kwazulu-natal provincial treasury: vote 6 provincial treasury: vote 6 kzn provincial treasury annual...

KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6

KZN Provincial Treasury Annual Report - 1 -

TABLE OF CONTENTS

PART A: GENERAL INFORMATION

A.1 Foreword by the MEC of Finance A.2 Introduction by the Head of Department A.3 Vision, Mission and Values A.4 Legislative and Other Mandates A.5 Strategic Outcome Oriented Goals

PART B: PROGRAMME PERFORMANCE

B.1 Programme 1: Administration B.2 Programme 2: Fiscal Resource Management B.3 Programme 3: Financial Management B.4 Programme 4: Internal Audit B.5 Programme 5: Growth and Development

PART C: GOVERNANCE INFORMATION

C.1 Introduction C.2 Risk Management C.3 Fraud and Corruption C.4 Minimising Conflict of Interest C.5 Code of Conduct C.6 Health and Environmental Issues C.7 Portfolio Committee C.8 SCOPA Resolutions C.9 Prior Modifications to Audit Reports C.10 Internal Control Unit C.11 Internal Audit and Audit Committees

PART D: HUMAN RESOURCE MANAGEMENT

D.1 Expenditure D.2 Employment and Vacancies D.3 Job Evaluation D.4 Employment Changes D.5 Employment Equity D.6. Performance Rewards D.7 Foreign Workers D.8 Leave Utilisation D.9 HIV and Aids and Health Promotion Programmes D.10 Labour Relations D.11 Skills Developments D.12 Injury on Duty D.13 Utilisation of Consultants



PART E: FINANCIAL INFORMATION

E.1 Report of the Accounting Officer E.2 Report of the Auditor-General E.3 Appropriation Statement E.4 Notes to the Appropriation Statement E.5 Statement of Financial Performance E.6 Statement of Financial Position E.7 Statement of Changes in Net Assets E.8 Cash Flow Statement E.9 Accounting Policies E.10 Notes to the Annual Financial Statements E.11 Disclosures Notes to the Annual Financial Statements E.12 Annexures to the Annual Financial Statements



PART A: GENERAL INFORMATION A1: FOREWORD BY THE MEC OF FINANCE, MS BF SCOTT

Provincial Treasury continues to strive to be the centre of excellence in financial and fiscal

management. I am very proud to say that Treasury has lived up to this vision by attaining our fifth

consecutive clean audit! To quote Aristotle “We are what we repeatedly do. Excellence is therefore

not an act, but a habit.”

Besides attaining a clean audit, there are a number of awards that were presented to Provincial

Treasury in 2013/14. These include receiving two Gold Awards, namely the Head of Treasury

receiving the Head of Department of the Year Award and Treasury as a department receiving the

Best Run Provincial Institution Award, both of which were presented at the recently held Premier’s

Service Excellence Awards. The Auxiliary Services unit entered the Batho Pele awards category

where they scooped a Bronze Award. Our Human Resources did very well again, receiving the

MPAT Award which is allocated to the best Human Resources unit in the public service. This is a

national award with a key focus on Management Performance Assessment as co-ordinated by the

Department of Performance Management and Evaluation. In addition, Human Resources was again

awarded with a Gold Award for being the best serving Human Resources within KZN.

As a province, we have done exceptionally well, with our Provincial Revenue Enhancement

Strategy contributing to the revenue over-collection of R282.907 million realised in 2013/14

(unaudited numbers). The province continued to implement careful cash management and fiscal

austerity measures and this resulted in KZN achieving a minor over-spending of R59.915 million, a

mere 0.1 per cent above budget, well within acceptable norms.

Provincial Treasury continues to make inroads in arrear government debt owed to municipalities.

Our focus has shifted to three specific risk areas, namely Department of Public Works (ensuring that

all municipal valuation rolls for state property agree to the Public Works immovable asset register

and ensuring that all municipal billing systems for state properties are credible; Department of

Human Settlements (ensuring that all municipal valuation rolls for state property agree to the

Human Settlements immovable asset register and to ensure that all municipal billing systems for

state properties are credible); Department of Education (ensuring payment of all Section 21 school

arrear debt and finding a sustainable solution for the payment of municipal services for Section 21

schools).

Provincial Treasury successfully completed capacity building interventions in the SCM components

of the Departments of Social Development, Sport and Recreation, Uthukela District Municipality,

Ugu District Municipality and Umtshezi Municipality. In these institutions, Treasury provided direct



assistance in managing the procurement processes. Comprehensive SCM compliance

assessments of all departments and municipalities were undertaken and findings were tabled at

Cabinet. Provincial Treasury successfully completed all phases of the Contract Management pilot

project in various pilot sites.

Municipalities continued to be assisted in areas of budget preparation, compliance with the MFMA,

capacity relating to the internal audit function, audit committee functions and to establish risk

management functions, among others. The delegated municipalities were supported with internal

audit, risk management and forensic audit support services. Through the municipal support

programme, 21 municipalities were assisted in various work streams, which included cashflow

management, internal control enhancement and VAT reviews.

Provincial Treasury has had a very productive and successful year with many achievements to be

proud of. Excellence is never an accident. It is the result of high intention, sincere effort, intelligent

direction, skilful execution and the vision to see obstacles as opportunities. – Anonymous.

Signed by

Ms BF Scott

MEC for Finance



A.2: INTRODUCTION BY THE HEAD OF DEPARTMENT

Over the past 20 years, South Africa has built a solid foundation on which to address its challenges.

The National Development Plan lays the basis for a new, more inclusive growth path for the next 20

years. The Plan seeks to focus the efforts of all South Africans in addressing poverty, inequality and

unemployment. For the plan to be fully realised it requires the involvement of all sectors within

South Africa and the state being one of them.

Our responsibility as Provincial Treasury is ensuring sound financial management and good

governance in provincial departments, government entities and municipalities in KwaZulu-Natal.

The hard work undertaken by dedicated men and women in improving financial management and

good governance in the province is laying the foundation for addressing poverty, inequality and

unemployment as expressed in the NDP.

The period under review has clearly shown that goals that were identified by the Provincial Treasury

in the Five Year Strategic Plan (2010–2015) are bearing fruits. These include amongst others:

promote good cash management and maintain favourable provincial cash positions; enhance

systems of supply chain management through developing and monitoring the implementation of

relevant systems; ensure efficient support to departments in planning for infrastructure and

implementation.

The 2013/14 MTEF budget presented to the legislature in March 2013 saw a R6.7 billion decrease

over the MTEF. The department has been working with other departments in the province to adjust

to the equitable share reductions. This included the review of all departments’ organograms in order

to eliminate some nonessential posts permanently and reporting to the Provincial Treasury the

funds that will be released from Compensation of employees as a result of this exercise.

Provincial Treasury continues to monitor and support municipalities in the areas such as budgeting,

supply chain management, cash flow management, internal controls and preparation of Annual

Financial Statements. As an additional supply chain management control in municipalities the

department has established Municipal Bids Appeal Tribunals in all districts.

The Provincial Treasury has received a clean audit from the Auditor General for the fifth consecutive

year. This is a major achievement considering that the Auditor General’s scope has increase over

the years to cover not only financial management but performance of the department as well.

Provincial Treasury continues to struggle in attracting and retaining key personnel with skills in

accounting, finance and economics. As a result the department has under-spent by R74,21 million



in the period under review. The under-spending is mainly due to the delays in filling of budgeted

vacant positions.

The sterling work that Provincial Treasury does was recognised in the KZN Premier Service

Excellence Awards held in July 2014. In the period under review the Provincial Treasury won in the

Best Head of Department for the Year and the Best Public Service Institution (Provincial) of the

Year.

In conclusion, it is my pleasure to present the 2013/14 Annual Report for KwaZulu-Natal Treasury.

Signed by Mr L S Magagula

Head: Provincial Treasury



A.3: Vision, Mission and Values

a) Vision

Be the centre of excellence in financial and fiscal management in the country.

b) Mission

To ensure equitable resource allocations for the Pr ovince of KwaZulu-Natal, analyse and

monitor government (provincial and local, including their public entities) revenue and

expenditure, and instil prudent financial managemen t and good governance.

Through robust public policy research, the Provincial Treasury will contribute to the realisation of

government policy priorities by ensuring that government interventions in the economy are targeted,

efficient, sustainable, and empower our people.

c) Values The core values of the department are as follows:

• Responsibility

• Efficiency

• Service Excellence

• Financial Discipline

• Professionalism

• Integrity

• Respect

• Loyalty

A.4: Legislative and Other Mandates

The department is governed by the following pieces of legislation and policy directives:

• The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996)

• Public Finance Management Act (Act No. 1 of 1999, as amended).

• Municipal Finance Management Act (Act No. 56 of 2003)

• Promotion of Access to Information Act (Act No. 2 of 2000)

• Annual Division of Revenue Act Provincial Appropriation Act

• Provincial Internal Audit Act ( KZN Act No. 2 of 2001)



• Preferential Procurement Policy Framework Act (Act No. 5 of 2000)

• Intergovernmental Relations Framework Act (Act No. 13 of 2005)

• Borrowing Powers of Provincial Governments Act (Act No. 48 of 1996)

• Government Immovable Asset Management Act (Act No. 19 of 2007)

• Public Audit Act (Act No. 25 of 2004)

• Provincial Tax Regulation Process Act (Act No. 53 of 2001)

• KwaZulu-Natal Gaming and Betting Act (Act No. 08 of 2010)

4.1 Constitutional Mandates

Sections 213, 215, 216, 217, 218, 219, 226, and 228 of the Constitution of the Republic of South

Africa (Act 208 of 1996) deal with general financial matters for the national and provincial spheres of

government. These sections require the national legislation to give effect to the following;

i. To establish a national treasury,

ii. To introduce generally recognised accounting practices,

iii. To introduce uniform treasury norms and standards,

iv. To prescribe measures to ensure transparency and expenditure control in all spheres of

government, and

v. To set the operational procedures for borrowing, guarantees, procurement and oversight over

the various national and provincial revenue funds.

4.2 Legislative Mandates

The following pieces of legislation that give mandate and outline the key responsibilities on the

department are as follows:

4.2.1 Public Finance Management Act (Act No. 1 of 1 999, as amended) and its regulations

The Act promotes the objective of good financial management in order to maximise delivery through

the efficient and effective use of limited resources.

The key objectives of the Act may be summarised as being to:

a) Modernise the system of financial management;

b) Enable public sector managers to manage, but at the same time be more accountable;

c) Ensure the timely provision of quality information; and



d) Eliminate waste and corruption in the use of public assets.

4.2.2 Municipal Finance Management Act (Act No. 56 of 2003)

Chapter 2 of MFMA outlines the general functions of National and Provincial Treasuries.

Section 5(3) and (4) of the MFMA highlight the supervisory responsibilities of Provincial Treasuries in

relation to ensuring sound and sustainable management of the fiscal and financial affairs of

municipalities and municipal entities by establishing norms and standards and other requirements.

To the extent necessary, to comply with its responsibilities in terms of the MFMA, a provincial treasury:

a) must monitor:

i. compliance with the MFMA by municipalities and municipal entities in the province;

ii. the preparation by municipalities in the province of their budgets;

iii. the monthly outcome of those budgets; and

iv. submission of reports by municipalities in the province as required in terms of the MFMA;

b) may assist municipalities in the province in the preparation of their budgets;

c) may exercise any powers and perform any duties delegated to it by the National Treasury in terms of the MFMA; and

d) may take appropriate steps if a municipality or municipal entity in the province commits a breach of the MFMA.

4.2.3 Promotion of Access to Information Act (Act N o. 2 of 2000)

Section 14 requires the department to produce a manual with detailed information about the

department’s procedure to access it, the form to be used and which information is readily available

and which needs to be requested. Section 32 of the Act stipulates that the department must submit an

annual report to the Minister of Justice detailing requests received, those acceded or rejected and

reasons for rejection.

4.2.4 Annual Division of Revenue Act

a) This Act provides for the equitable division of revenue anticipated to be raised nationally

among the national, provincial and local spheres of government.

b) It promotes better co-ordination between policy, planning, budget preparation and execution

processes between and within the different spheres of government.

c) It promotes predictability and certainty in respect of all allocations to provinces and

municipalities in order that such governments may plan their budgets over a multi-year period.



d) It promotes transparency and equity in the resource allocation process.

e) It promotes accountability by ensuring that all allocations are reflected on the budgets of

receiving provinces and municipalities.

4.2.5 Provincial Appropriation Act

These Acts provide for the appropriation of money from the Provincial Revenue Fund for the

requirements of the Province.

4.2.6 Provincial Internal Audit Act (KZN Act No. 2 of 2001)

This act provides for the establishment of the Provincial Internal Audit Unit so as to regulate the

internal audit function and to regulate the degree to which transparency, accountability and sound and

prudent management as contemplated in the Public Finance Management Act.

4.2.7 Preferential Procurement Policy Framework Act (Act No. 5 of 2000)

This act gives effect to Section 217 (3) of the Constitution by providing a framework for the

implementation of procurement policy.

The framework for the implementation of preferential procurement policy requires all organs of state to

have their preferential procurement policy and implement them within a prescribed set of criteria that

applies preference points system with emphasis to previously disadvantaged groups.

4.2.8 Intergovernmental Relations Framework Act (Ac t No. 13 of 2005)

The object of this act is to provide within the principle of co-operative government set out in Chapter 3

of the Constitution a framework for the national government, provincial governments and local

governments, to facilitate co-ordination in the implementation of policy and legislation, including:

(a) Coherent government;

(b) Effective provision of services;

(c) Monitoring implementation of policy and legislation; and

(d) Realisation of national priorities.



4.2.9 Provincial Borrowing Powers Act (Act No. 48 o f 1996)

This Act provides for norms and conditions in respect of the borrowing powers of Provincial

governments and for matters incidental thereto.

4.2.10 Government Immovable Asset Management Act ( Act No. 19 of 2007)

The department has a responsibility to implement all applicable sections of this Act in managing its

immovable assets or when providing support and advisory services to the provincial departments.

4.2.11 Public Audit Act (Act No. 25 of 2004)

The department has a responsibility to comply with all applicable provisions of the Public Audit Act as

an auditee.

4.2.12 Provincial Tax Regulation Process Act (Act No. 53 of 2001)

This Act provides the regulation of intergovernmental process that must be followed by provinces in

the exercise of their power in terms of section 228 of the Constitution to impose taxes, levies and

duties, the flat-rate surcharges on the tax basis of any tax, levy or duty imposed by national legislation;

and to provide for connected therewith.

4.2.13 KwaZulu-Natal Gaming and Betting Act (Act No . 08 of 2010)

This act provides for the regulation of gaming, horse racing and batting in the Province of KwaZulu-

Natal.

4.3 Policy Mandates

The following policies outline the key responsibilities for the department:

(a) PPP policy, this policy provides guidelines for administration and managing Public Private

Partnerships transactions in the public sector environment.

(b) SCM and PPPFA policy, this policy provides guidelines for the administration of a Supply

Chain Management in line with broad government objectives. It also aims at promoting

emerging enterprises with particular emphasis on black economic empowerment.

(c) Budgeting process policies, they provide framework within which budgeting process must be

managed in the public sector in line with the relevant Acts.

(d) Treasury Regulations, provides procedural guidelines of implementation of the Public Finance

Management Act (Act 1 of 1999 as amended by Act 29 of 1999).



4.4 Service Delivery Improvement Plan

TABLE 1.1 - Main Service for Service Delivery Improvement and Standards

Main Services Actual Customers Potential Customers Standard of Service

Actual Achievement against Standards

Recruitment & HR Admin

Staff and Prospective Graduates, Government Employees and members of the Public

100% compliance to standards contained in the Service commitment Charter

100%

Human Resource Development

Staff and learners Graduates 100% achievement of WSP strategies

78%

EH&W Staff Referrals within 5

days and 4 information seminars

100% and 10 seminars

Policy Development Staff Prospective 8 policies and 8 seminars

13 policies & 12 seminars

TABLE 1.2 - Consultation Arrangements for Customers

Type of Arrangement Actual Customer Potential Customer Actual Achievements

Consultative Forum Organised labour & representatives of every Business Unit within the Department.

n/a Conducted 4 Meetings

Customer surveys Treasury staff n/a 1 Survey Exit Interviews Exiting Employees n/a 21 Exit Interviews TABLE 1.3 - Service Delivery Access Strategy Access Strategy Actual Achievements HR Portal developed and continuously maintained

Fully updated portal

TABLE 1.4 - Service Information Tool Type of Information Tool Actual Achievements

Information Seminars 22 seminars. HR Portal developed and continuously maintained

Fully updated portal

TABLE 1.5 - Complaint Mechanism Complaint Mechanism Actual Achievements

Complaint procedure 100% compliant HR Customer Services 100% per charter



4.5 Organisational Environment

The 2013/14 MTEF was the hardest, in fiscal terms, in the history of the province and required

vigilance on the part of the Provincial Treasury. Two fiscal shocks emerged which resulted in the

provincial baseline being reduced by R1 billion in 2013/14; R2 billion in 2014/15 and R2.5 billion in

2015/16. First, the results of the 2011 Census data indicated a decline in the share of population in

the province thus necessitating a downward revision of the provincial equitable share allocation.

Second, a country-wide budget reduction has also affected KwaZulu-Natal’s baseline negatively.

These budget reductions are an attempt at reigning in on public spending so that the country’s annual

deficits are moderated and the concomitant stock of debt is stabilised and reduced going forward.

Dealing with these fiscal shocks it required the Provincial Treasury to:

• Monitor expenditure more closely to ensure that the province does not overspend its budget,

• Vigorously implement cost-cutting measures to eliminate unnecessary spending,

• Reduce and eliminate irregular expenditure,

• Modernise supply chain management processes to eliminate fraud and corruption,

• Continue the deployment of the infrastructure “crack” team to ensure value for in infrastructure

development

These measures ensured that the province delivers on its mandate despite a reduced budget.

A 5. Strategic Outcome Oriented Goals

The strategic goals of the Provincial Treasury are as follows:

• To promote sound financial and fiscal management and good governance.

• To place strong emphasis on fighting poverty and creating jobs in partnership with provincial

departments through procurement targeting.

• To focus on the enhancement of broad-based BEE through effective Supply Chain

Management policies.

• To implement a policy on zero tolerance on fraud and corruption.

• To ensure good financial management with the elimination of over-expenditure and the

reduction of rollovers.

• To target government investment in service delivery.

• To promote sound cash management practices and improve liquidity in the province.


PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 014


PART B: PROGRAMME PERFORMANCE

B.1 Programme 1: Administration Purpose: The purpose of this programme is to provide service support to the core programmes

within the department.

The Strategic Objectives are:

1. To provide strategic administrative and political leadership, in order to ensure effective and

efficient service delivery as mandated by government.

2. To provide strategic financial leadership support, effective financial management, human

resources, corporate services, and information systems services to the department.

3. To ensure effective management of the department’s financial resources in line with the

statutory requirements.

4. To provide strategic human resources management support services to the department

and to ensure compliance with relevant National and Provincial legislative mandates.

Service Delivery Achievements:

Office of the MEC

• Operation “Pay on Time”

The initiative of “Operation Pay on Time” by government departments received great approval

among service providers by providing an option of approaching Treasury to intervene on their

behalf to facilitate payment within 30 days of receiving the invoices for services provided.

SMMEs often suffered and others closed down due to long turn-around time for payment by

government departments. Treasury provided a toll free number and hired staff to intervene on

behalf of service providers and engage the departments on reasons for taking more than 30

days to pay. The initiative has unblocked a number of cases and enhanced the perception of

businesses towards the government of KwaZulu-Natal.

• Infrastructure Crack Team

Infrastructure development is high on government priorities but often experience delays due to

poor financial management, lack of appropriate skills, poor project management and sometimes

political interference. The crack team is made up of experts in various areas in infrastructure

development who are normally deployed by Treasury to intervene when there are issues




resulting in slow progress and sometimes complete failure to meet deadlines or development

milestones. The Infrastructure Crack Team facilitates solutions and monitor progress until the

project is completed.

• Financial Education

The establishment of the KZN Financial Literacy Association made of about 106 member

organisations about 4 years ago is one of the greatest achievements of the Finance Ministry in

promoting public financial literacy. It is a unique partnership of organisations with common

interest on mitigating debt management and spending money wisely. The interventions are

packaged to meet 6 focus groups which are:

o In-school youth

o Out of school youth

o Government employees

o Women and vulnerable groups

o SMMEs and

o Traditional Leaders

Although the developments are such that the initiative will assume the status of the NPO it will

remain as one of the important achievements pioneered by the MEC for Finance which touched

a broad spectrum of the public as indicated in focus groups above.

The initiative is well received because of its positive impact on poverty alleviation, opportunities

to share good practices and teaching of basic financial management skills.

• Operation Sukuma Sakhe

Through Operation Sukuma Sakhe road shows Ministry reached a wider community of

Umgungundlovu District and encouraged functionality of War Rooms to resolve issues of service

delivery. Campaign Against Social Ills in Northdale and Vulindlela attracted huge participation of

the community and resulted in a number of arrests of drug dealers especially in Northern areas.

The other major road show attended by about 10,000 people was held in Swayimane where the

Premier and all Executive visited projects and addressed the public. The MEC and Inkosi Molefe

held another successful campaign against social ills in Impendle in July 2014.




• Cost Cutting Measures

With the full support of the Cabinet, Treasury implemented Cost Cutting Measures to curb

increasing spending patterns by provincial departments. As a result, the R5 billion over

expenditure projection was reduced to R1,692 billion subsequently turned around. The current

financial position of the Province is healthy with an estimation of R5 billion cash positive

accumulating interest every month.

The famous Cost Cutting Measures in KZN remained in force since about three years ago and

was welcomed by National Treasury who gazetted them in 2014 and rolled throughout the

country as a way of controlling expenditure at all levels in government.

• Operation Sukuma Sakhe (OSS) discretionary allocati on

The MEC’s Operation Sukuma Sakhe discretionary allocation was used to intervene in cases of

demonstrable hardship to promote the aims and objectives of OSS campaign. Much of the

allocation was spent to purchase school uniform for over 3000 needy children identified through

the war rooms in the district.

To promote sports and intervene on social ills among youth, soccer kits were purchased for

three soccer clubs in each of the 7 municipalities to encourage healthy body and sports in

general.

Office of the Head of Department

This sub-programme provides support to the Executive Authority in providing strategic and

political direction to provincial departments, public entities, as well as municipalities.

Some achievements of the Office of the Head of Department are:

a) The Office of the Head of Department continues to ensure that the department fulfils its

mandate in terms of the PFMA and the MFMA. This includes facilitating the tabling of the

MTEF and Budget Adjustment process to Cabinet.

b) The HOD has continued with much success to emphasise the need to save so that the

Province, in the long run, can mitigate the impact of a reduction in the equitable share which

occurred as a result of a decrease in the KZN population.

c) The Head of Department has been instrumental in the implementation of key projects that

impact on financial management and social governance in KZN, such as the Provincial

Recovery Plan, Contract Management Framework and Infrastructure Crack Team.




d) The Head of Department provides strategic leadership in policy development through his co-

chairmanship of the Economic Sector and Infrastructure Development Cluster and his

participation in various policy discussions on financial management and economic

development.

e) Under Operation Sukuma Sakhe, the Office of the HOD achieved the following:

• The HOD has been engaging private companies to be involved in Operation Sukuma

Sakhe. As a result of this, there is a teacher support programme that the department

together with KPMG started in May 2014. The programme is aimed at capacitating

teachers of mathematics, accounting and economics in eThekwini high schools in order

to improve matric results in these subjects. Through this intervention the two

organizations ultimately want contribute in addressing the skills gap within the finance

sector.

• The HOD continued with his assistance in the back to school campaign. This saw 250

poor learners from different schools in eThekwini receiving much needed school shoes.

f) The sterling work that the HOD of Provincial Treasury does has not gone unnoticed. At

the Premier Service Excellence Awards Mr Magagula won in the category for best Head

of Department for 2013/14.

Office of the CFO

The objectives of this unit are to render financial and supply chain management functions to

Provincial Treasury.

Some achievements of the Office of the CFO include the following:

• The Treasury internal control unit has been responsible for the reviewing of all invoices

produced for payment by external service providers. The unit has been able to prevent,

detect and correct any internal control deficiencies.

• An average of 98% of all invoices received was settled within prescribed 30 days period as

per treasury regulations.

• The department continued to maintain an error free asset register, there were no audit

findings raised in this area of work.




• The CFO office has facilitated the departmental audit and received five consecutive clean

audits, and it is optimistic that a sixth clean audit will be achieved for the 2014/15 audit. All

audit issues raised during the previous audit were resolved timeously.

• The budget of the department was managed successfully and there was no over spending.

Corporate Services

This sub-programme contains various support services to ensure that the service delivery units

of Provincial Treasury have the required telecom system, transport fleet, etc. to support their

operations. Besides this, though, the Human Resource Management unit within Provincial

Treasury provides strategic human resources management and development support services

to the department and ensures compliance with relevant national and provincial legislative

mandates.

Human Resource Management

Achievements for 2013/14 are as follows:

• During 2013/14, the Human Resource Management and Development Directorate fulfilled all

of its legislative mandates and delivered an efficient and professional Human Resources

function to the department. The continuous success of the unit resulted in them once again

receiving the Gold Award from the Premier, Mr SE Mchunu, during the 2013 HR Convention

for the “Best serving Human Resources” in the Province of KwaZulu-Natal. The Unit’s

success in HR legislative compliance was further recognized through the MPAT assessment

administered by the Office of the Presidency, where the Unit was identified as a top

performer within KZN in comparison to all other HR MPAT assessments.

• The unit has successfully implemented all planned Human Resource Planning strategies for

the year, thereby ensuring a well capacitated and healthy workforce that is appropriately

skilled and empowered.

• The unit has exceeded its requirements in terms of empowering the organisation as a whole

on all Human Resource related knowledge and information in terms of the number of policies

that were developed and work-shopped. The organisation as a whole is 100 per cent

compliant to all requirements of the performance management and development system,

which is efficiently and professionally implemented and monitored by the Human Resources

Directorate.




• Succession planning within the department, aimed at increasing the pool of female

candidates, have been successfully implemented and monitored in respect of the following

scarce skilled posts; the Provincial Accountant-General; the Senior Manager and Deputy

Manager – Banking within the Financial Assets and Liabilities Unit.

• In respect of the Wellness Clinic, there has been an overall increase in the number of

officials’ testing in respect of HIV, glucose levels, cholesterol and blood pressure. The Unit

has developed four Department Specific Operational Plans dealing with each pillar of the

EHW Strategic Framework namely, Wellness management; Health and Productivity

Management; HIV and TB Management and SHERQ Management.

• The disability audit carried out within the Department during 2013 yielded positive results

improving the disability statistics from 0.72% to 1.02%.

• Provincial Treasury’s partnership with SAICA on the Thuthuka Bursary Fund, where

Treasury is sponsoring 100 previously disadvantaged students studying to become

Chartered Accountants is in its second year since inception. The program is yielding positive

results thus far and by the end will ensure the necessary skills within departments,

municipalities and entities, assisting with prudent financial and fiscal management. The

department has budgeted R16 million for this project.

• A further empowerment strategy for women is the management training program for

unemployed Chartered Accountants who are employed for three year duration and

empowered with the necessary management competencies and skills at MMS and SMS

level, thereby empowering them to compete equally for management vacancies within the

Department and the open labour market at large.




PROGRAMME ONE: ADMINISTRATION

1.1 Office of the MEC: To provide strategic administrative and political leadership, in order to ensure effective and efficient service delivery as mandated by government.

Programme / Sub-programme Output

Performance Measures

1stQtr Planned Output

1stQtr Actual Output

2ndQtr Planned Output

2ndQtr Actual Output

3rdQtr Planned Output

3rdQtr Actual Output

4thQtr Planned Output

4thQtr Actual Output

Target for 2013/14 as per APP

Actual Output 2013/14

Minutes of meetings scheduled and attended.

90% attendance of Provincial Cabinet and Legislature meetings scheduled

10 17 10 15 10 15 10 14 40 61

Publications Number of publications

5 13 5 13 5 10 5 10 20 46

Free Publicity (news bulletins and articles)

Free Publicity (news bulletins and articles)

20 30 20 30 20 20 30 30 90 110

Media briefings Media briefings on service delivery

1 2 1 1 1 1 1 1 4 5

1.2 Office of the HOD: To ensure effective leadership, management and technical support to the Provincial Treasury through continuous refinement of organisational strategy and structure in compliance with appropriate legislation and best practice













Cabinet memoranda on budget performance approved by the MEC and tabled at Cabinet per quarter

Cabinet memoranda on budget performance approved by the MEC and tabled at Cabinet per quarter

1 budget performance report to Cabinet








4 Budget performance reports to Cabinet

4 Budget performance reports to Cabinet

Tabling of MTEF, Adjustment budget in terms of PFMA at the Legislature and Cabinet

Tabling of MTEF, Adjustment budget in terms of PFMA at the Legislature and Cabinet

NA NA NA NA

Table Budget

Adjustment at Cabinet

Tabled Budget

Adjustment at Cabinet

Table EPRE at Cabinet

Tabled Second Budget

Adjustments Estimate

Table EPRE and Adjustment Budget, in terms of PFMA at Legislature and Cabinet (2)

Tabled EPRE and Adjustment Budget, in terms of PFMA at Legislature and Cabinet (2)

Number of meetings attended

Number of scheduled Budget Council meetings attended

Attend all national budget council meetings

1 National Budget Council meeting


1 Technical Committee Meeting


1 National Budget Council meeting


1 National Budget Council

meeting and 1 Technical Committee Meeting

Attend all national budget council

meetings

Attended all national budget council

meetings




1.3 Office of the CFO: To ensure effective management of the departmental finances resources in line with statutory requirements Programme / Sub-programme Output












Financial Management Support Plan

Compile Budget submission and Strategic planning documents (EPRE & APP)

N/A N/A 2 2 1 1 1 1 4 4

Financial Management Support Plan

Provide legislative financial reports ( IYM X 12, AFS X 1, QPR X 4 & Annual Report X 1)

5 5 5 6 4 4 4 5 18 20

Number of reports produced

Number of SCM compliance reports generated

3 3 3 3 3 3 3 3 12 12

Implemented Financial Reform

Number of asset verification exercises

N/A N/A 1 0 N/A 1 1 1 2 2

1.4 Human Resource Management and Development : To provide optimal Human resource services to the Department













HR Charter Percentage of HR services as per HR Charter

100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

HR Service Seminars Number of HR seminars

2 sessions 3 seminars 2 sessions 3 seminars 2 sessions 3 seminars 2 sessions 3 seminars 8 sessions 12 sessions

HR Seminars (EWP) Number of EWP seminars

1 seminar 2 seminars + 1 during induction

1 seminar 3 EWP related seminars

1 seminar 3 EWP related seminars

1 seminar 1 Seminar 4 information seminars 10 information

seminars

HR Policy Sessions

Number of policies developed/ Reviewed and seminars conducted

2 policies and 2

seminars

3 policies and 3

seminars

2 policies and 2

seminars

3 policies and 3

seminars

2 policies and 2

seminars

3 policies and 3

seminars

2 policies and 2

seminars

4 policies and 3 seminars



HR Resource, Workplace Skills and Employment Equity Plans

Percentage achieved from the Human Resource Plan and Workplace Skills Plan

100% HRP=100%; WSP=72.67

% 100%

HRP=95.16% ;

WSP=91.13%

100% HRP=100%

; WSP=76%

100% HRP=93% ; WSP=73%

100% HRP=97% WSP=78%




B.2 Programme 2: Fiscal Resource Management

This programme consists of three service delivery units, namely Economic Analysis and

Infrastructure, Public Finance and Municipal Finance. The main aim of the programme is the effective

management and monitoring of the provincial and local government fiscal resources and budget

processes. It also includes the management of the Infrastructure Crack Team. The achievements of

the teams responsible for these functions are commendable, and include the successful maintenance

of the cost-cutting measures and the resultant provincial positive cash balance. These teams play a

pivotal role in the continued improvement of fiscal stability in the province.

Economic Analysis and Infrastructure

Service Delivery Achievements

This sub-programme will continue to provide an informed and well-researched fiscal framework for

the allocation of resources and the monitoring of expenditure trends. The unit will also ensure

efficient planning and management of infrastructure by the province.

Economic Analysis

• Publication of first ever Provincial Socio-Economic Review (SERO).

• Provided economic input to the Estimates of Provincial Revenue and Expenditure (EPRE).

• Provided economic input to the Municipal Finance Quarter Review Close-Out Reports.

• Publication of four Economic research reports.

• Successful publication of the following quarterly reports:

o Provincial GDP

o Provincial Risk Monitor

o Provincial Labour Market Review

o Provincial Leads and Lags Analysis

• Successful economic profiling of 9 District Municipalities.

• Successful participation in various Integrated Development Plan (IDP) workshops and

meetings.

• Successful participation in various Local Economic Development (LED) workshops and

meetings.

• Successful participation in the Financial Literacy Association, and various other research

forums.

• Successful participation in rural development projects (Luwamba : Ntambanani Projects).




• Successful participation in Operation Sukuma Sakhe (Mkhambathini Local Municipality).

Infrastructure Management

The Cabinet adopted the implementation of the Infrastructure Delivery Management System (IDMS)

in the Departments of Health and Education in 2012/13. This decision provided the platform for the

roll-out and participation by these two departments in the IDMS as well as the Department of Public

Works and the Provincial Treasury. The introduction of the management system ensured the overall

improvement in the implementation of Infrastructure Development Improvement Plan in the province.

The Infrastructure Unit –

• supported to National Treasury and eThekwini Municipality in piloting IDMS implementation

for municipalities and participated in National Treasury’s pilot IDMS training at the University

of Pretoria;

• undertook the training and implementation of the Infrastructure Report Management (IRM)

tool in the Departments of Education, Health and Transport;

• is responsible for the Infrastructure Crack Team and successfully deployed resources to the

Departments of Agriculture, Public Works, Education, COGTA, Human Settlements, Treasury,

ADA, Arts and Culture and KZN Wildlife as well as to the municipalities of Msunduzi,

Nongoma, Pongola, Edumbe, Uthukela, Mtubatuba, Greater Kokstad, Hibiscus Coast,

Hlabisa, AbaQulusi, Umkhanyakude, Ethekwini, uMhlatuze, Umdoni, Ulundi and Endumeni.

Special Projects

The Infrastructure and Economic unit has been instrumental in various special projects approved by

the Cabinet such as –

• the upgrading and development of five regional airports in KZN;

• the successful hosting of the KZN Winter Air, the Zululand Race of Champions and the

Durban Land, Sea and Air Festival;

• Supporting the hosting of international cycling events in Pietermaritzburg;

• Project Managing the Bhongweni and Shayamoya projects in the Greater Kokstad

Municipality;

• Hosting Corporate, Infrastructure and SME Funding Fairs whereat over R500m worth of

projects received funding; and

• Investigating the establishment of four Techno Hubs in the province and raising R120m in

donor funding therefor.




The Economic Unit produced the following four research articles:

• Infrastructure Funding & Delivery: A KwaZulu-Natal Case Study.

• The Composition of KZN Public Expenditure and Provincial Economic Growth: A VAR and

GMM Approach.

• Growth-Maximizing Allocation of Provincial Public Capital – a KwaZulu-Natal Case Study.

• Is the Municipal Bond Market a Viable Option for KwaZulu-Natal Based Municipalities.

Public Finance


The Public Finance unit continued to perform its mandate as prescribed by the PFMA and Treasury

Regulations. This included the preparation of the annual MTEF budget for the province, preparation

of the Adjustments Budget, as well as revenue and expenditure monitoring of departments and public

entities. The spending, revenue and service delivery of all 16 departments were monitored and these

inputs were used to:

o Keep Cabinet updated on a monthly basis on the budget performance of the province.

o Prepare quarterly budget performance reports.

o Brief the Finance Portfolio Committee on the Mid-year and Close-out budget performance of

the province.

o Hold bilateral meetings with departments to engage on spending trends.

• Monitoring of public entities’ spending and legislative compliance continued in 2013/14with bi-

annual budget performance reports also being prepared in respect of mid-year and end-of-year

revenue, expenditure and service delivery performance for the listed entities. Bilaterals were held

with these entities, together with their transferring departments.

• The 2013/14 Adjustments Budget for KZN was tabled in the Legislature on 28 November 2013.

• The 2014/15 MTEF budget for KZN was tabled in the Legislature on 11 March 2014. The MTEF

allocations continue to provide for enhanced service delivery for the people of KwaZulu-Natal

with continued focus on the fiscal austerity measures to ensure that we eliminate wastage from

the system. In this regard, National Treasury also issued an Instruction Note on cost-cutting for

implementation by provinces.

• Provincial Treasury continues to ensure that it provides for unforeseeable fiscal shocks, and the

province therefore continues to budget for a surplus of close to R1 billion per annum over the

next three MTEF years. This will ensure that government programmes remain funded in cases

where national tax revenues fall short of the budget in the period ahead, and acts as a cushion

when KZN’s buffer funding falls away in 2016/17.




• Closer ties were established with the Department of Health in developing a strategy to enhance

their revenue. Provincial Treasury deployed contract workers to this department to assist in the

setting-up of claims to the RAF and medical aid schemes. However, one of the major challenges

that continue to impede efforts to optimise revenue collections is the manual system that is used

in most health institutions.

The impact of these achievements is as follows:

• The benefits of fiscal prudence have been demonstrated beyond a doubt in KZN. The fiscal

austerity measures which were first introduced in 2009/10 have borne fruit, as KZN was able to

repay its overdraft in a mere 18 months as opposed to the 3 years it was initially planned to take.

• These successes continued to be seen in 2013/14, where Provincial Treasury continued to

monitor departments’ and public entities’ spending patterns. As such, the province was able to

react appropriately when pressures arose in-year. KZN was thus able to manage its budget very

well in 2013/14, with the province over-spending by a mere 0.1 per cent or R59.915 million

(according to unaudited numbers), which is well within the acceptable norms.

• The austerity measures have become the norm in KZN, with departments and public entities

being urged to redirect savings realised from these measures, into service delivery spending

areas for the benefit of the people of the province.

• As a result, the province remains with a healthy cash positive bank balance. A report on the

provincial bank balance is submitted to Cabinet, as part of the Budget Performance Report

submitted monthly. This keeps Cabinet up to date in terms of the cash in the bank, and allows for

swift action to be taken where departments are exceeding their agreed-to overdraft limits.

Municipal Finance

This programme is responsible for ensuring the efficient budget management and accurate financial

reporting at local government and also provides technical support to delegated municipalities.


The Municipal Finance Unit continued with its primary focus on promoting good municipal budgets,

sound fiscal management and monitoring the implementation of municipal budgets for all 58

delegated municipalities which includes the following areas:

Supporting all delegated municipalities in the preparation of the Medium Term Revenue and

Expenditure Framework (MTREF) Budgets,

Assessing the MTREF budgets to establish whether, these budgets are credible, sustainable and




comply with the provisions of the Municipal Finance Management Act (MFMA), Municipal Budget and

Reporting Regulations (MBRR) and other related legislations. The other most critical element of

assessing municipal budgets is to establish whether the budgets are funded or not, in order to ensure

the delivery of municipal services as well as the sustainability of municipalities.

Monitoring the implementation of municipal budgets and preparing the monthly and quarterly reports

as well as assessing the Mid-Year Budget and Performance Assessment reports on the budget

performance of all delegated municipalities.

The Municipal Finance Unit assessed the 2013/14 Draft Budgets of all delegated municipalities with

exception of one municipality, namely, Dannhauser Municipality. The feedback reports on key

findings of assessed draft budgets were provided to all municipalities. The Draft Budget of

Dannhauser Municipality could not be assessed due to incomplete budget information.

Prior to providing final feedback letters and comments to municipalities on assessed 2013/14 Draft

Budgets, the Unit conducted bilateral meetings with 54 municipalities to discuss its findings on the

Draft Budgets. These meetings could not be held with uMshwathi, Nquthu and Indaka Municipalities

due to the unavailability of key officials at these municipalities.

The Unit conducted a high level assessment of the adopted 2013/14 Final Budgets of all the

delegated municipalities with a view of establishing whether the Provincial Treasury’s comments and

recommendations provided on the Draft Budgets were considered in the Final Budgets. The

feedback on these assessments was also provided to all the delegated municipalities.

The Unit monitored the submission of the 2013/14 Mid-Year Budget and Performance Assessment

reports from all delegated municipalities which were due to Provincial and National Treasuries by 25

January 2014 in line with the provisions of the MFMA.

With the exception of Msinga and Dannhauser Municipalities, the assessment on the 2013/14 Mid-

Year Budget and Performance Assessment reports for all delegated municipalities was conducted

with the intention of providing input and guidance to the municipalities in the preparation of the

2013/14 Adjustments Budgets. Similar to the Draft Budget process, 49 municipalities were visited

and engaged on the findings of the assessed Mid-Year Budget and Performance reports prior to

issuing final feedback letters to 56 municipalities. The reasons for not assessing the Mid-Year Budget

and Performance Assessment reports for Msinga and Dannhauser Municipalities were due to late

submission of the report by Dannhauser Municipality while Msinga Municipality did not submit their

report in a prescribed MBRR format.

In the fourth quarter of the 2013/14 financial year, a general compliance check and a high level




assessment on the Adjustments Budgets for 57 delegated municipalities were conducted. The

assessment could not be conducted for one municipality, namely, uMgungundlovu District

Municipality due to late submission of their Adjustments Budget.

Municipal Finance Unit prepared all 12 monthly Consolidated Budget Performance reports on all

delegated municipalities and submitted these reports to National Treasury as per Section 71(6) of

MFMA.

Four quarterly reports on the Consolidated Budget Performance for all delegated municipalities were

prepared in line with Section 71(7) of the MFMA. The Consolidated Municipal Budget Performance

Report for second quarter in terms of municipal financial year was presented to Provincial Cabinet

Lekgotla on 20 February 2014.

The Municipal Support Program (MSP) continued to provide hands on technical support to

municipalities in 2013/14.

The program in 2013/14 concentrated on improving the Cash Flow Management processes and

enhancing Internal Controls in financial processes as well as in the Information Technology

environment. The latter half of the year saw the introduction of the Value Added Tax (VAT) initiative

which focused on the review of VAT Returns submitted by municipalities. The second aspect of the

initiative was directed towards capacitating municipal staff in preparing VAT Returns in house, thus

obviating the need to hire external consultants to undertake the task.

Support was extended to 8 municipalities (Abaqulusi, eDumbe, Umkhanyakude District, Greater

Kokstad, Hlabisa, Harry Gwala District, Ugu District and Umzinyathi District) in Cash Flow

Management, 12 municipalities (Abaqulusi, eDumbe, Mtubatuba, Umhlabuyalingana, Greater

Kokstad, Hlabisa, Indaka, Jozini, Harry Gwala District, Richmond, Ugu District and Umzinyathi

District) in Internal Control Enhancement and10 municipalities (Newcastle, Ugu District, Umzinyathi

District, uMgungundlovu District, KwaDukuza, uMtshezi, Emnambithi/Ladysmith, Zululand, Hibiscus

Coast and uMngeni) in the VAT initiatives during the year.

The benefits accruing to these municipalities will be in direct proportion to the level of commitment

shown by the municipalities to embrace the improvements and implement the enhanced processes.

In September 2013, the Joint Portfolio Committees on Finance and Cooperative Governance and

Traditional Affairs in the Provincial Legislature conducted municipal hearings. The hearings covered

amongst others, governance, administration, financial management and the state of service delivery.

In this regard, 13 municipalities including one non delegated municipality were invited to appear

before the Joint Portfolio Committee. In support of the Joint Portfolio Committee’s work, Municipal




Finance prepared the Budget Performance reports on the 12 municipalities invited to appear before

the Joint Portfolio Committee. The Unit was also responsible to consolidate all the reports from

various Business Units of Provincial Treasury to appraise the Joint Portfolio Committee not only on

general performance of the invited municipalities but also to reflect on various support streams

provided by Provincial Treasury to these municipalities.

As part of supporting the municipal budget preparation process for the 2014/15 financial year, the

National Energy Regulator of South Africa (NERSA) jointly with Provincial Treasury conducted a

workshop for all municipalities licensed to provide electricity service. These municipalities included

the non-delegated municipalities, namely, eThekwini Metro, Msunduzi and uMhlathuze Municipalities.

One of the objectives of the workshop was to assist these municipalities on proper process of

completing and submitting the relevant application forms referred to as ‘D forms’, for a tariff increase

on electricity service in line with Section 43 of the MFMA. The workshop was held on 25 October

2013 in Pietermaritzburg and 56 municipal officials from 22 licensed municipalities attended.




PROGRAMME TWO: FISCAL RESOURCE MANAGEMENT

2.2 .1 Economic Analysis: To determine and evaluate economic parameters and socio-economic imperatives to inform provincial and local resource allocation













Publication/Report on Socio-economic output chapter, budget supplement, and budget highlights

Provide Economic Analysis for the Province

1 1 1 1 1 1 1 1 Produce 4 provincial department economic

reports

Produced 4 provincial department economic

reports

N/A N/A N/A N/A N/A N/A 1 1 Produce 1 Socio-

Economic review and Outlook report (SERO)

Produced 1 Socio-Economic review and Outlook report (SERO)

N/A 3 N/A 3 N/A 3 9 0 Produce 9 district

Socio-Economic reports

Produced 9 district Socio-Economic

reports

Updated database

To provide input to the overview of Provincial Revenue and Expenditure (OPRE)

N/A N/A N/A N/A N/A N/A 1 1 Input to OPRE on time

for tabling

Input to OPRE submitted on time for

tabling

Research papers To provide quality research for regional policy analysis

1 6 1 2 1 1 1 0 Produce 4 economic research reports

Produced 9 economic research reports

2.2.2Infrastructure Management: To Ensure efficient infrastructure planning and management in the province













Provincial Infrastructure Plan

Timely completion of Provincial Infrastructure Plan (PIP)

1 1 N/A N/A N/A N/A N/A N/A Compile a consolidated

report to NT by 28 February 2014

Compiled a consolidated report to NT by 28 February

2014

Reports on the implementation of the IDIP in KZN

Reports on the implementation of the IDIP in KZN

1 1 1 1 1 1 1 1 Produce 4 reports on the implementation of IDIP in the Province

Produced 4 reports on the implementation of IDIP in the Province

Progress reports on infrastructure budgets and delivery plans

Progress reports on infrastructure budgets and delivery plans

1 1 1 1 1 1 1 1 Submit 4 reports on the

infrastructure expenditure

Submitted 4 reports on the infrastructure

expenditure

Reports on site visits conducted

Reports on site visits conducted

1 1 1 1 1 1 1 1 Submit 4 consolidated report on the site visits

conducted

Submitted 4 consolidated report on

the site visits conducted

Estimates of Provincial revenue and Expenditure (EPRE)

Estimates of Provincial revenue and Expenditure (EPRE), previously Main Budget Statement.

N/A N/A N/A N/A N/A N/A 1 1 Input into OPRE on time for tabling

Input into OPRE submitted on time for

tabling




2.3 Public Finance : Provincial Budget Management: Ensure efficient budget and expenditure management and accurate financial reporting for provincial government (including public entities)













No. of chapters in MTEC reports

No. of chapters in MTEC reports

N/A N/A 16 16 N/A N/A N/A N/A

16 chapters completed 1 working day before MTEC as per budget process timetable

16 chapters completed 1 working day before MTEC as per budget process timetable

Estimates of Provincial Revenue & Expenditure

Estimates of Provincial Revenue & Expenditure

N/A N/A N/A N/A N/A N/A 1 1 EPRE on time for

tabling EPRE prepared on time for tabling

Adjusted Estimates of Provincial Revenue and Expenditure(AEPRE)

Adjusted Estimates of Provincial Revenue and Expenditure(AEPRE)

N/A N/A N/A N/A 1 1 N/A N/A AEPRE on time for

tabling AEPRE prepared on

time for tabling

Section 32 report (Monthly provincial IYM report)

Section 32 report (Monthly provincial IYM report)

3 3 3 3 3 3 3 3 12 IYM reports

p/a(submitted to NT by the 22nd monthly)

12 IYM reports p/a(submitted to NT by

the 22nd monthly)

Quarterly performance reports for provincial department

Quarterly performance reports for provincial department

1 1 1 1 N/A 1 1 N/A 3 quarterly performance

reports 3 quarterly

performance reports

2.3 Public Finance : Provincial Own Revenue : Promote optimal and sustainable revenue generation and collection by provincial departments and public entities













Provincial Revenue Forum

Conduct quarterly Provincial Revenue Forums

1 1 1 1 1 1 1 1 4 Forums per year 4 Forums per year

Quarterly Reports Monitoring of departmental revenue collection

1 1 1 1 1 1 1 1 Conduct quarterly 4 Quarterly Reports

Revenue input into EPRE and OPRE

Revenue input into Overview of Provincial Revenue(OPRE) and Estimates of Provincial Revenue and Expenditure(EPRE)

N/A N/A N/A N/A N/A N/A 1 1 Revenue input into

(OPRE) and (EPRE) on time for tabling

1 OPRE and EPRE

2.3 Public Finance: Special Advisory Support servic es: To promote effective and optimal financial resource allocation for provincial government ( including public entities)
















Input into the revision and maintenance of DORA

Input into the revision and maintenance of DORA

Input to be submitted by due date

N/A Input to be submitted by due date

Input submitted

Input to be submitted by due date

N/A Input to be submitted by due date

Input submitted

Input to be submitted by due date as set by

NT

Input submitted by due date as set by NT

Institutionalise framework for the monitoring of provincial public entities

Institutionalise framework for the monitoring of provincial public entities

Prepare close-out report for all listed entities

Prepare close-out

report for all listed entities

Prepare 1st quarter

performance report for al entities Prepare budget MTEC

report for all listed entities

MTEC Reports

Prepare mid-year

performance report for all listed entities

Prepared mid-year

performance report for all listed entities

Prepare EPRE tabled for all listed entities

EPRE tables prepared

Implement monitoring tool and report bi-

annually for all listed public entities

Implemented monitoring tool and

reported bi-annually for all listed public entities

2.4 Municipal Finance: To monitor the budgets of municipalities in order to establish whether they implement sound fiscal management and to monitor and provide technical support to municipalities that are in financial distress.













Section 71(6) report (Monthly municipal IYM report) within prescribed time frame

Section 71(6) report (Monthly municipal IYM report) within prescribed time frame

3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 12 Section 71(6)

reports 12 Section 71(6)

reports

Section 71(7) quarterly budget performance reports

Section 71(7) quarterly budget performance reports

1 report 1 report 1 report 1 report 1 report 1 report 1 report 1 report 4 Section 71(1) 7 quarterly budget

performance reports

4 Section 71(1) 7 quarterly budget

performance reports

Municipalities supported through Municipal Support Programme (MSP)

No. of municipalities supported by the Municipal Support Programme (MSP)

3 municipalities

4 municipalities

6 municipalities

6 municipalities

6 municipalities

6 municipalities

2 municipalities

13 municipalities 6 Municipalities

16 Municipalities supported though the Municipal Support Programme (MSP)




B.3 Programme 3: Financial Management

Purpose: To enhance financial management in the Province by taking the necessary steps to assist

and support departments and municipalities in the spheres of Financial Reporting, Asset

Management, Supply Chain Management and Financial Management Norms & Standards in

obtaining clean audit reports on an annual basis.


1. Promote sound cash management practices and improve liquidity in the province.

2. Assist departments and municipalities in the attainment of a clean audit outcome for KZN.

3. Provide substantial technical, financial and legal advice in support of all provincial PPP

projects in line with the PPP project cycle as regulated by National Treasury guidelines.

4. Support and monitor adherence of state institutions to SCM prescripts.

5. Develop cost reduction strategies for provincial departments.

6. Develop, facilitate implementation and monitor compliance with financial norms and standards

in provincial departments, municipalities and entities to enhance financial management.

Assets and Liabilities Management


During the 2013/2014 financial year, site visits were conducted at all provincial departments as an

ongoing support initiative to assist with enhancing Asset management in the provincial departments.

Other engagements involved functional support on the Asset management system (Hardcat). There

have been training interventions to assist with the use of Hardcat based on support queries, training

needs analysis and special training requests.

The banking section provided a support function to 15 departments regarding bank related suspense

accounts and by liaising with departments on a monthly basis there has been a noteworthy

improvement of transactions cleared and suspense accounts having a zero balance.

During the 2013/2014 financial year quarterly risk analysis were done on bank related suspense

accounts and Chief Financial Officers of departments were made aware of the risk regarding

outstanding transactions and to ensure the timely clearing of suspense accounts.




Municipalities were again made aware of the reporting requirements in terms of the Municipal

Finance Management Act and there has been a noteworthy improvement during the 2013/2014

financial year of reports submitted to Provincial Treasury.

The Tax section provided a training and support function to the KZN client departments to ensure the

necessary transfer of tax knowledge and skills within the province. Site visits were conducted and

training gaps identified and where necessary training was provided to all provincial departments.

KZN legislature terminated their use of the Persal payroll system and BAS Accounting system and

the tax section provided assistance to them in the closure of the tax functions for the part-year that

they utilised Persal and BAS. The 2014 annual tax reconciliations were submitted to SARS before

the deadline for each department. All risks identified in terms of the tax functions were followed up

with individual departments to ensure compliance with the tax legislation. The technical Tax manual

was adapted and enhanced to make it more user-friendly and to broaden the manual’s scope of

work. Tax Information sessions were conducted to keep departments abreast of changes to tax

legislation which impacted on the PAYE functions of the departments.

Public Private Partnerships (PPPs)

The Public Private Partnership Unit housed in this programme, provides technical support on any

possible PPP project envisaged by the Departments, Public Entities and Municipalities. The Unit, in

collaboration with the National Treasury’s PPP Unit, is presently assisting:

• KZN Provincial Department of Health in developing the exit strategy the Inkosi Albert

Luthuli Central Hospital concession period.

• KZN Public Works in investigating the possibility of procuring Office Park for KZN Provincial

Departments as a PPP.

• KZN Legislature is initiating a process of update of feasibility study and investigating the

possibility of procuring a new Office Accommodation for the Provincial Parliament as PPP.

• KZN Department of Education in investigating the possibility of procuring the New Schools,

Upgrades and Additions, Repairs and Maintenance and Non School buildings in the four pilot

nodes, i.e. iLembe, uThukela, Ugu and uMgungundlovu.

While in municipalities, the Unit assists in the following:

• ILembe District Municipality in its Water and Sanitation concession contract management.




• KwaDukuza Local Municipality in its investigation on Solid waste Management as required by

section 78 of the Municipal Systems Act (MSA) investigation.

• Greater Kokstad Municipality in procuring the Private Party for the Design, Construction,

Operation, Maintenance and Finance of a Serviced Working Environment for the Greater

Kokstad Municipality and Commercial Development.

• Hibiscus Coast Municipality, through the Hibiscus Coast Development Agency in

development of a prime section of beach front land situated in the town of Umtentweni.


• Developed terms of reference for the Inkosi Albert Luthuli Central Hospital for the

appointment of independent third party for final works survey to assess whether the project

company has fulfilled all assets upgrades as per project agreement.

• Participate in the restructuring of the funding model for the Office Park in order to make it

more affordable and provide better value for money for the Province.

• The Feasibility Study for Office Park project has been completed and in the process of

presenting it to National Treasury for Treasury Approval (“TA”) 1.

• Framework of the exit strategy for the Inkosi Albert Luthuli Central Hospital been developed.

• Managed a process of reviving the Legislature project and negotiating with Transaction

Advisor to update the feasibility study.

• The Need analysis investigation for the Department of Education for the four pilot nodes, i.e.

iLembe, uThukela, Ugu and uMgungundlovu been finalised by the Project Steering

Committee.

• Finalisation of a 3rd Review of the Concession Agreement and development of five year

implementation plan for the period 2014 - 2019 for the ILembe District Municipality.

Commitments

• Appointment of the service provider for development of Exit Strategy of Inkosi Albert Luthuli

Central Hospital.

• Attainment of Treasury Approval 1 (“TA”) for feasibility study, initial and finalise the process of

drafting bid documents for the Office Park project.

• Initiate the update of the feasibility study for KZN Legislature.

• Finalisation feasibility study process for schools project (Department of Education).

• Finalisation of the third review of concession agreement and five year implementation plan for

period 2014 – 2019 of ILembe concession contract.




Provincial Supply Chain Management (SCM)

The Provincial SCM Unit is responsible for enforcing compliance with all Supply Chain Management

prescripts by Provincial Departments, Municipalities and Public Entities in the province through

support and interventions.

Achievements

• Interventions at the department of Sport and Recreation and, Uthukela District Municipality and

Ugu District Municipality are still on-going due to lack of capacity in those SCM components.

The interventions are in the form of direct assistance by managing the procurement and

instituting reforms as well in these institutions. In addition the department of Agriculture and

Environmental Affairs, Umkhanyakude District Municipality and Umtshezi Local Municipality are

also currently under intervention by Provincial Treasury.

• SCM compliance assessments were done at all provincial departments and municipalities.

• There are three phases to the Contract Management project. Phase 1 comprises of

implementing a contract register and filing. Phase 2 .comprises of comprehensive legal and

financial reviews of contracts concluded with third parties and the preparation of action plans to

be carried out by the institutions in order to correct any anomalies identified in the contracts

under review. Phase 3 comprises of developing a contract management framework and

conducting training. Phase1, 2 and 3 were concluded at 6 departments and 3 municipalities.

Phase 1 has been completed at the remaining 9 departments. Phase 2 is underway at these

departments.

• Provincial Treasury has started with the development of an e-Procurement tool, which will assist

in limiting instances of fraud and corruption in departments’ SCM process.

• Provincial Treasury’s SCM unit has a panel of BEE verification agencies that assist emerging

companies registered in the KZN Provincial Suppliers’ Database to attain BEE verification

status, as required by the PPPFA. This project is ongoing.

• The municipal bid appeals tribunal project is ongoing. To date 54 of the 60 municipalities had

adopted amendments to their SCM policies in order to make provision for the municipal bid

appeals tribunal (MBAT) structure. The tribunals that have been established by the Provincial

Treasury are functional and are hearing matters throughout the Province. The Provincial Supply




Chain Management Unit through the Office of the Provincial Secretariat and the relevant

clusters provides active support in the hearing and facilitation of MBAT matters.

• The department bid appeals tribunal was also quite active. A structure has been finalised for the

function and Treasury is in the process of recruitment for these posts. The table below gives

summary of appeals for departments in 2013/2014.

DEPARTMENTS APPEALS STATUS

APPEALS

RECIEVED

WITHDRAWN UPHELD DISMISSED RE-

EVALUATION

PENDING OTHER

HEALTH 251 143 20 50 20 10 8

TRANSPORT 115 35 9 29 22 4 16

WORKS 26 10 1 10 0 0 5

EDUCATION 12 3 0 6 2 0 1

AGRICULTURE 2 0 0 1 0 0 1

TOTAL 406 191 30 96 44 14 31

Financial Reporting


• Back to Basics

The Provincial Treasury has adopted a “Back to Basics” financial management approach to

address audit risks and negative audit outcomes. This approach comprises the following key

elements:

o An analysis of basic financial management processes and procedures.

o Identification of audit risk areas and key internal control measures to mitigate potential

risks.

o Sustainable skills transfer, training, and the monitoring of key controls and procedures to

address audit risks and key control deviations.

This Program has achieved great success for the 2012/13 financial year as majority of the

municipalities have prepared the annual financial statements internally, with the assistance from the

Financial Reporting officials. The assistance provided to these municipalities has contributed

positively to maintaining or improving the audit opinions for the 2012/13 financial year.




Municipality Name 2012/13 2011/12 Endumeni Municipality Unqualified Unqualified Ntambanana Municipality Clean Unqualified Umkhanyakude District Qualified Disclaimer Umgeni Municipality Unqualified Unqualified Mandeni Municipality Unqualified Unqualified Umhlabuyalingana Municipality Unqualified Disclaimer Ubuhlebezwe Municipality Clean Unqualified Greater Kokstad Municipality Unqualified Qualified Sisonke District (Harry Gwala) Municipality Unqualified Qualified Ingwe Municipality Unqualified Unqualified KwaSani Municipality Unqualified Unqualified uMshwati Municipality Unqualified Unqualified Richmond Municipality Unqualified Unqualified Umzumbe Municipality Unqualified Unqualified Umdoni Municipality Unqualified Unqualified Mpofana Municipality Unqualified Unqualified

• Assistance to departments

Treasury assisted The Departments of Public Works, Royal Household and Social Development with

resolving key prior year audit issues to ensure an unqualified audit opinion in the 2013/14 financial

year.

Future Plans

The Financial Management and the Internal Audit units will continue to complement each other by

both proactively identifying and addressing key financial management risks.

The following special areas of concern will require proactive intervention in 2014/15 to ensure clean

audits in 2014/15:

• Movable Assets

Treasury will continue to assist the Department of Health in the completion and updating of the

movable assets register.

• Capped leave

Treasury is currently project managing a joint project with the Department of Education to resolve

audit qualifications relating to leave records and capped leave.




• Assistance to departments

Treasury will continue to assist both the Department of Social Development and Royal

Household on financial management audit risk areas.

Norms and Standards


1. Policy assistance to Departments

The unit developed a new instruction note on behalf of the Provincial Treasury’s Banking

Section, namely “Cancellation and Re-issue of Persal Cheque Payments” which was

implemented within departments with effect from 1 June 2013. In addition, 24 existing instruction

notes were reviewed as per the annually determined review schedule. All proposed

amendments were consulted with departments and proposals incorporated, where applicable,

prior to adoption and implementation.

2. Policy assistance to Municipalities and Municipa l Entities

The unit provided support on finance-related policies to eleven municipalities that included

uMhlabuyalingana local, uThukela district, Imbabazane local and uMkhanyakude district

municipalities. Emanating out of numerous ad-hoc requests that the unit received during the

financial year, policy assistance was rendered to Hibiscus Coast Development Agency in the

development and review of its financial management policies.

3. Monitoring Compliance and Evaluation

A compliance monitoring and evaluation exercise was undertaken to assess financial

management compliance within provincial departments. Questionnaires were developed which

departments were required to complete on a quarterly basis and provide reasons for non-

compliance for assessment purposes. A compliance checklist was developed per questionnaire

where documentary evidence was requested to support the responses indicated in the

questionnaires.

The completed questionnaires were analysed in terms of financial implications and

consequences and compliance assessment reports issued which detailed compliance

achievements and provided recommendations to address identified weaknesses or non-

compliance that were achievable and implementable within reasonable timeframes. Additional




guidelines were provided for incorporation within the working environment, where applicable, to

strengthen existing internal control measures and enhance financial management and control.

Development and Implementation of FMCMM

The unit assisted National Treasury in the review of the upgraded diagnostic compliance tool,

Financial Management Capability Maturity Model (FMCMM). The questions per module relating

to Governance, Financial Management, Reporting, Performance Management and Supply Chain

management were analysed and input provided, where applicable, with additional questions

proposed for inclusion in the various modules. The unit furthermore developed foundation level

questions relating to the compliance tool in respect of Delegations, Bid-Committees, Anti-

Corruption, Ethics and Financial Misconduct. Moreover, a request was received from National

Treasury to assist with the piloting process prior to the Model’s roll-out to treasuries and

departments in all the provinces.

Supporting and Interlinked Financial Systems


Treasury made progress in providing IT solutions and services that support the achievement of

the department’s goals and providing technology infrastructure that is capable of adapting to

changes in the business environment and in supporting the department’s information and

reporting requirements. The following key projects were completed:

• The leave process was automated to improve the management of leave and provide

greater audit ability across the department.

• Treasury implemented 67% of the electronic document and records management system

project to improve the efficiency of storage, search and retrieval of documents in the

department. The system addresses the legal obligation to comply with National Archives

and Records Services Act of 1996.

• The Business Continuity Plan was reviewed, tested and implemented.




PROGRAMME THREE: FINANCIAL MANAGEMENT

3.1 Assets and Liability Management: • To ensure the provision of an effective and efficient transversal advice ,guidance and support as well as monitoring compliance to Asset Management

prescripts in all provincial departments. • To promote sound cash management practices and improve liquidity in the province; and • To assist departments and municipalities in the attainment of a clean audit outcome for the province.













Inform Departments on tax legislation and regulations iro payroll tax

Conduct Tax Information Seminar Annually

2 sessions Nil 2 sessions 3 sessions 2 sessions Nil 2 sessions Nil 2 Sessions 3 Sessions

Quarterly Reports

Quarterly risk analysis per dept to ensure compliance to tax legislation

16 reports 16 reports 16 reports 16 reports 16 reports 16 reports 16 reports 16 reports 64 Reports 64 Reports

Funding of Provincial bank account

Provide quarterly assessment reports to dept on the status of bank related suspense accounts.

16 Assessment

reports

15 Assessment

reports

16 Assessment

reports

15 Assessment

reports

16 Assessment

reports

15 Assessment

reports

16 Assessment

reports

15 Assessment

reports

64 Assessment reports

60 Assessment reports

Monitor early completion of Bank Reconciliation

Produce monthly reconciled bank reconciliations per department

48 Reconciled

bank reconciliation

45 Reconciled

bank reconciliation

48 Reconciled

bank reconciliation

45 Reconciled

bank reconciliation

48 Reconciled

bank reconciliation

45 Reconciled

bank reconciliation

48 Reconciled

bank reconciliation

45 Reconciled

bank reconciliation

192 Reconciled bank

reconciliations

180 Reconciled bank

reconciliations

Municipal bank accounts.

Produce quarterly report on withdrawals from municipal bank accounts

1 reports on withdrawals








4 Reports on withdrawals

4 Reports on withdrawals

Sound Asset Management Practices in Provincial Departments

To promote sound Asset Management Practices in Provincial Departments

1 seminars/ training

workshops

3 Hardcat training


workshops


workshops


workshops


workshops


workshops


workshops

4 Seminars/Training

Workshops

5 Seminars/Training

Workshops

3.2 Public Private Partnership (PPP): To provide substantial technical, financial and legal advice in support of all provincial PPP projects in line with the PPP Project Cycle as regulated by National Treasury guidelines.













Seminars / workshops conducted for provincial departments and public entities

No. of seminars/workshops conducted for provincial depts. and public entities

N/A 3 1 Nil N/A N/A 1 Nil 2 3




Number of seminars / workshops conducted for municipalities and municipalities entities

No. of seminars/workshops conducted for municipalities and municipal entities

1 2 N/A N/A 1 2 N/A N/A 2 4

Reports for Prov. Treasury management and NT PPP unit

No. of reports for Provincial Treasury management and MEC

1 3 1 8 1 3 1 3 4 17

Reports on closed deal.

No. of reports on closed deals

1 3 1 3 1 3 1 3 4 12

3.3 Supply Chain Management: • Support and monitor adherence of departments, Public Entities and Municipalities to SCM prescripts. • Develop cost reduction strategies for provincial departments and municipalities. • Provide a supplier monitoring mechanism for the Province to ensure that Supplier Information is reliable.













Training SCM practitioners in Provincial departments and municipalities

No. of SCM training sessions and information sessions conducted

2 3 3 7 3 2 2 2 10 14

1 1 2 0 1 0 2 0 6 1

No. of assessments No. of compliance assessments

20 15 20 27 18 16 18 22 76 80

No. of policies and practice notes reviewed and issued

No. of policies and practice notes reviewed and issued

1 4 1 1 1 0 1 0 4 5

3.4 Financial Reporting:

• To analyse province-wide compliance, implementation and maintenance of generally recognized Accounting practice and financial systems to fairly present the consolidated financial position of KZN.

• To analyse financial and audit reports in order to establish and formulate strategies to address weaknesses in the financial management process in departments, public entities and municipalities as envisaged in the Public Finance Management Act and the Municipal Finance Management Act.

• To enable client departments to address fast-paced needs evolving from auditor general reports by generating solutions and support. To provide project management and consulting solutions to Departments to expedite financial reporting.

• To facilitate the development of transversal developmental programmes and projects aimed at improving financial management and accounting practices in provincial departments, public entities and Municipalities.

• To impact directly on value for money and service delivery enhancements through business-process re-engineering of key cost drivers.
















Consolidated Financial Statements

Consolidated AFS for Provincial Departments, Provincial Revenue Fund and Public Entities

N/A N/A

Compile consolidated

AFS for FY12/13

Compiled consolidated

AFS for FY12/13

Tabling of consolidate AFS for

FY12/13 in legislature

Tabled Departments and Revenue

Fund Consolidated

AFS

N/A N/A Compile

Consolidated AFS for FY12/13

Compiled Consolidated AFS for FY12/13 and

tabled Departments and Revenue Fund

N/A N/A

Compile consolidated

AFS for FY12/13

Compile AFS Revenue Fund for FY12/13

Tabling of consolidate AFS for

FY12/13 in legislature

Tabled Revenue Fund

AFS N/A N/A

Revenue Fund AFS tabled in

Legislature for FY 12/13

Compiled and Tabled Revenue

Fund AFS

Training on AFS

Preparation of the AFS for the Revenue Fund AFS Support and Training to Provincial departments

AFS training workshop


N/A

N/A

N/A N/A


Not achieved – to be done in next quarter



Pre-audit review in 16 departments


N/A

N/A

N/A

N/A

N/A N/A Pre-audit review in 16 departments


Audit Outcomes

Provincial Audit Outcome Analysis

N/A N/A

Summary of Audit Outcome analysis after AG’s Audit Report

Summary of Audit Outcome analysis after AG’s Audit Report

N/A N/A N/A N/A Summary of Audit Outcome analysis after AG’s Audit

Report

Summary of Audit Outcome analysis after AG’s Audit

Report

Financial Management Monitoring support to Public Entities

N/A N/A N/A N/A N/A N/A

Pre-audit readiness

assessment in 12 public entities

To be done in quarter

Pre-audit readiness

assessment in 12 public entities

0

Municipal Support Programme

General financial management support to municipalities

N/A N/A N/A N/A N/A N/A Summary of audit outcome

analysis

Summary of audit

outcomes- Municipalities

Summary of audit outcome analysis

Summary of audit outcome analysis

N/A N/A N/A N/A N/A N/A

Pre-audit assessment report in 12 identified

municipalities

To be done in quarter 2

Pre-audit assessment report in 12 identified municipalities

0

Progress reports on on-site financial management support to 12 identified

municipalities


municipalities


municipalities


municipalities


municipalities


municipalities


municipalities


municipalities

Progress reports on on-site financial

management support to 12 identified

municipalities


municipalities

3.5 Norms and Standards : To develop, facilitate implementation and monitor compliance with financial norms and standards in provincial departments, municipalities and entities to enhance financial management.
















Number of policies and practice notes developed/reviewed and issued

Number of policies and practice notes developed/reviewed and issued

7 policies/practice notes reviewed

28 practice notes

repealed and issued

as instruction notes.1

Instruction and

reviewed /4 policies

developed and 11 policies reviewed

7 policies/ practice notes

reviewed

6 Instruction notes

reviewed for departments /2 policies developed

and 5 policies reviewed for municipalities

7 policies/practice notes reviewed

8 Instruction notes

reviewed for departments /3 policies developed and 5 policies

reviewed for municipalitie

s

7 policies /practice notes

reviewed

7 Instruction notes reviewed for departments

/9 policies developed and 10 policies reviewed for municipalities

28 policies/practice notes

developed/reviewed

27 Instruction notes reviewed and 1

policy developed for departments/19

policies developed and 31 reviewed for

municipalities

Number of departments assessed and monitored

Number of departments assessed and monitored

All departments assessed and monitored

No departments

were assessed in this quarter

All departme

nts assessed

and monitored


All departments assessed

and monitored

All departments assessed

and monitored.

All departme

nts assessed

and monitored


All departments assessed and

monitored as per units Annual Plan

All departments assessed and

monitored as per units Annual Plan, except quarter 1.

3.6 Support and Interlinked Financial Systems: To align ICT initiatives with the strategic direction of the department through the provision of IT support, training of users and the acquisition and development of relevant information system solutions as an enabler of business processes.













Policy Reviews Number of policy reviews completed

1 1 1 1 1 1 1 2 4 5

Compliance Reports Number of compliance reports completed

3 3 3 3 3 3 3 3 12 12

Policy Information Sessions

Number of information sessions conducted

2 2 2 3 2 2 2 2 8 9

Mean Time To Resolve ( MTTR) - Provincial

Mean time to resolve

8 hours 54 mins 8 hours 48 mins 8 hours 45 mins 8 hours 44 mins 8 hours 48min

Percentage network uptime

Percentage network uptime

99% 99% 99% 99% 99% 99% 99% 97% 99% 99%

Mean Time To Resolve ( MTTR) – Transversal Systems

Mean time to resolve (Transversal systems)

8-24 hr MTTR 2hrs 29 min 8-24 hr MTTR

1hr 15 min 8-24 hr MTTR

5hrs 8-24 hr MTTR

48 mins 8-24 hr MTTR 2hrs23min




B.4 Programme 4: Internal Audit

Purpose : The Internal Audit component provides a legislated function which covers an independent

objective assurance and consulting services on issues of internal controls, risk management and

governance as provided in the PFMA and Standards for the Professional Practice of Internal Auditing

and in line with the principles in the King Report and its scope, comprehensively defined in chapter 3

of Treasury Regulations. These services are further legislated through the Provincial Internal Audit Act,

Act No. 2 of 2001.

The Provincial Internal Audit Services (PIAS) component of Provincial Treasury supports all provincial

departments, as well as some public entities and municipalities in areas of internal audit, risk

management, governance and forensic investigations. The component has formulated a three-lines-of-

defence mechanism which entails:

• Providing assurance on the effectiveness of governance.

• Risk management.

• Compliance systems and controls.


1. To promote a culture of accountability and transparency.

2. To provide an efficient, effective and economical assurance service.

3. To foster solid client relationships.

4. To build capacity within and outside the unit.

5. To promote good governance through effective risk management.

6. To promote a culture of zero tolerance for fraud and corruption

Service Delivery Achievements:

Assurance Services

Achievements

• Assurance Services provided management at Departments and Public Entities with an advisory

function on the appropriate design and effective implementation of internal controls over various

areas of operations by issuing 257 audit report during the 2013/14 financial year. These audit

reports covered various focus areas such as Supply Chain Management, Asset Management,

Human Resource Management, Predetermined Objectives, some departmental special projects




that has undergone the performance and value for money audit reviews and other business

activities.

• A strong focus area was Financial Audits where the Unit reviewed key financial controls at 8

Provincial Departments and 2 Public Entities. The Interim Financial Statements were reviewed to

provide management with some assurance on the financial statement preparation processes. This

was supplemented by a review of the Annual Financial Statements prior to submission to the

Auditor General.

• In addition to focusing on reviewing areas of control and financial management, the Unit extended

its offering to include much needed value adding services on operational process design. The Unit

commenced with a project to assist the Department of Health review the effectiveness of its

referral paths in hospitals and to provide input and guidance on the development of a Referral

System policy and procedure document.

• With the increased focus on value for money in the province, the Unit continued to enhance its

services on performance audits and commenced with various audits on the efficiency,

effectiveness and economical utilization of resources. These included an audit on the One-Home-

One Garden programme, Primary Healthcare services by Health Department, Infrastructure

Projects in 4 departments; as well as auditing Travel and Subsistence expenditure across all

provincial departments. Some of these projects will continue into the 2014/15 financial year.

• Information Technology provides the foundation to many processes and is a high risk area. The

unit continued to conduct audit reviews on transversal IT systems such as the Biometrics system,

PERSAL and BAS. These IT audit reviews have now been extended to the IT systems that

complement the departments’ core business activities. Together with this, support and advice was

also provided by reviewing IT Strategies and providing management with assurance during the

financial year on the progress made to address AG findings in preparation for the statutory audit.

• In line with its role of promoting sound management and good governance practices, the

Assurance Services component participated in the Premier’s Provincial Service Excellence Awards

and performed exceptionally well by winning the Silver Medal. This was the second time the

component won a category in these awards.




Risk and Advisory Services

Achievements

The unit assists provincial departments, public entities and municipalities with the facilitation of risk

assessments. For the past financial year (13/14), the unit facilitated over 60 risk assessments at these

institutions.

For provincial departments, the Unit also tracked and reported, on a quarterly basis, to the Provincial

Audit and Risk Committee on progress made by provincial departments in the implementation of

agreed-upon risk mitigation strategies. For municipalities, the Unit embarked on an exercise of

evaluating the adequacy and effectiveness of internal audit functions and audit committees of all

delegated municipalities. The results of this exercise, which is envisaged to be completed by August

2014, will be used to provide relevant assistance and interventions in municipalities with weak internal

audit functions and audit committees.

Forensic Investigations

Achievements

The unit continued to assist our provincial departments, public entities and municipalities with forensic

investigations. Since 2009, the unit has finalised over 86 investigations, and is currently busy with

about 53 outstanding investigations.

The unit continues to work with law enforcements units such as the Hawks, SAPS, SIU, and partakes

in the work of the Anti-Corruption Task Team in the province. The unit has embarked on the process

of developing a Fraud Case Management System that will, among other things, consolidate and track

forensic investigations across our provincial administration.

.




PROGRAMME FOUR: INTERNAL AUDIT

4.1 Assurance Services: To provide departments, mun icipalities and public entities with the following; • Provide an efficient, effective and economical assurance service. • Build and maintain solid client relationships through providing value added service. • Enhance capacity within and outside the Unit.













No. of IA Annual operational plans and a rolling three year strategic plan

No. of IA Annual operational plans and a rolling three year strategic plan developed and approved

21 23 N/A N/A N/A N/A N/A N/A 21 23

Audit Committee reports to the Cabinet

Annual Audit Risk Committee report on clients’ areas of risk areas of risk management, governance and internal control submitted to MEC: Finance

N/A N/A 1 1 N/A N/A N/A N/A 1 1

Internal Audit Reports

No. of risk based audit reports including follow up audit reports on financial, IT, performance and governance audits

50 40 50 52 55 64 55 69 210 225

Internal Audit Reports on Performance Information

No. of Audit reports on predetermined objectives

N/A N/A N/A N/A 15 5 6 16 21 21

Minutes of meetings

No. of meetings held between clients and the cluster Audit & risk Committee

15 32 15 14 15 16 15 16 60 78

Training and Development Programmes

No. of training and development programmes attended

4 4 4 4 4 4 4 3 16 15

An Independent internal and external quality assurance review

No. of internal and/independent external quality assurance reviews conducted

1 0 N/A N/A 1 1 N/A N/A 2 1




4.2.1 Risk Management: To promote good governance through assisting provincial departments, public entities and municipalities to practice effective risk management.













Number of enterprise wide risk reports

Risk reports issued for municipalities

5 5 7 13 8 27 10 7 30 52

Quarterly reports

Updated risk reports issued for depts. and public entities

N/A 0 10 7 10 9 2 8 22 24

Risk Management Bi-annual Risk follow-up reports issued to clients

5 15 7 15 8 15 10 15 30 60

Consolidated Risk Profiles

No. of Consolidated Risk profiles developed

N/A N/A N/A 1 1 0 N/A N/A 1 1

Risk Management Reports

No. of risk management maturity gap analysis reports for public entities

5 0 5 15 5 0 N/A N/A 15 15

ERM Compliance Reviews

No. of ERM compliance review/follow up for municipalities

5 0 10 0 10 12 5 19 30 31

Audit Committee Quarterly Reports

Audit Committee quarterly reports on clients areas of risk management and risk governance

N/A 15 N/A 16 N/A 16 N/A 16 4 63

Training Sessions Conducted

No. of training/risk awareness on governance and risk management sessions

2 8 5 8 3 10 N/A 13 10 39

Minutes of Risk Management Forum and Feedback

No. of risk management forum meetings held

1 0 1 1 1 1 1 1 4 3

4.2.2 Forensic Services: To promote a culture of zero tolerance for fraud and corruption.
















Internal Audit Reports and an updated fraud risk database

No. of reviews on the status of fraud management in the departments

N/A N/A 8 8 4 8 4 4 16 20

Forensic Audits performed and investigations as per clients requests and referrals from the Assurance team

Number of Forensic Audits performed and investigations as per clients requests and referrals from the Assurance team

5 0 7 10 8 5 5 10 25 25

Forensic audit reports, Audit Committee reports and Accounting Officer reports

Updated register of forensic investigations

1 1 1 1 1 1 1 1 4 4

Follow-up investigation reports

Number of follow ups on completed investigations

4 0 4 5 4 14 4 15 16 34




B.5 Programme 5: Growth and Development

Purpose: The aim of this programme is to provide for specific departmental approved events and

initiatives not catered for in any other programmes which will provide development for the province.


1. To stimulate economic growth and employment creation through funding of strategic investment

initiatives.

2. To provide funding instruments that will broaden participation of PDIs in business and the

economy.


Pre and Post Budget Road-shows were held in the Province. The objectives of the Budget Road-

shows were to communicate and educate the communities on how the budget is put together, as well

as to get inputs from the communities. Road-shows were held in the following areas:-

• Jozini - Umkhanyakude

• Emalangeni – Ugu

• Hluhluwe

• Hibiscus Coast

• Nongoma

• KwaSani




PROGRAMME FIVE: GROWTH AND DEVELOPMENT

5.1 Other Developmental Initiatives: To provide specific departmental approved events and initiatives not catered for in any other programmes that will provide development for the province.

Programme / Sub-

programme Output

Performance

Measures

1stQtr

Planned

Output

1stQtr

Actual

Output

2ndQtr

Planned

Output

2ndQtr

Actual

Output

3rdQtr

Planned

Output

3rdQtr

Actual

Output

4thQtr

Planned

Output

4thQtr Actual

Output

Target for 2013/14 as

per APP

Actual Output

2013/14

100% response to

determinations of

Technical Committee

Number of events co-

ordinated successfully 1 2 N/A 6 1 8 3 5 5 21


GOVERNANCE INFORMATION: 31 MARCH 2014


PART C: GOVERNANCE

C. 1 Introduction

The KZN Provincial Treasury is committed to maintaining the highest standards of governance

which we believe is essential to promoting public confidence and managing public finances. We

have adopted a code of business ethics which sets out principles to guide employees in carrying

out their duties and responsibilities to the highest standards of personal and corporate integrity

when dealing with stakeholders. In addition the department has oversight committees, shared

internal audit services including the audit committee responsible for providing guidance and

advice.

C. 2 Risk Management

Provincial Treasury has an approved risk management policy and a risk management framework.

The department regularly conducts risk assessments to determine the effectiveness of risk

management strategies and to identify new and emerging risks. Line management are responsible

for identifying, evaluating, managing both risks and opportunities in their responsibility areas with

technical and operational support provided by the risk management unit. The risk management

unit also maintains the consolidated risk register and reports thereon. There is a risk management

committee in place that advises management on the overall system of risk management,

especially the mitigation of unacceptable levels of risk. The committee operates under the terms of

reference approved by the Accounting Officer and comprises of select members of Provincial

Treasury’s senior management team. The committee meets every quarter. The Audit Committee

further provides an independent oversight over the system of risk management and monitors the

effectiveness of the departments’ risk management systems.

During the period under review KZN Provincial Treasury assessed its risks relative to its annual

performance plans. Both internal and external conditions that may impede the achievement of the

goals expressed in the annual performance plans were identified and evaluated. There have been

major improvements in the management of risks within the department as ninety-nine percent of

action plans for the prior year’s assessment were implemented. The department is confident that

risks are effectively managed. The Provincial Treasury’s internal audit plan included audits

designed to test the adequacy, effectiveness and economy of the internal control systems to

counteract the effects of the significant risk factors.




C. 3 Fraud and Corruption

Provincial Treasury supports and fosters a culture of zero tolerance to fraud in all its

manifestations. In addition, all fraud is investigated and followed up by the application of all

remedies available within the full extent of the law as well as application of appropriate prevention

and detection controls. It is the responsibility of all employees to report all incidents of fraud to their

immediate supervisors.

Provincial Treasury has an approved fraud prevention plan which includes the whistle blowing

policy, fraud policy and responses plan. This plan is communicated to all departmental officials

through the intranet, quarterly meetings and fraud awareness campaigns/ posters. There is an anti

– corruption hotline which further encourages anonymous reporting of fraudulent activities. In line

with the Protected Disclosures act, the whistle blowing policy encourages employees to report

matters of concern without any fear of victimisation; we will follow up on all information received

through the hotline

C. 4 Minimising Conflict of Interest

Provincial Treasury employees are expected to avoid personal activities and financial interest

which could conflict with their responsibilities to the department. In preventing conflict of interest,

financial disclosure forms are completed by all departmental officials on an annual basis. The

financial disclosures statements includes certification that the assets and financial activities of each

staff member, their spouses and family do not pose a conflict of interest with their official duties. In

addition, all employees in the Chief Financial Office (CFO) unit are required to sign a code of

conduct.

All Bid Committee members are required to sign declaration of interests and impartiality forms. Bid

Committee members are required to excuse themselves if a conflict of interest exists in the

process. Bidders are expected to declare their personal and business interests on the standard

bidding documents. All records of disclosure are kept by the Chief Financial Office.

C. 5 Code of Conduct

Provincial Treasury commits itself in ensuring that its employees display the highest possible

standard of ethical behaviour and that they maintain the highest level of professionalism in their




interaction with the public as well as other stakeholders. No employee may receive any gift or

payment which is, or may be construed as being, a bribe.

All employees are expected to comply with the code of business ethics approved by the

department.

C. 6 Health and Environmental Issues

The Department is committed to taking every reasonable precaution to ensure a safe working

environment for all employees as well as preserving the environment in which it operates. There’s

a departmental evacuation plan and procedures in place. The plan gives directive to evacuate

employees in case of disasters in buildings.

C. 7 Portfolio Committees

The department has not been called on portfolio committees before as there have been no matters

of concern.

C. 8 SCOPA Resolutions

There were no resolutions specific to Provincial Treasury in the current financial year.

C. 9 Prior Modifications to Audit Reports

There were no modifications to the previous year’s audit report.

C. 10 Internal Control Unit

Provincial Treasury has a sound system of internal controls based on policies and guidelines to

assist management to manage a wide range of risks faced by the department. There is an ongoing

process of identifying, evaluating, managing significant risks and internal controls. The identified

weaknesses are promptly addressed. During the financial year under review, internal control

activities included amongst others the following:

• Reviewing all invoices produced for payment by external service providers. This ensured

that all SCM related deviations are timeously detected and corrected where necessary.

• Conducting workshops to create awareness on fraud and fraud prevention

• Conducting risk assessments for the department. This ensured the identification and

evaluation of all risks faced by the department at an operational level.




• Ensuring the monitoring and evaluation on the implementation of effective and efficient

internal control and risk management strategies within the department

C. 11 Internal Audit and Audit Committees

1. Audit Committee

1.1 Objective of the Provincial Audit and Risk Comm ittee

The Provincial Audit and Risk Committee (PARC) has been established to assist the KZN

Provincial Departments in fulfilling its oversight responsibilities for the integrity of financial reporting

processes, system of internal control over financial reporting, audit process for monitoring

compliance with laws and regulations and KZN Provincial Government Code of conduct, fraud

prevention, the risk management process and any other good governance processes.

The PARC reports that it has complied with its responsibilities arising from the Public Finance

Management Act, No.1 of 1999 (PFMA), Treasury Regulations, including any other statutory

regulations. The PARC also reports that it has adopted appropriate formal terms of reference as its

Provincial Audit and Risk Committee Charter, regulated its affairs in compliance with this charter

and discharged all its responsibilities as contained therein.

1.2 Key Activities of the Provincial Audit and Risk Committee during the year

The PARC exercised their responsibility as embedded in the PARC Charter through the:

• Review of the effectiveness of the internal control systems in the provincial departments

including the internal financial controls and accounting systems through the Internal Audit (IA)

reports, wherein managements’ attitudes and response to internal control issues were

evaluated;

• Review of IT Governance systems and their related internal controls;

• Review the adequacy and reliability of financial information provided and financial statements

wherein the committee commented on the preparation of the financial statements as per the

legislative frameworks;

• Provide risk oversight on financial reporting risks, fraud risks, IT risks and all other strategic

and operational risks based on the scope of the internal and external audits;

• Review the adequacy and effectiveness of fraud prevention strategies, policies or procedures

and systems to prevent, detect fraud and corruption;




• Considered accounting and auditing concerns identified and reported by internal and external

auditors for the committees intervention;

• Review of the effectiveness of the IA in relation to their annual work programme, work co-

ordinated with the external auditors, investigation reports on allegations received and

investigated by IA as well as departments’ management response to recommendations

provided; and

• Review of the departments’ compliance with legal and regulatory provisions.

1.3 Information on the Audit Committee Members

The following seven external members of the PARC were appointed on the 1st June 2011 to

assume Audit and Risk responsibilities over a period of three (3) years. The Committee members’

attendance of the meetings during 2013/14 financial year is as depicted in the following table:

Name Qualifications Internal or External member

If Internal, position in

the Department

Date Appointed

Date Resigned

No. of meetings attended

Mr L M Mangquku CA(SA) MBL External N/A 1 June 2011 Not applicable 16

Mr T Boltman

CIA CCSA CFE CGPA

External N/A 1 June 2011 Not applicable 8

Ms M S Mothipe CA(SA) BComHons External N/A 1 June 2011 Not

applicable 8

Mr F Docrat

MBA CISM CISA MAP CGEIT


Mr V Naicker

BCom Post Graduation Diploma in taxation


Ms H N Jaxa

MBA BCompt (Hons) Bcomm (Acc)


Ms T A Tsautse

LLM LLB BProc


2. Provincial Internal Audit Services (PIAS)

2.1 Objectives of PIAS

The PIAS provides a legislated function which covers an independent objective assurance and

consulting services on issues of internal controls, risk management and governance as provided in

the PFMA and International Standards for the Professional Practice of Internal Auditing (ISPPIA)




and in line with the principles in the King III Report on Corporate Governance and its scope,

comprehensively defined in chapter 3 of Treasury Regulations. These services are further

legislated through the Provincial Internal Audit Act, Act No. 2 of 2001.

The PIAS supports all provincial departments, some public entities and municipalities in areas of

internal audit, risk management, governance and forensic investigations. The component has

formulated a three-lines-of defence mechanism which entails:

• Providing assurance on the effectiveness of governance.

• Risk management.

• Compliance with systems and controls.

Based on the above, the PIAS also participates in the Audit Committee meetings of the

aforementioned institutions

The strategic objectives of the Unit are:

• To provide an efficient, effective and economical assurance services

• To build and maintain solid client relationships through providing value added services

• To enhance internal audit capacity within and outside the unit

• To promote good governance through assisting provincial departments, public entities and

municipalities with risk assessments and risk management capacity building exercises

• To promote a culture of zero tolerance for fraud and corruption in the province

2.2 Activities of PIAS conducted during the 2013/14 financial year

a) Assurance Services

The Assurance Services Unit conducted 257 audits on various processes within Provincial

Departments and Public Entities. These audits focused on high risk areas within each institution

and from which a number of control weaknesses were identified. The management teams of these

institutions were provided with recommendations designed to improve the identified deficiencies in

the business environment and thereby assist with improved audit outcomes. Areas that were

identified as transversal risk areas across the province were included in our audits together with

other legislated reviews and key service delivery initiatives. The audits covered various focus

areas such as Supply Chain Management, Asset Management, Human Resources Management,




Review of Financial Statements, Transfer Payments, Information Technology reviews and review

of Predetermined Objectives and Value for Money Audits.

• A strong focus area was Financial Audits where the Unit reviewed key financial controls at 8

Provincial Departments and 2 Public Entities. The Interim Financial Statements were reviewed

to provide management with some assurance on the financial statement preparation

processes. This was supplemented by a review of the Annual Financial Statements prior to

submission to the Auditor General.

• In addition to focusing on reviewing areas of control and financial management, the Unit

extended its offering to include much needed value adding services on operational process

design. The Unit commenced with a project to assist the Department of Health review the

effectiveness of its referral paths in hospitals and to provide input and guidance on the

development of a Referral System policy and procedure document.

• With the increased focus on value for money in the province, the Unit continued to enhance its

services on performance audits and commenced with various audits on the efficiency,

effectiveness and economical utilisation of resources. These included an audit on the One-

Home-One Garden programme, Infrastructure Projects in 4 departments; as well as auditing

Travel and Subsistence expenditure across all provincial departments. Some of these projects

will continue into the 2014/15 financial year.

• Information Technology provides the foundation to many processes and is a high risk area. The

unit continued to roll out various reviews on IT systems such as the Biometrics system and

PERSAL. Together with this, support and advice was also provided by reviewing IT Strategies

and providing management with assurance during the financial year on the progress made to

address AG findings in preparation for the statutory audit.

• In line with its role of promoting sound management practices, the Assurance Services

component participated in the Premiers Provincial Service Excellence Awards and performed

exceptionally well by winning the Silver Medal. This was the second time the component won a

category in these awards.

The graph below depicts the overall ratings of controls for the 2013/14 financial year across all

audits conducted:




• The activities and outcomes of the PIAS were complimented by the PARC together with the

Cluster Audit and Risk Committee (CARC) activities that monitored the work done by the PIAS

as well as interacting with Senior Departmental management on a regular basis to ensure that

there was improved accountability for issues raised.

As part of the future endeavours to continuously provide a value-added services to our clients will:

• Continue to provide internal audit services focusing on high risk areas identified by Accounting

Officers as well as transversal areas of concern emanating from the statutory audits by the

Auditor General.

• Audits on financial controls will continue to be a key focus area and the Unit will maintain

efforts to build capacity and up-skill auditors on these reviews.

• Services will be streamlined and the Unit will work closely with other support units within

Provincial Treasury such as Financial Reporting and the Supply Chain Management office to

ensure integrated support is provided.

• Internal Audit will also continue to work with those charged with governance such as Audit

Committees, the Auditor General and external oversight bodies to ensure proper monitoring

and reporting.

b) Risk and Advisory Services

This sub-programme is tasked with assisting provincial departments, public entities and

municipalities with internal audit capacity building, risk management services and forensic

investigations.




The achievements of Risk and Advisory Services are as follows:

• As part of continued promoting of good governance the team embarked on ensuring that

department’s set-up internal risk committees, which was identified during the gap analysis

review. The role of the internal risk committees was to provide the department with oversight

and interventions into assuring that internal controls are strengthened and that emerging risks

are being addressed. The team conducted training to risk committee members and other

invited officials of all 15 departments during this financial year.

• The team has also been monitoring and reporting on progress made in the implementation of

agreed-upon risk mitigation plans. 60 risk follow-up reports have been tabled to the various

Cluster Audit and Risk Committees – i.e. the oversight structures that hold departments

accountable for, among other things, the implementation of agreed-upon risk mitigation plans.

• The team also supported 6 public entities and 46 municipalities, and municipal entities with

risk assessments including IT risk assessments during 2013/14.

• To date, all municipalities delegated to the province have existing risk profiles and registers

which are utilised amongst others to assist in developing risk based internal audit plans as well

as monitoring by management.

• With regard to Operation Clean Audit, the unit continued with the roll-out of the Municipalities’

Enterprise Risk Management Framework, and during the 2013/14 financial year, the unit

assessed 34 municipalities to test compliance with this framework.

• A performance evaluation of the internal audit units and audit committees was carried out to all

delegated municipalities to understand the challenges faced by municipalities and also to

develop intervention plans to address identified challenges. This is also in line with the spirit of

Operation Clean Audit.

• 6 municipalities have been assisted with specialised audits like IT audit of the general controls,

supply chain management and performance management audit. Furthermore, some

municipalities have been provided with support of supervising the internal audit units while

assisting them to appoint their own internal audit personnel.

• The team has successfully assisted the Ugu district to establish the internal audit forum for all

the internal audit personnel. The district has seven (7) municipalities including the district

municipality. The purpose of the forum is to share and impart knowledge amongst the internal

auditors of the district. These forums will be established in other districts across the province

as well.




c) Forensic Investigation Services

The Forensic Investigation team was overwhelmed with the number of requests for investigations

from provincial departments, public entities and municipalities. The matters to be investigated

include fraud, corruption, financial mismanagement and mal-administration. The team works very

closely with the law enforcement agencies who conduct the criminal investigations. Efforts are

being made to ensure that investigated cases are brought to finality but, due to the challenges that

exist in the prosecution and judiciary services, the unit is largely unable to show the impact of

these investigations in the public arena to a desired level. However, the unit has embarked on a

process of interaction with the judiciary and prosecuting authority to work on the solutions that are

already showing positive results.

The achievements of Forensic Investigation are as follows:

• Since 2009, 211 requests with a total value of R3, 3 billion to be investigated were received.

• 113 of these investigations were finalised, while 98 are still in progress.

• 24 of the 113 completed investigations were finalised during 2013/14 at a cost of R34 million.

In a given financial year, on average, Treasury spends approximately R26 million to complete

the investigations that can be done using existing capacity, and in this regard the unit is

working on improving internal capacity, which will include the appointment of a General

Manager to head the forensic investigations unit.

• There have been improved relationships and co-operation with both the judiciary and

prosecution, with the highest executive leadership from these institutions, and the unit is

looking forward to improved outcomes following these interactions.

• The Office of the Premier’s Integrity Management unit is a key and critical stakeholder, in the

implementation of strategic measures to deter fraud and corruption in the province. Work done

by the forensic investigators is being utilised for the development of a strategy to combat fraud

and corruption.

• The team has also assisted all 15 departments with a review of their fraud prevention plans,

and the focus on this financial year was to monitor how departments were addressing

shortcomings that were identified as part of the review.




C. 12 Report of the Audit Committee

1. Objective and responsibility of the Audit and Ri sk Committee

The Provincial Audit and Risk Committee (PARC) has been established to assist the KZN

Provincial Government in fulfilling its oversight responsibilities for the integrity of financial reporting

processes, system of internal control over financial reporting, audit process for monitoring

compliance with laws and regulations and KZN Provincial Government Code of conduct, fraud

prevention, the risk management process and any other good governance processes.

The Provincial Audit and Risk Committee reports that it has complied with its responsibilities

arising from the Public Finance Management Act, No.1 of 1999 (PFMA), Treasury Regulations 3.1,

including all other related prescripts. The Provincial Audit and Risk Committee also reports that it

adopted appropriate formal terms of reference as its Provincial Audit and Risk Committee Charter,

regulated its affairs in compliance with this charter and discharged all its responsibilities as

contained therein.

The Committee is therefore, pleased to present its report for the financial year ended 31 March

2014.

2. Audit Committee Members and Attendance

The KwaZulu-Natal Provincial Government has established the PARC as the shared audit

committee for its provincial departments. The PARC is further sub-divided into three Cluster Audit

and Risk Committees (CARCs) to provide oversight to provincial departments – i.e. with the

Provincial Treasury being served by the Economic CARC. The PARC and the Economic CARC

consists of the members listed below. As per its approved terms of reference, the Economic CARC

and PARC should meet at least 4 times per annum respectively. During the financial year under

review, four (4) PARC and four (4) Economic CARC meetings were held as outlined below.

# Name of Member

PARC

Meetings

Attended

Economic CARC

Meetings Attended

1. Ms T Tsautse

(Chairperson) 4 4

2. Ms M Mothipe 4 4




3. Mr V Naicker 2 N/A

4. Ms N Jaxa 4 N/A

5. Mr L Mangquku 4 4

6. Mr F Docrat 4 N/A

7. Mr T Boltman 4 N/A

- N/A = Not a member of the Economic CARC

- PARC meetings, include 2 special meetings.

3. The Effectiveness of Internal Control

The Committee has reviewed the reports of the Internal Auditors, the Audit report on the Annual

Financial Statements and Management Report of the Auditor General of South Africa (AGSA) and

has noted that the system of internal controls was adequate and effective.

However, the Committee has concerns around the human resources management issues relating

to filling of vacant posts within 12 months and officials acting in vacant positions for a period over

12 months. Furthermore, the department was urged to address Information Technology systems

weaknesses reported by the Auditor General and Internal Audit.

Risk Management

With regard to risk management, the Committee has noted that the department has not taken full

responsibility and ownership for compliance with section 38(1)(a)(i) of the PFMA, which requires

the Accounting Officer to ensure the maintenance of an effective system of internal control and risk

management. The department was still assisted by the Provincial Internal Audit Service (Risk and

Advisory Services) to fulfill its risk management responsibilities.

During the period under review, we have noted that the department updated its risk register, and

tabled the same during the 4th Quarter of the 2013/14 financial year Governance CARC meeting.

We also reviewed the quarterly progress reports on the implementation of risk mitigation during the

period under review.

In order to improve the general control environment in relation to risk management, the department

have been advised to:




• Ensure that completed risk mitigation plans are validated, measured and the risk register

regularly updated;

• Report on emerging risks, if any, on a quarterly basis;

• The Provincial Internal Audit Service capacitates the department and its Risk Management

Officer to enable them to execute the risk management activities on their own.

• Establish additional capacity in the department to ensure that each Programme has the risk

champion that will be responsible for undertaking the daily risk management responsibilities

and report to the Risk Management Officer.

Forensics Investigations

During the period under review, the Committee noted that there were four (4) forensic

investigations relating to SCM irregularities that the department has referred to the Provincial

Internal Audit Services for investigation. One (1) of these investigations was completed, and the

other three (3) were still in progress. The department and the Provincial Internal Audit Services

have been urged to promptly finalize the outstanding investigations, and work together to

implement recommendations on the finalized investigation.

Quality of in year management and monthly/quarterly reports

The Committee was satisfied with the content and quality of quarterly reports in respect of in year

management and quarterly performance reports submitted in terms of the PFMA and the Division

of Revenue Act prepared and issued by the Accounting Officer of the Department during the year

under view.

4. Evaluation of Financial Statements

The Committee has:

• Reviewed and discussed the audited Annual Financial Statements to be included in the Annual

Report, with the Auditor – General and the Accounting Officer;

• Reviewed the Auditor – General’s Management Report and Management’s response thereto;

• Reviewed the Department’s processes for compliance with legal and regulatory provisions and

no material findings were raised with regards to compliance with specific matters in key

applicable legislation.




• Reviewed the information on predetermined objectives as reported in the annual report; and

the Committee notes that no material findings were raised with regards to usefulness and

reliability of performance information.

• Reviewed material adjustments resulting from the audit of the Department and has noted that

there were no material misstatements in the financial statements.

The Committee concurs and accepts the Auditor General’s opinion regarding the Annual Financial

Statements, and proposes that the Audited Annual Financial Statements be accepted and read

together with the report of the Auditor- General.

5. Internal Audit

In line with the PFMA and the King III Report on Corporate Governance requirements, Internal

Audit Function provides the Audit Committee and Management with reasonable assurance that the

internal controls are adequate and effective. This is achieved through the implementation of a risk

based Internal Audit plan. The Committee has, through the CARC monitoring processes,

considered internal audit reports issued after assessing the adequacy and effectiveness of controls

designed to mitigate the risks associated with operational and strategic activities of the

department, as well as the appropriateness of the of corrective actions provided by management to

improve the control environment.

The Internal Audit function was effective during the period under review and there were no

unjustified restrictions or limitations. The Committee will in the forthcoming year, monitor progress

to ensure that the Internal Audit Function continues to add value to the department and achieves

its optimal performance. The Committee also monitored the implementation of Internal Audit

recommendations to the Department.

6. Auditor-General’s Report

The Committee has throughout the financial year, constantly monitored the implementation of

corrective action plans to address the audit issues raised in the prior year by the Auditor General.

The Committee has met with the Auditor General of South Africa to ensure that there were no

unresolved issues that emanated from the current regulatory audit.

The Committee will ensure that corrective actions on the detailed findings emanating from the

current regulatory audit are monitored on a quarterly basis through the CARC processes.




7. Appreciation

The Committee wishes to express its appreciation to the Management of the Department, the

Auditor General of South Africa, and the Provincial Internal Audit Services for the co-operation

and information they have provided to enable us to compile this report.

_________________________

Ms T Tsautse

Chairman: KZN Provincial Audit and Risk Committee

11 August 2014

KWAZULU NATAL PROVINCIAL TREASURY VOTE 6

REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2014


Report by the Accounting Officer to the Executive A uthority and the KwaZulu-Natal Legislature. 1. GENERAL REVIEW OF THE STATE OF FINANCIAL AFFAIRS

Table below shows the revenue budget for Provincial Treasury Financial Year 2013/14,

and the preliminary revenue collected for the year.

Departmental receipts

2012/2013 2013/2014

Estimate

Actual Amount

Collected

(Over)/Under Collection

Estimate

Actual Amount

Collected

(Over)/Under Collection

R’000 R’000 R’000 R’000 R’000 R’000 Tax Receipts - - - - - -

Casino taxes - - - - - - Horse racing taxes - - - - - - Liquor licences - - - - - - Motor vehicle licences - - - - - -

Sale of goods and services other than capital assets

163

159

4

160

170

(10)

Transfers received - - - - - Fines, penalties and forfeits - - - 1 (1)

Interest, dividends and rent on land

250, 818

269, 818

(19, 000)

200,004

267, 882

(67 878)

Sale of capital assets 8 32 (24) - 434 (434) Financial transactions in assets and liabilities

494

437

57

340

371

(31)

Total

R251, 483

R 270, 446

(R 18, 963)

R 200, 504

R 268, 858

(R 68,354)

The department collected a revenue totalling R268.858 million in 2013/14 financial year,

exceeding the revenue budget by 34.5 per cent. The revenue collected in respect of the

following categories was higher than budgeted:

• Sale of goods and services other than capital asset s was over-collected by R10 000.

The over collection is mainly due to an increase in Services rendered: Commission on

insurance & garnishees and Gaming fees collected from various game reserves and lodges.

• Fines, penalties and forfeits collected R1 000 against a zero budget. This amount relates

to domestic fines charged for late return of books to the library by employees.

• Interest, dividends and rent on land was over-collected by R67.878 million. Most of the

revenue collected against this category is from interest earned on the Inter-Governmental

Cash Co-ordination (IGCC) and the Pay Master-General (PMG) accounts. The interest

earned by these accounts is mainly due to the positive cash balances and the favourable

interest. This balance is as a result of the implementation of cost-cutting measures and

stringent cash flow management by Provincial Departments.




• An amount of R434 000 was collected in respect of Sale of capital assets against no

budget. This was due to the unplanned auction of redundant motor vehicles.

• Transactions in financial assets and liabilities was over-collected by R31 000. Revenue

generated against this category is mainly attributed to recovery of debts from previous

financial years and therefore cannot be accurately estimated.

o Programme Expenditure

Programme Name

2013/2014 2012/2013

Final Appropriation

Actual Expenditur

e (Over)/ Under Expenditure

Final Appropriatio

n

Actual Expenditur

e (Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 Administration

113,064

96, 933

16, 131

109, 137

97, 905

11, 232

Fiscal Resource Management

102, 395

91, 203

11, 192

95, 008

76, 870

18, 138

Financial Management

269, 086

240, 986

28, 100

231, 379

212, 094

19, 285

Internal Audit

109, 581

107, 363

2, 218

106, 566

93, 154

13, 412

Growth and Development

59, 845

41, 055

18, 790

71, 145

38, 317

32, 828

TOTAL

R 653, 971

R 577, 541

R76, 431

R 613, 235

R 518, 340

R 94, 895

The department had an appropriated budget of R653, 971 million for the 2013/14 financial year

and (2012/13: R613, 235 million). The expenditure totalled R577, 541 million at year-end and

(2012/13: R518, 340 million). The department only spent 88.3 per cent resulting in an under-

spent of R76.429 million of the 2013/14 Final Appropriation. See details below:

• Compensation of employees was under-spent by 8%, due to delays in the filling of vacant

funded posts resulting from delays in approval of the new structure by the DPSA, high staff

turnover and, difficulty in finding suitably qualified candidates.

• Goods and services reflects under-expenditure of R34 613 million (9%) due to the following:

o Lower than anticipated audit costs,

o Under-expenditure on Operation Sukuma Sakhe, as funding was received late in the

financial year and thus could not be fully spent.

o Unsatisfactory work done by service providers within the MSP, which led to payments

being withheld for orders already issued.




o Delays in the appointment of a service provider for the e-Procurement Tool due to an

appeal.

o Delays in discussions with stakeholders in respect of the take-over of McCord Hospital.

o Delays in obtaining dates for GRAP training with municipalities, and

o The late receipt of invoices from service providers dealing with the Health Asset Register

and the Education capped-leave projects. Both projects will be completed during the

course of 2014/15.

• With regard to Transfers and subsidies:

o Provinces and municipalities reflects substantial under-spending of R18.383 million

resulting from delays in spending in respect of the light industrial park at Bhongweni

(under-spent by R5.321 million) and the Shayamoya eco-complex (R13.062 million

under-spent).

o Households were under-spent at year-end by R2.153 million mainly due to a delay in the

selection process regarding students for the Thuthuka Bursary Fund (R1.472 million).

The remaining amount of R681 000 is due to higher anticipated staff exits.

The following post Adjustments Estimate Virements were made between programmes:

A total amount of R162 000 was moved from Programme 3 : Financial Management

within economic classification Transfers and Subsidies to: Households to various

programmes as follows:

• Programme 1: Administration (R83 000) to sub-programmes Head of

Department an amount of R9 000 and R3 000 to Chief Financial Office and R71

000 to Human Resources Management.

• Programme 2: Fiscal Resources (R54 000) to sub-programmes: Economic

Analysis an amount of R2 000 and R52 000 to Municipal Finance.

• Programme 4 : Internal Audit (R25 000) to sub-programme: Risk Management

an amount of R23 000 and R2 000 to Assurance Services

Various post Adjustments Estimates were made between economic classifications within

the various programmes. All Virements were approved by the Accounting Officer of the

department in terms of Section 43(1) of the Public Finance Management Act.




Rollovers 2013/14

o The department has requested a roll-over of R6.100 million in respect of its Goods and

services budget, and

o A special roll-over of R18.383 million in respect of its Transfers and subsidies to:

provinces and municipalities budget.

Fruitless, Wasteful or Irregular Expenditure

• There was no fruitless, wasteful or irregular expenditure not condoned during 2013/14

financial year.

Future plans of the department

• The department will be crafting its new five year strategic plan in line with the new

administration of government, however the Treasury mandate remains unchanged.

Public Private Partnerships

• The department has no PPP project reported in past financial years and there is no current

project.

Discontinued activities / activities to be disconti nued

• The department did not have any discontinued activities for the year ended.

New or proposed activities

• There are no newly proposed activities by the department.

Supply chain management

Tender No Description Status

1173/2012-F Hardware Refresh Finalised 2013/2014

1175/2012-F BBBEE Verification Finalised 2013/2014

1176/2012-F Panel of SCM Expect Finalised 2013/2014

1177/2012-F E-Procurement Tool Finalised 2013/2014

1178/2012-F Travel Agency Finalised 2013/2014

1179/2012-F Travel Agency (online) Finalised 2013/2014




1180/2013-F Air Shows Finalised 2013/2014

1182/2013-F King Shaka Precinct- Feasibility study Finalised 2013/2014

1183/2013-F Contract Management Finalised 2013/2014

1184/2013-F Banking Services for KZN Provincial Government

Finalised 2013/2014

1185/2013-F Business Process Mapping (BPM) Finalised 2013/2014

1188/2013-F Cleaning Services for KZN Provincial Treasury Finalised 2013/2014

Prevention of Irregular expenditure and SCM challen ges

• The department has policies and practice notes that should be followed in executing SCM

functions to avoid irregular expenditure. There were no serious challenges encountered in

the SCM area that threatened the smooth functioning of the unit. However the bid appeals

by aggrieved bidders has been increasing and this may delay service delivery and budget

spending.

Gifts and Donations from non-related parties

• Donations Received (,000 )

ABSA Bank Sponsorship for the 2013: Women's Business Breakfast 13

FNB Sponsorship for the 2014: Budget Road Show 80

Total 93

• Donations made in Cash (,000)

Umgeni Municipality Cash Mar-14 35

Mpofana Municipality Cash Mar-14 35

Umshwathi Municipality Cash Mar-14 35

Impendle Municipality Cash Mar-14 35

Mkhambathini Municipality Cash Mar-14 35

Total 175

• Donations made in Kind (,000)

Duze Primary School Uniforms (PT056182); (PT056073) 66

Ottawa Primary School 50 pairs: School Shoes (PT056877) 8

Amaoti No3 Combine School 50 pairs: School Shoes (PT056877) 8

Bavumile Junior Primary School 50 pairs: School Shoes (PT056877) 8




Bhekulwandle P School 50 pairs: School Shoes (PT056877) 8

Wozamoya High School 50 pairs: School Shoes (PT056877) 8

18 Schools in Ndwedwe Circuit 25 pairs: School Shoes (PT056217) 2

12 Schools in Maphumulo Circuit 25 pairs: School Shoes (PT056217) 2

8 Schools in Mandeni Circuit 25 pairs: School Shoes (PT056217) 2

6 Schools in Mhlali Circuit 25 pairs: School Shoes (PT056217) 2

uMgungundlovu District 24 Soccer Kits (PT057002) 37

48 Schools in uMgungundlovu

District

Uniforms (Sundry 1304561; Dis 603700; Dis 603637;

dis603595; dis603639)

443

51 Schools in iLembe District School Uniforms (PT056463) 37

(Bongudunga High School) Netball Kit; 24 pairs of tekkies and socks Dis603558 10

5 Schools in Richmond District Net Ball Kit (Dis 603698) 53

4 Schools in Underberg School Uniforms (Dis 603638) 16

Total 710

Exemptions and deviations received from the Nationa l Treasury

There were no exemptions received by the department during the year 2013/14.

Events after the reporting date

There were no subsequent events occurred after reporting date.

Acknowledgement/s or Appreciation

I would like to express my special thanks to MEC for Finance for her support, Treasury

management and staff for their hard work during the year.

Conclusion

This report presents the annual financial statements and performance information report for the

financial year 2013/14.

Mr H.A.W. Conradie Acting Accounting Officer 31 May 2014

KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 REPORT OF THE AUDITOR-GENERAL FOR THE YEAR ENDED 31 MARCH 2014


REPORT OF THE AUDITOR-GENERAL TO KWAZULU-NATAL PROV INCIAL LEGISLATURE

ON VOTE NO. 6: KWAZULU-NATAL PROVINCIAL TREASURY

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the KwaZulu-Natal Provincial Treasury set out on

pages 134 to 197 which comprise the appropriation statement, the statement of financial

position as at 31 March 2014, 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 financi al statements

2. The accounting officer is responsible for the preparation and fair presentation of the

financial statements in accordance with the Modified Cash Standard as prescribed by

National Treasury and the requirements of the Public Finance Management Act of South

Africa, 1999 (Act No. 1 of 1999)(PFMA) and Division of Revenue Act of South Africa, 2013

(Act No. 2 of 2013)(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 the financial statements based on my audit. I

conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No.

25 of 2004)(PAA), the general notice issued in terms thereof and International Standards on

Auditing. Those standards require that I comply with ethical requirements, and plan and

perform the audit to obtain reasonable assurance about whether the financial statements

are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor’s

judgement, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the department’s preparation and fair presentation of

the financial statements in order to design audit procedures that are appropriate in the



circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

entity’s internal control. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of accounting estimates made by management, as

well as evaluating the overall presentation of the financial statements.

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

basis for my audit opinion.

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial

position of the KwaZulu-Natal Provincial Treasury as at 31 March 2014 and its financial

performance and cash flows for the year then ended, in accordance with the Modified Cash

Standards prescribed by National Treasury and the requirements of the PFMA and DoRA.

Emphasis of matter

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

Material under-spending of the budget

8. As disclosed in the appropriation statement, the department has materially under-spent the

budget on administration, fiscal resource financial management and growth and

development programmes to the amount of R74,21million. The under-spending is mainly

due to the delays in filling of budgeted vacant positions. This has resulted in a delay in the

completion of some of the planned projects.

Additional matter

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

Unaudited supplementary schedules

10. The supplementary information set out on pages 188 to 197 do 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.



REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

11. In accordance with the PAA and the general notice issued in terms thereof, I report the

following findings on the reported performance information against predetermined objectives

for selected programmes presented in the annual performance report, non-compliance with

legislation as well as 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

12. 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 2014:

• Programme 2: fiscal resource management on pages 22 to 31

• Programme 3: financial management: on pages 32 to 43

• Programme 4: internal audit on pages 44 to 49

• Programme 5: growth and development on page 50

13. I evaluated the reported performance information against the overall criteria of usefulness

and reliability.

14. 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).

15. I assessed the reliability of the reported performance information to determine whether it

was valid, accurate and complete.

16. I did not raise any material findings on the usefulness and reliability of the reported

performance information for the selected programmes.



Compliance with legislation

17. I performed procedures to obtain evidence that the department had complied with

applicable legislation regarding financial matters, financial management and other related

matters. I did not identify any instances of material non-compliance with specific matters in

key legislation, as set out in the general notice issued in terms of the PAA.

Internal control

18. I considered internal control relevant to my audit of the financial statements, annual

performance report and compliance with legislation. I did not identify any significant

deficiencies.

OTHER REPORTS

Investigations

19. The following investigations are currently being carried at KZN Provincial Treasury by the

provincial internal audit unit:

• alleged fraud and corruption in subsistence and travel claims;

• alleged noncompliance with the applicable legislation on appointment of a service

provider to the municipal infrastructure CRACK team;

• suspected undisclosed conflict of interest, and

• investigation into alleged misrepresentation on SBD 4 by officials within the department.

20. One investigation relates to the 2012/13 financial year and three relate to the 2013/14

financial year.

Pietermaritzburg

31 July 2014


PART D: HUMAN RESOURCE MANAGEMENT INFORMATION FOR T HE YEAR ENDED 31 MARCH 2014


HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 1.1 - Personnel costs by Programme

Programme Total Voted Expenditure

(R'000)

Compensation of

Employees Expenditure

(R'000)

Training Expenditure

(R'000)

Professional and

Special Services (R'000)

Compensation of Employees as

percent of Total Expenditure

Average Compensa

tion of Employees Cost per

Employee (R'000)

Employm-ent

Administration 94 282 52 287 0 0 55.5 115 342 Financial management 240 495 49 791 0 0 20.7 110 342 Fiscal resource management

91 137 37 104 0 0 40.7 82 342

Growth & development 41 055 0 0 0 0 0 342 Internal audit 107 242 49 450 0 0 46.1 109 342 Total as on Financial Systems (BAS)

577 517 188 632 0 0 32.7 416 342

TABLE 1.2 - Personnel costs by Salary band

Salary Bands

Compensation of Employees Cost

including Transfers (R'000)

Percentage of Total

Personnel Cost for Department

Average Compensation

Cost per Employee (R)

Total Personnel Cost for Dept

including Goods and Services

(R'000)

Number of Employees

Skilled (Levels 3-5) 6 307 3.2 114 673 197 909 55 Highly skilled production (Levels 6-8)

26 249 13.3 340 896 197 909 77

Highly skilled supervision (Levels 9-12)

85 063 43 521 859 197 909 163

Senior management (Levels 13-16)

46 469 23.5 988 702 197 909 47

Contract (Levels 1-2) 2 489 1.3 62 225 197 909 40 Contract (Levels 3-5) 8 175 4.1 95 058 197 909 86




Contract (Levels 6-8) 1 330 0.7 266 000 197 909 5 Contract (Levels 9-12) 4 254 2.1 425 400 197 909 10 Contract (Levels 13-16) 6 202 3.1 886 000 197 909 7 Periodical Remuneration 4 436 2.2 92 417 197 909 48 TOTAL 190 974 96.5 354 970 197 909 538 TABLE 1.3 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Programme

Programme Salaries (R'000)

Salaries as % of Personnel

Cost

Overtime (R'000)

Overtime as % of Personnel

Cost

HOA (R'000)

HOA as % of

Personnel Cost

Medical Ass. (R'000)

Medical Ass. as % of Personnel

Cost

Total Personnel Cost per

Programme (R'000)

Prog 2: Fiscal resource management

30421 80.1 0 0 1182 3.1 611 1.6 37991

Prog 1: administration 38333 73.5 457 0.9 1191 2.3 1563 3 52146 Prog 1: administration* 2656 73.6 3 0.1 114 3.2 126 3.5 3607 Prog 3: financial management

37585 73.4 367 0.7 1090 2.1 1077 2.1 51192

Prog 4: internal audit 39034 73.7 0 0 1317 2.5 1129 2.1 52974 TOTAL 148 029 74.8 827 0.4 4 894 2.5 4506 2.3 197 910 TABLE 1.4 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Band

Salary bands Salaries (R'000)

Salaries as % of Personnel

Cost

Overtime (R'000)

Overtime as % of Personnel

Cost

HOA (R'000)

HOA as % of

Personnel Cost

Medical Ass. (R'000)

Medical Ass. as % of Personnel

Cost

Total Personnel Cost per

Salary Band (R'000)

Skilled (Levels 3-5) 4383 69.5 8 0.1 380 6 548 8.7 6311 Highly skilled production (Levels 6-8)

18702 70.8 423 1.6 895 3.4 1487 5.6 26422


64908 73.8 255 0.3 2186 2.5 2089 2.4 87916


38237 77.3 0 0 1422 2.9 384 0.8 49444

Contract (Levels 1-2) 2479 99.4 10 0.4 0 0 0 0 2493




Contract (Levels 3-5) 7909 94.8 35 0.4 0 0 0 0 8342 Contract (Levels 6-8) 1263 94.7 14 1 11 0.8 0 0 1334 Contract (Levels 9-12) 4062 92.7 83 1.9 0 0 0 0 4384 Contract (Levels 13-16) 6087 93.1 0 0 0 0 0 0 6538 Periodical Remuneration

0 0 0 0 0 0 0 0 4724

TOTAL 148 030 74.8 828 0.4 4 894 2.5 4 508 2.3 197 908

HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance

TABLE 2.1 - Employment and Vacancies by Programme at end of period

Programme Number of

Posts Number of Posts

Filled Vacancy Rate Number of Posts

Filled Additional to the Establishment

Prog 1: Administration, Permanent 122 107 12.3 48 Prog 1: Administration*, Permanent 12 8 33.3 0 Prog 2: Fiscal resource management, Permanent 72 61 15.3 11 Prog 3: Financial management, Permanent 106 84 20.8 35 Prog 4: Internal audit, Permanent 98 82 16.3 54 TOTAL 410 342 16.6 148 TABLE 2.2 - Employment and Vacancies by Salary Band at end of period

Salary Band Number of




Lower skilled (Levels 1-2), Permanent 0 0 0 0 Skilled (Levels 3-5), Permanent 64 55 14.1 0 Highly skilled production (Levels 6-8), Permanent 95 77 18.9 0 Highly skilled supervision (Levels 9-12), Permanent 196 163 16.8 0 Senior management (Levels 13-16), Permanent 55 47 14.5 0 Contract (Levels 1-2), Permanent 40 40 0 40 Contract (Levels 3-5), Permanent 92 86 6.5 86 Contract (Levels 6-8), Permanent 7 5 28.6 5 Contract (Levels 9-12), Permanent 10 10 0 10




Contract (Levels 13-16), Permanent 10 7 30 7 TOTAL 569 490 13.9 148 TABLE 2.3 - Employment and Vacancies by Critical Occupation at end of period

Critical Occupations Number of




Administrative related, Permanent 46 39 15.2 3 Bus and heavy vehicle drivers, Permanent 6 6 0 0 Client inform clerks(switchboard reception inform clerks), Permanent 2 2 0 0 Communication and information related, Permanent 4 4 0 0 Economist 1 1 0 0 Finance and economics related, Permanent 38 33 13.2 1 Financial and related professionals, Permanent 55 44 20 3 Financial clerks and credit controllers, Permanent 19 16 15.8 52 General legal administration & rel. professionals, Permanent 1 0 100 0 Head of department/chief executive officer, Permanent 1 1 0 1 Human resources &organisat develop & relate prof, Permanent 22 16 27.3 0 Human resources clerks, Permanent 21 17 19 0 Human resources related, Permanent 7 5 28.6 0 Information technology related, Permanent 2 2 0 0 Library mail and related clerks, Permanent 6 6 0 0 Material-recording and transport clerks, Permanent 4 3 25 0 Messengers porters and deliverers, Permanent 3 3 0 0 Other administrative& related clerks and organisers, Permanent 29 28 3.4 80 Other administrative policy and related officers, Permanent 50 41 18 0 Other information technology personnel., Permanent 9 6 33.3 0 Other occupations, Permanent 0 0 0 0 Risk management and security services, Permanent 0 0 0 0 Secretaries & other keyboard operating clerks, Permanent 31 23 25.8 2 Senior managers, Permanent 53 46 13.2 6 TOTAL 410 342 16.6 148




TABLE 2.4 - Signing of performance Agreements by SMS Members as at 30 September 2013

SMS LEVEL

Total Number of

Funded SMS Posts Per Level

Total Number of SMS Members

per Level

Total Number of Signed

Performance Agreements per

Level

Signed performance agreements as % of

total number of SMS members per level

Director-General/Head of Department 1 1 1 0 Salary Level 16, but not HOD 0 0 0 0 Salary Level 15 3 2 2 100 Salary Level 14 11 9 9 100 Salary Level 13 40 37 37 100 TOTAL 55 49 49 100 TABLE 2.5 - SMS Post Information as at 31 March 2014 SMS LEVEL Total No of Funded

SMS Posts Per Level

Total Number of SMS Posts filled per

Level

%age of SMS posts filled per

level

Total number of SMS posts vacant per

level

%age of SMS posts vacant per

level

Director-General/Head of Department 1 1 100 0 0 Salary Level 16, but not HOD 0 0 0 0 0 Salary Level 15 3 1 33.33 2 66.66 Salary Level 14 11 11 72.72 0 27.27 Salary Level 13 40 34 85.71 6 14.28 TOTAL 55 47 80 8 20 TABLE 2.6 - Advertising and filling of SMS posts as at 31 March 2014 SMS LEVEL ADVERTISING FILLING OF POSTS

No of vacancies per level

advertised in 6 months of becoming

vacant

Number of vacancies per level filled in 6

months of becoming

vacant

Number of vacancies per level not filled in 6 months of

becoming vacant but in 12

months

Director-General/Head of Department 0 0 0




Salary Level 16, but not HOD 0 0 0 Salary Level 15 2 0 0 Salary Level 14 0 0 0 Salary Level 13 3 0 0 TOTAL 5 0 0 HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 3.1 - Job Evaluation

Salary Band Number of Posts Number of Jobs

Evaluated % of Posts Evaluated

Number of Posts Upgraded

% of Upgraded

Posts Evaluated

Number of Posts

Downgraded

% of Downgraded

Posts Evaluated

Lower skilled (Levels 1-2) 0 0 0 0 0 0 0 Contract (Levels 1-2) 0 0 0 0 0 0 0 Contract (Levels 3-5) 0 0 0 0 0 0 0 Contract (Levels 6-8) 0 0 0 0 0 0 0 Contract (Levels 9-12) 0 0 0 0 0 0 0 Contract (Band A) 0 0 0 0 0 0 0 Skilled (Levels 3-5) 64 0 0 1 0 0 0 Highly skilled production (Levels 6-8)

95 0 0 0 0 0 0


196 0 0 0 0 0 0

Senior Management Service Band A

40 0 0 0 0 0 0

Senior Management Service Band B

11 0 0 0 0 0 0

Senior Management Service Band C

3 0 0 0 0 0 0

Senior Management Service Band D

1 0 0 0 0 0 0

TOTAL 410 0 0 1 0 0 0




TABLE 3.2 - Profile of employees whose positions were upgraded due to their posts being upgraded Beneficiaries African Asian Coloured White Total Female 1 0 0 0 1 Male 0 0 0 0 0 Total 1 0 0 0 1 Employees with a Disability 0 0 0 0 0 TABLE 3.3 - Employees whose salary level exceed the grade determined by Job Evaluation [i.t.o PSR 1.V.C.3]

Occupation Number of Employees

Job Evaluation Level

Remuneration Level

Reason for Deviation

No of Employees in Dept

xxx 0 0 0 0 0 xxx 0 0 0 0 0 Total 0 0 0 0 0 Percentage of Total Employment 0 0 0 0 0 TABLE 3.4 - Profile of employees whose salary level exceeded the grade determined by job evaluation [i.t.o. PSR 1.V.C.3] Beneficiaries 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 0 0 0 0 HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 4.1 - Annual Turnover Rates by Salary Band

Salary Band Employment at Beginning of Period (April 2013)

Appointments Terminations Turnover Rate

Skilled (Levels 3-5), Permanent 57 4 6 10.5 Highly skilled production (Levels 6-8), Permanent 99 5 12 12.1 Highly skilled supervision (Levels 9-12), Permanent

196 11 18 9.2

Senior Management Service Band A, Permanent 40 1 2 5 Senior Management Service Band B, Permanent 11 0 1 9.1




Senior Management Service Band C, Permanent 3 0 0 0 Senior Management Service Band D, Permanent 1 0 0 0 Contract (Levels 1-2), Permanent 31 0 0 0 Contract (Levels 3-5), Permanent 66 0 0 0 Contract (Levels 6-8), Permanent 5 0 0 0 Contract (Levels 9-12), Permanent 9 0 0 0 Contract (Band A), Permanent 6 0 0 0 Contract (Band D), Permanent 1 0 0 0 TOTAL 525 21 39 7.4 TABLE 4.2 - Annual Turnover Rates by Critical Occupation

Occupation Employment at Beginning of Period (April 2013) Appointments Terminations Turnover Rate

Administrative related, Permanent 46 2 1 2.2 Bus and heavy vehicle drivers, Permanent 6 0 0 0 Client inform clerks(switchbrecept inform clerks), Permanent

2 0 0 0

Communication and information related, Permanent

4 0 0 0

Finance and economics related, Permanent 38 3 3 7.9 Financial and related professionals, Permanent 55 6 7 12.7 Financial clerks and credit controllers, Permanent 18 0 1 5.6 Head of department/chief executive officer, Permanent

1 0 0 0

Human resources &organisatdevelopm& relate prof, Permanent

22 1 3 13.6

Human resources clerks, Permanent 21 2 2 9.5 Human resources related, Permanent 7 2 0 0 Information technology related, Permanent 2 0 0 0 Library mail and related clerks, Permanent 6 0 0 0 Material-recording and transport clerks, Permanent 4 0 1 25 Messengers porters and deliverers, Permanent 3 0 0 0 Other administrat& related clerks and organisers, Permanent

29 1 3 10.3




Other administrative policy and related officers, Permanent

50 2 8 16

Other information technology personnel., Permanent

9 0 1 11.1

Other occupations, Permanent 2 0 0 0 Risk management and security services, Permanent 0 0 0 0 Secretaries & other keyboard operating clerks, Permanent

29 2 6 20.7

Senior managers, Permanent 53 0 3 5.7 TOTAL 407 21 39 9.6

TABLE 4.3 - Reasons why staff are leaving the department

Termination Type Number Percentage of

Total Resignations

Percentage of Total Employment

Total Total Employment

Death, Permanent 2 2 0.6 99 342 Resignation, Permanent 14 14.1 4.1 99 342 Transfers out of the Department 21

Expiry of contract, Permanent 0 0 0 99 342 Dismissal-misconduct, Permanent 2 2 0.6 99 342 Retirement, Permanent 0 0 0 99 342 TOTAL 39 39.4 11.4 99 342 Resignations as % of Employment




TABLE 4.4 - Granting of Employee Initiated Severance Packages

Category No of applications received

No of applications

referred to the MPSA

No of applications supported by

MPSA

No of Packages approved

by department

Lower Skilled (Salary Level 1-2) 0 0 0 0 Skilled (Salary Level 3-5) 0 0 0 0 Highly Skilled Production (Salary Level 6-8) 0 0 0 0 Highly Skilled Production (Salary Level 9-12) 0 0 0 0 Senior Management (Salary Level 13 and higher) 0 0 0 0 Total 0 0 0 0 TABLE 4.5 - Promotions by Critical Occupation

Occupation Employment at Beginning of Period (April 2013)

Promotions to another Salary

Level

Salary Level Promotions as a %

of Employment

Progressions to another

Notch within Salary Level

Notch progressions

as a % of Employment

Administrative related 46 1 2.2 28 60.9 Bus and heavy vehicle drivers 6 0 0 2 33.3 Client inform clerks(switchbrecept inform clerks) 2 0 0 1 50 Communication and information related 4 0 0 3 75 Finance and economics related 38 0 0 15 39.5 Financial and related professionals 55 1 1.8 38 69.1 Financial clerks and credit controllers 18 2 11.1 10 55.6 Head of department/chief executive officer 1 0 0 0 0 Human resources &organisatdevelopm& relate prof

22 0 0 16 72.7

Human resources clerks 21 0 0 11 52.4 Human resources related 7 0 0 2 28.6 Information technology related 2 0 0 1 50 Library mail and related clerks 6 0 0 4 66.7 Material-recording and transport clerks 4 0 0 2 50 Messengers porters and deliverers 3 0 0 3 100 Other administrat& related clerks and organisers 29 2 6.9 14 48.3




Other administrative policy and related officers 50 0 0 37 74 Other information technology personnel. 9 0 0 5 55.6 Other occupations 2 0 0 0 0 Risk management and security services 0 0 0 1 0 Secretaries & other keyboard operating clerks 29 1 3.4 20 69 Senior managers 53 3 5.7 61 115.1 TOTAL 407 10 2.5 274 67.3

TABLE 4.6 - Promotions by Salary Band

Salary Band Employment at Beginning of

Period (April 2013)

Promotions to another Salary

Level

Salary Level Promotions as a % of

Employment

Progressions to another Notch within Salary

Level

Notch progressions

as a % of Employment

Skilled (Levels 3-5), Permanent 57 0 0 20 35.1 Highly skilled production (Levels 6-8), Permanent 99 5 5.1 70 70.7 Highly skilled supervision (Levels 9-12), Permanent

196 2 1 119 60.7

Senior management (Levels 13-16), Permanent 55 3 5.5 60 109.1 Contract (Levels 1-2), Permanent 0 0 0 0 0 Contract (Levels 3-5), Permanent 0 0 0 1 0 Contract (Levels 6-8), Permanent 0 0 0 0 0 Contract (Levels 9-12), Permanent 0 0 0 0 0 Contract (Levels 13-16), Permanent 0 0 0 4 0 TOTAL 407 10 2.5 274 67.3 HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 5.1 - Total number of Employees (incl. Employees with disabilities) per Occupational Category (SASCO) Occupational Categories

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total

Legislators, senior officials and managers, Permanent

16 2 5 23 2 8 0 7 15 3 43

Professionals, Permanent 44 0 5 49 5 39 1 4 44 8 106 Technicians and associate professionals, Permanent

38 0 3 41 0 33 1 5 39 2 82




Clerks, Permanent 34 1 0 35 0 44 1 9 54 12 101 Service and sales workers, Permanent 1 0 0 1 0 0 0 0 0 0 1 Plant and machine operators and assemblers, Permanent

4 0 0 4 1 1 0 0 1 0 6

Elementary occupations, Permanent 0 0 0 0 0 0 0 0 0 0 0 Other, Permanent (Lab &Rel Workers) 3 0 0 3 0 0 0 0 0 0 3 TOTAL 140 3 13 156 8 125 3 25 153 25 342

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total

Employees with disabilities 3 0 1 4 0 0 0 0 0 1 5

TABLE 5.2 - Total number of Employees (incl. Employees with disabilities) per Occupational Bands Occupational Bands

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total

Top Management, Permanent 1 0 2 3 0 1 0 0 1 0 4 Senior Management, Permanent 17 2 4 23 2 7 1 7 15 3 43 Professionally qualified and experienced specialists and mid-management, Permanent

60 0 5 65 5 41 0 8 49 6 125

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent

46 0 2 48 1 54 2 8 64 16 129

Semi-skilled and discretionary decision making, Permanent

16 1 0 17 0 22 0 2 24 0 41

Unskilled and defined decision making, Permanent

0 0 0 0 0 0 0 0 0 0 0

Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Skilled technical), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Semi-skilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Unskilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 TOTAL 140 3 13 156 8 125 3 25 153 25 342




TABLE 5.3 - Recruitment Occupational Bands

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total

Top Management/SMS, Permanent 0 0 0 0 0 0 1 0 1 0 1 Professionally qualified and experienced specialists and mid-management, Permanent

3 0 0 3 0 4 0 1 5 0 8


4 0 0 4 0 8 0 0 8 0 12


0 0 0 0 0 0 0 0 0 0 0

Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Skilled technical), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Semi-skilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Unskilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 TOTAL 7 0 0 7 0 12 1 1 14 0 21

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total


TABLE 5.4 - Promotions Occupational Bands

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total

Top Management/SMS, Permanent 1 0 0 1 0 1 0 0 1 1 3 Senior Management, Permanent 0 0 0 0 0 0 0 0 0 0 0 Professionally qualified and experienced specialists and mid-management, Permanent

0 0 0 0 0 1 0 0 1 0 1

Skilled technical and academically qualified workers, junior management, supervisors,

2 0 0 2 0 3 0 0 3 1 6




foremen, Permanent Semi-skilled and discretionary decision making, Permanent

0 0 0 0 0 0 0 0 0 0 0

Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Semi-skilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 TOTAL 3 0 0 3 0 5 0 0 5 2 10

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total


TABLE 5.5 - Terminations Occupational Bands

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total

Top Management, Permanent 0 0 0 0 0 1 0 0 1 0 1 Senior Management, Permanent 0 0 1 0 0 1 0 0 1 0 2 Professionally qualified and experienced specialists and mid-management, Permanent

4 0 1 2 0 5 0 0 2 1 11


7 0 0 3 0 11 0 0 7 0 18


3 0 0 1 0 4 0 0 1 0 7

Contract (Top Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Skilled technical), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Semi-skilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 Contract (Unskilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 TOTAL 14 0 2 6 0 22 0 0 12 1 39




Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total

No data 0 0 0 0 0 0 0 0 0 0 0

TABLE 5.6 - Disciplinary Action Disciplinary action

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total

Tampering with Supply Chain management procurement 0 0 0 0 0 0 0 0 0 0 0

Drunk on duty and un-authorised absence from duty 1 0 0 1 0 0 0 0 0 0 1

Coluding with suppliers in executing procurement functions within CFO 0 0 0 0 0 0 0 0 0 0 0

TOTAL 1 0 0 1 0 0 0 0 0 0 1

TABLE 5.7 - Skills Development Occupational Categories

Male, African

Male, Coloured

Male, Indian

Male, Total Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total

Legislators, Senior Officials and Managers 18 3 9 30 3 17 5 11 35 4 70 Professionals 118 0 8 122 0 123 2 20 145 4 275 Technicians and Associate Professionals 18 0 0 18 0 61 2 5 68 8 94 Clerks 18 0 0 17 0 25 0 7 34 0 50 Service and Sales Workers 0 0 0 0 0 0 0 0 0 0 0 Skilled Agriculture and Fishery Workers 0 0 0 0 0 0 0 0 0 0 0 Craft and related Trades Workers 0 0 0 0 0 0 0 0 0 0 0 Plant and Machine Operators and Assemblers 1 0 0 1 0 2 0 0 0 0 3 Elementary Occupations 3 0 0 3 0 0 0 0 0 0 3 TOTAL 176 3 17 191 3 228 9 43 282 16 495 Employees with disabilities 0 0 0 0 0 0 0 0 0 0 0




HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 6.1 - Performance Rewards by Race, Gender and Disability

Demographics Number of

Beneficiaries Total

Employment

Percentage of Total

Employment Cost (R'000)

Average Cost per

Beneficiary (R)

African, Female 20 125 11.2 362 17 256 African, Male 12 140 7.4 260 20 009 Asian, Female 10 25 34.5 183 18 347 Asian, Male 3 13 20 164 54 524 Coloured, Female 1 3 50 35 17 525 Coloured, Male 0 3 0 0 0 Total Blacks, Female 31 153 14.9 581 17 603 Total Blacks, Male 15 156 8.2 424 26 481 White, Female 11 25 44 276 25 078 White, Male 2 8 22.2 49 24 398 Employees with a disability 1 5 0 0 0 TOTAL 59 342 13.7 1 329 21 439 TABLE 6.2 - Performance Rewards by Salary Band for Personnel below Senior Management Service

Salary Band Number of

Beneficiaries Total

Employment

Percentage of Total


Average Cost per

Beneficiary (R)

Skilled (Levels 3-5) 6 55 10.9 37 6 167 Highly skilled production (Levels 6-8) 14 77 18.2 171 12 214 Highly skilled supervision (Levels 9-12) 33 163 20.2 775 23 485 Contract (Levels 1-2) 0 0 0 0 0 Contract (Levels 3-5) 0 0 0 0 0 Contract (Levels 6-8) 0 0 0 0 0 Contract (Levels 9-12) 0 0 0 0 0 Periodical Remuneration 0 0 0 0 0 TOTAL 53 295 18 983 18 547




TABLE 6.3 - Performance Rewards by Critical Occupation

Critical Occupations Number of Beneficiaries

Total Employment

Percentage of Total


Average Cost per

Beneficiary (R)

Administrative related 5 39 12.8 151 30 200 Bus and heavy vehicle drivers 1 6 16.7 11 11 000 Client inform clerks(switchbrecept inform clerks)

0 2 0 0 0

Communication and information related 1 4 25 41 41 000 Finance and economics related 0 33 0 20 0 Financial and related professionals 16 44 36.4 383 23 938 Financial clerks and credit controllers 6 16 37.5 46 7 667 Head of department/chief executive officer 0 1 0 0 0 Human resources &organisatdevelopm& relate prof

3 16 18.8 51 17 000

Human resources clerks 3 17 17.6 61 20 333 Human resources related 0 5 0 0 0 Information technology related 2 2 100 44 22 000 Library mail and related clerks 0 6 0 0 0 Material-recording and transport clerks 0 3 0 0 0 Messengers porters and deliverers 0 3 0 0 0 Other administrat& related clerks and organisers

3 28 10.7 47 15 667

Other administrative policy and related officers

2 41 4.9 41 20 500

Other information technology personnel. 4 6 66.7 53 13 250 Other occupations 0 0 0 0 0 Rank: Unknown (Economist) 0 1 0 0 0 Risk management and security services 0 0 0 0 0 Secretaries & other keyboard operating clerks 7 23 30.4 58 8 286 Senior managers 6 46 13 323 53 833 TOTAL

59 342 17.3 1330 22 542




TABLE 6.4 - Performance Related Rewards (Cash Bonus) by Salary Band for Senior Management Service

SMS Band Number of Beneficiaries

Total Employment

Percentage of Total


Average Cost per

Beneficiary (R)

% of SMS Wage Bill

Personnel Cost SMS (R'000)

Band A 4 34 11.8 186 46 500 0.5 34 784 Band B 0 11 0 39 0 0.4 10 439 Band C 2 1 200 121 60 500 3.8 3 216 Band D 0 1 0 0 0 0 0 TOTAL 6 47 12.8 346 57 666.7 0.7 48 439




HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 7.1 - Foreign Workers by Salary Band

Salary Band Employment at Beginning

Period

Percentage of Total

Employment at End of

Period

Percentage of Total

Change in Employment

Percentage of Total

Total Employment at Beginning

of Period

Total Employment

at End of Period

Total Change in

Employment


1 50 1 50 0 0 2 2 0

Contract (Levels 13-16) 1 50 1 50 0 0 2 2 0 TOTAL 2 100 2 100 0 0 2 2 0 TABLE 7.2 - Foreign Workers by Major Occupation

Major Occupation Employment at Beginning

Period

Percentage of Total

Employment at End of

Period

Percentage of Total

Change in Employment

Percentage of Total

Total Employment at Beginning

of Period

Total Employment

at End of Period

Total Change in

Employment

Professionals and managers 2 100 2 100 0 0 2 2 0 TOTAL 2 100 2 100 0 0 2 2 0




HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 8.1 - Sick Leave for Jan 2013 to Dec 2013

Salary Band Total Days % Days with

Medical Certification

Number of Employees using Sick

Leave

% of Total Employees using Sick

Leave

Average Days per Employee

Estimated Cost (R'000)

Total number of Employees using Sick

Leave

Total number of days with medical

certification Skilled (Levels 3-5) 401 77.3 40 10.5 10 159 380 310 Highly skilled production (Levels 6-8) 610 76.1 83 21.8 7 433 380 464 Highly skilled supervision (Levels 9-12)

936 73.1 130 34.2 7 1 542 380 684

Senior management (Levels 13-16) 186 73.1 35 9.2 5 581 380 136 Contract (Levels 1-2) 76 32.9 31 8.2 2 15 380 25 Contract (Levels 3-5) 174.5 43 49 12.9 4 76 380 75 Contract (Levels 6-8) 21 95.2 5 1.3 4 11 380 20 Contract (Levels 9-12) 34 79.4 5 1.3 7 56 380 27 Contract (Levels 13-16) 5 20 2 0.5 3 15 380 1 TOTAL 2443.5 71.3 380 100 6 2 888 380 1 742 TABLE 8.2 - Disability Leave (Temporary and Permanent) for Jan 2013 to Dec 2013

Salary Band Total Days % Days with

Medical Certification

Number of Employees

using Disability

Leave

% of Total Employees

using Disability

Leave

Average Days per Employee

Estimated Cost (R'000)

Total number of days with medical

certification

Total number of Employees

using Disability

Leave Skilled (Levels 3-5) 19 100 1 25 19 9 19 4 Highly skilled production (Levels 6-8) 77 100 1 25 77 54 77 4 Highly skilled supervision (Levels 9-12)

146 100 1 25 146 147 146 4

Senior management (Levels 13-16) 8 100 1 25 8 24 8 4 TOTAL 250 100 4 100 63 234 250 4




TABLE 8.3 - Annual Leave for Jan 2013 to Dec 2013

Salary Band Total Days Taken

Average days per

Employee

Number of Employees who took

leave

Skilled (Levels 3-5) 805 18 45 Highly skilled production (Levels 6-8) 2151 21 104 Highly skilled supervision (Levels 9-12)

3585 20 179

Senior management (Levels 13-16) 1137 23 50 Contract (Levels 1-2) 465 8 57 Contract (Levels 3-5) 886.92 10 88 Contract (Levels 6-8) 67 8 8 Contract (Levels 9-12) 111 11 10 Contract (Levels 13-16) 91 13 7 TOTAL 9298.92 17 548 TABLE 8.4 - Capped Leave for Jan 2013 to Dec 2013

Salary Band Total days of capped

leave taken

Average number of days taken

per employee

Average capped leave

per employee as

at 31 December

2013

Number of Employees who took Capped

leave

Total number of

capped leave available at

31 December

2013

Number of Employees

as at 31 December

2013

Highly skilled production (Levels 6-8) 5 5 54 1 1237 23 Highly skilled supervision (Levels 9-12)

2 2 67 1 2088 31

TOTAL 7 4 62 2 3 325 54




TABLE 8.5 - Leave Payouts

Reason Total

Amount (R'000)

Number of Employees

Average Payment per

Employee (R)

Capped leave payouts on termination of service for 2013/14 0 0 0

Current leave payouts on termination of service for 2013/14 201 12 16750

TOTAL 201 12 16 750 TABLE 9.1 - Details of Health Promotion and HIV/AIDS Programmes [tick Yes/No and provide required information] 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

Mrs. Kogie Chetty: Senior Manager: HRM&D

2. Does the department have a dedicated unit or have you designated specific staff members to promote health and well being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

X

The Department has a dedicated EHWP Sub Directorate that reports directly to the Senior Manager: HRM&D. The Unit comprises of two employees at a Deputy Manager (SL11) and Practitioner (SL07) level. The annual EHWP budget which also incorporates special projects relating to youth, PWD's and gender programmes is R350 000.00

3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of the programme. X

Professional Counselling and external referral if necessary, monthly onsite Chronic disease Management, Healthy lifestyle promotions, Stress management programmes, financial literacy, monitor implementation and management of SHERQ, analysis and management of Heath and productivity Programmes.

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 Department uses one Consultative Forum that serves as the committee to monitor, discuss and evaluate all HR processes including the Employee Health and Wellness Program. The Committee is chaired by the Senior Manger: HRM, has a representative from every business Unit in the Department and also comprises of our social partners viz Provincial Organised labour




representatives.

5. Has the department reviewed the employment policies and practices of your department to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed. X

The Recruitment and Retention policies of the Department have been reviewed and are reviewed annually to ensure that no unfair discrimination is practiced against any employee during the processes of recruitment and retention which includes employees who are HIV positive. All HR policies are reviewed annually to ensure that elements of discrimination are not present in policies.

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

Establishment of an Employee Health Wellness unit, Awareness campaigns on issues of stigma, HIV prevention and management as well as issues relating to adherence, inclusion of a disciplinary clause on the HIV, AIDS & TB policy in case a discriminatory act is committed, all documents regarding employee's health, produced in terms of PILLAR are kept in the wellness unit to ensure confidentiality. Availability of an onsite Wellness clinic as well as quarterly HCT campaigns are some of the ways of dealing with stigma as all employees are encouraged to use the clinic, not just the HIV positive employees as a means to provide treatment, care and support for all employees including those that are infected and affected by HIV&AIDS.

7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have achieved.

X

The number of employees that participated in HCT increased from 175 to 187 compared to the previous financial year, only 2 employees tested HIV positive.

8. Has the department developed measures/indicators to monitor & evaluate the impact of your health promotion programme? If so, list these measures/indicators.

X

Annual client satisfaction surveys, evaluation questionnaires at the end of workshops.

HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 10.1 - Collective Agreements

Subject Matter Date nil




TABLE 10.2 - Misconduct and Discipline Hearings Finalised Outcomes of disciplinary hearings Number Percentage of Total Total Dismissal (employee resigned whilst appealing outcome) 1 33.4 1 Final written warning 2 66.6 2 TOTAL 3 100 3 TABLE 10.3 - Types of Misconduct Addressed and Disciplinary Hearings Type of misconduct Number Percentage of Total Total Colluding with suppliers in executing procurement functions within CFO 0 0 0 Unacceptable behaviour/ drunk on duty 1 33.3 3 Tampering with Supply Chain management procurement 0 0 0 TOTAL 1 100 3 TABLE 10.4 - Grievances Lodged Number of grievances addressed Number Percentage of Total Total TOTAL 6 100 6 TABLE 10.5 - Disputes Lodged Number of disputes addressed Number % of total Upheld 0 0 Dismissed 0 0

TABLE 10.6 - Strike Actions Total number of person working days lost 0

Total cost(R'000) of working days lost 0

Amount (R'000) recovered as a result of no work no pay 0

TABLE 10.7 - Precautionary Suspensions Number of people suspended 0 Number of people whose suspension exceeded 30 days 0 Average number of days suspended 0 Cost (R'000) of suspensions R 0.00




HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal - Finance TABLE 11.1 - Training Needs identified

Occupational Categories Gender Employment Learnerships

Skills Programmes &

other short courses

Other forms of training Total

Legislators, senior officials and managers Female 18 0 61 3 64 Male 25 0 115 5 120 Professionals Female 52 0 335 9 344 Male 54 0 331 18 349 Technicians and associate professionals Female 41 0 25 3 28 Male 41 0 15 6 21 Clerks Female 66 0 211 19 230 Male 35 0 83 15 98 Service and sales workers Female 0 0 0 0 0 Male 1 0 0 0 0 Skilled agriculture and fishery workers Female 0 0 0 0 0 Male 0 0 0 0 0 Craft and related trades workers Female 0 0 0 0 0 Male 0 0 0 0 0 Plant and machine operators and assemblers Female 1 0 0 0 0 Male 5 0 6 0 6 Labourers & Related Workers Female 0 0 0 0 0 Male 3 0 11 0 11 Gender sub totals Female 178 0 632 34 666 Male 164 0 550 44 594 Total

342 0 1182 78 1260




TABLE 11.2 - Training Provided Occupational Categories

Gender Employment Learnerships

Skills Programmes &

other short courses

Other forms of training

Total

Legislators, senior officials and managers Female 18 0 42 0 42 Male 25 0 30 1 31 Professionals Female 52 0 150 3 153 Male 54 0 122 0 122 Technicians and associate professionals Female 41 0 76 0 76 Male 41 0 18 0 18 Clerks Female 66 0 31 2 33 Male 35 0 17 0 17 Service and sales workers Female 0 0 0 0 0 Male 1 0 0 0 0 Skilled agriculture and fishery workers Female 0 0 0 0 0 Male 0 0 0 0 0 Craft and related trades workers Female 0 0 0 0 0 Male 0 0 0 0 0 Plant and machine operators and assemblers Female 1 0 0 0 0 Male 5 0 3 0 3 Labourers & Related Workers Female 0 0 0 0 0 Male 3 0 0 0 0 Gender sub totals Female 178 0 299 5 304 Male 164 0 190 1 191 Total

342 0 489 6 495




HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu-Natal -Finance TABLE 12.1 - Injury on Duty Nature of injury on duty Number % of total Required basic medical attention only 1 100 Temporary Total Disablement 0 0 Permanent Disablement 0 0 Fatal 0 0 Total 1

HR OVERSIGHT - APRIL 2013 to MARCH 2014 - KwaZulu Natal - Finance TABLE 13.1 - Report on consultant appointments using appropriated funds

Project Title Total number of consulting firms that worked on the project

Duration: Work days

Contract value in Rand

Forensic investigation into the award of the IT contract @ KZN Provincial Treasury 1 40 R 184 452.00

Forensic Investigation into the high fuel consumption fuel @ Dannhauser Municipality 1 160 R 413 384.04

Audit on Public Entities support-Department of Economic development & Tourism 1 20 R 145 920.00

Performance Information and review of consolidated financial statements 2013/2014 KZN Provincial treasury 1 15 R 72 960.00

Performance information @ KZN Provincial Treasury 1 10 R 41 040.00

Testify at DC Hearing of Department of Transport 1 5 R 159 600.00

Resource for forensic investigation @ ILembe district municipality 1 40 R 454 275.75

Audit on subsistence and travel allowance- COGTA 1 15 R 109 440.00

Seconded to cluster audit & risk committee 1 20 R 277 248.00




Consultants for IT Strategy Review 1 40 R 544 000.00

Resources IT audit of system 1 10 R 166 668.00

Resources for Compliance Monitoring 1 10 R 54 720.00

IT application control reviews at various departments and public entities 1 15 R 180 405.00

Resources for (IAU) forensic Investigation 1 120 R 851 887.80

AUDIT on SCM Management @ the DEPT of agriculture 1 40 R 304 152.00

Audit on Asset Management @ DEPT of Education 1 20 R 109 440.00

Audit on Records Management @ DEPT of education 1 20 R 109 440.00

Audit on operation Hlasela @ dept of community safety and liaison 1 240 R 2 675 789.00

Forensic Investigation: alleged irregularities relating to service providers @ UMzinyathi district municipality 1 50 R 507 619.20

Internal audit and audit committee performance evaluation for delegated municipalities 1 160 R 967 255.23

Audit on performance information on DEPT of cooperative Governance & traditional Affairs 1 15 R 114 000.00

Audit on Supply Chain Management: Trade and Investment KZN 1 20 R 132 240.00

Request for appropriately qualified & experienced staff to undertake internal audit @ Mjindi farming SCM & human resources management & development 1 45 R 401 280.00

To conduct an Audit in Year Monitoring @ the KZN Provincial Treasury 1 40 R 273 600.00

Audit on Supply Chain Management @ the DEPT of Economic Development & Tourism 1 20 R 173 280.00

A Secondment of resources to perform review IT strategy @ various departments 1 40 R 310 080.00

Audit on Human Resource Management Royal household Trust 1 15 R 27 360.00

Audit on Performance Information- Royal household Trust 1 20 R 95 760.00

Forensic investigation of alleged irregularities @ KZN Depart Of Health relating to SCM care professionals 1 200 R 1 612 142.40

Resources for IAU For Forensic Investigation:DEPT Of Community Safety & Liaison 1 35 R 570 399.00




Lack of Capacity for forensic Investigation Internal audit 1 40 R 898 741.80

Audit Review of key financial control department of Transport PHASE 2 1 25 R 310 080.00

Audit Review of Key Financial control department of Social development PHASE 1 1 25 R 310 080.00

Secondment of Resources for the audit of performance information of Trade and Investment in KZN 1 20 R 116 000.00

Secondment of resources to perform review of I.T Strategy @ various department 1 40 R 310 080.00

Forensic investigation internal Audit 1 200 R 800 314.00

IT application control reviews at various departments and public entities 1 20 R 155 040.00

Audit at one home one garden at Department of Agriculture and environmental affairs 1 215 R 2 736 712.50

Lack of Capacity for forensic Investigation 1 230 R 3 639 126.81

Audit Human Resource Management @ KZN Provincial Treasury 1 15 R 68 400.00

Audit Human Resource Management @ KZN Sharks Board 1 30 R 161 880.00

Audit Human Resource Management @ KZN Dept of Economic Development & Tourism 1 15 R 68 400.00

Audit on SCM of Department of Human Settlement 1 30 R 145 920.00

Audit on Performance Information @ DEPT of Social development 1 40 R 200 640.00

Audit on Asset Management @ DEPT of Social development 1 40 R 200 640.00

Audit on Performance information @ the dept. of Economic development 1 15 R 54 720.00

Resources for audit @ department of transport 1 20 R 82 080.00

Resources To Conduct Audit on Performance Information 1 20 R 82 080.00

To Conduct Audit Assets Management DEPT of sport and Recreation 1 20 R 109 440.00

Forensic accounting services is required to attend a DC enquiry 1 10 R 11 596.00

Resources to the seconded to dept of Health and Education 1 40 R 554 496.00

Business process mapping for the revenue fund 1 30 R 347 130.00 Application Controls Review of the Legit-Mate System for dept of Transport 1 35 R 335 600.00




External Service Providers Secondment For Value IT analysis For the Dept of Health 1 25 R 310 080.00

Forensic Services for KZN Provincial Treasury 1 20 R 296 400.00

Evaluation of the effectiveness of Internal Audit units and Audit committees @ KZN Municipalities 1 80 R 957 068.00

Audit on Human Resource Management Royal household Trust 1 20 R 68 400.00

Forensic services for KZN Provincial Treasury: DEPT of agriculture and Environmental affairs 1 40 R 446 904.50

Resources needed to conduct an audit on SCM @ DEPT of Public Works 1 30 R 228 729.60

Resources to perform review of IT strategy @ various departments 1 45 R 620 160.00

Forensic investigation @ UMkhanyakude District Municipality 1 50 R 816 726.00

Performance of risk based internal audit project at RBIDZ 1 20 R 82 080.00

Audit on Performance Information at RHH and RHT 1 25 R 109 440.00

Audit on performance information at Department of Agriculture and Environmental Affairs 1 20 R 82 080.00

Resources needed to conduct an audit on transfer payments @ dept of sports and recreation 1 20 R 140 448.00

Audit on movable assets Learner Transport, SCM and PI @ the department of Transport 1 40 R 465 120.00

Audit on AG follow- up @ the DEPT of Education 1 20 R 109 440.00

Audit on transfer Payments @ the DEPT of Education 1 35 R 401 280.00

Audit on Fleet Management at Department of Education 1 15 R 109 440.00

Audit on Special Schools-Learning Barriers @ the DEPT of Education 1 40 R 451 440.00

Audit on Supply Chain Management @ DEPT of Education 1 35 R 401 280.00

Audit on human Resource Management @ the DEPT Of Education 1 15 R 109 440.00

Audit on Performance information @ the DEPT of Education 1 25 R 401 280.00

Forensic Investigation alleged irregularities relating to information technology & SCM systems: Vulamehlo Local Municipality 1 45 R 960 592.50

Audit Review of key financial control- Office of the Premier 1 20 R 150 480.00

Audit Review of key financial controls dept of economic development 1 20 R 150 480.00




Forensic Investigation: alleged irregularities @KZN dept of Rural development and land Reform: Payment of the Mangethe land claim to the Bhekafana community trust 1 45 R 905 410.80

Forensic Investigation 1 15 R 194 731.95


Resources for Contractor Performance Management 1 15 R 82 000.00

Forensic investigation into alleged irregularities at KZN DoE for the provision of services relating to borehole drilling and supply of water to schools in UMzimkhulu 1 25 R 450 186.00

IT audit for general controls surrounding the financial and performance management systems 1 15 R 150 708.00

Secondment of Resources for the Review of IT Strategy documents 1 45 R 930 240.00

Resource needed for the Audit of application controls for Depart of Education 1 10 R 116 280.00 Audit on SHEQ- Quality Management Richards bay Industrial development 1 20 R 232 560.00

Resources for Audit on property Management inclusive of housing fund on dept of Human Settlement 1 25 R 656 640.00 Resources audit performances information at the DEPT of Human Settlement 1 20 R 200 640.00

Resources for Audit on Supply Chain Management at the DEPT of Human Settlement 1 20 R 200 640.00

Resources for Audit on transfer payments at DEPT of human settlement 1 20 R 200 640.00

Audit on Network Security Review @ the DEPT of Public Works 1 25 R 306 634.00

Virtual Private network security review @ KZN Provincial Treasury 1 15 R 187 167.00

Secondment of resources to perform review of I.T Strategy @ various department 1 30 R 310 080.00

Review of the Referral system @ DEPT of Health 1 120 R 5 881 824.30

Forensic investigation into various allegation at Ezemvelo KZN Wildlife: FR 2013 1 220 R 1 090 843.00




Forensic investigation into the transfer payment made to non profit organisations by the KZN Department of Social Development, Phase 1:FR/2013 1 160 R 1 358 082.00

Audit on HRM (OTP) 1 20 R 184 680.00

Forensic investigation 1 30 R 260 648.00 Investigation into alleged regular/irregular cancellation of bid ZNT M00526W 1 15 R 89 490.00



Forensic investigation Internal Audit of KZN DoT 1 140 R 4 966 746.00

Audit on performance information- Human Settlement 1 15 R 150 480.00

Audit on performance information @ Amafa 1 15 R 68 400.00

Audit on research and compliance audit at Amafa 1 15 R 68 400.00

Audit @ dept of Human Settlement 1 20 R 123 120.00

Conduct Performance audit on Infrastructure development, DEPT of Education, Social Development and Arts and Culture 1 140 R 5 982 955.00

Audit Review of key financial control department of Community Safety PHASE 2 1 20 R 150 480.00

Audit Review of Key Financial control department of Human settlement for PHASE 1 1 20 R 150 480.00

Development of training material & facilitation of training in all provincial departments 1 40 R 381 216.00 Resource needed to conduct an audit on financial management @ KZN Sharks Board 1 15 R 68 400.00

Investigation of allegations of fraud & corruption related to prepaid electricity: Kwadukuza Local Municipality 1 25 R 245 784.00

Investigation of allegations of irregular payments @ Sisonke district Municipality relating to payments 1 25 R 433 884.00

Investigation into alleged irregular conduct into awarding of a tender - UGu Municipality Regional Bulk Water Scheme 1 45 R 797 954.40




Audit of disaster management and occupational health and safety at the department of Humana Settlement 1 20 R 243 504.00

Risk Based Audits @ Richards Bay Industrial Development 1 225 R 1 475 160.00

Forensic Investigation: ILembe district Municipality 1 200 R 1 071 075.60

Forensic Investigation: UGu District Municipality 1 200 R 984 618.00

Forensic Investigation Into alleged irregularities @ Dannhauser Local Municipality 1 50 R 612 983.70

Forensic Investigation Into alleged irregularities @ UThukela district Municipality 1 35 R 590 360.40

Forensic investigation 1 140 R 4 382 098.00

Conduct an Audit on Early Childhood Development Programme @ dept of Education 1 60 R 401 280.00

Review of application controls and security reviews of the biometric access control management system 1 70 R 345 990.00

Resources for audit on performance information at dept. of Health 1 50 R 300 960.00

Audit on SCM @ the DEPT of Arts and Culture 1 60 R 200 640.00

Audit on Transfer Payments @ the DEPT Arts and Culture 1 65 R 200 640.00

To conduct an audit AG follow up @ department of sport & Recreation 1 40 R 109 440.00 To conduct an audit on Transfer payment @ the dept. of sports & recreation 1 45 R 250 800.00 Conduct an Audit on Supply Chain Management @ the dept. of sport & Recreation 1 20 R 68 400.00

Audit on performance information @ the dept. of Sports & Recreation 1 50 R 250 800.00

Appointment of External service providers for performance of Internal audits @ the KZN Provincial Treasury 1 30 R 91 200.00

Audit on transfer payments @ DEPT of Health 1 40 R 136 800.00

Audit on Asset Management @ DEPT of Health 1 45 R 273 600.00

Audit on performance INFO: Trade and Investment KZN 1 20 R 36 000.00

Audit on supply chain management DEPT OF COGTA 1 25 R 132 240.00

Addendum- Professional Forensic investigation services: Alleged irregularities pertaining to UMzimkhulu Project: Sisonke District 1 50 R 573 552.00




Municipality

Professional Forensic Investigation : Alleged irregularities pertaining to various project KZNDEDT 1 230 R 3 903 702.00

Investigation on fraud and corruption relating to information technology solution project in the Office of the Premier KZN 1 160 R 639 360.00

Audit on research and compliance audit at Amafa 1 40 R 82 080.00

Audit on tourism development Audit at KZN Tourism 1 20 R 104 880.00

forensic investigation 1 30 R 121 136.40

SCM Audit @ KZN Natal-Liquor Authority Panel 1 25 R 145 920.00

Audit on AG follow- up KZN Liquor authority 1 20 R 109 440.00

Audit on review of key financial controls @ KZN Liquor authority 1 20 R 109 440.00

Audit on Performance information @ KZN Liquor authority 1 20 R 109 440.00

Audit on Inspection & compliance @ KZN Liquor authority 1 25 R 145 920.00 Audit Review of KEY Financial controls @ the DEPT of Education PHASE 1 1 30 R 310 080.00 Audit Review of KEY Financial controls @ the DEPT of Agriculture PHASE 2 1 30 R 310 080.00

To perform quality assurance on internal audit and audit committee performance evaluation 1 45 R 993 373.92

Resources needed to conduct audits an interim financial statements 1 40 R 460 560.00

Audit on administrative management audit @ KZN Liquor Authority 1 20 R 150 480.00

AFS Review for KZN Department and public entities. 1 25 R 528 960.00

Perform a Teammate upgrade, customization and refresher training 1 5 R 101 124.84

TeamMate annual maintenance charge 1 1 R 244 447.81



MSP-Secondment of Resource to KZN Provincial Treasury 1 46 R 232 560.00

Municipal Support Program -Review of Value added Tax (VAT) Returns and Processes 1 48 R 280 000.00




Municipal support program -VAT Review (amounts Incl. VAT and disbursements UMtshezi and Municipality 1 48 R 280 000.00

MSP Review of value added TAX (VAT) 1 48 R 280 000.00

Municipal Support Program -UGU district Municipality 1 48 R 280 000.00

Municipal support program-VAT Review :Newcastle Municipality 1 48 R 280 000.00

Municipal support program-VAT UMgungundlovu 1 58 R 280 000.00

MSP-Secondment of resource to KZN Provincial Treasury 1 66 R 232 560.00

Cash Flow Management- UGu District Municipality 6 50 R 850 000.00

Cash Flow Management- UGu District Municipality 3 40 R 400 000.00

Cash Flow Management- Sisonke District Municipality 3 40 R 400 000.00

MSP Control Enhancement-UMzinyathi District Municipality 6 50 R 850 000.00

MSP Control Enhancement-Sisonke District Municipality 6 50 R 850 000.00

MSP Control Enhancement-Greater Kokstad Municipality 6 50 R 850 000.00

MSP: Internal control Enhancement Richmond municipality 6 35 R 850 000.00

MSP-Indaka 6 48 R 850 000.00

Cash flow management- Greater Kokstad Municipality 3 40 R 280 000.00

Municipal Finance Support Mbalenhle E Khubone @ 300 per hour 1 121 R 355 680.00


Municipal support program (MSP)-Secondment of Resource to KZN Provincial Treasury Municipal finance 1 123 R 439 401.60

Municipal Support program secondment of Resource to KZN Provincial treasury (MFU) 1 104 R 312 998.40


Cash Flow Management- eDumbe Municipality 7 54 R 400 000.00

MSP-Secondment of resource to KZN Provincial Treasury 1 74 R 232 560.00 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 1 116 R 439 401.60

MSP-Review of value added Tax (VAT) Returns and Processes 5 48 R 280 000.00





Municipal Support program secondment of Resource to KZN Provincial treasury (MFU) 7 104 R 312 998.40

Cash flow management- AbaQulusi Municipality 7 45 R 280 000.00

Internal Control enhancement- eDumbe Municipality 12 57 R 850 000.00

Internal control enhancement- Jozini Municipality 12 63 R 850 000.00

Internal Control Enhancement-Abaqulusi Municipality 12 57 R 850 000.00



Internal control enhancement- Hlabisa Municipality 12 68 R 850 000.00

Internal control enhancement- Umhlabuyalingana Municipality 12 55 R 850 000.00 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 1 133 R 439 401.60

MSP-Secondment of resource to Mtubatuba Municipality 2 67 R 907 394.40


Cash flow management- Greater Kokstad Municipality 1 40 R 120 000.00

Cash flow management- AbaQulusi Municipality R 120 000.00

Cash flow management- Hlabisa Municipality 2 24 R 120 000.00

Cash Flow Management-Mtubatuba Municipality R 230 682.00

Cash Flow Management-Big 5 False Bay Municipality 4 59 R 406 296.00

Cash flow management-Hlabisa Municipality 2 30 R 400 000.00 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 2 265 R 878 803.20

Municipal support programme secondment of resource to KZN Provincial Treasury 2 104 R 625 996.80



Education Capped Leave Validation Project 2013/14 1 73 R 308 415.53

Recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 1 156 R 997 500.00

Dept of education capped leave validation project 1 120 R 357 280.00

GRAP training programme 4 114.5 R 1 100 000.00




Resource for KZN Provincial Treasury GRAP Training 4 250 R 598 500.00

Resource on the Dept AFS Projects KZN Treasury 3 46 R 448 875.00

Assistance with the Department of Health Movable Assets Register (Extension of contract 2013/2014) 1 200 R 1 258 560.00

Irregular Expenditure Project 1 100 R 344 000.00

Department of Health year end processes verification project: 2012/2013 1 52 R 189 696.00

Resource for Municipal Debt Project-2013/14 financial year 1 127.5 R 534 888.00

recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 2013/2014 1 156 R 997 500.00

Resource on DOE capped leave validation project 2013/14 FY- Phase 3 2 265 R 903 800.00


Reconciliation of accommodation & travel expenses 1 25 R 92 000.00

Resource on the department of public works Immovable assets 2014/15 financial year 3 276 R 1 695 607.50

Movable assets project-Dept of Public works 2 175 R 740 110.00

AFS preparation for Endumeni Municipality 2012/13 2 97.5 R 495 900.00

KZN Department of Health year end processes verification project: 2012/12 financial year 1 58.5 R 23 712.00

Resource on the AFS preparation for Umngeni Municipality 1 37.5 R 150 000.00

Resource on Municipal DEBT Project:2013/14 Financial Year 1 127.5 R 534 888.00

Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 1 150 R 957 600.00



Preparation of AFS and updating the assets register for Endumeni Municipality 1 45 R 184 680.00

Department of Health year end processes verification project: 2012/2013 R 189 696.00

Education Capped Leave Validation 1 69 R 284 284.00

Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 2013/2014 2 312.5 R 1 852 500.00




Review of the internal control functions @ the department of health and education 3 51 R 304 608.00



Resource to conduct the review of the annual financial (Umhlabuyalingana& UMkhanyakude Municipality) 3 40 R 416 000.00

Resource on the department of public works Immovable assets 2014/15 financial year 1 100 R 387 600.00


Irregular Expenditure Project 2 200 R 1 073 600.00

Public Works for Immovable Assets 2 175 R 1 089 270.00

Resources on DEPT of education capped leave validation project 2013/14 3 219 R 1 118 744.38

Resources on the Review of the annual Financial Statements and technical support in identified municipalities:2012/13 financial year 1 30 R 312 000.00

Resources on DEPT of health Movable assets project:2013/14 financial 1 30 R 106 250.00

Recruitment of resources from the Financial management panel for the assistance with the department of health movable asset register 1 156 R 570 000.00

Investigation @ department of health by McCord Hospital 21 R 3 855 000.00

Conditional grant project 60 R 331 056.00



Resource to Conduct the review of AFS & Technical support:2012/13 3 187.5 R 650 000.00


Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 3 155.25 R 3 233 635.00



KZN Department of Health year end processes verification project: 2012/12 financial year 3 174 R 117 819.00





Resource to conduct the review of the annual financial (Ingwe, Kwadukuza&Ntambanana Municipality) 1 45 R 504 000.00

Education leave validation project 2013/14 4 286.5 R -

Recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 1 156 R 570 000.00

Resource on DOE capped leave validation project 2013/14 FY- Phase 3 4 322.5 R 1 545 480.00

The KZN department of education capped leave validation project 2013/2014 financial year -Phase 3 5 407.5 R 351 320.00

AFS preparation and updating asset register Umgeni municipality 2 203 R 1 138 176.00

Movable assets project-Dept of Public works 1 87.5 R 460 845.00


Resource for Municipal Debt Project-2013/14 financial year 2 235 R 1 549 602.00


Recruitment of resources from the financial Management Panel for the assistance with the department of Health movable asset register 4 625 R 2 827 200.00

Resource on the Dept. of Education Capped leave project 2 140 R 596 904.00



AFS preparation for Endumeni Municipality 2012/13 (Extension of contract 2013/2014) 1 65 R 681 720.00

Investigation @ Depart of Health by McCord hospital 1 21 R 3 855 000.00 Resource on the department of Sport & Recreation UMgungundlovu Academy of Sport Verification project 1 variation R 175 000.00

Ndumo Regeneration project and programme management support 3 332 R 2 923 800.00 Ndumo Regeneration project 2 120 R 1 056 000.00 Municipal Infrastructure Crack Team Deployment 2 81 R 612 000.00

Deployment of resources assist in problematic projects :Education 1 19 R 142 200.00 Crack team- Municipal Finance Support 1 34 R 244 800.00 Municipal Infrastructure Crack Team Deployment 1 148 R 1 529 150.00




Deployment: Department of Education and COGTA 1 30 R 216 064.00 Improvement of Municipal service Delivery and improved planning with Nongoma Municipality 1 40 R 288 000.00 Crack team- Nongoma Municipality extension 1 60 R 432 000.00 Resources to assist Ndumo Social Facilitation: KZN 1 112 R 987 800.00 Crack team- To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 7 380 R 3 045 000.00 Crack team- PPP Unit Assistant 1 60 R 432 000.00

Resources for infrastructure asset evaluation and maintenance in Ezemvelo KZN wildlife 1 108 R 2 484 000.00

Improvement of Municipal service Delivery and improved planning 2 58 R 951 360.00

Improvement of Municipal service Delivery and improved planning 1 28 R 205 600.00 Support for the department of Human Settlement 5 300 R 1 776 000.00 To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 1 60 R 1 200 000.00 Crack team- Municipal Finance Support 1 106 R 1 672 200.00

Crack Team-Public works Final account 1 40 R 288 000.00

Deployment of resources assist in problematic projects :Education 2 39.5 R 284 400.00 Support for the department of Human Settlement 1 40 R 288 000.00

Undertaking of needs analysis-KZN Department of Education school and offices accommodation 1 40 R 307591.09 Crack team- Department of Agriculture 2 80 R 512 000.00 Crack team deployed to assist McCord’s Hospital 4 80 R 576 000.00 To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 1 50 R 480 000.00 Assist the Provincial Treasury with the roll out of Contract Management Services 225 R 1 000 278.18 Contract Management pilot project 7 225 R 1 566 399.00 To assist the Provincial Treasury with the roll out of contract management services 6 225 R 1 000 278.18 Phase -3 Contract Management, Pilot Project 5 150 R 1 312 781.70 Secondment of Temporary staff @ the department of Education 2 126 R 587 480.00 Secondment of resources to support the department of agriculture 1 123 R 3 597 440.00




To assist the Provincial Treasury with the roll out of contract management services 6 230 R 1 669 487.82 Contract Management pilot project 6 338 R 1 494 642.60 Additional as part of the MSP Program for support in SCM in UThukela District Municipality 1 63 R 547 728.00 To assist the Provincial Treasury with the roll out of contract management services 6 225 R 1 000 278.18 Phase -3 Contract Management, Pilot Project 6 365 R 1 874 837.04 Assist the Provincial Treasury with roll out of contract Management For DEDT, OTP & Royal household 6 223 R 988 004.66 Contract Management pilot project 6 350 R 1 566 399.00 Appointment of a panel of service providers to assist the Provincial Treasury with the roll-out of Contract Management Services 6 225 R 1 000 278.18 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 1 17 R 193 600.00 Deployment of temporary @ the KZN department of education 1 6 R 264 480.00 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 2 17 R 96 800.00 Resources to be deployed @ the dept. of UMtshezi Municipality 1 123 R 807 576.00 To assist the Provincial Treasury with the roll out of contract management services 6 225 R 1 000 278.18 Contract Management pilot project 6 350 R 1 822 877.10 Facilitate the Provision of Mentorship to Tribunal Members, Review Tribunal decision and ensuring quality control 1 126 R 1 966 640.00 Secondment of Temporary staff @ the department of Education 7 126 R 2 271 006.00 To assist the Provincial Treasury with the roll out of contract management services 6 225 R 1 000 278.18 Setting up of MBAT throughout KZN 1 84 R 1 256 583.00 Facilitate the setting up of Municipal BID Complaint Tribunals in all district in KZN 1 365 R 5 034 317.11 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 1 10 R 96 800.00 Resources to be deployed @ UMkhanyakude Municipality 1 123 R 1 295 632.80 To assist the Provincial Treasury with the roll out of contract management services 6 208 R 902 089.98 Assist the Provincial Treasury with the roll out of Contract Management 6 225 R 1 000 278.18




Services

Resources to be deployed @ UGU district Municipality to provide assistance and support 1 123 R 863 755.00 Deployment of SCM Resources to the department of education 3 126 R 731 880.00 BBBEE verification exercise PHASE1 10 63 R 675 885.00 BBBEE verification exercise PHASE 2 10 168 R 3 519 180.00 Assist the provincial treasury with roll out of contract Management For the dept. of health 11 225 R 1 000 278.18 Assist the Provincial Treasury with the roll out of Contract Management Services for dept of community safety and arts & culture 1 211 R 938 910.56 627 63453.5 R 224 887 386.16

TABLE 13.2 - Analysis of consultants appointments using appropriated funds i.t.o HDIs

Project Title Percentage ownership by HDI groups

Percentage management by

HDI groups

No. Of consulting firms from HDI

groups that work on project

INTERNAL AUDIT

Forensic investigation into the award of the IT contract @ KZN Provincial Treasury 100 100 1

Forensic Investigation into the high fuel consumption fuel @ Dannhauser Municipality 100 100 1

Audit on Public Entities support-Department of Economic development & Tourism 100 100 1

Performance Information and review of consolidated financial statements 2013/2014 KZN Provincial treasury 100 100 1

Performance information @ KZN Provincial Treasury 100 100 1

Testify at DC Hearing of Department of Transport 100 100 1

Resource for forensic investigation @ ILembe district municipality 100 100 1

Audit on subsistence and travel allowance- COGTA 26.75 26.75 1

Seconded to cluster audit & risk committee 26.75 26.75 1




Consultants for IT Strategy Review 26.75 26.75 1

Resources IT audit of system 26.75 26.75 1

Resources for Compliance Monitoring 26.75 26.75 1

IT application control reviews at various departments and public entities 26.75 26.75 1

Resources for (IAU) forensic Investigation 26.75 26.75 1

AUDIT on SCM Management @ the DEPT of agriculture 26.75 26.75 1

Audit on Asset Management @ DEPT of Education 26.75 26.75 1

Audit on Records Management @ DEPT of education 26.75 26.75 1

Audit on operation Hlasela @ dept of community safety and liaison 26.75 26.75 1

Forensic Investigation: alleged irregularities relating to service providers @ UMzinyathi district municipality 26.75 26.75 1

Internal audit and audit committee performance evaluation for delegated municipalities 26.75 26.75 1

Audit on performance information on DEPT of cooperative Governance & traditional Affairs 26.75 26.75 1

Audit on Supply Chain Management: Trade and Investment KZN 26.75 26.75 1

Request for appropriately qualified & experienced staff to undertake internal audit @ Mjindi farming SCM & human resources management & development 26.75 26.75 1

To conduct an Audit in Year Monitoring @ the KZN Provincial Treasury 26.75 26.75 1

Audit on Supply Chain Management @ the DEPT of Economic Development & Tourism 26.75 26.75 1

A Secondment of resources to perform review IT strategy @ various departments 26.75 26.75 1

Audit on Human Resource Management Royal household Trust 26.75 26.75 1

Audit on Performance Information- Royal household Trust 26.75 26.75 1

Forensic investigation of alleged irregularities @ KZN Depart Of Health relating to SCM care professionals 26.75 26.75 1

Resources for IAU For Forensic Investigation:DEPT Of Community Safety & Liaison 30.75 30.75 1




Lack of Capacity for forensic Investigation Internal audit 30.75 30.75 1

Audit Review of key financial control department of Transport PHASE 2 30.75 30.75 1

Audit Review of Key Financial control department of Social development PHASE 1 30.75 30.75 1

Secondment of Resources for the audit of performance information of Trade and Investment in KZN 30.75 30.75 1

Secondment of resources to perform review of I.T Strategy @ various department 30.75 30.75 1

Forensic investigation internal Audit 30.75 30.75 1

IT application control reviews at various departments and public entities 30.75 30.75 1

Audit at one home one garden at Department of Agriculture and environmental affairs 30.75 30.75 1

Lack of Capacity for forensic Investigation 100 100 1

Audit Human Resource Management @ KZN Provincial Treasury 100 100 1

Audit Human Resource Management @ KZN Sharks Board 100 100 1

Audit Human Resource Management @ KZN Dept of Economic Development & Tourism 100 100 1

Audit on SCM of Department of Human Settlement 100 100 1

Audit on Performance Information @ DEPT of Social development 100 100 1

Audit on Asset Management @ DEPT of Social development 100 100 1

Audit on Performance information @ the dept. of Economic development 100 100 1

Resources for audit @ department of transport 100 100 1

Resources To Conduct Audit on Performance Information 100 100 1

To Conduct Audit Assets Management DEPT of sport and Recreation 100 100 1

Forensic accounting services is required to attend a DC enquiry 1

Resources to the seconded to dept of Health and Education 25.1 25.1 1

Business process mapping for the revenue fund 25.1 25.1 1 Application Controls Review of the Legit-Mate System for dept of Transport 25.1 25.1 1




External Service Providers Secondment For Value IT analysis For the Dept of Health 25.1 25.1 1

Forensic Services for KZN Provincial Treasury 25.1 25.1 1

Evaluation of the effectiveness of Internal Audit units and Audit committees @ KZN Municipalities 25.1 25.1 1

Audit on Human Resource Management Royal household Trust 25.1 25.1 1

Forensic services for KZN Provincial Treasury: DEPT of agriculture and Environmental affairs 25.1 25.1 1

Resources needed to conduct an audit on SCM @ DEPT of Public Works 25.1 25.1 1

Resources to perform review of IT strategy @ various departments 25.1 25.1 1

Forensic investigation @ UMkhanyakude District Municipality 25.1 25.1 1

Performance of risk based internal audit project at RBIDZ 25.1 25.1 1

Audit on Performance Information at RHH and RHT 100 100 1

Audit on performance information at Department of Agriculture and Environmental Affairs 100 100 1

Resources needed to conduct an audit on transfer payments @ dept of sports and recreation 100 100 1

Audit on movable assets Learner Transport, SCM and PI @ the department of Transport 100 100 1

Audit on AG follow- up @ the DEPT of Education 100 100 1

Audit on transfer Payments @ the DEPT of Education 100 100 1

Audit on Fleet Management at Department of Education 100 100 1

Audit on Special Schools-Learning Barriers @ the DEPT of Education 100 100 1

Audit on Supply Chain Management @ DEPT of Education 100 100 1

Audit on human Resource Management @ the DEPT Of Education 100 100 1

Audit on Performance information @ the DEPT of Education 100 100 1

Forensic Investigation alleged irregularities relating to information technology & SCM systems:Vulamehlo Local Municipality 100 100 1

Audit Review of key financial control- Office of the Premier 100 100 1

Audit Review of key financial controls dept of economic development 100 100 1




Forensic Investigation: alleged irregularities @KZN dept of Rural development and land Reform: Payment of the Mangethe land claim to the Bhekafana community trust 100 100 1

Forensic Investigation 100 100 1


Resources for Contractor Performance Management 100 100 1

Forensic investigation into alleged irregularities at KZN DoE for the provision of services relating to borehole drilling and supply of water to schools in UMzimkhulu 100 100 1

IT audit for general controls surrounding the financial and performance management systems 23 23 1

Secondment of Resources for the Review of IT Strategy documents 23 23 1

Resource needed for the Audit of application controls for Depart of Education 23 23 1 Audit on SHEQ- Quality Management Richards bay Industrial development 23 23 1

Resources for Audit on property Management inclusive of housing fund on dept of Human Settlement 23 23 1 Resources audit performances information at the DEPT of Human Settlement 23 23 1

Resources for Audit on Supply Chain Management at the DEPT of Human Settlement 23 23 1

Resources for Audit on transfer payments at DEPT of human settlement 23 23 1

Audit on Network Security Review @ the DEPT of Public Works 23 23 1

Virtual Private network security review @ KZN Provincial Treasury 23 23 1

Secondment of resources to perform review of I.T Strategy @ various department 23 23 1

Review of the Referral system @ DEPT of Health 23 23 1

Forensic investigation into various allegation at Ezemvelo KZN Wildlife: FR 2013 23 23 1




Forensic investigation into the transfer payment made to non profit organisations by the KZN Department of Social Development, Phase 1:FR/2013 23 23 1

Audit on HRM (OTP) 100 100 1

forensic investigation 100 100 1 Investigation into alleged regular/irregular cancellation of bid ZNT M00526W 100 100 1



Forensic investigation Internal Audit of KZN DoT 100 100 1

Audit on performance information- Human Settlement 100 100 1

Audit on performance information @ Amafa 100 100 1

Audit on research and compliance audit at Amafa 100 100 1

Audit @ dept of Human Settlement 100 100 1

Conduct Performance audit on Infrastructure development, DEPT. of Education, Social Development and Arts and Culture 100 100 1

Audit Review of key financial control department of Community Safety PHASE 2 100 100 1

Audit Review of Key Financial control department of Human settlement for PHASE 1 100 100 1

Development of training material & facilitation of training in all provincial departments 100 100 1 Resource needed to conduct an audit on financial management @ KZN Sharks Board 100 100 1

Investigation of allegations of fraud & corruption related to prepaid electricity: Kwadukuza Local Municipality 100 100 1

Investigation of allegations of irregular payments @ Sisonke district Municipality relating to payments 100 100 1

Investigation into alleged irregular conduct into awarding of a tender - UGu Municipality Regional Bulk Water Scheme 100 100 1




Audit of disaster management and occupational health and safety at the department of Humana Settlement 100 100 1

Risk Based Audits @ Richards Bay Industrial Development 100 100 1

Forensic Investigation: ILembe district Municipality 100 100 1

Forensic Investigation: UGu District Municipality 100 100 1

Forensic Investigation Into alleged irregularities @ Dannhauser Local Municipality 100 100 1

Forensic Investigation Into alleged irregularities @ UThukela district Municipality 100 100 1

Forensic investigation 100 100 1

Conduct an Audit on Early Childhood Development Programme @ dept of Education 75.2 75.2 1

Review of application controls and security reviews of the biometric access control management system 75.2 75.2 1

Resources for audit on performance information at dept. of Health 75.2 75.2 1

Audit on SCM @ the DEPT of Arts and Culture 75.2 75.2 1

Audit on Transfer Payments @ the DEPT Arts and Culture 75.2 75.2 1

To conduct an audit AG follow up @ department of sport & Recreation 75.2 75.2 1 To conduct an audit on Transfer payment @ the dept. of sports & recreation 75.2 75.2 1 Conduct an Audit on Supply Chain Management @ the dept. of sport & Recreation 75.2 75.2 1

Audit on performance information @ the dept. of Sports & Recreation 75.2 75.2 1

Appointment of External service providers for performance of Internal audits @ the KZN Provincial Treasury 75.2 75.2 1

Audit on transfer payments @ DEPT of Health 75.2 75.2 1

Audit on Asset Management @ DEPT of Health 75.2 75.2 1

Audit on performance INFO: Trade and Investment KZN 75.2 75.2 1

Audit on supply chain management DEPT OF COGTA 75.2 75.2 1

Addendum- Professional Forensic investigation services: Alleged irregularities pertaining to UMzimkhulu Project: Sisonke District 75.2 75.2 1




Municipality

Professional Forensic Investigation : Alleged irregularities pertaining to various project KZNDEDT 75.2 75.2 1

Investigation on fraud and corruption relating to information technology solution project in the Office of the Premier KZN 100 100 1

Audit on research and compliance audit at Amafa 100 100 1

Audit on tourism development Audit at KZN Tourism 100 100 1

forensic investigation 100 100 1

SCM Audit @ KZN Natal-Liquor Authority Panel- 100 100 1

Audit on AG follow- up KZN Liquor authority 100 100 1

Audit on review of key financial controls @ KZN Liquor authority 100 100 1

Audit on Performance information @ KZN Liquor authority 100 100 1

Audit on Inspection & compliance @ KZN Liquor authority 100 100 1 Audit Review of KEY Financial controls @ the DEPT of Education PHASE 1 100 100 1 Audit Review of KEY Financial controls @ the DEPT of Agriculture PHASE 2 100 100 1

To perform quality assurance on internal audit and audit committee performance evaluation 100 100 1

Resources needed to conduct audits an interim financial statements 100 100 1

Audit on administrative management audit @ KZN Liquor Authority 100 100 1

AFS Review for KZN Department and public entities. 100 100 1



PEFORMANCE AUDIT ON TRAVEL & TRAVEL SUBSISTENCE CLAIMS CONDUCTED KZN 100 100 1

MSP-Secondment of Resource to KZN Provincial Treasury 100 100 1

Municipal Support Program -Review of Value added Tax (VAT) Returns and Processes 100 100 1




Municipal support program -VAT Review (amounts Incl. VAT and disbursements UMtshezi and Municipality 100 100 1

MSP Review of value added TAX (VAT) 1

Municipal Support Program -UGU district Municipality 1

Internal control enhancement- Mtubatuba Municipality 26.75 26.75 1

Municipal support program-VAT Review :Newcastle Municipality 26.75 26.75 1

Municipal support program-VAT UMgungundlovu 26.75 26.75 1

MSP-Secondment of resource to KZN Provincial Treasury 26.75 26.75 1

Cash Flow Management- UGu District Municipality 30.75 30.75 1

Cash Flow Management- UGu District Municipality 30.75 30.75 1

Cash Flow Management- Sisonke District Municipality 30.75 30.75 1

MSP Control Enhancement-UMzinyathi District Municipality 30.75 30.75 1

MSP Control Enhancement-Sisonke District Municipality 30.75 30.75 1

MSP Control Enhancement-Greater Kokstad Municipality 30.75 30.75 1

MSP: Internal control Enhancement Richmond municipality 30.75 30.75 1

MSP-Indaka 30.75 30.75 1

Cash flow management- Greater Kokstad Municipality 30.75 30.75 1

Municipal Finance Support Mbalenhle E Khubone @ 300 per hour 100 100 1

MSP-Secondment of resource to KZN Provincial Treasury 100 100 1

Municipal support program (MSP)-Secondment of Resource to KZN Provincial Treasury Municipal finance 100 100 1

Municipal Support program secondment of Resource to KZN Provincial treasury (MFU) 100 100 1


Cash Flow Management- eDumbe Municipality 25.1 25.1 1

MSP-Secondment of resource to KZN Provincial Treasury 25.1 25.1 1 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 25.1 25.1 1

MSP-Review of value added Tax (VAT) Returns and Processes 25.1 25.1 1

MSP-Review of value added Tax (VAT) Returns and Processes 25.1 25.1 1




Municipal Support program secondment of Resource to KZN Provincial treasury (MFU) 25.1 25.1 1

Cash flow management- AbaQulusi Municipality 25.1 25.1 1

Internal Control enhancement- eDumbe Municipality 23 23 1

Internal control enhancement- Jozini Municipality 23 23 1

Internal Control Enhancement-Abaqulusi Municipality 23 23 1

MSP-Review of value added Tax (VAT) Returns and Processes 23 23 1

MSP-Review of value added Tax (VAT) Returns and Processes 23 23 1

Internal control enhancement- Hlabisa Municipality 23 23 1

Internal control enhancement- Umhlabuyalingana Municipality 23 23 1

MSP- secondment of resources at KZN Provincial Treasury 100 100 1 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 100 100 1

MSP-Secondment of resource to Mtubatuba Municipality 100 100 1

Cash flow management- Greater Kokstad Municipality 72.5 72.5 1

Cash flow management- AbaQulusi Municipality 72.5 72.5 1

Cash flow management- Hlabisa Municipality 72.5 72.5 1

Cash Flow Management-Mtubatuba Municipality 100 100 1

Cash Flow Management-Big 5 False Bay Municipality 100 100 1

Cash flow management-Hlabisa Municipality 100 100 1 Resources for KZN Provincial MSP-Secondment of Resources for Municipal 100 100 1

Municipal support programme secondment of resource to KZN Provincial Treasury 100 100 1



Education Capped Leave Validation Project 2013/14 0 0 1

Recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 0 0 1

Dept of education capped leave validation project 0 0 1

GRAP training programme 0 0 1




Resource for KZN Provincial Treasury GRAP Training 0 0 1

Resource on the Dept AFS Projects KZN Treasury 0 0 1

Assistance with the Department of Health Movable Assets Register (Extension of contract 2013/2014) 0 0 1

Irregular Expenditure Project 100 100 1

Department of Health year end processes verification project: 2012/2013 100 100 1

Resource for Municipal Debt Project-2013/14 financial year 100 100 1

recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 2013/2014 100 100 1

Resource on DOE capped leave validation project 2013/14 FY- Phase 3 100 100 1


Reconciliation of accommodation & travel expenses 100 100 1

Resource on the department of public works Immovable assets 2014/15 financial year 100 100 1

Movable assets project-Dept of Public works 100 100 1

AFS preparation for Endumeni Municipality 2012/13 100 100 1

KZN Department of Health year end processes verification project: 2012/12 financial year 100 100 1

Department of Health Project 100 100 1

Resource on the AFS preparation for Umngeni Municipality 100 100 1

Resource on Municipal DEBT Project:2013/14 Financial Year 100 100 1

Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 100 100 1



Preparation of AFS and updating the assets register for Endumeni Municipality 100 100 1


Education Capped Leave Validation 26.75 26.75 1




Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 2013/2014 26.75 26.75 1

Review of the internal control functions @ the department of health and education 26.75 26.75 1

Resource on DOE capped leave validation project 2013/14 FY- Phase 3 26.75 26.75 1

Dept of education capped leave validation project 26.75 26.75 1

Resource to conduct the review of the annual financial (Umhlabuyalingana& UMkhanyakude Municipality) 26.75 26.75 1

Resource on the department of public works Immovable assets 2014/15 financial year 26.75 26.75 1



Public Works for Immovable Assets 100 100 1

Resources on DEPT of education capped leave validation project 2013/14 100 100 1

Resources on the Review of the annual Financial Statements and technical support in identified municipalities:2012/13 financial year 100 100 1

Resources on DEPT of health Movable assets project:2013/14 financial 100 100 1

Recruitment of resources from the Financial management panel for the assistance with the department of health movable asset register 100 100 1

Investigation @ department of health by McCord Hospital 100 100 1

Conditional grant project 100 100 1



Resource to Conduct the review of AFS & Technical support:2012/13 100 100 1


Recruitment of resources from the financial management panel for the assistance with the department of health movable asset register 100 100 1






Resource on the Dept AFS Projects KZN Treasury 100 100 1

KZN Department of Health year end processes verification project: 2012/12 financial year 100 100 1


Resource to conduct the review of the annual financial (Ingwe, Kwadukuza&Ntambanana Municipality) 23 23 1

Education leave validation project 2013/14 23 23 1

Recruitment of resources from the financial management panel for the assistance with the dept. of Health movable asset register 23 23 1


The KZN department of education capped leave validation project 2013/2014 financial year -Phase 3 23 23 1

AFS preparation and updating asset register Umgeni municipality 23 23 1

Movable assets project-Dept of Public works 23 23 1




Recruitment of resources from the financial Management Panel for the assistance with the department of Health movable asset register 100 100 1

Resource on the Dept. of Education Capped leave project 100 100 1



AFS preparation for Endumeni Municipality 2012/13 (Extension of contract 2013/2014) 100 100 1

Investigation @ Depart of Health by McCord hospital 100 100 1 Resource on the department of Sport & Recreation UMgungundlovu Academy of Sport Verification project 100 100 1

Ndumo Regeneration project and programme management support 100 100 1

Ndumo Regeneration project 100 100 1




Municipal Infrastructure Crack Team Deployment 100 100 1

Deployment of resources assist in problematic projects :Education 100 100 1

Crack team- Municipal Finance Support 0 0 1

Municipal Infrastructure Crack Team Deployment 0 0 1

Deployment: Department of Education and COGTA 100 100 1

Crack team- Nongoma Municipality extension 100 100 1

Resources to assist Ndumo Social Facilitation: KZN 100 100 1 Crack team- To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 100 100 1

Crack team- PPP Unit Assistant 0 0 1

Resources for infrastructure asset evaluation and maintenance in Ezemvelo KZN wildlife 0 0 1

Improvement of Municipal service Delivery and improved planning 0 0 1

Improvement of Municipal service Delivery and improved planning 0 0 1

Support for the department of Human Settlement 0 0 1 To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 0 0 1

Crack team- Municipal Finance Support 0 0 1

Crack Team-Public works Final account 0 0 1

Deployment of resources assist in problematic projects :Education 0 0 1

Support for the department of Human Settlement 31.3 31.3 1

Undertaking of needs analysis-KZN Department of Education school and offices accommodation 31.3 31.3 1

Crack team- Department of Agriculture 31.3 31.3 1

Crack team deployed to assist McCord’s Hospital 31.3 31.3 1 To assist municipalities in the delivery of infrastructure for new & existing infrastructure assets within the Province of KZN Natal 2014 34.79 34.79 1 Assist the Provincial Treasury with the roll out of Contract Management Services 100 100 1

Contract Management pilot project 26.75 26.75 1




To assist the Provincial Treasury with the roll out of contract management services 26.75 26.75 1

Phase -3 Contract Management, Pilot Project 100 100 1

Secondment of Temporary staff @ the department of Education 100 100 1

Secondment of resources to support the department of agriculture 100 100 1 To assist the Provincial Treasury with the roll out of contract management services 100 100 1

Contract Management pilot project 100 100 1 Additional as part of the MSP Program for support in SCM in UThukela District Municipality 100 100 1 To assist the Provincial Treasury with the roll out of contract management services 30.75 30.75 1

Phase -3 Contract Management, Pilot Project 100 100 1 Assist the Provincial Treasury with roll out of contract Management For DEDT, OTP & Royal household 100 100 1

Contract Management pilot project 100 100 1 Appointment of a panel of service providers to assist the Provincial Treasury with the roll-out of Contract Management Services 25.1 25.1 1 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 100 100 1

Deployment of temporary @ the KZN department of education 100 100 1 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 100 100 1

Contract Management pilot project 23 23 1

Resources to be deployed @ the dept. of UMtshezi Municipality 23 23 1 To assist the Provincial Treasury with the roll out of contract management services 23 23 1 Facilitate the Provision of Mentorship to Tribunal Members, Review Tribunal decision and ensuring quality control 100 100 1

Secondment of Temporary staff @ the department of Education 100 100 1 To assist the Provincial Treasury with the roll out of contract management services 100 100 1

Setting up of MBAT throughout KZN 100 100 1




Facilitate the setting up of Municipal BID Complaint Tribunals in all district in KZN 100 100 1 Appointment of service providers from panel of experts for assistance with SCM @ Kwa- Dukuza Municipality 100 100 1

Resources to be deployed @ UMkhanyakude Municipality 100 100 1 To assist the Provincial Treasury with the roll out of contract management services 100 100 1 Assist the Provincial Treasury with the roll out of Contract Management Services 25.5 25.5 1

Resources to be deployed @ UGU district Municipality to provide assistance and support 1

Deployment of SCM Resources to the department of education 72.5 72.5 1

BBBEE verification exercise 100 100 1

BBBEE verification exercise PHASE 2 100 100 1 Assist the provincial treasury with roll out of contract Management For the dept. of health 100 100 1 Assist the Provincial Treasury with the roll out of Contract Management Services for dept of community safety and arts & culture 0 0 1

KWAZULU NATAL PROVINCIAL TREASURY: VOTE 6

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014


Appropriation per programme

2013/14 2012/13

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure

Variance Expenditure

as % of

final

appropriation

Final

Appropriation

Actual

Expenditure

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

1. Administration

Current payment 106, 302 (909) 105, 393 91,313 14,080 86.6% 95.221 87,231 Transfers and subsidies 4,093 971 5,064 3,526 1,538 69.6% 12.236 9,005 Payment for capital assets 2,586 2,586 2,072 514 80.1% 1.680 1,669 Payment for financial assets 21 21 21 100.0%

112,981 83 113,064 96,932 16,132 109.137 97,905 2. Fiscal Resource

Management

Current payment 101,707 (203) 101,504 90,509 10,995 89.2% 94,846 76,716 Transfers and subsidies 14 54 68 66 2 97.1% 24 23 Payment for capital assets 620 620 426 194 68.7% 138 131 Payment for financial assets 203 203 203 100.0%

102,341 54 102,395 91,204 11,191 95,008 76,870 3. Financial Management

Current payment 264,480 (192) 264,288 237,359 26,929 89.8% 226,311 207,790 Transfers and subsidies 1,274 (162) 1,112 492 620 44.2% 1,317 555 Payment for capital assets 3,494 3,494 2,944 550 84.3% 3,751 3,749 Payment for financial assets 192 192 192 100.0%

269,248 (162) 269,086 240,987 28,099 231,379 212,094 Subtotal

TOTAL




Appropriation per programme

2013/14 2012/13

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

4. Internal Audit

Current payment 108,729 (1) 108,728 106,710 2,018 98.1% 106,159 92,760 Transfers and subsidies 97 25 122 121 1 99.2% 29 29 Payment for capital assets 730 730 531 199 72.7% 364 352 Payment for financial assets 1 1 1 100.0% 14 13

109,556 25 109,581 107,363 2,218 106,566 93,154 5. Growth and Development

Current payment 20,091 20,091 19,970 121 99.4% 16,282 10,305 Transfers and subsidies 39,754 39,754 21,085 18,669 53.0% 54,863 28,012 Payment for capital assets Payment for financial assets

59,845 59,845 41,055 18,790 71,145 38,317 TOTAL 653,971 653,971 577,541 76,430 88.3% 613,235 518,340




2013/14 2012/13 Final

Appropriation

Actual

Expenditure

Final

Appropriation

Actual

Expenditure

TOTAL (brought forward)

Reconciliation with statement of financial performa nce

ADD

Departmental receipts 49,814 45,343

Aid assistance

Actual amounts per statement of financial performan ce (total revenue) 703,785 658, 578

ADD

Aid assistance

Prior year unauthorised expenditure approved without funding

Actual amounts per statement of financial performan ce (total expenditure) 577,541 518,340




Appropriation per economic classification

2013/14 2012/13

Adjusted Appropriation

Shifting of Funds


Actual Expenditure


as % of final appropriation

Final Appropriation

Actual expenditure

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

Current payments

Compensation of employees 208,333 (6,185) 202,148 185,326 16,822 91.7% 183,479 163,560

Goods and services 390,268 4,880 395,148 360,536 34,612 91.2% 351,040 311,242

Interest and rent on land 2,708 2,708 2,708 4,300

Transfers and subsidies

Provinces and municipalities 39,774 886 40,660 21,982 18,678 54.1% 54,877 28,026

Departmental agencies and accounts 2 2 1 1 50.0%

Households 5,458 5,458 3,306 2,152 60.6% 13,592 9,598

Gifts and donations

Payments for capital assets

Machinery and equipment 7,430 7,430 5,973 1,457 80.4% 5,539 5,507

Intangible assets 394 394

Payments for financial assets 417 417 417 100.0% 14 13

Total 653,971 653,971 577,541 76,430 88.3% 613,235 518,340




2013/14 2012/13

Detail per sub-programme Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure



Final

Appropriation

Actual

expenditure

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

1.1 Office of the MEC

Current payment 26,222 (1,189) 25,033 22,130 2,903 88.4% 21,921 21,902

Transfers and subsidies 733 733 733 100.0%

Payment for capital assets 942 942 602 340 63.9% 780 778

Payment for financial assets

1.2 Head of the Department

Current payment 8,615 (220) 8,395 6,450 1,945 76.8% 7,710 6,722

Transfers and subsidies 8 162 170 170 100.0%


Payment for financial assets 9 9 9 100.0%

1.3 Chief Financial Office

Current payment 24,614 24,614 17,348 7,266 70.5% 17,898 13,296

Transfers and subsidies 7 3 10 10 100.0% 367 361



Total




2013/14 2012/13

Detail per sub-programme Adjusted Appropriation

Shifting of Funds


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

1.4Corporate Services

Current payment 46,851 500 47,351 45,385 1,966 95.8% 47,692 45,311

Transfers and subsidies 4,078 73 4,151 2,613 1,538 62.9% 11,869 8,644

Payment for capital assets 1,360 1,360 1,347 13 99.0% 732 732


Total 112,981 83 113,064 96,932 16,132 85.7% 109,137 97,905




2013/14 2012/13

Economic classification Adjusted Appropriation

Shifting of Funds


Actual Expenditure



Final Appropriation

Actual expenditure

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

Current payments

Compensation of employees 56,386 (483) 55,903 49,660 6,243 88.8% 46,142 43,905

Goods and services 49,916 (426) 49,490 41,653 7,837 84.2% 49,079 43,327

Interest and rent on land

Transfers and subsidies to:

Provinces and municipalities 20 886 906 897 9 99.0% 14 14

Departmental agencies and accounts

2 2 1 1 50.0%

Households 4,073 83 4,156 2,627 1, 529 63.2% 12,222 8,990

Gifts and donations

Payment for capital assets

Machinery and equipment 2,586 2,586 2,073 513 80.2% 1,680 1,669

Intangible assets

Payments for financial assets 21 21 21 100.0%

Total 112,981 83 113,064 96,932 16,132 85.7% 109,137 97,905




2013/14 2012/13

Detail per sub-programme Adjusted Appropriation

Shifting of Funds


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

2.1 Programme Support

Current payment 2,845 2,845 1,767 1,078 62.1% 1,220 751


Payment for capital assets 82 82 58 24 70.7% 6


2.2 Economic Analysis 3,006 38,079 37,505 574 98.5%

Current payment 35,073 2 2 1 1 50.0% 27,458 19,489

Transfers and subsidies 38 35 3 92.1%



2.3 Public Finance 12,663 10,298 2,365 81.3%

Current payment 12,663 10 9 1 90.0% 11,991 9,708


Payment for capital assets 48 31 31


Total




2013/14 2012/13


Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure



Final

Appropriation

Actual

expenditure

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

2.4Municipal Finance

Current payment 51,126 (3,209) 47,917 40,939 6,978 85.4% 54,177 46,768




Total 102,341 54 102,395 91,204 11,191 89.1% 95,008 76,870




2013/14 2012/13


Shifting of Funds


Actual Expenditure



Final Appropriation

Actual expenditure

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

Current payments

Compensation of employees 41,104 41,104 37,038 4,066 90.1% 36,785 30,283




Provinces and municipalities

Households 14 54 68 66 2 97.1% 24 23

Gifts and donations


Machinery and equipment 620 620 425 195 68.5% 138 131

Intangible assets


Total 102,341 54 102,395 91,204 11,191 89.1% 95,008 76,870




2013/14 2012/13


Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure



Final

Appropriation

Actual

expenditure

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

3.1Financial Assets and Liability Management

Current payment 19,756 (4) 19,752 14,853 4,899 75.2% 20,039 14,081

Transfers and subsidies 1,239 (187) 1,052 432 620 41.1% 1,266 506

Payment for capital assets 164 (64) 100 29 71 29.0%


3.2Public, Private Partnerships (PPP’s)

Current payment 7,108 7,108 5,171 1,937 72.7% 3,422 3,184




3.3 Supply Chain Management (SCM)

Current payment 57,182 263 57,445 43,030 14,415 74.9% 51,621 41,436

Transfers and subsidies 33 33 33 100.0% 43 42



Total




2013/14 2012/13


Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure



Final

Appropriation

Actual

expenditure

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

3.4Financial Reporting

Current payment 57,954 (171) 57,783 54,606 3,177 94.5% 32,509 31,536




3.5Norms and Standards

Current payment 4,962 (276) 4,686 3,764 922 80.3% 4,541 3,533




3.6Support and interlinked Financial Systems

Current payment 117,518 (4) 117,514 115,935 1,579 98.7% 114,179 114,020


Payment for capital assets 2,960 2,960 2,543 417 85.9% 3,295 3,295


Total 269,248 (162) 269,086 240,987 28,099 89.6% 231,379 212,094




2013/14 2012/13


Shifting of Funds


Actual Expenditure



Final Appropriation

Actual expenditure

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

Current payments

Compensation of employees 53,945 53,945 49,299 4,646 91.4% 48,482 43,035


Interest and rent on land 2,708 2,708 2,708 4,300



Households 1,274 (162) 1,112 492 620 44.2% 1,317 556

Gifts and donations


Machinery and equipment 3,494 3,494 2,944 550 84.3% 3,357 3,355

Intangible assets 394 394


Total 269,248 (162) 269,086 240,987 28,099 89.6% 231,379 212,094




2013/14 2012/13


Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure



Final

Appropriation

Actual

expenditure

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

4.1 Assurance Services

Current payment 57,033 1,702 58,735 58,608 127 99.8% 59,579 53,715

Transfers and subsidies 35 2 37 36 1 97.3% 29 29


Payment for financial assets 1 1 1 100.0% 14 13

4.2 Risk Management

Current payment 51,696 (1,703) 49,993 48,102 1,891 96.2% 46,580 39,045




Total 109,556 25 109,581 107,363 2,218 98.0% 106,566 93,154




2013/14 2012/13


Shifting of Funds


Actual Expenditure



Final Appropriation

Actual expenditure

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

Current payments

Compensation of employees 56,898 (5,702) 51,196 49,329 1,867 96.4% 52,070 46,337

Goods and services 51,831 5,701 57,532 57,381 151 99.7% 54,089 46,423




Households 97 25 122 121 1 99.2% 29 29

Gifts and donations


Machinery and equipment 730 730 531 199 72.7% 364 352

Intangible assets

Payments for financial assets 1 1 1 100.0% 14 13

Total 109,556 25 109,581 107,363 2,218 98.0% 106,566 93,154




2013/14 2012/13


Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure



Final

Appropriation

Actual

expenditure

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

5.1 Budget Communication

Current payment 7,464 7,464 7,456 8 99.9% 7,094 6,032




5.2Special Infrastructure Projects

Current payment 7,188 2,273

Transfers and subsidies 39,754 39,754 21,085 18,669 53.0% 54,863 28,012



5.3 Strategic Cabinet Initiatives

Current payment




Total




2013/14 2012/13


Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure



Final

Appropriation

Actual

expenditure

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

5.4Special Projects

Current payment 12,627 12,627 12,514 113 99.1% 2,000 2,000




Total 59,845 59,845 41,055 18,790 68.6% 71,145 38,317




2013/14 2012/13


Shifting of Funds


Actual Expenditure



Final Appropriation

Actual expenditure

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

Current payments

Compensation of employees

Goods and services 20,091 20,091 19,970 121 99.4% 16,282 10,305



Provinces and municipalities 39,754 39,754 21,085 18,669 53.0% 54,863 28,012

Households

Gifts and donations


Machinery and equipment

Intangible assets

Payments for financial assets

Total 59,845 59,845 41,055 18,790 68.6% 71,145 38,317


NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2014


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

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

2. Detail of specifically and exclusively appropria ted amounts voted (after Virement): Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement): 4.1 Per programme Final

Appropriation Actual

Expenditure Variance

R’000 Variance as a

% of Final Appropriation

Administration 113,064 96,932 16,132 14,27%

• Programme 1: Administration (under-spending)

- Compensation of employees are as a result of non-filling of funded vacant posts.

- Goods and services are due to costs relating to advertising; legal fees that were anticipated to be paid during 2013/14 financial year; travel and subsistence due to cost cutting measures and delay in the spending on Operation Sukuma Sakhe Project as the funds were only received during the budget adjustment estimates period.

- Transfers to households are as a result of delay in the process of selection of students for the Thuthuka Bursary as the process is not controlled by the Department, as a result only 50% of the budget was spent.

- Machinery and Equipment are as a result of cost cutting measures and delays in staff appointments due to shortage of skills

Fiscal Resource Management 102,395 91,204 11,191 10.93%

• Programme 2: Fiscal Resource Management (under-sp ending)

- Compensation of employees is mainly due to the non-filling of funded vacant posts and difficulty in finding suitably qualified candidates, as well as the fact that a number of key posts such as the Senior General Manager’s remained vacant during the first half of the year and only remained filled for 3 months and became vacant again during the last 3 months before the end of the financial year.

- Goods and Services relates to problems experienced with orders that were issued to some of the service providers to commence work, where the actual deliverables were unsatisfactory and payment was withheld. This poor performance impacted on the issue of subsequent orders, and the slow




processing of invoices.

Financial Management 269,086 240,987 28,099 10.44%

• Programme 3: Financial Management (under-spending )

- Compensation of employees is mainly due to the delays in the filling of budgeted vacant posts.

- Goods and services is as a result of the delayed process for the appointment of service providers for the E-Procurement Tool; delays in the finalisation of the project for Mc Cord Hospital; delays in obtaining dates for the GRAP Training with the Municipalities; Health Asset Project due to the late completion of the project that was only in 31/03/2014; Education Capped leave project and also due to the unused allocation for interest on overdraft attributed to the improvement in the funds available in the Paymaster General Account/IGCC account resulting in the province earning interest as opposed to paying it.

Internal Audit 109,581 107,363 2,218 2,02%

• Programme 4: Internal Audit (savings)

- This programme has spent 98% of its allocated budget. The remaining savings are emanating from compensation of employees.

Growth and Development 59,845 41,055 18,790 31.40%

• Programme 5: Other Development Initiatives (under -spending)

- The under-expenditure is in respect of the development of the Light Industrial Park at Bhongweni as a result of slow process in appointing the service provider for the professional team members, due to the fact that the Municipal Tender Committee was not available over the Christmas Holiday to make appointment of the contractor which resulted in the delays of the commencement of this project.

- Furthermore, the construction of the Shayamoya Eco-Tourism Park could not be completed in the 2013/14 financial year due to the tender prices that were above the allocated budget for this project and the specifications had to be revised and prices negotiated with the contractors caused a delay in the commencement of the project.

4.2 Per economic classification Final Appropriation

Actual Expenditure

Variance Variance as a % of Final

Appropriation R’000 R’000 R’000 R’000

Current payments Compensation of employees 202,148 185,326 16,822 8.32% Goods and services 395,148 360,536 34,612 8.76% Interest and rent on land 2,708 2,708 100.00%





Provinces and municipalities 40,660 21,982 18,678 45.94% Departmental agencies and accounts

2 1 1 50.00%

Households 5,458 3,306 2,152 39.43% Gifts and donations

Payments for capital assets Machinery and equipment 7,430 5,973 1,475 19.61% Payments for financial assets 417 417

. Compensation of employees was under-spent by R16,8 million due to delays in the filling of vacant funded posts resulting from delays by the DPSA, staff turnover, difficulty in finding suitably qualified candidates, and a lack of office accommodation, as explained previously.

• Goods and services reflects under-expenditure of R34,6 million due to the following:

o Lower than anticipated audit costs.

o Savings from travel and subsistence as a result of stringent cost-cutting.

o Unsatisfactory work done by service providers within the MSP, which led to payments being withheld for orders already issued.

o Delays in the appointment of a service provider for the e-Procurement Tool.

o Delays in discussions with board members in respect of the McCord Hospital (as detailed below).

o Delays in the obtaining of dates for the GRAP training with municipalities.

o The late receipt of invoices from service providers dealing with the Health Asset Register and the Education capped-leave project.

• The saving against Current payments: Other of R2.7 million relates to an improvement in the funds available in the PMG and IGCC account, resulting in no interest having to be paid by the province.

• Transfers and subsidies:

o Provinces and municipalities reflect under-spending of R18.7 million resulting from delays in spending in respect of the light industrial park at Bhongweni and the Shayamoya eco-complex. The former of which was due to delays in appointing a service provider (as explained above). The delays in the Shayamoya eco-complex resulted from tender prices being above the allocated budget for this project, as previously mentioned.

o Households was under-spent at year-end by R2.1 million mainly due a delay in the selection process regarding students for the Thuthuka Bursary Fund, as explained previously.

• Machinery and equipment

o Machinery and equipment was under-spent at year-end by R1.5 million resulting from delays in the non-filling of posts and cost-cutting.


STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2014


Note 2013/14 2012/13 R'000 R'000 REVENUE

Annual appropriation 1 653,971 613,235 Departmental revenue 2 49,814 45,343 TOTAL REVENUE 703,785 658,578 EXPENDITURE

Current expenditure Compensation of employees 3 185,326 163,560 Goods and services 4 360,535 311,242 Total current expenditure 545,861 474,802 Transfers and subsidies Transfers and subsidies 6 25,290 37,624 Total transfers and subsidies 25,290 37,624 Expenditure for capital assets Tangible assets 7.1 5,973 5,507 Intangible assets 7.2 394 Total expenditure for capital assets 5,973 5,901 Payments for financial assets 5 417 13 TOTAL EXPENDITURE 577,541 518,340 SURPLUS/(DEFICIT) FOR THE YEAR 126,244 140,238

Reconciliation of Net Surplus/(Deficit) for the yea r

Voted funds 76,430 94,895 Annual appropriation 76,430 94,895

Departmental revenue and NRF Receipts 12 49,814 45,343 SURPLUS/(DEFICIT) FOR THE YEAR 126,244 140,238


STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2014


Note 2013/14 2012/13 R'000 R'000 ASSETS

Current assets

1,900 15,854

Cash and cash equivalents 8 4 13,027 Prepayments and advances 9 48 8 Receivables 10 1,848 2,819

TOTAL ASSETS 1,900 15,854 LIABILITIES

Current liabilities

959 14,918

Voted funds to be surrendered to the Revenue Fund 11 (3,570) 14,895 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

12 4,397 20

Bank overdraft 13 64 Payables 14 68 3

TOTAL LIABILITIES 959 14,918 NET ASSETS 941 936

Note 2013/14 2012/13 R'000 R'000 Represented by:

Recoverable revenue 941 936 TOTAL 941 936


STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2014


Note 2013/14 2012/13 R'000 R'000 Recoverable revenue Opening balance 936 689 Transfers: 5 247

Irrecoverable amounts written off 5.1 417 Debts revised Debts recovered (included in departmental receipts)

(776) (279)

Debts raised 364 526 Closing balance 941 936

TOTAL 941 936


CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2014


Note 2013/14 2012/13 R'000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 623,351 578,543 Annual appropriated funds received 1.1 573,971 533,235 Departmental revenue received 2 540 596 Interest received 2.3 48,840 44,712

Net (increase)/decrease in working capital 996 31,811 Surrendered to Revenue Fund (60,332) (99,349) Current payments (545,861) (474,802) Payments for financial assets (417) (13) Transfers and subsidies paid (25,290) (37,624) Net cash flow available from operating activities 15 (7,553) (1,434) CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 7 (5,973) (5,901) Proceeds from sale of capital assets 2.4 434 32 Net cash flows from investing activities (5,539) (5,869) CASH FLOWS FROM FINANCING ACTIVITIES

Distribution/dividend received

3

Increase/(decrease) in net assets 5 247 Net cash flows from financing activities 5 250 Net increase/(decrease) in cash and cash equivalents (13,087) (7,053)

Cash and cash equivalents at beginning of period 13,027 20,080 Cash and cash equivalents at end of period 8 (60) (13,027)


ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2014


Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated.

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 exchange rates prevailing at the date of payment / receipt.

6 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.

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.

7.3 Accrued departmental revenue

Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:

• it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and

• the amount of revenue can be measured reliably.

The accrued revenue is measured at the fair value of the consideration receivable.

Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.

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.

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.

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 Aid Assistance

9.1 Aid assistance received

Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.

Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.

9.2 Aid assistance paid

Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.

10 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.

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.

11 Prepayments and advances

Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash.

Prepayments and advances are initially and subsequently measured at cost.

<Indicate when prepayments are expensed and under what circumstances.>

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.

13 Investments

Investments are recognised in the statement of financial position at cost.

14 Impairment of financial assets

Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes




to the financial statements.

15 Payables

Loans and payables are recognised in the statement of financial position at cost.

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 accurately, 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) are 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 accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured 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.

16.3 Intangible assets

Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.

Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project.

Where the cost of intangible assets cannot be determined accurately, the intangible




capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.


Intangible 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 intangible 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

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.

20 Irregular expenditure

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the irregularity unless it is impracticable to determine, in which case reasons therefore are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant authority or transferred to receivables for recovery.

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 estimates

N/A

22 Prior period errors

N/A

23 Non-adjusting events after the reporting date

There were no events after reporting date

24 Agent-Principal arrangements

[N/A arrangements and refer to the relevant note to the financial statements]


NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014


1. Annual Appropriation

1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2013/14 2012/13

Final Appropriation

Actual Funds

Received

Funds not requested/

not received

Appropriation received

R’000 R’000 R’000 R’000 Administration 113,064 99,160 13,904 99,645 Fiscal Resource Management

102,395 89,822 12,573 82,758

Financial Management

269,086 236,311 32,775 195,987

Internal Audit 109,581 96,154 13,427 92,981 Growth and Development

59,845 52,524 7,321 61,864

Total 653,971 573,971 80,000 533,235

2 Departmental revenue Note 2013/14 2012/13 R’000 R’000 Tax revenue Sales of goods and services other than capital assets

2.1 169 159

Fines, penalties and forfeits 2.2 1 Interest, dividends and rent on land 2.3 48,840 44,715 Sales of capital assets 2.4 434 32 Transactions in financial assets and liabilities 2.5 370 437 Total revenue collected 49,814 45,343 Departmental revenue collected 49,814 45,343




2.1 Sales of goods and services other than capital assets Note 2013/14 2012/13 2 R’000 R’000 Sales of goods and services produced by the department

167 158

Sales by market establishment 54 49 Administrative fees 51 51 Other sales 62 58

Sales of scrap, waste and other used current goods 2 1 Total 169 159

2.2` Fines, penalties and forfeits Note 2013/14 2012/13 2 R’000 R’000 Penalties 1 Total 1

2.3 Interest, dividends and rent on land Note 2013/14 2012/13 2 R’000 R’000 Interest 48,840 44,712 Dividends 3 Total 48,840 44,715

2.4 Sale of capital assets

Note 2013/14 2012/13 2 R’000 R’000 Tangible assets 434 32

Machinery and equipment 24.2 434 32

Total 434 32

2.5 Transactions in financial assets and liabilitie s Note 2013/14 2012/13 2 R’000 R’000 Receivables 370 437 Total 370 437




3 Compensation of employees

3.1 Salaries and Wages Note 2013/14 2012/13 R’000 R’000 Basic salary 127,309 112,320 Performance award 3,783 2,224 Service Based 74 142 Compensative/circumstantial 2,074 2,261 Periodic payments 632 676 Other non-pensionable allowances 32,225 28,445 Total 166,097 146,068

3.2 Social contributions

Note 2013/14 2012/13 R’000 R’000

Employer contributions Pension 14,672 13,131 Medical 4,534 4,340 Bargaining council 23 21 Total 19,229 17,492

Total compensation of employees 185,326 163,560

Average number of employees 475 477

An amount of R 417 for learner ship was classified to compensative/ circumstantial in compensation of employees from other operating expenditure in goods and services in 2012/13 financial year due to the SCOA changes.

4 Goods and services Note 2013/14 2012/13 R’000 R’000 Administrative fees 11,898 10,315 Advertising 3,993 4,129 Capital assets less than R5000 4.1 614 497 Bursaries (employees) 194 297 Catering 2,961 2,199 Communication 2,156 2,357




Computer services 4.2 112,843 110,935 Consultants, contractors and agency/outsourced services

4.3 177,428 129,502

Entertainment 6 Audit cost – external 4.4 3,318 4,526 Fleet services 1,194 1,017 Consumables 4.5 2,351 2,018 Operating leases 13,498 14,805 Property payments 4.6 7,072 7,854 Transport provided as part of the departmental activities

931 531

Travel and subsistence 4.7 12,512 14,143 Venues and facilities 2,952 2,554 Training and development 2,021 1,572 Other operating expenditure 4.8 2,599 1,985 Total 360,535 311,242

An amount of R 417 for learnership from other operating expenditure was reclassified to compensation of employees in 2012/13 financial year due to the SCOA changes.

4.1 Minor assets

Note 2013/14 2012/13 4 R’000 R’000 Tangible assets

Machinery and equipment 614 497 Total 614 497

4.2 Computer services

Note 2013/14 2012/13 4 R’000 R’000 SITA computer services 97,003 84,343 External computer service providers 15,840 26,592 Total 112,843 110,935

4.3 Consultants, contractors and agency/outsourced services

Note 2013/14 2012/13 4 R’000 R’000 Business and advisory services 163,279 122,751 Legal costs 1,218 1,659 Contractors 12,355 4,574




Agency and support/outsourced services

576

518

Total 177,428 129,502

4.4 Audit cost – External

Note 2013/14 2012/13 4 R’000 R’000 Regularity audits 3,074 3,799 Performance audits 281 Computer audits 244 446 Total 3,318 4,526

4.5 Consumables

Note 2013/14 2012/13

4 R’000 R’000 Consumable supplies 564 573

Uniform and clothing 158 79 Household supplies 273 325 Building material and supplies 71 26 Communication accessories 1 IT consumables 28 75 Other consumables 34 67

Stationery, printing and office supplies 1,787 1,445 Total 2,351 2,018

4.6 Property payments Note 2013/14 2012/13 4 R’000 R’000 Municipal services 2,953 3,038 Property maintenance and repairs 4,119 4,816 Other Total 7,072 7,854

4.7 Travel and subsistence

Note 2013/14 2012/13

4 R’000 R’000 Local 11,531 11,854 Foreign 981 2,289 Total 12,512 14,143




4.8 Other operating expenditure Note 2013/14 2012/13 4 R’000 R’000 Professional bodies, membership and subscription fees

308 282

Resettlement costs 126 179 Other 2,165 1,524 Total 2,599 1,985

5 Payments for financial assets

Note 2013/14 2012/13

R’000 R’000 Debts written off 5.1 417 13 Total 417 13

5.1 Debts written off

Note 2013/14 2012/13 5 R’000 R’000

Nature of debts written off

Other debt written off 417 13

Total 417 13 Total debt written off 417 13

6 Transfers and subsidies 2013/14 2012/13 R’000 R’000 Note Provinces and municipalities 48, 49, Annex

1A, Annex 1B

21,085 28,012

Departmental agencies and accounts Annex 1C 13 14 Households Annex 1H 3,307 9,598 Gifts, donations and sponsorships made Annex 1K 885 Total 25,290 37,624 Unspent funds transferred to the above beneficiaries




7 Expenditure for capital assets Note 2013/14 2012/13 R’000 R’000 Tangible assets 5,507

Machinery and equipment 24 5,973 5,507 Intangible assets 394

Software 25 394

Total 5,973 5,901

7.1 Analysis of funds utilised to acquire capital a ssets – 2013/14 Voted funds Aid

assistance Total

R’000 R’000 R’000 Tangible assets

Machinery and equipment 5,973 5,973

Total 5,973 5,973

7.2 Analysis of funds utilised to acquire capital a ssets 2012/13 Voted funds Aid

assistance Total

R’000 R’000 R’000 Tangible assets 5,507 5,507

Machinery and equipment 5,507 5,507 Intangible assets 394 394

Software 394 394 Total 5,901 5,901

8 Cash and cash equivalents Note 2013/14 2012/13 R’000 R’000 Consolidated Paymaster General Account 13,023 Cash on hand 4 4

Total 4 13,027

Indicate the amount of significant cash and cash equivalent balances held by the department that are not available for use.




9 Prepayments and advances Note 2013/14 2012/13 R’000 R’000 Travel and subsistence 48 8 Total 48 8

10 Receivables 2013/14 2012/13

R’000 R’000 R’000 R’000 R’000

Note

Less than one

year

One to three years

Older than three years

Total

Total

Claims recoverable 10.1

Annex

4

305 305 1,476

Recoverable expenditure

10.3 206 206 62

Staff debt 10.4 86 76 162 271 Other debtors 10.5 149 272 754 1,175 1,010 Total 746 348 754 1,848 2,819

10.1 Claims recoverable Note 2013/14 2012/13

15 R’000 R’000 National departments 4 Provincial departments 300 991 Private enterprises 1 114 Local governments 371 Total 305 1,476

10.2 Recoverable expenditure (disallowance accounts ) Note 2013/14 2012/13 10 R’000 R’000

Sal tax Debts 38 62 Disall damages & Losses 100 100 Disall damages & Losses (100) (100) Sal: Reversal Control CA 146 Pension Recoverable 22 Total 206 62




10.3 Staff debt Note 2013/14 2012/13 10 R’000 R’000

Tax debts 7 Bursary debt 121 262 Overpaid Salary 4 3 Travel and Subsistence 9 Housing Allowance 1 6 Cellphone 20 Total 162 271

10.4 Other debtors Note 2013/14 2012/13 10 R’000 R’000

Bursary debts 953 823 Losses and damages 9 38 Overpaid salary 155 111 Tax Debts 10 Subsidies vehicle 16 16 Private telephone calls 23 5 Other 9 17 Total 1,175 1,010

11 Voted funds to be surrendered to the Revenue Fun d Note 2013/14 2012/13 R’000 R’000 Opening balance 14,895 49,699 Prior period error (2012/13) 11.2 As restated 14,895 49,699 Transfer from statement of financial performance (as restated)

76,430 94,895

Add: Unauthorised expenditure for current year 11 Voted funds not requested/not received 1.1 (80,000) (80,000) Paid during the year (14,895) (49,699) Closing balance (3,570) 14,895




12 Departmental revenue and NRF Receipts to be surr endered to the Revenue Fund Note 2013/14 2012/13 R’000 R’000 Opening balance 20 4,327 Prior period error (2012/13) 12.1 As restated 20 4,327 Transfer from Statement of Financial Performance (as restated)

49,814 45,343

Paid during the year (45,437) (49,650) Closing balance 4,397 20

13 Bank Overdraft Note 2013/14 2012/13 R’000 R’000 Consolidated Paymaster General Account 64 Total 64

14 Payables – current Note 2013/14 2012/13

R’000 R’000

Clearing accounts 14.1 68 3 Total 68 3

14.1 Clearing accounts

Note 2013/14 2012/13 14 R’000 R’000 Sal: Income tax 68 3 Total 68 3

15 Net cash flow available from operating activitie s Note 2013/14 2012/13 R’000 R’000 Net surplus/(deficit) as per Statement of Financial Performance

126,244 140,238

Add back non cash/cash movements not deemed operating activities

(133,797) (141,672)

(Increase)/decrease in receivables – current 971 31,834 (Increase)/decrease in prepayments and advances (40) 15 Increase/(decrease) in payables – current 65 (38)




Proceeds from sale of capital assets (434) (32) Proceeds from sale of investments (3) Expenditure on capital assets 5,973 5,901 Surrenders to Revenue Fund (60,332) (99,349) Voted funds not requested/not received (80,000) (80,000) Net cash flow generated by operating activities (7 ,553) (1,434)

16 Reconciliation of cash and cash equivalents for cash flow purposes Note 2013/14 2012/13 R’000 R’000 Consolidated Paymaster General account (64) 13,023 Cash on hand 4 4 Total (60) 13,027


DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014


17 Contingent liabilities and contingent assets

17.1 Contingent liabilities Note 2013/14 2012/13 R’000 R’000 Liable to Nature Claims against the department Annex 3B 45 45 Intergovernmental payables (unconfirmed balances)

Annex 5 2,352 733

Total 2,397 778

18 Commitments Note 2013/14 2012/13 R’000 R’000 Current expenditure Approved and contracted 140,520 57,120 Approved but not yet contracted 140,520 57,120 Capital expenditure Approved and contracted 239 Approved but not yet contracted 239 Total Commitments 140,759 57,120

19 Accruals 2013/14 2012/13 R’000 R’000 Listed by economic classification

30 Days 30+ Days Total Total Goods and services 14,874 3,286 18,160 8,306 Capital assets 351 Total 14,874 3,286 18,160 8,657

Note 2013/14 2012/13 R’000 R’000 Listed by programme level Administration 2,926 2,830 Fiscal Resource Management 1,613 1,244 Financial Management 9,247 2,329 Internal Audit 4,061 2,180 Growth and Development 313 74 Total

18,160

8,657




Note 2013/14 2012/13 R’000 R’000 Confirmed balances with other departments Annex 5 1 Confirmed balances with other government entities Annex 5 42 171 Total 43 171

20 Employee benefits Note 2013/14 2012/13

R’000 R’000 Leave entitlement 4,440 5,188 Service bonus (Thirteenth cheque) 4,235 3,865 Performance awards 2,715 2,034 Capped leave commitments 5,667 5,068 Other 5 Total 17,057 16,160

21 Lease commitments

21.1 Operating leases expenditure

2013/14

Specialised

military equipment

Land

Buildings and other

fixed structures

Machinery

and equipment

Total Not later than 1 year 8,793 8,793 Later than 1 year and not later than 5 years

15,472 15,472

Total lease commitments 24,265 24,265

2012/13

Specialised

military equipment

Land

Buildings and other

fixed structures

Machinery

and equipment

Total

Not later than 1 year 11,196 11,196 Later than 1 year and not later than 5 years

28,902 28,902

Total lease commitments 40,098 40,098




21.2 Finance leases expenditure**

2013/14

Specialised

military equipment

Land

Buildings and other

fixed structures

Machinery

and equipment

Total Not later than 1 year 1,732 1,732 Later than 1 year and not later than 5 years

437 437

Total lease commitments

2,169 2,169

2012/13

Specialised

military equipment

Land

Buildings and other

fixed structures

Machinery

and equipment

Total Not later than 1 year 694 694 Later than 1 year and not later than 5 years

211 211

Total lease commitments

905 905

**This note excludes leases relating to public private partnership as they are separately disclosed to note no.35.

22 Irregular expenditure Note 2013/14 2012/13 R’000 R’000 Opening balance **Add: Irregular expenditure – relating to current year 433 96 Less: Current year amounts condoned (433) (96) Irregular expenditure awaiting condonation - - **Part of the expenditure will be paid in the financial year 2014/15 and it will be disclosed in the relevant register accordingly as the project is ongoing.

22.1 Details of irregular expenditure – current yea r Incident Disciplinary steps taken/criminal

proceedings 2013/14 R’000

Project commenced without an official purchase order - SAB & T

Warning letters were issued to Mr K Lamola and the service provider involved.

391

Advertisement was published without official order. - Ultimate Recruitment

Verbal warning was given to Ms S Ngema.

32




Plumbing services were rendered beyond approved scope of the initial order.

Warning letters were done. .

10

Total 433

22.2 Details of irregular expenditure condoned Incident Condoned by (condoning authority) 2013/14

R’000 Work commenced without an purchase order

Accounting Officer 391

Work commenced without an purchase order


Work commenced without an purchase order


Total 433

23 Key management personnel

No. of Individuals

2013/14 2012/13

R’000 R’000 Political office bearers (provide detail below) 1 1,735 1,652 Officials:

Level 15 to 16 4 5,350 4,349 Level 14 (incl. CFO if at a lower level) 9 9,585 9,071

Family members of key management personnel

Total 16,670 15,072




24 Movable Tangible Capital Assets MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASS ET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Opening

balance Curr Year

Adjust-ments to prior year balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT

34,217 (27) 5,973 1,682 38, 481

Transport assets 5,427 1,695 1,109 6,013 Computer equipment 25,132 4,055 573 28,614 Furniture and office equipment 3,357 (27) 218 3,548 Other machinery and equipment 301 5 306 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 34,217 (27) 5,973 1,682 38, 481




24.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER AS SET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 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 5,973 5,973 Transport assets 1,695 1,695 Computer equipment 4,055 4,055 Furniture and office equipment 218 218 Other machinery and equipment 5 5 TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 5,973 5,973




24.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER AS SET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Sold for cash

Transfer out or

destroyed or

scrapped

Total disposals

Cash Received

Actual

R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 1,109 573 1,682 434 Transport assets 1,109 1,109 434 Computer equipment 573 573 Furniture and office equipment Other machinery and equipment TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 1,109 573 1,682 434




24.3 Movement for 2012/13

Opening

balance Curr Year

Adjust-ments to prior year balances


R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT

28,841 1,760 5,507 1,891 34,217

Transport assets 4,474 832 1,053 932 5,427 Computer equipment 20,917 889 4,180 854 25,132 Furniture and office equipment 2,890 298 274 105 3,357 Other machinery and equipment 560 (259) 301 TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 28,841 1,760 5,507 1,891 34,217

24.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2014

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

1,651 4,315 5,966

Curr Year

Adjustments to Prior Year balances

(3) (3)

Additions 615 615 Disposals (15) (15) TOTAL MINOR ASSETS

1,651 4,912 6,563





Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

Number of R1

minor assets

2,064 2,064

Number of

minor assets at cost

36 2,452 2,488

TOTAL NUMBER OF MINOR ASSETS

36 4,516 4,552

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013


Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000 Opening

balance

1,651 4,081 5,732

Curr Year Adjustments to

Prior Year

balances

6 6

Additions 497 497 Disposals (269) (269) TOTAL MINOR ASSETS

1,651 4,315 5,966


Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

Number of R1 minor assets

2,086 2,086

Number of

minor assets at cost

36 2,158 2,194

TOTAL NUMBER OF MINOR ASSETS

36 4,244 4,280




25 Intangible Capital Assets MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REG ISTER FOR THE YEAR ENDED 31 MARCH 2014 Opening

balance Current

Year Adjust-

ments to prior year balances


R’000 R’000 R’000 R’000 R’000 28,515 28,515 SOFTWARE TOTAL INTANGIBLE CAPITAL ASSETS 28,515 28,515




25.1 Movement for 2012/13

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REG ISTER FOR THE YEAR ENDED 31 MARCH 2013 Opening

balance Current

Year Adjust-

ments to prior year balances


R’000 R’000 R’000 R’000 R’000 SOFTWARE 29,881 (1,760) 394 28,515 TOTAL INTANGIBLE CAPITAL ASSETS 29,881 (1,760) 394 28,515


ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014


ANNEXURE 1A STATEMENT OF CONDITIONAL GRANTS PAID TO MUNICIPALIT IES

NAME OF MUNICIPALITY

GRANT ALLOCATION TRANSFER SPENT 2012/13

Division

of Revenue

Act

Roll Overs

Adjustments

Total Available

Actual Transfer

Funds Withheld

Re-allocations by National Treasury or

National Department

Amount received

by municipality

Amount spent by

municipality

% of available

funds spent by

municipality

Division

of Revenue

Act

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

KZN216 Hibscus 2,288 2,288 2,008 2,008 2,008 100%

KZ225 Msunduzi 16,186 16,186 16,186 16,186 16,186 100% 16,760 DC26 Zululand 603 603 597 597 597 100% 20,000 KZA4 Kokstad 20,677 20,677 2,294 2,294 2,294 100% 10,062

KZ282 Umhlathuze 8,041

20,677 16,789 2,288 39,754 21,085 21,085 21,085 54,863

National Departments are reminded of the DORA requirements to indicate any re-allocations by the National Treasury or the transferring department, certify that all transfers in terms of this Act were deposited into the primary bank account of a province or, where appropriate, into the CPD account of a province as well as indicate the funds utilised for the administration of the receiving officer.




ANNEXURE 1B STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

DEPARTMENT/ AGENCY/ ACCOUNT

TRANSFER ALLOCATION TRANSFER 2012/13

Adjusted Appro-

priation

Roll Overs

Adjust-ments

Total Available

Actual Transfer

% of Available

funds Transferred

Appro-priation Act

R'000 R'000 R'000 R'000 R'000 % R'000 PD Vehicles 20 20 12 60% 14 Com Licences (Radio & TV) 2 2 1 50% 22 22 13 14




ANNEXURE 1C STATEMENT OF TRANSFERS TO HOUSEHOLDS

HOUSEHOLDS

TRANSFER ALLOCATION EXPENDITURE 2012/13 Adjusted

Appropriation

Act

Roll Overs

Adjust-ments

Total Available

Actual Transfer

% of Available

funds Transferred

Appro-

priation Act

R'000 R'000 R'000 R'000 R'000 % R'000 Transfers Injury on duty 8 4 12 12 100% Post retirement benefit 1,239 (186) 1,053 435 41% 1,332 Severance packages 392 Leave gratuity 137 171 308 307 100% 30 Bursaries non - employee 4,058 4,058 2,528 62% 11,830 Claims against State 16 11 27 25 93% 8 Subtotal 5,458 5,458 3,307 13,592

Total 5,458 5,458 3,307 13,592




ANNEXURE 1D STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECE IVED

NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SP ONSORSHIP

2013/14 2012/13

R’000 R’000

Received in cash Subtotal Received in kind ABSA Bank Sponsorship for the 2013 post Budget Breakfast 263 Institute of Internal Auditors of SA Sponsorship for the IAT Learnership Graduation 3 Ubunye Consortium Sponsorship for hosting of the municipal risk forum 50 ABSA Bank Sponsorship for the 2014: Women’s Business Breakfast 13 FNB Sponsorship for the 2014: Budget Road Show 80 Subtotal 93 316 TOTAL 93 316




ANNEXURE 1E STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMMISSIONS, REFUNDS AND PAYMENTS MADE AS AN A CT OF GRACE NATURE OF GIFT, DONATION OR SPONSORSHIP

2013/14 2012/13

R’000 R’000

Paid in cash Umgeni Municipality 35 Mpofana Municipality 35 Umshwathi Municipality 35 Impendle Municipality 35 Mkhambathini Municipality 35 Subtotal 175 Made in kind Duzi Primary 66 Ottawa Primary School 8 Amaoti No 3 Combine School 8 Bavumile Junior Primary School 8 Bhekulwandle Primary School 8 Wozamoya High School 8 Ndwedwe Circuit 2 Maphumulo Circuit 2 Mandeni Circuit 2 Mhlali Circuit 2 Mgungundlovu District 37 Mgungundlovu District 443 Ilembe District 37 Mgungundlovu District 10




Richmond District 53 Underberg District 16 Subtotal 710 TOTAL 885




ANNEXURE 2A STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2014

Nature of Liability

Liabilities incurred

during the year

Liabilities paid/cancelled/reduced during the

year

Liabilities recoverable (Provide

details hereunder)

Opening Closing Balance Balance

1 April 20YY 31 March

2014 R’000 R’000 R’000 R’000 R’000

Claims against the department Legal Fees 45 45 Subtotal 45 45

TOTAL 45 45

ANNEXURE 2A (CONTINUED) STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2014

Nature of liabilities recoverable

Opening balance 1 April 2013

Details of liability and recoverability

Movement during the year

Closing balance 31 March 2014

R'000 R'000 R'000

45 The case is still pending 45

Total 45 - 45




ANNEXURE 3 CLAIMES RECOVERABLE

Government Entity

Confirmed balance outstanding

Unconfirmed balance outstanding Total

31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013 R’000 R’000 R’000 R’000 R’000 R’000

Department KZ Agriculture and Environmental Affairs 1 1 KZ Social Development 872 872 KZ Sports and Recreation 101 101 Independent Complaints 16 16 NW Finance 1 1 KZ Economic development 300 300 N Labour Compensation Fund 4 4 300 101 4 890 304 991 Other Government Entities Newcastle Municipality 171 171 eDumbe Municipality 200 200 Pro PM Consulting 114 114 Giltme 1 1 1 485 1 485 TOTAL 301 101 4 1,375 305 1,476




ANNEXURE 4 INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY

Confirmed balance outstanding

Unconfirmed balance outstanding TOTAL

31/03/2014 31/03/2013 31/03/2014 31/03/2013 31/03/2014 31/03/2013 R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTS

Current Department of Labour 17 17 KZ Premier 135 328 328 328 463 KZ Social Development 1 181 181 182 181 KZ Transport 1 1 KZ Health 48 2 48 2 EC Treasury 36 36 KZ Economic Development 4 4 Government Printing Works 171 168 171 168 Statistic SA 4 4 KZ Public Works 1,505 1,505 SAPS 51 51 Department of Justice 34 34 Subtotal 1 171 2,318 705 2,319 876 Non-current Subtotal Total 1 171 2,318 705 2,319 876

OTHER GOVERNMENT ENTITY

Current Palama 42 34 28 76 28 Subtotal 42 34 28 76 28 Subtotal Total 43 171 2,352 733 2,395 904




ANNEXURE 5 INVENTORY

Inventory Note Quantity 2013/14 Quantity 2012/13 R’000 R’000

Opening balance 329 Add/(Less): Adjustments to prior year balance Add: Additions/Purchases - Cash 629 Add: Additions - Non-cash (Less): Disposals (82) (Less): Issues (548) Add/(Less): Adjustments 3 Closing balance 331

kwazulu-natal provincial treasury: vote 6 provincial treasury: vote 6 kzn provincial treasury annual...

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