57399 DEP21 PRI 06 rv10 Annual Report INNER...• repairs and renovations at Moses Mabida Library in...

Physical AddressQhasana BuildingIndependent AvenueBhishoEastern CapePrivate bag X0022Bhisho5608Republic of South Africa

Switchboard: 040 602 4000Customer Care: 0800 864 951Presidential Hotline: 0800 17737Email:[email protected]

ANNUAL REPORT2016 / 17

PR: 260/2017ISBN: 978-0-621-45746-9

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VOTE 05 ANNUAL REPORT 2016-2017 EASTERN CAPE ROADS & PUBLIC WORKS

Vote 05ANNUAL REPORT

2016-2017

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TABLE OF CONTENTS

1. PART A: GENERAL INFORMATION ...................................................................................................11.1 Department’s General Information ....................................................................................................21.2 List of abbreviations/acronyms .........................................................................................................31.3 Foreword by MEC of the Department ................................................................................................51.4 ReportoftheAccountingOfficer .......................................................................................................71.5 Statementofresponsibilityandconfirmationoftheaccuracyoftheannualreport ..................141.6 Strategic Overview ............................................................................................................................15 1.6.1 Vision ......................................................................................................................................15 1.6.2 Mission ....................................................................................................................................15 1.6.3 Values .....................................................................................................................................15 1.6.4 Legislative and Other Mandates .............................................................................................16 1.6.5 DRPW organisational structure ...............................................................................................17

1.7 Entities reporting to the MEC ...........................................................................................................18

2. PART B: PERFORMANCE INFORMATION .......................................................................................192.1 Auditor General’s Report: Predetermined Objectives ...................................................................202.2 Overview of departmental performance..........................................................................................20 2.2.1 Service delivery environment ..................................................................................................20 2.2.2 Service Delivery Improvement Plan ........................................................................................23 2.2.3. BathoPelearrangementswithbeneficiaries(ConsultationAccessetc.) ................................24 2.2.4. Service Delivery Information Tool: ...........................................................................................28 2.2.5. Complaintsmechanism ...........................................................................................................28 2.2.6. Organisational Environment ....................................................................................................29

2.3 Key Policy Developments and Legislative Changes .....................................................................312.4 Strategic Outcome-Oriented Goals .................................................................................................312.5 Performance Information by Programme .......................................................................................38 2.5.1. Programme1:Administration ..................................................................................................38 2.5.2. Programme 2: Public Works Infrastructure .............................................................................42 2.5.3. Programme 3: Transport Infrastructure ...................................................................................50 2.5.4. Programme 4: Expanded Public Works Programme ..............................................................56

2.6 Transfer Payments ............................................................................................................................60 2.6.1. TransferPayments(ExcludingPublicEntities) .......................................................................60 2.6.2. Transfer Payments to Public Entities ......................................................................................60 2.6.3. Conditionalgrantsandearmarkedfundsreceived(NB:Nonon-financialdatapergrant) ......60

2.7 Donor Funds ......................................................................................................................................622.8 Capital Investments ..........................................................................................................................62 2.8.1. CapitalInvestment,MaintenanceandAssetManagementPlan .............................................62

3. PART C: GOVERNANCE ...................................................................................................................753.1. Introduction .......................................................................................................................................763.2. Risk Management ..............................................................................................................................763.3. Fraud and Corruption .......................................................................................................................77

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3.4. MinimisingConflictofInterest(EthicsManagementprogramme) ...............................................783.5. Code of Conduct ...............................................................................................................................793.6. Health and Environmental Issues ....................................................................................................793.7. Portfolio Committees ........................................................................................................................793.8. SCOPA Resolutions ..........................................................................................................................803.9. Priormodificationstoauditreports ................................................................................................833.10. Internal Control Unit ..........................................................................................................................843.11. Internal Audit and Audit Committee ................................................................................................853.12. Report of the Audit Committee ........................................................................................................88

4. PART D: HUMAN RESOURCE MANAGEMENT ...............................................................................954.1 Introduction .......................................................................................................................................96 Human Resource Oversight Statistics.................................................................................................99

4.2 Personnel Related Expenditure .......................................................................................................994.3 Employment and vacancies ...........................................................................................................1024.4 Filling of SMS Posts ........................................................................................................................1064.5 Job evaluation .................................................................................................................................1084.6 Employment changes ..................................................................................................................... 1104.7 Employment Equity ......................................................................................................................... 1184.8 Signing of Performance Agreements by SMS Members .............................................................1254.9 Performance rewards......................................................................................................................1264.10 Foreign Workers ..............................................................................................................................1324.11 Leave utilisation ..............................................................................................................................1334.12 HIV and AIDS & Health promotion programmes ..........................................................................1354.13 Labour relations ..............................................................................................................................1374.14 Skills development ..........................................................................................................................1414.15 Injury on duty ...................................................................................................................................1424.16 Utilisation of consultants ...............................................................................................................1434.17 Severance Packages .......................................................................................................................148

5. PART E: FINANCIAL INFORMATION ..............................................................................................1495.1 Report of the Auditor General to the Eastern Cape provincial Legislature on vote no.05 Department of Roads and Public Works ....................................................................1505.2 Annual Financial Statements for the year ended 31 March 2017 ...............................................158 5.2.1AppropriationStatement ...........................................................................................................158 5.2.2.NotestotheAppropriationStatement .....................................................................................182 5.2.3 Statement of Financial Performance ........................................................................................185 5.2.4. Statement of Financial Position ...............................................................................................186 5.2.5.CashFlowStatement ..............................................................................................................187 5.2.6.Accountingpolicies ..................................................................................................................188 5.2.7.NotestotheAnnualFinancialStatements(includingAccountingPolicies) .............................197 5.2.8.AnnexurestotheAnnualFinancialStatements .......................................................................231

PART A:GENERAL INFORMATION

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1. PART A: GENERAL INFORMATION

1.1 DEPARTMENT’S GENERAL INFORMATION

Full name of the department

Department of Roads and Public Works

PhysicaladdressofHeadOffice

Qhasana Building

IndependenceAvenue

Bhisho

5605

PostalAddressofHeadOffice

Private Bag x 0022

Bhisho

5605

Contact telephone numbers

0406024256(HeadofDepartment)

CallCentre:0800864951

Fax: 040 602 4001

Email address: [email protected]

Website address: www.ecdpw.gov.za

Facebook page: Eastern Cape Department of Roads and Public Works

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1.2 LIST OF ABBREVIATIONS/ACRONYMS

AFS AnnualFinancialStatements IAR ImmovableAssetRegisterAGSA Auditor-GeneralofSouthAfrica ICT Information&CommunicationTechnologyAIDS AcquiredImmuneDeficiencySyndrome IDMS Infrastructure Delivery Management System AIP AuditInterventionPlan IDP Integrated Development PlanAPP AnnualPerformancePlan IHC In-HouseConstruction

APTCOD AcceleratedProfessionalandTradeCompetencyDevelopment IT Information Technology

AR AnnualReport JPMC JointPropertyManagementCommitteeARP AnnualRecruitmentPlan JPS Junior Primary SchoolBCP BusinessContinuityPlan KPA KeyPerformanceAreaBCMM Buffalo city Metropolitan Municipality MEC MemberoftheExecutiveCouncilCAE ChiefAuditExecutive MMS Middle Management Service

C-AMP CustodianAssetManagementPlan MPAT ManagementPerformanceAssessmentTool

CFO ChiefFinancialOfficer MPSA MinisterofPublicServiceAdministrationCHC CommunityHealthCentre MTEF Medium Term Expenditure FrameworkCIO ChiefInformationOfficer N/A NotApplicableCRO ChiefRiskOfficer NDP NationalDevelopmentPlan

COBIT ControlObjectivesforInformationandRelated Technologies NT NationalTreasury

DORA DivisionofRevenueAct OFA OrganisationalFunctionalityAssessment

DPME DepartmentofPlanning,MonitoringandEvaluation OHS Occupational Health and Safety

DPSA DepartmentofPublicServiceAdministration OPD Out Patients DepartmentDRPW Department of Roads and Public Works OSD OccupationalSpecificDispensation

DRDLR Department of Rural Development and Land Reform O.R Oliver Tambo

DSD Department of Social Development OTP OfficeofthePremier

DSRAC DepartmentofSportsRecreationArtsandCulture PC PortfolioCommittee

DRP Disaster recovery Plan PAIA PromotionofAccesstoInformationActECD EarlyChildhoodDevelopment PAJA PromotionofAdministrativeJusticeActECSA EngineeringCouncilofSouthAfrica PCMT ProvincialCoordinatingManagementTeamEPWP Expanded Public Works Programme PDP Provincial Development PlanEXCO ExecutiveCommittee PFMA PublicFinanceManagementActFFC FinancialFiscalCommission PIC PublicInvestmentCorporation

FMF Facility Management Framework PMDS Performance Management Development System

FTE FullTimeEquivalent PMO ProjectManagementOffice

GIAMA GovernmentImmovableAssetManagementAct PMTSF Provincial Medium Term Strategic

FrameworkHDI Historically Disadvantaged Individuals POE Portfolio of Evidence

HIV HumanImmunodeficiencyVirus PPPFA Preferential Procurement Policy Framework Act

HOD Head of Department PPP Public Private PartnershipHR Human Resource RDLR Rural Development and Land Reform IAC InternalAuditCharter REMC RiskEthicsManagementCommittee

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PRMG ProvincialRoadsMaintenanceGrant SDM Service Delivery ModelPROMIS ProjectManagementSystem SITA SectorInformationTechnologyAgencyPSLDC ProvincialStateLandDisposalCommittee SLA ServiceLevelAgreementRAMS RoadsAssetManagementSystem SMME Small Medium Micro EnterprosesSAN StorageAreaNetwork SMS Senior Management Service

SANRAL SouthAfricanNationalRoadsAgencyLimited SSS Senior Secondary School

SCM SupplyChainManagement TA II TreasuryApprovalIISCOPA StandingCommitteeOnPublicAccounts TVET Technical Vocational Education TrainingSDF State Domestic Functions U-AMP UserAssetManagementPlanSDIP Service Delivery Improvement Plan WSP Workplace Skills Plan

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1.3 FOREWORD BY MEC OF THE DEPARTMENT

Inmy2016/17BudgetVote,IlikenedtheDepartmentofRoadsandPublicWorks(DRPW)toawell-oiledmachinethatistoleadtheEasternCapeas the Infrastructure hub of the Province.We, therefore begun a newfinancial year determined and energised to deliver on ourmandate asa centre of infrastructure delivery in the Province. In so doing we were guidedbythedeclarationbytheAfricanNationalCongress,ofthe2016financialyearasthe“YearofAdvancingPeople’sPower”aswellasthegovernment’s resolute commitment to changing the lives of its citizensforthebetter.OurcommitmenttorealisethevisionoftheANCofabetterlifeforallhasneverbeengreater,andourstrideshaveneverbeenmorepronounced.

It,therefore,givesmegreatpleasuretopresenttheAnnualReportontheperformanceoftheDepartmentofRoadsandPublicWorksforthefinancialyearended31March2017.Throughthisreport,wearemeetingthe legal requirement inenhancingaccountabilityand transparency,butmost importantly,wealsowish tocommunicate and inform our people on how the Department has fared well in meeting its commitments to deliver services to better the lives of the people. This report highlights achievements attained and challenges encounteredinrelationtopolicydirectivesandstrategicoutcomerelatedgoalsforthefinancialyear.

Notwithstanding a myriad of challenges we have encountered over this financial year in the delivery ofinfrastructure,wearepleasedwiththeachievementswehaverecorded.Theseinclude

• contributingtowards improvingthequalityofhealth invariousregions in theprovincebybuildingthreehealthfacilitiesnamely:CloeteJoubertHospitalintheJoeGqabiRegion,StPatrick’sHospitalintheAlfredNzoRegionandCalaCHCinChrisHani.

• renovationsandconstructionofsecurityfencingforanumberofschoolstoensuresafetyoflearnersandprotection of assets ;

• constructionofEarlyChildDevelopmentCentres(ECDCs)inSaraBaartmanandChrisHaniDistricts;

• convertingUpperNgqungqumudschool,intheO.R.TamboRegionintoconcretestructure;

• repairs and renovations at MosesMabida Library in Sara Baartman and Cathcart Public Libraries inAmatholeRegion;and

• increasingprovisionofofficeaccommodationtovariousgovernmentdepartmentsintheprovincefrom147743m² in 2015/16 to 149 000m2in2016/17.PlanstoimprovedeliveryofofficeaccommodationservicesthroughtheBhishoOfficePrecinctalsoreachedadvancedstagesduringtheyearunderreview.HavingobtainedtheTreasuryApproval(TAII)(approvalofspecificationstogooutontenderincludingdraftPPPagreement),thedepartmentisnowundertakingprocurementprocessesforthisnewdevelopment.

TheRoadsinfrastructureportfoliohasseenmajorroadsbeingrevitalizedacrosstheprovinceincludingthefollowing:-

• CentanetoQholorha

• SLA:TsolwanaMunicipality

• N6toWriggleswade

• CoffeeBaytoZithulele

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ThedepartmentfurtherconstructedanumberofcriticalbridgestoconnectinaccessiblevillagesnamelyBawa,ZazulwanaandMaziziniBridgesintheAmatholeRegionandMancamBridgeintheO.R.TamboRegion.Thishasprovidedmuchneededaccesstoschoolsbychildrenandclinicsbypatients,especiallyduringtherainyseasons. In the maintenance sub-programme the department exceeded targets for both re-gravelling of gravel roads and blacktop patching. This was mainly due to a conscious decision that was taken to focus on more sustainable and durable blacktop patching and re-gravelling activities rather than blading and resealing.

Thecommitmentmadebythedepartmenttocreatejobsaimedatensuringsustainablelivelihoodsforthepeopleofthisprovince,isevidentinthenumberofjobopportunitiescreatedbyExpandedPublicWorksProgramme.TheDepartment ofRoadsandPublicWorks, oncemoreexceeded its planned targets by creating54479workopportunities.Asacoordinatingdepartment,DRPWhasfurtherverifiedover143198workopportunitiescreated provincially despite the delays experienced due to challenges with the electronic system that was rolledoutduringthefinancialyearunderreview.

Tosupportallofthiswork,wehaveimprovedoursystems,processesandprocedurestoensurethateffectivegovernance iscontinuouslypromoted.Concertedeffortsonourpart tobuild internalcapacitybyputting inplaceregulatorymechanismstoconsolidatethecultureofworkingefficientlyledtoacontinuousimprovementinauditoutcomesfromadisclaimerin2012/13toaqualifiedauditopinioninthe2013/14and2014/15financialyears.ThismomentumofbuildingadepartmentthatisefficientandeffectivehascontinuedasthedepartmentachievedanunqualifiedauditopinionfromtheAuditor-GeneralofSouthAfricainthe2015/16financialyearandcontinuedtosustainthatachievementinthe2016-17financialyear.

We are on course to be a change agent with our delivery partners and communities in achieving departmental goals of transforming the sector to provide sustainable infrastructure that will result in socio-economic transformation,aninclusivegrowthpathandeconomicdevelopmentfortheprovince.

Weonceagain,acknowledgetheunwaveringsupportandcontributionmadebyourHonourablePremier,MrP.Masualle,theentireExecutiveCommittee(EXCO)members(MEC’s)andstakeholdersinensuringthatwedeliverinourmandateofbeenaleaderintheprovisionofhighqualityservicesininfrastructuredelivery.

I thank you.

Ms T. L. MarawuMECRoadsandPublicWorks

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1.4 REPORT OF THE ACCOUNTING OFFICER

Overview of the Operations of the department

ThisAnnualReport ispresentedata timewhen thesectordepartmentis accelerating the implementation of processes aimed at ensuring full responsiveness to theprovisionsof theGovernment ImmovableAssetsManagement Act of 2007 (GIAMA), with particular reference to thedepartment’s role as a custodian of immovable assets. The ExecutiveCouncilapprovaloftheFacilitiesManagementFrameworkrepresentsthefinalcornerstoneinthepositioningofthedepartmentasanervecentreofinfrastructuredelivery.ThisFrameworkfundamentallyre-definestheroleof DRPW and client departments in the infrastructure delivery value chain and creates an effective alignment totheInfrastructureDeliveryManagementSystem(IDMS),promisingtodeliverefficienciestoinfrastructuredelivery,maintenanceandsupport.

The implementation of the Framework will be further reinforced by the coming on-stream of the ProjectManagementOffice (PMO) in the2017/18 financial yearwhichwasprocured through competitive biddingduring the period under review. The implementation of a seamlessly integrated value chain for infrastructure delivery as demanded by the IDMS was given impetus by the establishment of the Infrastructure Procurement Directorate. Short-term contract capacity was mobilized while measures to put in place permanent capacity got underway.

FollowingconcurrenceoftheMinisterofPublicServiceandAdministration(MPSA),thedepartmentbegantheprocessofimplementingitsinterimstructure.Asatfinancialyear-end,theperson-to-postmatchinghadreachedan advanced stage and nearing completion. The implementation process also involved a process to ensure thatdirectivesof theMPSArelating toalignment togenericstructureswereadhered to.During theperiodunderreview,thedepartmentimplementedthequalityassuranceprocessonPerformanceAgreementsforallSMSmemberstoensurecompliancewiththecontractingprescriptsandtoachievealignmenttotheAnnualPerformancePlan.Thesuccessful implementationof thequality assuranceprocessaspart of theannualperformance management cycle will go a long way in closing the gap between individual and organisational performance.

Effortstocontinuallystrengthenthecontrolenvironmentweregivenasignificantboostwiththeimplementationoftheimprovedcontrolsattheendofthesecondquarter.TheimprovedcontrolsincludedrevisionstoSCMprocesses,revisionstoandintroductionofnewchecklistsforprevention,detection,reportingandcondoningorwritingoffofirregular,fruitlessandwastefulexpenditure.BothfinancialandpublicservicedelegationswerereviewedinlinewiththeMPSA’sdirectiveonPublicadministrationandManagementDelegations.

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Overviewofthefinancialresultsofthedepartment

Departmental receipts

Items

2016/17 2015/16

Estimate Actual collection

(Over)/Under

collection Estimate Actual

collection

(Over)/Under

collection R’000 R’000 R’000 R’000 R’000 R’000

Rentals Dwellings 30 720 11 953 18 767 25 111 12 381 12 730

Sale of Tenders 1 678 -1 678 2 394 -2 394

Sale of scrap 1 -1 39 -39

Rent on land - - - -

Sale of capital assets 13 231 -13 231 9 002 -9 002

CommissionInsurance 1 290 -1 290 1 241 -1 241

Transport Fees - - 1 -1

Refuse Removal 9 -9 16 -16

AssetsandLiabilities 400 2 544 -2 144 743 -743

Total 31 120 30 706 414 25 111 25 817 -706

Ownrevenueismainlyderivedfromtherentaldwellings,saleofgoodsandservicesotherthancapitalassets.Other sources include sale of tender documents as well as commissions.

Fortheperiodunderreview,departmentcollectedlessthantheprojectedestimatebyR414,000.Themainreason for the under collection is due to the delayed implementation of the parking policy and the refusal by the tenants to pay the market related rental rates. The refusal to pay market related rentals is mainly due to the poor condition of the state owned properties.

Measurestoraiseadditionalrevenueorefficient/effectivecollection:

Implementation plan for revenue management strategy

• Astrategyhasbeendevelopedformanagementofclosedschoolsforconversionintorevenuegenerationfacilities.

• TodevelopaPolicyandImplementationplanonOutdoorAdvertising.

• Disposalofsuperflousresidentialpropertiesinafairandtransparentmanner,givingpreferencetoexistingtenants who accept departmental offers.

• IssueExpressionsof Interest forsubmissionofproposalsonproperties identifiedfor landandpropertydevelopment,andforwhichfeasibilitystudieshavebeencompleted.

• Identify properties for developmental leases (Commercial, vending machine installation, unutilisedbuildings,andotherswithdevelopmentpotential)withprospectivebidders.

• Implementationofleasesonstate-ownedpropertieswithCellularNetworkServiceProvidersforinordertogenerate revenue.

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Sale of capital assets and reasons for the sale:

The department did not budget to receive revenue from the sale of assets in the 2016/17 financial year.SomeofthemoveableassetsweresoldatanauctionduringtheyearunderreviewandR13,231millionwascollected. The reason for the sale of these assets was due to the fact that they were obsolete and redundant. These moveable assets could not be donated to any Institution/Entity given their obsolete or unserviceable condition. These items would have been exposed to vandalism and theft and further deteriorations due to weather conditions were they not disposed.

It is imperative to note that the disposal process does not only terminate the use or control of a particular asset but also generates the need for a replacement to support continuous service delivery. Thus items disposed of needtobereplacedinordertomaintainthefleetsizerequiredforroadconstructionandmaintenance.

Bad debts written off:

DuringtheperiodunderreviewacumulativeamountofR1,970,190(2015/16:R811000)forbaddebtswaswritten-off. The bad debts written-off relate to miscellaneous suspense accounts and debts of employees who havesincelefttheservice.ThewriteoffwasdoneintermsofPFMAS76(1)(e)andS76(4)(a)andTreasuryRegulations 11.4.1.

Programme Expenditure

Fortheperiodunderreview(2016/17),expenditurestoodatR4,573billionor99%ofthetotaladjustedbudgetofR4,596billion.Thetablebelowprovidestheexpendituretrendperprogramme.

Programme Name

2016/17 2015/16

Final Appropriation

Actual Expenditure

(Over)Under

Expenditure

Final Appropriation

Actual Expenditure

(Over)Under

Expenditure R’000 R’000 R’000 R’000 R’000 R’000

1. Administration 570 112 561 730 8 382 521 880 512 291 9 589

2. Public Works Infrastructure 1 358 922 1 358 922 - 1 276 821 1 254 683 22 138

3. Transport Infrastructure 2 077 878 2 063 130 14 748 2 002 784 2 001 953 831

4.Expanded Public Works Programme

588 947 588 947 - 579 946 579 156 790

Total 4 595 859 4 572 729 23 130 4 381 431 4 348 083 33 348

ThedepartmentpostedanunderexpenditureofR23,130million,whichisattributabletothefollowing:

Programme 1: Administration

• TheincorrectdeliveryofconsultantsinvoicesamountingtoR1.598million.

• InabilitytoprocessaninvoicetotheamountofR5.084millionduetothethedeliveryoflaptopswhichdidnotmeettheissuedspecificationwithprocuredlaptops.

• InabilitytoprocessanincorrectinvoicetotheamountofR1.357millionforservicesrenderedintheprojectofenhancingthePROMIS,theintegratedprojectmanagementsystemofthedepartment.Theincorrectinvoice had to be returned back to the service provider for correction.

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Programme 2: Public Works Infrastructure

• Thereisnounderexpenditurerecordedunderthisprogramme.

Programme 3: Transport Infrastructure

• TheunderexpenditureistotheamountofR14,748millionwhichwasasaresultoflateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.

Programme 4: Expanded Public Works Programme

• Thereisnounderexpenditurerecordedunderthisprogramme.

Virements and rollovers

VirementswereeffectedduringthefinancialyeartorelievethecostpressuresonProgramme3:TransportInfrastructure and Programme 4: Expanded Public Works Programme. The cost pressures were as a result of theprojectsthatmovedfasterthananticipated.Thesevirementswerewithinthelegislated8%thresholdandin line with all relevant legislation and regulations governing virements.

The table below provides the summary of the virements that were effected in the period under review

Appropriation per programme 2016/17 2015/16

Voted funds and Direct charges

Adjusted Appropria-

tion

Shifting of Funds Virement

Final Ap-propria-

tion

Actual Expendi-

ture Variance

Expen-diture as %offinal

appro-priation

Final Ap-propria-

tion

Actual Expendi-

ture

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000Programme 1. Administration 579 385 - (9273) 570 112 561 730 8 382 98.5% 521 880 512 291

2. Public Works 1 391 550 - (32628) 1 358 922 1 358 922 - 100.0% 1 276 821 1 254 683

3. Transport Infrastructure 2 052 199 - 25 679 2 077 878 2 063 130 14 748 99.3% 2 002 784 2 001 953

4. Expanded Public Works Programme 572 725 - 16 222 588 947 588 947 - 100.0% 579 946 579 156

Programme sub total 4 595 859 - - 4 595 859 4 572 729 23 130 99.5% 4 381 431 4 348 083

Statutory Appropriation

Members’remuneration

Total 4 595 859 - - 4 595 859 4 572 729 23 130 99.5% 4 381 431 4 348 083

ArolloverapplicationofR6,441millionwasmadefortheequitableshareforthefollowingcommitments:

1. Laptopsforstaff–R5,084million;and

2. SoftwareenhancementofthePROMISsystem–R1,357million.

AnamountofR14,071millionhasbeenrequestedtoberolledoverforthePRMGforthecommitteddisasterprojects.

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Future plans of the department

• Implementationofthedepartment’sHumanResourcesStrategytocreateastrategicfocusonaddressingchallenges,whichincludeskillsshortfallintechnicalareas,recruitment,andsuccessionplanningamongstothers.

• Buildingcriticaltechnicalcapacityinthecoretechnicalareasofthedepartment.

• MainstreamEPWP interventions tomaximise impact in areas suchas artisan development, emergingcontractor empowerment and creating sustainable livelihoods for impoverished communities.

Public Private Partnerships

APublic-Private-Partnership(PPP)fortheconstructionoftheBhishoPrecinctwasregisteredwiththeNationalTreasury.Duringtheperiodunderreview,NationalTreasurygrantedApprovalIIofthePPP.Constructionworkon the precinct is expected to commence during 2017/18.

Discontinued Activities/Activities to be discontinued

Therewerenoactivitiesthatwerediscontinuedduringtheperiodunderreview.However,therole,functionand institutional arrangements related to In-House construction will come under sharp focus in the succeeding financialyearandmayresultinthediscontinuationofsomeactivitiesinthefuture.

New or Proposed Activities

The approval of the Facilities Management Framework imposed new activities on the department both during theyearunderreviewandthesubsequentfinancialyears. ThefollowingactivitiesrelatingtoallProvincialstate-owned facilities were taken on by the department during the reporting period:

• Day-to-daymaintenance,ad-hoc/unplannedmaintenanceincludingmaintenanceofplantandequipment;

• Cleaningofgardensandoutsidewindowsandlandscaping;

• Paymentofmunicipalservices(excludingschoolsandclinics)inrespectofofficeaccommodationrelatingto leased properties only;

• Paymentofratesandtaxes;

• Provisionofparkingservices;

• Installationandmaintenanceofairconditioningsystems;

• Installationandmaintenanceoffireextinguishingequipment;

• InstallationofITcabling,extensionleadandmultiplug.Onlyinrespectofleasedpropertiesandexcludingstate-owned facilities;

• Provisionofsecurityguards;

• Physical/Technicalconditionassessmentofbuildings;

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The following activities relating to all provincial state-owned facilities will be taken-on by the department in 2017/18:

• Paymentforparkingservices;

• InstallationofITcabling,extensionleadandmultiplug.Inrespectofstate-ownedfacilities;

• Provisionofmovableassetsecurity;

• Provisionofelectronicaccesscontrolsystems.

Supply Chain Management

During the year under reviewSCMbusinessprocesseswere revisedas part of strengthening the controlenvironment.

The following processes and/or checklists were approved and implemented:

- Prevention,detection,reporting,condoningandwritingoffofirregular,fruitlessandwastefulexpenditure.

- Frameworkforinvestigatingirregular,fruitlessandwastefulexpenditure.

- Revision of terms of reference and rationalisation of procurement committees.

- Establishment of procurement committees for infrastructure procurement

- Policy on Infrastructure Procurement and Delivery Management

The snow-ball effect of irregular expenditure remains a pervasive challenge. The department initiated investigationsintocasesofirregular,fruitlessandwastefulexpenditurewithavalueinexcessofR600million.Theoutcomeoftheseinvestigationswillseeasignificantreductioninirregularexpenditureandanimprovedcontrol environment.

Gifts and Donations received in kind from non-related parties

There are no gifts recorded during the reporting period.

Exemptions and deviations received from National Treasury

NoexemptionsordeviationshavebeenreceivedfromNationalTreasury.

Events after reporting date

EventsafterreportingdatearedocumentedintheapplicablenotesintheAnnualFinancialStatements.

Other

Noothermaterialfactsorcircumstances,whichmayhaveaneffectontheinterpretationandfairpresentationofthefinancialstatements.

Acknowledgements or Appreciations

Let me take this opportunity to express my sincere appreciation for the leadership and support provided by the HonourableMEC,ThandiswaMarawuandtheTopManagementoftheDepartment.LetmefurtherextendthisappreciationtotheDepartment’sseniormanagementandallstaffofthedepartmentinensuringthatservicedelivery is not compromised.

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The department would not be able to sustain its forward momentum in improving service delivery without the immense support of and oversight by thePortfolioCommittee onRoads andPublicWorks, StandingCommitteeonPublicAccounts(SCOPA),theAuditCommittee,theProvincialTreasuryandtheOfficeofthePremier. I therefore acknowledge their invaluable support and guidance and their efforts in ensuring that the department is held accountable for delivering on the mandate to the public.

Conclusion

ThedepartmentpresentsthisreportintermsofthePublicServiceActandthePublicFinanceManagementAct.ThisreportofferstheAccountingOfficertheopportunitytofullyaccountforboththefinancialandnon-financialactivitiesfortheyearunderreviewandtheresultsthereofascontainedindetailinthisAnnualReport.TheAnnualFinancialStatementshavebeenpreparedintermsoftheGuidetothePreparationoftheAnnualFinancialStatementsasissuedbyNationalTreasury.

Approval and sign off

Advocate James MlawuHead of Department31August2017

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1.5 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORT

Tothebestofmyknowledgeandbelief,Iconfirmthefollowing:

Allinformationandamountsdisclosedthroughouttheannualreportareconsistent.

Theannualreportiscomplete,accurateandisfreefromanyomissions.

The annual report has been prepared in accordance with the guidelines on the annual report as issued by NationalTreasury.

TheAnnualFinancialStatements(PartE)havebeenpreparedinaccordancewiththemodifiedcashstandardandtherelevantframeworksandguidelinesissuedbytheNationalTreasury.

TheAccounting Officer is responsible for the preparation of the annual financial statements and for thejudgementsmadeinthisinformation.

TheAccountingOfficer is responsible for establishing, and implementing a systemof internal control thathas been designed to provide reasonable assurance as to the integrity and reliability of the performance information,thehumanresourcesinformationandtheannualfinancialstatements.

Theexternalauditorsareengagedtoexpressanindependentopinionontheannualfinancialstatements.

Inmyopinion,theannualreportfairlyreflectstheoperations,theperformanceinformation,thehumanresourcesinformationandthefinancialaffairsofthedepartmentforthefinancialyearended31March2017.

Yoursfaithfully

Advocate James Mlawu Head of Department

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1.6 STRATEGIC OVERVIEW

1.6.1 Vision “Leader in the provision of high quality services in infrastructure delivery”

1.6.2 Mission “A custodian of provincial government immovable assets and a provider of sustainable infrastructure resulting in socio-economic reforms, sector transformation and development”

1.6.3 Values The DRPW holds the following values:

Values Statements

Commitment DRPW employees recognise that they have chosen to become public servants and, as such, are responsible and accountable to the peoplethey serve, the people of the Eastern Cape. This commitment will bedemonstrated in upholding and driving the values of the DRPW in the daytodayactivitiesregardlessofwhethertheyformpartofmanagement,operations,financeoradministration.

Integrity The department will consistently honour its commitments to its clients,stakeholdersandthepeopleupholdethicalconductandbehaviour.Assuchintegrity will form the foundation for good governance within DRPW.

Accountability Each individual in the DRPW is directly or indirectly involved in government service delivery in so far as infrastructure management and maintenance areconcerned.Assucheachindividualisaccountableforhis/heractions.

Professionalism As a department which provides a professional service in relation toinfrastructuredelivery,roaddeliveryandoverallinfrastructuremanagementandmaintenance,thedepartmentcommitsitselftoprofessionalconductinallareasofmanagement,operations,financeandadministration.

Service excellence The department will strive for excellence in the delivery of department mandate and in the execution of services and commit ourselves to become thebestin“whatwedoandhowwedoit’’,withaworkforcethatismotivatedand diligent in dealings with all departmental stakeholders.

Transparency The staff members will display transparency in the way we work and communicate with honesty and integrity in all relationships.

Innovation The staff members will embrace a challenging style that encourages creativity,freethoughtandcalculatedrisk-takinginpursuitofeverhighergoals.

Fairness Thestaffmemberswillacceptresponsibilityforconsequencesandcommitto fair application of policies without abuse and manipulation.

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1.6.4. Legislative and Other Mandates

Constitutional Mandates

Legislative Source Directives in relation to the mandate, roles and responsibilities of the DRPW

Constitution of the Republic of South Africa, 1996 (Act108of1996)

Part A of schedule 4: Public Works has a responsibility only in respect of the needs of the provincial departments in the discharge of their responsibilities to administer functions specially assigned to them in terms oftheconstitutionoranyotherlaw(ConcurrentnationaldepartmentistheDepartmentofPublicWorks).

Part A of the schedule 5: which deals with the “Functional Areas ofExclusiveprovincialLegislativeCompetence”liststheProvincialRoadsasone of the competencies allocated to the DRPW.

Legislative Mandates

The legislative mandates for the DRPW comprise the following legal prescripts:

Legislative Source Directives in relation to the mandate, roles and responsibilities of the DRPW

National

Government Immovable Asset Management, Act 19 of 2007

Intermsofsection4(2)(a)(b)(ii)&(c)DRPWisdesignatedascustodianofEasternCapeProvincialimmovableassetsresponsibleforallactivitiesthatareassociatedwithcommonlawownershipincludingplanning,acquiring,managing and disposing immovable assets in relation to government officespace,governmentwarehousing,socio-economicinfrastructuree.g.schools,clinics,hospitalsetc.keyresponsibilities:citefromGIAMA.

Provincial

Eastern Cape State Land Disposal, Act 7 of 2007

In termsofsection5(1) (2)&(3)of theAct, theDRPWisresponsible foracquisitionanddisposalof immovablepropertyonbehalfof theEasternCape Provincial Government subject to the approval of the Premier-in-Executive.

Eastern Cape Roads Act (3/2003)

ThisAct was promulgated for the stated objectives “To consolidate thelaws relating to provincial roadsof theEasternCape; to provide for theplanning, design, development, construction, financing, management,control,maintenance, protection and rehabilitation of provincial roads intheProvinceof theEasternCape;and toprovide formattersconnectedtherewith.”P1For instance, theAct requires theMEC tocompilea listofall provincialproclaimedroads.(P6)ItfurtherstatesthatonlyProvincialroadslistedintermsoftheActmustbeunderthecontrolandsupervisionoftheMECandhe/sheisnotobligedtocontrol,maintain,protectorrehabilitateanyroadnotlisted.(p7)

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1.6.5 DRPW organisational structure

Member of the Executive Council

Ms T. Marawu

Head of Department

Adv. J. Mlawu

Chief Financial Officer

Ms Z. Madikazi (Acting)

Chief Information Officer

Ms Z. Ngcwabe

Chief Director: Corporate Services

Mr S. Kufa

Chief Director: Strategic Management

Unit

Ms N. Matyana

Chief Audit Executive

Ms K. Siqendu Chief Director: Public Works Infrastructure

Mr M. Mduba


Chief Director: Immovable Asset

Managemet

Ms P. Malgas

Chief Director: Expanded Public Works Programme

Mr Q. Mageza


Deputy Director General: Transport Infrastructure

Mr M. Mafani (Acting)


Regional Director: Alfred Nzo

Ms A. Moleko

Regional Director: Amathole

Dr P. Lupuwana

Regional Director: Chris Hani

Mr Z. Kalako

Regional Director: Joe Gqabi

Mr M. Putu

Regional Director: OR Tambo

Ms K. Tyali

Regional Director: Sarah Baartman

Mr L. Manqele

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1.7 ENTITIES REPORTING TO THE MEC

There are no entities in the department’s portfolio reporting to the MEC.

PART B: PERFORMANCE INFORMATION

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2. PART B: PERFORMANCE INFORMATION

2.1 AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

Theauditor-general’sreportonpredeterminedobjectivesisdocumentedunderthesub-heading“ReportontheauditoftheAnnualPerformanceReport”publishedasPartE(AnnualFinancialStatementsoftheDepartment’sAnnualReport).

2.2 OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.2.1 Service delivery environment

Custodianship of Provincial Immovable Assets

Initsroleasacustodianofimmovableassetsoftheprovince,thedepartmenthasdonewelltoensurethattheinformationunderitscustodyisup-to-date,accurateandreliable.Thisisdonethroughpro-activelyandcontinuously updating the ImmovableAsset Register (IAR /Logica system) with newly vested properties,with value added information such as tenure and land use information obtained through land audits and site inspections.

The challenge of assets that reflected R1 or no value were successfully mitigated when the departmentcommenced with the implementation of municipal valuations as well as values for exceptions per the new disclosurerequirementfromNationalTreasury.Thisprocesswillassistgovernmenttodiscloseitsassetsatamorerealisticvalue,whichcontributetopositivenationalcreditratings.

Furthermore, the Rates and Taxes Turn-Around Strategy implemented in the 2016/17 financial year hascontributed to the improved relations between the department and municipalities especially on clearance of old debt, payment of current debt and alignment of asset registers between the respective spheres ofgovernment.

Thepicture in relation to immovableassets in theprovince isbecomingclearer.Todate,a totalof21531propertiesarerecordedintheRegister(Logica).Thisisanincreaseof812recordsfromthepreviousfinancialyear. The number of assets recorded includes all assets which the department is liable for the payment of ratesandtaxedtomunicipalities,including1426statedomesticfunctionsonunsurveyedland(propertynotsurveyed)aswellas3111 landparcels (propertynot registered) in the relevantdeedsoffice.The21531comprisesof11422propertiescontrolledbyDRPWasreflectedinAnnexure9oftheARand10909propertiescontrolledbyDepartmentofHumanSettlement.Thelatterfigureisincludedbecausethedepartmentisliablefor the payment of rats & taxes to municipality.

The department has been performing the land administration function in the environment where most of the provincial facilities are sitting on unsurveyed land. The department then took the initiative and commenced with a provincial survey programme over a three-year period in order to fast track surveying of unsurveyed provincialfacilities.Itsuccessfullysurveyed205propertiesinthe2016/17financialyearagainstthetargetof100.Alloftheaboveledtoanincreaseinratesandtaxespaidtostrugglingruralmunicipalitiesthusimprovingtheir viability as envisaged in the provincial priorities.

Thedepartmentalsoprides itself for the reliabilityof information in its ImmovableAssetRegister (IAR)asconfirmedbytheAuditor-Generalthroughanunqualifiedauditoutcome.

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Thisisanoutstandingachievement,consideringthattheEasternCapeProvincehasthemostnumberofstatelandparcelsinthecountry,andfurtherconsideringthecomplexityofthehistoriclandregistrationandtenuresystemsinheritedfromthecolonialpast.Moreimportantly,thisistheinformationthatgovernmentneedstoplanbetter,basedonreliableevidence.

Inordertoimproverevenuegenerationthroughprovincialimmovableassets,thedepartmentandthelocallybasedEasternCapeDevelopmentCorporation(ECDC)establishedaJointPropertyManagementCommittee(JPMC).ThepurposeoftheJPMCistoensurethatthereisco-operationandalignmentinthemannerinwhichthe two entities deal with revenue generation in relation to immovable assets of strategic nature as well as to share property related information and assist each other in skills transfer.

ThedepartmentalsoapprovedtheRevenueManagementStrategy,whichwillassisttheprovincetoincreaserevenuegeneratedthroughitspropertyportfolio.Thestrategyoutlinesprojects,whichhavebeenidentifiedtogenerateneededadditionalrevenuestreamstomeettheProvincialGovernment’sdevelopmentalobjectives.These revenue streams include, inter alia, outdoor advertising, telecommunication leases, parking fees,commercialpartnership,retailfacilitiesonstatepremisesandsigningofnewleases.

Inco-operationwithotherstakeholders,thedepartmentcompleted90conditionassessmentswithmaintenanceplans for state-owned buildings. It also continued to provide monitoring and technical assistance to the User departments on compilation of their UserAsset Management Plans (U-AMP).All of this information wassuccessfullyincorporatedintotheCustodianAssetManagementPlan(C-AMP)basedonthenewspacenormsandsubmittedtoProvincialTreasurytoguideplanningandbudgetallocationfortheofficeaccommodationneeds of all provincial user departments.

To date, the department provides office accommodation to the extent of 149 000 squaremeters to userdepartments.PlanstoimprovedeliveryofofficeaccommodationservicesthroughtheBhishoOfficePrecinctreached advanced stages during the year under review. The architecture designs of the complex were completed andapproved.TheTAIIapprovalforspecificationstogooutontenderincludingadraftPPPagreementfortheprecinct was obtained. The funding challenge to secure bulk service infrastructure has been resolved with an agreementwithBuffaloCityMetropolitanMunicipalityandNationalTreasury.

Building Infrastructure Implementation

Inkeepingwithitsmandateasthe“nervecentre”forinfrastructuredeliveryintheprovince,thedepartmenthassuccessfullycontributedtowardsincreasingaccesstoqualityservices,particularlythroughprovisionofeducation,healthcareandtransportinfrastructureintheprovince.MostchallengesthatcontinuedtohampertheDepartmentofRoadsandPublicWorksfromdeliveringonitsmandatewereinthemain,thefundingandcapacity constraints.

The department has been specifically strugglingwith balancing its transformation agenda and successfuldelivery of its services. The transformation agenda of the department intends to provide opportunities for empowering the emerging contractors in the construction sector as a means of skills development. On the other hand, the lackofcapacitycoupledwithfinancialmanagementconstraintsamongtheemergingcontractorsthatwereusedby thedepartment todeliveron itsprojects,derailed theprogress towardsachievementofobjectives.Despitethesechallenges,thedepartmenthascompletedallthree(3)healthfacilitiesplannedforthe2016/17financialyear.

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TheseareCloeteJoubertHospital,StPatricksHospitalandCalaCHCbuildingrepairsandrenovations.Thedepartmenthasfurthercompletedprojectsrelatingtothefollowingschools:UpperNgqungquJSS,MagwaxazaJPS,BulelaniSSSandMfesaneSSS.

Inanongoingefforttofullyrespondtotheneedsoftheclientdepartments,thedepartmenthascompletedrenovationstotheZwelitshaRoadsLaboratory,ButterworthTrainingCentre,commissionedairconditionersatMalutiCollege,whichhousesanumberofgovernmentdepartmentslikeSports,Recreation,ArtsandCulture(DSRAC), Education,Agriculture, Economic Development & Environmental Affairs, and Health, and alsoreplacedseven(7)passengerliftsatTyamzashebuildinginBhishoandagoodsliftsatDSRACbuildinginKingWilliam’sTown.Theseprojectshavegreenbuildingfeaturesonenergysavingthroughlights.Inaneffortto taketheGreenBuilding initiativeforward, thedepartmenthasfurtherprocuredtheservicesofaserviceprovider to conduct energy use audits.

Transport Infrastructure Implementation

The DRPW is responsible for the maintenance of the provincial road network of approximately 42 000km of pavedandunpavedroads.Only10.1%or4213.33kmispavedand89.9%percentor37512.94kmoftheroadnetworkisunpaved.TheDRPWhasdevelopedandimplementedaRoadAssetManagementSystem(RAMS),which isacomprehensivesetofmanagementproceduresthatareusedtomonitor,maintainandimprovetheconditionoftheroadnetwork.Anincreasingamountofprovincialroadsassessedisfoundtobeina poor to very poor condition. The funding model used for the road network is also not assisting the province in alleviating the deterioration of its road network over the years.

The Premier committed to ensuring that SMMEs benefit from government spending, and the DRPW iscontinuingtoimplementthiscommitmentinallitsprojects.Thisefforthasalsometsomechallengeswithlocalcontractorsdisputingsomeoftheappointmentsintheroadsinfrastructurespace,resultingindelaysinsomeoftheprojects.Thedepartmenthasmadeeffortstostrengthensocialfacilitationtounblockobstaclesthatwerehampering progress in the delivery of services.

Becauseoftheabove,theprogressonmulti-yearprojectsremainedsteady.Insomeinstances,thedepartmentcould not achieve desired outcomes on rehabilitation and reseal of surfaced roads because of the control measures that were put in place to curb possible unauthorised expenditure. The funds intended for these programmes were reprioritised to existing commitments in the regravelling and blacktop patching targets resulting in over achievement in those areas.

Job opportunities created through EPWP

The Expanded PublicWorks Programme (EPWP), which is the flagship programme for job creation andpovertyalleviation,continuedtoexceeditsplannedtargetsbyemployinglabour-intensivemethodsinsomeof the roadsandbuildings infrastructureprojects.This achievement showsDRPW’s commitment to usinginfrastructureexpendituretobenefitthepoorestofthepoorintheprovince.

The department is also on course in developing a skilled and capable workforce to support an inclusive growth path.Ofthe854learnersrecruitedandtrained,only492wereultimatelyappointed.ThiswasduetodelaysinprovincialprocessesforapprovalofappointingAPTCoDlearnerscoupledwiththenon-availabilityoffunds.Thedepartmentcontinuedtodowellinrelationtoitsstrategicobjectiveofpromoting,integrating,coordinatingandmonitoringtheimplementationofEPWPPhase3.Allseven(7)interventionstosupportpublicbodieswereimplemented and it also ensured that all public bodies are reporting on the EPWP reporting system.

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Theamalgamationofmunicipalities,followingthelocalgovernmentelectionnearlyderailedtheachievementoftheabove-mentionedstrategicobjectivebecausethechangesinthepoliticalleadershipatlocalgovernmentlevel negatively affected the sitting of roads forum meetings.

2.2.2 Service Delivery Improvement Plan

ThefollowingtablesreflectthecomponentsoftheSDIPaswellasprogressmadeintheimplementationofthe plans.

Main services and standards

Main services Beneficiaries Current/actual standard of service

Desired standard of service

Actual achievement

Maintenance of roads network.

Road users. The department exceeded the desired standard by maintaining 217 261m2

of provincially proclaimed roads infrastructure within agreed time period. This amountsto117%of the 185 739m2

To maintain at least70%ofthe 185 739 m2 p.a. of provincial proclaimed roads within the agreed time period.

The department maintained 281 278.6m2 of Provincial proclaimed roads infrastructure within agreed time period.

Thisamountedto113%of the 5yr target. The rehabilitation and reseal programmes have been deferred to the 2017/18 financialyear.Thisisdue to delays in the Bisho Revitalization project,andtheimpact of delays in procurement for the reseals programme.

Procurement of goods and service.

Departmental internal and external stakeholders and client departments.

The department did not achieve the planned standard in2015/16 103 (75%)outof138total number of bids received were processed within an average of 214 days.

Process at least70%ofprocurement requestsforgoods and services above the R500 000.00 threshold within 110 days of receipt of the request.

The department provided82%ofexpense lease portfolio for 2016/17 within the valid period.

Hiring and letting accommodation.

Clientdepartments and tenants.

The department provided 79%(95/121)of leased accommodation within the valid period.

80%ofleasedaccommodation provided within 90 days.

The department provided82%oftheexpense lease portfolio for2016/17financialyear,withinthevalidperiod.

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2.2.3BathoPelearrangementswithbeneficiaries(ConsultationAccessetc.)

Key Service 1: Maintenance of Roads network

Current arrangement Desired arrangement Actual achievement

Consultation

Communityizimbizo,Road Forums and Integrated Development Plan forums.

Communityizimbizo,Road forums and IDP forums.

Duringtheyearunderreview,RoadForummeetingswere held in 8 municipalities across the province. Some could not sit due to local government elections which disrupted the convening of roads forums.Changes in thepolitical leadershipat localgovernment level also negatively affected the sitting of roads forum meetings.Through the MEC’s office, the department hadseveral engagements with the roads stakeholders in Nyandeni Local Municipality, Mhlontlo LocalMunicipality and during the launch of Dwesa road in Willowvale as well as other roads to be constructed in 2017/2018.

Access

Districtroadsforum,District Roads Engineerofficeannually.

Districtroadsforum,District Roads Engineerofficequarterly.

Road users accessed the roads maintenance servicesattheHeadOfficeinBhishoandinallsixregionalofficesatMtAyliff,Mthatha,EastLondon,PortElizabeth,QueenstownandSterkspruit.This service was also accessible over a toll-free telephone line to the department.

Courtesy

Front-line personnel trained on the Batho Pele Principles on how to deal with stakeholders.

Front-line personnel trained on the Batho Pele Principles on how to deal with stakeholders. Re-arrangement of the sitting of customer careofficersandsecurityofficesinthemain entrance.

Several road users have engaged with courteous DRPWofficials likeRegionalDirectorsandDistrictRoad Engineers in Regions as well as front-line customer care officials at HeadOffice and over atoll-free telephone line to the department. Alltheseofficialshavebeenprovidedwithnametagstoensureeaseofidentificationshoulddissatisfactoryservice be received by clients of the department. Clientsofthedepartmenthavealsobeenissuedwithvisitor tags and allocated a spacious waiting area at theHeadOfficepriortoconsultation.

Openness and Transparency

Road plans are published in the departmental documents like the AnnualPerformancePlan,MEC’sBudgetand Policy Speech in thewebsiteandMECand HoD consultative sessions.

Continueprovidinginformation through thewebsite,MEC/HoD consultative sessions and external flyers;duringRoadForums and through Regional Directors and District Road Engineers at District Municipality level.

The departmental website and Intranet are continuously updated with current information and events of various programmes including roads maintenance. Tender adverts on roads maintenance are published on the website, various newspapersand departmental notice boards to ensure transparency on trading opportunities provided by the Department.

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Redress

Thedepartment,throughroadforums,consults the affected communities to offer an apology and full explanation and commit to rectify the situation.

Thedepartment,throughroadforums,consults the affected communities to offer an apology and full explanation and commit to rectify the situation.

The organogram of the department and the customer services charter are attached to the website to show managers responsible for each programme and also the line of escalation should our clients get dissatisfactory services. The department is making a concerted effort to address road related challenges through one-on-one engagements, roads forumsandalsothroughpaymentofroaduser’sdamages.

Value for money

The department has mapped business processes in order todefineandmaximise value as perceived by citizens; ensure that services areaccessible,appropriate,andadequatetocitizens’needs and that waste and unnecessary expenditure,andprocedure are eliminated.


Thedepartment isconstantlyassessingall three “Es”of value for money depicted below in all its roads maintenance services.

The procurement and in-house activities are assessed to ensure that the service is provided in an economical manner. The processes are mapped and standard operating procedures defined to identify unnecessaryprocesses so as to ensure the provision of this serviceinanefficientmannerandservicestandardsarevisibleinallregionalofficeentrances.The programmehas also adjusted and optimisedits maintenance strategy this year to perform more sustainable and effective maintenance activities like regravelling and blacktop patching.

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Key Service 2: Procurement of goods and service


Consultation

Demand Management unit constantly engaging the internal users and suppliers telephonically.

Demand Management unit constantly engaging the internal users and suppliers telephonically and through contractor conference annually.

Contractorandconsultantsengagementssessionswere held where information was shared in relations totheplansofthedepartment,theirconcernsandneeds were considered and resolutions were taken to ensure maintenance of mutual relations. AsupplierdaywasconductedbyProvincialTreasuryon behalf of all departments as a control measure to strengthen the communication between them and suppliers.

Access

Physically through itsoffices,throughtelephones,emails,NationalTreasuryDatabase,newspapersetc.

Physically through itsoffices,throughtelephones,emails,NTDatabase,newspapers etc.

Suppliers accessed the procurement services on a face to facebasisat theHeadOffice inBhishoandinallsixregionalofficesatMtAyliff,Mthatha,East London, Port Elizabeth, Queenstown andSterkspruit. The quotations and adverts for bids were alsoaccessible through notice boards, emails,departmentalwebsite,tenderbulletin,e-portalandi-tender.

Courtesy

The departmental front line personnel has been trained on the Batho Pele Principles and on how to deal with stakeholders.

To continuously train departmental personnel.

Suppliers have engaged with courteous DRPW Supply Chain officials or their supervisors and managersin Regions and at Head Office as well as front-linecustomercareofficialsatHeadOffice.Alltheseofficialshave been provided with name tags to ensure ease of identificationshoulddissatisfactoryservicebereceivedbyourcustomers.Clientsofthedepartmenthavealsobeen issued with visitor tags and allocated a spacious waitingareaattheHeadOfficepriortheconsultation.


Beneficiariesaccessthe department physicallyHeadofficesandregionalitsoffices,throughtelephones,emails,NationalTreasuryDatabase,newspapers etc.

Beneficiariesaccessthe department physicallyHeadofficesandregionalitsoffices,throughtelephones,emails,NationalTreasuryDatabase,newspapers etc.

Briefing sessions are held for all advertised bids toclarify requirementsandensure that ourprocurementprocesses are fair, open and transparent to all. Thedepartment also informs unsuccessful bidders in writing.

Redress

The process of redress is through customer complaint handle system that is managed by fully fledgedcustomercareunit.

The process of redress is through customer complaint handle system that is managed by fully fledgedcustomercareunit and Management of existing suggestion boxes through the appointment of complaints management committee.

The redress is done through a customer complaints handling system that is managed by the CustomersCareUnit.

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Value for money


Additionaltothe current year arrangements the DRPW is also comparing full cost of goods and services charged in our procurement with various guidelines on transversal agreements and term contractswithinDPSA(consultantfees),NT(consumables-CFO),SITA(ITrelatedgoodsandservices)beforeadecision to procure is taken.

Thedepartment isconstantlyassessingall three “Es”ofvalue formoney inall itsprocurement.Allbidsareassessed to ensure that the service will be provided in an economical manner. The processes are mapped andstandardoperatingproceduresdefined to identifyunnecessary processes so as to ensure the provision of thisserviceinanefficientmanner.Theprogrammehasalsocapacitated theSCMfunction toensureeffectiveand timeous provision of this service.

Key Service 3: Hiring and Letting accommodation


Consultation

Property summits annualandquarterlyImbizo.

Property summits and Imbizo and constant monthly meeting with tenants.

The department is currently engaging with user departments for office space through user forummeetings,bilateralmeetingsandquarterlymeetings.

Access

The application of Lease accommodation is done through the officetheHOD.


The provision of leased accommodation services is currentlyaccessedattheHeadOfficeinBhisho.

Courtesy

Adepartmentalfrontline personnel has been trained on the Batho Pele Principles and on how to deal with stakeholders.

To continuously train departmental personnel.

Clientdepartmentsand tenantshaveengagedwithcourteous DRPW Property Management staff and front-linecustomercareofficialsatHeadOffice.Alltheseofficialshavebeenprovidedwithnametagstoensureeaseofidentificationshoulddissatisfactoryservice be received by our clients.Clientsofthedepartmenthavealsobeenissuedwithvisitor tags and allocated a spacious waiting area at theHeadOfficepriortoconsultation.




The department is currently engaging with user departments for office space through user forummeetings,bilateralmeetingsandquarterlymeetings.

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Redress

Redress is done through customer complaint handle system that is managed by a fully-fledgedcustomercareunit.

Additionaltothe current year arrangements theComplaintsManagement Committeeisalsomanaging the existing suggestion boxes.

Redress is done through customer complaint handling system.The management of existing suggestion boxes through the appointment of complaints management committeeismanagedbythefullyfledgedcustomercare unit.

Value for money



The department is constantly assessing all three “Es”ofvalue formoney inall itshiringand lettingservices. The procurement and in-house activities are assessed to ensure that the service is provided in an economical manner. The processes are mapped and standard operating procedures defined to identify unnecessaryprocesses so as to ensure the provision of this serviceinanefficientandeffectivemanner.The department is also implementing various other activities to derive value for money like reviewing andimplementingnewspacenormsandstandards,implementing market-related rentals and developing a revenue strategy.

2.2.4 Service Delivery Information Tool:

Current/ actual arrangements

Desired arrangements

Actual achievements

Information is disseminated through exhibitions,publicservice month celebrations and the customer care information desk.

Regions to participate moreinExhibitions,Public Service Month and have more information on the information desk.

Department has participated on career expos and in Intergovernmental activities to provide more information on itsservicesandrespondtoenquiries.Participationincluded Buffalo City College career expo, Office ofthe Premier Youth Summit, internal departmentalevents. The Department held its Public Service Month celebrationinAmatholedistrict.

2.2.5 Complaints mechanism

Current/ actual complaints mechanism

Desired complaints mechanism

Actual achievements

Complaintsarereceive through the presidentialhotline,DRPWhotline,walk-ins,electronicallyandforwarded to relevant sections and regions for a speedy response.

-Complaintshandling•procedure to be displayed within the Department.-ApprovedCustomer•Carepolicyreflectingcomplaints handling to be circulated.-Suggestion boxes in •allDRPWoffices.

Allcomplaintsreceivedthroughthepresidentialhotline,DRPWhotline,walk-insandelectronicallyareescalatedto the relevant head of programmes and regions. The Departmentachieved90%against80%responseratetargetsetbyOfficeofthePremier.Thedepartmenthas,in the past 12 months, ventured on social networksspecifically facebook. Currently the department hasmore than 6000 followers and engaging citizens on a daily basis.

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2.2.6 Organisational Environment

Initsendeavourtoaligntothenationalpriorityofcreatingatransformedpublicservicewhichisrepresentative,coherent, transparent, efficient, effective, accountable and responsive to the needs of its citizens; theDepartmentofRoadsandPublicWorkshascommitted tobecomingmoreeffective,operationallyefficientandprudentincarryingoutitsmandatethroughbetteruseofitshuman,financialandtechnologyresources.However,theorganisationalenvironmentoftheDRPWcontinuedtoremainastrategicchallengeandposedamajorconstrainttotheperformanceofthedepartmentagainstitsStrategicPlanandAnnualPerformancePlan.

Thefirststrategicchallenge,inrelationtotheorganisationalenvironment,wastheissueoftheineffectivenessofthecurrentorganisationaldesign.Thisineffectivenessisevidentintheinsufficiencyofcapacityinthecurrentorganisationalstructureitselfandthewaythedepartmentalresourcesareconfiguredanddeployedinresponseto the environment in which it operates. The organisational structure that accommodated the roads function thatwastransferredfromtheDepartmentofTransportin2009wasonlyapprovedin2016/17.Effectively,thedepartmentfunctionedformorethan10yearswithanorganisationalstructure,whichwasapprovedin2006,although components and posts were added over time.

The most fundamental issue was that failure to revise the establishment created a misalignment with the strategicthrustofgovernment,whichintroducedanoutcomes-drivenapproachtostrategy.TheInfrastructureDeliveryManagementSystem(IDMS)initiativebyNationalTreasuryandNationalDepartmentofPublicWorksfurthercompoundedtheissueofstrategicandoperationalmisalignment.Tomitigateagainstthischallenge,thedepartment,duringthecourseof2015and2016,hasembarkedinaprocessofdevelopingitsServiceDeliveryModel(SDM),whichwaslaterapprovedinDecember2016.

Thismodelseekstorefinethedefinitionofthedepartment’smandateandtoclearlyarticulatethefunctionsandservicestobedeliveredbythedepartment,howitshoulddelivertheseservices,specificmodesofdeliveryincludingpartnershipsandtheresourcesrequiredtodeliverthoseservices.ThisnewSDMprovidedagoodfoundation for the revised organisational design process that the department has also started in the year under review.

Thedepartmentcommencedwiththematchingandplacingexerciseonlyduringthelasthalfofthefinancialyearunder review following the approval of the 2009 structure. The delay in this exercise also affected the approval of the 2016/17AnnualRecruitmentPlan (ARP), resulting in limited capacitation in critical service deliveryareas of the department. The capacity constraints were further exacerbated by the loss of key personnel in the FinanceandICTspace,lossofcontractworkersresultingindestabilisationofrecentlycapacitatedfunctionslikeInternalControlandConstructionProcurement,lossofinternsthatwereassistingtofillthecapacitygapsand a moratorium placed on appointment of posts vacated through natural attrition.

All these factorscontributed towardsdestabilising theorganisationalenvironment inwhich thedepartmentoperated. The Department of Roads and Public Works has also been beset by the vacancy rate of Regional DirectorsinthefollowingRegions,AlfredNzo,(incapacityleaveforalongperiod),ChrisHani(transferredtoHeadOffice)andSarahBaartman(retirement).TheDepartmenthassincefilledthosevacanciesbyappointingpermanentRegionalDirectorsduringthecourseofthefinancialyear.

In spite of these challenges skills development remained the cornerstone of our efforts to build sustainable capacity.Thedepartmentcontinuedtoinvestinouryouththroughitsbursaryscheme,whichhasseen112bursariesawardedin2016/17,210graduateinternsand100TVETlearnerscontracted.Theskillsdeveloped

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throughthebursaryscheme,trainingofinternsandTVETcollegelearnerscreatedthemuch-neededcapacitythat can progressively be integrated into the permanent institutional arrangements of the department. Efforts to build capacity included assisting these learners to achieve professional registration once their studies are complete and have undergone training.

The focus was also placed on ensuring that personal development plans developed during the contracting processwithemployeesfindexpressionintheWorkplaceSkillsPlanandimplementeddiligentlywithoutcomesbeing monitored for effectiveness.

The strengthening of the internal control environment in the department was given a boost in the last year by the introduction of a number of controls and revisions to the existing ones. These included revisions to the SupplyChainbusinessprocesses,approvalofamethodologytoconductinvestigationsforcasesofirregular,fruitlessandwastefulexpenditure,theapprovaloftheinfrastructureprocurementstrategy,therevisionstothePFMAdelegationsandtheadoptionofanewservicedeliverymodelforthedepartment.

The department is determined in ensuring that these sweeping revisions to the internal control environment willyieldvisible results from thebeginningof the2017/18financialyear.These improvementswillalsobestrengthenedbytheimplementationofanHRStrategythatiscurrentlyasubjectofconsultationwithorganizedlabour. The department investigated cases of irregular expenditure from prior years. The results of these investigationswillbethatnolessthan10officialswillbesubjectedtodisciplinaryactionfortheirroleinincurringirregular expenditure. We are pleased to report that internal capacity to undertake these investigations has been institutionalized through theestablishmentofacomplianceunitwithin InternalControl,whichwill beresponsible for undertaking such investigations to ensure those responsible are held to account.

Theemploymentequityhasalwaysbeenasensibleonebasedontheneedtobalancetheneedtoincreasethe numbers of designated groups, while ensuring that training and ongoing support are part of themixof interventions. We are happy to report that we have managed to raise the number of women in Senior ManagementService(SMS)from34%to39%.Similarly,peoplewithdisabilitiesconstitute1.6%ofthetotalworkforce of the department.

InordertofulfilitsmandateofbeingahubandnervecentreforthedeliveryofInfrastructureintheProvince,the department has commenced with the development of an Infrastructure Delivery Management System (IDMS)alignedprojectmanagementsystemthatwillenabledepartmentalprojectmanagersandmanagementtotrackandmonitortheperformanceandexpenditureofallDRPWprojects.

ThedepartmentiscontinuouslytestingefficiencyandeffectivenessofitsoperationalenvironmentusingavarietyofassessmenttoolkitslikeManagementPerformanceAssessmentTool(MPAT),OrganisationalFunctionalityAssessment(OFA),ControlObjectivesforInformationandRelatedTechnologies(COBIT5)thatareadoptedas government-wide best practice assessment methods for outcome 12. The results of these assessments assisttohighlighttheleveloffunctionality,capacitychallenges,strengthsandimprovementopportunitiesforthedepartment.GenerallythefindingsfromtheseassessmentsreflectimprovedmanagementtrendswithinDRPW,insomeinstancesincomparisonwiththesectorbroadlyandtheprovince.

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2.3 KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES

There were no key policy developments or legislative changes that had a bearing on the mandate of the department in the period under review.

2.4 STRATEGIC OUTCOME-ORIENTED GOALS

Theoutcomes in relation to theNational andProvincialDevelopmentPlan (NDPandPDP) towhich theDepartment is contributing, as well as achievements and progressmade towards the attainment of five-year targets in line with the strategic outcome-oriented goals as per the 2015/16 -2019/20 Strategic Plan are articulated below.

Strategic Outcome Oriented Goal 1

EffectiveandEfficientadministrativecapacityfullyresponsivetothedepartment’s mandate by 2020.

Links to National Outcomes and NDP.

Outcome 12 (NDP Chapter 13): Generate an efficient, effective anddevelopmentorientedpublicserviceandanempowered,fairandinclusivecitizenship;Outcome5(NDPChapter9):Developaskilledandcapableworkforcetosupport an inclusive growth path.

Links to Provincial Priorities and PDP.

PDP Strategic Goal 5: Capable, conscientious and accountableinstitutions.P-MTSFPRIORITY7:GoodGovernanceStrengtheningtheDevelopmentalStateandGoodGovernance.PDPStrategicGoal2:Aneducated,empoweredandinnovativecitizenryPMTSFPRIORITY3:Education:PromotingQualityEducationandSkillsDevelopment.

In line with the NDPOutcome 12 and the PDP strategic goal of developing capable, conscientious andaccountablepublicserviceinstitutions,DRPWdecidedtofocus,duringthis5-yearstrategycycle,onbecomingmoreeffective,operationallyefficientandprudentincarryingoutitsmandatethroughbetteruseofitshuman,financialandtechnologicalresources.Successwouldbedemonstratedbyattainingahighestlevelscore,level4intheManagementPerformanceAssessmentTool(MPAT)whichisagovernment-widetoolusedtoassessefficiencyandeffectivenessofpublicservicesinlinewith,amongstothers,compliancetolegislationgoverningpublic service.

Inthetwoyearsofthecurrentstrategycycle,DRPWmadestridestocomeveryclosetoachievingthis2020goalbymaintainingalevel3averagescore.However,sincethetoplevelofassessmentislevel4,itmeansthere is still room for improvement towards best practice. The department prides itself on pockets of excellence in some of the standards assessed through this tool including functioning of the departmental Strategic Managementpractices,AuditCommittee,InternalAudit,RiskManagement,FraudPrevention,ManagementofEmployeeHealthandWellness,AcquisitionManagement,ManagementofCashFlowandexpenditurevs.budgetandPFMADelegations.

The department is taking governance and systems of accountability very seriously, both as a means ofstrengthening its internal control mechanisms and ensuring accountability to citizens and oversight bodies.EngagementandreportingtooversightbodiessuchastheAuditCommittee,RiskandEthicsManagementCommittee,ICTGovernanceCommittee,PortfolioCommitteeandSCOPAhasimprovedtremendously.Theimprovement in the management of the department is evidence of the scrutiny and support provided by these institutions.Adeliberateeffort tocontinuouslystrengthen thecontrolenvironmentespecially in theareaoffinancialmanagementhasstillbeenamainsourceoffocusduringtheyearunderreview.

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Anumberofgoodfinancialmanagementtoolslikepolicies,processes,procedures,circulars,templatesetc.were revised and communicated to all employees to ensure consistent implementation.

Another focusareafor thedepartmentduring thisreportingperiodwason improvingoperationalefficiencyin carrying out the mandate coupled with tackling the long vexing limitation in human resource capacity. To this end, theExecutiveAuthority of the department has, inDecember 2016, approved aServiceDeliveryModel (SDM) that serves as a blueprint on the finer interpretation ofRoads andPublicWork’s custodianof immovableassets, infrastructurenervecentreandsocio-economic transformationalmandateaswellashow the department envisages rendering its services. The new SDM also adopts a digital transformational approachofleveragingontechnologytoenableefficienciesindepartmentaloperations.

Togiveeffecttothisenvisageddigitaltransformation,thedepartmenthasalsoapproveda5yearICTStrategyduringthisreportingperiod.TheprimaryobjectiveofthestrategyistoalignICToperationsandinvestmentspending to strategic goals and direction of the department. These are all positive efforts towards attaining thestrategicpriorityarticulatedinthe5-yearstrategynamely,“Tostriveforoperationalexcellenceinordertoensureresponsiveness,efficiencyinexecutionofoperations,goodgovernanceandcleanadministration”.

In themanagementofhumanresources, thedepartmenthasaccomplishedsuccess inanumberofareasthat were previously challenging. It has attained a long-awaited approval for an organizational structure that encompasses both Roads and Public Works functions. It is currently implementing that structure, whilstconcurrently undertaking an organisational redesign exercise that will shift the department towards strategic andoperationalalignmentofhumanand technical resources, in line,notonlywithstrategiesarticulated intherecentlyapprovedSDM,butalsowithbestpracticeandwithgenericfunctionalconfigurationguidelinesprovidedbyDPSAandNationalTreasury.

Theoverallgoalistoprovideadequate,efficientandeffectiveorganisationalcapacitythatisfullyresponsivetothedepartment’smandateandstrategicprioritiesforthisstrategycycle.Acapacitythatwillprovidecompleteandefficientservicescoveringallaspectsofthedepartment’smandate.

Withthefollowingeffortsinplace,DRPWpridesitselfinpromotingqualityeducationandskillsdevelopmentand in its positive contribution to an educated, empowered and innovative citizenry as envisaged in theNDPandPDP.Ithasimplementedanumberofempowermentandemploymentinitiativeslikerecruiting210graduateinterns,appointing100TechnicalandVocationalEducationandTraining(TVET)learners,awarding50newbursariesandcontinuedtofinance the62previouslyawardedbursars,bringing it toa totalof112bursars.UnderacapableleadershipoftheOfficeoftheMEC,thedepartmentcontinuedtostrivetowardsadevelopmentorientedpublicserviceandanempowered,fair,inclusiveandactivecitizenrybyensuringthatthedepartmentaldecisionsareinformedbythewillofthepeopleespeciallyitsstakeholders.Initsquesttoensurethatthevoicesofstakeholders,likecontractorsandconsultantsareheardandtheirneedsimplementedbythedepartment,theofficeoftheMECsuccessfullyexecuteditsplannedtargetofstakeholderengagementsessions during the year under review.

On the overall, the department is on course towards the achievement of its five-year targets for thisprogramme.

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Strategic Outcome-oriented goal 2

Immovable assets management regime fully responsive to needs of provincial government and its socio-economic transformational agenda by 2020.


Outcome6NDPChapter4:Supportanefficient,competitiveandresponsiveeconomic infrastructure network.


PDPStrategicGoal1:Agrowing,inclusiveandequitableeconomyP-MTSFPRIORITY1:EconomyandJobs:Transformingtheeconomytocreatejobsandsustainablelivelihoods;PDP Strategic Goal 5: Capable, conscientious and accountableinstitutions;P-MTSFPRIORITY7:GoodGovernance:StrengtheningtheDevelopmentalStateandGoodGovernance;PDPStrategicGoal4:Vibrantequitablyenabledruralcommunities.

Encouraged by the fact that infrastructure delivery and property management is critical to sustaining economic developmentand tosupport theachievementofNDPandPDPgoalsoutlinedabove,DRPWcontinued toexecuteitsmandatetoactasanimplementingagentfortheclientdepartments(Health,Educationandotherdepartments)bybuildingnewclinics,schools,EarlyChildDevelopmentCentres(ECDCs),libraries,eradicatingmudsschoolsandprovidingofficeaccommodationintheprovince.

Thefollowingstrategicobjectivesprovideabreakdowntowardsattainmentoftheabove-mentionedstrategicgoal:

• Improveprojectmanagementcapacityinrelationtoinfrastructureco-ordination,planning,implementationandmaintenanceforDRPWandotherdepartmentsbycompleting100%ofprojects(new,rehabilitationandrefurbishment)withinagreedtimeperiodand90%ofprojectswithinapprovedbudgetby2019/2020.However,progressingtowardsthis5yeartargetthedepartmenthassetitselfatargetofcompleting70%ofprojectswithinagreedperiodandbudgetduringthe2016/17financialyear.Thefinancialcontrolsputbytheprogrammeprovedworthwhilebecause75%ofcapitalprojectswereachievedwithinbudget.Ontheotherhand,thedepartmentisstillstrugglingwiththeissueofpoorperformanceofemergingcontractorsdespite making concerted efforts to support and capacitate them. The non-achievement of the 2016/17 targetofdelivering70%ofprojectswithinagreedtimeisaproofofthischallenge.Duringtheyearunderreview, the achievement dropped even lower than the 2015/16 financial year to 55%. In the 2015/16financialyear,thetargetofdelivering60%withinagreedtimewassurpassedby7%.

• Includedamongsttheachievementsfortheyearunderreviewwere,amongstothers,thefollowingsocialinfrastructure improvements:

theupgradingofthreehealthfacilitiesnamely:CloeteJoubertHospitalBuilding,StPatrick’sHospitalandCalaCHCbuilding;

renovationsandmaintenanceofMosesMabidaandCathcartPublicLibrariesforDSRAC;erectionofsecurity fencingatBulelaniSSSintheChrisHaniDistrict,MfesaneSSS,AddoPrimary

School and David Livingston SSS at Sarah Baartman.

• Verifying10000(5-yeartarget)and3500assets(2016/17target)assetsintheassetregistertoensurethe complete, reliableandaccurate information in relation to theprovincial property portfolio by2020.The department continued to surpass its target again during the year under review by verifying 4 286 assets. This achievement implies considerable improvement in the overall management and recording of provincialassetsasrequiredintermsofthePublicFinanceManagementActandisfurtherpositioningthedepartment well in its role of being a reliable custodian of provincial assets.

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Thisispurportedbythevalue-addinginformationthatgotcapturedandverifiedintheImmovableAssetRegister(IAR),e.g.replacingallR1valuesintheIARwithmunicipalvaluation’saspertheCashModifiedGuide fromNationalTreasury thus assisting the government to disclose its assets at amore realisticvaluewhich,inturn,contributetopositivenationalcreditratings;theupdatingofthetenureandlanduseinformationobtainedthroughlandauditsandsiteinspections.AllofthisinformationtakestheIARalongway towards being a reliable platform for immovable asset planning in the province.

• Ensuringtheeffectiveandefficientuseof theprovincialpropertyportfolio to facilitate theattainmentofservicedeliveryandsocio-economicobjectivesbyidentifyingatleast20propertiesforrevenuegenerationpurposesby2020and10by2016/17.Thistargethasbeenexceededthroughidentificationoftwo(2)moreproperties.Thesearepropertieswithpotentialhigh-incomevalue,whichcangeneraterevenuefortheProvince.Thesepropertieswerefullyevaluatedandanexpressionofinterestwaspublishedforfive(5)ofthem. The department commenced with the release of assets under land restitution claims which include the Dwesa and Double Drift nature reserves.


Anefficientandintegratedroadnetworkthatservesasacatalystforsocial and economic development underpinned by improved rural access by 2020.


Outcome6NDPChapter4:Supportanefficient,competitiveandresponsiveeconomic infrastructure network;Outcome 8NDPChapter 8:Create sustainable human settlements andimprovedqualityofhouseholdlife.


PDPStrategicGoal1:Agrowing,inclusiveandequitableeconomyP-MTSFPRIORITY1:ECONOMYANDJOBS:Transformingtheeconomytocreatejobsandsustainablelivelihoods;PDPStrategicGoal4:Vibrantequitablyenabledruralcommunities;P-MTSFPRIORITY6:SOCIALCOHESION:Integratedhumansettlementand building cohesive communities.

TheDRPWisresponsibleforthemaintenanceoftheprovincialroadnetworkproclaimedundertheformerCapeProvincialAdministration,togetherwithanumberofroadsfromtheformerTranskeiandCiskeiGovernments.The current provincial road network which amounts to 41 316 km comprises of approximately 4 223 km of provincialsurfacedroadsand37092kmofgravelprovincialroads,stormwaterstructuresandbridges;allroad furniturewithin theroadreserve(fencing,signage,kmmarkers,etc.) Inaddition to theroadnetwork,thereareahost of quarries / borrowpits, campsanddepots andauxiliary structures,manyofwhicharelocatedoutsideoftheroadreserve,butwhichalsoformpartoftheprovincialroadassetsthatarewithinthedepartment’scustodianship.

Themajoraimoftheprogrammeistoensurethattheprovincehasanefficientandintegratedroadnetworkthat serves as a catalyst for social and economic development underpinned by improved rural access. This functionisco-sourcedandisperformedinconjunctionandcollaborationwithnationalroadsagencies,districtand localmunicipalities.Both theNDPand thePDPconsiders infrastructureas the cornerstoneof socio-economicdevelopment,moreso in theEasternCapeProvince,which is70%rural,withdefining featuresmarkedbyinfrastructureunderdevelopment,highlevelsofpovertyandunemployment.

Withintheconstraintsoftheresourcesallocatedtotheprogramme,itmanagedtoachieve64%ofitstargetsintermsofnetworkplanning,constructionandmaintenanceofprovinciallyproclaimedroadsutilising99%ofits budget.

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In relation to network planning the department planned to visually assess the entire 4 223 km of its surfaced road network. However, it managed to assess 3 781.29 km because 436.98 km of paved road networkwastransferredtoSANRALinJune2016.Thisassessmentprovidesvaluableinformationinrelationtotherequirementsforthemaintenanceoftheprovincialroadnetwork.Todatetheprogrammehasachieved43%ofits 5 year target of upgrading 97.5 km of gravel roads to surface roads.

Thisworkreflectasignificantcontributiontothenationalandprovincialaspirationsofprovidingequalaccessfor rural communities in that, the 10km construction fromCentane toQholorha afforded easy access toa totalnumberof54villages,5clinics,schoolsandanumberofothersocialamenities.Furthermore, thisconstruction,togetherwiththe12.4kmsconstructedintheTsolwanaMunicipalareaopenedupopportunitiesforprovincialeconomicdevelopment,astheseareasarerenownedashubsfortourism.Eventhoughthisisacommendableachievement,thepercentageofprovincialsurfacedroadnetworkremainsfarbehindthatofthe entire country.

Inthefirsttwoyearsofthe5yearstrategycyclethedepartmenthasmaintained281278.61m2 of provincial roads. This number included 217 261 m2 maintained in 2015/16 and 64 017.61 m2 achieved during the year under review.Eventhoughtheperformanceofthisreportingperiodfellshortofwhatwasdesired,thedepartmentismakingsignificantprogresstowardstheattainmentofits5-yearstrategicgoaltarget.Ofsignificantimportanceis that thesemaintenanceprojectsutilised labour intensivemethodsbyemploying localcommunities, thusalleviatingpovertyandensuringimprovedqualityofhouseholdlifeamongstruralcommunities.Thisisalsoapositivesteptowardsgrowinginclusiveandequitableopportunities,especiallyforthepreviouslydisadvantagedrural areas.

Initsdrivetoreducethescourgesofunemploymentandpoverty,theDepartmentiscontinuouslyaligningitselftotheNationalandProvincialprioritiesandtheProvince’sjobcreationstrategyandendeavoursasfollows:


Sustainable livelihoods through empowered communities and emancipated emerging construction contractors underpinned by sustainable job opportunities and economic growth by 2020.


Outcome4NDPChapter3:Decentemploymentthroughinclusiveeconomicgrowth;Outcome5NDPChapter9:Developaskilledandcapableworkforce tosupport an inclusive growth path.


PDPStrategicGoal1:Agrowing,inclusiveandequitableeconomyP-MTSFPRIORITY1:ECONOMYANDJOBS:Transformingtheeconomytocreatejobsandsustainablelivelihoods;PDPStrategicGoal2:AnEducatedempoweredandinnovativecitizenry;P-MTSF PRIORITY 1: EDUCATION: Promoting Quality Education andSkills Development.

Asaresultofthis,thedepartmentisforgingaheadwithitscreationofjobopportunitiesthroughtheExpandedPublicWorksProgramme(EPWP)particularlythemassiveemploymentofhouseholdcontractors,upgradingofcontractorsaspertheConstructionIndustryDevelopmentProgramme(CIDB)andconstantlyemployinglabour-intensivemethodsintheprovisionofjobstotheprovinciallabourforce.

AspertheQuarterlyLabourForceSurvey,Quarter3,2016issuedbyStatisticsSouthAfrica,theprovince’sunemploymentratehasdeclinedby1.6percentagepointyearonyearfrom27.1%inJuly-September2015to25.5%inJuly-September2016.

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AmongsttheMetrosthatrecordedthelargestdecreasesinunemploymentrateswastheBuffaloCityMetro,which showed the largest decline of 1.8 percentage points. It is our belief that the growth in the number of jobopportunitiescreatedbytheDepartmentyearonyear,supportedbyother jobcreationinitiativesoftheprovince,hasgonealongwayindecreasingtheunemploymentrateintheprovince.

Toachievethisstrategicgoal,theprogrammehasbrokenitdowntothefollowingobjectives:

• To bring about the development and empowerment of impoverished community through the creation of 48 300 work opportunities by 2020. The programme has already surpassed this years 5 year target in two yearsbycreating54479workopportunitiesinthe2016/17financialyear,ofwhich21692areFullTimeEquivalents(FTE’s).Thisoverachievementwasduetomoreworkopportunitiescreatedbythedepartmentthrough labour-intensive Infrastructure projects and replacement of household contractors that haveresigned or deceased.

• To develop 300 contractors and provide skills through 25 empowerment intervention by 2019/20. To date, thedepartment hasdeveloped222 contractors through its IntegratedConstructionDevelopmentProgramme.Furthermore,thedepartmentplannedtoprovideskillsto6500beneficiariesthroughfour(4)beneficiaryempowerment interventions.Whileall four (4)beneficiaryempowerment interventionswereexecuted,only1923beneficiariesweretrainedduetofinancialpressuresexperiencedbytheprogrammeduringthe2016/17financialyear.

• Promoting the implementationof10 labour intensive initiativesby2020witha targetof four (4) in the2016/17financialyear.Thedepartmentsurpassedthistargetbyidentifyingone(1)morelabourintensiveinitiative during the year under review.

• Lastly, the department fully achieved its strategic objective of promoting, integrating, coordinating andmonitoringtheimplementationofEPWPphase3throughimplementationofallseven(7)interventionstosupport public bodies and by ensuring that all 56 public bodies are reporting on the EPWP reporting system. However,duetotheamalgamationofmunicipalitiesfollowingthelocalgovernmentelections,publicbodiesreportingonEPWPwerereducedfrom56to50.Despitethattechnicality,all50publicbodiescontinuedtoreport on EPWP. The local government elections also disrupted the convening of roads forums because changes in the political leadership at local government level negatively affected the sitting of roads forum meetings.

Inas farasprovincial contribution towardsnational performance targets, theEasternCape is the leadingprovince with regards to creation of work opportunities created during the 2016/17 financial year. Workopportunities created by the province including the contributions from national departments with a presence in theprovinceare143198againstthetargetof99417(whichtranslatesto144%performanceagainstthesettarget).

The table below depicts the number of work opportunities created per sphere of government per sector. Provincialdepartmentscontributed thehighestnumberofworkopportunities, followedby thenationalandthen by local municipalities.

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Sector performance per sphere of government

Sector Municipal Provincial National Total

Infrastructure 14 552 51 303 655 66 510

Social 1 801 12 394 1 166 15 361

Environment 7 706 3 666 21 039 32 411

Non-State - - 28 916 28 916

Totals 24 059 67 363 51 776 143 198

Inrespectofdemographiccategories,EPWPintheprovincehassurpassedthetargetforwomenparticipatingin job creation initiatives. However, the challenge remains that of attracting the youth and people withdisabilities.

Demographic category Target % Work opportunities reported

% achieved

Youth 55% 53 803 38%

Women 55% 92 217 65%

People with Disabilities 2% 2 515 1.8%

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2.5 PERFORMANCE INFORMATION BY PROGRAMME

2.5.1. Programme 1: Administration

A. Purpose

Toprovideleadership,administrative,strategic,financialandcorporatesupportservicestothecoreprogrammesofthedepartment inordertoensurethat itdeliversonitsmandateinanintegrated,efficient,effectiveandsustainable manner.

B. Sub-Programmes of Programme 1

• OfficeoftheMEC

• Management of the department

• CorporateSupport

C. Strategic Objectives for 2016/17

1.1. To maintain an effective and efficient administrative system that supports political leadership andoversightbyobtainingLevel4scoreonMPATby2019/20.

1.2. To ensure effective and sustainable management of departmental resources to attain clean administration of the department by 2019/20.

D. Strategic objectives, performance indicators, planned targets and actual achievements

Strategic Objectives for Programme 1: Administration


Strategic Objective Actual 2015/16

Planned Target 2016/17

Actual 2016/17

Deviation Comments on deviations

1.1. To maintain an effectiveandefficientadministrative system that supports political leadership and oversight by obtaining Level 4 scoreonMPATby2019/20.

17 16 outreach programmes undertaken.

16 N/A N/A

3 MPATscoreof 3.

3 N/A N/A

1.2. To ensure effective and sustainable management of departmental resources to attain clean administration of the department by 2019/20.

UnqualifiedAuditOpinion.

1 (UnqualifiedAuditOpinion).

UnqualifiedAuditOpinion.

N/A N/A

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Performance Indicators for Programme 1: Administration

Performance Indicator Actual 2015/16


Actual 2016/17

Deviation Comment on deviations

StrategicObjective:1.1Tomaintainaneffectiveandefficientadministrativesystemthatsupportspolitical leadership and oversight by obtaining Level 4 score on MPAT by 2019/20.

Numberofoutreachprogrammes undertaken byMEC.

17 16 16 N/A N/A

AnimprovedMPATmoderated average score onGovernanceandAccountabilityKPAforthepreviousfinancialyear.

3 4 3 -1 The under-achievement was due to the low scores attained in the implementation ofPAJAandPAIAaswell as the Service delivery Improvement Mechanisms standards.

AnimprovedMPATmoderated average score on Strategic Management KPAforthepreviousfinancial.

4 4 3.5 -0.5 The under-achievement was due to the low scores attained in the Integration of monitoring and strategic management and integration of evaluation and strategic management standards.

AnimprovedMPATmoderated average score on Human Resource ManagementKPAforthepreviousfinancial.

2 3 2.5 -0.5 The under-achievement was due to the low scores attainedinnine(9)outof eleven standards. These include standards relating to management ofperformance,Organisational Design andPlanning,HumanResource Practices andAdministrationand management of disciplinary cases.

AnimprovedMPATmoderated average score on Financial Management KPAforthepreviousfinancial.

3 3 3 N/A N/A

Strategic Objective: 1.2 To ensure effective and sustainable management of departmental resources to attain clean administration by 2019/20.

Anunqualifiedauditoutcome.

Unquali-fiedAuditOpinion.

1(Un-qualifiedAuditOpinion).

Unquali-fiedAuditOpinion.

N/A N/A

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Performance Indicator Actual 2015/16


Actual 2016/17


Improved maturity level score of Departmental ICTgovernancebasedonCOBIT5priorityareasstatedtheCorporateGovernanceofITFramework.

1 1 1 N/A N/A

E. Summary of Programme Performance

Thedepartmentachieved92%ofitsplannedtargetsinthisprogramme.Althoughthedepartmentfellshortofattainingitsannualtargetofanaverageof3.5,maintaininganaveragescoreofthree(3)inthemoderatedresultsofManagementPerformanceAssessmentTool(MPAT)version1.6conductedbytheDepartmentofPlanning,MonitoringandEvaluation(DPME)isstillanindicationthatthemanagementpracticesandcontrolsof the department are maturing. This level 3 score in the second year of a 5-year strategy cycle that has a target of an average score of level 4 also implies that the department is progressing comfortably towards a stateofefficiencyandachievingitsfifthyeartarget.

The department continues to show commitment towards being a development-oriented public service that affordsitsstakeholdersopportunitiestobeactive,heardandempowered.TheMEC’sofficehasundertakenoutreach programmes to communicate government programmes to the public and strengthen relations with stakeholders.Theachievementsreflectsuccessinattainingtheplannedtargetsinthe1ststrategicobjectivenamely “Tomaintain aneffectiveandefficient administrative system that supports political leadership andoversight”.

Inrelationtothesecondstrategicobjectivethedepartmentprovedtobeoncoursetowardscleanadministrationwhen it attained an unqualified audit opinion in the previous financial year.Major challenges in this areaemanatedfromdeficienciesinthecontrolenvironmentespeciallyinthesupplychainpracticesofthedepartmentas well as reliability and completeness of records to substantiate departmental transactions.

F. Strategy to overcome areas of under-performance

Tocontinuouslyimprovetowardsthedesiredstateofbeingacapablesupporterandenabler,theprogrammeispullingall stops tostrengthen its controlenvironment.Policies,businessprocesses, standardoperatingproceduresandothermechanisms toclose thegaps identified in theassessmentsconductedbyboth theAuditor-GeneralofSouthAfrica(AGSA)andDepartmentofPlanningMonitoringandEvaluationhavebeenapproved and implemented. The department still needs to strengthen implementation of strict monitoring adherencetothesemechanismsandimplementationofconsequencesincasesofnon-compliance.Ofcourse,theseeffortsarereceivingtheunwaveringsupportofgovernancestructuressuchastheAudit,RiskandEthicsaswellasPortfolioCommittees.

Thedepartmentwillalsofocusonsupportingspecialprojectsprioritisedtoturnarounditsefficiency,effectivenessandperformancewhilstatthesametimemanagingriskareas.Suchspecialprojectsinclude,amongstothersautomationofbusinessprocessesinareasofprocurement,reporting,managementofprojectsandrecords.

The department is also in a process of building its capacity to support delivery of the mandate both in terms of

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anumberofwarmbodiesanddevelopmentofskillsincriticalareas.AstructurethatwillcloselyenableDRPWtofullyimplementitsmandatehasbeenapprovedbyDPSA.

Focus of the corporate support function will be implementation of the structure to ensure that the department hasaneffectiveandefficientadministrativecapacitythatisfullyresponsivetothedepartment’smandate.

G. Changes to planned targets

There were no changes to the planned targets during the reporting period

H. Linking Budget with Performance

Sub-Programme Name

2016/17 2015/16

Final Appro-priation

Actual Expenditure

(Over)/Under

Expenditure


Actual Expenditure

(Over)/Under


1.1 OfficeoftheMEC 9 047 9 047 - 9 181 9 181 - 1.2 Management 29 016 29 016 - 16 148 16 148 - 1.3 CorporateSupport 532 049 523 667 8 382 496 551 486 962 9 589 Total 570 112 561 730 8 382 521 880 512 291 9 589

Theprogrammehasrecordedatotalexpenditureof98%ofitsallocatedbudget.Therecordedunderexpenditurewasduetothedeliveryofincorrectlaptopsthatwerenotasperthespecificationissued,resultinginthereturnof those laptops to the service provider as the department could not process the invoice for payment of incorrect items delivered.

The department also procured services for the enhancement of the PROMIS system which is the integrated projectmanagementsystem.Anincorrectinvoicefortheservicesrenderedwasreceivedbythedepartment.The department could not process the incorrect invoice and it had to be returned to the service provider for correction.

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2.5.2 Programme 2: Public Works Infrastructure

A. Purpose

Toprovidespecialistservicestoclientdepartmentsintermsofbuildingandinfrastructureplanning,design,construction,managementandmaintenanceandtoplayan“implementingagent”roleforclientdepartmentsin relation to their individual building and infrastructure needs.

B. Sub-Programmes

• Programme Support• Design• Construction• Maintenance • ImmovableAssetManagement• Facility Operations


Overall Programme Objectives

2.1. Toimproveprojectmanagementcapacityinrelationtoinfrastructureco-ordination,planning,implementationandmaintenanceforDRPWandotherdepartmentsbycompleting100%ofprojects(new,rehabilitationandrefurbishment)withinagreedtimeperiodand90%ofprojectswithinapproved budget by 2019/2020.

2.2. Verify10000(5-yeartarget)assetsintheassetregistertoensurethecomplete,reliableandaccurate information in relation to the provincial property portfolio by 2020.

2.3. Aneffectiveandefficientuseoftheprovincialpropertyportfoliotofacilitatetheattainmentofservicedeliveryandsocio-economicobjectivesbyidentifyingatleast20propertiesforrevenuegenerationpurposes by 2020.


Strategic Objectives for Programme 2: Public Works Infrastructure




Actual 2016/17

Deviations Comment on deviations

2.1. To improve projectmanagementcapacity in relation to infrastructure co-ordination,planning,implementation and maintenance for DRPW and other departments bycompleting100%ofprojects(new,rehabilitation and refurbishment)withinagreed time period and 90%ofprojectswithinapproved budget by 2019/2020.

67% 70%withinagreed period.

55% -15% Mostprojectwerenot completed on time due to poor performance of contractors.

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Actual 2016/17


The non-achievement of some targets did nothavefinancialimplications to the department as these contractors were put on penalties to transfer the risk of apotentialfinancialloss that could be incurred as a result of time lost from the department to the contractor.

87% 70%withinagreed budget.

75% +5% The controls put by the department in the management of projectsespeciallythe penalties imposed on poorly performing contractors resulted in improvement infinancialmanagement of mostprojects.The termination of contractors due to poor performance still remain a challenge.

2.2 Verify 10 000 (5-yeartarget)assetsin the asset register to ensurethecomplete,reliable and accurate information in relation to the provincial property portfolio by 2020.

3 622 3 500 assets verifiedinthe asset register.(**note)

4 286 +786 The over-achievement was based on the new vesting received from the Department of Rural Development and Land Reform (RDLR),newacquisitionsthrough Section 42 ofPFMAanddeedstransfer which were validated through the deeds download in May 2017.

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Actual 2016/17


2.3Aneffectiveandefficientuseoftheprovincial property portfolio to facilitate the attainment of service delivery and socio-economicobjectivesbyidentifying at least 20 properties for revenue generation purposes by 2020.

10 5 12 +7 • Five(5)properties were identifiedinthe previous financialyear.

• The over achievement of two properties is a result of vacant land in Sunningdale East London identifiedfor housing development which constituted land parcels or erven and therefore counted as 3 properties for revenue generation.

Performance Indicators for Programme 2: Public Works Infrastructure

Performance Indicator

Actual 2015/16

Annual Target 2016/17

Actual 2016/17


CUSTOMISED PERFORMANCE INDICATORS

PLANNING

Strategic Objective: 2.1 To improve project management capacity in relation to infrastructure co-ordination, planning, implementation and maintenance for DRPW and other departments by completing100%ofprojects(new,rehabilitationandrefurbishment)withinagreedtimeperiodand90%(*Note)ofprojectswithinapprovedbudgetby2019/2020.

45



Actual 2015/16


Actual 2016/17


CAMPsubmittedtothe relevant treasury in accordance with GIAMA.

1 1 1 0 N/A

DESIGN

Numberofinfrastructure designs ready for tender.

63 43 43 0 N/A

CONSTRUCTION

Numberofcapitalinfrastructureprojectscompleted within the agreed time period.

15 15 10 -5 The underachievement was due to the poor performance ofcontractors,whoweresubsequentlyput on penalties as a control measure to transfer the risk to contractors by deducting a certain amount from their invoices.

Numberofcapitalinfrastructureprojectscompleted within agreed budget.

23 15 15 0 N/A

MAINTENANCE CUSTOMISED INDICATORS

Numberofplannedmaintenanceprojectsawarded.

48 15 8 -7 The underachievement was due to budget cut that has been implemented in thefinancialyearwhen the targets were already committed.

46



Actual 2015/16


Actual 2016/17


Numberofplannedmaintenanceprojectscompleted within the agreed contract period.

39 14 6 -8 The underachievement was due to the following two reasons:

Seven(7)•projectsthatwere not completed on time due to poor performance of contractors. Five(5)contractors were subsequentlyput on penalties and two(2)wereterminated.

One(1)project•has been granted an extension of time.

Numberofplannedmaintenanceprojectscompleted within agreed budget.

44 14 7 -7 The underachievement was due to the following two reasons:

Six(6)projects•that were not completed on time due to poor performance of contractors. Three(3)contractors were subsequentlyput on penalties andthree(3)contracts were terminated.One(1)project•has been granted an extension of time.

47



Actual 2015/16


Actual 2016/17


IMMOVABLE ASSET MANAGEMENT

Strategic Objective 2.2.: Verify 10 000 (5-year target) assets in the asset register to ensure thecomplete, reliable and accurate information in relation to the provincial property portfolio by 2020.

NumberofimmovableassetsverifiedintheImmovableAssetRegister(IAR)inaccordance with the mandatory requirementsofNationalTreasury.

3 622 3 607 (**note)

4 286 +679 The over-achievement was based on the new vesting received from Department of Rural Development and Land Reform (RDLR),newacquisitionsthrough Section 42ofPFMAand deeds transfer which were validated through the deeds download in May 2017.

FACILITY OPERATIONS

Numberofconditionassessments conducted on state-owned buildings.

100 110 90 -20 The unit completed 110 technical condition assessments,however,assessments of 20 buildings did not match the criteria state-owned buildings and therefore could not be recognised as achievements.

PROVINCE SPECIFIC PERFORMANCE INDICATORS

Compiledandsubmitted compliant U-AMPasperrequirementsofProvincial Treasury.

1 1 1 0 N/A

UserAssetManagement Plans for other departments reviewed.

13 13 13 0 N/A

48



Actual 2015/16


Actual 2016/17


StrategicObjective2.3.:Aneffectiveandefficientuseoftheprovincialpropertyportfoliotofacilitate the attainment of service delivery and socio-economic objectives by providing at least 20 leased accommodations within agreed time by 2020.

Numberofidentifiedstrategic properties approved by the AccountingOfficerforrevenue generation purposes.

10 10 12 +2 The over achievement of two properties is a result of vacant land in Sunningdale East Londonidentifiedfor housing development which constituted land parcels or erven and therefore counted as 3 properties for revenue generation.

Numberofprovincial properties recommended for confirmationofvestingthrough the Provincial State Land Disposal Committee(PSLDC).

133 150 167 +17 The over-achievement of 17 vesting applications has been recorded due to the new Surveyor-Generaldiagrams obtained for properties in theO.RTambo,Amatole&SarahBaartman regions. Theconfirmationof ownership (vesting)mustbeimplemented as soon as diagrams are available or previous certificatesare rescinded or properties identifiedforvesting through research(e.g.ImmovableAssetRegisteranalysis,landaudits,etc.).

*Note: A typo in the APP reflecting a target of completing 980% of projects within approved budget has been correctly adjusted to 90% in the APR.

**Note:The target reflected as 3 500 against the strategic objective 2.2 is correct as it was set at the begining of a 5 year planning cycle. The seeming misalignment between the figure reflected in page 43 and the one on page 47 is due to the change in the environment which necessitated the revision of the target in 2016/17

49


E. Summary of Program Performance

Thedepartmenthasachieved76.9%ofitstargetsontwostrategicobjectivesthatrelatetoitscustodianshiprolesof immovableassetplanningandmanagement. In relation to its roleasan implementingagent, thedepartmentachieved69%ofitstargetsinrelationtodesigns,procurement,constructionandmaintenanceofthebuildinginfrastructure.Inundertakingitsprojects,DRPWmakeseveryefforttoensurethatnationalandprovincialaspirationsarereflectedandadvanced.

Forexample, amongst thedesignsdeveloped, someare in linewith theprioritiesof government suchascatering forgreenbuildingrequirementsandaccess to thephysicallychallenged; lifts thatareconstructedhavefeaturesthatassisttheblindforthepurposesofequityandaccessbyall.

The erection of new fencing to schools is for the purpose of providing security to the learners and safekeeping of the buildings.The newOutPatientsDepartment (OPD) atCloete Joubert hasmade it easy to accesshealth care services. The department installed a new elevated water tank at Lingcon Primary School as an interventionforwatersecuritymanagement.Theprojectsthatwerenotachievedareduetoacombinationof challenges like contractor performance on site, in certain instances penaltieswere imposedwhere thecontractors were at fault.

TheCustodianAssetManagementPlan(C-AMP)whichisderivedfromtheUserAssetManagementPlans(U-AMPs) of 13 user departments was submitted to Provincial Treasury in accordancewithGIAMA. Thedepartmentconducted90conditionalassessments that informed theC-AMPwhich in turn form thebasisfor the accommodation,maintenance and capital needs of the province. The overall achievement in thisprogrammereflectsadepartmentthatisoncoursetowardstheattainmentofitsgoalofhavinganefficientimmovable assets management regime that is fully responsive to needs of provincial government and its socio-economic transformational agenda.

Thechallengesthatresultedinthenon-achievementofprojectsweredueto,amongstothers:

• Budgetarycutsasaresultoftheshrinkingfiscus;

• Poor performance of contractors


• ThedepartmentwillcontinuetostrengthenitsprocessesofmonitoringprojectsbyimprovingattendancetoprovincialinfrastructureforummeetingswheretheDepartmentofRoadsandPublicWorks,ProvincialTreasury and Sector Departments meet to resolve infrastructure related challenges.

• The establishment of the infrastructure procurement unit has notably improved the level / degree of infrastructureprojectsprocurementandhasbroughtaboutstrictadherencetodepartmentalprocurementprocesses and plans.


• There were no changes to planned targets during the reporting period.

50



Sub-Programme Name

2016/17 2015/16


Actual Expenditure

(Over)/Under

Expenditure Final Appro-

priation Actual

Expenditure (Over)/Under


2.1 Programme Support 130 966 130 966 - 124 717 123 268 1 449 2.2 Planning 3 030 3 030 - 4 471 4 438 33 2.3 Design - - - 63 117 63 117 - 2.4 Construction 251 933 251 933 - 202 107 202 104 3 2.5 Maintenance 174 575 174 575 - 163 932 163 932 -

2.6 ImmovableAssetManagement 670 224 670 224 - 607 572 586 919 20 653

2.7 Facility Operation 128 194 128 194 - 110 905 110 905 -

Total 1 358 922 1 358 922 - 1 276 821 1 254 683 22 138

The programme has recorded an expenditure of 100%, contributing towards the 84% achievement of itsplanned targets.

2.5.3 Programme 3: Transport Infrastructure

A. Purpose

Toprovidespecialistservicesandinternalconstructioncapacityintermsofroadinfrastructureplanning,design,construction,managementandmaintenance.Theprogrammedoesthisinconjunctionandcollaborationwithnationalroadsagencies,districtandlocalmunicipalities.

B. Sub-Programmes

• Programme Support

• Planning

• Design

• Construction

• Maintenance


Overall Programme Objective

3.1. Toprovidenetworkplanningfor(4223km)surfacedand(37091,95km)gravelproclaimedprovincialroads by 2019/20.

3.2. Toconstruct97,5kmprovincialproclaimedroadsby2019/20.

3.3. To maintain 185 739 m2 per annum provincial proclaimed roads by 2019/20.

51



Strategic Objectives for Programme 3: Roads Infrastructure

Programme 3: Roads Infrastructure

Strategic Objective

Actual 2015/16


Actual 2016/17


3.1 To provide network planning for(4223km)surfaced and(37091,95km)gravel pro-claimed provincial roads by 2019/20.

4176 km 4 223 km surfaced roads visually assessed.

3781.29km -441.71km The under-performance is attributable to the 436.98km of paved road network that was transferred to SANRAL withtheir budget in June 2016 due to amendment in the gazette. The transfer meant that the remaining figure for provincial proclaimedroads became 3 786.02 km. Against this latter figure, theprogramme under achieved by 4.73km.

29 180km 0 0 0 N/A

3.2 To con-struct 97,5kmprovin-cial pro-claimed roads by 2019/20.

11.948 km 47 km 30.4km -16.6km The Sabalele Project whichcontributed 17km to the overall annual target has been delayed in implementation due to increasedquantities in thehardmaterial excavations for road construction and stormwater installations during the course of theproject.Itisimportanttonotethat SLATsolwana – upgradingof DR10732 phase was rounded by 0.4 km to make 17 km

3.3 To main-tain 185 739 m2 p.a. pro-vincial pro-claimed roads by 2019/20.

217 261 m2 250 000m2 64 017.61 m2

-185 982. 39m2

The underachievement was due to :

Under-planning of 153 400m• 2 was caused by the budget constraints. The budget allocated to the programme for maintenance only allowed for committing to maintain 96 600m2 instead of the 250 000m2 that was initially committed in the 2015/16 -2019/20 Strategic Plan. An achievement of•19 217.61m2 more than the blacktop patching target of 44 800 m2. Funds were shifted from the deferred reseal and rehabilitation programmes to blacktop patching due to delays in the Bisho Revitalization project, and the impact ofdelays in procurement for the reseals programme.

52


Performance Indicators for Programme 3: Transport Infrastructure


Actual 2015/16


Actual 2016/17



INFRASTRUCTURE PLANNING

StrategicObjective3.1:Toprovidenetworkplanningfor(4223km)surfacedand(37091,95km)gravel proclaimed provincial roads by 2019/20.

Numberofkilometres of surfaced roads visually assessed as per the applicable TMH manual.

4 176km 4 223km 3781.29km -441.71km The under-performance is attributable to the 436.98km of paved road network that was transferred to SANRAL withtheir budget in June 2016 due to amendment in the gazette. The transfer meant that the remainingfigureforprovincialproclaimed roads became 3 786.02 km. Against thislatter figure, the programmeunder achieved by 4.73km.

Numberofkilometres of gravel roads visually assessed as per the applicable TMH manual.

29 180km 0 0 0 N/A

CONSTRUCTION

Strategic Objective 3.2: To construct 97,5km provincial proclaimed roads by 2019/20.

Numberofkilometres of gravel roads upgraded to surfaced roads.

11.948 km 47 km 30.4km -16.6km The Sabalele Project whichcontributes 17km to the overall annual target has been delayed in implementation duetoincreasedquantitiesinthe hard material excavations for road construction and stormwater installations during the course of the project. It is important tonote that SLA Tsolwana –upgrading of DR10732 phase was rounded by 0.4km.

53



Actual 2015/16


Actual 2016/17


MAINTENANCE

Strategic Objective 3.3: To maintain 185 739 m2 p.a. provincial proclaimed roads 2019/201.

Numberofsquaremetresof surfaced roads rehabilitated.

21 850 m2 1800m2 0 -1800 m2 The Bhisho Revitalisation project which comprised theoverall annual target has been delayed in implementation due to inclement weather and slow progress from the contractor. Penalties have been applied to the contract and the completion of the project is expected in May2017.

Numberofsquaremetresof surfaced roads resealed.

66 638.89 m2

50 000m2 0 -50 000 m2 The procurement for reseal projectswasimpactedbythecontrol measures that were put in place to curb possible unauthorised expenditure. The funds intended for this programme were reprioritized to existing commitments in the regravelling and blacktop patching indicators resulting in over achievement in those areas.

Numberofkilometres of gravel roads re-gravelled.

968.42130 km

686 km 799.94km +113.94km The over performance in the indicator is attributable to the additional money that was channelled from the deferred reseal and rehabilitation programmes to regravelling.

Numberofsquaremetresof blacktop patching.

128 772.679 m2

44 800m2 64 017.61 m2

+19 217.61 m2

The over performance in the indicator is attributable to the additional money that was channeled from the deferred reseal and rehabilitation programmes to blacktop patching.

54



Actual 2015/16


Actual 2016/17


Numberofkilometres of gravel roads bladed.

26 832.540 km

30 100km 28019.05km -2 080.95km The procurement for Routine Maintenance Contracts inthe maintenance of gravel roads per Local Municipal Area was impacted by thecontrol measures that were put in place to curb possible unauthorised expenditure in the programme. The funds intended for this programme were reprioritised to existing commitments in the regravelling and blacktop patching indicators.


Thedepartmentachieved64%ofitsplannedtargetsinthisprogramme.Onsurfacedroadsrehabilitated the BishoRevitalizationprojectwhichcomprisedtotheoverallannualtargethasbeendelayedinimplementationdue to inclement weather and slow progress from the contractor.

Theupgradingof10kmfromCentanetoQholorhahasprovidedaccesstoatotalnumberof54villages,5clinics,34schoolsand toanumberofothersocialamenities.Thisarea is renownedasahub for tourismopportunities in the province. Furthermore, 12.4 km from theService LevelAgreementwith theTsolwanaMunicipalitydirectlybenefittedthecommunitiesofZolaTownship,Hofmeyer,LuxolweniTownshipaswellasTarkastad.TheroadalsogaveeaseofaccesstotheTsolwanaNatureReserve.Withrespecttomaintenance,the programme over performed in re-gravelling and underperformed in blading due to a conscious decision that was taken to do more re-gravelling than blading as a form of sustainable service on provincial gravel roads.

The re-gravelling of roads made it easy to access government services in rural areas of the province. The procurementforresealprojectswasimpactedbythecontrolmeasuresthatwereputinplacetocurbpossibleunauthorised expenditure. The funds intended for this programme were reprioritised to existing commitments in the regravelling and blacktop patching indicators resulting in over achievement in those areas.

Challenges

• Technical capacity remained a challenge and the recruitment process in an endeavour to capacitate the programme particularly its management structures has not yielded the desired results.

• Reduction in budget allocations for theprogrammedidnot allow for anynewsurfacingprojects tobeimplemented beyond the current portfolio of the programme.

• Budget constraints for plant recapitalisation remained a challenge and the funding model for Roads did not allow room to procure plant. This is crippling any future endeavours to capacitate In-House teams.

55



• The programme has put in place, through Supply Chain Management Unit, additional procurementCommittees in order to accelerate procurement processes for infrastructure procurement and avoidinstances of delays like the ones that affected the reseal programme. This will address the bottlenecks that oftenleadtodelaysintheawardingofcontracts.Therearenowthree(3)BidEvaluationCommitteesforinfrastructure in the department.


There were no changes to planned targets during the reporting period.


Sub-Programme Name

2016/17 2015/16


Actual Expenditure

(Over)/Under

Expenditure


Actual Expenditure

(Over)/Under


3.1 Programme Support 16 587 16 587 - 19 070 18 800 270 3.2 Planning 16 076 16 076 - 16 898 16 898 - 3.3 Design 8 586 8 586 - 13 601 13 593 8 3.4 Construction 1 141 637 1 141 637 - 918 064 917 515 549 3.5 Maintenance 801 642 786 894 14 748 918 022 918 022 - 3.6 Mechanical 93 350 93 350 - 117 129 117 125 4

Total 2 077 878 2 063 130 14 748 2 002 784 2 001 953 831

TheprogrammeutilisedanamountofR2,1billionor99.3%ofitsallocatedbudget.The0.7%underexpenditureemanatedfromthelateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhat resulted in stoppage of work.

56


2.5.4. Programme 4: Expanded Public Works Programme

A. Purpose

To align departmental socio-economic initiatives to national and provincial government priorities in terms of jobcreationandpovertyreductionandtoimplementtheseprogrammesinconjunctionwithotherprovincialgovernmentdepartments,districtandlocalmunicipalitiestoensureviableandsustainablelong-termenterpriseand economic development.

B. Sub-Programmes

• Programme Support

• CommunityDevelopment

• Innovation and Empowerment

• Co-ordination&ComplianceMonitoring


Overall Programme Objectives

4.1. To bring about the development and empowerment of impoverished communities through the creation of 48 300 work opportunities by 2020.

4.2. To develop 300 contractors by 2019/20.

4.3. To provide skills through 25 empowerment interventions by 2019/20.

4.4. To promote the implementation of 10 labour-intensive initiatives by 2019/20.

4.5.Topromote,integrate,coordinateandmonitorimplementationofEPWPPhase3by56publicbodiesby 2019/20.


Strategic Objectives for Programme 4: Expanded Public Works Programme


Strategic Objective

Actual 2015/16


Actual 2016/17


4.1 To bring about the development and empowerment of impoverished communities through the creation of 48 300 work opportunities by 2020.

50 471 50 000(51000-*notebelow)

54 479 +3 479 The over- achievement was due to more work opportunities created by CommunityDevelopment through replacement of Household Contractorsthatare deceased and / or resigned.

57



Strategic Objective

Actual 2015/16


Actual 2016/17


4.2 To develop 300 contractors by 2019/20.

154 Contractors.

150 Contractors.

222 +72 The over- achievement was due to training facilitated for the Integrated ConstructionDevelopment Programme in line with the pronouncement made in the budget speech.

4.3 To provide skills through 25 empowerment interventions by 2019/20.

5 6500(5)**notebelow.

1923(4)

-4 577(-1)

Due budget constraints,the programme planned to achieve 4 interventions during the 2016/17 financialyearinstead of 5 that was initially committed in the 2015/16-2019/20 Strategic Plan.

4.4 To promote the implementation often(10)labour-intensive initiatives by 2019/20.

2 2 5 +3 The over achievement is due tomoreprojectsthatwereidentifiedfor the promotion of labour intensive method during the year under review.

4.5 Topromote,integrate,coordinate and monitor implementation of EPWP Phase 3 by 56 public bodies by 2019/20.

56 Public Bodies.

Public 50 Bodies.

50=100%***notebelow.

N/A N/A

*Note: Although a revised target was disclosed in the 2016/17 APP page 100, the revised target was erroneously not amended in the Strategic Objectives table but only changed in the Performance Indicators table below. The correct target is 51 000 reflected in ( )

**Note: The target for 2016/17 on the Strategic Objectives table was erroneously revised during the planning process to reflect the number of beneficiaries to be trained instead of interventions planned for training those beneficiaries. The targets initially committed have since been reinstated.

***Note: Number of public bodies reporting on EPWP targets within the Province were reduced from 56 to 50 during the amalgamation that took place at the Amathole, Chris Hani, Joe Gqabi and Sarah Baartman municipalities after the local government elections. All 50 public bodies are reporting, that is why this is reported as 100% achievement”

58


Performance Indicators for Expanded Public Works Programme


Actual 2015/16


Actual 2016/17


COMMUNITY DEVELOPMENT

Strategic Objective 4.1: To bring about the development and empowerment of impoverished communities through the creation of 48 300 work opportunities by 2020.

NumberofEPWPworkopportunities created by the Provincial Department of Public Works/Roads.

50 471 51000 54 479 +3 479 The over- achievement was due to more work opportunities created by CommunityDevelopment through replacement of Household Contractorsthat are deceased and / or resigned.

Number of Full TimeEquivalents (FTE’s)created by the Provincial Department of Public Works/Roads.

20 703 21013 21 692 + 679


Number of livelihoodprojectsmonitored.

10 11 11 N/A N/A

INNOVATION AND EMPOWERMENT CUSTOMISED PERFORMANCE INDICATORS

Strategic Objective 4.2: To develop 300 contractors and provide skills through 25 empowerment interventions by 2019/20.

NumberofbeneficiaryEmpowerment Interventions.

5 4 4 N/A N/A


Strategic Objective 4.3: To promote the implementation of 10 labour intensive initiatives by 2019/20.

Numberoflabourintensive initiatives promoted.

2 4 5 + 1 The overachievement isduetomoreprojectsthatwereidentifiedforthe promotion of labour intensive initiatives during the year under review.

Numberofunemployedpeople employed throughAmathubaJobs Portal.

5 115 3000 3000 N/A N/A


COORDINATION AND COMPLIANCE MONITORING

Strategic Objective 4.4: To promote, integrate, coordinate and monitor implementation of EPWP Phase 3 by 56 public bodies by 2019/20.

Number of publicbodies reporting on EPWP targets within the Province.

56 56 50=100%*notebelow.

0 N/A

59



Actual 2015/16


Actual 2016/17


Numberofinterventions implemented to support public bodies in the creation of targeted number of work opportunities in the province.

7 7 7 0 N/A


NumberofRoadForumsfunctional according to Terms of Reference.

32 45 8 -37 The under achievement was due to local government elections and changes in the political leadership at local government which disrupted the convening and sitting of roads forums to be considered functional forums as per the TOR.

**Note: Number of public bodies reporting on EPWP targets within the Province were reduced from 56 to 50 during the amalgamation that took place at the Amathole, Chris Hani, Joe Gqabi and Sarah Baartman municipalities after the local government elections. All 50 public bodies are reporting, that is why this is reported as 100% achievement”


TheProgrammehasrecordeda91%performanceduringtheyearunderreview.Ofimportance,weresuccessesrecordedinrespecttojobcreationandempowermentinterventionsthroughtrainingeffortswhichcontributedsignificantlytothestrategicgoalnumberfour(4)ofdevelopingandempoweringcommunitiesandconstructionemerging contractors to ensure sustainable livelihoods and employment.


In order to overcome under performance in the number of public bodies reporting on EPWP targets within the province,theProgrammewillrevisetargetsfortheaffectedregionsin2017/18financialyearinlinewithnewlyamalgamatedmunicipalities.InrelationtofacilitationandconveningofRoadsForums,accordingtoTermsofReference,theProgrammewillconductinductionsessionsforthenewlyappointedpoliticalleadershipatlocalgovernmentlevelinanefforttoensureefficientconveningofmeetings.


There were no changes to planned targets during the reporting period.

60



Sub-Programme Name

2016/17 2015/16


Actual Expenditure

(Over)/Under

Expenditure


Actual Expenditure

(Over)/Under


4.1 Programme Support 15 690 15 690 - 7 645 7 645 -

4.2 CommunityDevelopment 469 187 469 187 - 456 564 455 774 790

4.3 Innovation and Empowerment 73 196 73 196 - 81 730 81 730 -

4.4 Co-ordinationandComplianceMonitoring 30 874 30 874 - 34 007 34 007 -

Total 588 947 588 947 - 579 946 579 156 790

Theprogrammehasrecordedanexpenditureof100%,onwhichithasachieved91%ofitsplannedtargets.

2.6 Transfer Payments

2.6.1.TransferPayments(ExcludingPublicEntities)

Name of the Transferee

Purpose for which the funds were

used

Compliance with s38(1)(j)ofthe

PFMA

Amount received

Amount spent by entity

Reason for the funds unspent

by entityR’000 R’000

DRPW.

Payment of rates and taxes for the government owned buildings.

N/A 282 299 282 299 N/A

2.6.2. Transfer Payments to Public Entities

The department has no trading or public entities in its portfolio nor does it have unlisted investments or funds.

2.6.3.Conditionalgrantsandearmarkedfundsreceived(NB:Nonon-financialdatapergrant)

Intheperiodunderreview,thedepartmentadministeredtwo(2)conditionalgrantsnamely,ProvincialRoadsMaintenanceGrant(PRMG)andEPWPIncentiveGrant.

Grant name Final

Appropriation Actual

Expenditure Variance

R’000 R’000 R’000ProvincialRoadsMaintenanceGrant. 1 320 829 1 306 082 14 747 Expanded Public Works Incentive to Provinces. 52 848 52 848 - Total 1 373 677 1 358 930 14 747

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PROVINCIAL ROADS MAINTENANCE GRANT

Department who transferred the grant. NationalTransport.

Purpose of the grant. Tosupplementprovincialroadsinvestmentandsupportpreventative,routineandemergency maintenance on provincial road works.

Expected outputs of the grant.

Roadclassificationprocessesare100percentcompleteandcontinuouslymaintained,includingallnewly.FullyfunctionalRAMSinlinewithminimumTMH22requirementsforaprovincialroad authority.NetworkconditionassessmentanddeterminationofprojectprioritylistfromtheRAMS.Thefollowingactualdeliveryrelatedmeasuresagainst2016/17targetsdefinedinthefinalRoadAssetManagementPlan(RAMP)foreachprovince:

o number of lane kilometres of surfaced roads rehabilitated.onumberoflanekilometresofsurfacedroadsresurfaced(overlayorreseal).onumberofm²ofblacktoppatching(includingpotholerepairs).o number of kilometres of gravel roads re-gravelled.o number of kilometres of gravel roads bladed.Thefollowingperformancebasedonnationaljobcreationindicators.onumberofjobscreated.onumberoffulltimeequivalents(FTEs)created.onumberofyouthsemployed(18-35).o number of women employed.o number of people living with disabilities employed.

Thefollowingperformancebasedonnationaljobcreationindicators.onumberofjobscreated.onumberoffulltimeequivalents(FTEs)created.onumberofyouthsemployed(18-35).o number of women employed.o number of people living with disabilities employed.

UpdatedroadconditiondataasperTMH22(pavedandunpaved),trafficdata,andbridgeconditionreportby30-Nov-16.NumberofcontractorsintheContractorDevelopmentProgramme(CDP).

onumberofcontractorsgraduatingthroughtheConstructionIndustry Development Board grading system.

Actualoutputsachieved.

Numberofsquaremetresofsurfacedroadsrehabilitated-0.Numberofsquaremetresofsurfacedroadsresealed-0.Numberofkilometresofgravelroadsre-gravelled-799.94.Numberofsquaremetresofblacktoppatching-64017.61.Numberofkilometersofgravelroadsbladed-28019.05.

AmountperamendedDORA. 1 279 725 Section22ProvincialAllocation. 41 104 AmountTransferredR’000. 1 320 829 ReasonsifamountasperDORAnot transferred. Allfundstransferred.

Amountspentbythedepartment. 1 306 082

Reasons for the funds unspent by the department.

Theunderexpenditureisduetothelateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.AnamountofR14.071millionhasbeenrequestedtoberolledover.

Monitoring mechanism by the transferring department. N/A

62


EPWP INCENTIVE GRANT

Department who transferred the grant. NationalDepartmentofPublicWorks.

Purpose of the grant. CreateJobs.

Expected outputs of the grant.NumberofpeopleemployedandreceivingincomethroughEPWP.Increased average duration of work opportunities created.

Actualoutputsachieved.NumberofpeopleemployedandreceivingincomethroughEPWPwere45959.Increased average duration of work opportunities created were 2 656.

AmountperamendedDORA. 52 848 AmountTransferredR’000. Allfundstransferred.ReasonsifamountasperDORAnot transferred. N/A

Amountspentbythedepartment. 52 848 Reasons for the funds unspent by the entity. N/A

Monitoring mechanism by the transferring department. N/A

2.7 Donor Funds

Nodonorfundswerereceivedbythedepartmentintheyearunderreview.

2.8 Capital Investments

2.8.1. Capital Investment, Maintenance and Asset Management Plan

The following tableaccounts for the infrastructureexpenditureof thedepartment for the2016/17financialyear.

Infrastructure Categories

2016/17 2015/16Final Appro-

priation Actual

Expenditure (Over)/UnderExpenditure


Actual Expenditure

(Over)/UnderExpenditure

R’000 R’000 R’000 R’000 R’000 R’000Newandreplacementassets 68 504 68 504 - 84 242 84 368 -126

Existing Infrastructure - - - - - -UpgradeandAdditions 1 195 582 1 195 582 - 957 377 957 250 127 Rehabilitation,renovations and refurbishments

3 434 3 434 - 11 273 11 272 1

Maintenance and Repairs 1 055 077 1 040 330 14 747 1 157 290 1 157 292 -2

Total 2 322 597 2 307 850 14 747 2 210 182 2 210 182 -

63


A. Progress made on implementing the capital, investment and asset management plan.

Asacustodianofprovincialinfrastructure,thedepartmentreviewsallUserAssetManagementPlans(UAMP)ofthevarioususerdepartment.TheseplansthenformthebasisfortheCustodianAssetManagementPlanwheretheaccommodationneedsforalldepartmentsfindexpression.DraftbudgetsarecompiledwithintheCustodianAssetManagementPlanandthisfurtherinfluencestheprojectedMTEFbudgetforcapitalinvestmentand maintenance needs for the provincial property portfolio.

B. Infrastructure projects which have been completed in the current year and the progress in comparison to what was planned at the beginning of the year:

Buildings Infrastructure

No Region Project Name Contract Sum Contract Value On Practical Completion

1 JoeGqabi CompletionofMagwaxazaJSS. R 2 796 731.20 R 3 048 568.60

2 ChrisHani Bulelani SSS – Erection of Palisade Fencing. R 1 609 123.68 R 1 609 123.68

3 Sarah Baartman Erection of new security fence to Mfesane SSS. R 1 330 382.28 R 1 330 382.28

4 Amathole CompletionoftheECDcentreatZamuxoloJSS. R 1 372 064.10 R 1 372 064.10

5 JoeGqabi CloeteJoubertHospital. R 5 135 597.31 R 5 112 661.61

6 O.R Tambo ConstructionofUpperNgqungqu. R 30 981 928.88 R 30 981 928.88

7 AlfredNzoCompletionofStPatricksHospital:NewOPD/Casualty&RemainderofClinicalAreas.

R 199 469 330.14 R 191 258 765.69

8

ChrisHani

RenovationsandAdditionstoWhittleseaServiceOffice. R 5 156 478.20 R 5 156 478.24

9 CompletionofRepairsandRenovationstoCalaCHC. R 10 250 248.01 R 10 592 850.35

10

Sarah Baartman

NewelevatedwatertankatLingcomPrimary School. R 1 292 038.38 R 1 292 038.38

11 Renovations and Maintenance Moses MabidaPublicLibraryforDSRAC. R 3 019 147.50 R 3 019 147.50

12 ChrisHani Renovations and Maintenance of CathcartPublicLibraryforDSRAC. R 1 541 576.40 R1 541 576.50

13Sarah Baartman

Newhighfence:AddoPrimarySchool. R 1 637 199.74 R 1 637 199.74

14 Erection of weldmesh perimeter fencing at David Livingston SSS. R 2 060 248.81 R 2 060 248.81

15 AmatholeDesign,Supplyanderectmodularstructure for Department of Social Development in Keiskammahoek.

R 5 110 032.77 R 5 110 032.77

64


Roads Infrastructure

The Transport Infrastructure (Roads) was generally successful in implementing planned and already on-goingcapitalandmaintenanceprojectsandprogrammes.TheProgrammeplannedtocompletesixprojectsnamely:

• SLATsolwanaPhaseIIupgradingof8.25kminternalstreetsinTarkastadEastandWest

• CoffeeBaytoZithuleleroadPhase1

• N6toWiggleswade

• CentanitoQholorha

• Bhisho Revitalization Phase II

• DR7386 Sabalele

However,only thefirst fourprojectswerecompleted.BhishorevitalisationPhaseIIandDR7386Sabalelewerenotcompletedandawardedanextensionoftime.TheSabaleleprojectwasdelayedasaresultofhardmaterials that were encountered during the excavation and the stormwater installations. The non-completion of the Bhisho revitalisation Phase II is attributable to the poor performance by the contractor. The penalty clause inthecontracthasbeeninvokedandrevisedcompletiontimeforbothprojectsis31May2017.

65


C.

Infr

astr

uctu

re p

roje

cts

that

are

cur

rent

ly in

pro

gres

s an

d w

hen

are

they

exp

ecte

d to

be

com

plet

ed

Proj

ect /

Pro

gram

me

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eM

unic

ipal

ityPr

ojec

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of

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stm

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ay to

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King

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ata

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Construction76%

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Upg

radi

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nd

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04-J

an-1

210

/03/

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R20

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Pha

se 1

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tu H

ospi

tal

Um

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Upg

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10-Apr-11

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OngoingProject

Upg

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09-Apr-09

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R10

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MthathaDam

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Prac

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Com

pletion

(100%)

Upg

radi

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Additions

23-J

ul-1

430

/04/

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000

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Wild

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st M

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IsilimelaHospital(Ph

ase1)-Structures

Port

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ohns

Construction76%

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Upg

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01-F

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R92

000

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esa

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Construction26%

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Upg

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01-Apr-15

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26-M

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530

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837

6 Sa

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Construction76%

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Upg

radi

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30-O

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/12/

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R17

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SLATsolwanaMun

icipality(Z

ola-T

hornhill)

EnochMgijim

aConstruction76%

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Upg

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25-Apr-14

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18R

115

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331

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l Road(Phase2)In-ho

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Upg

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01-O

ct-1

231

/03/

2019

R 1

44 0

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N6toW

riggleswade(amatoleberries)

Amahlathi

Prac

tical

Com

pletion

(100%)

Upg

radi

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Additions

01-J

ul-1

230

/09/

2017

R10

8 00

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oad08041:C

ofimvabato

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Construction76%

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Upg

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01-Apr-12

31/0

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22R

336

000

000

66


Proj

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ki U

rban

Ren

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NgquzaHill

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Com

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Upg

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/06/

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R32

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Construction26%

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20-Apr-15

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Construction76%

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10-O

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/03/

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st M

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ombo

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ba/

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ase2)-RoadWorks

Port

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ohns

Construction1%

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Upg

radi

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nd

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26-M

ay-1

431

/05/

2017

R22

2 00

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0700

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rade

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Construction76%

-99%

Upg

radi

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01-J

un-1

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sho

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italis

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ase

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ffaloCity

Construction76%

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Upg

radi

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01-M

ay-1

531

/08/

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R30

000

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7 C

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ville

to M

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leConstruction1%

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rs01-Apr-13

01-Apr-19

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67


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d Si

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trac

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rious

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-Jul

-11

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rs01-Apr-11

01-Apr-20

R27

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BM

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Construction76%

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Mai

nten

ance

and

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rs01

-Dec

-15

31-M

ar-1

9R

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580

000

SLA

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dini

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nten

ance

and

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rs01-Apr-15

31-M

ar-1

9R

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M M

aint

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Mai

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rs01-Apr-15

31-M

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rs01-Apr-15

01-Apr-18

R13

261

000

68


D. Plans to close down or downgrade any current facilities

The department planned to dispose of a number of residential properties, however, Provincial Treasuryrecommended that properties should be sold at market value. Regions have commenced with the disposal ofresidentialpropertiesto legalcurrentoccupants(givingcurrentoccupantsrightoffirstrefusal)atmarketvalue. Submissions have been prepared and submitted for approval by the relevant authority for the year underreviewinrespectofresidentialproperties.Overandabovethat,41otherdisposalswereapprovedanda process of transfer is underway.

E. The current state of the department’s capital assets:

Buildings Infrastructure condition and measures taken in addressing the maintenance backlog during the period under review:

The current state of thedepartment’s capital assets, for examplewhat percentage is in good, fair or badcondition.

Row Labels Count of Fair

Count of Good

Count of Poor

Count of Very Good

Count of Very Poor

GrandTotal

ASSETS>R5000(CAPITAL) 2 315 3 386 245 1 105 47 7 098

Grand Total 2 315 3 386 245 1 105 47 7 098

Percentage [%] 33% 48% 3% 16% 1% 100%

The diagrambelow provides the current state of the functional performance of the department’s propertyportfoliofollowedbythedescriptionoftherequiredactionsfortheportfolio.

Explanation of the ratings is as follows:

69


Condition rating Percentage of Portfolio

Meaning

C5(excellent) 18% The facility has no defects. It is in as-new condition and appearance.

C4(good) 36% Thefacilityhasminordefects.Therearesomesuperficialwearandtear.Thereissomedeteriorationtofinishes.Majormaintenanceisnotrequired.

C3(fair) 38% The facility is in a generally acceptable condition. Therearesomesignificantdefects.Somewornfinishesrequiremaintenance.Someservicesarefunctionalbutneed attention. Some maintenance work needs to be done.

C2(poor) 7% The facility is badly deteriorated to the point that it is no longer in an acceptable condition. There are potential structural problems. The facility has an inferior appearance. There are some major defects.Componentsfailfrequently.

C1(verypoor) 1% The facility has failed. Some parts are not operational or areunfitforoccupancyornormaluse.

Thefiguresbelowdepictsactionsrequiredforstate-ownedfacilitiesingeneralaswellasperregions:

70


ToefficientlyrespondtoProvincialGovernmentSpaceDemands,thedepartmentembarkedonapreparationandimplementationofdetailedportfolioplanstodeliverontherequirements.TheseplansincludeprioritisationofcategoryC3andC2classifiedassetssothattherighttypeofaccommodation,inthecorrectlocation(asperservicedeliveryrequirement)andattheoptimalcosttoProvincialGovernmentareprovidedbyDRPW(asCustodian)toUserdepartments(inlinewithGIAMA).

Furthermore,qualitydeliveryofservicewasensuredthroughsettingimprovedstandardsandnormsonthequalityofofficeaccommodationacrosstheleasedportfolio(Grades,Condition,andMaintenanceetc.).Valueformoneywasoptimisedonrentalexpenditurewhereimmovableassetsareleasedin,spaceisutilisedstrictlyaccordingtospacenorms,andrentalisbenchmarkedagainstRodeReportandPropertyBrokerNetworksforall new leases.

Further challenges related to the management and maintenance of the provincial government property portfolio –bothvacant landandbuildings.Thisrelates toStateDomesticFunctions(SDFs)builton landownedbyMunicipalities,Nationaldepartments,PrivateandParastatals.Anotherchallengerelatedtoschoolsandclinicsbuiltonunsurveyedstatelandnotownedbytheprovince.ThiscontributedtotheincompletenessoftheAssetRegister. The department continued to engage in consultation with the relevant owners mentioned above for thetransferofthesubjectproperties.ThedepartmenthasnowallocatedabudgetthoughlimitedtoembarkonaprojectofsurveyingallSDF’sonAdministrativeAreasinassistingDepartmentofRuralDevelopmentandLandReform(ChiefSurveyorGeneralOffice)asitistheirresponsibilitytosurveystateland.

GovernmentImmovableAssetManagement(GIAMA)Act19of2007,althoughthedepartmenttookstrategicstepsduringthepastfive-yearperiod,theeffectiveimplementationofGIAMAremainsachallenge.

Departmental management has stressed and highlighted the need for extensive resources in order to effectively andefficiently implementGIAMAsuccessfullyaswellascleaningandupdating theasset registersoas toensure the integrity and reliability of the data under its custodianship.

71


Progress made on the maintenance of infrastructure.

Transport Infrastructure:

In the 2016/17 financial year, the programmemet most of its targets relating to themaintenance of theinfrastructure such as re-gravelling and blacktop patching. However the programme did not meet its target for rehabilitationandresealofsurfacedroads.InJuly2016thedepartmentissuedacircular(aspartoftheeffortsofmitigatingpotentialoverexpenditureoftheVotethereforeresultinginanunauthorisedexpenditure)thatputa moratorium on the awarding of new contracts. The funds that were earmarked for reseal and rehabilitation projects(whichwerestillonprocurement)whereprioritisedtoothermaintenanceprojectsthatwerealreadycommitted.

Developments relating to the above that are expected to impact on the department’s current expenditure.

Thedeferredresealandrehabilitationprojectswillnowbeimplementedinthe2017/18financialyearandthiswill have impact of exerting more pressure on the 2017/18 budget.

Major maintenance projects that have been undertaken during the period under review.

Intheperiodunderreviewthefollowingmajormaintenanceprojectswereundertaken:

Roads

o RoutineRoadsMaintenanceprojectswithanexpenditureofR148454m

o RoutineMaintenanceContracts(RMCs)withanexpenditureofR111002m

o Re-gravelling Programme with an expenditure of R135 042 m

o DisasterProjectswithanexpenditureofR75929m

o ServiceLevelAgreementwithChrisHaniDistrictMunicipalitywithanexpenditureofR26260m

72


Buildings

No Region Project Name

1Amathole

RepairsandRenovationstoZwelitshaSub-RegionalOffices–RoadsDepot.

2 AlterationsandRenovationstoButterworthTrainingCentre.

3 Sarah Baartman OldFishResearch:ConcreteSlabReplacement,Alterations&Renovations.

4 HeadOffice Replacement of Seven Passenger and one goods lift together with 5 year postfinalcompletionmaintenancecontract.

5 ChrisHani KomaniOfficePark:ExtensionstoOfficeBlockforDepartmentofRuralDevelopmentandAgrarianReform.

6 Sarah Baartman CollegeateBuilding–RepairsandExtensionPhaseI.

7 AlfredNzo Renovations,Alterations&AdditionstoDRPWDepotOfficesinNtabankulu.

8 JoeGqabi ConversionofOldPaulKrugerHostelsintoOffices,Workshop&TrainingCentreforDRPW.

9 ChrisHani DRPW Queenstown - Repairs and Renovations to Mechanical Workshop.

10 ChrisHani Repairs & Renovations to Queenstown Depot.

11 HeadOffice ChungwaHouse-InternalRedecoration,LiftInstallation&FireDetectionforDepartmentofAgriculture.

12 HeadOffice InstallationofnewwatertanksatOldECDCbuildingandStateHouseBuildingforOfficeofthePremier.

13 Amathole IdutywaClusterOffices-RepairsandRenovations.

14 O.R Tambo BothaSigcauBuilding-Replacementofexisting11liftswithNewlifts.

Progress made in addressing the maintenance backlog during the period under review

Atthecurrentfundinglevels,theroadsinfrastructurebacklogislikelytoincrease.TheProvinceisfacedwithbothcapitalandmaintenancebacklogs,inthatonly9%oftheProvincialnetworkissurfaced,comparedtothenationalaverageofProvincesofaround25%.Basedoncurrenttrafficvolumesonthenetwork,approximately2000km of gravel roads need to be upgraded to surfaced standard.

Withregardstothemaintenancebacklog,theProvincereceiveslessthanhalfoftherequiredbudgetoveranextendedperiod.ThishasresultedinasteadydeclineintheVisualConditionIndexofsurfacedroads,whichhasrecentlyresultedintheaveragenetworkconditiondecreasingfromafairtoapoorcondition.Anurgentinterventionisrequiredtomaintainthesurfacedroadsinordertopreventthemfrommovingbeyondthestageofrequiringperiodicmaintenance,andintothestagewherehighlycostlyrehabilitation/reconstructionwillberequired.Similarly,thegravelroadnetworkisinaverypoorcondition,withgravelthicknessbeingthemostpressingcauseforconcern.Aninadequatere-gravellingprogrammehasresultedinmostofthegravelroadslosingtheirgravelwearingcourse,leavingthemexposedtoadverseweatherconditions.

Thedepartmenthassubmittedthebacklogsto theFinancialandFiscalCommission(FFC), in thehopeofobtaining additional funding to address these backlogs. The under-funding of roads is also reported to the Department of Transport and theNational and Provincial Treasury on an annual basis, as these fundingshortfallsaredescribedindetailintheannualRoadAssetManagementPlan.

73


Details as to how asset holdings have changed over the period under review, including information on disposals, scrapping and loss due to theft

Reconciliation of Movement in the Movable Asset Register as at 31 March 2017

# Assets Major R’000 Minor R’000 Total R’000

Amount per AFS 39 921 453 143 33 721 486 864

Correctionofpriorperioderror (2693) 925 (1869) (944)

Adjustedopeningbalance 37 228 454 068 31 852 485 920

Total Derecognitions (2499) (13005) (850) (13855)

Losses (34) (439) (27) (466)

Donations (1598) (906) (635) (1541)

Disposals (686) (11581) (170) (11751)

External owners (181) (79) (18) (97)

Additions 1 456 15 401 1 681 17 082

Accruals 358 3 614 140 3 754

Closing balance at 31 March 2017 36 543 460 078 32 823 492 901

Measures taken to ensure that the department’s asset register remained up-to-date during the period under review

• Assets accounted for on theAccrual basis (assets verified and captured in theAsset Register whendelivered)

• AssetRegisterandGeneralLedger(BAS)Reconciliationdoneonaweeklybasis.

• Regularverificationofexistingassetsisperformedonanongoingbasis.

• Anannualprogrammedverificationofallassetsisperformedatfinancialyearend.

• Procedures and Policy are in place to guide stakeholders with regard to the management and reporting of lost,donatedanddisposedassets.

• AllassetcustodiansmustsigntheOfficeAssetRegister.

PART C: GOVERNANCE

75

76


3. PART C: GOVERNANCE

3.1. Introduction

The department is committed to maintain the highest governance standards which are fundamental to the management of public finances and resources. Good governance is essentially about effective, ethical,responsible,transparentandaccountableleadership.AtDRPWgovernancealsoentailshowdepartmentismanaged,which includesculture,policiesandstrategiesand theway it dealswith stakeholders.Outlinedbelow is a number good governance structures and practices theDepartment has in place to effectively,efficientlyandeconomicallyutilizethestateresourcesentrustedtoitbythetaxpayers.

3.2. Risk Management

TheDepartmentofRoadsandPublicWorksreviewedandapprovedtheRiskManagementPolicy,Strategyand Risk Management implementation Plan during the year under review. The Risk Management Unit took a proactive approach in conducting awareness campaigns on risk management strategy and policies to ensure that risk management is incorporated into the language and culture of the department and embedded in thebehaviourandmind-setof itsemployeesasprescribedby thePFMAandTreasuryRegulations3.2.1.Risk management objectives were set for the implementation, communication and improvement of riskmanagement within the department. The process of managing risk is a structured approach for incorporating riskmanagementintothedaily,broadermanagementprocesses.

TheKingCodestatesthat“TopManagementisresponsibleforthetotalprocessofriskmanagement,aswellasforformingitsownopinionontheeffectivenessoftheprocess”.TheKingCodereflectsonriskmanagementasan integral part of strategic and operational activities. The Head of Department committed management of the departmenttocomplywithallrelevantCorporateGovernanceprocesses.TheRiskmanagementandInternalAuditUnitsofthedepartmentreportsatanappropriatelevel(administrativelyreporttotheHeadofDepartmentandfunctionallytotheAuditCommittee).RiskManagementcontinuedtobepresentedintheTopManagementCommitteeduringtheyearunderreviewisastandingitemontheagendaoftheTopManagementCommitteemeetings.

TheRiskManagementUnit,throughtheapprovedRiskManagementImplementationPlan,regularlyconductsrisk assessment at different directorates and regions. On a monthly basis the Risk Management Unit reports onemergingrisksidentifiedtothedepartmentalTopManagement.RiskManagementreportedresultsofthemonitoringprocesstoRiskandEthicsManagementCommittee,AuditCommitteeandProvincialTreasury.

Included in the Risk Management process was quarterly reporting by programs and regions on theimplementationofRiskactionplans,validationoftheactionsreportedandreportingonthestatusoftheriskstotheRiskManagementCommittee.RiskManagementcontinuedtodowellonMPATasitwasassessedtobeatlevelscoreof4whichisthehighestscoreaccordingtoDepartmentofPlanning,MonitoringandEvaluation.

RISK MANAGEMENT COMMITTEE

TheHeadofDepartmentappointedRiskandEthicsManagementCommitteewithanexternalChairpersonduringtheyearunderreviewtoexercisecertainresponsibilitiesincluding,amongstothers:

Monitoringthedevelopment,implementationandrevisionofthefraudpreventionstrategy;

Monitoring and reviewing the fraud cases reported and recommending for referral where necessary;

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Monitoring that the annual risk assessment is timeously performed;

Reviewing the risk strategies; and

Evaluating the reports of external and internal audits to advice on the appropriate action.

TheCommitteewaschairedbytheexternalchairperson,CraigSparg,whobringsalotofvaluableexperienceingovernancematters.AllprogrammemanagersareappointedasRiskManagementCommitteemembersastheyaredesignatedriskowners.TheAuditCommitteeadopteditswrittentermsofreferencewhichdealtwithitsmembership,authorityandresponsibilities.Thetermsofreferencearereviewedatleastannuallytoensurerelevance.TheAuditCommitteeandtheRiskManagementCommitteereviewedtheriskmanagementprocesses.Thedepartmenthadfour(4)RiskandEthicsManagementCommitteemeetingsduringtheyear.TheRiskManagementCommitteechairpersonsubmittedreportsaftereachmeetingtotheHODupdatingtheHOD on the status of risk management in the department.

Performance assessment of Risk Management

Thematurity levelsof thedepartment’s riskmanagementhavebeenassessedbyboth theDepartmentofPerformanceManagement and Evaluation (DPME) via (MPAT) and Treasury via the Financial CapabilityModel.TheMPATresultswerereceivedandthedepartmentwasassessedtobeatlevel4whichisthehighestscore and was assessed at level 5 by Treasury which is also the highest score in terms of their own maturity level. The improved maturity of risk management in the department has translated to an improved overall performanceof thedepartment inmanagingtherisks.The improvedexpenditurepatterns, improvement inthe strategic management processes and development and review of policies have been approved through alignment of risk management with performance management systems.

3.3. Fraud and Corruption

In the year under review the following activities were performed under fraud and corruption:

The department has an approved Fraud Prevention Policy, Fraud Prevention Strategy aligned withthe Provincial Fraud Prevention Plan, Investigation Policy, Conflict of Interest Policy and Fraud RiskManagement Implementation Plan.

TheFraudRiskAssessmentwasconductedinthecurrentfinancialyearandmitigationplanswereidentifiedand are addressed or implemented on a continuous basis

Conducted49Anti-FraudAwarenessandEthicsAwarenesscampaigns/sessionsinalltheregionsandheadoffice

TheGiftpolicywasreviewedandcommunicatedtoemployees

TheCodeofConductwascommunicatedtoallemployeesandsignedcopiesweredistributedtonewlyemployedemployeesandfilledonpersonnelfiles

CaseswereinvestigatedastheycomewithinthestipulatedtimeandallcasesreceivedfromNationalAnti-CorruptionHotlinewereinvestigatedandfeedbacksubmittedtoPublicServiceCommission

RiskAssessmentwithFinanceandSupplyChainwasconducted

EthicsworkshopswereconductedwithSupplyChainManagementandFinanceinalltheRegions

The department developed a Whistle Blowing Policy which is aligned with the Provincial Whistle Blowing Policy and customised to talk to the Department of Roads & Public Works.

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TheDepartmentiscurrentlyusingtheNationalAnti-CorruptionHotlineforreportingofallegationsbythepublicand an internal process of reporting allegation of fraud & corruption is also followed. The department has an internalcapacitytodealwithcasesthatarereported.ComplexcasesarereferredtoConsultingcompaniesforinvestigation on DRPW behalf although the department have not had such cases during the year under review. SummaryofthecasereportswerereportedtoRiskManagementCommittee;AuditCommitteeandOfficeofthePremier(OTP).

Below is the summary report of cases received and investigated during the year:

Departmental Fraud & Corruption summary of cases:

HOTLINE WALK IN

Casesbroughtforwardfrompreviousyear. 6 6

Casesreceivedduringtheyear(2016/17). 3 3

TOTAL NUMBER OF CASES IN 2016/17 9 9

ClosedCases. 5 2

PendingCases. 4 7

Summary of Pending Cases

CasesInvestigatedExternally. 0 2

CasesInvestigatedInternally. 4 5

Assessment of Implementation of the Fraud Prevention Plan

The Department of Roads and Public Works was assessed by the Department of Planning Monitoring and Evaluation on the implementation of Fraud Prevention as well as the implementation of Ethics Program. In bothcases,thedepartmentwasassessedandreceivedlevel3asperstandardsetwhichreflectsgoodqualityperformance of these governance practices and compliance with legislation.

3.4. MinimisingConflictofInterest(EthicsManagementprogramme)

The Department of Roads and PublicWorks implemented a process of managing conflict of interests incompliancewiththePolicytoProhibitTradeand/EmploymentbyemployeesoftheEasternCapeProvincialgovernmentwithoutapproval.TheseprocessesincludeFinancialDisclosurebySMSmembers,declarationofinterestbyofficials,declarationsduringthesittingoftheBidCommittees,AuditandRiskCommittees.AgiftregisteriskeptintheofficeoftheHeadofDepartmentandalsointheOfficeoftheRegionalDirectorsinallthe Regions.

The department has taken action against employees that have been found to be trading with the state and those that have registered on the provincial supplier data base. The department had a challenge in identifying employees that are trading with the other public institutions and relied on information that has been received after the event.

However,a requesthasbeenmadetoOfficeof thePremier toassist theDepartment.ProvincialTreasuryissuedaconflictofinterestreportonthe5April2016totheDepartmentwithatotalof144employeesthatwereregisteredontheCentraliseddatabase.TheAccountingofficerthenmadeafollowthroughdisciplinaryprocesses and the impact of that intervention lead to a decrease of the employees that are registered with TreasurywhichhasbeenconfirmedbythereportthatwasissuedbyProvincialTreasuryonthe5April2017

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whichhadonly34employeesoftheDepartmentthatarestillontheCentralisedSupplierDataBase.DPSAinstruction note has also been communicated to employees of the department which communicate the new PublicServiceRegulationsthatprohibittheofficialsfromtradingwithPublicBodies.

3.5. Code of Conduct

AllnewemployeeshavesignedandacknowledgedthereceiptofcopiesoftheCodeofConductastheyarriveinthedepartment.Thedepartmentconducted49ethicsawarenessworkshopsduringthe2016/17financialyear. Unethical behaviour reported is investigated and misconduct cases are reported and appropriate action is taken.

3.6. Health and Environmental Issues

TheDepartment isalsocontinuing inworkingtowardsfullcompliancewithConstructionHealthandSafetylegislation and regulations. During 2016/17 the department continued improving with the appointment of OHS agentsand thesubsequentenforcementofcompliancewith these regulationsbyappointingbuildingsandcivilengineeringcontractorsformostprojects.AllregionsandheadofficecontinuedtoreceivetrainingandimplementationsupportfromtheappointedexperiencedOHSpractitioners.However,continuedchangesandmajorupcomingdevelopmentsintheOHSfieldrequirecontinuedimprovementsintheimplementationofOHSregulations by the department.

3.7. Portfolio Committees

During2016/17financialyearthedepartmentappearedbeforethePortfolioCommitteeonthreeoccasions.Firstlytoconsiderthedepartment’sbudgetvoteon12to17May2016;secondlyon25-28OctobertoconsidertheAnnualreportandonthe28thFebruary2017toconsidertheMid-YearReport.

InrelationtoProgramme1:Administrationnine(9)findingsandrecommendationsweremadebythePortfolioCommittee relating toavarietyofmatters including limitedengagementof thedepartmentondiscussionsrelating to moving the Roads Infrastructure Programme to the Department of Transport; the non-approval of the organogram; failure to attract skilled professionals; high staff turnover rates; control weaknesses; irregularities; failuretoimplementInternalAuditrecommendations;amoratoriumplacedonpurchasingthewhitefleetandofficialsthataretradingwithgovernment.

Most recommendations from the Portfolio Committee were implemented fully or satisfactorily respondedto as per the committee’s requirements. For example, the department allocated resources to consistentlyparticipate on structures that facilitated the relocation of the roads function to the department of Transport; it consistentlyengagedthePCMTontheapprovaloftheAnnualRecruitmentPlanthatincludedthecorecriticalpositions such as engineers, technicians, legal and IT positions as recommended by the committee.TheAnnualRecruitmentPlanwasfinallypartiallyapprovedandmechanismslikeheadhuntingwereemployedtoattract skilled professionals especially in the Roads Infrastructure space.

In caseswhere the nature of the recommendation requires on-going action like reporting to the PortfolioCommittee or disciplinary processes that are still underway or on-going monitoring of implementation ofInternalAudit recommendations forexample, theseactivitiesareontrack.Therecommendationrelating toimprovementofthelevelofInternalAuditorpostsisoutsidethecontrolofthedepartmentasitisawaitingajobevaluationexercisetobeconductedbytheDepartmentofPublicServiceandAdministration(DPSA).

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InProgramme2BuildingInfrastructure,seven(7)findingsandrecommendationsweremadebythePortfolioCommitteerelating toamongstothers, thecapacitationof thePublicWork function,monitoringofprojects,delays inpaymentofsuppliersand issuingofworkorders,under-utilisationofbuildingsand installationoframps to make buildings accessible.

Onthisprogramme,five(5)recommendationsweresatisfactorilyrespondedtoasplansweresubmittedtothecommitteeaspertherecommendation.Two(2)recommendationsareimplementedbutstillinprogress.Theserelate to fast tracking the building of DRPW capacity to function as a nerve centre as well as the installation of access ramps in government buildings.

Ofthefour(4)findingsandrecommendationsmadetoProgramme3inrelationtocapacityissues,projectsthatarenotcompletedontimeandunderspending,three(3)wereimplemented.PostsrequiredtocapacitatetheRoadsfunctionwereprioritisedintheARPandrecruitmentisinprogress,theemergingcontractorsaresupportedforupgradingtohigherlevelsintheCIDBregisterandclosemonitoringofprojectsisanon-goingactivity.

InrelationtotheEPWPprogramme,seven(7)findingsandrecommendationsweremademostlycommendingtheprogrammeondoingwell or improving in someareas.All recommendationswerenotedandplans tosustain the good performance on an on-going basis were presented to the committee.

3.8. SCOPA Resolutions

Ref. No. Findings Recommendations Response by the department Resolved(Yes/No)

(a) The Department disclosed irregular expenditure of R2.4 billion that has accumulated over a number of years and that has not been recovered or written off,asdisclosedin note 23.1 to the financialstatements.Inaddition,irregularexpenditure of R659.6 million was incurred during the current year. The amount is also disclosed in note 23.1tothefinancialstatements.

TheAccountingOfficermustensurethat irregular expenditure that has been accumulated over a period of years is addressed. TheAccountingOfficermustalsotake proactive steps to prevent future irregular expenditure. In addition,actionmustbe taken against the officersresponsiblefor the irregular expenditure. Within 30 days after the adoption of the report,aplanorproof of evidence must be submitted totheCommitteeonhowtheAccountingOfficerwillensurethatsection38(1)(c)(ii)and(h)(iii)ofthePFMAiscompliedwith.

Irregular expenditure to the •amount of R1.8b was condoned byNationalTreasuryduringtheyear.AnamountofR824m has been submitted to ProvincialTreasuryrequestingcondonement. The balance of R635m is being investigated and disciplinary process will be institutedsubjecttotheoutcomesof the investigation.

Circularsaimedatpreventing•SCMweaknessesidentifiedduring the audit that have led to irregular expenditure were issued.

Workshops and training have •been conducted on the new guidelinesonthePPPFAwhichbecameeffectiveon1April2017.

Workshops were conducted on •Irregular Expenditure and the auditfindingsfromtheauditof15/16.

Procurement planning and •general bottlenecks in Supply ChainManagementareastanding agenda item in Top Managementmeetings,whichresulted in reduction in the instances of deviations that were themajorriskareainirregularexpenditure.

Partially resolved. In some cases condonement is awaiting treasury approval,outcomeof the investigations and/orfinalisationof disciplinary processes in cases whereofficialsarefound to be liable in law for the irregular expenditure.

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DepartmentalCommittee’s•also are more vigilant in the evaluation and award of bids to ensure compliance. This is as a result of the impact of circulars issued,generalawarenessonnon-compliance and disciplinary processes.

The Department has drafted •a systems description on the prevention,identificationandreporting of irregular expenditure.

Aninvestigationwasconducted•whethertherewereofficialsliablein law on the irregular expenditure and the report is attached. In casewhereanofficialliableinlawwasidentifiedletterswereissuedto them.

(b) Disciplinary steps were not taken againstofficialswho made and/or permitted irregular as well as fruitless and wasteful expenditure,asrequiredbysection38(1)(h)(iii)ofthePFMAandTreasuryRegulation 9.1.3.

Appropriatedisciplinary steps must be taken againstofficialswhocontravened the provisions of the PFMAintermsofsection38(1)(h)ofthePFMA.

Investigations were conducted on instanceswhereirregular,fruitlessand wasteful expenditure was incurred.

Eventhoughthereisabacklog,consequencemanagementlettershavebeenissuedtoofficialsthathavebeenidentifiedtohavecausedirregular expenditure in the prior year

The fruitless and wasteful expenditure outcomes have been referredtotheHeadofCorporateServices for recoveries from responsibleofficialsandthirdparties,writeoffswerereferredtoCFO.

Partially resolved. Awaitingconclusionof investigations and /or disciplinary processes to finaliserecoveriesand / or write-offs.

(c) The Department disclosed an amount of R3.6m to be fruitless and wasteful expenditure that has been accumulated over a number of years and that has not been recovered or written off.Inaddition,fruitless and wasteful expenditure of R5.6m incurred during the year under review is included in the amountdisclosed,but it has not been recovered or written off.

TheAccountingOfficermustensurethat accumulated fruitless and wasteful expenditure is recovered from officialsresponsibleor condoned before the end of this financialyear.Areport as proof of evidence must be submitted to the Committeewithin30 days after the tabling of this report.

Atotalof57casesamountingR1.15m,allofwhichweresubjectof litigation were investigated and recommendations ranging from recovery of monies involved to disciplinaryactionagainstofficialsfound culpable were made.

The fruitless and wasteful expenditure outcomes have been referredtotheHeadofCorporateServices for recoveries from responsibleofficialsandthirdparties,writeoffswerereferredtoCFO.

Partially resolved. Awaitingconclusionof investigations and /or disciplinary processes to finaliserecoveriesand / or write-offs.

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(d) TheCommitteefound that the Department re-stated the corresponding figuresfor2015asa result of errors discovered during 2016inthefinancialstatements of the Department for the year ended 31 March 2015.

TheAccountingOfficermustensure an accurate recording of transactions in line with the requirementsofsection40(1)(a)and(b)ofthePFMA.

The recommendation of the Committeeisnoted.Theinaccuraterecording of transactions was due to the occurrence of restatements in theannualfinancialstatements.Forthe year 2016/17 the Department does not envisage any restatements inthefinancialstatementsunderreview.

No. Material adjustmentswereprocessed for commitments and accruals relating to 2016/17financialyear.

(e) The Department awarded contracts tobidders,basedon preference points that were not allocated and/or calculated in accordance with therequirementsof the Preferential Procurement Policy FrameworkActandits regulations.

TheAccountingOfficermusttakeaction against the officer/sresponsiblefor the awarding of contracts who failed to take precautions. TheAccountingOfficermustalsoensure that the requirementsof Preferential Procurement Policy FrameworkActNo.5of2000areadhered to.

Lettershavebeenissuedtoofficialsthathavebeenidentifiedtohavecaused irregular expenditure in the prior year.

Appropriatecontrolswereputinplace to avoid recurrence.

Yes.

(f) Persons in service of the Department whose close family members,partnersor associates have private or business interests in contracts awarded bytheDepartment,failed to disclose such interest as is requiredbyTreasuryRegulation16A8.4.

TheAccountingOfficermusttake appropriate action against the employees of the Department who failed to disclose their business interests during the year under review.Inaddition,the Executive Council’sdecisiontoprevent government employees from conducting business with the state must be enforced by the AccountingOfficer.

TheprocessofDisciplinaryActionagainstthesaidofficialsison-goingand the process is expedited by Labour Relations Unit.

Fiftyone(51)officialshaveresponded on representations; thirty four(34)havenotyetresponded,recordsofthree(3)officialsarenotfound;contractsof14officialshaveexpiredandthree(3)caseshavebeenfinalised.

Actionhasbeentakenagainstemployees trading with the state and sanctions have been issued.

ConductedEthicsandFraudAwarenessWorkshops.

Initiated individual consultation with officialsidentifiedtobedirectorsofcompanies whose names are listed inCentralisedsupplierdatabase.

Yes.

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(g) Investigations were not conducted into all allegations of financialmisconductcommitted by officials,asrequiredby Treasury Regulation 4.1.1.

TheAccountingOfficermustensurethat investigations are conducted within a period of 30 days after allegations of financialmisconducthavebeenidentified.Afterwards,thoroughinvestigation disciplinary action must be taken against the responsible officialsandproofof evidence must be presented to the Committeewithin30 days after the tabling of this report.

Actionhasbeentakenagainstemployeeswhocommitfinancialmisconduct during 2015/2016 financialyear.Outofthethirtyfour(34)employeesissuedwithletters,eight(8)caseswerefinalisedandtwentysix(26)casesareinprocess.

Partially resolved.

3.9 Priormodificationstoauditreports

No Nature of qualification,disclaimer, adverse opinion and matters of non-compliance

Progress made in clearing / resolvingthematter*

Financial year in which it firstarose

Measures put in place to prevent recurrence

1 Irregular expenditure.

Irregular expenditure of approximately R 1.8 billion has been condoned in 2016/17 financialyearandadjustedintheannualfinancialstatements.

2010/11 Preventative procedures implemented involved circulation of circulars on identifiedirregularitiesandtrainingofstaffonNationalTreasuryGuidesonirregularexpenditure.

Disciplinary procedures institutedagainstofficialsresponsible for the incurring such irregular expenditure.

2 Fruitless and wasteful expenditure.

Conductedinvestigationsontheincurred fruitless and wasteful expenditure.

R222 000 has been written off after this investigation.

Proposed recoveries from responsibleofficialsamountingto R50 945.

Proposed recoveries from third parties amounting to R899 907.

2016/17 Conductedtrainingofstaffon prevention and detecting Fruitless and wasteful expenditure.

Disciplinary procedures institutedagainstofficialsresponsible for the incurring such Fruitless and Wasteful expenditure.

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3.10 Internal Control Unit

TheunithasbeenoperatingwithtwosectionswhichareGovernanceandLossControl,andduringthethirdquarterPre-Auditwas transferred to theunit.Governancehada staff capacityof six (6) contractworkerswhosecontractscametoendbythe31December2016.TheLossControlsectionhasastaffcapacityofonepermanentemployeeandonecontractworker,atRegionsthefunctionisperformedasanadditionaltasktoofficialsemployedatSupplyChainManagement,AssetandSecurity.

Key Activities: Governance

The department has a total number of 80 policies recorded in the policy register. The table below indicates the status of policies during the year under review.

No Policy Status Number of Policies Policies %

1 Due for review. 27 34%

2 Valid. 16 20%

3 Recently reviewed. 33 41%

4 Newapproved. 1 1%

5 NewDraft. 3 4%

Total 80 100%

Sixteenfinancialrelatedsystemdescriptionshavebeenreviewedintheyearunderreview.

Loss Control

Investigated the reported asset losses and provided recommendations.

Office/Region Reported Cases Finalised Cases Percentage Finalised

HeadOffice 39 24 62%

Sarah Baartman 16 7 44%

JoeGqabi 30 9 30%

O.R Tambo 6 0 0%

Amathole 19 13 68%

AlfredNzo 14 4 29%

InHouseConstruction 67 37 55%

ChrisHani 5 0 0%

Total 196 94 48%

• Provided hands on support to all Regions.

• ConductedtrainingforsecondedLossControlOfficersandLossControlCommitteemembers.

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Pre-Audit

• Provide compliance assurance to orders; and

• Provideexpenditureassurancebyverifyingthefollowingauditassertions:validity,occurrence,accuracyand completeness.

• NumberofOrdersandPaymentsPre-audited

No. Office/Region Payment Orders

1 HeadOffice 8 827 6 300

2 Sarah Baartman 1 388 985

3 O.R Tambo 891 633

4 AlfredNzo 656 466

5 JoeGqabi 878 623

6 In-HouseConstruction 368 261

7 ChrisHani 752 534

8 Amathole 1 142 811

Total 14 902 10 613

3.11. Internal Audit and Audit Committee

INTERNAL AUDIT

TheobjectiveoftheInternalAuditfunctionistoprovidemanagementwithindependent,objectiveassuranceand consulting services designed to add value and to continuously improve the operations of the Department ofRoadsandPublicWorks.Itassiststhedepartmenttoaccomplishitsobjectivesbybringingasystematic,disciplinedapproachtoevaluateandimprovetheeffectivenessofGovernance,RiskManagementandControlprocesses.

Thekeyactivitiesofinternalauditservicesistoevaluatewhetherthedepartment’ssystemofgovernance,riskmanagementandcontrolprocesses,asdesignedbymanagement,isadequateandfunctioninginamannerto ensure that:

Risksareappropriatelyidentifiedandmanaged

Interaction with the various governance groups occurs as needed

Significantfinancial,managerial,andoperationalinformationisaccurate,reliable,andtimely

Employee’s actions are in compliance with policies, standards, procedures, and applicable laws andregulations

Resourcesareacquiredeconomically,usedefficiently,andadequatelyprotected;

Programs,plans,andobjectivesareachieved

Qualityandcontinuousimprovementarefosteredinthedepartment’scontrolprocess

Significant legislative or regulatory issues impacting the department are recognised and addressedappropriately

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Summaryofauditworkdoneduring2016/2017financialyearisasfollows:

Risk based auditsFollow up on management of reportedfindings(followupaudits)

Legislative audits

Consulting activities (requestsfrommanagement and audit committee audits)

Cyclical audits (Consultingactivities)

AlfredNzo.•

ChrisHani.•

Amathole.•

JoeGqabi.•

OR Tambo.•

Sarah Baartman.•

Roads •Infrastructure.

Asset•Management.

Buildings.•

Expanded Public •Works Programme (EPWP).

Strategic •Management Unit.

CorporateServices.•

OfficeoftheCFO.•

In-house •ConstructionUnit.

Information •Communicationand Technology (ICT).

Legal Services.•

Security •Management.

OfficeoftheHOD.•

OfficeoftheMEC.•

Property •Management.

ChrisHani.•

Asset•Management.

SupplyChain•Management.

Buildings.•

Property •Management.

Roads •Infrastructure.

In-house •Construction.

Sarah Baartman. •

In-house •ConstructionUnit.

ChrisHani.•

AlfredNzo.•

JoeGqabi.•

Review •implementation oftheAuditImprovement Plan.

Expanded Public •Works Programme (EPWP).

Asset•Management.

FollowuponAudit•Improvement.

Plan(Followupon•implementation.

ofAuditorGeneralfindings).

Review of •annualfinancialstatements and annual report for 2016financialyear.

Review of •Interimfinancialstatements(Q1,Q2&Q3).

Conditional•grants and transfer payments.

Auditof•governance,riskmanagement and internal control processes.

Inventory •management audit.

Performance •assessments outcomes’audit(ReviewofPerformance Management Development Systems (PMDS).

Review of •Contingentliabilities.

ReviewofSITA•SLA.

Management •of performance assessment tool (MPAT).

Quarterly reviews •on the audit of performance information(Q1,Q2,Q3&Q4).

Dashboard report •review.

The internal audit annual coverage plan was comprehensively implemented and additional work emanated from top management and audit committee resolutions was also completed. The department obtained a ratingscoreof4onMPATresultsonassessmentofaccountabilitymechanisms(AuditCommitteeandinternalaudit arrangements). Internal Audit Services obtained positive results on evaluation by Audit CommitteeandTransversalInternalAuditServices.TheInternalAuditcompliedwiththeInternationalStandardsfortheProfessionalPracticeof InternalAuditors issuedby Instituteof InternalAuditors(IIA).Someof the InternalAuditorscompletedtheLearnershipprogrammes(InternalAuditTechnicianandGeneralInternalAuditor)andweresuccessfulontheirassessmentsbyIIASA.

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AUDIT COMMITTEE

TheobjectiveoftheauditcommitteeistoassisttheAccountingOfficerandMemberofExecutiveCouncilinfulfillingitsoversightresponsibilitiesforthefinancialreportingprocess,thesystemofinternalcontrol,theauditprocess,andthedepartment’sprocessformonitoringcompliancewithlawsandregulationsandthecodeofconductandITGovernancearrangements.

Theauditcommitteeadopteditswrittentermsofreference,whichdealtwith itsmembership,authorityandresponsibilities. The terms of reference are reviewed at least annually to ensure its relevance. The audit committeetermsofreferencedocumentwasacceptedbyauditcommitteeandcompliedwithalltherequirementsofthetermsofreference.Theauditcommitteereviewedriskmanagementprocesses,internalauditactivityandmanagement reports submitted to it and all the reports were discussed during the audit committee meetings. Thedepartmenthadseven(7)meetingsduringtheyear,precededbyRiskManagementCommittee(RMC)andICTGovernanceCommitteemeetings.

MeetingswereheldwithHeadofDepartment(HOD)andMemberofExecutiveCouncil(MEC)andsignificantissues were raised with executive authority.

Theauditcommitteeapprovedall internalauditpolicies,suchasInternalAuditMethodology, InternalAuditCharter(IAC)andarollingthreeyearstrategicandinternalauditannualcoverageplans.TheMemberoftheExecutiveCouncil(MEC),HeadofDepartment(HOD),ChiefFinancialOfficer(CFO),ChiefAuditExecutive(CAE)andtopmanagementofthedepartmentformallyevaluatedthefunctioningoftheAuditCommitteeofthedepartmentandfoundtobecomplyingwithrelevantsectionofPFMAandTreasuryRegulations.Theauditcommittee of the department is effective in discharging its responsibilities.

The table below discloses relevant information on the audit committee members:

Name QualificationsInternal or external member

If internal, position in the depart-ment

Date appointed

Date Resigned

No. of Meetings attended

Mr.S.Ngqwala(Chairperson)

Honours in Bachelor of AccountingScience.

External n/a 01 October 2014

Existing member

7

Mr.T.Zororo(Member)

CertifiedInternalAuditor(CIA),CertifiedinRiskManagementAssurance(CRMA),CertifiedintheGovernanceofEnterpriseIT(CGEIT),CertifiedinRiskand Information Systems Control(CRISC),CertifiedInformationSystemAuditor(CISA),CertifiedInformationSecurityManager(CISM),CertifiedCOBIT5Assessor,PostGraduateDiplomainComputerAuditing(Wits), B.Sc(Honours)InformationSystems(MSU),CharteredInstitute of Secretaries and Administrators(Economics,FinancialAccounting,PrinciplesofMarketing)–CIS.


Existing member

4

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If internal, position in the depart-ment

Date appointed

Date Resigned


Mr. T. Boltman(Member)

CertifiedInternalAuditor(CIA),BTechdegreeinInternalAudit,CertifiedGovernmentAuditingProfessional (CGAP).


Existing member

5

Ms. T. Cumming(Member)

BCom,CTA CharteredAccountant.


Existing member

7

Mr. S. Dibate(Member)

Postgraduate Diploma in Property Development and Management,BTechdegreeinQuantitySurveying,NationalDiplomainBuilding.

External n/a 01 February 2017

Existing member

1

3.12. REPORT OF THE AUDIT COMMITTEE

TheAuditCommitteeispleasedtopresentreportforthefinancialyearended31March2017.

Introduction

TheAuditCommitteeplaysan important role inensuring that thedepartment functionsaccording togoodgovernance, accounting and audit related standards. It also monitors the adoption of appropriate riskmanagement arrangements

Commitment by the department to maintain the highest standards of governance is fundamental to themanagement of public finances and resources. Users want assurance that the department has goodgovernancestructuresinplacetoeffectively,efficientlyandeconomicallyutilizethestateresources,whichisfunded by the tax payers.

Audit Committee members and attendance.

TheAuditCommitteeconsistsofthememberslistedhereunderandhasmetasreflectedbelow.

Name of the members Number of meetings attended Date of appointment

Mr.S.Ngqwala(Chairperson) 7 of 7 01 October 2014

MsT.Cumming(Member) 7 of 7 01 October 2014

Mr.T.Zororo(Member) 4 of 7 01 October 2014

Mr.T.Boltman(Member) 5 of 7 01 October 2014

Mr.S.Dibate(Member) 1 of 2 01 February 2017

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The table below discloses relevant information on the Audit Committee members:


If internal, position in the depart-

ment

Date appointed

Date Resigned


Mr.S.Ngqwala(Chairperson)

Honours in Bachelor of AccountingScience


Existing member

7

Mr.T.Zororo(Member)

CertifiedInternalAuditor(CIA),CertifiedinRiskManagementAssurance(CRMA),CertifiedintheGovernanceofEnterpriseIT(CGEIT),CertifiedinRiskand Information Systems Control(CRISC),CertifiedInformationSystemAuditor(CISA),CertifiedInformationSecurityManager(CISM),CertifiedCOBIT5Assessor,PostGraduateDiplomainComputerAuditing(Wits), B.Sc.(Honours)InformationSystems(MSU),CharteredInstitute of Secretaries and Administrators(Economics,FinancialAccounting,PrinciplesofMarketing)–CIS.


Existing member

4

Mr. T. Boltman(Member)

CertifiedInternalAuditor(CIA),BTechdegreeinInternalAudit,CertifiedGovernmentAuditingProfessional (CGAP).


Existing member

5

Ms. T. Cumming(Member)

BCom,CTACharteredAccountant.


Existing member

7

Mr. S. Dibate(Member)

Postgraduate Diploma in Property Development and Management,BTechdegreeinQuantitySurveying,NationalDiplomainBuilding.

External n/a 01 February 2017

Existing member

1

Mr.C.SpargattendedthemeetingsofAuditCommitteeinthecapacityofChairpersonforbothInformation&CommunicationTechnology(IT)Governance,RiskManagement&EthicsCommittees.

TheAuditCommitteehadseven (7)meetingsduring theyear,precededbyRiskManagementCommittee(RMC)andITGovernanceCommitteemeetings.MeetingswereheldwithMemberofExecutiveCouncil(MEC)andHeadofDepartment(HOD)andsignificantissueswereraisedwiththem.SeparateclosedmeetingswereheldwithAuditor-GeneralofSouthAfrica(AGSA)andinternalauditduringtheyearunderreview.TheAuditCommitteealsohadtwo(2)closedmeetingswithHeadoftheDepartment(HOD).AuditCommitteereportswere submitted toMECandHOD’soffices for escalationof certainmatters. Inmany instancesProvincialTreasury,MECandHODattendedAuditCommitteemeetings.

90


Adoption of Audit Committee Terms of Reference

TheAuditCommitteeadopteditswrittentermsofreference,whichdealtwithitsmembership,authorityandresponsibilities.

Thetermsofreferencearereviewedatleastannuallytoensureitsrelevance.TheAuditCommitteereviewedriskmanagementprocesses,internalauditactivityandmanagementreportssubmittedtoitandallthereportswerediscussedduringtheAuditCommitteemeetings.

TheMEC,HOD,Chief FinancialOfficer (CFO),ChiefAudit Executive (CAE) and topmanagement of thedepartment formally evaluated the functioningof theAuditCommitteeof theDepartment and found tobecomplyingwith relevant section ofPFMAandTreasuryRegulations and its termsof reference.TheAuditCommitteeoftheDepartmentiseffectiveindischargingitsresponsibilities.

Summaryofactivitiesduringthefinancialyearunderreview

TheAuditCommitteeapprovedall internalauditpolicies,suchasInternalAuditMethodology,InternalAuditCharter (IAC) and a rolling three year strategic and internal audit annual coverage plan. The risk basedinternal audit annual coverage plans was comprehensively implemented and progress report were presented toAuditCommitteeandrecommendationsforsignificantfindingswerediscussedinthepresenceofprogrammemanagers.AuditCommitteeresolutions/recommendationsinrelationtoaddressingofbothinternalauditandAuditorGeneralreportswerenotfullyimplemented.

Audit Committee responsibility

TheAuditCommitteeexerciseditsoversightroleregardingthefollowing:-

• Internalcontrolsandmanagementofrisks

• InternalAuditActivity

• Reviewandapprovalofannualcoverageandrollingthree(3)yearinternalplans

• Compliancewithlawsandregulations

• FinancialManagementandAnnualReport

• Reviewofauditorgeneralreport

• RiskManagementandFraudPreventionstrategies,and

• InformationCommunication&Technology

Effectiveness of internal control systems

The review of the effectiveness of internal control systems through management reports, internal auditreports,riskmanagementreportsandAuditorGeneralreportsrevealedthatthesystemofinternalcontrolisnotyetmatured.AuditCommitteemaderecommendationstomanagementregardingtheimprovementofthesystemof internalcontrols.However,managementdidnot inall instances implement theafore-mentionedrecommendations.

TheCFOwasputonprecautionarysuspensionandDirector-FinancialAccountingwasappointedtoactasCFO.Consultantswere appointed to assist with the preparation of annual financial statements and auditreadinessduetocapacityrelatedmattersintheOfficeoftheCFO.

91


EffectivenessofInternalAuditActivity(IAA)

TheIAAinconsultationwithAuditCommitteereviewedinternalauditcharter,auditcommitteetermsofreference,internal audit methodology and risk based internal audit annual coverage plan and rolling 3-year strategic plan. Theauditcommitteeapprovedall internalauditpolicies,suchasInternalAuditMethodology, InternalAuditCharter(IAC)andarollingthreeyearstrategicandriskbasedinternalauditannualcoverageplans.

The risk based internal audit annual coverage plan was comprehensively implemented and additional work emanated from top management and audit committee resolutions was also completed. Types of audits conductedduring theyearunder reviewentailed riskbasedaudits, followuponmanagementof reportedfindings(followupauditreviews),Legislativeaudits,consultingactivities(requestfrommanagementandauditcommitteeandcyclicalaudits(auditsperformedonaquarterlybasisonPerformanceInformationandInterimFinancialStatements).Thesearedetailedintheinternalauditannualreportfor2016/17financialyear.

Although theplanwas fully implemented, internal audit activityexperiencedstaff shortages.TheOfficeofthe HOD intervened by sourcing out the services of experienced internal audit leaners who were registered with IIA.The IAA fulfilled itssecretariatduties to theauditcommitteeandensured thatmeetingswere runsmoothly.

Thedepartmentobtainedaratingscoreof4onMPATresultsonassessmentofaccountabilitymechanisms(Audit Committee and internal audit arrangements). Internal Audit Services obtained positive results onevaluationbyAuditCommitteeandTransversalInternalAuditServicesandNationalTreasurythroughfinancialmanagement capability model.

TheInternalAuditcompliedwiththeInternationalStandardsfortheProfessionalPracticeofInternalAuditorsissuedby Instituteof InternalAuditors(IIA). IAAperformed itswork independentlywithno interferencebymanagement.SomeoftheInternalAuditorscompletedtheLearnershipprogrammers(InternalAuditTechnicianandGeneralInternalAuditor)andweresuccessfulontheirassessmentsbyIIASA.AllinternalauditorsaremembersoftheIIASA

Risk management processes

TheHeadofDepartmentestablishedRiskManagementandEthicsCommittee(REMC)toexercisecertainresponsibilities,amongstothers:

• Ensure that the annual risk assessment is timeously performed

• Review the risk strategies

• Monitorthedevelopment,implementationandrevisionofthefraudpreventionstrategy

• Monitor and review the fraud cases reported and recommend for referral where necessary.

TheRiskManagement andEthicsCommitteewas appointed byHead ofDepartment during the financialyear.

ThecommitteeischairedbyanexternalchairpersonwhobringsalotofvaluableexperienceinGovernancerelated matters and all programmer managers are appointed as risk management committee members as they are designated risk owners.

92


TheAuditCommitteeandtheRiskManagementandEthicsCommitteereviewedriskmanagementprocesses.Allpolicyrelateddocumentsonriskandethicsmanagementwereapproved,suchas,riskmanagementstrategy&policy,fraudpreventionandethicspolicies,riskmanagementandfraudpreventionimplementationplan.

The Head of Department committed management of the Department to comply with all relevant corporate governance processes. Riskmanagement and InternalAudit of the department reports at an appropriatelevel (administratively report to theHeadofDepartmentand functionally to theAuditCommitteeandRiskManagementandEthicsCommittee).

TheriskmanagementunithasbeenassessedthroughMPATbyNationalDepartment:Planning,MonitoringandEvaluationandNationalTreasurythroughfinancialmanagementcapabilitymaturitymodel,andwasfoundtobeeffective.However,itwasnotedthattheriskmanagementunitwasnotfullycapacitated.

Anti-fraud and Corruption

DuringtheyearunderreviewtheAuditCommitteeendorsedfraudpreventionpolicyandstrategy,fraudriskmanagementimplementationplan,giftpolicy,investigationpolicyandconflictofinterestpolicy.

TheAuditCommittee has fulfilled its role of overseeing that incidents of fraud, corruption andnegligenceare given appropriate, and timely attention and followed up through conclusion. This was done throughinterrogationofreportssubmittedbyriskmanagement.TheAuditCommitteereviewedlegalmattersthatcouldhaveasignificantimpactontheDepartment’sfinancialstatementsbasedonreportssubmittedbytheDepartment’sLegalAdvisor.Thedepartmentisstillexperiencingchallengesregardingconsequencemanagement.

The fraud prevention sub-programme of risk management was assessed by department of Performance Management and Evaluation on the implementation of Fraud Prevention strategies and implementation of Ethics management programs and has received positive results, although it needs to improve on EthicsManagement processes.

InformationandCommunicationTechnology(ICT)

The department has an approved ITGovernanceFramework document and an approved ITGovernanceCharter.TheITGovernanceCommitteemeetingswereheldandwerechairedbyanexternal independentpersonandwereregularlyattendedbythechairoftheAuditCommitteeandprioritiesalignedwiththeDPSAICTGovernanceFrameworkhavebeenputinplace.

The department developed and approved a five-year ICT strategy to align ICT operations and investmentspendingtostrategicgoalsofthedepartment.TheICTpoliciesincludingICTsecuritypolicywereapprovedandawarenesssessionsconductedintheregionaloffices.

The department established aDisaster recovery site inEast London and procuredStorageArea network(SAN)InfrastructureforboththeProductionsiteinBhishoandthedisasterrecoverysite.

TheStorageAreaInfrastructurewasprocuredinordertoreplaceobsoleteserversandconsolidateserversinoneinfrastructure.Inabidtoimproveinternalcommunicationwithinthedepartmentincludingregionaloffices,theICTunitdevelopedanIntranetandenhancedthedepartmentalwebsite.

93


Thedepartment is in the initialstagesofdevelopingaBusinessContinuityPlan (BCP) thatwill inform theDisasterRecoveryPlan(DRP).TheITgeneralcontrolenvironmenthasimprovedasmorerisksareashavebeen identified througha riskassessmentexerciseand risks identifiedaremanagedandmonitored. Thechallenge of IT staff capacity has not been resolved.

ICTunitperformancewasassessedusingtheManagementPerformanceAssessmentTool(MPAT)isandtheoverallscoreimprovedto3.ThedepartmentappointedChiefInformationOfficer(CIO)toensurethatICTrisksareproperlymanagedandmonitored.TherewasnoticeableimprovementintheareaofICT.

The quality of in-year management and quarterly report

The department reported financial and performance information on a quarterly basis toAudit Committee.The department is still facing challenges in terms of providing credible and complete reports to oversight and assuranceproviders.Thismatterwasescalatedtoexecutiveauthorityofthedepartment.TheMECandHODactedonmattersescalatedtothembyAuditCommittee.

Evaluationofannualreportandannualfinancialstatements

Theauditcommitteehavereviewedtheannualfinancialstatementsandannualperformancereportpreparedby thedepartment.Theauditcommitteerecommendedannualfinancialstatements tobeapprovedby theHead of Department on 30 May 2017.

Auditor General’s report

Wehavereviewedthedepartment’simplementationplanforauditissuesraisedinthepreviousyearandwewerenotsatisfiedthatthemattershavebeenadequatelyresolved.

TheAuditCommittee concursandaccepts the conclusionsof theAuditor-General on theannual financialstatementsandisoftheopinionthattheauditedannualfinancialstatementsbeacceptedandreadtogetherwiththereportoftheAuditor-General.

Mr. Singa NgqwalaChairpersonoftheAuditCommittee26 July 2017

4. PART D: HUMAN RESOURCE MANAGEMENT

95

96


4. PART D: HUMAN RESOURCE MANAGEMENT

4.1. Introduction

A. The status of human resources in the department

In line with the vision of Public Service on Human Resource Management “Human resource management in thePublicServicewillresultinadiverse,competentandwell-managedworkforce,capableofandcommittedtodeliveringhighqualityservicestothepeopleofSouthAfrica”adoptedin1997,thedepartmentacknowledgesthat one of the most compelling imperatives for human resource management in the workplace today is the alignmentofhumanresourceswiththestrategicandoperationalobjectivesoftheorganisation.

Inlinewiththisacknowledgement,thedepartmenthasmovedtoahumanresourceplanningwhichseekstogobeyondmerelyforecastingthenumberofemployeesrequiredtomeetstrategicobjectivesofthedepartment.

Sincethedepartmentdrawsitsskillsbasefromtheconstructionindustry,whichiscurrentlyexperiencingaboomphasenationallyduetovariousfactors,extrapressureexiststoattractandretaintherequiredskillsforthe department.

Inordertoensurethatthedepartment’shumanresourcesupplyrespondstothecurrentpolicydevelopmentsin thecountryandtodeliveron itsmandate, thedepartmenthas,uptodate,permanentlyappointed3124 employees.

B. Human resource priorities for the year under review and the impact of these.

• FillingofvacantfundedpostswithaspecialfocusonEmploymentEquitytargetsandscarceskills

• Effectiveandefficientimplementationofattractionandretentionpolicy.

• ObtainingsufficientbudgettofillcriticalpostsforMediumTermExpenditureFramework(MTEF)period.

• Embarking on Disability Disclosure campaign.

• Training of women in MMS on leadership skills in preparation to meet the minimum SMS level.

• CoachingandmentoringprogrammesforwomenatMiddleManagementServicelevel.

• ApprovingandrollingoutofHumanResourcepolicies.

• Embarking on the second phase of reviewal and development of HR policies.

• The rollout of Employment Performance Management Development System policy.

• The roll out of youth development through internship and TVET learnership program

• ImplementingSkillsAuditofemployeesinthedepartment

• ImplementingConsequenceManagementframework

• Development of strategies in conjunctionwithWellnessunit to addressemployee challenges, throughconsultation with line managers

C. Workforce planning and key strategies to attract and recruit a skilled and capable workforce.

The HR Plan serves as a strategic tool to guide human resource activities and implementation of strategic goals of the organisation. It is through the Human Resource Plan that the department is able to estimate and manage all kinds of essential human resources that the organisation will need.

97


There is currently a shortage of scarce and critical skills to support the department in achieving its goals. There arecertainincumbentswhodonothaveinherenteducationalqualificationsandthroughthebursarysystemthedepartmenthasbeenabletodeveloptherequiredskillsandappointtheincumbentsoncontractbasis.

ThedepartmenthasengagedanumberofcategorieswithintheEngineeringCouncilofSouthAfrica(ECSA)toassistemployeesintheOSDwhoarenotfullyqualifiedandregisteredtoachievetheirqualificationandregistration.

ThedepartmenthasalsoconductedaSkillsAuditofitsemployeesfromlevel9-15withanintentionofidentifyingskillsgap,makenecessaryinterventionsincludingtrainingandproperplacement.Thischallengeisgoingtobeaddressedbybursaryawardsandidentificationofpropertrainingthatwilltargetthoseemployeeswithoutrequiredqualificationsandcompetencies.

D. Employee performance management.

The linksbetween theorganisationalandemployeeperformanceare improvingbecause thedepartment’sstrategy is gradually being cascaded systematically to components. The year under review has been marked withthestrategicalignmentofallPerformanceAgreementsoftheSMSwiththatofHeadofDepartment.Thedepartmentconductedtrainingandawareness inregions includingHeadOfficeonEmployeePerformanceManagement. The purpose was to ensure that employees in the department understand the provisions of the policy.

Performance reviews are conducted by supervisors on a quarterly basis resulting in identification andcorrection of discrepancies and inconsistencies by the time annual reviews are conducted. The moderation ofassessmentsbythePMDSCommitteeensuresalignmentbetweenindividualevaluationsandtheAnnualPerformancePlanperformance,therebyensuringthatdeservingemployeesreceivepayprogressionandinsomecases,performancebonuses.

E. Employee wellness programmes.

Staff in the department generally suffer from high levels of stress especially in the support programmes due to increasing national and provincial demands to improve service delivery. The department has established a fully-fledged integratedEmployeeHealth andWellnessProgramme in linewith theProvincialWellnessPolicyandNationalguidelines.TheDirectoratewasassessedbytheDepartmentofPlanningMonitoringandEvaluation and was found to be fully compliant with all Wellness programs.

F. Highlight achievements and challenges faced by the department, as well as future human resource plans /goals.

F.1 Achievements

• The approval of the following HR policies:Termination PolicyBursary PolicyAttractionandretentionEmploymentEquitySafety and HealthSocial ResponsibilityWellness Management

98


AppointmenttoActUniformandProtectiveClothing

• HRM embarked on Disability Disclosure campaigns across the department

• HRMhastrained49MMSandAssistantManagersonathreeyearManagementDevelopmentProgramme.

• Department received an award as the best institution in the implementation of Internship and TVET learnershipduringthe2016/17NationalSkillsConference.

• Departmentobtainedapprovaloftheorganisationalstructure,with01September2016astheimplementationdate of the structure.

• Department have structured engagement through Labour Management Forum and have managed to have labour peace in the organisation.

F.2 Challenges

• The department is still in the process of implementation of the structure with person to post matching still being a challenge due to a number of permanent employees appointed additional to establishment.

• The department still has a challenge of recruiting scarce skills when the posts are advertised. The department has since embarked on a head hunting process through advertising agencies.

• ThebudgetallocatedforCompensationofEmployees(COE)isunabletomeetthepriorityhumanresourceneeds,asaresult,aprioritisationprocesshasbeenembarkedoninordertodeveloptheAnnualRecruitmentPlan.

99


HU

MA

N R

ESO

UR

CE

OVE

RSI

GH

T ST

ATIS

TIC

S4.

2

PER

SON

NEL

REL

ATED

EXP

END

ITU

RE

TAB

LE 4

.2.1

. Per

sonn

el e

xpen

ditu

re b

y pr

ogra

mm

e fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch 2

017

Prog

ram

me

Tota

l Vot

ed

Expe

nditu

re

(R’000)

Com

pens

atio

n of

Em

ploy

ees

Expe

nditu

re

(R’000)

Trai

ning

Ex

pend

iture

(R’000)

Prof

essi

onal

an

d Sp

ecia

l Se

rvic

es

(R’000)

Com

pens

atio

n of

Em

ploy

ees

as p

erce

nt

of T

otal

Ex

pend

iture

Aver

age

Com

pens

atio

n of

Em

ploy

ees

Cos

t per

Em

ploy

ee

(R’000)

Empl

oym

ent

Administration

5

70 1

12

359

047

00

62.98%

308

1 16

5Ex

pand

ed p

ublic

wor

ks

prog

ram

me

588

947

101

613

00

17.25%

701

448

Publ

ic w

orks

in

frast

ruct

ure

1 35

8 92

235

3 67

70

026.03%

311

1 13

6

Tran

spor

t inf

rast

ruct

ure

2

077

878

30

1 09

10

014.49%

240

1 25

4To

tal a

s on

Fin

anci

al

System

s(BAS)

4 5

95 8

59

1 11

5 42

83

781

024

.27%

223

5 00

3

100


TAB

LE 4

.2.2

. Per

sonn

el c

osts

by

sala

ry b

ands

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Sala

ry B

ands

Com

pens

atio

n of

Em

ploy

ees

Cos

t inc

ludi

ng

Transfers(R’000)

Perc

enta

ge o

f To

tal P

erso

nnel

C

ost f

or

Dep

artm

ent

Aver

age

Com

pens

atio

n C

ost p

er E

mpl

oyee

(R)

Tota

l Per

sonn

el

Cos

t for

D

epar

tmen

t in

clud

ing

Goo

ds

and

Serv

ices

(R’000)

Num

ber o

f Em

ploy

ees

Contract(Levels1-2)

19 2

1699.65%

600

509

19 2

8432

Contract(Levels13-16)

4 69

496.96%

1 56

4 77

54

842

3Contract(Levels3-5)

9 19

299.78%

3 06

3 96

19

212


56 2

3699.54%

464

761

56 4

9412


38 3

0297.64%

911

960

39 2

3042

ContractOther

54 1

4499.65%

34 6

1954

335

1564

Highlyskille

dproduction(Levels6-8)

350

103

97.41%

335

992

359

406

1042

Highlyskille

dsupervision(Levels9-12)

272

694

94.99%

692

118

290

573

394

Lowerskilled(Levels1-2)

50 7

1194.78%

126

148

53 5

0740

2Pe

riodi

cal R

emun

erat

ions

00.00%

013

485

Seniormanagem

ent(Levels13-16)

46 6

2295.57%

717

255

48 7

8465

Skille

d(Levels3-5)

241

782

96.50%

193

426

250

561

1250

TOTA

L1

143

698

96.6

9%22

8 60

21

182

859

5003

101


TAB

LE 4

.2.3

Sal

arie

s, O

vert

ime,

Hom

e O

wne

rs A

llow

ance

and

Med

ical

Ass

ista

nce

by p

rogr

amm

e fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch 2

017

Prog

ram

me

Sala

ries

Ove

rtim

eH

ome

Ow

ners

A

llow

ance

M

edic

al A

id

Sala

ries

(R’000)

Sala

ries

as %

of

Pers

onne

l C

ost

Am

ount

(R’000)

Ove

rtim

e as

% o

f Pe

rson

nel

Cos

t

Am

ount

(R’000)

HO

A as

% o

f Pe

rson

nel

Cos

ts

Am

ount

(R’000)

Med

ical

A

id a

s a

% o

f pe

rson

nel

cost

s

Tota

l Pe

rson

nel

Cos

t per

Sa

lary

B

and

(R’000)

Administration

257

804

75.4

5 63

31.

79

460

2.5

14 6

913.

837

7 33

8Ex

pand

ed p

ublic

wor

ks

prog

ram

me

82 7

3181

.296

0.1

1 38

21.

32

589

2.3

104

585

Publ

ic w

orks

infra

stru

ctur

e25

2 76

472

.815

60.

113

389

3.6

12 8

273.

436

7 91

2Tr

ansp

ort i

nfra

stru

ctur

e21

4 27

169

.276

70.

215

055

4.6

14 2

774.

433

3 02

4TO

TAL

807

570

73.3

6 65

10.

639

285

3.3

44 3

843.

71

182

859

*Note:

Em

ploy

ee c

osts

incl

udin

g so

me

good

s an

d se

rvic

es

TAB

LE 4

.2.4

- Sa

larie

s, O

vert

ime,

Hom

e O

wne

rs A

llow

ance

and

Med

ical

Aid

by

Sala

ry B

and

Sa

lary

Ban

dsSa

larie

s (R’000)

Sala

ries

as %

of

Pers

onne

l C

ost

Ove

rtim

e (R’000)

Ove

rtim

e as

% o

f Pe

rson

nel

Cos

t

HO

A (R’000)

HO

A as

% o

f Pe

rson

nel

Cos

t

Med

ical

A

ss.

(R’000)

Med

ical

A

ss.

as %

of

Pers

onne

l C

ost

Tota

l Pe

rson

nel

Cos

t per

Sa

lary

B

and

(R’000)

Contract(Levels1-2)

13 7

9198

210.

1-

--

-19

284


2 93

487

.9

-

-

50.

19

0.2

4 84


6 62

799

.7-

--

--

-9

212

Contract(Levels6-8)

39 0

3996

.587

71.

8-

--

-56

494


26 0

6495

.517

80.

4-

-62

0.2

39 2

30ContractOther

52 6

6998

.973

0.1

--

--

54 3

35H

ighl

y sk

illed

prod

uctio

n (Levels6-8)

247

757

68.9

2 87

21

13 7

203.

819

869

5.5

359

406

102


Sala

ry B

ands

Sala

ries

(R’000)

Sala

ries

as %

of

Pers

onne

l C

ost

Ove

rtim

e (R’000)

Ove

rtim

e as

% o

f Pe

rson

nel

Cos

t

HO

A (R’000)

HO

A as

% o

f Pe

rson

nel

Cos

t

Med

ical

A

ss.

(R’000)

Med

ical

A

ss.

as %

of

Pers

onne

l C

ost

Tota

l Pe

rson

nel

Cos

t per

Sa

lary

B

and

(R’000)

Hig

hly

skille

d su

perv

isio

n (Levels9-12)

190

340

70.9

1 29

20.

53

568

1.3

7 49

72.

728

7 07

1


34 9

7566

.314

50.

24

221

8.1

2 81

55.

253

507

Perio

dica

l Rem

uner

atio

ns

13

4Se

niormanagem

ent(Levels

13-16)

29 5

5478

.6-

- 57

00.

870

31.

448

784

Skille

d(Levels3-5)

163

820

65.4

1 19

40.

517

201

6.8

13 4

295.

225

0 56

1TO

TAL

807

570

73.3

6 65

10.

639

285

3.3

44 3

843.

71

182

859

4.3.

EM

PLO

YMEN

T A

ND

VA

CA

NC

IES

TAB

LE 4

.3.1

. – E

mpl

oym

ent a

nd v

acan

cies

by

prog

ram

me

as o

n 31

Mar

ch 2

017

Prog

ram

me

Num

ber o

f Pos

ts

on a

ppro

ved

esta

blis

hmen

t

Num

ber o

f Pos

ts

Fille

dVa

canc

y R

ate

(Includ

esFrozen

Posts)

Num

ber o

f em

ploy

ees

addi

tiona

l to

the

esta

blis

hmen

tAd

ministration,permanent

1,676

1,101

34.3

144

8Expandedpublicworksprogram

me,permanent

1,784

1,427

20.0

11,309

Publicworksinfrastructure,permanent

1,734

1,136

34.4

920

7Transportinfrastructure,permanent

2,066

1,254

39.3

018

0TO

TAL

7,26

04,

918

32.2

62,144*n

ote

*Not

e To

tal a

dditi

onal

to e

stab

lishm

ent i

s m

ade

up o

f con

tract

em

ploy

ees

and

580

perm

anen

t em

ploy

ees

addi

tiona

l to

the

esta

blis

hmen

t as

a re

sult

of th

e ne

w s

truct

ure

103


TAB

LE 4

.3.2

Em

ploy

men

t and

vac

anci

es b

y sa

lary

ban

d as

on

31 M

arch

201

7

Sala

ry B

and

Num

ber o

f Pos

tsN

umbe

r of P

osts

Fi

lled

Vaca

ncy

Rat

e (In

clud

esFrozen

Posts)

Num

ber o

f Pos

ts

Fille

d A

dditi

onal

to

the

Esta

blis

hmen

t01Low

erSkilled(Levels1-2),P

ermanent

1,112

402

63.8

523

02Skilled(Levels3-5),P

ermanent

1,874

1,250

33.3

014

1

03HighlySkille

dProduction(Levels6-8),P

ermanent

1,750

1,042

40.4

615

3

04HighlySkille

dSu

pervision(Levels9-12),Pe

rmanent

681

394

42.1

468

05SeniorM

anagem

ent(Levels13-16),P

ermanent

7865

16.6

77

09Other,P

ermanent

1,564

1,564

01,564

10Contract(Levels1-2),Fixedterm

3232

032


33

03


121

121

011

6


4242

037


33

00

TOTA

L7,260*note

4,91

832

.26

2,14

4

* Not

e: T

he re

port

com

es a

t the

tim

e w

hen

the

depa

rtmen

t had

two

orga

nisa

tiona

l stru

ctur

es w

ithin

the

sam

e fin

anci

al p

erio

d.

TAB

LE 4

.3.3

– E

mpl

oym

ent a

nd v

acan

cies

by

criti

cal o

ccup

atio

ns a

s on

31

Mar

ch 2

017

Crit

ical

Occ

upat

ions

Num

ber o

f Pos

ts

on a

ppro

ved

esta

blis

hmen

t

Num

ber o

f Pos

ts

Fille

dVa

canc

y R

ate

Num

ber o

f Pos

ts

filledAdd

ition

alto

th

e Es

tabl

ishm

ent

Administrativerelated,Permanent

541

378

30.1

325

1Allartisansinthebuildingmetalmachineryetc.,

Perm

anen

t 63

145

927

.26

11

Appraisers-valuersandrelatedprofessionals,

Perm

anen

t 70

3944

.29

8

Architectstownandtrafficplanners,P

ermanent

3319

42.4

210

104


Crit

ical

Occ

upat

ions

Num

ber o

f Pos

ts

on a

ppro

ved

esta

blis

hmen

t

Num

ber o

f Pos

ts

Fille

dVa

canc

y R

ate

Num

ber o

f Pos

ts

filledAdd

ition

alto

th

e Es

tabl

ishm

ent

Artisanprojectandrelatedsuperintendents,P

ermanent

6030

508

Auxiliaryandrelatedworkers,P

ermanent

3011

63.3

34

Boilerandrelatedoperators,Permanent

44

00

Buildingandotherpropertycaretakers,Permanent

1917

10.5

35

Busandheavyvehicledrivers,Permanent

118

103

12.7

12

Cartographersandsurveyors,P

ermanent

81

87.5

00

Cartographicsurveyingandrelatedtechnicians,

Perm

anen

t 24

1441

.67

6

Cleanersinofficesworkshopshospitalsetc.,Pe

rmanent

268

124

53.7

326

Clientinformclerks(switchboard,receptionist,

informationclerks),Pe

rmanent

11

00

Com

municationandinformationrelated,Permanent

2212

45.4

53

Com

munitydevelopmentw

orkers,P

ermanent

11

00

Com

puterprogram

mers.,P

ermanent

11

00

Earthmovingandrelatedplantoperators,P

ermanent

4428

36.3

61

Engineeringsciencesrelated,Permanent

234

128

45.3

037

Engineersandrelatedprofessionals,Permanent

4022

456

Financeandeconom

icsrelated,Permanent

2515

407

Financialandrelatedprofessionals,Permanent

111

7631

.53

11Financialclerksandcreditcontrollers,P

ermanent

214

142

33.6

428

Firefightingandrelatedworkers,P

ermanent

22

00

HeadofDepartment/chiefexecutiveofficer,P

ermanent

51

800

Housekeeperslaundryandrelatedworkers,P

ermanent

22

00

Hum

an re

sour

ces

& or

gani

satio

nal d

evel

opm

ent &

relatedprofessionals,Permanent

9162

31.8

710

Hum

anresourcesclerks,P

ermanent

154

9637

.66

28Hum

anresourcesrelated,Permanent

121

6149

.59

10

105


Crit

ical

Occ

upat

ions

Num

ber o

f Pos

ts

on a

ppro

ved

esta

blis

hmen

t

Num

ber o

f Pos

ts

Fille

dVa

canc

y R

ate

Num

ber o

f Pos

ts

filledAdd

ition

alto

th

e Es

tabl

ishm

ent

Informationtechnologyrelated,Permanent

53

400

Inspectorsofapprenticesworksandvehicles,

Perm

anen

t 99

6435

.35

7

Languagepractitionersinterpreters&othercom

munity,

Perm

anen

t 1

10

1

Legalrelated,P

ermanent

22

00

Librarymailandrelatedclerks,P

ermanent

4120

51.2

24

Lightvehicledrivers,Permanent

5633

41.0

70

Logisticalsupportpersonnel,Pe

rmanent

254

118

53.5

431

Material-recordingandtransportclerks,Permanent

9261

33.7

018

Messengersportersanddeliverers,Permanent

389

76.3

24

MiningGeology&Geographical&relatedTechnicians,

perm

anen

t1

00

0

Motorvehicledrivers,Permanent

4118

56.1

02

Otheradm

inistration&relatedclerksandorganisers,

Perm

anen

t 33

421

934

.43

175

Otheradm

inistrativepolicyandrelatedofficers,

Perm

anen

t 71

5423

.94

9

Otherinformationtechnologypersonnel,P

ermanent

2812

57.1

45

Otheroccupations,P

ermanent

22

01

Printingmanagem

entandsupervisorypersonnel,

Perm

anen

t 7

70

1

Productionadvisers:factories,Permanent

229

217

5.24

37Q

uant

ity s

urve

yors

& re

late

d pr

ofes

sion

s no

t cla

ss

elsewhere,P

ermanent

5528

49.0

916

Regulatoryinspectors,P

ermanent

11

01

Riskmanagem

entandsecurityservices,Permanent

2119

9.52

6Roadsuperintendents,P

ermanent

2323

02

106


Crit

ical

Occ

upat

ions

Num

ber o

f Pos

ts

on a

ppro

ved

esta

blis

hmen

t

Num

ber o

f Pos

ts

Fille

dVa

canc

y R

ate

Num

ber o

f Pos

ts

filledAdd

ition

alto

th

e Es

tabl

ishm

ent

Roadtradeworkers.,Pe

rmanent

73

57.1

40

Roadworkers,P

ermanent

1,024

635

37.9

973

Safetyhealthandqualityinspectors,P

ermanent

94

55.5

61

Secretaries&otherkeyboardoperatingclerks,

Perm

anen

t 77

5331

.17

5

Securityguards,P

ermanent

2314

39.1

30

Securityofficers,Permanent

199

116

41.7

114

Seniormanagers,Permanent

5345

15.0

95

Tradelabourers,Permanent

1,038

740

28.7

170

9Tradequalitycontrollers,P

ermanent

11

01

Traderelated,Permanent

549

545.

000.

7354

4Waterplantandrelatedoperators,Permanent

22

00

WorkPlanners,permanent

30

00

TOTA

L7,

260

4,91

832

.26

2,14

4

4.4

FILL

ING

OF

SMS

POST

S

TAB

LE 4

.4.1

SM

S po

st in

form

atio

n as

on

31 M

arch

201

7

SM

S Le

vel

Tota

l num

ber o

f fu

nded

SM

S po

sts

Tota

l num

ber o

f SM

S po

stsfilled

%ofS

MSpo

stsfilled

Tota

l num

ber o

f SM

S po

sts

vaca

nt%

of S

MS

post

s va

cant

Sala

ry le

vel 1

62

210

0%0

0

Sala

ry le

vel 1

53

310

0%0

0

Sala

ry L

evel

14

1310

77%

323

%

Sala

ry L

evel

13

6657

86%

914

%

107


TAB

LE 4

.4.2

SM

S po

st in

form

atio

n as

on

30 S

epte

mbe

r 201

6

SMS

Leve

l To

tal n

umbe

r of

fund

ed S

MS

post

sTo

tal n

umbe

r of S

MS

postsfilled

%ofS

MSpo

stsfilled

Tota

l num

ber o

f SM

S po

sts

vaca

nt%

of S

MS

post

s va

cant

Sala

ry le

vel 1

62

2100%

00

Sala

ry le

vel 1

53

3100%

00

Sala

ry L

evel

14

1310

77%

323%

Sala

ry L

evel

13

6656

85%

1015%

TAB

LE 4

.4.3

Adv

ertis

ing

and

fillin

g of

SM

S po

sts

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

SMS

Leve

l A

dver

tisin

gFi

lling

of P

osts

N

umbe

r of v

acan

cies

pe

r lev

el a

dver

tised

in

6 m

onth

s of

bec

omin

g va

cant

Num

ber o

f vac

anci

es p

er

levelfilledin6mon

thsof

beco

min

g va

cant

Num

ber o

f vac

anci

es p

er

levelnotfilledin6mon

ths

butfi

lledin12mon

ths

Dire

ctor

-gen

eral

/ Hea

d of

Dep

artm

ent

00

0Sa

lary

leve

l 16

00

0Sa

lary

leve

l 15

00

0Sa

lary

Lev

el 1

41

01

Sala

ry L

evel

13

10

1TO

TAL

20

2

Tabl

e 4.

4.4

reas

ons

for n

ot h

avin

g co

mpl

ied

with

the

fillin

g of

fund

ed v

acan

t SM

S- A

dver

tised

with

in tw

elve

mon

ths

and

fille

d w

ithin

12

mon

ths

afte

r be

com

ing

vaca

nt fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch 2

017

Rea

sons

for v

acan

cies

not

adv

ertis

ed w

ithin

twel

ve m

onth

sM

orat

oriu

m o

n ap

poin

tmen

t with

in th

e pr

ovin

ce d

ue to

bud

get c

onst

rain

ts•Nosuitablecandidatesforscarceskillscategoryposts

• Reasonsfo

rvacanciesnotfilledwith

intw

elvemon

ths

Mor

ator

ium

on

appo

intm

ent w

ithin

the

prov

ince

due

to b

udge

t con

stra

ints

•Nosuitablecandidatesforscarceskillscategoryposts

•

108


Tabl

e 4.

4.5

Dis

cipl

inar

y st

eps

take

n fo

r no

t com

plyi

ng w

ith th

e pr

escr

ibed

tim

efra

mes

for

fillin

g SM

S po

sts

with

in 1

2 m

onth

s fo

r th

e pe

riod

1 A

pril

2016

and

31

Mar

ch 2

017

Rea

sons

for v

acan

cies

not

adv

ertis

ed w

ithin

six

mon

ths

Nodisciplinarystepshavebeentakenduetomoratoriumonappointmentw

ithintheprovinceduetobudgetconstraints

• Rea

sons

for v

acan

cies

not

adv

ertis

ed w

ithin

six

mon

ths

Mor

ator

ium

on

appo

intm

ent w

ithin

the

prov

ince

due

to b

udge

t con

stra

ints

• 4.5.

JO

B E

VALU

ATIO

N

TAB

LE 4

.5.1

Job

Eva

luat

ion

by S

alar

y ba

nd fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch 2

017

Sala

ry B

and

Num

ber o

f Po

sts

on

appr

oved

es

tabl

ishm

ent

Num

ber

of J

obs

Eval

uate

d

% o

f Pos

ts

Eval

uate

dPo

sts

Upg

rade

dPo

sts

Dow

ngra

ded

Num

ber

% o

f U

pgra

ded

Post

s Ev

alua

ted

Num

ber

% o

f D

owng

rade

d Po

sts

01Low

erSkilled(Levels1-2)

1112

169

15.2

00

00

002Skilled(Levels3-5)

1874

467

24.9

20

00

003

Hig

hly

Skille

d Pr

oduc

tion

(Levels6-8)

1750

573.

260

00

0

04 H

ighl

y Sk

illed

Supe

rvis

ion

(Levels9-12)

681

172.

502

11.7

60

0

05 S

enio

r Man

agem

ent S

ervi

ce

BandA

611

1.64

00

00

06 S

enio

r Man

agem

ent S

ervi

ce

Band

B14

00

00

00

07 S

enio

r Man

agem

ent S

ervi

ce

BandC

20

00

00

0

08 S

enio

r Man

agem

ent S

ervi

ce

Band

D1

00

00

00

09 O

ther

1564

00

00

00


320

00

00

0

109


Sala

ry B

and

Num

ber o

f Po

sts

on

appr

oved

es

tabl

ishm

ent

Num

ber

of J

obs

Eval

uate

d

% o

f Pos

ts

Eval

uate

dPo

sts

Upg

rade

dPo

sts

Dow

ngra

ded

Num

ber

% o

f U

pgra

ded

Post

s Ev

alua

ted

Num

ber

% o

f D

owng

rade

d Po

sts


30

00

00


121

00

00

00


420

00

00

014ContractBandA

20

00

00

017ContractBandD

10

00

00

0TO

TAL

7260

711

9.79

20.

280

0

TAB

LE 4

.5.2

Pro

file

of e

mpl

oyee

s w

hose

sal

ary

posi

tions

wer

e up

grad

ed d

ue to

thei

r pos

ts b

eing

upg

rade

d fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch

2017 Gen

der

Afr

ican

Asi

anC

olou

red

Whi

teTo

tal

Fem

ale

00

00

0M

ale

00

00

0TO

TAL

00

00

0

Empl

oyee

s w

ith a

Dis

abilit

y0

00

00

TAB

LE 4

.5.3

– E

mpl

oyee

s w

ith s

alar

y le

vels

hig

her t

han

thos

e de

term

ined

by

job

eval

uatio

n by

occ

upat

ion

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

20

17 Occ

upat

ion

Num

ber o

f em

ploy

ees

Job

eval

uatio

n le

vel

Rem

uner

atio

n le

vel

Rea

son

for d

evia

tion

N/A

00

0N/A

N/A

00

0N/A

Totalnum

berofemployeeswhosesalariesexceededtheleveldeterminedbyjobevaluation

N/A

Perc

enta

ge o

f tot

al e

mpl

oyed

N/A

00

N/A

110


TAB

LE 4

.5.4

Pro

file

of e

mpl

oyee

s w

ho h

ave

sala

ry le

vels

hig

her

than

thos

e de

term

ined

by

job

eval

uatio

n fo

r th

e pe

riod

1 A

pril

2016

and

31

Mar

ch

2017 Gen

der

Afr

ican

Asi

anC

olou

red

Whi

teTo

tal

Fem

ale

10

00

1M

ale

10

00

1TO

TAL

20

00

2

Empl

oyee

s w

ith a

Dis

abilit

y0

00

00

4.6

EMPL

OYM

ENT

CH

AN

GES

Tabl

e 4.

6.1

Ann

ual t

urno

ver r

ates

by

sala

ry b

and

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Sala

ry B

and

Num

ber o

f em

ploy

ees

at b

egin

ning

of p

erio

d 01

Apr

il 20

16

App

oint

men

ts a

nd

tran

sfer

s in

to th

e de

part

men

t

Term

inat

ions

and

tr

ansf

ers

out o

f the

de

part

men

t

Turn

over

Rat

e

01Low

erSkilled(Levels1-2)P

ermanent

662

567

1.06

02Skilled(Levels3-5)P

ermanent

1209

1596

7.94

03HighlySkille

dProduction(Levels6-8)P

ermanent

1009

145

4.46

04HighlySkille

dSu

pervision(Levels9-12)

Perm

anen

t36

210

287.

73

05SeniorM

anagem

entS

erviceBandAPe

rmanent

390

00

06 S

enio

r Man

agem

ent S

ervi

ce B

and

B Pe

rman

ent

110

19.

09

07SeniorM

anagem

entS

erviceBandCPermanent

30

00

08 S

enio

r Man

agem

ent S

ervi

ce B

and

D P

erm

anen

t1

00

009

Oth

er P

erm

anen

t15

4979

976

949

.64

10Contract(Levels1-2)fixed-term

171

012

573

.10


580

5493

.10


205

2682

40.0


751

2837

.33

111


Sala

ry B

and

Num

ber o

f em

ploy

ees

at b

egin

ning

of p

erio

d 01

Apr

il 20

16

App

oint

men

ts a

nd

tran

sfer

s in

to th

e de

part

men

t

Term

inat

ions

and

tr

ansf

ers

out o

f the

de

part

men

t

Turn

over

Rat

e

14ContractBandAfixed-term

50

480

.00

15ContractBandBfixed-term

20

150

.00

17ContractBandDfixed-term

10

00

TOTA

L53

6290

812

4023.13*notes

*notesthehighstaffturnoveriscausedbyinternsandcontractsthatcam

eintoendindifferentenddatesduringthefinancialyear.

TAB

LE 4

.6.2

Ann

ual t

urno

ver r

ates

by

criti

cal o

ccup

atio

n fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch 2

017

Crit

ical

occ

upat

ion

Num

ber o

f em

ploy

ees

at b

egin

ning

of p

erio

d A

pril

2016

App

oint

men

ts a

nd

tran

sfer

s in

to th

e de

part

men

t

Term

inat

ions

and

tr

ansf

ers

out o

f the

de

part

men

t

Turn

over

Rat

e

Administrativerelatedpermanent

409

160

409.

78Allartisansinthebuildingmetalmachineryetc.

Perm

anen

t46

914

398.

32

Appraisers-valuersandrelatedprofessionals,

perm

anen

t41

02

4.88

Architectstownandtrafficplanners,permanent

223

418

.18

Artisanprojectandrelatedsuperintendents,

perm

anen

t32

01

3.13

Auxiliaryandrelatedworkers,permanent

110

00

Boilerandrelatedoperators,permanent

40

00

Buildingandotherpropertycaretakers,permanent

190

210

.53

Busandheavyvehicledrivers,permanent

109

05

4.59

Cartographersandsurveyors,permanent

10

00

Cartographicsurveyingandrelatedtechnicians,

perm

anen

t14

00

0

Charteredaccountantspermanent

10

110

0

112


Crit

ical

occ

upat

ion

Num

ber o

f em

ploy

ees

at b

egin

ning

of p

erio

d A

pril

2016

App

oint

men

ts a

nd

tran

sfer

s in

to th

e de

part

men

t

Term

inat

ions

and

tr

ansf

ers

out o

f the

de

part

men

t

Turn

over

Rat

e

Cleanersinofficesworkshopshospitalsetc.

Perm

anen

t19

20

6332

.81

Clientinformationclerks(switchboard,reception

informationclerks)permanent

10

00

Com

municationandinformationrelated,permanent

120

00

Com

munitydevelopmentw

orkers,permanent

10

00

Com

puterprogram

mers.Permanent

10

00

Earth

mov

ing

and

rela

ted

plan

t ope

rato

rs p

erm

anen

t27

20

0En

gine

erin

g sc

ienc

es re

late

d pe

rman

ent

136

27

5.15

Engi

neer

s an

d re

late

d pr

ofes

sion

als

perm

anen

t23

01

4.35

Fina

nce

and

econ

omic

s re

late

d pe

rman

ent

190

421

.05

Fina

ncia

l and

rela

ted

prof

essi

onal

s pe

rman

ent

115

040

34.7

8Fi

nanc

ial c

lerk

s an

d cr

edit

cont

rolle

rs p

erm

anen

t15

02

74.

67Firefightingandrelatedworkerspermanent

20

00

Headofdepartment/chiefexecutiveofficerpermanent

10

00

Hou

seke

eper

s la

undr

y an

d re

late

d w

orke

rs

perm

anen

t2

00

0

Hum

an re

sour

ces

& or

gani

satio

nal d

evel

opm

ent &

relatedprofessionals,permanent

656

710

.77

Hum

an re

sour

ces

cler

ks p

erm

anen

t11

60

1916

.38

Hum

an re

sour

ces

rela

ted

perm

anen

t66

18

12.1

2In

form

atio

n te

chno

logy

rela

ted

perm

anen

t3

00

0In

spec

tors

of a

ppre

ntic

es w

orks

and

veh

icle

s pe

rman

ent

733

810

.96

Lang

uage

pra

ctiti

oner

s in

terp

rete

rs &

oth

er

communication,permanent

10

00

Lega

l rel

ated

per

man

ent

20

00

Libr

ary

mai

l and

rela

ted

cler

ks p

erm

anen

t20

00

0

113


Crit

ical

occ

upat

ion

Num

ber o

f em

ploy

ees

at b

egin

ning

of p

erio

d A

pril

2016

App

oint

men

ts a

nd

tran

sfer

s in

to th

e de

part

men

t

Term

inat

ions

and

tr

ansf

ers

out o

f the

de

part

men

t

Turn

over

Rat

e

Ligh

t veh

icle

driv

ers

perm

anen

t40

06

15Lo

gist

ical

sup

port

pers

onne

l per

man

ent

153

035

22.8

8M

ater

ial-r

ecor

ding

and

tran

spor

t cle

rks

perm

anen

t58

01

1.72

Mes

seng

ers

porte

rs a

nd d

eliv

erer

s pe

rman

ent

90

00

Mot

or v

ehic

le d

river

s pe

rman

ent

310

1341

.94

Oth

er a

dmin

istra

tion

& re

late

d cl

erks

and

org

anis

ers

perm

anen

t31

679

9530

.06

Otheradm

inistrativepolicyandrelatedofficers

perm

anen

t58

01

1.72

Oth

er in

form

atio

n te

chno

logy

per

sonn

el. P

erm

anen

t12

00

0O

ther

occ

upat

ions

per

man

ent

11

00

Prin

ting

man

agem

ent a

nd s

uper

viso

ry p

erso

nnel

pe

rman

ent

80

112

.50

Prod

uctio

n ad

vise

rs :

fact

orie

s pe

rman

ent

246

030

12.2

0Q

uant

ity s

urve

yors

& re

late

d pr

ofes

sion

als

not c

lass

el

sew

here

per

man

ent

370

410

.81

Reg

ulat

ory

insp

ecto

rs p

erm

anen

t1

00

0R

isk

man

agem

ent a

nd s

ecur

ity s

ervi

ces

perm

anen

t21

02

9.52

Roa

d su

perin

tend

ents

per

man

ent

260

311

.54

Roa

d tra

de w

orke

rs. P

erm

anen

t9

06

66.6

7R

oad

wor

kers

per

man

ent

713

5583

11.6

4Sa

fetyhealthandqualityinspectorspermanent

40

00

Secr

etar

ies

& ot

her k

eybo

ard

oper

atin

g cl

erks

pe

rman

ent

531

11.

89

Secu

rity

guar

ds p

erm

anen

t14

00

0.00

Securityofficerspermanent

121

05

4.13

Seni

or m

anag

ers

perm

anen

t47

05

10.6

4

114


Crit

ical

occ

upat

ion

Num

ber o

f em

ploy

ees

at b

egin

ning

of p

erio

d A

pril

2016

App

oint

men

ts a

nd

tran

sfer

s in

to th

e de

part

men

t

Term

inat

ions

and

tr

ansf

ers

out o

f the

de

part

men

t

Turn

over

Rat

e

Trad

e la

bour

ers

perm

anen

t91

219

839

743

.53

Tradequalitycontrollerspermanent

10

00

Trad

e re

late

d pe

rman

ent

310

381

294

94.8

4W

ater

pla

nt a

nd re

late

d op

erat

ors

perm

anen

t1

00

0TO

TAL

5362

908

1240

23.1

3

Tabl

e 4.

6.3

– R

easo

ns w

hy s

taff

left

the

depa

rtm

ent f

or th

e pe

riod

1 A

pril

2016

and

31

Mar

ch 2

017

Term

inat

ion

Type

Num

ber

Perc

enta

ge o

f Tot

al

Res

igna

tions

Perc

enta

ge o

f Tot

al

Empl

oym

ent

Tota

l Ter

min

ated

Tota

l Em

ploy

men

t

01Death,P

ermanent

383.

060.

7712

4049

1802Resignation,Permanent

165

13.3

13.

3612

4049

1803Expiryofcontract,P

ermanent

915

73.7

918

.61

1240

4918

06Dischargedduetoillhealth,P

ermanent

60.

480.

1212

4049

1807Dismissal-m

isconduct,Pe

rmanent

50.

400.

1012

4049

1809Retirement,Pe

rmanent

111

8.95

2.26

1240

4918

TOTA

L12

4010

025

.21

1240

4918

Tabl

e 4.

6.4

Prom

otio

ns b

y cr

itica

l occ

upat

ion

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Occ

upat

ion

Empl

oym

ent a

t B

egin

ning

of

Perio

d

Prom

otio

ns to

an

othe

r Sal

ary

Leve

l

Sala

ry L

evel

Pr

omot

ions

as

a %

of

Em

ploy

men

t

Prog

ress

ions

to

anot

her N

otch

w

ithin

Sal

ary

Leve

l

Not

ch

prog

ress

ions

as

a %

of E

mpl

oym

ent

Administrativerelated

409

30.

7377

18.8

3Allartisansinthebuildingmetalmachinery

etc.

469

00

283

60.3

4

Appraisers-valuersandrelated

prof

essi

onal

s41

00

2663

.41

Architectstownandtrafficplanners

220

04

18.1

8

115


Occ

upat

ion

Empl

oym

ent a

t B

egin

ning

of

Perio

d

Prom

otio

ns to

an

othe

r Sal

ary

Leve

l

Sala

ry L

evel

Pr

omot

ions

as

a %

of

Em

ploy

men

t

Prog

ress

ions

to

anot

her N

otch

w

ithin

Sal

ary

Leve

l

Not

ch

prog

ress

ions

as

a %

of E

mpl

oym

ent

Artisanprojectandrelatedsuperintendents

320

013

40.6

3Au

xiliaryandrelatedworkers

110

05

45.4

5Bo

iler a

nd re

late

d op

erat

ors

40

01

25.0

0Bu

ildin

g an

d ot

her p

rope

rty c

aret

aker

s19

00

1578

.95

Bus

and

heav

y ve

hicl

e dr

iver

s10

90

073

66.9

7Cartographersandsurveyors

10

01

100

Cartographicsurveyingandrelated

tech

nici

ans

140

03

21.4

3

Charteredaccountants

10

00

0Cleanersinofficesworkshopshospitalsetc.

192

00

7438

.54

Clientinformclerks(switchboardreception

informationclerks)

10

01

100

Com

municationandinformationrelated

120

01

8.33

Com

munitydevelopmentw

orkers

10

01

100

Com

puterprogram

mers.

10

01

100

Earth

mov

ing

and

rela

ted

plan

t ope

rato

rs27

00

1451

.85

Engi

neer

ing

scie

nces

rela

ted

136

00

5842

.65

Engi

neer

s an

d re

late

d pr

ofes

sion

als

230

012

52.1

7Fi

nanc

e an

d ec

onom

ics

rela

ted

190

012

63.1

6Fi

nanc

ial a

nd re

late

d pr

ofes

sion

als

115

10.

8747

40.8

7Fi

nanc

ial c

lerk

s an

d cr

edit

cont

rolle

rs15

00

078

52.0

0Firefightingandrelatedworkers

20

02

100

Headofdepartment/chiefexecutiveofficer

10

00

0H

ouse

keep

ers

laun

dry

and

rela

ted

wor

kers

20

02

100

Hum

an re

sour

ces

& or

gani

satio

nal

deve

lopm

ent &

rela

ted

prof

essi

onal

s65

00

3147

.69

Hum

an re

sour

ces

cler

ks11

60

050

43.1

0

116


Occ

upat

ion

Empl

oym

ent a

t B

egin

ning

of

Perio

d

Prom

otio

ns to

an

othe

r Sal

ary

Leve

l

Sala

ry L

evel

Pr

omot

ions

as

a %

of

Em

ploy

men

t

Prog

ress

ions

to

anot

her N

otch

w

ithin

Sal

ary

Leve

l

Not

ch

prog

ress

ions

as

a %

of E

mpl

oym

ent

Hum

an re

sour

ces

rela

ted

660

033

50In

form

atio

n te

chno

logy

rela

ted

30

00

0In

spec

tors

of a

ppre

ntic

es w

orks

and

ve

hicl

es73

11.

3724

32.8

8

Lang

uage

pra

ctiti

oner

s in

terp

rete

rs &

oth

er

com

mun

icat

ion

10

00

0

Lega

l rel

ated

20

00

0Li

brar

y m

ail a

nd re

late

d cl

erks

200

014

70Li

ght v

ehic

le d

river

s40

00

2152

.50

Logi

stic

al s

uppo

rt pe

rson

nel

153

00

5837

.91

Mat

eria

l-rec

ordi

ng a

nd tr

ansp

ort c

lerk

s58

00

4272

.41

Mes

seng

ers

porte

rs a

nd d

eliv

erer

s9

00

222

.22

Mot

or v

ehic

le d

river

s31

00

1135

.48

Oth

er a

dmin

istra

tion

& re

late

d cl

erks

and

or

gani

sers

316

--

112

35.4

4

Oth

er a

dmin

istra

tive

polic

y an

d re

late

d officers

58-

-24

41.3

8

Oth

er in

form

atio

n te

chno

logy

per

sonn

el.

12-

-5

41.6

7O

ther

occ

upat

ions

1-

-0

0Pr

intin

g m

anag

emen

t and

sup

ervi

sory

pe

rson

nel

8-

-8

100

Prod

uctio

n ad

vise

rs :

fact

orie

s24

6-

-16

868

.29

Qua

ntity

sur

veyo

rs &

rela

ted

prof

essi

ons

not c

lass

els

ewhe

re37

--

1027

.03

Reg

ulat

ory

insp

ecto

rs1

--

110

0R

isk

man

agem

ent a

nd s

ecur

ity s

ervi

ces

211

4.76

733

.33

Roa

d su

perin

tend

ents

26-

-18

69.2

3R

oad

trade

wor

kers

.9

--

222

.22

117


Occ

upat

ion

Empl

oym

ent a

t B

egin

ning

of

Perio

d

Prom

otio

ns to

an

othe

r Sal

ary

Leve

l

Sala

ry L

evel

Pr

omot

ions

as

a %

of

Em

ploy

men

t

Prog

ress

ions

to

anot

her N

otch

w

ithin

Sal

ary

Leve

l

Not

ch

prog

ress

ions

as

a %

of E

mpl

oym

ent

Roa

d w

orke

rs71

310

1.40

374

52.4

5Sa

fetyhealthandqualityinspectors

4-

-2

50Se

cret

arie

s &

othe

r key

boar

d op

erat

ing

cler

ks53

11.

8925

47.1

7

Secu

rity

guar

ds14

--

750

Securityofficers

121

--

8872

.73

Seni

or m

anag

ers

473

6.38

00

Trad

e la

bour

ers

912

--

161.

75Tradequalitycontrollers

1-

-1

100

Trad

e re

late

d31

0-

-20

365

.48

Wat

er p

lant

and

rela

ted

oper

ator

s1

--

110

0TO

TAL

5362

200.

3721

6240

.32

Tabl

e 4.

6.5

– Pr

omot

ions

by

sala

ry b

and

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Sala

ry B

and

Empl

oyee

s 1

Apr

il 20

16Pr

omot

ions

to

anot

her S

alar

y Le

vel

Sala

ry L

evel

Pr

omot

ions

as

a %

of

Em

ploy

men

t by

sala

ry le

vel

Prog

ress

ions

to

anot

her n

otch

w

ithin

sal

ary

leve

l

Not

ch

prog

ress

ions

as

a %

of e

mpl

oyee

s by

sa

lary

ban

ds01Low

erSkilled(Levels1-2),P

ermanent

662

00

8813

.29

02Skilled(Levels3-5),P

ermanent

1209

100.

8391

575

.68

03HighlySkille

dProduction(Levels6-8),

Perm

anen

t10

092

0.20

638

63.2

3

04HighlySkille

dSu

pervision(Levels9-12),

Perm

anen

t36

24

1.10

238

65.7

5

05SeniorM

anagem

ent(Levels13-16),

Perm

anen

t54

47.

4113

24.0

7

09Other,P

ermanent

1549

00

270

17.4

310Contract(Levels1-2),P

ermanent

171

00

00

118


Sala

ry B

and

Empl

oyee

s 1

Apr

il 20

16Pr

omot

ions

to

anot

her S

alar

y Le

vel

Sala

ry L

evel

Pr

omot

ions

as

a %

of

Em

ploy

men

t by

sala

ry le

vel

Prog

ress

ions

to

anot

her n

otch

w

ithin

sal

ary

leve

l

Not

ch

prog

ress

ions

as

a %

of e

mpl

oyee

s by

sa

lary

ban

ds11Contract(Levels3-5),P

ermanent

580

00


ermanent

205

00

00

13Contract(Levels9-12),Pe

rmanent

750

00


ermanent

80

00

0TO

TAL

5362

200.

3721

6240

.32

4.7.

EM

PLO

YMEN

T EQ

UIT

Y

ThetablesinthissectionarebasedontheformatsprescribedbytheEm

ploymentE

quityAct,55of1998.

Tabl

e 4.

7.1

Tota

l num

ber o

f em

ploy

ees

(incl

udin

g em

ploy

ees

with

dis

abili

ties)

in e

ach

of th

e fo

llow

ing

occu

patio

nal c

ateg

orie

s as

on

31 M

arch

201

7

Occ

upat

iona

l Cat

egor

yM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

01–Seniorofficialsand

Man

ager

s24

21

272

171

018

047

02 -

Prof

essi

onal

s21

211

222

521

187

32

192

644

403

– T

echn

icia

ns a

nd

Associateprofessionals

225

71

233

536

54

036

911

618

04-Clerks

197

51

203

336

011

237

313

592

05 –

Ser

vice

sho

p an

d m

arke

t sal

es w

orke

rs98

20

100

351

00

510

154

07–Craftandrelatedtrade

wor

kers

905

260

931

2338

410

039

41

1349

08 –

Pla

nt a

nd m

achi

ne

oper

ator

s as

sem

bler

s18

03

018

31

40

04

018

8

09 –

Lab

oure

rs a

nd re

late

d w

orke

rs97

512

098

72

536

10

537

015

26

119


Occ

upat

iona

l Cat

egor

yM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

TOTA

L28

1668

528

8960

1904

304

1938

3149

18Em

ploy

ees

with

dis

abilit

ies

440

044

220

00

202

68

Tabl

e 4.

7.2

Tota

l num

ber o

f em

ploy

ees

(incl

udin

g em

ploy

ees

with

dis

abili

ties)

in e

ach

of th

e fo

llow

ing

occu

patio

nal b

ands

as

on 3

1 M

arch

201

7

Occ

upat

iona

l ban

dM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

01TopManagem

ent,

Perm

anen

t1

00

10

20

02

03

02SeniorM

anagem

ent,

Perm

anen

t30

21

3312

151

016

162

03Professionallyqualified

and

expe

rienc

ed s

peci

alis

ts

andmid-managem

ent,

Perm

anen

t

218

172

237

2112

32

212

79

394

04 S

kille

d te

chni

cal

and

acad

emic

ally

qualifiedworkers,junior

managem

ent,supervisors,

foremen,P

ermanent

501

121

514

2147

315

249

017

1042

05 S

emi-s

kille

d an

d di

scre

tiona

ry d

ecis

ion

making,Permanent

1036

160

1052

419

21

019

31

1250

06Unskilledanddefined

decisionmaking,

Perm

anen

t23

40

023

40

167

10

168

040

2

07NotAvailable,

Perm

anen

t70

718

072

50

828

100

838

115

64

120


Occ

upat

iona

l ban

dM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

08Contract(Top

Managem

ent),Permanent

10

01

00

00

00

1

09Contract(S

enior

Managem

ent),Permanent

20

02

00

00

00

2

10Contract(P

rofessionally

Qualified),Pe

rmanent

151

016

223

00

231

42

11Contract(S

killed

Technical),Permanent

652

168

052

00

521

121

12Contract(S

emi-S

killed),

Perm

anen

t1

00

10

20

02

03

13Contract(U

nskilled),

Perm

anen

t5

00

50

270

027

032

TOTA

L28

1668

528

8960

1904

304

1938

3149

18

Tabl

e 4.

7.3

Rec

ruitm

ent f

or th

e pe

riod

1 A

pril

2016

and

31

Mar

ch 2

017

Occ

upat

iona

l Ban

dM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite


and

expe

rienc

ed s

peci

alis

ts

andmid-managem

ent,

Perm

anen

t

50

16

04

00

40

10

04 S

kille

d te

chni

cal

and

acad

emic

ally


managem

ent,supervisors,

foremen,P

ermanent

00

00

01

00

10

1

121


Occ

upat

iona

l Ban

dM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

05 S

emi-s

kille

d an

d di

scre

tiona

ry d

ecis

ion

making,Permanent

141

015

00

00

00

15


decisionmaking,

Perm

anen

t35

00

350

210

021

056

07NotAvailable,

Perm

anen

t32

57

033

20

462

40

466

179

9

10Contract(P

rofessionally

qualified),Pe

rmanent

00

00

01

00

10

1

11Contract(S

killed

technical),Permanent

160

016

010

00

100

26

TOTA

L39

58

140

40

499

40

503

190

8Em

ploy

ees

with

dis

abilit

ies

50

05

01

00

10

6

Tabl

e 4.

7.4

Prom

otio

ns fo

r the

per

iod

1 A

pril

2016

to 3

1 M

arch

201

7

Occ

upat

iona

l Ban

dM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

02SeniorM

anagem

ent,

Perm

anen

t11

00

114

20

02

017


and

expe

rienc

ed s

peci

alis

ts

andmid-managem

ent,

Perm

anen

t

127

100

137

1777

21

808

242

122


Occ

upat

iona

l Ban

dM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

04 S

kille

d te

chni

cal

and

acad

emic

ally


managem

ent,supervisors,

foremen,P

ermanent

331

111

343

1126

311

127

511

640

05 S

emi-s

kille

d an

d di

scre

tiona

ry d

ecis

ion

making,Permanent

806

120

818

310

40

010

40

925


decisionmaking,

Perm

anen

t42

00

420

451

046

088

07NotAvailable,

Perm

anen

t10

620

012

60

125

180

143

127

0

TOTA

L14

2353

114

7735

616

322

650

2021

82

Empl

oyee

s w

ith d

isab

ilitie

s20

00

200

30

03

225

Tabl

e 4.

7.5

– Te

rmin

atio

ns fo

r the

per

iod

1 A

pril

2016

to 3

1 M

arch

201

7

Occ

upat

iona

l Ban

dM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale

Col

ored

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

02SeniorM

anagem

ent,

Perm

anen

t0

00

00

10

01

01


and

expe

rienc

ed s

peci

alis

ts

andmid-managem

ent,

Perm

anen

t

220

022

15

00

50

28

123


Occ

upat

iona

l Ban

dM

ale

Fem

ale

Tota

lM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

To

tal

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale

Col

ored

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

04 S

kille

d te

chni

cal

and

acad

emic

ally


managem

ent,supervisors,

foremen,P

ermanent

322

034

37

00

71

45

05 S

emi-s

kille

d an

d di

scre

tiona

ry d

ecis

ion

making,Permanent

881

089

07

00

70

96


decisionmaking,Permanent

70

07

00

00

00

7

07NotAvailable,Permanent

378

220

400

034

919

036

81

769

09Contract(S

enior

Managem

ent),Permanent

30

03

20

00

00

5

10Contract(P

rofessionally

qualified),Pe

rmanent

80

08

020

00

200

28

11Contract(S

killed

technical),Permanent

310

031

150

00

500

82

12Contract(S

emi-skilled),

Perm

anen

t33

00

330

210

021

054

13Contract(U

nskilled),

Perm

anen

t58

00

580

670

067

012

5

TOTA

L66

025

068

57

527

190

546

212

40Em

ploy

ees

with

di

sabi

litie

s13

00

130

70

07

020

124


Tabl

e 4.

7.6

Dis

cipl

inar

y ac

tion

for t

he p

erio

d 1

Apr

il 20

16 to

31

Mar

ch 2

017

Dis

cipl

inar

y ac

tion

Mal

eFe

mal

eTo

tal

Afr

ican

Col

oure

dIn

dian

Whi

teA

fric

anC

olou

red

Indi

anW

hite

Dis

mis

sals

20

00

10

00

3Su

spen

sion

with

out p

ay11

00

04

00

015

Dem

otio

n0

00

00

00

00

Fina

l writ

ten

war

ning

290

00

190

00

48W

ritte

n w

arni

ng4

00

03

00

07

Verb

al w

arni

ng0

00

00

00

00

Casewithdraw

n0

00

00

00

00

DischargedSe

c.17(3)(i)(a)ofP

SA3

00

01

00

04

Res

igne

d w

hile

cas

e in

pro

cess

00

00

10

00

1Notguilty

10

00

10

00

2Pe

ndin

g ca

ses

240

00

90

00

33TO

TAL

280

00

120

00

40

Tabl

e 4.

7.7

– Sk

ills

deve

lopm

ent f

or th

e pe

riod

1 A

pril

2016

to 3

1 M

arch

201

7

Occ

upat

iona

l cat

egor

ies

Mal

eFe

mal

eTo

tal

Afr

ican

Col

oure

dIn

dian

Whi

teA

fric

anC

olou

red

Indi

anW

hite

Legislators,SeniorO

fficialsandManagers

260

00

854

23

120

Prof

essi

onal

s33

30

244

00

082

TechniciansandAssociateProfessionals

491

01

150

00

66Clerks

159

00

028

81

01

449

Serv

ice

and

Sale

s W

orke

rs10

00

018

10

029

Skille

dAg

ricultureandFisheryW

orkers

00

00

00

00

0CraftandrelatedTradesW

orkers

210

00

200

00

41PlantandMachineOperatorsandAssem

blers

120

00

00

00

12El

emen

tary

Occ

upat

ions

200

00

200

00

40

125


Occ

upat

iona

l cat

egor

ies

Mal

eFe

mal

eTo

tal

Afr

ican

Col

oure

dIn

dian

Whi

teA

fric

anC

olou

red

Indi

anW

hite

TOTA

L33

04

03

490

62

483

9Em

ploy

ees

with

dis

abilit

ies

00

00

10

00

0

4.8.

SI

GN

ING

OF

PER

FOR

MA

NC

E A

GR

EEM

ENTS

BY

SMS

MEM

BER

S

Tabl

e 4.

8.1.

Sig

ning

of P

erfo

rman

ce A

gree

men

ts b

y SM

S m

embe

rs a

s on

31

May

201

6

SMS

Leve

l To

tal n

umbe

r of f

unde

d SM

S po

sts

Tota

l num

ber o

f SM

S m

embe

rsTo

tal n

umbe

r of s

igne

d pe

rfor

man

ce a

gree

men

tsSi

gned

per

form

ance

ag

reem

ents

as

% o

f tot

al

num

ber o

f SM

S m

embe

rsD

irect

or-g

ener

al/ H

ead

of

Dep

artm

ent

11

1100%

Sala

ry le

vel 1

61

11

100%

Sala

ry le

vel 1

52

22

100%

Sala

ry L

evel

14

66

6100%

Sala

ry L

evel

13

4646

4496%

TOTA

L56

5654

96%

Tabl

e 4.

8.2

Rea

sons

for n

ot h

avin

g co

nclu

ded

Perf

orm

ance

agr

eem

ents

for a

ll SM

S m

embe

rs a

s on

31

Mar

ch 2

017

Rea

sons

TwoSM

Sofficialsw

ereonextendedleaveduringtheperiodofcontracting

Tabl

e 4.

8.3

Dis

cipl

inar

y st

eps

take

n ag

ains

t SM

S m

embe

rs fo

r not

hav

ing

conc

lude

d Pe

rfor

man

ce a

gree

men

ts a

s on

31

Mar

ch 2

017

Rea

sons

Nodisciplinarystepstakendueto4.8.2above

126


4.9.

PE

RFO

RM

AN

CE

REW

AR

DS

Tabl

e 4.

9.1

Perf

orm

ance

rew

ards

by

race

, gen

der,

and

disa

bilit

y fo

r the

per

iod

1 A

pril

2016

to 3

1 M

arch

201

7

Rac

e an

d G

ende

rBeneficiaryProfi

leC

ost

Num

ber o

f Beneficiaries

Tota

l num

ber o

f em

ploy

ees

in g

roup

% o

f tot

al w

ithin

gr

oup

Cost(R’000)

Aver

age

Cos

t per

em

ployee(R’000)

African,Fem

ale

238

1,884

12.6

33,433

14,427

African,M

ale

435

2,772

15.6

95,048

11,604

Asian,Fem

ale

24

5063

31,687

Asian,Male

05

00

0Coloured,Fem

ale

1330

43.3

322

417,299

Coloured,Male

1168

16.1

821

819,826

TotalBlacks,Fem

ale

253

1,918

13.1

938

0715,047

TotalBlacks,Male

446

2,845

15.6

853

1711,921

White,Fem

ale

1129

37.9

326

524,090

White,M

ale

1458

24.1

436

125,785

Empl

oyee

s w

ith a

dis

abilit

y 4

685.

8879

19,750

Tota

l72

84,918

14.8

09,829

13,501

Note:Themoderationprocesshasnotyetbeenfinalisedforthe2016/17financialyear

Tab

le 4

.9.2

Per

form

ance

Rew

ards

by

sala

ry b

ands

for p

erso

nnel

bel

ow S

enio

r Man

agem

ent S

ervi

ce fo

r the

per

iod

1 A

pril

2016

to 3

1 M

arch

201

7

Sala

ry B

ands

BeneficiaryProfi

leC

ost

Num

ber o

f beneficiarie

sN

umbe

r of e

mpl

oyee

s%

of t

otal

with

in

sala

ry b

ands

TotalC

ost(R’000)

Aver

age

cost

per

em

ployee(R’000)

01Low

erSkilled(Levels

1-2)

6440

215

.92

341

5,328

02Skilled(Levels3-5)

275

1,250

22.0

02,119

7,705

03 H

ighl

y Sk

illed

Prod

uctio

n (Levels6-8)

279

1,042

26.7

839

3914,118

127


Sala

ry B

ands

BeneficiaryProfi

leC

ost

Num

ber o

f beneficiarie

sN

umbe

r of e

mpl

oyee

s%

of t

otal

with

in

sala

ry b

ands

TotalC

ost(R’000)

Aver

age

cost

per

em

ployee(R’000)

)04HighlySkille

dSu

pervision(Levels9-12)

106

394

26.9

033

8731,953

09 O

ther

01,564

00


032

00


03.

000

00


012

10

00


042

00

0TO

TAL

724

4,85

014

.93

9,78

6.00

59.1

05N

ote:

The

mod

erat

ion

proc

ess

has

not y

et b

een

final

ised

for t

he 2

016/

17 fi

nanc

ial y

ear

Tabl

e 4.

9.3

– Pe

rfor

man

ce R

ewar

ds b

y cr

itica

l occ

upat

ions

for t

he p

erio

d 1

Apr

il 20

16 to

31

Mar

ch 2

017

Crit

ical

Occ

upat

ion

BeneficiaryProfi

leC

ost

Num

ber o

f beneficiarie

sN

umbe

r of e

mpl

oyee

s%

of t

otal

with

in

occu

patio

nTotalC

ost(R’000)

Aver

age

cost

per

em

ployee(R’000)

Administrativerelated

4837

812

.70

1,200.76

25,015

Allartisansinthebuilding

met

al m

achi

nery

etc

.86

459

18.7

465

5.96

7,627

Appraisers-valuersand

rela

ted

prof

essi

onal

s17

3943

.59

307.

5818,093

Architectstownandtraffic

plan

ners

319

15.7

997

.28

32,426

Artisanprojectandrelated

supe

rinte

nden

ts6

3020

123.

4520,575

Auxiliaryandrelated

wor

kers

311

27.2

727

.66

9,220

Boile

r and

rela

ted

oper

ator

s1

425

6.94

6,942

Build

ing

and

othe

r pro

perty

ca

reta

kers

717

41.1

865

.69

9,383

128


Crit

ical

Occ

upat

ion

BeneficiaryProfi

leC

ost

Num

ber o

f beneficiarie

sN

umbe

r of e

mpl

oyee

s%

of t

otal

with

in

occu

patio

nTotalC

ost(R’000)

Aver

age

cost

per

em

ployee(R’000)

Bus

and

heav

y ve

hicl

e dr

iver

s26

103

25.2

424

7.09

9,503

Cartographersand

surv

eyor

s0

10

00

Cartographicsurveyingand

rela

ted

tech

nici

ans

114

7.14

19.6

319,627

Cleanersinoffices

wor

ksho

ps h

ospi

tals

etc

.38

124

30.6

521

6.16

5,688

Clientinformclerks

(switchboardreception

informationclerks)

11

100

8.19

8,189

Com

municationand

info

rmat

ion

rela

ted

012

00

0

Com

munitydevelopment

wor

kers

11

100

34.7

734,768

Com

puterprogram

mers.

01

00

0Ea

rth m

ovin

g an

d re

late

d pl

ant o

pera

tors

028

00

0

Engi

neer

ing

scie

nces

re

late

d19

128

14.8

442

7.12

22,479

Engi

neer

s an

d re

late

d pr

ofes

sion

als

322

13.6

479

.58

26,526

Fina

nce

and

econ

omic

s re

late

d5

1533

.33

155.

5031,099

Fina

ncia

l and

rela

ted

prof

essi

onal

s21

7627

.63

454.

2921,632

Fina

ncia

l cle

rks

and

cred

it co

ntro

llers

2614

218

.31

335.

0212,885

Firefightingandrelated

wor

kers

02

00

0

129


Crit

ical

Occ

upat

ion

BeneficiaryProfi

leC

ost

Num

ber o

f beneficiarie

sN

umbe

r of e

mpl

oyee

s%

of t

otal

with

in

occu

patio

nTotalC

ost(R’000)

Aver

age

cost

per

em

ployee(R’000)

Hea

d of

dep

artm

ent/c

hief

executiveofficer

01

00

0

Hou

seke

eper

s la

undr

y an

d re

late

d w

orke

rs1

250

.00

7.15

7,152

Hum

an re

sour

ces

& or

gani

satio

nal d

evel

opm

ent

& re

late

d pr

ofes

sion

s20

6232

.26

290.

5714,528

Hum

an re

sour

ces

cler

ks19

9619

.79

251.

3813,230.53

Hum

an re

sour

ces

rela

ted

2161

34.4

354

726,047

Info

rmat

ion

tech

nolo

gy

rela

ted

13

33.3

390

.51

90,505

Insp

ecto

rs o

f app

rent

ices

w

orks

and

veh

icle

s10

6415

.63

201.

1920,118

Lang

uage

pra

ctiti

oner

s in

terp

rete

rs &

oth

er

com

mun

icat

ion

01

00

0

Lega

l rel

ated

12

50.0

016

.57

16,570

Libr

ary

mai

l and

rela

ted

cler

ks5

2025

55.8

911,178

Ligh

t veh

icle

driv

ers

733

21.2

159

.91

8,557

Logi

stic

al s

uppo

rt pe

rson

nel

2511

821

.19

362.

3314,493

Mat

eria

l-rec

ordi

ng a

nd

trans

port

cler

ks16

6126

.23

198.

5012,406

Mes

seng

ers

porte

rs a

nd

deliv

erer

s2

922

.22

15.1

07,550

Mot

or v

ehic

le d

river

s3

1816

.67

22.9

17,638

Oth

er a

dmin

istra

tion

& re

late

d cl

erks

and

or

gani

sers

1621

97.

3116

6.83

10,426

130


Crit

ical

Occ

upat

ion

BeneficiaryProfi

leC

ost

Num

ber o

f beneficiarie

sN

umbe

r of e

mpl

oyee

s%

of t

otal

with

in

occu

patio

nTotalC

ost(R’000)

Aver

age

cost

per

em

ployee(R’000)

Oth

er a

dmin

istra

tive

polic

y andrelatedofficers

2354

42.5

937

1.43

16,149

Oth

er in

form

atio

n te

chno

logy

per

sonn

el.

312

25.0

042

.09

14,030

Oth

er o

ccup

atio

ns0

20

00

Prin

ting

man

agem

ent a

nd

supe

rvis

ory

pers

onne

l5

771

.43

63.2

412,647

Prod

uctio

n ad

vise

rs :

fact

orie

s59

217

27.1

986

4.76

14,656

Qua

ntity

sur

veyo

rs &

re

latio

n pr

ofes

sion

s no

t cl

ass

else

whe

re2

287.

1445

.48

22,737

Reg

ulat

ory

insp

ecto

rs1

110

0.00

16.9

216,915

Ris

k m

anag

emen

t and

se

curit

y se

rvic

es5

1926

.32

107.

1921,437

Roa

d su

perin

tend

ents

723

30.4

387

.57

12,510

Roa

d tra

de w

orke

rs.

23

66.6

729

.17

14,582

Roa

d w

orke

rs11

663

518

.27

756.

306,519

Safetyhealthandquality

insp

ecto

rs3

475

35.3

111,769

Secr

etar

ies

& ot

her

keyb

oard

ope

ratin

g cl

erks

1753

32.0

825

4.14

14,949

Secu

rity

guar

ds2

1414

.29

10.2

95,147

Securityofficers

1411

612

.07

87.5

06,249

Seni

or m

anag

ers

145

2.22

31.8

031,803

Trad

e la

bour

ers

974

01.

2267

.85

7,539

Tradequalitycontrollers

01

00

0Tr

ade

rela

ted

054

50

00

131


Crit

ical

Occ

upat

ion

BeneficiaryProfi

leC

ost

Num

ber o

f beneficiarie

sN

umbe

r of e

mpl

oyee

s%

of t

otal

with

in

occu

patio

nTotalC

ost(R’000)

Aver

age

cost

per

em

ployee(R’000)

Wat

er p

lant

and

rela

ted

oper

ator

s0

20

00

Tota

l72

84,

918

14.8

09,

829

13,2

13

Tabl

e 4.

9.4

Perf

orm

ance

rela

ted

rew

ards

(cas

h bo

nus)

, by

sala

ry b

and,

for S

enio

r Man

agem

ent S

ervi

ce fo

r the

per

iod

1 A

pril

2016

to 3

1 M

arch

201

7

Sala

ry B

and

BeneficiaryProfi

leC

ost

Num

ber o

f beneficiarie

sN

umbe

r of

empl

oyee

s%

of t

otal

with

in

band

TotalC

ost(R’000)

Aver

age

cost

per

em

ploy

eeTo

tal c

ost a

s a

% o

f the

tota

l pe

rson

nel

expe

nditu

reBa

ndA

144

5.66

3131

803

39,373

Band

B

06

9.09

00

6,523

BandC

02

00

02,857

Band

D

02

00

03,836

TOTA

L1

545.

8831

3180

352

,589

Not

e: T

he m

oder

atio

n pr

oces

s ha

s no

t yet

bee

n fin

alis

ed fo

r the

201

6/17

fina

ncia

l yea

r

132


4.10

. FO

REI

GN

WO

RK

ERS

Tabl

e 4.

10.1

For

eign

Wor

ker b

y sa

lary

ban

d fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch 2

017

Sala

ry B

and

Empl

oym

ent

at B

egin

ning

of

Per

iod

Perc

enta

ge

of T

otal

Empl

oym

ent

at E

nd o

f Pe

riod

Perc

enta

ge

of T

otal

Cha

nge

in

Empl

oym

ent

Perc

enta

ge

of T

otal

Tota

l Em

ploy

men

t at

Beg

inni

ng

of P

erio

d

Tota

l Em

ploy

men

t at

End

of

Perio

d

Tota

l C

hang

e in

Em

ploy

men

t

Hig

hly

skille

d pr

oduc

tion

(Levels6-8)

112

.50

216

.67

125

812

4

Hig

hly

skille

d su

perv

isio

n (Levels9-12)

337

.50

866

.67

512

58

124

Oth

er1

12.5

00

00

00

00

TAB

LE 4

.10.

2 Fo

reig

n W

orke

r by

maj

or o

ccup

atio

n fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch 2

017

Maj

or

Occ

upat

ion

Empl

oym

ent

at B

egin

ning

of

Per

iod

Perc

enta

ge

of T

otal

Empl

oym

ent

at E

nd o

f Pe

riod

Perc

enta

ge

of T

otal

Cha

nge

in

Empl

oym

ent

Perc

enta

ge

of T

otal

Tota

l Em

ploy

men

t at

Beg

inni

ng

of P

erio

d

Tota

l Em

ploy

men

t at

End

of

Perio

d

Tota

l C

hang

e in

Em

ploy

men

t

Administrative

officeworkers

112

.50

216

.67

125

812

4

Oth

er

occu

patio

ns1

12.5

00

00

08

0-8

Prof

essi

onal

s an

d m

anag

ers

675

1083

.33

410

08

124

TOTA

L8

100

1210

04

100

812

4

133


4.11

. LEA

VE U

TILI

SATI

ON

TAB

LE 4

.11.

1 Si

ck le

ave

for t

he p

erio

d 1

Janu

ary

2016

to 3

1 D

ecem

ber 2

016

Sala

ry B

and

Tota

l Day

s%

Day

s w

ith

Med

ical

Certifi

catio

n

Num

ber o

f Em

ploy

ees

usin

g Si

ck

Leav

e

% o

f Tot

al

Empl

oyee

s us

ing

Sick

Le

ave

Aver

age

Day

s pe

r Em

ploy

ee

Estim

ated

Cost(R’000)

Tota

l nu

mbe

r of

Empl

oyee

s us

ing

Sick

Le

ave

Tota

l nu

mbe

r of

days

with

m

edic

al

certificatio

nContract(Levels1-2)

574

43.0

310

84.

015.

3124

026

9624


2290

.91

30.

117.

3399

2696


202

46.0

436

1.34

5.61

132

2696


821

40.2

215

15.

65.

4392

426

9633


205

45.8

542

1.56

4.88

358

2696

94ContractOther

1229

30.8

535

413

.13

3.47

284

2696

379

Highlyskille

dproduction(Levels

6-8)

7686

54.2

884

331

.27

9.12

9418

2696

4172

Hig

hly

skille

d su

perv

isio

n (Levels9-12)

2435

51.9

130

011

.13

8.12

5444

2696

1264


1493

60.2

120

17.

467.

4369

026

9689

9Se

niormanagem

ent(Levels

13-16)

295

52.5

439

1.45

7.56

1070

2696

155

Skille

d(Levels3-5)

5491

58.6

661

922

.96

8.87

3618

2696

3221

TOTA

L20

452

53.1

726

9610

07.

5922

276

2696

1087

4

TAB

LE 4

.11.

2 D

isab

ility

leav

e (te

mpo

rary

and

per

man

ent)

for t

he p

erio

d 1

Janu

ary

2016

to 3

1 D

ecem

ber 2

016

Sala

ry B

and

Tota

l Day

s%

Day

s w

ith

Med

ical

Certifi

catio

n

Num

ber o

f Em

ploy

ees

usin

g D

isab

ility

Le

ave

% o

f Tot

al

Empl

oyee

s us

ing

Dis

abili

ty

Leav

e

Aver

age

Day

s pe

r Em

ploy

ee

Estim

ated

Cost(R’000)

Tota

l nu

mbe

r of

days

with

m

edic

al

certificatio

n

Tota

l nu

mbe

r of

Empl

oyee

s us

ing

Dis

abili

ty

Leav

eContract(Levels1-2)

410

01

44

24

25

134


Sala

ry B

and

Tota

l Day

s%

Day

s w

ith

Med

ical

Certifi

catio

n

Num

ber o

f Em

ploy

ees

usin

g D

isab

ility

Le

ave

% o

f Tot

al

Empl

oyee

s us

ing

Dis

abili

ty

Leav

e

Aver

age

Day

s pe

r Em

ploy

ee

Estim

ated

Cost(R’000)

Tota

l nu

mbe

r of

days

with

m

edic

al

certificatio

n

Tota

l nu

mbe

r of

Empl

oyee

s us

ing

Dis

abili

ty

Leav


1710

03

125.

6718

1725

ContractOther

3810

01

438

938

25Highlyskille

dproduction(Levels

6-8)

671

100

728

95.8

691

767

125

Highlyskille

dsupervision(Levels

9-12)

269

100

520

53.8

803

269

25


310

01

43

13

25Skille

d(Levels3-5)

366

100

728

52.2

923

536

625

TOTA

L13

6810

025

100

54.7

219

8413

6825

TAB

LE 4

.11.

3 A

nnua

l Lea

ve fo

r the

per

iod

1 Ja

nuar

y 20

16 to

31

Dec

embe

r 201

6

Sala

ry B

and

Tota

l Day

s Ta

ken

Aver

age

Day

s pe

r Em

ploy

eeN

umbe

r of

Empl

oyee

s w

ho to

ok

leav


3268

19.5

716


8712

.43


1177

20.6

557

Contract(Levels6-8)

2971

13.8

221


1155

15.2

76ContractOther

1463

39.

715

08Highlyskille


2451

822

.27

1101

Highlyskille


9473

21.8

343

4Lowerskilled(Levels1-2)

6998

15.5

944

9Se

niormanagem

ent(Levels13-16)

1371

20.1

668

Skille

d(Levels3-5)

2972

922

.113

45TO

TAL

9538

017

.58

5427

135


TAB

LE 4

.11.

4 C

appe

d le

ave

for t

he p

erio

d 1

Janu

ary

2016

to 3

1 D

ecem

ber 2

016

Sala

ry B

and

Tota

l day

s of

ca

pped

leav

e ta

ken

Aver

age

num

ber o

f da

ys ta

ken

per

empl

oyee

Aver

age

capp

ed le

ave

per e

mpl

oyee

as

at e

nd o

f pe

riod

Num

ber o

f Em

ploy

ees

who

to

ok C

appe

d le

ave

Tota

l num

ber o

f ca

pped

leav

e av

aila

ble

at e

nd

of p

erio

d

Num

ber o

f Em

ploy

ees

as

at e

nd o

f per

iod

Highlyskille


8712

.43

117.

367

5069

8.97

432

Highlyskille


133.

2511

5.75

419

794.

117

1Lowerskilled(Levels1-2)

133.

2579

.31

447

58.5

60Se

niormanagem

ent(Levels13-16)

78.7

7

1732

.89

22Skille

d(Levels3-5)

504.

5596

.33

1177

064.

2780

0

TAB

LE 4

.11.

5 le

ave

payo

ut fo

r the

per

iod

1 Ja

nuar

y 20

16 to

31

Dec

embe

r 201

6

The

follo

win

g ta

ble

sum

mar

ises

pay

men

ts m

ade

to e

mpl

oyee

s as

a re

sult

of le

ave

that

was

not

take

n.

REA

SON

TotalA

mou

nt(R

’000)

Num

ber o

f Em

ploy

ees

Aver

age

paym

ent p

er

empl

oyee

(R’000)

Leav

e pa

yout

for 2

016/

17 d

ue to

non

-util

isat

ion

of le

ave

for t

he p

revi

ous

cycl

e49

023

412

255

Cappedleavepayoutsonterminationofservicefor2016/17

00

0Currentleavepayoutonterminationofservicefor2016/17

28 2

69 1

0644

863

100

TOTA

L 28

318

129

452

75 3

56

4.12

. HIV

AN

D A

IDS

& H

EALT

H P

RO

MO

TIO

N P

RO

GR

AM

MES

TAB

LE 4

.12.

1 St

eps

take

n to

redu

ce th

e ris

k of

occ

upat

iona

l exp

osur

e

Units/categoriesofemployeesidentifi

edto

beathighris

kof

contractingHIV&re

lateddiseases(ifany)

Key

ste

ps ta

ken

to re

duce

the

risk

Empl

oyee

s at

Dep

ots

HIVANDTBEd

ucation/aw

areness;Com

binedHCTtestingcampaigns;and

Hea

lth p

rom

otio

n ta

lks

cond

ucte

d.

136


TAB

LE 4

.12.

2 –

Det

ails

of H

ealth

Pro

mot

ion

and

HIV

and

AID

S Pr

ogra

mm

es (t

ick

the

appl

icab

le b

oxes

and

pro

vide

the

requ

ired

info

rmat

ion)

Que

stio

nYes

No

Details,ifyes

Has

the

depa

rtmen

t des

igna

ted

a m

embe

r of t

he S

MS

to

1. implem

enttheprovisionscontainedinPartV

IEofC

hapter1

ofthePu

blicServiceRegulations,2001?Ifso,provideher/his

nam

e an

d po

sitio

n.

√M

s. L

.F. M

atu

Dire

ctor

: Em

ploy

ee H

ealth

& W

elln

ess

Doe

s th

e de

partm

ent h

ave

a de

dica

ted

Uni

t or h

as it

des

igna

ted

2. specificstaffm

emberstopromotethehealthandwell-beingof

youremployees?Ifso,indicatethenumberofemployeeswho

are

invo

lved

in th

is ta

sk a

nd th

e an

nual

bud

get t

hat i

s av

aila

ble

for t

his

purp

ose.

√Tw

enty(20)officials,includingHeadOffice,InHouseConstructionand

Regionaloffices.

Budg

et:

R2

Milli

on

Hasthedepartm

entintroducedanEmployeeAssistanceor

3. HealthPromotionProgrammeforyouremployees?Ifso,

indi

cate

the

key

elem

ents

/ser

vice

s of

this

Pro

gram

me.

√

HIV&AIDSandTB

Managem

ent

•

Hea

lth &

Pro

duct

ivity

Man

agem

ent

•

Safety,H

ealth,E

nvironm

ent,Risk&QualityManagem

ent

•

Wel

lnes

s M

anag

emen

t•

Hasthedepartm

entestablished(a)com

mittee(s)as

4. contem

platedinPartV

IE.5(e)ofC

hapter1ofthePublic

ServiceRegulations,2001?Ifso,pleaseprovidethenamesof

themem

bersofthecom

mitteeandthestakeholder(s)thatthey

repr

esen

t.

√

Has

the

depa

rtmen

t rev

iew

ed it

s em

ploy

men

t pol

icie

s an

d 5.

pr

actic

es to

ens

ure

that

thes

e do

not

unf

airly

dis

crim

inat

e againstemployeesonthebasisoftheirH

IVstatus?Ifso,listthe

empl

oym

ent p

olic

ies/

prac

tices

so

revi

ewed

. √

HIV&AIDSandTB

Managem

entP

olicy

Has

the

depa

rtmen

t int

rodu

ced

mea

sure

s to

pro

tect

HIV

-6.

po

sitiv

e em

ploy

ees

or th

ose

perc

eive

d to

be

HIV

-pos

itive

from

discrim

ination?Ifso,listthekeyelem

entsofthesemeasures.

√

Educ

atio

n se

ssio

ns o

n st

igm

a an

d di

scrim

inat

ion

Roll-outoftheHIV&AIDSandTB

Managem

entP

olicy

Doe

s th

e de

partm

ent e

ncou

rage

its

empl

oyee

s to

und

ergo

7.

VoluntaryCounsellingandTesting?Ifso,listtheresultsthatyou

have

ach

ieve

d.√

AccordingtotheGEM

Sreport,212employeesareenrolledonART

Prog

ram

me.

Has

the

depa

rtmen

t dev

elop

ed m

easu

res/

indi

cato

rs to

mon

itor

8. &evaluatetheimpactofitsHealthPromotionProgramme?Ifso,

list t

hese

mea

sure

s/in

dica

tors

.√

Sick

leav

e an

alys

is

137


4.13

. LA

BO

UR

REL

ATIO

NS

The

follo

win

g co

llect

ive

agre

emen

ts w

ere

ente

red

into

with

trad

e un

ions

with

in th

e de

partm

ent.

TAB

LE 4

.13.

1 C

olle

ctiv

e ag

reem

ents

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Tota

l num

ber o

f col

lect

ive

agre

emen

ts-

•C

olle

ctiv

e A

gree

men

ts a

re s

igne

d na

tiona

lly a

nd im

plem

ente

d pr

ovin

cial

ly.

TAB

LE 4

.13.

2 –

Mis

cond

uct a

nd d

isci

plin

ary

hear

ings

fina

lised

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Out

com

es o

f dis

cipl

inar

y he

arin

gsN

umbe

rPe

rcen

tage

of T

otal

Tota

lNOOUTC

OME

2610

026

TOTA

L26

100

26

Out

com

es o

f dis

cipl

inar

y he

arin

gsN

umbe

r%

of t

otal

Correctionalcounselling

10.94%

Verb

al w

arni

ng1

0.94%

Writ

ten

war

ning

76.58%

Fina

l writ

ten

war

ning

4845.12%

Susp

ende

d w

ithou

t pay

15

14.1%

Fine

00%

Dem

otio

n0

0%Dismissal(Dischargeforoperationalrequirements)

32.82%

Tran

sfer

Out

00%

Casewithdraw

n0

0%R

esig

natio

ns1

0.94%

DischargedonSec.17(3)(i)(a)ofP

SA4

3.76%

Notguilty

21.88%

TOTA

L84

77.0

8%

138


Iftherewerenoagreements,keeptheheadingandreplacethetablewiththefollowing:

Totalnum

bero

fDisciplinaryhearingsfinalised

67%

TAB

LE 4

.13.

3 –

Type

s of

mis

cond

uct a

ddre

ssed

at d

isci

plin

ary

hear

ings

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Type

of m

isco

nduc

t N

umbe

r%

of t

otal

Abuseofsickleave

00%

Dis

hone

sty

1312.22%

Late

com

ing

00%

Assault

98.46%

Grossinsubordination

10.94%

Inso

lenc

e0

0%Intentionalornegligentdam

agetotheem

ployorclientoftheemployer,co-worker

1816.92%

Into

xica

tion

10.94%

Grossabsenteeism

1110.34%

Insu

bord

inat

ion

1110.34%

Abuseofgovernm

entvehicle

98.46%

Grossdishonesty

1312.22%

Der

elic

tion

of d

utie

s1

0.94%

Frau

d2

1.88%

Rem

unerativeWorkOutsidethePu

blicService(R

WOPS

)1

0.94%

Mis

repr

esen

tatio

n3

2.82%

Negligence

109.4%

AbuseofStateProperty

54.7%

Brin

ging

the

nam

e of

the

depa

rtmen

t int

o di

srep

ute

00%

Absenteeism

76.58%

Figh

t0

0%Th

eft

32.82%

139


Type

of m

isco

nduc

t N

umbe

r%

of t

otal

FailuretoadheretotheCodeofConduct

10.94%

Def

amat

ion

of c

hara

cter

10.94%

Irreg

ular

and

was

tefu

l exp

endi

ture

98.46%

TAB

LE 4

.13.

4 –

Grie

vanc

es lo

dged

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Num

ber o

f grie

vanc

es a

ddre

ssed

Num

ber

Perc

enta

ge o

f Tot

alTo

tal

Notresolved

18.0

064

.29

28.0

0R

esol

ved

10.0

035

.71

28.0

0TO

TAL

28.0

010

0.00

28.0

0

TAB

LE 4

.13.

5 –

Dis

pute

s lo

dged

with

Cou

ncils

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Num

ber

% o

f Tot

alNum

berofdisputespending

133.51%

Num

berofdisputesupheld

10.27%

Tota

l num

ber o

f dis

pute

s lo

dged

277.

29%

TAB

LE 4

.13.

6 –

Strik

e ac

tions

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Tota

l num

ber o

f per

son

wor

king

day

s lo

st0

Totalcost(R’000)ofw

orkingdayslost

0Am

ount(R

’000)recoveredasaresultofnoworknopay

0

TAB

LE 4

.13.

7 –

Prec

autio

nary

sus

pens

ions

for

the

perio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Num

berofpeoplesuspended

4Num

berofpeoplewhosesuspensionexceeded30days

4Averagenumberofdayssuspended

75Costofsuspensions(R

’000)

R 1

128

742

.39

140


TAB

LE 4

.13.

5 –

Dis

pute

s lo

dged

with

Cou

ncils

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Num

ber

% o

f Tot

alNum

berofdisputespending

133.51%

Num

berofdisputesupheld

10.27%

Tota

l num

ber o

f dis

pute

s lo

dged

277.

29%

TAB

LE 4

.13.

6 –

Strik

e ac

tions

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Tota

l num

ber o

f per

son

wor

king

day

s lo

st0

Totalcost(R’000)ofw

orkingdayslost

0Am

ount(R

’000)recoveredasaresultofnoworknopay

0

TAB

LE 4

.13.

7 –

Prec

autio

nary

sus

pens

ions

for

the

perio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Num

berofpeoplesuspended

4

Num

berofpeoplewhosesuspensionexceeded30days

4

Averagenumberofdayssuspended

75

Costofsuspensions(R

’000)

R 1

128

742

.39

141


4.14

. SK

ILLS

DEV

ELO

PMEN

T

Tabl

e 4.

14.1

Tra

inin

g ne

eds

iden

tified

for t

he p

erio

d 1

Apr

il 20

16 a

nd 3

1 M

arch

201

7

Occ

upat

iona

l Cat

egor

yG

ende

rN

umbe

r of

empl

oyee

s as

at

1 A

pril

2016

Training

needsidentifi

edatstartofthere

portingperio

dLe

arne

rshi

psSk

ills

Prog

ram

mes

&

oth

er s

hort

co

urse

s

Oth

er fo

rms

of tr

aini

ngTo

tal

Legislators,seniorofficialsandmanagers

Fem

ale

197

019

70

197

Legislators,seniorofficialsandmanagers

Mal

e16

50

165

016

5Pr

ofes

sion

als

Fem

ale

260

260

26Pr

ofes

sion

als

Mal

e63

063

063

Tech

nici

ans

and

asso

ciat

e pr

ofes

sion

als

Fem

ale

830

830

83Te

chni

cian

s an

d as

soci

ate

prof

essi

onal

Mal

e16

20

162

016

2Clerks

Fem

ale

101

60

101

107

Clerks

Mal

e70

40

7074

Serv

ice

and

sale

s w

orke

rsFe

mal

e39

00

3939

Serv

ice

and

sale

s w

orke

rsM

ale

150

015

15Skille

dagricultureandfisheryworkers

Fem

ale

00

00

0Skille

dagricultureandfisheryworkers

Mal

e0

00

00

Craftandrelatedtradesworkers

Fem

ale

20

02

2Craftandrelatedtradesworkers

Mal

e13

00

1313

Plan

t and

mac

hine

ope

rato

rs a

nd a

ssem

bler

sFe

mal

e19

00

1919

Plan

t and

mac

hine

ope

rato

rs a

nd a

ssem

bler

sM

ale

690

069

69Gendersubtotals

Fem

ale

467

630

616

147

3Gendersubtotals

Mal

e55

74

390

167

561

TOTA

L10

2410

696

328

1034

142


Tabl

e 4.

14.2

Tra

inin

g pr

ovid

ed fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch 2

017

Occ

upat

iona

l cat

egor

yM

ale

Fem

ale

Tota

lA

fric

anC

olou

red

Indi

anW

hite

Afr

ican

Col

oure

dIn

dian

Whi

teLegislators,SeniorO

fficialsand

Man

ager

s26

00

085

42

312

0

Prof

essi

onal

s33

30

244

00

082

TechniciansandAssociateProfessionals

491

01

150

00

66Clerks

159

00

028

81

01

449

Serv

ice

and

Sale

s W

orke

rs10

00

018

10

029

Skille

dAg

ricultureandFisheryW

orkers

00

00

00

00

0CraftandrelatedTradesW

orkers

210

00

200

00

41Pl

ant a

nd M

achi

ne O

pera

tors

and

Assemblers

120

00

00

00

12

Elem

enta

ry O

ccup

atio

ns20

00

020

00

040

TOTA

L33

04

03

490

62

483

9Em

ploy

ees

with

dis

abilit

ies

00

00

10

00

0

4.15

. IN

JURY

ON

DU

TY

Tabl

e 4.

15.1

Inju

ry o

n du

ty fo

r the

per

iod

1 A

pril

2016

and

31

Mar

ch 2

017.

Nat

ure

of in

jury

on

duty

Num

ber

% o

f Tot

alRequiredbasicmedicalattentiononly

2485.7%

Tem

pora

ry T

otal

Dis

able

men

t3

10.7%

Perm

anen

t Dis

able

men

t0

0%

Fata

l1

3.6%

TOTA

L28

100%

143


4.16

. UTI

LISA

TIO

N O

F C

ON

SULT

AN

TS

Tabl

e 4.

16.1

– R

epor

t on

man

agem

ent c

onsu

ltant

app

oint

men

ts u

sing

app

ropr

iate

d fu

nds

for t

he p

erio

d 1

Apr

il 20

16 to

31

Mar

ch 2

017

Proj

ect D

escr

iptio

nSu

pplie

r Nam

eTo

tal n

umbe

r of

con

sulta

nts

that

wor

ked

on th

e pr

ojec

t

Dur

atio

n :M

onth

sO

peni

ng

com

mitm

ent

afte

r ad

just

men

ts

Awar

d pl

us

Varia

tions

Va

lue

(2016/2017)

Tot

al

Expe

nditu

re

2016/17(Less

prio

r yea

r ac

crua

ls p

lus

curr

ent y

ear

accruals)

Clo

sing

co

mm

itmen

t (R’000)

(R’000)

(R’000)

(R’000)

(R’000)

Prog

ram

me

1

F

inal

isin

g m

ovab

le

AssetR

egister

exte

nsio

n.

EOHConsulting(P

TY)

LTD

.10

112

718

6 36

91

322

7 76

5

Supp

ort i

n co

mm

itmen

t andprojectaccounting

serv

ice

for t

he

Dep

artm

ent o

f Roa

ds

and

Publ

ic W

orks

.

EOHConsulting(P

TY)

LTD

.7

114

767

6 38

55

545

5 60

7

Supp

ort t

o Fi

nanc

e &

Prop

erty

Man

agem

ent

Bran

ch.

Pric

e W

ater

Hou

se

Coopers.

2311

7 30

113

641

11 3

999

543

Und

erta

king

fore

nsic

an

d in

vest

igat

ion

serv

ices

on

Hum

an

Res

ourc

es m

atte

rs.

Pric

e W

ater

Hou

se

Coopers.

72

05

688

3 34

32

344

Supp

ort t

o Fi

nanc

e Br

anch

.Vu

ma

Siku

nced

e AccountingSe

rvices.

111

1 01

80

1 01

80

Supp

ort t

o th

e Pr

oper

ty

Man

agem

nt b

ranc

h.Vu

ma

Siku

nced

e AccountingSe

rvices.

111

01

417

720

697

HO

D s

trate

gic

man

agem

ent s

uppo

rt.Pa

ndot

rix.

109

13 6

640

13 2

4441

9

Supp

ort t

o Fi

nanc

e &

Prop

erty

Man

agem

ent

Bran

ch.

LumokaChartered

Accountants.

1211

6 11

013

711

12 6

577

164

144


Proj

ect D

escr

iptio

nSu

pplie

r Nam

eTo

tal n

umbe

r of

con

sulta

nts

that

wor

ked

on th

e pr

ojec

t

Dur

atio

n :M

onth

sO

peni

ng

com

mitm

ent

afte

r ad

just

men

ts

Awar

d pl

us

Varia

tions

Va

lue

(2016/2017)

Tot

al

Expe

nditu

re

2016/17(Less

prio

r yea

r ac

crua

ls p

lus

curr

ent y

ear

accruals)

Clo

sing

co

mm

itmen

t (R’000)

(R’000)

(R’000)

(R’000)

(R’000)

Variousminorjobs.

VariousConsultants.

00

00

2 32

70

35 5

7747

211

51 5

7533

539

Prog

ram

me

2Conductduedilig

ence

forvariousoffice

precinctprojectson

beha

lf of

DR

PW.

TdksConsulting.

2412

48 0

1418

888

38 6

5128

251

Qua

ntity

sur

veyi

ng

serv

ices

for p

lann

ing

& de

sign

of p

hase

2 &

3

of B

hish

o m

assa

cre

projectaspartof

Bhis

ho re

vita

lisat

ion

prog

ram

me.

Roe

leve

ld Q

uant

ity

SurveyorsCC.

--

03

699

1 84

11

858

Conductduedilig

ence

forvariousoffice

precinctprojectson

beha

lf of

DR

PW.

TdksConsulting.

2412

48 0

1418

888

38 6

5128

251

Qua

ntity

sur

veyi

ng

serv

ices

for p

lann

ing

& de

sign

of p

hase

2 &

3

of B

hish

o m

assa

cre

projectaspartof

Bhis

ho re

vita

lisat

ion

prog

ram

me.

Roe

leve

ld Q

uant

ity

SurveyorsCC.

--

03

699

1 84

11

858

145


Proj

ect D

escr

iptio

nSu

pplie

r Nam

eTo

tal n

umbe

r of

con

sulta

nts

that

wor

ked

on th

e pr

ojec

t

Dur

atio

n :M

onth

sO

peni

ng

com

mitm

ent

afte

r ad

just

men

ts

Awar

d pl

us

Varia

tions

Va

lue

(2016/2017)

Tot

al

Expe

nditu

re

2016/17(Less

prio

r yea

r ac

crua

ls p

lus

curr

ent y

ear

accruals)

Clo

sing

co

mm

itmen

t (R’000)

(R’000)

(R’000)

(R’000)

(R’000)

Com

pilationofthe

tech

nica

l con

ditio

n as

sess

men

t thr

ough

pa

rtici

patio

n in

the

cont

ract

arra

nged

by

DR

PW.

AxysInfrastructure(Pty)

Ltd.

--

01

615

1 61

50

Tech

nica

l sup

port.

Mat

unda

The

mbi

nkos

i. -

- 0

9 49

09

490

0Variousjobs.

OtherConsultants.

--

00

15 5

640

48 0

1433

691

67 1

6230

109

Prog

ram

me

3Te

chni

cal s

uppo

rt to

the

road

s pr

ogra

mm

e.Te

chso

. -

- 1

804

01

647

157

Dep

artm

enta

l tec

hnic

al

supp

ort:

Reg

iona

l oc

cupa

tiona

l Hea

lth a

nd

safe

ty.

Pyro

-Med

cc.

--

403

789

569

622

GovernanceSu

pport

Serv

ices

.D

imen

sion

Dat

a. -

- 9

710

10 6

0516

285

4 03

0

Tech

nica

l sup

port

to

Roa

ds.

EngineeringAd

vice

Serv

ices

.

15

559

5 91

09

537

11 9

33

Variousjobs.

OtherConsultants.

--

- -

2 11

1

-

27

475

17 3

0430

149

16 7

41

146


Proj

ect D

escr

iptio

nSu

pplie

r Nam

eTo

tal n

umbe

r of

con

sulta

nts

that

wor

ked

on th

e pr

ojec

t

Dur

atio

n :M

onth

sO

peni

ng

com

mitm

ent

afte

r ad

just

men

ts

Awar

d pl

us

Varia

tions

Va

lue

(2016/2017)

Tot

al

Expe

nditu

re

2016/17(Less

prio

r yea

r ac

crua

ls p

lus

curr

ent y

ear

accruals)

Clo

sing

co

mm

itmen

t (R’000)

(R’000)

(R’000)

(R’000)

(R’000)

Prog

ram

me

4

Supp

ort o

n H

lum

ani

Project.

Pric

e W

ater

Hou

se

Coopers.

--

- 6

943

2 88

14

062

Tech

nica

l sup

port.

BviC

onsulting

Engi

neer

s. -

- -

2 96

42

964

-

Variousjobs.

OtherConsultants.

--

- -

855

-

09

907

6 70

04

062

111

067

108

113

155

586

84 4

51

147


Table 4.16.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2016 and 31 March 2017

Project Title Percentage ownership by HDI groups

Percentage management by HDI

groups

Number of Consultants from HDI groups that work on the project

NotApplicable NotApplicable NotApplicable NotApplicable

Table 4.16.3 – Report on consultant appointments using Donor funds for the period 1 April 2016 and 31 March 2017

Project Title Total Number of consultants that

worked on the project

Duration:

Work days

Donor and Contract value in Rand


Total number of projects

Total individual consultants

Total duration

Work days

Donor and Contract value in Rand


Table 4.16.4 – Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2016 and 31 March 2017

Project Title Percentage ownership by HDI groups

Percentage management by HDI groups

Number of Consultants from HDI groups that work on the project


148


4.17. Severance Packages

Table 4.17.1 Granting of employee initiated severance packages for the period 1 April 2016 and 31 March 2017

Salary band Number of applications received

Number of applications referred to the MPSA

Number of applications supported by MPSA

Number of packages approved by department

Lower skilled (Levels1-2) NotApplicable NotApplicable NotApplicable NotApplicable

SkilledLevels(3-5) NotApplicable NotApplicable NotApplicable NotApplicableHighly skilled production(Levels6-8)


Highly skilled supervision(Levels9-12)


Senior management (Levels13-16)


Total NotApplicable NotApplicable NotApplicable NotApplicable

PART E: FINANCIAL INFORMATION

149

150


5. PART E: FINANCIAL INFORMATION

5.1 Report of the auditor-general to Eastern Cape Provincial Legislature on vote no. 5: Department of Roads and Public WorksReportontheauditofthefinancialstatements

Opinion

1. IhaveauditedthefinancialstatementsoftheDepartmentofRoadsandPublicWorkssetoutonpages158 to 230, which comprise the appropriation statement, the statement of financial position as at31March2017,andthestatementoffinancialperformanceandcashflowstatementfortheyearthenended,aswellasthenotestothefinancialstatements,includingasummaryofsignificantaccountingpolicies.

2. Inmyopinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheDepartmentofRoadsandPublicWorksasat31March2017,anditsfinancialperformanceandcashflowsfortheyearthenendedinaccordancewiththeModifiedCashStandardsprescribedbytheNationalTreasuryand the requirementsof thePublicFinanceManagementActofSouthAfrica (ActNo.1of1999)(PFMA)andtheDivisionofRevenueAct(ActNo.3of2016)(DoRA).

Basis for opinion

3. IconductedmyauditinaccordancewiththeInternationalStandardsonAuditing(ISAs).Myresponsibilitiesunderthosestandardsarefurtherdescribedintheauditor-general’sresponsibilitiesfortheauditofthefinancialstatementssectionofmyreport.

4. I am independent of the department in accordance with the International Ethics Standards Board forAccountants’Code of ethics for professional accountants (IESBAcode) togetherwith theethicalrequirementsthatarerelevanttomyauditinSouthAfrica.IhavefulfilledmyotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheIESBAcode.

5. IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyopinion.

Emphasis of matters

6. Idrawattentiontothemattersbelow.Myopinionisnotmodifiedinrespectofthesematters.

Irregular expenditure

7. IrregularexpenditureofR1,6billionthathasaccumulatedoveranumberofyearsandthathasnotbeenrecoveredorwrittenoffisdisclosedinnote23.1tothefinancialstatements.IrregularexpenditureofR341,1millionincurredduringthecurrentyearisincludedintheamountdisclosed.

Fruitless and wasteful expenditure

8. FruitlessandwastefulexpenditureofR10,6millionthathasaccumulatedoveranumberofyearsandthathasnotbeenrecoveredorwrittenoffisdisclosedinnote24.1tothefinancialstatements.Fruitlessandwasteful expenditureofR1,6million incurredduring the current year is included in theamountdisclosed.

151


Restatementofcorrespondingfigures

9. Asdisclosedinnote37tothefinancialstatements,thecorrespondingfiguresfor31March2016havebeenrestatedasaresultoferrors in thefinancialstatementsof thedepartmentat,andfor theyearended,31March2017.

Accruals and payables not recognised

10. Asdisclosedinnote19tothefinancialstatements,accrualsandpayables,whichexceedthepaymenttermof30daysasrequiredinTreasuryRegulation8.2.3amounttoR83,9million.Thisamount,inturn,exceedsthevotedfundstobesurrenderedofR23,1millionasperthestatementoffinancialperformancebyR60,8million.TheamountofR60,8millionwouldthereforehaveconstitutedunauthorisedexpenditurehad the amounts due been paid in a timely manner.

Other matter

11. Idrawattentiontothematterbelow.Myopinionisnotmodifiedinrespectofthismatter.

Unaudited supplementary schedules

12. Thesupplementaryinformationsetoutonpages231to242doesnotformpartofthefinancialstatementsandispresentedasadditionalinformation.Ihavenotauditedtheseschedulesand,accordingly,Idonotexpress an opinion thereon.

Responsibilitiesofthepartyresponsibleforthefinancialstatements

13. TheaccountingofficerisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeModifiedCashStandardsprescribedbytheNationalTreasuryandtherequirementsofthePFMAandDoRAandforsuchinternalcontrolastheaccountingofficerdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherdueto fraud or error.

14. Inpreparingthefinancialstatements,theaccountingofficerisresponsibleforassessingthedepartment’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatingtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheaccountingofficereitherintendstoliquidatethedepartmentortoceaseoperations,orhasnorealisticalternativebuttodoso.

Auditor-general’sresponsibilitiesfortheauditofthefinancialstatements

15. Myobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholeare free frommaterialmisstatement,whetherdue to fraudorerror,and to issueanauditor’s reportthatincludesmyopinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconducted inaccordancewith ISAswillalwaysdetectamaterialmisstatementwhen itexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

16. Afurtherdescriptionofmyresponsibilities for theauditof thefinancialstatements is included in theannexuretotheauditor’sreport.

152


Report on the audit of the annual performance report

Introduction and scope

17. In accordancewith the PublicAuditAct of SouthAfrica, 2004 (Act No. 25 of 2004) (PAA) and thegeneralnoticeissuedintermsthereofIhavearesponsibilitytoreportmaterialfindingsonthereportedperformanceinformationagainstpredeterminedobjectivesforselectedprogrammespresentedintheannualperformancereport. Iperformedprocedures to identifyfindingsbutnot togatherevidencetoexpress assurance.

18. Myproceduresaddressthereportedperformanceinformation,whichmustbebasedontheapprovedperformance planning documents of the department. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information.Accordingly,myfindingsdonotextendtothesematters.

19. I evaluated the usefulness and reliability of the reported performance information in accordance with thecriteriadevelopedfromtheperformancemanagementandreportingframework,asdefinedinthegeneralnotice,forthefollowingselectedprogrammespresentedintheannualperformancereportofthedepartment for the year ended 31 March 2017:

Programmes Pages in the annual performance report

Programme 2 – Public Works Infrastructure 42 –49Programme 3 - Transport Infrastructure 50– 55Programme4-ExpandedPublicWorksProgramme(EPWP) 56 – 60

20. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable andrelevant,andassessedthereliabilityofthereportedperformanceinformationtodeterminewhetheritwasvalid,accurateandcomplete.

21. I didnot identifyanymaterial findingson theusefulnessand reliability of the reportedperformanceinformation for the following programmes:

• Programme 2 – Public Works Infrastructure• Programme 3 - Transport Infrastructure• Programme4–ExpandedPublicWorksProgramme(EPWP)

Other matters

22. I draw attention to the matters below.

Achievement of planned targets

23. Refer to the annual performance report on pages 42 to 60 for information on the achievement of planned targets for the year and explanations provided for the under and over achievement of a significantnumber of targets.

153


Adjustment of material misstatements

24. I identified material misstatements in the annual performance report submitted for auditing. Thesematerial misstatements were on the reported performance information of the Public Works Infrastructure andExpandedPublicWorksProgrammes.Asmanagementsubsequentlycorrectedthemisstatements,I did not raise any material findings on the usefulness and reliability of the reported performanceinformation.

Report on audit of compliance with legislation

Introduction and scope

25. Inaccordancewith thePAAandthegeneralnotice issued in termsthereof Ihavearesponsibility toreportmaterialfindingsonthecomplianceofthedepartmentwithspecificmattersinkeylegislation.Iperformedprocedurestoidentifyfindingsbutnottogatherevidencetoexpressassurance.

26. Thematerial findings in respect of the compliance criteria for theapplicable subjectmattersareasfollows:

Annualfinancialstatements

27. Thefinancialstatementssubmittedforauditingwerenotpreparedinaccordancewiththeprescribedfinancialreportingframeworkasrequiredbysection40(1)(b)ofthePFMA.Materialmisstatementsofdisclosureitemsidentifiedbytheauditorsinthesubmittedfinancialstatementwerecorrectedresultinginthefinancialstatementsreceivinganunqualifiedauditopinion.

Expenditure management

28. EffectivestepswerenottakentopreventirregularexpenditureamountingtoR341,1millionasdisclosedinnote23totheannualfinancialstatements,asrequiredbysection38(1)(c)(ii)ofthePFMAandTreasuryRegulation 9.1.1.

29. EffectivestepswerenottakentopreventfruitlessandwastefulexpenditureamountingtoR1,6millionasdisclosedinnote24totheannualfinancialstatements,incontraventionofsection38(1)(c)(ii)ofthePFMAandTreasuryRegulation9.1.1.

30. Moneyowedbythedepartmentwasnotsettledwithin30days,asrequiredbysection38(1)(f)ofthePFMAandTreasuryRegulation8.2.3.

Procurement and contract management

31. GoodsandservicesofatransactionvalueaboveR500000wereprocuredwithoutinvitingcompetitivebids,asrequiredbyTreasuryRegulations16A6.1.

32. ContractsweremodifiedwithouttheapprovalofaproperlydelegatedofficialasrequiredbyTreasuryRegulation 8.1 and 8.2.

33. Persons in service of other state departments who had a private or business interest in contracts awarded bytheDepartmentofRoadsandPublicWorksfailedtodisclosesuchinterest,asrequiredbyTreasuryRegulation16A8.4.

154


Consequence management

34. Investigationswerenotconductedintoallallegationsoffinancialmisconductcommittedbyofficials,asrequiredbyTreasuryRegulation4.1.1.

Other information

35. The department’s accounting officer is responsible for the other information. The other informationcomprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report thereon and those selected programmes presented in theannualperformancereportthathavebeenspecificallyreportedonintheauditor’sreport.

36. My opinion on the financial statements and findings on the reported performance information andcompliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

37. In connection with my audit, my responsibility is to read the other information and, in doing so,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsandtheselectedprogrammespresented in theannualperformancereport,ormyknowledgeobtained in theaudit,orotherwiseappearstobemateriallymisstated.If,basedontheworkIhaveperformedontheotherinformationobtainedpriortothedateofthisauditor’sreport,Iconcludethatthereisamaterialmisstatementofthisotherinformation,Iamrequiredtoreportthatfact.Ihavenothingtoreportinthisregard.

Internalcontroldeficiencies

38. I considered internal control relevant tomy audit of the financial statements, reported performanceinformationandcompliancewithapplicablelegislation;however,myobjectivewasnottoexpressanyformofassurance thereon.Thematters reportedbeloware limited to thesignificant internalcontroldeficienciesthatresultedinthefindingsontheperformancereportandthefindingsoncompliancewithlegislation included in this report.

• The leadershipdidnotalwayshaveadequateoversightover the implementationandmonitoringofcontrolsduetoinstabilityincriticalpositions,vacanciesinkeypositionsandthenon-permanentnature of posts.

• Management has not implemented all the processes and controls to ensure compliance with laws andregulations,specificallyintheareaofsupplychainmanagement.Inadditionmanagementhasrespondedslowly in termsofaddressingconsequencemanagementasnotallcaseshavebeenfinalisedrelatingtopriorfinancialyears.

• Although the internal audit and audit committee executed their legislative mandate during thefinancialyearunderreview,thedepartmenthadrecurringmaterialfindingsoncompliance.Thiswasasaresultofleadershipnotrespondingadequatelytorecommendationsmadebytheinternalauditunit as well as the audit committee.

Other reports

39. Idrawattention to the followingengagementsconductedbyvariousparties thathad,orcouldhave,an impact on the matters reported in the department’s financial statements, reported performanceinformation,compliancewithapplicablelegislationandotherrelatedmatters.Thesereportsdidnotformpartofmyopiniononthefinancialstatementsormyfindingsonthereportedperformanceinformationor compliance with legislation.

155


40. Anindependentfirmwasappointedtoinvestigatefictitiouspaymentseffectedtodepartmentalsuppliersin March 2016. The investigation was still in progress at the date of signing this report.

East London

31 July 2017

156


6. Annexure – Auditor-general’s responsibility for the audit

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintainprofessionalscepticismthroughoutmyauditofthefinancialstatements,andtheproceduresperformedonreportedperformanceinformationforselectedprogrammesandonthedepartment’scompliancewithrespecttotheselectedsubjectmatters.

6.1.1 Financial statements

2. Inaddition tomyresponsibility for theauditof thefinancialstatementsasdescribed in theauditor’sreport,Ialso:

• identifyandassesstherisksofmaterialmisstatementofthefinancialstatementswhetherduetofraud or error, design andperformaudit procedures responsive to those risks, and obtain auditevidencethatissufficientandappropriatetoprovideabasisformyopinion.Theriskofnotdetectingamaterialmisstatement resulting fromfraud ishigher than foroneresulting fromerror,as fraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• obtain an understanding of internal control relevant to the audit in order to design audit procedures thatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofthedepartment’sinternalcontrol.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesandrelateddisclosuresmadebytheaccountingofficer.

• conclude on the appropriateness of the accounting officer’s use of the going concern basis ofaccounting in the preparation of the financial statements. I also conclude, based on the auditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonthedepartment’sabilitytocontinueasagoingconcern.IfIconcludethatamaterialuncertaintyexists,Iamrequiredtodrawattentioninmyauditor’sreporttotherelateddisclosures in the financial statementsabout thematerial uncertainty or, if suchdisclosuresareinadequate, tomodify theopinionon thefinancialstatements.Myconclusionsarebasedon theinformationavailabletomeatthedateoftheauditor’sreport.However,futureeventsorconditionsmay cause a department to cease to continue as a going concern.

• evaluate theoverallpresentation,structureandcontentof thefinancialstatements, includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsin a manner that achieves fair presentation.

6.2.2 Communication with those charged with governance

3. I communicatewith the accounting officer regarding, among othermatters, the planned scope andtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthat I identify during my audit.

4. IalsoconfirmtotheaccountingofficerthatIhavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicateallrelationshipsandothermattersthatmayreasonablybethoughttohaveabearingonmyindependenceandhereapplicable,relatedsafeguards.

ANNUAL FINANCIAL STATEMENTS

157

158


5.2

A

NN

UA

L FI

NA

NC

IAL

STAT

EMEN

T FO

R T

HE

YEA

R E

ND

ED 3

1 M

AR

CH

201

7

5.2.

1 A

ppro

pria

tion

stat

emen

t

App

ropr

iatio

n pe

r pro

gram

me

2016

/17

2015

/16

Adj

uste

d A

ppro

pria

-tio

n

Shift

ing

of

Fund

sVi

rem

ent

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

nditu

reVa

rianc

e

Expe

nditu

re

as %

of

finalapp

ro-

pria

tion

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

nditu

re

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Prog

ram

me

1.

Adm

inis

trat

ion

579,385

-(9,273)

570,112

561,730

8,382

98.5%

521,880

512,291

2.

Publ

ic W

orks

In

fras

truc

ture

1,391,550

-(32,628)

1,358,922

1,358,922

-100%

1,276,821

1,254,683

3.

Tran

spor

t Inf

rast

ruct

ure

2,052,199

-25,679

2,077,878

2,063,130

14,748

99.3%

2,002,784

2,001,953

4.

Expa

nded

Pub

lic W

orks

Prog

ram

me

572,725

-16,222

588,947

588,947

-100%

579,946

579,156

Sub-

tota

l4,

595,

859

--

4,59

5,85

94,

572,

729

23,1

3099

.5%

4,38

1,43

14,

348,

083

Stat

utor

y A

ppro

pria

tion

--

--

--

--

-

Tota

l4,

595,

859

--

4,59

5,85

94,

572,

729

23,1

3099

.5%

4,38

1,43

14,

348,

083

Recon

ciliatio

nwith

statemento

ffinancialperform

ance

AD

D

Dep

artm

enta

l rec

eipt

s-

706

Actualamou

ntspers

tatemento

ffinancialperform

ance(totalre

venu

e)4,

595,

859

4,38

2,13

7

Actualamou

ntspers

tatemento

ffinancialperform

ance(totalexpenditure)

4,57

2,72

94,

348,

083

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017

159


App

ropriatio

npere

cono

micclassificatio

n20

16/1

720

15/1

6

Adj

uste

d A

ppro

pria

-tio

n

Shift

ing

of

Fund

sVi

rem

ent

Fina

l A

ppro

pria

-tio

n

Act

ual

Expe

nditu

reVa

rianc

e

Expe

nditu

re

as%offi

nal

appr

opria

-tio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

expe

nditu

re

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00Ec

onom

icclassificatio

nC

urre

nt p

aym

ents

3,10

4,76

5(5,233)

(4,363)

3,09

5,16

93,

078,

875

16,2

9499

.5%

3,10

9,24

93,

107,

862

Com

pensationofemployees

1,177,850

(60,366)

(2,056)

1,115,428

1,115,428

-100%

1,046,188

1,045,591

Sala

ries

and

wag

es1,049,588

(62,602)

(3,206)

983,780

983,780

-100%

922,554

921,957

Soci

al c

ontri

butio

ns128,262

2,236

1,150

131,648

131,648

-100%

123,634

123,634

Goodsandservices

1,926,915

53,656

(2,307)

1,978,264

1,961,970

16,294

99.2%

2,058,412

2,057,622

Administrativefees

360

(161)

-19

919

9-

100%

428

428

Advertising

2,988

(456)

(265)

2,267

2,267

-100%

5,486

5,486

Min

or a

sset

s3,534

(1,854)

-1,680

1,680

-100%

2,387

2,387

Auditcosts:E

xternal

12,229

-(2,497)

9,732

9,732

-100%

13,276

13,276

Burs

arie

s: E

mpl

oyee

s4,744

(612)

(1,330)

2,802

2,802

-100%

1,917

1,917

Catering:Departmental

activ

ities

3,773

209

-3,982

3,982

-100%

5,241

5,241

Com

munication(G&S

)14,434

(473)

-13,961

13,961

-100%

12,227

12,227

Com

puterservices

44,510

(8,789)

(6,247)

29,474

29,474

-100%

29,734

29,734

Consultants:Businessand

advi

sory

ser

vice

s98,266

42,937

(2,171)

139,032

137,486

1,546

98.9%

116,012

116,012

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

75,764

(23,831)

-51,933

51,933

-100%

63,009

63,009

Labo

rato

ry s

ervi

ces

8561

-14

614

6-

100%

240

240

Lega

l ser

vice

s6,616

(3,127)

(1,219)

2,270

2,270

-100%

7,245

7,245

Contractors

988,604

69,099

11,018

1,068,721

1,053,973

14,748

98.6%

1,088,297

1,087,507

Fleetservices(including

governmentm

otortransport)

Inventory:Clothingmaterial

and

acce

ssor

ies

26,623

2,080

35,893 (99)

3,179 -

65,695

1,981

65,695

1,981

- -

100%

100%

80,670

4,824

80,670

4,824

Inventory:Fuel,oilandgas

23,143

(23,143)

--

--

100%

--


160


App

ropriatio

npere

cono

micclassificatio

n20

16/1

720

15/1

6

Adj

uste

d A

ppro

pria

-tio

n

Shift

ing

of

Fund

sVi

rem

ent

Fina

l A

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-tio

n

Act

ual

Expe

nditu

reVa

rianc

e

Expe

nditu

re

as%offi

nal

appr

opria

-tio

n

Fina

l A

ppro

pria

-tio

n

Act

ual

expe

nditu

re

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00In

vent

ory:

Lea

rner

and

te

ache

r sup

port

mat

eria

l33

5(335)

--

--

--

-

Inve

ntor

y: M

ater

ials

and

su

pplie

s7,616

(4,277)

-3,339

3,339

-100%

31,808

31,808

Inve

ntor

y: O

ther

sup

plie

s2,561

(2,561)

--

--

100%

--

Consumablesupplies

13,439

(6,271)

-7,168

7,168

-100%

3.91

73,917

Consumable:S

tationery,

printingandofficesupplies

5,582

(778)

-4,804

4,804

-100%

5,524

5,524

Ope

ratin

g le

ases

260,986

(29,637)

(3,581)

227,768

227,768

-100%

229,826

229,826

Prop

erty

pay

men

ts224,918

(10,885)

(3,106)

210,927

210,927

-100%

199,222

199,222

Trav

el a

nd s

ubsi

sten

ce51,572

18,157

1,203

70,932

70,932

-100%

89,604

89,604

Trai

ning

and

dev

elop

men

t12,168

(2,417)

-9,751

9,751

-100%

14,801

14,801

Ope

ratin

g pa

ymen

ts6,625

(1,250)

2,787

8,162

8,162

-100%

4,695

4,695

Venu

es a

nd fa

cilit

ies

2,989

(413)

-2,576

2,576

-100%

4,450

4,450

Ren

tal a

nd h

iring

30,371

8,669

(78)

38,962

38,962

-100%

43,572

43,572

Inte

rest

and

rent

on

land

-1,477

-1,477

1,477

-100%

4,649

4,649

Inte

rest

-1,477

-1,477

1,477

-100%

4,649

4,649

Tran

sfer

s an

d su

bsid

ies

317,

977

2,38

650

532

0,86

832

0,86

8-

100%

283,

230

260,

848

Prov

ince

s an

d m

unic

ipal

ities

286,022

-40

7286,429

286,429

-100%

252,020

231,367

Prov

ince

s3,500

-63

04,130

4,130

-100%

4,410

4,410

Prov

inci

al a

genc

ies

and

fund

s3,500

-63

04,130

4,130

-100%

4,410

4,410

Mun

icip

aliti

es282,522

-(223)

282,299

282,299

-100%

247,610

226,957

Mun

icip

al a

genc

ies

and

fund

s282,522

-(223)

282,299

282,299

-100%

247,610

226,957

Hou

seho

lds

31,955

2,386

9834,439

34,439

-100%

31,210

29,481


161


App

ropriatio

npere

cono

micclassificatio

n20

16/1

720

15/1

6

Adj

uste

d A

ppro

pria

-tio

n

Shift

ing

of

Fund

sVi

rem

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Fina

l A

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n

Act

ual

Expe

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rianc

e

Expe

nditu

re

as%offi

nal

appr

opria

-tio

n

Fina

l A

ppro

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-tio

n

Act

ual

expe

nditu

re

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00So

cialbenefits

26,614

1,627

5928,300

28,300

-100%

25,089

23,360

Oth

er tr

ansf

ers

to

hous

ehol

ds5,341

759

396,139

6,139

-100%

6,121

6,121

Paym

ents

for c

apita

l ass

ets

1,17

3,11

72,

847

1,88

81,

177,

852

1,17

1,01

66,

836

99.4

%98

8,14

197

8,56

2Bu

ildingsandotherfixed

stru

ctur

es1,119,458

3,220

15,750

1,138,428

1,138,428

-100%

940,890

940,890

Build

ings

1,107,458

3,220

21,189

1,131,867

1,131,867

-100%

936,692

936,692

Otherfixedstructures

12,000

-(5,439)

6,561

6,561

-100%

4,198

4,198

Machineryandequipment

49,606

(373)

(11,562)

37,671

32,588

5,083

86.5%

47,251

37,672

Transportequipment

18,938

(957)

(9,894)

8,087

8,087

-100%

16,767

16,767

Oth

er m

achi

nery

and

equipm

ent

30,668

584

(1,668)

29,584

24,501

5,083

82.8%

30,484

20,905

Softw

are

and

othe

r int

angi

ble

asse

ts4,053

-(2,300)

1,753

-1,753

--

-

Paym

entforfinancialassets

--

1,97

01,

970

1,97

0-

100%

811

811

Tota

l4,

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s36,950

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Goodsandservices

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166


Prog

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Plan

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4,921

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Des

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248,835

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Mai

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175,065

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163,932

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607,572

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110,905

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297,755

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41,531

41,531

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40,254

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Goodsandservices

518,488

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517,780

517,780

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459,667

459,667

Administrativefees

250

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116

116

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216

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385

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334

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458

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639

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180

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21,991

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200

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167


Prog

ram

me

2: P

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294

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455

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246,702

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225,053

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224,531

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Prop

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ts218,317

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190,904

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245

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583

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187

187

Ren

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3,040

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4,649

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247,610

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247,610

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Mun

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s282,522

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247,610

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Hou

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3131

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3131

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5,38

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5,38

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168


Prog

ram

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2: P

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Wor

ks In

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ture

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Adj

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4.3

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182


5.2.2 Notes to the Appropriation Statement

1. DetailoftransfersandsubsidiesasperAppropriationAct(afterVirement):

DetailofthesetransactionscanbeviewedinthenoteonTransfersandsubsidies,disclosurenotesandAnnexure1(A-H)totheAnnualFinancialStatements.

2. Detailofspecificallyandexclusivelyappropriatedamountsvoted(afterVirement):

Detail of these transactionscanbeviewed innote1 (AnnualAppropriation) to theAnnualFinancialStatements.

3. Detailonpaymentsforfinancialassets

DetailofthesetransactionsperprogrammecanbeviewedinthenoteonPaymentsforfinancialassetstotheAnnualFinancialStatements.

4. ExplanationsofmaterialvariancesfromAmountsVoted(afterVirement):

4.1 Per programme

Programme Final Appropriation

Actual Expenditure

Variance R’000

Variance as a % of Final

AppropriationProgramme1:Administration 570,112 561,730 8,382 1.5%Programme 2: Public Works Infrastructure 1,358,922 1,358,922 0 0%Programme 3: Transport Infrastructure 2,077,878 2,063,130 14,748 0.7%Programme 4: Expanded Public Works Programme 588,947 588,947 0 0%

Total 4,595,859 4,572,729 23,130 0.5%


Under expenditure is due to the incorrect delivery of invoices for the consultants and procured laptops by the service providerthatwerenotaspertheissuedspecification.

These laptops had to be returned back to the service provider as the department could not process the invoice for paymentforincorrectitemsdelivered.AnamountofR5,084millionhasbeenrequestedtoberolledover.

Softwareandotherintangibleassets,thedepartmentprocuredservicesfortheenhancementofthePROMISsystemwhichistheintegratedprojectmanagementsystemforthedepartment.Anincorrectinvoicefortheservicesrenderedwas received by the department. The department could not process the incorrect invoice and it had to be returned back totheserviceproviderforcorrection.AnamountofR1,357millionhasbeenrequestedtoberolledover.


N/A

NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017

183


Programme 3: Transport Infrastructure

Theunderexpenditureisduetothelateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100)re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.AnamountofR14,071millionhasbeenrequestedtoberolledover.


N/A

4.2 Pereconomicclassification

EconomicClassification Final Appropriation

Actual Expenditure

Variance R’000


Appropriation

Current expenditure

Compensationofemployees 1,115,428 1,115,428 - 0%

Goodsandservices 1,978,264 1,961,970 16,294 0.8%

Interest and rent on land 1,477 1,477 - 0%

Transfers and subsidies

Provinces and municipalities 286,429 286,429 - 0%

Households 34,439 34,439 - 0%

Payments for capital assets

Buildingsandotherfixedstructures 1,138,428 1,138,428 - 0%

Machineryandequipment 37,671 32,588 5,083 13.5%

Software and other intangible assets 1,753 - 1,753 100%

Paymentsforfinancialassets 1,970 1,970 - 0%

Theunderexpenditureundergoodsandservicesisduetothelateawardingofdisasterprojects(DR08121,DR08116,DR08120,DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.AnamountofR14,071millionhasbeenrequestedtoberolledover.

Machineryandequipmenttherecordedunderexpenditureisduetotheincorrectdeliveryoftheprocuredlaptopsbytheserviceproviderthatwerenotaspertheissuedspecification.Theselaptopshadtobereturnedbacktotheservicesproviderasthedepartmentcouldnotprocesstheinvoiceforpaymentforincorrectitemsdelivered.AnamountofR5,084millionhasbeenrequestedtoberolledover.

Softwareandotherintangibleassets,thedepartmentprocuredservicesfortheenhancementofthePROMISsystemwhichistheintegratedprojectmanagementsystemforthedepartment.Anincorrectinvoicefortheservicesrenderedwas received by the Department. The department could not process the incorrect invoice and it had to be returned backtotheserviceproviderforcorrection.AnamountofR1,357millionhasbeenrequestedtoberolledover.


184


Per conditional grant Final Appropriation

Actual Expenditure Variance


Appropriation

R’000 R’000 R’000 %

ProvincialInfrastructureGrant 1,320,829 1,306,082 14,747 1.1%

EPWPIncentiveGrant 52,848 52,848 - 0%

Total 1,373,677 1,358,930 14,747 1.1%

The under expenditure is due to the late awarding of disaster projects DR08121,DR08116, DR08120, DR08245,DR08119,DR08100),re-advertised(DR08017andDR08079)duetonon-responsivenessofbidderstotheconditionsofthetenderaswellasthedelaysinthecompletionofawardedproject(DR08125)duetocommunityproteststhatresultedinstoppageofwork.AnamountofR14,071millionhasbeenrequestedtoberolledover.


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5.2.3 Statement of Financial Performance

Note 2016/17 2015/16R’000 R’000

REVENUEAnnualappropriation 1 4,595,859 4,381,431Departmental revenue 2 - 706

TOTAL REVENUE 4,595,859 4,382,137

EXPENDITURECurrent expenditureCompensationofemployees 3 1,115,428 1,045,591Goodsandservices 4 1,961,970 2,057,622Interest and rent on land 5 1,477 4,649

Total current expenditure 3,078,875 3,107,862

Transfers and subsidiesTransfers and subsidies 7 320,868 260,848

Total transfers and subsidies 320,868 260,848

Expenditure for capital assetsTangible assets 8 1,171,016 978,562

Total expenditure for capital assets 1,171,016 978,562

Paymentsforfinancialassets 6 1,970 811

TOTAL EXPENDITURE 4,572,729 4,348,083

SURPLUS FOR THE YEAR 23,130 34,054

Reconciliation of Net Surplus for the yearVoted funds 23,130 33,348

Annualappropriation 8,383 33,313Conditionalgrants 14,747 35

DepartmentalrevenueandNRFReceipts 2 - 706

SURPLUS FOR THE YEAR 23,130 34,054

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2017

186


5.2.4 Statement of Financial Position

Note 2016/17 2015/16

R’000 R’000ASSETS

Current assets 71,743 69,730Cashandcashequivalents 9 17,403 21,456Prepayments and advances 10 6,783 9,002Receivables 11 47,557 39,272

Non-current assets 2,746 4,679Receivables 11 2,746 4,679

TOTAL ASSETS 74,489 74,409

LIABILITIES

Current liabilities 74,489 74,409Voted funds to be surrendered to the Revenue Fund 12 23,130 33,348DepartmentalrevenueandNRFReceiptstobesurrenderedtothe Revenue Fund

13 1,355 2,255

Payables 14 50,004 38,806 TOTAL LIABILITIES 74,489 74,409

NET ASSETS - -

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017

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5.2.5. Cash Flow Statement

Note 2016/17 2015/16R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts 4,613,334 4,398,246Annualappropriatedfundsreceived 1.1 4,595,859 4,381,431Departmental revenue received 2 17,475 16,815

Net(increase)/decreaseinworkingcapital 7,065 38,789Surrendered to Revenue Fund (64,954) (272,924)Currentpayments (3,077,398) (3,103,214)Interest paid 5 1,477 (4,649)Paymentsforfinancialassets 6 1,970 (811)Transfers and subsidies paid 7 (320,868) (260,847)Netcashflowavailablefromoperatingactivities 15 1,153,732 794,590

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 8 (1,171,016) (978,562)Proceeds from sale of capital assets 2.2 13,231 9,002Netcashflowsfrominvestingactivities (1,157,785) (969,560)

CASH FLOWS FROM FINANCING ACTIVITIESIncrease/(decrease)innon-currentpayables - -Netcashflowsfromfinancingactivities - -

Netdecreaseincashandcashequivalents (4,053) (174,970)

Cashandcashequivalentsatbeginningofperiod 21,456 196,426

Cash and cash equivalents at end of period 16 17,403 21,456

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2017

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5.2.6. Accounting Policies

Summaryofsignificantaccountingpolicies

Thefinancialstatementshavebeenpreparedinaccordancewiththefollowingpolicies,whichhavebeenappliedconsistentlyinallmaterialaspects,unlessotherwiseindicated.Managementhasconcludedthatthefinancialstatementspresentfairlythedepartment’sprimaryandsecondaryinformation.

Thehistoricalcostconventionhasbeenused,exceptwhereotherwiseindicated.Managementhasusedassessmentsandestimatesinpreparingtheannualfinancialstatements.Thesearebasedonthebestinformationavailable at the time of preparation.

Whereappropriateandmeaningful,additionalinformationhasbeendisclosedtoenhancetheusefulnessofthefinancialstatementsandtocomplywiththestatutoryrequirementsofthePublicFinanceManagementAct(PFMA),Act1of1999(asamendedbyAct29of1999),andtheTreasuryRegulationsissuedintermsofthePFMAandtheannualDivisionofRevenueAct.

1 Basis of preparation

ThefinancialstatementshavebeenpreparedinaccordancewiththeModifiedCashStandardexceptwherestatedotherwise.Themodifiedcashbasisconstitutesthecashbasisofaccountingsupplementedwith additional disclosure items. Under the cash basis of accounting transactions and other events are recognised when cash is received or paid.

2 Going concern

Thefinancialstatementshavebeenpreparedonagoingconcernbasis.

3 Presentation currency

AmountshavebeenpresentedinthecurrencyoftheSouthAfricanRand(R)whichisalsothefunctionalcurrency of the department.

4 Rounding

UnlessotherwisestatedfinancialfigureshavebeenroundedtothenearestonethousandRand(R’000).

5 Comparative information

5.1 Prior period comparative information

Priorperiodcomparativeinformationhasbeenpresentedinthecurrentyear’sfinancialstatements.Wherenecessaryfiguresincludedinthepriorperiodfinancialstatementshavebeenreclassifiedtoensurethattheformatinwhichtheinformationispresentedisconsistentwiththeformatofthecurrentyear’sfinancialstatements.

5.2 Current year comparison with budget

Acomparisonbetweentheapproved,finalbudgetandactualamountsforeachprogrammeandeconomicclassificationisincludedintheappropriationstatement.

6 Revenue

6.1 Appropriated funds

Appropriatedfundscomprisesofdepartmentalallocationsaswellasdirectchargesagainsttherevenuefund(i.e.statutoryappropriation).

Appropriatedfundsarerecognisedinthestatementoffinancialperformanceonthedatetheappropriationbecomeseffective.Adjustmentsmadeintermsoftheadjustmentsbudgetprocessarerecognisedinthestatementoffinancialperformanceonthedatetheadjustmentsbecomeeffective.UnexpendedappropriatedfundsaresurrenderedtotheNational/ProvincialRevenueFund.

The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognisedasapayable/receivableinthestatementoffinancialposition.

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2017

189


6.2 Departmental revenue

Departmentalrevenueisrecognisedinthestatementoffinancialperformancewhenreceivedandissubsequentlypaidintotherelevantrevenuefund,unlessstatedotherwise.

Anyamountowingtotherelevantrevenuefundatthereportingdateisrecognisedasapayableinthestatementoffinancialposition.

6.3 Accrued departmental revenue

Accrualsinrespectofdepartmentalrevenue(excludingtaxrevenue)arerecordedinthenotestothefinancialstatementswhen:

itisprobablethattheeconomicbenefitsorservicepotentialassociatedwiththetransactionwillflowto•the department; and

the amount of revenue can be measured reliably.•

The accrued revenue is measured at the fair value of the consideration receivable.

Write-offsaremadeaccordingtothedepartment’sdebtwrite-offpolicy.

7 Expenditure

7.1 Compensation of employees

7.1.1 Salaries and wages

Salariesandwagesareexpensedinthestatementoffinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).

Otheremployeebenefitsthatgiverisetoapresentlegalorconstructiveobligationaredisclosedinthedisclosurenotestothefinancialstatementsatitsfacevalueandarenotrecognisedinthestatementoffinancialperformanceorposition.

7.1.2 Social contributions

Employercontributionstopostemploymentbenefitplansinrespectofcurrentemployeesareexpensedinthestatementoffinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).

Noprovisionismadeforretirementbenefitsinthefinancialstatementsofthedepartment.AnypotentialliabilitiesaredisclosedinthefinancialstatementsoftheNationalRevenueFundandnotinthefinancialstatements of the employer department.

Employercontributionsmadebythedepartmentforcertainofitsex-employees(suchasmedicalbenefits)areclassifiedastransferstohouseholdsinthestatementoffinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).

7.2 Goods and services

Payments made during the year for goods and/or services are recognised as an expense in the statement offinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).

Theexpenseisclassifiedascapitalifthegoodsand/orserviceswereacquiredforacapitalprojectorifthetotalpurchasepriceexceedsthecapitalisationthreshold(currentlyR5,000).Allotherexpendituresareclassifiedascurrent.

Rentalpaidfortheuseofbuildingsorotherfixedstructuresisclassifiedasgoodsandservicesandnotasrent on land.


190


7.3 Interest on overdue accounts and rent on land

Interestandrentalpaymentsarerecognisedasanexpenseinthestatementoffinancialperformancewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).Thisitemexcludesrentalfortheuseofbuildingsorotherfixedstructures.Ifitisnotpossibletodistinguishbetweenpaymentfortheuseoflandandthefixedstructuresonit,thewholeamountshouldberecordedunder goods and services.

7.4 Paymentsforfinancialassets

Debtsarewrittenoffwhenidentifiedasirrecoverable.Debtswritten-offarelimitedtotheamountofsavingsand/or underspending of appropriated funds. The write off occurs at year-end or when funds are available. Noprovisionismadeforirrecoverableamountsbutanestimateisincludedinthedisclosurenotestothefinancialstatementsamounts.

Allotherlossesarerecognisedwhenauthorisationhasbeengrantedfortherecognitionthereof.

7.5 Transfers and subsidies

Transfersandsubsidiesarerecognisedasanexpensewhenthefinalauthorisationforpaymentiseffectedonthesystem(bynolaterthan31Marchofeachyear).

7.6 Accruals and payables not recognised

Accrualsandpayablesnotrecognisedarerecordedinthenotestothefinancialstatementswhenthegoodsarereceivedor,inthecaseofservices,whentheyarerenderedtothedepartmentorinthecaseoftransfersand subsidies when they are due and payable.

Accrualsandpayablesnotrecognisedaremeasuredatcost.

7.7 Leases

7.7.1 Operating leases

Operating lease payments made during the reporting period are recognised as current expenditure in the statementoffinancialperformanceonthedateofpayment.

Theoperatingleasecommitmentsarerecordedinthenotestothefinancialstatements.

7.7.2 Finance leases

Finance lease payments made during the reporting period are recognised as capital expenditure in the statementoffinancialperformanceonthedateofpayment.

Thefinanceleasecommitmentsarerecordedinthenotestothefinancialstatementsandarenotapportioned between the capital and interest portions.

Financeleaseassetsacquiredattheendoftheleasetermarerecordedandmeasuredatthelowerof:

cost,beingthefairvalueoftheasset;or•

thesumoftheminimumleasepaymentsmade,includinganypaymentsmadetoacquireownershipat•theendoftheleaseterm,excludinginterest.

8 Cash and cash equivalents

Cashandcashequivalentsarestatedatcostinthestatementoffinancialposition.

Bankoverdraftsareshownseparatelyonthefaceofthestatementoffinancialpositionasacurrentliability.

Forthepurposesofthecashflowstatement,cashandcashequivalentscomprisecashonhand,depositsheld,othershort-termhighlyliquidinvestmentsandbankoverdrafts.


191


9 Prepayments and advances

Amountsprepaidoradvancedarerecognisedinthestatementoffinancialpositionwhenthepaymentsaremade and are derecognised as and when the goods/services are received or the funds are utilised in a future period longer than one month from payment and the amount is material.

Prepaymentsandadvancesoutstandingattheendoftheyeararecarriedinthestatementoffinancialposition at cost.

Prepayments are expensed if the funds are utilised in a future period less than one month from payment.

10 Receivables

Receivablesincludedinthestatementoffinancialpositionarisefromcashpaymentsmadethatarerecoverablefromanotherparty(includingdepartmentalemployees)andarederecogniseduponrecoveryor write-off.

Receivablesoutstandingatyear-endarecarriedinthestatementoffinancialpositionatcostplusanyaccruedinterest.Amountsthatarepotentiallyirrecoverableareincludedinthedisclosurenotes.

11 Impairments

Thedepartmenttestsforimpairmentwherethereisanindicationthatareceivable,loanorinvestmentmaybeimpaired.Anassessmentofwhetherthereisanindicationofpossibleimpairmentisdoneateachreporting date.

Anestimateismadefordoubtfulloansandreceivablesbasedonareviewofalloutstandingamountsat year-end. Impairments on investments are calculated as being the difference between the carrying amountandthepresentvalueoftheexpectedfuturecashflows/servicepotentialflowingfromtheinstrument.

Thisisrecordedinthenotesthefinancialstatements.

12 Payables

Recognised payables mainly comprise of amounts owing to other governmental entities. These payables arecarriedatcostinthestatementoffinancialposition.

13 Capital Assets

13.1 Immovable capital assets

Initial recognition

Immovablecapitalassetsarerecordedinthenotestothefinancialstatementsatcostonreceiptoftheitem.Costofanassetisdefinedasthetotalcostofacquisition.

Wherethecostcannotbedeterminedaccurately,theimmovablecapitalassetsaremeasuredatfairvalue.AsperSectoralGuide:AccountingandReportingforImmovableAssets(“SectoralGuide”theDepartment has used Municipal Valuation Rolls to determine fair value in order to alleviate fruitless and wastefulexpenditure.Further,pertheSectoralGuide,whereamunicipalvaluationhasnotbeenfinalised,theaffectedpropertieswillbereflectedatthesamevalueasforexceptionalcases(R1,000).TheSectoralGuiderequiresexceptionalcasestoberecordedatR1,000.Theseexceptionalcasesare:

Road reserves•

CommunalLand•

Seashore •

AdmiraltyReserve•

Commonages•

LandParcelswithGravesandCemeteries•

Islands and offshore rock outcrops•


192


Immovablecapitalassetsacquiredthroughanon-exchangetransactionismeasuredatfairvalueasatthedateofacquisition.

Immovablecapitalassetsaresubsequentlycarriedatcostorfairvalueandarenotsubjecttodepreciationor impairment.

Subsequent recognition

Work-in-progressofacapitalnatureisrecordedinthestatementoffinancialperformanceas“expenditureforcapitalassets”.Oncompletion,thetotalcostoftheprojectisincludedintheassetregisterofthedepartment that is accountable for the asset.

Repairsandmaintenanceisexpensedascurrent“goodsandservices”inthestatementoffinancialperformance.

Provincial Immovable Assets

ThedisclosurenotestothefinancialstatementsrepresenttheconsolidatedpositionoftheEasternCapeProvince immovable assets with the exception of the Human Settlements properties which in terms of TheHousingAct107of1997andTheHousingAmendmentAct4of2001remaininthecustodyoftheDepartment of Human Settlements. The above accounting policies have been applied as stated.

Wheredocumentaryevidencesupportingcompletedprovincialprojectsforthecurrentfinancialyearisconsideredtobeeitherincompleteorinaccurate,theprojectwillnotbeincluded.

13.2 Movable capital assets

Movablecapitalassetsareinitiallyrecordedinthenotestothefinancialstatementsatcost.Movablecapitalassetsacquiredthroughanon-exchangetransactionismeasuredatfairvalueasatthedateofacquisition.

Wherethecostofmovablecapitalassetscannotbedeterminedreliably,themovablecapitalassetsaremeasured at fair value and where fair value cannot be determined; the movable assets are measured at R1.

Amovableassetacquiredbefore1April2002(oranotherdateasapprovedbytheOAG)maybemeasured at R1 if its cost cannot be reliably measured and its fair value had not been determined prior to the implementation of the Standard. Where the cost or fair value has been determined the asset may be recorded at the available value instead of R1.

Movablecapitalassetsaresubsequentlycarriedatcostandarenotsubjecttodepreciationorimpairment.

Subsequentexpenditurethatisofacapitalnatureisaddedtothecostoftheassetattheendofthecapitalprojectunlessthemovableassetisrecordedbyanotherdepartment/entityinwhichcasethecompletedprojectcostsaretransferredtothatdepartment.



193


13.3 Intangible assets

Intangibleassetsareinitiallyrecordedinthenotestothefinancialstatementsatcost.Intangibleassetsacquiredthroughanon-exchangetransactionaremeasuredatfairvalueasatthedateofacquisition.

Internallygeneratedintangibleassetsarerecordedinthenotestothefinancialstatementswhenthedepartmentcommencesthedevelopmentphaseoftheproject.

Wherethecostofintangibleassetscannotbedeterminedreliably,theintangiblecapitalassetsaremeasured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.

Allassetsacquiredpriorto1April2002(oralaterdateasapprovedbytheOAG)mayberecordedatR1.

Intangibleassetsaresubsequentlycarriedatcostandarenotsubjecttodepreciationorimpairment.

Subsequentexpenditurethatisofacapitalnatureisaddedtothecostoftheassetattheendofthecapitalprojectunlesstheintangibleassetisrecordedbyanotherdepartment/entityinwhichcasethecompletedprojectcostsaretransferredtothatdepartment.


14 Provisions and Contingent Liabilities

14.1 Provisions

Provisionsarerecordedinthenotestothefinancialstatementswhenthereisapresentlegalorconstructiveobligationtoforfeiteconomicbenefitsasaresultofeventsinthepastanditisprobablethatanoutflowofresourcesembodyingeconomicbenefitsorservicepotentialwillberequiredtosettletheobligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimateofthefundsrequiredtosettlethepresentobligationatthereportingdate.

14.2 Contingent liabilities

Contingentliabilitiesarerecordedinthenotestothefinancialstatementswhenthereisapossibleobligationthatarisesfrompastevents,andwhoseexistencewillbeconfirmedonlybytheoccurrenceornon-occurrence of one or more uncertain future events not within the control of the department or when thereisapresentobligationthatisnotrecognisedbecauseitisnotprobablethatanoutflowofresourceswillberequiredtosettletheobligationortheamountoftheobligationcannotbemeasuredreliably.

14.3 Employeebenefits

Short-termemployeebenefitsthatgiverisetoapresentlegalorconstructiveobligationaredisclosedinthedisclosurenotestothefinancialstatements.Theseamountsarenotrecognisedinthestatementoffinancialperformanceorthestatementoffinancialposition.

14.4 Contingent assets

Contingentassetsarerecordedinthenotestothefinancialstatementswhenapossibleassetarisesfrompastevents,andwhoseexistencewillbeconfirmedbytheoccurrenceornon-occurrenceofoneormoreuncertain future events not within the control of the department.

14.5 Commitments

Commitments(otherthanfortransfersandsubsidies)arerecordedatcostinthenotestothefinancialstatements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditurethatwillresultintheoutflowofcash.


194


15 Unauthorised expenditure

Unauthorisedexpenditureisrecognisedinthestatementoffinancialpositionuntilsuchtimeastheexpenditure is either:

approved by the Provincial Legislature with funding and the related funds are received; or•

approved by the Provincial Legislature without funding and is written off against the appropriation in •thestatementoffinancialperformance;or

transferred to receivables for recovery.•

Unauthorisedexpenditureismeasuredattheamountoftheconfirmedunauthorisedexpenditure.

16 Fruitless and wasteful expenditure

Fruitlessandwastefulexpenditureisrecordedinthenotestothefinancialstatementswhenconfirmed.Theamountrecordedisequaltothetotalvalueofthefruitlessandorwastefulexpenditureincurred.

Fruitlessandwastefulexpenditureisremovedfromthenotestothefinancialstatementswhenitisresolved or transferred to receivables for recovery.

Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable andarede-recognisedwhensettledorsubsequentlywritten-offasirrecoverable.

17 Irregular expenditure

Irregularexpenditureisrecordedinthenotestothefinancialstatementswhenconfirmed.Theamountrecordedisequaltothevalueoftheirregularexpenditureincurredunlessitisimpracticabletodetermine,in which case reasons therefor are provided in the note.

Irregularexpenditureisremovedfromthenotewhenitiseithercondonedbytherelevantauthority,transferred to receivables for recovery or not condoned and is not recoverable.

Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognisedwhensettledorsubsequentlywritten-offasirrecoverable.

18 Changes in accounting policies, accounting estimates and errors

ChangesinaccountingpoliciesthatareeffectedbymanagementhavebeenappliedretrospectivelyinaccordancewithMCSrequirements,excepttotheextentthatitisimpracticabletodeterminetheperiod-specificeffectsortheMCSspecificallyrequiresprospectivetreatmentorthecumulativeeffectofthechangeinpolicy.Insuchinstancesthedepartmentshallrestatetheopeningbalancesofassets,liabilitiesand net assets for the earliest period for which retrospective restatement is practicable.

ChangesinaccountingestimatesareappliedprospectivelyinaccordancewithMCSrequirements.

CorrectionoferrorsisappliedretrospectivelyintheperiodinwhichtheerrorhasoccurredinaccordancewithMCSrequirements,excepttotheextentthatitisimpracticabletodeterminetheperiod-specificeffectsor the cumulative effect of the error. In such cases the department shall restate the opening balances of assets,liabilitiesandnetassetsfortheearliestperiodforwhichretrospectiverestatementispracticable.

Priorperiodcomparativeinformationhasbeenpresentedinthecurrentyear’sfinancialstatements.Wherenecessaryfiguresincludedinthepriorperiodfinancialstatementshavebeenreclassifiedtoensurethattheformatinwhichtheinformationispresentedisconsistentwiththeformatofthecurrentyear’sfinancialstatements.

19 Non-adjusting events after the reporting date

Eventsafterthereportingdatethatareclassifiedasadjustingeventshavebeenaccountedforinthefinancialstatements.Theeventsafterthereportingdatethatareclassifiedasnon-adjustingeventsafterthereportingdatehavebeendisclosedinthenotestothefinancialstatements.


195


20 Principal-Agent arrangements

When the department is the principal it will recognise any payment made to the agent in the statement offinancialperformanceunlessitisaprepaymentinwhichcasethepolicyofprepaymentsandadvancesabove will apply.

Anyassetorliabilityassociatedwiththeactivityundertakenbytheagentisincludedinthedisclosurenotestothefinancialstatements.

When the department is the agent it will recognise any fees received as departmental revenue in the statementoffinancialperformance.

The department accounts for the funds provided by the principal to execute the agreed tasks as an advanceinthestatementoffinancialposition.

If the department has not received an advance it will raise a receivable for expenditure spent on behalf of the principal and therefore due by the principal.

Anyassetorliabilityassociatedwiththeactivityundertakenbythemshouldbeincludedinthestatementoffinancialpositionandinthenotestothefinancialstatements.

21 Recoverable revenue

Amountsarerecognisedasrecoverablerevenuewhenapaymentmadeinapreviousfinancialyearbecomesrecoverablefromadebtorinthecurrentfinancialyear.AmountsareeithertransferredtotheNational/ProvincialRevenueFundwhenrecoveredoraretransferredtothestatementoffinancialperformance when written-off.

22 Related party transactions

Arelatedpartytransactionisatransferofresources,servicesorobligationsbetweenthereportingentityandarelatedparty.RelatedpartytransactionswithintheMinister/MEC’sportfolioarerecordedinthenotestothefinancialstatementswhenthetransactionisnotatarm’slength.

23 Key management personnel

Keymanagementpersonnelarethosepersonshavingtheauthorityandresponsibilityforplanning,directing and controlling the activities of the department. The number of individuals and their full compensationisrecordedinthenotestothefinancialstatements.

24 Inventories

Inventoriesthatqualifyforrecognitionmustbeinitiallyreflectedatcostintheannexuretothefinancialstatements.Whereinventoriesareacquiredatnocost,orfornominalconsideration,theircostshallbetheirfairvalueatthedateofacquisition.Inventoriesaresubsequentlymeasuredatthelowerofcostandnet realisable value of lower of cost and current replacement value.

Allinventoryitemsatyear-endarereflectedusingtheFIFOcostformula.

25 Employeebenefits

ThevalueofeachmajorclassofemployeebenefitobligationisdisclosedintheEmployeebenefitsnote.

26 Financialassets(notcoveredelsewhere)

Afinancialassetisrecognisedinitiallyatitscostplustransactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancial.

Atthereportingdate,adepartmentshallmeasureitsfinancialassetsatcost,lessamountsalreadysettledorwritten-off,exceptforrecognisedloansandreceivables,whicharemeasuredatcostplusaccruedinterest,whereinterestischarged,lessamountsalreadysettledorwritten-off.


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27 Public-Private Partnerships

Public Private Partnerships are accounted for based on the nature and or the substance of the partnership. The transaction is accounted for in accordance with the relevant accounting policies.

AsummaryofthesignificanttermsofthePPPagreement,thepartiestotheagreement,andthedateofcommencementthereoftogetherwiththedescriptionandnatureoftheconcessionfeesreceived,theunitaryfeespaid,rightsandobligationsofthedepartmentarerecordedinthenotestothefinancialstatements.


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5.2.7. Notes to the Annual Financial Statements1. Annual Appropriation 1.1 Annual Appropriation

IncludedarefundsappropriatedintermsoftheAppropriationAct(andtheAdjustmentsAppropriationAct)forNationalDepartments(Votedfunds)andProvincialDepartments:

2016/17 2015/16Final

AppropriationActual Funds

ReceivedFunds not

requested/no received

Final Appropriation

Appropriationreceived

R’000 R’000 R ‘000 R’000 R’000Administration 570,112 570,112 - 521,880 521,880Public Works Infrastructure 1,358,922 1,358,922 - 1,276,821 1,276,821

Transport Infrastructure 2,077,878 2,077,878 - 2,002,784 2,002,784

Expanded Public Works Programme 588,947 588,947 - 579,946 579,946

Total 4,595,859 4,595,859 - 4,381,431 4,381,431

1.2 Conditional grants

Note

2016/17 2015/16R’000 R’000

Total grants received 35 1,373,677 1,420,554

ProvincialgrantsincludedinTotalGrantsreceived 1,320,829 1,366,947

(**ItshouldbenotedthattheConditionalgrantsareincludedintheamountspertheFinalAppropriationinNote1.1)

2. Departmental revenue

Note 2016/17 2015/16R’000 R’000

Sales of goods and services other than capital assets 2.1 14,930 16,072Sales of capital assets 2.2 13,231 9,002Transactionsinfinancialassetsandliabilities 2.3 2,545 743Total revenue collected 30,706 25,817Less: Own revenue included in appropriation 13 30,706 25,111Departmental revenue collected - 706

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

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2.1 Sales of goods and services other than capital assets

Note 2016/17 2015/162 R’000 R’000

Sales of goods and services produced by the department 14,929 16,033Sales by market establishment 11,952 12,381Other sales 2,977 3,652

Salesofscrap,wasteandotherusedcurrentgoods 1 39Total 14,930 16,072

2.2 Sale of capital assets

Note 2016/17 2015/162 R’000 R’000

Tangible assets 13,231 9,002Machineryandequipment 31 13,231 9,002

Total 13,231 9,002

2.3 Transactionsinfinancialassetsandliabilities

Note 2016/17 2015/162 R’000 R’000

Stalechequeswrittenback 1 1Other Receipts including Recoverable Revenue 2,544 742Total 2,545 743

3. Compensation of employees3.1 Salaries and wages

Note 2016/17 2015/16R’000 R’000

Basic salary 807,571 748,118Performance award 9,829 9,834Service Based 1,988 2,080Compensative/circumstantial 1,491 6,978Periodic payments - 5Other non-pensionable allowances 162,901 154,941Total 983,780 921,956


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3.2 Social contributions

Note 2016/17 2015/16R’000 R’000

Employer contributionsPension 86,799 81,811Medical 44,384 41,520UIF 187 38Bargaining council 278 266Total 131,648 123,635

Total compensation of employees 1,115,428 1,045,591

Averagenumberofemployees 3,638 3,778

4. Goods and services

Note 2016/17 2015/16R’000 R’000

Administrativefees 199 428Advertising 2,267 5,486Minor assets 4.1 1,680 2,387Bursaries(employees) 2,802 1,917Catering 3,982 5,241Communication 13,961 12,227Computerservices 4.2 29,474 29,734Consultants:Businessandadvisoryservices 137,486 116,012Infrastructure and planning services 51,933 63,009Laboratory services 146 240Legal services 2,270 7,245Contractors 1,053,973 1,087,507Auditcost–external 4.3 9,732 13,276Fleet services 65,695 80,671Inventory 4.4 5,320 36,631Consumables 4.5 11,972 9,441Operating leases 227,768 229,826Property payments 4.6 210,927 199,222Rental and hiring 38,962 43,572Travel and subsistence 4.7 70,932 89,604Venues and facilities 2,576 4,450Training and development 9,751 14,801Other operating expenditure 4.8 8,162 4,695Total 1,961,970 2,057,622


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4.1 Minor assets

Note 2016/17 2015/164 R’000 R’000

Tangible assets 1,680 2,387Machineryandequipment 1,680 2,387

Total 1,680 2,387

4.2 Computer services

Note 2016/17 2015/164 R’000 R’000

SITAcomputerservices 20,850 24,558External computer service providers 8,624 5,176Total 29,474 29,734

4.3 Audit cost - external

Note 2016/17 2015/164 R’000 R’000

Regularity audits 9,732 13,276Total 9,732 13,276

4.4 Inventory

Note 2016/17 2015/164 R’000 R’000

Clothingmaterialandaccessories 1,981 4,824Materials and supplies 3,339 31,807Total 5,320 36,631

4.5 Consumables

Note 2016/17 2015/164 R’000 R’000

Consumablesupplies 7,168 3.917Household supplies 1,205 1,756Other consumables 5,963 2,161

Stationery,printingandofficesupplies 4,804 5,524Total 11,972 9,441


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4.6 Property payments

Note 2016/17 2015/164 R’000 R’000

Municipal services 77,314 75,417Property management fees 93,646 78,278Property maintenance and repairs 39,967 45,527Total 210,927 199,222

4.7 Travel and subsistence

Note 2016/17 2015/164 R’000 R’000

Local 70,932 89,604Total 70,932 89,604

4.8 Other operating expenditure

Note 2016/17 2015/164 R’000 R’000

Professionalbodies,membershipandsubscriptionfees 321 177Resettlement costs 1,297 1,177Other 6,544 3,341Total 8,162 4,695

5. Interest and Rent on Land

Note 2016/17 2015/16R’000 R’000

Interest paid 1,477 4,649Total 1,477 4,649

6. Paymentsforfinancialassets

Note 2016/17 2015/166.1 R’000 R’000

Debts written off 1,970 811Total 1,970 811

6.1 Debts written off

Note 2016/17 2015/166. R’000 R’000

Other debt written off 1,970 811Total debt written off 1,970 811


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7. Transfers and subsidies

Note 2016/17 2015/16R’000 R’000

Provinces and municipalities Annex 1A 286,429 231,369Households Annex 1G 34,439 29,479Total 320,868 260,848

8. Expenditure for capital assets

Note 2016/17 2015/16R’000 R’000

Tangible assets 1,171,016 978,562Buildingsandotherfixedstructures 33 1,138,428 940,890Machineryandequipment 31 32,588 37,672

Total 1,171,016 978,562

8.1 Analysis of funds utilised to acquire capital assets – 2016/17

Voted funds TotalR’000 R’000

Tangible assets 1,171,016 1,171,016Buildingsandotherfixedstructures 1,138,428 1,138,428Machineryandequipment 32,588 32,588

Total 1,171,016 1,171,016

8.2 Analysis of funds utilised to acquire capital assets – 2015/16

Voted funds TotalR’000 R’000

Tangible assets 978,562 978,562Buildingsandotherfixedstructures 940,890 940,890Machineryandequipment 37,672 37,672

Total 978,562 978,562

8.3 Finance lease expenditure included in expenditure for capital assets

Note 2016/17 2015/16R’000 R’000

Tangible assetsMachineryandequipment 17,187 20,876

Total 17,187 20,876


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9. Cash and cash equivalents

Note 2016/17 2015/16

R’000 R’000

ConsolidatedPaymasterGeneralAccount 17,403 21,456

Total 17,403 21,456

10 Prepayments and Advances

Note 2016/17 2015/16R’000 R’000

Advancespaid 10.1 6,783 9,002Total 6,783 9,002

10.1 Advances paid

Note 2016/17 2015/1610, Annex 8A R’000 R’000

Public entities 6,783 9,002Total 6,783 9,002

11. Receivables

2016/17 2015/16R’000 R’000 R’000 R’000 R’000 R’000

Note Current Non-Current Total Current Non-

Current Total

Claimsrecoverable 11.1 9,948 419 10,367 3,585 251 3,836Recoverable expenditure 11.2 430 - 430 1,038 - 1,038

Staff debt 11.3 1,415 2,327 3,742 1,132 4,428 5,560Other debtors 11.4 35,764 - 35,764 33,517 - 33,517Total 47,557 2,746 50,303 39,272 4,679 43,951

11.1 Claims recoverable

Note 2016/17 2015/1611

Annex 4R’000 R’000

Nationaldepartments 2,280 3,511Provincial departments 8,087 325Total 10,367 3,836

11.2 Recoverableexpenditure(disallowanceaccounts)

Note 2016/17 2015/1611 R’000 R’000

Salary recoverable expenditure 430 1,038Total 430 1,038


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11.3 Staff debt

Note 2016/17 2015/1611 R’000 R’000

Staff Debtors 3,742 5,560Total 3,742 5,560

11.4 Other debtors

Note 2016/17 2015/1611 R’000 R’000

Salary control accounts 263 311IDTSavingsClub–EPWPContractors 35,501 33,206Total 35,764 33,517

12. Voted funds to be surrendered to the Revenue Fund

Note 2016/17 2015/16R’000 R’000

Opening balance 33,348 243,493Transfer from statement of financial performance (asrestated) 23,130 33,348

Votedfundsnotrequested/notreceived 1.1 - -Paid during the year (33,348) (243,493)Closing balance 23,130 33,348

13. Departmental revenue and NRF receipts to be surrendered to the Revenue Fund

Note 2016/17 2015/16R’000 R’000

Opening balance 2,255 5,869Transfer from Statement of Financial Performance - 706Own revenue included in appropriation 30,706 25,111Paid during the year (31,606) (29,431)Closing balance 1,355 2,255

14. Payables – current

Note 2016/17 2015/16R’000 R’000

Advancesreceived 14.1 12,566 4,942Clearingaccounts 14.2 289 1Other payables 14.3 37,149 33,863Total 50,004 38,806

14.1 Advances received

Note 2016/17 2015/16R’000 R’000

Nationaldepartments Annex 8B 11,031 2,507Provincial departments Annex 8B 1,535 2,435Total 12,566 4,942


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14.2 Clearing accounts

Note 2016/17 2015/16R’000 R’000

ClearingAccounts 289 1Total 289 1

14.3 Other payables

Note 2016/17 2015/16R’000 R’000

Payables to other private enterprises 35,501 33,206SalaryControlAccounts 1,648 657Total 37,149 33,863

15. Netcashflowavailablefromoperatingactivities

Note 2016/17 2015/16R’000 R’000

NetsurplusasperStatementofFinancialPerformance 23,130 34,054Addbacknoncash/cashmovementsnotdeemedoperating activities 1,130,602 760,536

(Increase)/decreaseinreceivables–current (6,352) 5,007Increase in prepayments and advances 2,219 31,759Increase in payables – current 11,198 2,023Proceeds from sale of capital assets 2.2 (13,231) (9,002)Expenditure on capital assets 1,171,016 978,562Surrenders to Revenue Fund (64,954) (272,924)Own revenue included in appropriation 2 30,706 25,111

Netcashflowgeneratedbyoperatingactivities 1,153,732 794,590

16. Reconciliationofcashandcashequivalentsforcashflowpurposes

Note 2016/17 2015/16R’000 R’000

ConsolidatedPaymasterGeneralaccount 17,403 21,456Total 17,403 21,456


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17. Contingent liabilities and contingent assets17.1 Contingent liabilities

Note 2016/17 2015/16R’000 R’000

Liable to NatureHousing loan guarantees Employees Annex 3A 66 66Claimsagainstthedepartment Annex 3B 336,942 316,291Intergovernmentalpayables(unconfirmedbalances) Annex 5 1,535 4,942

Other Annex 3B 43,944 21,587Total 382,487 342,886

Other consists of:

DisputedAccounts-GeneralCreditorsofR16000(2015/16:R16000):Thesearesupplieraccountsthat•remain unpaid due to disputes with service providers.

Municipalities-disputedaccountsofR36625000(2015/16R19495000):Includedinthisaccountare•disputed charges on municipal services rendered to client Departments as well as properties whose custodyisyettobeverified.CampingAllowancesofR1474000(2015/16R1474000):Thisbalancerelatestoamountspossiblyowedtoemployeesforcampingallowances.Currentlytheamountisdisputedand has been disclosed as contingent.

Pendinginvestigations–ASIDIpayments:Thisamountrelatestopaymentsunderinvestigation,•amountingtoR5281000(2015/16Nil).

EPWPHouseholdContractors(SouthAfricanPostOffice)unclaimedvouchersofR548000(2015/16•R602000).ThisamountrelatestothevoucherswhichtheEPWPemployeeshavenot/collected.IntermsoftheagreementwithSAPOthemoniesforexpiredvouchersshouldbetransferredintotheaccountofthebeneficiary,howeverthisdoesnottakeplaceasthemoneynotcollectedisutilisedforthenextmonth’spayments and so forth. Therefore there is a possibility that the EPWP employee may collect the amount at some date in the future from DRPW.

There is a possibility that the Department may need to make transfers to various municipalities which relates to amounts for rates charged by municipalities on properties built on unsurveyed rural land. The amount of the possible obligation for unsurveyed land and disputed accounts cannot be measured with sufficient reliability and therefore the amount has not been included in the contingent liability balance.

17.2 Contingent assets

Note 2016/17 2015/16R’000 R’000

Nature of contingent assetOSD 15,292 14,2972nd & 3rdNotches 337 337

Total 15,629 14,634


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OSD -These are amounts to be recovered from employees who were overpaid in current and prior years.

Interest is not charged on amounts due from employees who are still in service. For ex-employees interest is only charged after notification of the amount due and payable.

Payment of back pay - 2nd & 3rd Notch overpayments to be recovered:

The overpayment was finalised and formally accepted by the Department therefore the balance these debts are reflected in the staff debt register. There are however still 3 cases which are being disputed which are reflected here as contingent. These are currently being resolved with internal legal counsel and HR.

18. Commitments

Note 2016/17 2015/16

R’000 R’000

Current expenditure

Approvedandcontracted 1,154,840 1,212,522

Approvedbutnotyetcontracted 36,730 11,633

1,191,570 1,224,155

Capital expenditure

Approvedandcontracted 1,330,865 1,961,408

Approvedbutnotyetcontracted 178,164 64,386

1,509,029 2,025,794

Total Commitments 2,700,599 3,249,949

Due to the nature of capital projects in the Department, the majority of capital projects are multi-year commitments.

19. Accruals and payables not recognised19.1 Accruals

2016/17 2015/16R’000 R’000

Listed by economic classification

30 Days 30+ Days Total Total

Goodsandservices 477,739 - 477,739 169,152Capitalassets 7,063 7,063 2,260Other 1,850 71,191 73,041 52,313Total 486,652 71,191 557,843 223,725

Note 2016/17 2015/16R’000 R’000

Listed by programme levelAdministration 33,826 18,051Public Works 52,266 14,942Roads Infrastructure 358,054 96,474CommunityBasedPublicWorksProgram 113,697 94,258Total 557,843 223,725


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19.2 Payables not recognised

2016/17 2015/16R’000 R’000

Listedbyeconomicclassification30 Days 30+ Days Total Total

Goodsandservices 66,594 11,659 78,253 143,507Capitalassets 3,685 3,685 3,000Other 201 1,001 1,202 -Total 70,480 12,660 83,140 146,507

Note 2016/17 2015/16R’000 R’000

Listed by programme levelAdministration 24,638 15,018Public Works 26,566 27,829Roads Infrastructure 30,552 99,250CommunityBasedPublicWorksProgram 1,384 4,410Total 83,140 146,507

20. Employeebenefits

Note 2016/17 2015/16

R’000 R’000Leave entitlement 52,252 47,540Servicebonus(Thirteenthcheque) 28,829 27,689Performance awards 17,668 15,693Cappedleavecommitments 120,718 128,279Other 3,140 2,078Total 222,607 221,279

ThevalueofnegativeleaveentitlementwasR595000and478days(2015/16R750000and739days).

Thevalueofnegativecapped leavecommitmentwasR389000and503days (2015/16R576000and820days).

ThePerformanceAwardsprovisionhasbeencalculatedat1.5%oftheCoEbudget,thisisanallowedalternativepertheNationalTreasuryreportingguidelines.

OtherrelatestoLongServiceAwards.


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21. Lease commitments21.1 Operating leases commitment

2016/17Buildings and other

fixedstructuresR‘000

TotalR‘000

Notlaterthan1year 116,497 116,497Later than 1 year and not later than 5 years 214,642 214,642Total lease commitments 331,139 331,139

2015/16Buildings and other

fixedstructuresR’000

TotalR’000


Operating leases consist of various lease agreements for premises leased for its own use and by other Government institutions.

21.2 Finance leases commitment

2016/17Machinery and

equipmentR‘000

TotalR‘000


2015/16Machinery and

equipmentR‘000

TotalR‘000


Finance leases consists of the leasing of cell phones, photocopiers and fleet vehicles.

22. Accrued departmental revenue

Note 2016/17 2015/16R’000 R’000

Sales of goods and services other than capital assets 43,168 28,471Sales of capital assets 2,109 2,109Other 14,916 15,339Total 22.1 60,193 45,919

Othercomprisesof:ASIDIManagementfee,supplieroverpaymentsandIDTRoadsinterestofRnil(2015/16R1790000)Management feepaid toASIDI (AcceleratedSchools InfrastructureDelivery Initiative)with theDepartmentofBasicEducation–R3,961,000(2015/16R3286000).Supplieroverpaid–R10,898,000(2015/16R10262000).RevenueshortfallonsaleofcapitalassetsR6,000(2015/16Nil)andIrregularExpenditureandFruitlessandWastefulExpendituretoberecoveredofR51,000(2015/16Nil).


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22.1 Analysis of accrued departmental revenue

Note 2016/17 2015/1622 R’000 R’000

Opening balance 45,919 29,046Less: amounts received 13,709 12,365Add:amountsrecognised 27,983 29,238Less:Amountswritten-off/reversedasirrecoverable - -Closing balance 60,193 45,919

22.2 Impairment of accrued departmental revenue

Note 2016/17 2015/16R’000 R’000

Estimate of impairment of accrued departmental revenue 38,126 23,860Total 38,126 23,860

23. Irregular expenditure23.1 Reconciliation of irregular expenditure

Note 2016/17 2015/16R’000 R’000

Opening balance 3,102,419 3,195,656Prior period error - -Asrestated 3,102,419 3,195,656Add:Irregularexpenditure–relatingtoprioryear - (17,410)Add:Irregularexpenditure–relatingtocurrentyear 23.2 341,122 659,579Less:Amountscondoned 23.3 (1,802,734) (735,406)Closing balance 1,640,807 3,102,419

Analysis of awaiting condonation per age classificationCurrentyear 23.2 341,122 659,579Prior years 1,299,685 2,442,840Total 1,640,807 3,102,419

23.2 Details of irregular expenditure – current year

Incidents Disciplinary steps taken/criminal proceedings2016/17

R’000GoodsandServices Under investigation 208,445Capital Under investigation 13,629ConsultancyFees Under investigation 59,336LeaseAgreements Under investigation 59,675CompensationofEmployee Under investigation 37 Total 341,122


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23.3 Details of irregular expenditure condoned

Incident Condonedby(condoningauthority) 2016/17R’000

GoodsandServices NationalTreasury 255,390Capital NationalTreasury 488,230Consultants NationalTreasury 40,882Operating leases NationalTreasury 1,018,232Total 1,802,734

24. Fruitless and wasteful expenditure24.1 Reconciliation of fruitless and wasteful expenditure

Note 2016/17 2015/16R’000 R’000

Opening balance 9,196 3,573Fruitless and wasteful expenditure – relating to current year 24.3 1,605 5,623

Less:Amountsresolved (222) -Fruitless and wasteful expenditure awaiting resolution 24.2 10,579 9,196

24.2 Analysisofawaitingresolutionpereconomicclassification

Note 2016/17 2015/16R’000 R’000

Current 24 10,579 9,196Total 10,579 9,196

24.3 Analysis of current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminal proceedings 2016/17R’000

Generalincidents Under Investigation 85Interest Under Investigation 1,477Litigations Under Investigation 43Total 1,605

25. Related party transactions

In kind goods and services provided/received

The Departments below occupy buildings owned or leased by this Department without paying for this service:

EasternCapeDepartmentsofEconomicDevelopment&EnvironmentAffairs;•EasternCapeDepartmentsofEducation;•EasternCapeDepartmentsofHealth;•EasternCapeDepartmentsofHumanSettlements;•EasternCapeDepartmentsofLocalGovernment&TraditionalAffairs;•EasternCapeDepartmentsofRuralDevelopment&AgrarianReform;•EasternCapeDepartmentsofSafety&Liaison;•EasternCapeDepartmentsofSocialDevelopment;•EasternCapeDepartmentsofSportRecreationArts&Culture;•EasternCapeDepartmentsofTransport;•EasternCapeOfficeofthePremier;and•EasternCapeProvincialPlanning&Treasury.•


212


Therearemembersofkeymanagementthatarereflectedasdirectors/membersinCompanies/CloseCorporationsinCIPChowevernotransactionstookplacebetweentheseentitiesandtheDepartment.

26. Key management personnel

No. of Individuals 2016/17 2015/16

R’000 R’000Politicalofficebearers 1 1,902 1,902Officials: -

Level 15 to 16 4 6,091 4,617Level14(incl.regionaldirectorsifatalowerlevel) 17 16,568 14,337

Family members of key management personnel - 119Total 24,561 20,975

KeymanagementincludesRegionalSeniorManagersatlevel13.Numberofindividualsrefersto2016/2017only.Forprioryear,referto2015/2016financialstatements.

27. Public Private PartnershipThePPPiscurrentlyregisteredintermsofNationalTreasuryhoweverthePPPwasreactivatedinAugust2015.DuringtheperiodunderreviewNationalTreasurygrantedapprovalIIofthePPP.TransactionadvisorshavebeenappointedfortheProjectInitiationandManagementoftheBhishoPrecintProject.Constructionontheprecinctisexpectedtocommenceduringthe2017/18financialyear.

28. Impairment

Note 2016/17 2015/16R’000 R’000

Staff Debtors 2,571 4,623Interdepartmental receivables 311 99Total 2,882 4,722

29. Provisions

Note 2016/17 2015/16R’000 R’000

Balances under investigation 46,255 39,992Interest accrued but not paid 4,990 3,335Total 51,245 43,327

Provisions - Municipal Finance: Balances under investigation as well as interest accrued but not paid at year endareclassifiedasProvisions.TheseareamountsbilledbyMunicipalitiesagainstpropertiesownedbytheDepartment but there is uncertainty either on the timing/amount thereof.


213


29.1 Reconciliation of movement in provisions – 2016/17

Balances under

investigation

Interest accrued but

not paidTotal

R’000 R’000 R’000Opening balance 39,992 3,335 43,327Increase in provision 6,263 1,655 7,918Closingbalance 46,255 4,990 51,245

Reconciliation of movement in provisions – 2015/16

Balances under

investigation

Interest accrued but

not paid

Total

R’000 R’000 R’000Opening balance 17,924 3,309 21,233Increase in provision 22,068 26 22,094Closingbalance 39,992 3,335 43,327

These are amounts billed by Municipalities against properties owned by the Department but there is uncertainty either on the timing/amount thereof.

30. Non-adjusting events after reporting date

Transfer of roads functionOn the 23rdofMay2017thePremieroftheEasternCapeProvincesignedaproclamationtransferringtheroadsfunctionfromtheDepartmentofRoadsandPublicWorkstotheDepartmentofTransportwitheffectfrom1April2018.AtthedateofpreparingthesefinancialstatementstheDepartmentwasunabletomakeanestimateoftheexactfinancialeffectsasanexercisestillneedstobeundertakentodeterminethis.

31. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Value adjustments Additions Disposals Closing

BalanceR’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 453,143 925 19,015 13,005 460,078Transport assets 142,345 374 - 5,644 137,075Computerequipment 27,601 (38) 17,688 747 44,504Furnitureandofficeequipment 24,772 (35) 557 223 25,071Othermachineryandequipment 258,425 624 770 6,391 253,428

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 453,143 925 19,015 13,005 460,078


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Movable tangible capital assets under investigationIncluded in the above total of the movable tangible capital assets per the asset register are assets that are under investigationwhichhavenotbeenverifiedasat31May2017:

Number ValueR’000

Total 709 11,141Machineryandequipment 709 11,141

Theabove709assets(valueR11141000)werenotlocatedduringthe2017annualphysicalverification(2015/16:247assetsofR3,888,255.Thesehavenotbeenlocatedforthepast2physicalverificationsarebeingconsideredfor write off.

31.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Cash Non-cash

(CapitalWork in

Progress current

costs and finance

lease payments)

Received current, not

paid(Paid

current year, received

prioryear) TotalR’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 32,588 - (17,187) 3,614 19,015Transport assets 8,087 - (8,087) - -Computerequipment 14,088 - - 3,600 17,688Furnitureandofficeequipment 543 - - 14 557Othermachineryandequipment 9,870 - (9,100) - 770

TOTAL ADDITIONS TO MOVABLE 32,588 - (17,187) 3,614 19,015

31.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Sold for cash

Non-cash disposal

Total disposals

Cash Received

ActualR’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 11,582 1,423 13,005 13,231Transport assets 5,644 - 5,644 1,874Computerequipment 49 698 747 -Furnitureandofficeequipment 12 211 223 -Othermachineryandequipment 5,877 514 6,391 11,357TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 11,582 1,423 13,005 13,231


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31.3 Movement for 2015/16

MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Opening balance

Prior period error Additions Disposals

Closing Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 458,282 - 18,071 23,210 453,143Transport assets 145,123 - 7,104 9,882 142,345Computerequipment 22,772 - 5,790 961 27,601Furnitureandofficeequipment 21,766 - 3,622 616 24,772Othermachineryandequipment 268,621 - 1,555 11,751 258,425

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 458,282 - 18,071 23,210 453,143

31.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AT 31 MARCH 2017Machinery

and equipment Total

R’000 R’000Opening balance 33,721 33,721Valueadjustments (1,869) (1,869)Additions 1,821 1,821Disposals 850 850TOTAL MINOR ASSETS 32,823 32,823

NumberofR1minorassets 9,118 9,118Numberofminorassets 20,245 20,245TOTAL NUMBER OF MINOR ASSETS 29,363 29,363

Included in additions forminor assets isAccruals ofR141 000 and cash additions for the year amounting R1 680 000. Onminorassets4491(valueR4270000)assetswerenotlocatedduringthe2017annualphysicalverification.1890 (valueR1903000) of thesehavenot been located in thepast 2physical verificationsandarebeingconsidered for write off.


216


MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AT 31 MARCH 2016Machinery

and equipment Total

R’000 R’000Opening balance 33,383 33,383Prior period error - -Additions 2,440 2,440Disposals 2,102 2,102TOTAL MINOR ASSETS 33,721 33,721

NumberofR1minorassets 11,538 11,538Numberofminorassetsat 22,286 22,286TOTAL NUMBER OF MINOR ASSETS 33,824 33,824

31.5 Movable Capital Assets Written off

MOVABLE CAPITAL ASSETS WRITTEN OFF – 31 MARCH 2017Machinery

and equipment Total

R’000 R’000Assetswrittenoff 466 466TOTAL ASSETS 466 466

31.6 S42 Movable Capital Assets

ASSETS SUBJECT TO TRANSFER IN TERMS OF S42 OF THE PFMA – 31 MARCH 2017

No. of Assets

Machinery and

equipment TotalR’000 R’000

MajorAssets 5 (79) (79)MinorAssets 172 (18) (18)TOTAL ASSETS (97) (97)

ASSETS SUBJECT TO TRANSFER IN TERMS OF S42 OF THE PFMA – 31 MARCH 2016Machinery

and equipment

Total

R’000 R’000MajorAssets 494 494MinorAssets 1,595 1,595TOTAL ASSETS 2,089 2,089


217


32 Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Value adjustments Additions Disposals

Closing Balance

R’000 R’000 R’000 R’000 R’000Software 3,005 - 1,357 1 4,362TOTAL INTANGIBLE CAPITAL ASSETS 3,005 - 1,357 - 4,362

Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Cash Non-cash

(Developmentwork-in-

progress current costs)

Received current, not paid(Paid

current year, received prior

year TotalR’000 R’000 R’000 R’000 R’000

SOFTWARE - - - 1,357 1,357

TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS

- - - 1,357 1,357

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Opening balance

Value adjustments

Additions DisposalsClosing Balance

R’000 R’000 R’000 R’000 R’000Software 3,005 3,005TOTAL INTANGIBLE CAPITAL ASSETS 3,005 3,005


218


33. Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Value adjustments Additions Disposals

Closing Balance

R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 828,680 - 6,192,822 - 7,021,502

Dwellings 18,062 - 336,829 - 354,891Non-residentialbuildings 809,175 - 5,620,420 - 6,429,595Otherfixedstructures 1,443 - 235,573 - 237,016

HERITAGE ASSETS - - 10,141 - 10,141 Heritage assets - - 10,141 - 10,141

LAND AND SUBSOIL ASSETS 64 - 436,774 - 436,838 Land 64 - 436,774 - 436,838

CapitalWork-in-Progress(effective1April2016) - 289,861 201,372 (134,193) 357,040

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 828,744 289,861 6,841,109 (134,193) 7,825,521

33.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Cash Non-cash

(CapitalWork in

Progress current costs)

Received current, not

paid(Paid

current year, received

prioryear) TotalR’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES 1,138,428 6,192,822 (1,138,428) - 6,192,822

Dwellings - 336,829 - - 336,829Non-residentialbuildings 201,372 5,620,420 (201,372) - 5,620,420Otherfixedstructures 937,056 235,573 (937,056) - 235,573

HERITAGE ASSETS - 10,141 - - 10,141 Heritage assets - 10,141 - - 10,141

LAND AND SUBSOIL ASSETS - 436,774 - - 436,774

Land - 436,774 - - 436,774TOTAL ADDITIONS TO IMMOVABLE 1,138,428 6,639,737 (1,138,428) 6,639,737


219


33.2 Disposal

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017

Sold For Cash

DisposalsNon-cashDisposals

Total disposals

Cash received

ActualR’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES - - - -Non-residentialbuildings - - - -

LAND AND SUBSOIL ASSETS - - - -Land - - - -

TOTAL DISPOSAL OF IMMOVABLE - - - -

33.3 Movement for 2015/16

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Opening balance

Prior period error Additions Disposals

Closing balance

R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES

595,388 - 234,086 794 828,680

Dwellings 12,365 6,491 794 18,062Non-residentialbuildings 581,580 227,595 - 809,175Otherfixedstructures 1,443 - - 1,443

LAND AND SUBSOIL ASSETS 64 - - - 64Land 64 - - 64

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 595,452 - 234,086 794 828,744

33.4 Immovable assets valued at R1

IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2016Buildings and other

fixedstructures

Heritage assets

Land and subsoil assets Total

R R R R

R1 Immovable assets 2,702 92 800 3,594TOTAL 2,702 92 800 3,594


220


33.5 S42 Immovable assets

Assets subjected to transfer in terms of S42 of the PFMA – 2016/17

Number of assets

Value of assetsR’000

BUILDINGS AND OTHER FIXED STRUCTURES 10 6,428Dwellings 10 6,428

LAND AND SUBSOIL ASSETS 421 91,909Land 421 91,909

TOTAL 431 98,337

Assets subjected to transfer in terms of S42 of the PFMA – 2015/16

Number of assets

BUILDINGS AND OTHER FIXED STRUCTURES 54Dwellings 51Non-residentialbuildings 3

LAND AND SUBSOIL ASSETSLand -

TOTAL 54


221


33.6 Immovable assets additional information

2016/17 2015/16Note

Unsurveyed landa) Estimated completion date 10 – 12 years

Annexure 9 Area Area

See explanatory notes

Properties deemed vestedb) Annexure 9 Number NumberLand parcels 4,654 4,535FacilitiesSchools 2,676 2,584Clinics 286 260Hospitals 77 81Officebuildings 95 97Dwellings 522 445Storage facilities 13 14Other 985 1,054

Facilities on unsurveyed c)land

Duration of use Annexure 9 Number Number

Schools 1,148 1,216Clinics 196 208Hospitals 4 4Officebuildings 17 16Dwellings 9 11Storage facilities 4 6Other 48 50

Facilities on right to use d)land

Duration of use Annexure 9 Number Number

Schools 510 463Clinics 138 98Hospitals 30 22Officebuildings 45 42Dwellings 178 173Storage facilities 6 6Other 149 138Agreement of e)custodianship

Annexure 9 Number Number

Land parcels - -Other - -


222


1. Unsurveyed land - Area of unsurveyed land cannot be determined as the land has not been surveyed in order to have an area (extent) calculated. The only known variable is the number of properties to be surveyed.

The estimated time of completion of the process of surveying is managed by the Office of the Surveyor General (SG). The Province pro-actively appoint land surveyors to survey provincial state domestic functions (e.g. schools, colleges, etc.). The approval of the diagrams resides with the SG Office. Due to survey challenges (e.g. old order rights) of underlying land in the former homelands, the survey process in areas of underlying quitrents cannot be implemented.

34. Agent-principal arrangements34.1 Department acting as the principal

2016/17 2015/16R’000 R’000

Fees PaidSouthAfricanPostOffice(SAPO):EPWPHouseholdContractors 19,330 17,309CoegaDevelopmentCorporation(CDC) - 1,070IndependentDevelopmentTrust(IDT):Roads 531 3,310Tsolwana Local Municipality - 805Total 19,861 22,494


223


Nature of the activities:a)

The Department uses CDC, IDT: Roads and SANRAL as implementing agents for:

a) Facilitation of the delivery of infrastructure through the provision of expertise and specialist competencies; and

b) Provision of contract development programmes and providing support and guidance to emerging contractors.

The Department uses SAPO as an implementing agent for:

Facilitation of the payment of the EPWP beneficiaries. a)

The Department uses IDT : Savings as an implementing agent for:

Administration of the savings of the EPWP beneficiaries.

The National Department of Public Works is acting as an agent for managing the building low cost bridges on behalf of the Department.

Various municipalities are used as implementing agents to maintain roads on the Department’s behalf. The Municipalities claim monies back from the Department on an invoice basis.

Apart from the expertise provided, the Department has entered into these agreements to ensure that service delivery does take place and to circumvent capacity constraints.

CDC, IDT : Roads and SANRAL - On the date of termination, all amounts not contractually committed or paid out to the Programme from the Agent’s bank account, on demand, be reimbursed to the DRPW, net of normal banking costs and the rights and obligation in terms of any Agreement entered into by the Agent, shall revert to the DRPW.

Resources that are under the custodianship of the agents:

Some of the agents have receivable balances at year end which are detailed in the payables and receivables reconciliation below. The Department owes Household Contractors (HHC’s): Savings R 72 912 000 (2015/16: R 52 182 000) which is disclosed as part of the accruals.

IDT: Savings have a receivable balance of R35 501 000 (2015/16: R33 206 000) as the amount is due to the Department from IDT however there is also a payable balance of R35 501 000 (2015/16: R33 206 000) as the Department is liable to the contract workers for the same amount. This is reflected on the Statement of Financial Position.

34.2 Department acting as the agent

2016/17 2015/16R’000 R’000

Fees ReceivedEasternCapeDepartmentofEducation(IDA) - -NationalDepartmentofBasicEducation(ASIDI) - -Total - -


224


Nature of the activities:a)

The Department is acting as an agent for the National Department of Basic Education (ASIDI) and Eastern Cape Department of Education (IDA) to address the backlogs in the eradication of inappropriate school structures and in the provision of basic services to schools that do not have such services.

The Department also acted as an agent for the Eastern Cape Department of Education in the purchase of a property in Grahamstown.

Apart from the expertise provided, the Department has entered into these agreements to ensure that service delivery does take place and to circumvent capacity constraints.

Beneficiaries:b)

The ultimate beneficiaries of the agreement are SMME’s, consultants and communities. The projects are where possible assisting with job creation in the local communities.

Fees received:c)

In terms of the agreements with the above, the Department charge management fee of 1.5% to Department of Basic Education (ASIDI). The Eastern Cape Department of Education (IDA) does not pay a management fees.

Management fees for ASIDI had not been received at year end and are thus included in the Accrued Departmental Revenue note at, R3 960 000 (2015/16 R 3 287 000).

34.3 Reconciliation of funds and disbursements – 2016/17

Name of principal entity Total funds received

Expenditure incurred

against fundsR’000 R’000

NationalDepartmentofBasicEducation(ASIDI) 54,316 (43,285)EasternCapeDepartmentofEducation(IDA) 690,646 (682,772)Total 744,962 (726,057)

The balance receivable / payable are disclosed as part of the interdepartmental payables and receivable annexures. No other assets belonging to other entities are held in the custody of the department. The schools which are being built during this project are reflected in the work in progress

34.4 Reconciliation of carrying amount of receivables and payables – 2016/17

Name of principal entityOpening balance

Less : Write-offs/

settlements/ waivers

Closing balance

R’000 R’000

IndependentDevelopmentTrust(Roads) 10,792 (4,009) 6,783IndependentDevelopmentTrust(Savings) 33,206 2,295 35,501NationalDepartmentofPublicWorks 246 - 246SAPostOffice 6,214 (616) 5,598ECDepartmentofEducation 100 7,774 7,874SANRAL 8,700 17,920 26,620

Total 59,258 23,364 82,622


225


Name of principal entityOpening balance

Expenses incurred on

behalf of principal

Closing balance

R’000 R’000

NationalDepartmentofBasicEducation(ASIDI) (1,723) (9,308) (11,031)ECDepartmentofEducation(Properties) (2,435) 900 (1,535)

Total (4,158) (8,408) (12,566)


226


35.

STAT

EMEN

T O

F C

ON

DIT

ION

AL

GR

AN

TS R

ECEI

VED

GR

AN

T A

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CAT

ION

SPEN

T20

15/1

6

Nam

e of

Gra

nt

Div

isio

n of

R

even

ue

Act

/ Pr

ovin

cial

G

rant

sR

’000

Rol

l Ove

rsR

’000

DO

RA

Adj

ust-

men

tsR

’000

Oth

er A

d-ju

stm

ents

R’0

00

Tota

l Av

aila

ble

R’0

00

A

mou

nt

rece

ived

by

dep

art-

men

tR

’000

Am

ount

sp

ent b

y de

part

-m

ent

R’0

00

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er

/(over

-spending

)R

’000

% o

f av

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ble

fund

s sp

ent b

y D

ept

R’0

00

Div

isio

n of

R

even

ue

Act

R’0

00

Am

ount

sp

ent b

y de

part

-m

ent

R’0

00

PRMGTransport/EP

WP

1,279,725

--

41,104

1,320,829

1,320,829

1,306,082

14,747

99%

1,366,947

1,366,913

EPWPIncentiveGrant

52,848

--

-52,848

52,848

52,848

-100%

53,607

53,606

1,33

2,57

3-

-41

,104

1,37

3,67

71,

373,

677

1,35

8,93

014

,747

1,42

0,55

41,

420,

519

TheDepartmentcertifiesthatalltransferintermsoftheDivisionoftheRevenueActweredepositedintotheprimarybankaccountoftheProvince.

Theunderexpenditureisduetothelateawardingofdisasterprojects(DR08121,DR08120,DR08116,DR08245,DR08119,DR08100)re-advertised(D

R08017andDR08079)

duetonon-re

sponsivenessofbidderstotheconditionsofthetenderaswellasthedelaysincom

pletionofawardedproject(DR08125)duetocom

munityproteststhatresulted

instoppageofwork.A

nam

ountofR

14,071millionhasbeenrequestedtoberolledover.

36.

Cha

nges

in e

stim

ate

Valu

e de

rived

usi

ng th

e or

igin

al e

stim

ate R

Valu

e de

rived

usi

ng th

e am

ende

d es

timat

e R

R-v

alue

impa

ct o

f cha

nge

in e

stim

ate R

ImmovableAssets

3,594

5,906,857,872

5,906,854,278

The

MC

S re

quire

s th

at R

1 as

sets

be

re-m

easu

red

at fa

ir va

lue.

Thi

s ha

s be

en d

one

usin

g th

e M

CS

and

SectoralG

uide:AccountingandReportingforImmovableAssets.


227


37.

Prio

r per

iod

erro

rs

Cor

rect

ion

of p

rior p

erio

d er

rors

20

15/1

620

15/1

620

15/1

6R

’000

R’0

00R

’000

Com

mitm

ents

Prev

ious

ly D

iscl

osed

Am

ende

d D

iscl

osur

eN

et E

ffect

Cur

rent

exp

endi

ture

1,05

5,90

0 1,

224,

155

168,

255

App

rove

d an

d co

ntra

cted

1,011,680

1,212,522

200,842

App

rove

d bu

t not

yet

con

tract

ed44,220

11,633

(32,587)

Cap

ital E

xpen

ditu

re2,

219,

569

2,02

5,79

4 (193,775)

App

rove

d an

d co

ntra

cted

2,140,278

1,961,408

(178,870)

App

rove

d bu

t not

yet

con

tract

ed79,291

64,386

(14,905)

3,27

5,46

9 3,

249,

949

(25,520)

Inthecurre

ntyearanerrorintheprioryearcom

mitm

entswasdetected.Theerro

rwascorrectedandtheneteffectoftheadjustmentisreflectedabove.


228


2015

/16

2015

/16

2015

/16

R’0

00R

’000

R’0

00A

ccru

als

Prev

ious

ly D

iscl

osed

Am

ende

d D

iscl

osur

eN

et E

ffect

Goodsandservices

121,503

169,152

47,649

Capitalassets

179

2,260

2,081

Oth

er

52,313

52,313

- To

tal

173,

995

223,

725

49,7

30

List

ed b

y pr

ogra

mm

e le

vel

Administration

16,851

18,051

1,200

Publ

ic W

orks

13,622

14,942

1,320

Tran

spor

t Inf

rast

ruct

ure

50,590

96,474

45,884

Com

munityBasedPublicW

orksProgram

92,932

94,258

1,326

173,

995

223,

725

49,7

30

Inthecurre

ntyearanerrorintheprioryearaccrualsandpayableswasdetected.Theerro



229


2015

/16

2015

/16

2015

/16

R’0

00R

’000

R’0

00Pa

yabl

es n

ot re

cogn

ised

Pre

viou

sly

Dis

clos

ed

Am

ende

d D

iscl

osur

e N

et E

ffect

Goodsandservices

142,875

143,507

632

Capitalassets

3,000

3,000

- To

tal

145,

875

146,

507

632

List

ed b

y pr

ogra

mm

e le

vel

Administration

14,989

15,018

29

Publ

ic W

orks

27,829

27,829

- Tr

ansp

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nfra

stru

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e99,059

99,250

191

Com

munityBasedPublicW

orksProgram

3,998

4,410

412

145,

875

146,

507

632

Inthecurre

ntyearanerrorintheprioryearaccrualsandpayableswasdetected.Theerro



230


Irreg

ular

Exp

endi

ture

2015

/16

R‘0

00Pr

evio

usly

Dis

clos

ed

2015

/16

R‘0

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men

ded

Dis

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ure

2015

/16

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00 N

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ffect

O

peni

ng b

alan

ce

3,195,656

3,195,656

- Add:Irregularexpenditure-relatingtoprioryear

- (17,410)

(17,410)

Add:Irregularexpenditure-relatingtocurrentyear

659,579

659,579

- Less:Currentyearamountscondoned

(735,406)

(735,406)

- C

losi

ng b

alan

ce

3,11

9,82

9 3,

102,

419

(17,410)

Analysisofawaitin

gcond

onationpera

geclassificatio

n659,579

659,579

- Currentyear

2,460,250

2,442,840

(17,410)

Prio

r yea

rs3,

119,

829

3,10

2,41

9 (17,410)

Tota

l

Inthecurre

ntyearanerrorintheprioryearirre

gularexpenditurewasdetected.Theerro



231


5.2.

8. A

nnex

ures

to th

e A

nnua

l Fin

anci

al S

tate

men

ts

AN

NEX

UR

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STAT

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T O

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HO

USE

HO

LDS

HO

USE

HO

LDS

TRA

NSF

ER A

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CAT

ION

EXPE

ND

ITU

RE

2015

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Adj

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tion

Act

Rol

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ustm

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ct

R’0

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R’0

00R

’000

R’0

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R’0

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ansf

ers

EmployeeLeaveGratuity

28,300

28,300

28,300

100%

25,089

Bursaries(Non-Employee)

6,069

6,069

6,069

100%

6,121

Claimsagainstthestate

7070

70100%

-

Tota

l34

,439

--

34,4

3934

,439

31,2

10

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

232


AN

NEX

UR

E 1K

STAT

EMEN

T O

F A

CTU

AL

MO

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LY E

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UR

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R G

RA

NT

GR

AN

T TY

PE

Apr

il20

16M

ay

2016

Jun

2016

Jul

2016

Aug

2016

Sep

2016

Oct

2016

Nov

2016

Dec

2016

Jan

2017

Feb

2017

Mar

2017

Tota

l

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

R’0

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’000

R’0

00R

’000

R’0

00PR

MG

77,618

116,483

147,921

124,872

132,580

125,045

236,123

78,506

141,723

3,600

101,190

20,421

1,306,082

EPW

P-

34,530

18,318

--

--

--

--

-52,848

Tota

l77

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151,

013

166,

239

124,

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132,

580

122,

705

236,

123

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600

101,

190

20,4

211,

358,

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233


AN

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Rev

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Clo

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ba

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R’0

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66-

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234


AN

NEX

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E 3B

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ilitie

s re

cove

rabl

e (Providedetails

hereun

der)

C

losi

ngB

alan

ce31

Mar

ch 2

017

R’0

00R

’000

R’0

00R

’000

R’0

00C

laim

s ag

ains

t the

dep

artm

ent

Lega

l Fee

s316,291

45,156

24,505

-336,942

Subt

otal

316,291

45,156

24,505

-336,942

Oth

erCam

pingAllowances

1,474

--

-1,474

SouthAfricanPostO

ffice(S

APO):EPW

PHouseholdContractors

602

-54

-54

8Tr

ansf

er to

Mun

icip

aliti

es:

Dis

pute

d ac

coun

ts19,495

17,130

--

36,625

Dis

pute

d ac

coun

ts –

gen

eral

cre

dito

rs16

--

-16

Pendinginvestigation–AS

IDIpayments

-5,281

--

5,281

Subt

otal

21,587

22,411

54-

43,944

TOTA

L337,878

67,567

24,559

-380,886


235


AN

NEX

UR

E 4

CLA

IMS

REC

OVE

RA

BLE

GO

VER

NM

ENT

ENTI

TY

Con

firmedbalance

outs

tand

ing

Uncon

firmedbalance

outs

tand

ing

Tota

l

31/0

3/20

1731

/03/

2016

31/0

3/20

1731

/03/

2016

31/0

3/20

1731

/03/

2016

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

Dep

artm

ent

EasternCape-D

epartmentofE

ducation-IDA

7,874

100

7,874

100

EasternCape–DepartmentofE

ducation

41-

41-

Empl

oyee

Hou

sing

Sch

eme

2,033

-2,033

-Ea

sternCape-D

epartmentofH

ealth

-11

1-

111

EasternCape-D

epartmentofH

umanSettlements

264

264

EasternCape-D

epartmentofTransport

-10

-10

GautengEducation

8080

8080

National-DepartmentofM

ineralResources

-3,218

-3,218

National–DepartmentofP

ublicW

orks–Pretoria

246

246

246

246

National-Hum

anSettlements

4747

4747

WesternCape-O

fficeofthePremier

2020

2020

TOTA

L10

,367

3,83

610

,367

3,83

6


236


ANNEXURE 5

INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY

Confirmedbalanceoutstanding

Unconfirmedbalanceoutstanding Total

31/03/2017 31/03/2016 31/03/2017 31/03/2016 31/03/2017 31/03/2016R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTSCurrentEasternCape–Departmentof Education - - 1,535 2,435 1,535 2,435

National–DepartmentofEducation–ASIDI 11,031 - - 2,507 11,031 2,507

Total Intergovernmental 11,031 - 1,535 4,942 12,566 4,942


237


ANNEXURE 6

INVENTORIES

INVENTORYNote Quantity 2016/17 Quantity 2015/16

R’000 R’000

Opening balance - 2,293 3,694Add:Additions/Purchases–Cash 5,320 36,631Add:Additions-Non-cash 16 312(Less):Issues (6,813) (38,344)Closing balance 816 2,293

The Department is unable to provide quantities due to the different units of measure used to arrive at the value of inventory. Inventory items are in kilograms, litres, metres and units amongst others. To include one unit of measure over another may prove to be misleading.


238


ANNEXURE 7

MOVEMENT IN CAPITAL WORK IN PROGRESS

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2017

Opening balance

Current Year Capital WIP

Completed Assets

Closing balance

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 289,861 201,372 (134,193) 357,040

Non-residentialbuildings 289,861 201,372 (134,193) 357,040

TOTAL 289,861 201,372 (134,193) 357,040

Age analysis on ongoing projects Number of projects 2016/17

Planned, construction

not started

Planned, construction

started

Total

R’000 0 to 1 year 5 7 158,7121to3year(s) 6 14 165,268 3 to 5 years - 7 33,060 Longer than 5 years - - - Total 11 28 357,040

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2016

Opening balance

Current Year Capital WIP

Completed Assets

Closing balance

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES

296,896 225,012 (232,046) 289,862

Dwellings 3,185 3,111 (6,296) -Non-residentialbuildings 293,711 221,901 (225,750) 289,862

TOTAL 296,896 225,012 (232,046) 289,862


239


ANNEXURE 8A

INTER-ENTITY ADVANCES PAID

ENTITY



31/03/2017 31/03/2016 31/03/2017 31/03/2016 31/03/2017 31/03/2016R’000 R’000 R’000 R’000 R’000 R’000

PUBLIC ENTITIESCurrentIndependent Development Trust (Roads)

- 9,002 6,783 - 6,783 9,002

Subtotal - 9,002 6,783 - 6,783 9,002

TOTAL - 9,002 6,783 - 6,783 9,002Current - 9,002 6,783 - 6,783 9,002Non-current - - - - - -


240


ANNEXURE 8B

INTER-ENTITY ADVANCES RECEIVED

ENTITY



31/03/2017 31/03/2016 31/03/2017 31/03/2016 31/03/2017 31/03/2016R’000 R’000 R’000 R’000 R’000 R’000

NATIONAL DEPARTMENTSCurrentNationalDepartmentofBasic Education

11,031 - - 2,507 11,031 2,507

Subtotal 11,031 - - 2,507 11,031 2,507

PROVINCIAL DEPARTMENTSCurrentEasternCape–Department of Education

- - 1,535 2,435 1,535 2,435

Subtotal - - 1,535 2,435 1,535 2,435

TOTAL 11,031 - 1,535 4,942 12,566 4,942Current 11,031 - 1,535 4,942 12,566 4,942Non-current - - - - - -


241


ANNEXURE 9

IMMOVABLE ASSETS ADDITIONAL DISCLOSUREThe immovable assets of the Department and its User Departments are recorded in the provincial immovable asset register and management system – Logica. Theimmovableassetsareclassifiedtodistinguishbetweenvariouslevelsofregistration.PropertiesregisteredinthenameoftheProvince;propertiesconfirmedvestedintermsofItem28(1)orSection239oftheConstitutionandformerstate-aidedModelCSchoolsconstituteLegalTitleasperNationalTreasuryguidelinesandisthereforerecordedinthefinancialstatementsoftheDepartment.

Excludedfromthisdisclosureareprovincialdeemed-ownedimmovablefixedassetsthatfalloutsidethedefinitionofLegalTitleaspertheSectorGuideonAccountingofImmovableAssets.TheseassetsincludeprovincialpropertiesnotyetconfirmedvestedintermsofItem28(1)toSchedule6oftheConstitutionandregisteredinthenameoftheProvinceoftheEasternCape.AstheGIAMAprocessesunfoldtheseassetswilleventuallybe“uplifted”intothedefinitionofLegalTitleandbeincludedintheauditedassetregisterforfinancialdisclosurepurposes.

FIXED ASSET RECORDING TYPE NUMBER

AUDITEDASSETS(legaltitle) 4,286

UNAUDITEDASSETS(deemedprovincialassets) 7,136

11,422

Thenumberof immovableassetscontrolledbytheDepartmentofRoadsandPublicWorksintermsofAct7of2000andsubsequentlyrecordedinLogica as unaudited on 31 March 2017 was 7,136 (inclusiveofStateDomesticFunctionsonmunicipalland,nationallandandlandofparastatalinstitutions).

Thesurveyingofprovincialstate-domesticfunctions(SDFs)onunsurveyedcommunallandintheformerTranskeiandCiskeiremainsachallenge.Thedepartmenthasidentified1,426 SDFs still to be surveyed in order to obtain Legal Title.

Atotalof3,111 propertieswererecordedasunregisteredstateland(noTitleDeedissued)intheunauditedlist.

TherecordedfiguresexcludetownshipestablishmentrelatedassetsunderthecustodianshipoftheDepartmentofHumanSettlements(e.g.RDP-housesandpublicopenspacesintownships).

LAND USE FUNCTION / FACILITY NUMBER OF FIXED ASSETS

AgriculturalLand(grazing,cultivationandirrigationfields) 30AgriculturalResearchStationsandExperimentalFarms 27CareCentersandOldAgeHomes 11Cemeteries 19Churches 1Clinics 620Colleges 7Crèches 14Educationrelatedfacilities(schoolssportgrounds,schoolhostels,etc.) 52Forestry(incl.plantations) -Halls(incl.communityhalls) 3Healthrelatedfacilities(hostelsforhealthstaff,mortuaries,etc.) 1Hospitals ¹ 111Libraries 2Museums 7Naturereservesandprotectedareas(incl.botanicalgardens) 133OfficesBuildings 157Parking Facilities 2Recreation(incl.operahouses,caravanparksandswimmingpools,playgrounds) 16


242


LAND USE FUNCTION / FACILITY NUMBER OF FIXED ASSETS

RoadCamps 52Road Reserves 64Residential(formaldwellings) 605Residential(informalsettlements) 8Residential(traditionalruralvillages) 96Retail(formalandinformalbusinesspremises) 20Schools(schoolbuildingsonly)² 4,334StorageFacilities(incl.depots,warehouses,stores,sheds,silos,etc.) 40Vacant Buildings / Facilities 9Vacant Land 628Miscellaneous(landusesnotcoveredabove) 67Total 7,136

TheDepartmenthasonlyoneuseagreement in the formofacaretakeragreementwithNationalPublicWorksfor 50housesinKingWilliam’sTown.NootherwrittenagreementsareinplacewithourDepartment.InthepastUserDepartmentsobtainreservationcertificatesorpermissiontooccupycertificatesforschoolandclinicswheresuchSDFsarelocatedoncommunalland.Thesereservationcertificatesarenowbeingreplacedbyformalsurveydiagrams and eventual state titles.

InadditiontotheabovetheDepartmentidentified1,056 provincialstatedomesticfunctions(SDFs)locatedonotherpublicland,i.e.municipalland.ThelocationofschoolsandclinicsandotherSDFsonmunicipallandisaresultofhistorictransfersduetoapartheidtownplanning(i.e.ProclamationR293/1962townships)andthelegacyofthehomelandborderindustrialtownsandlabourpractices.Theseassetsonmunicipallandaremanagedbynon-officialagreements of use and will eventually be transferred back to the Province after proper township establishment and/or land administration process are completed.


243


NOTES

244


NOTES

Physical AddressQhasana BuildingIndependent AvenueBhishoEastern CapePrivate bag X0022Bhisho5608Republic of South Africa

Switchboard: 040 602 4000Customer Care: 0800 864 951Presidential Hotline: 0800 17737Email:[email protected]

ANNUAL REPORT2016 / 17

PR: 260/2017ISBN: 978-0-621-45746-9

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