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Annual Report 2019/20 ANNUAL REPORT COVID-19 1 PRACTICE GOOD HYGIENE; STAY SAFE 2019/20 ANNUAL REPORT COVID-19 2 PRACTICE GOOD HYGIENE; STAY SAFE 2019/202019/20 ANNUALANNUAL REPORTREPORT COVID-19 3 PRACTICE GOOD HYGIENE; STAY SAFE 2019/20 ANNUAL CONTENTS REPORT PART A: GENERAL INFORMATION 7 NW PROVINCIAL LEGISLATURE GENERAL INFORMATION 7 LIST OF ABBREVIATIONS / ACRONYMS 8 FOREWORD BY THE SPEAKER 11 REPORT OF THE ACCOUNTING OFFICER 13 3. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 19 4. STRATEGIC OVERVIEW 20 4.1. VISION 20 4.2. MISSION 20 4.3. ORGANISATIONAL VALUES 20 5. LEGISLATIVE AND OTHER MANDATES 20 5.1. MANDATE OF THE LEGISLATURE 21 6. ORGANISATIONAL STRUCTURE 24 7. ENTITIES REPORTING TO THE SPEAKER 30 PART B: PERFORMANCE INFORMATION 31 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES 32 2. OVERVIEW OF INSTITUTIONAL PERFORMANCE 32 2.1. SERVICE DELIVERY ENVIRONMENT 32 2.2. SERVICE DELIVERY IMPROVEMENT PLAN 32 2.3. ORGANISATIONAL ENVIRONMENT 33 2.4. KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES 35 3. STRATEGIC OUTCOME-ORIENTED GOALS 35 4. PERFORMANCE INFORMATION BY PROGRAMME 36 4.1. PROGRAMME 1: ADMINISTRATION 36 4.2. PROGRAMME 2: MEMBERS’ SALARIES 39 4.3. PROGRAMME 3: LEGISLATURE OPERATIONS 42 5. TRANSFER PAYMENTS 47 5.1. TRANSFER PAYMENTS TO PUBLIC ENTITIES 47 5.2. TRANSFER PAYMENTS TO ALL ORGANISATIONS OTHER THAN PUBLIC ENTITIES 48 6. CONDITIONAL GRANTS 49 6.1. CONDITIONAL GRANTS AND EARMARKED FUNDS PAID 49 6.2. CONDITIONAL GRANTS AND EARMARKED FUNDS RECEIVED 49 7. DONOR FUNDS RECEIVED 49 8. CAPITAL INVESTMENT 50 8.1. CAPITAL INVESTMENT, MAINTENANCE AND ASSET MANAGEMENT PLAN 50 COVID-19 4 PRACTICE GOOD HYGIENE; STAY SAFE 2019/20 ANNUAL CONTENTS REPORT PART C: GOVERNANCE 52 1. RISK MANAGEMENT 53 1.1. RISK MANAGEMENT ACTIVITIES 53 2. FRAUD AND CORRUPTION 53 3. MINIMISING CONFLICT OF INTEREST 54 4. CODE OF CONDUCT 54 5. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 54 6. PORTFOLIO COMMITTEE ON LEGISLATURE AFFAIRS 54 7. PRIOR MODIFICATIONS TO AUDIT REPORTS 55 8. INTERNAL CONTROL UNIT 56 9. INTERNAL AUDIT AND AUDIT COMMITTEE 56 10. AUDIT COMMITTEE REPORT 56 10.1. MEMBERSHIP AND ATTENDANCE 56 10.2. AUDIT COMMITTEE RESPONSIBILITY 58 10.3. THE EFFECTIVENESS OF INTERNAL CONTROL 58 10.4. EFFECTIVENESS OF INTERNAL AUDIT 58 10.5. COMBINED ASSURANCE 59 10.6. PERFORMANCE INFORMATION 59 10.7. RISK MANAGEMENT 59 10.8. IN-YEAR MANAGEMENT AND QUARTERLY REPORT 60 10.9. EVALUATION OF THE FINANCIAL STATEMENTS DATED 31 MARCH 2020 60 10.10. AUDITOR-GENERAL SOUTH AFRICA 60 10.11. COMPLIANCE 60 10.12. CONCLUSION 60 PART D: HUMAN RESOURCE MANAGEMENT 62 1. INTRODUCTION 63 2. HUMAN RESOURCE OVERSIGHT STATISTICS 63 PART E: FINANCIAL INFORMATION 84 1. AUDITOR GENERAL REPORT 85 2. ANNUAL FINANCIAL STATEMENTS 90 ANNEXURE A: NWPL ORGANOGRAM 142 COVID-19 5 PRACTICE GOOD HYGIENE; STAY SAFE PART A: GENERAL INFORMATION 2019/20 ANNUAL REPORT GENERAL INFORMATION COVID-19 PRACTICE GOOD HYGIENE; STAY SAFE PART A: GENERAL INFORMATION 2019/20 ANNUAL NWPL GENERAL INFORMATION REPORT NORTH WEST PROVINCIAL LEGISLATURE PHYSICAL ADDRESS: New Legislature Building Dr. James Moroka Drive MMABATHO 2735 POSTAL ADDRESS: Private Bag X2018 MMABATHO 2735 CONTACT DETAILS TELEPHONE NUMBER/S: (018) 392 7063 FAX NUMBER: (018) 392 7108 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.nwpl.gov.za COVID-19 7 PRACTICE GOOD HYGIENE; STAY SAFE PART A: GENERAL INFORMATION 2019/20 ANNUAL LIST OF ABBREVIATIONS / ACRONYMS REPORT Abbreviation / Acronym Meaning AC Audit Committee AFS Annual Financial Statements AG Auditor-General AGSA Auditor-General of South Africa AO Accounting Officer ANC African National Congress APP Annual Performance Plan AR Annual Report B. Com Bachelor of Commerce CA Chartered Accountant CASA Chartered Accountant South Africa CD (SA)IoDS Chartered Director South Africa CISA Certified Information Security Auditor CISM Certified Information Security Management CFO Chief Financial Officer CMAC Consequence Management Advisory Committee CRM-Prac Certified Risk Management Practitioner COVID-19 Coronavirus Disease 2019 DA Democratic Alliance DTI Department of Trade and Industry EFF Economic Freedom Fighters ERP Enterprise Resource Plan FMPPLA Financial Management of Parliament and Provincial Legislatures Act 2009, (Act No. 10 of 2009) as amended GL General Ledger GRAP Generally Recognised Accounting Practices HOA Home Owners Allowance Hon. Honourable HR Human Resource IAA Internal Audit Activity ICT Information and Communication and Technology IFW Irregular, Fruitless and Wasteful IT Information Technology IRMSA Institute of Risk Management of South Africa KPI Key Performance Indicator COVID-19 8 PRACTICE GOOD HYGIENE; STAY SAFE PART A: GENERAL INFORMATION 2019/20 ANNUAL LIST OF ABBREVIATIONS / ACRONYMS REPORT Abbreviation / Acronym Meaning MBA Master of Business Administration M.Com Master of Commerce MEC Member of Executive Council MP Member of Parliament MPL Member of Provincial Legislature MTEF Medium Term Expenditure Framework NA National Assembly N/A Not Applicable NCOP National Council of Provinces NDP National Development Plan NKPI New Key Performance Indicator No. Number NWPL North West Provincial Legislature PAAP Post Audit Action Plan PI Performance Information PFMA Public Finance Management Act PP Public Protector PSETA Public Service Sector Education and Training Authority R Rand RMC Risk Management Committee SA South Africa SADCOPAC Southern Africa Development Community Organisation of Public Ac- counts Committee SALGA South African Local Government Association SAQA South African Qualification Authority SCM Supply Chain Management SDIP Service Delivery Improvement Plan SMS Senior Management Service SOM Sector Oversight Model SOPA State of the Province Address TIDs Technical Indicator Descriptions TR Treasury Regulations VF+ Vryheids Front Plus WHO World Health Organisation COVID-19 9 PRACTICE GOOD HYGIENE; STAY SAFE 2019/20 ANNUAL REPORT COVID-19 10 PRACTICE GOOD HYGIENE; STAY SAFE PART A: GENERAL INFORMATION 2019/20 ANNUAL FOREWORD BY THE SPEAKER REPORT the establishment of the 6th While some targets for the period Legislature, we tabled the Annual under review have not been Performance Plan which set out achieved due to focus strategic areas for the the COVID-19 pandemic in the year and Strategic Plan 2020- fourth quarter, the Legislature 25 that set priorities for the term was able to achieve the planned of the new Administration. Key targets in the past three quarters to our commitments is our drive of the financial year. We have to realise full implementation delivered on our commitments of our constitutional mandate with a number of National and of oversight, law-making and Provincial Bills passed by the to ensure improved public House (especially Money Bills involvement. legislation), oversight through quarterly O Re Bone Re Go Bone It is however important to note that and other Legislature activities in the period under review we did such as Sectoral Parliaments. not introduce new policy position HON S.R. DANTJIE but we mainly covered all areas We ensured public involvement that remained outstanding from in law-making through public SPEAKER OF THE the Strategic Plan of 2015-2020 and hearings and initiated public NORTH WEST managed the transition to the new outreach programmes with the PROVINCIAL LEGISLATURE administration. The programmes aim to create awareness on the that were adopted in this period work of the Legislature. These take this opportunity to present the were mainly compliance matters public functions include Engage I Annual Report for the North West as required by the Financial with the Legislature and Basadi Re Provincial Legislature for 2019/20 Management of Parliament and Aga Setshaba. financial year. This financial year Provincial Legislature Act, No. 10 of marked the transition from the 5th 2009, as amended. On financial management to the current 6th administration. matters, our focus is to continue It gives me pleasure to reflect on This Legislature will introduce a working hard in strengthening the work of the 5th Legislature and new programme namely, Taking Financial Management Division, to usher in new path for the 6th Legislature to the People to improve internal controls and Administration. enhance and strengthen people’s reduce audit findings. We involvement in the work of the however could not make a In this period under review, Legislature. It will improve efficiency meaningful impact in achieving the Administration team of and transparency in holding the our commitments due challenges the Legislature working with Executive accountable through ranging from lack of commitment the Judiciary facilitated the direct interaction with the public. and consequence management establishment of the 6th We intend to host this programme within management, slow pace Legislature. All thirty-three (33) on rotational basis across the four when coming to investigations Members of the Legislature were districts. During the period under and poor implementation of Audit sworn-in on 22 May 2019. review, the programme was still Committee recommendations. The transition included the election at its conceptual stage and its This happened despite our efforts of the Premier, Speaker, Deputy implementation has been delayed to establish Irregular, Fruitless and Speaker, Chair of Chairs, Chief Whip even further due to the COVID-19 Wasteful Expenditure Governance and Chairpersons of Standing pandemic restrictions imposed Assurance (IFW) Committee and Portfolio Committees. All by Government during the State that reports its
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