ANNUAL REPORT 2013/14 - Provincial Government · CIDB Construction Industry Development Board ......

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MPUMALANGA PROVINCIAL GOVERNMENTDepartment of Public Works, Roads and Transport

Vote No. 08

ANNUAL REPORT

2013/14

Annual Report1.indd 1 2014/08/19 05:30:45 PM

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CONTENTSPART A: GENERAL INFORMATION ........................................................................................31. DEPARTMENT’S GENERAL INFORMATION ..................................................................4 2. LIST OF ABBREVIATIONS/ACRONYMS .........................................................................53. FOREWORD BY THE MEC OF THE DEPARTMENT ........................................................74. REPORT OF THE ACCOUNTING OFFICER ...................................................................95. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORT .................................................................................................146. STRATEGIC OVERVIEW ...............................................................................................15

6.1. Vision ................................................................................................................156.2. Mission ..............................................................................................................156.3. Values ..............................................................................................................15

7. LEGISLATIVE AND OTHER MANDATES .......................................................................158. ORGANISATIONAL STRUCTURE .................................................................................16

PART B: PERFORMANCE INFORMATION .............................................................................171. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ...............................182. OVERVIEW OF DEPARTMENTAL PERFORMANCE ....................................................18

2.1. Service Delivery Environment ........................................................................182.2. Organisational environment .........................................................................182.3. Key policy developmentents and legislative changes .............................19

3. STRATEGIC OUTCOME ORIENTED GOALS ...............................................................194. PERFORMANCE INFORMATION BY PROGRAMME ..................................................20

4.1. Programme 1: Administration .......................................................................204.2. Programme 2: Public Works ..........................................................................224.3. Programme 3: Transport Infrastructure.........................................................254.4. Programme 4: Transport Operations ............................................................284.5. Programme 5: Community Based Programmes .........................................30

5. TRANSFER PAYMENTS .................................................................................................325.1. Transfer payments to all organisations other than public entities ............32

6. CONDITIONAL GRANTS .............................................................................................336.1. Conditional grants and earmarked funds received ..................................33

7. CAPITAL INVESTMENT ................................................................................................347.1. Capital investment, maintenance and asset management plan ...........34

PART C: GOVERNANCE.......................................................................................................491. INTRODUCTION ..........................................................................................................502. RISK MANAGEMENT ...................................................................................................503. FRAUD AND CORRUPTION ........................................................................................504. MINIMISING CONFLICT OF INTEREST .........................................................................505. CODE OF CONDUCT .................................................................................................516. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ........................................................517. PORTFOLIO COMMITTEES ..........................................................................................518. SCOPA RESOLUTIONS ................................................................................................529. PRIOR MODIFICATIONS TO AUDIT REPORTS ............................................................5710. INTERNAL CONTROL UNIT ..........................................................................................5711. INTERNAL CONTROL AND AUDIT COMMITTEES .......................................................5712. AUDIT COMMITTEE REPORT .......................................................................................59

PART D: HUMAN RESOURCE MANAGEMENT ......................................................................611. INTRODUCTION ..........................................................................................................622. OVERVIEW OF HUMAN RESOURCES ........................................................................623. HUMAN RESOURCE OVERSIGHT STATISTICS .............................................................63

PART E: FINANCIAL INFORMATION ....................................................................................891. REPORT OF THE AUDITOR GENERAL .........................................................................902. ANNUAL FINANCIAL STATEMENTS .............................................................................95


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PART A:GENERAL INFORMATION


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1. DEPARTMENT’S GENERAL INFORMATION

Physical Address: Department of Public Works, Roads and Transport Building No. 7

Riverside Government Complex Government Boulevard Mbombela 1200

Postal Address: Mpumalanga Provincial GovernmentDepartment of Public Works, Roads and TransportPrivate Bag X11302

Mbombela 1200

Telephone Number: +27 13 766 6696

Fax Number: +27 13 766 8453

Website Address: dpwrt.mpg.gov.za


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2. LIST OF ABBREVIATIONS/ACRONYMSAO Accounting Offi cerAFS Annual Financial StatementsAGSA Auditor General of South AfricaAPP Annual Performance PlanBBBEE Broad Based Black Economic EmpowermentCAMP Custodian Asset Management PlanCBO Community Base OrganizationCETA Construction Education Training AgencyCGICT Corporate Governance of ICTCHRRP Coal Haul Road Rehabilitation ProgrammeCFO Chief Financial Offi cerCHC Community Health CentreCIDB Construction Industry Development BoardCOGTA Cooperative Governance and Traditional AffairsCRDP Comprehensive Rural Development ProgrammeDCSSL Department of Community Safety, Security and LiaisonDCSR Department of Culture, Sports and Recreation DEDET Department of Economic Development, Environment and TourismDoE Department of EducationDoH Department of HealthDORA Division of Revenue ActDPSA Department of Public Service and AdministrationDPWRT Department of Public Works, Roads and TransportDSD Department of Social DevelopmentEA Executive AuthorityEPWP Extended Public Works ProgrammeESKOM Electricity Supply CommissionEWP Employee Wellness ProgrammeEXCO Executive CouncilFTEs Fulltime EquivalentFPP Fraud Prevention PlanGMT Government Motor TransportHDI Historically Disadvantaged IndividualHIV/ Aids Human Immune-Defi ciency Virus/ Acquired Immune-Defi ciency SyndromeHOD Head of DepartmentHRM Human Resource ManagementHRU&CD Human Resource Utilisation and Capacity DevelopmentICT Information Communication TechnologyIDMS Infrastructure Delivery Management SystemIDT Independent Development TrustIPIP Infrastructure Project Implementation PlansIPMP Implementation Project Management PlanIRMA Integrated Rural Mobility and AccessibilityLOGIS Logistics Information SystemsMEC Member of Executive CouncilMIMP Mpumalanga Infrastructure Master PlanMMS Maintenance Management SystemMPAT Management Performance Assessment ToolMRTT Mpumalanga Regional Training TrustMTEF Medium Term Expenditure FrameworkMUNIMEC Municipality and Member of Executive Council NGO None Government OrganizationNMT Non-Motorised Transport


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NYS National Youth ServicesOLAS Operating Licence Administrative SystemOSD Occupation Specifi c DispensationPAIA Promotion of Access to Information Act, 2000PERSAL Personnel and Salaries SystemsPFMA Public Finance Management Act, 1999PMDS Performance Management Development SystemsPOT Purchase-Operate-TransferPPPs Public Private PartnershipsPWD People With DisabilitiesPMU Project Management UnitRAMS Road Asset Management SystemRGC Riverside Government ComplexRIU Rapid Implementation UnitSARS South African Revenue ServiceSBD Standard Bidding DocumentSCM Supply Chain ManagementSCOPA Select Committee on Public AccountSITA State Information Technology AgencyTB Tuberculoses TR Treasury RegulationsUAMP User Asset Management PlansURS User Requirement Specifi cations (GMT Trading Account)VAT Value Added TaxVO Variation OrderWOE Women Owned Enterprise


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3. FOREWORD BY THE MEC OF THE DEPARTMENT Our core mandate as a Department is to coordinate and ensure achievement of the “National Outcome 6: An effi cient competitive and responsive economic infrastructure network”. The provincial road network is therefore a core component of the economic infrastructure. In 2013/14, the Department spent almost R2 billion on road improvements which resulted on safer and more effi cient movement of people and goods across the Province.

Furthermore, several Integrated Rural Mobility and Accessibility (IRMA) projects were completed in support of rural development which is a priority for this government. This initiative was complemented by the municipal support programme that was aimed at improving access to public amenities. Combined, these programmes have played a pivotal role in alleviating the suffering of indigent communities and boosting of local economies through community participation initiatives and enterprise involvement.

The Department also supports the implementation of other strategic outcomes, namely:

• National Outcome 1: Improve quality of basic education• National Outcome 2: A long and healthy life for all South Africans• National Outcome 3: All people in South Africa are protected and feel safe• National Outcome 4: Decent employment through inclusive growth• National Outcome 13: An inclusive and responsive social protection system.• National Outcome 14: Nation building and social cohesion.

In support of these outcomes, there was construction, upgrading or additions done on 72 education facilities, 2 social development facilities, 2 culture, sport and recreation facilities, 13 health facilities and construction of bulk infrastructure for the new Traffi c Training College. The direct impact of these infrastructures will be highlighted by our various client departments.

We have also enhanced our role as an implementing agent of the provincial infrastructure delivery agenda. The introduction of the Infrastructure Delivery Management System (IDMS) has borne immediate results that saw improvement in client ownership and oversight, packaging of infrastructure projects in a manner which reduces programme management complexities, reduction of costs, proactive management of risks and ensured greater effi ciency in service delivery.

As we strengthen our economy through capital investment, we must take cognisance of the harsh economic conditions where costs for infrastructure and demand are for ever increasing. We have observed disclosures of rampant anti-competitive and cartel behavior by some of the big companies who dominate the construction industry. These disclosures should indeed serve to remind us to be forever vigilant, for all they do is to undermine capacity of the State to deliver services to all our people.

The Department has put measures in place, amongst others, to ensure that the vehicles used to transport learners are road worthy and reliable. To date, we have deployed a new fl eet of 121 buses in Gert Sibande and Bohlabelo Districts. These new buses are the backbone of the Purchase-Operate-Transfer (POT) model which seeks to bring broad operational effi ciencies that include the reduction of costs.

At National level, the Transport Minister and her Basic Education counterpart are leading efforts to provide safe, reliable and effi cient transport services for learners across the country. Last year, the Department of Transport appointed a service provider to develop the National Operational Guidelines and Safety/Norms Standards for Learner Transportation. These guidelines seek to address issues such as safety, law enforcement and accessibility of transport by learners.

The Expanded Public Works Programme (EPWP) represents Government’s most direct policy instrument to tackle unemployment. At the centre of this programme is the endeavour to alleviate unemployment, poverty and inequality. Through EPWP, a total of 66 520 against a target of 76 136 work opportunities were created between the 1st of April 2013 and 31st March 2014.

Whilst the Department of Public Works, Roads and Transport is responsible for coordinating EPWP, all the various state and non-state entities share a collective responsibility for achievement of this target. The rationale behind this is that the budgets for implementation of EPWP projects are allocated to various stakeholders. To address EPWP related challenges, there should be a clear location of political and administrative accountability for creating EPWP work opportunities across all spheres of government.


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The principle of good governance requires institutions to provide responsive, effective and effi cient services (or goods) within the applicable accounting and transparency regimes. Our barometer in this regard is the audit opinion which will guide specifi c reforms in fi nancial and performance management going forward.

Also critical to the above, is investment in skills development which is crucial to the delivery of the our mandate. To unlock potential and attract required skills, a range of capacity building initiatives were developed to optimize the attraction and recruitment of targeted groups. These includes; the Internship Programme, Learnership Programme, National Youth Service (NYS) Co-operatives, Young Professionals Programme, and resuscitation of workshops through the Artisan Training Programme.

As with every year, 2013/14 brought its own successes and challenges. The fact that our mandate expanded, it resulted in new challenges that required innovativeness. Last year, we managed our fi scus in a manner that allowed us to deliver on most of the targeted outputs. I am therefore pleased to table my inaugural annual report as MEC of the Department of Public Works, Roads and Transport.

Ms DG Nhlengethwa (MPL)MEC: Department of Public Works, Roads and Transport31 July 2014


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4. REPORT OF THE ACCOUNTING OFFICER 4.1 Overview of the operations of the department

This annual report presents performance information for the period 01 April 2013 to 31 March 2014. It details our progress in meeting the strategic objectives of the Annual Performance Plan (APP).

4.1.1 Key Achievements

In the past 12 months, a total of 90 building infrastructure projects with various complexities were completed which means that more people now have access to schools and health facilities. This proved to be a catalyst for the creation of 66 520 work opportunities and supported the development of many emerging contractors.

In line with the Provincial Government’s commitment to prioritise municipal access roads, the Department actively liaised with local municipalities and re-gravelled 119km roads within their jurisdictions. The Department also supported energy generation by completing 5 coal haulage routes in Gert Sibande and Nkangala regions. In addition to investing in roads infrastructure upgrades and rehabilitations, 07 Non-Motorised Transport (NMT) projects were constructed to support rural mobility.

In 2013/14, the Department continued to manage Public Transport Services to the benefi t of general commuters across the province. In addition, the Scholar Transport programme is starting to deliver an improved value-for-money outcome. To date, 121 new buses have been purchased.

4.1.2 Key Challenges

The Department’s APP contains several targets which are based on commitments made by various client departments whose projects are implemented by the DPWRT. The DPWRT as the implementing agent is responsible to ensure that client departments’ projects are implemented as planned whilst the clients are expected to maintain their fi nancial commitments for the year. However, some departments encountered serious budget constraints during the year and therefore could not meet all their commitments. During this year, 4 targets from Public Works Programme could not be achieved due to budget adjustments by these client departments.

On 19 April 2013, bus drivers embarked on a nationwide strike demanding a double-digit wage increase. This industrial action left thousands of commuters stranded for nearly a month. During this period, commuters could not benefi t from the government’s bus subsidy scheme and had to dig deep in their pockets to fi nd alternative means of transport. As a result, the Department’s performance against 6 Transport Operations targets was compromised.

Efforts to divert portion of the Coal Haul Road Rehabilitation Programme (CHRRP) grant to augment funding for other urgent projects in the 2013/14 fi scal period, as per EXCO resolution, were unsuccessful. The Department wrote to the National Department of Transport and National Treasury requesting approval to utilise R 267 million of the allocated R 808 million for that per post. These funds were intended to address the infrastructure damaged projects that resulted from severe fl ooding in the province over the years, notably, 2012 and 2013. These shift of funds from conditional grant to equitable share allocation, and then back to conditional grant (after National Transport determination), adversely affected performance.

In order to create jobs in a short period of time, government introduced the Expanded Public Works Programme (EPWP). It should however be noted that budget allocations for related projects are not made directly to the Department of Public Works, Roads and Transport but to various state and non-state entities. Therefore, poor budget management practices and failure to ensure full utilization of budgets by the above-mentioned entities had severe impact on Mpumalanga government’s ability to achieve its EPWP targets.

Notwithstanding the above challenges, there was a general commitment to improve service delivery during the 2013/14 fi nancial year. However, the Department provided its services in a dynamic environment which necessitated specifi c adjustment of the budget and plans during the year. Consequently, we could not achieve 24 of the 57 set targets.

4.2 Overview of the fi nancial results of the Department

The Department was allocated a budget of R 3,971,072,000 during the 2013/14 fi nancial year as compared to R 3,510,977,000 for 2012/13 fi nancial year. The Departmental budget for the reporting period decreased by R 22,862,000 during budget adjustment, resulting in a total budget of R 3,948,210,000 The above decrease of R22, 862,000 was as a result of funding other Provincial priorities.


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4.2.1 Signifi cant events that have taken place during the year

The following signifi cant events were held by the Department during the 2013/2014 fi nancial year:DATE ACTIVITY REGIONMay 2013 Policy and Budget Speech Ehlanzeni (Legislature)June 2013 National Youth Service and Sakhabakhi Graduation Nkangala

MUNIMEC NkangalaAugust 2013 Women Seminar NkangalaSeptember 2013 Departmental Wellness Day Gert SibandeOctober 2013 Launch of Scholar Transport Buses Bohlabela

Opening of the Goromane Bridge BohlabelaProvincial KaMoso Awards NkangalaLaunch of Buses for the Disabled Ehlanzeni

February 2014 Sod Turning of Road D2969 between Manzini and Swalala

Ehlanzeni

March 2014 Sod Turning of Road D481 Road between Embuleni Hospital towards Ekulindeni

Gert Sibande

Handover of Machipe-Bundu Road Nkangala

4.3 DEPARTMENTAL RECEIPTS

Departmental receipts

2013/2014 2012/2013Estimate Actual

Amount Collected

(Over)/Under

Collection

Estimate ActualAmount

Collected

(Over)/Under

Collection

R’000 R’000 R’000 R’000 R’000 R’000Sale of goods and services other than capital assets

8,566 10,045 (1,479) 25,895 18,860 7,035

Fines, penalties and forfeits

8,644 5,590 3,054

Interest, dividends and rent on land

797 1,637 (840) 16,001 1,948 14,053

Sale of capital assets 1,501 3,283 (1,782) 6,225 934 5,291Financial transactions in assets and liabilities

760 3,415 (2,655) 125 4,106 (3,981)

TOTAL 20,268 23,970 (3,702) 48,246 25, 848 22,398

The projected revenue for the 2013/14 fi nancial year was an amount of R20,268,000. The Department collected an amount of R 23,970,000 which resulted in an over collection of R3,702,000 mainly from the sale of capital assets.

4.3.1 Determination of tariffs

The tariffs charged by the Department for fees that are not governed by any Act but are determined annually with the approval of the Provincial Treasury. However, fees charged in terms of the National Land Transport Act were gazetted for public comments before implementation by the Department.

4.3.2 Free services rendered

There were no free services rendered by the Department during the fi nancial year under review.

4.3.3 Bad debts written off

During the fi nancial year 2013/14 the department wrote off debtors to the amount of R1, 790 million which were irrecoverable.

4.3.4 Reasons for the better than anticipated performance (Over Collection)

The Department conducted 6 auctions Nelspruit (2), Middelburg (1), Kwa-Mhlanga (1), Bushbuckridge (1) and Ermelo (1) during the fi nancial year at which a number of capital assets were sold and the proceeds were more than the projected income.


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4.3.5 Reasons for sale of capital assets

The Department sold capital assets which were redundant and unserviceable.

4.4 Spending trends

The Department spent 99.9% of its adjusted budget for the 2013/14 fi nancial year. The table below is a summary of expenditure per programme for 2013/14 fi nancial year and the details are disclosed in the Appropriation Statement.

Programme Expenditure Programme name

2013/2014 2012/2013FinalappropriationR’000

ActualexpenditureR’000

(Over)/ under expenditure R’000

FinalappropriationR’000



Administration 220,541 220,541 0 344,271 343, 954 317Public Works 592,521 592,510 11 525,327 525,146 181Transport Infrastructure

2,049,131 2,048,655 476 1,630,391 1,627,451 2,940

Transport Operations

1,017,847 1,017,847 0 988,361 987,426 935

Community Based Programmes

68,170 67,600 570 39,131 39,105 26

TOTAL 3,948,210 3,947,153 1,057 3,527,481 3,523,082 4,399

The Department spent R 3,947,164,000 of its adjusted budget of R3, 948,210,000 for the 2013/14 fi nancial year. In terms of the above table the Departmental spending was consistent with the previous fi nancial year, in terms of percentage.

The under expenditure of R 1,046,000 was as a result of unspent funds from programme 3: Transport Infrastructure and Programme 5: Community Based Programme, under goods and services.

4.5 Virements

The following virements were made after the 2013/14 budget adjustment appropriation:

TRANSFER FROM AMOUNT R’000 TRANSFER TO AMOUNT R’000Administration 3,234 Public Works 2,013

Transport Infrastructure 1,221Total 3,234 3,234Transport Operations 17,393 Public Works 17,364

Transport Infrastructure 29Total 17,393 17,393Community Based Programmes

1,342 Transport Infrastructure 1,342

OVERALL TOTAL 21,969 21,969

4.5.1 Reason for the virement

The Department had to apply for virements to defray anticipated over expenditure in the Public Works and Transport Infrastructure programmes. The reasons for virement are as follows:-

• Payments of contractual obligations, relating to maintenance of property and upgrading of the air conditioning systems.

• Over commitments on capital projects, and maintenance of fl ood damaged roads infrastructure.

4.6 Supply Chain Management

No unsolicited bid proposals were concluded during the 2013/2014 fi nancial year.


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4.6.1 SCM processes and systems to prevent irregular expenditure

• Procurement of goods and services is done in accordance with the prescribed threshold values by the National Treasury.

• Procurement delegations are implemented and monitored regularly• Invitation of competitive bids for threshold values above R500 000.00 to ensure that equal

opportunities are given to all suppliers to compete.• Implementation of an electronic system (ProQuote) to invite quotations from the departmental

supplier database • Deviations from normal procurement processes (procurement without inviting competitive

bids) are justifi ed, approved by the Accounting Offi cer, recorded and reported to both the Provincial Treasury and the Auditor General.

• Check the completeness of SBD 4 to ensure that service providers declare their interest and verify ID numbers of the directors on the Persal System.

• Verify VAT Registration of suppliers on the SARS Website to ensure that service providers who claim VAT are duly registered.

• Verify the status of CIDB grading of service providers on the CIDB Website to ensure that the status is active prior to awards.

• Proper safekeeping and management of contract records to confi rm that awards made are in accordance with the requirements of SCM legislation and prescripts.

• Implemented and monitor transaction checklists to ensure compliance with SCM prescripts.

4.6.2 Challenges experienced in SCM and how they were resolved NO. CHALLENGES ACTION TAKEN TO RESOLVE CHALLENGES1. Misuse of GG vehicles after working hours and

during weekends Implemented a vehicle tracking system and

continuous monitoring of vehicles2. Insuffi cient safekeeping of contract records Established contract management unit

Developed and manage contract management register

Provided client departments with copies of contract management documents

3 Failure to declare confl ict of interest by service providers

Check and verify completeness of SBD4 and SBD8 Verify ID numbers of directors on the Persal System

to detect if the directors are not government employees

Any service provider who fails to complete the declaration form (SBD 4) is disqualifi ed

Cancelled contracts of service providers whose directors are government employees

4. Lack of an electronic system to detect government offi cials doing business with the Department especially those working for Local Government, SAPS, Correctional Services, etc.

The Provincial Treasury requested to assist with the electronic system with a view to detect government offi cials doing business with the Department. In regard to identifi ed offi cials, Government Institutions have been requested to ensure that disciplinary action is taken against those offi cials.

5. Invalid VAT numbers of the invoices Verify VAT Registration of suppliers on the SARS Website

4.7 Gifts and Donations received in kind from non related parties

The department received donations during the fi nancial year under review made in kind for the Mandela Day Celebration. A list of all donations and institutions who donated is disclosed in the Annual Financial Statements ( Refer to Annexure II thereof).

4.8 Exemptions and deviations received from the National Treasury

There were no exemptions and deviations received from the National Treasury on the compilation of the 2013/14 fi nancial year’ Annual Financial Statements.

The Annual Financial Statements set out on pages 95 to 169 have been approved by the Accounting Offi cer.

4.9 Events after the reporting date

The Department processed invoices to the value of R 18,502 million during April and May 2014 which relate to the 2013/2014 fi nancial year. These payments however do not form part of the 2013/14 fi nancial year’ expenditure and are disclosed as note number 19 of the Annual Financial Statements. The department will implement cost curtailment measures and adjust the Annual Performance Plan during 2014/15 fi nancial year in order to address the above accruals.


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Acknowledgements

I would like to offer my sincere thanks to the former MEC, the Honourable Dikeledi Gladys Mahlangu for her continuous support. I am also grateful for the commitment and strong support shown by the Senior Management of the Department and various structures such as the Audit Committee. The support of the Chairperson of the Audit Committee on increasing awareness about audit practices within the Department is highly appreciated.

Our challenge moving forward is to address issues relating to service delivery through building the requisite technical capacity to adequately deliver on the clients requirements. In addition, the need for increased budget in order to address the deteriorating road infrastructure network deserves serious attention. Needless to say, this will in turn create more work opportunities and reduce high unemployment rates.

Conclusion

The summary of the fi nancial performance indicates that the Department continues to strive for fi nancial prudence. The Department has also managed its fi scal responsibility in a manner that resulted in the delivery of most of the set outputs.

_______________KM MOHLASEDIAccounting Offi cerDepartment of Public Works, Roads and Transport30 May 2014

_______________KM MOHLASEDI


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5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY OF THE ANNUAL REPORT

To the best of my knowledge and belief, I confi rm the following:

All information and amounts disclosed throughout the annual report are consistent.

The annual report is complete, accurate and is free from any omissions.

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

The Annual Financial Statements (Part E) have been prepared in accordance with the modifi ed cash standard and the relevant frameworks and guidelines issued by the National Treasury.

The Accounting Offi cer is responsible for the preparation of the annual fi nancial statements and for the judgements made in this information.

The Accounting Offi cer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual fi nancial statements.

The external auditors are engaged to express an independent opinion on the annual fi nancial statements.

In my opinion, the annual report fairly refl ects the operations, the performance information, the human resources information and the fi nancial affairs of the department for the fi nancial year ended 31 March 2014.

Yours faithfully,

_______________KM MOHLASEDIAccounting Offi cer30 May 2014

_______________KM MOHLASEDI


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6. STRATEGIC OVERVIEW6.1 Vision

An integrated transport system and infrastructure that promotes socio-economic development.

6.2 Mission

To effectively and effi ciently implement all mandates relating to-

• traffi c management*;• asset and property management;• public and freight transport; and • roads and building infrastructure to the benefi t of all end-users.

* The mandate relating to traffi c management is now implemented by the Department of Community Safety, Security and Liaison as of November 2011.

6.3 Values

Service Excellence An exceptional service delivery is required to attain the goals of the Department

Innovation Is required to ensure that the processes utilised remain state of the art and allows the Department to attain its goals

Accountability Being answerable and responsible for its actions to the publicIntegrity Being honest and truthful in dealing with the community and acting in a

manner beyond reproachDiversity Accepting and acknowledging the cultural mix of its communityTeam Work Continuously cooperating and collaborating with all spheres of Government

and stakeholdersBest Practice Applying international best practice methods and good corporate

governance in dealingsLoyalty Expressing allegiance to community, central Government and the people of

South AfricaValue for Money All the customers paying for the real value attained

7. LEGISLATIVE AND OTHER MANDATES• Architectural Profession Act, 2000 (Act No. 44 of 2000)• Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997)• Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)• Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993)• Constitution of the Republic of South Africa,1996• Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)• Council for the Built Environment Act, 2000 (Act No. 43 of 2000)• Criminal Procedure Act, 1977 (Act No. 51 of 1977)• Deeds Registries Act, 1997 (Act No. 47 of 1997)• Division of Revenue Act, 2008 (Act No. 2 of 2008)• Electronic Communications Act, 2005 • Electronic Communications and Transition Act, 2002 (Act No. 25 of 2002)• Employment Equity Act, 1998 (Act No. 55 of 1998)• Engineering Profession Act, 2000 (Act No. 46 of 2000)• Environment Conservation Act, 1989 (Act No. 73 of 1989)• Firearm Control Act, 2000 (Act No. 60 of 2000)• Government Immovable Asset Management Act, 2007 (Act No. 19 of 2007)• Labour Relations Act, 1995 (Act No. 66 of 1995)• Landscape Architectural Profession Act, 2000 (Act No. 45 of 2000)• Mpumalanga Roads Act, 2008• Mpumalanga Road Traffi c Act, 1998 (Act No. 4 of 1998)• National Archives of South Africa Act, 1996 (Act No. 43 of 1996)• National Building Regulations and Building Standards Amendment Act, 1995 (Act No. 49 of 1995)• National Environmental Management, 2008 (Act No. 62 of 2008)• National Heritage Council Act, 1999 (Act No. 11 of 1999)• National Heritage Resources Act, 1999 (Act No. 25 of 1999)• National Land Transport Transition Act, 2009 (Act No. 5 of 2009)• National Road Traffi c Act, 1996 (Act No. 93 of 1996)• National Waste Management Act, 1996 (Act No. 59 of 2008)


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• Occupational Health and Safety Act, 1993 (Act No. 85 of 1993)• Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)• Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004)• Project and Construction Management Professions Act, 2000 (Act No. 48 of 2000)• Promotion of Administrative of Justice Act, 2000 (Act No. 3 of 2000)• Promotion of Access to Information Act, 2000 (Act No. 2 of 2000)• Property Valuers Profession Act, 2000 (Act No. 47 of 2000)• Public Finance Management Act,1999 (Act No. 1 of 1999)• Public Service Act, 1994 (Proclamation No. 103 of 1994)• Quantity Surveying Profession Act, 2000 (Act No. 49 of 2000)• Road Transportation Act, 1977 (Act No. 74 of 1977)• Skills Development Act, 1998 (Act No. 97 of 1998)• Skills Development Levies Act, 1999 (Act No. 9 of 1999)• South African Qualifi cations Authority Act, 1995 (Act No. 58 of 1995)• South African Schools Act, 1996 (Act No. 84 of 1996)• State Information Technology Agency Act, 1998 (Act No. 88 of 1998)• Town and Regional Planning Act, 2002 (Act No. 36 of 2002)• Transport Appeal Tribunal Act, 1998 (Act No. 39 of 1998)• Transvaal Roads Ordinance, 1957 (Ordinance No. 22 of 1957)

8. ORGANISATIONAL STRUCTURE

PART B:

0

5

25

75

95

100

ORGANISATIONAL STRUCTURE

12 August 2014 09:27:55 AM

MEC:D.G. NHLENGETHWA

HOD:K.M. MOHLASEDI

DDG: CORPORATESTRATEGY (ACTING),

P.M. KHOZA

DDG: PUBLIC &FREIGHT TRANSPORT

(VACANT)

DDG: PUBLIC INFRASTRUCTRE,M.C. MOROLO

- Internal Audit- Communication- Legal Services- Security Services- Financial Management- Government Motor Transport- District Services- Integrated Planning- Human Resource Management and Development

- Programme Management Unit- Building Infrastructure- Property Management- Roads Infrastructure- Community Based Programme

- Public and Freight Transport


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2013/14 2013/14

PART B:PERFORMANCE INFORMATION


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1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVESThe AGSA performs certain audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material fi ndings being reported under the Predetermined Objectives heading in the report on other legal and regulatory requirements section of the Auditor’s Report (Refer to Part E: Financial Information, for the Report of the Auditor General).

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 2.1 Service Delivery Environment

Increasing Infrastructure Demands

Mpumalanga has a relatively good core network of social and economic infrastructure, the challenge is to maintain and expand it to address the demands of the growing economy. However, this has been constrained by inadequate investment and ineffective operation and maintenance of existing infrastructure. More than ever, there is a need to operate in a policy and procedurally driven environment in order to derive utmost value for every cent invested.

The development of the Mpumalanga Infrastructure Master Plan (MIMP) represents a key element towards the future sustainable development of the province. Another important dimension to the MIMP is that it is consistent and compatible with the requirements of policies and plans at national, provincial and local level. It also strengthens inter-governmental relationship within the three spheres of government thus ensuring integrated infrastructure planning and delivery in the province.

Coal Haulage Network

Mpumalanga generates 75% of the country’s electricity hence the strategic importance of the coal haulage network. As a result, the provincial coal haul network carry extensive volumes of traffi c which places an extra burden on the maintenance and rehabilitation demands of the province due to the increased heavy traffi c loads of coal haul trucks. Due to the large traffi c volumes and heavy loads on coal haul roads, the condition of these roads deteriorates faster than the rest of road network.

The coal haulage road repair programme has begun to make a positive impact on the Province’s socio-economic life, through the contribution of all other stakeholders in particular the National Department of Transport, Eskom and National Treasury. The programme has also opened opportunities and potential for Public Private Partnerships (PPPs) with coal mines and companies like Sasol.

Natural Disasters

During January and February 2014, public infrastructure was signifi cantly impacted by severe fl ooding across Mpumalanga. Pavement surfaces, road shoulders, drainage and schools infrastructure in many parts of the province were damaged and these posed signifi cant risks to motorists and learners. Some essential infrastructure was repaired within a matter of days but other sustained major damage and this requires additional funding to ensure a full reconstruction programme.

Ideally, such a programme should be funded through the National Disaster Relief Fund, a government initiative to restore state assets damaged by natural disaster. However, in recent years the demand has been more than funding appropriated to the Department. As a result, an unprecedented long-term repair job will have to be performed to address the increased backlog on storm damaged infrastructure.

2.2 Organisational Environment

Enhanced Performance Management

DPWRT is proud to be the fi rst department to have developed and formally adopted a Performance Information Plan (PIP) within the Mpumalanga Provincial Government. This is the fi rst in a series of plans aimed at enhancing management of performance information within the Department.

Cost Savings and Improved Effi ciencies

During the year, the Department identifi ed further cost savings and effi ciencies that were more fl exible, responsive and effi cient in delivering services. Related to this, is the ability to continue to reduce accruals during the past 3 years.


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Technical Skills Capacity Building Programme

The Department recruited 26 graduates from technical disciplines and placed them within various infrastructure projects. The rationale behind these appointments is amongst others to, address the problem of critical skills shortages, provide a base for experiential learning and enhance employability of graduates. Business Continuity Plan

In 2013/14, SITA conducted a business continuity test for our fi nance section. This exercise produced closer ties and knowledge sharing between operational areas and also enhanced our capacity to respond and recover from events that threaten to disrupt the Department’s operations.

2.3 Key Policy Developments and Legislative Changes

• All departmental bids are now advertised in the Provincial Tender Bulletin and/or newspapers.• An ICT Strategic Committee, comprising of senior managers was appointed in line with the

Corporate Governance of ICT (CGICT) Policy Framework. This committee is responsible for effecting governance of ICT and ensuring strategic alignment of ICT and operations of the Department.

• Furthermore, an ICT Forum was established to deal with the technical and day to day operations of the Department. This committee is made up of all the system controllers within the Department.

• The Accident and Loss Policy was approved.• The Policy on the Disposal of Vehicles, Plant Equipment and Redundant Government Stock

was approved.• The Plant, Machinery and Heavy Equipment Policy was approved.

3. STRATEGIC OUTCOME ORIENTED GOALSThe table below contains the Department’s strategic outcome oriented goals as refl ected in the Strategic Plan and the progress made towards the achievement of the goals.

Goal Progress to dateTo manage resources prudently

• Spent 99.9% of the budget allocation• 99% of invoices paid within 30 days of receipt• 99.8% of performance agreements signed

To provide, manage and maintain building and transport infrastructure

• Developed 3 Infrastructure Project Implementation Plans (IPIPs) for Department of Education, Health and Social Development

• Finalized the planning and design of 59 building and 13 roads infrastructure projects

• Completed 90 building and 9 roads projects • Updated the provincial immovable assets with 96 assets

To ensure effective transport operations management

• Subsidized 6 bus operators to enable affordable and accessible public transport• Provided fi nancial assistance to the Provincial Taxi Council (R1,5million)• Contracted 111 operators to transport 66 613 learners• Completed 7 IRMA projects in support of non-motorized transport

To coordinate the implementation of the EPWP 2 in the Province

• Created 66 520 work opportunities• Registered 14 NYS co-operatives

To continually improve our systems and procedures

• Audit action plan developed to address the issues raised by Auditor General • Risk register developed and monthly evaluations conducted on management of

identifi ed risks• Business continuety test concluded on fi nancial systems

Progress towards achievement of National Outcomes and National Development Plan Priorities

The capital injection by government to roads infrastructure is below the demand for upgrading, rehabilitation and road maintenance. Investment in road infrastructure plays a pivotal role in freight movement and energy generation. Roads are still the most effective way of getting goods to the market and also infl uence the fi nal price paid by the customer. Farmers and other service providers rely on good road network to access their consumers. On the other hand, major development of coal haulage routes resulted in sustainable power generation and economic growth in South Africa.

The Integrated Rural Mobility Access (IRMA) projects have had a huge impact on the lives of people residing in rural areas. In many parts of the province where some school children and nursing mothers are now able to access schools and health facilities without risking their lives to cross dangerous


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rivers and streams. Road safety has improved through the construction of sidewalks which enable pedestrians to use the sidewalks than walking on the road, thus reducing road accidents. The IRMA projects also played a pivotal role in job creation for the people in rural areas.

The Department of Education holds as its vision, providing quality education and training towards a better life for all. Goal 5 of its Strategic Plan deals with infrastructure aspects, asserting that the department will accelerate infrastructure provision conducive for the delivery of quality education. This it hopes to achieve by improving learning opportunities within accessible radius to schooling facilities and in conformance to norms and standards. Last year, DPWRT completed 72 projects on behalf of the department which include repairing of storm damaged facilities. These projects have immensely contributed towards increasing learning opportunities.

The Department of Health’s strategic plan is geared towards quality health care services all across the province. The province currently has 28 hospitals and 5 TB hospitals, 45 Community Health Centres, and 2 Tertiary Hospitals. These facilities are located near populated areas. Outlying areas (rural and farm) have to make use of transport to access these health facilities. In 2013/14 infrastructure projects were implemented on behalf of the Department of Health to improve access to health care services.

Infrastructure investment amongst others focused not only on maximizing the economic benefi ts derived from its construction but further achieving social objectives as a way to activate and support local economies. It has proven to be critical in human development and improves productivity in all aspects of economic endeavour if it is done in a manner that is sustainable, sound, responsive, effective and effi cient. That being said, infrastructure is worthless if it does not elevate the economic status and well-being of the people to whom it serves and must be centred on human capital development.

4. PERFORMANCE INFORMATION BY PROGRAMMES 4.1. PROGRAMME 1: ADMINISTRATION

Purpose

The purpose of the Programme is to provide the Department with administrative, strategic, fi nancial and corporate support services in order to ensure that it delivers on its mandate in an integrated, effi cient, effective and sustainable manner.

Sub-programmes

• Offi ce of the MEC• Management of the Department• Corporate Support

Strategic objectives

• To optimally utilise fi nancial and physical resources• To provide integrated communication services• To improve risk management, control and good governance• To manage and establish the trading account for the Provincial fl eet

Strategic objectives, performance indicators, planned targets and actual achievementsThe Programme played a supportive role in pursuit of the Department’s vision to provide an integrated t ransport system and infrastructure that promotes socio-economic development. In pursuit of this vision, new opportunities were identifi ed to improve service delivery, optimise costs, reduce risks and improve staff development.

Strategic objectivesStrategic objectives

Actual achievement 2012/13

Planned target2013/14

Actual achievement2013/14

Deviation from planned target to actual achievement for 2013/14

Comment on deviations

To optimally utilise fi nancial and physical resources

100% Expenditure

100% Expenditure

99.9% Expenditure

0.01%Expenditure

None

To provide integrated communication services

50 000 Newsletters

50 000 Newsletters

50 000 Newsletters

None None


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To improve risk management, control and good governance

Unqualifi ed audit opinion



None None

To manage and establish the trading account for the Provincial fl eet

Trading Account not established

Trading Account operational

None Trading account not yet operational

Identifi ed billing systems not suitable for province

Reasons for deviations and strategy to overcome area(s) of under performance

• Delays in establishment of a Trading Account

A benchmark exercise was conducted with the Gauteng, Free State and Western Cape Provinces in order to model their billing system. Each of the identifi ed systems had either technical or fi nancial challenges. Additional advise was sought from SITA which proposed that it would be cheaper to develop our own billing system. A User Requirement Specifi cation (URS) has since been developed in this regard.

Notwithstanding the above, 2 811 vehicles have since been fi tted with tracking devices as part of the Real Time Fleet Management System. The system has been successful in reducing cases related to stolen vehicles, unauthorised use of vehicles, deviation from approved routes and speeding. In addition, a computerised trip authority was developed and piloted.

Performance indicatorsPerformance indicator






Sub-Programme: Employee Health and Wellness Programme% of Women in SMS positions

New indicator 50% 37.5% -12.5% Preference will be given to suitably qualifi ed women

% of Persons with disabilities employed in the Department

New indicator 2% 2.1% 0.1% None

% of Persons with disabilities employed in SMS positions

New indicator 2% 2.08% 0.08% None

Sub-Programme: Human Resource Utilisation and Capacity Development% of Performance agreements signed

99.7% 100% 99.8% - 0.2% None

Number of interns enrolled

20 100 107 7 Additional interns appointed

Number of learners enrolled

None 50 50 None None

Sub-Programme: Integrated PlanningAnnual Performance Plan approved

1 1 1 None None

Annual Report compiled

1 1 1 None None

Sub-Programme: Financial Management


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Performance indicator






% of Invoices received and paid within 30 days

100% 100% 99% -1% None

Total amount of revenue collected

R26 million R20 million R 23,97million R3,97 million Extra revenue generated from auctions


• % of Women in SMS positionsInterviews for 07 Senior Management posts were conducted in the previous fi nancial year. The posts were referred back to the Department and will be re-advertised in the next fi nancial year. Preference will be given to suitably qualifi ed women when appointments are made.

Sub-programme expenditure Sub- programme name





Actualexpenditure R’000


Offi ce of the MEC

7,640 7,640 0 7,675 7,620 55

Management of the Department

4,546 4,546 0 3,534 3,440 94

Corporate Support

208,355 208,355 0 333,062 332,894 168

TOTAL 220,541 220,541 0 344,271 343,954 317

Linking performance with budgets

The Programme managed to spend almost all of its budget which resulted in achievement of almost all of its planned outputs during the year under review.

4.2. PROGRAMME 2: PUBLIC WORKS

Purpose

The purpose of the Programme is to provide a balanced and equitable provincial government building infrastructure by promoting accessibility that is sustainable, integrated and environmentally sensitive which supports economic development and social empowerment.

Sub-programmes

• Programme Support • Design• Construction• Maintenance• Property Management


• To provide effective infrastructure programme management services• To provide project planning and design services• To provide effective infrastructure implementation• To maintain Provincial immovable assets and equipment• To manage the immovable property and facility portfolio

Strategic objectives, performance indicators, planned targets and actual achievementsTogether with client departments, the Department managed to complete 90 building project during the year under review.


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Actual achievement2013/ 14



To provide effective infrastructure programme management services

5 IPMPs 6 IPMPs 3 IPMPs -3 IPMPs Over estimation of targets

To provide project planning and design services

150 Designs 64 Designs 59 Designs

5 Designs Budgetary constraints from client departments

To provide effective infrastructure implementation

27 Projects registered




Excludes projects implemented by IDT

To maintain provincial immovable assets and equipment

5 527 Immovable assets



96Immovable assets

More assets identifi ed during the year

To manage the immovable property and facility portfolio

Asset register updated

Updated assets register

Asset register updated

None None


• Submission of IPMPsThe published submission date as per the Division of Revenue Act (DoRA) 2013 was 30th August 2013. However, the IPMPs were received after the deadline. Only the Department of Education (DoE), Department of Health (DoH) and Department of Social Development (DSD) submitted IPMPs for the 2014/15 fi nancial year. The remaining Departments (i.e. Department of Community Safety, Security and Liaison (DCSSL) and Department of Economic Development, Environment and Tourism (DEDET) with the exception of DCSR are not required to comply as infrastructure development does not form part of their core objectives. The DCSR did not submit an IPMP for the 2014/15 fi nancial year.

• Completion of detailed designs for client departmentsThe Department of Education (DOE) and Department of Health (DOE) were required to review their plans during the fi nancial year. As a result, their targets for designs were reduced. The Department of Social Development (DSD), changed the initially identifi ed site to an alternative site which resulted in the re-prioritization of other projects.

Performance indicatorsPerformance indicator Actual

achievement 2012/13





Sub-programme: PlanningCompiled and submitted compliant CAMP as per requirement of Provincial Treasury

New indicator 1 1 None None

Sub-programme: DesignNumber of detailed designs completed for implementation

150 64 59 -5 Budgetary constraints from client departments

Sub-programme: Construction: Project implementation for Department of Health and OthersNumber of projects completed within the contract period

38 20 11 -9 Poor performance, changes in scope of work and delayed payments and electrical connections by ESKOM


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Performance indicator Actual achievement 2012/13





Number of projects completed within budget

38 20 18 -2 Budgetary constraints from client department

Value of contracts awarded to HDI contractors expressed as a percentage of the total value of contracts awarded

New indicator 85% 100% 15% More responsive bids received

Value of contracts awarded to WOE’s contractors expressed as a percentage of the total value of contracts awarded


Sub-programme: Construction: Project Implementation for Department of EducationNumber of projects completed within the contract period

86 52 60 8 Additional repair of storm damage projects completed

Number of projects completed within budget

86 52 72 20 Additional repair of storm damage projects completed

Value of contracts awarded to HDI contractors expressed as a percentage of the total value of contracts awarded


Value of contracts awarded to WOE’s contractors expressed as a percentage of the total value of contracts awarded


Sub-Programme: Building MaintenanceNumber of condition assessments conducted on state-owned buildings

New indicator 600 0 -600 Budgetary constraints

Sub-Programme: Immovable Asset ManagementPercentage of erf data checked for completeness to the total number of erven in Asset Register

New indicator 50% 55% 5% More assets identifi ed

Sub-Programme: Facilities OperationsNumber of properties receiving facilities management services

New indicator 9 9 None None

Sub-Programme: Real Estate ServicesNumber of leases concluded in respect of offi ce accommodation

New indicator 64 45 -19 No responsive bids for some offi ce accommodation advertisements


• Projects completed within the contract period and budgetThe reasons for under performance on Health and Other’s projects range from poor contractors’ performance, community disputes and cash fl ow problems. The Department will facilitate the strengthening of project monitoring structures such as frequent seating of Consultant Review meetings and engagement of relevant stakeholders.


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• Condition assessment of buildingsThe Department was unable to appoint a suitable service provider for the assessment of state owned buildings due to budgetary constraints. The target will be implemented in the 2014/15 fi nancial year.

• No responsive bids received for alternative offi ce accommodationA total number of 9 tenders were advertised for offi ce accommodation as per client Departments’ requests. However, there were no responsive bids in this regard. DPWRT is currently exploring alternative options to deal with the increasing demand for offi ce accommodation by the provincial government.

Sub-programme expenditureSub- programme Name

2013/14 2012/13 Finalappropriation R’000

Actual expenditure R’000

(Over)/under expenditure R’000

Finalappropriation R’000


(Over)/under expenditure R’000

Programme Support

2,948 2,948 0 2,970 2,970 0

Design 16,257 16,257 0 15,188 15,188 0

Construction 18,955 18,955 0 25,449 25,386 63

Maintenance 15,243 15,232 11 17,976 17,893 83

Property Management

539,118 539,118 0 463,744 463,709 35

TOTAL 592,521 592,510 11 525,327 525,146 181

Linking performance with budgets

The Programme spent all its budget allocation for the year under review. The capital budget for most of the projects implemented by Public Works is allocated to the various client departments and therefore the expenditure above is not linked to most of the Programme’s performance outputs.

4.3. Programme 3: Transport Infrastructure

Purpose

The purpose of the Programme is to promote accessibility and the safe, affordable movement of people, goods and services through the delivery and maintenance of transport infrastructure that is sustainable, integrated and environmentally sensitive, and which supports and facilitates social empowerment and economic growth.

Sub-programmes

• Programme Support • Infrastructure Planning • Design • Construction • Maintenance


• To provide project planning and design services• To construct and maintain roads infrastructure

Strategic objectives, performance indicators, planned targets and actual achievementsThe Mpumalanga road network is a core component of the provincial infrastructure. The Programme used RAMS to obtain road asset information, from pavement condition, road location and road inventory information on the state-controlled road network.


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To provide project planning and design services

7 Designs 10 Designs 13 Designs 3 Designs Project split into 2 parts and fl ood damage design split into 3 parts leading to increase in number of designs

To construct and maintain roads infrastructure

42 km of gravel roads upgraded to surface roads



-13 km of gravel roads upgraded to surface roads

Labour unrests and decrease of scope on one project due to budgetary constraints

63 km of roads rehabilitated



-31 km of roads rehabilitated

Community unrest, legal disputes and budgetary constraints


Progress on one project (D2976) was affected by labour unrests and the project was eventually terminated. The scope of D2516 (Bundu – Machipe) was reduced.

Rehabilitation of roads

One project was delayed due to community unrest at the Greenvalley - Moloro road (D3928). There was a litigation issue relating to 2 projects (P95/1 and P182/1) which has since been resolved. The contractor required rock fi ll (P127/2) which delayed the project. Three projects could not be started as planned due to budgetary constraints. it is anticipated that these projects will be implemented in the 2014/15 fi nancial year.







Sub-programme: Infrastructure DesignNumber of Infrastructure designs completed

7 10 13 3 Project split into 2 parts and fl ood damage design split into 3 parts increasing the number of designs

Sub-programme: Infrastructure ConstructionNumber of lane kilometres of new surfaced roads constructed

None 4 0 -4 Relocation of 6 household had to be done to provide suffi cient road reserve

Number of kilometers of gravel roads upgraded to surfaced roads

42 43 30 -13 Labour unrests and decrease of scope on 1 project due to budgetary constraints


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Sub-programme: MaintenanceNumber of lane-km of surfaced roads rehabilitated

63 163 132 -31 Community unrest, legal disputes and budgetary constraints

Number of square meters of surfaced roads resealed

159 758 821 400 387 387 -434 013 Focus shifted to patching

Number of kilometers of gravel roads re-gravelled

185 109 119 10 Due to the need for fl ood damage repairs which required more regravelling

Number of square meters of blacktop patching (including pothole repairs)

248 286 85 000 235 535 150 535 High demand due to heavy rainfall and poor road condition

Number of kilometers of gravel roads bladed

33 216 25 000 28 878 3 878 High demand due to heavy rainfall and poor road condition

Number of kilometers of surfaced roads assessed (VCI’s completed as per TMH12)

New indicator 5 100 5 349 249 Target excluded roads which were not yet surfaced

Number of kilometers of gravel roads assessed (VCI’s completed as per TMH9)

New indicator 5 500 3 053 2 447 Budgetary constraints


• Reseal of surfaced roadsFunds for reseal work were used for patching of potholes due to the poor condition of various roads that were exacerbated by heavy rainfall in the province.

• Budget shortfallsThe roads maintenance programme experienced budget constraints. This inevitably, hindered achievement of some performance targets for maintenance.

Sub-programme expenditureSub- programme Name







Programme Support

2,124 2,124 0 1,568 1,375 193

Infrastructure Planning

60,944 60,944 0 58,361 58,299 62

Design 33,008 33,008 0 32,218 32,202 16Construction 1,071,031 1,071,031 0 848,350 845,799 2,551Maintenance 882,024 881,548 476 689,894 689,776 118TOTAL 2,049,131 2,048,655 476 1,630,391 1,627,451 2,940

Linking performance with budgetsThe Programme managed to spend all its allocated budget for the year despite under-performance on some targets. The expenditure includes projects at various stages of completion.


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4.4 Programme 4: Transport Operations

Purpose

The purpose of the Programme is to plan, regulate and facilitate the provision of integrated land transport services through co-ordination and co-operation with national planning authorities, CBOs, NGOs and the private sector in order to enhance the mobility of all communities particularly those currently without or with limited access.

Sub-programmes

• Programme Support • Public Transport Subsidies• Transport Safety and Compliance• Transport Systems• Infrastructure Operations


• To manage scholar transport• To provide integrated transport planning• To develop and maintain public infrastructure• To manage transport operations• To regulate public transport

Strategic objectives, performance indicators, planned targets and actual achievementsThe Programme continued to deliver high-quality Non-Motorized Transport infrastructure (e.g. culverts and walkways). Furthermore, major investment in public and scholar transport services were made in order to achieve a more effi cient and accessible public transport system. It is unfortunate that some of the transport operations targets could not be achieved due to the nationwide bus strike.







To manage scholar transport

66 615 Learners

66 615 Learners

66 613 Learners

-2 Learners

Reconfi guration of routes

To provide integrated transport planning

Provincial Freight Plan

None None None None

To develop and maintain public infrastructure

1 IRMA Project

6 IRMA Projects

7 IRMA Projects

1 IRMA project

Project funded from savings within the Programme

To manage transport operations

10 102 Operators registered



-298 Operators registered

Actual output depends on the number of applications received

To regulate public transport

581 Permits 848 Permits 336 Permits -512 Permits Actual output depends on the number of applications received

1 886 Roadblocks

1 500 Roadblocks

1 928 Roadblocks

428 Roadblocks

Increased enforcement and road safety campaigns


• Permits converted to operating licensesThe actual output is a dependable variable and therefore is affected by a number of inputs beyond the control of the Department. This will be withdrawn in the next MTSF.


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Sub-programme: Public Transport ServicesNumber of buses subsidised

564 564 567 3 Additional vehicles do not have fi nancial implications because operators are subsidized per kilometre, not per vehicle

Number of routes subsidised

154 154 154 None None

Number of vehicle kilometers subsidised

28 231 474 27 075 476 25 738 518 -1 336 958 4 Weeks lost due to the nationwide bus strike (April- May)Kilometers

operated per vehicle

New indicator 48 004 45 394 -2 610

Passengers per vehicle

New indicator 102 240 95 055 -7 185

Passengers per trip operated

New indicator 69.2 68.5 -0.7 None

Staff per vehicle New indicator 2.2 2.2 None NoneNumber of subsidised passengers

51 170 721 51 224 747 48 050 838 - 3 173 909 4 Weeks lost due to nationwide bus strike (April- May)Number of

unsubsidized passengers

New indicator 6 438 673 5 875 873 -562 800

Number of trips subsidised

876 039 833 040 786 250 -46 790

Sub-programme: Scholar TransportNumber of scholar transport operators contracted

101 111 111 None None

Number of scholar transport routes monitored

716 341 1 561 1 220 Target under stated

Number of learners transported

66 615 66 615 66 613 -2 None

Sub-programme: Transport InfrastructureNumber of projects completed

1 6 7 1 Additional project funded from savings within the Programme

Sub-programme: Regulation and ControlNumber of roadblocks conducted

1 886 1 500 1 928 428 Increased enforcement and road safety campaigns


• Nationwide bus strike There was a nationwide bus strike during the month of April 2013 and May 2014. As a result, 6 of

the Transport Operations targets could not be achieved by year end.


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Sub-programme expenditureSub- programme name







Programme Support

1,866 1,866 0 1,509 1,497 12

Public Transport Subsidies

951,369 951,369 0 927,340 927,196 144

Transport Safety and Compliance

22,673 22,673 0 22,096 21,972 124

Transport Systems

16,332 16,332 0 17,485 17,461 24

Infrastructure Operation

25,607 25,607 0 19,931 19,300 631

TOTAL 1,017,847 1,017,847 0 988,361 987,426 935

Linking performance with budgetsThe Programme managed to utilize all its budget during the year under review. 4.5 Programme 5: Community Based Programme

Purpose

The purpose of the Programme is to manage the implementation of programmes and strategies that lead to the development and empowerment of communities and contractors. This includes the provincial management and co-ordination of the Expanded Public Works Programme.

Sub-programmes

• Programme support • Community development• Innovation and empowerment• EPWP coordination and monitoring


• To coordinate the successful implementation of EPWP 2• To facilitate and implement the Enterprise Development Programme• To facilitate and implement the National Youth Service

Strategic objectives, performance indicators, planned targets and actual achievementsIn line with achieving EPWP imperatives, 66 520 job opportunities were created through this programme. Emerging contractors were capacitated through the Sakh’abakhi programme whilst and the roads maintenance projects presented opportunities for job creation and poverty alleviation through the Siyatentela Road Maintenance Programme.







To coordinate the successful implementation of EPWP 2

85 024 Jobs created

76 136 Jobs created

66 520 Jobs created

-9 616 Jobs created

Minimal reporting by municipalities and provincial departments on social and infrastructure sectors

To facilitate and implement the Enterprise DevelopmentProgramme

40 Emerging Contractors



None None


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To facilitate and implement the National Youth Service

600 Youth enrolled

Training of benefi ciaries transferred to Department of Education (MRTT)


• Work opportunities createdThe total number of work opportunities created was not achieved due to minimal reporting however, appointment of capacity in sector departments and municipalities will be coordinated. Further the department will embark on a capacity building exercise for reporting of all projects implemented by the province.

• Implementation of the National Youth Services (NYS)The training of NYS benefi ciaries was transferred to the Department of Education as per the EXCO resolution.







Number of EPWP work opportunities created by the Provincial Department of Public Works/ Roads

New indicator 8 908 8279 -629 Budgetary constraints

Number of Full Time Equivalents (FTEs) created by the Department of Public Works/ Roads

New indicator 4 309 4 400 -91 Over achievement is due to the longer project period on the Siyatentela Roads Maintenace Programme

Number of Benefi ciary Empowerment Interventions

New indicator 4 3 1 The Vuk’uphile empowerment intervention was not implemented due to budgetary constraints

Number of work opportunities created by the province

85 024 76 136 66 520 -9 616 Minimal reporting by municipalities and provincial departments.Number of Full

Time Equivalents (FTEs) created by the province

New indicator 32 655 24 515 -8 140

Number of work opportunities created for women by the province (%)

45 063 41 874 41 377 -497

Number of work opportunities created for people with disabilities by the province (%)

365 1 522 1 040 -482 Most of the people with disabilities are already receiving grants and therefore are not eligible for employment


2013/14 2013/14

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Number of work opportunities created for Youth by the province (%)

45 063 30 454 36 019 5 565 Over achievement is due to the increased number of youth registered across the sectors


• Work opportunities createdThe total number of work opportunities created was not achieved due to minimal reporting by sector departments and municipalities. The Department will embark on a capacity building exercise to ensure reporting of all projects implemented by the province.

• Benefi ciary InterventionThe fourth intervention was not budgeted during the 2013/14 fi nancial year. In view of this, the target for this indicator was supposed to be 3 instead of 4. In future, the Department will endeavour to improve its target setting. Sub-programme expenditureSub- programme name







Programme Support

1,609 1,609 0 1,407 1,320 87

Community Development

40,493 40,493 0 10,164 10,164 0

Innovation and Empowerment

15,180 14,610 570 18,735 18,895 (160)

EPWP Coordination and Monitoring

10,888 10,888 0 8,825 8,726 99

TOTAL 68,170 67,600 570 39,131 39,105 26

Linking performance with budgetsThe budget for this Programme is not directly linked to its performance outcomes. However, the budget was for coordination purposes whereas the capital budget was allocated to various state and non-state entities.

5. TRANSFER PAYMENTS 5.1 Transfer payments to all organisations other than public entities

The table below refl ects the transfer payments made for the period 1 April 2013 to 31 March 2014.

Name of transferee

Type of organisation

Purpose for which the funds were used

Did the dept. comply with S38(1) (j) of the PFMA

Amount transferred (R’000)

Amount spent by the entity

Reasons for the funds unspent by the entity

Mpumalanga Provincial Taxi Council

Private Enterprise

Funding: taxi operators

Yes R1,500 R1,500 N/A


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6. CONDITIONAL GRANTS6.1 Conditional grants and earmarked funds received

The table below describes each of the conditional grants and earmarked funds received by the Department.

Road Maintenance Infrastructure GrantDepartment who transferred the grant

National Treasury

Purpose of the grant To supplement provincial roads investments and support preventative, routine and emergency, maintenance on provincial road networks. Ensure provinces implement and maintain road asset management systems. Promote the use of labour-intensive methods in road maintenance. Repair roads and bridges damaged by fl oods.

Expected outputs of the grant Improvement of the Provincial roads infrastructure

Actual outputs achieved Improvement of the Provincial roads infrastructure

Amount per amended DORA R 1,489,393

Amount received (R’000) R 1,489,393

Reasons if amount as per DORA was not received

Not applicable

Amount spent by the department (R’000)

R1,489,364


Not applicable

Reasons for deviations on performance

Not applicable

Measures taken to improve performance

Not applicable

Monitoring mechanism by the receiving department

Monthly monitoring contract meeting and physical monitoring

Public Transport Operations GrantDepartment who transferred the grant

National Treasury

Purpose of the grant To provide supplementary funding towards public transport services provided by the provincial department.

Expected outputs of the grant To provide access to transport services for the citizens of the Province

Actual outputs achieved Provision of access to transport services for the citizens of Mpumalanga Province

Amount per amended DORA R462,926

Amount received (R’000) R462,926


Not applicable


R462,919


Not applicable


Not applicable


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Not applicable


Monthly monitoring contract meeting and physical monitoring

Expanded Public Works Incentive GrantDepartment who transferred the grant

National Treasury

Purpose of the grant Performance based grant for job creation

Expected outputs of the grant EPWP Incentive Grant

Actual outputs achieved EPWP Incentive Grant

Amount per amended DORA R20,691

Amount received (R’000) R20,691


Not applicable


R20,691


Not applicable


Not applicable


Not applicable


Monthly monitoring contract meeting and physical monitoring done. Reporting done according to prescribed template from DORA

7. CAPITAL INVESTMENT7.1 Capital investment, maintenance and asset management plan

The Department of Public Works, Roads and Transport (DPWRT) is responsible for implementation of building infrastructure projects relating to Provincial Government. These projects are implemented as per the Infrastructure Project Management Plans received annually from client departments. The budgets for these projects remain with the client departments who are responsible for payment of invoices after verifi cation by the Department of Public Works, Roads and Transport. These assets/projects remain on the asset registers of the client departments until they are completed and thereafter transferred to the Department of Public Works, Roads and Transport.

Infrastructure projects which have been completed in the 2013/14 fi nancial year:Project name Scope of work Targeted

completion date

Actual completion date

Reasons for variances

Department of Health1. Ermelo Hospital Administration repairs 1-Apr-13 4-Apr-13 The contractor was

instructed to attend to snag list before handover.

2. Mmamethlake Hospital

Construction of new concrete palisade fencing

16-Apr-13 23-Apr-13 The contractor was instructed to attend to snag list before handover.

3. Shongwe Hospital

Refurbishment of mortuary 21-May-13 24-May-13 The contractor was instructed to attend to snag list before handover.

4. Ermelo Hospital Renovation of pharmacy and corridor repairs

31-Jun-13 31-May-13 None.


2013/14 2013/14

35

Project name Scope of work Targeted completion date



5. Phosa Village Community Health Centre

Construction of new CHC and 2 x 2 accommodation units

23-Apr-13 11-Jun-13 The contractor was behind schedule.

6. Witbank Hospital Construction of new baby ICU and maternity ward

28-Jun-13 14-Jun-13 Additional work done as requested from the hospital management.

7. Shongwe Hospital

Repairs of roof for laundry building 8-Jul-13 18-Jun-13 None.

8. Mashishing Community Health Centre

Construction of new community health centre

3-Dec-11 21-Jun-13 Delays due to connection of electricity.

9. Tekwane Community Health Centre

Completion of outstanding works: 2x2 bed house, gate house, palisade fencing including related works

13-Jun-13 28-Jun-13 Delays due to late payment.

10. Belfast Hospital Completion of new OPD, casualty, pharmacy, maternity wards and general renovations

7-Sep-12 31-Jul-13 Delay due to termination of contractor and appointment of another.

11. Dundonald Community Health Centre

Paving at the clinic 28-Feb-14 27-Feb-14 None.

12. Sibuyile Clinic Paving at the clinic 10-Mar-14 28-Feb-14 None.13. Embhuleni

HospitalPaving at the hospital 15-Mar-14 10-Mar-14 None.

Department of Social Development1. Delmas Sub-

District Offi cesCompletion of outstanding works (new block of 20 offi ces)

7-Jul-13 12-Jun-13 Good performance by contractor.

2. Volksrust Social Services Offi ce

Completion of outstanding works (offi ces)

19-Aug-13 19-Aug-13 There was additional scope of work.

Department of Culture, Sport and Recreation1. Perdekop

LibraryConstruction of a new library 15-Dec-12 30-Oct-13 Contractor was

behind schedule.2. Vaalbank

(Libageni) Library

Completion of community library 28-Feb-14 13-Mar-14 Outstanding electrical upgrade by Eskom. The contractor has applied for an extension due to the delays.

Department of Community Safety, Security and Liaison1. Mpumalanga

Traffi c Training College

Construction of bulk services for the new Traffi c Training College

25-Oct-13 29-Oct-13 None.

Department Of Education1. Holdesheim

Primary SchoolDemolition of and construction of 3 classrooms

15-Sep-13 2-Apr-13 Good performance by contractor.

2. Khuthalani Primary School

Construction of grade R classrooms, 4 toilets and fence

29-Apr-13 8-Apr-13 None.

3. Kwakwari Primary School


1-May-13 10-Apr-13 None.

4. Mandlesive Secondary School

Renovation of 26 classrooms, 20 toilets and construction of admin block, laboratory, library, computer lab, kitchen, rails and ramps


5. Alex Benjamin Secondary School (Phase1)

Construction of library, kitchen, guardhouse and fence


6. Landulwazi Primary School

Repair of storm damage 19-Jun-13 23-Apr-13 None.


2013/14 2013/14

36




7. Injabulo Combined School

Construction of 1 Grade R centre, 9 classrooms, admin block, library, computer centre, school hall, 16 toilets, fence, electricity, water, kitchen, rails and ramps, 3 sports grounds and a car park

1-Apr-13 24-Apr-13 Poor performance and slow pace of works by the contractor. Penalties were effected.

8. Maakere Secondary School

Construction of 14 Enviroloo toilets 26-Apr-13 26-Apr-13 Poor quality material was used and had to be replaced. Extension of time was approved.

9. Siphumule Primary School

Completion of works 2-May-13 26-Apr-13 None.

10. Qalani Primary School

Construction of grade R classrooms 29-Apr-13 30-Apr-13 None.

11. Qubekani Primary School

Construction of grade R classrooms 29-Apr-13 30-Apr-13 None.

12. Sihlengiwe Primary School

Completion of works 7-May-13 7-May-13 None.

13. Rhandzekile Primary School

Construction of 18 Enviroloo toilets 6-May-13 6-May-13 Poor quality material was used and had to be replaced. Extension of time was approved.

14. Khangela/MM Motloung Primary School

Completion of outstanding work (Admin block)

1-Apr-13 10-May-13 Poor performance and slow pace of works by contractor. Penalties were effected.

15. Ekuphileni Primary School


22-May-13 14-May-13 Extension of time was approved to 22 May 2013.

16. Kabete Primary School


18-May-13 20-May-13 Extension of time was approved.

17. Kgantsho Primary School

Completion of works 1-May-13 23-May-13 Slow pace of work by the contractor.

18. Ntabanhle Primary School

Repair of storm damage 31-May-13 23-May-13 None.

19. Chief S.W. Nhlapo Secondary School

Repair of storm damage 31-May-13 27-May-13 None.

20. Mahubahuba Primary School

Construction of 10 Enviroloo toilets 28-May-13 28-May-13 None.

21. Ekuphakameni Primary School

Repair of storm damage 19-Jun-13 30-May-13 None.

22. Nembe Mhlava Primary School

Construction of 14 Enviroloo toilets 3-Jun-13 3-Jun-13 None.

23. Mabhoko Secondary School

Repair of storm damage 21-Jun-13 7-Jun-13 None.

24. Chief CJ Nkosi Secondary School


25. Jabulani Primary School

Completion of works 17-Jun-13 17-Jun-13 None.

26. Vriesland Primary School

Repairs of storm damage 26-Jun-13 17-Jun-13 None.

27. Bhekokuhle Primary School


28. Siyifunile Secondary School



2013/14 2013/14

37




29. Vumazonke Primary School


30. Sijabule Primary School


31. Vulingcodvo Primary School

Repair of storm damage 30-Jun-13 2-Jul-13 Contractor had to attend to the snag list.

32. Mzinti Primary School


4-Aug-13 15-Jul-13 None.

33. Harmony Park Combined School


6-Sep-13 24-Jul-13 None.

34. Imizamoyethu Primary School


10-Jul-13 1-Aug-13 Poor and slow pace of work by contractor. Penalties were effected from 17 July 2013.

35. Thanduxolo Special School

Construction of 10 new classrooms with supporting facilities, Admin block, 4 new workshops and 2 garages

6-Feb-14 31-Jul-13 None.

36. Khulamlambo Primary School

Repairing of storm damage 13-Aug-13 1-Aug-13 None.

37. Matikwana Primary School

Construction of 16 Enviroloo toilets 4-Sep-13 29-Aug-13 None.

38. Mzilikazi Primary School

Completion of outstanding works: Admin block, ablution block 2 and kitchen

13-Sep-13 6-Sep-13 None.

39. Wolvenkop Special School

Construction of 6 new classrooms and 4 new workshops

8-Oct-13 6-Sep-13 None.

40. Mbalenhle Secondary School

Repairs of storm damage 30-Jun-13 13-Sep-13 Poor and slow pace of work by contractor. Penalties were effected.

41. Orhovelani High School

Minor renovations 13-Sep-13 13-Sep-13 None.

42. Mzimba Secondary School

Construction of 24 Enviroloo toilets 17-Oct-13 2-Oct-13 None.

43. Masizakhe Combined School

Completion of outstanding works: Renovations of 39 classrooms, home, economics, administration block and 40 ablutions


44. Molapolama Combined School

Completion of outstanding works: Renovation of 18 classrooms, 8 ablutions, water and electricity

11-Nov-13 14-Oct-13 None.

45. Mareleng Primary School

Completion of outstanding works: alterations and general site works

11-Nov-13 14-Oct-13 None.

46. Mafemani High School

Minor renovations 15-Oct-13 15-Oct-13 None.

47. Dumphries Secondary School

Completion of works: Renovations of 4 classrooms blocks, borehole, palisade fencing, construction of kitchen, administration block, 24 enviroloos and electricity upgrade


48. Ikethelo Secondary School

Construction of 7 classrooms, administration block, library, laboratory, computer centre, school hall, 17 toilets, home economics centre and fence

14-Feb-13 18-Oct-13 Electricity for the facility was upgraded. This warranted an application for a variation order which approval was protracted.


2013/14 2013/14

38




49. Ilanga Secondary School (Phase 1)

Construction of 6 classrooms, 8 toilets, fence, electricity, water and a kitchen


50. Bombani High School

Minor renovations 30-Oct-13 30-Oct-13 None.

51. Shatleng Primary School

Completion of outstanding works 22-Nov-13 12-Nov-13 None.

52. Takheleni Primary School

Repair of storm damage 03-Nov-13 27-Nov-13 Extension of time approved.

53. Lungelo Combined School

Construction of 5 new classrooms blocks, kitchen, 2 toilet blocks and jojo tank

21-Jul-13 10-Dec-13 Delay in delivery of material and late payments.

54. Ebhuleni Primary School (Phase 1)

Construction of earth works to create platforms

11-Aug-13 13-Jan-14 Late payments.

55. Mareleng Primary School (Phase 2)

Construction of 3 grade R and a kitchen

4-Sep-13 21-Jan-14 Late payments.

56. Legogote Primary School

Repairs of storm damage 29-Mar-14 06-Mar-14 None.

57. Izimbali Combined boarding School (Amsterdam)

Construction of 24 classrooms, admin block, 40 toilets, multi-purpose hall, computer centre, library, laboratory, guard house, refuse area, kitchen, dining hall, grade R, 8 dormitories, water, sewer, bulk electricity, security fencing, paving, parking, sports facilities with 3 ablutions including changing rooms, landscaping, rails and ramps

5-Mar-14 10- Mar-14 None.

58. Sakhisizwe Primary School


59. Loti Primary School


60. Tjebisa Primary School


61. Matsamo Primary School


62. NJ Mahlangu Secondary School


63. Mogobosheng Combined School


64. Zithulele Primary School


65. Alex Benjamin Secondary School

(Phase 2)

Construction of twelve classrooms, Administration block, Science laboratory, multi-purpose hall, Computer centre, four ablution blocks and general site-works

28-Feb-14 27-Mar-14 Late payments.

66. Bankfontein Combined School


67. Moekwe Primary School


68. Nkomazi EDC Repairs of storm damage 29-Mar-14 28-Mar-14 None.69. Rekwele Primary

SchoolRepairs of storm damage 29-Mar-14 28-Mar-14 None.

70. Sohphungane Combined School


71. Nelson Ngubeni Primary School



2013/14 2013/14

39




72. Tokoloho Primary School


Department of Public Works, Roads and Transport: Transport Infrastructure1. Coal haul road

D914 between P127/1 and R35 (South of Middelburg (16.2km)

Rehabilitation of coal haulage road May-13 22-May-13 None.

2. Rural access road D2975 between Luphisi and Siphelanyane (14.5km)

Upgrade from gravel to surfaced road

Apr-13 27-May-13 None.

3. Culvert on road P168 / 1 between Ermelo and Lothair

Reconstruction of fl ood damaged culvert

Sept-13 01-Aug-13 None.

4. Coal haul road D1398 between D1555 (Arnot Power station) and Hendrina (26.5km)

Rehabilitation of coal haulage road Apr-13 2-Aug-13 None.

5. Rural access roads D4390, D4385 and D4387 between Rolle and Oakley (17.5 km)


Aug-13 06 Dec-14 None.

6. Rural access road D2915 between Bundu and Machipe (13.4km)


Jun-14 31-Jan-14 None.

7. Rural access roads D3969 and D3974 between Kildare and Cunningmoore (Rolle Oakley Phase 2) (11km)


Oct-14 28 Feb-14 None.

8. Coal haul road P95/2 between the Gauteng Border South of Bronkhorst-spruit and Delmas (17.9km)

Rehabilitation of coal haulage road June-14 04-Mar-14 Contractor well performing ahead of the program.

9. Road P52/3 between Kriel and Ogies (27km)

Rehabilitation of coal haulage road Dec-14 Mar -14 None.

Department of Public Works, Roads and Transport: Transport Operations1. Steyndorp culvert

bridgeConstruction of culvert bridge 31-May-14 27-May-13 None.

2. Kwaggafontein sidewalk

Construction of sidewalk 31-May-14 28-Jun-13 Delay in supply of material.

3. Sibange 1 culvert bridge

Construction of culvert bridge 31-Oct-13 15-Oct-13 None.

4. Sibange 2 culvert bridge

Construction of culvert bridge 31-Oct-13 04-Nov-13 None.

5. Mayfl ower (Emageidini) culvert bridge

Construction of culvert bridge 28-Feb-14 30-Jan-14 Good performance by contractor.


2013/14 2013/14

40




6. Dr J.S Moroka Bus shelters and sidewalk

Construction of bus shelters and sidewalk

08-Jan-14 28-Feb-14 Delays due to heavy rainfall.

7. Karino bus shelters

Construction of bus shelters 20-Mar-14 17-Mar-14 None.

The following projects were not completed in the 2013/14 fi nancial year: Project name Scope of work Targeted

completion date

Revised completion date

Reasons for the delays

Department of Health1. Rob Ferreira

Hospital (Phase 4E - Part 1)

New Learning Resource Centre building

30-May-14 30-May-14 Works is 100% complete. Awaiting issue of Certifi cate of Occupancy from Mbombela Municipality

2. Rob Ferreira (Phase 4E - Part 2)

New Residence accommodation 13-Feb-13 TBC Outstanding approval of variation order and extra items requested by the Hospital.

3. Mapulaneng Hospital

Renovations and additions to existing TB Ward. Construction of Storage and Helipad

23-Sep-13 31-May-14 Termination and appointment of new contractor.

4. Sinqobile Community Health Centre

New community health centre 31-Aug-13 30-Apr-14 Poor quality of works leading to termination of the contract.

5. KwaMhlanga Hospital

Erection of palisade fencing 24-Jan-14 23-May-14 Extension of time due to revised specifi cations and positioning of boundary walls.

6. KwaMhlanga Hospital

(Phase 3C)

Construction of new intensive care unit (ICU), and causality. Renovations and additions to existing theatre block

28-Feb-14 28-May-14 Rainfall and slow progress in attending to raised snags.

7. Wakkerstroom Community Health Centre

New community health centre 28-Feb-14 30-May-14 Slow progress and poor performances by contractor.

8. Piet Retief Hospital

Construction of a mortuary 28-Feb-14 30-Aug-14 Slow progress and poor performances by contractor.

9. Themba Hospital CE Workshop and general wards 07-May-12 30-May-14 Slow progress and poor performances by contractor.

10. Ermelo Hospital OPD, Casualty, Theatres 15-Aug-09 30-May-14 Delay due in fi nalizing design and specifi cations for mechanical works. Extension of time is being adjudicated.

11. Mmamethlake Hospital

Upgrading of bulk civil engineering services

14-Feb-14 13-May-14 Rainfall. Revised completion date to be confi rmed as soon as extension of time is approved.

12. Tweefontein Community Health Centre

Construction of new community health centre

06-Oct-12 30-May-14 Omission of crucial components of the facility which compromised its functionality.


2013/14 2013/14

41




13. Embhuleni Hospital

Maintenance works 28-Feb-14 31-May-14 Delayed payment.

14. Vlakplaas Clinic Roof water proofi ng, renovation and repair of architectural, electrical, mechanical, water defect on clinic and nurses home

10-Mar-14 31-May-14 Delayed payment.

15. Nhlazatshe Ext 4 Clinic

Roof water proofi ng, renovation and repair of architectural, electrical, mechanical, water defect on clinic and nurses home


16. Tjakastad Clinic Roof water proofi ng, renovation and repair of architectural, electrical, mechanical, water defect on clinic and nurses home


17. Betty’s Goed Clinic



18. Hartbeeskop Clinic



19. Dundonald Clinic



20. Glenmore Clinic Roof water proofi ng, renovation and repair of architectural, electrical, mechanical, water defect on clinic and nurses home


21. Fernie1 Clinic Roof water proofi ng, renovation and repair of architectural, electrical, mechanical, water defect on clinic and nurses home


22. Diepdale Clinic Roof water proofi ng, renovation and repair of architectural, electrical, mechanical, water defect on clinic and nurses home


23. Rob Ferreira Hospital

(Phase 4D)

Upgrading of wards 6, 8, 7, 9, 10, 11, paediatric ward and rehabilitation centre

24-Mar-14 22-Jun-14 Sectional handover was achieved on the wards. Delay attributed to completion of works on snag list, additional and remedial works.

Department of Social Development1. Daggakraal

Branch Offi ceConstruction of a new block of 10 offi ces

28-Feb-14 30-Apr-14 Numerous site challenges such as electricity connections, revised fence design and outstanding earthworks.

Department of Culture, Sport and Recreation1. Driefontein

LibraryConstruction of a new library 30-Oct-13 30-Apr-14 Termination of

contract andnew contractor appointed.


2013/14 2013/14

42




2. Klarinet Library Construction of a new library 05-Nov-13 30-Jun-14 Termination of contract. Appointment of a new contractor is in process.

Department of Economic Development, Environment and Tourism1. Water Bottling

PlantConstruction of Water Bottling Plant 28-Oct-13 30-May-14 Installation of

water production equipment.

Department of Education1. Hlalisanani

Primary SchoolSubstitution of 18 Classrooms, 2 Grade R Facilities, Administration block, Library, Computer centre, Fence, Water, Rails and ramps, 27 Toilets, Kitchen, 3 Sports Ground and Car park

12-Oct-13 30-Jun-14 Late payment.

2. Mzimhlophe Secondary School

Substitution of unsafe structures Grade R centre 4 toilets and fence, 14 Classrooms, Administration Block, Library, Computer Centre, Kitchen, rails and Ramps, 27 toilets, 3 Sports Ground and Car park

10-Jan-14 30-May-14 Late payment and additional works.

3. Shobiyana Secondary School

Completion of outstanding works and Construction of a School Hall

03-Mar-09 30-Jun-14 Poor performance by contractor which resulted to termination which was disputed by the contractor.

4. Ilanga Secondary School (Phase 2)

Construction of 13 Classrooms, Kitchen, Administration Block, Laboratory, Library, Computer Centre, School Hall, 20 Toilets, 3 Sports Ground and a Car Park

28-Oct-13 31-Jul-14 Late payment.

5. Amersfoort Primary School

Construction of 6 Classrooms, 10 Toilets, Water, Fence and Electricity

28-Feb-14 30-Jun-14 Outstanding external works and electrical connection.

6. Frank Maghinyane Secondary School

Construction of 10Classrooms ,Administration block, laboratory, library, computer centre, kitchen, school Hall, 28 toilets,3Sports Ground and a Car Park

12-Mar-14 30-Jun-14 Additional works required

7. Mgcobaneni Primary School

Construction of 19 Classrooms, Grade R facilities, Admin Block, Library, Laboratory, Computer Centre, Kitchen, 28 Toilets, 3 Sports Ground and a Car park

8-Feb-14 31-Jul-14 Cash fl ow challenges experienced by contractor.

8. Samuel Mhlanga Primary School

Construction of 19 Classrooms, Grade R facilities, Admin block, Laboratory, Library, Computer Centre, Kitchen, School Hall, 28 Toilets, 3 Sports Ground, Car Park

20-Mar-14 30-Jun-14 Non-payment by client department due to budgetary constraint.

9. Seabe Secondary School

Construction of 10 Classrooms, Admin block, Laboratory, Library, Computer Centre, Kitchen, Guard House, Electricity, 16 Toilets, 3 Sports Ground, Car Park

21-Feb-14 30-Jul-14 Non-payment, community strikes and challenges with electrical installation.

10. Arnot Colliery Primary School (Phase 2)

Construction of 9 Classrooms, Grade R facilities, Admin Block, Computer Centre, School Hall, Ablution Block and a Sports Ground

5-Oct-13 30-Jun-14 Delayed payment and water connection.

11. Schulzendal Primary School

Substitution of 15 Classrooms, Admin block, Library, Computer centre, Fence, Water, Grade R facilities, 27 Toilets, Kitchen, 3 Sports Ground and Car park

25-Mar-14 31-Jul-14 Non-payment and instruction to slow down by the Department.


2013/14 2013/14

43




12. Berbice Primary School

Construction of 6 Classrooms, Grade R facilities, Admin block, Computer Centre, Fence, Electricity, Rails and Ramps and demolition of 4 Classrooms

09-Oct-13 31-Jul-14 Pending approval of variation order for electrical connections.

13. Kwashuku Secondary School

Construction of 2 Classrooms, 4 Toilets, Electricity, Borehole and demolition of existing unsafe mud structures

30-Mar-14 30-May-14 Late payment.

14. Gedlembane Secondary School

Construction of 8 Classrooms, Computer Centre, Library, Laboratory, School Hall, Administration block, 18 Toilets, Fencing, Renovation of 20 Classrooms, and Demolition of an Administration Block and Toilets

28-Feb-14 29-Aug-14 Poor performance and non-cooperation by contractor

15. Tsakane Inclusive School

Construction of 10 Classrooms with supporting facilities, Admin Block, Media Centre, School Hall, 4 New Workshops, Guard House, Fence, Water, Electricity, Garages and 2 Sports Ground with 5 Toilets,

13-Feb-14 15-Jul-14 Electrical connection

16. Osizweni Special School

Constructions of 8 Classrooms, Admin Block, Media Centre, School Hall, 4 Workshops, Guard House, Fencing, Water and Electricity

13-Feb-14 31-Oct-14 Non-payment and instruction to slow down by the client department.

17. Esithembisweni Primary School

Storm damage repairs and replace roof

19-Jun-13 31-Jul-14 Reluctant movement by informal dwellers on site.

18. New Coronation [Klarinet] Secondary School

Construction of 28 Classrooms, Admin block, Laboratory, Library, Computer Centre, School Hall, 40 Toilets, Fence, Electricity, Water, Kitchen, Rails and Ramps, 3Sport Ground and Car Park

17-Jan-14 31-Jul-14 Suspension of works by contractor due to non-payment.

19. Netherlands Park Secondary School

Construction of 28 Classroom, Admin block, Laboratory, Library, Computer Centre, School Hall, 40Toilets, Fence, Electricity, Water, Kitchen, Rails and Ramps,3 Sports Ground, Car Park

01-Jan-14 30-Jun-14 Late payment and delays in electrical connection.

20. Ubuhle Buzile Secondary School

Construction of 28 Classrooms, Admin block, Laboratory, Library, Computer Centre, School Hall, 40 Toilet , Fence, Electricity ,Water, Kitchen, Rails and Ramps, 3Sports Ground, Car Park

31-May-14 30-Sep-14 Late payment and reluctant movement by informal dwellers on site.

21. Emakhazeni Boarding School

Construction of 24 Classrooms, 35 Toilets, Computer Centre, Library, Laboratory, Guard House, Refuse Area, Kitchen, Dining Hall, Water, Sewer, Bulk Electricity, Security Fencing, Parking Facilities, Sports Facilities, landscaping, Rails and Ramps, Grade R and 8 Dormitories

30-Nov-13 30-Sep-14 Delayed due in the upgrading of the existing water treatment plant

22. Mayfl ower Secondary School

Completion of School Hall, Waterproofi ng of Roofs, Upgrade of Electricity and Minor Civil Remedial Works

15-Feb-14 16-May-14 Eskom delay in connecting the school hall transformer. Extension of time has been submitted.

23. Methula Secondary

Completion of School Hall, Waterproofi ng of Roofs, Parking and Paving, Upgrade of Electricity and Minor Civil Remedial Works

15-Feb-14 16-May-14 Eskom delay in connecting the school hall transformer. Extension of time has been submitted.


2013/14 2013/14

44




24. Rorobhani Secondary School

Completion of outstanding works: completion of 10 classrooms, admin blocks, laboratory, library and 2 toilets block

15-May-13 30-Jun-14 Additional works required

25. Khunjiliwe Secondary School

Construction of 28 classrooms, admin block, computer centre, 42 toilets, library, laboratory, school hall, guard house, kitchen, sport facilities, landscaping, ramps and rails.

07-Jul-2010 30-Sep-14 Structural defects were identifi ed on some classrooms.

26. Hlalisanani Primary School

Substitution of 18 Classrooms, 2 Grade R Facilities, Admin block, Library, Computer centre, Fence, Water, Rails and ramps, 27 Toilets, Kitchen, 3 Sports Ground and Car park

12-Oct-13 30-Jun-14 Late payment.

27. Mzimhlophe Secondary School

Substitution of unsafe structures Grade R centre 4 toilets and fence, 14 Classrooms, Administration Block ,Library, Computer Centre, Kitchen, rails and Ramps, 27 toilets, 3 Sports Ground and Car park

10-Jan-14 30-May-14 Late payment and additional works.

Transport Infrastructure: Construction• Bethal Traffi c

Control Centre (Weighbridge)

Construction of weighbridge Mar-14 Jun-14 Land acquisition for interchange on N17 from correctional services by National Public Works.

• Road between Sibange and Masibekela (2km) and Bridge across Komati River (CRDP)

Upgrading of access road and bridge construction

Mar-14 Jul-14 Community service strikes, Labour unrest, and house relocations to provide suffi cient road access

The following are multi-year projects that are currently in progress and will be completed in the next fi nancial year(s): Project Name Scope of Work Targeted

Completion DateDepartment of HealthDepartment of Social Development1. Marite Branch Offi ce

(CRDP)Construction of a new block x 16 offi ces 18-May-14

2. Amsterdam Branch offi ce

Construction of a new block x 20 offi ces 03-Oct-14

3. Hendrina Branch Offi ce Construction of a new block x 16 offi ces 19-Feb-15Department of Culture, Sport and Recreation1. Umjindi Library Construction of new library 29-May-142. Dundonald (Glenmore)

LibraryConstruction of new library 25-Aug-14

Department of Education1. Tekwane South Secondary

SchoolConstruction of 28 classrooms, administration block, laboratory, library, computer centre, school hall, 40 toilets, fence, electricity, water, kitchen, rails and ramps,3 sports ground, car park

31-Mar-15

2. Luthango Primary School Storm damaged repairs 30-Sep-143. Lekazi Primary School Storm damaged repairs 30-Apr-144. Phumalanga Primary

SchoolStorm damaged repairs 30-Apr-14

5. Siyamukela Primary School

Storm damaged repairs 30-Apr-14

6. Enzani Primary School Storm damaged repairs 30-Apr-147. Sitfokotile Secondary



2013/14 2013/14

45

Project Name Scope of Work Targeted Completion Date

8. Laerskool Kragveld Storm damaged repairs 30-Apr-149. Magodongo Primary


10. Mayisha Secondary School


11. Sidhlasonke Secondary School


12. Freddie Sithole High School


13. Mathupa Primary School Storm damaged repairs 30-Apr-1414. Matikwana Primary


15. Seruane Secondary School


16. Malatse Secondary School


17. Mathethe Primary School Storm damaged repairs 30-Apr-1418. Inyeti Primary School Storm damaged repairs 30-Apr-1419. Mabombe Primary School Storm damaged repairs 30-Apr-1420. Tegwan’s Nest Combined


21. Basizeni Special School Storm damaged repairs 30-Apr-1422. Bonani Primary School Storm damaged repairs 30-Apr-1423. Thorisong Primary School Storm damaged repairs 30-Apr-1424. Nganana Primary School Storm damaged repairs 30-Apr-1425. Phangela Primary School Storm damaged repairs 30-Apr-1426. Vulamehlo Primary School Storm damaged repairs 30-Jun-1427. Proposed Additions and

Alterations at Mbhandule School (Phase 1)

Construction of 8 Classrooms, Administration Block, Toiltets, Fence, Guard House, Water and Electricity

30-Nov-14

28. Proposed Additions and Alterations at Chueu Primary School

Demolition of 14 existing classrooms and construction of 10 classrooms, administration block, 15 toilets, Fence, Library, Grade R Centre (with 4 toilets and a fence), 3 Sports Ground and a Car Park

30-Nov-14

29. Takheleni Primary School Storm damaged repairs 30-Apr-1430. Hoërskool Middelburg Storm damaged repairs 30-Apr-1431. Sabeka Primary School Construction 12 Classrooms, Grade R facilities,

Administration block, Library, Computer, 20Toilets, Fence, Electricity, Kitchen, Gate House and Car Park

31-Mar-15

Transport Infrastructure1 D3928 between Green

Valley and Moloro (6.8 km) (Including Repair of Flood damaged Bridge)

Rehabilitation of non-coal haulage road Jul-14

2 Road D2969 between Manzini and Swalala (3.8km)

Rehabilitation of non-coal haulage road Nov-14

3 Road P182/1 (R542) between P120/1 (van Dyksdrift) and R35 (13 km) (Phase 1)

Rehabilitation of coal haulage road Dec-14

4 Coal Haul Road P120/1 from eMalahleni to D914 (14km) (km 5.0 - 19.0)

Rehabilitation of coal haulage road Jan-15

5 Road D797 between D2940 (Tonga) and R571 Naas (14km)

Rehabilitation of non-coal haulage road Jan-15

6 Road P127/2 between Duvha Power Station (D914) and N4 (21 km)

Rehabilitation of coal haulage road Feb-15


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Project Name Scope of Work Targeted Completion Date

7 Road D545 (the Kruisfontein Road) between Dullstroom and Kruisfontein (15km)

Upgrade from gravel to surfaced road Feb-15

8 P17/6 (R538) Jerusalem to R40 at Caster-bridge (16km)

Rehabilitation of non-coal haulage road including drainage, pedestrian accommodation and road protection issues on entire road

Sep-15

9 Road P95/1 between Limpopo Border and Verena (25.7km) Phase 1

Rehabilitation of non-coal haulage road Dec-15

Maintenance

Summary of maintenance expenditureThe table below shows the actual expenditure incurred for maintenance related Programmes:Infrastructure projects

2013/14 2012/13Final AppropriationR’000

Actual ExpenditureR’000

(Over)/Under ExpenditureR’000

Final AppropriationR’000

Actual ExpenditureR’000

(Over)/ Under ExpenditureR’000

New and replacement assets

62,782 98,735 (35,953) 43,147 94,086 (50,939)

Existing infrastructure assets

1,495,440 1,404,336 91,105 1,283,391 1,228,694 54,697

- Upgrades and additions

346,450 238,636 107,814 261,901 239,903 21,998

- Rehabilitation, renovations and refurbishments

741,452 880,343 (138,891) 606,673 581,421 25,252

- Maintenance and repairs

407,538 285,357 122,182 414,817 407,370 7,447

TOTAL 1,558,222 1,503,071 55,152 1,326,538 1,322,780 3,758

Plans to close down or down-grade any current facilities

There were no plans to close down or down-grade any facilities.

Progress made on the maintenance of infrastructure

Public Works

The Department continues to do day to day routine maintenance to the Riverside Government Complex with its limited budget. Emergency repairs and maintenance is undertaken as and when required in the respective cost centres and other 6 shared government offi ce buildings. These buildings are Kwamhlanga, Piet Koornhof, Batho Pele, Jerry van Vuuren, Elukwatini and Anderson Street.

Transport Infrastructure

As the province tries to manage trade-offs between its ever-growing maintenance backlog and resource constraint, it still maintains its operations required to sustain the functionality and structural integrity of its road network. Maintenance of roads infrastructure continued throughout the 2013/14 fi nancial year. Maintenance operations embarked upon were mainly upgrade, rehabilitation, routine and preventative maintenance.

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

Public Works

The Executive Council approved the Department’s request for client departments to pay a user charge on the government buildings that they occupy. Interactions with Provincial Treasury and the respective departments are underway in order to explore a suitable model for implementation.


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Transport Infrastructure

There has been more pressure on the Department’s limited available capital budget as there are growing needs towards rural access development. Although the Department is in receipt of the Provincial Roads Maintenance Grant, the increasing backlog partly attributed to fl ood damages and maintenance of the coal haulage road network poses a major challenge.

Changes in the Asset Holdings

Opening Balance R 290, 740Adjustments R 50Disposals (R 8, 324)Additions R 51, 368TOTAL R 333, 504

Of the R333, 504 million the Department spent R51, 193 million to acquire the following movable additional assets (R’000):

Transport Assets R 8, 094Computer Equipment R 1, 715Furniture and Offi ce Equipment R 1, 312Other machinery and Equipment R40, 072TOTAL R51, 193

Disposal of assets

Six (6) auctions were held during the fi nancial year:Region Month Amount Middleburg 21 May 2013 R 215,356.30Kwamhlanga 12 June 2013 R 1 ,929,362.18Nelspruit government garage 16 October 2013 R 242,671.69Mhala 24 October 2013 R 401,712.08Ermelo 05 February 2014 R 267,725.58Nelspruit government garage 12 February 2014 R 226,166.12TOTAL R 3,282,993.95

Material losses

Material losses to the value of R 0,538 million were recorded for the 2013/14 fi nancial year.

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

All the Department’s assets were recorded in the Asset Register. Measures taken to update the register include bar coding, physical verifi cation and reconciliation of all assets according to the Asset Management Policy. Performance asset inspections on buildings are undertaken on a monthly basis.

The current state of the Department’s capital assets, for example what percentage is in good, fair or bad conditionName Good Fair PoorComputers 60% 20% 20%Furniture 50% 30% 20%Vehicles 50% 35% 15%Other Machinery and Equipments 60% 25% 15%

Progress made in addressing the building maintenance backlog

The annual budget allocated for the maintenance of buildings owned by the Department of Public Works, Roads and Transport is inadequate to make a positive impact on the maintenance backlog. The Riverside Government Complex and other shared buildings as well as the plumbing and air-conditioning system in these buildings need urgent attention before they become a health hazard. Interactions with Provincial Treasury and the respective departments are underway to explore mechanisms for implementation of user charge for occupation of buildings.


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Progress made in addressing the transport infrastructure maintenance backlog

Overall, the maintenance backlog is widening as there is a dire need to increase the baseline for transport infrastructure. Great strides have been achieved thus far with the completion of the study on the Department’s maintenance modus operandi. Solutions and best practices have been offered and series of training courses scheduled for technical teams throughout the province in the coming fi nancial year. The computerized Maintenance Management System (MMS) is complete with the completion of the user specifi cation, functional specifi cation, and business analysis. With the full implementation of the MMS, the department seeks to achieve more effective and effi cient maintenance productivity.


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2013/14 2013/14

PART C:GOVERNANCE


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1. INTRODUCTIONCommitment by the Department to maintain the highest standards of governance is fundamental to the management of public fi nances and resources. Users want assurance that the Department has good governance structures in place to effectively, effi ciently and economically utilize the state resources, which is funded by the tax payer.

2. RISK MANAGEMENT The Department recognises that it has a responsibility to manage both internal and external risks as a key component of good corporate governance. It is further committed to embedding risk management into its daily operations. It believes that effective risk management will help the Department achieve its objectives and provide better services.

Risk management strategies to identify risks and manage the risks

The Department has an approved Risk Management Policy and Risk Management Strategy. Risk assessments are conducted annually to all programmes to identify possible risks that can hamper the achievement of their objectives. The risks are then evaluated and an action plan is developed to mitigate/ manage those risks. Progress on the implementation of the action plan is monitored monthly and quarterly. The progress report is then presented to the Risk Management Committee, Management Meetings and Audit Committee.

3. FRAUD AND CORRUPTION: The Department’s Fraud Prevention Plan (FPP) and the progress made in implementing the fraud prevention plan

The Fraud Prevention Plan (FPP) of the Department was developed based on the risks identifi ed during the Risk Identifi cation and Rating Project. The plan is aimed at creating a culture which is intolerant to fraud; detecting, preventing and investigating fraud; and taking appropriate action against fraudsters. The main principles of the plan are to:

• Create a culture which is intolerant to fraud• Deterrence of fraud• Prevention of fraud which cannot be deterred• Detection of fraud• Improving the culture of ethical behaviour

The Department also conducts fraud awareness workshops to develop a culture of ethical behaviour and are encouraged to report fraudulent activities

Mechanisms in place to report fraud and corruption and how these operate. eg: Whistle blowing - The need for offi cials to make confi dential disclosure about suspect fraud and corruption

The Department has an approved whistle blowing policy. The aim of the policy is to provide procedures in terms of which an offi cial can report suspected fraud. Cases of fraud can also be reported to the fraud and corruption hotline, Public Protector, Presidential Hotline, Public Service Commission. These processes are further explained during the fraud awareness workshops.

How these cases are reported and what action is taken

Most cases are reported through the National Anti-Corruption Hotline and Public Service Commission. The hotline administrators screen the information and send the cases to the Premier’s Offi ce (Integrity Unit) for further investigation.

4. MINIMISING CONFLICT OF INTERESTTo minimise confl ict of interest within Supply Chain Management all practitioners sign the code of conduct for Supply Chain Management. There are four committees within the Supply Chain Management section, Specifi cation Committee, Evaluation Committee, Adjudication Committee and Finance Committee. In each committee sitting all members present declare their interest on record and also sign the declaration of interest indicating whether they have interest or not. The requirements for disciplinary action are found in Resolution 1 of 2003 of the PSCBC (i.e. against employees at level 1 to 12) and Chapter 7 of the SMS Handbook.


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5. CODE OF CONDUCT The Code of Conduct contains issues of personal conduct, accountability, transparency and private interests. All employees in the Department have an obligation to understand the application of the procedures contained in the Code of Conduct. This means that the employees who breach the Code of Conduct are subject to disciplinary action. The requirements for disciplinary action in the context of the Code of Conduct are found in Resolution 1 of 2003 of the PSCBC (i.e. against employees at level 1 to 12) and Chapter 7 of the SMS Handbook.

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES DPWRT focuses on the safety, health and wellbeing of its employees. In 2013/14 we continued our strong commitment to the Zero Harm philosophy – a vision that aspires to achieve an incident and injury-free work environment where every person comes to work and goes home again safely.

To underpin Zero Harm, the Department has assigned every worker with certain roles and responsibilities to ensure their safety and the safety of everyone else in their area. This includes senior management, line supervisors and employees. A clear understanding of our roles and responsibilities will help DPWRT to achieve our Zero Harm vision.

7. PORTFOLIO COMMITTEES The Portfolio Committee has a mandate in terms of section 114(2) of the Constitution of the Republic of South Africa, 1996 read with rule 124(b) of the Rules and Orders of the Mpumalanga Provincial Legislature, to oversee the performance of the Department and hold it accountable through various measures.

Portfolio Committee Meetings with DPWRT: 01 April 2014 - 31 March 2014 Name of Report Date

Budget Vote 8 07 May 2013Talking Legislature to the People 16 - 20 September 203Annual Report 07 November 2013

The information below outlines progress on implementation of the key resolutions emanating from the three reports:

7.1 Budget Vote

• The Department should come up with a detailed implementation plan for the Shova Kalula Programme and monitor it closely to ensure that learners benefi t from it.

A detailed implementation plan for the Shova Kalula Programme was developed and submitted to the committee. The plan outlines how identifi cation of benefi ciaries is done jointly with the Department of Education (Schools) and the monitoring process.

• The Department should ensure that all the challenges that are experienced in the implementation of the scholar transport programme are addressed as a matter of urgency and ensure that suppliers appointed fully understand the terms of their contracts.

The implementation of the scholar transport programme has been successful in the fi nancial year. Outsourcing of 65% of the monitoring of scholar transport services is due to the fact that independent monitoring is the requirement of the Model Tender Contract Document (Notice 1148 of 2005) and Passenger Transport Regulations contained in the Division of Revenue Act. The service provider has been adhering to the Service Level Agreement - revised as per submission to SCOPA.

• The Department should ensure that a comprehensive plan is place to contribute to CRDP and proper monitoring of projects is maintained.

In the 2013/14 fi nancial year, the Department has allocated more than R200 million to CRDP municipalities, in comparison to R43 million in the previous fi nancial year. Dipaliseng Municipality has since been included as part of the CRDP municipalities. Project monitoring of CRDP projects is line with the other monitoring mechanisms for all infrastructure projects. CRDP outputs are included under Transport Infrastructure in PART B (Performance Information) of this report.

• The Department should ensure that the Maintenance Plan of the Government Buildings is implemented.

The Department has since received approval from EXCO to implement user charges on provincial buildings in order to increase the maintenance budget. Treasury is currently exploring the most feasible model for calculation and allocation of these funds.


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7.2 Taking Legislature to the People

• The Department must fast track completion of the KwaMhlanga Hospital.

The project had not completed at year end. however, the contractor has been given until 17 April 2014 to achieve practical completion.

• The Department must ensure that all the challenges concerning the Moloto road are properly attended to.

The Department has improved signage on the road and introduced intersection controls at 3 points along the road to improve safety. The Steering Committee on Moloto Rail Development has recommended the rapid rail option as the preferred mode of transport.

7.3 Annual Report

• The Department should ensure that they request assistance from the Minister to ensure that the Department meet its responsibilities in accordance with the National Land Transport Act No. 5 of 2009.

The Department has since requested funding to develop and update the Integrated Transport Plan(ITP) for the local Municipalities within Ehlanzeni District. The ITP is a requirement for municipalities as a planning, implementation and monitoring authority thus contributing to a credible Integrated Development Plan. Furthermore, the request aims to place two interns per District Municipality for the 2014/15 fi nancial year to support the full time employees within the Transport Units.

• The Department must ensure that the draft Provincial Policy is gazetted and approved accordingly, Furthermore, the Department must ensure that the policy is implemented and properly monitored.

The draft Provincial Land Transport Policy is in place, it will be gazetted and proper monitoring will take place after approval.

• The Department must ensure that the Provincial Regulatory Entities are established in the province to comply with the National Land Transport Act 5 0f 2009.

The establishment of the Interim Provincial Regulatory Entity has been a key achievement within the fi nancial year as the functions of the Entity were performed by the Operating Licensing Board. The entity will enhance the departmental ‘s compliance to the NLTA and facilitate the separation of functions as prescribed by the Act.

• The Department must ensure that the Provincial Land Transport Framework is fi nalised in order to comply with Section 35 of the National Land Transport Act 5 of 2009.

The Provincial Transport Policy has been gazetted for Public comments.

• The Department must ensure that it develops a Provincial Transport Policy and ensure that it is approved and implemented. Furthermore, the Department must ensure that impoundment fees are properly stipulated in the policy and are properly collected.

A draft has since been developed and currently the document is being assessed against the legal implications. It is envisaged that the policy will be fi nalized during the 2014/15 fi nancial year.

8. SCOPA RESOLUTIONSThe Select Committee on Public Accounts (SCOPA) met with the Department on the following dates:

• 25 April 2013, • 31 May 2013, • 13 June 2013, • 06 August 2013 and • 22 August 2013

The purpose of the meetings was to deliberate on the Annual Report with its Financial Statements, report of the Auditor -General, report of the Accounting Offi cer and Performance information. The Accounting Offi ce, Senior Management and the Audit Committee attended the meetings. The table below outlines the progress made towards implementation of the resolutions taken:


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Resolution No.

Subject Details Response by the Department Resolved Yes/No

3.1.1(i)

Irregular Expendi-ture

The Accounting Of-fi cer must improve contract manage-ment in the Depart-ment.

All contract documents have been centralized to Supply Chain Management. The Department is also in a process of procuring and Contract Man-agement System (CMS) that will focus on creation of an online central repository, tracking of impor-tant milestones, work fl ow management for con-tract review and approval process and obligation management.

Ongoing

(ii) The Accounting Of-fi cer must review the monitoring con-tract awarded to the Service Provider to determine if the contract could not be terminated and transfer this function to the Monitoring and Evaluation Unit of the Department.

The Department is liable under law to fulfi l the con-tractual duties of the scholar transport monitoring contract. Termination of the contract will be viewed as a breach of contract and may result in lawsuit or other legal liabilities. Model Tender Contract Docu-ment (gross based) issued in terms of section 42 (6)b of the National Land Transport Act (05 of 2009) sub section 34. The Department opted for an inde-pendent monitoring fi rm for the following reasons:1. The function was transferred without staff and

the Department established in 2010 whilst imple-menting the project.

2. At the time, the expertise in transport was not readily available.

3. The Department took queue from the passenger transport service in other provinces which use in-dependent monitors as prescribed in section 34 of the MTCD.

Ongoing

(iii) The Executive Au-thority must ensure that the Account-ing Offi cer make a determination of whether the R652 000 per month to the service provider is value for money to the Department considering that the service provider has only six offi cials mon-itoring 507 routes in the province.

According to the SLA, the service provider is re-sponsible for monitoring 65% of the scholar trans-port routes. The service provider has deployed 13 offi cials, 13 vehicles, 13 cameras and 13 GPS to per-form this task. Monthly reports are submitted to the Department which indicates that the service pro-vider is performing satisfactorily in this regard. Recommendations are made on how the service could be improved. Penalties are imposed on ser-vice providers that do not comply with SLA. The In-dependent monitor certify claims before payment is made.The Department of Transport (DOT) has ap-pointed a service provider to develop the Nation-al Operational Guidelines and Safety/Norms and Standards for Learner Transportation implementa-tion. It is hoped that these standards will regulate the escalating costs in transportation of learners.

Yes

(iii) The department must explain to the Committee why this function could not be carried out by appointed offi cials of the department?

It is crucial that the service provided by scholar transport operators be monitored to ensure that the services are in line with the service level agree-ment. The Department opted to appoint a moni-toring fi rm to monitor and verify claims for scholar transport. Based on the past experiences where collusion and allegations of fraudulent activities were prevalent, the Department opted to appoint an independent monitoring fi rm in line with the pro-visions of section 42. Other provinces that provide gross based passenger services which is similar to scholar transport also utilise independent monitors .

Yes

(iv) The Accounting Of-fi cer must ensure that service provid-ers appointed trans-fer skills to the offi -cials in the depart-ment.

The tender document and the Service Level Agree-ment for scholar transport monitoring makes provi-sion for the transfer of skills and to this extent the departmental offi cials continue to acquire project management and monitoring capabilities. In future, management of this contractual obligation will be enhanced through the Contract Manage-ment System.

Yes

(v) The Accounting Offi cer must ensure that-in the award-ing of contracts-women, youth, peo-ple with disabilities must be considered as well as the geo-graphic spread.

The Department will endeavor to ensure geo-graphic representation and inclusion of the previ-ously marginalized groups in the mainstream econ-omy. Appointment of service providers for scholar transport services will be done in line with the Pub-lic Finance Management Act (PFMA), Preferential Procurement Policy and the National Operational Guidelines and Safety/Norms and Standards for Learner Transportation.

Yes


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Resolution No.


3.2.1(i)

Com-pleted Projects

The Executive Au-thority must take disciplinary actions against the Ac-counting Offi cer, for misleading the MEC, Portfolio Com-mittee, Committee, The Mpumalanga Provincial Legisla-ture and the people of Mpumalanga by causing the De-partment to table before the Legisla-ture and the Auditor General an annual report with incorrect information.

Processes are underway to establish the facts on the matter however, the Committee will be in-formed accordingly.

Yes

(ii) The Executive Au-thority must with-draw incorrect infor-mation contained on pages 17 and 24 of the Annual Re-port (2011/12).

The Accounting Offi cer has written letters to Auditor General and Provincial Treasury apologizing and withdrawing the incorrect information.

Yes

(iii) The Accounting Offi cer must in-form the Auditor General, Provincial Treasury of the in-correct information contained on page 17 and 24 of the an-nual report

The Accounting Offi cer has written letters to Auditor General and Provincial Treasury apologizing and withdrawing the incorrect information.

Yes

3.3.1(i)

Project Carried Forward

The Accounting Of-fi cer must improve the departmental project manage-ment capacity

In order to avoid the recurrence of the challenges that were experienced on Road P17/6, the Depart-ment has adopted and iinstitutionalized the Infra-structure Delivery Management System (IDMS) as the benchmark for infrastructure delivery. IDMS offers systems and tools to guide and assist Imple-mentation Managers all through the project devel-opment cycle. In addition to the above, an exter-nal Project Manager (PMU) and consultant are as-signed to each roads project to deal with its plan-ning, design and implementation. These profession-als render continuous skills transfer and in- service training to departmental technical personnel.

Yes

3.4.1(i)

Finan-cial Re-porting Frame-work

The Accounting Of-fi cer must ensure that Annual Finan-cial Statement is prepared as per the requirements of the PFMA.

During the 2013/14 fi nancial period, Quarterly Fi-nancial Statements were prepared and submitted to Internal Audit, Audit Committee and Accoun-tant General for evaluation of compliance to the PFMA and related guidelines.

Yes

(ii) The Accounting Of-fi cer must establish the Committee to review the Annual Report before sub-mitting as indicated in the previous fi -nancial year.

The Department has since established a Financial Reporting Unit that assist the Monitoring and Evalu-ation Unit in preparing the annual report. The two units and all Programme Managers serve in the An-nual Report Committee that review the report be-fore it is submitted to the above-mentioned over-sight authorities and Auditor General.

Yes

(iii) The Executive Au-thority must ensure that the Accounting Offi cer implement House Resolutions with due diligence.

The Executive Authority undertakes to track all reso-lutions from the oversight authorities are implement-ed with due diligence by the Accounting Offi cer.

Ongoing


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Resolution No.


3.5.1(i)

Procure-ment and Contract Manage-ment

The Accounting Of-fi cer must verify ser-vice providers and validate informa-tion submitted on SBD4 forms prior to awarding any work to service providers.

Supply Chain Management Unit currently checks and verifi es directorship of all companies against the PERSAL system. Those companies found to have misrepresented their facts and contravened PSASA, 1994 are immediately terminated on LO-GIS. However, access to the system used by Auditor General to verify other offi cials outside PERSAL has not yet been obtained. The Department is engag-ing the Provincial Treasury on the matter.

Yes

(ii) The Accounting Offi cer must take disciplinary action against any offi cial (s) who award work to government of-fi cials without vali-dating misleading information submit-ted on SBD4 forms .

The Department remains committed in the fi ght against fraud and corruption. However upon scru-tiny of the SBD4 forms, it came to light that some service providers failed to disclose their interest and this constitutes misrepresentation of facts. SCM offi -cials were instructed to be more vigilant when veri-fying the information provided on the SBD4 forms. Supply Chain Management Unit currently checks and verifi es directorship of all companies against the PERSAL system. However, access to the system used by Auditor General to verify other offi cials outside PERSAL (eg. SAPS, Local Government, Cor-rectional Services, etc). has not yet been obtained. The Department is engaging the Provincial Treasury on the matter.

Yes

(iii) The Accounting Of-fi cer must take dis-ciplinary actions against all offi cials of the department who had been found to conduct business with gov-ernment.

The investigation has been fi nalized and the report was referred to labour relations for implementation.

No

(iv) The Accounting Offi cer must en-sure that all profi ts earned by offi cials doing business with government must be recovered.

The matter for recovery of profi ts earned by offi cials doing business with government has been referred to the State Attorneys.

No

(v) The Executive Au-thority must ensure that the Premier’s call during the state of the nation ad-dress, of no govern-ment offi cial will be allowed to do busi-ness with govern-ment is implement-ed.

The matter has been prioritized as mentioned in the previous slide and the Department will also await further guidance from DPSA which is currently draft-ing legislation to this regard.

Ongoing

(vi) The Accounting Of-fi cer must submit the report with the fi nd-ings of the investiga-tion conducted by the Internal Audit of the Department.

12 Offi cials were found to be doing business with government. Suppliers in which persons in service of other state institutions have an interest are 8 with a total expenditure of R10 196 929.87. The recom-mended amount for recovery is R1, 398 749.Interest in Supplier: persons in the service of the au-ditee are 4 with a total expenditure of R293 283.60 and the amount recommended for recovery is R160 954.

No


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Resolution No.


3.6.1(i)

Revenue Manage-ment

The Accounting Of-fi cer must collect revenue and all monies due to the department

Progress on collecting revenue due to the Depart-ment is as follows:Late payment of shared servicesR15 382 900 was recovered in the 2013/14 fi nancial year. Monthly reminders/letters of demand were sent to all Accounting Offi cers to settle their con-tractual obligations, on shared services within the Riverside Government Complex.Payment of debts for ex-employeesR1 900 203 was recovered in the 2013/14 fi nan-cial year: Debts for Ex-employees, are recovered through the following methods:- • Deductions from leave gratuity.• Deductions from Pension Payouts

Pilgrims RestR502 983 was recovered in the 2013/14 fi nancial year. Furthermore, 95% of the debts, relates to non-payment of services and are irrecoverable since the majority of the debtors are unemployed.Sizwe Auctioneers PTYDepartmental claim against the company was submitted to Master of Court and awaiting selling of assets.

Ongoing

3.7(i)

Service Delivery-Public Works

The Accounting Offi cer must time-ly take disciplin-ary action against offi cial(s) respon-sible for leasing un-used buildings (fruit-less expenditure)

The Department followed all the right processes in procuring the referred buildings which include bid advertisement as per the specifi cation of the num-ber of square meters required and budget confi r-mation with client departments. Notwithstanding the efforts to ensure optimal utilization of procured building spaces, DPWRT believes that the fi nding should be apportioned to the relevant depart-ments who are under utilizing the buildings. However, the matter has been referred to Internal Audit for further investigation.

No

(ii) The Accounting Of-fi cer must ensure that the developed contract manage-ment system is ef-fective and ensure record manage-ment of contract.

A Manager was appointed in order to increase the contract management capacity within the Prop-erty Management Unit. All contract documents have been centralized to Supply Chain Management. The Department is also in a process of procuring and Contract Man-agement System (CMS) that will focus on creation of an online central repository, tracking of impor-tant milestones, work fl ow management for con-tract review and approval process and obligation management.

Yes

3.8.1(i)

The Accounting Of-fi cer must ensure that adequate and effi cient measures are put in place to ensure that the de-partment exercise effective oversight responsibility on fi -nancial and perfor-mance reporting.

The Department has since established a Financial Reporting Unit that assist the Monitoring and Evalu-ation Unit in preparing the annual report. The two units and all Programme Managers serve in the Annual Report Committee that review the report before it is submitted to the above-mentioned oversight authorities and Auditor General. During the 2013/14 fi nancial period, Quarterly Financial Statements and Non-Financial Performance Re-ports were prepared and submitted to Internal Au-dit, Audit Committee and Accountant General for evaluation of compliance to the PFMA and related guidelines.The Department also continues to develop/review its policies and standard operating procedures as part of enhancing its internal controls.

Yes

(ii) The Accounting Of-fi cer must prevent this fi nding from re-curring in the future fi nancial years.

The Audit Opinion for 2012/13 fi nancial was only obtained at end of July 2013 and therefore not all remedial actions on the audit actions plan were im-plemented. However, the Department is confi dent that this fi nding will not recur in the 2013/14 fi nancial year.

Yes


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Resolution No.


3.9.1(i)

Condi-tional Grant

The AO must strengthen its ef-forts to continue with creating more EPWP job opportuni-ties to increase its in-centive conditional grant.

Plans to improve EPWP coordination and report-ing aimed at accessing more incentive grant were presented and approved by the PMC and EIE Clus-ter for submission to EXCO. During 2013/14 the De-partment managed to create 4400 FTE jobs against its target of 4301 whilst the province only created 24 515 against a target of 32 655.

Yes

3.10.1(i)

Investi-gations

The Accounting Of-fi cer must report the fi ndings and penal-ties of all on-going investigation to the Committee

▪The investigation on unauthorised position of a Government vehicle was fi nalized and the offi cial was acquitted on charges after appeal.▪The CETA matter was resolved amicable and the Department only paid R525 000 instead of R1,993.992.

Yes

3.11.1(i)

Accruals The Accounting Of-fi cer must develop a strategy of ensur-ing that all invoices are received in time and paid within 30 days.

A process fl ow for invoice management has been developed. The fl ow chart indicates the following key activities amongst others:▪submission of invoices is centralized to the Expen-diture Section, ▪registration of invoices on Creditor’s Control reg-ister and ▪distribution/follow-ups of outstanding orders with responsibility managers.

Yes

(ii) The Accounting Of-fi cer must put mea-sures and systems to detect and prevent unauthorized ex-penditure.

The Department continuously develop or review its internal controls (e.g. policies, standard operating procedures, etc.) in order to avoid unauthorized expenditure. In-year monitoring systems are also enhanced to detect unauthorized expenditure. Once discovered, such expenditure is disclosed in the Annual Financial Statements of the Depart-ment.

Yes

(iii) The Provincial Trea-sury must analyse the accruals of the department and provide advice on their treatment to the department and the committee.

The Budget and Finance Committee resolved that all Departments should fund their accruals within their budget allocations for 2013/14. Subsequently, all Departments were given an opportunity to revise their APPs to accommodate the accruals. Further-more, cost curtailment measures were introduced during the year and realized savings were used to defray some of the accruals.

Yes

3.12.1(i)

Prede-termined Objec-tives

The Accounting Of-fi cer must develop indicators that are specifi c, measur-able, achievable and time-bound.

The Annual Performance Plan (APP) of the Depart-ment consist of prescribed SMART indicators from the transport and public works sectors. These in-dicators are reviewed annually by the sectors to ensure that they measure the core mandates of the two sectors. To address the challenge of am-biguous targets, the Department is in the process of developing guidelines for strategic planning that will include how to use baseline information. These guidelines will be in line with the Treasury Guidelines for Strategic Plans and Annual Performance Plans.

Yes

(ii) The Executive Au-thority must ensure that the strategic plan of the depart-ment is evaluated to ensure that all its indicators are spe-cifi c, measurable, achievable and time-bound.

The Strategic Plan and APPs of the Department are submitted to Macro Planning, Provincial Trea-sury and National Sector Departments for evalu-ation to ensure inclusion and feasibility of all pre-scribed sectors’ indicators.

Yes

3.13.1(i)

Human Resource Manage-ment

The Executive Au-thority must ensure that the Accounting Offi cer fi ll all funded vacant post within 12 months.

38 of the 43 critical posts identifi ed in 2012/13 fi -nancial year were fi lled within 12 months. However, there were delays in fi lling of technical and senior management posts due to the limited skills base. The Department will endeavor to ensure that ad-vertised posts are fi lled within 6 months and all fund-ed vacant posts are fi lled within 12 months.

No


2013/14 2013/14

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9. PRIOR MODIFICATIONS TO AUDIT REPORTSThere were prior modifi cations to audit reports regarding revenue collected during the 2012/2013 fi nancial year.

10. INTERNAL CONTROL UNITThe Department does not have an Internal Control Unit. The Internal Audit Unit, however, has reviewed and evaluated the adequacy and effectiveness of internal controls during the various audits conducted as per the risk based annual operational plan.

11. INTERNAL AUDIT AND AUDIT COMMITTEESInternal Audit provides an independent and objective assurance service to the Accounting Offi cer and Management of the Department, thereby assisting them to achieve the broad objectives of the Department.The audit committee plays an important role in ensuring that the Department functions according to good governance, accounting and audit standards. It also monitors the adoption of appropriate risk management arrangements.

Key activities and objectives of the internal audit

Internal Audit evaluates and contributes to the improvement of risk management, internal controls and governance processes and systems such as:

• Information system environment• Reliability and integrity of fi nancial and operational information• The effectiveness of operations • Safeguarding of assets• Compliance with laws, regulations and controls

Summary of audit work done

Internal Audit conducts performance and compliance audits, as well as a review of the annual fi nancial statements and non-fi nancial reports.

Key activities and objectives of the audit committee

The Audit Committee should assist management in carrying out its responsibilities as they relate to the Department:

• Financial, Management and other reporting practices;• Internal controls and management of risks;• Compliance with laws, regulations and ethics.

Attendance of audit committee meetings by audit committee members:

Name Qualifi cations Internal or external member

If internal, position in the Department

Date appointed

Date resigned

No. of meetings attended

IT Ranape

• BTECH (Public Management & Administration

• N Higher Diploma IPublic Management & Administration

• Diploma in State Finance

External None 01-Aug-13 N/A 8

FA Keyser • Senior Certifi cate External None 01-Aug-13 N/A 7 NA Dzuguda

• B.COM• B.COM (Hons)• Certifi cate in

Taxation



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Name Qualifi cations Internal or external member

If internal, position in the Department

Date appointed

Date resigned

No. of meetings attended

MA Mashego

• LLM – Labour Law 1&2

• LLM – Company Law

• LLB• Hons. B Commerce• B. Commerce• Diploma in

State Finance & Accounting


12. AUDIT COMMITTEE REPORTWe are pleased to present our report for the fi nancial year ended 31 March 2014.

Audit Committee Responsibility

The Audit Committee reports, that it has complied with its responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1.13. The Audit Committee also reports, that it has adopted appropriate formal terms of reference as per its Audit Committee Charter and hence regulated its affairs in compliance with all of the above.

The Effectiveness of Internal Control

Our review of the fi ndings of the Internal Audit work, which was based on the risk assessment conducted in the department revealed certain weaknesses, which were then raised with the Department. The Audit Committee also met and discussed with the Member of the Executive Council all matters that were brought to our attention through Internal Audit and other management reports.

The following internal audit work was completed during the year under review:

Performance information and fi nancial statement reviews; Property and Facilities Management review; Siyatentela Project Physical Verifi cation; Overall Control environment; Evaluation of internal controls; Financial and Management Accounting review; Supply chain management review; Performance management development system (PMDS); Asset management

The following were areas of concern:

Late submission by divisions of required documentation hence a delay in audits; Incomplete and non availability of lease agreements; Poor implementation of internal controls due to staff shortage. This was found around revenue

management and leave management; Lack of segregation of duties due to vacant positions in revenue management in the districts; Inadequate maintenance and control of government vehicles in certain districts; Delay in management response to audit fi ndings raised; Lack of understanding of audit processes by internal offi cials

In-Year Management and Monthly/Quarterly Report

The Audit Committee has taken note of the content and quality of the monthly and quarterly reports prepared and issued by the Head of the Department during the period under review. The committee is of the view that a lot of improvement has taken place into the preparation of these reports when compared with the previous years and is convinced that going forward, the reports will be of an extremely high standard.

The above later statement is mainly issued due to improvements that still need to be done with regard to preparation of Financial Statements, up to a level where there would be no adjustments required on fi rst time submission. The committee also remain concerned about performance targets that are determined by National Departments, for example on EPWP, which targets are impossible to implement at provincial level yet performance is expected on these targets. These unobtainable targets reduce the performance percentage of the Department.


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Evaluation of Financial Statements

The Audit Committee has reviewed the half yearly Annual Financial Statements of the Department and has noted adjustments which had to be made to these statements. We are of the view that by the time we review the Annual Financial Statements prior to submission for external audit purposes most, adjustments which were noted during the half yearly review should not reoccur. It must be noted that during our review of the half yearly fi nancials, the committee was positively impressed by the following,

• Reduction of accruals• Payment of creditors within 30days• No unauthorised expenditure for the period under review• Reduction of wasteful and fruitless expenditure for the period under review• Improved rate of expenditure

Auditor General’s Report

We have reviewed the department’s implementation plan in respect of audit issues raised in the 2012/13 fi nancial year and we are satisfi ed that the matters have been adequately resolved except for the following:

Delay in the development and implementation of the Action Plan on the Auditor General’s report for full compliance in 2012/13 as this normally happens after the audit which is way after the beginning of the next fi nancial year.

Compliance with certain prescripts on supply chain management Non achievement of some planned targets

The Audit Committee reviewed the Auditor General report for 2013/14 annual fi nancial statements and the opinion thereof, prior to concurring/non-concurring and acceptance/non-acceptance of the conclusions by the Auditor-General.

Ms TI RanapeChairperson of the Audit CommitteeDepartment of Public Works, Roads and Transport31 July 2014


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2013/14 2013/14

PART D:HUMAN RESOURCE MANAGEMENT


2013/14 2013/14

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1. INTRODUCTIONThe information contained in this part of the annual report has been prescribed by the Minister for the Public Service and Administration for all departments in the public service.

2. OVERVIEW OF HUMAN RESOURCESOverview of HR matters

The Human Resources Management and Development programme is responsible for the provision of effi cient and effective human capital, management practice, administrative services and development. The Human Resource Management and Development programme comprises of the following sections:

i. Human Resources Practices and Administrationii. Human Resource Utilisation and Capacity Developmentiii. Employee Health and Wellnessiv. Organisational Designv. Employee Relations

Human resource serves as an engine of the Department. It is one of the key functions for ensuring that the organization meets its objectives. Without sound and proper Human Resource Management (HRM), the Department would not be able to promote service delivery. Therefore it was imperative to ensure that the management of human resources did not take a backseat to other functions but became an integral part of the operations. Overall HR Management and Development had to ensure that the Department had necessary capacities to deliver on its mandate.

Set HR priorities for the year under review and the impact of these priorities

The previous MTEF Human Resource Plan for 2010 – 2013 fi nancial years expired on the 31st March 2013. It is acknowledged that very little was achieved in the previous MTEF HR Plan that was approved by the Former MEC on 15 October 2009. Numerous factors contributed including funding.

Subsequently a new MTEF HR Plan for 2013/2014 until 2017/2018 fi nancial years (fi ve year plan). This new fi ve year plan has been approved by the MEC, Mahlangu on the 26th June 2013 and has been submitted to DPSA and Offi ce of the Premier in the Province for monitoring. The plan seeks to ensure that proper organizational structure together with human resource requirements are in place and aligned to the strategic plan of the Department.

For the 2013/2014 fi nancial year, the Human Resource Implementation Report (HRIP) was developed and submitted to DPSA as well as Offi ce of the Premier. The aim of HRIP is to track progress made on the implementation of the MTEF HR plan.

The Department set targets for the year are as follows:

i. HR to performs a strategic partner;ii. To promote optimal development of Organisational Structure and post establishment of the

Department;iii. Ensure that all human capital units are correctly funded in order to achieve HR Plan objectives.iv. To effectively and effi ciently provide staffi ng services;v. Ensure proper implementation of the diversity management process, i.e. Employment Equity

Targets, women in SMS, Youth in SMS and representation in terms of persons with disabilities across occupational categories.

vi. To manage and monitor the implementation of the Skills Development Legislation i.e. proper allocation of training and development budget using the 1% wage bill.

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

The Department has developed the HR Strategies i.e. Employment Equity Plan, Retention and Succession Plan as well as MTEF HR Plan which addressed issues such as workforce profi ling and planning as well as interventions to attract and recruit skilled and capable employees.

The policy on Retention and Retention and Succession Plan have been approved the Head of Department. These strategies provide a framework for retention and attraction of employees, particularly those who possess the skills necessary to realise and meet the strategic objectives and service delivery needs of the Department.


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Employee performance management framework

The Department has a Human Resource Utilization and Capacity Development (HRU & CD) unit which deal with the proper implementation of performance management and development system. The aim of performance management is to optimize every employee’s output in terms of quality and quantity thereby improving the overall performance of the Department and ensure service delivery. Employees who are nominated for performance bonuses are assessed by moderation committees, who then examine the evidence provided by supervisors. The Personal Development Plans are also completed to ensure that under performing employees are offered training and development programmes that will assist them to close any performance gaps.

Employee Wellness Programme (EWP)

One of the key aspects of human resource management in any organization revolves around employee health and wellness. The Department has established fully-fl edged unit aimed at promoting employee wellness programme and consistently seek to reach its entire workforce through specifi c targeted programmes. One of these programmes involves keeping in shape by participating in different sporting activities. Another signifi cant programme includes initiatives to manage HIV and AIDS and Occupational, Health and Safety programmes.

Furthermore, the department promotes employee health and wellness through various activities such as Wellness days conducted across the province, HIV and AIDS, and TB Management awareness, employee referrals and counseling sessions to all employees.

Policy development

Achievements• The Accident and Loss Policy was approved.• The Policy on the Disposal of Vehicles, Plant Equipment and Redundant Government Stock

was approved.• The Plant, Machinery and Heavy Equipment Policy was approved.

Challenges faced by the Department• Delay in the approval of organizational structure• High staff turnover of professionals. • Turnaround time for fi lling of posts• The number of cases of injury on duty increases by 217.64% from 17 in 2012/2013 to 37 in

2013/2014 fi nancial year

Future HR plans /goalsTo address the above challenges and ensure an effi cient, effective and development-oriented public service that responds to the needs of the people, the Department will in the coming fi nancial year, strengthen its policy orientation.

3. HUMAN RESOURCE OVERSIGHT STATISTICS 3.1. Personnel related expenditure

The following tables summarises the fi nal audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following:

• amount spent on personnel • amount spent on salaries, overtime, homeowner’s allowances and medical aid.

Table 3.1.1 Personnel expenditure by programme

Programme Total Expenditure (R’000)

Personnel Expenditure (R’000)

Training Expenditure(R’000)

Professional and Special Services Expenditure (R’000)

Personnel Expenditure as a % of Total expenditure

Average personnel cost per employee (R’000)

Administration 220,541 147,911 333 3,873 67.1 308,1Public Works 592,510 235,427 5 5,911 39.7 227,5Transport Infrastructure 2,048,655 352,252 7,782 78,822 17.2 169,4Transport Operations 1,017,847 44,673 17 11,578 4.4 316,8Community Based Programmes

67,600 24,572 50 8,803 36.4 501,5

TOTAL 3,947,153 804,835 8,187 108,987 20.4 212,6


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Table 3.1.2 Personnel costs by salary band

Salary band Personnel Expenditure (R’000)

% of Total personnel cost

No. of employees

Average personnel cost per employee (R’000)

Lower skilled (Levels 1-2) 130,617 16.2 941 138,8Skilled (Levels 3-5) 246,675 30.6 1 689 145,9Highly skilled production (Levels 6-8) 178,254 22.2 620 287,5Highly skilled supervision (Levels 9-12) 178,047 22.1 358 497,3Senior management (Levels 13-16) 59,562 7.4 62 960,7Contract (Levels 1-2) 1,218 0.2 78 15,6Contract (Levels 3-5) 2,000 0.3 16 125Contract (Levels 6-8) 3,230 0.3 15 215,3Contract (Levels 9-12) 502 0.1 2 251Contract (Levels 13-16) 4,730 0.6 4 1,183TOTAL 804,835 100 3 785 212,6

Table 3.1.3 Salaries, overtime, home owners allowance and medical aid by programme

Programme Salaries Overtime Home Owner’s Allowance

Medical Aid

Amount (R’000)

Salaries as % of Personnel Cost

Amount (R’000)

Overtime as % of Personnel Cost

Amount (R’000)

HOA as % of Personnel Cost

Medical Ass. (R’000)

Medical Ass. as % of Personnel Cost

Administration 98,282 66.5 2,560 1.7 5,123 3.5 6,794 4.6Public Works 157,127 66.8 4,274 1.8 12,883 5.5 12,161 5.2Transport Infrastructure

229,015 65.0 1,755 0.5 22,967 6.5 28,361 8.1


28,833 64.6 2,418 5.4 1,807 4.1 2,609 5.8

Community Based Programmes

14,799 60.2 0 0 595 2.4 780 3.2

TOTAL 528,056 65.6 11,007 1.4 43,375 5.4 51,160 6.4

Table 3.1.4 Salaries, overtime, home owners allowance and medical aid by salary band

Salary bands Salaries Overtime Home Owner’s Allowance

Medical Aid

Salaries (R’000)


Overtime (R’000)


HOA (R’000)




Lower skilled (Levels 1-2)

81,337 10.1 809 0.1 11,407 1.4 15,153 2.0

Skilled (Levels 3-5)

144,009 17.9 3,624 0.5 17,350 2.2 18,379 2.3

Highly skilled production(Level 6-8)

118,816 14.8 4,949 0.6 6,514 0.8 10,406 1.3

Highly skilled supervision(Levels 9-12)

127,352 15.8 1,614 0.2 5,228 0.6 5,893 0.7

Senior management (Levels 13-16)

46,539 5.7 0 0 2,767 0.4 1,057 0.1

Contract (Levels 1-2)

1,207 0.2 11 0 0 0 0 0


1,413 0.2 0 0 98 0 143 0


2,794 0.4 0 0 11 0 33 0


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Salary bands Salaries Overtime Home Owner’s Allowance

Medical Aid

Salaries (R’000)


Overtime (R’000)


HOA (R’000)





409 0.1 0 0 0 0 12 0


4,180 0.4 0 0 0 0 84 0

TOTAL 528,056 65.6 11,007 1.4 43,375 5.4 51,160 6.4

3.2. Employment and vacancies

The tables in this section summarise the position with regard to employment and vacancies.

The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment. This information is presented in terms of three key variables:

- programme- salary band- critical occupations

Departments have identifi ed critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate refl ects the percentage of posts that are not fi lled.

Table 3.2.1 Employment and vacancies by programmeProgramme Number of posts

on approved establishment

Number of posts fi lled

Vacancy rate Number of employees additional to the establishment

Administration 520 480 7.7 1Public Works 1086 1035 4.7 4Transport Infrastructure 2108 2080 1.3 1

Transport Operations 157 141 10.2 0

Community Based Programmes 51 49 3.9 0

TOTAL 3922 3785 3.5 6

Table 3.2.2 Employment and vacancies by salary band

Salary band Number of posts on approved establishment



Lower skilled (Levels 1-2), Permanent

942 941 0.1 0

Skilled (Levels 3-5), Permanent

1724 1689 2 0

Highly skilled production (Levels 6-8), Permanent

663 620 6.5 0

Highly skilled supervision (Levels 9-12), Permanent

403 358 11.2 0

Senior management (Levels 13-16), Permanent

75 62 17.3 4

Contract (Levels 1-2), Permanent

78 78 0 1


16 16 0 0


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Salary band Number of posts on approved establishment




15 15 0 0


2 2 0 0


4 4 0 1

TOTAL 3922 3785 3.5 6

Table 3.2.3 Employment and vacancies by critical occupationsCritical occupation Number of posts

on approved establishment



Administrative related, Permanent

236 215 8.9 0

All artisans in the building metal machinery etc., Permanent

244 210 13.9 0

Architects town and traffi c planners, Permanent

2 2 0 1

Artisan project and related superintendents, Permanent

26 24 7.7 0

Auxiliary and related workers, Permanent

30 30 0 0

Boiler and related operators, Permanent

33 33 0 0

Building and other property caretakers, Permanent

13 13 0 0

Bus and heavy vehicle drivers, Permanent

15 14 6.7 0

Cartographers and surveyors, Permanent

1 1 0 0

Cartographic surveying and related technicians, Permanent

9 9 0 0

Civil engineering technicians, Permanent

6 6 0 0

Cleaners in offi ces workshops hospitals etc., Permanent

158 158 0 0

Client inform clerks(switchboard receptionist inform clerks), Permanent

3 3 0 0

Communication and information related, Permanent

3 2 33.3 0

Electrical and electronics engineering technicians, Permanent

1 1 0 0


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Critical occupation Number of posts on approved establishment



Engineering sciences related, Permanent

57 54 5.3 1

Engineers and related professionals, Permanent

19 17 10.5 3

Farm hands and labourers, Permanent

49 49 0 0

Finance and economics related, Permanent

20 15 25 0

Financial and related professionals, Permanent

43 37 14 0

Financial clerks and credit controllers, Permanent

174 167 4 0

General legal administration & rel. professionals, Permanent

1 1 0 0

Head of department/chief executive offi cer, Permanent

2 2 0 0

Human resources & organisat developm & relate prof, Permanent

12 11 8.3 0

Human resources clerks, Permanent

74 72 2.7 0

Human resources related, Permanent

119 112 5.9 1

Information technology related, Permanent

7 7 0 0

Inspectors of apprentices works and vehicles, Permanent

22 22 0 0

Language practitioners interpreters & other commun, Permanent

1 1 0 0

Legal related, Permanent

3 3 0 0

Library mail and related clerks, Permanent

21 21 0 0

Light vehicle drivers, Permanent

24 24 0 0

Logistical support personnel, Permanent

6 6 0 0

Material-recording and transport clerks, Permanent

8 8 0 0

Mechanical engineering technicians, Permanent

9 9 0 0


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Critical occupation Number of posts on approved establishment



Messengers porters and deliverers, Permanent

5 5 0 0

Motor vehicle drivers, Permanent

14 14 0 0

Motorised farm and forestry plant operators, Permanent

2 2 0 0

Natural sciences related, Permanent

5 5 0 0

Other administration & related clerks and organisers, Permanent

135 134 0.7 0

Other administrative policy and related offi cers, Permanent

8 8 0 0

Other machine operators, Permanent

1 1 0 0

Other occupations, Permanent

15 14 6.7 0

Quantity surveyors & rela prof not class elsewhere, Permanent

12 9 25 0

Regulatory inspectors, Permanent

86 71 17.4 0

Risk management and security services, Permanent

3 3 0 0

Road superintendents, Permanent

70 69 1.4 0

Road trade workers., Permanent

10 9 10 0

Road workers, Permanent

1559 1555 0.3 0

Secretaries & other keyboard operating clerks, Permanent

156 153 1.9 0

Security guards, Permanent

3 3 0 0

Senior managers, Permanent

49 37 24.5 0

Trade labourers, Permanent

280 277 1.1 0

Trade quality controllers, Permanent

11 11 0 0

Trade related, Permanent

3 3 0 0

Water plant and related operators, Permanent

44 43 2.3 0

TOTAL 3922 3785 3.5 6

3.3. Job evaluation

Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are fi lled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of


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posts that were upgraded or downgraded. Table 3.3.1 Job evaluation by salary bandSalary band Number of

posts on approved establishment

Number of jobs evaluated

% of posts evaluated by salary bands

Posts upgraded Posts downgradedNumber % of posts

evaluatedNumber % of posts

evaluated


942 3 0 0 0 0 0


1724 8 0 0 0 0 0

Highly skilled production (Levels 6-8)

663 85 0.6 0 0 0 0

Highly skilled supervision (Levels 9-12)

403 39 0.2 0 0 0 0

Senior Management Service Band A

54 13 0 0 0 0 0

Senior Management Service Band B

14 0 0 0 0 0 0

Senior Management Service Band C

6 0 0 0 0 0 0

Senior Management Service Band D

1 2 0 0 0 0 0


78 0 0 0 0 0 0


16 0 0 0 0 0 0


15 0 0 0 0 0 0


2 0 0 0 0 0 0

Contract (Band A)

3 0 0 0 0 0 0

Contract (Band D)

1 0 0 0 0 0 0

TOTAL 3 922 150 0.27 0 0 0 0

The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.

Table 3.3.2 Profi le of employees whose positions were upgraded due to their posts being upgradedBenefi ciary African Asian Coloured White TOTALFemale 0 0 0 0 0Male 0 0 0 0 0TOTAL 0 0 0 0 0Employees with a disability

3.4. Employment changes

This section provides information on changes in employment over the fi nancial year. Turnover rates provide an indication of trends in the employment profi le of the department. The following tables provide a summary of turnover rates by salary band and critical occupations.

Table 3.4.1 Annual turnover rates by salary band Salary Band Number of

employees at beginning of period-April 2013

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover rate

Lower skilled (Levels 1-2), Permanent 1 233 0 34 2.8Skilled (Levels 3-5), Permanent 1 537 2 92 6.0


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Salary Band Number of employees at beginning of period-April 2013


Terminations and transfers out of the department

Turnover rate

Highly skilled production (Levels 6-8), Permanent 638 3 23 3.6

Highly skilled supervision (Levels 9-12), Permanent 351 1 11 3.1

Senior Management Service Band A, Permanent 51 2 0 0

Senior Management Service Band B, Permanent 12 0 1 8.3

Senior Management Service Band C, Permanent 4 0 0 0

Senior Management Service Band D, Permanent 1 0 0 0

Contract (Levels 1-2), Permanent 15 79 17 113.3Contract (Levels 3-5), Permanent 13 3 0 0Contract (Levels 6-8), Permanent 1 15 1 100Contract (Levels 9-12), Permanent 0 1 0 0Contract (Band A), Permanent 4 0 3 75Contract (Band D), Permanent 1 0 0 0TOTAL 3 861 106 182 4.7

Table 3.4.2 Annual turnover rates by critical occupation

Critical occupation Number of employees at beginning of period-April 2013


Terminations and transfers out of the Department

Turnover rate

Administrative related, Permanent

198 20 5 2.5

All artisans in the building metal machinery etc., Permanent

213 1 12 5.6

Architects town and traffi c planners, Permanent

3 0 0 0

Artisan project and related superintendents, Permanent

28 0 3 10.7

Auxiliary and related workers, Permanent

31 0 1 3.2

Boiler and related operators, Permanent

36 0 3 8.3

Building and other property caretakers, Permanent

13 0 0 0

Bus and heavy vehicle drivers, Permanent

16 0 2 12.5

Cartographers and surveyors, Permanent

1 0 0 0

Cartographic surveying and related technicians, Permanent

9 0 0 0

Civil engineering technicians, Permanent

7 0 1 14.3


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Turnover rate

Cleaners in offi ces workshops hospitals etc., Permanent

163 3 10 6.1

Client inform clerks(switchb recept inform clerks), Permanent

3 0 0 0

Communication and information related, Permanent

3 0 0 0

Electrical and electronics engineering technicians, Permanent

1 0 0 0

Engineering sciences related, Permanent

56 0 2 3.6

Engineers and related professionals, Permanent

19 0 0 0

Farm hands and labourers, Permanent

50 0 0 0

Finance and economics related, Permanent

16 0 1 6.3

Financial and related professionals, Permanent

38 0 0 0

Financial clerks and credit controllers, Permanent

171 0 4 2.3

General legal administration & rel. professionals, Permanent

1 0 0 0

Head of department/chief executive offi cer, Permanent

2 0 0 0

Human resources & organisat developm & relate prof, Permanent

13 0 1 7.7

Human resources clerks, Permanent

77 0 4 5.2

Human resources related, Permanent

43 79 17 39.5

Information technology related, Permanent

7 0 0 0

Inspectors of apprentices works and vehicles, Permanent

20 0 1 5

Language practitioners interpreters & other commun, Permanent

1 0 0 0

Legal related, Permanent

3 0 0 0


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Turnover rate

Library mail and related clerks, Permanent

22 0 0 0

Light vehicle drivers, Permanent

28 0 3 10.7

Logistical support personnel, Permanent

6 0 0 0

Material-recording and transport clerks, Permanent

8 0 0 0

Mechanical engineering technicians, Permanent

9 0 0 0

Messengers porters and deliverers, Permanent

5 0 0 0

Motor vehicle drivers, Permanent

17 0 4 23.5

Motorised farm and forestry plant operators, Permanent

2 0 0 0

Natural sciences related, Permanent

5 0 0 0

Other administration & related clerks and organisers, Permanent

134 0 5 3.7

Other administrative policy and related offi cers, Permanent

10 0 1 10

Other machine operators, Permanent

1 0 0 0

Other occupations, Permanent

15 0 0 0

Quantity surveyors & rela prof not class elsewhere, Permanent

9 0 0 0

Regulatory inspectors, Permanent

73 0 3 4.1

Risk management and security services, Permanent

3 0 0 0

Road superintendents, Permanent

74 0 3 4.1

Road trade workers., Permanent

9 0 0 0

Road workers, Permanent

1 657 0 54 3.3

Secretaries & other keyboard operating clerks, Permanent

151 1 5 3.3

Security guards, Permanent

5 0 2 40

Senior managers, Permanent

35 2 4 11.4

Trade labourers, Permanent

275 0 25 9.1


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Turnover rate

Trade quality controllers, Permanent

17 0 2 11.8

Trade related, Permanent

3 0 0 0

Water plant and related operators, Permanent

46 0 4 8.7

TOTAL 3 861 106 182 4.7

The table below identifi es the major reasons why staff left the department.

Table 3.4.3 Reasons why staff left the department Termination Type Number % of total

resignationsDeath 57 30.0Resignation 30 15.8Expiry of contract 20 10.5Dismissal – misconduct 1 0.5Discharged due to ill-health 2 1.1Retirement 72 37.9Transfer to other Public Service Departments 8 4.2TOTAL 190 100Total number of employees who left as a % of total employment 190 5.0

Table 3.4.4 Promotions by critical occupation

Occupation Employees1 April 2013

Promotions to another salary level

Salary level promotions as a % of employees by occupation

Progressions to another notch within a salary level

Notch progression as a % of employees by occupation

Administrative related

198 20 10.1 166 83.8

All artisans in the building metal machinery etc.

213 22 10.3 154 72.3

Architects town and traffi c planners

3 0 0 2 66.7

Artisan project and related superintendents

28 0 0 22 78.6

Auxiliary and related workers

31 0 0 19 61.3

Boiler and related operators

36 0 0 26 72.2

Building and other property caretakers

13 0 0 9 69.2

Bus and heavy vehicle drivers

16 0 0 14 87.5

Cartographers and surveyors

1 0 0 1 100

Cartographic surveying and related technicians

9 0 0 8 88.9

Civil engineering technicians

7 0 0 5 71.4


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Cleaners in offi ces workshops hospitals etc.

163 0 0 101 62

Client inform clerks(switchb recept inform clerks)

3 0 0 3 100

Communication and information related

3 0 0 3 100

Electrical and electronics engineering technicians

1 0 0 0 0

Engineering sciences related

56 0 0 51 91.1

Engineers and related professionals

19 0 0 14 73.7

Farm hands and labourers

50 0 0 44 88

Finance and economics related

16 2 12.5 11 68.8

Financial and related professionals

38 4 10.5 30 78.9

Financial clerks and credit controllers

171 0 0 153 89.5

General legal administration & rel. professionals

1 0 0 0 0

Head of department/chief executive offi cer

2 0 0 2 100

Human resources & organisat developm & relate prof

13 1 7.7 9 69.2

Human resources clerks

77 0 0 70 90.9

Human resources related

43 3 7 26 60.5

Information technology related

7 0 0 4 57.1

Inspectors of apprentices works and vehicles

20 0 0 18 90

Language practitioners interpreters & other commun

1 0 0 1 100

Legal related 3 0 0 1 33.3Library mail and related clerks

22 0 0 20 90.9

Light vehicle drivers 28 0 0 10 35.7Logistical support personnel

6 0 0 4 66.7

Material-recording and transport clerks

8 0 0 7 87.5

Mechanical engineering technicians

9 0 0 8 88.9

Messengers porters and deliverers

5 0 0 1 20

Motor vehicle drivers 17 0 0 10 58.8


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Motorised farm and forestry plant operators

2 0 0 1 50

Natural sciences related

5 0 0 4 80

Other admin & related clerks and organisers

134 3 2.2 99 73.9

Other administrative policy and related offi cers

10 0 0 8 80

Other machine operators

1 0 0 1 100

Other occupations 15 0 0 7 46.7Quantity surveyors & rela prof not class elsewhere

9 0 0 7 77.8

Regulatory inspectors

73 7 9.6 63 86.3

Risk management and security services

3 0 0 3 100

Road superintendents

74 5 6.8 55 74.3

Road trade workers 9 1 11.1 5 55.6Road workers 1 657 83 5 1 240 74.8Secretaries & other keyboard operating clerks

151 12 7.9 128 84.8

Security guards 5 0 0 3 60Senior managers 35 3 8.6 25 71.4Trade labourers 275 1 0.4 181 65.8Trade quality controllers

17 0 0 8 47.1

Trade related 3 0 0 2 66.7Water plant and related operators

46 0 0 44 95.7

TOTAL 3861 167 4.3 2 911 75.4

Table 3.4.5 Promotions by salary band

Salary Band Employees1 April 2013


Salary bands promotions as a % of employees by salary level


Notch progression as a % of employees by salary bands

Lower skilled (Levels 1-2), Permanent

1 228 0 0 800 65.1

Skilled (Levels 3-5), Permanent

1 542 97 6.3 1279 83.0

Highly skilled production (Levels 6-8), Permanent

638 29 4.5 497 77.9

Highly skilled supervision (Levels 9-12), Permanent

351 37 10.5 283 80.6

Senior management (Levels 13-16), Permanent

68 3 4.4 48 70.6


15 0 0 1 6.7


13 0 0 2 15.4


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Salary Band Employees1 April 2013


Salary bands promotions as a % of employees by salary level


Notch progression as a % of employees by salary bands


1 0 0 1 100


0 1 0 0 0


5 0 0 0 0

TOTAL 3 861 167 4.3 2 911 75.4

3.5. Employment equity

Table 3.5.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2014.

Occupational category

Male Female TOTALAfrican Coloured Indian White African Coloured Indian White

Legislators, senior offi cials ,managers

24 0 0 2 13 0 1 0 40

Professionals 140 0 0 13 114 1 0 4 272

Technicians, associate professionals

144 1 2 6 131 0 0 5 289

Clerks 230 2 0 3 306 2 0 15 558

Service and sales workers

47 0 0 0 30 0 0 0 77

Craft and related trades workers,

258 0 0 41 49 0 0 0 348

Plant and machine operators and assemblers

106 0 0 5 20 0 0 0 131

Elementary occupations

1209 1 0 22 838 0 0 0 2070

TOTAL 2158 4 2 92 1501 3 1 24 3785Employees with disabilities

38 1 0 3 34 0 2 0 78

Table 3.5.2 total number of employees (including employees with disabilities) in each of the following occupational bands on 31 March 2013Occupational Band


Top Management Permanent

2 0 0 1 1 0 0 1 5

Senior Management Permanent

32 0 0 5 19 0 1 0 57

Professionally qualifi ed and experienced specialists and mid-management Permanent

216 1 2 23 108 1 0 7 358


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Occupational Band


Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen, Permanent

319 1 0 33 251 1 0 15 620

Semi-skilled and discretionary decision making, Permanent

1090 1 0 29 567 1 0 1 1689

Unskilled and defi ned decision making, Permanent

450 1 0 0 490 0 0 0 941

Contract (Top Management)Permanent

1 0 0 0 0 0 0 0 1

Contract (Senior Management)Permanent

2 0 0 1 0 0 0 0 3

Contract (Professionally qualifi ed), Permanent

2 0 0 0 0 0 0 0 2

Contract (Skilled technical), Permanent

9 0 0 0 6 0 0 0 15

Contract (Semi-skilled), Permanent

2 0 0 0 14 0 0 0 16

Contract (Unskilled), Permanent

33 0 0 0 45 0 0 0 78

TOTAL 2158 4 2 92 1501 3 1 24 3785

Table 3.5.3 Recruitment Occupational Band


Senior Management, Permanent

1 0 0 0 1 0 0 0 2

Professionally qualifi ed and experienced specialists and mid-management, Permanent

0 0 1 0 0 0 0 0 1


2 0 0 0 1 0 0 0 3


1 0 0 0 1 0 0 0 2


1 0 0 0 0 0 0 0 1


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Occupational Band



9 0 0 0 6 0 0 0 15


0 0 0 0 3 0 0 0 3


34 0 0 0 45 0 0 0 79


0 0 0 0 0 0 0 0 0

Table 3.5.4 PromotionsOccupational Band


Top Management Permanent

2 0 0 1 0 0 0 1 4


24 0 0 4 18 0 1 0 47


196 0 1 20 98 1 0 4 320


263 0 0 15 232 1 0 15 526


934 1 0 28 411 1 0 1 1376


398 1 0 0 401 0 0 0 800


1 0 0 0 0 0 0 0 1


1 0 0 0 0 0 0 0 1


2 0 0 0 0 0 0 0 2


0 0 0 0 1 0 0 0 1


0 0 0 0 0 0 0 0 0


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Table 3.5.5 TerminationsOccupational Band



1 0 0 0 0 0 0 0 1


6 0 0 2 3 0 0 0 11


7 0 0 6 7 0 0 3 23


58 0 0 3 31 0 0 0 92


19 0 0 0 15 0 0 0 34

Contract (Senior Management)Permanent

2 0 0 1 0 0 0 0 3


1 0 0 0 0 0 0 0 1


8 0 0 0 9 0 0 0 17

TOTAL 102 0 0 12 65 0 0 3 182Employees with Disabilities

2 0 0 0 1 0 0 0 3

Table 3.5.6 Disciplinary actionDisciplinary action

Male Female TOTALAfrican Coloured Indian White African Coloured Indian White20 0 0 0 02 0 0 0 22

Table 3.5.7 Skills development Occupational category


Legislators, senior offi cials and managers

57 02 01 01 52 01 0 03 117

Professionals 217 0 0 02 206 0 0 04 429Technicians and associate professionals

0 0 0 0 0 0 0 0 0

Clerks 16 01 0 0 50 01 0 0 68Service and sales workers

0 0 0 0 O 0 0 0 0

Skilled agriculture and fi shery workers

0 0 0 0 0 0 0 0 0

Craft and related trades workers

0 0 0 0 0 0 0 0 0


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Occupational category



11 0 0 0 03 0 0 0 14


210 0 0 01 231 01 0 0 443


04 0 0 0 05 0 0 0 09

3.6. Performance rewards

To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, and disability), salary bands and critical occupations.

Table 3.6.1 Performance rewards by race, gender and disabilityRace and Gender

Benefi ciary Profi le Cost

Demographics Number of benefi ciaries

Number of employees

% of Total within group

Cost (R’000) Average cost per employee

African, Female 1249 1 462 85.4 4490 3.6African, Male 1861 2 119 87.8 7015 3.8Asian, Female 1 1 100 23 23.0Asian, Male 1 2 50 7 7.0Coloured, Female

3 3 100 27 9.0

Coloured, Male 2 3 66,7 8 4.0White, Female 22 23 95,7 163 7.4White, Male 82 87 94.3 577 7.0Employees with a disability

82 85 96.5 312 3.8

TOTAL 3 303 3785 190.8 12 622 3.8Total Blacks, Female

1 253 1466 85,5 4 540 3.6

Total Blacks, Male

1 864 2124 87,8 7 030 3.8

White, Female 22 23 95,7 163 7.4White, Male 82 87 94.3 577 7.0Employees with a disability

82 85 96.5 312 3.8

TOTAL 3 303 3 785 190.8 12 622 3.8

Table 3.6.2 Performance rewards by salary band for personnel below Senior Management ServiceSalary Band Benefi ciary Profi le Cost Total cost as a

% of the total personnel expenditure

Number of benefi ciaries

Number of employees

% of Total within salary bands

Total cost (R’000)

Average cost per employee


840 941 89.3 1 802 2.1 0.2


1607 1689 95,1 4 312 2.7 0.5


551 620 88,9 2 882 5.2 0.4


27 358 75,4 2 837 105.1 0.4

TOTAL 3 025 3 608 89.3 11 833 3.9 1.5


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Table 3.6.3 Performance rewards by critical occupationCritical occupation Benefi ciary profi le Cost


Number of employees

% of total within occupation

Total cost (R’000) Average cost per employee

Admin related 159 215 74 1,400 8.8All artisans in the building metal machinery etc.

196 210 93.3 874 4.5

Architects town and traffi c planners 2 2 100 49 24.5

Artisan project and related superintendents

18 24 75 136 7.6

Auxiliary and related workers 30 30 100 78 2.6

Boiler and related operators 29 33 87.9 83 2.9

Building and other property caretakers

12 13 92.3 27 2.3

Bus and heavy vehicle drivers 14 14 100 36 2.6

Cartographers and surveyors 0 1 0 0 0

Cartographic surveying and related technicians

7 9 77.8 52 7.4

Civil engineering technicians 5 6 83.3 34 6.8

Cleaners in offi ces workshops hospitals etc.

143 158 90.5 329 2.3

Client inform clerks(switchboard, recept inform clerks)

3 3 100 13 4.3

Communication and information related

2 2 100 11 5.5

Electrical and electronics engineering technicians

0 1 0 0 0

Engineering sciences related 39 54 72.2 434 11.1

Engineers and related professionals

9 17 52.9 206 22.9

Farm hands and labourers 45 49 91.8 99 2.2

Finance and economics related 13 15 86.7 114 8.8

Financial and related professionals

29 37 78.4 278 9.6

Financial clerks and credit controllers

151 167 90.4 770 5.1

General legal Administration and rel. Professionals

1 1 100 19 19.0

Head of department/chief executive offi cer

1 2 50 15 15.0

Human resources and organisat development and relate prof

7 11 63.6 65 9.3


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Critical occupation Benefi ciary profi le CostNumber of benefi ciaries

Number of employees



Human resources clerks 63 72 87.5 261 4.1

Human resources related 27 112 24.1 194 7.2

Information technology related 5 7 71.4 34 6.8

Inspectors of apprentices works and vehicles

20 22 90.9 177 8.9

Language practitioners interpreters and other commun

1 1 100 5 5.0

Legal related 2 3 66.7 41 20.5Library mail and related clerks 18 21 85.7 70 3.9

Light vehicle drivers 21 24 87.5 58 2.8Logistical support personnel 4 6 66.7 23 5.8

Material-recording and transport clerks

8 8 100 35 4.4

Mechanical engineering technicians

5 9 55.6 55 11.0

Messengers porters and deliverers 6 5 120 16 2.7

Motor vehicle drivers 16 14 114.3 43 2.7

Motorised farm and forestry plant operators

2 2 100 5 2.5

Natural sciences related 5 5 100 17 3.4

Other admin and related clerks and organisers

111 134 82.8 480 4.3

Other admin policy and related offi cers

7 8 87.5 63 9.0

Other machine operators 1 1 100 2 2.0

Other occupations 13 14 92.9 134 10.3Quantity surveyors and rela prof not class elsewhere

3 9 33.3 53 17.7

Regulatory inspectors 1 1 100 2 2.0

Risk management and security services

13 14 92,9 134 10.3

Road superintendents 68 69 98.6 316 4.7

Road trade workers 8 9 88.9 38 4.8

Road workers 1 446 1 555 93 3 384 2.3Secretaries and other keyboard operating clerks

130 153 85 417 3.2

Security guards 3 3 100 7 2.3Senior managers 16 37 43.2 394 24.6Social work and related professionals

0 0 0 0 0


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Critical occupation Benefi ciary profi le CostNumber of benefi ciaries

Number of employees



Trade labourers 261 277 94,2 627 24.6Trade quality controllers 11 11 100 71 6.5

Trade related 2 3 66,7 10 5.0Water plant and related operators 41 43 95.3 118 2.9

TOTAL 3 303 3 785 87.3 12 622 3828

Table 3.6.4 Performance related rewards (cash bonus), by salary band for Senior Management ServiceSalary Band Benefi ciary Profi le Cost Total cost as a

% of the total personnel expenditure


Number of employees

% of Total within salary bands

Total cost (R’000)

Average cost per employee

Band A 22 49 44.9 521 23.7 0Band B 6 11 54.5 171 28.5 0Band C 3 4 75 102 34.0 0Band D 0 2 0 0 0 0TOTAL 31 66 47 794 25.6 0

3.7. Foreign workers

The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation.

Table 3.7.1 Foreign workers by salary band Salary band 01 April 2013 31 March 2014 Change

Number % of total Number % of total Number % ChangeLower skilled 1 4.8 1 16.67 0 0Skilled (levels 3-5)

2 9.5 2 33.33 0 0


0 0 1 16.67 1 100

Abnormal appointment

18 85.7 2 33.33 - 16 -88.88

TOTAL 21 100 6 100 -15 11.12

Table 3.7.2 Foreign workers by major occupation Major Occupation

01 April 2013 31 March 2014 ChangeNumber % of total Number % of total Number % Change


0 0 1 16.67 1 100

Drivers operators and ship’s crew

2 9.5 2 33.33 0 0


19 90.5 3 50 -16 -88.88

TOTAL 21 100 6 100 -15 11.12


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3.8. Leave utilisation

The Public Service Commission identifi ed the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.

Table 3.8.1 Sick leaveSalary band Total days % Days with

Medical certifi cation

Number of Employees using sick leave

% of Total employees using sick leave

Average days per employee

Estimated Cost (R’000)

Lower skilled (Levels 1-2) 5680.5 87.4 669 30.5 8 1 629Skilled (Levels 3-5) 7163.5 89.2 952 43.4 8 2 613Highly skilled production (Levels 6-8)

3151.5 87 371 16.9 8 2 193


1028 89.5 162 7.4 6 1 570


193 93.8 31 1.4 6 623

Contract (Levels 1-2) 9 88.9 4 0.2 2 1Contract (Levels 3-5) 19 100 1 0 19 6Contract (Levels 6-8) 6 100 2 0.1 3 5Contract (Levels 13-16) 16 100 2 0.1 8 60TOTAL 17266.5 88.3 2194 100 8 8700

Table 3.8.2 Disability leave (temporary and permanent) Salary band Total days % Days with

Medical certifi cation

Number of Employees using disability leave

% of Total employees using disability leave

Average days per employee

Estimated cost (R’000)


53 100 3 27.3 18 15

Skilled (Levels 3-)

205 100 7 63.6 29 92


44 100 1 9.1 44 30

TOTAL 302 100 11 100 27 137

The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.

Table 3.8.3 Annual Leave Salary band Total days taken Number of

employees using annual leave

Average per employee

Lower skilled (Levels 1-2) 22197.48 967 23Skilled (Levels 3-5) 45798.15 1750 26Highly skilled production (Levels 6-8) 14869.61 635 23Highly skilled supervision (Levels 9-12) 8499.15 364 23Senior management (Levels 13-16) 1438 63 23Contract (Levels 1-2) 118 18 7Contract (Levels 3-5) 43 3 14Contract (Levels 6-8) 54 8 7Contract (Levels 9-12) 5 1 5Contract (Levels 13-16) 78 5 16TOTAL 93100.39 3814 24


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Table 3.8.4 Capped leave Salary Band Total days of

capped leave taken

Number of employees using capped leave

Average number of days taken per employee

Average capped leave per employee as at 31 March

Lower skilled (Levels 1-2) 23 8 3 54Skilled (Levels 3-5) 250 32 8 75Highly skilled production (Levels 6-8) 53 7 8 80Highly skilled supervision (Levels 9-12) 59 6 10 72Senior management (Levels 13-16) 8 1 8 83TOTAL 393 54 7 74

The following table summarise payments made to employees as a result of leave that was not taken.

Table 3.8.5 Leave payoutsReason Total amount

(R’000)Number of employees

Average per employee (R’000)

Capped leave payouts on termination of service for 2013/14 197 34 5794

Current leave payout on termination of service for 2013/14 0 12 0

TOTAL 197 46 4283

3.9. HIV/AIDS and Health Promotion ProgrammesTable 3.9.1 Steps taken to reduce the risk of occupational exposureUnits/categories of employees identifi ed to be at high risk of contracting HIV and related diseases (if any)

Key steps taken to reduce the risk

Youth, transport offi cers, fi eld workers and management

HIV&AIDS mainstreaming into the core mandate of the Department, Condom distribution, HCT, awareness workshops, commemoration of calendar events and campaigns

Table 3.9.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)Question Yes No Details, if yes1. Has the department designated a member of the SMS to implement the provisions con-tained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.

√ Mr S.T Lukhele Senior Manager: Employee Health and Wellness

2. Does the department have a dedicated unit or has it designated specifi c staff mem-bers to promote the health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

√ There are 5(fi ve) professional social workers and 3 Support staff with a budget of R 1 mil-lion.

3. Has the department introduced an Em-ployee Assistance or Health Promotion Pro-gramme for your employees? If so, indicate the key elements/services of this Programme.

√ The focus is the four pillars namely wellness management, HIV and AIDS, TB and chronic diseases management, Health and Produc-tivity

4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regula-tions, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

√ In all the Districts there are representatives of the different cost centres.• Ms Monica Mahlangu: Nkangala• Ms Smangele Nkosi: Ehlanzeni• Mr Oupa Nhleko: Gert Sibande• Mr Sam Silinda: Bohlabela

5. Has the department reviewed its employ-ment policies and practices to ensure that these do not unfairly discriminate against em-ployees on the basis of their HIV status? If so, list the employment policies/practices so re-viewed.

√ • The HIV and AIDS and TB Management policy

• The Wellness management policy• The Sports policy


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Question Yes No Details, if yes6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimina-tion? If so, list the key elements of these meas-ures.

√ Through the HIV and AIDS and TB manage-ment policy

7. Does the department encourage its em-ployees to undergo Voluntary Counselling and Testing? If so, list the results that you have you achieved.

√ During the wellness days and all the work-shops conducted by the section. The results have been negative in the sense that very few and the same people go for testing.

8. Has the department developed measures/indicators to monitor and evaluate the im-pact of its health promotion programme? If so, list these measures/indicators.

√ Evaluation of Programmes implemented is done on annual basis

3.10. Labour relations

The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review.

Table 3.10.1 Misconduct and disciplinary hearings fi nalisedOutcomes of disciplinary hearings Number % of TotalCorrectional counselling 1 4.55%Verbal warning 1 4.55%Written warning 6 27,28%Final written warning 6 27,28%Suspended without pay 5 23,72%Dismissal 1 4.55%Case withdrawn 2 9%TOTAL 22 100%

Table 3.10.2 Types of misconduct addressed at disciplinary hearings Type of misconduct Number % of Total

10 100%TOTAL 10 100%

Table 3.10.3 Grievances logged Grievances Number % of TotalNumber of grievances resolved 36 69,23%Number of grievances not resolved 16 30,76%TOTAL number of grievances lodged 52 100%

Table 3.10.4 Disputes loggedNumber % of Total

Number of disputes upheld 0 0%Number of disputes dismissed 10 62,5%Disputes awaiting date for an arbitration hearing 6 37,5%TOTAL number of disputes lodged 16 100%

Table 3.10.6 Strike actions Total number of persons working days lost 0Total costs working days lost 0Amount (R’000) recovered as a result of no work no pay 0

Table 3.10.7 Precautionary suspensionsNumber of people suspended 3Number of people who’s suspension exceeded 30 days 3Average number of days suspended 544Cost (R’000) of suspension 439270,95


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3.11. Skills development

This section highlights the efforts of the department with regard to skills development.

Table 3.11.1 Training needs identifi edOccupational category

Gender Number of employees as at 1 April 2013

Training needs identifi ed at start of the reporting periodLearnerships Skills

programmes and other short courses

Other forms of training

TOTAL


Female 401 0 40 0 40Male 370 0 63 0 63

Professionals Female 179 0 190 0 190Male 191 0 211 0 211

Technicians and associate professionals

Female 01 0 0 0 0Male 04 0 0 0 0

Clerks Female 718 0 68 0 68Male 576 0 15 0 15


Female 28 0 01 0 01Male 189 0 08 0 08


Female 532 68 198 0 266Male 535 82 110 0 192

Sub Total Female 1859 68 497 0 497Male 1865 82 407 0 407

TOTAL 3724 150 904 0 1054

Table 3.11.2 Training provided for the periodOccupational category

Gender Number of employees as at 1 April 2013

Training provided within the reporting periodLearnerships Skills

programmes and other short courses

Other forms of training

TOTAL


Female 401 0 56 0 56Male 370 0 61 0 61

Professionals Female 179 0 210 122 332Male 191 0 219 126 345

Technicians and associate professionals

Female 01 0 0 0 0Male 04 0 0 0 0

Clerks Female 718 0 51 66 117Male 576 0 17 46 63


Female 28 0 03 0 03Male 189 0 11 0 11


Female 532 68 164 196 428Male 535 82 129 263 474

Sub total Female 1859 68 484 384 868Male 1865 82 437 435 872

TOTAL 3724 150 921 819 1740


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3.12. Injury on duty

The following tables provide basic information on injury on duty.

Table 3.12.1 Injury on dutyNature of injury on duty Number % of TotalRequired basic medical attention only 37 100%Temporary total disablement 0 0%Permanent disablement 0 0%Fatal 0 0%TOTAL 37 100%


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2013/14 2013/14

PART E:FINANCIAL INFORMATION


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1. REPORT OF THE AUDITOR GENERAL

REPORT OF THE AUDITOR-GENERAL TO THE MPUMALANGA PROVINCIAL LEGISLATURE ON VOTE NO. 8: DEPARTMENT OF PUBLIC WORKS, ROADS AND TRANSPORT

Report on the fi nancial statements

Introduction

1. I have audited the fi nancial statements of the Department of Public Works, Roads and Transport set out on pages 97 to 153 which comprise the appropriation statement, the statement of fi nancial position as at 31 March 2014, the statement of fi nancial performance, statement of changes in net assets and cash fl ow for the year then ended, as well as the notes, comprising a summary of signifi cant accounting policies and other explanatory information.

Accounting offi cer’s responsibility for the fi nancial statements

2. The accounting offi cer is responsible for the preparation and fair presentation of these fi nancial statements in accordance with the Modifi ed Cash Standard as prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA)and the Division of Revenue Act of South Africa, 2013(Act No.2 of 2013)(DoRA),and for such internal control as the accounting offi cer determines is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on these fi nancial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether thefi nancial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.

5. I believe that the audit evidence I have obtained is suffi cient and appropriate to provide a basis for my audit opinion.

Opinion

6. In my opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of the Department of Public Works, Roads and Transport as at 31 March 2014 and its fi nancial performance and cash fl ows for the year then ended, in accordance with the Modifi ed Cash Standard as prescribed by the National Treasury and the requirements of the PFMA and DoRA.

Emphasis of matter

7. I draw attention to the matter below. My opinion is not modifi ed in respect of this matter:

Restatement of corresponding fi gures

8. As disclosed in note 28 to the fi nancial statements, the corresponding fi gures for 31 March 2013 have been restated as a result of an error discovered during the year ended 31 March 2014 in the fi nancial statements of the department at, and for the year ended, 31 March 2013.


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Report on other legal and regulatory requirements

9. In accordance with the PAA and the general notice issued in terms thereof, I report the following fi ndings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report, non-compliance with legislation as well as internal control. The objective of my tests was to identify reportable fi ndings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.

Predetermined objectives

10. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2014:• Programme 2: public works, on pages 22 to 25• Programme 3: transport infrastructure, on pages 25 to 27• Programme 4: transport operations, on pages 28 to 30• Programme 5: community based programmes, on pages 30 to 32

11. I evaluated the reported performance information against the overall criteria of usefulness and reliability.

12. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned programmes. I further performed tests to determine whether indicators and targets were well defi ned, verifi able, specifi c, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).

13. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

14. The material fi ndings in respect of the selected programmes are as follows:

Programme 2: public worksReliability of reported performance information

15. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. The reported performance information was not valid, accurate and complete when compared to the source information or evidence provided. This was due to a lack of monitoring of the completeness of source documentation in support of actual achievements as well as a lack of frequent review of the validity of reported achievements against source documentation.

Programme 3: transport infrastructureReliability of reported performance information

16. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. I was unable to obtain the information and explanations I considered necessary to satisfy myself as to the reliability of the reported performance information. This was because the department could not provide suffi cient appropriate evidence in support of the reported performance information.

Programme 4: transport operations Reliability of reported performance information

17. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. A signifi cantly important target was not reliable when compared to the source information or evidence provided. This was due to a lack of monitoring of the completeness of source documentation in support of actual achievements as well as a lack of frequent review of the validity of reported achievements against source documentation.


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Programme 5: community based programmesReliability of reported performance information

18. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. The reported performance information was not valid, accurate and complete when compared to the source information or evidence provided. This was due to a lack of monitoring of the completeness of source documentation in support of actual achievements as well as a lack of frequent review of the validity of reported achievements against source documentation.

Additional matter

19. I draw attention to the following matter:

Achievement of planned targets

20. Refer to the annual performance report on pages 20 to 32 for information on the achievement of the planned targets for the year. This information should be considered in the context of the material fi ndings on the usefulness and reliability of the reported performance information for the selected programmes reported in paragraphs 15, 16, 17 and 18 of this report.

Compliance with legislation

21. I performed procedures to obtain evidence that the department had complied with applicable legislation regarding fi nancial matters, fi nancial management and other related matters. My fi ndings on material non-compliance with specifi c matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows:

Annual fi nancial statements, performance report and annual report

22. The fi nancial statements submitted for auditing were not prepared in accordance with the prescribed fi nancial reporting framework, as required by section 40(1)(b) of the PFMA. Material misstatements of non-current assets and disclosure items identifi ed by the auditors in the submitted fi nancial statements were subsequently corrected, resulting in the fi nancial statements receiving an unqualifi ed audit opinion.

Procurement and contract management

23. Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as required by treasury regulation 16A6.1.

24. Contracts and quotations were awarded to suppliers whose tax matters had not been declared by the South African Revenue Service to be in order, as required by treasury regulation 16A9.1(d) and the Preferential procurement regulations.

25. Construction contracts were awarded to contractors that were not registered with the Construction Industry Development Board (CIDB), in accordance with section 20(1) of the CIDB Act of South Africa, 2000 (Act No. 38 of 2000).

26. Persons in the service of the department who had a private or business interest in contracts awarded by the department failed to disclose such interest, as required by treasury regulation 16A8.4 and public service regulation 3C.

27. Persons in the service of the department whose close family members, partners or associates had a private or business interest in contracts awarded by the department failed to disclose such interest, as required by treasury regulation 16A8.4.

28. Contracts and quotations were awarded to bidders that did not score the highest points in the evaluation process, as required by section 2(1)(f) of the Preferential Procurement Policy Framework Act of South Africa, 2000 (Act No. 5 of 2000).

29. The procurement system and processes did not comply with the requirements of a fair supply chain management (SCM) system as per section 51(1)(a)(iii) of the PFMA, due to the following:


2013/14 2013/14

93

• Invitations for competitive bidding were not advertised for the minimum period as prescribed in the SCM policy.

• Bids were not invited through a public advert in media prescribed by the SCM policy.• Suffi cient appropriate audit evidence could not be obtained that bids were not awarded

to bidders whose bids had been received after the closing date.

30. Suffi cient appropriate audit evidence could not be obtained that invitations for competitive bidding were advertised for the required minimum period of 21 days, as required by treasury regulation 16A6.3(c).

31. Contracts were awarded to bidders who did not submit a declaration on past supply chain practices, such as fraud, abuse of the SCM system and non-performance, contrary to treasury regulation 16A9.2.

32. Suffi cient appropriate audit evidence could not be obtained that contracts were awarded to bidders based on points given for criteria that had been stipulated in the original invitation for bidding, as required by the SCM regulations,treasury regulation 16A6.3(a) and the Preferential procurement regulations.

33. Contracts were awarded to bidders who did not submit a declaration on whether they are employed by the state or connected to any person employed by the state, contrary totreasury regulation 16A8.3.

Expenditure management

34. Contractual obligations and money owed by the department were not settled within 30 days or an agreed period, as required by section 38(1)(f) of the PFMA and treasury regulation 8.2.3.

35. Effective steps were not taken to prevent irregular as well fruitless and wasteful expenditure, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation 9.1.1.

36. Suffi cient appropriate audit evidence could not be obtained that all money was committed with the approval of the accounting offi cer, as required by treasury regulation 8.2.1 and 8.2.2.

Service delivery – public works

37. The inspection plan for leased properties did not include all the properties leased by the department.

38. The appointed project managers were not registered with the South African Council for the Project and Construction Management Professions, as required by sections 18(2) and 19 of the Project and Construction Management Professions Act of South Africa, 2000 (Act No. 48 of 2000).

Internal control

39. I considered internal control relevant to my audit of the fi nancial statements, annual performance reportand compliance with legislation. The matters reported below are limited to the signifi cant internal control defi ciencies that resulted in the fi ndings on the annual performance report and the fi ndings on non-compliance with legislation included in this report.

Leadership

40. Management established a formal code of conduct that addressed appropriate ethical and moral behaviour, but staff members were not trained to properly understand and implement the code.

41. The department did not have suffi cient monitoring controls to ensure the proper implementation of the overall process of reporting.

42. Key positions in fi nancial and performance management areas were vacant for more than 12 months.

43. Management did not review the fi nancial statements prior to their submission for auditing.


2013/14 2013/14

94

Financial and performance management

44. The department did not have a proper record management system to maintain information that supported the reported performance in the annual performance report. This included information that related to the collection, collation, verifi cation, storing and reporting of actual performance information.

45. The department did not implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support fi nancial reporting.

46. Non-compliance with laws and regula tions could have been prevented had compliance been properly reviewed and monitored.

Governance

47. The internal audit function did not conduct internal audits or reviews of information systems.

Other reports

Performance audits

48. The report of the Auditor-General of South Africa on the readiness of government to report on its performance will be tabled during 2014. The department was one of the 61 institutions audited during this audit. The performance audit focused on the following:• The systems and processes that government departments have put in place to report on

their performance.• The performance reporting guidance and oversight that government departments have

received.

Investigations

49. The Public Protector performed an investigation, which covered the period 11 October 2011 to 6 July 2012. The investigation was initiated based on an allegation of maladministration by the department in awarding tenders for shop leases in Pilgrims Rest. The investigation concluded on 19 December 2013 and fi ndings were communicated to the accounting offi cer. Remedial action was also communicated to the accounting offi cer, as detailed in the report, which included the cancellation of the award, with the department embarking on a new procurement process for the conclusion of lease contracts. Indicationsare that the department is addressing the remedial action.

50. The premier’sintegrity unit is performing investigations covering the period March 2013 to December 2013. The investigationswere initiated based on allegations of possible fraud and procurement irregularities in the department. The outcome of the investigations is expected during the 2014-15 fi nancial year.

Mbombela31 July 2014


2013/14 2013/14

95

MPUMALANGA PROVINCIAL GOVERNMENTDepartment of Public Works, Roads and Transport

Annual Financial Statements

For the year ended 31 March 2014


2013/14 2013/14

96

TABLE OF CONTENTS

Appropriation Statement 97

Notes to the Appropriation Statement 112

Statement of Financial Performance 114

Statement of Financial Position 115

Statement of Changes in Net Assets 116

Cash Flow Statement 117

Notes to the Annual Financial Statements (including Accounting policies) 118

Annexures (Unaudited Supplementary Schedules) 154

Mpumalanga ProvinceDepartment of Public Works, Roads and Transport

Vote 8:

Annual Financial Statementsfor the year ended 31 March 2014


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2013/14 2013/14

112

1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A,B and D) to the Annual Financial Statements.

2. Detail of specifi cally and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on payments for fi nancial assets

Detail of these transactions per programme can be viewed in the note on Payments for fi nancial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme Final Appropriation Actual Expenditure

Variance R’000

Variance as a % of Final

Appropriation

Administration 220,541 220,541 - 0%Public Works 592,521 592,510 11 0%Transport Infrastructure 2,049,131 2,048,655 476 0%Transport Operations 1,017,847 1,017,847 - 0%Community Based Programmes

68,170 67,600 570 1%

Explanations

Surpluses are due to unspent funds on Goods and Services for the 2013-2014 fi nancial year in Programme 3: Transport Infrastructure and Programme 5: Community Based Programmes

4.2 Per economic classifi cation

Final Appropriation Actual Expenditure

Variance Variance as a % of Final

AppropriationR’000 R’000 R’000 R’000

Current paymentsCompensation of employees

804,835 804,835 - 0%

Goods and services 1,282,540 1,245,383 37,157 3%Unauthorised expenditure approved

2,214 2,214 - 0%

Transfers and subsidiesProvinces and municipalities 140,106 140,106 - 0%Public Corporations and Private enterprises

469,961 469,961 - 0%

Households 11,622 11,622 - 0%

Payments for capital assetsBuildings and other fi xed structures

1,183,949 1,183,949 - 0%

Machinery and equipment 51,193 87,293 (36,100) (71%)

Payments for fi nancial assets 1,790 1,790 - 0%


Vote 8:

Notes to the Appropriation Statementfor the year ended 31 March 2014


2013/14 2013/14

113

4.3 Per conditional grant

Final Appropriation

Actual Expenditure

Variance Variance as a % of Final

AppropriationR’000 R’000 R’000 R’000

Public WorksEpwp Incent Grnt Prov 20,691 20,691 - 0%

TransportProv Roads Maint Grant 1,489,393 1,489,364 29 0%Public Transprt Operations Grant 462,926 462,919 7 0%


Vote 8:

Notes to the Appropriation Statementfor the year ended 31 March 2014


2013/14 2013/14

114

PERFORMANCE Note 2013/14 2012/13R’000 R’000

REVENUEAnnual appropriation 1 3,946,475 3,525,829Statutory appropriation 2 1,735 1,652Departmental revenue 3 23,970 25,848

TOTAL REVENUE 3,972,180 3,553,329

EXPENDITURECurrent expenditureCompensation of employees 4 804,835 770,852Goods and services 5 1,245,383 1,263,518Unauthorised expenditure approved without funding 9 2,214 -Total current expenditure 2,052,432 2,034,370

Transfers and subsidiesTransfers and subsidies 7 621,689 549,328Total transfers and subsidies 621,689 549,328

Expenditure for capital assetsTangible capital assets 8 1,271,242 936,882Total expenditure for capital assets 1,271,242 936,882

Payments for fi nancial assets 6 1,790 2,502

TOTAL EXPENDITURE 3,947,153 3,523,082

SURPLUS/(DEFICIT) FOR THE YEAR 25,027 30,247

Reconciliation of Net Surplus/(Defi cit) for the yearVoted funds 1,057 4,399

Annual appropriation 1,021 4,399Conditional grants 36 -

Departmental revenue and NRF Receipts 3 23,970 25,848

SURPLUS/(DEFICIT) FOR THE YEAR 25,027 30,247


Vote 8:

Statement of Financial Performancefor the year ended 31 March 2014


2013/14 2013/14

115

POSITION Note 2013/14 2012/13R’000 R’000

ASSETS

Current assets 26,736 30,001Unauthorised expenditure 9 - 2,214Receivables 10 26,736 27,787

TOTAL ASSETS 26,736 30,001

LIABILITIES

Current liabilities 20,716 23,090Voted funds to be surrendered to the Revenue Fund 11 1,057 4,399Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

12 1,665 3,305

Bank overdraft 13 17,462 14,988Payables 14 532 398

TOTAL LIABILITIES 20,716 23,090

NET ASSETS 6,020 6,911

Represented by:Recoverable revenue 6,020 6,911

TOTAL 6,020 6,911


Vote 8:

Statement of Financial Positionas at 31 March 2014


2013/14 2013/14

116

NET ASSETS Note 2013/14 2012/13R’000 R’000

Recoverable revenueOpening balance 6,911 9,436Transfers: (891) (2,525)

Irrecoverable amounts written off 8.3 (2,145)Debts revised (175) (52)Debts recovered (included in departmental receipts) (1,420) (586)Debts raised 704 258

Closing balance 6,020 6,911

TOTAL 6,020 6,911


Vote 8:

Statement of Changes in Net Assetsfor the year ended 31 March 2014


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117

CASH FLOW Note 2013/14 2012/13R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts 3,968,897 3,552,395

Annual appropriated funds received 1.1 3,946,475 3,525,829Statutory appropriated funds received 2 1,735 1,652Departmental revenue received 3 19,050 22,966Interest Received 3.3 1,637 1,948

Net (increase)/decrease in working capital 3,399 (49,092)Surrendered to Revenue Fund (30,009) 6,402Current payments (2,052,432) (2,034,370)Payments for fi nancial assets (1,790) (2,502)Transfers and subsidies paid (621,689) (549,328)Net cash fl ow available from operating activities 15 1,266,376 923,505

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 8 (1,271,242) (936,882)Proceeds from sale of capital assets 3.4 3,283 934Net cash fl ows from investing activities (1,267,959) (935,948)

CASH FLOWS FROM FINANCING ACTIVITIESIncrease/(decrease) in net assets (891) (2,525)Net cash fl ows from fi nancing activities (891) (2,525)

Net increase/(decrease) in cash and cash equivalents (2,474) (14,968)a

Cash and cash equivalents at beginning of period (14,988) (20)

Cash and cash equivalents at end of period 16 (17,462) (14,988)


Vote 8:

Cash Flow Statementfor the year ended 31 March 2014


2013/14 2013/14

118

Summary of signifi cant accounting policies

The fi nancial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual fi nancial statements. These are based on the best information available at the time of preparation.

Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the fi nancial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1. Basis of preparation

The fi nancial statements have been prepared in accordance with the Modifi ed Cash Standard.

2. Going concern

The fi nancial statements have been prepared on a going concern basis.

3. Presentation currency

Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

4. Rounding

Unless otherwise stated fi nancial fi gures have been rounded to the nearest one thousand Rand (R’000).

5. Current year comparison with budget

A comparison between the approved, fi nal budget and actual amounts for each programme and economic classifi cation is included in the appropriation statement.

6. Revenue

6.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of fi nancial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of fi nancial performance on the date the adjustments become effective.

The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of fi nancial position.

6.2 Departmental revenue

Departmental revenue is recognised in the statement of fi nancial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise.

Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of fi nancial position.


Vote 8:

Notes to the Annual Financial Statementsfor the year ended 31 March 2014


2013/14 2013/14

119

7. Expenditure

7.1 Compensation of employees

7.1.1 Salaries and wages

Salaries and wages are recognised in the statement of fi nancial performance on the date of payment.

7.1.2 Social contributions

Social contributions made by the department in respect of current employees are recognised in the statement of fi nancial performance on the date of payment.

Social contributions made by the department in respect of ex-employees are classifi ed as transfers to households in the statement of fi nancial performance on the date of payment.

7.2 Other expenditure

Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of fi nancial performance on the date of payment. The expense is classifi ed as a capital expense if the total consideration paid is more than the capitalisation threshold.

7.3 Accrued expenditure payable

Accrued expenditure payable is recorded in the notes to the fi nancial statements when the goods are received or, in the case of services, when they are rendered to the department.

Accrued expenditure payable is measured at cost.

7.4 Leases

7.4.1 Operating leases

Operating lease payments made during the reporting period are recognised as current expenditure in the statement of fi nancial performance on the date of payment.

The operating lease commitments are recorded in the notes to the fi nancial statements.

7.4.2 Finance leases

Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of fi nancial performance on the date of payment.

The fi nance lease commitments are recorded in the notes to the fi nancial statements and are not apportioned between the capital and interest portions.

Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:

• cost, being the fair value of the asset; or • the sum of the minimum lease payments made, including any payments made to acquire

ownership at the end of the lease term, excluding interest.

8. Cash and cash equivalents

Cash and cash equivalents are stated at cost in the statement of fi nancial position. Bank overdrafts are shown separately on the face of the statement of fi nancial position. For the purposes of the cash fl ow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

9. Prepayments and advances

Prepayments and advances are recognised in the statement of fi nancial position when the department receives or disburses the cash.


Vote 8:



2013/14 2013/14

120

Prepayments and advances are initially and subsequently measured at cost.

10. Loans and receivables

Loans and receivables are recognised in the statement of fi nancial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.

11. Payables

Loans and receivables are recognised in the statement of fi nancial position at cost.

12. Capital Assets

12.1 Immovable capital assets

Immovable capital assets are initially recorded in the notes to the fi nancial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1.

Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.

12.2 Movable capital assets

Movable capital assets are initially recorded in the notes to the fi nancial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1.

Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department

13. Provisions and Contingents

13.1 Provisions

Provisions are recorded in the notes to the fi nancial statements when there is a present legal or constructive obligation to forfeit economic benefi ts as a result of events in the past and it is probable that an outfl ow of resources embodying economic benefi ts or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.


Vote 8:



2013/14 2013/14

121

13.2 Contingent liabilities

Contingent liabilities are recorded in the notes to the fi nancial statements when there is a possible obligation that arises from past events, and whose existence will be confi rmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outfl ow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably

13.3 Commitments

Commitments are recorded at cost in the notes to the fi nancial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outfl ow of cash.

14. Unauthorised expenditure

Unauthorised expenditure is recognised in the statement of fi nancial position until such time as the expenditure is either:• approved by Parliament or the Provincial Legislature with funding and the related funds are

received; or• approved by Parliament or the Provincial Legislature without funding and is written off against

the appropriation in the statement of fi nancial performance; or• transferred to receivables for recovery.

Unauthorised expenditure is measured at the amount of the confi rmed unauthorised expenditure.

15. Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recorded in the notes to the fi nancial statements when confi rmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. Fruitless and wasteful expenditure is removed from the notes to the fi nancial statements when it is resolved or transferred to receivables for recovery.

Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

16. Irregular expenditure

Irregular expenditure is recorded in the notes to the fi nancial statements when confi rmed. The amount recorded is equal to the total value of the irregularity unless it is impracticable to determine, in which case reasons there for are provided in the note. Irregular expenditure is removed from the note when it is either condoned by the relevant authority or transferred to receivables for recovery. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

17. Prior period errors

Prior period errors are omissions from, and misstatements in, the department’s fi nancial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that: a) was available when fi nancial statements for those periods were authorised for issue; and b) could reasonably be expected to have been obtained and taken into account in the preparation

and presentation of those fi nancial statements.

Such errors include the effects of mathematical mistakes, mistakes in applying accounting policies, oversights or misinterpretations of facts, and fraud. Prior year errors are therefore corrected retrospectively.


Vote 8:



2013/14 2013/14

122

1. Annual Appropriation

1.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2013/14 2012/13

FinalAppropriation

Actual FundsReceived

Funds notrequested/

not received

Appropriationreceived

R’000 R’000 R’000 R’000

Administration 218,806 218,806 - 342,619Public Works 592,521 592,521 - 525,327Transport Infrastructure

2,049,131 2,049,131 - 1,630,391


1,017,847 1,017,847 - 988,361

Community Based Programme

68,170 68,170 - 39,131

Total 3,946,475 3,946,475 - 3,525,829

1.2 Conditional grants Note

2013/14 2012/13R’000 R’000

Total grants received 28 1,973,010 1,773,184

Provincial grants included in Total Grants re-ceived

1,973,010 1,773,184

2. Statutory Appropriation 2013/14 2012/13

R’000 R’000

Member of executive committee 1,735 1,652

Actual Statutory Appropriation received 1,735 1,652

3. Departmental revenue Note 2013/14 2012/13

R’000 R’000

Sales of goods and services other than capital as-sets

3.1 10,045 18,860

Fines, penalties and forfeits 3.2 5,590 -Interest, dividends and rent on land 3.3 1,637 1,948Sales of capital assets 3.4 3,283 934Transactions in fi nancial assets and liabilities 3.5 3,415 4,106Total revenue collected 23,970 25,848Less: Own revenue included in appropriation - -


Vote 8:



2013/14 2013/14

123

Departmental revenue collected 23,970 25,8483.1 Sales of goods and services other than capital assets

Note 2013/14 2012/133 R’000 R’000

Sales of goods and services produced by the department

9,914 18,805

Sales by market establishment 3,822 -Administrative fees 1,739 11,683Other sales 4,353 7,122

Sales of scrap, waste and other used current goods

131 55

Total 10,045 18,860

3.2 Fines, penalties and forfeitsNote 2013/14 2012/13

3 R’000 R’000

Penalties 5,590 -

3.3 Interest, dividends and rent on landNote 2013/14 2012/13

3 R’000 R’000

Interest 1,637 1,948

3.4 Sale of capital assetsNote 2013/14 2012/13

3 R’000 R’000Tangible assets

Machinery and equipment 26 3,283 934

3.5 Transactions in fi nancial assets and liabilitieseNote 2013/14 2012/13

3 R’000 R’000

Receivables 1,922 3,369Stale cheques written back 248 1Other Receipts including Recoverable Revenue 1,245 736Total 3,415 4,106

4. Compensation of employees

4.1 Salaries and WagesNote 2013/14 2012/13

4 R’000 R’000

Basic salary 528,056 500,903Performance award 12,622 12,268Service Based 47,921 2,574Compensative/circumstantial 21,118 21,703Periodic payments 4,594 241Other non-pensionable allowances 71,056 114,324Total 685,367 652,013


Vote 8:



2013/14 2013/14

124

4.2 Social contributionsNote 2013/14 2012/13

4 R’000 R’000Employer contributionsPension 68,522 68,705Medical 50,705 49,920UIF 14 -Bargaining council 227 214Total 119,468 118,839

Total compensation of employees 804,835 770,852

Average number of employees 3,724 3,861

5. Goods and services Note 2013/14 2012/13

R’000 R’000

Administrative fees 145 139Advertising 2,686 1,764Assets less then R5,000 5.1 465 855Bursaries (employees) - 785Catering 4,106 2,222Communication 16,461 18,727Computer services 5.2 1,047 1,608Consultants, contractors and agency/out-sourced services

5.3 170,073 165,660

Audit cost – external 5.4 9,955 8,276Fleet services 41,791 24,959Inventory 5.5 62,487 112,220Consumables 5.6 68,429 -Operating leases 30,557 27,198Property payments 5.7 312,534 381,612Rental and hiring - 59Transport provided as part of the departmental activities

427,005 439,557

Travel and subsistence 5.8 59,972 58,485Venues and facilities 2,301 1,212Training and staff development 29,517 1,762Other operating expenditure 5.9 5,852 16,418Total 1,245,383 1,263,518

5.1 Assets less than R5,000Note 2013/14 2012/13

5 R’000 R’000Tangible assets

Machinery and equipment 465 855Total 465 855


Vote 8:



2013/14 2013/14

125

5.2 Computer servicesNote 2013/14 2012/13

5 R’000 R’000

SITA computer services 792 1,052External computer service providers 255 556Total 1,047 1,608

5.3 Consultants, contractors and agency/outsourced servicesNote 2013/14 2012/13

5 R’000 R’000

Business and advisory services 24,906 56,700Infrastructure and planning 78,198 49,933Legal costs 3,667 6,015Contractors 3,614 147Agency and support/outsourced services 59,688 52,865Total 170,073 165,660

5.4 Audit cost – External Note 2013/14 2012/13

5 R’000 R’000

Regularity audits 9,955 8,276

5.5 InventoryNote 2013/14 2012/13

5 R’000 R’000

Clothing material and accessories 2,103 -Food and food supplies - 106Fuel, oil and gas 3,604 8,235Materials and supplies 56,780 8,749Medical supplies - 8Other Supplies 5.5.1 - 95,122Total 62,487 112,220

5.5.1 Other suppliesNote 2013/14 2012/135.5 R’000 R’000

Other - 95,122Total - 95,122

5.6 ConsumablesNote 2013/14 2012/13

5 R’000 R’000Consumable supplies 61,057 -

Uniform and clothing 5,451 -Household supplies 38,388 -Building material and supplies 8,168 -Communication accessories - -IT consumables 125 -Other consumables 8,925 -

Stationery, printing and offi ce supplies 7,372 -


Vote 8:



2013/14 2013/14

126

Total 68,429 -5.7 Property payments

Note 2013/14 2012/135 R’000 R’000

Municipal services - 21,581Property maintenance and repairs 223,651 271,360Other 88,883 88,671Total 312,534 381,612

5.8 Travel and subsistenceNote 2013/14 2012/13

5 R’000 R’000

Local 59,972 58,351Foreign - 134Total 59,972 58,485

5.9 Other operating expenditureNote 2013/14 2012/13

5 R’000 R’000

Learnerships - 1,529Professional bodies, membership and subscription fees

130 158

Other 5,722 14,731Total 5,852 16,418

6. Payments for fi nancial assetsNote 2013/14 2012/13

R’000 R’000

Debts written off 6.1 1,790 2,502Total 1,790 2,502

6.1 Debts written offNote 2013/14 2012/13

6 R’000 R’000

Irrecoverable debts written off 1,790 2,502

7. Transfers and subsidies2013/14 2012/13

R’000 R’000Note

Provinces and municipalities Annex 1A 140,106 76,870Public corporations and private enterprises Annex 1B 469,961 464,724Households Annex 1C 11,622 7,734Total 621,689 549,328

Unspent funds transferred to the above benefi ciaries - -


Vote 8:



2013/14 2013/14

127

8. Expenditure for capital assets Note 2013/14 2012/13

R’000 R’000

Tangible assets 1,271,242 936,882Buildings and other fi xed structures 27 1,183,949 922,528Machinery and equipment 26 87,293 14,354

Total 1,271,242 936,882

8.1 Analysis of funds utilised to acquire capital assets – 2013/14Voted funds Total

R’000 R’000

Tangible assets 1,235,142 931,241Buildings and other fi xed structures 1,183,949 922,528Machinery and equipment 51,193 8,713

Total 1,235,142 931,241

8.2 Finance lease expenditure included in expenditure for capital assets2013/14 2012/13

R’000 R’00036,100 5,641

Machinery and equipment

8.3 Analysis of funds utilised to acquire capital assets – 2012/13Voted funds Total

R’000 R’000

Tangible assets 936,882 936,882Buildings and other fi xed structures 922,528 922,528Machinery and equipment 14,354 14,354

Total 936,882 936,882

9. Unauthorised expenditure

9.1 Reconciliation of unauthorised expenditureNote 2013/14 2012/13

9 R’000 R’000

Opening balance 2,214 4,875Less: Amounts approved by Legislature with funding - (2,661)Less: Amounts approved by Parliament/Legislature without funding and written off in the Statement of Financial Performance

(2,214) -

Unauthorised expenditure awaiting authorisation / written off

- 2,214

Analysis of awaiting authorisation per economic clas-sifi cation

Current - 2,214


Vote 8:



2013/14 2013/14

128

9.2 Analysis of unauthorised expenditure awaiting authorisation per type9 2013/14 2012/13

R’000 R’000

Unauthorised expenditure relating to overspend-ing of the vote or a main division within a vote

- 2,214

Total - 2,214

10. Receivables2013/14 2012/13

Note

Less than one year

One to three years

Older than three

yearsTotal Total

R’000 R’000 R’000 R’000 R’000

Claims recover-able

10.1Annex3

7,568 169 1,653 9,390 8,761

Staff debt 10.2 342 28 17 387 411

Fruitless and wasteful expendi-ture

10.4 - - - - 4,052

Other debtors 10.3 869 380 15,710 16,959 14,563

Total 8,779 577 17,380 26,736 27,787

10.1 Claims recoverableNote 2013/14 2012/13

10 R’000 R’000

National departments 50 49Provincial departments 9,340 7,945Local governments - 767Total 9,390 8,761

10.2 Staff debtNote 2013/14 2012/13

10 R’000 R’000

Employees 387 411Total 387 411

10.3 Other debtorsNote 2013/14 2012/13

10 R’000 R’000

Suppliers 6,351 6,304Rental (Business and Housing) 5,956 6,828Other debtors 4,052 -Ex-Employees 541 1,429Tax Debts 28 2Sal: Reversal Control: CA 28 -Sal: Deduction Disallowance Acc: CA 3 -Total 16,959 14,563


Vote 8:



2013/14 2013/14

129

10.4 Fruitless and Wasteful ExpenditureNote 2013/14 2012/13

10 R’000 R’000

Opening balance 4,052 4,052Transfer from the statement of fi nancial position to note 10: Receivables (Other debtors)

(4,052) -

Total - 4,052

11. Voted funds to be surrendered to the Revenue FundNote 2013/14 2012/13

R’000 R’000

Opening balance 4,399 (36,477)Transfer from statement of fi nancial performance 1,057 4,399Paid during the year (4,399) 36,477Closing balance 1,057 4,399

12. Departmental revenue and NRF Receipts to be surrendered to the Revenue FundNote 2013/14 2012/13

R’000 R’000

Opening balance 3,305 7,532Transfer from Statement of Financial Performance 23,970 25,848Own revenue included in appropriation - -Paid during the year (25,610) (30,075)Closing balance 1,665 3,305

13. Bank OverdraftNote 2013/14 2012/13

R’000 R’000

Consolidated Paymaster General Account (17,462) (14,988)Total (17,462) (14,988)

14. Payables – currentNote 2013/14 2012/13

R’000 R’000

Clearing accounts 14.1 375 200Other payables 14.2 157 198Total 532 398

14.1 Clearing accountsNote 2013/14 2012/13

14 R’000 R’000

Sal: Income Tax: CL 350 200Sal: ACB Recall 16 -Sal: Pension Fund 9 -Total 375 200


Vote 8:



2013/14 2013/14

130

14.2 Other payablesNote 2013/14 2012/13

14 R’000 R’000

Wesbank Refunds 157 -Public Infrastructure Summit - 193Offi ce of the Premier - 5Total 157 198

15. Net cash fl ow available from operating activitiesNote 2013/14 2012/13

R’000 R’000

Net surplus/(defi cit) as per Statement of Financial Performance

25,027 30,247

Add back non cash/cash movements not deemed operating activities

1,241,349 893,258

(Increase)/decrease in receivables – current 1,051 37,163(Increase)/decrease in other current assets 2,214 2,661Increase/(decrease) in payables – current 134 (52,439)Proceeds from sale of capital assets (3,283) (934)Expenditure on capital assets 1,271,242 936,882Surrenders to Revenue Fund (30,009) 6,402Own revenue included in appropriation - -Other non-cash items - (36,477)Net cash fl ow generated by operating activities 1,266,376 923,505

16. Reconciliation of cash and cash equivalents for cash fl ow purposes

Note 2013/14 2012/13R’000 R’000

Consolidated Paymaster General account (17,462) (14,988)Total (17,462) (14,988)


Vote 8:



2013/14 2013/14

131

Thes

e am

ount

s are

not

reco

gnise

d in

the

Ann

ual F

inan

cial

Sta

tem

ents

and

are

disc

lose

d to

enh

ance

the

usef

ulne

ss o

f the

Ann

ual F

inan

cial

Sta

tem

ents.

17.

Con

tinge

nt lia

biliti

es a

nd c

ontin

gent

ass

ets

17.1

C

ontin

gent

liabi

lities

Not

e20

13/1

420

12/1

3R’

000

R’00

0Lia

ble

to

Nat

ure

Hous

ing

loan

gua

rant

ees

Empl

oyee

sA

nnex

2A

3,25

13,

898

Cla

ims a

gain

st th

e de

partm

ent

Ann

ex 2

B29

5,57

429

6,04

9O

ther

dep

artm

ents

(inte

rdep

artm

enta

l unc

onfi r

med

bal

ance

s)

Ann

ex 4

-19

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Tota

l29

8,82

531

9,92

4

18.

Com

mitm

ents

Note

2013

/14

2012

/13

R’00

0R’

000

Cur

rent

exp

endi

ture

App

rove

d an

d co

ntra

cted

914,

465

1,19

9,34

5

Cap

ital e

xpen

ditu

reA

ppro

ved

and

cont

ract

ed1,

980,

428

1,09

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8

Tota

l Com

mitm

ents

2,89

4,89

32,

298,

003

Cur

rent

and

Cap

ital a

ppro

ved

and

cont

ract

ed c

omm

itmen

ts in

clud

e th

e fo

llow

ing

com

mitm

ents

whi

ch a

re lo

nger

than

a y

ear;

1.

Scho

lar T

rans

port-

(Not

late

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n a

year

– R

418,

268

milli

on; L

ater

than

a y

ear b

ut n

ot la

ter t

han

5 ye

ars -

R 4

63,4

59 m

illion

)

2.

Rive

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e G

over

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t Com

plex

Mai

nten

ance

- (N

ot la

ter t

han

a ye

ar –

R8,

953m

illion

; Lat

er th

an a

yea

r but

not

late

r tha

n 5

year

s –

R0,8

06 m

illion

)

3.

Infra

stru

ctur

e pr

ojec

ts a

mou

ntin

g to

R1,

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428

billio

n.

Mpu

mal

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vinc

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partm

ent o

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orks

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ds a

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ansp

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8:

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es to

the

Ann

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inan

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Sta

tem

ents

for t

he y

ear e

nded

31

Mar

ch 2

014


2013/14 2013/14

132

19.

Acc

rual

s and

pay

able

s not

reco

gnise

d20

13/1

420

12/1

3Lis

ted

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cono

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ssifi c

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0 Da

ys30

+ Da

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tal

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l

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ds a

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ital a

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ther

721

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67,8

59

Not

e20

13/1

420

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ted

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vel

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inist

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723

5,69

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13/1

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8:

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inan

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for t

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31

Mar

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014


2013/14 2013/14

133

20.

Empl

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ben

efi ts

Not

e20

13/1

420

12/1

3

R’00

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title

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ped

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e af

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akin

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the

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tive

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e cr

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whi

ch w

ill be

ded

ucte

d in

the

curre

nt c

ycle

leav

e cr

edits

and

neg

ativ

e ca

pped

leav

e cr

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will

be d

educ

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signa

tion

and

or re

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ent.

19.

Perfo

rman

ce a

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ds d

isclo

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e ex

pend

iture

am

ount

of R

12, 6

22 fo

r 201

3/14

fi na

ncia

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21.

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e co

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ts

21.1

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pera

ting

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13/1

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ruct

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and

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6,39

396

118

7,35

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51,

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stru

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Ann

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31

Mar

ch 2

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2013/14 2013/14

134

21.2

Fin

ance

leas

e ex

pend

iture

2013

/14

Mac

hine

ry a

nd

equi

pmen

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late

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ents

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625

154,

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late

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725

190,

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In th

e pr

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us fi

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ear t

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nanc

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com

mitm

ent a

mou

nt w

as p

art o

f the

com

mitm

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urre

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ved

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cont

ract

ed

expe

nditu

re in

not

e 1

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8:

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Ann

ual F

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cial

Sta

tem

ents

for t

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31

Mar

ch 2

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2013/14 2013/14

135

22.

Irreg

ular

exp

endi

ture

22.1

Re

conc

iliatio

n of

irre

gula

r exp

endi

ture

Not

e20

13/1

420

12/1

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R’00

0R’

000

Ope

ning

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ance

442,

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419,

331

Add

: Irre

gula

r exp

endi

ture

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latin

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rent

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Irreg

ular

exp

endi

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aw

aitin

g co

ndon

atio

n44

2,56

344

2,33

7

Ana

lysis

of a

wai

ting

cond

onat

ion

per a

ge c

lass

ifi cat

ion

Cur

rent

yea

r22

623

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Prio

r yea

rs44

2,33

741

9,33

1To

tal

442,

563

442,

337

22.2

A

naly

sis o

f cu

rrent

yea

r’s ir

regu

lar e

xpen

ditu

re

Inci

dent

Di

scip

linar

y ste

ps ta

ken

/crim

inal

2

013/

14

pro

ceed

ings

R

’000

Pe

rform

ance

bon

uses

pai

d no

t in

line

with

pre

scrip

ts

N

one

55

Acc

omm

odat

ion

for r

eset

tlem

ent o

f new

ly a

ppoi

nted

offi

cial

s

N

one

1

18Ex

pire

d co

ntra

ct o

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sed

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one

53

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ing

poss

ible

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has

not

bee

n in

clud

ed in

the

amou

nt d

isclo

sed

abov

e. Th

e fu

ll ex

tent

of i

rregu

larit

y w

ould

onl

y be

kno

wn

at th

e co

nclu

sion

of th

ese

inve

stiga

tions

. The

am

ount

disc

lose

d ab

ove

may

cha

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base

d on

the

outc

ome

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ese

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stiga

tions

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ent o

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lic W

orks

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ds a

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8:

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Ann

ual F

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cial

Sta

tem

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for t

he y

ear e

nded

31

Mar

ch 2

014


2013/14 2013/14

136

23.

Fr

uitle

ss a

nd w

aste

ful e

xpen

ditu

re

23.1

Re

conc

iliat

ion

of fr

uitle

ss a

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aste

ful e

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ditu

re

Not

e20

13/1

420

12/1

322

R’00

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000

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ning

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ance

5,44

75,

405

Frui

tless

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was

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l exp

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latin

g to

cur

rent

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r12

142

Frui

tless

and

was

tefu

l exp

endi

ture

aw

aitin

g re

solu

tion

5,56

85,

447

23.2

A

naly

sis o

f aw

aitin

g re

solu

tion

per e

cono

mic

cla

ssifi c

atio

nN

ote

2013

/14

2012

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22R’

000

R’00

0C

urre

nt5,

568

5,44

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tal

5,56

85,

447

23.3

A

naly

sis o

f cu

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yea

r’s fr

uitle

ss a

nd w

aste

ful e

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re

Inci

dent

Di

scip

linar

y ste

ps ta

ken

/crim

inal

2

013/

14

pro

ceed

ings

R

’000

No

show

for a

ccom

mod

atio

n bo

oked

Non

e

2A

ccom

mod

atio

n fo

r offi

cial

s wor

king

over

time

N

one

12

Ove

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men

t to

a su

pplie

r

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e

1

1A

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atio

ns e

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the

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wed

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one

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Ann

ual F

inan

cial

Sta

tem

ents

for t

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ear e

nded

31

Mar

ch 2

014


2013/14 2013/14

137

24. R

elat

ed p

arty

tran

sact

ions

Durin

g th

e fi n

anci

al y

ear u

nder

revi

ew th

e De

partm

ent p

rovi

ded

free

acco

mm

odat

ion

to th

e fo

llow

ing

Depa

rtmen

ts.

1. V

ote

1 :

Offi

ce o

f the

Pre

mie

r 2.

Vot

e 2

: P

rovi

ncia

l Leg

islat

ure

3. V

ote

3 :

Fin

ance

4. V

ote

4 :

Co-

oper

ativ

e G

over

nanc

e an

d T

rad

ition

al A

ffairs

5. V

ote

5 :

Agr

icul

ture

, Rur

al D

evel

opm

ent a

nd L

and

Ad

min

istra

tion

6. V

ote

6 :

Eco

nom

ic D

evel

opm

ent,

Envi

ronm

ent a

nd T

ouris

m7.

Vot

e 7

: E

duc

atio

n8.

Vot

e 9

: S

afet

y, S

ecur

ity a

nd L

iaiso

n9.

Vot

e 10

: He

alth

10. V

ote

11: C

ultu

re, S

ports

and

Rec

reat

ion

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2013/14 2013/14

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2013/14 2013/14

170

NOTES__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


ANNUAL REPORT 2013/14 - Provincial Government · CIDB Construction Industry Development Board ......

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Transcript of ANNUAL REPORT 2013/14 - Provincial Government · CIDB Construction Industry Development Board ......