Annual Report for the Year Ended 31 March 2013

AnnuAl RepoRt For the yeAr ended 31 MaRch 2013

Designed & printed by SwiftPrint, Tel: 053 839 2900, Kimberley Northern Cape Provincial Legislature, Vote 2

Annual Report 2012/13

Submission of the annual report to the Speaker

Hon. JT Beukes Deputy Speaker to the Northern Cape Provincial Legislature

I have the honour of submitting the Annual Report of the Northern Cape Provincial Legislature for the period 1 April 2012 to 31 March 2013.

PB Moopelwa Acting Secretary to the Legislature 31 May 2013

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TABLE OF CONTENTS

1. GENERAL INFORMATION Vision, Mission and Values______8 Organisational Structure______8 Legislative Mandate______9 Entities Reporting to the Speaker______9 Speaker’s Statement______10 Accounting Officer’s Overview______11

2. INFORMATION ON PREDETERMINED OBJECTIVES 2.1 Overall Performance______14 2.1.1 Voted Funds______14 2.1.2 Aim of vote______14 2.1.3 Summary of Programmes______14 2.1.4 Key Strategic Objectives Achievements______15 2.1.5 Overview of the service delivery environment for 2011/12______16 2.1.6 Overview of the organisational environment for 2011/12______17 2.1.7 Key policy developments and legislative changes______18 2.1.8 Legislature’s revenue, expenditure and other specific topics______18 2.1.9 Legislature expenditure______18 2.1.10 Transfer payments______19 2.1.11 Conditional grants and earmarked funds______19 2.1.12 Capital investment, maintenance and asset management plan______19 2.2 Programme Performance______20 Programme 1: Administration______21 Programme 2: Facilities and Benefits for Members and Political Party Support______25 Programme 3: Parliamentary Services______26

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3. ANNUAL FINANCIAL STATEMENTS

Report of the Audit Committee______33

Report of the Accounting Officer______35

Report of the Auditor-General______43

Appropriation Statement______50

Notes to the Appropriation Statement______61

Statement of Financial Performance______62

Statement of Financial Position______63

Statement of Changes in Net Assets______64

Cash Flow Statement______65

Notes to the Annual Financial Statements (including Accounting Policies)______66

Disclosure notes to the Annual Financial Statements______88

Annexures (Unaudited supplementary schedules)______98

4. HUMAN RESOURCES MANAGEMENT______107

5. OTHER INFORMATION

Acronyms______143

List of contact details______144

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Office Bearers

Hon. JF van Wyk Hon. Juanita Beukes Speaker Deputy Speaker

Hon. Kagisho Molusi Hon. Chukelwa Chotelo Hon. Gladys Oliphant Chief Whip Chairperson of Deputy Chairperson of Committees Committees

Chairpersons of Portfolio & Standing Committees

Hon. John Galela Hon. Gladys Oliphant Hon Bongiwe Mbinqo- Hon. Kagisho Molusi • Agriculture, Land Reform, • Co-operative Governance, Gigaba • Finance, Economic Rural Development and Human Settlement and • Education, Sport, Arts Development and Conservation Traditional Affairs and Culture Tourism

Hon. Alexandra Beukes Hon. Kagisho Molusi Hon. Juanita Beukes • Health and Social • Safety, Transport and • Ethics and Discipline Development Public Works • Programme • Scopa

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Leader of Government Business

Hon. Kenny Mmoiemang

Leaders of Opposition Parties

Hon. Andrew Louw Hon. Fred Wyngaard Hon. Harold Mcgluwa DA COPE ID

Whips of Political Parties

Hon Bongiwe Mbinqo- Hon. Kagisho Molusi Hon. Bella Matthys Gigaba Chief Whip ANC Whip COPE Whip ANC

Hon. Dr Allan Grootboom Hon. Ishmail Obaray Whip DA Whip ID

5 Northern Cape Provincial Legislature, Vote 2 egislature L vincial o r P ape C rthern o N the

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PART 1: GENERAL INFORMATION

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1. GENERAL INFORMATION

Mission, Vision and Values

Vision An institution fulfilling its constitutional mandate for the people of the Northern Cape.

Mission To serve people of the Northern Cape by building a developmental institution for effective law making, public participation, accountability and oversight over the executive and municipalities.

Values • Commitment and dedication; • High level of integrity, loyalty and honesty; • Effective and professionalism; • Transparency, accessibility and communication; • Accountability and good governance; • Stakeholder involvement; • Courage to change and be innovative; • Excellent and timely delivery

Organisational structure

INTERNAL AUDIT OFFICE OF THE SPEAKER MANAGER - TREASURY COMMITTEE SERVICES

INTERNAL AUDITOR OFFICE OF THE SECRETARY LEGAL SERVICES GOVERNMENT GAZETTE

PARLIAMENTARY SERVICES

PROCEDURAL AND PUBLIC EDUCATION HANSARD AND CORPORATE SERVICES SECURITY AND FINANCIAL RESEARCH AND LANGUAGE RECORDS MANAGEMENT COMMUNICATIONS SERVICES

NCOP AND HUMAN RESOURCES SECURITY AND FINANCIAL SALARIES AND PROCEEDINGS PUBLIC REPORTING MANAGEMENT SAFETY SERVICES MANAGEMENT BOOKKEEPING EDUCATION SERVICES ACCOUNTING

COMMITTEE INFORMATION RECORDS BUDGET & SERVICES COMMUNICATIONS INTERPRETATION TECHNOLOGY MANAGEMENT & SUPPLY CHAIN FINANCIAL SERVICES AUXILIARY MANAGEMENT CONTROL SERVICES RESEARCH AND EMPLOYEE HEALTH AND LIBRARY WELLNESS & SPECIAL PROCUREMENT SERVICES PROGRAMMES

ASSET MANAGEMENT AND LOGISTICS

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Legislative mandate

The legislative mandates that govern the existence of the Legislature and its operations (core mandates). • The Constitution of the Republic of South Africa, 1996 • The Northern Cape Provincial Legislature Services Act, 2011, • The Public Finance Management Act , • Standing Rules of the Legislature, • The Code for the Financial Administration of the Northern Cape Provincial Legislature; • The policies of the Legislature. • The Northern Cape Petitions Act,2009 • Powers, Privileges and Immunities of Parliament and Provincial Legislature Act of 2009

Entities Reporting to the Speaker

The following Parties report to the Speaker:

Name of Party Legislation Nature of Business African National Congress(ANC) Northern Cape Political Party Fund Act no. Political Party 7 of 2009. Congress of the People(COPE) Northern Cape Political Party Fund Act no. Political Party 7 of 2009. Democratic Alliance(DA) Northern Cape Political Party Fund Act no. Political Party 7 of 2009. Independent Democrats(ID) Northern Cape Political Party Fund Act no. Political Party 7 of 2009.

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Speaker’s Statement

The Constitution of the Republic of South Africa of 1996, confers the following powers on us as the Legislature: • Law-Making • Oversight (over the Executive and Municipalities) • Public Education and Participation.

The 2012/13 Annual Report is a reflection of our performance for the entire year as a law-making institution, At the start of the fourth Legislature in 2009, we developed a new strategic plan which clearly defined our performance strategic objectives. Our performance indicators are derived from these strategic objectives in line with budgetary allocations.

We were able to make strides in implementing our Constitutional imperatives with limited funds at our disposal. In enhancing public education, we successfully held the National Council of Provinces` Taking Parliament to the People in the Pixley Ka Seme District in April and November 2012 respectively. During the next financial year, vigorous oversight will be emphasised on Municipalities, as this sphere is the coalface of service delivery.

In terms of law-making, 36 House Sittings were held and four Bills passed in 2012-13. A process to revise the Standing Rules of the Provincial Legislature that started in 2009 culminated in the adopted of these Rules on 26 February 2013.

The Legislative Sector through the National Speakers Forum has been able to develop a new oversight tool known as the Sector Oversight Model (SOM). The Northern Cape Provincial Legislature has adopted a customised version of the Sector Oversight Model focusing on three strategic Departments namely, Education, Health and Agriculture. The remaining Departments will be continuously monitored and held to account.

Public participation remains critical in all legislative processes and as such, three sectoral parliaments and sixty outreach workshops did take place during the year under review. Committee meetings are also open to members of the public in line with the constitution of the Republic. Our Regional Offices, which are the only model in the country, continue to bring services of the legislature closer to the people.

As is the case with SOM, public participation throughout the sector is finalising a framework to be used throughout the sector as a new approach in the involvement of the public in the business of the legislature.

However, there are serious and critical challenges that we are facing and which seem to be insurmountable for us due to budgetary constraints, these include the maintenance of the building (due to structural defects), upgrading of the recording equipments in the Chamber, security and access control.

However, we are of the firm view that the Northern Cape Provincial is truly an activist Parliament. The Annual Report is an indication that we indeed living up to our constitutional mandate.

______JT Beukes Deputy Speaker: Northern Cape Provincial Legislature

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Accounting Officer’s Overview

The Northern Cape Provincial Legislature’s strategic focus remained unchanged during the 2012/13 financial period. The strategic focus centred largely around the deploy of resources to carry out the Constitutional Mandate of the Northern Cape Provincial Legislature, which relates to law making, oversight of the Executive and public participation. During the year under review, a revised Annual Performance Plan (APP) was operationalized, which seeks to improve the link between our daily operations and the strategic goals of the NCPL. It furthermore seeks to facilitate improved monitoring and evaluation of the NCPL’s performance information.

The Audit Committee was also operational for the entire financial period under review. It was the first year that the NCPL could have the benefit of improved governance structure for a full financial period. It is hoped that this intervention assists us on the road to clean audit outcomes.

In terms of its spending trends, the Northern Cape Provincial Legislature has overspent on its voted funds of R115, 837 million by an amount of R 1.421 million. This amount represents 1.2% over expenditure on voted funds. It terms of its statutory allocation of R 19 586 million, the NCPL used 99.9% or an amount of R19 567 million of the allocation. Adding the voted funds with the statutory amount which is a direct charge against the provincial revenue fund, the total allocation to the NCPL was R 136 825 million. That takes the total over-expenditure to a level of 1.0%, which reflects in total an over-expenditure of R 1.402 million.

The main reason for the over-expenditure relates to under provision for municipal service, regulatory audits as well as the commissioning of a special investigation or forensic audit into fraud allegations that surfaced in the 2012/13 financial year relating to 2011/12 financial year. A more detailed elaboration will be contained later in the report.

In the previous financial year, the NCPL also received an amount of R 3,838 million from the Legislative Sector Support (LSS) programme in Parliament, which in turn receives international donor funding from the European Union. From the afore-mentioned amount R 1, 005 million has been spent, leaving an amount of R 2, 832 million unspent at year end. By year-end through, a further R 1, 036 million was committed through the procurement system. Extension for spending these funds has been granted by LSS until end of June 2013.

Policy development, at institutional level, has also received priority during the year under review. A few of the institutional policies were reviewed; this exercise is expected to reach finality in the 2013/14 fiscal period. Service providers have also been appointed to assist with the process.

With regards to the improvement of our public participation mechanisms, a sector framework for public participation is being developed by the South African Legislative Sector. The Northern Cape Provincial Legislature was also part of the public participation processes that included workshops, consultations and through questionnaires and the collection of inputs from the people of the Northern Cape on what form should the framework take. It is our believe that, only the people know how best they can effectively participate in the processes of the Legislature and its committees. A public hearing for the Northern Cape was held at the Mittah Seperepere Convention Centre in November 2012 where all Regions were represented.

The Legislature held three (3) Sectoral parliaments during the fiscal year under review, that is, the Youth, Women and Children’s Parliament and these were held in June, August and November, 2012 respectively. In April last year, the Legislature hosted the NCOP Provincial Week, with the focus on the Pixley Ka Seme District. The successful Provincial Weeks were prepared in line with the Draft Preparation Strategy for NCOP Provincial Weeks. The Legislature also take pride in successfully hosting the Taking Parliament to the People program in November last year, also in the Pixley ka Seme Region.

During the 2012/2013 financial year, the Legislature held 32 House sittings. Four provincial bills as well as 14 national bills were received during that period. Also, the Legislature held a total of 243 Portfolio Committee meetings and 109 Standing Committee meetings. The revised Standing Rules for the Legislature were adopted on 26 February 2013 and

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it is envisaged that it will go a long way in regulating the Legislature’s business with due regard to representative and participatory democracy, accountability and transparency.

The Legislature has also intensified its oversight function by adopting a customized version of theS ector Oversight Model (SOM). There has been few challenges in terms of the implementation of this model. These challenges mainly relate to capacity and resources. The main elements of SOM in the Province are, being implemented, that is, budget vote presentations, APP presentations, quarterly reports and annual reports. The prioritized departments in this regard are Health, Education and Agriculture.

Management in partnership with the representative Union have also started with a salary benchmarking process, the intention of this exercise is to find a solution to the salary debacle that has been going on in the Legislature Administration for a while. A commitment for this exercise was also made by the Speaker and the Standing Committee on Rules in that salaries of staff and management of the Legislature should be benchmarked using the Delloite and Touch Cross Correlation Table as per recommendation of the Public Service Commission.

The Members Capacity Building Programme initiated by the Speakers Forum, in collaboration with the Legislative Sector, PALAMA, UNISA and WITS Universities, encompasses a curriculum that is tailor made for the Legislative Sector. The content outline seeks to build competence in amongst others, the ability to lead discussion, collect information, analyse problems, make judgements, communicate in a more effective manner within the terrain of legislative work, conceptualise alternatives and use appropriate oversight strategies and tools to monitor and evaluate the implementation of government’s priorities, plans and programmes. All registered Members from the Northern Cape Legislature completed Phase 3 of the Members Capacity Building Programme.

As the Legislature takes pride in the development of its employees, Eighteen (18) employees of the Legislature were awarded 100% bursaries to improve their skills. This facility is available to most employees although it is a few that is making use of it. Additional to this a number of skills development programmes were implemented. This is to show that the Legislature believes in the development of its most valuable resources- its employees.

In addition to the above, the Legislature in partnership with the representative trade union, NEHAWU, embarked on a Building Workplace Relations (BWR) process which includes the involvement of external facilitation to help identify shortcomings in the mechanisms and procedures of the interactions and relationship between management and the labour unions of the Legislature.

The Legislature has in the previous year introduced a new travel system. The system has reduced the use of travel agents and the payment backlog that used to exist for the payment of travel agents. The Legislature has also in the past year replenished its official vehicles. All pool vehicles were bought from the proceeds of the auction of vehicles that were auctioned in the last financial year.

The Legislature has also participated in the activities of the Commonwealth Parliamentary Association, the Association for Public Account Committees and other international bodies. Management have however, experienced several challenges during this year owing to suspensions that took place at senior management level and at the junior employees level. These suspension exerted more pressure on the remaining employees with regards to meeting deadlines.

In conclusion I would like to express my greatest appreciation to the Speaker, Deputy Speaker, all Members of the Legislature, Legislature Management and most importantly all the support staff of the Provincial Legislature especially those that have been always willing to assist in areas that are not part of their jobs.

PB Moopelwa Acting Secretary to the Legislature 31 May 2013

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PART 2: INFORMATION ON PREDETERMINED OBJECTIVES

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2. INFORMATION ON PREDETERMINED OBJECTIVES

2.1 Overall Performance

Purpose for providing programme performance information

the programme performance of the Legislature is in accordance with the strategic and performance plans as tabled in the legislature, and is clearly reported on the Legislature’s performance against specified service delivery objectives and targets in Northern Cape Province Budget Statement 2012 and the Medium Term Expenditure Framework.

2.1.1 Voted Funds Appropriation Main Adjusted Actual Amount Over/Under Appropriation Appropriation Spent Expenditure

Baseline Allocation 107, 668 107,668 108,088 (417) Direct Charge 17,977 18,564 18,436 128 Responsible Executing The Speaker Authority Administering Institution Northern Cape Provincial Legislature Accounting Officer Secretary to the Legislature

2.1.2 Aim of vote

to provide administrative, logistical, information, legal and procedural services to the Legislature of the Northern Cape in fulfilling its constitutional mandate of law making, facilitation of public participation and oversight over the Executive and organs thereof.

2.1.3 Summary of Programmes

Programme 1: Administration

Aim of Programme – To provide effective strategic leadership, management of financial, human resource, auxiliary support services & information technology to the entire Legislature as well as strategic management of the administration.

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Programme 2: Facilities and Benefits for Members and Political Party Support

aim of Programme - To empower Provincial Political Office-Bearers in their participation of legislature business, and to enable them to do their representative work.

Programme 3: Parliamentary Services

aim of Programme - The aim of the programme is to provide the Speaker and Deputy-Speaker, the House, Committees and Members with procedural, research, information and Hansard support services in the execution of their Constitutional and Legislative duties. To capacitate Committees of the Legislature to conduct oversight and scrutiny work, as well as all other functions delegated by the House.

2.1.4 Key strategic objectives achievements

Strategic Goals Strategic Objectives To deepen and The Legislature managed to host a Youth Parliament, Women’s Parliament and a entrench a Children’s Parliament. Additional to the above a number of public hearings were people-centred held on national and provincial legislation. democracy in A total number of 13 288 people have been educated about the Legislature. A the Northern number of pre-hearing workshops were also conducted before public hearings. Cape. To strengthen The Members Capacity Building Programme initiated by the Speakers Forum, in Institutional collaboration with the Legislative Sector, PALAMA, UNISA and WITS Universities, capacity to encompasses a curriculum that is tailor made for the Legislative Sector. The content render support outline seeks to build competence in amongst others, the ability to lead discussion, to Members and collect information, analyse problems, make judgements, communicate in a more Committees effective manner within the terrain of legislative work, conceptualise alternatives to fulfil the and use appropriate oversight strategies and tools to monitor and evaluate the Legislature’s implementation of government’s priorities, plans and programmes. Constitutional Mandate. It is with great appreciation that we can convincingly report that all registered Members from the Northern Cape Legislature could complete the training. We congratulate them on this millstone achievement.

The Bursary fund is a means by which the Legislature aims to assist employees to develop themselves by studying through SAQA accredited and registered institutions. For the 2012 academic year, eighteen (18) employees were awarded 100% bursaries.

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Strategic Goals Strategic Objectives To ensure that With regard to the improvement of our public participation mechanisms, a sector the Legislature framework for public participation is being developed by the South African optimally Legislative Sector. The Northern Cape Provincial Legislature was also part of the carries out its public participation processes that included workshops, consultations and through Constitutional questionnaires and the collection of inputs from the people of the Northern Cape Mandate on what form should the framework take. A public hearing for the Northern Cape was held at the Mittah Seperepere Convention Centre in November 2012 where all Regions were represented.

In April last year, the Legislature hosted the NCOP Provincial Week, with the focus on the Pixley Ka Seme District. The successful Provincial Weeks were prepared in line with the Draft Preparation Strategy for NCOP Provincial Weeks. The Legislature also successfully hosted the Taking Parliament to the People program in November last year in the Pixley ka Seme Region.

The revised Standing Rules for the Legislature were adopted on 26 February 2013 and it is envisaged that it will go a long way in regulating the Legislature’s business with due regard to representative and participatory democracy, accountability and transparency.

The Legislature has also intensified its oversight function by adopting a customized version of the Sector Oversight Model (SOM). The main elements of SOM in the Province are, being implemented, that is, budget vote presentations, APP presentations, quarterly reports and annual reports. The prioritized departments in this regard are Health, Education and Agriculture.

2.1.5 Overview of the service delivery environment for 2012/13

the primary clients of the Legislature are Members of the Provincial Legislature, who in return are accountable to the Public. The service that Members render is mandated by the Constitution of the Republic of South Africa.

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Achievements • The Legislature passed several laws during the financial 2012/13. • Capacity building programmes for members and staff were also implemented. • With the assistance of Gobodo Chartered Accountants firm, risk management is addressed in the Legislature. • Oversight at the seat conducted over all votes. • The Audit Committee was effective during the year under review. • The Legislature hosted a successful Taking Parliament to the People Programme. • The Legislature replaced its fleet vehicles with new ones. • The Annual Performance Plan was also improved. • A Performance information Manual was developed and adopted. • 98% of House Sittings took place as planned.

2.1.6 Overview of the organisational environment for 2012/13 During the period under review the Legislature continued to experience the following organisational challenges: • More pressure on the administration as a result of suspensions of employees. • 38 % of vacancy rate owing to budget constraints. • Theft and break inns in the Legislature buildings. • Lack of a budget for building and equipment maintenance

the following were challenges faced by the different programmes in the Legislature:

Administration • Tools to measure compliance with Finance Code. • Involvement of officials in fraudulent activities. • Management of Performance Information. • Programme overspending.

Members’ Facilities & Political Parties • Political Parties Constituency activities are not covered in the report. • Budgetary allocated for Members travel is still insufficient. • The caucus fund not fully utilised.

Parliamentary Services • Lack of working tools for staff • Optimal utilisation of human and financial resources.

to mitigate the above challenges, the Legislature has put systems in place and resources to minimize the above challenges. Most of the organizational challenges are coordinated through the Speakers Office and Secretary to the Legislature.

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2.1.7 Key Policy developments and legislative changes

Strategic overview and key policy developments for the 2012/13 financial year.

as mentioned above the Legislature Audit Committee has operated effectively during the fiscal year under review. The Legislature has also been able to improve its Annual Performance Plan to be in line with Treasury requirements. The Legislature has also adopted a Performance Information Manual. Most of the Legislature policies are currently under review. The revised Standing Rules for the Legislature were adopted on 26 February 2013 and it is envisaged that it will go a long way in regulating the Legislature’s business.

the Legislature’s Research Unit has increased its performance and has been able to assist and support the portfolio Committees and SCOPA more than in the previous years. A customised Sector Oversight Model was also adopted by the Legislature.

Policy developments and legislative changes\

the only policy development was the adoption of the Standing Rules of the Legislature and the adoption of the Northern Cape Branch Constitution of the Commonwealth Parliamentary Association. The Policy on support to political parties is also under review. Internal Institutional policies are being revised.

2.1.8 Legislature revenue, expenditure, and other specific topics

Collection of Legislature revenue

the Legislature is not a revenue generating institution.

the table below is used to provide a breakdown of the sources of revenue:

2009/10 2010/11 2011/12 2012/13 2012/13 Deviation Actual Actual Actual Target Actual from target R’000 R’000 R’000 R’000 R’000 R’000 Financial transactions 1,989 2,762 3,233 2,761 3,256 - (Recovery of loans and advances) TOTAL DEPARTMENTAL 1,989 2,762 3,233 2,761 3,256 - RECEIPTS

2.1.9 Legislature expenditure

the primary aim of this section is to explore how actual expenditure differed from planned expenditure and how this may have impacted on service delivery. The secondary aim is to provide the Legislature with an opportunity to report on measures that were adopted to improve the economy and efficiency of spending on each programme.

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Roll- Voted for Total Actual Programmes overs and Virement Variance 2012/13 voted Expenditure adjustments Programme 1. 39,933 - 4,973 44,906 46,327 (1,421) Programme 2. 37,272 - (1,850) 35,422 35,422 - Programme 3. 38,632 - (3,123) 35,509 35,509 - Total 115,837 - - 115,837 108,085 (1,421)

2.1.10 Transfer payments

the Legislature did not transfer the funds on a monthly basis, because the Rules Committee resolved to make the payments on a quarterly basis. There was no monitoring system in place to guard against the spending trends of these funds; reliance was based on the audited financial statements of Parties that were submitted to the Legislature. A commitment to put steps in place in the previous financial year to track and monitor the spending trends of parties with regards to the transfer payments during regular intervals was made.

transfers to be listed and reported on include, amongst others:

transfers to Political Parties.

NAME OF POLITICAL PARTY AMOUNT ESTIMATED TRANSFERRED EXPENDITURE ANC 6,015 6,015 COPE 1,583 1,583 DA 1,266 1,266 ID 633 633 Northern Cape Political Party Fund 11,576 11,576

2.1.11 Conditional grants and earmarked funds

the Legislature did not receive any Conditional Grants for 2012/13.

2.1.12 Capital investment, maintenance and asset management plan

the Legislature budgeted for capital investment each fiscal period, and rotates that amount adjusted for inflation between the three programmes. In essence programme managers have three years to plan capital investment for the coming three years.

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Capital Investment

the legislature allocated an amount of R 3.087 million for capital infrastructure investment; an amount of R 3.011 million was actually spent in the year under review. During the year under review, the Legislature invested in a new fleet of vehicles, and disposed through public auction the old fleet. The Legislature also invested in split unit air conditioner systems, as it was no longer cost effective to maintain the central air conditioning plant.

Asset Management

• The Legislature is reporting the following in terms of asset management; • One official vehicle for the Deputy - Speaker was purchased. • Five new pool vehicles, three sedan type vehicles and two double cab light delivery vehicles where procured in the year under review. • Part of the centralised air-conditioning system has been phased out with the installation of split air conditioners. • The Legislature’s asset register remained up to date during the period under review. • The asset register in been updated on a monthly basis. • Several maintenance projects were undertaken during the period under review. This project related to the painting of several offices in the Legislature. • The security equipment was updated during the period under review; this project will be carried forward. • Detailed documented processes that comply with PPPFA, PFMA, Financial Code and Procurement Code are in place for the tendering of projects

Maintenance

the following should be noted in terms of maintenance; • The actual expenditure of R 1, 469 million was incurred during the year and is mainly attributable to building maintenance which was budgeted for at sR1, 435m.

2.2 Programme performance

the activities of the Legislature are organised in the following three programmes; programme 1: Administration programme 2: Facilities and Benefits for Members and Political Party Support programme 3: Parliamentary Services

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PROGRAMME 1: ADMINISTRATION

Purpose: To provide effective financial, corporate service, security and records management to the entire Legislature as well as the strategic management of the institution.

Strategic objective: All measurable objectives relating to Programme 1 are covered in the service delivery achievements below.

Service delivery objectives and indicators: The service delivery objectives of Programmes 1 are covered in the measurable achievements below.

PROGRAMME 1 SUB PROGRAMME 1.1- OFFICE OF THE SPEAKER Strategic Performance Actual Performance against Target Reason for Objectives Indicator Variance Target Actual Strengthen the Strengthen the 4 Quarterly meetings More than 4 None governance governance and between Speaker meetings took place and oversight oversight structures and Senior Managers. between Speaker structures of the of the Legislature. and Snr. Managers. Legislature. Monitor budget and 4 Quarterly 4 quarterly None expenditure Expenditure Reports expenditure reports presented to the Portfolio Committee.

PROGRAMME 1 SUB PROGRAMME 1.2 - OFFICE OF THE CHAIR OF CHAIRS Strategic Performance Actual Performance against Target Reason for Objectives Indicator Variance Target Actual To develop Work cycle of 4 Quarterly 4 Quarterly None oversight Committees in the programmes for the programmes programme for NCPL year to include at were adopted and Committees of least 80 Committee included at least 100 the Legislature. meetings and 1 committee meetings oversight visit. and 2 oversight visits.

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PROGRAMME 1 SUB PROGRAMME 1.3 - OFFICE OF THE SECRETARY Strategic Performance Actual Performance against Target Reason for Variance Objectives Indicator Target Actual Strengthen the Facilitation Finalization of governance of optimal 4 institutional and oversight legislative policies and structures of the framework regulations. Legislature Facilitation of Policy audit (20). 5 policies were A service provider has been optimal policy reviewed. appointed to review and framework develop other 30 policies To provide Performance 4 quarterly 3 quarterly reports At the time of submission leadership management performance submitted. the 4th quarterly report was and ensure reports management being finalised. accountability completed and reports. in the submitted 14 administration days after end of of the each quarter. Legislature Preparation 1 Annual 1 APP completed. None of Annual Performance Plan Performance Plans for next financial year. Completion and 1 Annual 1 Annual None submission of Performance Performance report Annual Report. Report completed.

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PROGRAMME 1 SUB-PROGRAMME 1.4 – FINANCIAL MANAGEMENT SERVICES Strategic Objective Measure/Indicator Actual Performance against Target Reason for Target Actual Variance Submission of key controls 12 Dashboard 3 Dashboard Capacity To provide leadership (Dashboard) Report within 14 Reports Reports challenges and ensure days of each month end. accountability in the Completion and approval Budget for Vote 2 Submitted and administration of the of the Legislature annual submitted. approved Legislature budget as per the Legislative framework To enhance and Demand Management Plan Demand Achieved strengthen the and quarterly reporting on Management capacity of Members the implementation progress Plan and employees. within 7 days after end of each quarter.

PROGRAMME 1 SUB-PROGRAMME 1.5 SECURITY AND RECORDS MANAGEMENT Performance Performance Indicator Actual Performance against Target Reason for Indicator Annual Target Actual Variance To enhance Security Awareness plan 1 Security Security plan was Submitted late and strengthen approved by March 2013 awareness plan drafted but not yet to the office of the capacity of and quarterly reporting approved. the Accounting Members and on the implementation Officer. Employees progress within 7 days after end of each quarter. Conducting of and 4 quarterly 1 audit conducted. NCPL has no reporting on quarterly reports on control over Security Audits. Security Audit the schedules findings. and availability of identified stakeholders responsible for the audits. Records Management Records 1 approved Records None. File Plan approved by Management management file plan 31 March 2013 and File Plan distributed in July quarterly reporting on the implementation 2012. implementation progress progress report 4 progress reports within 7 days after end of distributed. each quarter. Facilities User Asset Facilities User U-AMP implemented None Management Plan and Asset progress and a report card re; quarterly reporting on the report on implementation has implementation progress implementation. been received from within 7 days after end of PWD. each quarter. 4 progress reports received.

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PROGRAMME 1 SUBPROGRAMME 1.6 CORPORATE SERVICES: Strategic Performance Indicator Actual Performance against Target Reason for Objective Annual Target Actual Variance To enhance HR plan approved by HR Plan Terms of Reference Suspension of and strengthen 31 March 2013 and only approved in Senior Manager the capacity of quarterly reporting on the March 2013 by Acting affected progress. Members and implementation progress Secretary. Lack of staff Employees. within 7 days after end of capacity required each quarter. Managers’ attention on operational matters. Number of capacity Completion of 2nd The 2nd phase of the None building programmes phase Certificate Graduate Certificate presented for Members in Leadership & was completed by Governance. all 17 registered Members. Submission of Workplace Skills Plan for the Workplace Skills None Skills Plans as required by NCPL Plan developed and 30 June 2012. submitted to PSETA on 29 June 2012. Submission of the Employment Approved None Employment Equity Equity Report Employment Equity Report bi-annually by 31 Report submitted January. on-line on 15 January 2013. IT Master Systems Plan IT Master Plan IT Master .Plan None approved by 31 March implemented and 2013 and quarterly included the ff: reporting on the SITA Service Level implementation progress Management, within 7 days after end of LEFATSHE Service each quarter. Level Agreement, Technical IT agreement etc Organisational OD plan. Final Terms of Capacity and Development Plan Reference approved primary focus on approved by 31 March in March 2013. other focus areas. 2013 and quarterly reporting on the implementation progress within 7 days after end of quarter.

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PROGRAMME 2: FACILITIES AND BENEFITS FOR MEMBERS AND POLITICAL PARTY SUPPORT

Purpose: To empower Provincial Office Bearers in the management of Legislature business, to enable Members to their work.

Strategic objective: All measurable objectives relating to Programme 2 are covered in the service delivery achievements below.

Service delivery objectives and indicators: The service delivery objectives of Programme 2 are covered in the measurable achievements below.

PROGRAMME 2 SUB PROGRAMME 2.1 MEMBERS FACILITIES Strategic Performance Indicator Actual Performance against Target Reason for Objectives Variance Annual Target Actual To enable Annual Allocations 4 payments made 4 payments were None Members to paid to political parties for the PPF and made in line with execute their quarterly Constituency relevant legislation Constitutional Allowance, in line as planned. mandate with legislation. Ensure spending is in line Payments in line 100% of budget None with the budget. with policy. spent as planned.

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PROGRAMME 3: PARLIAMENTARY SERVICES

Purpose: To provide the Speakership, the House, Committees and Members with procedural research information, legal aid, NCOP and Hansard support services in the execution of their Constitutional and Legislature duties. This programme also provides for public education and general communication to Members and the Public.

Strategic objective: All measurable objectives relating to Programme 3 are covered in the service delivery achievements below.

Service delivery objectives and indicators: The service delivery objectives of Programme 3 are covered in the measurable achievements below.

PROGRAMME : 3 SUB-PROGRAMME: 3.1 PUBLIC EDUCATION AND COMMUNICATIONS Performance Actual Performance against Target Reason for Indicator Variance Target Actual Encourage Number of Sectoral 3 Sectoral 3 Sectoral Parliaments None public Parliaments held Parliaments. were held. participation in Number of Outreach 60 Outreach 60 outreach workshops None the processes of workshops workshops conducted. the Legislature and its Timeous referral Referral of Petitions referred to the None Committees. of petitions to the petitions within 7 Standing Committee Standing Committee days of receipt. within 7 days of receipt. within the prescribed timeframe.

Develop a procedural 1 manual on the Draft manual Draft has not manual on the petitions Petitions process. developed on the been tabled for processes. Petitions process. adoption. Number of print 4 newsletters 2 newsletters produced Targets not information material 4 leaflets 4 leaflets produced met because produced 1 booklet 0 booklets produced. of budgetary constraints. Number of print and 12 newspaper 24 newspaper ads were audio advertisements ads placed. placed and flighted respectively. 12 radio ads 12 radio ads were None flighted. Improve Adopt a Implement a Objective not realised. Process to appoint Communication Communications Communications service provider is in all processes Strategy Strategy for the with Supply Chain. of the NCPL. Legislature

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PROGRAMME 3: PARLIAMENTARY SERVICES SUB-PROGRAMME 3.2 COMMITTEES & RESEARCH SERVICES Strategic Measure/Indicator Actual Performance against Target Reason for Objective Target Actual Variance Supporting System and cycle of Implement Reviewed cycle None Committees in Legislature reviewed and reviewed cycle and was implemented. promoting the updated. system. 5 meetings took highest standard place to this effect. of governance of government departments and agencies.

Sector Oversight Model SOM Implemented. SOM was Resourcing and implemented and customized for capacitating of reviewed accordingly. the NCPL and 41 pilot committees meetings took remains a place to this effect. challenge for the NCPL due to budgetary constraints, therefore impossible to implement SOM in totality. To provide Research policy approved. Research policy Awaiting policy Awaiting knowledge and approved processes to MANCOM information take place at approval management management level. services Comprehensive Library Comprehensive Awaiting policy Awaiting Policy approved Library Policy processes to MANCOM approved take place at approval management level. Draft and monitor the Annual research Research project None implementation of the project plan plan implemented. annual research project implemented. plan Compile and implement Strategy Strategy None the Library marketing implemented implemented. strategy as well as the collection development strategy

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PROGRAMME 3: PARLIAMENTARY SERVICES SUB-PROGRAMME 3.2 COMMITTEES & RESEARCH SERVICES Strategic Measure/Indicator Actual Performance against Target Reason for Objective Target Actual Variance Number of knowledge 2 meetings 1 meetings Apathy for management steering schedule but KM processes committee meetings. meeting not exists within the attended by institution. representative. Develop a Knowledge Knowledge Target not Process halted Management Strategy for management achieved. because similar the NCPL strategy process was taking place at Sector level.

BILLS PASSED

• Northern Cape Appropriation Bill • Northern Cape Adjustment Appropriation

PUBLIC HEARINGS

A total of ten (10) Public Hearings were held for the period under review. All regions of the province were targeted.

HOUSE SITTINGS

A total of thirty two (32) House Sittings were held in the year under review.

OTHER COMMITTEE ACTIVITIES

As can be derived from the table below Committees dealt with various businesses which include Budget Vote presentations, Quarterly Reports, Municipal Oversight and Annual Reports of government departments.

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PORTFOLIO AND STANDING COMMITTEE STATISTICS (01 April 2012 – 31 March 2013)

Standing Committees Number held Chairpersons 09 Constitutional Affairs, Petitions & Public Participation 12

Gender & Women’s Caucus 05 Sub - Committee on Internal Arrangements 02 Programme 26 SCOPA 56 CPA 03 Rules & NCOP Affairs 12 Sub - Committee on the Provincial Legislature Budget 04 Sub - Committee on Powers and Privileges & Review of Rules 04 TOTAL 243

Portfolio Committees Number held Agriculture 06 Education 10 Environmental Affairs & Conservation 08 Finance, Economic Affairs & Tourism (OTP) 05 Finance, Economic Affairs L( egislature) 05 Finance, Economic Affairs E( conomic Affairs) 07 Finance, Economic Affairs (Treasury) 21 Health 10 Corporate Government Affairs, Human Settlement & Traditional Affairs 11 Transport, Safety & Liaison 09 Social Development 06 Sport, Arts & Culture 05 Roads & Public Works 06 TOTAL 109

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PROGRAMME 1: SUB-PROGRAMME 3.3 – LEGAL SERVICES Strategic Objective Performance Indicator Actual Performance against Reason for Target Variance Target Actual Make law-making an Number of simplified 4 summaries 4 summaries None interactive process and summaries of provincial completed further promote its Legislation impact

Supporting the Prepare a manual on 1 manual 1 manual None Committees of legislation administered completed the Legislature in by Departments promoting the highest standard of oversight over municipalities, government departments and its agencies.

PROGRAMME 3 SUB-PROGRAMME 3.4 – NCOP AND PROCEEDINGS Strategic objectives Measure/ Indicator Actual Performance against target Reason for variance Target Actual Performance Make law-making Number of workshops 10 workshops on 7 workshops The programme an interactive and conducted on legislation were held. during the fourth further promote its legislation passed. quarter was extremely impact busy and it impacted on the programme of the NCOP section Number of articles 4 articles on 2 articles The article was contributed in the legislation produced cancelled due to newsletter other commitments. Number of radio 4 radio 3 radio The one in Upington interviews. interviews. interviews took was cancelled due to place. other commitments.

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PROGRAMME: 3 SUB-PROGRAMME: 3.5 – HANSARD SERVICES Strategic Objective Performance Actual Performance against Target Reason for Indicator Variance Annual Target Actual Encourage public Production of Translation of 13 leaflets were More requests for participation in the multilingual 4 leaflets and 4 translated translations were processes of the documents. legislative summaries forwarded to the Legislature and its 8 legislative unit. Committees. summaries were translated. To provide Number of 28 transcripts of 30 transcripts of Transcripts of other knowledge and transcripts. House Sittings House Sittings meetings had information produced. to be prioritised management (disciplinary services 30 transcripts of Zero transcripts hearings of 3 senior public hearings of public hearings personnel of the produced. NCPL). This work contributed to an 110 transcripts 44 transcripts increased workload of Standing and of Standing and for the unit. Portfolio Committees Portfolio Committee meetings produced.

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PART 3: ANNUAL FINANCIAL STATEMENTS

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3. ANNUAL FINANCIAL STATEMENTS

Report of the Audit Committee

I am pleased to present the report of the Audit Committee (AC) for the financial year ended 31 March 2013.

AC Members and Attendance:

The AC consists of the members listed hereunder:

Name of Member Number of Meetings Attended Adv. J. Lubbe SC (Chairperson) 6 Adv. N. van Heerden 6 Mr J. Besnaar 5

The AC is required to meet four times per annum as per its approved terms of reference. The AC was appointed on the 22 February 2012.The AC met six times during the financial year that ended 31 March 2013

AC Responsibility The AC has adopted appropriate formal terms of reference as its audit committee charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein. The AC has complied with its responsibilities arising from paragraphs 32(1) – (8) of the Code for the Financial Administration of the Northern Cape Provincial Legislature. The Committee’s execution of its functions and responsibilities manifested itself as follows;

a) The Internal Audit Function was outsourced for the reported period. The internal auditor reported on all assignments to the AC. b) The AC reviewed the audit strategy of the Auditor-General in respect to the audit on the 2012/13 financial statements. c) The AC reviewed the annual performance plan of the Northern Cape Provincial Legislature. d) The AC received reports from the internal auditor relating to the following areas in the Northern Cape Provincial Legislature:

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The effectiveness of internal control

Internal control has improved but it is still not at an acceptable level because of the lack of staff. The process to appoint staff is work in progress but unfortunately, like in previous years, the budget is insufficient to fill even critical positions. Available staff are performing above expected levels to ensure internal controls are kept at the best possible levels in the circumstances.

Evaluation of Financial Statements

The AC has evaluated the annual financial statements and discussed same with the Auditor-General. A forensic report prepared by the Auditor-General was also received by the AC and discussed at length with the Auditor-General.

Internal Audit

The Internal Audit function has again been outsourced and the function is now performed by ANF after the services of the previous appointee was terminated.

Auditor-General

The AC met with the Auditor-General on the Annual Financial Statements and considered the draft audit report to be included in the annual report. The AC is satisfied that its commentary had sufficiently been considered by the Auditor-General.

Chairperson of the Audit Committee Date 23 April 2013.

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Report by the Accounting Officer to the Executive Authority and the Northern Cape Provincial Legislature

1. General review of the state of financial affairs

The Northern Cape Provincial Legislature’s strategic focus remains unchanged during the 2012/13 financial period. The strategic focus area centres largely around the deploy of resources to carry out the Constitutional Mandate of the Northern Cape Provincial Legislature, which relates to law making, oversight of the Executive arm of Government and public participation. During the year under review, a revised Annual Performance Plan (APP) was operationalized, which seeks to improve the link between our daily operations and the strategic goals of the NCPL. It furthermore seeks to facilitate improved monitoring of the NCPL’s performance information.

Policy development, at institutional level, has also received priority during the year under review. While policy development process is laborious, it is expected that this process reach finality in the 2013/14 fiscal period.

2. Service rendered by the department

2.1 List of services rendered:

During the financial year under review Members of the Provincial Legislature (MPL’s) have rendered a number of services as mandated by the Constitution of the Republic of South Africa. Such includes, law making, oversight and facilitation of public involvement or participation in the processes of the NCPL and its committees.

Also, MPLs have been able to advise their constituents about the different services that are offered by government departments and the constituents also presented the MPL’s with their needs in terms of government services. They have also been able to resolve community problems on a wide variety of governmental matters.

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During the year under review, the NCPL has passed provincial legislation and facilitated public involvement in both the processes of the NCPL, its committees and those of the National Council of Provinces. The revised Standing Rules for the Legislature has been adopted on 26 February 2013 and it is envisaged that it will go a long way in regulating the Legislature’s business with due regard to representative and participatory democracy, accountability and transparency.

The Northern Cape Legislature Service Act 2 of 2011 commenced in August 2011 and is now effectively guiding the NCPL`s operations in respect of the powers, functions and responsibilities of the Speaker and Secretary, as well as conditions of service of employees of the NCPL. Due to continuous research and good record-keeping, we are in a position to summarise and concise section 76 legislation received from the NCOP in order to ensure optimal MPL and public understanding and input into such legislation. These summaries also bridge the language barrier at public hearings in that they are translated into the predominant languages of the Province.

The Legislature held 23 House Sittings during 2012/2013 and was able to comply with the provisions of the PFMA insofar as it relates to the adoption of the provincial budget and conduct oversight over the executive by the interrogation of Annual Reports. In the last financial year the NCPL was able to scrutinise Annual Reports of 25 out of the 32 Municipalities. The purpose of scrutinizing these reports is to ensure that the tax payer receives value for money and that service delivery to the people is improved.

2.2 Tariff policy

The Legislature does not have a tariff policy. Recovery of Government Gazette publication and printing takes place on a cost basis.

2.3 Free Services

The NCPL library provides free internet access and other information to members of the public.

2.4 Inventories

The total inventories on hand at year-end will be included in the Annexure on Inventory.

3. Public and private partnerships

None.

4. Capacity constraints

Lack of internal audit and risk management capacity resulted in the function being outsourced. Labour relations and legal work was also outsourced in the year under review due to the number of cases the Legislature had to deal with. Furthermore, the NCPL does not have permanent personnel responsible for performance monitoring and reporting.

Numerous suspensions at senior management level as well as in the Financial Services Unit have placed strain on the current human resources in these areas. The impact of the suspensions results in longer lead times for the services in the Financial Service Unit.

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5. Utilisation of donor funds

On November 2011 an amount of R3 837 750 was allocated to the Northern Cape Provincial Legislature in terms of the revenue sharing formula, as per the Policy on Revenue Sharing Framework, by the Legislative Sector Support (LSS). As a consequence hereof the NCPL Legislative Sector Action plan was signed by the Speaker and Accounting Officer on 22/11/2011, approving the spending plan in relation to the allocation.

In terms hereof funds were allocated as follows:

Result Area Amount Percentage Public Participation 1,343,213 35% Law making & Oversight 959,437 25% Effective and efficient institutions 1,535,100 40% 3,837,750 100%

In terms of the approved action plan, funds were supposed to be spend by 31 March 2012. LSS had subsequently approved that spending period be extended to 31 March 2013.

Expenditure report as at 31 March 2013

As at 31 March 2013, an expenditure report was submitted to the LSS, in summary the following funds were expended or committed:

Result Area Allocation Expenditure / Percentage Spent Commitment Result Area 1 1,343,213 668,683 49.8% Result Area 2 959,437 183,805 19.2% Result Area 3 1,535,100 591,267 61.5% 3,837,750 1,443.760 46.8%

6. Organisations to whom transfer payments have been made

The NCPL has made the following transfers to the organisations as listed below:

Organisation R’000 ANC 6 015 DA 1 266 ID 633 COPE 1 583 NC Political Party Fund 11 576 TOTAL 21 073

These transfers were in accordance with the purpose of the NCPL and were budgeted for. See Annexure 1A to the Annual Financial Statements.

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7. Corporate governance arrangements

The Secretary to the NCPL, is the Accounting Officer and reports to theS peaker. The Speaker in turn, derives his mandate from the Standing Rules of the NCPL and from the (Standing Committee) Rules Committee from time to time. The Rules Committee also has a number of Sub Committees responsible for the budget and internal arrangements amongst other things.

Although the NCPL is not entirely bound by the PFMA, the NCPL follows its provisions and also complies with the Code for Financial Administration of the NCPL which is by and large informed by the afore-mentioned Act. The NCPL must work towards a clean audit especially in respect of the effectiveness of its administrative leadership as far as it relates to the development and monitoring of action plans to address internal control deficiencies. Unlike in the previous year the NCPL has improved with regards to the management and reliability of performance information. Thus the Speaker and the Accounting Officer continued to have quarterly meetings with the Office of the Auditor General to constantly review progress made in rectifying previous audit outcomes. Thus far we have been able to make progress. The last quarter dashboard report has shown improvement in many areas in this regard.

8. New/proposed activities

The focus of the legislative sector has now shifted from lawmaking to oversight and public participation. At the beginning of this year the legislative sector adopted and launched the Sector Oversight Model (SOM). All Legislatures, including Parliament, were expected to have started implementing the requirements of the SOM as of April 2013. The SOM provides the legislative sector with an opportunity to reflect on the role ofL egislatures, when they conduct oversight. Legislatures are required to adapt or customize the SOM in terms of their requirements and needs. The NCPL has agreed to pilot three (3) Portfolio Committees in respect of three (3) government department; i.e. Education, Health and Agriculture.

These Committees will conduct intensive and real monitoring on how the relevant departments are spending and utilising budgets allocated to them. A department will be monitored on a quarterly basis on what is contained in its Annual Performance Plan (APP). The support staff will be required to scrutinize and analyze reports and responses from a department. The NCPL Committees will now be in a better position to deal with the priorities, namely the inputs, outputs and outcomes of a department. Committees are required to conduct oversight visits twice in a year, soon after the budget presentations and just before the Annual Report presentations.

9. Asset management

The asset management is under the control of the Supply Chain Management. The recording and control of assets and disposal thereof have improved significantly and will be kept up to date by the effective use of the “Logis” System.

10. Inventories

All inventory opening and closing balances, together with movements for the year will be reflected in the Annexure on Inventory.

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11. Information on predetermined objectives

The report on performance and performance assessments is based on an approved performance management system which is evaluated by means of quarterly reports of senior managers, which are in line with the strategic plans of the NCPL.

A performance information manual has been approved in the year under review.

12. SCOPA resolutions

Include a table on the SCOPA resolutions. The table should conform to the following format:

SCOPA resolutions Subject Findings on progress The Northern Cape Provincial Legislature must Clean Audit Improvement noted on the AG identify the root causes relating the findings dashboard report. of the Auditor-General, implement key drivers for clean audit outcome and observe the commitments made by Provincial Government to drive Operation Clean Audit. The Accounting Officer must identify and Fraudulent Introduced a monthly reconciliation address weaknesses in the internal control Activities between supporting documents and system to detect and prevent reoccurrence of transactions recorded on system as well fraud. as implemented recommendations of the draft management letter in terms of forensic investigations.

13. Prior modifications to audit reports

Qualification Matter Financial year in which it Progress made in clearing / resolving first arose the matter The accounting records included some 2011/12 Suspended officials initially implicated goods and services and subsistence in the suspected fraud. and travel transactions that were not supported by sufficient appropriate Commissioned a forensic audit into audit evidence. These amounts were matter. included in goods and services in the statement of financial performance in Reported matter to South African the financial statements, resulting in Police Service, currently investigating goods and services being misstated criminality of matter. by an undetermined amount. The circumstances resulting in the limitation Introduced a month reconciliation could be attributed to possible between supporting documents and fraudulent activities that took place and transactions recorded on system. which are currently under investigation. Implemented recommendations of the draft management letter in terms of forensic investigations.

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Qualification Matter Financial year in which it Progress made in clearing / resolving first arose the matter The accounting records included some 2011/12 Root cause relate to historic debt, receivable transactions that were not for which records are not traceable, supported by sufficient appropriate management considers application audit evidence of accounting impairment provision a solution to this matter.

A detail assessment report of all individual debt transactions were done from Dec 2012 – Mar 2013, in preparation for 2012/13 financial statements.

The amounts will remain on the books, until sufficient savings/ accumulated funds are achieved for eventual write off these amounts. Lack of adequate systems to maintain 2011/12 The Human Resources section has records of leave balances used to undergone recruitment changes calculate the leave entitlement liability. in personnel which affected the Lack of leave supporting documentation management of personnel records, for leave transactions. Incorrect where certain leave records could not valuation of leave liability at year –end. be traced. A Leave Administration Database has been developed by the IT section and is in the testing phase to assist HR with capturing and correct balancing of leave records. An Acting appointment in the position of HR Administrator has assisted with improving the accuracy of leave records. A permanent appointment was made later in the financial year.

Matters of Compliance Financial year in which it Progress made in clearing / resolving first arose the matter Incurrence of unauthorised expenditure 2011/12 Economic and efficient resource usage is enforced (travel & subsistence esp.) Material misstatements of expenditure 2011/12 Financial statements were not reviewed and disclosure items identified by the by CFO, due to suspension. AFS where auditors in the submitted financial prepared by Acting CFO. If situation statements were subsequently corrected remains for the 2012/13, treasury and the supporting records were officials will be requested to perform provided subsequently review function.

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Matters of Compliance Financial year in which it Progress made in clearing / resolving first arose the matter The audit committee did not function 2011/12 Audit committee has been in existence throughout the year. This resulted in the and operating since 01 April 2012 committee not being able to fulfil all its responsibilities as set out in section 32(8) of the Code for the Financial Administration of the Northern Cape Provincial Legislature.

The internal audit function was not 2011/12 Audit committee has been in existence under the control and direction of the and operating since 01 April 2012 audit committee as required by section 31(1) of the Code for the Financial Administration of the Northern Cape Provincial Legislature, as the audit committee was appointed towards the end of the financial year, on 22 February 2012. Payments due to creditors were not 2011/12 Introduction of the BAS payment always settled within 30 days from register review, as recommended by receipt of an invoice Provincial Treasury. Evidence could not be obtained that 2011/12 All procurement meetings are recorded procurement processes was followed and minutes taken, subsequent to as per the procurement code, which is finding. Items which are procured referred to by section 23(1) of the Code through the procurement procedures for the Financial Administration of the of the NCPL are not recognised as Northern Cape Provincial Legislature. expenses. The date of receipt of the audited 2011/12 Dated cover letters from political annual financial statements, for political parties are requested when AFS are parties could not be determined and submitted. Registered in the Office of it could therefore not be established the Chief Financial Officer. that transfers in relation to constituency allowances had been made before or after receipt of the audited annual financial statements. A consultant was appointed who prepared the AFS for 2009/10, 2010,11 Funds were transferred to the Political and 2011/12. Audit of these AFS Party Fund in the current year without outstanding receipt of audited financial statements

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Matters of Compliance Financial year in which it Progress made in clearing / resolving first arose the matter The accounting officer did not take 2011/12 Root cause relate to historic debt, effective and appropriate steps to for which records are not traceable, timeously collect all money due to the management considers application institution as per the requirements of of accounting impairment provision a section 6(h) of the Code for the Financial solution to this matter. Administration of the Northern Cape A detail assessment report of all Provincial Legislature. An amount of individual debt transactions will be R1 683 000 has been outstanding for a done from Dec 2012 – Mar 2013, in period longer than three years. preparation for 2012/13 financial statements. The amounts will remain on the books, until sufficient savings/ accumulated funds are achieved for eventual write off these amounts.

14. Other

During the 2011/12 financial year, three senior officials, the Secretary to the NCPL, the Chief Financial Officer and the Senior Manager: Corporate Services were placed on suspension pending the outcome of a disciplinary process. This process was only concluded by 27 March 2013.

Three officials, two in the Financial Services Unit and one in the Political Party Support Unit, have suspended on allegations of fraudulently transferring funds from the NCPL’s account to other accounts. This matter was investigated by the Auditor Generals forensic team and disciplinary processes underway. Internal controls have put in place to prevent reoccurrence.

15. Approval

The Annual Financial Statements set out on pages 50 to 105 have been approved by the Accounting Officer.

______PB Moopelwa Acting Secretary to the Legislature

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REPORT OF THE AUDITOR-GENERAL TO THE NORTHERN CAPE PROVINCIAL LEGISLATURE ON VOTE NO. 2: PROVINCIAL LEGISLATURE

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the Provincial Legislature set out on pages 50 to 97, which comprise the appropriation statement, the statement of financial position as at 31 March 2013, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation of these financial statements in accordance with the Departmental financial reporting framework prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) , Code for Financial Administration of the Northern Cape Provincial Legislature, Financial Management of Parliament Act ,2009 (Act No. 10 of 2009) and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified audit opinion.

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Basis for qualified opinion

Employee benefits

6. Sufficient appropriate audit evidence could not be obtained to determine the leave entitlement liability of the prior year as no adequate leave records were in place and no further work was performed by the Legislature to address the prior year qualification. I could not perform alternative procedures to obtain assurance regarding this balance. Consequently, I was unable to determine whether any adjustment to the prior year employee benefits stated at R6 454 000 in note 32 to the financial statements was necessary.

Receivables

7. I was unable to obtain sufficient appropriate audit evidence regarding receivables for the current and prior year due to the status of the accounting records. I was unable to confirm the receivables by alternative means. Consequently, I was unable to determine whether any adjustment to receivables stated as R2 442 000 (2012: R1 404 031) in the financial statements was necessary. In addition, I was unable to assess the receivables for impairment losses.

Expenditure – goods and services

8. I was unable to obtain sufficient appropriate audit evidence to confirm the goods and services for the prior year due to the status of the accounting records. I was unable to confirm the goods and services by alternative means. Consequently, I was unable to determine whether any adjustments to goods and services stated at R32 482 000 in the note 6 to the financial statement was necessary.

9. The legislature did not classify all items of goods and services in accordance with the Departmental Financial Reporting Framework. Subsistence and travelling and audit fees were incorrectly classified as business and advisory, and contractors were incorrectly classified as cleaning services. Consequently, audit fees and subsistence and travelling expenses are understated and consultants, business and advisory are overstated by a projected amount of R619 162 in the note 6 of the financial statements.

Irregular expenditure

10. I was unable to obtain sufficient appropriate audit evidence to determine the full extent of irregular expenditure incurred due to the status of the accounting records. I was unable to confirm all the irregular expenditure incurred by alternative means. Consequently, I was unable to determine whether any adjustments were necessary to irregular expenditure stated as R4 156 000 in note 35 to the financial statement

Movable tangible capital assets

11. I was unable to obtain sufficient appropriate audit evidence to confirm the movable tangible capital assets due to the status of the accounting records. I was unable to physically verify the assets in the assets register by alternative means. Consequently, I was unable to determine whether any adjustments were necessary to movable tangible capital assets stated as R12 635 000 in note 32 to the financial statement.

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Qualified opinion

12. In my opinion, except for the possible effects of the matters described in the basis for qualified opinion paragraphs, the financial statements present fairly, in all material respects, the financial position of the Provincial Legislature as at 31 March 2013 and its financial performance and cash flows for the year then ended, in accordance with the Departmental financial reporting framework prescribed by the National Treasury and the requirements of the PFMA, Code for Financial Administration of the Northern Cape and Financial Management of Parliament Act.

EMPHASIS OF MATTER PARAGRAPHS

13. The following emphasis of matter paragraphs will be included in our auditor’s report to draw the users’ attention to matters presented or disclosed in the financial statements:

Contingent liability

14. As disclosed in note 21 to the financial statements, the legislature is a defendant in various law suits amounting to R806 000.

Additional matters

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

Financial reporting framework

16. The financial reporting framework prescribed by the National Treasury and applied by the department is a compliance framework. The wording of my opinion on a compliance framework should reflect that the financial statements have been prepared in accordance with this framework and not that they “present fairly”. Section 20(2)(a) of the PAA, however, requires me to express an opinion on the fair presentation of the financial statements. The wording of my opinion therefore reflects this requirement.

Material inconsistencies in other information included in the annual report

17. I have not obtained the other information included in the annual report. Consequently, I have not been able to identify whether the other information to be included in the annual report contains any material inconsistencies to the information in the financial statements.

Unaudited supplementary schedules

18. The supplementary information set out on pages 98 to 105 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

19. In accordance with the PAA and the general notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

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Predetermined objectives

20. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 21 to 31 of the annual report.

21. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information (FMPPI).

22. The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).

23. The material findings are as follows:

Usefulness of information

24. The National Treasury Guide for the preparation of the annual report requires that explanations for variances between the planned and reported actual targets should be provided in all instances and should also be supported by adequate and reliable corroborating evidence. Adequate and reliable corroborating evidence could not be provided for 67% of major variances as disclosed in the annual performance report. The institution’s records did not permit the application of alternative audit procedures. 25. Treasury Regulation 5.2.4 requires that the annual performance plan should form the basis for the annual report, therefore requiring the consistency of objectives, indicators and targets between planning and reporting documents. A total of 27% of the reported indicators and 66% of the reported targets are not consistent with the indicators and indicators as per the approved annual performance plan. This is due to the lack of monitoring controls and officials with relevant skills in employ of the organisation, to align the annual performance plan and annual performance report.

26. Treasury Regulation 5.1.1 requires that the annual performance plan must be approved by the executive authority. Therefore, if the annual performance plan is changed in-year due to significant policy or mandate changes, the updated plan has to be approved by the executive authority.

27. None of the changes to the indicators and targets reported in the annual performance report were consistent with the indicators and targets as per the approved annual performance plan. This was due to significant policy or mandate changes that were made but not approved by the executive authority.

28. The Framework for managing programme performance information requires that indicators should have clear unambiguous data definitions so that data is collected consistently and is easy to understand and use.

29. A total of 30% of the indicators relevant to programmes were not well defined in that clear, unambiguous data definitions were not available to allow for data to be collected consistently. This was due to the fact that management was aware of the requirements of the Framework for managing

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programme performance information but did not receive the necessary training to enable application of the principles.

30. The National Treasury Framework for managing programme performance information (FMPPI) requires that it must be possible to validate the processes and systems that produce the indicator a total of 30% of the indicators relevant to programmes were not verifiable in that valid processes and systems that produce the information on actual performance did not exist. This was due to the fact that management was aware of the requirements of the Framework for managing programme performance information but did not receive the necessary training to enable application of the principles.

Reliability of information

31. The Framework for managing programme performance information requires that institutions should 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.

32. The reported performance information as a whole of parliamentary services is materially misstated due to the cumulative effect of numerous individually immaterial uncorrected misstatements in the targets relevant to the selected programme. This was due to the lack of monitoring of the completeness of source documentation in support of actual achievements.

Additional matter

33. I draw attention to the following matters below. These matters do not have an impact on the predetermined objectives audit findings reported above.

Achievement of planned targets

34. Of the total number of 43 targets planned for the year 17 were not achieved during the year under review. This represents 40% of total planned targets that were not achieved during the year under review.

35. This was mainly due to the fact that indicators and targets were not suitably developed during the strategic planning process.

Compliance with laws and regulations

36. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the general notice issued in terms of the PAA are as follows:

Budget

37. Section 6(1)(l) of the Code for the Financial Administration of the Northern Cape Provincial Legislature requires that the accounting officer prevent unauthorised expenditure. Unauthorised expenditure was not prevented, as the expenditure of the Northern Cape Provincial Legislature exceeded the approved budget.

47 Northern Cape Provincial Legislature, Vote 2

Annual financial statements, performance and annual report

38. The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 6(1)(j) of the Code for the Financial Administration of the Northern Cape Provincial Legislature.

Procurement and contract management

39. In some instances, where three written quotations were required, evidence could not be obtained that procurement processes was followed as per the procurement code, which is referred to by section 23(1) of the Code for the Financial Administration of the Northern Cape Provincial Legislature.

40. Goods and services were procured from suppliers who did not submit an original tax clearance certificate from SARS certifying the tax affairs of that person to be in order or that suitable arrangements had been made with SARS as required section14 of Preferential Procurement Regulations, 2011

Expenditure management

41. Payments due to creditors were not always settled within 30 days from receipt of an invoice as per the requirements of section 17(1)(4)(c) of the Code for the Financial Administration of the Northern Cape Provincial Legislature.

42. The accounting officer did not take effective steps to prevent irregular, and fruitless and wasteful expenditure as required by section 21(1) of the Code for the Financial Administration of the Northern Cape Provincial Legislature.

Internal control

43. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the findings on the annual performance report and the findings on compliance with laws and regulations included in this report.

Leadership

44. The leadership of the legislature did not exercise its oversight responsibility to ensure that proper internal control procedures are developed and implemented that will enable the legislature to produce accurate and complete annual financial statements.

45. The leadership does not exercise its oversight responsibility over performance reporting and compliance with laws and regulations and internal control.

46. The leadership did not implement the information technology (IT) action plans outlined in the 2011-12 communication of findings report to address the internal control deficiencies.

48 Northern Cape Provincial Legislature, Vote 2

Financial and performance management

47. The legislature did not implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information is accessible and available to support financial and performance reporting.

48. The reviewing and monitoring of compliance with applicable laws and regulations are not adequately performed by the designated officials of the legislature.

49. Management did not take the necessary steps to ensure that the prior year misstatements are addressed and corrected in time.

Governance

50. Management failed to develop a risk management methodology during the current financial year.

51. The legislature did not have a fraud prevention plan.

52. No compliance and performance audit was performed by the internal audit unit, as the internal auditors focused mainly on the financial management matters.

Agreed-upon procedures engagements

53. With regard to donor funding (Northern Cape Provincial Legislature Legislative Sector Support funding), we performed agreed-upon procedures to determine whether or not the donor funds were used in accordance with the intended purpose.

Kimberley 31 July 2013

49 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

- - 17 320 248 ture 1,732 R’000 20,411 35,740 36,971 18,436 12,646 Actual 126,521 108,085 Expendi

- - - 2011/12 315 248 tion 1,732 Final R’000 20,411 35,740 36,576 12,646 18,564 107,668 126,232 Appropria

- % 99.9% 103,3% 106,6% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% as % of 101.0% 101.2% priation final appro final Expenditure ------19 (22) ance Vari R’000 (1,399) (1,421) (1,402)

- - 417 353 233 ture 2,361 R’000 43,613 19,567 13,780 21,409 35,092 Actual 117,258 136,825 Expendi

- - 417 331 233 tion Final Final 2,361 R’000 42,214 13,780 19,586 21,409 35,092 115,837 135,423 Appropria ------126 233 Appropriation per programme per Appropriation (435) Vire 4,847 ment R’000 (2,083) (2,688) 2012/13 ------336 (336) Shift R’000 ing of Funds - - - 331 852 2,235 R’000 16,199 37,780 37,367 21,073 19,586 115,837 135,423 propriation Adjusted Ap ayment for capital ayment for capital ayment for financial ayment for capital ransfers and subsidies ransfers and subsidies Appropriation Current payment P assets Parliamentary Services Current payment P assets T P assets Facilities for Members for Facilities Parties Political and Current payment T P assets Current payment

Administration TOTAL Statutory Subtotal

2. APPROPRIATION STATEMENT

50 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

2012/13 2011/12 Final Actual Final Actual Appropria- Expendi- Appropria- Expendi- tion ture tion ture TOTAL (brought forward) Reconciliation with statement of financial performance

ADD

Departmental receipts 3,271 3,233

Aid assistance - 3,837

Actual amounts per statement of financial 138,679 133,302 performance (total revenue)

ADD Aid assistance 486 519

Actual amounts per statement of financial 137,311 127,040 performance (total expenditure)

51 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

- 17 39 374 320 ture 1,964 R’000 20,031 52,858 32,482 Actual 108,085 expendi

- - 39 2011/12 315 374 tion Final 1,964 R’000 20,031 32,087 52,858 107,668 Appropria

- - % tion 104,1% 106.6% 100.0% 100.0% 100.0% 100.0% 101.2% appropria as % of final Expenditure ------(22) ance Vari R’000 (1,399) (1,421)

- - - 353 336 ture 3,011 R’000 21,073 35,493 56,992 Actual 117,258 Expendi

- - - 331 336 tion 3,011 Final R’000 21,073 56,992 34,094 115,837 Appropria ------(76) 1,470 Vire ment R’000 (1,394) 2012/13 Appropriation per economic classification economic per Appropriation ------336 (336) Shift R’000 ing of Funds

- - - - 331 tion 3,087 R’000 21,073 32,960 58,386 115,837 Adjusted Appropria eritage assets ouseholds ouseholds oods and services ifts donations and nterest on and land rent Total H Current payments employees of Compensation G assets capital for Payments Machinery and equipment G H I subsidies and Transfers Departmental and agencies accounts Non-profit institutions

52 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

- ture R’000 18,436 Actual 18,436 expendi

- 2011/12 tion Final R’000 18,564 18,564 Appropria

- % tion 99.9% 99.9% appropria as % of final Expenditure - 19 19 ance Vari R’000

- ture R’000 19,567 Actual 19,567 Expendi

- tion Final R’000 19,586 19,586 Appropria - - - Statutory Appropriation Vire ment R’000 2012/13 - - - Shift R’000 ing of Funds

- tion R’000 19,586 19,586 Adjusted Appropria Direct changes against the the Direct against changes Revenue National/Provincial Fund Member of executive committee / parliamentary officers Total

53 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

- ture R’000 18,436 Actual 18,436 expendi

- 2011/12 tion Final R’000 18,564 18,564 Appropria

- % tion 99.9% 99.9% appropria as % of final Expenditure - 19 19 ance Vari R’000

- ture R’000 19,567 Actual 19,567 Expendi

- tion Final R’000 19,586 19,586 Appropria - - - Vire ment R’000 2012/13 - - - Statutory Appropriation per economic classification economic per Statutory Appropriation Shift R’000 ing of Funds

- tion R’000 19,586 19,586 Adjusted Appropria Program 1 Per Economic classification Current payments Compensation of employees Total

54 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

- - 7 8 17 19 313 324 4,167 8,130 iture 1,381 9,683 2,286 R’000 12,705 Actual 39,040 expend

- - - 2 8 19 313 324 2011/12 4,167 8,130 1,381 Final 9,288 2,286 ation R’000 12,705 38,623 Appropri

- % tion 106.6% 100.0% 100.0% 100.0% 104.0% 100.0% 100.0% 100.0% 100.0% 100.0% 106.8% 103.2% appropria as % of final Expenditure ------(22) (454) (945) R’000 (1,421) Variance

- - - 6 6 192 353 203 ture 1,954 4,818 9,227 2,886 R’000 11,795 14,887 Actual 46,327 Expendi

- - - 6 6 192 331 203 tion 1,954 4,818 Final 9,227 2,886 R’000 11,341 13,942 44,906 Appropria ------126 3,123 1,724 Vire ment 4,973 R’000 2012/13 ------6 6 73 66 690 (151) (754) 1,431 Shift R’000 ing of (1,367) Funds

------

130 331 tion 9,617 2,105 3,387 3,640 R’000 10,129 10,594 39,933 Adjusted Appropria ayment for capital assets ayment for capital assets ayment for capital assets ayment for financial assets ayment for capital assets ayment for capital assets ransfers and subsidies ransfers and subsidies P T SECURITY & RECORDS MANAGEMENT Current payment P P P CORPORATE SERVICES Current payment FINANCIAL MANAGEMENT Current payment P Current payment OFFICE OF THE SECRETARY P T OFFICE OF THE SPEAKER Current payment Total

1.5

1.4 1.3

1.2

Detail per sub-programme: per Detail Administration 1.1

55 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

- 17 320 ture 1,749 13,116 R’000 23,838 Actual 39,040 expendi

- - 2011/12 315 tion 1,749 Final R’000 12,721 23,838 38,623 Appropria

- % tion 106.6% 100.0% 100.0% 108.3% 103,2% appropria as % of final Expenditure - - - - (22) ance Vari R’000 (1,399) (1,421)

- - 353 ture 2,361 R’000 18,266 25,347 Actual 46,327 Expendi

- - 331 tion Final 2,361 R’000 16,867 25,347 44,906 Appropria - - - 126 1,215 Vire 3,632 ment 4,973 R’000 2012/13 ------R’000 Shifting of Funds of

- - 331 tion 2,235 R’000 24,132 13,235 39,933 Adjusted Appropria ouseholds ouseholds oods and services nterest on and land rent Programme 1 Per classificationEconomic assets capital for Payment Machinery and equipment Current payments employees of Compensation G I to: subsidies and Transfers H Total

56 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

- 6 248 ture 7,810 4,836 R’000 20,405 Actual 33,305 expendi

- 6 2011/12 248 tion 7,810 Final 4,836 R’000 20,405 33,305 Appropria

- % tion 100.0% 100.0% 100.0% 100.0% 100.0% appropria as % of final Expenditure ------ance Vari R’000

- - 233 ture 9,196 4,584 R’000 21,409 Actual 35,422 Expendi

- - 233 tion 9,196 Final 4,584 R’000 21,409 35,422 Appropria - - - 233 (622) Vire ment R’000 (1,461) (1,850) 2012/13 - - - - 336 (336) R’000 Shifting of Funds of

- - - tion 5,206 R’000 21,073 10,993 37,272 Adjusted Appropria ayment for capital ransfers and subsidies ransfers and subsidies T P assets T POLITICAL PARTIES SUPPORT Current payment MEMBERS FACILITIES Current payment

Total

2.2 Detail per sub- programme: embers M for Facilities Parties Political and 2.1

57 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

- 39 374 ture 7,427 R’000 Actual 33,305 expendi 215 5,219 20,031

- 39 2011/12 tion Final R’000 33,305 7,427 215 374 5,219 20,031 Appropria

- % tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria as % of final Expenditure ------ance Vari R’000

- 336 233 ture 7,941 5,839 R’000 21,073 Actual 35,422 Expendi

- 336 233 tion 7,941 Final 5,839 R’000 21,073 35,422 Appropria - - 233 (538) R’000 (1,545) (1,850) 2012/13 Virement - - - - - 336

(336) Shift R’000 ing of Funds

- - - tion 9,822 6,377 R’000 21,073 37,272 Adjusted Appropria ssets eritage A oods and services Payment for capital assets Machinery and equipment Programme 2 Per classificationEconomic Transfers and subsidies subsidies and Transfers to: Departmental & agencies accounts H Total G Non-profit institutions Current payments Compensation of employees

58 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

------445 ture 9,739 1,523 5,824 2,442 2,369 3,360 R’000 10,038 Actual 35,740 expendi

------445 2011/12 tion 9,739 Final 1,523 5,824 2,442 2,369 3,360 R’000 10,038 35,740 Appropria

- % tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria as % of final Expenditure ------ance Vari R’000

- 7 18 39 66 139 510 148 1,763 iture 4,376 3,477 2,870 9,003 2,096 R’000 10,997 Actual 35,509 Expend

- 7 18 39 66 139 510 148 tion 1,763 Final 4,376 3,477 2,870 9,003 2,096 R’000 10,997 35,509 Appropria ------(17) (89) (48) (117) (164) (690) Vire ment R’000 (1,998) (3,123) ------7 42 (7) 169 (182) (377) (984) 2,344 Shift R’000 ing of (1,012) Funds 2012/13

- - 114 114 312 156 156 468 tion 1,945 2,473 8,653 6,050 4,489 8,834 4,868 R’000 38,632 Adjusted Appropria ayment for capital assets ayment for capital assets ayment for capital assets ayment for capital assets ayment for capital assets P PROCEEDINGS & NCOP Current payment DEPUTY SECRETARY: PARLIAMENTARY DEPUTY PARLIAMENTARY SECRETARY: SERV HANSARD & LANGUAGE SERVICES Current payment P P COMMITTE & RESEARCH SERVICES Current payment P Current payment P STANDING COMMITTEES Current payment PUBLIC PARTICIPATION ANDPUBLIC PARTICIPATION AWARENESS Current payment PORT FOLIO COMMITTEE Current payment ayment for capital assets

3.7 P 3.6 Current payment 3.5

3.4

3.8 LEGAL SERVICES Total

Detail per sub-programme: per Detail Parliamentary Services 3.1 3.3 3.2

59 Northern Cape Provincial Legislature, Vote 2

APPROPRIATION STATEMENT for the year ended 31 March 2013

- - ture R’000 11,939 Actual 35,740 expendi 23,801

- - tion Final R’000 11,939 35,740 23,801 Appropria 2011/12

- % tion 100.0% 100.0% 100.0% 100.0% appropria as % of final Expenditure - - - - - ance Vari R’000

- 417 ture 9,286 R’000 25,806 Actual 35,509 Expendi

- 417 tion Final 9,286 R’000 25,806 35,509 Appropria - (617) (435) Vire ment R’000 (2,071) (3,123) - - - - - Shift R’000 ing of Funds

- 852 tion 9,903 R’000 27,877 38,632 Adjusted Appropria oods and services 2012/13 Programme 3 Per classificationEconomic Current payments employees of Compensation G Payment for capital assets capital for Payment Machinery and equipment Total

60 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2013

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-H) to the Annual Financial Statements.

2. Detail of specifically 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 financial assets

Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme Final Actual Variance Variance as Appropriation Expenditure R’000 a % of Final Appropriation Administration 44,906 46,327 (1,421) -3,2% Members Facilities 35,422 35,422 - 0.0% Parliamentary Services 35,509 35,509 - 0.0%

4.2 Per economic classification Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 R’000 Current payments Compensation of employees 56,992 56,992 - 0.0% Goods and services 34,094 35,493 (1,399) -4.1%

Transfers and subsidies Departmental agencies and accounts 336 336 - 0.0% Non-profit institutions 21,073 21,073 - 0.0% Households 331 353 (22) -6.6%

Payments for capital assets Machinery and equipment 3,011 3,011 - 0.0%

61 Northern Cape Provincial Legislature, Vote 2

STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 March 2013

PERFORMANCE Note 2012/13 2011/12 R’000 R’000 REVENUE Annual appropriation 1 115,837 107,668 Statutory appropriation 2 19,586 18,564 Departmental revenue 3 3,271 3,233 Aid assistance 4 - 3,837

TOTAL REVENUE 138,694 133,302

EXPENDITURE Current expenditure Compensation of employees 5 76,559 71,294 Goods and services 6 35,493 32,482 Interest and rent on land 7 - 17 Aid assistance 4 486 519 Total current expenditure 112,538 104,312

Transfers and subsidies Transfers and subsidies 8 21,762 20,725 Total transfers and subsidies 21,762 20,725

Expenditure for capital assets Tangible capital assets 9 3,011 2,003 Total expenditure for capital assets 3,011 2,003

TOTAL EXPENDITURE 137,311 127,040

SURPLUS/(DEFICIT) FOR THE YEAR 1,383 6,262

Reconciliation of Net Surplus/(Deficit) for the year Voted funds (1,402) (289) Annual appropriation (1,402) (289) Departmental revenue and NRF Receipts 17 3,271 3,233 Aid assistance 4 (486) 3,318 SURPLUS/(DEFICIT) FOR THE YEAR 1,383 6,262

62 Northern Cape Provincial Legislature, Vote 2

STATEMENT OF FINANCIAL POSITION as at 31 March 2013

POSITION Note 2012/13 2011/12 R’000 R’000 ASSETS

Current assets 18,581 18,932 Unauthorised expenditure 10 11,482 10,061 Fruitless and wasteful expenditure 11 30 30 Cash and cash equivalents 12 4,171 5,023 Prepayments and advances 13 456 401 Receivables 14 2,442 3,417

Non-current assets 35 35 Investments 15 35 35

TOTAL ASSETS 18,616 18,967

LIABILITIES

Current liabilities 15,200 15,576 Voted funds to be surrendered to the Revenue Fund 16 12,175 12,156 Payables 18 193 102 Aid assistance unutilised 4 2,832 3,318

TOTAL LIABILITIES 15,200 15,576

NET ASSETS 3,416 3,391

Represented by: Recoverable revenue 186 171 Retained funds 3,230 3,220

TOTAL 3,416 3,391

63 Northern Cape Provincial Legislature, Vote 2

STATEMENT OF CHANGES IN NET ASSETS for the year ended 31 March 2013

NET ASSETS Note 2012/13 2011/12 R’000 R’000

Recoverable revenue Opening balance 171 170 Transfers: 15 1 Debts raised 15 1 Closing balance 186 171

Retained funds Opening balance 3,220 2,949 Transfer from voted funds to be surrendered (Parliament/ 10 271 Legislatures ONLY) Closing balance 3,230 3,220

TOTAL 3,416 3,391

64 Northern Cape Provincial Legislature, Vote 2

CASH FLOW STATEMENT for the year ended 31 March 2013

CASH FLOW Note 2012/13 2011/12 R’000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 137,871 133,302 Annual appropriated funds received 1.1 115,837 107,668 Statutory appropriated funds received 2 19,586 18,564 Departmental revenue received 3 2,448 3,233 Aid assistance received 4 - 3,837

Net (increase)/decrease in working capital (3,671) (4,232) Current payments (111,117) (103,895) Transfers and subsidies paid (21.762) (20,725) Net cash flow available from operating activities 19 1,321 4,450

CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 9 (3,011) (2,003) Proceeds from sale of capital assets 3 823 - Net cash flows from investing activities (2,188) (2,003)

CASH FLOWS FROM FINANCING ACTIVITIES Increase/(decrease) in net assets 15 1 Net cash flows from financing activities 15 1

Net increase/(decrease) in cash and cash equivalents (852) 2,448

Cash and cash equivalents at beginning of period 5,023 2,575

Cash and cash equivalents at end of period 20 4,171 5,023

65 Northern Cape Provincial Legislature, Vote 2

ACCOUNTING POLICIES for the year ended 31 March 2013

The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. However, where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the Financial Statements and to comply with the statutory requirements of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2010.

1. Presentation of the Financial Statements

1.1 Basis of preparation

The financial statements have been prepared on a modified cash basis of accounting.

Under this basis, the effects of transactions and other events are recognised in the financial records when the resulting cash is received or paid. The “modification” results from the recognition of certain near-cash balances in the financial statements as well as the revaluation of foreign investments and loans and the recognition of resulting revaluation gains and losses.

In addition supplementary information is provided in the disclosure notes to the financial statements where it is deemed to be useful to the users of the financial statements.

1.2 Presentation currency

All amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

1.3 Rounding

Unless otherwise stated all financial figures have been rounded to the nearest one thousand Rand (R’000)..

1.4 Comparative figures

Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.

1.5 Comparative figures - Appropriation Statement

A comparison between actual amounts and final appropriation per major classification of expenditure is included in the Appropriation Statement.

66 Northern Cape Provincial Legislature, Vote 2

ACCOUNTING POLICIES for the year ended 31 March 2013

2. Revenue

2.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the financial records on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective.

Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts owing to the National/Provincial Revenue Fund at the end of the financial year are recognised as payable in the statement of financial position.

Any amount due from the National/Provincial Revenue Fund at the end of the financial year is recognised as a receivable in the statement of financial position.

2.2 Departmental revenue

All departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Fund at the end if the financial year is recognised as a payable in the statement of financial position.

No accrual is made for amounts receivable from the last receipt date to the end of the reporting period. These amounts are however disclosed in the disclosure notes to the annual financial statements.

2.3 Direct Exchequer receipts

All direct exchequer receipts are recognised in the statement of financial performance when the cash is received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Funds at the end of the financial year is recognised as a payable in the statement of financial position.

2.4 Direct Exchequer payments

All direct exchequer payments are recognised in the statement of financial performance when final authorisation for payment is effected on the system (by no later than 31 March of each year).

67 Northern Cape Provincial Legislature, Vote 2

ACCOUNTING POLICIES for the year ended 31 March 2013

2.5 Aid assistance

Aids assistance is recognised as revenue when received

All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexures to the Annual Financial Statements

The cash payments made during the year relating to aid assistance projects are recognised as expenditure in the statement of financial performance when final authorisation for payments is effected on the system (by no later than 31 March of each year)

The value of the assistance expensed prior to the receipt of funds is recognised as a receivable in the statement of financial position.

Inappropriately expensed amounts using aid assistance and any unutilised amounts are recognised as payables in the statement of financial position.

All CARA funds received must be recorded as revenue when funds are received. The cash payments made during the year relating to CARA earmarked projects are recognised as expenditure in the statement of financial performance when final authorisation for payments effected on the system (by no later then 31 March of each year)

Inappropriately expensed amounts using CARA funds are recognised as payables in the statement of financial position. Any unutilised amounts are transferred to retained funds as they are not surrendered to the revenue fund.

3. Expenditure

3.1 Compensation of employees

3.1.1 Salaries and wages

Salaries and wages are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

Other employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements at its face value and are not recognised in the statement of financial performance or position.

Employee costs are capitalised to the cost of a capital project when an employee spends more than 50% of his/ her time on the project. These payments form part of expenditure for capital assets in the statement of financial performance.

68 Northern Cape Provincial Legislature, Vote 2

ACCOUNTING POLICIES for the year ended 31 March 2013

3.1.2 Social contributions

Employer contributions to post employment benefit plans in respect of current employees are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

No provision is made for retirement benefits in the financial statements of the department. Any potential liabilities are disclosed in the financial statements of the National Revenue Fund and not in the financial statements of the employer department.

Employer contributions made by the department for certain of its ex-employees (such as medical benefits) are classified as transfers to households in the statement of financial performance.

3.2 Goods and services

Payments made during the year for goods and/or services are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

The expense is classified as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000). All other expenditures are classified as current.

Rental paid for the use of buildings or other fixed structures is classified as goods and services and not as rent on land.

3.3 Interest and rent on land

Interest and rental payments are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fixed structures. If it is not possible to distinguish between payment for the use of land and the fixed structures on it, the whole amount should be recorded under goods and services.

3.4 Payments for financial assets

Debts are written off when identified as irrecoverable. Debts written-off are limited to the amount of savings and/or underspending of appropriated funds. The write off occurs at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the financial statements.

All other losses are recognised when authorisation has been granted for the recognition thereof.

3.5 Transfers and subsidies

Transfers and subsidies are recognised as an expense when the final authorisation for payment is effected on the system (by no later than 31 March of each year)

69 Northern Cape Provincial Legislature, Vote 2

ACCOUNTING POLICIES for the year ended 31 March 2013

3.6 Unauthorised expenditure

When confirmed unauthorised expenditure is recognised as an asset in the statement of financial position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

Unauthorised expenditure approved with funding is derecognised from the statement of financial position when the unauthorised expenditure is approved and the related funds are received.

Where the amount is approved without funding it is recognised as expenditure in the statement of financial performance on the date stipulated in the Act.

3.7 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recognised as expenditure in the statement of financial performance according to the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

3.8 Irregular expenditure

Irregular expenditure is recognised as expenditure in the statement of financial performance. If the expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable.

4. Assets

4.1 Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost.

Bank overdrafts are shown separately on the face of the statement of financial position.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

4.2 Other financial assets

Other financial assets are carried in the statement of financial position at cost.

4.3 Prepayments and advances

Amounts prepaid or advanced are recognised in the statement of financial position when the payments are made and are derecognised as and when the goods/services are received or the funds are utilised.

Prepayments and advances outstanding at the end of the year are carried in the statement of financial position at cost.

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ACCOUNTING POLICIES for the year ended 31 March 2013

4.4 Receivables

Receivables included in the statement of financial position arise from cash payments made that are recoverable from another party (including departmental employees) and are derecognised upon recovery or write-off.

Receivables outstanding at year-end are carried in the statement of financial position at cost plus any accrued interest. Amounts that are potentially irrecoverable are included in the disclosure notes.

4.5 Investments

Capitalised investments are shown at cost in the statement of financial position.

Investments are tested for an impairment loss whenever events or changes in circumstances indicate that the investment may be impaired. Any impairment loss is included in the disclosure notes.

4.6 Loans

Loans are recognised in the statement of financial position when the cash is paid to the beneficiary. Loans that are outstanding at year-end are carried in the statement of financial position at cost plus accrued interest.

Amounts that are potentially irrecoverable are included in the disclosure notes.

4.7 Inventory

Inventories that qualify for recognition must be initially reflected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition.

All inventory items at year-end are reflected using the weighted average cost or IF FO cost formula.

4.8 Capital assets

4.8.1 Movable assets

Initial recognition

A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the movable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R1.

All assets acquired prior to 1 April 2002 are included in the register R1.

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ACCOUNTING POLICIES for the year ended 31 March 2013

Subsequent recognition

Subsequent expenditure of a capital nature is recorded in the statement of financial performance as “expenditure for capital assets” and is capitalised in the asset register of the department on completion of the project.

Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

4.8.2 Immovable assets

Initial recognition A capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the immovable capital asset is stated at R1 unless the fair value for the asset has been reliably estimated.

Subsequent recognition Work-in-progress of a capital nature is recorded in the statement of financial performance as “expenditure for capital assets”. On completion, the total cost of the project is included in the asset register of the department that is accountable for the asset.

Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

4.8.3 Intangible assets

Initial recognition An intangible asset is recorded in the asset register on receipt of the item at cost. Cost of an intangible asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the intangible asset is stated at fair value. Where fair value cannot be determined, the intangible asset is included in the asset register at R1.

All intangible assets acquired prior to 1 April 2002 can be included in the asset register at R1.*

Subsequent expenditure Subsequent expenditure of a capital nature is recorded in the statement of financial performance as “expenditure for capital asset” and is capitalised in the asset register of the department.

Maintenance is expensed as current “goods and services” in the statement of financial performance.

5. Liabilities

5.1 Payables

Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost in the statement of financial position.

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ACCOUNTING POLICIES for the year ended 31 March 2013

5.2 Contingent liabilities

Contingent liabilities are included in the disclosure notes to the financial statements when it is possible that economic benefits will flow from the department, or when an outflow of economic benefits or service potential is probable but cannot be measured reliably.

5.3 Contingent assets

Contingent assets are included in the disclosure notes to the financial statements when it is probable that an inflow of economic benefits will flow to the entity.

5.4 Commitments

Commitments are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

5.5 Accruals

Accruals are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

5.6 Employee benefits

Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts are not recognised in the statement of financial performance or the statement of financial position.

5.7 Lease commitments

Finance lease Finance leases are not recognised as assets and liabilities in the statement of financial position. Finance lease payments are recognised as a capital expense in the statement of financial performance and are not apportioned between the capital and the interest portions. The total finance lease payment is disclosed in the disclosure notes to the financial statements.

Operating lease Operating lease payments are recognised as an expense in the statement of financial performance. The operating lease commitments are disclosed in the discloser notes to the financial statement.

5.8 Impairment

The department tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An assessment of whether there is an indication of possible impairment is done at each reporting date. An estimate is made for doubtful loans and receivables based on a review of all outstanding amounts at year-end. Impairments on investments are calculated as being the difference between the carrying amount and the present value of the expected future cash flows / service potential flowing from the instrument.

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ACCOUNTING POLICIES for the year ended 31 March 2013

5.9 Provisions

Provisions are disclosed when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the obligation can be made.

6. Receivables for departmental revenue

Receivables for departmental revenue are disclosed in the disclosure notes to the annual financial statements. These receivables are written off when identified as irrecoverable and are disclosed separately.

7. Net Assets

7.1 Capitalisation reserve

The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/ Provincial Revenue Fund when the underlying asset is disposed and the related funds are received.

7.2 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. A mounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

8. Related party transactions

Specific information with regards to related party transactions is included in the disclosure notes

9. Key management personnel

Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

10. Public private partnerships

A description of the PPP arrangement, the contract fees and current and capital expenditure relating to the PPP arrangement is included in the disclosure notes.

74 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

1. Annual Appropriation

1.1 Annual Appropriation included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2012/13 2011/12 Funds not Appropriation Final Actual Funds requested/ received Appropriation Received not received R’000 R’000 R’000 R’000 Administration 44,906 44,906 - 35,449 Facilities for Members 35,422 35,422 - 35,167 and Political Parties Parliamentary Services 35,509 35,509 - 37,052

Total 115,837 115,837 - 107,668

2. Statutory Appropriation

2012/13 2011/12 R’000 R’000 Member of executive committee/parliamentary officers 19,586 18,564 Total 19,586 18,564

Actual Statutory Appropriation received 19,586 18,564

3. Departmental revenue

Note 2012/13 2011/12 R’000 R’000 Sales of goods and services other than capital assets 3.1 72 162 Interest, dividends and rent on land 3.2 471 361 Sale of capital assets 3.3 823 - Transactions in financial assets and liabilities 3.4 1,905 2,710 Total revenue collected 3,271 3,233

Departmental revenue collected 3,271 3,233

75 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

3.1 Sales of goods and services other than capital assets

Note 2012/13 2011/12 3 R’000 R’000 Sales of goods and services produced by the department 72 162 Sales by market establishment - 78 Other sales 72 84 Sales of scrap, waste and other used current goods Total 72 162

3.2 Interest, dividends and rent on land

Note 2012/13 2011/12 3 R’000 R’000 Interest 471 361 Total 471 361

3.3 Sales of capital assets

Tangible assets Note 2012/13 2011/12 3 R’000 R’000 Buildings and other fixed structures 823 - Machinery and equipment 823 -

Total 823 -

3.4 Transactions in financial assets and liabilities

Note 2012/13 2011/12 3 R’000 R’000 Other Receipts including Recoverable Revenue 1,905 2,710 Total 1,905 2,710

76 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

4. Aid assistance

4.1 Aid assistance received in cash from other sources

2012/13 2011/12 R’000 R’000 Local Opening Balance 3,318 - Revenue - 3,837 Expenditure (486) (519) Current (486) (519) Closing Balance 2,832 3,318

4.2 Total assistance

2012/13 2011/12 R’000 R’000 Opening Balance 3,318 - Revenue - 3,837 Expenditure (486) (519) Current (486) (519) Closing Balance 2,832 3,318

4.3 Analysis of balance

2012/13 2011/12 Note R’000 R’000

Aid assistance unutilised 2,832 3,318 Other sources 2,832 3,318 Closing balance 2,832 3,318

5. Compensation of employees

5.1 Salaries and Wages

Note 2012/13 2011/12 R’000 R’000 Basic salary 47,983 44,845 Performance award 191 1,064 Service Based 126 241 Compensative/circumstantial 1,496 630 Other non-pensionable allowances 15,286 14,161 Total 65,082 60,941

77 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

5.2 Social contributions

Note 2012/13 2011/12 R’000 R’000 Employer contributions Pension 8,949 8,096 Medical 2,303 2,041 UIF 225 216 Total 11,477 10,353

Total compensation of employees 76,559 71,294

Average number of employees 159

6. Goods and services

Note 2012/13 2011/12 R’000 R’000 Administrative fees 428 72 Advertising 828 1,189 Assets less then R5,000 6.1 700 498 Bursaries (employees) 109 166 Catering 836 1,548 Communication 1,670 1,884 Computer services 6.2 863 189 Consultants, contractors and agency/outsourced services 6.3 3,751 2,212 Entertainment 146 199 Audit cost – external 6.4 3,346 2,027 Fleet services 395 443 Inventory 6.5 1,101 1,256 Operating leases 1,984 940 Property payments 6.6 4,261 3,612 Transport provided as part of the departmental activities - 23 Travel and subsistence 6.7 12,916 14,070 Venues and facilities 683 547 Training and staff development 180 75 Other operating expenditure 6.8 1,296 1,532 Total 35,493 32,482

78 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

6.1 Assets less than R5,000

Note 2012/13 2011/12 6 R’000 R’000 Tangible assets Machinery and equipment 700 498

Total 700 498

6.2 Computer services

Note 2012/13 2011/12 6 R’000 R’000 SITA computer services 216 110 External computer service providers 647 79

Total 863 189

6.3 Consultants, contractors and agency/outsourced services

Note 2012/13 2011/12 6 R’000 R’000 Business and advisory services 1,325 891 Legal costs 1,363 199 Contractors 1,063 1,095 Agency and support/outsourced services - 27

Total 3,751 2,212

6.4 Audit cost – External

Note 2012/13 2011/12 6 R’000 R’000 Regularity audits 3,346 2,027 Total 3,346 2,027

79 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

6.5 Inventory

Note 2012/13 2011/12 6 R’000 R’000 Food and food supplies 187 214 Other consumables 94 33 Material and suppliers - 22 Stationery and printing 820 987 Total 1,101 1,256

6.6 Property payments

Note 2012/13 2011/12 6 R’000 R’000 Municipal services 3,855 2,116 Other 406 1,496 Total 4,261 3,612

6.7 Travel and subsistence

Note 2012/13 2011/12 6 R’000 R’000 Local 12,096 12,472 Foreign 820 1,598 Total 12,916 14,070

6.8 Other operating expenditure

Note 2012/13 2011/12 6 R’000 R’000 Learnerships - 84 Professional bodies, membership and subscription fees - 735 Other 1,296 713 Total 1,296 1,532

7. Interest and rent on land

Note 2012/13 2011/12 R’000 R’000 Interest paid - 17 Rent on land Total - 17

80 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

8. Transfers and subsidies

2012/13 2011/12 R’000 R’000 Note Non-profit institutions Annex 1A 21,073 20,031 Households Annex 1B 689 694 Total 21,762 20,725

9. Expenditure for capital assets

Note 2012/13 2011/12 R’000 R’000 Tangible assets 3,011 2,003 Heritage assets 31 - 39 Machinery and equipment 31 3,011 1,964

Total 3,011 2,003

9.1 Analysis of funds utilised to acquire capital assets – 2012/13

Voted funds Aid Total assistance R’000 R’000 R’000 Tangible assets 3,011 - 3,011 Machinery and equipment 3,011 - 3,011

Total 3,011 - 3,011

9.2 Analysis of funds utilised to acquire capital assets – 2011/12

Voted funds Aid Total assistance R’000 R’000 R’000 Tangible assets 2,003 - 2,003 Heritage assets 39 - 39 Machinery and equipment 1,964 - 1,964

Total 2,003 - 2,003

81 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

10. Unauthorised expenditure

10.1 Reconciliation of unauthorised expenditure

Note 2012/13 2011/12 R’000 R’000 Opening balance 10,061 9,644 Unauthorised expenditure – discovered in current year 21 1,421 417 Unauthorised expenditure awaiting authorisation / 11,482 10,061 written off

10.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification

2012/13 2011/12 R’000 R’000 Capital 287 287 Current 11,195 9,774 Transfers and subsidies Total 11,482 10,061

10.3 Analysis of unauthorised expenditure awaiting authorisation per type

2012/13 2011/12 R’000 R’000 Unauthorised expenditure relating to overspending of the vote 11,482 10,061 or a main division within a vote Total 11,482 10.061

10.4 Details of unauthorised expenditure – current year

Incident Disciplinary steps taken/criminal 2012/13 proceedings R’000 2012/2013 over expenditure None 1,421 Total 1,421

82 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

11. Fruitless and wasteful expenditure

11.1 Reconciliation of fruitless and wasteful expenditure

Note 2012/13 2011/12 R’000 R’000 Opening balance 30 30 Fruitless and wasteful expenditure awaiting resolution 30 30

Analysis of awaiting resolution per economic classification Current 30 30 Total 30 30

12. Cash and cash equivalents

Note 2012/13 2011/12 R’000 R’000 Consolidated Paymaster General Account 4,171 5,023 Total 4,171 5,023

13. Prepayments and advances

Note 2012/13 2011/12 R’000 R’000 Staff advances 453 362 Travel and subsistence 3 39 Total 456 401

14. Receivables

2012/13 2011/12 R’000 R’000 R’000 R’000 R’000 Less than One to Older one year three than Total Total Note years three years Claims recoverable 14.1 131 311 375 817 1,561 Annex 3 Recoverable 14.2 39 302 606 947 1,043 expenditure Staff debt 14.3 119 2 508 629 569 Other debtors 14.4 - - 49 49 244 Total 289 615 1,538 2,442 3,417

83 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

14.1 Claims recoverable

Note 2012/13 2011/12 14 R’000 R’000 National departments 356 356 Provincial departments 81 434 Private enterprises 56 33 Households and non-profit institutions 141 670 Local governments 183 68 Total 817 1,561

14.2 Recoverable expenditure (disallowance accounts)

Note 2012/13 2011/12 14 R’000 R’000

Theft & Losses account 947 1,043 Total 947 1,043

14.3 Staff debt

Note 2012/13 2011/12 14 R’000 R’000

Tax Debt 108 107 Staff Debt 521 462 Total 629 569

14.4 Other debtors

Note 2012/13 2011/12 14 R’000 R’000

SARS Receivables 49 244 Total 49 244

84 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

15. Investments

Note 2012/13 2011/12 R’000 R’000 Non-Current Shares and other equity Sanlam Shares 35 35 Total 35 35 Total non-current 35 35

2012/13 2011/12 R’000 R’000 Analysis of non current investments Opening balance 35 35 Closing balance 35 35

the fair value of the shares listed at cost above is R247, 742.18 as at 28 March 2013. The fair value is derived from the market price of R 47.18 per share for 5251 shares held by the NCPL. the shares were valued at 28 March 2013, the last day the shares traded in the 2012/13 financial year.

16. Voted funds to be surrendered to the Revenue Fund

Note 2012/13 2011/12 R’000 R’000 Opening balance 12,156 12,028 Transfer from statement of financial performance (1,402) (289) Add: Unauthorised expenditure for current year 10 1,421 417 Closing balance 12,175 12,156

16.1 Voted funds / (Excess expenditure) transferred to the retained funds (Parliament / Legislatures ONLY)

Note 2012/13 2011/12 16 R’000 R’000 Opening balance - - Transfer from statement of financial performance 6,233 3,000 Transfer from Departmental Revenue to defray excess 17 3,271 3,233 expenditure Closing balance 9,504 6,233

85 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

17. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

Note 2012/13 2011/12 R’000 R’000 Opening balance - - Transfer from Statement of Financial Performance 3,271 3,233 Transfer to voted funds to defray expenditure (Parliament/ 16.1 (3,271) (3,233) Legislatures ONLY) Closing balance - -

18. Payables – current

Note 2012/13 2011/12 R’000 R’000

Clearing accounts 18.1 39 - Other payables 18.2 154 102 Total 193 102

18..1 Clearing accounts

Note 2012/13 2011/12 18 R’000 R’000

Pension Fund 39 - Total 39 -

18.2 Other payables

Note 2012/13 2011/12 18 R’000 R’000

Mismatched debtors receipts 154 102 Total 154 102

86 Northern Cape Provincial Legislature, Vote 2

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

19. Net cash flow available from operating activities

Note 2012/13 2011/12 R’000 R’000 Net surplus/(deficit) as per Statement of Financial Performance 1,383 6,262 Add back non cash/cash movements not deemed operating (62) (1,812) activities (Increase)/decrease in receivables – current 975 (961) (Increase)/decrease in prepayments and advances (55) 16 (Increase)/decrease in other current assets (3,261) (2,962) Increase/(decrease) in payables – current 91 92 Proceeds from sale of capital assets (823) - Expenditure on capital assets 3,011 2,003 Net cash flow generated by operating activities 1,321 4,450

20. Reconciliation of cash and cash equivalents for cash flow purposes

Note 2012/13 2011/12 R’000 R’000 Consolidated Paymaster General account 4,171 5,023 Total 4,171 5,023

87 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

these amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the Annual Financial Statements.

21. Contingent liabilities and contingent assets

21.1 Contingent liabilities

Note 2012/13 2011/12 R’000 R’000 Liable to Nature Claims against the department Annex 2 806 1,184 Intergovernmental payables (unconfirmed balance) Annex 4 1 Total 807 1,184

22. Commitments

Note 2012/13 2011/12 R’000 R’000 Current expenditure Approved and contracted 1,834 861 Approved but not yet contracted - 1,044

Total Commitments 1,834 1,905

23. Accruals

2012/13 2011/12 R’000 R’000 Listed by economic classification 30 Days 30+ Total Total Days Goods and services 560 735 1,295 2,963 Capital assets - 29 29 425 Total 560 764 1,324 3,388

Note 2012/13 2011/12 R’000 R’000 Listed by programme level Administration 946 1,677 Members Facilities 118 835 Parliamentary Services 260 876

Total 1,324 3,388

88 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

Note 2012/13 2011/12 Annex 2 R’000 R’000 Confirmed balances with other departments - 277 Total - 277

24. Employee benefits

Note 2012/13 2011/12 R’000 R’000 Leave entitlement 8,327 6,454 Service bonus (Thirteenth cheque) 1,590 1,355 Performance awards - 149 Total 9,917 7,958

25. Lease commitments

25.1 Operating leases expenditure

Buildings Specialised and other Machinery military fixed and 2012/13 equipment Land structures equipment Total Not later than 1 year - - 495 - 495 Later than 1 year and not later - - 11 - 11 than 5 years Total lease commitments - - 506 - 506

Buildings Specialised and other Machinery military fixed and 2011/12 equipment Land structures equipment Total Not later than 1 year - - 697 - 697 Later than 1 year and not later - - 514 - 514 than 5 years Total lease commitments - - 1,211 - 1,211

89 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

25.2 Finance leases expenditure**

Buildings Specialised and other Machinery military fixed and 2012/13 equipment Land structures equipment Total Not later than 1 year - - - 770 770 Later than 1 year and not later - - - 558 558 than 5 years Total lease commitments - - - 1,328 1,328

Buildings Specialised and other Machinery military fixed and 2011/12 equipment Land structures equipment Total Not later than 1 year - - - 741 741 Later than 1 year and not later - - - 309 309 than 5 years Total lease commitments - - - 1,050 1,050 LESS: finance costs - - - 63 63 Total present value of lease - - - 987 987 liabilities

26. Irregular expenditure

26.1 Reconciliation of irregular expenditure

Note 2012/13 2011/12 R’000 R’000 Opening balance 10,588 10,588 Add: Irregular expenditure – relating to current year 4,156 1,050 Less: Amounts condoned (1,050) Irregular expenditure awaiting condonation 14,744 10,588

Analysis of awaiting condonation per age classification 4,156 Prior years - 10,588 Total 4,156 10,588

90 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

27. Fruitless and wasteful expenditure

27.1 Reconciliation of fruitless and wasteful expenditure

Note 2012/13 2011/12 R’000 R’000 Opening balance 960 - Fruitless and wasteful expenditure – relating to current year 3 960 Fruitless and wasteful expenditure awaiting resolution 963 960

27.2 Analysis of awaiting resolution per economic classification

2012/13 2011/12 R’000 R’000

Current 963 960

Total 963 960

27.3 Analysis of Current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminal 2012/13 proceedings R’000

Interest charged on overdue accounts None 3 Total 3

91 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

28. Key management personnel

Key management personnel (Parliament/Legislatures)

No. of 2012/13 2011/12 Individuals R’000 R’000 Speaker to Parliament / the Legislature 1 1,609 1,566 Secretary to Parliament / the Legislature 1 1,206 1,149 Deputy Secretary 1 1.165 1,060 Chief Financial Officer 2 1,819 940 Legal Advisor 1 1,049 938 Total 6,848 5,653

Notes: The Secretary and Chief Financial Officer have been suspended for the entire year under review. The Deputy Secretary acted in the position of Secretary and acting allowance paid was included. Finance Manager acted in the position of Chief Financial Officer and acting allowance as well as remuneration paid to both individuals was included.

29. Impairment

Note 2012/13 2011/12 R’000 R’000 Impairment Debtors - 741 Total - 741

92 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

30. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Opening Curr Year Additions Disposals Closing balance Adjust- Balance ments to prior year balances R’000 R’000 R’000 R’000 R’000

HERITAGE ASSETS Heritage assets 39 - - - 39

MACHINERY AND EQUIPMENT 16,108 2,992 2,992 2,680 16,439 Transport assets 4,529 - 1,955 2,680 3,804 Computer equipment 3,768 - 425 - 4,193 Furniture and office equipment 2,384 - 158 - 2,542 Other machinery and 5,427 - 454 - 5,900 equipment

TOTAL MOVABLE TANGIBLE 16,147 - 2,992 2,680 16,478 CAPITAL ASSETS

93 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

31.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Cash Non-cash (Capital Received Total Work in current, not Progress paid current (Paid costs and current finance year, lease received payments) prior year) R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 3,011 - - - 3,011 Transport assets 1,955 - - - 1,955 Computer equipment 425 - - - 425 Furniture and office equipment 158 - - - 158 Other machinery and equipment 473 - - - 473

TOTAL ADDITIONS TO MOVABLE 3,011 - - - 3,011 TANGIBLE CAPITAL ASSETS

31.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Sold for Transfer Total Cash cash out or disposals Received destroyed Actual or scrapped R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 2,680 - 2,680 - Transport assets 2,680 - 2,680 -

TOTAL DISPOSAL OF MOVABLE 2,680 - 2,680 - TANGIBLE CAPITAL ASSETS

94 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

31.3 Movement for 2011/12

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Opening Additions Disposals Closing balance balance R’000 R’000 R’000 R’000

HERITAGE ASSETS - 39 - 39 Heritage assets - 39 - 39

MACHINERY AND EQUIPMENT 14,144 1,964 - 16,108 Transport assets 3,690 839 - 4,529 Computer equipment 3,318 450 - 3,768 Furniture and office equipment 2,327 57 - 2,384 Other machinery and equipment 4,809 618 - 5,427

TOTAL MOVABLE TANGIBLE ASSETS 14,144 2,003 - 16,147

31.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013 Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment R’000 R’000 R’000 R’000 R’000 R’000

Opening - - - 5,429 - 5,429 balance Additions - - - 701 - 701 Disposals TOTAL MINOR - - - 6,130 - 6,130 ASSETS

95 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment Number of R1 - - - 23 - 23 minor assets Number of - - - 6,296 - 6,296 minor assets at cost TOTAL - - - 6,319 - 6,319 NUMBER OF MINOR ASSETS

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2012

Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment

R’000 R’000 R’000 R’000 R’000 R’000 Opening balance - - - 4,931 - 4,931 Additions - - - 498 - 498 TOTAL MINOR ASSETS - - - 5,429 - 5,429

Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment Number of R1 minor - - - 18 - 18 assets Number of minor - - - 5,319 - 5,319 assets at cost TOTAL NUMBER OF - - - 5,337 - 5,337 MINOR ASSETS

96 Northern Cape Provincial Legislature, Vote 2

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

31. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Opening Current Additions Disposals Closing balance Year Balance Adjust- ments to prior year balances R’000 R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 414 - - - 414

TOTAL INTANGIBLE CAPITAL 414 - - - 414 ASSETS

32.1 Movement for 2011/12

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012 Opening Additions Disposals Closing balance balance R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 414 - - 414

TOTAL INTANGIBLE CAPITAL ASSETS 414 - - 414

97 Northern Cape Provincial Legislature, Vote 2

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

ANNEXURE 1A STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS

TRANSFER ALLOCATION EXPENDITURE 2011/12 Adjusted % of Approp- Available Appro- riation Adjust- Total Actual funds priation Act Roll ments Available Transfer transferred Act overs NON-PROFIT INSTITUTIONS R’000 R’000 R’000 R’000 R’000 % R’000 Transfers ANC 6,015 - - 6,015 6,015 100.0% 5,704 DA 1,266 - - 1,266 1,266 100.0% 1,201 ID 633 - - 633 633 100.0% 600 COPE 1,583 - - 1,583 1,583 100.0% 1,501 NC Political Party Fund 11,576 - - 11,576 11,576 100.0% 11,025

Total 21,073 - - 21,073 21,073 20,031

98 Northern Cape Provincial Legislature, Vote 2

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

ANNEXURE 1B STATEMENT OF TRANSFERS TO HOUSEHOLDS

TRANSFER ALLOCATION EXPENDITURE 2011/12 Adjusted % of Appropriation Available Appro- Act Roll Adjust- Total Actual funds priation Overs ments Available Transfer Transferred Act HOUSEHOLDS R’000 R’000 R’000 R’000 R’000 % R’000 Transfers Discretionary Funds 331 - - 331 353 107% 320 – Office of the Speaker Discretionary Funds - - - - 336 374 – Political Parties Total 331 - - 331 689 694

99 Northern Cape Provincial Legislature, Vote 2

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

ANNEXURE 1C STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED

2012/13 2011/12 NATURE OF GIFT, DONATION OR NAME OF ORGANISATION SPONSORSHIP R’000 R’000

Received in kind Suppliers Diaries and Calenders 1 Orange River Winery Wine for APAC conference 1 Ntlo Embroidery Cover Sheets – APAC Conference 8 Sizwe NtsalubaGobodo Conference Bags – APAC Conference 61

Subtotal 71

TOTAL 71

100 Northern Cape Provincial Legislature, Vote 2

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

ANNEXURE 1D STATEMENT OF AID ASSISTANCE RECEIVED

NAME OF DONOR PURPOSE OPENING CLOSING EXPENDI- BALANCE REVENUE TURE BALANCE R’000 R’000 R’000 R’000 Received in cash LSS unit in Parliament Provide support in Legislature operations 3,318 - 486 2,832

Subtotal 3,318 - 486 2,832

TOTAL 3,318 - 486 2,832

101 Northern Cape Provincial Legislature, Vote 2

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

ANNEXURE 2 STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2013

Liabilities Opening paid/ Liabilities Closing Balance Liabilities cancelled/ recoverable Balance Nature of Liability incurred reduced (Provide during the during the details 31 March 1 April 2012 year year hereunder) 2013 R’000 R’000 R’000 R’000 R’000 Claims against the department CCMA Award – Managers currently at 1,104 - 854 - Labour court review 250 Senior officials disciplinary case 80 270 - - 350 COPE vs NCPL - 82 - - 82 Avis Claim - 25 - - 25 Sebusi vs NCPL - 99 - - 99 Subtotal 1,184 476 854 - 806

102 Northern Cape Provincial Legislature, Vote 2

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

ANNEXURE 3 CLAIMS RECOVERABLE

Confirmed balance Unconfirmed balance outstanding outstanding Total Government Entity 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 R’000 R’000 R’000 R’000 R’000 R’000 Department Office of the Premier - 331 - 3 26 331 Department of Finance - - 6 3 6 3 Department of Transport - - 9 10 9 10 Department of Nature - - 24 22 24 Conservation 22 Department of - - 3 3 3 Education 3 GOCSTA - - - 30 - 30 Department of Safety - - - 27 - 27 Department of - - 10 - 10 Economic Affairs - - 331 78 95 78 426

Other Government Entities Municipalities - - 58 68 58 68 Government Printer - - 356 356 356 356 PCBC Agency - - 7 7 7 7 PSETA - - 5 5 5 5 Libtech - - 20 20 20 20 Other Entities - - 188 79 188 79 Non Profit institutions - - 105 600 105 600

- - 739 1,135 739 1,135

TOTAL - 331 817 1,230 817 1,561

103 Northern Cape Provincial Legislature, Vote 2

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

ANNEXURE 4 INTERDEPARTMENTAL PAYABLES

Government Entity Confirmed balance Unconfirmed balance Total outstanding outstanding 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 R’000 R’000 R’000 R’000 R’000 R’000 Department Office of the Premier - 185 - - - 185 Social Development - - - 25 - 25 Roads and Public Works - 88 1 - 1 88

TOTAL - 273 1 25 1 298

104 Northern Cape Provincial Legislature, Vote 2

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2013

ANNEXURE 5 INVENTORY

Inventory Note Quantity 2012/13 Quantity 2011/12 R’000 R’000 Opening balance 35,628 264 43,332 280 Add/(Less): Adjustments to prior year balance Add: Additions/Purchases - Cash 130,123 1,092 139,569 1,256 Add: Additions - Non-cash (Less): Disposals (Less): Issues (126,664) (1,200) (147,273) (1,272) Add/(Less): Adjustments

Closing balance 39,087 156 35,628 264

105 Northern Cape Provincial Legislature, Vote 2

PART 4: HUMAN RESOURCES MANAGEMENT REPORT

106 Northern Cape Provincial Legislature, Vote 2

4. HUMAN RESOURCES MANAGEMENT REPORT

1. INTRODUCTION

The Human Resources Annual Report is an informative and statistical report on all Human Resources related activities, which occurred during the 2012/13 financial year. The objective of the report is to document the annual employee statistics and related activities in the Legislature.

The report contains information on • Expenditure • Employment and Vacancies • Job Evaluation • Employment Changes • Employment Equity • Performance Rewards • Foreign Workers • Leave • HIV/AIDS & Health Promotion Programmes • Labour Relations • Skills Development • Injury on duty • Utilisation of Consultants • Population Group Distribution • Gender Composition • General • Strategic Objectives

107 Northern Cape Provincial Legislature, Vote 2

2. EXPENDITURE

2.1 Personnel Costs by Programme, 2012/2013

Programme Total Personnel No. Training Profes- Personnel Average Expenditure Expend- of e’e Expend- sional cost as a personnel (R’000) iture iture and percent cost per (R’000) (R’000) Special of total employee Services expenditure (R’000)

(R’000) (R’000)

Administration 46 327 400 25 444 71 - 54.92% 358

Members Facilities 35 422 865 5 581 18 - 15.76% 310

Parliamentary Services 35 507 667 25 808 56 - 72.68% 461

Total 117 257 932 56 833 145 0 48.47% 392

NOTE: The above Personnel Expenditure total reflects actual expenditure in terms of personnel cost based on information extracted from PERSAL. The amount however does not balance with an amount of R11 000 in terms of the BAS Report. Further note that fixed-term contract employees and interns are included in the personnel expenditure in Administration and are therefore included in the number of employees for that Programme.

2.2 Personnel Costs by Salary Bands, 2012/2013

Salary Bands No. of Personnel % of total Average Personnel e’e Expenditure Personnel Cost per employee Cost (R,000) (R,000) Lower Skilled (Grade A1–A2) 2 349 0.61% 174 Skilled (Grade A3–B2) 38 7 969 14.02% 210 Highly skilled production (Grade B3–C1) 54 15 824 27.84% 293 Highly skilled supervision (Grade C2–D1) 41 22 575 39.72% 551 Senior Management (Grade D2–E3) 10 10 117 17.80% 1012 Other (Interns) 0 0 0.00% Total 145 56 833 100.00% 392

108 Northern Cape Provincial Legislature, Vote 2

2.2.1 Personnel Costs by Race, 2012/2013

Beneficiary Profile No. of e’e Personnel Cost by % of total Personnel Gender Cost African 81 31 229 54.95% Indian 3 768 1.35% Coloured 48 20 253 35.64% White 13 4 582 8.06% Other (Interns) 0 0 0.00% Total 145 56 833 100.00%

2.2.2 Personnel Costs by Gender, 2012/2013

Beneficiary Profile No. of e’e Personnel Cost by % of total Personnel Gender Cost Male 64 29 455 51.83% Female 81 27 378 48.17% Other (Interns) 0 0 0.00% Total 145 56 833 100.00%

2.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by Programme, 2012/2013

Programme Salaries Overtime Home Owners Medical Assistance Allowance

Amount Salaries Overtime Amount HOA as Amount Medical (R,000) as a % of as a % of (R,000) a % of (R,000) Assistance Personnel Personnel Personnel as a % of Cost Cost Cost Personnel Cost

Administration 15 635 27.51% 1 534 2.70% 691 1.22%

Members Facilities 4 856 8.54% 134 0.24% 0 0.00%

Parliamentary Serv 16 296 28.67% 1 223 2.15% 1 302 2.29%

Other (Interns) 0 0.00% 0 0

Total 36 788 64.73% 2 891 5.09% 1 993 3.51%

109 Northern Cape Provincial Legislature, Vote 2

2.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Bands, 2012/2013 (% of the total personnel cost)

Salary Bands Salaries Overtime Home Owners Medical Assistance Allowance Amount Salaries Amount Over- Amount HOA as a Amount Medical (R,000) as a % (R,000) time as (R,000) % of Total (R,000) Assis- of Total a % of Personnel tance as a Per- Total Cost % of Total son-nel Per- Personnel Cost son-nel Cost Cost Lower Skilled (Grade 208 0.37% 38 0.07% 0 0.00% A1-A2) Skilled (Grade A3-B2) 5 499 9.68% 596 1.05% 111 0.20% Highly skilled 11 316 19.91% 817 1.44% 735 1.29% production (Grade B3-C1) Highly skilled 13 845 24.36% 851 1.50% 910 1.60% supervision (Grade C2-C4) Senior Management 5 919 10.42% 590 1.04% 237 0.42% (Grade D1-E2) Other (Interns) 0 0.00% 0 0 Total 36 788 64.73% 2 891 5.09% 1 993 3.51%

2.5 Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Bands, 2012/2013 (% of the respective salary bands)

Salary Bands Salaries Overtime Home Owners Medical Assistance Allowance Amount Salaries Amount Overtime Amount HOA as a Amount Medical (R,000) as a % (R,000) as a % of (R,000) % of Total (R,000) Assis- of Total Total Per- Personnel tance Per- son-nel Cost as a % son-nel Cost of Total Cost Person- nel Cost Lower Skilled (Grade 208 59.76% 38 11.01% 0 0.00% A1-A2) Skilled (Grade A3-B2) 5 499 69.00% 596 7.47% 111 1.40% Highly skilled 11 316 71.51% 817 5.16% 735 4.65% production (Grade B3-C1) Highly skilled 13 845 61.33% 851 3.77% 910 4.03% supervision (Grade C2-C4) Senior Management 5 919 58.51% 590 5.83% 237 2.34% (Grade D1-E2) Other (Interns) 0 Total 36 788 64.73% 2 891 5.09% 1 993 3.51%

110 Northern Cape Provincial Legislature, Vote 2

3. EMPLOYMENT AND VACANCIES

3.1 Employment and Vacancies by Programme, 31 March 2013

Programme Number of posts Number of posts Vacancy Rate Number of filled posts filled additional to the establishment Administration 99 68 31.31% - Members Facilities 17 17 - - Parliamentary Service 87 57 34.48% - Temporary Employees 1

Total 203 143 29.56% -

111 Northern Cape Provincial Legislature, Vote 2

The Labour strength increased with 8 during the 2012/13 financial year, from 135 in April 2012 to 143 in March 2013.

The staff complement of the Legislature increased with 8 over the past year, from 135 in March 2012 to 143 in March 2013 (which includes 1 fixed-term contract appointment and one position additional to the establishment). When compared to the end of the 2011/2012 financial year, the staff complement of the Legislature increased with 8, to 143 employees recorded as at the end of March 2013 in comparison at the end of March 2012. The growth and development of the Legislature can be seen if compared to the staff complement of previous years. The graph indicates an incline in growth of 8 over the past year. Over the past 3 years there was an incline in growth of 8.

3.2 Employment and Vacancies by Salary Bands, 31 March 2013

Salary Band Number of Number of Vacancy Number of posts posts posts filled Rate filled additional to the establishment Lower Skilled (Grade A1-A2) 2 2 - - Skilled (Grade A3-B2) 65 38 41.54% - Highly skilled production (Grade B3-C1) 74 52 29.73% - Highly skilled supervision (Grade C2-C3) 30 26 13.33% - Managers (DI – D2) 18 16 11.11% - Senior Management (Grade D4-E3) 9 8 11.11% - Other (Internship) - - - - Temporary Employees 1 Positions not Graded 5 - - - Total 203 143 29.56% -

112 Northern Cape Provincial Legislature, Vote 2

3.3 Employment and Vacancies by Critical Occupation, 01 April 2012 to 31 March 2013

Critical Occupation Number of Number of Vacancy Number of posts posts posts filled Rate filled additional to the establishment HR Practitioner 1 1 - - Filing clerks 4 2 50% - Legal Advisor 2 1 50% - Researcher (Independent Democrats) 1 1 - - Secretary (Procedural & Research Services) 1 1 - - Communication Practitioner (additional to 0 1 - - establishment) Snr Manager: Office of the Speaker 1 1 - - Secretary (Office of the Speaker) 1 1 - - Committee Coordinator 3 1 66.67% - Service Officer 4 4 - - Accounts Officer 1 1 - - Human Resources Administrator 1 1 -

Total 22 17 22.73% -

4. JOB EVALUATION

4.1 Job Evaluation, 01 April 2012 to 31 March 2013

13 Manager Positions and 12 other were conducted by an external service provider in February 2013. The process will be continued in 2013/14 to include the evaluation of all other job profiles in the institution.

4.2 Profile of employees whose positions were upgraded due to their posts being upgraded, 01 April 2012 to 31 March 2013

None

4.3 Employees whose salary levels exceed the grade determined by job evaluation, 01 April 2011 to 31 March 2013 (in terms of PSR 1.V.C.3)

None

4.4 Profile of employees whose salary level exceeds the grade determined by job evaluation, 01 April 2012 to 31 March 2013 (in terms of PSR 1.V.C.3)

None

113 Northern Cape Provincial Legislature, Vote 2

5. EMPLOYMENT CHANGES

5.1 Annual turnover rates by salary band for the period 1 April 2012 to 31 March 2013

Salary Band Number of Appointments Terminations Turnover employees and transfers and transfers rate per band as into the out of the on Legislature Legislature 1 April 2012 Lower Skilled (Grade A1-A2) 2 - - Skilled (Grade A3-B2) 34 6 2 5% Highly skilled production (Grade B3-C1) 48 7 2 3.64% Highly skilled supervision (Grade C2-C3) 25 1 1 3.85% Snr Management Band A (Grade D1-E3) 24 1 2 8% Other (Internship) - - - Temporary Employees 1 2 1 33.3

Total 134 17 8 5.3%

5.2 Employment and Vacancies by Critical Occupation, 31 March 2013

Critical Occupation Number of Number of Vacancy Number of posts posts posts filled Rate filled additional to the establishment HR Practitioner 1 1 - - Filing clerks 4 2 50% - Legal Advisor 2 1 50% - Researcher (ID) 1 1 - - Secretary (Procedural) 1 1 - - Communication Practitioner 2 2 - - Registry Clerk (Speaker’s) 1 1 - Secretary (Speaker’s) 1 1 - - Committee Coordinator 3 1 66.67% - Service Officer 4 4 - - Accounts Officer 1 1 - - Human Resources Administrator 1 1 -

Total 22 17 22.73% -

114 Northern Cape Provincial Legislature, Vote 2

5.3 Reasons why staff are leaving the Legislature

Termination Type Number % of total Death - - Resignation 5 62.5% Expiry of contract 2 25% Dismissal 1 12.5% Dismissal – inefficiency Discharged due to ill-health Retirement Other Transfers to other Public Service Departments Total 8 100% Total number of employees who left as a % of the total employment 4.89%

5.4 Promotions by critical occupation

Occupation Employees Promotions to Salary level Progression Notch as at 1 April another salary promotions as a to another progression 2012 level % of employees notch within as a % of by occupation a salary level employees by occupation

Total

115 Northern Cape Provincial Legislature, Vote 2

5.5 Promotions by salary bands

Salary Band Employees Promotions Salary bands Progression Notch 1 April 2012 to another promotions to another progression salary level as a % of notch within a as a % of employees by salary level employees salary level by salary band Lower Skilled 2 - - - - (A1 – A2) Skilled 34 - - - - (A3 – B2) Highly skilled production 48 - - - - (B3 – C1) Highly skilled supervision 25 - - - - (C2 – C3) Senior Management 24 - - - - (D1 – E3) Temporary Employees 1

Total 134 - - - -

6. EMPLOYMENT EQUITY

6.1 Total number of employees (including employees with disabilities) in each of the following occupational bands, 31 March 2013

Occupational Bands Male Female Total

African Coloured Indian White African Coloured Indian White

Top Management 2 0 0 0 0 0 0 0 2 (E2 – E3)

Senior Management (D4) 2 1 0 0 0 1 0 1 5

Professionally qualified & 7 4 0 0 1 5 0 0 17 experienced specialists and mid-management (D1 – D2)

Skilled technical & 18 7 0 1 14 10 1 4 55 academically qualified workers, junior manag, supervisors, foreman & superintendents (C1 – C4)

116 Northern Cape Provincial Legislature, Vote 2

Occupational Bands Male Female Total

African Coloured Indian White African Coloured Indian White

Semi-skilled & discretionary 11 4 1 1 19 12 1 4 53 decision making (B1 – B4)

Unskilled & defined decision 1 3 0 0 3 3 0 0 10 making (A2 – A3)

Temporary Employees ------1 1

Total 40 19 1 2 37 29 2 9 143

Employees with disabilities ------

6.2 Recruitment for the period 1 April 2012 to 31 March 2013

Occupational Bands Male Female Total

African Coloured Indian White African Coloured Indian White

Top Management ------(E2 – E3)

Senior Management (D4 ) ------

Professionally qualified & 1 ------1 experienced specialists and mid-management (D1 – D2)

Skilled technical 3 - - - 1 2 - - 6 & academically qualified workers, Junior management, supervisors, foreman & superintendents (C1 –C4)

Semi-skilled & 2 1 - - 2 2 - - 7 discretionary decision making (B1 – B4)

Unskilled & defined ------decision making (A2– A3)

Temporary employees - - - - 2 - - 1 3

Total 6 1 - - 5 4 - 1 17

Employees with ------disabilities

117 Northern Cape Provincial Legislature, Vote 2

6.3 Institution Population Group per Grade

6.4 Promotions for the period 1 April 2012 to 31 March 2013

Occupational Bands Male Female Total

African Coloured Indian White African Coloured Indian White

Top Management ------

Senior Management ------

Professionally qualified & ------experienced specialists and mid-management

Skilled technical & ------academically qualified workers, junior management, supervisors, foreman & superintendants

Semi-skilled & discretionary ------decision making

Unskilled & defined decision ------making

Total ------

Employees with disabilities

118 Northern Cape Provincial Legislature, Vote 2

6.5 Terminations for the period 1 April 2012 to 31 March 2013

Occupational Bands Male Female Total

African Coloured Indian White African Coloured Indian White

Top Management ------

Senior Management - - - - - 1 - - 1

Professionally qualified & 1 ------1 experienced specialists and mid-management

Skilled technical & - 1 - - 1 - - - 2 academically qualified workers, junior management, supervisors, foreman & superintendants

Semi-skilled & discretionary 1 1 ------2 decision making

Unskilled & defined ------decision making

Temporary Employees - - - - 2 - - - 2

Total 2 2 - - 3 1 - - 8

Employees with disabilities

119 Northern Cape Provincial Legislature, Vote 2

6.5 Disciplinary action for the period 01 April 2012 to 31 March 2013

Male Female Total

African Coloured Indian White African Coloured Indian White

Total 3 3 0 0 0 1 0 0 7

6.6 Skills development for the period 01 April 2012 to 31 March 2013

Occupational Categories Male Female Total

African Coloured Indian White African Coloured Indian White

Top Management ------

Senior Management ------

Professionally Qualified, 2 1 1 2 - - 6 Experienced Specialists and Mid Management

Skilled Tech & 13 4 - - 8 2 1 1 29 Academically qualified

Semi – Skilled and 6 - - - 2 2 1 - 11 Discretionary Decision Making

Unskilled & Defined 1 2 - - 2 1 - - 6 Decision Making

Temporary Employees ------

Interns Candidates ------

Total 22 7 - - 13 7 2 1 52

Employees with disabilities

120 Northern Cape Provincial Legislature, Vote 2

7. PERFORMANCE REWARDS

7.1 Performance Rewards by race, gender and disability, 01 April 2012 to 31 March 2013

Beneficiary Profile Cost Number of Total number % of total within Cost (R’000) Average cost beneficiaries of employees in group per employee group African - - - - - Male - - - - - Female - - - - - Asian - - - - - Male - - - - - Female - - - - - Coloured - - - - - Male - - - - - Female ------White - - - - - Male - - - - - Female - - - - - Employees with a - - - - - disability Total - - - - -

121 Northern Cape Provincial Legislature, Vote 2

7.2 Performance Rewards by Salary Bands for personnel below Senior Management Service, 01 April 2012 to 31 March 2013

Salary Bands Beneficiary Profile Cost Number of Number of % of Total Cost Average Total cost beneficiaries employees total (R’000) cost per as a % of within employee the total salary personnel bands expenditure Lower skilled (Levels ------1-2) A1-A2 Skilled (Levels 3-5) ------A3-B2 Highly skilled ------production (Levels 6-8) B3-C1 Highly skilled ------supervision (Levels 9-12) C2-D2 Total ------

7.3 Performance by Critical Occupations, 01 April 2012 to 31 March 2013

None

7.4 Performance related rewards (cash bonus), by salary band, for Senior Management Service, 01 April 2012 to 31 March 2013

Salary Band Beneficiary Profile Total Average cost Total cost as a Cost per employee % of the total personnel (R’000) expenditure Number of Number of % of total within beneficiaries employees band Band A(E3) ------Band B(E2) ------Band C(D4) ------Band D(D3) ------Total ------

122 Northern Cape Provincial Legislature, Vote 2

8. FOREIGN WORKERS

8.1 Foreign Workers, 1 April 2012 to 31 March 2013, by salary band

Salary Band 1 April 2012 31 March 2013 Change Number % of Total Number % of Total Number % of change Lower Skilled ------(Grade A1 – A2) Skilled ------(Grade A3 – B2) Highly skilled production ------(Grade B3 – C1) Highly skilled supervision ------(Grade C2 – D1) Senior Management ------(Grade D2 – E3) Total ------

8.2 Foreign Worker, 1 April 2012 to 31 March 2013, by major occupation

Major Occupation 1 April 2012 31 March 2013 Change Number % of Total Number % of Total Number % of change ------Total ------

123 Northern Cape Provincial Legislature, Vote 2

9. LEAVE UTILISATION

9.1 Sick Leave, 1 April 2012 to 31 March 2013

Salary Band Total Average Average % of total Average Estimated Days number of number of employees days per Cost (R’000) employees employees using sick employee using sick leave leave Lower Skilled (Grade 10 2 2 100 5 4, 738 A1-A2) Skilled (Grade A3-B2) 488 39 24 62 20.33 279, 562 Highly skilled production 636 55 38 69 16.73 552, 231 (Grade B3-C1) Highly skilled supervision 309 39 28 72 6.96 515, 466 (Grade C2-D1) Senior Management 48 11 6 55 8 124, 719 (Grade D2-E2) Total 1491 146 99 72 15.06 1, 352, 122

9.2 Disability leave (temporary and permanent), 1 April 2012 to 31 March 2013

Salary Band Total Days Number of % of total Average Estimated Employees employees days per Cost (R’000) using sick using sick employee leave leave Lower Skilled (Grade A1-A2) - - - - - Skilled (Grade A3-B2) - - - - - Highly skilled production - - - - - (Grade B3-C1) Highly skilled supervision - - - - - (Grade C2-C4) Senior Management (Grade - - - - - D2-E2) Total - - - - -

124 Northern Cape Provincial Legislature, Vote 2

9.3 Annual Leave, 1 April 2012 to 31 March 2013

Salary Bands Total days Average Employees Average days Value of taken taking leave per employee Days Lower Skilled (Grade A1-A2) 79 2 39.5 52, 406 Skilled (Grade A3-B2) 660 34 19.41 508, 518 Highly skilled production (Grade B3- 999 46 21.71 1, 202, 489 C1) Highly skilled supervision (Grade 926 38 24.36 1, 951, 281 C2-D1) Senior Management (Grade D2-E2) 163 7 23.28 599, 066 Total 2 827 127 22.62 4, 313 ,760

9.4 Capped leave, 1 April 2012 to 31 March 2013

Salary Band Total days of capped Average number Average leave taken of days taken per capped leave employee per employee Lower Skilled (Grade A1-A2) - - - Skilled (Grade A3-B2) 4 4 4 Highly skilled production (Grade B3-C1) 6 6 6 Highly skilled supervision (Grade C2-D1) 13 13 13 Senior Management (Grade D2-E2) - - -

Total 23 23 23

9.5 Leave payouts for the period 1 April 2012 to 31 March 2013

Reason Total Amount Number of Average (R’000) Employees payment per employee Capped leave payouts on termination of service for - - - 2012/13 Current leave payout on termination of service for R107 856.49 6 17 976 2012/13 Total R107 856.49 6 17 976

125 Northern Cape Provincial Legislature, Vote 2

10. HIV/AIDS & HEALTH PROMOTION PROGRAMMES

10.1 Steps taken to reduce the risk of occupational exposure

Application of Occupational Health & Safety Act

10.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)

Question Yes No Details, if yes. 1. Have the Legislature designated a member of the SMS N/A N/A to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and positions. 2. Do the Legislature have a dedicated unit or have you X Ms L Geduld designated specific staff members to promote the health Mr HC Harmse, and well being of your employees? If so, indicate the number of employees who are involved in this task and R189 000 budget allocated in the annual budget that is available for this purpose. this financial year. 3. Have the Legislature introduced an Employee Assistance X Member &Employee Assistance or Health Promotion Programme for your employees? If Programme Programme so, indicate the key elements/services of this Programme conducted by Careways 4. Have the Legislature established (a) committee(s) as N/A N/A In the process of establishing a contemplated in Part VI E5 (e) of Chapter 1 of the Public committee Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder (s) that they represent. 5. Have the Legislature reviewed the employment policies X Review and development and practices of the Legislature to ensure that these do of HIV/Aids, Wellness, OHS, not unfairly discriminate against employees on the basis Leave Policies & Conditions of of their HIV status? If so, list the employment policies/ Service a priority to prevent procedures so reviewed. discrimination against HIV- positive employees ongoing 6. Have the Legislature introduced measures to protect HIV- X Disease Management positive employees or those perceived to be HIV-positive Programme and policy review & from discrimination? If so, list the key elements of these development ongoing measures. 7. Do the Legislature encourage its employees to undergo X Conducted in third quarter 2012 Voluntary Counselling and Testing? If so, list the results that you have achieved. 8. Have the Legislature developed measures/indicators to X Bi-Annual and annual reports monitor & evaluate the impact of your health promotion from Careways programme? If so, list these measures/indicators.

126 Northern Cape Provincial Legislature, Vote 2

11. LABOUR RELATIONS

11.1 Collective agreements, 01 April 2012 to 31 March 2013

Subject Matter Date Collective Agreement: Wage Negotiations for period beginning 01 April 2012 ending 13 July 2012 31 March 2013 concluded Collective Agreement: Adjustment 16 January 2013

11.2 Misconduct and discipline hearings finalized, 01 April 2012 to 31 March 2013

Outcomes of disciplinary hearings Number % of total Correctional counseling - - Verbal Warning - - Written Warning - - Serious written Warning - - Final Written Warning - - Suspended with pay - - Suspended without pay - - Fine - - Demotion - - Dismissal 1 50% Not guilty - - Case Withdrawn 1 50%

Total 2 100%

127 Northern Cape Provincial Legislature, Vote 2

11.3 Types of misconduct addressed at disciplinary hearings, 01 April 2012 to 31 March 2013

Type of misconduct Number % of total Absence without approved leave - - Breaching lock-out clause - - Participation in illegal strike - - Insubordination/Improper behaviour (threatening colleagues) - - Absconding - - Poor time keeping - - Not adhering to Procedures, losing documents, poor record keeping, not - - keeping to timeframes Not following reporting lines - - Assault 2 20% Insubordination - Dereliction of duties/Insubordination 1 10% Misuse of Legislature property/Accounts 4 40% Negligence 3 30%

Total 10 100.00 %

128 Northern Cape Provincial Legislature, Vote 2

11.4 Grievances lodged for the period 01 April 2012 to 31 March 2013

Type of misconduct Number % of total Number of grievances lodged 100 % Number of grievances resolved 4 44 % Number of grievances not resolved 5 56 % Total number of grievances addressed 9 100 %

11.5 Disputes lodged with Councils for the period 01 April 2012 to 31 March 2013

Number % of total Number of disputes lodged 3 100 % Number of disputes upheld 1 33 % Number of disputes dismissed 2 67 % Total number of disputes addressed 3 100 %

11.6 Strike actions for the period 01 April 2012 to 31 March 2013

None

11.7 Precautionary suspensions for the period 01 April 2012 to 31 March 2013

Number of people suspended 8 Number of people whose suspension exceeded 30 days 8 Average number of days suspended 232 Cost (R’000) of suspensions R4 214 255

129 Northern Cape Provincial Legislature, Vote 2

12. SKILLS DEVELOPMENT

12.1 Training needs identified 1 April 2012 to 30 March 2013

Occupational Categories Gender Number of Training needs identified at start of reporting employees period as at 01 April 2012 Learnerships Skills Other Total Programmes forms of & other short training course Top Management Female - - - Male 2 2 2 Senior Management Female 3 4 4 Male 3 2 2 Professionally Qualified, Female 6 22 22 Experienced Specialists and Male 11 21 21 Mid Management Skilled Tech & Academically Female 25 46 46 qualified Male 26 49 49 Semi – Skilled and Female 33 47 47 Discretionary Decision Making Male 16 18 18 Unskilled & Defined Decision Female 6 2 2 Making Male 4 1 1 Temporary Employees Female 73 - - Male 62 - - Internship Candidates Female - - - Male - - - Sub Total Female 73 121 121 Male 62 93 93

Total 135 214 214

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12.2 Training provided 1 April 2011 to 30 March 2012

Occupational Categories Gender Number of Training needs identified at start of reporting employees period as at 01 April Learnerships Skills Other Total 2012 Programmes forms & other of short course training Top Management Female - - - Male 2 - - Senior Management Female 3 - - Male 3 - - Professionally Qualified, Female 6 3 3 Experienced Specialists and Male 11 3 3 Mid Management Skilled Tech & Academically Female 25 12 12 qualified Male 26 17 17 Semi – Skilled and Female 33 5 5 Discretionary Decision Male 16 6 6 Making Unskilled & Defined Decision Female 6 3 3 Making Male 4 3 3 Temporary Employees Female 73 - - Male 62 - - Internship Candidates Female - - - Male - - - Sub Total Female 73 23 23 Male 62 29 29

Total 135 52 52

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13. INJURY ON DUTY

13.1 Injury on duty, 01 April 2012 to 31 March 2013

Nature of injury on duty Number % of total Required basic medical attention only 2 100 % Temporary Total Disablement - - Permanent Disablement - - Fatal - - Total 2 100 %

14. UTILISATION OF CONSULTANTS

14.1 Report on consultant appointments using appropriated funds

Project Title Total number of consultants Duration: Work Days Contract value in that worked on the project Rand Labour Consultants 1 121 ( 4 months) R 6 714.00 pm Job Evaluations 1 30 days R 28 842 Total Number of projects Total individual consultants Total duration: Work Total contract value days in Rand 2 2 151 days R28 842

14.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project Title Percentage ownership Percentage Number of Consultants by HDI groups management by HDI from HDI groups that groups work on the project Labour Consultants 0 0 0 Job Evaluations 0 0 0

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14.3 Report on consultant appointments using Donor funds

Project Title Total number of consultants that Duration: Work Contract value in worked on the project Days Rand Not Applicable 0 0 0

Total Number of projects Total individual consultants Total duration: Total contract Work days value in Rand

14.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project Title Percentage ownership by Percentage Number of HDI groups management by HDI Consultants from HDI groups groups that work on the project Not Applicable 0 0 0

15. POPULATION GROUP DISTRIBUTION

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During the 2012/13 financial year, representation from the African population group increased with 1 % from 54 % in April 2012 to 55 % in March 2013. Representation of the Coloured population group decreased with 1% from 36 % in April 2012 to 35 % in March 2013. Representation of the White and Indian population group remained at 8% and 2 % respectively during period April 2012 to March 2013.

The Legislature’s population group distribution in terms of Employment Equity:

African Coloured White Indian Current Profile 54.29 % 35.71 % 7.86 % 2.14% Employment Equity Targets 60.05 % 25.65 % 8.09 % 1.60 % Variance -5.76 % +10.06% -0.23% +0.54 %

*NB analyses is based the average between National & Provincial demographics of the Economically Active Population (EAP) as per the directive from the Department of Labour

In terms of the 11th Commission for Employment Equity Report, with regards to the country’s progress on employment equity, generally, the representation of Coloured population, women and people with disabilities still lags behind at most levels when measured against their Economically Active Population (EAP). Based on the statistics contained in the aforementioned Employment Equity Report, it is reported that in terms of the Economically Active Population (EAP) distribution per province, Africans are in the majority in seven (7) of the nine (9) provinces whereas Coloured population are clearly the majority population grouping in the Western Cape and have a large representation in the Northern Cape.

With regards to the Northern Cape Demographics (Provincial Stats) based on the Economically Active Population versus the workplace profile of the Legislature as at 31 March 2013, there is an under-representation of both the Coloured and White population groups and an over-representation of the African and Indian population group. However, the National Demographics (National Stats) indicates that the African and White population groups are under-represented.

The above analyses based on the average between National and Provincial demographics of the Economically Active Population (EAP) indicates that there is an under representation of employees from the African and White population groups, while there is a slight over representation of employees from the Indian population group.

The analysis further indicates that there is a significant over representation of employees from the Coloured population group. No progress was made in terms of appointing a person with disability. An Employment Equity Plan was drafted and adopted to address the aforementioned deviations during the period 2011 - 2014.

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From the above graph it is clear that from 2009, there was a steady decrease annually of employees from the African population group, while there was a slight increase of employees from the Coloured population group. Representation of employees from the White and Indian population group remained fairly constant over the past 5 years.

16. GENDER COMPOSITION

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Of the 143 employees in the Northern Cape Provincial Legislature 64 are male and 79 are female.

Between 2009 and 2010 female representation decreased sharply, while male representation remained constant during that period. Between 2010 and 2011 the representation of female increased slightly and male representation remained unchanged. During 2011 and 2012 female representation increased steadily while male representation declined sharply. Between 2012 and 2013 there was a steady growth in the representation of both male and female.

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Out of a total of 143 employees, this excludes 1 fixed-term contract appointment. It is disturbing to note that 2.56 % of female employees in the Legislature are employed at post-grade A1-A2, 32.05% at A3-B2, 39.74% at B3-C1, 15.38% at C2-C3, 7.69% at D1-D2 and 2.56% at grades D4-E3. 89.74% of female employees are appointed on grades C3 and below. Representation of female employees on grades D1 to E3 during period January 2013 to March 2013 was 10.26%.

The statistics becomes even more disconcerting when it is considered that only 75 % of all male employees are appointed on grade C3 and below, as opposed to 89.74 % of women, while 43.75 % of men above grade C1 to E3 and only 25.64% of female employees employed at these grades. This indicates that more males than females occupy higher level positions in the Legislature as can be seen in Table 2.2.2.

Twenty-five percent (16 employees) of all males employed at the Legislature are on grades D1 and above in comparison to the 10 % (8 employees) of females in these grades. The Legislature has to give serious attention to the vertical integration of women in the organisation.

17. GENERAL

17.1 Permanent Employees versus Party Political and Temporary Employees

Of the 143 employees in the Northern Cape Provincial Legislature 117 are permanent and 24 are politically linked, 1 employee appointed additional to the establishment and 1 appointed on short fixed term contract.

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18. PERFORMANCE OF THE HUMAN RESOURCES MANAGEMENT AND ORGANISATIONAL DEVELOPMENT SECTION IN TERMS OF THE STRATEGIC OBJECTIVES CONTAINED IN THE STRATEGIC PLAN FOR THE 2012/13 FINANCIAL YEAR

18.1 HUMAN RESOURCES MANAGEMENT

The 2012/13 year was one which presented the Section with many challenges in achieving the strategic objective as contained in the NCPL Strategic Plan. The challenges included the suspension and subsequent disciplinary action taken against the Senior Manager: Corporate Services and the Secretary to the Legislature. The subsequent appointment of officials in acting capacity further caused the destabilization of the Department. The lack of a permanent Senior Manager: Corporate Services has deprived the NCPL of an individual that will support HRM Section strategically and ensure that appropriate resources are allocated to the Section.

The vacancies in the Section during the year further exacerbated the lack of progress in the key performance areas viz. Labour Relations Officer, Senior HR Practitioner and HR Administrator. The position of HR Administrator has subsequently been filled in February 2013 and administrative support has been on the increase since the appointment.

The development of the Human Resources Strategy for the Northern Cape Provincial Legislature remains a challenge and has been prioritised for the 2013/14 financial year. It is imperative that the HR Strategy is developed in line with the NCPL Strategic Objectives and has a dedicated budget aligned to the Strategy in order to ensure that the section can deliver on its mandate.

The absence of an integrated ERP System to ensure the efficient and effective monitoring and control of all Human Resources Management functions. This would alleviate challenges relating to the manual leave, attendance, performance management and overtime systems.

And, finally, the inadequate institutional personnel budget to fill existing vacancies which are critical to the operations of the Legislature remain a challenge. The personnel budget is insufficient to provide for funding for vacant positions, annual performance rewards, annual cost of living increases, the implementation of job evaluations and salary benchmarking exercises.

Notwithstanding all of the above the following achievements in the section can be noted:

• The continuation of the Employee Assistance Programme, even though operational challenges existed, resulted in a usage figure of 14%. T his illustrates the need to address the social, spiritual, psychological, physical and interpersonal spheres of employees well-being on a daily basis. • A successful Wellness Day including voluntary HIV/AIDS testing was held and was well attended by Members and Employees of the Legislature • The majority of the job profiles of the positions on the current organisational structure were reviewed during 2012/13 in preparation for the job evaluation process. This process will be concluded in 2013/14 • The successful and timeous recruitment of 7 suitably qualified employees into vacant funded positions during the 2012/13 financial year • The enhancement of personnel administration through the re-organisation of personnel records filing system • The review of the leave and overtime records to ensure accurate, effective and efficient service delivery • The HRM Section staff attended workshops on Professionalism & Ethics, Policy Development,

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• The Manager: Human Resources Management was elected as secretary of the HR Forum of the Legislative Sector in 2012. This collaboration enhances the sharing of best practices between Legislatures and Parliament, for example, in the establishment of the Legislative Sector Bargaining Forum, establishment of the Performance Management Framework for the Legislative Sector, Harmonisation of Conditions of Service in the Legislative Sector

The development of the Human Resources Strategy within the institution and aligning it with the vision, mission and goals of the Northern Cape Provincial Legislature is a priority. This is the opportunity to strategically position HR in the institution to further enhance service delivery by the Human Resources Management Section.

18.2 ORGANISATIONAL DEVELOPMENT (OD)

18.2.1 MEMBERS CAPACITY BUILDING PROGRAMME

The delivery of the Graduate Certificate inA dvanced Governance & Public Leadership unfolded, as per the schedule established by PALAMA in consultation with the Legislative Sector and WITS University. The Graduate Certificate forms part of Phase II of the approved curriculum framework adopted by the Speakers Forum in 2009. The Graduate Certificate and its constitutive modules was delivered across all nine provinces and at national level. The roll out commenced in July 2012. Seventeen (17) Members of the Northern Cape Legislature was successfully registered on the Graduate Programme with WITS University.

The Northern Cape Legislature hosted the facilitation of two (2) modules while Free State Legislature hosted the remaining two (2) modules. The facilitation, examinations and submission of final projects were concluded by 15 March 2013.

It is with great appreciation that we can convincingly report that all registered Members from the Northern Cape Legislature including Members of the Executive Council portrayed 100% commitment to the programme. This is supportive by the attendance rate, submission of assessment assignments and percentage pass rate per module. It is further evident from the above that Members of the Northern Cape Provincial Legislature have performed exceptionally well in obtaining a guaranteed 100% pass rate for the Post-Graduate Certificate with four (4) Members obtaining an overall pass rate ranging between 70 & 74 %. All seventeen (17) registered Members graduated the Post- Graduate Certificate through WITS on 19 April 2013.

In the midst of the hectic programme of the Legislature, and other party political commitments, the persistence and sheer dedication of ALL Members is awe-inspiring and should be commended and applauded.

The facilitation and administrative support that the OD team rendered to ensure the success of this programme is humbling. The support rendered by the Researchers from the Library and Research Section and Party Political Offices is also acknowledged with appreciation.

Preparations for the delivery of the 3rd phase of the Members Capacity Building Programme, a Post-Graduate Diploma in the Management field of Governance & Public Leadership is underway and will commence in June 2013. This diploma has been developed in partnership with the South African Legislative Sector and emanates from the recognition that capacity development efforts are needed to assist with enhancing political leadership competencies to animate society and address critical economic, social and ecological challenges. This new programme will allow participants to professionalize their practice as political leaders through an intensive one0year postgraduate diploma, with the possibility of progressing to a Masters in Governance and Political Leadership, should they qualify at an appropriate level. All qualifying Members have applied to continue with the third phase of the Members Capacity Building Programme.

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18.2.2 SKILLS DEVELOPMENT

The importance of skills development cannot be over emphasized. From experience, we know that it is competent and talented people who make a difference in the performance of the Institution and ultimately contributes to the achievement of strategic goals and objectives. Improving performance in the workplace and ensuring the development of individuals and teams is central to the work of any Human Resources Development function. Employees in turn, develop trust and confidence in the organization and its leadership, leading to increased commitment to deliver the expected services.

Within the confines of available budget and additional funding from the South African Legislative Support Sector (LSS) and AWEPA, the primary focus of the Workplace Skills Plan for the 2012/13 financial year was based amongst others on two institutional identified key training priority areas to wit:-

(i) Professionalism and Ethics - this was done to ensure that the Legislature build a culture that embraces personal and corporate professionalism and ethics in the Legislature; and

(ii) Conflict & Diversity Management - at the same time the Legislature acknowledged the importance to recognise and appreciate diversity in the workplace and to build a culture that embraces conflict and diversity in a constructive and respectful manner.

Based on departmental and individual needs identified, sixteen (16) different learning and development programmes, which covered a broad spectrum of responsibility areas, took place during July 2012 to March 2013.

The Legislature is commitment to ensure that we acquire practical training interventions that are relevant to the job and to ensure that learning interventions are targeted with greater precision to meet business and personal needs of employees. Our vision is guided by the development of a dedicated, productive and people-centred Legislature staffed by employees whose performance is maximised and whose potential is fully developed via the comprehensive provision of appropriate and adequate learning and development interventions. The Northern Cape Provincial Legislature wishes to acknowledge the South African Legislative Support Sector (LSS) and AWEPA for the additional funding proposals towards our skills development initiatives.

18.2.3. BURSARIES GRANTED DURING THE 2012/2013 ACADEMIC YEAR

The Northern Cape Provincial Legislature acknowledges that South Africa is presently experiencing political, economic and social change in which human resource capacity plays a pivotal role in uplifting society. The Legislature therefore supports the development, availability and the retention of skilled human capital in the Legislature. The Bursary fund is a means by which the Legislature aims to assist employees to develop themselves by studying through SAQA accredited and registered institutions. For the 2012 academic year, eighteen (18) employees were awarded 100% bursaries.

“What we celebrate and honor, tells us something about what we value as an Institution. At the Legislature, we value a number of things in employees, and among those things that we value is the willingness to work hard to excel academically”. Since the inception of the Bursary Policy in 2006, it is evident that there are milestone achievements that the Legislature and employees can look back on and take pride for the return on investment that was realized. Through the Bursary Scheme, the Legislature managed to raise the qualification levels of employees ranging from NQF Level 4 – to as high as NQF Level 8.

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18.2.4. BUILDING WORKPLACE RELATIONS

What is true about the relationship between a company and the outside world is equally true about relationships within the company. Sound relationships are crucial among the members of a team, between management and employees, between a company and its unions and, among different departments, so that these groups may cooperate with one another to achieve the overall goals of the organization.

The Legislature in partnership with the representative traded union, NEHAWU and the CCMA as a third party facilitator, embarked on a Building Workplace Relations (BWR) process which includes the involvement of external facilitation to help identify shortcomings in the mechanisms and procedures of the interactions and relationship between management and the labour union of the Legislature. The key to a relationship-building effort is a sincere acknowledgement by both parties (management & labour) that their relationship is difficult or unproductive, and that this situation should not continue. As the initial phase to the process, a pre-scoping meeting with an appointed Commissioner from the CCMA as the external facilitator, to assist in analysing the need for the BWR, process took place in February 2013. A two day work session on Improving Workplace Relations for a selected Management Team and NEHAWU will take place in June 2013.

18.2.5. ORGANISATIONAL STRUCTURE REVIEW

Organisational design is concerned with aligning the structure of an organization to its strategies and objectives. It is a formal, guided process for integrating people, information and technology of an organization to improve the probability that the goals will be met.

To re-align the newly defined strategies, objectives and institutional priorities subsequent to the emerge of the 4th Legislature, Senior Management in consultation with the Speaker embarked on an internal process to review the current Organisational Structure which commenced in September 2010. A draft Organisational Structure was presented to the Standing Committee on Rules on 26 January 2012.

Communication is the cornerstone of any process. involving employees in any process from the onset ensures their buy-in and commitment to the process. Management in recognising their obligation in terms of providing and communicating institutional direction or change to employees, briefed employees of Managements intention to re- structure and the need to revise the current organisational structure.

Extensive consultation took take place with all relevant stakeholders, to wit, the Hon Speaker, Standing Committee on Rules, the Secretary to the Legislature, Management Committee, Management Coordinating Committee, NEHAWU and employees, where opportunities for input was granted. The OD Section together with the Human Resources Manager embarked on a journey to communicate the changes to the proposed Organisational Structure and the processes that are related to the review of an Organisational Structure including the review of Job Descriptions and Job Evaluation process during the 2012/2013 financial year.

The sessions commenced in July 2012. The process unfolded well and all Sections/Departments were consulted and briefed on the proposed changes to the Organisational Structure by end of March 2013. The communication process in this regard also allowed inputs from the representative trade union, NEHAWU. We experienced some challenges in terms of matching the availability of responsible line-managers, employees and the programme of the Legislature during the consultation process. This together with other institutional challenges hampered the progress in concluding this process during the 2012/2013 financial year as anticipated. T he consultation process with employees and management is still currently underway.

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PART 5: OTHER INFORMATION

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5. OTHER INFORMATION Acronyms/abbreviations “AO” stands for Accounting Officer “accounting officer” means the Secretary, charged by the Speaker in terms of Section 28A(2) of the act and it terms of Section 2(3) of the Northern Cape Provincial Legislature Service Act, 1995 (Act No. 6 of 1995) with the receipt, custody and control of money and property of the Legislature and shall include the officer acting as such when the accounting officer is absent or otherwise unable to perform his functions or during a vacancy; “Accounting Standards Board” means the board established in term of Section 87 of the Public Finance Management Act; “Act” means the Northern Cape Powers and Privileges of the Provincial Legislature Act, 1994 (Act No.6 of 1994), as amended by the Northern Cape Powers and Privileges of the Provincial Legislature Amendment Act, 1996 (Act No. 3 of 1996); “audit committee” means the committee established in terms of paragraph 32 of the Code; “Auditor-General” means the Office of the Auditor-General; “Budget Committee” means the Subcommittee on the Legislature Budget referred to in paragraph 9 of the Code ; “chief financial officer” means the incumbent who occupies the post, in terms of the approved establishment and designated by the accounting officer to serve on the Management Committee and charged with the duties and responsibilities prescribed by paragraph 8 and elsewhere in the Code; “code” means the “code for the Financial Administration of the Northern Cape Provincial Legislature’ approved by the Speaker in terms of Section 28A of the Act; “committee” means any committee of members of the Legislature established in terms of Section 116(2) of the Constitution and the Rules of the Legislature; “Constitution” means the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996); “Deputy Speaker” means the person elected in terms of Section 111 of the Constitution and Rule 20 and acting as Speaker whenever the Speaker is absent or unable to perform the functions of the Office of the Speaker or whenever that office is vacant; “Executive Council” means the Executive Council of the Northern Cape Province as referred to in Section 132 of the Constitution; “financial year” means the period commencing on the first day of April in a year up to the thirty first day of March in the following year, both days inclusive; “financial related matter” means a matter or issue that might have influence on the financial management and administration and resources of the Legislature in terms of the normal meaning of the words and as intended in the context of the applicable paragraphs of the Code; “fruitless and wasteful expenditure” means expenditure which was made in vain and would have been avoided had reasonable care been exercised; “House” means members of the Legislature assembled together in the Chamber for the purposes of conducting parliamentary business; “Information Technology Committee” means the committee referred to in paragraph 28 of the Code ; “irregular expenditure” means expenditure, other than unauthorized expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation; “Legislature” means the Legislature of the Northern Cape Provincial as contemplated in Section 104(1) of the Constitution; “Management Committee” means the Legislature’s Top Management referred to in paragraph 4; “MEC for Finance” means the member of the Executive Council of the Northern Cape Province responsible for finance in the province; “MPL” stands for Member of Provincial Legislature “member” means a member of the Northern Cape Provincial Legislature

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“NCPL” stands for Northern Cape Provincial Legislature “NCPPF” stands for Northern Cape Political Party Fund “NCPL” stands for Northern Cape Provincial Legislature “officer” means the Secretary and any other person who may be appointed to the staff of the Legislature; “overspending” in relation to a vote, means when expenditure under a vote exceeds the amount appropriated for that vote or a main division within a vote; “political parties” means political parties represented in the Legislature; “prescribe” means prescribe by regulation and “prescribed” has a similar meaning; “province” means the Northern Cape Province as established by section 103(1)(g) of the Constitution of the Republic of South Africa, 1996; “provincial treasury” means a treasury established in terms of section 17 of the PFMA; “quarter” means the following periods in a financial year: • 1 April to 30 June; • 1 July to 30 September; • 1 October to 31 December; or • 1 January to 31 March; “Procurement Committee” means the committee referred to in paragraph 25 of the Code; “PFMA” stands for the “Public Finance Act” means the Public Finance Management Act, 1999 (Act No. 1 of 1999) and includes regulations and Treasury Instructions issued in terms thereof; “Revenue Fund” means the Northern Cape Provincial Revenue Fund mentioned in Section 226 of the Constitution; “Rule” means a provision in the Rules of the Legislature in terms of Section 116(1) of the Constitution and as approved by the Rules Committee; “Rules Committee” means the committee appointed by the Speaker in terms of Rule 30(1), inclusive of the Speaker as chairperson and the Deputy Speaker; “standards of generally recognised accounting practice” means an accounting practice complying with standards issued by the Minister of Finance on the advice of the Accounting Standards Board; “Secretary” means the Secretary to the Legislature appointed by resolution of the House as chief executive officer, being responsible for the administration of the Legislature and designated by the Speaker as accounting officer in terms of Section 28(2) of the Act. “Speaker” means the person elected by the Legislature in terms of Section 111 of the Constitution and charged, in terms of Section 3(2)(b) of the Public Finance Act, with the controlling and supervisory functions of the National Treasury and the Treasury in terms of the applicable provisions, or Deputy Speaker; “unauthorized expenditure” means the overspending of a vote or a main division within a vote and includes expenditure not in accordance with the purpose of a vote or the main division within a vote. “vote” means that portion of the Legislature’s budget which forms part of an appropriation Act and which specifies the total amount of funds to be appropriated from the Provincial Revenue Fund for the Legislature.

List of Contact Details

The Acting Secretary to the Legislature: Mr. PB Moopelwa

Telephone: (053)8398014 Fax: (053)8398094 E-mail: [email protected]

144 AnnuAl RepoRt For the yeAr ended 31 MaRch 2013

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