Number of grievances not resolved 5 16.66%

Total number of grievances lodged 30 99.99%

Table 3.12.5 Disputes logged with Councils for the period 1 April 2015 and 31 March 2016

Disputes Number % of Total

Number of disputes upheld 1 16.66%

Number of disputes dismissed 5 83.33%

Total number of disputes lodged 6 99.99%

168

Table 3.12.6 Strike actions for the period 1 April 2015 and 31 March 2016

Total number of persons working days lost 0

Total costs working days lost 0

Amount (R’000) recovered as a result of no work no pay 0

Table 3.12.7 Precautionary suspensions for the period 1 April 2015 and 31 March 2016

Number of people suspended 2

Number of people whose suspension exceeded 30 days 1

Average number of days suspended 5 Months

Cost (R’000) of suspension R 474 972.50

i. Skills development

Table 3.13.1 Training needs identified for the period 1 April 2015 and 31 March 2016

Occupational category Gender Number of

employees as

at 1 April 2014

Training needs identified at start of the reporting period

Learnerships Skills

Programmes &

other short

courses

Other forms

of training

Total


Female 14 32 32

Male 28 54 54

Professionals Female 88 264 264

Male 69 207 207


Female 211 633 633

Male

165 495 495

169


employees as

at 1 April 2014

Training needs identified at start of the reporting period

Learnerships Skills

Programmes &

other short

courses

Other forms

of training

Total

Clerks Female 47 0 141 0 141

Male 23 0 69 0 69

Service and sales workers Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupations Female 45 0 135 0 135

Male 8 0 24 0 24

Sub Total Female 405 0 1094 0 1094

Male 294 0 849 0 849

Total 699 0 1943 0 1943

170

Table 3.13.2 Training provided for the period 1 April 2015 and 31 March 2015


employees as

at 1 April 2014

Training provided within the reporting period

Learnerships Skills

Programmes &

other short

courses

Other forms

of training

Total


Female 14 0 8 0 8

Male

28 0 12 0 12

Professionals Female 88 0 123 0 123

Male 69 0 77 0 77


Female 211 0 102 0 102

Male

165 0 100 0 100

Clerks Female 47 41 58 0 99

Male

23 39 50 0 89

Service and sales workers

Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 0 0 0 0 0


Female 0 0 0 0 0

Male 0 0 0 0 0

171


employees as

at 1 April 2014

Training provided within the reporting period

Learnerships Skills

Programmes &

other short

courses

Other forms

of training

Total


Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupations Female 45 0 20 0 20

Male 8 0 10 0 10

Sub Total Female 405 0 706 0 706

Male 294 0 475 0 475

Total 1397 0 1181 0 1181

j. Injury on duty

Table 3.14.1 Injury on duty for the period 1 April 2015 and 31 March 2016

Nature of injury on duty Number % of total

MOTOR VEHICLE ACCIDENT - DRIVER 2 40

MOTOR VEHICLE ACCIDENT - PASSENGER 1 20

OTHER INJURIES 2 40

Total 5 100

172

3.4. Utilisation of Consultants

Table 3.13.1 Report on consultant appointments using appropriated funds for the period 1 April 2015 and 31 March 2016

Project Title Total number of consultants

that worked on project

Duration (work

days)

Contract value in Rand

Events Management 1 (Megaworks T/A Showtime) 36 months R200 000 and above

Design and implementation of a monitoring and

evaluation system

1(Core project management) 36 months R7 183 368

Project Management 1(Bunengi origin) (Livifusion) 36 months 1.55% per project

Improve information gathering purpose of

effective planning and evaluation or impacts of

delivery in the NW province.

1 (Merlio Capital) 36 months Per invoice

Table 3.13.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the

period 1 April 2015 and 31 March 2016

Project Title Percentage ownership

by HDI groups

Percentage

management by HDI

groups

Number of Consultants

from HDI groups that work

on the project

Events Management 100% 100% 2

Design and implementation of a monitoring and

evaluation system

100% 100% 7

Project Management 100% 100% 2

Improve information gathering purpose of

effective planning and evaluation or impacts of

delivery in the NW province.

None None None

173

Table 3.13.3 Report on consultant appointments using Donor funds for the period 1 April 2015 and 31 March 2016

Project Title Total Number of

consultants that worked on

project

Duration

Work days

Donor and Contract value in Rand

Not Applicable Not Applicable Not Applicable Not Applicable

Table 3.13.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1

April 2015 and 31 March 2016

Project Title Percentage ownership by HDI

groups

Percentage management by HDI

groups

Number of Consultants from

HDI groups that work on the

project

Not Applicable Not Applicable Not Applicable Not Applicable

174

PART E: FINANCIAL INFORMATION

175

1. REPORT OF THE ACCOUNTING OFFICER

This Annual Report is a reflection of how the North West Office of the Premier has performed in the implementation of the Annual Performance Plan and the realization of the vision of a united, non-racial, non-sexiest and prosperous democratic society for the people of Bokone-Bophirima to uplift the quality of life. The Office has been mandated by the Legislature to provide leadership, direction, support, monitoring, evaluation and intervention in the Province. The Office also strives to ensure that the Provincial government is applying sound management principles and practices. This includes the rendering of transversal corporate services to establish and maintain uniform procedures and standards in the province, as well as internal corporate services to achieve administrative excellence. The promotion of sustainable Governance and Intergovernmental relations is also one of the key performance areas. The Office expended 97.3% of the voted funds for the year under review. The notes to the appropriation statement reflect in more detail on expenditure patterns. The objectives of the Office were satisfactorily achieved in this fiscal year. The annual financial statements for the year ended 31 March 2016 are prepared in line with the three programmes of the Office. The various programmes have provided narrative of the significant achievements of targets for the predetermined objectives, for the financial year under review. The narrative also provides a synopsis on how the achievement of targets has contributed towards achieving the strategic goals of the Office, which will invariably impact on the strategic priorities of government. The Annual Report also provides a summary of the actual expenditure in comparison to the adjusted appropriation for both the current and previous years. The information has been provided at sub programme level and is in line with the appropriation statement of the audited financial statements. The Population Development Unit was transferred to the Department of Social Development; and the North West Parks and Tourism Board was transferred to the Department of Rural, Environmental and Agricultural Development (READ) and the Department of Tourism respectively, with effect from 1 April 2016.

176

Services The following services are rendered: Executive support to the Premier, Executive Council and other Governance structures on Provincial and Local Government level. Corporate support in the areas of Information Technology, Financial Management, Communications, Legal Services, Security and Human Resource Utilization. Governance support in the areas of Inter-Governmental Relations and Special Programmes Implementation Policy Management and Coordination through Research, Policy Planning, Monitoring and Evaluation, Information Services, Project Management and implementation of the objectives of the of National Development Plan the Province. The Office is responsible for the administration of the North West Provincial Government Bursary scheme. Management of the Provincial Forensic Investigation and Anti-Corruption functions. Overview of the financial results of the Office:

Programme Name 2015/2016 2014/2015

Final Appropriation

Actual expenditure

(Over)/Under expenditure

Final Appropriation

Actual expenditure

(Over)/Under expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Administration 265 695 252 367 13 328 247 344 191 330 56 014

Institutional Development

212 507 205 969 6 538 190 442 189 661 781

Policy and Governance

329 702 327 647 2 055 318 899 307 829 11 070

Total 807 904 785 983 21 921 756 685 688 820 67 865

Outstanding commitments related to the Mahikeng Rebranding, Repositioning and Renewal Plan and Information

Communication Technology contracts

177

Receipts of the Office

The Office’s revenue consisted mainly of recoveries on expenditure relating to prior years and commission on insurance premiums. All revenue collected is paid over to the Provincial Treasury

Debts written off

No debts were written off during the year under review.

Programme Expenditure

During the year under review, the Office received a budget of R 807,904 million, an increase of 6.7 per cent over the allocation for the previous year, which was in line with normal inflationary increases.

In terms of economic classifications, the allocation for Compensation of employees was 32.5 per cent while Capital expenditure was 17 per cent of the Budget. R785, 983 million of this budget, which is 97.3 %, was spent which resulted in under-expenditure of R21, 921 million for the financial year. This was mainly due to the under-expenditure on funds allocated in respect of the Mahikeng Rebranding, Repositioning and Renewal Plan, Consultants and Business advisory services, consumable stationery and transfers to households and non-governmental organisation. A roll-over request for the unspent funds on the Mahikeng Rebranding, Repositioning and Renewal Plan and the Transfer to non-governmental

organisation has been submitted.

178

Expenditure pattern per Program: 2014/15 – 2015/16

Virements

The Office projected overspending on key items of service delivery, necessitating shifting of funds between economic classifications. Unspent funds within the vote were moved to the needy programmes. All virements were duly approved by

the Provincial Treasury in line with Section 43 and 76 (3) of the PFMA

FY 2015/16

PROGRAMME

AVAILABLE BUDGET

ACTUAL EXPENDITURE YEAR

TO DATE

EXPENDTURE % YEAR TO DATE

R’000 R’000

Administration 265 695 252 367 95

Institutional Development 212 507 205 969 97

Policy and Governance 329 702 327 647 99

807 904 785 983 97

FY 2014/15

PROGRAMME

AVAILABLE BUDGET

ACTUAL EXPENDITURE YEAR TO DATE

EXPENDTURE % YEAR TO

DATE

R’000 R’000 Administration 247 344 191 899 78 Institutional Development 190 442 189 647 100 Policy and Governance 318 899 307 731 95 756 685 684 277 90

179

Programmes affected by virements are as shown in the table below:

Future plans of the Office

Future plans of the Office as outlined in the Annual Performance Plan for 2015/16 include:

Rebranding, Repositioning and Renewal of Bokone-Bophirima.

Implementation of Setsokotsane

Strategic Economic Repositioning (Agriculture, Culture and Tourism)

Integrated Ward – Based Planning.

Reconciliation, Healing and Renewal (RHR).

De-listing of North West Provincial Council on Aids as an entity

Growth and Development of Villages, townships and Small Dorpies (VTSD)

FROM

TO

AMOUNT R’000

REASON


Administration 10 882 To cover a shortfall on Compensation of employees and Contractors under Goods and services


Administration 2 435 To cover a shortfall on Compensation of employees

Administration Policy and Governance

10 000 To cover a shortfall on Transfers to Agency that falls within the Office.

Total

23 317

180

Repositioning of the Office of the Premier to 80% Performance Monitoring and Evaluation (PME)

Public Private Partnerships

No Public Private Partnerships were entered into during the year under review.

Entities

Transfers made during the year under review are as follows:

A re Ageng – R 0

No transfers were made to the Non-Governmental Organisation during the year under review

North West Provincial Council on Aids – R 17 658 000

The transfer made was in line with the budget allocation for the entity

North West Parks and Tourism Board – R 188 583 000

An additional amount of R 10 000 000 was allocated to the entity to assist with financial commitments.

Discontinued activities / activities to be discontinued

North West Youth development Trust

No transfers have been made to the entity. The final winding up of the entity will be finalised in the 2016/17 financial year.

181

Awarded Contracts for the period under Review:

Challenges experienced in Supply Chain Management (SCM) and how they were resolved

The Office experienced inadequate implementation of Supply Chain Management processes and shortage of personnel. The SCM compliance checklist and review of policies and procedure were crafted.

Gifts and Donations received in kind from non-related parties.

No Gifts and Donations were received during the financial year under review.

Inventories

The Office is not classified as an inventory-holding institution, as inventory consists of limited amounts of stationery and other office consumables.

Interim Financial Statements

The Office prepared interim financial statements for the first, second and third quarters of the financial year in accordance

with Treasury Instructions.

NO DESCRIPTION BID DESCRIPTION TOTAL BID

PRICE

1 Programme management

services and project

execution.

Programme management

services and project

execution.

R12.8 million

182

Shared Audit Committee and Internal Audit

The Office has a shared Audit Committee and shared Internal Audit units as required by section 76(4) (d) and section 38(1) of the Public Finance Management Act as amended. The North West Provincial Government adopted the shared services

option as provided by paragraph 3.1.1 and 3.2.3 of the Treasury Regulations.

The Office is not aware of any material fact or circumstance, which may have an effect on the understanding of the financial

state of affairs, not addressed elsewhere in this report.

The basic principle underlying the fraud prevention plans is “zero tolerance” for fraud and corruption in the Office of the Premier in particular and the North West Province in general. The current fraud prevention plan was sharpened to curb the emerging fraud and corruption that may threaten the Office of the Premier and the North West Provincial Government. A

Risk Management Committee was established and members were appointed accordingly.

Acknowledgement and Appreciation

I acknowledge the advice and active support of our Executing Authority, Honourable Premier Supra Mahumapelo, in the

formulation of the strategic plan of the Office and throughout the execution of its annual performance plan.

On behalf of the management of the Office, I would like to acknowledge and appreciate the support of all our stakeholders and partners in both the public and private sectors who have, in diverse ways and means, supported the Office in the rollout of the Annual Performance Plan for the year under review.

I also acknowledge the support and active participation of the entire management and staff of the Office in the rollout of the

annual performance plan.

Conclusion

I would like to thank all for the concerted effort in placing the Office in a leading position as well as a display of cohesion in promoting and executing service delivery. Lastly, I would like to thank the leadership for affording me the opportunity to lead the team of the Office of the Premier.

183

ACCOUNTING OFFICERS’S STATEMENT OF RESPONSIBILITY Statement of Responsibility for the Annual Financial statements for the year ended 31 March 2016 To the best of my knowledge and belief, I confirm the following: All information and amounts disclosed throughout the annual report are consistent. The annual report is complete, accurate and is free from any omissions. The Annual report has been prepared in accordance with guidelines on the annual report as issued be National Treasury. The Annual Financial statements (PART E) have been prepared in accordance with the modified cash standard and the relevent frameworks and guidelines issued by the National issued by the National Treasury. The Accounting Officer is reponsible for the preparations of the annual finacial statements and for the judgements made in this information. The Accounting Officer is reponsible for the establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the intergrity and reliability of the performance information, the human resources information and the annual finacial statements. The external auditors are engaged to express an independent opinion on the annual financial statements. In my opinion, the annual report fairly reflects the operations, the performance information, the human resource information and the financial affairs of the department for the finacial year ended 31 March 2016.

______________________ DR KL Sebego Director General

Report of the auditor-general to the North West provincial legislature on

vote no. 1: the Office of the Premier

Introduction

1. I have audited the financial statements of the Office of the Premier set out on pages 173 to 213, which comprise the appropriation statement, the statement of financial position as at 31 March 2016, the statement of financial performance, statement of changes in net assets, and cash flow statement for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the Modified Cash Standard (MCS) prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2015 (Act No. 1 of 2015) (DoRA) and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

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

185

Basis for qualified opinion

Goods and services

6. I was unable to obtain sufficient appropriate audit evidence that services were received for payments made to a contractor amounting R72 208 657 or that the amount paid was in terms of the original bid contract as the information and explanations I considered necessary could not be provided by management. I was unable to confirm these payments classified as goods and services by alternative means. Consequently, I was unable to determine whether any adjustment to goods and service expenditure of R242 025 000 disclosed in the statement of financial performance and note 5 to the financial statements was necessary.

Qualified opinion

7. In my opinion, except for the possible effects of the matters described in the basis for qualified opinion paragraphs, the financial statements present fairly, in all material respects, the financial position of the Office of the Premier as at 31 March 2016 and its financial performance and cash flows for the year then ended, in accordance with the MCS prescribed by the National Treasury and the requirements of the PFMA and the DoRA.

Emphasis of matters

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

Irregular and fruitless and wasteful expenditure

9. As disclosed in note 24 to the financial statements, irregular expenditure of R124 632 000 for the current year and R279 653 000 from prior years had not yet been resolved.

10. As disclosed in note 25 to the financial statements, fruitless and wasteful expenditure of R3 684 000 for the current year and R23 904 000 from prior years had not yet been resolved.

Payables

11. Payables which exceed the payment term of 30 days as required in Treasury Regulation 8.2.3 amount to R23 810 000. This amount, in turn, exceeds the voted funds to be surrendered of R21 921 000 as per the statement of financial performance by R1 889 000. The amount of R1 889 000 would therefore have constituted unauthorised expenditure had the amounts due been paid in a timely manner.

Material underspending of the budget

12. As disclosed in the appropriation statement, the department has materially underspent the budget on Programme 1: Administration and Programme 2: Institutional development by R13 328 000 and R6 538 000 respectively which had a negative impact on the service delivery objectives of the department as disclosed in note 4.1in the financial statements.

Additional matter

13. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Unaudited supplementary schedules

14. The supplementary information set out on pages 194 to 213 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and accordingly I do not express an opinion thereon.

186

Report on other legal and regulatory requirements 15. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA)

and the general notice issued in terms thereof, I have a responsibility to report findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report, compliance with legislation and internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.

Predetermined objectives

16. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2016:

Programme 2: Institutional development support and integrity management on pages 65 to 80

Programme 3: Policy, planning and monitoring and evaluation on pages 84 to 92.

17. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned programmes. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).

18. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

19. I did not identify any material findings on the usefulness and reliability of the reported performance information on any of the selected programmes of the department.

Additional matters

20. Although I identified no material findings on the usefulness and reliability of the reported performance information for the selected programmes, I draw attention to the following matters:

Achievement of planned targets

21. Refer to the annual performance report on pages 65 to 80 and 84 to 92 for information on the achievement of the planned targets for the year.

Adjustment of material misstatements

22. I identified material misstatements in the annual performance report submitted for auditing on the reported performance information for Programme 2: Institutional development support and integrity management. As management subsequently corrected the misstatements, I did not identify any material findings on the usefulness and reliability of the reported performance information.

Compliance with legislation

23. I performed procedures to obtain evidence that the department had complied with applicable legislation regarding financial matters, financial management and other related matters. My findings on material compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows:

187

Annual financial statements

24. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1)(a) and (b) of the PFMA. Material misstatements of revenue, expenditure and disclosure items identified by the auditors in the submitted financial statements were subsequently corrected, but the uncorrected material misstatements resulted in the financial statements receiving a qualified audit opinion

Expenditure management

25. Effective steps were not taken to prevent irregular expenditure as required by section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1.

26. Effective steps were not taken to prevent fruitless and wasteful expenditure as required by section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1.

27. Effective internal controls were not in place for payment approval and processing, as required by Treasury Regulation 8.1.1.

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

Procurement and contract management

29. Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as required by Treasury Regulation 16A6.1.

30. Goods and services of a transaction value above R500 000 were procured without inviting competitive bids, as required by Treasury Regulation 16A6.1.

Internal control

31. I considered internal control relevant to my audit of the financial statements, the annual performance report and compliance with legislation. The matters reported below are limited to the significant internal control deficiencies that resulted in the basis for qualified opinion and the findings on compliance with legislation included in this report.

Leadership

32. The leadership did not adequately exercise appropriate oversight over financial and performance reporting, compliance with laws and regulations, information technology (IT) systems and related internal controls. Material adjustments were required to financial statements and the annual performance report. Furthermore, the IT governance structures and frameworks were defined but not adequately implemented due to resource constraints which resulted in significant IT control deficiencies.

Financial and performance management

33. Management did not adequately implement controls to ensure that information in the financial statements and the report on predetermined objectives was accurate before submission for audit. This was mainly due to differences identified in reconciliations and staff not fully understanding the requirements of the MCS. Non-compliance with laws and regulations could have been prevented had compliance been properly reviewed and monitored and control measures implemented.

34. Effective IT controls were not adequately implemented, in some cases not defined, which resulted in significant deficiencies in security management, access control and disaster continuity requirements management. Policies and procedures did not always adequately guide financial, performance and IT related activities and action plans to address prior year audit findings.

188

Governance

35. The risks identified during the risk assessment process relating to financial and performance reporting and compliance with laws and regulations were not adequately monitored by management. Although the audit committee and internal audit fulfilled their functions, there was a lack of adequate implementation of their recommendations by the department resulting in an inadequate control environment over financial and performance reporting and compliance with laws and regulations.

Other reports 36. An investigation was performed by The Office of the Premier at the request of the

Honourable Premier on an allegation of the possible ghost employees within the provincial departments. The investigation was concluded in the current period and concluded that no ghost employees exist.

Pretoria

31 July 2016

ANNUAL FINANCIAL STATEMENTS

190

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure


% of final

appropriation

Final

Appropriation

Actual

Expenditure

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

Programme

1. ADMINISTRATION 262 378 - 3 317 265 695 252 367 13 328 95.0% 247 344 191 330

2. INSTITUTIONAL DEVELOPMENT 223 389 - (10 882) 212 507 205 969 6 538 96.9% 190 442 189 661

3. POLICY AND GOVERNANCE 322 137 - 7 565 329 702 327 647 2 055 99.4% 318 899 307 829

TOTAL 807 904 - - 807 904 785 983 21 921 97.3% 756 685 688 820

Add:

679 20

808 583 756 705

785 983 688 820

Actual amounts per Statement of Financial Performance (Total

Revenue)


Appropriation Statement

for the year ended 31 March 2016

Appropriation per programme

Voted funds and Direct charges

Reconciliation with Statement of Financial Performance

Departmental receipts

Actual amounts per Statement of Financial Performance

Expenditure

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 446 640 250 - 446 890 507 656 (60 766) 113.6% 414 306 396 101




Goods and services 185 966 (8 712) 6 917 184 171 242 025 (57 854) 131.4% 176 783 157 792


Advertising 1 521 70 - 1 591 1 182 409 74.3% 2 886 1 729

Minor assets 1 192 - - 1 192 896 296 75.2% 751 531



Catering: Departmental activities 2 001 - - 2 001 1 790 211 89.5% 3 327 1 805

Communication (G&S) 25 567 (70) - 25 497 27 204 (1 707) 106.7% 17 869 16 003



Legal services 3 600 - - 3 600 2 988 612 83.0% 2 900 1 768

Contractors 50 602 (5 167) 6 917 52 352 112 120 (59 768) 214.2% 63 556 69 489

Agency and support / outsourced services 357 100 - 457 1 187 (730) 259.7% 198 265






Consumable supplies 1 237 - - 1 237 689 548 55.7% 1 201 909

Consumable: Stationery, printing and office supplies 5 378 100 - 5 478 3 932 1 546 71.8% 5 356 4 797


Property payments 90 (1) - 89 68 21 76.4% 184 -

Transport provided: Departmental activity 749 - - 749 951 (202) 127.0% 267 836


Training and development 2 643 - - 2 643 1 295 1 348 49.0% 2 058 1 453

Operating payments 825 1 - 826 636 190 77.0% 404 810

Venues and facilities 1 699 - - 1 699 1 183 516 69.6% 3 258 4 211




Transfers and subsidies 212 758 1 120 10 000 223 878 221 512 2 366 98.9% 243 372 243 380







Households 5 677 1 120 - 6 797 5 271 1 526 77.5% 5 870 5 878

Social benefits 2 520 (380) - 2 140 808 1 332 37.8% 1 830 1 198

Other transfers to households 3 157 1 500 - 4 657 4 463 194 95.8% 4 040 4 680

Payments for capital assets 148 506 (1 370) (10 000) 137 136 56 815 80 321 41.4% 99 007 49 339



Machinery and equipment 6 506 (1 370) - 5 136 13 737 (8 601) 267.5% 8 749 11 270

Transport equipment - - - - 1 512 (1 512) - - -

Other machinery and equipment 6 506 (1 370) - 5 136 12 225 (7 089) 238.0% 8 749 11 270

807 904 - - 807 904 785 983 21 921 97.3% 756 685 688 820

Appropriation per economic classification

191

Programme 1: ADMINISTRATION

2015/16 2014/15

Adjusted

Appropriati

on

Shifting of

Funds

Virement Final

Appropriati

on

Actual

Expenditur

e

Variance Expenditur

e as % of

final

appropriati

on

Final

Appropriati

on

Actual

Expenditur

e

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

1. PREMIER SUPPORT 203 926 808 3 317 208 051 189 929 18 122 91.3% 195 297 144 597




262 378 - 3 317 265 695 252 367 13 328 95.0% 247 344 191 330








Advertising 120 - - 120 44 76 36.7% 397 214

Minor assets 240 - - 240 470 (230) 195.8% 135 196







Contractors 11 933 833 12 617 25 383 91 857 (66 474) 361.9% 17 380 15 124





















Households 1 770 50 - 1 820 1 551 269 85.2% 2 790 2 443

Social benefits 1 770 50 - 1 820 421 1 399 23.1% 670 697








262 378 - 3 317 265 695 252 367 13 328 95.0% 247 344 191 330

1

Sub programme

Programme 1: ADMINISTRATION

2015/16 2014/15

Adjusted

Appropriati

on

Shifting of

Funds

Virement Final

Appropriati

on

Actual

Expenditur

e

Variance Expenditur

e as % of

final

appropriati

on

Final

Appropriati

on

Actual

Expenditur

e

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

1. PREMIER SUPPORT 203 926 808 3 317 208 051 189 929 18 122 91.3% 195 297 144 597




262 378 - 3 317 265 695 252 367 13 328 95.0% 247 344 191 330








Advertising 120 - - 120 44 76 36.7% 397 214

Minor assets 240 - - 240 470 (230) 195.8% 135 196







Contractors 11 933 833 12 617 25 383 91 857 (66 474) 361.9% 17 380 15 124





















Households 1 770 50 - 1 820 1 551 269 85.2% 2 790 2 443

Social benefits 1 770 50 - 1 820 421 1 399 23.1% 670 697








262 378 - 3 317 265 695 252 367 13 328 95.0% 247 344 191 330

1

Sub programme

192

2015/16 2014/15

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure

Variance Expenditure as %

of final

appropriation

Final

Appropriation

Actual

Expenditure

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


Compensation of employees 14 443 - 700 15 143 14 906 237 98.4% 9 896 12 191

Salaries and wages 13 905 - 700 14 605 14 474 131 99.1% 9 382 11 809

Social contributions 538 - - 538 432 106 80.3% 514 382


Advertising 100 - - 100 44 56 44.0% 267 158

Minor assets 100 - - 100 302 (202) 302.0% 50 5


Communication (G&S) 400 - - 400 94 306 23.5% 795 939

Consultants: Business and advisory services 250 - - 250 138 112 55.2% 60 7

Contractors 11 903 833 12 617 25 353 91 710 (66 357) 361.7% 17 300 15 106

Fleet services (including government motor transport) 15 - - 15 9 6 60.0% - -

Consumable supplies 85 - - 85 90 (5) 105.9% 20 80

Consumable: Stationery, printing and office supplies 267 - - 267 189 78 70.8% 280 336

Operating leases 125 - - 125 - 125 - 233 218

Property payments - - - - - - 33 -




Operating payments - - - - - - 311

Venues and facilities 160 - - 160 70 90 43.8% 260 375

Interest and rent on land - - - - 3 078 (3 078) - - -

Interest (Incl. interest on unitary payments (PPP)) - - - - 3 078 (3 078) - - -






Other transfers to public corporations 10 000 - 10 000 10 000 - 100.0% 50 000 50 000

Households 1 070 175 - 1 245 1 148 97 92.2% 2 120 2 062

Social benefits 1 070 175 - 1 245 20 1 225 1.6% - 323




Other fixed structures 142 000 (10 000) 132 000 43 380 88 620 32.9% 90 000 37 730

Machinery and equipment 320 (200) - 120 462 (342) 385.0% 103 65

Other machinery and equipment 320 (200) - 120 462 (342) 385.0% 103 65

Total 203 926 808 3 317 208 051 189 929 18 122 91.3% 195 297 144 597

Subprogramme: 1.1: PREMIER SUPPORT


193

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 5 261 303 - 5 564 5 868 (304) 105.5% 5 200 4 777

Compensation of employees 4 107 303 - 4 410 4 388 22 99.5% 3 926 3 277

Salaries and wages 3 821 303 - 4 124 3 927 197 95.2% 3 653 2 924

Social contributions 286 - - 286 461 (175) 161.2% 273 353

Goods and services 1 154 - - 1 154 1 480 (326) 128.2% 1 274 1 500

Advertising - - - - - - - 30 -

Minor assets 34 - - 34 32 2 94.1% 25 -

Catering: Departmental activities 383 - - 383 384 (1) 100.3% 220 149


Computer services - - - - 600 (600) - - -

Consultants: Business and advisory services - - - - - - - 80 -

Contractors - - - - - - - 10 -

Inventory: Food and food supplies - - - - - - - 85 -




Travel and subsistence 156 - - 156 246 (90) 157.7% 298 396

Training and development 80 - - 80 12 68 15.0% 45 -


Transfers and subsidies - - - - 173 (173) - - 7

Households - - - - 173 (173) - - 7

Social benefits - - - - 173 (173) - - -


Payments for capital assets 111 (40) - 71 186 (115) 262.0% 100 19



Total 5 372 263 - 5 635 6 227 (592) 110.5% 5 300 4 803

Subprogramme: 1.2: EXECUTIVE COUNCIL SUPPORT


2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 29 127 560 - 29 687 35 009 (5 322) 117.9% 25 191 23 377

Compensation of employees 27 436 560 - 27 996 27 994 2 100.0% 23 306 21 396

Salaries and wages 25 496 560 - 26 056 24 136 1 920 92.6% 22 933 18 283

Social contributions 1 940 - - 1 940 3 858 (1 918) 198.9% 373 3 113

Goods and services 1 691 - - 1 691 7 015 (5 324) 414.8% 1 885 1 981

Minor assets 46 - - 46 48 (2) 104.3% 30 180



Computer services 6 - - 6 8 (2) 133.3% - -

Consultants: Business and advisory services 225 - - 225 5 161 (4 936) 2293.8% 30 -

Contractors - - - - 85 (85) - 20 -







Operating payments - - - - 126 (126) - 20 23



Households - - - - 142 (142) - - 290

Social benefits - - - - 141 (141) - - 290

Other transfers to households - - - - 1 (1) - - -




Total 29 626 470 - 30 096 35 720 (5 624) 118.7% 25 331 23 861

Subprogramme: 1.3: DIRECTOR-GENERAL SUPPORT


194

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 22 514 (1 376) - 21 138 19 701 1 437 93.2% 20 488 17 646

Compensation of employees 11 074 (1 300) - 9 774 9 760 14 99.9% 12 119 8 596

Salaries and wages 9 508 (1 300) - 8 208 8 455 (247) 103.0% 10 174 7 463

Social contributions 1 566 - - 1 566 1 305 261 83.3% 1 945 1 133

Goods and services 11 440 (100) - 11 340 9 918 1 422 87.5% 8 369 9 050


Advertising 20 - - 20 - 20 - 100 56

Minor assets 60 - - 60 88 (28) 146.7% 30 11




Communication (G&S) 300 - - 300 89 211 29.7% - -

Computer services 100 - - 100 - 100 - 200 1 082


Contractors 30 - - 30 62 (32) 206.7% 50 18





Consumable: Stationery, printing and office supplies 799 (100) - 699 558 141 79.8% 709 275







Venues and facilities 10 - - 10 - 10 - 80 23

Interest and rent on land - 24 - 24 23 1 95.8% - -

Interest (Incl. interest on unitary payments (PPP)) - 24 - 24 23 1 95.8% - -

Transfers and subsidies 700 (125) - 575 88 487 15.3% 670 84

Households 700 (125) - 575 88 487 15.3% 670 84

Social benefits 700 (125) - 575 87 488 15.1% 670 84



Buildings and other fixed structures - - - - (302) 302 - 258 339

Other fixed structures - - - - (302) 302 - 258 339

Machinery and equipment 240 (40) - 200 1 004 (804) 502.0% - -


Other machinery and equipment 240 (40) - 200 500 (300) 250.0% - -

Total 23 454 (1 541) - 21 913 20 491 1 422 93.5% 21 416 18 069

Subprogramme: 1.4: FINANCIAL MANAGEMENT


195

Programme 2: INSTITUTIONAL DEVELOPMENT

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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



3. LEGAL SERVICES 14 180 - - 14 180 10 005 4 175 70.6% 13 566 9 144



223 389 - (10 882) 212 507 205 969 6 538 96.9% 190 442 189 661







Advertising 1 244 - - 1 244 993 251 79.8% 2 130 1 485

Minor assets 720 - - 720 148 572 20.6% 381 221






Legal services 3 600 - - 3 600 2 988 612 83.0% 2 900 1 768

Contractors 38 317 (5 900) (5 700) 26 717 19 897 6 820 74.5% 39 816 44 588




















Households 3 317 1 500 - 4 817 3 585 1 232 74.4% 2 600 3 177

Social benefits 160 - - 160 252 (92) 157.5% 680 249






223 389 - (10 882) 212 507 205 969 6 538 96.9% 190 442 189 661

Sub programme

Programme 2: INSTITUTIONAL DEVELOPMENT

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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



3. LEGAL SERVICES 14 180 - - 14 180 10 005 4 175 70.6% 13 566 9 144



223 389 - (10 882) 212 507 205 969 6 538 96.9% 190 442 189 661







Advertising 1 244 - - 1 244 993 251 79.8% 2 130 1 485

Minor assets 720 - - 720 148 572 20.6% 381 221






Legal services 3 600 - - 3 600 2 988 612 83.0% 2 900 1 768

Contractors 38 317 (5 900) (5 700) 26 717 19 897 6 820 74.5% 39 816 44 588




















Households 3 317 1 500 - 4 817 3 585 1 232 74.4% 2 600 3 177

Social benefits 160 - - 160 252 (92) 157.5% 680 249






223 389 - (10 882) 212 507 205 969 6 538 96.9% 190 442 189 661

Sub programme

196

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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


Compensation of employees 31 675 (2 457) (3 382) 25 836 25 086 750 97.1% 25 719 23 830

Salaries and wages 28 375 (2 472) (3 382) 22 521 22 211 310 98.6% 22 920 21 169

Social contributions 3 300 15 - 3 315 2 875 440 86.7% 2 799 2 661


Advertising 312 - - 312 273 39 87.5% 1 775 1 121

Minor assets 120 - - 120 23 97 19.2% 84 64


Communication (G&S) 30 - - 30 106 (76) 353.3% 626 114


Legal services - - - - - - - - 25

Contractors 3 105 (1 500) - 1 605 292 1 313 18.2% 332 45

Agency and support / outsourced services - - - - - - - 30 34




Consumable: Stationery, printing and office supplies 532 - - 532 604 (72) 113.5% 628 460




Travel and subsistence 1 153 (130) - 1 023 1 631 (608) 159.4% 2 115 1 293

Training and development 360 - - 360 393 (33) 109.2% 367 196

Operating payments 407 - - 407 40 367 9.8% - 43



Households 3 157 1 500 - 4 657 3 383 1 274 72.6% 2 480 3 021

Social benefits - - - - 54 (54) - 560 110


Payments for capital assets 400 - - 400 1 074 (674) 268.5% 366 2 031

Machinery and equipment 400 - - 400 1 074 (674) 268.5% 366 2 031

Transport equipment - - - - 504 (504) - -

Other machinery and equipment 400 - - 400 570 (170) 142.5% 366 2 031

Total 45 857 (2 587) (3 382) 39 888 36 983 2 905 92.7% 39 266 35 372


Subprogramme: 2.1: STRATEGIC HUMAN RESOURCES

197

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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


Compensation of employees 34 132 3 260 (1 800) 35 592 29 674 5 918 83.4% 30 747 27 694


Social contributions 3 668 - - 3 668 3 738 (70) 101.9% 3 651 3 387

Goods and services 76 447 - - 76 447 71 388 5 059 93.4% 41 335 42 688

Minor assets 350 - - 350 78 272 22.3% 57 62

Catering: Departmental activities 50 - - 50 - 50 - 193 29



Consultants: Business and advisory services (130) 130 - - - - - 416 42

Contractors 13 532 - - 13 532 4 182 9 350 30.9% 10 518 11 068

Agency and support / outsourced services 100 - - 100 67 33 67.0% - -




Consumable: Stationery, printing and office supplies 1 211 - - 1 211 460 751 38.0% 789 860


Travel and subsistence 518 (130) - 388 1 045 (657) 269.3% 887 867






Transfers and subsidies 50 - - 50 15 35 30.0% 20 139

Households 50 - - 50 15 35 30.0% 20 139

Social benefits 50 - - 50 15 35 30.0% 20 134





Total 113 129 3 260 (1 800) 114 589 104 232 10 357 91.0% 77 659 75 864

Subprogramme: 2.2: INFORMATION COMMUNICATIONTECHNOLOGY


198

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 13 900 - - 13 900 9 952 3 948 71.6% 13 266 9 067

Compensation of employees 8 820 - - 8 820 6 360 2 460 72.1% 7 458 5 693

Salaries and wages 8 468 - - 8 468 5 714 2 754 67.5% 7 286 5 110

Social contributions 352 - - 352 646 (294) 183.5% 172 583


Advertising 60 - - 60 - 60 - - -

Minor assets 60 - - 60 - 60 - 75 15



Legal services 3 600 - - 3 600 2 988 612 83.0% 2 900 1 743

Contractors - - - - - - - 45 -

Agency and support / outsourced services - - - - 2 (2) - - -








Property payments - - - - 2 (2) - - -

Travel and subsistence 700 - - 700 366 334 52.3% 700 436


Operating payments - - - - - - - - 51


Transfers and subsidies 30 - - 30 45 (15) 150.0% 20 14

Households 30 - - 30 45 (15) 150.0% 20 14

Social benefits 30 - - 30 45 (15) 150.0% 20 2


Payments for capital assets 250 - - 250 8 242 3.2% 280 63

Machinery and equipment 250 - - 250 8 242 3.2% 280 63

Other machinery and equipment 250 - - 250 8 242 3.2% 280 63

Total 14 180 - - 14 180 10 005 4 175 70.6% 13 566 9 144

Subprogramme: 2.3: LEGAL SERVICES


199

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 39 811 (4 373) (5 700) 29 738 36 364 (6 626) 122.3% 47 477 51 628

Compensation of employees 11 531 27 - 11 558 15 407 (3 849) 133.3% 13 768 13 151

Salaries and wages 10 026 27 - 10 053 13 560 (3 507) 134.9% 11 716 11 555


Goods and services 28 280 (4 400) (5 700) 18 180 20 957 (2 777) 115.3% 33 709 38 477

Advertising 872 - - 872 720 152 82.6% 255 332

Minor assets 120 - - 120 44 76 36.7% 120 53




Contractors 21 680 (4 400) (5 700) 11 580 15 421 (3 841) 133.2% 28 831 33 459


Consumable supplies 100 - - 100 49 51 49.0% 27


Operating leases 1 600 - - 1 600 553 1 047 34.6% 840 1 420

Property payments - - - - - - - 72 -


Travel and subsistence 2 020 - - 2 020 2 708 (688) 134.1% 1 470 2 137



Venues and facilities 140 - - 140 175 (35) 125.0% 250 136


Transfers and subsidies 40 - - 40 37 3 92.5% 40 3

Households 40 - - 40 37 3 92.5% 40 3

Social benefits 40 - - 40 34 6 85.0% 40 3


Payments for capital assets 450 - - 450 1 181 (731) 262.4% 326 271

Machinery and equipment 450 - - 450 1 181 (731) 262.4% 326 271

Transport equipment - - - - - - - - -

Other machinery and equipment 450 - - 450 1 181 (731) 262.4% 326 271

Total 40 301 (4 373) (5 700) 30 228 37 582 (7 354) 124.3% 47 843 51 902

Subprogramme: 2.4: COMMUNICATION SERVICES


200

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 9 325 3 700 - 13 025 16 822 (3 797) 129.2% 11 710 17 164

Compensation of employees 5 187 3 700 - 8 887 13 863 (4 976) 156.0% 7 959 14 210

Salaries and wages 4 522 3 700 - 8 222 12 061 (3 839) 146.7% 7 292 12 468

Social contributions 665 - - 665 1 802 (1 137) 271.0% 667 1 742


Advertising - - - - - - - 100 32

Minor assets 70 - - 70 3 67 4.3% 45 27




Consultants: Business and advisory services - - - - 281 (281) - - -

Contractors - - - - 2 (2) - 90 16



Consumable supplies 53 - - 53 60 (7) 113.2% 20 7

Consumable: Stationery, printing and office supplies 121 200 - 321 197 124 61.4% 378 299


Travel and subsistence 1 805 (200) - 1 605 1 603 2 99.9% 1 340 1 712




Transfers and subsidies 40 - - 40 105 (65) 262.5% 40 -

Households 40 - - 40 105 (65) 262.5% 40 -

Social benefits 40 - - 40 104 (64) 260.0% 40 -


Payments for capital assets 557 - - 557 240 317 43.1% 358 215

Machinery and equipment 557 - - 557 240 317 43.1% 358 215

Other machinery and equipment 557 - - 557 240 317 43.1% 358 215

Total 9 922 3 700 - 13 622 17 167 (3 545) 126.0% 12 108 17 379


Subprogramme: 2.5: PROGRAMME SUPPORT

201

Programme 3: POLICY AND GOVERNANCE

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

1. INTER-GOVERNMENTAL RELATIONS 6 888 (3 320) - 3 568 2 686 882 75.3% 6 173 1 757

2. PROVINCIAL POLICY MANAGEMENT 226 936 (2 690) 10 565 234 811 234 637 174 99.9% 304 197 256 258

3. PREMIER'S PRIORITY PROGRAMMES 5 578 (710) - 4 868 4 778 90 98.2% 5 842 3 497

4. PROGRAMME SUPPORT 82 735 6 720 (3 000) 86 455 85 546 909 98.9% 2 687 46 317

322 137 - 7 565 329 702 327 647 2 055 99.4% 318 899 307 829







Advertising 157 70 - 227 145 82 63.9% 359 30

Minor assets 232 - - 232 278 (46) 119.8% 235 114


Communication (G&S) 858 (70) - 788 419 369 53.2% 1 210 1 132



Contractors 352 (100) - 252 366 (114) 145.2% 6 360 9 777

Agency and support / outsourced services (100) 100 - - 774 (774) - - -



Consumable: Stationery, printing and office supplies 893 - - 893 559 334 62.6% 1 372 1 100






Operating payments 30 1 - 31 31 - 100.0% 136 200






Households 590 (430) - 160 135 25 84.4% 480 258

Social benefits 590 (430) - 160 135 25 84.4% 480 252


Payments for capital assets 1 179 (1 000) - 179 6 441 (6 262) 3598.3% 1 519 3 069

Machinery and equipment 1 179 (1 000) - 179 6 441 (6 262) 3598.3% 1 519 3 069


Other machinery and equipment 1 179 (1 000) - 179 5 937 (5 758) 3316.8% 1 519 3 069

322 137 - 7 565 329 702 327 647 2 055 99.4% 318 899 307 829

Sub programme

202

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 6 688 (3 200) - 3 488 2 644 844 75.8% 6 020 1 617

Compensation of employees 4 273 (3 200) - 1 073 1 001 72 93.3% 4 085 (34)

Salaries and wages 3 898 (3 200) - 698 956 (258) 137.0% 3 715 (34)

Social contributions 375 - - 375 45 330 12.0% 370 -

Goods and services 2 415 - - 2 415 1 643 772 68.0% 1 935 1 651

Advertising - - - - 32 (32) - - -

Minor assets 60 - - 60 2 58 3.3% 17 17



Consultants: Business and advisory services - - - - 70 (70) - 40 -

Contractors 50 - - 50 15 35 30.0% 120 2



Operating leases - - - - - - - 100 97

Transport provided: Departmental activity - - - - - - - - 123

Travel and subsistence 1 800 - - 1 800 1 371 429 76.2% 996 1 007

Training and development 150 - - 150 - 150 - 120 119



Households - - - - 2 (2) - - 1

Social benefits - - - - 2 (2) - - 1

Payments for capital assets 200 (120) - 80 40 40 50.0% 153 139

Machinery and equipment 200 (120) - 80 40 40 50.0% 153 139

Other machinery and equipment 200 -120 - 80 40 40 50.0% 153 139

Total 6 888 (3 320) - 3 568 2 686 882 75.3% 6 173 1 757

Subprogramme: 3.1: INTER-GOVERNMENTAL RELATIONS


203

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 46 413 (1 720) 565 45 258 39 585 5 673 87.5% 135 504 86 386

Compensation of employees 25 158 1 695 565 27 418 27 398 20 99.9% 92 591 63 802

Salaries and wages 23 327 1 695 565 25 587 24 599 988 96.1% 80 792 55 447



Advertising (70) 70 - - 81 (81) - 259 30

Minor assets 80 - - 80 276 (196) 345.0% 140 86


Communication (G&S) 209 (70) - 139 177 (38) 127.3% 901 1 060


Consultants: Business and advisory services 12 236 (3 415) - 8 821 923 7 898 10.5% 26 471 3 353

Contractors 202 - - 202 268 (66) 132.7% 6 040 9 775

Agency and support / outsourced services - - - - 774 (774) - - -



Consumable: Stationery, printing and office supplies 400 - - 400 509 (109) 127.3% 1 141 958



Transport provided: Departmental activity 100 - - 100 90 10 90.0% 7 -



Operating payments (1) 1 - - 15 (15) - 136 125






Households 500 (430) - 70 80 (10) 114.3% 480 5

Social benefits 500 (430) - 70 80 (10) 114.3% 480 4


Payments for capital assets 600 (540) - 60 6 389 (6 329) 10648.3% 1 231 2 885

Machinery and equipment 600 (540) - 60 6 389 (6 329) 10648.3% 1 231 2 885


Other machinery and equipment 600 (540) - 60 5 885 (5 825) 9808.3% 1 231 2 885

Total 226 936 (2 690) 10 565 234 811 234 637 174 99.9% 304 197 256 258

Subprogramme: 3.2: PROVINCIAL POLICY MANAGEMENT


204

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 5 418 (550) - 4 868 4 775 93 98.1% 5 747 3 397

Compensation of employees 4 228 (550) - 3 678 3 668 10 99.7% 4 042 2 230

Salaries and wages 3 724 (550) - 3 174 3 178 (4) 100.1% 3 594 1 928

Social contributions 504 - - 504 490 14 97.2% 448 302

Goods and services 1 190 - - 1 190 1 107 83 93.0% 1 705 1 167

Advertising 50 - - 50 32 18 64.0% 100 -

Minor assets 40 - - 40 - 40 - 38 11




Contractors 100 (100) - - 83 (83) - 200 -

Agency and support / outsourced services (100) 100 - - - - - - -

Consumable supplies 20 - - 20 - 20 - 67 3

Consumable: Stationery, printing and office supplies 21 - - 21 - 21 - 91 53

Operating leases - - - - - - - 63 38

Property payments - - - - - - - 19 -



Training and development 100 - - 100 29 71 29.0% 76 -

Operating payments 30 - - 30 16 14 53.3% - 33



Households - - - - 3 (3) - - 55

Social benefits - - - - 3 (3) - - 55

Payments for capital assets 160 (160) - - - - - 95 45

Machinery and equipment 160 (160) - - - - - 95 45

Other machinery and equipment 160 (160) - - - - - 95 45

Total 5 578 (710) - 4 868 4 778 90 98.2% 5 842 3 497

Subprogramme: 3.3: PREMIER'S PRIORITY PROGRAMMES


205

2015/16 2014/15

Adjusted

Appropriatio

n

Shifting of

Funds

Virement Final

Appropriatio

n

Actual

Expenditure

Variance

Expenditure

as % of final

appropriation

Final

Appropriatio

n

Actual

Expenditure

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

Current payments 82 426 6 900 (3 000) 86 326 85 484 842 99.0% 2 647 46 120



Social contributions 10 844 - - 10 844 14 390 (3 546) 132.7% 183 6 688

Goods and services 3 816 - - 3 816 3 042 774 79.7% 740 3 847

Advertising 177 - - 177 - 177 - - -

Minor assets 52 - - 52 - 52 - 40 -



Computer services - - - - - - - - -

Consultants: Business and advisory services 240 - - 240 79 161 32.9% 30 1 801

Consumable supplies 27 - - 27 - 27 - 60 6

Consumable: Stationery, printing and office supplies 312 - - 312 - 312 - 25 13


Travel and subsistence 2 102 - - 2 102 2 692 (590) 128.1% 301 73

Training and development 120 - - 120 - 120 - 35 28

Operating payments 1 - - 1 - 1 - - 42

Venues and facilities 20 - - 20 - 20 - 65 1 628

Transfers and subsidies 90 - - 90 50 40 55.6% - 197

Households 90 - - 90 50 40 55.6% - 197

Social benefits 90 - - 90 50 40 55.6% - 192


Payments for capital assets 219 (180) - 39 12 27 30.8% 40 -

Machinery and equipment 219 (180) - 39 12 27 30.8% 40 -

Other machinery and equipment 219 (180) - 39 12 27 30.8% 40 -

Total 82 735 6 720 (3 000) 86 455 85 546 909 98.9% 2 687 46 317

Subprogramme: 3.4: PROGRAMME SUPPORT


206

1

2

3

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

4.1 Per programme:

Final

Appropriation

Actual

Expenditure

Variance Variance as a

%

of Final R’000 R’000 R’000 %

Programme name

Administration 265 695 252 367 13 328 5.02%

Programme name

Institutional Development 212 507 205 969 6 538 3.08%

Programme name

Policy & Governance 329 702 327 647 2 055 0.62%

4.2 Per economic classification:

Final

Appropriation

Actual

Expenditure

Variance

Variance as

a %

of Final

R’000 R’000 R’000 %

Current expenditure

Compensation of employees 262 695 261 947 748 0.28%

Goods and services 184 171 242 025 (57 854) -31.41%

Interest and rent on land 24 3 684 (3 660) -15250.00%

Transfers and subsidies

Departmental agencies and accounts 206 241 206 241 - 0.00%

Public corporations and private enterprises 10 000 10 000 - 0.00%

Non-profit institutions 840 - 840 100.00%

Households 6 797 5 271 1 526 22.45%

Payments for capital assets

Buildings and other fixed structures 132 000 43 078 88 922 67.37%

Machinery and equipment 5 136 13 737 (8 601) -167.46%

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


Notes to the Appropriation Statement

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 and Annexure 1 (A-H) to the Annual Financial

Statements.

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

Overall variance due to additional expenditure on transfers to public enities, design and implementation of turnaround

startegy relating to public entity, creditor settlement payment and information technology contracts and software licences

Detail on payments for financial assets

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

Variance due to funds on MRRRP projects not completed. Roll-over requested for unspent MRRRP funds.

Variance due to underspending on Contractors, Legal Fees, Communcation and Consumables.

Variance due to underspending on Consulting and professional services.

(In the case of surpluses on programmes, a detailed explanation must be given as to whether it is as a result of a saving or

207

2015/16 2014/15

Note R'000 R'000

ASSETS

Current Assets 25 892 31 493

Unauthorised expenditure 9 16 000 16 000

Cash an cash equivalents 10 - 11 712

Prepayments and advances 11 155 145

Receivables 12 9 737 3 636

TOTAL ASSETS 25 892 31 493

LIABILITIES

Current Liabilities 25 892 31 493

Voted funds to be surrendered to the Revenue Fund 13 21 921 31 390

Departmental revenue and NRF Receipts to be surrendered to the

Revenue Fund 14 447 20

Bank overdraft 15 3 451 -

Payables 16 73 83

TOTAL LIABILITIES 25 892 31 493


Statement of Financial Position

208


Statement of Financial Performance

2015/16 2014/15

Note R'000 R'000

REVENUE

Annual appropriation 1 807 904 756 685

Departmental revenue 2 679 20

Aid Assistance 3 - -

TOTAL REVENUE 808 583 756 705

EXPENDITURE

Current expenditure

Compensation of employees 4 261 947 238 309

Goods and services 5 242 025 158 263

Interest and rent on land 6 3 684 -

Total current expenditure 507 656 396 572

Transfers and subsidies

Transfers and subsidies 7 221 512 242 909

Total transfers and subsidies 221 512 242 909

Expenditure for capital assets

Tangible assets 8 56 815 49 339

Total expenditure for capital assets 56 815 49 339

TOTAL EXPENDITURE 785 983 688 820

SURPLUS/(DEFICIT) FOR THE YEAR 22 600 67 885

Reconciliation of Net Surplus/(Deficit) for the year

Voted Funds 21 921 67 865

Annual appropriation 21 285 67 865

Departmental revenue and NRF Receipts 14 679 20

Aid assistance 3 - -

SURPLUS/(DEFICIT) FOR THE YEAR 22 600 67 885

209

2015/16 2014/15

Note R'000 R'000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 808 893 720 799

Annual appropriated funds received 1.1 807 904 720 210

Departmental revenue received 2 989 589

Net (increase)/ decrease in working capital (6 121) (8 839)

Surrendered to Revenue Fund (31 962) (7 356)

Surrendered to RDP Fund/Donor - (227)

Current payments (503 972) (396 572)

Interest paid 6 (3 684) -

Transfers and subsidies paid (221 512) (242 909)

Net cash flow available from operating activities 17 41 642 64 896

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 8 (56 815) (49 339)

Proceeds from sale of capital assets 2.2 10 -

Net cash flows from investing activities (56 805) (49 339)

Net increase/ (decrease) in cash and cash equivalents (15 163) 15 557

Cash and cash equivalents at beginning of period 11 712 (3 845)

Cash and cash equivalents at end of period 18 (3 451) 11 712


Cash Flow Statement

210

NORTH WEST: OFFICE OF THE PREMIER VOTE 1

ACCOUNTING POLICIES For the year ended 31 March 2017

The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.

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 (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury

Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparation

The financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concern

The financial statements have been prepared on a going concern basis.

3 Presentation currency

Amounts have been presented in the currency of the South African Rand (R) which is also the

functional currency of the department.

4 Rounding

Unless otherwise stated financial figures have been rounded to the nearest one thousand

Rand (R’000).

5 Foreign currency translation

Cash flows arising from foreign currency transactions are translated into South African Rands

using the spot exchange rates prevailing at the date of payment / receipt.

6 Comparative information

6.1 Prior period comparative information

Prior period comparative information has been presented in the current year’s financial

statements. Where necessary figures included in the prior period financial statements have

been reclassified to ensure that the format in which the information is presented is consistent

with the format of the current year’s financial statements.

6.2 Current year comparison with budget

A comparison between the approved, final budget and actual amounts for each programme

and economic classification is included in the appropriation statement.

211

7 Revenue

7.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against

the revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of financial performance on the date the

appropriation becomes effective. Adjustments made in terms of the adjustments budget

process are recognised in the statement of financial performance on the date the adjustments

become effective.

The net amount of any appropriated funds due to / from the relevant revenue fund at the

reporting date is recognised as a payable / receivable in the statement of financial position.

7.2 Departmental revenue

Departmental revenue is recognised in the statement of financial performance when received

and is subsequently paid into the relevant revenue fund, unless stated otherwise.

Any amount owing to the relevant revenue fund at the reporting date is recognised as a

payable in the statement of financial position.

8 Expenditure

8.1 Compensation of employees

8.1.1 Salaries and wages

Salaries and wages are recognised in the statement of financial performance on the date of

payment.

8.1.2 Social contributions

Social contributions made by the department in respect of current employees are recognised

in the statement of financial performance on the date of payment.

Social contributions made by the department in respect of ex-employees are classified as

transfers to households in the statement of financial performance on the date of payment.

8.2 Other expenditure

Other expenditure (such as goods and services, transfers and subsidies and payments for

capital assets) is recognised in the statement of financial performance on the date of

payment. The expense is classified as a capital expense if the total consideration paid is

more than the capitalisation threshold.

8.3 Accrued expenditure payable

Accrued expenditure payable is recorded in the notes to the financial statements when the

goods are received or, in the case of services, when they are rendered to the department or in

the case of transfers and subsidies when they are due and payable.

Accrued expenditure payable is measured at cost.

8.4 Leases

8.4.1 Operating leases

Operating lease payments made during the reporting period are recognised as current

expenditure in the statement of financial performance on the date of payment.

The operating lease commitments are recorded in the notes to the financial statements.

8.4.2 Finance leases

Finance lease payments made during the reporting period are recognised as capital

expenditure in the statement of financial performance on the date of payment.

212

The finance lease commitments are recorded in the notes to the financial statements and are

not apportioned between the capital and interest portions.

Finance lease assets acquired at the end of the lease term are recorded and measured at the

lower of:

cost, being the fair value of the asset; or

the sum of the minimum lease payments made, including any payments made to acquire

ownership at the end of the lease term, excluding interest.

9 Cash and cash equivalents

Cash and cash equivalents are stated at cost in the statement of financial position.

Bank overdrafts are shown separately on the face of the statement of financial position as a

current liability.

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.

12 Loans and receivables

Loans and receivables are recognised in the statement of financial position at cost plus

accrued interest, where interest is charged, less amounts already settled or written-off. Write-

offs are made according to the department’s write-off policy.

14 Financial assets

14.1 Financial assets (not covered elsewhere)

A financial asset is recognised initially at its cost plus transaction costs that are directly

attributable to the acquisition or issue of the financial.

At the reporting date, a department shall measure its financial assets at cost, less amounts

already settled or written-off, except for recognised loans and receivables, which are

measured at cost plus accrued interest, where interest is charged, less amounts already

settled or written-off.

15 Payables

Loans and payables are recognised in the statement of financial position at cost.

213

16 Capital Assets

16.1 Immovable capital assets

Immovable capital assets are initially recorded in the notes to the financial statements at cost.

Immovable capital assets acquired through a non-exchange transaction is measured at fair

value as at the date of acquisition.

Where the cost of immovable capital assets cannot be determined reliably, the immovable

capital assets are measured at R1 unless the fair value of the asset has been reliably

estimated, in which case the fair value is used.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be

recorded at R1.

Immovable capital assets are subsequently carried at cost and are not subject to depreciation

or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end

of the capital project unless the immovable asset is recorded by another department in which

case the completed project costs are transferred to that department.

16.2 Movable capital assets

Movable capital assets are initially recorded in the notes to the financial statements at cost.

Movable capital assets acquired through a non-exchange transaction is measured at fair

value as at the date of acquisition.

Where the cost of movable capital assets cannot be determined reliably, the movable capital

assets are measured at fair value and where fair value cannot be determined; the movable

assets are measured at R1.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be

recorded at R1.

Movable capital assets are subsequently carried at cost and are not subject to depreciation or

impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end

of the capital project unless the movable asset is recorded by another department/entity in

which case the completed project costs are transferred to that department.

17 Provisions and Contingents

17.1 Provisions

Provisions are recorded in the notes to the financial statements when there is a present legal

or constructive obligation to forfeit economic benefits as a result of events in the past and it is

probable that an outflow of resources embodying economic benefits or service potential will

be required to settle the obligation and a reliable estimate of the obligation can be made. The

provision is measured as the best estimate of the funds required to settle the present

obligation at the reporting date.

17.2 Contingent liabilities

Contingent liabilities are recorded in the notes to the financial statements when there is a

possible obligation that arises from past events, and whose existence will be confirmed only

by the occurrence or non-occurrence of one or more uncertain future events not within the

control of the department or when there is a present obligation that is not recognised because

it is not probable that an outflow of resources will be required to settle the obligation or the

amount of the obligation cannot be measured reliably.

214

17.3 Contingent assets

Contingent assets are recorded in the notes to the financial statements when a possible asset

arises from past events, and whose existence will be confirmed by the occurrence or non-

occurrence of one or more uncertain future events not within the control of the department.

17.4 Commitments

Commitments are recorded at cost in the notes to the financial statements when there is a

contractual arrangement or an approval by management in a manner that raises a valid

expectation that the department will discharge its responsibilities thereby incurring future

expenditure that will result in the outflow of cash.

18 Unauthorised expenditure

Unauthorised expenditure is recognised in the statement of financial position until such time

as the expenditure is either:

approved by Parliament or the Provincial Legislature with funding and the related funds

are received; or

approved by Parliament or the Provincial Legislature without funding and is written off

against the appropriation in the statement of financial performance; or

transferred to receivables for recovery.

Unauthorised expenditure is measured at the amount of the confirmed unauthorised

expenditure.

19 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recorded in the notes to the financial statements when

confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful

expenditure incurred.

Fruitless and wasteful expenditure is removed from the notes to the financial statements when

it is resolved or transferred to receivables for recovery.

Fruitless and wasteful expenditure receivables are measured at the amount that is expected

to be recoverable and are de-recognised when settled or subsequently written-off as

irrecoverable.


Irregular expenditure is recorded in the notes to the financial statements when confirmed.

The amount recorded is equal to the value of the irregular expenditure incurred unless it is

impracticable to determine, in which case reasons therefor are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant

authority, transferred to receivables for recovery or not condoned and is not recoverable.

Irregular expenditure receivables are measured at the amount that is expected to be

recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

21 Changes in accounting policies, accounting estimates and errors

Changes in accounting policies that are effected by management have been applied

retrospectively in accordance with MCS requirements, except to the extent that it is

impracticable to determine the period-specific effects or the cumulative effect of the change in

policy. In such instances the department shall restate the opening balances of assets,

liabilities and net assets for the earliest period for which retrospective restatement is

215

practicable.

Changes in accounting estimates are applied prospectively in accordance with MCS

requirements.

Correction of errors is applied retrospectively in the period in which the error has occurred in

accordance with MCS requirements, except to the extent that it is impracticable to determine

the period-specific effects or the cumulative effect of the error. In such cases the department

shall restate the opening balances of assets, liabilities and net assets for the earliest period

for which retrospective restatement is practicable.

22 Events after the reporting date

Events after the reporting date that are classified as adjusting events have been accounted for

in the financial statements. The events after the reporting date that are classified as non-

adjusting events after the reporting date have been disclosed in the notes to the financial

statements.

26 Related party transactions

A related party transaction is a transfer of resources, services or obligations between the

reporting entity and a related party. Related party transactions within the Minister’s portfolio

are recorded in the notes to the financial statements when the transaction is not at arm ’s

length.

Key management personnel are those persons having the authority and responsibility for

planning, directing and controlling the activities of the department. The number of individuals

and their full compensation is recorded in the notes to the financial statements.

216

1

1.1 Annual Appropriation

Funds not

Final Actual Funds requested/ Final Appropriation

Appropriation Received not received Appropriation Received

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

265 695 265 695 - 247 344 214 636

212 507 212 507 - 190 442 189 647

329 702 329 702 - 318 899 315 927

Total 807 904 807 904 - 756 685 720 210

2015/16 2014/15

Note R'000 R'000

2 Departmental Revenue

Sales of goods and services other than capital assets 2.1 240 194

Sales of capital assets 2.2 10 -

Transactions in financial assets and liabilities 2.3 749 395

Total revenue collected 999 589

Less: Own revenue included in appropriation 14 320 569

Departmental revenue collected 679 20

2015/16 2014/15

Note R'000 R'000

2.1 Sales of goods and services other than capital assets 2

Sales of goods and services produced by the department 240 194

Sales by market establishment - 194

Other sales 240 -

Total 240 194

2015/16 2014/15

Note R'000 R'000

2.2 Sales of capital assets 2

Tangible assets 10 -

Machinery and equipment 28 10 -

Total 10 -

POLICY AND GOVERNANCE


Notes to the Annual Financial Statements

2015/16 2014/15

ADMINISTRATION

INSTITUTIONAL DEVELOPMENT

217

2015/16 2014/15

Note R'000 R'000

2.3 Transactions in financial assets and liabilities 2

Other Receipts including Recoverable Revenue 749 395

Total 749 395

2015/16 2014/15

Note R'000 R'000

3 Aid Assistance

Opening Balance - 227

As restated - 227

Paid during the year (227)

Closing Balance - -

2015/16 2014/15

Note R'000 R'000

4 Compensation of Employees

4.1 Salaries and wages

Basic salary 181 020 163 655

Performance award 4 130 6 673

Service Based 251 367

Compensative/circumstantial 5 643 5 571

Other non-pensionable allowances 36 215 31 748

Total 227 259 208 014

2015/16 2014/15

Note R'000 R'000

4.2 Social Contributions

Employer contributions

Pension 21 958 20 087

Medical 12 681 10 172

Bargaining council 49 36

Total 34 688 30 295

Total compensation of employees 261 947 238 309

Average number of employees 744 599

2015/16 2014/15

Note R'000 R'000

2.3 Transactions in financial assets and liabilities 2

Other Receipts including Recoverable Revenue 749 395

Total 749 395

2015/16 2014/15

Note R'000 R'000

3 Aid Assistance

Opening Balance - 227

As restated - 227

Paid during the year (227)

Closing Balance - -

2015/16 2014/15

Note R'000 R'000

4 Compensation of Employees

4.1 Salaries and wages

Basic salary 181 020 163 655

Performance award 4 130 6 673

Service Based 251 367

Compensative/circumstantial 5 643 5 571

Other non-pensionable allowances 36 215 31 748

Total 227 259 208 014

2015/16 2014/15

Note R'000 R'000

4.2 Social Contributions

Employer contributions

Pension 21 958 20 087

Medical 12 681 10 172

Bargaining council 49 36

Total 34 688 30 295

Total compensation of employees 261 947 238 309

Average number of employees 744 599

218

2015/16 2014/15

Note R'000 R'000

5 Goods and services

Administrative fees 37 75

Advertising 1 182 1 729

Minor assets 5.1 896 531

Catering 1 790 1 622

Communication 27 204 16 197

Computer services 5.2 39 952 16 382

Consultants: Business and advisory services 7 103 5 694

Legal services 2 988 1 768

Contractors 112 120 69 490

Agency and support / outsourced services 1 187 265

Audit cost – external 5.3 4 174 4 839

Fleet services 3 961 1 792

Consumables 5.4 4 621 5 744

Operating leases 7 424 7 582

Property payments 5.5 19 -

Transport provided as part of the departmental activities 951 836

Travel and subsistence 5.6 23 203 18 400

Venues and facilities 1 183 2 583

Training and development 1 295 1 924

Other operating expenditure 5.7 735 810

Total 242 025 158 263

2015/16 2014/15

Note R'000 R'000

5.1 Minor assets 5

Tangible assets 896 531

Machinery and equipment 896 531

Total 896 531

2015/16 2014/15

Note R'000 R'000

5.2 Computer services 5

SITA computer services 11 246 15 474

External computer service providers 28 706 908

Total 39 952 16 382

2015/16 2014/15

Note R'000 R'000

5.3 Audit cost – external 5

Regularity audits 4 174 4 839

Total 4 174 4 839

Included in Audit cost - external is an amount of R 362 571 paid to the Auditor-General on behalf of the North West Youth

Development Trust for audit fees.

219

2015/16 2014/15

Note R'000 R'000

5.4 Consumables 5

Consumable supplies 1 038 937

Uniform and clothing 33 189

Household supplies 575 606

Building material and supplies 8 109

IT consumables 342 33

Other consumables 80 -

Stationery, printing and office supplies 3 583 4 807

Total 4 621 5 744

2015/16 2014/15

Note R'000 R'000

5.5 Property payments 5

Other 19 -

Total 19 -

2015/16 2014/15

Note R'000 R'000

5.6 Travel and subsistence 5

Local 22 665 17 515

Foreign 538 885

Total 23 203 18 400

2015/16 2014/15

Note R'000 R'000

5.7 Other operating expenditure 5

Professional bodies, membership and subscription fees 20 81

Resettlement costs 356 374

Other 359 355

Total 735 810

2015/16 2014/15

Note R'000 R'000

6 Interest and Rent on Land

Interest paid 3 684 -

Total 3 684 -

2015/16 2014/15

Note R'000 R'000

7 Transfers and Subsidies

Departmental agencies and accounts ANNEXURE 1A 206 241 186 662

Public corporations and private enterprises ANNEXURE 1B 10 000 50 000

Households ANNEXURE 1D 5 271 5 407

Total 221 512 242 909

Unspent funds transferred to the above beneficiaries -

2015/16 2014/15

Note R'000 R'000

5.4 Consumables 5

Consumable supplies 1 038 937

Uniform and clothing 33 189

Household supplies 575 606

Building material and supplies 8 109

IT consumables 342 33

Other consumables 80 -

Stationery, printing and office supplies 3 583 4 807

Total 4 621 5 744

2015/16 2014/15

Note R'000 R'000

5.5 Property payments 5

Other 19 -

Total 19 -

2015/16 2014/15

Note R'000 R'000

5.6 Travel and subsistence 5

Local 22 665 17 515

Foreign 538 885

Total 23 203 18 400

2015/16 2014/15

Note R'000 R'000

5.7 Other operating expenditure 5

Professional bodies, membership and subscription fees 20 81

Resettlement costs 356 374

Other 359 355

Total 735 810

2015/16 2014/15

Note R'000 R'000

6 Interest and Rent on Land

Interest paid 3 684 -

Total 3 684 -

2015/16 2014/15

Note R'000 R'000

7 Transfers and Subsidies

Departmental agencies and accounts ANNEXURE 1A 206 241 186 662

Public corporations and private enterprises ANNEXURE 1B 10 000 50 000

Households ANNEXURE 1D 5 271 5 407

Total 221 512 242 909

Unspent funds transferred to the above beneficiaries -

220

2015/16 2014/15

Note R'000 R'000

8 Expenditure for capital assets

Tangible assets 56 815 49 339

Buildings and other fixed structures 29 43 078 37 730

Machinery and equipment 28 13 737 11 609

Total 56 815 49 339

8.1 Analysis of funds utilised to acquire capital assets - 2015/16

Voted Funds Aid assistance TOTAL

R'000 R'000 R'000

Tangible assets 56 815 - 56 815

Buildings and other fixed structures 43 078 43 078

Machinery and equipment 13 737 13 737

Total 56 815 - 56 815

8.2 Analysis of funds utilised to acquire capital assets - 2014/15

Voted Funds Aid assistance TOTAL

R'000 R'000 R'000

Tangible assets 49 339 - 49 339

Buildings and other fixed structures 37 730 - 37 730

Machinery and equipment 11 609 - 11 609

Total 49 339 - 49 339

2015/16 2014/15

8.3

R'000 R'000

Tangible assets

Machinery and equipment 7 790 3 955

Total 7 790 3 955

Finance lease expenditure included in Expenditure for capital assets

221

2015/16 2014/15

Note R'000 R'000

9 Unauthorised Expenditure

9.1 Reconciliation of unauthorised expenditure

Opening balance 16 000 16 000

As restated 16 000 16 000

16 000 16 000

2015/16 2014/15

9.2 R'000 R'000

Current 16 000 16 000

Total 16 000 16 000

9.3 R'000 R'000

16 000 16 000

Total 16 000 16 000

2015/16 2014/15

Note R'000 R'000

10 Cash and Cash Equivalents

Cash on hand - 11 712

Total - 11 712

Indicate the amount of significant cash and cash equivalent balances held by the department that are not available for use

Analysis of unauthorised expenditure awaiting authorisation per economic classification

Unauthorised expenditure incurred not in accordance with the purpose of the vote or main division

Analysis of unauthorised expenditure awaiting authorisation per type

Closing balance

Unauthorised expenditure amounting to R16 000 000 was approved by the Provincial Legislature on 15 March 2016 with funding.

The amount will be removed during April 2016 when the approved amount was received in the Departmental bank account.

Indicate any amounts of undrawn borrowing facilities that may be available for future operating activities and to settle capital

commitments, indicating any restrictions on the use of these facilities; and the amount and nature of restricted cash balances.

222

2015/16 2014/15

Note R'000 R'000

11 Prepayments and Advances

Staff advances 8 9

Advances paid 11.1 147 136

Total 155 145

2015/16 2014/15

11.1 Advances paid Note R'000 R'000

National departments Annex 5 147 136

Total 147 136

Current Non-current Total Current Non-current Total

Note R’000 R’000 R’000 R’000 R’000 R’000

12 Receivables

Claims recoverable 12.1 7 790 7 790 1 690 - 1 690

Recoverable expenditure 12.2 287 287 301 - 301

Other debtors 12.3 1 660 1 660 1 645 - 1 645

Total 9 737 - 9 737 3 636 - 3 636

2015/16 2014/15

Note R'000 R'000

12.1 Claims recoverable 12

Provincial departments 7 790 1 519

Local governments - 171

Total 7 790 1 690

2015/16 2014/15

Note R'000 R'000

12.2 Recoverable expenditure (disallowance accounts) 12

(Group major categories, but list material items)

255 292

32 9

Total 287 301

Salary reversal control account

Salary Tax debt

2014/152015/16

223

2015/16 2014/15

Note R'000 R'000

12.3 Other debtors 12

327 277

1 314 -

1 1

18 18

- 1 349

Total 1 660 1 645

2015/16 2014/15

Note R'000 R'000

13 Voted Funds to be Surrendered to the Revenue Fund


Transfer from statement of financial performance (as restated) 21 921 67 865

Voted funds not requested/not received 1.1 - (36 475)

Paid during the year (31 390) (5 616)

Closing balance 21 921 31 390

2015/16 2014/15

Note R'000 R'000

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

Opening balance 20 1 171

Transfer from Statement of Financial Performance (as restated) 679 20

Own revenue included in appropriation 320 569

Paid during the year (572) (1 740)

Closing balance 447 20

2015/16 2014/15

Note R'000 R'000

15 Bank Overdraft

Consolidated Paymaster General Account 3 451 -

Total 3 451 -

2015/16 2014/15

Note R'000 R'000

16 Payables - current

Clearing accounts 16.1 73 16

Other payables 16.2 - 67

Total 73 83

2015/16 2014/15

Note R'000 R'000

16.1 Clearing accounts 16

73 16

Total 73 16

Salary Income Tax

Debt Account Contriol Account

TNA overpayment on Contract Price

Salary Insurance Deductions

Salary Medical Aid

224

2015/16 2014/15

Note R'000 R'000

16.2 Other payables 16

- 14

- 15

- 38

Total - 67

2015/16 2014/15

Note R'000 R'000

17 Net cash flow available from operating activities

Net surplus/(deficit) as per Statement of Financial Performance 22 600 67 885

Add back non cash/cash movements not deemed operating activities 19 042 (2 989)

(Increase)/decrease in receivables – current (6 101) (1 698)

(Increase)/decrease in prepayments and advances (10) 2 190

Increase/(decrease) in payables – current (10) (9 331)

Proceeds from sale of capital assets (10) -

Expenditure on capital assets 56 815 49 339

Surrenders to Revenue Fund (31 962) (7 356)

Voted funds not requested/not received - (36 475)

Own revenue included in appropriation 320 569

Other non-cash items - (227)

Net cash flow generated by operating activities 41 642 64 896

2015/16 2014/15

Note R'000 R'000

18 Reconciliation of cash and cash equivalents for cash flow purposes

Consolidated Paymaster General account (3 451) -

Cash on hand - 11 712

Total (3 451) 11 712

2015/16 2014/15

Note R'000 R'000

19 Contingent liabilities and contingent assets

19.1 Contingent liabilities

Liable to Nature

Housing loan guarantees Employees Annex 2A 71 71

Claims against the department Annex 2B 9 169 9 169

Intergovernmental payables (unconfirmed balances) Annex 4 4 425 -

Total 13 665 9 240

Dwelling rentals due to the Department of Public Works, Roads and Transport

On the claims against the department the outflow is uncertain due to, according to our legal opinion the possiblility of the cases

being withdrawn or lack ing substance. We have a contingent liability for notice of motion for alleged unlawful termination, it is our

view that there are probabilities that the matter to be adjudicated by the court will be in our favour both with regards to contract

and the amount claimed. With regard to the intergovernmental payables the actual amount payable is uncertain as no detailed

accounts have been received to indicate responsibility by our department.

PSCBC

Bursaries

225

2015/16 2014/15

Note R'000 R'000

20 Commitments

Current expenditure

Approved and contracted 52 400 7 566

Approved but not yet contracted - 11 940

52 400 19 506

Capital Expenditure

Approved and contracted 12 936 120

Approved but not yet contracted - -

12 936 120

Total Commitments 65 336 19 626

2015/16 2014/15

R'000 R'000

21 Accruals and payables not recognised

21.1 Accruals

Listed by economic classification 30 days 30+ days Total Total

Goods and services 10 614 14 856 25 470 24 173

Transfers and subsidies - 75

Capital assets - 9 514

Total 10 614 14 856 25 470 33 762

2015/16 2014/15

Listed by programme level Note R'000 R'000

536 23 977

23 931 7 753

1 003 2 032

Total 25 470 33 762

21.2 Payables not recognised

Listed by economic classification 30 days 30+ days Total Total

Goods and services 1 715 8 954 10 669 2 766

Capital assets 155 29 184 699

Total 1 870 8 983 10 853 3 465

2015/16 2014/15

Listed by programme level Note R'000 R'000

1 011 523

8 489 2 819

1 353 123

Total 10 853 3 465

2015/16 2014/15

Included in the above totals are the following: Note R'000 R'000

Confirmed balances with departments Annex 4 11 237

Total 11 237

Administration



SITA invoices outstanding since 2014. Payables were not disclosed in 2014/2015 financial year.



The contracts for ICT has been outstanding and there were disputes on amounts for the Setsokotsane Project.

Administration

226

2015/16 2014/15

Note R'000 R'000

22 Employee benefits

Leave entitlement 15 089 11 933

Service bonus (Thirteenth cheque) 7 121 6 603

Performance awards 3 940 3 528

Capped leave commitments 9 232 8 843

Other 297 186

Total 35 679 31 093

23 Lease commitments

23.1 Operating leases expenditure

2015/16

Specialised

military assets Land

Buildings and

other fixed

structures

Machinery and

equipment Total

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

Not later than 1 year 546 331 877

Later than 1 year and not later than 5 years 580 580

Total lease commitments - - 546 911 1 457

2014/15

Specialised


Buildings and

other fixed

structures

Machinery and

equipment Total

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

Not later than 1 year - - 1 842 - 1 842

Total lease commitments - - 1 842 - 1 842

23.2 Finance leases expenditure **

2015/16

Specialised


Buildings and

other fixed

structures

Machinery and

equipment Total

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

Not later than 1 year 3 055 3 055

Later than 1 year and not later than 5 years 522 522

Total lease commitments - - - 3 577 3 577

2014/15

Specialised


Buildings and

other fixed

structures

Machinery and

equipment Total

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

Not later than 1 year - - - 4 652 4 652

Later than 1 year and not later than 5 years - - - 3 246 3 246

Total lease commitments - - - 7 898 7 898

At this stage the department is not able to reliably measure the long term portion of the long service awards. Included in the leave

entitlement amount are negative balance to the value of R36 261.16 and for 2014/2015 it amounted to R174 306.98

Provide a general description of the material leasing arrangements

Provide a general discussion on any assets that are sub-leased (if any), indicating the nature of the asset and the lessee

(occupant/user of the asset).

227

2015/16 2014/15

Note R'000 R'000


24.1 Reconciliation of irregular expenditure


Add: Irregular expenditure - relating to prior year 3 566 -

Add: Irregular expenditure - relating to current year 121 158 10 540

Irregular expenditure awaiting condonation 404 377 279 653

Analysis of awaiting condonation per age classification

Current year 124 724 10 540

Prior years 279 653 269 113

Total 404 377 279 653

2015/16

24.2 Details of irregular expenditure - current year R'000

Incident Disciplinary steps taken/criminal proceedings

280

22

134

45

6921

One quotation received Investigation finalised 303

Service rendered before order Investigation finalised 156

Supplier forms not submitted Investigation finalised 67

Unauthorised overtime payment Under investigation 79

Quotations accepted without

41

279

15711

2619

22292

72209

Total 121 158

Management is determining the full extent of irregular expenditure

Exceed cost containment measures Investigations found no irregularities

Tender processes not followed Investigations found no irregularities

declaration of interest Under investigation

Splitting of Order Under investigation

Not using SITA contract Investigated need Provincial Treasury approval

Exceed cost containment measures Investigated need Provincial Treasury approval

service was provided Under investigation

Legal Fees Under investigation

Implementing agents not following Under investigation

Insufficient appropriate eveidence that

Three Quotations not obtained and

deviation not approved Under investigation

Tender processes not followed Under investigation

228

2015/16 2014/15

25 Fruitless and wasteful expenditure R’000 R’000

25.1 Reconciliation of fruitless and wasteful expenditure


Fruitless and wasteful expenditure – relating to current year 3 684 224

Closing balance 27 588 23 904

25.2 Analysis of awaiting resolution per economic classification

Current 27 588 23 680

Total 27 588 23 680

25.3 Analysis of Current Year's Fruitless and wasteful expenditure 2015/16

R’000

3 079

271

145

23

166

Total 3 684

2015/16 2014/15

Note R'000 R'000

26 Related party transactions

2015/16 2014/15

No. of R'000 R'000

27 Key management personnel Individuals

Political office bearers (provide detail below) 1 2 173 2 275

Officials:

10 10 587 6 480

16 10 232 11 872

Total 22 992 20 627

Interest charged by Telkom Not investigated yet

Interest charged by Telkom Investigation in process.

Price escalation

Disciplinary steps taken and in process for

condonation

Interest charged by Telkom To be investigated

Incident Disciplinary steps taken/criminal proceedings

Interest charged on investigation Investigation in process.

Level 15 to 16

Level 14 (incl CFO if at a lower level)

North West Parks and Tourism Board and North West Provincial Council on AIDS

229

28 Movable Tangible Capital Assets

Opening

balance

Value

adjustments Additions Disposals Closing balance

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

MACHINERY AND EQUIPMENT 70 805 - 4 999 2 373 73 431

Transport assets - 1 512 - 1 512

Computer equipment 50 124 436 2 029 48 531

Furniture and office equipment 15 609 3 051 344 18 316

Other machinery and equipment 5 072 - - 5 072

70 805 - 4 999 2 373 73 431

Additions

28.1

Cash Non-cash

(Capital work-in-

progress

current costs

and finance

lease payments)

Received

current, not

paid (Paid

current year,

received prior

year Total

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

MACHINERY AND EQUIPMENT 13 737 - (7 790) (948) 4 999

Transport assets 1 512 1 512

Computer equipment 1 384 (948) 436

Furniture and office equipment 10 841 (7 790) 3 051

13 737 - (7 790) (948) 4 999

Disposals

28.2

Sold for cash

Non-cash

disposal Total disposals

Cash received

Actual

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

MACHINERY AND EQUIPMENT - 2 373 2 373 -

Computer equipment 2 029 2 029

Furniture and office equipment 344 344

- 2 373 2 373 -

TOTAL ADDITIONS TO MOVABLE TANGIBLE

CAPITAL ASSETS

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

TOTAL DISPOSAL OF MOVABLE TANGIBLE

CAPITAL ASSETS

230

28.3 Movement for 2014/15

Opening

balance

Prior period

error

Additions Disposals Closing

balance

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

MACHINERY AND EQUIPMENT 62 431 - 8 927 553 70 805

Computer equipment 42 062 8 533 471 50 124

Furniture and office equipment 15 297 394 82 15 609

Other machinery and equipment 5 072 - - 5 072

62 431 - 8 927 553 70 805

28.4 Minor assets

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 - - - 11 571 - 11 571

Additions 888 888

Disposals 266 266

TOTAL MINOR ASSETS - - - 12 193 - 12 193

Specialised

military assets

Intangible

assets

Heritage

assets

Machinery and

equipment

Biological

assets

Total

- -

6 073 6 073

- - - 6 073 - 6 073

Minor assets

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 - - - 11 062 - 11 062

Additions - - - 916 - 916

Disposals - - - 407 - 407

TOTAL MINOR ASSETS - - - 11 571 - 11 571

Specialised

military assets

Intangible

assets

Heritage

assets

Machinery and

equipment

Biological

assets Total

- - - - - -

- - - 5 752 - 5 752

- - - 5 752 - 5 752

TOTAL NUMBER OF MINOR

ASSETS

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Number of R1 minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Number of R1 minor assets

Number of minor assets at cost

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Number of minor assets at cost TOTAL NUMBER OF MINOR

ASSETS

231

28.5

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2016

Specialised

military assets

Intangible

assets

Heritage

assets

Machinery and

equipment

Biological

assets Total

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

Assets written off 160 160

- - - 160 - 160

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2015

Specialis-

ed

military

assets

Intangible

assets

Heritage

assets

Machinery and

equipment

Biological

assets Total

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

Assets written off - - - 407 - 407

- - - 407 - 407

29 Immovable Tangible Capital Assets

Opening

balance

Value

adjustments Additions Disposals Closing balance

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

46 546 - 14 241 6 942 53 845

Other fixed structures 46 546 14 241 6 942 53 845

46 546 - 14 241 6 942 53 845

Additions

29.1

Cash Non-cash (Capital work-in-

progress

current costs

and finance

lease payments)

Received

current, not

paid (Paid

current year,

received prior

year

Total

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

43 078 - (20 021) (8 816) 14 241

Other fixed structures 43 078 (20 021) (8 816) 14 241

43 078 - (20 021) (8 816) 14 241

Disposals

29.2

Sold for cash Non-cash

disposal

Total disposals Cash received

Actual

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

- 6 942 6 942 -

Other fixed structures 6 942 6 942

- 6 942 6 942 -

Movement for 2014/15

29.3

Opening

balance

Prior period

error

Additions Disposals Closing

balance

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

- - 46 546 - 46 546

Other fixed structures - 46 546 - 46 546

- - 46 546 - 46 546

S42 Immovable assets

29.4 Assets subjected to transfer in terms of S42 of the PFMA - 2015/16 No of Assets Value of Assets

R'000

BUILDINGS AND OTHER FIXED STRUCTURES - 53 845

Other fixed structures 53 845

TOTAL - 53 845

Assets subjected to transfer in terms of S42 of the PFMA - 2014/15 No of Assets Value of Assets

R'000

BUILDINGS AND OTHER FIXED STRUCTURES - 37 745

Other fixed structures - 37 745

TOTAL - 37 745

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

BUILDINGS AND OTHER FIXED STRUCTURES

TOTAL MOVABLE ASSETS

WRITTEN OFF

TOTAL MOVABLE ASSETS

WRITTEN OFF

Movable assets written off

This amount comprises of expenditure on rehabilitation of roads. Currently discussing transfer with regard to relevant authority.

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS


TOTAL DISPOSAL OF IMMOVABLE TANGIBLE

CAPITAL ASSETS

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015


ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016


TOTAL ADDITIONS TO IMMOVABLE TANGIBLE

CAPITAL ASSETS

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

232

ANNEXURE 1A

STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

2014/15

DEPARTMENT/AGENCY/ACCOUNT

Adjusted

appropriation


Available

Actual

Transfer

% of

Available

funds

transferred

Appro-

priation Act

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

North West Parks and Tourism Board 178 583 10 000 188 583 188 583 100% 166 142

North West Provincial Council of AIDS 17 658 17 658 17 658 100% 20 520

Total 196 241 - 10 000 206 241 206 241 186 662


Annexures to the Annual Financial Statements

TRANSFER ALLOCATION TRANSFER

ANNEXURE 1B

STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

2014/15

NAME OF PUBLIC

CORPORATION/PRIVATE ENTERPRISE

Adjusted

appropriation

Act


Available

Actual

Transfer

% of

Available

funds

transferred

Capital Current Appro-

priation Act

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

Public corporations

Subsidies 10 000 - - 10 000 10 000 100.0% - - 50 000

North West Development Corporation 10 000 10 000 10 000 100.0%

S A Express - 50 000

Sub total: Public corporations 10 000 - - 10 000 10 000 100.0% - - 50 000

TOTAL 10 000 - - 10 000 10 000 100.0% - - 50 000




ANNEXURE 1C

STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS

2014/15

NON-PROFIT INSTITUTIONS

Adjusted

appropriation

Act


Available

Actual

Transfer

% of

Available

funds

transferred

Appro-

priation Act

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

Transfers

A re Ageng 840 840 - 0% 840

840 - - 840 - 840

Total 840 - - 840 - 840




233

ANNEXURE 1D

STATEMENT OF TRANSFERS TO HOUSEHOLDS

2014/15

HOUSEHOLDS

Adjusted

appropriation

Act


Available

Actual

Transfer

% of

Available

funds

transferred

Appro-

priation Act

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

Transfers

Bursaries - 3 320 2 446

Other - 1 951 2 961

- - - - 5 271 5 407

Total - - - - 5 271 5 407




ANNEXURE 2A

STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2016 - LOCAL

GUARANTOR INSTITUTION Guarantee in respect

of

Original

guaranteed

capital

amount

Opening

balance 1

April 2015

Guarantees

draw downs

during the

year

Guaranteed

repayments/

cancelled/

reduced/

released

during the

year

Revaluations Closing

balance 31

March 2016

Guaranteed

interest for

year ended

31 March

2016

Realised

losses not

recoverable

i.e. claims

paid out

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

Housing

Standard Bank of South Africa 45 45 45

Old Mutual Div of Nedbank Ltd

(Formerly Permanent Building

Society) 26 26 26

Subtotal 71 71 - - - 71 - -

Total 71 71 - - - 71 - -



ANNEXURE 2B

STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016

NATURE OF LIABILITY Opening

balance

1 April 2015

Liabilities

incurred

during the

year

Liabilities

paid/

cancelled/

reduced

during the

year

Liabilites

recoverable

(Provide

details

hereunder)

Closing

balance

31 March 2016

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

Claims against the department

Loss of support and special damages 2 769 2 769

Damages to vehicles 3 400 3 400

Loss of earning capacity, future medical expenses and special damages 3 000 3 000

Subtotal 9 169 - - - 9 169

TOTAL 9 169 - - - 9 169



234

ANNEXURE 4

INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015

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

DEPARTMENTS

Current

Department of Justice and Consitutional Development 18 4 425 4 425 18

Department of Health 23 - 23

Department of Finance 11 196 11 196

Subtotal 11 237 4 425 - 4 436 237

Total Departments 11 237 4 425 - 4 436 237

TOTAL INTERGOVERNMENTAL 11 237 4 425 - 4 436 237



Confirmed balance

outstanding

Unconfirmed balance

outstanding

Total

ANNEXURE 3

CLAIMS RECOVERABLE

GOVERNMENT ENTITY 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015

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

DEPARTMENTS

National Department of Arts and

Culture 1 434 2 000 1 434 2 000

Department of Community Safety

and Transport Management - 19 - 19

Department of Education & Sports

Development 5 5 -

Department of Economic &

Enterprise Development 13 13 -

Department of Health 15 15 -

Department of Social Development 19 19 -

1 471 - 15 2 019 1 486 2 019

Total 1 471 - 15 2 019 1 486 2 019



Confirmed balance

outstanding

Unconfirmed balance

outstanding

Total

235

ANNEXURE 5

INTER-ENTITY ADVANCES PAID (note 14)

ENTITY

31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015

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

NATIONAL DEPARTMENTS

Government Communication and Information Systems 147 136 147 136

Subtotal 147 136 - - 147 136

TOTAL 147 136 - - 147 136



Confirmed balance

outstanding

Unconfirmed balance

outstanding

Total

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