kwazulu-natal provincial treasury: vote 6

KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6

KZN Provincial Treasury Annual Report - 1 -

TABLE OF CONTENTS

PART A: GENERALINFORMATION

A.1 Foreword by the MEC of Finance iii A.2 Introduction by the Head of Department iv A.3 Vision, Mission and Values 4 A.4 Legislative and Other Mandates 4

PART B: PROGRAMME PERFORMANCE

B.1 Programme 1: Administration 9 B.2 Programme 2: Fiscal Resource Management 22 B.3 Programme 3: Financial Management 35 B.4 Programme 4: Internal Audit 50 B.5 Programme 5: Growth and Development 59

PART C: REPORT OF AUDIT COMMITTEE 61

PART D: ANNUAL FINANCIAL STATEMENTS

D.1 Report of the Accounting Officer 65 D.2 Report of the Auditor-General 71 D.3 Appropriation Statement 75 D.4 Notes to the Appropriation Statement 91 D.5 Statement of Financial Performance 94 D.6 Statement of Financial Position 95 D.7 Statement of Changes in Net Assets 96 D.8 Cash Flow Statement 97 D.9 Accounting Policies 98 D.10 Notes to the Annual Financial Statements 108 D.11 Disclosures Notes to the Annual Financial Statements 120 D.12 Annexures to the Annual Financial Statements 128

PART E: HUMAN RESOURCE MANAGEMENT

E.1 Expenditure 138 E.2 Employment and Vacancies 140 E.3 Job Evaluation 143 E.4 Employment Changes 145 E.5 Employment Equity 149 E.6. Performance Rewards 154 E.7 Foreign Workers 157 E.8 Leave Utilisation 158 E.9 HIV and Aids and Health Promotion Programmes 160 E.10 Labour Relations 161 E.11 Skills Developments 163 E.12 Injury on Duty 165 E.13 Utilisation of Consultants 165



PART A: GENERAL INFORMATION A1: FOREWORD BY THE MEC OF FINANCE, MS CM CRONJÉ

This Annual Report brings us closer to our quest to be THE centre of financial excellence, not only in our Province but also measured against the best in the world. As expected from a Provincial Treasury, we were again given a clean bill of health by the Auditor-General for our 2012/13 financial management.

Some key milestones achieved by Provincial Treasury includedtwo awards: a Gold Award from the Premier, Dr Zweli Mkhize, during the 2012 HR Convention for the “Best serving Human Resources” in KwaZulu-Natal, as well as the FNB Top Business Award for our financial literacy programme which promotes socio-economic growth.This unique relationship with the private sector also resulted in KZN becoming the first to host a Provincial Financial Education Conference. Another partnership that has earned us praise is Provincial Treasury’s partnership with SAICA on the Thuthuka Bursary Fund, where we are sponsoring 100 deserving young people to become Chartered Accountants.

Our programmes to stimulate the economy included upgrades and improvements at various regional airports, as well as a series of six airshows. Giving the economy a further boost was the introduction of the Infrastructure “Crack” Team, which has resulted in an increase in infrastructure spending in the Province (from 88% in 2009 to 99.4% in 2012/13).

Focusing on the enhancement of revenue has paid off, as we have over-collected R331.6 million of own revenue as a Province, with Treasury showing significant over-collection of revenue.Our efforts to provide solutions to enhance payments from patient fees will strengthen our provincial receipts further. We are happy to report that the Province remains with a healthy cash positive bank balance. Monthly reports to Cabinet certainly help to take swift action when necessary.

The 74% reduction in arrears government debt owed to municipalities from June 2010 to date is to be applauded. We are looking forward to further improvements in our systems as well as the billing systems of certain municipalities in 2013/14.The municipal finance unit is now able to assist all 58 delegated municipalities with budget preparation. This was not the case 4 years ago.

It is encouraging to see the positive impact of the ‘Operation Pay on Time’ call centre. Departments have performed particularly well (93.5% payment of invoices within 60 days and 80% payment of invoices within 30 days). This is now even better than in the private sector. Outreach programmes and initiatives under Operation Sukuma Sakhe are picking up momentum and we are happy that we could assist 288 households on farms in the Karkloof area with electricity and facilitate the training of about 1 000 fieldworkers in selected wards in all five sub-regions in eThekwini.

While we learn from our achievements, we also learn from our mistakes and limitations. There is certainly always room for improvement and that, as someone pointed out, is the “biggest room in the house!” Let us continue to improve the lives of our people by delivering services efficiently, effectively and economically. Let us do more, better, with less!

Ms CM Cronjé

MEC for Finance



A.2: INTRODUCTION BY THE HEAD OF DEPARTMENT

The main responsibility for Provincial Treasury is to ensure compliance and full implementation by departments and municipalities of the two most important pieces of legislation that regulate the management of public funds, namely: Public Finance Management Act (PFMA) of 1999 as well as the Municipal Finance Management Act (MFMA) of 2003.

In keeping with our vision of being “the centre of excellence in the financial management in the country”, the department has introduced various initiatives and programmes which are currently bearing fruits.One of the most critical ones is the introduction and the continued compliance to the Provincial Recovery Plan, otherwise referred to as the Cost-Cutting Measures. This Plan is responsible for getting the Province out of the R3 billion overdraft into a current cash surplus of about R4.5 billion. This Plan has not only improved the financial position of the Province, but it has also helped to steer the provincial government back to financial sustainability.

As a department, we continue 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 shrinking share of KwaZulu-Natal’s population compared to Gauteng.

In 2009, the Province had a challenge in spending its infrastructure allocation fully. This prompted Provincial Treasury to establish an Infrastructure “Crack” Team in 2010/11. This team has helped to unlock multi-million Rands worth of blocked infrastructure projects in various departments and municipalities. The provincial infrastructure spending has improved to almost 100% in 2012/13, up from 88% in 2009.

Through our Municipal Support Programme, we continue to provide assistance to municipalities to comply with the provisions of the MFMA.Our focus is on providing on-site support in specific areas of financial management at selected municipalities, such as assisting in the preparation and monitoring of budgets of all 58 municipalities delegated to KwaZulu-Natal, assisting in cash flow management as well as assisting struggling municipalities with competent people and encouraging municipalities in general to acquire their own fully competent personnel in the areas of financial management and accounting.

In partnership with National Treasury, we have launched the Municipal Finance Management Internship Programme (MFMIP) to assist municipalities to increase their capacity to implement the municipal finance reforms of the MFMA. The MFMIP seeks to assist municipalities to develop the knowledge and skills of the interns employed under this programme. It is an organised professional training and work experience programme with the goal of providing high quality training and practical exposure in all aspects of municipal finance management. The programme is designed to provide interns (who are graduates in the fields of Accounting, Economics and Finance) with a logical training sequence founded on the knowledge competencies they acquired as graduates. It is envisaged that, through workplace rotation, there will be interaction and mentoring by CFOs, international advisors and other experienced officials. These are but some of the many initiatives we have introduced in a bid to build on the successes of the past financial year.

With this annual report being an account of the KZN Provincial Treasury’s achievements and challenges during the 2012/13 financial year, we are confident that we are indeed moving closer to being the centre of excellence in financial management in the country. Mr L S Magagula

Head: Provincial Treasury


VISION AND MISSION


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)


VISION AND MISSION


• 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)

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) Modernisethe 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.


VISION AND MISSION


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.


VISION AND MISSION


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.


VISION AND MISSION


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.

4.3 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 0f 1999).


PROGRAMME PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2 013


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

1.1 Community Outreach

The extent and impact of the community outreach programmes of the Office of the MEC is

observed in the turn-out of people at the organised road shows, and appreciation of information

shared with the community.

The objectives of the budget road shows are to communicate the work done by Provincial

Treasury with regard to the budget, to educate communities about how the budget is put

together, what its priorities are, as well as to get the peoples’ input. This assists the department

to put together a budget that does not only reflect the priorities of the people, but also responds

to the socio-economic needs of the general population of the province. Communities are also

encouraged to start their own businesses so that they can be self-reliant.

At such forums, which take the format of business breakfast and community events, the public

also engage and ask questions from the MEC and Head of Department.Such forums were held

in the following municipal areas:




• Emadlangeni – Utrecht Town Hall

• Edumbe – Bilanyoni Community Hall

• Umhlathuze – Thubalethu Sports Grounds

• Endumeni – Mpumelelo Stadium

• Ukhahlamba – Winterton / Green Point Stadium

• Umhlathuze – Empangeni / Ngwelezane

• Jozini – Egujini Sports Field

• Msunduzi – Imbali Township

• Msunduzi World Aids Day – Trustfeed Sports Ground

• Umdoni – Emalangeni MPCC

• Mooi-Mpofana – Middelrus Hall

1.2 Financial Literacy

The Financial Literacy Programme has grown from strength-to-strength since its inception in

2011. To date, about 92 member organisations have joined the KwaZulu-Natal Financial

Literacy Association (KZNFLA). Participating entities range from private sector entities,

parastatals, regulatory bodies, academic institutions as well as government departments. The

major achievement is that the footprint of financial literacy has been extended in KZN by sharing

resources, expertise, passion and enthusiasm. As government, we want to see everyone (young

and old) being financially literate. The days of finance matters being regarded as the preserve of

a select few are gone. We use financial education as a way of expanding social and economic

opportunity for all citizens in KZN. The KZNFLA focuses on five target groups, namely:

• Women and vulnerable groups.

• In-school youth.

• Out of school youth.

• SMMEs.

• Government employees.

The achievements of the Financial Literacy Programme are as follows:

• Government Employees Emoluments Attachments Worksho p:A two-day workshop was

held on debt counselling and Emoluments Attachment orders (commonly known as

“garnishee” orders) in partnership with the Office of the Premier and the National Credit

Regulator, to assist government employees who are indebted. Also, assistance was given to

government officials who implement the court orders to be able to identify legitimate court

orders.




• Provincial Treasury became a member of the Internat ional Network for Financial

Education (INFE) of the Organisation for Economic C o-operation and Development

(OECD).We presented the KZN Provincial Literacy programmes at a conference hosted by

the OECD in Prague in partnership with the Czech National Bank. This forum served as an

opportunity to engage with a broad spectrum of world leaders on financial education,

financial inclusion and access. Challenges and solutions in the pension field, communication

tools for financial education and a special focus on financially empowering women and the

young generation, starting in schools, were some of the topics that were discussed.

• Child Youth Finance in Turkey: Under the In-school Youth Focus Group, 3 girls from

KwaZulu-Natal attended the global summit in Turkey on financial inclusion and economic

citizenship in May 2013. The summit provided the youth with an opportunity to better

understand the dynamic world of finances. The ever-changing face of the global economy

requires that children and youth need to prepare themselves at an early age to meet the

financial challenges of the future. Consequently, the KZNFLA will host its first annual Child

Youth Finance local summit in March 2014, involving local policymakers on financial

inclusion and economic citizenship, as well as children.

• Global Money Week: Learners from Ntuzuma, Umlazi, Embo, KwaNyuswa, Molweni and

Intshanga visited banks with the intention of teaching children the art of banking and

savingto appreciate the power of choice, to create awareness about the value of money and

the importance of saving.

• Surveys on the levels of financial literacy in households were conducted and will be

ongoing.

• The Grade 11 Speech Contest on Finance was extended from two circuits to all education

districts.

• Increasing Financial Education Training Workshops for government employees, including

teachers.

• Teach Children to Save – South Africa™ (TCTS) in KZN. An event was held at a primary

school in Paulpietersburg in 2012, where Treasury officials and the MEC became “teachers”

for a day.

• Promoting Financial Literacy – Taking Financial Edu cation to the People: A Conference

on Financial Education and Financial Literacy was held on 3 and 4 July 2012.

• Annual campaigns on “Wise” festive spending are held.




• Training workshops for SMMEs are conducted.

• Partnerships have been established with savings groups and self-help groups .

• Publication of Know Your Money – YaziImaliYakho: This is aFinancial Education

newspaper for government employees in KwaZulu-Natal.

1.3 Savings Campaign

In the past four years, Provincial Treasury has been aggressively driving the importance of

saving through the Savings Campaign initiative. One cannot under-estimate the power of a

money box –it is a simple tool that we use to teach our people to save money. We aim to dispel

the myth that saving is an exclusive privilege for the rich only. Our emphasis is on the basics: the

simpler the method of saving money, the better it is understood. We teach our people to start

saving from Cents, so that it would be easier to save Rands later. The age old tradition of saving

in a money box is still effective and necessary. Through this initiative, we are inculcating a

culture of saving for both young and old.

1.4 Operation SukumaSakhe (OSS)

Provincial Treasury has continued to participate in Operation SukumaSakhe as part of our

commitment to service delivery.This commitment has been put into effect by including the

Operation SukumaSakhe initiatives of Provincial Treasury into the performance agreements and

workplans of SMS members from the 2012/13 assessment cycle.

Some of the achievements of Operation Sukuma Sakhe include the following:

• Edendale Moral Reconstruction Indaba – Lay Ecumenic al Centre: The purpose of the

Indaba was to discuss and come up with an action plan to mitigate the social ills in the

Edendale area, prompted by an incident of rape and murder of an elderly woman in

Dambuza in August 2012. Key role players included the religious, political, business and

social sectors, Men’s Forum and Youth Structures.

The Office of the Msunduzi Mayor and councillors forged a stronger working relationship with

key stakeholders to sustain community engagements on social ills discussed at the Indaba

using the existing structure of War Rooms in wards.

• OSS Middelrus Indaba – Mooi-Mpofana Municipality: The purpose of the Indaba was to

bring together key stakeholders, (viz. government departments, councillors, NGOs,

Traditional Leaders, Traditional Healers, the religious sector, farmers, etc.) to examine how




they can work together more effectively to improve the implementation of Operation

SukumaSakhe in the Mooi-Mpofana local municipality.

We received positive feedback from the Mayor and the Chairperson of the Local Task Team

in Mooi-Mpofana that, after our intervention, there is much better co-operation among

stakeholders.

1.5 Electrification Project: uMngeni Municipality

A total of 288 households on farms in the Karkloof area benefited from the electrification

project that was initiated by the MEC together with uMngeni Municipality under the

Operation SukumaSakhe Project. We engaged through a tripartite forum consisting of

government, farm owners and dwellers. The success of this model enhanced the lives of

the farm dwellers and was an important step in improving relations between farm owners,

dwellers and employees. The breakdown of families who now have electricity on farms

through this intervention include the following:

o Triandra Farm - 34

o Hawkstone Farm - 54

o Spitzkop Farm - 53

o Colbourne Farm - 22

o Gartmore Farm - 23

o Yarrow Farm - 36

o Benson Farm - 66

At the same time, we also addressed other service delivery issues of water and sanitation,

and further engaged on social issues including:

o Grazing land.

o Burial rights and graveyards.

o Access control.

o Impounding of stock.

The greatest achievement of this intervention was to demonstrate that it is possible for

government to deliver services even on privately owned land (like farms) where, for too

long, the notion was harboured that it was impossible.




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 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.

c) 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.

d) The creation of ‘Operation Pay on Time’ call centre to deal with complaints from service

providers regarding non-payment or late payment of accounts by provincial departments

has resulted in heightened awareness by all departments of the importance of paying

invoices within the 30-day PFMA prescribed time period. This centre has facilitated several

payments since its inception in August 2011 and there has been some improvements on the

number of invoices paid within 30 days.

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

• Facilitated the training of almost 1 000 fieldworkers (community development workers,

community care-givers, and youth ambassadors) in selected wards in all five sub-regions

in eThekwini.

• Donated two reconditioned computers and filing cabinets to Ward 89. Also donated a

reconditioned computer to Mrs.Sokhela who is a pensioner and a community activist

elected as the secretariat for the North Central local task team.

• Working through the local task teams in the war-rooms, the Office of the HOD identified

300 school children in the most deprived wards in eThekwini that were to receive school

shoes. The distribution of the school shoes started in March and will end in May 2013.

The Office of the HOD also managed to get Al-Imdaad as a partner in this project and the

organisation supplied two pairs of socks to each child who received school shoes.




f) In January 2013, the Office of the HOD secured European Union funding under the

Financial Management Improvement Programme III (FMIP III). The quantum of the funding

has not yet been confirmed, but it will be more than R30 million. This funding will be used to

secure experts to assist with education and health sector reviews in 2013/14 and beyond,

as well as assisting with a system for health patient fee collections (discussed in more detail

later). Sector reviews are an important element of public finance, as they deal with the

question of whether value for money is being achieved with the expenditure incurred.

Education and Health were chosen because, together, they account for about 73 per cent of

the provincial budget.

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:

• A new internal control unit was created to prevent, detect and correct any internal control

deficiencies.

• The unit has reviewed Provincial Treasury’s Fraud Prevention plan, Whistle Blowing policy,

and Fraud policy. The unit also conducted workshops to create awareness on fraud and

fraud prevention.

• The unit was also responsible for the reviewing of all invoices produced for payment by

external service providers. This has ensured that all SCM related deviations are timeously

detected and corrected where necessary.

• The CFO office has facilitated the departmental audit and received four clean audits in the

past 4 years, and it is optimistic that the fifth clean audit will be achieved for the 2013/14

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.

The office reviewed the asset management policy to include an aspect on the restrictions in the

acquisition of assets. This entailed limitation in certain categories of assets to SMS members

which translate to savings and restrictions on unnecessary asset acquisition.




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

Some achievements for 2012/13 are as follows:

• During 2012/13, 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, Dr ZL Mkhize, during the 2012 HR Convention

for the “Best serving Human Resources” in the Province of KwaZulu-Natal.

• The unit has successfully implemented most 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. In all departmental activities, the element of wellness has

been incorporated in an attempt to instill a healthy lifestyle in our employees.

• The unit made substantial progress in the filling of all funded vacant posts within the

department, reducing the vacancy rate from 32 per cent to 15 per cent and, in terms of the

employment of women at management level, there has been a significant improvement from

27.09 per cent to 37 per cent, and continuous efforts, such as targeted advertising, etc. are

embarked upon in an attempt to meet the national target of 50 per cent women at

management level. To this end, the unit also developed fully achievable strategies to ensure

the successful implementation of the HOD’s 8-Principle Plan of Action for Women

Empowerment, and ensured that all policies are aligned to gender mainstreaming initiatives.




• The unit successfully implemented succession planning within the department to increase

its pool of female candidates in respect of posts with scarce skills, such as the Provincial

Accountant-General, as well as the Senior Manager-Banking.

• The Wellness Clinic has been a huge success, by instilling healthy lifestyle practices in staff.

There has been a 25 per cent overall increase in the number of officials’ testing in respect of

HIV, glucose levels, cholesterol and blood pressure.

• In an attempt to improve on meeting the National targets in respect of the employment of

two per cent disabled staff, the unit included disabled female learners into the Take a Girl

Child to Work initiative, and also carried out a full disability audit on all employees of the

department, as a step towards encouraging officials to disclose their disability status, if

applicable. The current intake of interns is also inclusive of four disabled graduates.

• A further initiative to develop previously disadvantaged youth as well as promote job

creation is Provincial Treasury’s partnership with SAICA on the Thuthuka Bursary Fund,

where Treasury is sponsoring 100 previously disadvantaged students studying to become

Chartered Accountants. This will ensure the necessary skills within departments,

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

department has budgeted R16 million over the next four years for this project.




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

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Minutes of meetings

scheduled, attended

75% of scheduled

Budget Council

Meetings – National

1 0 1 0 1 0 1 1 4 1

Minutes of meetings

scheduled, attended

90% attendance of

Provincial Cabinet

and Legislature

meetings scheduled

10 23 10 17 10 13 10 18 40 71

Publications No. of publications 1 13 1 12 1 10 1 12 4 47

Free publicity(news

bulletins and articles)

Free publicity (news

bulletins and

articles)

20 21 20 20 20 30 30 30 90 101

Media briefings Media briefings on

service delivery

1 1 1 1 1 1 1 1 4 4




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.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

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 1 1 1 1 1 1 1 4 quarterly

budget

performance

reports to

Cabinet

4 quarterly

budget

performance

reports to

Cabinet

Tabling of MTEF,

Adjustments Budget,

in terms of PFMA at

the Legislature and

Cabinet

Tabling of MTEF,

Adjustments Budget,

in terms of PFMA at

the Legislature and

Cabinet

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

Attendance of all

Budget Council and

Lekgotla meetings

schedules

Attendance of all

Budget Council and

Lekgotla meetings

schedules

1 1 1 1 1 1 2 2 5 meetings per

financial year

5 meetings

per financial

year

Render Special

Project support

services to the MEC

and department

Render IGR support

services to the MEC

and department

3 3 3 3 3 3 3 3 12 Cabinet

Economic and

Technical

Cluster

meetings and

reports

12 Cabinet

Economic and

Technical

Cluster

meetings and

reports




1.3 OFFICE OF THE CFO: To ensure effective management of the departmental finances resources in line with statutory requirements.

Programme/ Sub-

programme output

Performance

Measures

1st QtrPlanned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr

Planned Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Financial

Management Support

plan

Compile budget

submission and

strategic planning

documents (EPRE &

APP)

N/A N/A 1 1 1 1 2 2 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 5 4 5 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 HR services (to provide advisory and consultancy support throughout the department to help achieve organisational improvement).

• To ensure that the department fulfils its statutory and audit requirements in managing HR processes and procedures. This would be achieved in part of assisting in ensuring

that the staff are appropriately skilled to be able to provide high quality services to the communities serviced.

• To create a healthy workforce through the provision of EAP services enabling staff to contribute to the objectives of the department to the best of their ability.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th QtrActual

Output

Target for

2012/13 as

per APP

Actual output

2012/13

HR charter % OF HR services

completed as per

HR Charter

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

HR service seminars Number of HR

seminars

2 sessions 3 sessions 2 sessions 3 sessions 2 sessions 2 sessions 2 sessions 4 sessions 8 sessions 12 sessions

HR seminars (EWP) Number of EWP

seminars

1 session 2 information

seminars


seminars


seminars

1 session 3 sessions 4 information

seminars

11 information

seminars

HR policy sessions Number of policies

developed /

reviewed and

seminars conducted

2 policies and 2

seminars

4 policies and

3 seminars

2 policies and 2

seminars

3 policies and 3

seminars

2 policies and 2

seminars

4 policies and 2

seminars

2 policies and 2

seminars

4 policies and 4

seminars

8 policies

and 8

seminars

15 policies and

12 seminars

Human Resource,

Workplace Skills and

Employment Equity

Plans

% achieved from the

Human Resource

Plan, and Workplace

Skills Plan

100% 92% and

83.15%

100% 93% and 92.60% 100% 91% and 92% 100% 92% and 74% 100% 92% and 85%




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

implementation 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

The Economic Analysis unit determines and evaluates the economic parameters and socio-economic

imperatives that inform provincial resource allocation. The unit also supports municipalities through

regional economic analysis. The unit plays a significant role in the economic development of the

province through its involvement with other departments in, inter alia, the following projects:

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

• 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 district and local municipalities.

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

• The unit has been instrumental in the successful upgrade and development of various regional

airports in KZN (total value of R82.500 million over a three-year period), namely:

o Pietermaritzburg airport – The success of the PMB airport is widely acknowledged and

recognised. Passenger numbers increased from 59 000 in 2010 to over 103 000 in 2012. This

is a massive increase over a very short period of time. Flight diversions decreased from a

monthly average of 9 in 2009 to 0.3 in 2012. The total revenue generated increased from less




than R1 million in 2009 to over R2.4 million in 2012. The airport incurred a net loss of over

R2.5 million in 2009, compared to a surplus of R600 000 during 2012.

o Prince Mangosuthu Buthelezi airport – Major successes were achieved at this airport. The

upgrades and additions were done on budget and on time. The new tourism hub is 90 per

cent complete and is a direct spin-off of the airport success. The Ulundi air route is growing

from strength to strength, with passenger numbers reaching over 100 for the first time during

April 2013. Estimated savings to the provincial fiscus are R360 000 from May 2012 to

December 2012 as a result of government officials opting to fly rather than drive to Ulundi.

o Improvements were also made in respect of the Richards Bay, Margate and Mkuze airports.

• Treasury also very successfully supported the inaugural KZN Winter Air Tour during 2012/13.

These are a series of 6 consecutive airshows, with the aim of taking aviation to the people. A

total audience of 55 000 attended these shows.

• Treasury hosted the first ever KZN Funding Fair.

Infrastructure

Provincial Treasury established a panel of infrastructure experts during 2011/12, covering all

disciplines in the planning, designing, construction, monitoring and maintenance of infrastructure

projects. This is a transversal panel and is available for utilisation by all departments and

municipalities under the supervision of Treasury. As at the end of April 2013, approximately 44 built

environment specialists were deployed to assist in unblocking various infrastructure projects, and

further allocations are in the process of being finalised. Major achievements include the unlocking of

about R22 million in Nongoma relating to the taxi rank and road upgrade, development of a supplier

database at uPhongolo, publishing and evaluation of four water related tenders at Uthukela,

establishment of an infrastructure audit team at eDumbe, implementation of the Margate urban

renewal programme, to name a few. The deployment of the Infrastructure “Crack” Team has received

a lot of praise, not just from municipalities, but also from communities and businesses.

Through this exercise, Treasury has expertise readily available to assist and ensure value for money

and on-budget spending of the infrastructure allocations. In terms of the infrastructure functions, the

following progress was made:

• Cabinet approval for the implementation of the Infrastructure Delivery Management System

(IDMS) in KZN was received.

• Successful participation and roll-out of the Infrastructure Delivery Improvement Programme

(IDIP) in Health, Education, Public Works and Provincial Treasury.




• Participation in National Treasury’s pilot IDMS training at the University of Pretoria.

• Support to National Treasury and eThekwini Metro in piloting IDMS implementation for

municipalities.

• Overall improvement in the implementation of IDIP in KZN as stated in the December 2012 IDIP

Quality Assurance Report.

• Provincial evaluation and feedback sessions (first ever) of the User Asset Management reports

of the various departments.

• Active involvement in the provincial GIAMA Forum.

• Successful training on the Infrastructure Report Management (IRM) tool in the Departments of

Education, Health and Transport.

• The Infrastructure Crack Team was successfully deployed to the Departments of Agriculture,

Environmental Affairs and Rural Development, Public Works, Education, COGTA, Human

Settlements, Treasury, and the public entities ADA and Ezemvelo KZN Wildlife (total value of

R14 million).

• The Infrastructure Crack Team was successfully deployed to the Msunduzi, Nongoma,

uPhongolo, Edumbe, Uthukela, Mtubatuba, Greater Kokstad, Hibiscus Coast, Hlabisa,

Abaqulusi, Umkhanyakude and Endumeni municipalities (total value of R7 million).

• Successful partnership with Department of Public Works in the Provincial Infrastructure Co-

Ordination Workgroup.

Public Finance

The functions of the Public Finance unit are largely process driven and are governed by various

legislative mandates. As such, the functions and work performed often remain largely unchanged

from year to year in terms of the processes that need to be undertaken, such as preparation of the

annual MTEF budget for KwaZulu-Natal, preparation of the Adjustments Budget, as well as revenue

and expenditure monitoring of provincial departments and public entities.

Some of the achievements of the Public Finance unit are as follows:

• 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 gained momentum in 2012/13,

with quarterly budget performance reports also being prepared for these entities and bilaterals

being held with them for the first time.

• The 2012/13 Adjustments Budget for KZN was tabled in the Legislature on 22 November 2012.

• The 2013/14 MTEF budget for KZN was tabled in the Legislature on 12 March 2013. This

process was a difficult one for KZN, as the province was negatively affected by the 2011 Census

data update of the equitable share formula, which saw the province losing R6.772 billion over the

2013/14 MTEF. Provinces like the Western Cape and Gauteng were found to be proportionately

more populous than KZN, and were therefore on the receiving end of these funds. This

prompted Treasury to expand the cost-cutting measures which were first implemented in

2009/10. The expanded cost-cutting measures were submitted to Cabinet and were adopted for

immediate implementation in December 2012.

• Provincial Treasury has ensured 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.

• Key focus was placed on the enhancement of revenue from patient fees by the Department of

Health, and a position paper in this regard is being drafted that identifies areas of weakness, and

looks at providing possible solutions. The biggest challenge remains that most of the health

institutions are on manual systems that leave a lot to be desired in terms of efficiency.

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 2012/13, 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 2012/13, with the province under-spending slightly by some R539 million (under-spending

of 0.6 per cent), according to unaudited numbers.




• 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.

• KwaZulu-Natal has become an example to all other provinces when it comes to these fiscal

austerity measures, with the province being hailed from all quarters for the success it has

achieved in such a short space of time.

• Of the 16 provincial departments, only 3 (namely the Provincial Legislature, Health and

Transport) over-spent their budget allocations, while the other 13 under-spent. This over-

expenditure was fairly minimal, though, when viewed as a proportion of these departments’

budget allocations. In fact, two of these departments over-spent their allocation by between 0.4

and 0.5 per cent (Health and Provincial Legislature, respectively), and Transport by 0.1 per cent.

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

provincial bank balance is also submitted to Cabinet on a monthly basis, 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

The Municipal Finance unit focused on providing assistance to municipalities in compliance with the

provisions of the MFMA. Attention was focused on:

• Assisting in preparation and monitoring of budgets in all 58 municipalities delegated to KZN.

• The Municipal Support Programme (MSP) concentrates on providing on-site support in specific

areas of financial management at selected municipalities:

o Eight municipalities, namely uMngeni, uMtshezi, Uthukela District, Nquthu, uPhongolo,

Nongoma, Ulundi and Mfolozi, were supported in terms of cashflow management. We

introduced and instituted a cashflow management process to assist municipalities in

controlling the use of their cash resources, being aware of their cash situation at all times

and ensuring sustainability.

o Nine municipalities were assisted in terms of internal control enhancement which entails

introducing and instituting improvements in internal controls relating to financial processes

and in the IT environment. The municipalities supported were Ezinqoleni, uMngeni,

uThukela District, Endumeni, Newcastle, Ulundi, Nquthu, Mthonjaneni and KwaDukuza.




o Thirteen municipalities were assisted to prepare and/or review their 2011/12 Annual

Financial Statements to meet the deadline for submission of the AFS for audit. The

municipalities assisted were uMngeni, Richmond, uMtshezi, Uthukela District, Nquthu,

Newcastle, Amajuba District, uPhongolo, Nongoma, Mtubatuba, Ingwe, Ubuhlebezwe and

Sisonke District. All of these AFS were completed and the deadline for submission to the

Auditor-General was met.

o To assist municipalities with regard to challenges associated with the existing competency

levels among their existing staff complement, resources were deployed to four

municipalities, namely Umvoti, Mtubatuba, Mthonjaneni and Ilembe District.

o In addition to this support, further support was provided to the various municipalities by the

Infrastructure Crack Team, SCM, Internal Audit and Financial Reporting.

• All 58 delegated municipalities submitted their 2012/13 draft budgets to Provincial Treasury. Of

the 58 draft budgets received, 57 were assessed by Provincial Treasury. The one remaining

budget could not be assessed as the municipality had submitted incomplete information.

• Bilateral meetings were conducted with 27 municipalities to discuss Provincial Treasury’s

assessment of the 2012/13 draft MTREF budget.

• A high level assessment was also conducted on the 2012/13 final budgets of all 58 delegated

municipalities in order to assess whether municipalities have considered the comments and

recommendations made by Provincial Treasury on the draft budgets before tabled in Council.

• Technical support with regard to the preparation of the 2013/14 budget in line with Municipal

Budget Reporting Regulations formats is being provided to all delegated municipalities on an

ongoing basis. The Unit, jointly with National Treasury, hosted workshops for all municipal

finance officials in KZN, on 22 - 23 November, 6 - 7 December 2012 and 1 February 2013, to

empower them to compile credible budgets. These workshops were attended by 132, 151 and

131 delegates, respectively.

• All 58 delegated municipalities submitted their Mid-Year Budget and Performance Assessment

Reports. Assessments were conducted on 54 of 58 municipalities. Municipal visits/engagements

on the findings were conducted during February and March 2013 on 49 municipalities.

• Provincial Treasury performed an assessment of the 2012/13 Adjustments Budget of all

municipalities, with the exception of uMshwathi Municipality as they did not table and submit

their 2012/13 Adjustments Budget in the prescribed Schedule B, therefore no assessment could

be performed.




• 57 of the 58 delegated municipalities tabled their draft 2013/14 budgets in Council by 31 March

2013 as required by Section 16(2) of the MFMA. One municipality (Ndwedwe Municipality) did

not comply with this section of the Act and the MEC for Finance sent a non-compliance letter to

this municipality.

• The Unit participated in the MEC for Finance’s district workshops and co-ordinated the

presentations by various units within Provincial Treasury. The main objectives of these

workshops were:

o To engage the municipal political leadership to impart the relevant knowledge on how to

engage with financial and other reports and play their oversight roles effectively without

interfering with administrative functions.

o To clarify the roles and responsibilities of Provincial Treasury in the municipalities.




Programme Two: Fiscal Resource Management

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

Programme/

Sub-programme

output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as

per APP

Actual output

2012/13

Publication/

report

To provide an

economic analysis

for the province

3 socio-economic

profiles

3 economic

profiles, 2

presentations

3 socio-economic

profiles, PERO

and input towards

Municipal Finance

close-out report

3 economic

profiles, 1

presentation,

SERO draft,

Municipal Finance

close-out report.

Operation

SukumaSakhe

report

3 district socio-

economic profiles

3 district socio-

economic profiles,

1 presentation:

Umzinyathi

District

1 district socio-

economic profiles

Uthukela

(SERO)

10 district

socio-

economic

profiles

(PERO)

10 district profiles

and SERO, 4

presentations, 1

OSS report and 1

input into

municipal close-

out report

Socio-economic

output chapter,

budget

supplement, and

budget highlights

To provide input to

the Overview of

Provincial Revenue

Expenditure (OPRE)

N/A N/A N/A N/A N/A N/A 1 1 Input into

OPRE on

time for

tabling

1

Research papers To provide quality

research for

regional policy

analysis

N/A 2 abstracts

submitted. 1

questionnaire

compiled

N/A N/A N/A Mini research on

uMgungundlovu

as metro

1 1 Writing of

research

paper

2 abstracts

submitted, 1

questionnaire

compiled, mini

research on

uMgungundlovu

as metro, and

research papers

Updated

databese

To update and

maintain the KZN

statistic database

N/A Subscription with

Global Insight has

been reviewed

and submitted

N/A N/A N/A N/A Update Global

Insight and KZN

Barometer

1 Updating

subscription

with sources

of data

Update Global

Insight and

subscribed with

KZN Barometer




2.2.2INFRASTRUCTURE: To Ensure efficient infrastructure planning and management in the province.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

(APP)

Actual output

2012/13

Provincial

Infrastructure Plan

(PIP)

Timely completion of

PIP

N/A N/A 1 0 N/A N/A N/A N/A Submit PIP to NT

by 28th February

2013

0

Co-ordinate

implementation of the

IDIP in the province

No. of departments

for implementation

of the IDIP in the

province

4 4 4 4 4 4 4 4 IDIP to continue

in Education,

Public Works and

Health. IDIP

introduced at

Human Settlemts,

Sport & Recr.,

Arts & Culture

4

Compliance with

infrastructure budget

and delivery plans

Compliance with

infrastructure budget

and delivery plans

3 3 3 3 3 3 3 3 12 quarterly

reports

12 quarterly

reports

1 0 1 0 1 0 1 0 4 project close-

out report

0

Conduct quarterly

assessments on

infrastructure delivery

in KZN

Conduct quarterly

assessments on

infrastructure

delivery in KZN

36 9 36 0 36 39 36 5 Conduct 144 site

visits

53

Estimates of

Provincial Revenue

and Expenditure

(EPRE) previously

Main Budget

Statement

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 Quarterly reports 1




2.3.1PUBLIC FINANCE: PROVINCIAL BUDGET MANAGEMENT: Ensure efficient budget and expenditure management and accurate financial reporting for provincial government

(including public entities).

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual

output

2012/13

No. of chapters in

MTEC report

No. of chapters in

MTEC report

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

completed 1

day before

MTEC as per

budget process

timetable

16

Estimates of

Provincial Revenue

and Expenditure

(EPRE) previously

Main Budget

Statement

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 EPRE on time

for tabling

1

Adjusted Estimates of

Provincial Revenue

and Expenditure

(AEPRE) previously

Adjusted Budget

Statement

Adjusted Estimates of

Provincial Revenue

and Expenditure

(AEPRE) previously

Adjusted Budget

Statement

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

for tabling

1

Section 32 report

(Monthly Provincial

IYM report)

Section 32 report

(Monthly Provincial

IYM report)

3 3 3 3 3 3 3 3 12 reports per

annum

(submitted to

NT by the 22nd

of each month)

12

Quarterly performance

reports for provincial

departments

Quarterly performance

reports for provincial

departments

1 1 1 1 1 1 1 0 4 reports per

annum

(completed one

month after end

of each quarter)

3




2.3.2PUBLIC FINANCE: PROVINCIAL OWN REVENUE: Promote optimal and sustainable revenue generation and collection by provincial departments and public entities.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual

output

2012/13

Conduct quarterly

Provincial Revenue

Forums

Conduct quarterly

Provincial Revenue

Forums

1 1 1 1 1 1 1 1 4 forums per

year

4

Monitoring of

departmental revenue

collection

Monitoring of

departmental

revenue collection

1 1 1 1 1 1 1 0 Quarterly

reports

3

Revenue input into

Overview of Provincial

Revenue and

Expenditure (OPRE)

and Estimates of

Provincial Revenue

and Expenditure

(EPRE)

Revenue input into

Overview of

Provincial Revenue

and Expenditure

(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




2.3.3PUBLIC FINANCE: SPECIAL ADVISORY SUPPORT SERVICES: To promote effective and optimal financial resource allocation for provincial government (including public

entities).

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual

output

2012/13

Input into the revision

and maintenance of

DORA

Input into the

revision and

maintenance of

DORA

Submit input by

due date

N/A N/A N/A Submit input by

due date

Input submitted

by due date

Submit input by

due date

N/A Input to be

submitted by

due date

Submitted by

due date

Institutionalise

framework for the

monitoring of

provincial public

entities

Institutionalise

framework for the

monitoring of

provincial public

entities

Close-out report

one month after

end of financial

year

N/A N/A N/A Mid-year report

on evaluation of

budget

submissions

Mid-year

budget

performance

report prepared

N/A N/A Implement

monitoring tool

and report bi-

annually for 10

public entities

Close-out

report one

month after

end of

financial year




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.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st QtrActual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Section 71 (6)report

(Monthly municipal

IYM report)

Section 71(6) report

within prescribed

timeframe

3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 3 reports 3 report 12 Section 71

(6) reports, 22

working days

after end of

each month

12 reports

Section 71 (7)

quarterly budget

performance reports

for local government

and Legislature

Section 71(7)

quarterly budget

performance reports

1 report Report onquarter

4 of municipal f.y.

due in August

(awaiting

publication figures

from NT)

1 report Quarterly

report for

quarter 1 (July,

August,

September) is

awaiting

publication

figures

1 report Quarterly

report for

quarter 2

(October,

November and

December) is

awaiting

publication

figures

1 report Quarterly

report for

quarter 3

(January,

February,

March) is

awaiting

publication

figures

4 section 71 (7)

quarterly

budget

performance

reports, 45

days after end

of quarter

4 reports

Municipalities

supported by the

Municipal Support

Programme (MSP

No. of municipalities

supported by MSP

10 municipalities 10 municipalities -

Endumeni,

Ezinqoleni,

Nquthu, uMngeni,

uMtshezi,

Uthukela DM,

Nongoma,

uPhongolo,

Ulundi and

Newcastle

municipalities

6 municipalities 8 municipalities 6 municipalities 6 municipalities 6 municipalities 12 municipalities 10 municipalities

to be supported

through MSP

12 municipalities

supported

through 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.

The StrategicObjectives are:

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 PPPproject 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 2012/13, a number of site visits were conducted to all provincial departments as an on-going

support initiative to assist with enhancing Asset Management in 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 introduced a new Electronic System that improved the method of BAS

payments exceeding the limit of R1 million. This enabled the department to save on bank charges

per transaction and limit the time preparing payment requests to the Official Banker.

A new electronic system was implemented to effect payments for the Department of Local

Government and Traditional Affairs’ Tribal Levy and Trust Accounts. This system replaced all the

cheque payments.

An investigation was done on all petty cash accounts and a number of accounts were closed that

were not used on a frequent basis. Departments were also requested to reduce the authorised limits




on those petty cash accounts that were exceptionally high. This enabled the department to save on

bank charges on those accounts closed, and minimise the possibility of fraud and the misuse of

funds on those accounts with exceptionally high limits.

Due to support given and liaising with departments on a regular basis, departments are able to

manage the clearing of the banking suspense accounts before the month-end closure.

Due to the regular interaction with municipalities, there has been a noteworthy improvement of

reports submitted to Provincial Treasury.

The Tax section provided a training and support function to 16 departments to ensure the necessary

transfer of tax knowledge and skills within the province. Site visits were conducted, and training gaps

identified and followed up with the necessary training to all 16 provincial departments. The 2013

annual tax reconciliations were submitted to SARS before the deadline for each department. All risks

identified by Treasury on a quarterly basis were followed up with the individual departments, to

ensure compliance with the tax legislation.

Public Private Partnerships (PPPs)

The Public Private Partnership unit 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 the following provincial departments:

• KZN Department of Health in developing the exit strategy for the Inkosi Albert Luthuli Central

Hospital concession period, and in investigating possibly procuring the New King Edward

Academic Hospital as a PPP project.

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

KZN provincial departments as a 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. The department is also exploring the

possibility of including three additional nodes (Amajuba, Sisonke and Umzinyathi).

The unit is also assisting the following municipalities:

• 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.




• Newcastle Local Municipality in its Alternative Technology and Waste Reduction investigation,

as required by Section 120 of the MFMA.

• 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 negotiating

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

preferred bidder.

The achievements of the PPP unit are:

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

• First draft of the needs analysis investigation for the New King Edward Academic Hospital was

finalised and presented to all stakeholders.

• First draft of the needs analysis investigation for the KZN Department of Education schools

project for the four pilot nodes, i.e. Ilembe, Uthukela, Ugu and uMgungundlovu was finalised.

• Third review of the concession agreement and development of the five-year implementation plan

for the period 2014 - 2019 for the Ilembe District Municipality was initiated.

The commitments of the PPP unit are:

• Appointment of a service provider for the development of the exit strategy of Inkosi Albert Luthuli

Central Hospital.

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

• Finalisation of the feasibility study for the Office Park.

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

for the period 2014 – 2019 of the Ilembe concession contract.

Supply Chain Management (SCM)

• Serious lack of capacity in the SCM components of the Departments of Social Development and

Sport and Recreation, and the Uthukela District Municipality led to an intervention by Treasury’s

SCM unit. The unit provided direct assistance by managing the procurement in these

institutions. The Social Development intervention was successfully completed in December

2012. The interventions at the Department of Sport and Recreation and the Uthukela District

Municipality are still ongoing, as Treasury is assisting with the required reforms.




• Provincial Treasury undertook comprehensive SCM compliance assessments of all provincial

departments and municipalities.

• Treasury successfully completed Phase 2 of the Contract Management pilot project in the

following departments and municipalities: Human Settlements, Public Works, Transport,

Agriculture, Environmental Affairs and Rural Development, Education, COGTA, Hibiscus Coast,

Uthukela and Msunduzi. Phase 2 of the Contract Management pilot project comprises

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 2 also involved the drafting of standardised

contracts for 17 items frequently purchased by government across the spectrum.

• As an additional control measure in the local government sphere, the provincial SCM unit

established Municipal Bid Appeals Tribunals in all 10 districts, which will serve as impartial

bodies to adjudicate appeals against municipalities relating to awards of bids. The members of

the District Tribunals have been appointed, and Treasury is ensuring that all municipalities’ SCM

policies are updated and amended to facilitate the implementation of this system.

• Provincial Treasury’s SCM unit recently appointed a panel of BEE verification agencies which

will assist emerging companies registered in the KZN Provincial Suppliers’ Database in attaining

BEE verification status, as required by the PPPFA.

• Provincial Treasury, in its effort to introduce an E-procurement tool, which will assist in limiting

instances of fraud and corruption within the SCM process, approached the market for a suitable

E-procurement system. The procurement process is currently at bid evaluation stage.

• An automated system was implemented in November 2012 to improve the overall performance

of the Bid Appeals Tribunal secretariat.The table below gives a summary of appeals in 2012/13:

Table: Number of appeals dealt with in 2012/13 and other information on the state of Provincial appeals

Departments Appeals Status

Appeals

Received Withdrawn Upheld Dismissed Re-evaluate Pending

Late

Appeals

Struck off

the Roll

Awarded to

Appallent Adjourned

Health 146 94 8 11 2 19 5 5 2 -

Transport 52 27 3 9 3 2 1 1 1 5

Public Works 22 4 2 5 2 6 2 - - 1

Education 11 5 1 1 2 - 1 - 1 -

Agric, Env. Affairs & Rural Dev 7 6 - - - - 1 - - -

Total 238 136 14 26 9 27 10 6 4 6

Key:

Withdrawn Appelant withdraws appeals after receiving reasons for non-award from that Department

Upheld The appeal was upheld by the Tribunal

Dismissed The appeal was dismissed by the Tribunal

Re-evaluate The Tribunal recommends that the Department re-evaluates the bid

Pending Appeal is pending for various reasons

Late appeals Appeals received after the 5-day appeals period and the file is therefore closed

Struck off the roll Appeal is dismissed at the hearing




Financial Reporting

1. 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:

• An analysis of basic financial management processes and procedures.

• Identification of audit risk areas and key internal control measures to mitigate potential risks.

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

address audit risks and key control deviations.

This initiative has also been extended to 15 municipalities in the 2013/14 financial year:

Sisonke Ntambanana Ugu Ilembe Umgungundlovu Umkhanyakude

Sisonke Ntambanana Umdoni Kwa Dukuza Richmond Umkhanyakude

uBuhlebezwe - Umzumbe Mandeni uMngeni uMhlabuyalingana

Greater Kokstad - - - Umshwathi -

KwaSani - - - - -

Districts

This will be implemented in conjunction with our electronic tracking tool and audit working paper file.

The overarching concept of these tools is to monitor key financial management processes and

reconciliations. This should enable CFOs and finance staff to flag risks and address errors timeously.

2. Assistance to departments

Treasury assisted the following departments with resolving key prior year audit issues to ensure an

unqualified audit opinion in 2011/12:

• Department of Public Works (Immovable assets).

• Royal Household (Annual Financial Statements and asset management).

• Social Development (asset management).

3. Reduction in government debt to municipalities

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

government debt of R466 million in June 2010 has been reduced to R121.229 million, of which some

R43 million is current. The remaining R78 million relates to rates levied against Human Settlements

and services to Section 21 schools. This represents a 74 per cent reduction since 2010.

Mar-13 Nov-12 Jun-12 Mar-11 Jun-10

Provincial Departments 121,229 132,364 139,846 175,298 466,774

R 000's




The current task team will concentrate on the improvement of our systems, as well as the billing

systems of certain municipalities in 2013/14.

4. Payment of suppliers within 30 days

Departments have performed particularly well in this regard (93.5 per cent payment of invoices within

60 days and 80 per cent payment of invoices within 30 days). In comparison, it appears that, in the

private sector in KZN, 57 per cent of invoices are paid in 60 days, with the remainder happening

after 60 days.

Figure 1. Provincial performance in terms of payi ng suppliers

5. Operation “SikhokhaNgesikhathi – We pay on Time”

Government is committed to pay all suppliers within 30 days, and therefore Provincial Treasury set

up a system to deal with complaints from service providers regarding the non-payment or late

payment of accounts by provincial departments where such still exist. On 1 September 2011,

Operation “SikhokhaNgesikhathi – We Pay on Time” was launched.

• Since then, a total of 189 invoices were queried by 83 service providers, amounting to

R45 million.

• 136 invoices were resolved for 61 service providers amounting to R33 million.

Provincial Treasuryhas furthermore established a liaison mechanism with organised business to

assist with communication with service providers regarding the facility, but also to create awareness

of the need to follow due process such as the necessity to obtain an official order for services.




6. Financial Delegations

In line with Presidential Outcome 12 relating to financial management in municipalities and in

collaboration with National Treasury, a MFMA System of Delegations (SoD) template for

implementation in municipalities was developed to address all the challenges that were identified

during the review of the SoDs for the 58 delegated municipalities. The template was designed in

accordance with the following five criteria:

• Annual review and adoption by Municipal Council.

• MFMA sub-delegations.

• Authorisation and signatories on MFMA delegations.

• General limitations on MFMA delegations.

• Comprehensive MFMA delegations.

Norms and Standards

1. Policy assistance for department and public enti ties

Fourteen financial management practice notes for departments were reviewed according to the

review schedule that is compiled on an annual basis by the unit. A matter that required urgent

attention was the amendment of the practice note on ‘Unauthorised, Irregular and Fruitless and

Wasteful Expenditure’, with specific regard to process flows and condonation of irregular

expenditure. Input is awaited from National Treasury before finalising amendment to practice note.

Subsequent to a request for assistance from the Chief Financial Officer of the KZN Sharks Board,

two policies were developed and implemented: Revenue Management and Asset Management.

This included six new revenue procedures which were developed in consultation with the operational

staff of the KZN Sharks Board to ensure the effective customisation of these policies and procedures

to suit their unique circumstances.

2. Policy assistance for municipalities and municip al entities

The support that is provided to municipalities is informed by the annual survey that is conducted at

the beginning of the financial year, as well as specific requests from municipalities and municipal

entities. Assistance rendered included the development of two new finance related policies for

Umvoti Municipality and Umhlosinga Development Agency.

The assessment of four municipalities was conducted, including a specific request for a concentrated

review of seven policies from the Chief Financial Officer of Umuziwabantu Municipality due to the

limited capacity of the municipality’s finance department.




3. Monitoring, compliance and evaluation

The monitoring compliance and evaluation system initiated and driven by the unit resulted in the

further refinement of the monitoring exercise with feedback reports issued to departments. These

reports detailed the outcomes achieved subsequent to the implementation of proposed

recommendations to address previously identified deviations and non-compliance. The unit

facilitated the completion of the 2012/13 review of the National Treasury Financial Management

Capability Maturity Model (FMCMM). The findings were analysed and assessment reports issued,

detailing all findings, associated risks and recommendations and/or controls to be implemented to

achieve capability maturity control level 3 (Compliance and Control) within the various financial

management focus areas. In addition, action plans were compiled and departments were requested

to indicate what action will be taken to address the identified weaknesses and the deadline by which

this will be achieved, which will be followed-up to ensure compliance.

4. System of Delegations

The unit provided comprehensive support in customising the financial delegations as per the

template that was rolled out to all 58 municipalities in 2011. Close support was provided to 16

municipalities to ensure that their councillors, municipal managers, chief financial officers and

officials fully comprehend their roles relating to delegated functions, and to ensure that delegations

are in line with organograms. The unit also ensured that the financial delegations are comprehensive

enough to address weaknesses identified during the initial review of all financial delegations in KZN.

Supporting and Interlinked Financial Systems

Treasury made significant progress in the area of IT and Systems. A notable achievement is the

sound state of IT governance in Treasury, with only two audit findings reported in the 2013 A-G

report. Through an effective IT Steering Committee, the following key projects were completed:

• The Bid Appeals Tribunal System was automated to improve the management of bid appeals.

• User requirements for the Forensic Case Management System were completed. The

development of the system is scheduled for 2013/14.

• The Biometric Access Control System underwent enhancements to address the findings and

recommendations of an audit. This system continues to provide additional security, resulting in

no reported system related fraud on BAS and PERSAL in KZN since implementation.

• Treasury also commenced with implementing an electronic document and records management

system to improve the efficiency of storage, search and retrieval of documents. The system

addresses legal obligations to comply with National Archives and Record Services Act of 1996.




Programme Three: Financial Management

3.1 ASSETS AND LIABILITY MANAGEMENT:

• To ensure provision of effective and efficient transversal advice,guidance and support and monitoring compliance to Asset Management prescripts in 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.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Provide Guidance/

advisory services to

depts. iro pay roll

tax process

Provide guidance and

support iro payroll

functions to KZN

departments

16 depts. 16 depts. 16 depts. 16 depts. 16 depts. 16 depts. 16 depts. 16 depts. 16 depts. per

quarter

16 depts. per

quarter

Inform depts. on tax

legislation and

regulations iro

payroll tax

Conduct Tax

Information Seminar

annually

Nil Nil 2 sessions 2 sessions Nil Nil Nil Nil 2 sessions 2 sessions

Inform depts. on tax

legislation and

regulations

Quarterly risk analysis

per department 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

departments on the

status of bank related

suspense accounts

16 reports on

status of

suspense

accounts

16 reports on

status of

suspense

accounts

16 reports on

status of

suspense

accounts

16 reports on

status of

suspense

accounts

16 reports on

status of

suspense

accounts

16 reports on

status of

suspense

accounts

16 reports on

status of

suspense

accounts

16 reports on

status of

suspense

accounts

64 assessment

reports

64 assessment

reports

Monitor early

completion of Bank

Reconciliation

Produce monthly

reconciled bank

reconciliations per

department

48 bank

reconciliation

48 bank

reconciliation

48 bank

reconciliation

48 bank

reconciliation

48 bank

reconciliation

48 bank

reconciliation

48 bank

reconciliation

48

reconciliation

192 reconciled

bank

reconciliation

192 reconciled

bank

reconciliation




Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr

Actual Output

2nd Qtr

Planned Output

2nd Qtr

Actual Output

3rd Qtr

Planned Output

3rd Qtr

Actual Output

4th Qtr

Planned Output

4th Qtr

Actual Output

Target for

2012/13 as per

APP

Actual output

2012/13

Municipal bank

accounts

Produce quarterly

report on

withdrawals from

municipal bank

accounts

1 report on

withdrawals

1 report on

withdrawals

1 report on

withdrawals

1 report on

withdrawals

1 report on

withdrawals

1 report on

withdrawals

1 report on

withdrawals

1 report on

withdrawals

4 reports on

withdrawals from

municipal bank

accounts

4 reports on

withdrawals from

municipal bank

accounts

Management Policy

Framework

Enhanced Asset

Management

Policy Framework

and functional

Asset

Management

System

4 depts.

Implemented

enhanced Asset

Management

Policy Framework

and fully

implemented

Barcoding and

Purchasing

Module

4 depts.

Implemented

enhanced

Asset

Management

Policy

Framework and

fully

implemented

Barcoding and

Purchasing

Module

4 depts.

Implemented

enhanced Asset

Management

Policy Framework

and fully

implemented

Barcoding and

Purchasing

Module

4 depts.

Implemented

enhanced

Asset

Management

Policy

Framework and

fully

implemented

Barcoding and

Purchasing

Module

4 depts.

Implemented

enhanced Asset

Management

Policy Framework

and fully

implemented

Barcoding and

Purchasing

Module

4 depts.

Implemented

enhanced

Asset

Management

Policy

Framework and

fully

implemented

Barcoding and

Purchasing

Module

4 depts.

monitored and

assisted to

comply with Asset

Management

Policy Framework

and prescripts,

and to fully utilise

existing asset

register

4 depts.

monitored and

assisted to

comply with

Asset

Management

Policy

Framework and

prescripts, and

to fully utilise

existing asset

register

16 depts. 16 depts.

No. of quality trainings

and workshops

No. of quality

trainings and

workshops

conducted

2 Hardcat training 0 1 Asset

Management

workshop

2 Hardcat training

2 Hardcat

Training

2 Hardcat training 2 Hardcat

training

2 Hardcat training 1 Hardcat

training

7 Hardcat training 5 Hardcat training

Management status

reports on effective

utilisation of Asset

Management

practices, processes

and Asset

Management System

Management

status reports on

effective use of

Asset Manage-

ment practices,

processes and

Asset Manage-

ment System

1 1 1 1 1 1 1 1 4 reports 4 reports




3.2 PUBLIC PRIVATE PARTNERSHIPS (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.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Seminars/ workshops

conducted for

provincial

departments and

public entities

Number of seminars/

workshops

conducted for

provincial

departments and

public entities

Nil Nil Nil Nil 1 1 1 Nil 2 1

Number of seminars/

workshops conducted

for municipalities and

municipalities entities

Number of seminars/

workshops

conducted for

municipalities and

municipal entities

Nil 1 Nil 1 1 2 1 Nil 2 4

Reports for Provincial

Treasury

management and NT

PPP unit

Number of reports

for Provincial

Treasury

management and

NT PPP unit

3 3 3 3 2 3 2 3 10 12

Reports on closed

deal

Number of reports

on closed deal

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.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th QtrActual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Training SCM

practitioners in

Provincial

departments and

municipalities

Number of SCM

training sessions

1 1 1 12 1 4 1 9 4 training

sessions/

workshops

26

Information

sessions conducted

1 1 1 1 1 1 1 Nil 4 SCM forums for

departments and

municipalities

3

Number of

assessments

Number of

assessments

15 25 15 24 15 21 15 33 60 routine

assessments

reports

103

Number of policies

and practice notes

reviewed and

issued

Number of policies

and practice notes

reviewed and issued

1 1 1 5 1 1 1 2 Review 4 practice

notes

9




3.4 FINANCIAL REPORTING:

• To analyse province-wide compliance, implementation and maintenance of generally recognised 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.

Programme/ Sub-

programme output

Performance Measures 1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr Actual

Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4thQtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Consolidated

Financial

Statements

Consolidation of AFS:

a. Departments

b. Revenue Fund (RF)

c. Public entities

N/A N/A Compile

consolidated AFS

for FY11/12

Compiled AFS

for RF,

consolidated

AFS for depts.,

public entities

N/A N/A N/A N/A Compile

consolidated

AFS for

FY11/12

Compiled AFS

for FY11/12

AFS training

Workshops

Departments:

AFS support and training

to depts.

1 AFS training

Pre-audit review

16 depts.

Nil

Pre-audit review

16 depts.

N/A N/A N/A N/A 1 AFS training

0 2 AFS training

Pre-audit

review 16

depts.

0

Pre-audit

review 16

depts.

Audit outcomes Departments: Provincial

Audit Outcomes Analysis

N/A N/A Summary of Audit

outcome - 1

month after AG’s

report

Compiled and

submitted to

National

Treasury within

timeframe

Monitoring 16

depts. Audit

implementation

plans

Monitoring 16

depts. Audit

implementation

plans

N/A N/A Summary of

Audit outcome

1 month after

AG’s report.

Monitoring 16

depts. Audit

implementation

plans

Summary of

Audit outcome

1 month after

AG’s report.

Monitoring 16

depts. Audit

implementation

plans

Municipal Support

Programme

Implementation Support

of Monthly Reconciliation

monitoring and tracking

tools General Financial

Management Support to

municipalities

3 municipalities

2 municipalities

3 municipalities

2 municipalities

3 municipalities

2 municipalities

6 municipalities

reconciliation

and

implementation

support

2 municipalities

supported

3 municipalities

2 municipalities

3 municipalities

2 municipalities

3 municipalities

2 municipalities

3 municipalities

2 municipalities

Implementation

support in 12

municipalities

2 municipalities

per quarter

12

municipalities

2 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.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr

Actual Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th QtrPlanned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Number of policies

and practice notes

developed /

reviewed and

issued

Number of policies

and practice notes

developed /

reviewed and issued

4 policies and

practice notes

developed and

reviewed based

on need analysis

4 policies and

practice notes

developed and

reviewed based

on need analysis

(2 for Umvoti

Municipality; 2 for

KZN Sharks

Board)

4 policies and

practice notes

developed and

reviewed based

on need analysis

15 policies,

practice notes

developed and

reviewed

based on need

analysis (2

for Nquthu

Municipality; 2

for UMDA

public entity, 8

for depts)

4 policies and

practice notes

developed and

reviewed based

on need analysis

11 policies and

practice notes

developed and

reviewed

based on need

analysis (7

for

Umuziwabantu

Municipality; 4

for depts)

4 policies and

practice notes

developed and

reviewed based

on need analysis

12 policies and

practice notes

developed and

reviewed

based on need

analysis (4

for Ndwedwe

Municipality, 4

for Mfolozi

Municipality, 4

for depts.)

16 policies and

practice notes

developed and

reviewed

based on need

analysis

42 policies and

practice notes

developed and

reviewed based

on need analysis

Number of

municipalities

supported and

assistance provided

in review and

addressing of

needs relating to

their financial

management

policies

Number of

municipalities

supported and

assistance provided

in review and

addressing of needs

relating to their

financial

management

policies

1 1 municipality

1 public entity

1 1 municipality

1 public entity

1 1 1 2 4 5 municipalities

2 public entities




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.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr

Actual Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Fully functional

systems

Number of

initiatives/projects

implemented

ECM Phase 2 (1) ECM Phase 1-

96%

GWEA 40%

BACS VPN-

54%

BPM Phase 2 (1) ECM Phase

100%

GWEA 80%

BACS VPN-

80%

BCP review

RFID (2)

GWEA 100%

BACS VPN-

100%

Fax to Email -

100%

MSP (1) 1 As per MSP (5) 5 (ECM Phase1,

GWEA, Fax

to Email,

ECM Phase

2 (commenced)

Policy reviews Number of policy

reviews completed

1 2 (service

charter and

complaints

procedure)

1 1 (DRP) 1 2 (IT Project

Management

Methodology,

maintain Appl.

Software)

1 1 4 6

Compliance reports Number of

compliance reports

completed

3 4 (Vulnerability

Assessment,

Server Room

Access review,

BAS & Novell

user account

man. review)

3 4 (Cognos,

BAT, Internet

and Server

Room Access)

3 2 (Sdb and

PERSAL user

account

compliance)

3 1 12 11

Policy information

sessions

Number of

information sessions

conducted

2 2 (Internship

Induction &

Risk Man.

Forensic)

2 0 2 3 2 1 8 6

Mean time to

resolve (MTTR) -

provincial

Mean time to

resolve (MTTR)

8 hours 52min MTTR 8 hours 1 hour 8 hours 53 min 8 hours 8 hours 8 hrs per quarter 55 min per quarter

Network uptime Percentage network uptime

99% 100% 99% 98% 99% 100% 99% 99% 99% per quarter 99% per quarter

Percentage compliance with software licensing requirements

Percentage compliance with software licensing requirements

100% 100% 100% 100% 100% 100% 100% 100% 100% per quarter 100% per quarter

MTTR (transversal systems)

MTTR (transversal systems)

8-24 hr MTTR 2hr 31 min MTTR

8-24 hr MTTR 1hr 34 mins 8-24 hr MTTR 1hr 53 min 8-24 hr MTTR 8-24 hr MTTR 8-24 hr MTTR 1 hr 53 min




B.4 Programme 4: Internal Audit

Purpose : The Internal Audit componentprovides 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-

defense 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


Assurance Services

• Development of the Provincial Governance Framework which is yet to be rolled out.

• Good support by the Provincial Audit and Risk Committee and co-operation received from the

provincial departments.

• 222 internal audit reviews were conducted.

• Approximately R54 million was spent on assurance activities conducted, with a view to improve the

existing control environment within the provincial administration.




• Extension of scope to performance audits that focus on value for money spent on some of the key

service delivery programmes and projects in 2012/13 through the introduction of performance audits.

• Strengthening the IT control environment through introduction of IT audits and performance audits.

• Training of Internal Audit learners and interns placed on annual contracts, where 40 learners were

trained and most of them have already found permanent jobs.

• Training and development to permanent staff – e.g. the use of ACL tool and attendance of ISACA

conference to familiarise the IT auditors with the new COBIT 5.

• Successful enhancing of the skills levels of internal audit specialists, as well as increasing the

capacity of these scarce skills in the province. The unit now hasspecialist performance auditors and IT

auditors in-house.

Risk and Advisory Services

This sub-programme is tasked with assisting provincial departments, public entities and municipalities with

risk management services and forensic investigations.

The achievements of Risk and Advisory Services are as follows:

• During the period under review, the Risk and Advisory Services team assisted provincial departments

with a risk consolidation project. This project entailed consolidation of various pockets of risk

assessments into one risk register, and handing-over of these risk registers to provincial departments

for future maintenance and updating.

• The team has also been monitoring and reporting on progress made in the implementation of agreed-

upon risk mitigation plans. A total of 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 six public entities and municipalities with risk assessments during 2012/13.

• To date, all municipalities delegated to the province have risk profiles and registers which are utilised

to monitor progress on the implementation of the risk mitigation plans with the assistance of the team.

• As part of the implementation of the Provincial Risk Management Framework and the Municipal Risk

Management Framework, provincial departments and municipalities are continuing to receive

guidance and assistance to establish their own risk management functions, risk policies, and risk

oversight structures. A gap analysis on how these institutions complied with their respective risk

management frameworks has been completed for all 15 departments and 34 municipalities.




• Approximately 80 per cent of the provincial departments have appointed risk managers with the

assistance of the team.

• With regard to Operation Clean Audit, the unit commenced with the roll-out of the Municipalities’

Enterprise Risk Management Framework during 2012/13.

• The extent of the use of consultants was successfully minimised, as Treasury managed to secure

very effective permanent risk management specialists within the municipal support sub-component.

• Just below R5 million was spent to assist all municipalities with conducting risk and control

assessment workshops, some compliance reviews, training of audit committee members and internal

auditors as well as assisting with the performance of some assurance reviews, including IT audits in

some of the municipalities. The support programme for the year was very successful, though

sustainability is still a challenge due to a lack of capacity in those municipalities receiving support.

Forensic InvestigationServices

The Forensic Investigation teamwas 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, 172 requests with a total value of R1.600 billion to be investigated were received.

• 81 of these investigations were finalised.

• 25 of the 81 completed investigations were finalised during 2012/13 at a cost of R24.600 million. In a

given financial year, on average, Treasury spends approximately R26 million to complete the

investigations that can be done using existing capacity.

• 91 investigations are still in progress.

• 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. The

future plan is for the team to work with these departments to close the gaps that have been identified

as part of the review process.

• Training and development programmes were undertaken through the assistance of identified service

providers to enhance the skills of forensic investigators – Certified Fraud Examination.

• The current training programmes in progress relate to the post-graduate Diploma in Computer

Forensics.




Programme Four: Internal Audit

4.1 ASSURANCE SERVICES: To provide departments, municipalities and public entities with the following:

• 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.

Programme/ Sub-

programme output

Performance Measures 1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr

Actual Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Internal audit report on

performance

information

No. of audits on

predetermined

objectives completed as

per operational plan

0 0 0 0 0 3 20 13 20 16

Internal audit report on

performance

information

No. of projects

completed on the

design, implementation,

and effectiveness of

business ethics, related

objectives, programmes

and activities.

0 0 0 0 20 0 0 0 20 0

Audit Committee

reports to the cabinet

Annual Audit Committee

reports on clients’ areas

of risk management,

governance and internal

control submitted to

MEC: Finance

0 0 1 1 0 0 0 0 1 1




Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr

Actual Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

APP

Actual output

2012/13

Internal Audit Reports No. of risk based

audit assignments

completed per

operational plan

30 27 30 31 31 30 32 47 123 135

Accounting Officers’

reports

No. of half-yearly

Accounting Officers’

reports issued to

Management

20 0 0 0 20 0 0 16 40 16

No. of IA annual

operational plan and

rolling three-year

strategic plan

No. of IA annual

operational plan and

rolling three-year

strategic plan

developed and

approved

20 20 0 0 0 0 0 0 20 20

Minutes of meetings No. of meetings held

between clients and

Audit Committee

15 15 15 15 15 15 15 15 60 60

No of follow-up audits

conducted

No of follow-up

audits conducted per

operational plans

5 7 20 21 25 22 30 21 80 71

Training and

development

programmes

No. of training and

development

programmes

attended

3 3 3 4 3 3 3 3 12 13

An Independent

internal and external

quality assurance

review

No. of internal and

independent

external quality

assurance reviews

conducted.

0 0 1 0 0 4 1 0 2 4




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

Programme/ sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr

Actual Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

(APP)

Actual output

2012/13

No of enterprise wide

risk reports issued

Risk reports issued

for municipalities

10 8 10 12 10 22 10 2 40 44

Quarterly reports Updated risk reports

issued for depts. and

public entities

5 13 6 3 6 0 5 4 22 20

Consolidated risk

profiles

Quarterly risk follow-

up reports issued to

clients

16 15 16 15 16 15 16 15 64 60

Risk Management No. of consolidated

risk profiles

developed

0 0 0 1 1 0 0 0 1 1

Audit Committee

quarterly reports on

the clients’ areas of

risk management and

risk governance

Number of risk

management

maturity gap

analysis reports

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




Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr

Actual Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

(APP)

Actual output

2012/13

Number of follow-

ups on risk maturity

gap analysis

department and

public entities

6 0 5 15 5 15 5 0 21 30

Number of ERM

compliance

reviews/follow-up for

municipalities

10 0 10 0 10 9 10 25 40 34

Number of training

sessions conducted

Audit Committee

quarterly reports on

the clients’ areas of

risk management

and risk governance

1 15 1 15 1 15 1 15 4 60

Training held Number of training /

risk awareness on

governance and risk

management

sessions

4 7 4 12 4 5 3 5 15 29

Minutes of risk

management forum

and feedback

Number of risk

management forum

meetings held

1 0 1 1 1 1 1 2 4 4




4.2.2 FORENSIC SERVICES: To promote a culture of zero tolerance for fraud and corruption.

Programme/ Sub-

programme output

Performance

Measures

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr

Actual Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

(APP)

Actual output

2012/13

Internal Audit Reports

and an updated fraud

risk database

No of reviews on the

status of fraud

management in the

departments

0 13 8 14 0 0 8 0 16 27

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

Per client

request

3 Per client request 12 Per client request 1 Per client request 7 Per client request 23

Forensic Audit reports,

Audit committee

reports and

Accounting Officer

reports

Updated register of

forensic

investigations

1 1 0 0 1 1 0 0 2 2

Follow-up

investigations reports

Number of follow-

ups on completed

investigations

0 0 8 5 4 15 4 14 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.


• The department conducted community outreach events at various district municipalities

throughout the province. The purpose was to ensure the full consultation and participation of

community in the planning process of the department.

• The community outreach events were held at the following areas:Emadlangeni, Edumbe,

Umhlathuze, Endumeni, Ukhahlamba, Empangeni/Ngwelezane, Jozini,Msunduzi,Msunduzi World

Aids Day,Umdoni andMooi-Mpofana.




Programme Five: Growth and Development

5.1 GROWTH AND DEVELOPMENT: 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

1st Qtr Planned

Output

1st Qtr Actual

Output

2nd Qtr Planned

Output

2nd Qtr

Actual Output

3rd Qtr Planned

Output

3rd Qtr Actual

Output

4th Qtr Planned

Output

4th Qtr Actual

Output

Target for

2012/13 as per

(APP)

Actual output

2012/13

100% response to

determinations of

Technical Committee

No. of events co-

ordinated

successfully

1 1 0 3 1 3 3 2 5 9


REPORT OF THE AUDIT COMMITTEE FOR THE YEAR ENDED 31 MARCH 2013


PART C: REPORT OF THE AUDIT COMMITTEE

The KwaZulu-Natal Provincial Audit and Risk Committee is pleased to present its report for the

financial year ended 31 March 2013.

Provincial Audit and Risk Committee Members and Att endance

The Provincial Audit and Risk Committee (PARC) consists of the members listed hereunder. The

PARC is split into three Cluster Audit and Risk Committees (the CARCs) which consist of

members of the PARC,areresponsible for the Governance and Administration, Social and

Economic Clusters, respectively, and reporting into the PARC. The Chairman of the PARC is also

the Chairman of the different CARCs and attends all CARC meetings. The CARC and the PARC

are required to meet at least four times and two times, respectively, in a financial year. During the

financial year ending 31 March 2013, a total of sixteen meetings were held, namely, two PARC

meetings, twelve CARC meetings, and two special meetings. Members attended the meetings as

reflected below:

Surname and

initial

PARC CARC Special Total no.

of

meetings

Total no. of

meetings

attended No. of

meetings

held

Attended No. of

meetings

held

Attended No. of

meetings

held

Attended

Ms T.Tsautse

(Chairman)

2 2 12 12# 2 2 16 16

Ms M.Mothipe 2 2 4 4* 2 2 8 8

Ms N.Jaxa 2 2 4 4* 2 2 8 8

Mr L. Mangquku 2 2 4 4* 2 2 8 8

Mr T.Boltman 2 2 4 4* 2 2 8 8

Mr F.Docrat 2 2 4 4* 2 2 8 8

Mr V.Naicker 2 2 4 2* 2 2 8 6

* - 4meetings per cluster were held # - Chairman attends all CARC meetings Provincial Audit and Risk Committee Responsibility

The Provincial Audit and Risk Committee reports that it complied with its responsibilities arising

from the Public Finance Management Act, No.1 of 1999 (PFMA), Treasury Regulations, including

any other statutory regulations. 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 Effectiveness of Internal Control

The systems of internal control are the responsibility of the department’s management and are

designed to provide effective assurance that assets are safeguarded and that liabilities and

working capital are efficiently managed. In line with the requirements of the PFMA and the

principles of the King III Report on Corporate Governance, the Internal Audit Function provides the

Provincial Audit and Risk Committee and the departmental management with assurance that the

systems of internal controls are appropriate and effective. This is achieved by means of the risk

management process, as well as the identification of corrective actions and suggested

enhancements to the controls and processes. From the various reports of the Internal Auditors,

and the Report and Management Letter of the Auditor-General on the Annual Financial

Statements, it was noted that the systems of internal control and financial internal controls were

not effective and inadequate in certain areas for the entire year under review, as control

deficiencies were detected in the following significant areas:

• Fleet Management

• IT Application Controls

The quality of “In Year Monitoring” and monthly / q uarterly reports submitted in terms of

the Treasury Regulations and the Division of Revenu e Act

The Provincial Audit and Risk Committee, through the Internal Audit Function, was satisfied with

the content and quality of monthly and quarterly reports prepared and issued by the Accounting

Officer and the department during the year under review.

Audit of Performance Information

The monitoring of the department’s performance is a key function of the executive management of

the department. The Provincial Audit and Risk Committee has no direct line of responsibility over

the department’s performance. However, the Provincial Audit and Risk Committee is responsible

for ensuring, principally through the Internal Audit Function that the systems of performance

management, measurement and reporting; as well as the systems of internal control that underpin

the performance management framework of the department, remain robust and are reviewed

routinely in the internal audit plans.

The Committee has accepted the responsibility of ensuring that adequate reporting on

performance information is in line with its mandate and charter.

The Committee reviewed the reports relating to performance information and noted no material

deficiencies.




Internal Audit Function

The Provincial Audit and Risk Committee provides oversight and monitors the activities of the

Internal Audit Function. Consequently, the Committee is able to report on the effectiveness and

efficiency of the function.

The 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.

Risk Management Function

Risk Management is a proactive discipline that is intended to provide reasonable assurance that

the department will achieve its objectives.

During this financial year, the Committee reviewed risk reports of the department on a quarterly

basis, with particular focus on:

- Reviewing the Risk Maturity Gap Analysis Report as compiled and presented by the PIAS to

determine if this department has key structures and policies to take over its risk management

responsibilities.

The result of this analysis was discussed with the department’s management, and the

department was advised to build its internal risk management capacity through, among other

things, the appointment of a Risk Manager at an appropriate level – i.e. the Risk Manager

should be appointed at level 13 and should report directly to the HOD.

- Reviewing progress report on the implementation of risk mitigation plans. The department was

urged to finalise the outstanding risk mitigation plans and to update its risk register with

completed risk mitigations plans and emerging risks.

Other Governance Issues

As part of its governance responsibilities, the Committee also monitors the fraud prevention

strategies that have been developed and implemented by provincial departments, and these

responsibilities include monitoring the implementation of recommendations arising from forensic

investigations.

During the period under review, the Committee noted that the department had 5 investigations that

were completed, all of which were conducted by the Provincial Treasury’s Internal Audit Function.




The department was urged to implement recommendations arising from the completed

investigation, and to provide the Internal Audit Function with a detailed list of all other

investigations being conducted internally or by other relevant authorities.

Evaluation of Financial Statements

The Provincial Audit and Risk Committee reviewed the Annual Financial Statements of the

department, as well as the Auditor-General’s management report together with management’s

response thereto. The Provincial Audit and Risk Committee concurs and accepts the Auditor-

General’s conclusions on the annual financial statements, and is of the opinion that the audited

annual financial statements be accepted and read together with the report of the Auditor-General.

__________________________________________ Chairperson: Provincial Audit & Risk Committee

Date: 31 July 2013

KWAZULU NATAL PROVINCIAL TREASURY VOTE 6

REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2013


Report by the Accounting Officer to the Executive A uthority and the KwaZulu-Natal Legislature. 1. GENERAL REVIEW OF THE STATE OF FINANCIAL AFFAIRS

The department had an appropriated budget of R613,235 million (2011/12: R510,024 million) for

the 2012/13 financial year. The expenditure for the year totalled R518,454 million (2011/12:

R390,325 million).

The department had a net under spending/saving of R94,781 million spread across all

programmes. This was mainly due to allocations done in the Adjustments Estimate for various

once-off special projects that started late or were delayed as well as a saving on the provision

for servicing the bank overdraft resulting from the improved overall cash position of the Province.

The special projects referred to above include the following:

• The Thuthuka bursary initiative with the South Africa Institute of Chartered Accountants to

train more Accountants due to a lower than expected uptake.

• Slower than anticipated claims from the Infrastructure Crack Team service providers for

services rendered at municipalities.

• The provision of assistance to Small Businesses to obtain BEE verification certificates was

delayed due to the difficult process to evaluate potential service providers.

• The airport upgrading initiatives were delayed due to a late appointment of service providers

by the relevant municipalities.

• Slower than anticipated claims from the service providers for forensic investigation services.

• Two commercial initiatives in the Greater Kokstad area due to planning delays at the

municipality and the community participation process.

The following post Adjustments Estimate virements were made between programmes:

a) A virement of R5,457 million was made from Programme 1: Administration to

Programme 3: Financial Management.

• An amount of R5,377 million was moved within Goods and services to assist the

Department of Health with the reconciliation of its movable assets.

• Amounts of R37 000, R41 000 and R12 000 were moved within the economic

classification: Payments for capital assets for office furniture and computers.




b) An amount of R177 000 was moved from Programme 2: Fiscal Resource Management

within the economic classification: Payments for capital assets to Programme 3: Financial

Management for the procurement of a server for the computer network.

c) An amount of R40 000 was moved from Programme 3: Financial Management within the

economic classification Transfers to: Households to Programme 2: Fiscal Resource

Management (R11 000) and Programme 4: Internal Audit (R29 000) for leave gratuities

resulting from unplanned staff exits.

d) An amount of R394 000 was moved from Programme 4: Internal Audit within the

economic classification: Payments for capital assets to Programme 3: Financial

Management for the procurement of an internet connector licence required to link

departments to the Business Process Mapping processors.

Various post Adjustments Estimate virements were made between economic classifications

within the various programmes.

All virements were approved by Accounting Officer of the department in terms of Section 43(1)

of the Public Finance Management Act.

The revenue collected during the year was R45,343 million compared to R56,253 million of the

previous year. The main source of revenue is the interest earned on the Revenue Fund Bank

Accounts which were positive throughout the year.

The department had minimal payables at the end of the financial year.

There was no fruitless, wasteful or irregular expenditure not condoned during 2012/13.

2. SERVICES RENDERED BY THE DEPARTMENT

The department plays a vital oversight role over the financial and fiscal management of the

provincial departments and provincial public entities and, since July 2005, this was extended to

include the local sphere of government. The services rendered by the department are reflective

of the programme structure of the department which has been aligned to the National Treasury

requirements and include:

� The development, implementation and monitoring of fiscal, financial management and

governance policies for the KwaZulu-Natal provincial government and its public entities.

� The allocation of provincial funds by means of budget preparation and implementation;




� Providing treasury support services to the provincial departments, public entities and

municipalities;

� Maintaining and supporting the provincial financial management systems;

� Provision of internal audit and risk management services to the provincial government

including municipalities;

� Funding and monitoring other structures responsible for the delivering of services in the

province;

� Managing the provincial revenue fund; and

� Monitoring of budget processes and provision of financial and Supply Chain Management

support services to municipalities.

3. CAPACITY CONSTRAINTS

The vacancy rate in the department has improved to an average rate of 15.23 per cent

compared to 15.62 per cent in 2011/12. The vacancy rate of senior management posts has also

improved from a 28.3 per cent vacancy in 2011/12 to 12 per cent in 2012/13. It is important to

note that significant efforts have been undertaken to fill the vacancies, but this is still being

hampered by a high staff turnover rate and, in many instances, a general skills shortage. The

filling of the remaining posts will again be a priority in 2013/14 to ensure that the appropriate

support is provided to the department’s clients. In addition, appropriate service providers will

again be engaged to ensure continued service delivery in critical areas until the vacancies can

be filled, particularly in internal auditing, municipal support and financial management.

4. UTILISATION OF DONOR FUNDS

No donor funds were received by the department during the year under review.

5. TRADING ENTITIES AND PUBLIC ENTITIES

There are no trading entities or public entities under the control of the department.

6. ORGANISATIONS TO WHOM TRANSFER PAYMENTS HAVE BEE N MADE

The following transfers were made to municipalities for the upgrading of regional airports in

those municipalities:

• R574,000 was paid to the uMsunduzi Municipality for the Pietermaritzburg Airport.




• R19,661 million was paid to the Zululand District Municipality for the Ulundi Airport.

• R7,777 million was paid to the uMhlathuze Municipality for the Richards Bay Airport.

7. PUBLIC PRIVATE PARTNERSHIPS (PPP)

The department did not conclude any PPP agreement during the year.

8. CORPORATE GOVERNANCE ARRANGEMENTS

The risk profile was reviewed and serves as a platform and foundation in identifying, managing

and controlling the business risks of the department. The department inculcated the culture of

risk management through continued review of risk profile and implementation of risk mitigation

strategies. The department reported to the Audit Committee on how it manages its risk mitigation

strategies. As part of good corporate governance strategy, the key management personnel have

disclosed their financial interests. The disclosure was extended to all senior managers in respect

of related party transactions to their close family members. In enhancing IT governance, the

department continued with a project that aims to strengthen the IT networks of the financial

systems.

The department complies with monthly, quarterly and annual reporting requirements for financial

and non-financial information as required by the PFMA of 1999. The department has policies in

place to manage and control its resources including assets, liabilities, revenue, expenditure and

human resources. The department continued to apply and adhere to supply chain management

requirements in its procurement. To manage conflict of interest, all bid committee members are

required to declare their interest upfront during the adjudication of bids.

The Head of Department is not the Accounting Officer of the department and does not account

on the issues of the department’s budget. Responsibility Managers are appointed under each of

five programmes who undertake financial management in their respective sub-programmes.

The overall responsibility of the management of the budget rests with the Senior General

Manager: Financial Management, appointed in terms of section 36(3) of the PFMA of 1999 as

the Accounting Officer, assisted by the Chief Financial Officer of the department. The structure

which is currently in place ensures that there are adequate controls in place to regulate issues of

accountability and responsibility as well as to ensure that managers are empowered to manage

and ultimately be held accountable for the decisions which they take and implement.




9. DISCONTINUED ACTIVITIES

There were no activities discontinued during the year 2012/13.

10. NEW ACTIVITIES

There were no new activities during the year under review.

11. ASSET MANAGEMENT

The department has fully complied with minimum requirements of the asset management

guidelines.

12. INVENTORIES

All inventory opening and closing balances, together with movements for the year will be

reflected in the Annexure on Inventory.

13. EVENTS AFTER THE REPORTING DATE

There are no events subsequent to the reporting date.

14. INFORMATION ON PREDETERMINED OBJECTIVES

The department has processes in place to monitor record and report pre-determined objectives

in line with the approved policy. The performance targets are contained in the Annual

Performance Plan of the department. Managers are reporting on a quarterly basis on the

performance of their units against planned activities and targets contained in the Annual

Performance Plan. Quarterly, financial and non-financial information are submitted to the

Resource Management Branch in the Treasury for discussion at the MTEC meetings with the

department.

15. PROVINCIAL PUBLIC ACCOUNTS COMMITTEE (PPAC) RES OLUTIONS

The department has no outstanding PPAC resolutions relating to Vote 6. The department is,

however, required in terms of the various transversal resolutions on irregular expenditure, to

investigate and report on the irregular expenditure of all departments and public entities. The

process of analysing the circumstances, extent and nature of the transgressions resulting in the

irregular expenditure is being undertaken in consultation with the relevant departments and

interim reports are submitted to the PPAC on an on-going basis.




As requested by the PPAC, the department is also assisting the Departments of Health and

Education in the assets management project and the leave commitment verification exercise,

respectively.

16. PRIOR MODIFICATIONS TO AUDIT REPORTS

The department received a clean audit in 2011/12 and all matters raised in the management

report of the Auditor-General have been satisfactory disposed of.

17. EXEMPTIONS AND DEVIATIONS RECIEVED FROM NATIONA L TREASURY

No exemptions have been requested from National Treasury by the department.

18. INTERIM FINANCIAL STATEMENTS

The department has prepared quarterly interim financial statements in 2012/13. All four interim

financial statements were submitted to the executive authority and the Provincial Audit

Committee.

19. OTHER

The department during 2012/13, again assisted the Departments of Social Development and

Sport and Recreation in their Supply Chain Management functions resulting from the suspension

of some staff and capacity constraints.

20. APPROVAL

The Annual Financial Statements set out on pages 75 to 136 have been approved by the

Accounting Officer.

Mr H.A.W. Conradie Acting Accounting Officer 31 May 2013


REPORT OF THE AUDITOR-GENERALFOR THE YEAR ENDED 31 MARCH 2013


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 75 to 136, which comprise the appropriation statement, the statement of financial

position as at 31 March 2013, the statement of financial performance, statement of changes

in net assets and the cash flow statement for the year then ended, and 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 of the financial statements in

accordance with the Departmental financial reporting framework prescribed by the National

Treasury and the requirements of the Public Finance Management Act of South Africa, 1999

(Act No. 1 of 1999)(PMFA) and the Division of Revenue Act of South Africa, 2012 (Act No. 5

of 2012)(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 withthe 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 KwaZulu-Natal Provincial Treasury’s preparation 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

KwaZulu-Natal Provincial Treasury’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 2013, and its financial

performance and cash flows for the year then ended in accordance with the Departmental

financial reporting framework prescribed by the National Treasury and the requirements of

the PFMA and 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 KwaZulu-Natal Provincial Treasury has

materially under-spent the budget of the vote by R94,89 million. This is mainly attributable

to the following delays experienced in the filling of vacant funded posts; approval for the

extension of the Pietermaritzburg Airport as well as the appointment of service providers for

other infrastructure projects; procurement of the E-Procurement Tool and the submission of

invoices from service providers for municipal support.

Additional matters

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

Unaudited supplementary schedules

10. The supplementary schedules set out on pages 128 to 136do not form part of the financial

statements and are presented as additional information. I have not audited these schedules

and, accordingly I do not express an opinion thereon.




Financial reporting framework

11. The financial reporting framework prescribed by the National Treasury and applied by the

KwaZulu-Natal Provincial Treasury is a compliance framework. The wording of my opinion

on a compliance framework should reflect that the financial statements have been prepared

in accordance with this framework and not that they “present fairly”. Section 20(2)(a) of the

PAA, however, requires me to express an opinion on the fair presentation of the financial

statements. The wording of my opinion therefore reflects this requirement.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

12. In accordance with the PAA and the General Notice issued in terms thereof, I report the

following findings relevant to performance against predetermined objectives, compliance

with laws and regulations and internal control, but not for the purpose of expressing an

opinion.

Predetermined objectives

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

information in the annual performance report as set out on pages09 to 60 of the annual

report.

14. The reported performance against predetermined objectives was evaluated against the

overall criteria of usefulness and reliability. The usefulness of information in the annual

performance report relates to whether it is presented in accordance with the National

Treasury’s annual reporting principles and whether the reported performance is consistent

with the planned objectives. The usefulness of information further relates to whether

indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and

time bound) and relevant as required by the National TreasuryFramework for managing

programme performance information.

The reliability of the information in respect of the selected programmes is assessed to

determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and

complete).

15. There were no material findings on the annual performance report concerning the

usefulness and reliability of the information.




Compliance with laws and regulations

16. I did not identify any instances of material non-compliance with specific matters in key

applicable laws and regulations, as set out in the General Notice issued in terms of the

PAA.

Internal control

17. I did not identify any deficiencies in internal control which I considered sufficiently significant

for inclusion in this report.

OTHER REPORTS

Investigation

18. One investigation into alleged fraud and corruption in supply chain management was

completed.

Pietermaritzburg

31 July 2013


APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2013

2012/13 AFS KZN Provincial Treasury - 75 -

Appropriation per programme

2012/13 2011/12

APPROPRIATION STATEMENT 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 100,588 (5,367) 95,221 87,231 7,990 91.6% 91,718 78,484 Transfers and subsidies 12,236 12,236 9,005 3,231 73.6% 468 453 Payment for capital assets 1,770 (90) 1,680 1,669 11 99.3% 1,675 1,424 Payment for financial assets

114,594 (5,457) 109,137 97,905 11,232 93,861 80,361 2. Fiscal Resource Management

Current payment 94,846 94,846 76,716 18,130 80.9% 59,573 31,778 Transfers and subsidies 13 11 24 23 1 95.8% Payment for capital assets 315 (177) 138 131 7 94.9% 534 374 Payment for financial assets 129 128

95,174 (166) 95,008 76,870 18,138 60,236 32,280 3. Financial Management

Current payment 220,944 5,367 226,311 207,790 18,521 91.8% 207,945 162,478 Transfers and subsidies 1,357 (40) 1,317 555 762 42.1% 1,300 689 Payment for capital assets 3,090 661 3,751 3,749 2 99.9% 4,258 1,536 Payment for financial assets 92 91 225,391 5,988 231,379 212,094 19,285 213,595 164,794




Appropriation per programme 2012/13 2011/12

APPROPRIATION STATEMENT Adjusted Appropriation

Shifting of Funds


Actual Expenditure


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 106,159 106,159 92,760 13,399 87.4% 95,565 74,671 Transfers and subsidies 29 29 29 100.0% Payment for capital assets 758 (394) 364 352 12 96.7% 691 485 Payment for financial assets 14 14 13 1 92.9% 14 13

106,931 (365) 106,566 93,154 13,412 96,270 75,169 5. Growth and Development

Current payment 17,282 (1,000) 16,282 10,305 5,977 63.3% 7,024 6,457 Transfers and subsidies 53,863 1,000 54,863 28,012 26,851 51.1% 39,038 31,264 Payment for capital assets Payment for financial assets

71,145 71,145 38,317 32,828 46,062 37,721 TOTAL 613,235 613,235 518,340 94,895 84.5% 510,024 390,325




2012/13 2011/12

Final Appropriation

Actual Expenditure

Final Appropriation

Actual Expenditure

TOTAL (brought forward) 613,235 518,340 510,024 390,325 Reconciliation with statement of financial performa nce ADD Departmental receipts 45,343 56,253

Actual a mounts per statement of financial performance (tota l revenue) 658,578 566,277

ADD

Aid assistance

Direct Exchequer payments

Prior year unauthorised expenditure approved without funding

Actual amounts per statement of financial performance (total expen diture) 518,340 390,325




Appropriation per economic classification

2012/13 2011/12

Adjusted

Appropriation

Shifting of

Funds

Virement Final

Appropriation

Actual

Expenditure

Variance Expenditure

as % of final appropriation

Final

Appropriation

Actual

expenditure

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

Current payments

Compensation of employees 183,479 183,479 163,143 20,336 88.9% 143,501 127,078

Goods and services 352,040 (1,000) 351,040 311,659 39,381 88.8% 289,324 225,784

Interest and rent on land 4,300 4,300 4,300 29,000 1,006

Transfers and subsidies

Provinces and municipalities 53,877 1,000 54,877 28,026 26,851 51.1% 39,053 31,264

Households 13,592 13,592 9,598 3,994 70.6% 1,753 1,142

Payments for capital assets

Machinery and equipment 5,933 (394) 5,539 5,507 32 99.4% 6,633 3,294

Software and other intangible assets 394 394 394 100.0% 525 525

Payments for financial assets 14 14 13 1 92.9% 235 232

Total 613,235 613,235 518,340 94,895 84.5% 510,024 390,325




2012/13 2011/12

Detail per sub-programme 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

PROGRAMME 1: ADMINISTRATION

1.1 Office of the MEC

Current payment 25,480 (3,559) 21,921 21,902 19 99.9% 21,390 18,141


Payment for capital assets 838 (58) 780 778 2 99.7% 571 381

Payment for financial assets

1.2 Head of the Department

Current payment 8,185 (475) 7,710 6,722 988 87.2% 6,976 5,687




1.3 Chief Financial Office

Current payment 21,374 (3,476) 17,898 13,296 4,602 74.3% 22,856 17,186

Transfers and subsidies 394 (25) 367 361 6 98.4%

Payment for capital assets 126 (53) 73 73 100.0% 120 103





2012/13 2011/12


Shifting of Funds


Actual Expenditure


final

appropriation

Final Appropriation

Actual Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 1.4 Human Resource Management

Current payment 14,305 (41) 14,264 11,884 2,380 83.3% 12,143 11,022

Transfers and subsidies 11,830 11,830 8,605 3,225 72.7% 453 453

Payment for capital assets 100 100 100 100.0% 177 134


1.5 Corporate Services

Current payment 31,244 2,184 33,428 33,427 1 100.0% 28,353 26,448

Transfers and subsidies 14 25 39 39 100.0% 15

Payment for capital assets 574 58 632 632 100.0% 754 754


TOTAL 114,594 (5,457) 109,137 97,905 11,232 89.7% 93,861 80,361




2012/13 2011/12

Economic classification 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


Goods and services 54,446 (5,367) 49,079 43,469 5,610 88.6% 51,890 42,548

Interest and rent on land

Transfers and subsidies to:

Provinces and municipalities 14 14 14 100.0% 15

Households 12,222 12,222 8.990 3,232 73.6% 453 453

Gifts and donations

Payment for capital assets

Machinery and equipment 1,770 (90) 1,680 1,669 11 99.3% 1,675 1,424

Software and other intangible assets

Payments for financial assets

Total 114,594 (5,457) 109,137 97,905 11,232 89.7% 93,861 80,361




2012/13 2011/12


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

PROGRAMME 2: FISCAL RESOURCE MANAGEMENT

2.1 Programme Support

Current payment 1,220 1,220 751 469 61.6% 3,444 548


Payment for capital assets 34 (28) 6 6 23


2.2 Economic Analysis

Current payment 27,458 27,458 19,489 7,969 71.0% 8,084 4,030



Payment for financial assets 78 78

2.3 Public Finance

Current payment 11,991 11,991 9,708 2,283 81.0% 10,063 9,238




2.4 Municipal Finance

Current payment 54,177 54,177 46,768 7,409 86.3% 37,982 17,962

Transfers and subsidies 13 11 24 23 1 95.8%



TOTAL 95,174 (166) 95,008 76,870 18,138 80.9% 60,236 32,280




2012/13 2011/12


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


Goods and services 58,061 58,061 46,433 11,628 80.0% 34,027 10,587



Provinces and municipalities

Households 13 11 24 23 1 95.8%

Gifts and donations


Machinery and equipment 315 (177) 138 131 7 94.9% 534 374


Payments for financial assets 129 128

Total 95,174 (166) 95,008 76,870 18,138 80.9% 60,236 32,280




2012/13 2011/12


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

PROGRAMME 3: FINANCIAL MANAGEMENT

3.1 Financial Assets and Liability Management

Current payment 20,519 (480) 20,039 14,081 5,958 70.3% 44,125 14,506

Transfers and subsidies 1,332 (66) 1266 506 760 40.0% 1,281 671

Payment for capital assets 48 (48) 158 84


3.2 Public, Private Partnerships

Current payment 3,652 (230) 3,422 3,184 238 93.0% 4,072 3,021


Payment for capital assets 25 42 67 67 100.0% 20


3.3 Supply Chain Management

Current payment 51,621 51,621 41,436 10,185 80.3% 28,827 27,530

Transfers and subsidies 17 26 43 42 1 97.7% 15 14

Payment for capital assets 85 105 190 189 1 99.5% 330 318





2012/13 2011/12

Detail per sub- programme Adjusted Appropriation

Shifting of Funds


Actual Expenditure


final

appropriation

Final Appropriation

Actual Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 3.4 Financial Reporting

Current payment 25,971 6,538 32,509 31,536 973 97.0% 22,793 12,496

Transfers and subsidies 8 8 7 1 87.5% 4 4



3.5 Norms and Standard

Current payment 4,702 (161) 4,541 3,533 1,008 77.8% 4,449 3,804




3.6 Support and Interlinked

Financial Systems

Current payment 114,479 (300) 114,179 114,020 159 99.9% 103,679 101,121


Payment for capital assets 2,712 583 3,295 3,295 100.0% 3,575 1,055


Total 225,391 5,988 231,379 212,094 19,285 91.7% 213,595 164,794




2012/13 2011/12


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


Goods and services 168,162 5,367 173,529 164,975 8,554 95.1% 140,143 126,688

Interest and rent on land 4,300 4,300 4,300 29,000 1,006



Households 1,357 (40) 1,317 556 761 42.2% 1,300 689

Gifts and donations


Machinery and equipment 3,090 267 3,357 3,355 2 99.9% 3,733 1,011

Software and other intangible assets 394 394 394 100.0% 525 525

Payments for financial assets 92 91

Total 225,391 5,988 231,379 212,094 19,285 91.7% 213,595 164,794




2012/13 2011/12


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

PROGRAMME 4: INTERNAL AUDIT

4.1 Assurance Services

Current payment 59,579 59,579 53,715 5,864 90.2% 48,271 40,480

Transfers and subsidies 29 29 29 100.0%


Payment for financial assets 14 14 13 1 92.9% 4 3

4.2 Risk Management

Current payment 46,580 46,580 39,045 7,535 83.8% 47,294 34,191




Total 106,931 (365) 106,566 93,154 13,412 87.4% 96,270 75,169




2012/13 2011/12


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


Goods and services 54,089 54,089 46,477 7,612 85.9% 56,240 39,504




Households 29 29 29 100.0%

Gifts and donations


Machinery and equipment 758 (394) 364 352 12 96.7% 691 485


Payments for financial assets 14 14 13 1 92.9% 14 13

Total 106,931 (365) 106,566 93,154 13,412 87.4% 96,270 75,169




2012/13 2011/12


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

PROGRAMME 4: INTERNAL AUDIT

5.1 Budget Communications

Current payment 7,094 7,094 6,032 1,062 85.0% 7,024 6,457




5.2 Special Infrastructure Projects

Current payment 8,188 (1000) 7,188 2,273 4,915 31.6%

Transfers and subsidies 53,863 1,000 54,863 28,012 26,851 51.1% 39,038 31,264



5.3 Strategic Cabinet Initiatives

Current payment




5.4 Air Shows

Current payment 2,000 2,000 2,000 2,000 100.0%




Total 71,145 71,145 38,317 32,828 53.9% 46,062 37,721




2012/13 2011/12


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

Goods and services 17,282 (1000) 16,282 10,305 5,977 63.3% 7,024 6,457



Provinces and municipalities 53,863 1,000 54,863 28,012 26,851 51.1% 39,038 31,264

Households

Gifts and donations


Machinery and equipment


Payments for financial assets

Total 71,145 71,145 38,317 32,828 53.9% 46,062 37,721


NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR E NDED 31 MARCH 2013


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 109,137 97,905 11,232 10.29%

Administration was under-spent by R11.2 million. The under-spending was mainly attributed to delays

in the filling of funded vacant posts as a result of staff turnover, shortage of skills, delays in organisational restructuring of all Provincial Treasuries, and unavailability of office space. There was also lower printing and travel costs as a result of the implementation of stringent cost-cutting measures, lower than anticipated audit (as a result of the audit process being shorter than originally anticipated) and legal costs, as well as under-spending on the Thuthuka Bursary fund.

Fiscal Resource Management 95,008 76,870 18,138 19.09% Fiscal Resource Management was under-spent at year-end by R18.1 million as a result of non filling of

funded vacant posts due to lack of suitable candidates, as well as delays in the receipt of invoices in respect of Infrastructure Crack Team projects at municipalities, totalling R7 million. Also, projects under the Municipal Support Programme (MSP), such as cashflow management, were under-spent by R2,4 million due to the late receipt of invoices.

Financial Management 231,379 212,094 19,285 8.33% Financial Management was under-spent by R19.3 million as a result of savings in respect of the unused

allocation totalling R4.3 million on interest on overdraft, attributed to the improvement in the funds available in the Pay Master's General (PMG) and the Inter-Government Cash Co-ordination (IGCC) accounts, resulting in the province earning interest as opposed to paying it. Also, the process of procuring a service provider the E-Procurement Tool project took longer than expected, thus under-spending of R6 million against this project occurred. Contract Management was under-spent by R2.4 million due to invoices from service providers not being received by year-end. A roll-over in respect of this has been requested. There was under-spending of R5.6 million on Compensation of employees due to lack of suitably qualified candidates, as well as under-spending of R871 000 in respect of lower than budgeted staff exit packages, also accounting for the under-spending at year-end.




Internal Audit 106,566 93,154 13,412 12.59% Internal Audit was under spent at year-end by R13.4 million, due to savings emanating from the non-

filling of funded vacant posts due to difficulty in finding suitably qualified candidates, as well as high staff

turnover. Also, there were delays in the submission of invoices from service providers for internal audit

projects, such as undertaking audits and forensic investigations.

Growth and Development 71,145 38,317 32,828 46.14% Growth and Development was under-spent by R32.8 million, due to delays in the approval of the new

Airport Master Plan for extension of the Pietermaritzburg Airport and the Environmental Impact

Assessments (EIA) report, delays in the appointment of service providers by the Greater Kokstad

Municipality for the Shayamoya Eco-complex, delays in obtaining council's approval for the newly

identified site for the development of the light industrial park at Bhongweni in the Greater Kokstad

Municipality, delays in the receipts of invoices from Transactional Advisors, who undertook the

feasibility study for the provincial Precinct Office Park project. Funds of R3.3 million were allocated for

upgrading of the Richards Bay and Margate airports. An amount of R1 million was spent on Richards

Bay airport and the remaining R2.3 million was not spent in respect of Margate airport, thus a roll-over

request has been requested for upgrading to take place in 2013/14.

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 538,819 474,802 64,017 11.88%

Compensation of employees 183,479 163,143 20,336 11.08%

Goods and services 351,040 311,659 39,381 11.22%

Interest and rent on land 4,300 4,300 100.0%

Compensation of employees was under-spent by R20.3 million due to delays in the filling of funded

vacant posts resulting from staff turnover, difficulty in finding suitably qualified candidates and delays in

the finalisation of the organisational restructuring of all Provincial Treasuries.

Good and services reflects under-expenditure of R39.4 million due to lower than anticipated audit

costs, savings from advertisements, travel and printing costs as a result of stringent cost-cutting, delays

in the submission of invoices in respect of the Infrastructure Crack Team projects at municipalities,

totalling R7 million, committed projects under the MSP, totalling R2.4 million, as well as internal audit

and forensic investigations. The appointment of service providers for the E-Procurement Tool also took

longer than expected.

Interest and rent on land reflects a saving of R4.3 million relating to an improvement in the funds

available in the PMG and IGCC accounts.




Transfers and subsidies 68,469 37,624 30,845 45.05%

Provinces and municipalities 54,877 28,026 26,851 48.93%

Households 13,592 9,598 3,994 29,38%

Provinces and municipalities reflects under-spending of R26.9 million resulting from delays in the

appointment of service providers for the Shayamoya Eco-complex at Kokstad, delays in the

commencement of a light industrial park at Bhongweni, as well as delays in the development of the

Pietermaritzburg airport resulting from delays in the approval of the Airport Master Plan and EIA. Also,

delays in the receipt of invoices in respect of work done on the Prince Mangosuthu Buthelezi and

Richards Bay airports contributed to the year-end under-expenditure.

Households was under-spent at year-end by R4 million mainly due to the delays in finalisation of

recruitment process for the Thuthuka Bursary Fund by the South African Institute of Chartered

Accountants (SAICA). Due to the under-spending at year-end against this project, the department has

requested a roll-over of R3.2 million.

Payments for capital assets 5,933 5,901 32 0.54%

Machinery and equipment 5,539 5,507 32 0.58%

Software and other intangible assets 394 394 0 0.00%

Machinery and equipment was under-spent at year-end by R32 000 resulting from the late delivery of

computer equipment.

Payments for financial assets 14 13 1 7.14%

Payment for financial assets was under-spent by R1 000 due to an-overprovision for thefts and losses.

613,235 518,340 94,895 15.47%


STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR END ED 31 MARCH 2013


PERFORMANCE Note 2012/13 2011/12 R'000 R'000 REVENUE

Annual appropriation 1 613,235 510,024 Departmental revenue 2 45,343 56,253 TOTAL REVENUE 658,578 566,277 EXPENDITURE

Current expenditure Compensation of employees 3 163,143 127,078 Goods and services 4 311,659 225,784 Interest and rent on land 5 1,006 Total current expenditure 474,802 353,868 Transfers and subsidies Transfers and subsidies 7 37,624 32,406 Total transfers and subsidies 37,624 32,406 Expenditure for capital assets Tangible capital assets 8 5,507 3,294 Software and other intangible assets 8 394 525 Total expenditure for capital assets 5,901 3,819 Payments for financial assets 6 13 232 TOTAL EXPENDITURE 518,340 390,325 SURPLUS/(DEFICIT) FOR THE YEAR 140,238 175,952

Reconciliation of Net Surplus/(Deficit) for the yea r

Voted funds 94,895 119,699

Annual appropriation 94,895 119,699

Departmental revenue and NRF Receipts 14 45,343 56,253

SURPLUS/(DEFICIT) FOR THE YEAR 140, 238 175,952


STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2013


POSITION Note 2012/13 2011/12

R'000 R'000

ASSETS

Current assets

Cash and cash equivalents 10 13,027 20,080

Prepayments and advances 11 8 23

Receivables 12 2,819 34,653

TOTAL ASSETS 15,854 54,756

LIABILITIES

Current liabilities

Voted funds to be surrendered to the Revenue Fund 13 14,895 49,699

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

14 20 4,327

Payables 15 3 41

TOTAL LIABILITIES 14,918 54,067

NET ASSETS 936 689

Note 2012/13 2011/12 R'000 R'000

Represented by: Recoverable revenue 936 689

TOTAL 936 689


STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR END ED 31 MARCH 2013


NET ASSETS

Note

2012/13

2011/12 R'000 R'000 Recoverable revenue Opening balance 689 664 Transfers: 247 25

Debts recovered (included in departmental receipts)

(279) (186)

Debts raised 526 211 Closing balance 936 689

TOTAL 936 689


CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 201 3


CASH FLOW Note 2012/13 2011/12 R'000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 578,543 495,513

Annual appropriated funds received 1.1 533,235 440,024

Departmental revenue received 2 45,308 55,489

Net (increase)/decrease in working capital 31,811 109,758

Surrendered to Revenue Fund (99,349) (206,623)

Current payments (474,802) (353,868)

Payments for financial assets (13) (232)

Transfers and subsidies paid (37,624) (32,406)

Net cash flow available from operating activities 16 (1,434) 12,142

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 8 (5,901) (3,819)

Proceeds from sale of capital assets 2.3 32 760

Net cash flows from investing activities (5,869) (3,059)

CASH FLOWS FROM FINANCING ACTIVITIES

Distribution/dividend received 3 4

Increase/(decrease) in net assets 247 25

Net cash flows from financing activities 250 29

Net increase/(decrease) in cash and cash equivalents (7,053) 9,112

Cash and cash equivalents at beginning of period 20,080 10,968

Cash and cash equivalents at end of period 17 13,027 20,080


ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 201 3


The Financial Statements have been prepared in accordance with the following policies, which

have been applied consistently in all material aspects, unless otherwise indicated. However,

where appropriate and meaningful, additional information has been disclosed to enhance the

usefulness of the Financial Statements and to comply with the statutory requirements of the

Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the

Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2012.

1. Presentation of the Financial Statements

1.1 Basis of preparation

The financial statements have been prepared on a modified cash basis of accounting. Under

this basis, the effects of transactions and other events are recognised in the financial records

when the resulting cash is received or paid. The “modification” results from the recognition of

certain near-cash balances in the financial statements as well as the revaluation of foreign

investments and loans and the recognition of resulting revaluation gains and losses.

In addition, supplementary information is provided in the disclosure notes to the financial

statements where it is deemed to be useful to the users of the financial statements.

1.2 Presentation currency

All amounts have been presented in the currency of the South African Rand (R) which is also

the functional currency of the department.

1.3 Rounding

Unless otherwise stated, all financial figures have been rounded to the nearest one thousand

Rand (R’000).

1.4 Comparative figures

Prior period comparative information has been presented in the current year’s financial

statements. Where necessary, figures included in the prior period financial statements have

been reclassified to ensure that the format in which the information is presented is consistent

with the format of the current year’s financial statements.

1.5 Comparative figures - Appropriation Statement

A comparison between actual amounts and final appropriation per major classification of

expenditure is included in the Appropriation Statement.




2. Revenue

2.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against

revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the financial records on the date the appropriation

becomes effective.Adjustments made in terms of the adjustments budget process are

recognised in the financial records on the date the adjustments become effective.

Unexpended appropriated funds are surrendered to the Provincial Revenue Fund. Any amounts

owing to the Provincial Revenue Fund at the end of the financial year are recognised as payable

in the statement of financial position.

Any amount due from the Provincial Revenue Fund at the end of the financial year is recognised

as a receivable in the statement of financial position.

2.2 Departmental revenue

All departmental revenue is recognised in the statement of financial performance when received

and is subsequently paid into the Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the Provincial Revenue Fund at the end of the financial year is recognised

as a payable in the statement of financial position.

No accrual is made for amounts receivable from the last receipt date to the end of the reporting

period. These amounts are, however, disclosed in the disclosure notes to the annual financial

statements.

2.3 Direct Exchequer receipts

All direct exchequer receipts are recognised in the statement of financial performance when the

cash is received and is subsequently paid into the Provincial Revenue Fund, unless stated

otherwise.

Any amount owing to the Provincial Revenue Fund at the end of the financial year is recognised

as a payable in the statement of financial position.

2.4 Direct Exchequer payments

All direct exchequer payments are recognised in the statement of financial performance when

final authorisation for payment is effected on the system (no later than 31 March of each year).




2.5 Aid assistance

Aids assistance is recognised as revenue when received.

All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexure to the

Annual Financial Statements

The cash payments made during the year relating to aid assistance projects are recognised as

expenditure in the statement of financial performance when final authorisation for payments is

effected on the system (by no later than 31 March of each year).

The value of the assistance expensed prior to the receipt of funds is recognised as a receivable

in the statement of financial position.

Inappropriately expensed amounts using aid assistance and any unutilised amounts are

recognised as payables in the statement of financial position.

All CARA funds received must be recorded as revenue when funds are received. The cash

payments made during the year relating to CARA earmarked projects are recognised as

expenditure in the statement of financial performance when final authorisation for payments


Inappropriately expensed amounts using CARA funds are recognised as payables in the

statement of financial position. Any unutilised amounts are transferred to retained funds as they

are not surrendered to the revenue fund.

3. Expenditure

3.1 Compensation of employees

3.1.1 Salaries and wages

Salaries and wages are expensed in the statement of financial performance when the final

authorisation for payment is effected on the system (by no later than 31 March of each year).

Other employee benefits that give rise to a present legal or constructive obligation are disclosed

in the disclosure notes to the financial statements at its face value and are not recognised in the

statement of financial performance or position.

Employee costs are capitalised to the cost of a capital project when an employee spends more

than 50 per cent of his/her time on the project. These payments form part of expenditure for

capital assets in the statement of financial performance.




3.1.2 Social contributions

Employer contributions to post employment benefit plans in respect of current employees are

expensed in the statement of financial performance when the final authorisation for payment is


No provision is made for retirement benefits in the financial statements of the department. Any

potential liabilities are disclosed in the financial statements of the Provincial Revenue Fund and

not in the financial statements of the employer department.

Employer contributions made by the department for certain of its ex-employees (such as medical

benefits) are classified as transfers to households in the statement of financial performance.

3.2 Goods and services

Payments made during the year for goods and/or services are recognised as an expense in the

statement of financial performance when the final authorisation for payment is effected on the

system (by no later than 31 March of each year).

The expense is classified as capital if the goods and/or services were acquired for a capital

project or if the total purchase price exceeds the capitalisation threshold (currently R5,000). All

other expenditures are classified as current.

Rental paid for the use of buildings or other fixed structures is classified as goods and services

and not as rent on land.

3.3 Interest and rent on land

Interest and rental payments are recognised as an expense in the statement of financial

performance when the final authorisation for payment is effected on the system (by no later than

31 March of each year). This item excludes rental for the use of buildings or other fixed

structures. If it is not possible to distinguish between payment for the use of land and the fixed

structures on it, the whole amount should be recorded under goods and services.

3.4 Payments for financial assets

Debts are written off when identified as irrecoverable. Debts written-off are limited to the amount

of savings and/or under-spending of appropriated funds. The write off occurs at year-end or

when funds are available. No provision is made for irrecoverable amounts but an estimate is

included in the disclosure notes to the financial statements.

All other losses are recognised when authorisation has been granted for the recognition thereof.




3.5 Transfers and subsidies

Transfers and subsidies are recognised as an expense when the final authorisation for payment

is effected on the system (by no later than 31 March of each year).

3.6 Unauthorised expenditure

When confirmed unauthorised expenditure is recognised as an asset in the statement of

financial position until such time as the expenditure is either approved by the relevant authority,

recovered from the responsible person or written off as irrecoverable in the statement of financial

performance.

Unauthorised expenditure approved with funding is derecognised from the statement of financial

position when the unauthorised expenditure is approved and the related funds are received.

Where the amount is approved without funding, it is recognised as expenditure in the statement

of financial performance on the date stipulated in the Act.

3.7 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recognised as expenditure in the statement of financial

performance according to the nature of the payment and not as a separate line item on the face

of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered

from the responsible person or written off as irrecoverable in the statement of financial

performance.

3.8 Irregular expenditure

Irregular expenditure is recognised as expenditure in the statement of financial performance. If

the expenditure is not condoned by the relevant authority, it is treated as an asset until it is

recovered or written off as irrecoverable.

4. Assets

4.1 Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost.

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.




4.2 Other financial assets

Other financial assets are carried in the statement of financial position at cost.

4.3 Prepayments and advances

Amounts prepaid or advanced are recognised in the statement of financial position when the

payments are made and are derecognised as and when the goods/services are received or the

funds are utilised.

Prepayments and advances outstanding at the end of the year are carried in the statement of

financial position at cost.

4.4 Receivables

Receivables included in the statement of financial position arise from cash payments made that

are recoverable from another party (including departmental employees) and are derecognised

upon recovery or write-off.

Receivables outstanding at year-end are carried in the statement of financial position at cost

plus any accrued interest. Amounts that are potentially irrecoverable are included in the

disclosure notes.

4.5 Investments

Capitalised investments are shown at cost in the statement of financial position. Investments are

tested for an impairment loss whenever events or changes in circumstances indicate that the

investment may be impaired. Any impairment loss is included in the disclosure notes.

4.6 Loans

Loans are recognised in the statement of financial position when the cash is paid to the

beneficiary. Loans that are outstanding at year-end are carried in the statement of financial

position at cost plus accrued interest.

Amounts that are potentially irrecoverable are included in the disclosure notes.

4.7 Inventory

Inventories that qualify for recognition must be initially reflected at cost.

Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their

fair value at the date of acquisition.




All inventory items at year-end are reflected using the weighted average cost or FIFO cost

formula.

4.8 Capital assets

4.8.1 Movable assets

Initial recognition

A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is

defined as the total cost of acquisition. Where the cost cannot be determined accurately, the

movable capital asset is stated at fair value. Where fair value cannot be determined, the capital

asset is included in the asset register at R1.

All assets acquired prior to 1 April 2002 are included in the register R1.

Subsequent recognition

Subsequent expenditure of a capital nature is recorded in the statement of financial performance

as “expenditure for capital assets” and is capitalised in the asset register of the department on

completion of the project.

Repairs and maintenance is expensed as current “goods and services” in the statement of

financial performance.

4.8.2 Immovable assets

Initial recognition

A capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total

cost of acquisition. Where the cost cannot be determined accurately, the immovable capital

asset is stated at R1 unless the fair value for the asset has been reliably estimated.

Subsequent recognition

Work-in-progress of a capital nature is recorded in the statement of financial performance as

“expenditure for capital assets”. On completion, the total cost of the project is included in the

asset register of the department that is accountable for the asset.

Repairs and maintenance is expensed as current “goods and services” in the statement of

financial performance.




4.8.3 Intangible assets

Initial recognition

An intangible asset is recorded in the asset register on receipt of the item at cost. Cost of an

intangible asset is defined as the total cost of acquisition. Where the cost cannot be determined

accurately, the intangible asset is stated at fair value. Where fair value cannot be determined,

the intangible asset is included in the asset register at R1.

All intangible assets acquired prior to 1 April 2002 can be included in the asset register at R1.*

Subsequent expenditure

Subsequent expenditure of a capital nature is recorded in the statement of financial performance

as “expenditure for capital asset” and is capitalised in the asset register of the department.

Maintenance is expensed as current “goods and services” in the statement of financial

performance.

5. Liabilities

5.1 Payables

Recognised payables mainly comprise of amounts owing to other governmental entities. These

payables are carried at cost in the statement of financial position.

5.2 Contingent liabilities

Contingent liabilities are included in the disclosure notes to the financial statements when it is

possible that economic benefits will flow from the department, or when an outflow of economic

benefits or service potential is probable but cannot be measured reliably.

5.3 Contingent assets

Contingent assets are included in the disclosure notes to the financial statements when it is

probable that an inflow of economic benefits will flow to the entity.

5.4 Commitments

Commitments are not recognised in the statement of financial position as a liability or as

expenditure in the statement of financial performance but are included in the disclosure notes.




5.5 Accruals

Accruals are not recognised in the statement of financial position as a liability or as expenditure

in the statement of financial performance but are included in the disclosure notes.

5.6 Employee benefits

Short-term employee benefits that give rise to a present legal or constructive obligation are

disclosed in the disclosure notes to the financial statements. These amounts are not recognised

in the statement of financial performance or the statement of financial position.

5.7 Lease commitments

Finance lease

Finance leases are not recognised as assets and liabilities in the statement of financial position.

Finance lease payments are recognised as a capital expense in the statement of financial

performance and are not apportioned between the capital and the interest portions. The total

finance lease payment is disclosed in the disclosure notes to the financial statements.

Operating lease

Operating lease payments are recognised as an expense in the statement of financial

performance. The operating lease commitments are disclosed in the discloser notes to the

financial statement.

5.8 Impairment

The department tests for impairment where there is an indication that a receivable, loan or

investment may be impaired. An assessment of whether there is an indication of possible

impairment is done at each reporting date. An estimate is made for doubtful loans and

receivables based on a review of all outstanding amounts at year-end. Impairments on

investments are calculated as being the difference between the carrying amount and the present

value of the expected future cash flows / service potential flowing from the instrument.

5.9 Provisions

Provisions are disclosed 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 will be required to settle the obligation and a reliable estimate of

the obligation can be made.




6. Receivables for departmental revenue

Receivables for departmental revenue are disclosed in the disclosure notes to the annual

financial statements. These receivables are written off when identified as irrecoverable and are

disclosed separately.

7. Net Assets

7.1 Capitalisation reserve

The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior

reporting period but which are recognised in the statement of financial position for the first time

in the current reporting period. Amounts are recognised in the capitalisation reserves when

identified in the current period and are transferred to the Provincial Revenue Fund when the

underlying asset is disposed and the related funds are received.

7.2 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous financial

year becomes recoverable from a debtor in the current financial year. Amounts are either

transferred to the Provincial Revenue Fund when recovered or are transferred to the statement

of financial performance when written-off.

8. Related party transactions

Specific information with regards to related party transactions is included in the disclosure notes.

9. Key management personnel

Compensation paid to key management personnel including their family members where

relevant, is included in the disclosure notes.

10. Public private partnerships

A description of the PPP arrangement, the contract fees and current and capital expenditure

relating to the PPP arrangement is included in the disclosure notes.


NOTES TO THE ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2013


1. Annual Appropriation

1.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation

Act) for (Voted funds) provincial departments:

2012/13 2011/12 Final

Appropriation Actual funds

received Funds not

requested/ not received

Appropriation received

R’000 R’000 R’000 R’000 Administration 109,137 99,645 9,492 93,861 Fiscal Resource Management

95,008 82,758 12,250 35,844

Financial Management 231,379 195,987 35,392 185,601 Internal Audit 106,566 92,981 13,585 78,656 Growth and Development

71,145 61,864 9,281 46,062

Total 613,235 533,235 80,000 440,024

Requisition for funds was forwarded to Provincial Banking Services at the beginning of the financial year.

2. Departmental revenue Note 2012/13 2011/12 R’000 R’000

Tax revenue

Sales of goods and services other than capital assets 2.1 159 152

Fines, penalties and forfeits 2.2

Interest, dividends and rent on land 2.3 44,715 55,008

Sales of capital assets 2.4 32 760

Transactions in financial assets and liabilities 2.5 437 333

Transfer received 2.6

Total revenue collected 45,343 56,253

Less: Own revenue included in appropriation 22

Departmental revenue collected 45,343 56,253





2.1 Sales of goods and services other than capital assets

Note 2012/13 2011/12 2 R’000 R’000 Sales of goods and services produced by the department 158 149

Sales by market establishment 49 48 Administrative fees 51 50 Other sales 58 51

Sales of scrap, waste and other used current goods 1 3 Total 159 152

2.2 Interest, dividends and rent on land Note 2012/13 2011/12 2 R’000 R’000 Interest 44,712 55,004 Dividends 3 4 Total 44,715 55,008

2.3 Sale of capital assets Note 2012/13 2011/12 2 R’000 R’000 Tangible assets 32 760

Machinery and equipment 32 760

Total 32 760

2.4 Transactions in financial assets and liabilitie s Note 2012/13 2011/12 2 R’000 R’000 Receivables 437 117 Other Receipts including Recoverable Revenue 216 Total 437 333





3. Compensation of employees

3.1 Salaries and wages

Note 2012/13 2011/12 R’000 R’000 Basic salary 112,320 85,733 Performance award 2,224 1,594 Service based 142 182 Compensative/circumstantial 1,844 1,542 Periodic payments 676 367 Other non-pensionable allowances 28,445 22,887 Total 145,651 112,305

3.2 Social contributions

Note 2012/13 2011/12 R’000 R’000 Employer contributions Pension 13,131 11,014 Medical 4,340 3,742 Bargaining council 21 17 Total 17,492 14,773

Total compensation of employees 163,143 127,078 Average number of employees 477 452

4. Goods and services

Note 2012/13 2011/12 R’000 R’000 Administrative fees 10,315 9,999 Advertising 4,129 2,609 Assets less than R5,000 4.1 497 989 Bursaries (employees) 297 227 Catering 2,199 1,867 Communication 2,357 1,706 Computer services 4.2 110,935 97,452 Consultants, contractors & agency/outsourced services 4.3 129,502 56,302 Entertainment 6 2 Audit cost – external 4.4 4,526 6,700 Fleet services 1,017 949





Inventory 4.5 2,018 2,329 Operating leases 14,805 11,789 Property payments 4.6 7,854 7,335 Transport provided as part of the departmental activities 531 992 Travel and subsistence 4.7 14,143 8,144 Venues and facilities 2,554 1,957 Training and staff development 1,572 2,085 Other operating expenditure 4.8 2,402 12,351

Total 311,659 225,784

4.1 Assets less than R5,000

Note 2012/13 2011/12 4 R’000 R’000 Tangible assets

Machinery and equipment 497 989 Total 497 989

4.2 Computer services

Note 2012/13 2011/12 4 R’000 R’000 SITA computer services 84,343 86,282 External computer service providers 26,592 11,170 Total 110,935 97,452

4.3 Consultants, contractors and agency/outsourced services

Note 2012/13 2011/12 4 R’000 R’000 Business and advisory services 122,751 50,080 Legal costs 1,659 2,270 Contractors 4,574 2,771 Agency and support/outsourced services 518 1,181 Total 129,502 56,302

4.4 Audit cost – External

Note 2012/13 2011/12 4 R’000 R’000 Regularity audits 3,799 3,585 Performance audits 281 2,929 Computer audits 446 186 Total 4,526 6,700





4.5 Inventory

Note 2012/13 2011/12

4 R’000 R’000 Learning and teaching support material 61 27 Food and food supplies 214 129 Fuel, oil and gas Other consumables 194 105 Materials and supplies 27 310 Stationery and printing 1,520 1,758 Medicine 2 Total 2,018 2,329

4.6 Property payments

Note 2012/13 2011/12 4 R’000 R’000 Municipal services 3,038 1,710 Property maintenance and repairs 4,816 2,625 Other 3,000 Total 7,854 7,335

4.7 Travel and subsistence

Note 2012/13 2011/12

4 R’000 R’000 Local 11,854 7,940 Foreign 2,289 204 Total 14,143 8,144

4.8 Other operating expenditure

Note 2012/13 2011/12 4 R’000 R’000 Learnerships 417 11,097 Professional bodies, membership & subscription fees 282 153 Resettlement costs 179 189 Other 1,524 912 Total 2,402 12,351





5. Interest and rent on land

Note 2012/13 2011/12 R’000 R’000

Interest paid 1,006 Total 1,006

6. Payments for financial assets

Note 2012/13 2011/12 R’000 R’000 Material losses through criminal conduct

Other material losses 6.1 110 Debts written off 6.2 13 122 Total 13 232

6.1 Other material losses written off

Note 2012/13 2011/12 6 R’000 R’000

Nature of losses Interdepartmental accounts 110 Total 110

6.2 Debts written off

Note 2012/13 2011/12 6 R’000 R’000

Other debt written off Other debtors 13 122 Total 13 122 Total debt written off 13 122





7. Transfers and subsidies

2012/13 2011/12 R’000 R’000 Note Provinces and municipalities 47, 48, Annex

1A, Annex 1B

28,012 31,264

Departmental agencies and accounts Annex 1C 14 Households Annex 1H 9,598 1,142 Total 37,624 32,406 Unspent funds transferred to the above beneficiaries

8. Expenditure for capital assets Note 2012/13 2011/12 R’000 R’000 Tangible assets 5,507 3,294

Machinery and equipment 43 5,507 3,294 Software and other intangible assets 394 525

Computer software 44 394 525

Total 5,901 3,819

8.1 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

Software and other intangible assets 394 394 Computer software 394 394

Total 5,901 5,901





8.2 Analysis of funds utilised to acquire capital a ssets – 2011/12

Voted funds Aid

assistance Total

R’000 R’000 R’000 Tangible assets

Machinery and equipment 3,294 3,294 Software and other intangible assets

Computer software 525 525 Total 3,819 3,819

9. Unauthorised expenditure 9.1 Reconciliation of unauthorised expenditure

Note 2012/13 2011/12 R’000 R’000 Opening balance 102,258 Less: Amounts approved by Parliament/Legislature with

funding (102.258)

Unauthorised expenditure awaiting authorisation / written off

10. Cash and cash equivalents Note 2012/13 2011/12 R’000 R’000 Consolidated Paymaster General Account 13,023 20,076 Cash on hand 4 4 Total 13,027 20,080

11. Prepayments and advances Note 2012/13 2011/12 R’000 R’000 Staff advances Travel and subsistence 8 23 Total 8 23





12. Receivables 2012/13 2011/12

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 12.1

Annex

4

1,104 201 171 1,476 33,639

Trade receivables Recoverable

expenditure 12.2 35 27 62 29

Staff debt 12.3 80 68 123 271 45 Other debtors 12.4 96 745 169 1,010 940 Total 1,315 1,041 463 2,819 34,653

12.1 Claims recoverable Note 2012/13 2011/12

12 R’000 R’000 National departments 9 Provincial departments 991 33,259 Private Enterprise 114 Local governments 371 371 Total 1,476 33,639

12.2 Recoverable expenditure (disallowance accounts )

Note 2012/13 2011/12 12 R’000 R’000

Sal: Tax debts 62 27 Disall damages and losses 100 97 Disall damages and losses (100) (97) Dishonoured cheques 2 Total 62 29





12.3 Staff debt

Note 2012/13 2011/12 12 R’000 R’000

Tax debts 3 Bursary debts 262 19 Overpaid salaries 3 10 Losses and damages 7 Housing 6 6 Total 271 45

12.4 Other debtors

Note 2012/13 2011/12 12 R’000 R’000

Bursary debts 823 721 Losses and damages 38 22 Travel and subsistence (PERSAL) 1 Tax debts 4 Overpaid salary 111 153 Subsidised vehicle 16 16 Private telephone 5 6 Other 17 17 Total 1,010 940

13. Voted funds to be surrendered to the Revenue Fu nd Note 2012/13 2011/12 R’000 R’000 Opening balance 49,699 153,564 Transfer from statement of financial performance 94,895 119,699 Voted funds not requested/not received 1.1 (80,000) (70,000) Paid during the year (49,699) (153,564) Closing balance 14,895 49,699





14. Departmental revenue and NRF Receipts to be sur rendered to the Revenue Fund Note 2012/13 2011/12 R’000 R’000 Opening balance 4,327 1,133 Transfer from Statement of Financial Performance 45,343 56,253 Paid during the year (49,650) (53,059) Closing balance 20 4,327

15. Payables – current Note 2012/13 2011/12

R’000 R’000

Clearing accounts 15.1 3 39 Other payables 15.2 2

Total 3 41

15.1 Clearing accounts

Note 2012/13 2011/12 15 R’000 R’000 Sal : Income Tax 3 39 Total 3 39

15.2 Other payables

Note 2012/13 2011/12

15 R’000 R’000 Description Sal: Medical 2

Total 2





16. Net cash flow available from operating activiti es Note 2012/13 2011/12 R’000 R’000

Net surplus/(deficit) as per Statement of Financial Performance

140,238 175,952

Add back non cash/cash movements not deemed operating activities

(141,672) (163,810)

(Increase)/decrease in receivables – current 31,834 7,541 (Increase)/decrease in prepayments and advances 15 13 (Increase)/decrease in other current assets 102,258 Increase/(decrease) in payables – current (38) (54) Proceeds from sale of capital assets (32) (760) Proceeds from sale of investments (3) (4) Expenditure on capital assets 5,901 3,819 Surrenders to Revenue Fund (99,349) (206,623) Voted funds not requested/not received (80,000) (70,000)

Net cash flow generated by operating activities (1 ,434) 12,142

17. Reconciliation of cash and cash equivalents for cash flow purposes Note 2012/13 2011/12 R’000 R’000 Consolidated Paymaster General account 13,023 20,076 Cash on hand 4 4 Total 13,027 20,080


DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS



These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the

usefulness of the Annual Financial Statements.

18. Contingent liabilities and contingent assets

18.1 Contingent liabilities

Note 2012/13 2011/12 R’000 R’000 Liable to Nature Housing loan guarantees Employees Annex 3A 11 Claims against the department Annex 3B 45 14 Other depts (interdept. unconfirmed balances) Annex 5 733 441 Total 778 466

19. Commitments

Note 2012/13 2011/12 R’000 R’000 Current expenditure Approved and contracted 57,120 57,568 Total Commitments 57,120 57,568

20. Accruals

2012/13 2011/12 R’000 R’000 Listed by economic classification

30 days 30+ days Total Total Goods and services 1 7,525 781 8,306 11,117 Capital assets 351 351 Total 7,525 1,132 8,657 11,117

Note 2012/13 2011/12 R’000 R’000 Listed by programme level Administration 2,830 2,941 Fiscal Resource Management 1,244 3,010 Financial Management 2,329 1,962 Internal Audit 2,180 2,384 Growth and Development 74 820 Total 8,657 11,117 Note 2012/13 2011/12 R’000 R’000 Confirmed balances with other departments Annex 5 171 8,293 Total 171 8,293




2012/13 AFS KNZ Provincial Treasury - 121 -

21. Employee benefits

Note 2012/13 2011/12 R’000 R’000 Leave entitlement 5,188 5,188 Service bonus (Thirteenth cheque) 3,865 3,349 Performance awards 2,034 1,917 Capped leave commitments 5,068 5,068 Other 5 Total 16,160 15,522

The leave entitlement as disclosed above is the net of negative balances. The negative balance amounts to R120 000

22. Lease commitments

22.1 Operating leases expenditure 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

2011/12


equipment


fixed structures

Machinery and

equipment

Total

Not later than 1 year 7,218 7,218 Later than 1 year and not later

than 5 years 29,427 29,427

Total lease commitments 36,645 36,645





22.2 Finance leases expenditure**

2012/13


equipment


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

2011/12


equipment


fixed structures

Machinery and

equipment

Total

Not later than 1 year 1,536 1,536 Later than 1 year and not

later than 5 years 300 300

Total present value of lease liabilities

1,836 1,836

23. Irregular expenditure

23.1 Reconciliation of irregular expenditure Note 2012/13 2011/12 R’000 R’000 Opening balance Add: Irregular expenditure – relating to current year 96 72 Less: Amounts condoned (96) (72) Irregular expenditure awaiting condonation

23.2 Details of irregular expenditure – current yea r Incident Disciplinary steps

taken/criminal proceedings 2012/13 R’000

Payment made without valid tax certificate 52 Payment made exceeding budgeted amount 44 Total 96





23.3 Details of irregular expenditure condoned

Incident Condoned by (condoning authority) 2012/13 R’000

Payment made without valid tax certificate

Condoned by Accounting Officer authority dated 28/03/2013

52

Payment made exceeding budgeted amount

Condoned by Accounting Officer authority dated 28/03/2013

44

Total 96

24. Key management personnel

No. of

Individuals 2012/13 2011/12

R’000 R’000 Political office bearers (provide detail below) 1 1,652 1,566 Officials:

Level 15 to 16 3 4,349 3,401 Level 14 (incl. CFO if at a lower level) 10 9,071 8,986

Total 15,072 13,953

25. Movable tangible capital assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASS ET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Opening

balance Current year adjustments to prior year

balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000 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





25.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER AS SET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 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 5,507 5,507 Transport assets 1,053 1,053 Computer equipment 4,180 4,180 Furniture and office equipment 274 274 Other machinery and equipment TOTAL ADDITIONS TO MOVABLE

TANGIBLE CAPITAL ASSETS

5,507 5,507

25.2 Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER AS SET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

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 854 1,037 1,891 32 Transport assets 932 932 Computer equipment 854 854 32 Furniture and office equipment 105 105 TOTAL DISPOSAL OF MOVABLE

TANGIBLE CAPITAL ASSETS

854 1,037 1,891 32





25.3 Movement for 2011/12

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASS ET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Opening

balance Additions Disposals Closing

balance R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 27,633 3,294 2,086 28,841 Transport assets 5,545 819 1,890 4,474 Computer equipment 19,032 2,061 176 20,917 Furniture and office equipment 2,571 339 20 2,890 Other machinery and equipment 485 75 560 TOTAL MOVABLE TANGIBLE ASSETS 27,633 3,294 2,086 28,841

25.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Specialised military assets

Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000 Opening balance 1,651 4,081 5,732 Current 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





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


Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000 Opening balance 1,528 5,020 6,548Additions 123 866 989Disposals (1,805) (1,805)TOTAL MINOR ASSETS 1,651 4,081 5,732


Intangible assets

Heritage assets

Machinery and

equipment

Biological assets

Total

No. of R1 minor assets 2,188 2,188 No. of minor assets at cost 37 2,221 2,258 TOTAL NUMBER OF MINOR ASSETS

37 4,409 4,446

26. Intangible capital assets MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REG ISTER FOR THE YEAR ENDED 31 MARCH 2013 Opening

balance Current year adjustments to prior year

balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 29,881 (1,760) 394 28,515 MASTHEADS AND PUBLISHING TITLES TOTAL INTANGIBLE CAPITAL ASSETS 29,881 (1,760) 394 28,515





26.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET RE GISTER FOR THE YEAR ENDED 31 MARCH 2013 Cash Non-Cash (Development

work in progress –

current costs)

Received current year,

not paid (Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000 COMPUTER SOFTWARE 394 394 TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS

394 394

26.2 Movement for 2011/12 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REG ISTER FOR THE YEAR ENDED 31 MARCH 2012 Opening

balance Additions Disposals Closing

balance R’000 R’000 R’000 R’000 COMPUTER SOFTWARE 29,356 525 29,881 TOTAL INTANGIBLE CAPITAL ASSETS 29,356 525 29,881


ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS



ANNEXURE 1A

STATEMENT OF CONDITIONAL GRANTS PAID TO MUNICIPALIT IES

NAME OF MUNICIPALITY

GRANT ALLOCATION TRANSFER SPENT 2011/12

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

KZ225 Msunduzi 16,760 16,760 574 574 574 100% 18,538 DC26 Zululand 20,000 20,000 19,661 19,661 19,661 100% 10,000 KZ82 Umhlatuza 7,041 1,000 8,041 7,777 7,777 7,777 100% 10,500

KZ5a4 Kokstad 10,062 10,062

Total 53,863 1,000 54,863 28,012 28,012 28,012 39,038

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 1C

STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

DEPARTMENT/ AGENCY/ ACCOUNT

TRANSFER ALLOCATION TRANSFER 2011/12 Adjusted

Appropriation Roll-overs Adjustments Total

available Actual

transfer % of

available funds

transferred

Appropriation Act

R'000 R'000 R'000 R'000 R'000 % R'000 PD Vehicles 14 14 14 100% Total 14 14 14





ANNEXURE 1H

STATEMENT OF TRANSFERS TO HOUSEHOLDS

HOUSEHOLDS

TRANSFER ALLOCATION EXPENDITURE 2011/12 Adjusted

Appropriation Act

Roll-overs Adjustments Total available

Actual transfer

% of available

funds transferred

Appropriation Act

R'000 R'000 R'000 R'000 R'000 % R'000 Transfers Injury on duty 9 2 Post-retirement benefits 1,332 1,332 500 38% 1,300 Severance Packages 392 392 342 87% Leave Gratuity 30 30 137 457% Bursaries(non-employee) 11,830 11,830 8,603 73% 333 Claims against State(cash) 8 8 7 88% Total 13,592 13,592 9,598 1,635





ANNEXURE 1I

STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECE IVED

NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SP ONSORSHIP 2012/13 2011/12

R’000 R’000

Received in kind ABSA Bank Sponsorship for the 2012 post Budget Breakfast 65 ESP Consulting Sponsorship for the year-end function 2 MR M Francis Sponsorship for the year-end function 2 Deloitte Sponsorship for the year-end function 2 Genius Management Solutions Sponsorship for the year-end function 2 Ashira&Ngidi Sponsorship for the year-end function 2 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 TOTAL 316 75





ANNEXURE 3A

STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 M ARCH 2013 – LOCAL

Guarantor institution

Guarantee in respect of

Original guaranteed

capital amount

Opening balance

1 April 2012

Guarantees draw downs

during the year

Guarantees repayments/ cancelled/ reduced/

released during the year

Revaluations Closing balance

31 March 2013

Guaranteed interest for year ended 31 March

2013

Realised losses not recoverable i.e. claims paid out

R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 Housing

ABSA BANK Housing 55 11 11 Total 55 11 11





ANNEXURE 3B

STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2013

Nature of liability

Opening balance

1 April 2012

Liabilities incurred

during the year

Liabilities paid/

cancelled/ reduced

during the year

Liabilities recoverable

Closing balance

31 March 2013

R’000 R’000 R’000 R’000 R’000

Claims against the department

Claims against the state 14 14 Claims against the state Legal Fees 45 45

TOTAL 14 45 14 45





ANNEXURE 4

CLAIMS RECOVERABLE

Government entity

Confirmed balance outstanding

Unconfirmed balance outstanding Total

31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012

R’000 R’000 R’000 R’000 R’000 R’000

Department EC Economic Development 12 12 EC Provincial Treasury 6 6 FS Tourism, Environmental and Economic Affairs 1 1 GP Water Affairs 9 9 KZ Agriculture and Environmental Affairs 1 3 1 3 KZ Co-operative Government and Traditional Affairs 2 2 KZ Education 33,195 33,195 KZ Health 4 4 KZ Social Development 872 27 872 27 South African Police Services 9 9 KZ Sport and Recreation 101 101 Independent Complaints 16 16 NW Finance 1 1 101 890 33,268 991 33,268 Other government entities Newcastle Municipality 171 171 171 171 eDumbe Municipality 200 200 200 200 371 371 371 371 Private entities Pro M Consulting 114 114 TOTAL 101 1,375 33,639 1,476 33,639





ANNEXURE 5

INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY

Confirmed balance outstanding

Unconfirmed balance outstanding TOTAL

31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTS

Current

Dept of Labour 17 16 17 16 KZ Agriculture 20 20 KZ Legislature 19 19 KZ Premier 135 7,946 328 463 7,946 KZ Social Development 181 181 181 181 KZ Transport 1 143 1 143 KZ Public Works 328 328 South African Police Services 15 15 EC Treasury 36 36 KZ Health 2 2 KZ Economic Development 4 4 Government Printing Works 168 168 Statistic SA 4 4 Subtotal 171 8,293 705 375 876 8,668 OTHER GOVT ENTITY

Current

Palama 28 66 28 66 Subtotal 28 66 28 66 Total 171 8,293 733 441 904 8,734

With regard to R181k, the department is awaiting for the signed agreement by the Treasury’s Head of the

Department (HoD) and Social Development. Currently, the department has the unsigned agreement from the

Department of Social Development.





ANNEXURE 6

INVENTORY

Inventory Note Quantity 2012/13 Quantity 2011/12 R’000 R’000

Opening balance

329

565 Add/(Less): Adjustments to prior year balance Add: Additions/Purchases - Cash 629 524 Add: Additions - Non-cash (Less): Disposals (82) (191) (Less): Issues (548) (568) Add/(Less): Adjustments 3 (1) Closing balance 331 329

No quantities have been disclosed as the inventory consists of different types of inventory and each type

has a different type of measure.

KWAZULU-NATAL PROVINCIAL TREASURY: VOTE 6 - HUMAN R ESOURCES REPORT


HR OVERSIGHT - APRIL 2012 to MARCH 2013: KwaZu lu-Natal Provincial Treasury TABLE 1.1 - Main service for service delivery impro vement and standards

Main services Actual customers Potential customers Standard of service Actual achievement against standards

Recruitment and HR Admin Staff and prospective Graduates, govt.employees and members of Public

100% compliance to standards contained in Service commitment Charter

100%

Human Resource Development Staff and learners Graduates 100% achievement of WSP strategies 85% EH&W Staff Referrals in 5 days, 4 information seminars 100% and 11 seminars Policy Development Staff Prospective 8 policies and 8 seminars 15 policies & 12 seminars

TABLE 1.2 - Consultation arrangements for customers

Type of arrangement Actual customer Potential customer Actual achievements

Consultative Forum Organised labour and representatives of every business unit within the department

n/a Conducted 3 meetings

Customer surveys Treasury staff n/a 2 surveys

Exit Interviews Exiting employees n/a 20 exit interviews

TABLE 1.3 - Service delivery access strategy

Access strategy Actual achievements

HR portal developed, continuously maintained Fully updated portal

TABLE 1.4 - Service information tool

Type of information tool Actual achievements

Information seminars 23 seminars

HR portal developed, continuously maintained Fully updated portal

TABLE 1.5 - Complaint mechanism Complaint mechanism Actual achievements Complaint procedure 100% compliant

HR Customer Services 100% per charter



TABLE 2.1 - 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 per

cent of total expenditure

Average compensation of employees cost per employee

(R'000)

Employment

Kfe:Administration 97 904 43 763 0 0 44.7 101 345

Kfe:Financial Management 212 208 42 814 0 0 20.2 99 345

Kfe:Fiscal Resource Management 76 870 30 283 0 0 39.4 70 345

Kfe:Growthand Development 38 317 0 0 0 0 0 345

Kfe:Internal Audit 93 154 46 283 0 0 49.7 107 345

Z=Total on Financial Systems (BAS) 518 454 163 143 0 0 31.5 376 345

TABLE 2.2 - Personnel costs by salary band

Salary bands Compensation of employees cost (R'000)

Percentage of total personnel cost for dept.

Average compensation cost per employee (R)

Total personnel cost for dept. incl. goods and

transfers (R'000)

Number of employees

Skilled (Levels 3-5) 5 136 2.9 93 382 174 619 55

Highly skilled production (Levels 6-8) 24 521 14 314 372 174 619 78

Highly skilled supervision (Levels 9-12) 77 250 44.2 468 182 174 619 165

Senior management (Levels 13-16) 39 949 22.9 849 979 174 619 47

Contract (Levels 1-2) 1 845 1.1 205 000 174 619 9

Contract (Levels 3-5) 7 805 4.5 132 288 174 619 59

Contract (Levels 6-8) 593 0.3 118 600 174 619 5

Contract (Levels 9-12) 2 761 1.6 306 778 174 619 9

Contract (Levels 13-16) 5 134 2.9 733 429 174 619 7

Periodical remuneration 3 779 2.2 104 972 174 619 36

Abnormal appointment 526 0.3 0 174 619 0

TOTAL 169299 97 360211 174619 470



TABLE 2.3 - Salaries, Overtime, Home Owners Allowan ce 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 Prog.

(R'000)

Fiscal Resource Man. 24461 78.9 0 0 991 3.2 537 1.7 31013

Administration 32625 71.7 326 0.7 1138 2.5 1456 3.2 45533

Administration* 3448 74.3 8 0.2 158 3.4 167 3.6 4641

Financial Management 33112 76.5 199 0.5 995 2.3 1054 2.4 43311

Internal audit 37343 74.5 20 0 1468 2.9 1116 2.2 50122

TOTAL 130989 75 553 0.3 4750 2.7 4330 2.5 174620

TABLE 2.4 - Salaries, overtime, home owners allowan ce 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) 3522 68.5 4 0.1 339 6.6 467 9.1 5141

Highly skilled production (Levels 6-8)

17524 71 302 1.2 925 3.7 1476 6 24679

Highly skilled supervision (Levels 9-12)

59012 74.1 117 0.1 2199 2.8 2033 2.6 79636

Senior management (Levels 13-16)

33067 78.3 0 0 1276 3 354 0.8 42236

Contract (Levels 1-2) 1844 99.4 1 0.1 0 0 0 0 1856

Contract (Levels 3-5) 7741 97.8 62 0.8 0 0 0 0 7913

Contract (Levels 6-8) 551 91.7 4 0.7 11 1.8 0 0 601

Contract (Levels 9-12) 2667 95.5 63 2.3 0 0 0 0 2793

Contract (Levels 13-16) 5039 95 0 0 0 0 0 0 5304

Periodical Remuneration 0 0 0 0 0 0 0 0 3902

Abnormal Appointment 21 3.8 0 0 0 0 0 0 558

TOTAL 130988 75 553 0.3 4750 2.7 4330 2.5 174619



TABLE 3.1 - Employment and vacancies by programme a t end of period

Programme Number of posts

Number of posts filled

Vacancy rate Number of posts filled additional to the establishment

Fiscal Resource Management, Permanent 71 58 18.3 2

Prog 1: Administration*, Permanent 12 10 16.7 0

Prog 1: Administration, Permanent 121 108 10.7 14

Prog 3: Financial Management, Permanent 106 82 22.6 31

Prog 4: Internal Audit, Permanent 97 87 10.3 42

TOTAL 407 345 15.2 89

TABLE 3.2 - Employment and vacancies by salary band at end of period

Salary band Number of posts



Lower skilled (Levels 1-2), Permanent 0 0 0 0

Skilled (Levels 3-5), Permanent 57 55 3.5 0

Highly skilled production (Levels 6-8), Permanent 99 78 21.2 0

Highly skilled supervision (Levels 9-12), Permanent 196 165 15.8 0

Senior management (Levels 13-16), Permanent 55 47 14.5 0

Contract (Levels 1-2), Permanent 31 9 71 9

Contract (Levels 3-5), Permanent 66 59 10.6 59




TOTAL 525 434 17.3 89



TABLE 3.3 - Employment and vacancies by critical oc cupation at end of period

Critical occupations Number of posts



Administrative related, Permanent 46 39 15.2 2

Bus and heavy vehicle drivers, Permanent 6 6 0 0

Client inform clerks(switch, recept, inform clerks), Permanent 2 2 0 0

Communication and information related, Permanent 4 4 0 0

Economists, Permanent 1 0 100 0

Finance and economics related, Permanent 38 32 15.8 0

Financial and related professionals, Permanent 55 42 23.6 0

Financial clerks and credit controllers, Permanent 18 15 16.7 18

General legal administration and rel. professionals, Permanent 1 0 100 0

Head of department/chief executive officer, Permanent 1 1 0 1

Human resources and organis. develop and relate prof, Permanent 22 17 22.7 0

Human resources clerks, Permanent 21 17 19 0

Human resources related, Permanent 7 4 42.9 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 4 0 0

Messengers porters and deliverers, Permanent 3 3 0 0

Other administrat and related clerks and organisers, Permanent 29 25 13.8 61

Other administrative policy and related officers, Permanent 50 47 6 0

Other information technology personnel., Permanent 9 7 22.2 0

Other occupations, Permanent 0 0 0 0

Risk management and security services, Permanent 0 0 0 0

Secretaries and other keyboard operating clerks, Permanent 29 26 10.3 1

Senior managers, Permanent 53 46 13.2 6

TOTAL 407 345 15.2 89



TABLE 3.6 - Advertising and filling of SMS posts as at 31 March 2013

SMS LEVEL ADVERTISING FILLING OF POSTS

No. of vacancies per level advertised in 6 months of becoming vacant

No. of vacancies per level filled in 6 months of becoming vacant

No. 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 0 0 0

Salary Level 14 0 0 0

Salary Level 13 3 0 4 TOTAL 3 0 4

TABLE 3.4 - Signing of performance Agreements by SM S Members as at 30 September 2012

SMS LEVEL Total no. of funded SMS posts per level

Total no. of SMS Members per level

Total no. of signed performance agreements

per level

Signed performance agreements as % of total no.

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 1 1 100

Salary Level 14 11 9 9 100

Salary Level 13 40 33 33 100 TOTAL 55 44 44 100

SMS LEVEL Total no. of funded

SMS posts per level Total no. of SMS posts filled

per level % of SMS posts filled

per level Total number of SMS posts

vacant per level

Director-General/Head of Department 1 1 100 0

Salary Level 16, but not HOD 0 0 0 0

Salary Level 15 3 1 33.33 2

Salary Level 14 11 9 72.72 2

Salary Level 13 40 36 85.71 4 TOTAL 55 47 80 8



TABLE 4.1 - 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 9-12) 0 0 0 0 0 0 0

Contract (Band A) 0 0 0 0 0 0 0

Contract (Band D) 0 0 0 0 0 0 0

Skilled (Levels 3-5) 57 0 0 0 0 0 0

Highly skilled production (Levels 6-8) 99 5 5.1 3 60 0 0

Highly skilled supervision (Levels 9-12) 196 6 3.1 2 33.3 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 407 11 2.7 5 45.5 0 0



TABLE 4.2 - Profile of employees whose positions we re upgraded due to their posts being upgraded

Beneficiaries African Asian Coloured White Total

Female 1 1 0 1 3

Male 0 0 0 0 0

Total 1 1 0 1 3

Employees with a disability 0 0 0 0 0

TABLE 4.3 - 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

Number of employees in dept

Chief Registry Clerk 1 7 8 Grade Progression

1

Total 1

Percentage of total employment 0 0

TABLE 4.4 - 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 1 0 0 1

Male 0 0 0 0 0

Total 0 1 0 0 1

Employees with a disability 0 0 0 0 0



TABLE 5.1 - Annual Turnover Rates by Salary Band

Salary Band Employment at beginning of period (April

2012)

Appointments Terminations Turnover rate

Skilled (Levels 3-5), Permanent 54 10 2 3.7

Highly skilled production (Levels 6-8), Permanent 95 9 13 13.7

Highly skilled supervision (Levels 9-12), Permanent 192 13 13 6.8

Senior Management Service Band A, Permanent 39 2 1 2.6

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 (Band A), Permanent 0 0 0 0

Contract (Band D), Permanent 1 0 0 0

TOTAL 397 34 30 7.6



TABLE 5.2 - Annual turnover rates by critical occup ation

Occupation Employment at beginning of

period (April 2012)

Appointments Terminations Turnover rate

Administrative related, Permanent 45 2 4 8.9

Bus and heavy vehicle drivers, Permanent 6 2 0 0

Client inform clerks(switch recept, inform clerks), Permanent 2 0 0 0

Communication and information related, Permanent 4 0 0 0

Economist, Permanent 1 0 0 0

Finance and economics related, Permanent 38 5 3 7.9

Financial and related professionals, Permanent 51 4 3 5.9

Financial clerks and credit controllers, Permanent 16 2 1 6.3

Food services aids and waiters, Permanent 0 0 0 0

General Legal Administration andrel professionals, Permanent 2 0 1 50

Head of department/chief executive officer, Permanent 1 0 0 0

Human resources andorganisat develop and relate prof, Permanent 21 0 0 0

Human resources clerks, Permanent 22 2 3 13.6

Human resources related, Permanent 4 0 0 0

Information technology related, Permanent 2 0 0 0

Library mail and related clerks, Permanent 5 0 0 0

Material-recording and transport clerks, Permanent 4 0 0 0

Messengers porters and deliverers, Permanent 3 0 0 0

Other administratand related clerks and organisers, Permanent 29 8 6 20.7

Other administrative policy and related officers, Permanent 51 4 4 7.8

Other information technology personnel., Permanent 9 0 1 11.1

Other occupations, Permanent 0 0 0 0

Risk management and security services, Permanent 0 0 0 0

Secretaries and other keyboard operating clerks, Permanent 27 3 3 11.1

Senior managers, Permanent 54 2 1 1.9

TOTAL 397 34 30 7.6



TABLE 5.3 - Reasons why staff are leaving the depar tment

Termination type Number Percentage of total

resignations

Percentage of total

employment

Total Total employment

Resignation, permanent 12 12.1 3.5 99 345

Expiry of contract, permanent 0 0 0 99 345

Transfers out of the Department 15 15.2 4.3 99 345

Dismissal-misconduct, Permanent 1 1 0.3 99 345

Retirement, Permanent 2 2 0.6 99 345

TOTAL 30 30.3 8.7 99 345

Resignations as % of Employment

25.6

TABLE 5.4 - Granting of employee initiated severanc e 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 5.5 - Promotions by critical occupation

Occupation Employment at beginning

of period (April 2012)

Promotions to another salary level

Salary level promotions as a

% of employment

Progressions to another notch

within salary level

Notch progressions as a % of employment

Administrative related 45 0 0 23 51.1

Bus and heavy vehicle drivers 6 0 0 0 0

Client inform clerks(switch recept inform clerks) 2 0 0 1 50

Communication and information related 4 0 0 2 50

Economist, Permanent 1 0 0

Finance and economics related 38 2 5.3 7 18.4

Financial and related professionals 51 0 0 29 56.9

Financial clerks and credit controllers 16 2 12.5 13 81.3

General Legal Administration &rel professionals, Permanent 2 0 0

Head of department/chief executive officer 1 0 0 1 100

Human resources &organisat develop & relate prof 21 0 0 13 61.9

Human resources clerks 22 0 0 12 54.5

Human resources related 4 0 0 2 50

Information technology related 2 0 0 1 50

Library mail and related clerks 5 0 0 5 100

Material-recording and transport clerks 4 0 0 3 75

Messengers porters and deliverers 3 0 0 3 100

Other administrat& related clerks and organisers 29 0 0 9 31

Other administrative policy and related officers 51 0 0 19 37.3

Other information technology personnel. 9 0 0 8 88.9

Other occupations 0 0 0 0 0

Risk management and security services 0 0 0 1 0

Secretaries & other keyboard operating clerks 27 0 0 17 63

Senior managers 54 0 0 19 35.2

TOTAL 397 4 1 188 47.4



TABLE 5.6 - Promotions by salary band

Salary band Employment at beginning of

period (April 2012)

Promotions to another salary

level

Salary level promotions as a

% of employment

Progressions to another notch

within salary level

Notch progressions as a % of employment

Skilled (Levels 3-5), Permanent 54 0 0 15 27.8

Highly skilled production (Levels 6-8), Permanent 95 1 1.1 59 62.1

Highly skilled supervision (Levels 9-12), Permanent 192 3 1.6 92 47.9

Senior management (Levels 13-16), Permanent 54 0 0 21 38.9

Contract (Levels 3-5), Permanent 0 0 0 0 0



Contract (Levels 13-16), Permanent 1 0 0 0 0 TOTAL 397 4 1 188 47.4

TABLE 6.1 - Total number of Employees (incl. Employ ees with disabilities) per Occupational Category (S ASCO)

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, managers, Perm 15 2 6 23 2 9 0 7 16 2 43

Professionals, Permanent 46 0 5 51 5 38 1 3 42 9 107

Technicians, associate professionals, Perm 39 0 3 42 0 37 0 5 42 2 86

Clerks, Permanent 31 1 0 32 0 45 1 9 55 12 99

Service and sales workers, Permanent 1 0 0 1 0 0 0 0 0 0 1

Plant & machine operators, assemblers, Perm 4 0 0 4 1 1 0 0 1 0 6

Elementary occupations, Permanent 3 0 0 3 0 0 0 0 0 0 3 TOTAL 139 3 14 156 8 130 2 24 156 25 345

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 1 0 1 2 0 0 0 0 0 1 3



TABLE 6.2 - Total number of employees (incl. employ ees 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 16 2 5 23 2 8 0 7 15 3 43

Professionally qualified and experienced specialists and mid-management, Permanent

58 0 6 64 5 39 0 7 46 6 121

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent

48 0 1 49 1 60 2 8 70 16 136

Semi-skilled and discretionary decision making, Perm 16 1 0 17 0 22 0 2 24 0 41

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 139 3 14 156 8 130 2 24 156 25 345



TABLE 6.3 - 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



6 0 0 5 0 3 0 0 2 0 9


5 0 0 3 0 9 0 0 8 1 15

Semi-skilled and discretionary decision making, Perm 2 0 0 2 0 6 0 0 4 0 8

Contract (Senior Management), 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 13 0 0 10 0 18 0 1 15 2 34

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 6.4 - Promotions


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 0 0 0 0 0 0



1 0 0 1 0 1 0 0 1 0 2

Skilled technical and academically qualified workers, junior management, supervisors, Perm

1 0 0 1 0 1 0 0 1 0 2

Semi-skilled, discretionary decision making, Perm 0 0 0 0 0 0 0 0 0 0 0



TOTAL 2 0 0 2 0 2 0 0 2 0 4

Male, African

Male, Coloured

Male, Indian

Male, Total

Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total




TABLE 6.5 - Terminations


Male, Coloured

Male, Indian

Male, Total

Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total



3 0 1 2 1 5 0 1 4 0 11


3 0 0 2 1 12 0 0 6 0 16

Semi-skilled and discretionary decision making, Permanent

0 0 0 0 0 2 0 0 0 0 2




Contract (Unskilled), Permanent 0 0 0 0 0 0 0 0 0 0 0 TOTAL 7 0 1 4 2 19 0 1 10 0 30

Male, African

Male, Coloured

Male, Indian

Male, Total

Blacks

Male, White

Female, African

Female, Coloured

Female, Indian

Female, Total

Blacks

Female, White

Total


TABLE 6.6 - 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 SCM procurement 1 1 1

Drunk on duty, unauthorised absence from duty 2 2 2

Colluding with suppliers in executing procurement functions within CFO

1 1 1

TOTAL 0 0 0 0 0 1 0 0 1 0 1



TABLE 6.7 - 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 3 1 1 5 0 2 0 2 0 0 9

Professionals 93 1 3 97 8 94 0 12 106 11 222

Technicians and Associate Professionals 17 1 2 20 0 27 0 1 28 1 49

Clerks 136 4 8 148 5 177 2 28 207 20 380

Service and Sales Workers 2 0 0 2 0 0 0 0 0 0 2

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 0 0 0 0 0 1 0 0 1 0 1

Elementary Occupations 1 0 0 1 0 0 0 0 0 0 1

TOTAL 252 7 14 273 13 301 2 43 342 32 664


TABLE 7.1 - 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 23 130 13.1 271 11 803

African, Male 19 139 10.5 445 24 745

Asian, Female 9 24 34.6 93 10 377

Asian, Male 3 14 16.7 149 49 826

Coloured, Female 0 2 0 0 0

Coloured, Male 0 3 0 0 0

Total Blacks, Female 32 156 15.6 365 11 402

Total Blacks, Male 22 156 10.9 595 28 328

White, Female 15 25 60 306 20 420

White, Male 2 8 25 45 22 531

Employees with a disability 0 3 0 0 0 TOTAL 71 345 16.1 1 311 18 730



TABLE 7.2 - Performance rewards by salary band for personnel below Senior Management Service

Salary band Number of beneficiaries

Total employment

Percentage of Total

employment

Cost (R'000) Average cost per beneficiary

(R)

Skilled (Levels 3-5) 9 55 16.4 44 4 889

Highly skilled production (Levels 6-8) 24 78 30.8 222 9 250

Highly skilled supervision (Levels 9-12) 33 165 20 724 21 939

Contract (Levels 1-2) 0 52 0 0 0




Periodical Remuneration 0 36 0 0 0

Abnormal Appointment 0 0 0 0 0

TOTAL 66 475 13.9 990 15000



TABLE 7.3 - Performance rewards by critical occupat ion

Critical occupations Number of beneficiaries

Total employment

% of total employment

Cost (R'000) Average cost per beneficiary (R)

Administrative related 6 38 15.8 149 24 833

Bus and heavy vehicle drivers 2 6 33.3 15 7 500

Client inform clerks(switch recept inform clerks) 0 1 0 0 0

Communication and information related 1 4 25 36 36 000

Finance and economics related 7 26 26.9 190 27 143

Financial and related professionals 12 48 25 282 23 500

Financial clerks and credit controllers 6 17 35.3 55 9 167

Head of department/chief executive officer 1 1 100 128 128 000

Human resources andorganisat develop and relate prof 4 17 23.5 50 12 500

Human resources clerks 4 20 20 60 15 000

Human resources related 0 3 0 0 0

Information technology related 1 2 50 21 21 000

Library mail and related clerks 4 7 57.1 24 6 000

Material-recording and transport clerks 0 4 0 0 0

Messengers porters and deliverers 3 3 100 13 4 333

Other administratand related clerks and organisers 5 23 21.7 45 9 000

Other administrative policy and related officers 1 48 2.1 11 11 000

Other information technology personnel. 2 7 28.6 17 8 500

Other occupations 0 0 0 0 0

Risk management and security services 0 1 0 0 0

Secretaries and other keyboard operating clerks 8 27 29.6 65 8 125

Senior managers 4 42 9.5 149 37 250

TOTAL 71 345 20.6 1310 18451



TABLE 7.4 - Performance related rewards (cash bonus ) by salary band for Senior Management Service

SMS band Number of beneficiaries

Total employment

% of total employment

Cost (R'000)

Average cost per beneficiary (R)

% of SMS wage bill

Personnel cost SMS (R'000)

Band A 2 36 5.6 84 42 000 0.3 29 490

Band B 2 9 22.2 0 0 0 0

Band C 0 1 0 108 0 3.8 2 866

Band D 1 1 100 128 128 000 1.9 6 594

TOTAL 5 47 10.6 320 64000 0.8 38950

TABLE 8.1 - Foreign workers by salary band

Salary band Employment at beginning

period

% of total

Employment at end of

period

% of total

Change in employment

% of Total

Total employment at beginning

of period

Total employment

at end of period

Total change in

employment

Highly skilled supervision (Levels 9-12) 1 25 0 0 -1 50 4 2 -2

Senior management (Levels 13-16) 1 25 1 50 0 0 4 2 -2

Contract (Levels 13-16) 0 0 0 0 0 0 4 2 -2

Abnormal Appointment 1 25 1 50 -1 50 4 2 -2

TOTAL 3 75 2 100 -2 100 4 2 -2

TABLE 8.2 - Foreign workers by major occupation

Major occupation Employment at beginning

Period

% of total Employment at end of

period

% of total Change in employment

% of total

Total employment at beginning

of period

Total employment

at end of period

Total change in

employment

Administrative office workers 1 25 0 0 -1 50 4 2 -2

Professionals and managers 1 25 1 50 -1 50 4 2 -2

TOTAL 2 50 1 50 -2 100 4 2 -2



TABLE 9.1 - Sick leave for Jan 2012 to Dec 2012

Salary band Total days

% days with medical

certification

No. of employees using sick

leave

% of Total employees using sick

leave

Average days per employee

Estimated cost (R'000)

Total no. of employees using sick

leave

Total no. of days with medical

certification

Skilled (Levels 3-5) 196 62.2 34 10.6 6 65 320 122

Highly skilled production (Levels 6-8) 642 77.1 79 24.7 8 417 320 495

Highly skilled supervision (Levels 9-12) 801 71.5 126 39.4 6 1 177 320 573

Senior management (Levels 13-16) 114 68.4 29 9.1 4 338 320 78

Contract (Levels 1-2) 51 39.2 14 4.4 4 9 320 20

Contract (Levels 3-5) 140.5 54.1 35 10.9 4 54 320 76

Contract (Levels 6-8) 1 0 1 0.3 1 1 320 0

Contract (Levels 9-12) 1 100 1 0.3 1 1 320 1

Contract (Levels 13-16) 1 0 1 0.3 1 3 320 0

TOTAL 1947.5 70.1 320 100 6 2065 320 1365

TABLE 9.2 - Disability leave (Temporary and Permane nt) for Jan 2012 to Dec 2012

Salary band Total days

% days with medical

certification

No. of employees

using disability

leave

% of Total employees

using disability

leave


Estimated cost (R'000)

Total no. of days with medical

certification

Total no. of employees

using disability

leave

Skilled (Levels 3-5) 26 100 3 18.8 9 11 26 16

Highly skilled production (Levels 6-8) 36 100 5 31.3 7 24 36 16

Highly skilled supervision (Levels 9-12) 80 100 7 43.8 11 102 80 16

Senior management (Levels 13-16) 4 100 1 6.3 4 11 4 16

TOTAL 146 100 16 100 9 148 146 16



TABLE 9.3 - Annual leave for Jan 2012 to Dec 2012

Salary band Total days taken


No. of employees who took leave

Skilled (Levels 3-5) 643 15 42

Highly skilled production (Levels 6-8) 1870 19 100

Highly skilled supervision (Levels 9-12) 3165 19 171

Senior management (Levels 13-16) 879 19 46

Contract (Levels 1-2) 289 7 42

Contract (Levels 3-5) 646.92 9 73




TOTAL 7591.92 15 490

TABLE 9.4 - Capped leave for Jan 2012 to Dec 2012

Salary band Total days of capped leave

taken

Average no. of days taken per employee

Average capped leave per

employee as at 31 Dec 2012

No. of Employees who

took Capped leave

Total no. of capped leave available at 31

Dec 2012

No. of Employees as at 31 Dec 2012

Skilled (Levels 3-5) 25 13 52 2 311 6

TOTAL 25 13 52 2 311 6

TABLE 9.5 - Leave payouts

Reason Total (R'000)

No. of employees

Average payment per employee (R)

Capped leave payouts on termination of service for 2012/13 83 7 11857

Current leave payout on termination of service for 2012/13 0 10 0

TOTAL 83 17 4882



TABLE 10.1 - Steps taken to reduce the risk of occu pational exposure

Units/categories of employees identified to be at h igh risk of contracting HIV & related diseases (if any)

Key steps taken to reduce risk

xxx xxx

xxx xxx

TABLE 10.2 - Details of health promotion and HIV/AI DS programmes [tick Yes/No and provide required inf ormation]

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.KogieChetty: 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 There are two employees responsible for promoting EH&W, namely: Deputy Manager and a Practitioner

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 Counselling, monthly onsite Chronic disease Management, Healthy life style 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 ZamasishiSibiya- EH&W, ThamiMhlongo-Auxillary services, KelebogileLekate- Internal Audit, Samantha Strachan-Provincial Budget Analyst, MenziNdlovu- SCM, SethabileMthembu-Financial reporting

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 Wellness Management, SHERQ & HIV, AIDS & TB management and Health and Productivity management 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 PILIR 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

7. Does the department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results.

X Number of employees that participated in HCT increased from 128 to 175 compared to the previous year, only 1 employee found HIV positive.

8. Has the department developed measures/indicators to monitor and 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.

TABLE 11.1 - Collective agreements

Subject matter Date

nil

TABLE 11.2 - Misconduct and discipline hearings fin alised Outcomes of disciplinary hearings Number % of total Total

Dismissal (employee resigned whilst appealing outcome) 1 33.4 1

Final written warning 2 66.6 2

TOTAL 2 100 3

TABLE 11.3 - Types of misconduct addressed and disc iplinary hearings

Type of misconduct Number % of total Total

Colluding with suppliers in executing procurement functions within CFO 1 33.3 3

Unacceptable behaviour/ drunk on duty 1 33.3 3

Tampering with Supply Chain management procurement 1 33.3 3



TOTAL 3 100 3

TABLE 11.4 - Grievances Lodged

Number of grievances addressed Number Percentage of total

Total

TOTAL 3 100 3

TABLE 11.5 - Disputes Lodged

Number of disputes addressed Number % of total

Upheld 3 100

Dismissed 0 0

Total 3

TABLE 11.6 - Strike actions

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 11.7 - Precautionary suspensions

Precautionary suspensions _

Number of people suspended 1

Number of people whose suspension exceeded 30 days 1

Average number of days suspended 211

Cost (R'000) of suspensions R 62 477.97



TABLE 12.1 - Training needs identified

Occupational categories Gender Employment Learnersh ips Skills programmes

and other short courses

Other forms of training

Total

Legislators, senior officials and managers Female 18 0 33 1 34

Male 25 0 64 4 68

Professionals Female 51 0 225 8 233

Male 56 0 209 13 222

Technicians and associate professionals Female 44 0 125 10 135

Male 42 0 115 8 123

Clerks Female 67 0 174 16 190

Male 32 0 55 6 61

Service and sales workers Female 0 0 0 0 0

Male 1 0 5 1 6

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 5 1 6

Elementary occupations Female 0 0 0 0 0

Male 3 0 4 0 4

Gender sub totals Female 181 0 557 35 592

Male 164 0 457 33 490

Total 345 0 1014 68 1082



TABLE 12.2 - Training provided

Occupational categories Gender Employment Learnersh ips Skills programmes

and other short courses

Other forms of training

Total

Legislators, senior officials and managers Female 18 0 4 0 4

Male 25 0 5 0 5

Professionals Female 51 0 117 0 117

Male 56 0 105 0 105

Technicians and associate professionals Female 44 0 29 0 29

Male 42 0 20 0 20

Clerks Female 67 0 227 0 227

Male 32 0 153 0 153

Service and sales workers Female 0 0 0 0 0

Male 1 0 2 0 2

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 1 0 1

Plant and machine operators and assemblers Female 1 0 1 0 1

Male 5 0 0 0 0

Elementary occupations Female 0 0 0 0 0

Male 3 0 0 0 0

Gender sub totals Female 181 0 378 0 378

Male 164 0 286 0 286

Total 345 0 664 0 664



TABLE 13.1 - Injury on duty

Nature of injury on duty Number % of total

Required basic medical attention only 0 0

Temporary total disablement 0 0

Permanent disablement 0 0

Fatal 0 0

Total 0

TABLE 14.1 - Report on consultant appointments usin g appropriated funds

Project title Total number of consultants that

worked on project

Duration: Work days Contract value in Rand

Forensic Investigation: Department of KZN Transport Stanger Cost Centre Phase3 1 166 3 003 330.00

Professional Forensic Investigation Services 1 Investigation in progress, started on 20/06/2013

1 926 030.00

Final Investigation on alleged fraud& corruption in SCM (Ukhahlamba District) 1 Investigation is in progress 1 880 274.00

Investigation into allegedregular/irregular cancellation of bid ZNT M00526W FR18/2011

1 186 89 490.00

Forensic investigation into alleged irregularities that occurred during bidding processwithin Department of PublicWorks, Education, and Human Settlement: FR22/2011

1 103 112 860.00

Internal auditors - resource to conduct fieldwork for education headcount project. 1 6 27 360.00











Forensic investigation on SCM processes on Imbabazane Local Municipality 1 166 647 751.00

forensic investigation 1 176 445 854.00

forensic investigation on Makari Agricultural and Multi-purpose co-operatives 1 166 391 191.00

Forensic investigation- Ikusasalentsha Co-operatives FR 20/2012 1 166 199 329.00

Application control review on MEDSAS 1 20 187 017.00

Application control review on Biometrics 1 30 229 824.00

Internal audit resources analysis 1 52 668.00

Execution for Human Resources Management Audit For Department of Education 1 57 155 952.00

Provision of support to Internal Audit Staff 1 171 000.00

AG Follow up review extension of order no: B0546399 1 48 450.00

Performance of risk based audit at the Richards Bay Industrial Development Zone 1 130 1 938 804.00

Performance of audit on primary health care (PHC) at KZN Department of Health (amount includes VAT and disbursement)

1 539.5 3 934 721.00

Review of department health Risk profile and Internal Audit plan 1 69 440.00

Head count for Department of Education. Phase 4 1 186 1 187 788.80

Senior consultants to audit human resource management 1 91 200.00

Forensic investigation for KZN Provincial Treasury 1 5 5 130.00

Senior Consultants for application control review at various depts and public entities 1 10 68 000.00



Application Control Review 1 20 155 040.00



Forensic Services for KZN Provincial Treasury 1 5 5 130.00

Fleet Management Audit @ Dept of Education 1 15 82 080.00

Forensic investigation: Alleged procurement fraud at KZN Department of Transport CAS 21/12/2011 1 1 685 832.00

Audit on Performance Information- Department of Education 1 20 200 640.00

Head count for Department of Education. Phase 5 1 275 1 372 153.00



Audit Human Resource Management @ KZN Provincial Treasury 1 15 68 400.00

Audit Human Resource Management @ KZN Sharks Board 1 15 161 880.00

Audit Human Resource Management @ KZN Dept of Economic Devt & Tourism 1 15 68 400.00

Audit on Performance Information at RHH and RHT 1 30 days 109 440.00

Forensic Investigation Education 1 02 days 23 514.00

Audit on performance information at Royal Household Trust 1 28 109 440.00

Audit for Transport Department 1 15 82 080.00

Resource to conduct an Audit HRM @ KZN Provincial Treasury 1 20 155 040.00

Audit on performance information at Department of Health 1 156 180.00

Testify at DC Hearing of Department of Transport 1 Investigation in progress 159 600.00

Audit on SCM of Department of Social Development 1 20 200 640.00

Audit on SCM of Department of Human Settlement 1 20 145 920.00

IT application control reviews at various departments and public entities 1 20 155 040.00





Forensic Investigation to the Department of Transport 1 202 3 305 355.00

Forensic review at the KZN Department of Economic Development and Tourism- Allegedirregularities relating to Local Economic Development project

1 Investigation started in December still in progress

1 354 570.00

Forensic Investigation: The Ark of Compassion 1 166 211 071.00

Audit on subsistence and travel allowance- COGTA 1 30 109 440.00

IT audit for general controls ito the financial and performance management systems 1 20 150 708.00


Audit on performance information- Human Settlement 1 30 150 480.00

Audit at one home one garden at Dept of Agriculture and Environmental Affairs 1 372.5 2 736 712.50

IT application control reviews and security audit of Works Info Man. System (WIMS) 1 20 186 219.00

Audit on HRM for the Dept of Economic Development and Tourism Project 167/2012 1 20 145 920.00

Audit on performance information at Dept of Agriculture and Environmental Affairs 1 15 82 080.00



Forensic accounting services is required to attend a DC enquiry 1 1 11 596.00

Forensic investigation: Dept of Community Safety for VSCPP 1 166 596 676.00

IT application control audit of the professional real estate 1 20 160 911.00

Resources to conduct audit on transfer payments @ Dept of Sport and Recreation 1 42 140 448.00

Assessment of IT Systems at the Department of Health 1 40 350 000.00

Audit on fleet Management Department of Sport & Recreation 1 30 100 320.00

MSP-Implementation of Cash Flow Management at uPongolo Municipality 1 57 869 248.00

MSP-Implementation of Cash Flow Management at Nongoma Municipality 1 35 318 835.00

MSP-Implementation of Cash Flow Management at Nongoma Municipality 1 57 1 246 095.24

MSP-Implementation of Cash Flow Management at uPongolo Municipality 1 44 287 513.00

Resource deployed to Ilembe Municipality 1 33 298 452.00



Phase two MSP-Internal Control Enhancement 1 47 1 143 428.00

Phase two MSP-Internal Control Enhancement 1 28 371 780.00

Phase two MSP-Internal Control Enhancement at Endumeni Municipality 1 43 1 198 076.00

Phase two MSP-Internal Control Enhancement at Ulundi Municipality 1 40 1 116 923.00

Phase two MSP-Internal Control Enhancement at Ezinqoleni Municipality 1 12 321 704.00

Phase two MSP-Internal Control Enhancement at Ezinqoleni Municipality 1 21 586 826.00

Resource @ Umvoti Municipality 1 23 272 870.00

Municipal Support Program-Secondment of resource to Mtubatuba Municipality 1 43 230 736.00



Amendment to budget-Cash flow management at Umtshezi 1 14 84 132.00

MSP- uMvoti Municipality 1 40 201 737.50

MSP- Mthonjaneni 1 31 332 560.80

MSP-Mtubatuba Municipality 1 24 187 598.40



MSP-KZN Provincial Treasury Municipal Finance Unit 1 119 333 792.00








MSP-uThukela District Municipality 1 3 593 462.00

MSP-Secondment of resource to KZN Provincial Treasury 1 62 205 200.00


MSP-ITGC 5 31 501 600.00

MSP-ITGC 5 27 501 600.00

MSP-ITGC 4 15 501 600.00

MSP- Cash Flow Management 5 27 406 296.00







MSP- secondment of resources at KZN Provincial Treasury 1 57 164 160.00

MSP- secondment of resources at KZN Provincial Treasury 1 42 134 064.00

MSP- Umhlabuyalingana Municipality 1 289 925.00

MSP-Secondment of resource to Mtubatuba Municipality 1 30 907 394.40

Review of AFS and Update Course 1 221 600.00

Review of AFS and Update course- Contract extension 1 55 046.00

Assistance with the Department of Health Movable Assets Register 1 200 1 225 600.00

Assistance with the Department of Health Movable Assets Register 1 200 708 400.00



Assistance with the Department of Health Movable Assets Register 1 200 708 400.00





Conditional grant project 1 22.5 211 200.00



Irregular Expenditure Project 1 103.75 344 000.00

Irregular Expenditure Project 1 103.75 993 510.00

Irregular Expenditure Project 1 100 344 000.00

Irregular Expenditure Project 1 200 1 073 600.00

Irregular Expenditure Project 1 100 729 600.00

Public Works for Immovable Assets 1 175 1 089 270.00

Resource for the departments of Education 1 280 1 299 144.00

Resource for the departments of Education 1 140 702 240.00

Resource for the departments of Education 1 70 245 784.00

Deployment: Department of Education and COGTA 3 60 977 152.00

Improvement of Municipal service Delivery and improved planning 5 60 2 591 840.00

Improvement of Municipal service Delivery and improved planning 1 60 205 600.00

Improvement of Municipal service Delivery and improved planning 1 20 576 000.00

Support for the department of Human Settlement 1 90 1 776 000.00

Support for the department of Human Settlement 1 90 288 000.00



Crack team- Municipal Finance Support 1 90 1 672 200.00

Crack team- Municipal Finance Support 1 120 957 600.00

Crack team- Municipal Finance Support 1 150 3 049 790.00

Crack team- Municipal Finance Support 1 180 244 800.00

Crack team- Nongoma Municipality 1 90 2 880 000.00

Crack team- COGTA 1 90 2 160 000.00

Crack team- PPP Unit Assistant 1 60 432 000.00

Crack team- Department of Agriculture 1 44 512 000.00



Ndumo Regeneration project 1 90 528 000.00

Ndumo Regeneration project 1 90 1 056 000.00

Crack team - Public works final accounts 1 60 288 000.00

Contract Management pilot project 1 365 1 835 332.45





MSP for support in SCM in Uthukela District Municipality 1 547 728.00

Total number of projects

Total individuals consultants

Total duration: work days

Total contract value in Rand

166 188 R 113 515 405.46

TABLE 14.2 - Analysis of consultant appointments us ing appropriated funds, i.t.o. HDIs

Project title Percentage ownership by HDI groups

Percentage management

by HDI groups

No. of consultants from HDI groups that work on project

Forensic Investigation 100.00% 100.00% 1

ProfessionalForensic Investigation Services 72.50% 72.50% 1

Final Investigation on alleged fraud& corruption in SCM (Ukhahlamba District) 100.00% 100.00% 1

Investigation into allegedregular/irregular cancellation of bid ZNT M00526W 100.00% 100.00% 1

Forensic investigation into alleged irregularities that occurred during the bidding process within the department of public works, education, and Human settlement: FR22/2011 100.00% 100.00% 1

Internal auditors - resource to conduct fieldwork for education headcount project. 100.00% 100.00% 1











Forensic investigation on SCM processes on Imbabazane Local Municipality 100.00% 100.00% 1

Forensic investigation 100.00% 100.00% 1

Forensic investigation on Makari Agricultural and Multi-purpose co-operatives 25.10% 25.10% 1

Forensic investigation- Ikusasalentsha Co-operatives FR 20/2012 23.00% 23.00% 1

Application control review on MEDSAS 26.75% 26.75% 1

Application control review on Biometrics 72.50% 72.50% 1

Internal audit resources analysis 25.10% 25.10% 1

Execution for Human Resources Management Audit For Department of Education 100.00% 100.00% 1

Provision of support to Internal Audit Staff 100.00% 100.00% 1

AG Follow up review extension of order no: B0546399 100.00% 100.00% 1

Performance of risk based audit at the Richards Bay Industrial Development Zone (RBIDZ). 100.00% 100.00% 1

Performance of audit on primary health care (PHC) at Dept. of Health (incl. VAT and disbursement) 25.10% 25.10% 1

Review of department health Risk profile and Internal Audit plan 25.10% 25.10% 1

Head count for Department of Education. Phase 4 23.00% 23.00% 1

Senior consultants to audit human resource management 100.00% 100.00% 1

Forensic investigation for KZN Provincial Treasury 25.10% 25.10% 1

Senior Consultants for application control review at various departments and public entities 100.00% 100.00% 1



Application Control Review 100.00% 100.00% 1



Forensic Services for KZN Provincial Treasury 25.10% 25.10% 1

Fleet Management Audit @ Dept of Education 100.00% 100.00% 1



Forensic investigation: Alleged procurement fraud at Department of Transport CAS 21/12/2011 100.00% 100.00% 1

Audit on Performance Information- Department of Education 100.00% 100.00% 1

Head count for Department of Education. Phase 5 23.00% 23.00% 1

Audit Human Resource Management @ KZN Provincial Treasury 100.00% 100.00% 1

Audit Human Resource Management @ KZN Sharks Board 100.00% 100.00% 1

Audit Human Resource Management @ KZN Dept of Economic Development and Tourism 100.00% 100.00% 1

Audit on Performance Information at RHH and RHT 100.00% 100.00% 1

Forensic Investigation 1

Audit on performance information at Royal Household Trust 100.00% 100.00% 1

Audit for Transport Department 100.00% 100.00% 1

Resource to conduct an Audit HRM @ KZN Provincial Treasury 100.00% 100.00% 1

Audit on performance information at Department of Health 100.00% 100.00% 1

Testify at DC Hearing of Department of Transport 100.00% 100.00% 1

Audit on SCM of Department of Social Development 100.00% 100.00% 1

Audit on SCM of Department of Human Settlement 100.00% 100.00% 1

IT application control reviews at various departments and public entities 30.75% 30.75% 1





Forensic Investigation to the Department of Transport 26.75% 26.75% 1

Forensic review at Dept of Eco. Dev. and Tourism- Allegedirregularities relating to LED project 26.75% 26.75% 1

Forensic Investigation 100.00% 100.00% 1

Audit on subsistence and travel allowance- COGTA 26.75% 26.75% 1

IT audit for general controls surrounding the financial and performance management systems 23.00% 23.00% 1


Audit on performance information- Human Settlement 100.00% 100.00% 1

Audit at one home one garden at Department of Agriculture and environmental affairs 30.75% 30.75% 1

IT application control reviews and security audit of Works Info. Management System (WIMS) 23.00% 23.00% 1



Audit on HRM for the Department of Economic Development and Tourism Project 167/2012 100.00% 100.00% 1

Audit on performance information at Department of Agriculture and Environmental Affairs 100.00% 100.00% 1

Forensic accounting services is required to attend a DC enquiry 0.00% 0.00% 1

Forensic investigation: Dept of Community Safety and liaison for VSCPP 26.75% 26.75% 1

IT application control audit of the professional real estate 23.00% 23.00% 1

Resources needed to conduct an audit on transfer payments @ dept of sports and recreation 100.00% 100.00% 1

Assessment of IT Systems at the Department of Health 25.10% 25.10% 1

Audit on fleet Management Department of Sport & Recreation 23.00% 23.00% 1

MSP-Implementation of Cash Flow Management at uPongolo Municipality 25.10% 25.10% 1

MSP-Implementation of Cash Flow Management at Nongoma Municipality 72.50% 72.50% 1

MSP-Implementation of Cash Flow Management at Nongoma Municipality 25.10% 25.10% 1

MSP-Implementation of Cash Flow Management at uPongolo Municipality 72.50% 72.50% 1

Resource deployed to Ilembe Municipality 23.00% 23.00% 1



Phase two MSP-Internal Control Enhancement 30.75% 30.75% 1

Phase two MSP-Internal Control Enhancement 100.00% 100.00% 1

Phase two MSP-Internal Control Enhancement at Endumeni Municipality 23.00% 23.00% 1

Phase two MSP-Internal Control Enhancement at Ulundi Municipality 23.00% 23.00% 1

Phase two MSP-Internal Control Enhancement at Ezinqoleni Municipality 100.00% 100.00% 1

Phase two MSP-Internal Control Enhancement at Ezinqoleni Municipality 1

Resource @ Umvoti Municipality 100.00% 100.00% 1

Municipal Support Program-Secondment of resource to Mtubatuba Municipality 100.00% 100.00% 1



Amendment to budget-Cash flow management at Umtshezi 30.75% 30.75% 1

MSP- uMvoti Municipality 100.00% 100.00% 1

MSP- Mthonjaneni 100.00% 100.00% 1

MSP-Mtubatuba Municipality 100.00% 100.00% 1





MSP-KZN Provincial Treasury Municipal Finance Unit 100.00% 100.00% 1






MSP-uThukela District Municipality 30.75% 30.75% 1

MSP-Secondment of resource to KZN Provincial Treasury 25.10% 25.10% 1


MSP-ITGC 23.00% 23.00% 1

MSP-ITGC 30.75% 30.75% 1

MSP-ITGC 26.75% 26.75% 1

MSP- Cash Flow Management 100.00% 100.00% 1







MSP- secondment of resources at KZN Provincial Treasury 100.00% 100.00% 1

MSP- secondment of resources at KZN Provincial Treasury 100.00% 100.00% 1

MSP- Umhlabuyalingana Municipality 25.10% 25.10% 1

MSP-Secondment of resource to Mtubatuba Municipality 100.00% 100.00% 1

Review of AFS and Update Course 100.00% 100.00% 1

Review of AFS and Update course- Contract extension 100.00% 100.00% 1

Assistance with the Department of Health Movable Assets Register 0.00% 0.00% 1









Conditional grant project 100.00% 100.00% 1



Irregular Expenditure Project 100.00% 100.00% 1





Public Works for Immovable Assets 100.00% 100.00% 1

Resource for the Department of Education 23.00% 23.00% 1



Deployment: Department of Education and COGTA 3 consultants, only 1 is 100% HDI

3 consultants, only 1 is 100% HDI 1

Improvement of Municipal service Delivery and impro ved planning 5 consultants, only 2 are 100% HDI

5 consultants, only 2 are 100% HDI 2

Improvement of Municipal service Delivery and improved planning 0.00% 0.00% 1

Improvement of Municipal service Delivery and impro ved planning 100.00% 100.00% 1

Support for the department of Human Settlement 0.00% 0.00% 1




Crack team- Municipal Finance Support 0.00% 0.00% 1






Crack team- Nongoma Municipality 100.00% 100.00% 1

Crack team- COGTA 100.00% 100.00% 1

Crack team- PPP Unit Assistant 0.00% 0.00% 1

Crack team- Department of Agriculture 31.30% 31.30% 1

Ndumo Regeneration project 100.00% 100.00% 1

Ndumo Regeneration project 100.00% 100.00% 1

Crack team Public works final accounts 100.00% 100.00% 1

Contract Management pilot project 26.75% 26.75% 1





MSP Program for support in SCM in Uthukela District Municipality 100.00% 100.00% 1

TABLE 14.3 - Report on consultant appointments usin g donor funds

Project title Total no. of consultants that

worked on the project

Duration: Work days Donor and contract value in Ran d

N/A

Total number of projects Total individual consultants

Total duration: Work days

Total contract value in Rand

N/A

TABLE 14.4 - Analysis of consultant appointments us ing donor funds, i.t.o. HDIs

Project title % ownership by HDI groups

% management by HDI groups

Number of consultants from HDI groups that work on the project

N/A

kwazulu-natal provincial treasury: vote 6

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