2018-Kwazulu-Natal-Transport-Annual-Report.Pdf

transport Department: Transport PROVINCE OF KWAZULU-NATAL

DEPARTMENT OF TRANSPORT 2017 2018 Annual Report

1 ROAD SAFETY IS OUR COLLECTIVE AnnuAl Repo RESPONSIBILITY.Rt | 2017 - 2018 A Women of fortitude

#MaSisulu100 In 2018 South Africa will mark the centenary of the life of Albertina Sisulu, a fearless champion of democracy and human rights. The centenary celebrations will run for the entire year and will be marked by a series of commemorative events.

#MaSisulu100 A 2Woman Annuof Fortitudehttps://www.gov.za/masisulu100Al RepoRt | 2017 - 2018 Be The Legacy

#NM100 #BeTheLegacy

AnnuAl RepoRt | 2017 - 2018 3 transport Department: Transport PROVINCE OF KWAZULU-NATAL

KwaZulu-Natal Department of Transport Annual Report 2017/18

Mr. T. M. Kaunda, MEC for Transport and Community Safety and Liaison

I have the honour of submitting the Annual Report of the Department of Transport for the period of 1 April 2017 to 31 March 2018.

MR. T.M. KAuNDA MEC foR TRANSpoRT, CoMMuNiTy SAfETy AND LiAiSoN

4 AnnuAl RepoRt | 2017 - 2018 contents

pART A: GENERAL iNfoRMATioN ...... General Information ...... List of Abbreviations /Acronyms ...... Foreword by Minister/MEC of Department ...... Report of the Accounting Officer...... Accounting Officer’s Statement of Responsibility for Annual Report ...... Strategic Overview ...... Legislative and Other Mandates ...... Organisational Structure ...... Entities Reporting to the MEC ...... pART B: pERfoRMANCE iNfoRMATioN ...... Overview of Departmental Performance ...... Strategic Outcome Orientated Goals ...... Performance Information by Programme ...... Transfer Payments ...... Conditional Grants ...... Donor Funds ...... Capital investment ...... pART C: GovERNANCE ...... Introduction ...... Risk Management ...... Fraud and Corruption ...... Minimising Conflict of Interest ...... Code of Conduct ...... Health Safety and Environmental Issues ...... Portfolio Committees ...... SCOPA Resolutions ...... Prior Modifications to audit reports ...... Internal Control Unit ...... Internal Audit and Audit Committee ...... Audit Committee Report ...... pART D: HuMAN RESouRCE MANAGEMENT...... Introduction ...... Human Resources Oversight Statistics ...... pART E: fiNANCiAL iNfoRMATioN ...... Report of the Auditor General ...... Annual Financial Statements ......

3: ANNExuRES ...... Annexure A: Statement of Responsibility and Confirmation of Accuracy ...... Annexure B: Report of the Audit Committee ...... Annexure C: Specimen of the Annual Report ......

AnnuAl RepoRt | 2017 - 2018 5 transport Department: Transport PROVINCE OF KWAZULU-NATAL

physical Address Inkosi Mhlabunzima Maphumulo House 172 Burger Street Pietermaritzburg 3201 postal Address Private Bag X9043 Pietermaritzburg 3200 Contact Telephone Numbers 033- 3558600

Website Address: www.kzntransport.gov.za

pR252/2018 iSBN: 978-0-621-46508-2

INKOSI MHLABUNZIMA MAPHUMULO HOUSE

6 AnnuAl RepoRt | 2017 - 2018 MEC for Transport, Community Safety and Liaison Mxolisi Kaunda delivering the 2017/2018 budget vote at the KZN Legislature Photo: Mbuyiselo Ndlovu

pART A General Information

AnnuAl RepoRt | 2017 - 2018 7 Part A GENERAL iNfoRMATioN Part A GENERAL iNfoRMATioN

LiST of ABBREviATioNS / ACRoNyMS

DpSA Department of Public Service and Administration eNaTiS Electronic National Administration Traffic Information System EHW Employee Health and Wellness EpMDS Employee Performance Management and Development System ERM Enterprise Risk Management EpWp Expanded Public Works Programme GpSSBC General Public Service Sectorial Bargaining Council GiAMA Government Immovable Asset Management Act GWEA Government Wide Enterprise Architecture Project HoD Head of Department HEi(s) Higher Education Institutions Hiv Human Immunodeficiency virus HR Human Resource KZN KwaZulu-Natal LSD Legal Services Directorate MAS Management Advisory Services MTEf Medium Term Expenditure Framework MEC Member of Executive Committee NEHAWu National Education and Allied Workers Union oSD Occupational Specific Dispensation pRASA Passenger Rail Agency of South Africa pMDS Performance Management and Development System pALAMA Public Administration Leadership and Management Academy pSC Public Service Commission pSCBC Public Service Coordinating Bargaining Council pSi Public Service Induction pGDp Provincial Growth and Development Plan pGDpS Provincial Growth and Development Strategy pToG Public Transport Operations Grant popCRu Police and Prisons Civil Rights Union RRD Roads for Rural Development RNi Roads of National Importance RRTf Rural Road Transport Forum SACCo Savings Clubs and Savings & Credit Cooperatives SACCo Savings and Credit Co-operatives SETA Sector Education and Training Authority SMS Senior Management Service SARS South African Revenue Services SCM Supply Chain Management SiTA State Information Technology Agency Sip2 Strategic Infrastructure Projects 2 TB Tuberculosis vECA Vukuzakhe Emerging Contractor’s Association

8 AnnuAl RepoRt | 2017 - 2018 Part A GENERAL iNfoRMATioN Part A GENERAL iNfoRMATioN

MEC for Transport, Community Safety and Liaison Mxolisi Kaunda sharing a light hearted moment with a senior citizen from Kwa-Gwebu near Vryheid during a christmas celebration with the elderly. Photo: Mbuyiselo Ndlovu

AnnuAl RepoRt | 2017 - 2018 9 Part A GENERAL iNfoRMATioN Part A GENERAL iNfoRMATioN

Strategic overview

vision The department’s vision is: Prosperity through mobility. Mission statement The Department’s mission is: We will strive to provide the public with mobility through an affordable transportation system that is safe, integrated, regulated and accessible, to meet the developmental needs of our province. values The values of the department emanate from the Batho Pele principles. The department’s values are: • Teamwork • Integrity • Commitment to serve • Leadership • Value for Money

Strategic goals The department’s strategic goals are summarised as follows: • provide mobility and accessibility within the province to achieve 32,890 kilometres of maintained road infrastructure by 2020 The department seeks, through co-operative governance, to plan, design and construct access roads and bridges (including pedestrian bridges) to communities, with the aim of improving the quality of people’s lives thereby striving to achieve an equitable, balanced and well maintained road network in a manner that stimulates economic growth and development. • Promote an integrated transportation system through developing 3 IPTN Operational Plans. The department seeks to provide, promote and develop a well-managed, integrated land transportation system and infrastructure, optimising all modes of transport and to ensure accessibility for people and goods in 3 municipalities i.e. Hibiscus Coast Municipality, KwaDukuza Municipality and UMkhanyakude District Municipality.Create and promote a safe road environment by decreasing road fatalities by 30% (545/1,819) in 2020. • Provide and promote a safe road environment by decreasing road fatalities by 30% (545/1,819) by 2020. The Department seeks to provide a safe, regulated road environment for all road users (motorised and non-motorised) through Education, Enforcement, Engineering and Evaluation. • Promote sustainable economic transformation through developing 2 empowerment programmes. The department will promote and support sustainable economic transformation through empowerment programmes and policies.

Legislative and other Mandates The key legislative mandates of the department are derived mainly from the following legislation: • Administrative Adjudication of Road Traffic Offences Act (Act No. 46 of 1998) • Broad-Based Black Economic Empowerment Act (Act No. 53 of 2003) • Cross-border Act (Act No. 4 of 1998) • Intergovernmental Relations Framework Act (Act No. 13 of 2005) • KZN Provincial Minibus Taxi Act (Act No. 4 of 1998) • KZN Provincial Roads Act (Act No. 4 of 2001) • KZN Provincial Supply Chain Management Policy Framework (2006) • KZN Public Transport Act (Act No. 3 of 2005) • KZN Road Traffic Act (Act No. 7 of 1997) • National Land Transport Transition Act (Act No. 22 of 2000) • National Roads Act (Act No. 54 of 1971) • National Road Traffic Act (Act No. 93 of 1996) • Preferential Procurement Policy Framework Act (Act No. 5 of 2000) • Public Finance Management Act (Act No. 1 of 1999, as amended) and Treasury Regulations • Public Service Act (Act No. 103 of 1994) and Regulations • Road Traffic Act (Act No. 29 of 1989) • Road Traffic Management Corporation Act (Act No. 20 of 1999) • The Constitution of the Republic of South Africa (Act No. 108 of 1996) • Construction Industry Development Board Act (Act No. 38 of 2000) • Urban Transport Act (Act No. 78 of 1977)

10 AnnuAl RepoRt | 2017 - 2018 Part A GENERAL iNfoRMATioN Part A GENERAL iNfoRMATioN

Transport, Community Safety and Liaison MEC Mxolisi Kaunda together with learners walking across the Nyakana Uthukela Bridge that connects KwaDukuza, Mandeni and Umlalazi Local Municipalities. Photo: Mbuyiselo Ndlovu

AnnuAl RepoRt | 2017 - 2018 11 MR. T.M. KAuNDA MEC: Transport, Community ORGANOGRAM Safety and Liaison ORGANISATIONAL STRUCTURE MR. B.S. GuMBi Head of Department

MR. S.S. NKoSi MS. S. NGuBo Deputy Director General: MS. f.M. SiTHoLE Acting Deputy Director Transport Infrastructure & Deputy Director General: General: Regional Services Transportation Services Corporate Management Services

MR. L.x.K. MTAMBo vACANT MR. S.j. LuNGA vACANT MS. M.C. ZWANE Chief Director: Chief Chief Director: Chief Director: Chief Director: Empangeni Region Director: Provincial Regulatory Public and Freight Human Resource Traffic Management Entity Transport Management

MR. S.H. NTuLi MR. j.S. MBHELE Acting Director: MR. S.A. THWALA vACANT Chief Director: MS. T.p. MABASo Public Transport Director: Director: Durban Region Director: Monitoring and Public Transport Human Resource Road Safety Compliance Services Practices

MR. v. CHETTy vACANT MS. B.N.p. NoGWANyA Director: MS. N. HLopHE MR. C. STRETCH Director: Chief Director: Road Traffic Director: Director: Human Resource Ladysmith Region Inspectorate Regulation & Support Freight Transport Development

MR. S. SiTHoLE MS. B.N NToMBELA MR. S.M. MNoMiyA MS. T.v. NZuZA Chief Director: Director: vACANT Director: Public Transport Director: Public Pietermaritzburg Director: Transportation Policy Labour Relations Region Enforcement Regional Support Services Planning

vacant Director: MS. p.f. SiBiyA Motor Transport Director: Services Construction

vACANT Director: Engineering Services

MS. S. MNGoMEZuLu Acting Director: Technology Tranfer

M S. p. SiTHEBE Acting Director: Expanded Public Works Programme

12 AnnuAl RepoRt | 2017 - 2018 MR. T.M. KAuNDA MEC: Transport, Community transport Safety and Liaison Department: Transport PROVINCE OF KWAZULU-NATAL

MS. T.T. MBoNAMBi MS. D.B. MNyANDu Director: Director: MR. W. EvANS MR. S. KHuZWAyo Executive Support Internal Control & Chief Director: Director: Risk Management Financial Services Ministerial Support

MS. B.N.p. NoGWANyA MS. G.p. xABA Chief Director: Chief Director: MR. N. SuKAZi MS. p.p. S iTHoLE Financial and Strategic Chief Director: Acting Director: Management Management Communications Legal Services Accounting

MR. K.N. NCALANE MS. K. GouNDER MR. p. DoRKiN Director: Director: MR. T.N.A. NKoSi Director: Media Liaison and Corporate Support Director: Policy and Planning Public Relations Services Financial Accounting

MR. N.p. NDAMANE MS. L. MDLETSHE MS. N.N. MCETyWA Director: Information MS. S. KuNENE Director: Director: Technology Director: Empowerment Communication Management Management Programme Support Services Accounting

MS. B.T. DuZE MR. T.N.A. NKoSi Director: MS. v.N. DLADLA Acting Director: Monitoring and Director: Supply Chain Evaluation Security Services Management

MR. S. NGCoBo Director: Organisational Development

AnnuAl RepoRt | 2017 - 2018 13 Transport, Community Safety and Liaison MEC Mxolisi Kaunda plants a tree as part of his 67 minutes community work during the Nelson Mandela Day in the Zululand District. Photo:Mbuyiselo Ndlovu

14 AnnuAl RepoRt | 2017 - 2018 AnnuAl RepoRt | 2017 - 2018 15 Aerial view of P577 that was officially named after Dumisani Makhaye as part of the Department of Transoport’s road naming and renaming project. Photo:Mbuyiselo Ndlovu

16 AnnuAl RepoRt | 2017 - 2018 foREWoRD By THE MEC

Mr. T.M. Kaunda MEC for Transport, Community Safety and Liaison

We remain resolute with our focus on implementing the provincial and country’s economy toward addressing the Radical Socio-Economic Transformation programme, dubbed triple challenges of unemployment, poverty and inequality, IGULA for Inclusive Growth, Unity and economic Liberation confronting our society. For this reason, we will continue to of Africans in particular and blacks in general, which tops strive for a Transport Sector Charter-driven approach to our the agenda of our Department. In the last financial year, economic transformation plans. the Provincial Executive Council approved our IGULA programme, and we are now advancing with the execution As well, plans are advanced towards attaining approval of the and implementation of its pillars. department’s new structure, which caters for new planning approaches undertaken at Head Office, and introduces the We are doing this in tight alignment with our strategic plan, already adopted Service Delivery Model, that will ensure departmental mandate of providing roads and transportation that Regional Offices are the centre of service delivery. All infrastructure, creating a safe road environment and of these changes imply the need to continuously build promoting the empowerment of all communities, especially capacity of the department, to update policies and improve the underdeveloped rural communities. This is borne out by systems and processes our interventions augment efforts to the continued emphasis on developing roads and building achieve a clean, accountable and prudential administrative pedestrian and vehicular bridges in communities most in governance. need, including those whose citizens face the difficulty of crossing flooding rivers to reach schools, clinics and other amenities. ______MR. T.M. KAuNDA Transformation in our view encompasses change of mind- MEC foR TRANSpoRT, CoMMuNiTy SAfETy AND LiAiSoN sets of both public servants but also of all stakeholders in society. This equally goes for our existing service providers and the targeted beneficiary sectors. It should lead to a change in the department’s spending patterns to be representative of provincial demographics and benefit those who were marginalized before. It will also lead to a big shift in the way increase the participation of targeted sectors; namely Women, Youth, People with Disabilities and Military Veterans.

Also, quite importantly, economic transformation should be manifested by the creation of more opportunities in our

AnnuAl RepoRt | 2017 - 2018 17 REMARKS By THE ACCouNTiNG offiCER

We are reporting the performance of the KwaZulu-Natal management of government resources, which is ultimately Department of Transport for the financial year (2017/18), measured through the improvement of our audit outcomes. with only one more year before the end of the five-year That is why we are focusing on financial prudence and value administrative term of government. Over the last four for money. years, we have worked hard to deliver services in-line with A critical part of this transformation will also be focused on our stated goals as per our strategic plan and departmental information and communications technologies, ensuring mandate. in each of the programmes, in the subsequent that we automate our processes to improve reporting and pages, we give detail report of our performance. monitoring of our service delivery programmes. This is in This entailed building roads and bridges, providing line with the phase of the Forth Industrial Revolution and increased access to safe and affordable public transport improving service delivery. services, and ensuring that there is law enforcement and We approach this era of intensified and escalated socio- compliance in line with the National Land Transport Act. economic transformation emboldened by the executive furthermore, we remained seized with the issue of road support and able leadership of our Political Authority, MEC safety, which continues to be an area of great concern. In Mxolisi Kaunda, and the entire government leadership. the year under review we are reporting on the work done on our part, we will do all in our power to involve all in an attempt to save lives and ensure the enforcement of stakeholders, as we should, and engage citizens of the traffic regulations. It is absolutely critical that we save the province. lives of all road users, because this is key to our continued socio-economic development and growth. Going forward, we will continue to deliver services effectively by improving our departmental processes and systems. We will also deliver services guided by the ...... national and strategic objectives of government as captured MR. B.S. GuMBi in the National Development Plan as well as our Provincial HEAD: TRANSpoRT Growth and Development plan. importantly, we will also strongly focus on adapting our Strategic Plan to integrate the radical socio-economic transformation policy thrust across all our departmental programmes. In the financial year 2018/19, and going forward, we will work to implement the new departmental policies, especially the Radical Socio-Economic Transformation Policy (dubbed IGULA) and supporting Supply Chain policies, while improving systems and processes to close capacity and service delivery gaps. We will continue to drive the turn-around strategy of our department, to realise operational improvements and service efficiencies. Moreover, these changes are and will be implemented to have the tangible effect of improving our

18 AnnuAl RepoRt | 2017 - 2018 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm resources (HR) information as well as the annual financial the following: statements. All information and amounts disclosed in the annual report The external auditors are engaged to express an independent are consistent with the annual financial statements audited opinion on the annual financial statements. In my opinion, by the Auditor-General. the annual report fairly reflects the operations, performance The annual report is complete and is free from any omissions. and HR information as well as the financial affairs ofthe It has been prepared in accordance with guidelines on the department for the financial year ended 31 March 2018. annual report as issued by National Treasury. The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks as well as guidelines issued by the National Treasury...... The Accounting Officer is responsible for the preparation of MR. B.S. GuMBi the annual financial statements and for the judgments made HEAD: TRANSpoRT in this information. The Accounting Officeris also responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance with regard to the integrity and reliability of the performance and human

AnnuAl RepoRt | 2017 - 2018 19 MEC for Transport,20 CommunityAnnuAl Repo SafetyRt and | Liaison2017 - 2018Mxolisi Kaunda interacting with a commuter at Pinetown Taxi Rank. Photo:Mbuyiselo Ndlovu Mvumase Uthukela River Pedestrian Bridge constructed over the Uthukela River in the Maphumulo Local Municiplity. PHOTO:MBUYISELO NDLOVU

pART B Performance Information

AnnuAl RepoRt | 2017 - 2018 21 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN pRoGRAMME 1: ADMiNiSTRATioN

The purpose of this programme is to provide the Department with the overall management and administrative, strategic, financial and corporate support services in order to ensure that it delivers on its mandate in an integrated, efficient, effective and sustainable manner. This includes publicly funded goods and services utilised for governance, management, research and administration, as well as general office services. In our continued efforts of building a responsive, accountable, efficient and service delivery oriented Department we have fast tracked the organisational restructuring, which will position the Department to implement the IGULA Radical Socio-Economic Transformation Programme. The organisational structure and its costing have already been endorsed by Provincial Treasury and currently going through approval process up the line through the Office of the Premier, and ultimately the Department of Public Service and Administration. During the year under review, we have also made great progress in increasing equity in the Department. Women’s representation in Senior Management Service (Levels 13 to 16) rose from 50% to 52.78%. Women also make up 47.4% of the total permanent employee population of 3 585 of middle management and 43% of junior management. The percentage of people with disabilities now sits at 1.20%. Our commitment to clean governance remains paramount with work having started to implement a turnaround strategy to help improve the audit performance and service delivery. This has involved implementing Supply Chain Management reforms that integrate progressive changes brought about by the Preferential Procurement Policy Framework regulations amendments announced in the last financial year (2016/2017). We are further continuing to review and align all our policies, systems and process with our vision of advancing radical socio-economic transformation. This entails ensuring that all Senior Managers integrate within their Performance Agreements, the responsibility to ensure compliance with, and achievement, of the IGULA objectives.

Jozini RTI Station Commander Gugu Zuma, Durban Regional Chief Director Sboniso Mbhele and Hluhluwe Cost Centre Principal Road Safety Officer Thembi Mgwili-Mthethwa scooped awards at the 4th Annual Transport Awards Ceremony. ZiNgisA hlAthi

22 AnnuAl RepoRRtt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN pRoGRAMME 2: TRANSpoRT iNfRASTRuCTuRE

The purpose of this programme is to promote accessibility, safe, affordable movement of the people, goods and services through the delivery and maintenance of transport infrastructure that is sustainable, integrated and environmentally sensitive, which supports and facilitates social empowerment and economic growth. This programme includes all expenditure of a current and capital nature relating to the planning, design, construction, rehabilitation, maintenance and repair of all infrastructure supporting all modes of transport. It also includes project expenditure on the Expanded Public Works Programme implemented in support of the infrastructure provision. The programme’s functions are aligned to achieve the Department’s Strategic Goal, which is to “Provide mobility and accessibility within the province to achieve 32, 890 kilometres of maintained road infrastructure by 2020”. In order to achieve the Department’s overall Strategic Goal 1, Programme two therefore has the following two strategic objectives: • To construct 1 090 kilometres of new gravel roads and 65 pedestrian bridges and 35 major vehicle bridges • To intensively maintain the road network so that poor to very poor condition of the road network is reduced to 30% by the 2019/2020 financial year.

Linking Communities to social amenities The Department of Transport is working hard to reduce the infrastructure backlog. In total, 18 bridges were completed during the year under review. In response to the need to link communities with social amenities, the department completed the construction of three bridges in the ILembe District. The completion of these bridges has enabled learners to safely cross Uthukela River in order to reach schools and other destinations. Prior to the construction of these bridges, learners had to cross through the Uthukela River to access their schools which led to incidents of drowning and a high rate of late coming and school absenteeism averaging two to three weeks. The three bridges constructed and completed as part of the intervention are: • The Nyakana uthukela River Bridge, is a vehicular bridge constructed at an investment of R89.5 million with a provision for pedestrian crossing, serves learners and communities from Mankenganeni community on the northern side of the river. It links Umlalazi and KwaDukuza Local Municipalities. The benefitting learners attend the Nyakana Combined School, Banguni High School and Tshelabantu Combined School within the Emdlebeni community on the southern side of the river.

• Mabhobhane uthukela River Bridge links Umlalazi and Maphumulo Local Municipalities and assists school learners attending Inkonjane Primary School, Embusweni Primary School, Inkonjane Secondary School, Phandaphansi Primary School and the Mpungeni Primary School. This bridge was constructed for an investment of R130.8 million. In addition, this bridge links District Road D1533 to main road P710, and will also provide a much-needed link to the towns of Mandeni and Eshowe.

• Mvumase uthukela River pedestrian Bridge, built for R9.5 million, links Umlalazi and Maphumulo municipalities and assists learners who attend Mvumase, Empungeni and Siyacothoza primary schools; and the Ezithabeni Senior School. It also provides access to the Uqaqeni and the Mtabaqumbi Provincial Clinics.

AnnuAl RepoRt | 2017 - 2018 23 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Infrastructure Projects completed in the 2017/18 financial year also include: • Main road P230, located between Eshowe to Empangeni, comprising the upgrade of 31.3 kilometres from gravel road to black top surface. • Main road P577 now officially known as Dumisani Makhaye Drive, after its official opening by the then President Jacob Zuma, on 02 December 2017. The 14.86 kilometre road traverses from Duffs Road to KwaDabeka. The Ethekwini Metropolitan Municipality is constructing the rapid bus transit system on the road; • Main road P58 which is 4.28 kilometres traverses from KwaMachi to Ezingolweni, linking Umziwabantu and Ray Nkonyeni Local Municipalities; • Main road P255 in Ethekwini linking Inanda Road, Hillcrest and Waterfall is 6.1 kilometres; • D1251 in Inkosi Langalibalele Municipality, which traverses from Mqendaba to Loskop is 3.6 kilometres; • Main road P271 in eDumbe between Paulpietersburg and Vlakplaats comprising the upgrade of 14 kilometres; • P499 which runs between KwaMbonambi and Dondotha is 12.8 kilometres; and • The Dambuza roads built in Msunduzi Local Municipality run up to 1.28 kilometres.

Roads naming and renaming legacy project The Department also officially launched the Roads Naming and Renaming Project during the financial year under review with the official opening of the Dumisani Makhaye Drive that was officiated by former President Jacob Zuma. The Roads Naming and Renaming Legacy Project aims to achieve social transformation objectives and will ensure that citizens of this province identify and derive pride in associating with the names of our roads.

Leaners from Nyakana Combined School and Tshelabantu Combined School crossing over the newly constructed Nyakana River Bridge . Mbuyiselo Ndlovu

24 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN pRoGRAMME 3: TRANSpoRT opERATioNS

The purpose of this programme is to plan, regulate and facilitate the provision of integrated land transport services through co-ordination and co-operation with national planning authorities, CBO’s, NGO’s and the private sector in order to enhance the mobility of all communities particularly those currently without or with limited access. This includes all costs involved in Public Transport management and service delivery including the planning, co-ordination of the operator in the transport industry. Learner Transport and Safety Learner Transport remains a basic, yet critical service for learners mainly in rural and underdeveloped areas to access education. Without this service, learners who have to travel a distance of more than three kilometres would be deprived of accessing educational facilities During the year under review, the Provincial Executive Council supported and approved the recommendation to transfer this service back to the Department of Education. The Department of Transport will continue to perform its mandated role of ensuring compliance to Road Traffic Rules by service providers, to ensure the safety of the learners. Subsidised public Transport Services The department is continuing its efforts of increasing the participation of African bus operators in the Subsidised Public Transport Services. The Department is seeking new innovative ways of achieving transformation in this sector within the ambit of the IGULA Radical Socio-Economic Transformation programme and guided by the Bus Commuter and Coach Sub-sector codes. improving Road Safety The journey towards achieving a safe road environment has been marked by progress and regress at the same time. Following a spate of road crashes during the year under review, the Department held a Road Safety workshop in September where it was agreed that the Department’s Road Safety campaigns had to be revitalised. This would be done through improving coordination and management through the establishment of a Road Safety Advisory Board that integrates all key stakeholders, enforces an integrated planning across Enforcement, Engineering, Road Safety and Communications as well as revising key performance indicators. In the 2017 festive season, the Department recorded a 10% reduction in road crashes and fatalities. The Department is hoping to build on this achievement moving forward. This will be achieved by increasing investment in road safety education, awareness and in intensifying our collaboration across all law enforcement agencies.

Multi Law Enforcement Road Block at Marianhill Toll Plaza PHOTO: MBUYISELO NDLOVU

AnnuAl RepoRt | 2017 - 2018 25 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

PROvINCIAL REGULATORy ENTITy (PRE) Taxi industry peace and stability Pursuant to its mandate to ensure regulation of public transport, the PRE has made strides in ensuring that the public transport industry is stable and it provides safe and reliable services to the community. One of the pervasive challenges that continue to plague the industry is conflict, which is often violent in nature and the existence of a large number of illegal operators. During the year under review, the Department had to, under section 91 of the National Land Transport Act of 2009, suspend the operations of both Sizwe Transport and Klipriver taxi associations due to the violence that took many lives in the area of Emnambithi in the Alfred Duma Local Municipality. Continuous interventions and engagements with the operators and the community at large have clearly indicated that the conflict is not an industry conflict, but it is perpetrated by individuals for their personal gain. Mpumalanga and Hammarsdale has been another area where violence has claimed a number of lives of operators of the Mpumalanga and District Taxi Association. The Department’s observation is that there has been strong involvement of criminal elements whoare attempting to take over the association from the current legitimate operators. The murders of the leaders of Dolphin Coast Taxi Association are an indication of internal power struggles, where individuals are hungry for the control of the association and its resources. The Department however remains focused on ensuring that the industry is peaceful and stable. It is for these reasons that we have introduced the Rank Management System. Security measures have already been implemented in Newcastle, which include physical security, installing CCTV cameras and a vehicle identification system.

Regulation of Public Transport The Department is also working hard to assist municipalities to strengthen their capacity to take responsibility for planning of public transport. The National Land Transport Act No.5 of 2009 recognises municipalities as the primary sphere of government where the regulation of public transport has to take place. The limitations on the provincial sphere of government will persist if municipalities remain under capacitated to play their rightful role. The Department is continuing to open new Provincial Regulatory Entity (licensing) offices close to where the operators are. Offices are now operational in Empangeni, Port Shepstone, Ladysmith, Jozini and Mbazwana. The Department continues to work closely with SANTACO. The decision to uplift the moratorium on the issuing of Operating Licences is being implemented. During the financial year under review, the Department issued 4 823 operating licenses to operators in the province. The Department is however concerned about the slow pace of returns from operators, because of reasons including tax compliance, which in turn slows our pace of processing applications. Of the nearly 5000 qualifying operators, 1 900 have applied and only 450 have been issued with just under 1 450 are still in process. More than 3 000 operators have not come forth with their applications.

26 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

MEC for Transport, Community Safety and Liaison Mxolisi Kaunda interacting with SANTACO leadership PHOTO: MBUYISELO NDLOVU

MEC for Transport, Community Safety and Liaison Mxolisi Kaunda conducting an unannounced visit at a Driver Licensing Testing Centre. PHOTO: ZINGISA HLATHI

AnnuAl RepoRt | 2017 - 2018 27 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN pRoGRAMME 4: TRANSpoRT REGuLATioN

The purpose of this programme is to ensure the provision of a safe transport environment through the regulation of traffic on public infrastructure, law enforcement, implementation of road safety education and awareness programmes and the registration and licensing of vehicles and drivers Motor Transport Services (MTS) The Motor Transport Services (MTS) in the performance of its mandated function namely, the registration and licensing of all motor vehicles in the province during the 2017/2018 financial year collected R1.6 billion in revenue. The Motor Transport Services unit manages the registration and renewal of approximately 1.6 million motor vehicle licenses annually, and is one area that requires agility in dealing with fraud and corruption. The Department extended the services of the registration and licensing of motor vehicles services by opening two additional offices in Mbazwana and Hlabisa. The Department has decentralised the services by opening six Registering Authorites in Uthukela Ferry, eZimbokodweni, Bergville, Richmond, Plessislaer. As the department performs these services, we will be striving for a fraud and corruption-free service environment. Traffic Law Enforcement The Department aims to engender prosperity thorough mobility, saving lives by reducing fatal crashes by 30% in the year 2020 through its zero tolerance integrated law enforcement programmes. The Department also continues to work towards achieving the 24-hour law enforcement coverage during peak periods, and night time to early morning when most crashes occur. There has been a consultation process led by the Road Traffic Management Corporation (RTMC) involving National Treasury and the Department of Public Service and Administration, on the 24/7 law enforcement coverage and overtime. A provincial task team has been established to assess the state of readiness for the implementation of the 24/7 shift system.

MEC for Transport, Community Safety and Liaison Mxolisi Kaunda conducting a road block during the Easter period.

28 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN pRoGRAMME 5: CoMMuNiTy BASED pRoGRAMMES

The purpose of this programme is to direct and manage the implementation of programmes and strategies that lead to the development and empowerment of communities and contractors. This includes the management and co-ordination of the Expanded Public Works Programmes. Community Development The Vukuzakhe programme was specifically designed to provide access to the road construction tender opportunities through its three-stage (CIDB Grade 1 to 3CE) developmental grading system. It is also aimed at assisting in the transfer of skills to Black-owned contractors. In the 2017/2018 financial year, the Department has been running a mentorship programme (set to run for three years) with four training and mentorship companies running it in the four regions, namely Durban, Empangeni, Ladysmith and Pietermaritzburg. The programme covers • Capacity building and training initiative on soft skills; • Onsite Technical mentorship training; • Accredited and non-accredited training e.g Learnership and short skills programme; and • Business and organisational development support The Department continues to advance employment opportunity creation with its EPWP, having created 50 143 work opportunities to address unemployment and alleviate poverty in the province. Zibambele remains one of the department’s flagship programmes in job creation and poverty alleviation. Of the total, 6 401 work opportunities were created for the youth in the Zibambele programme. Other infrastructure projects outside of Zibambele contributed a further 4 266 work opportunities for the youth working in our projects. This brings the total youth employed under the EPWP to 10 667. The Department still has challenges in meeting targets for the employment of people with disabilities. There are measures in place including a turnaound strategy that will ensure that the department meets its targets. Through the Zibambele programme, the Department also employs 40 618 women. Another 2 286 women are employed on other Departmental projects. The success of the EPWP programme has led to the increase of the grant by R43 million in the next financial year to just over R76 million, which will enhance job creation. Innovation and Empowerment The department successfully launched the pilot programme for pothole patching using small contractors and cooperatives in Ethekwini. This programme advances transformation in roads infrastructure upgrade and maintenance, particularly pothole patching. It targets the youth, women, persons with disability and military veterans, and has contributed to local job creation and skills transfer. With a total investment of R43 million over 25 months, the programme created 180 job opportunities, of which 149 went to the youth and 93 went to women. Of the total investment, more than R19 million (77%) was sub-contracted to local contractors. At the end of March 2018, there were five entities that had already achieved CIDB Grade 3 and exited the programme.

The Vukuzakhe Programme has continued to benefit the previously disadvantaged communities. It also assists in the transfer of skills to Black-owned contractors.

AnnuAl RepoRt | 2017 - 2018 29 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN Corrective Action Corrective

An improvement plan on these standards has plan on these standards An improvement for and will be monitored been formulated, implementation

An improvement plan on these standards has been plan on these standards An improvement implementation for and will be monitored formulated for plans will be monitored Improvement implementation

Target achieved achieved Target

The Department was marked down on the labour matters on the labour matters down marked was The Department as HR planning standards as well standard

The Department was marked down on the payment of suppliers of suppliers on the payment down marked was The Department timelines within the stipulated affected down marked was on which the Department The areas on MPAT performance the overall

Variance Deviation for Reason

Final Audited outputs for 2017-18

Annual for Target 2017-18

80 80 100 20 70 50 50 0 36 55 38 -17 89 75 6066 -15 60 55 -5 36 33 36 3

Audited Audited outcome FY 2016- 17 % of KPA 1 MPAT standards that that standards 1 MPAT % of KPA the 3 from a level at least at are cycle. previous Programme1: Administration Programme1: that standards 2 MPAT % of KPA the 3 from a level at least at are cycle. previous

% of KPA 3 MPAT standards that that standards 3 MPAT % of KPA the 3 from a level at least at are cycle. previous Programme 2: Transport 2: Transport Programme Infrastructure % of KPA 4 MPAT standards that that standards 4 MPAT % of KPA the 3 from a level at least at are cycle. previous Sub Programme: Maintenance Sub Programme: % of blacktop road network network road % of blacktop

A culture of corporate of corporate A culture ensures that governance is the department effective and efficient on its in delivering 80% where mandate (27/33) of MPAT least at are standards the 3 from a level at cycle previous Affordable transport transport Affordable infrastructure so that maintenance road 30% of the blacktop is in a ‘poor to network poor’very by condition 2019/2020 Strategic GoalStrategic Objective Strategic Indicator

30 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN when there be adjusted outputs should also to Target re-allocations. budget are • Issues can be mitigated by appointing a Bridge a Bridge by appointing be mitigated • Issues can design of bridge fast-tracking to Engineer in order should be enforced register • A defaulters approvals. non- to contracts awarding eliminate to in order contractors. performing All structures completed should be reported as an should be reported completed All structures project. in an upgrade structures output even Corrective Action Corrective The Road Information office fast tracked the declaration process the declaration tracked fast office Information The Road increasein was there completed,and already were that on roads roads applications. of the declaration Underperformance of the current quarter is due to the is due to quarter of the current Underperformance of re-prioritisation to due contracts following of the cancellation - Sambane School Access (L2969), Nqobizizwe allocation: budget - on appeals for (L3084) and Manjindi (L3008); contracts (L3015), Mhlushwa (L3209), Nsabalele Road Road Buzezweni (L3221). Road (L3333) and Ngwane Road • Ystermynspruit Pedestrian Bridge No. 3399 – The Bridge No. 3399 – The Bridge Bridge Pedestrian • Ystermynspruit in a located structure the position of due to cancelled was position denied and the landowner of alternative wetland No. Bridge Pedestrian of his land. • Zunkels us the utilization the contractor due to terminated was 3402 – The contract A obligations. with his contractual meet not being able to to in order has been implemented strategy procurement new is – Department • Mhlalane Bridge the structure. complete from progress to slow process due termination finalising the due for was – the bridge Bridge Pedestrian • Lovu contractors. from challenges cash-flow to in July 2017 but due completion anchor for sub-contractor material from and delays contractor • Mvubukazi it has been delayed. on site, deliver to and steel appeals. • Mbabane due to delayed was – contract Bridge and bridge a vehicular to converted was – the bridge Bridge bridge. for new is finalising the design Department There was a change in the reporting process. All bridges had to had All bridges process. in the reporting a change was There part of Road were that bridges even independently be reported when planning so the over not considered This was project. achievement.

11 Variance Deviation for Reason

Final Audited outputs 2017- for 18

Annual for Target 2017-18

5 13 6 -7 13 7 18 179 200 164 -36 32609 32485 32825 340 Audited Audited outcome FY 2016- 17 Kilometres of declared road of declared Kilometres Construction Sub Programme: access gravel of new Kilometres constructed roads New major vehicle bridges bridges major vehicle New constructed New pedestrian bridges constructed bridges pedestrian New balanced An affordable, transport and equitable constructing by network 1,090kms of new 65 access roads, gravel and bridges pedestrian bridges. 35 major vehicle

Provide Provide mobility and accessibility within the to Province 32,890 achieve of kilometres maintained road infrastructure 2020 by Strategic GoalStrategic Objective Strategic Indicator

AnnuAl RepoRt | 2017 - 2018 31 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Corrective Action Corrective Variation of 98km, is attributed to some roads being upgraded roads being upgraded to some attributed of 98km, is Variation no access, was land so there pass a private others blacktop, to construction under were and then some sections road to be gravel found was of 5km The variation

tourist destination attracting numerous people numerous attracting destination tourist

being a major the Province due to this measure over No control by the submittted was that the request from arose The variance 7 additional learners to accommodate of Education Department

Variance Deviation for Reason

00 Final Audited outputs 2017- for 18

0 1607 2375 768 47740 47747 7 Annual for Target 2017-18

7510 7900 7802 -98 3751 3950 3945 -5 Audited Audited outcome FY 2016- 17 Number of kilometres of gravel of gravel Number of kilometres visually assessed as per the roads TMH manual applicable Number of kilometres of surfaced of surfaced Number of kilometres visually assessed as per the roads TMH manual applicable Plans Operational Number of IPTN developed (per 100,000 Number of fatalities kms) vehicle

Programme 3: Transport 3: Transport Programme Operations Sub Programme: Infrastructure Infrastructure Sub Programme: Planning Sub Programme: Public Transport Public Transport Sub Programme: Services Number of learners Sub Programme: Law Enforcement Law Sub Programme:

The provision of a The provision subsidised dedicated learner transport 38,600 service to by identified learners of the Department Education Promote an Promote integrated transportation through system developing 3 IPTN Operational Plans and Create a promote road safe environment decreasing by fatalities road 30% by (545/1,819) in 2019 Strategic GoalStrategic Objective Strategic Indicator

32 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Corrective Action Corrective

Variation of 98km, is attributed to some roads being upgraded roads being upgraded to some attributed of 98km, is Variation no access, was land so there pass a private others blacktop, to construction under were and then some sections road to be gravel found was of 5km The variation Target achieved Target Fridays. for Safer call MEC’s to address in operations Increase Women’s Transport Month, over in activities Also increase season and the Festive Month expire licenses operating because has not been met The target total on time. A renew to do not come daily and some operators the by and not been renewed expired of 20946 permits have in progress. of 7 155 are a total Furthermore, operators.

being a major the Province due to this measure over No control people numerous attracting destination tourist by the submittted was that the request from arose The variance 7 additional learners to accommodate of Education Department

Variance Deviation for Reason

00 00 00 00 Final Audited outputs 2017- for 18

0 0 0 0 1300 1487 187 1607 2375 768 45540 27686 -17854 47740 47747 7 Annual for Target 2017-18

320 320 320 0 7510 7900 7802 -98 3751 3950 3945 -5 Audited Audited outcome FY 2016- 17 Sub Programme: Law Enforcement Law Sub Programme: multi- directed Number of goal disciplinary operations

Number of kilometres of gravel of gravel Number of kilometres visually assessed as per the roads TMH manual applicable 4 : Transport Programme Regulation Transport Sub Programme: and Licensing Administration inspections Number of compliance conducted 5: Community Based Programme Programme Number of kilometres of surfaced of surfaced Number of kilometres visually assessed as per the roads TMH manual applicable Plans Operational Number of IPTN developed (per 100,000 Number of fatalities kms) vehicle Number of public transport operators Number of schools receiving services transport of freight Tonnes Number of empowerment developed programmes

of 72 The migration of freight million tonnes by rail to road from 2019/20 90% (62,100/69,000) of all public transport fully are operators with the compliant public transport provisions.

The provision of a The provision subsidised dedicated learner transport 38,600 service to by identified learners of the Department Education Promote an Promote integrated transportation through system developing 3 IPTN Operational Plans and Create a promote road safe environment decreasing by fatalities road 30% by (545/1,819) in 2019 Promote sustainable economic transformation through 2 developing empowerment programmes Strategic GoalStrategic Objective Strategic Indicator

AnnuAl RepoRt | 2017 - 2018 33 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Corrective Action Corrective

The salary increase for drivers who went on strike and diesel on strike who went drivers for The salary increase index. in the escalation an increase caused price increses Target achieved Target The salary increase for drivers who went on strike and diesel on strike who went drivers for The salary increase index. in the escalation an increase caused price increses Variance Deviation for Reason Final Audited outputs 2017- for 18 Annual for Target 2017-18 530 353 353 0 512 525 527 2 98,6 172 174 2 Audited Audited outcome FY 2016- 17 Value of public transport of public transport Value (in R contracts transformation millions) Value of contracts awarded to to awarded of contracts Value 1 on Grades contractors Vukuzakhe 3 (in R millions) to Value of contracts awarded to to awarded of contracts Value entrepreneurs emerging

Support and promote Support and promote transformation economic the awarding through of R2,031 billion to of contracts worth entrepreneurs. emerging contractors (Vukuzakhe 1-3 and public on grade transformation transport contracts Strategic GoalStrategic Objective Strategic Indicator

34 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Key corrective measures are therefore aimed at aimed therefore are measures corrective Key ensuring that through generated Opportunities are 1. Work and projects are indicators related Opportunities and the 2. Work in full reported been have documents tender a) The Departments Construction EPWP and Labour Intensive aligned to to projects all awarded for mandatory (LIC). It is now being penalised contractors with include job creation, jobs. on created and report achieve to failure for will be seen in 2019 The impact of this approach are documentation utilising the new as projects implemented the EPWP has further engaged b) The Directorate: and Regional Infrastructure (Transport units of TIRS ensure to Safety and Road Services), Public Transport the financial place throughout take created all jobs emphasis on the maintenance with an increased year revision This includes documentation. of evidential Manual and streamlining of the Procedure support well as providing as processes, reporting the that to ensure units in order implementing to followed is process reporting Corrective Action Corrective implementation. As work opportunities are generated from generated are work opportunities As implementation. work on effect this has had an adverse projects, implemented of persons (demographics indicators related opportunities and days). and employment employed

Variance Deviation for Reason

Final Audited outputs 2017- for 18

Annual for Target 2017-18

63626 72200 49501 -22699 delayed experienced projects many SCM processes Due to Audited Audited outcome FY 2016- 17 Number of jobs created Number of jobs Addressing poverty poverty Addressing and alleviation empowerment the increasing through for job opportunities by 40% (24,000 creation jobs) Strategic GoalStrategic Objective Strategic Indicator

AnnuAl RepoRt | 2017 - 2018 35 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Underperformance was a corrective measure due to due measure a corrective was Underperformance achieved. was as the annual target

Underperformance of the current quarter is due to is due to quarter of the current Underperformance annual quarters, in the previous the overperformance achieved. target

Corrective Action Corrective

Projects were fast tracked which led to the over performance. performance. the over which led to tracked fast were Projects job creating towards as a response exceeded The outputs were was laggingopportunities which behind in 2017/18

Variance Deviation for Reason

Final Audited outputs 2017- for 18

0 15 15 Annual for Target 2017-18

0 102 85 115 30 84592 25000 53981 28981 Audited Audited outcome FY 2016-17 QUARTERLY OUTPUTS QUARTERLY : Transport Programme2 Infrastructure Kilometres of gravel roads upgraded upgraded roads gravel of Kilometres roads surfaced to Sub Programme: Construction Sub Programme: Number of lane-km of new surfaced surfaced Number of lane-km new constructed roads of metres Number of square facility transport non-motorised constructed

Strategic GoalStrategic Objective Strategic Indicator

36 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Underperformance was a corrective measure due to due measure a corrective was Underperformance achieved. was as the annual target when there be adjusted outputs should also to Target re-allocations. budget are when there be adjusted outputs should also to Target re-allocations. budget are sector private from operators of grader Recruitment based contract. on an annual performance avoid to be finalised in order to Annual contracts processes in procurement delays Rehab and to prioritise to be done Re-prioritisation Reseal. Underperformance of the current quarter is due to is due to quarter of the current Underperformance annual quarters, in the previous the overperformance achieved. target

Corrective Action Corrective poor households. The targets The Zibambele programme therefore has increased number of households in this category maintained in the kilometres the increase

There was a sudden huge demand for blacktop roads which led roads blacktop demand for a sudden huge was There the risks mitigate In trying to the province. across civil unrest to were that roads with plans for start decided to the Department negative plan. This had a huge not part of the Financial year as budget road network of the on the maintenance implication also were There Programme. to the Upgrade be shifted had to year. finish this financial to tracked be fast had to that roads from project the BRT by disturbed was On P577 the Department not part of the initial plan. The was Municipality that Ethekwini the reconstruction accommodate had to therefore Department not be could the road that of bus middle lanes. This meant road This section of the year. in the 2016/17 financial completed year in the 2017/18 financial and reported completed was during budget allocation of budget a re-prioritisaion was There to the outer being deferred in projects resulting adjustments outputs target with their projects The deferred years. financial would that of a project P106 and P2-6 . P47-1 is an example are: a delayed was the balance of outputs but there achieved have was and only a portion of outputs civil unrest, due to start year this financial achieved during budget allocation of budget a re-prioritisation was There to the outer being deferred in projects resulting adjustments outputs target with their projects The deferred year. financial P544 , P317 P46-3 P487 P52-1 and P435 . are: operators grader of departmental of shortage A combination in underperformance. has resulted graders and in some areas relies this activity is that the moment at challenge The biggest and some the work execute to teams departmental on internal travel results in long the office which from far very are areas and back. to site times on the the damage caused in the province rains The excessive required some roads a patch, than just need more to roads be done had to These measures and deeper patches. longer all times, which at users road for safe was the road that ensure repeatedly. patched was the same area meant some point at Due to delays in procurement processes for some projects some projects for processes in procurement delays Due to a portion of in only achieving had a high output resulted that during the delays significant were outputs. There the targeted the site to handed over are contractors where process handover with for quarry material negotiates the contractor and where policy of has a strict The Department Indunas and Inkosi. local as delayed got but contractors quarry material for not paying payment. the Induna wanted Projects were fast tracked which led to the over performance. performance. the over which led to tracked fast were Projects job creating towards as a response exceeded The outputs were was laggingopportunities which behind in 2017/18

Variance Deviation for Reason

Final Audited outputs 2017- for 18

0 15 15 Annual for Target 2017-18

0 102 85 115 30 2330 2200 1413 -787 27044 21095 21357 262 76518 95000 77938 -17062 84592 25000 53981 28981 353780 240000 819659 579659 Audited Audited outcome FY 2016- 17 2408223 1800000 1683719 -116281 2944842 2500000 764222 -1735778 QUARTERLY OUTPUTS QUARTERLY : Transport Programme2 Infrastructure Maintenance Sub Programme: by maintained Kilometres Zibambele contractors Kilometres of gravel roads upgraded upgraded roads gravel of Kilometres roads surfaced to of metres Number of square rehabilitated roads surfaced of metres Number of square resealed roads surfaced Sub Programme: Construction Sub Programme: of gravel Number of kilometres bladed roads Number of lane-km of new surfaced surfaced Number of lane-km new constructed roads of metres Number of square facility transport non-motorised constructed Number of kilometres of gravel of gravel Number of kilometres re-gravelled roads of metres Number of square (including patching blacktop pothole repairs)

Strategic GoalStrategic Objective Strategic Indicator

AnnuAl RepoRt | 2017 - 2018 37 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Corrective Action Corrective is be monitored to have that trips The minimum percentage and monitored are the trips depending on where 70%. However, 70% of scheduled it will seldom be exactly are the monitors how monitored. trips June 2017 was used as the base month in verifying the number in verifying used as the base month June 2017 was their spare had increased Operators that found of buses. It was requirement CRW the 6 monthly due to capacity The number of buses has increased hence the reduction in hence the reduction The number of buses has increased less and the are operated Since the kilometers per vehicle. km’s target. than the will be lower this figure increased, buses have There was a driver strike in April 2017 (National Salary in April 2017 (National strike a driver was There IC33, 1163,1381, 1169, 1170, contracts affecting Negotiations) 1172, 1372, 1173, 1177, 1101-1104, 1117, 1158, 1159, 1162, the total 3083, 1138, 1139, 1181 and 1165-1177 which reduced in January strike also a driver was There operated. kilometers 1172, 1174, 1176(A), 1176(B), 1373 and contracts 2018 affecting of Drivers operated. kilometers the total 1377 which reduced additional demands out of the requested all these operations not be Council. These demands could of the Bargaining scope strike. in the resulting the operators upon by agreed There was an over performance of 1 hearing due to renewals renewals of 1 hearing due to performance an over was There Entity) Regulatory PRE (Provincial daily by received are that Salary in April 2017 (National strike a driver was There IC33, 1163,1381, 1169, 1170, contracts affecting Negotiations) 1172, 1372, 1173, 1177, 1101-1104, 1117, 1158, 1159, 1162, the total 3083, 1138, 1139, 1181 and 1165-1177 which reduced in January strike also a driver was There operated. kilometers 1172, 1174, 1176(A), 1176(B), 1373 and contracts 2018 affecting of Drivers operated. kilometers the total 1377 which reduced additional demands out of the requested all these operations not be Council. These demands could of the Bargaining scope strike. in the resulting the operators upon by agreed The number of routes were verified by the Department and by the Department verified were The number of routes by the HOD in 2017 and signed off in August the Operators 2017. September The majority of trips carry a mixture of workers and scholars. and scholars. of workers a mixture carry The majority of trips stream not utilising main were scholars During school holidays average the total reducing thereby public transport, subsidised per trip. number of passengers There was a driver strike in April 2017 (National Salary in April 2017 (National strike a driver was There IC33, 1163,1381, 1169, 1170, contracts affecting Negotiations) 1172, 1372, 1173, 1177, 1101-1104, 1117, 1158, 1159, 1162, the total 3083, 1138, 1139, 1181 and 1165-1177 which reduced in January strike also a driver was There operated. kilometers 1172, 1174, 1176(A), 1176(B), 1373 and contracts 2018 affecting of Drivers operated. kilometers the total 1377 which reduced additional demands out of the requested all these operations not be Council. These demands could of the Bargaining scope strike. in the resulting the operators upon by agreed mode of transport what over has no control The Department will utilise. population the general The minimum percentage trips that have to be monitored is be monitored to have that trips The minimum percentage and monitored are the trips depending on where 70%. However, 70% of scheduled it will seldom be exactly are the monitors how monitored. trips in subsidy in an increase resulted have contracts The negotiated per passenger in subsidy hence the increase

1 1 Variance Deviation for Reason

Final Audited outputs 2017- for 18

Annual for Target 2017-18

51 60 54 -6 71 70 71 501 440 441 1314 1320 1416 96 1709 1702 2074 372 17,47 18,5 18.22 - 0,28 31651 31730 29569 -2161 841522 839210 849384 10174 116032 142680 141243 -1437 1189452 1198870 1176850 -22020 41599563 41888710 41498121 -390589 59872276 67879790 58527486 -9352304 Audited Audited outcome FY 2016- 17 Programme 3: Transport Operations 3: Transport Programme monitored Number of trips Kilometres operated per vehicle operated Kilometres Sub Programme: Public Transport Public Transport Sub Programme: Services subsidised Number of vehicles subsidised Number trips Number of vehicle kilometers kilometers Number of vehicle subsidised Number of Provincial Regulating Regulating Number of Provincial conducted (PRE) hearings Entity subsidised Number of routes Passengers per trip operated Passengers Number of subsidised passenger passenger Number of subsidised trips Percentage of trips monitored of trips Percentage Number of subsidised passengers Number of subsidised Subsidy per passenger Subsidy

Strategic GoalStrategic Objective Strategic Indicator

38 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

is be monitored to have that trips The minimum percentage and monitored are the trips depending on where 70%. However, 70% of scheduled it will seldom be exactly are the monitors how monitored. trips June 2017 was used as the base month in verifying the number in verifying used as the base month June 2017 was their spare had increased Operators that found of buses. It was requirement CRW the 6 monthly due to capacity The number of buses has increased hence the reduction in hence the reduction The number of buses has increased less and the are operated Since the kilometers per vehicle. km’s target. than the will be lower this figure increased, buses have There was a driver strike in April 2017 (National Salary in April 2017 (National strike a driver was There IC33, 1163,1381, 1169, 1170, contracts affecting Negotiations) 1172, 1372, 1173, 1177, 1101-1104, 1117, 1158, 1159, 1162, the total 3083, 1138, 1139, 1181 and 1165-1177 which reduced in January strike also a driver was There operated. kilometers 1172, 1174, 1176(A), 1176(B), 1373 and contracts 2018 affecting of Drivers operated. kilometers the total 1377 which reduced additional demands out of the requested all these operations not be Council. These demands could of the Bargaining scope strike. in the resulting the operators upon by agreed There was an over performance of 1 hearing due to renewals renewals of 1 hearing due to performance an over was There Entity) Regulatory PRE (Provincial daily by received are that Salary in April 2017 (National strike a driver was There IC33, 1163,1381, 1169, 1170, contracts affecting Negotiations) 1172, 1372, 1173, 1177, 1101-1104, 1117, 1158, 1159, 1162, the total 3083, 1138, 1139, 1181 and 1165-1177 which reduced in January strike also a driver was There operated. kilometers 1172, 1174, 1176(A), 1176(B), 1373 and contracts 2018 affecting of Drivers operated. kilometers the total 1377 which reduced additional demands out of the requested all these operations not be Council. These demands could of the Bargaining scope strike. in the resulting the operators upon by agreed The number of routes were verified by the Department and by the Department verified were The number of routes by the HOD in 2017 and signed off in August the Operators 2017. September The majority of trips carry a mixture of workers and scholars. and scholars. of workers a mixture carry The majority of trips stream not utilising main were scholars During school holidays average the total reducing thereby public transport, subsidised per trip. number of passengers There was a driver strike in April 2017 (National Salary in April 2017 (National strike a driver was There IC33, 1163,1381, 1169, 1170, contracts affecting Negotiations) 1172, 1372, 1173, 1177, 1101-1104, 1117, 1158, 1159, 1162, the total 3083, 1138, 1139, 1181 and 1165-1177 which reduced in January strike also a driver was There operated. kilometers 1172, 1174, 1176(A), 1176(B), 1373 and contracts 2018 affecting of Drivers operated. kilometers the total 1377 which reduced additional demands out of the requested all these operations not be Council. These demands could of the Bargaining scope strike. in the resulting the operators upon by agreed mode of transport what over has no control The Department will utilise. population the general The minimum percentage trips that have to be monitored is be monitored to have that trips The minimum percentage and monitored are the trips depending on where 70%. However, 70% of scheduled it will seldom be exactly are the monitors how monitored. trips in subsidy in an increase resulted have contracts The negotiated per passenger in subsidy hence the increase

1 1

51 60 54 -6 71 70 71 501 440 441 1314 1320 1416 96 1709 1702 2074 372 17,47 18,5 18.22 - 0,28 31651 31730 29569 -2161 841522 839210 849384 10174 116032 142680 141243 -1437 1189452 1198870 1176850 -22020 41599563 41888710 41498121 -390589 59872276 67879790 58527486 -9352304 Programme 3: Transport Operations 3: Transport Programme monitored Number of trips Kilometres operated per vehicle operated Kilometres Sub Programme: Public Transport Public Transport Sub Programme: Services subsidised Number of vehicles subsidised Number trips Number of vehicle kilometers kilometers Number of vehicle subsidised Number of Provincial Regulating Regulating Number of Provincial conducted (PRE) hearings Entity subsidised Number of routes Passengers per trip operated Passengers Number of subsidised passenger passenger Number of subsidised trips Percentage of trips monitored of trips Percentage Number of subsidised passengers Number of subsidised Subsidy per passenger Subsidy

AnnuAl RepoRt | 2017 - 2018 39 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

As a corrective measure the indicator has been the indicator measure As a corrective but will be maintained APP reporting, from removed report statistics in the monthly year in the 2018/19 financial measure As a corrective met are the targets that will ensure the Department

Corrective Action Corrective in involvement staff due to underachieved was The target transportation of and meetings workshops the elections, COGTA authorities and with local in partnership committees

Target exceeded in order to create a safer road environment, environment, road a safer create to in order exceeded Target activated were locations hazardous at identified additional sites with Municipalities. in partnerships There is an under performance of 1 due to Ethekwini Transport Transport Ethekwini of 1 due to is an under performance There for the proposed Authority not finalising the lease agreement is in discussions with the municipality office. The Department the that It is anticipated stage. an advanced at and these are year in the 2018/19 financial operational office will be identified this identified holder for Municipality is the budget as Ethekwini office Target exceeded due to the fact that an operator can do can an operator that the fact due to exceeded Target licence therefore on an operating than one transaction more for the licences printed the number of operating increasing this indicator. over control has no Department The year. financial There was an under performance of 7 routes due to the delays the delays due to of 7 routes an under performance was There project in the participating in the bus industry achieved Target Principal determines the number of grades attending the talks talks the attending the number of grades Principal determines prior arrangements. despite of the presentation, on the day Target achieved Target

-1 23 Variance Deviation for Reason

1 90 4823 Final Audited outputs 2017- for 18

2 9 4800 Annual for Target 2017-18

1 9 143 143 191 48 443 800 793 -7 1110 1176 1176 0 73032 77800 77731 -69 277811 286000 325262 39262 Audited Audited outcome FY 2016- 17 Sub Programme: Transport Safety Safety Transport Sub Programme: and Compliance Number of adults reached that that Number of adults reached education road safety in participate programmes

Number of crossing patrols patrols Number of crossing provided Number of decentralised PRE Number of decentralised established offices licences Number of operating issued Number of public transport routes routes Number of public transport for been evaluated have that viability economic awareness safety Number of road conducted programmes reached of school children Numbers road safety in participate that programmes education Number of schools involved in road in road Number of schools involved programmes education safety

Strategic GoalStrategic Objective Strategic Indicator

40 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN Corrective Action Corrective

The targets have been reviewed and increased and increased been reviewed have The targets period reporting strategic the 5 year over accordingly

There will be focus on weighbridge maintenance on weighbridge will be focus There

The Directorate is awaiting the filling of posts is awaiting The Directorate

The Department will ensure that machines are sent sent machines are that will ensure The Department machines will be and more calibration for timeously procured the possibility of is investigating The Department officers assist to technology procuring and an objection will be reviewed The targets in the the indicator will be made for assessment period 2018/19 reporting

The over performance occurred as a result of the following: of the following: as a result occurred performance The over on scheduled not bringing all their vehicles - 5 user departments and dates, to be done where inspections which had up compliance - follow had been identified irregularities

The over achievement is attributed to intensified enforcement enforcement to intensified is attributed achievement The over campaigns. and closing ranks Fridays Safer due to The Department has no control over this indicator as it depends this indicator over has no control The Department vehicles motor of the number heavy on the movement roads and Provincial on National travelling The under achievement was due to Newcastle weighbridge weighbridge Newcastle due to was The under achievement was reporting period. It for the entire being non-operational were weighbridges and Ladysmith the Greytown also due to period during the reporting problems had network they The over achievement was due to abnormal loads escorted abnormal loads escorted due to was achievement The over period and period, Festive and high visibility during the Easter month transport October The Directorate under achieved due to retirements, resignations resignations retirements, due to under achieved The Directorate and deaths

Some speed machines were not working during the reporting during the reporting not working Some speed machines were The speed repairs. and calibration for sent period and were to expected are Pretoria to repairs for sent were machines that back in June 2018 be received in weighing an increase due to was achievement The over sites and adhoc weighbridge at the 14 operational activities operations night During October 2017 heavy rains were experienced throughout throughout experienced were rains 2017 heavy During October were Floods affected. was enforcement as a result the Province, enforcement. law on the N2 in Durban affecting experienced focus on the to were deployed period officers the reporting For on the N2 and N3 incidents throwing stone ongoing The over achievement is due to the unplanned operations that that the unplanned operations is due to achievement The over areas. certain in instability the of result a as conducted be to had to deal with contingencies small into to be divided had Officers areas the affected in and around the instability

The conversion process is dependent on the operator - PRE is on the operator is dependent process The conversion to operations visits sensitize regional conduct to endeavoring licenses. The operating their permits to convert to forward come no in the 2018/2019 APP due to has been removed indicator on the Department it is dependent the Department by control on the Operator. it is dependent

Variance Deviation for Reason

00 Final Audited outputs 2017- for 18

Annual for Target 2017-18

36 0 399 200 485 285 799 807 783 -24 881 880 1311 431 201 100 7 -93 1393 1088 1110 22 15311 15000 12979 -2021 17359 18250 12573 -5677 180758 155000 160230 5230 4632530 3200000 3257738 57738 7077382 6090000 7680702 1590702 1264674 1600000 893239 -706761 Audited Audited outcome FY 2016-17 Programme 4: Transport Regulation 4: Transport Programme Number of license compliance Number of license compliance conducted inspections Sub Programme: Law Enforcement Law Sub Programme: Sub Programme: Transport Transport Sub Programme: and Licensing Administration Number of drunken driving Number of drunken conducted operations Number of heavy vehicles screened vehicles Number of heavy Number of hours weighbridges weighbridges Number of hours operated Number of kilometres patrolled Number of kilometres Number of law enforcement enforcement Number of law employed officers Number of law enforcement enforcement Number of law courses trained: Diploma officers Number of speed operations Number of speed operations conducted Number of vehicles stopped and stopped Number of vehicles checked weighed Number of vehicles directed goal Undertake of public transport enforcement Shanela) (Operation Sub Programme: Operator License Operator Sub Programme: and Permits Number of operator permits Number of operator licences to converted

Strategic GoalStrategic Objective Strategic Indicator

AnnuAl RepoRt | 2017 - 2018 41 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN Corrective Action Corrective at ensuring that aimed therefore are measures corrective Key and projects through generated Opportunities are 1. Work in full reported are indicators related Opportunities and the 2. Work EPWP and Labour been aligned to have documents tender a) The Departments to projects awarded for all (LIC). It is now mandatory Construction Intensive to achieve failure for being penalised contractors with include job creation, will be seen in 2019 as The impact of this approach jobs. on created and report are implemented documentation utilising the new projects (Transport the units of TIRS EPWP has further engaged b) The Directorate: ensure to Safety and Road Services), Public Transport and Regional Infrastructure year with an increased the financial place throughout take created all jobs This includes documentation. of evidential emphasis on the maintenance well as processes, reporting Manual and streamlining of the Procedure revision reporting the that to ensure units in order implementing support to as providing is followed process at ensuring that aimed therefore are measures corrective Key and projects through generated Opportunities are 1. Work in full reported are indicators related Opportunities and the 2. Work EPWP and Labour been aligned to have documents tender a) The Departments to projects awarded for all (LIC). It is now mandatory Construction Intensive to achieve failure for being penalised contractors with include job creation, will be seen in 2019 as The impact of this approach jobs. on created and report are implemented documentation utilising the new projects (Transport the units of TIRS EPWP has further engaged b) The Directorate: ensure to Safety and Road Services), Public Transport and Regional Infrastructure year with an increased the financial place throughout take created all jobs This includes documentation. of evidential emphasis on the maintenance well as processes, reporting Manual and streamlining of the Procedure revision reporting the that to ensure units in order implementing support to as providing is followed process delayed implementation. As work opportunities are work opportunities As implementation. delayed this has had projects, implemented from generated related work opportunities and on effect an adverse and employed of persons (demographics indicators days). employment are work opportunities As implementation. delayed this has had projects, implemented from generated related work opportunities and on effect an adverse and employed of persons (demographics indicators days). employment Variance Deviation for Reason Final Audited Final Audited outputs for 2017/18 Annual Target Annual Target 2017/18 for Audited Audited FY outcome 2016 - 17 4977811 5995200 4357306 -1637894 experienced projects many SCM processes Due to 21630 26066 18944 -7122 experienced projects many SCM processes Due to Indicator Programme 5: Programme Community Based Programmes Sub Programme: EPWP Co-or- and dination Monitoring Number of days employment created Number of Full- Equivalents time (FTEs) jective

Strategic GoalStrategic Ob- Strategic

42 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN Corrective Action Corrective Key corrective measures are therefore aimed at ensuring that at ensuring that aimed therefore are measures corrective Key and projects through generated Opportunities are 1. Work in full reported are indicators related Opportunities and the 2. Work EPWP and Labour been aligned to have documents tender a) The Departments to projects awarded for all (LIC). It is now mandatory Construction Intensive to achieve failure for being penalised contractors with include job creation, will be seen in 2019 as The impact of this approach jobs. on created and report are implemented documentation utilising the new projects (Transport the units of TIRS EPWP has further engaged b) The Directorate: ensure to Safety and Road Services), Public Transport and Regional Infrastructure year with an increased the financial place throughout take created all jobs This includes documentation. of evidential emphasis on the maintenance well as processes, reporting Manual and streamlining of the Procedure revision reporting the that to ensure units in order implementing support to as providing is followed process at ensuring that aimed therefore are measures corrective Key and projects through generated Opportunities are 1. Work in full reported are indicators related Opportunities and the 2. Work EPWP and Labour been aligned to have documents tender a) The Departments to projects awarded for all (LIC). It is now mandatory Construction Intensive to achieve failure for being penalised contractors with include job creation, will be seen in 2019 as The impact of this approach jobs. on created and report are implemented documentation utilising the new projects (Transport the units of TIRS EPWP has further engaged b) The Directorate: ensure to Safety and Road Services), Public Transport and Regional Infrastructure year with an increased the financial place throughout take created all jobs This includes documentation. of evidential emphasis on the maintenance well as processes, reporting Manual and streamlining of the Procedure revision reporting the that to ensure units in order implementing support to as providing is followed process at ensuring that aimed therefore are measures corrective Key and projects through generated Opportunities are 1. Work in full reported are indicators related Opportunities and the 2. Work EPWP and Labour been aligned to have documents tender a) The Departments to projects awarded for all (LIC). It is now mandatory Construction Intensive to achieve failure for being penalised contractors with include job creation, will be seen in 2019 as The impact of this approach jobs. on created and report are implemented documentation utilising the new projects (Transport the units of TIRS EPWP has further engaged b) The Directorate: ensure to Safety and Road Services), Public Transport and Regional Infrastructure year with an increased the financial place throughout take created all jobs This includes documentation. of evidential emphasis on the maintenance well as processes, reporting Manual and streamlining of the Procedure revision reporting the that to ensure units in order implementing support to as providing is followed process delayed implementation. As work opportunities are work opportunities As implementation. delayed this has had projects, implemented from generated related work opportunities and on effect an adverse and employed of persons (demographics indicators days). employment are work opportunities As implementation. delayed this has had projects, implemented from generated related work opportunities and on effect an adverse and employed of persons (demographics indicators days). employment are work opportunities As implementation. delayed this has had projects, implemented from generated related work opportunities and on effect an adverse and employed of persons (demographics indicators days). employment Variance Deviation for Reason -204 experienced projects many SCM processes Due to 146 Final Audited Final Audited outputs for 2017-18 Annual Target Annual Target 2017-18 for 350 Audited Audited FY outcome 2016-17 63626 72200 49501 -22699 experienced projects many SCM processes Due to 35 46552 45000 42381 -2619 experienced projects many SCM processes Due to - Indicator Number of jobs Number of jobs created Number of Per Disabili- With sons ties employed - Number of wom en employed Strategic Strategic Objective Strategic Goal Strategic

AnnuAl RepoRt | 2017 - 2018 43 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN Corrective Action Corrective measure, the Department has amended the Vukuzakhe policy in order to high- to policy in order has amended the Vukuzakhe the Department measure, feasible disability where validating for the requirements light Key corrective measures are therefore aimed at ensuring that at ensuring that aimed therefore are measures corrective Key and projects through generated Opportunities are 1. Work in full reported are indicators related Opportunities and the 2. Work EPWP and Labour been aligned to have documents tender a) The Departments to projects awarded for all (LIC). It is now mandatory Construction Intensive to achieve failure for being penalised contractors with include job creation, will be seen in 2019 as The impact of this approach jobs. on created and report are implemented documentation utilising the new projects (Transport the units of TIRS EPWP has further engaged b) The Directorate: ensure to Safety and Road Services), Public Transport and Regional Infrastructure year with an increased the financial place throughout take created all jobs This includes documentation. of evidential emphasis on the maintenance well as processes, reporting Manual and streamlining of the Procedure revision reporting the that to ensure units in order implementing support to as providing is followed process The Department over achieved due to the implemen- due to achieved over The Department over- to was introduced up plan that catch of a tation 1 and 2 as a result in quarter underperformance come programme. of the mentorship start of the delayed 3 quarter from implemented up plan was The catch in business of workshops and included the delivery who had both contractors to training management had not been and those that projects been awarded projects awarded The number of households in this category has The number of households in this category in the number of the increase therefore increased of the poor the plight address to in order contractors of the principles of the Department's Igula Radical So- Igula Radical of the principles Department's and policies programme Transformation cio Economic the all business units. This required across thereof targeting towards its efforts intensify to Department in the in particular, and youth women among others, as building initiatives and capacity skills development part of empowerment of the principles of the Department's Igula Radical So- Igula Radical of the principles Department's and policies programme Transformation cio Economic the all business units. This required across thereof targeting towards its efforts intensify to Department in the in particular, and youth women among others, as building initiatives and capacity skills development part of empowerment non-disclosure or specification of this indicator by of this indicator or specification non-disclosure corrective As a participant. project Target achieved Target delayed implementation. As work opportunities are work opportunities As implementation. delayed this has had projects, implemented from generated related work opportunities and on effect an adverse and employed of persons (demographics indicators days). employment 29 296 the implementation due to was achievement The over 206 the implementation due to was achievement The over -348 of mainly as a result under achieved The Department 0 -10495 experienced projects many SCM processes Due to Variance Deviation for Reason Final Audited outputs 2017- for 18 529 546 456 2 100% 350 Annual Target Annual Target 2017-18 for Audited Audited FY outcome 2016-17 397 500 44002 42190 42714 524 poor households. targets The Zibambele programme 193 250 122 250 0 17594 20000 9505 100% 100% - - - Indicator Small contractors Small contractors through trained the Vukuzakhe Contrac- Emerging Development tor Programme Number of Zibam bele contractors employed Number of train ing opportunities youth for created Number of opportu- training for nities created women Number of train ing opportunities people for created with disabilities Number of (18 – 35) youth employed Sub Programme: Community Development % of HDI oper- providing ators learner transport services Strategic Strategic Objective Strategic Goal Strategic

44 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN The Department of Transport Contractor Development Programme is aligned with the transformational agenda. agenda. is aligned with the transformational Programme Development Contractor of Transport The Department to to 6 1 Grades from projects, capital with the unbundling of will be unlocked development contractor for Opportunities . bid successfully opportunity to a fair contractors emerging allow

AnnuAl RepoRt | 2017 - 2018 45 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

former president jacob Zuma flanked by former Transport Minister joe Maswanganyi and KwaZulu-Natal premier Willies Mchunu on the left as well as Ethekwini Metro Mayor, Cllr. Zandile Gumede, former first Lady Bongi Ngema-Zuma, Nomusa Dube-Ncube, MEC for CoGTA, Mrs. Linda Makhaye, widow of Dumisani Makhaye, and the MEC for Transport, Community Safety and Liaison Mxolisi Kaunda on the right, during the official opening of the new Dumisani Makhaye Drive. PHOTO: MBUYISELO NDLOVU

Former President Jacob Zuma flanked by former Transport Minister Joe Maswanganyi and KwaZulu-Natal Premier Willies Mchunu on the left as well as Ethekwini Metro Mayor, Cllr. Zandile Gumede, former First Lady Bongi Ngema-Zuma, Nomusa Dube-Ncube, MEC for COGTA, Mrs. Linda Makhaye, widow of Dumisani Makhaye, and the MEC for Transport, Community Safety and Liaison Mxolisi Kaunda on the right, during the official opening of the new Dumisani Makhaye Drive. PHOTO: MBUYISELO NDLOVU

46 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Nyakana Uthukela Bridge. PHOTO: MBUYISELO NDLOVU

Mabhobhane uthukela River Bridge constructed over the Uthukela River in the Maphumulo Local Municiplity. Photo: Mbuyiselo Ndlovu

AnnuAl RepoRt | 2017 - 2018 47 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

pART B: pERfoRMANCE iNfoRMATioN

Linking performance with budgets

PROGRAMME 1

Programme/ 2017/18 2016/17 Sub Programme Final Actual (Over)/Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Administration Office of the MEC 13 948 13 948 - 13 510 13 510 - Management 12 226 12 226 - 14 690 14 690 - Corporate Support 275 227 275 227 - 264 993 264 993 - Departmental Strategy 26 726 26 726 - 21 117 21 117 - Total 328 127 328 127 - 314 310 314 310 -

PROGRAMME 2

Programme/ 2017/18 2016/17 Sub Programme Final Actual (Over)/Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Transport Infrastructure Programme Support Infrastructure 297 587 295 587 2 000 259 670 257 670 2 000 Infrastructure Planning 29 649 29 649 - 21 118 21 118 - Infrastructure Design 33 354 33 354 - 37 140 37 140 - Construction 3 687 907 3 639 907 48 000 3 556 655 3 530 726 25 929 Maintenance 3 303 360 3 103 360 200 000 3 207 708 3 207 708 - Total 7 351 857 7 101 857 250 000 7 082 291 7 054 362 27 929

PROGRAMME 3

Programme/ 2017/18 2016/17 Sub Programme Final Actual (Over)/Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Transport Operations Programme Support Operations 28 389 28 389 - 29 271 29 271 - Public Transport Services 1 397 400 1 397 400 - 1 268 034 1 268 034 - Transport Safety and Compliance 84 576 84 576 - 73 155 73 155 - Total 1 510 365 1 510 365 -1 370 460 1 370 460 -

48 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

PROGRAMME 4

Programme/ 2017/18 2016/17 Sub Programme Final Actual (Over)/Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Transport Regulations Programme Support Regulation 8 760 8 760 - 2 371 2 371 - Transport Admin and Licensing 121 478 121 478 - 119 822 119 822 - Operator Licence Permit 63 862 63 862 - 57 196 57 196 - Law Enforcement 655 540 655 540 - 598 673 598 673 - Total 849 640 849 640 - 778 062 778 062 -

PROGRAMME 5

Programme/ 2017/18 2016/17 Sub Programme Final Actual (Over)/Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Community Based Programme Programme Support Community Based 5 470 5 470 - 6 638 6 638 - Community Development 4 248 4 248 - 3 646 3 646 - Innovation and Empowerment 17 300 16 250 1 050 16 739 16 739 - EPWP Co-Ordination and Monitoring 7 263 8 313 (1 050) 5 474 5 474 - Total 34 281 34 281 - 32 497 32 497 -

DEPARTENTAL RECEIPTS

2017/18 2016/17 Actual Actual Amount (Over) Under (Over) Under Departmental Receipts Estimate Estimate Amount Collected Collection Collection Collected R’000 R’000 R’000 R’000 R’000 R’000 Tax Receipts Motor vehicle licences 1 597 163 1 658 031 (60 868) 1 535 734 1 599 531 (63 797) Sale of goods and services other than capital 145 088 106 378 38 710 136 756 107 078 29 678 assets Fines, penalties and forfeits 40 948 38 164 2 784 38 341 47 257 (8 916) Interest, dividends and rent on land 254 54 200 304 230 74 Sale of capital assets 5 132 5 034 98 4 805 27 205 (22 400) Financial transactions in assets and liabilities 2 176 25 677 (23 501) 2 038 2 928 (890) Total 1 790 761 1 833 338 (42 577) 1 717 978 1 784 229 (66 251)

AnnuAl RepoRt | 2017 - 2018 49 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

• Sale of goods and services other than capital assets was under-collected by R38.710 million. This can be attributed to lower than anticipated collections mainly against abnormal loads licences, drivers licence application fees, applications for learners’ licences, drivers’ licence issuance and renewal, and conversion of drivers’ licences. • Fines, penalties and forfeits under-collected by R2.784 million resulting from fines paid being lower than anticipated. • Interest, dividends and rent on land under-collected by R200 000 due to lower than anticipated revenue generated from interest on staff debts. • Sale of capital assets under-collected its allocation by R98 000 due to lower than anticipated proceeds from auction sales. Revenue from this source is mainly derived from the sale of obsolete assets. • Transactions in financial assets and liabilities over-collected its allocation by R23.501 million ascribed to recoveries from staff debts as well as unallocated credits that are higher than anticipated. Revenue from this category is difficult to project due to its unpredictable nature.

PROGRAMME EXPENDITURE

2017/18 2016/17 Final Actual (Over) Under Final Actual (Over) Under Programme Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Administration 328 127 328 127 - 314 310 314 310 - Transport Infrastructure 7 351 857 7 101 857 250 000 7 082 291 7 054 362 27 929 Transport Operations 1 510 365 1 510 365 - 1 370 460 1 370 460 - Transport Regulation 849 640 849 640 - 778 062 778 062 - Community Based Programme 34 281 34 281 - 32 497 32 497 - Total 10 074 270 9 824 270 250 000 9 577 620 9 549 691 27 929

The department under-spent its 2017/18 budget by R250.068 million, spending 97.5 per cent of the budget.

The under-expenditure reflected under Programme 2, againstg oods and services (R202.068 million) and buildings and other fixed structures (R48 million) is as follows:

50 AnnuAl RepoRt | 2017 - 2018 Part B pERfoRMANCE iNfoRMATioN Part B pERfoRMANCE iNfoRMATioN

Spending against Programmes 1, 3, 4 and 5 was on target at 100% of the budget allocation after undertaking post adjustment virements.

Did the dept. Amount Reasons for Amount Type of purpose for which the comply with transferred the funds Name of transferee Spent by Organisation funds were used S38(1)(j) of unspent by the Entity the pfMA R’000 the entity Province Department Motor Vehicle Licences Yes 5 896 5 896 - Construction and Engineering Departmental Skills Development Levy Yes 4 493 4 493 - SETA’s Agency Vukuzakhe Emmerging Contractors Association Private Enterprise Departmental Entity Yes 815 815 - (VECA) Bus Corporations Private Enterprise Bus Subsidies Yes 1 112 412 1 112 412 - Claims Against the State, Expropriation of Households Individuals Yes 14 630 14 630 - Land, Leave Gratuities and Injury on Duty

• Motor vehicle licences relate to the payment of motor vehicle licences, which is dependent on the number of vehicles and mechanical plant that the department owns and intends to purchase. • Construction Education and Training Authority (CETA) and the Transport Education and Training Authority (TETA) levies are in terms of the Skills Development Act. • Payments to Bus Operators relates mainly to the PTOG, which is a conditional grant aimed at subsidising road-based public transport services and to provide supplementary funding toward public transport services. • VECA payments relate to payments towards the Vukuzakhe Emerging Contractors Association (VECA) as per the MOU between the department and the association. • Households caters for staff exit packages, external bursaries, injury on duty and claims against the state payments.

Conditional Grants and Earmarked Funds Paid Conditional Grants The Department receives its allocation in a form of equitable share and conditional grant allocations forthe maintenance and construction of road infrastructure, subsidised public transport services in the Province and creating job opportunities through EPWP. The conditional grants includes the Provincial Roads Maintenance Grant(PRMG), Public Transport Operations Grant (PTOG) and the Expanded Public Works Program (EPWP) Incentive Grant.

A. provincial Roads Maintenance Grant

The Provincial Roads Maintenance Grant is for the maintenance and construction of road infrastructure in KZN.

The purpose of the grant is to supplement provincial roads investments and support preventative, routine and emergency maintenance on provincial road networks.

Department whom the grant has been transferred. KZN Transport purpose of Grant Provincial Roads Maintenance Grant Expected outputs on grant Refer to Performance Information Actual outputs achieved Refer to Performance Information Amount per amended DoRA R1 828 970 000 Amount transferred R1 828 970 000 Reasons if amount as per DoRA not transferred Funds Withheld by National Department of Transport Amount spent by department R1 828 970 000 Reasons for funds unspent N/A Monitoring mechanism by the transferring department Monthly reporting

AnnuAl RepoRt | 2017 - 2018 51 B. Public Transport Operations Grant The purpose of this sub programme is to manage and monitor the provision of subsidised public transport services, The functions include ensuring that funds allocated to subsidise public transport service yield maximum outcome in reducing the burden of affordability, improving the standard and reliability of public transport. The aim is to ensure that user, especially the poor enjoy affordable public transportation. In many respects performance in the provision of the service has been above average.

Department whom the grant has been transferred. KZN Transport Purpose of Grant Provincial Roads Maintenance Grant Expected outputs on grant Refer to Performance Information Actual outputs achieved Refer to Performance Information Amount per amended DORA R1 017 439 000 Amount transferred R1 017 439 000 Reasons if amount as per DORA not transferred - Amount spent by department R1 017 439 000 Reasons for funds unspent - Monitoring mechanism by the transferring department Monthly reporting

C. Expanded Public Works integrated Grant The purpose of the EPWP Integrated Grant is to incentivize all public bodies to expand their work creation efforts through the use of labour intensive delivery methods to improve the quality of life of the poor people and increase social stability through provision of work opportunities to unemployed people to perform labour intensive methods in the construction and maintenance of infrustructure. The provision of work opportunities to unemployed people contributes to the reduction of poverty and increases the levels of employment, skills development.

Department whom the grant has been transferred. KZN Transport Purpose of Grant EPWP Integrated Grant for Provinces Expected outputs on grant Refer to Performance Information Actual outputs achieved Refer to Performance Information Amount per amended DORA R33 645 000 Amount transferred R33 645 000 Reasons if amount as per DORA not transferred - Amount spent by department R33 645 000 Reasons for funds unspent - Monitoring mechanism by the transferring department Monthly reporting

Earmarked funds

Learner Transport To purpose of Learner Transport is to: • provide equitable access to quality education for the people of KwaZulu-Natal

• Improve access to quality education by providing safe, decent, effective, and integrated sustainable learner transport.

52 AnnuAl RepoRt | 2017 - 2018 Department whom the grant has been transferred. KZN Transport Purpose of Allocation Learner Transport Expected outputs on allocation Refer to Performance Information Actual outputs achieved Refer to Performance Information Amount per amended DORA R195 300 000 Amount transferred R195 300 000 Reasons if amount as per DORA not transferred - Amount spent by department R195 300 000 Reasons for funds unspent - Monitoring mechanism by the transferring department Monthly reporting

Donor funding

No donor funding was received by the Department.

Capital investment

Table: Capital investment

2017/18 2016/17 Infrastructure Projects Final Actual (Over) / Under Final Actual (Over) / Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Existing Infrastructure Assets Maintenance and 2 192 748 1 992 748 200 000 3 207 708 3 207 708 Repairs - Upgrades and 2 305 000 2 305 000 2 118 601 2 092 672 25 929 Additions - Rehabilitation, Renovations and 794 584 794 584 - 964 639 964 639 - Refurbishments New and Replacement 588 323 540 323 48 000 473 415 473 415 - Assets Non infrastructure 1 110 612 1 110 612 - Capital 3 687 907 3 639 907 48 000 3 556 655 3 530 726 25 929 Current 3 303 360 3 103 360 200 000 3 207 708 3 207 708 - Total 6 991 267 6 743 267 248 000 6 764 363 6 764 363 25 929

AnnuAl RepoRt | 2017 - 2018 53 Part C GovERNANCE

MEC ENGAGING WITH PASSENGERS

MEC for Transport, Community Safety and Liaison MEC Mxolisi Kaunda interacting with a member of the public during an unannounced visit at the Mkhondeni Driving Licence Testing Centre. Photo: Mbuyiselo Ndlovu

pART C Governance

54 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE

RiSK MANAGEMENT Management of the Department of Transport showed no tolerance to road accidents in the province and have set a high appetite by increasing the budget from R9,8 billion to R10 billion to provide affordable transport infrastructure maintenance. This will ensure that we improve the conditions of our road network, that reducing road accidents. To accomplish the set Risk Appetite statement, the Departmental Risk Management unit communicated the Risk Appetite through risk assessment workshops. The process of risk assessment aided the development of the Departmental Risk Profile for the financial year 2017/18. The Risk Profile comprised of 52 risks with a total of 130 mitigation plans identified to manage such risks. The Risk Management Directorate monitored the Risk Profile on regular basis and produced reports for the department’s Risk Management Committee, and the Cluster Audit and Risk (CARC) Committee on a quarterly basis. To date there are 24 risks that were managed and reduced to the Risk Appetite and Tolerance level.

The table below depicts the whole risk profile into the various levels of risks and provides a high level statistical view of how the department made progress in terms of implementing risk mitigation plans.

No. Risk Magnitude Period/ No. of I No. of Agreed No. of No. of Outstanding QTR dentified Risks Action Plans Completed Action Plans Action Plans 1. Critical Quarter 1 7 23 6 17

Quarter 2 5 14 08 06

Quarter 3 6 19 08 11

2. Major Quarter 1 11 34 6 28

Quarter 2 12 41 15 26

Quarter 3 09 28 18 10

Quarter 4 06 20 13 07

AnnuAl RepoRt | 2017 - 2018 55 Part C GovERNANCE Part C GovERNANCE

No. Risk Magnitude Period/ No. of I No. of Agreed No. of No. of Outstanding QTR dentified Risks Action Plans Completed Action Plans Action Plans

3. Moderate Quarter 1 18 42 10 32

Quarter 2 19 44 10 34

Quarter 3 17 42 21 21

Quarter 4 16 46 26 20

4. Minor Quarter 1 11 24 14 10

Quarter 2 11 24 01 09

Quarter 3 10 27 15 12

Quarter 4 14 33 22 11

5. Insignificant Quarter 1 5 7 2 5

Quarter 2 5 7 01 4

Quarter 3 10 14 10 04

Quarter 4 10 14 11 03

Total Quarter 1 17/18 52 130 38 92

Total Quarter 2 17/18 52 130 51 79 Total Quarter 3 17/18 52 130 72 58 Total Quarter 4 17/18 52 130 82 48

The table below reflects the categories of risks and the quantity of risks per category the Department considered for the Financial Year 2017/18. There were no risks that were eliminated during, however there was a reduction of the residual risk exposure against 48 mitigation measure.

56 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE risks Total Total Analysis Risks Risks and Safety Project Risks Project Strategic Risk Strategic Operational Risks Operational fraud/Ethics Risks fraud/Ethics Occupational Health Occupational Disaster Management Management Disaster financial Management financial Management Information Technology Information

Total Risk Identified 06 10 4 06 05 02 04 15 52 Opening balance: Outside Risk Appetite 05 01 01 00 01 02 01 09 20 Closing balance: Within Appetite. 02 05 01 02 01 02 01 10 24

There are 82 mitigation plans that were successfully completed during the financial year 2016/17 and 48 were outstanding. Within the 48 outstanding mitigation plans, there are mitigations that subsequently included long term undertakings and those that could not be completed as they cannot be dealt with internally. These include vetting of employees by the State Security Agency; e-Procurement system of the Provincial Treasury, while some are those that are ongoing to ensure risks are managed within the Risk Appetite. These risks are included in the revised Risk Profile for the financial year 2018/19. The Department is continuously engaging with relevant stakeholders in this regard.

FRAUD PREvENTION AND ANTI-CORRUPTION The department is continuing to emplement the revised Fraud Prevention Policy in line with the developed Fraud Prevention Strategy and the implementation Plans to provide formal techniques to manage fraud and corruption risks which the department is exposed to. The Fraud Prevention Implementation Plan was excecuted, including awareness workshops on fraud and corruption to promote good ethics in the department. The culture of zero tolerance to fraud and corruption was maintained. Consequently, the department has ensured that all cases emerging from the application of the Whistle Blowing Policy are being investigated. There are ongoing engagement with the Forensic Investigation Unit within the Provincial Internal Audit Services. There were 27 cases referred for forensic investigations, 12 investigation reports were issued with corrective actions sanctioned for the department to implement. All the recommendations are being considered through labour relations processes. Disciplinary actions are being followed, to date there are 20 people that faced disciplinary actions. The total number of 15 cases which were not finalized during the 2017/18 financial year will be completed during 2018/19 financial year. There were cases that were forwarded for criminal procedures to unfold. There was state recoveries that took place as follows:

· A civil recovery where assets worth R543 328 962.62 were seized from the property of the dismissed Official and several service providers who reportedly received millions in kickbacks from plant hire companies that were awarded contracts to repair KZN’s ailing road infrastructure. · Court verdict against former official who defrauded the Department of Transport to face 5 years imprisonment or pay back an amount of R231 010.00. · Court verdict against former official who defrauded the Department of Transport to face 8 years imprisonment or to pay back an amount of R388 750.32.

The department received five cases from the National Anti-Corruption Hotline and the Office of the Premier. These cases were also investigated, findings were made and recommendations have been implemented.

AnnuAl RepoRt | 2017 - 2018 57 Part C GovERNANCE Part C GovERNANCE

2.5.7 fiNANCE poRTfoLio CoMMiTTEE Finance Portfolio Committee Meetings were held on the following dates:

Resolution No. Subject Details Response by the Department 53/2017 TRANSPORT: NATIONAL TREASURY Noting that: § The department has not DIRECTIVE TO INCREASE REVENUE at this stage received the GENERATION BY 15% Directive to increase Revenue by 15% during the 2017/18 1. National Treasury has MTEF from National Treasury. issued a directive to all provincial revenue generating § The department also departments to increase their consulted with the Revenue revenue by 15% during the Management Directorate at 2017/18 MTEF. Provincial Treasury on this directive and they were also 2. The KZN Department of not aware of it. Transport already charges above the national average § The Medium Term fees for licensing. Expenditure Framework (MTEF) Treasury Guidelines document is issued to The Committee resolves that: departments and public entities each year to facilitate the preparation of the MTEF budget submissions. Included The Accounting Officer must provide a report to the Finance in this document is a section Portfolio Committee by 30 June on Own revenue projections 2017 on how the Department will for the 2017/18 MTEF period. adhere to the National Treasury’s § The Treasury Guideline directive seeing that it is already document states that “In charging above the national average licencing fees. the absence of any scientific methodology as a forecasting tool of revenue, departments and public entities are encouraged to project the revenue for the 2017/18 MTEF by adding a minimum of the inflation rate (CPI) plus one per cent to the projected end-of-year collection for 2016/17”. § However due to the fact that the KZN Department of Transport already charges above the national average fees for licensing, the Province’s tariffs are kept constant (at 4%) in order to reduce leakages to other provinces as there is a notable migration of motor vehicles, especially by companies to cheaper provinces. An above inflation increase has the potential of exacerbating the problem A man caught under the influence of alchohol during a road block on the N11 between Newcastle and Ladysmith pictured instead of ameliorating it. being taken to Ekuvukeni Police Station Photo:MBUYISELO NDLOVU

58 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

2.5.7 fiNANCE poRTfoLio CoMMiTTEE Finance Portfolio Committee Meetings were held on the following dates:

AnnuAl RepoRt | 2017 - 2018 59 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Department 54/2017 TRANSPORT: STANDARDISATION Noting that: In previous years, motor vehicle OF VEHICLE LICENCING BY THE registration, licensing and NATIONAL DEPARTMENT OF The national Department of miscellaneous fees in KwaZulu- TRANSPORT Transport has put forward Natal, increased annually. proposals to standardise vehicle However, in an attempt to attain licencing in the country. uniformity in terms of fees in the RSA, the National Department of The Committee resolves that: Transport promulgated legislation to make miscellaneous fees the The Accounting Officer must National Minister’s competency. provide a report to the Finance To provide therefor, amendments Portfolio Committee by 30 June to Section 92 of the National 2017 giving an update on the Road Traffic Act 93 of 1996, progress made by the national were promulgated, whereby Department of Transport with miscellaneous fees became regards to the standardisation of the Minister’s competency and licensing of vehicles. the motor vehicle registration and licence fees nevertheless remained with the provincial MECs competency. Such legislation prescript was effective November 2010.

In this regard, a National Working Group has been established to discuss the standardisation of fees across the country, however, due to the ongoing court case between the National Department of Transport and the NaTIS contractor which was only resolved during April 2017, this Working Group has not convened as yet. With the control of the NaTIS now becoming a responsibility of the Road Traffic Management Corporation, it is considered that this should now receive some attention from the role-players tasked with the resolution of this issue.

It must also be mentioned that to date KZN is, on average, amongst the highest in terms of motor vehicle registration and licencing fees in the country. Accordingly, as the migration of vehicles from this Province to other Provinces where cheaper fees are payable, is becoming evident, the Directorate when seeking Treasury approval for the most recent fee increase of 1 April 2017 requested a 0% increase. A fee increase of 4% was subsequently approved and implemented on 1 August 2017, as directed by Provincial Treasury.

60 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Resolution No. Subject Details Response by the Department Department 54/2017 TRANSPORT: STANDARDISATION Noting that: In previous years, motor vehicle 55/2017 TRANSPORT: REPRIORITISATION Noting that: On the matter of the OF VEHICLE LICENCING BY THE registration, licensing and AND BUDGET CUTS Reprioritisation of funds towards NATIONAL DEPARTMENT OF The national Department of miscellaneous fees in KwaZulu- 1. The Department has Compensation of employees: TRANSPORT Transport has put forward Natal, increased annually. reprioritised R78.720 § The department has had proposals to standardise vehicle However, in an attempt to attain million in 2017/18 toward to reprioritise funds to licencing in the country. uniformity in terms of fees in the Compensation of employees. RSA, the National Department of Compensation of employees The Committee resolves that: Transport promulgated legislation 2. The Department has to cater for the shortfall to make miscellaneous fees the reprioritised R10.219 million attributed to the budget cuts The Accounting Officer must National Minister’s competency. in 2017/18 toward the against the personnel budget provide a report to the Finance To provide therefor, amendments payment of Izinduna salaries. during the 2016/17 budget Portfolio Committee by 30 June to Section 92 of the National process following the freezing 3. 2017 giving an update on the Road Traffic Act 93 of 1996, The Department’s funding of all non-OSD posts. progress made by the national were promulgated, whereby for the Provincial Road Department of Transport with miscellaneous fees became Maintenance Grant has been § The majority of the vacant regards to the standardisation of the Minister’s competency and substantially cut by R209.982 posts in the department are licensing of vehicles. the motor vehicle registration million in 2017/18 due to a in Transport Infrastructure and licence fees nevertheless change in the formula used (such as road worker aids, remained with the provincial MECs by National Treasury to field support officers and competency. Such legislation driver operators) and Law prescript was effective November allocate this grant. 2010. enforcement (such as traffic officers). The Committee resolves that: In this regard, a National Working § With regards to vacant posts Group has been established to The Accounting Officer must in Transport Infrastructure, discuss the standardisation of fees provide a report to the Finance the implication was such that across the country, however, due Portfolio Committee by 30 June the department continues to to the ongoing court case between 2017 on the extent to which service the National Department of rely heavily on consultants to delivery will be affected by the bridge the gap. The ability of Transport and the NaTIS contractor reprioritisation of funds and the the department to respond which was only resolved during budget cuts April 2017, this Working Group to emergency and critical has not convened as yet. With the road maintenance and repair control of the NaTIS now becoming is also significantly hampered a responsibility of the Road Traffic as a result of the vacancies Management Corporation, it is in critical departmental considered that this should now Maintenance and receive some attention from Construction Units, which are the role-players tasked with the resolution of this issue. able to a very short notice address road failures and It must also be mentioned that to other safety issues. Without date KZN is, on average, amongst these Units the department is the highest in terms of motor reliant on appointing private vehicle registration and licencing contractors to perform this fees in the country. Accordingly, work, this results in delays in as the migration of vehicles from addressing the road safety this Province to other Provinces concerns on the road as a where cheaper fees are payable, is result of the administrative becoming evident, the Directorate processes required to appoint when seeking Treasury approval for the most recent fee increase a contractor even if there is a of 1 April 2017 requested a 0% period contract in place and increase. A fee increase of 4% the significant delays of up to was subsequently approved and six months if the department implemented on 1 August 2017, as is required to award a tender directed by Provincial Treasury. to perform the repairs.

AnnuAl RepoRt | 2017 - 2018 61 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Department 56/2017 TRANSPORT: FUNDING FOR THE Noting that: The Provincial Treasury has CONSTRUCTION OF BARRIERS IN allocated an amount of R50 million THE JOZINI/MOZAMBIQUE BORDER for full engineering services, procurement of contractor services 1. The Department has allocated and accredited training. The current R48 million as a contribution estimated cost for the execution towards the construction of reinforced concrete barrier for of barriers in the Jozini/ 25km long boundary is R 148 671 379.16 (inclusive of contingencies, Mozambique border in order CPA and VAT). Details of the total to combat cross-border crime. project financial allocation are detailed in the table below: 2. No allocations have been made for the outer years of the 2017/18 MTEF. 015 364 000 379 The Committee resolves that: 6 560 13 246 128 865 148 671 The Accounting Officer must provide a report to the Finance Portfolio 515 Committee by 30 June 2017 on 515 107 whether the allocated amount of 5 107 R48 million will be sufficient to construct the barriers at the border. - 87 863 95 563 570 364 5 000 5 145 000 499 993 7 2017/18 2018/19 2019/20 Totals Activity Design 6 560 000 - Construction 36 295 000 Totals 48 000 Supervision

Based on the financial details furnished on table above, there is a budget shortfall of R98 671 379 required for the outer years. Therefore the allocated amount of R50 million will not be sufficient to complete all phases of the project.

57/2017 TRANSPORT: REDUCTION IN THE Noting that: A full report was submitted to the FUNDING FOR EPWP INTEGRATED committee GRANT FOR PROVINCES The department’s allocation for the EPWP Integrated Grant for Province was reduced from R56.055 million in 2016/17 to R33.645 million in 2017/18 financial year.

The Committee resolves that:

The Accounting Officer must provide a report to the Finance Portfolio Committee by 30 June 2017 giving reasons for the reduction of the EPWP Integrated Grant for provinces for the department.

62 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Resolution No. Subject Details Response by the Department Department 56/2017 TRANSPORT: FUNDING FOR THE Noting that: The Provincial Treasury has 58/2017 TRANSPORT: LEARNER TRANSPORT Noting that: 1. upDATE oN HANDiNG ovER CONSTRUCTION OF BARRIERS IN allocated an amount of R50 million of LEARNER TRANSpoRT THE JOZINI/MOZAMBIQUE BORDER for full engineering services, To THE DEpARTMENT of procurement of contractor services EDuCATioN (DoE) 1. The Department has allocated and accredited training. The current 1. Provision of learner R48 million as a contribution estimated cost for the execution transport in the province 1.1 On the 3rd of May 2017, the towards the construction of reinforced concrete barrier for continues to face challenges KwaZulu Natal Executive 25km long boundary is R 148 671 of barriers in the Jozini/ in terms of costs and Council approved the transfer 379.16 (inclusive of contingencies, Mozambique border in order efficiency. CPA and VAT). Details of the total of the function for the to combat cross-border crime. project financial allocation are provision and management 2. detailed in the table below: The department of Transport of subsidised dedicated 2. No allocations have been is looking to hand over learner transport from the made for the outer years of the the Learner Transport Department of Transport to 2017/18 MTEF. function back to the the Department of Education 015 364 000 379 Department of Education for effective from 1st of July 2017. The Committee resolves that: implementation. 6 560 13 246 128 865 148 671 1.2 The Department of Transport The Accounting Officer must provide The Committee resolves that: will continue to perform the a report to the Finance Portfolio 515 515 regulation (issuing operating Committee by 30 June 2017 on The Accounting Officer must 107

5 107 licenses) and enforcement whether the allocated amount of provide a report to the Finance R48 million will be sufficient to function. On request, the

- - Portfolio Committee by 30 June construct the barriers at the border. 2017 on the following: Department of Transport will

87 assist in areas of planning and 863 (a) Give an update on the service designs. 95 563 570 364 5 000 handover of the Learner Transport function back to the 1.3 The Department of Transport Department of Education for packaged all information implementation. and sent to Department of Education. Indicate whether the department 5 145 000 499 993 7 2017/18 2018/19 2019/20 Totals had identified best practices in 1.4 The information provided other mostly rural provinces such included details of all as the Eastern Cape and Limpopo contracts and costing per province where Learner Transport contract, list of all existing services have been implemented service providers and contact successfully, efficiently and in a cost details, the draft tender Activity Design 6 560 000 - Construction 36 295 000 Totals 48 000 Supervision effective manner document prepared by the Department.

Based on the financial details 1.5 The transitional arrangement furnished on table above, there on funding were also agreed is a budget shortfall of R98 671 upon and approved. 379 required for the outer years. Therefore the allocated amount of 1.6 R50 million will not be sufficient to The Department of Transport complete all phases of the project. issued notices informing all subsidised dedicated learner transport service providers 57/2017 TRANSPORT: REDUCTION IN THE Noting that: A full report was submitted to the that contract would not be FUNDING FOR EPWP INTEGRATED committee extended when they came to GRANT FOR PROVINCES The department’s allocation for the an end in June 2017. EPWP Integrated Grant for Province was reduced from R56.055 million 1.7 On 30 May 2017, Head- in 2016/17 to R33.645 million in Transport, sent a written 2017/18 financial year. confirmation to Head- The Committee resolves that: Department of Education that contract was ending on June The Accounting Officer must 2017 and the Department provide a report to the Finance of Transport had notified all Portfolio Committee by 30 June service providers of such. 2017 giving reasons for the reduction of the EPWP Integrated Grant for provinces for the department.

AnnuAl RepoRt | 2017 - 2018 63 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Department 73/2017 TRANSVERSAL: VARIATION ORDERS Noting that: The Department of Public Works TO THE DEPARTMENT OF PUBLIC requested the Variation Orders WORKS BY CLIENT DEPARTMENTS 1. There has been a notable on the Hyslop Road Project. The increase in the submission reason for the variation orders was of variation orders by due to the structural integrity of client departments to the the existing structure. Department of Public Works. The said variation Orders were in the 2015/2016 financial year. 2. This has an impact in the escalation of costs for The design team appointed by the infrastructure development Department of Public Works had and may also cause indicated that they were only able unnecessary delays. to discover the structural issues at construction stage and not during The Committee resolves that: the design stage of the project as a result of the restricted access to The Accounting Officers of client the site during the design stage. department must ensure that The restricted access to the site variation orders are managed and was due to the Regional / MLB submitted to the Department of Offices still being in occupation of Public Works timeously in order to the premises and certain structural contain costs and avoid delays in elements only being visible once the completion of infrastructure covering elements had been development. stripped.

These elements included:

• The removal of asbestos sheeting, which was only discovered when the contractor removed the existing ceiling coverings and found that the ceiling voids contained asbestos panels. An asbestos specialist had to therefore be appointed to remove the asbestos material.

• Once the asbestos panels were removed, the contractor discovered problematic timber sections. The purlins had rotated out of position due to a lack of support by the angle iron brackets.

• On removing the existing floor finishes, it was discovered that there had been some settlement to the original floor slab.

• The scope of works allowed for the floor screed to run across the flooring area of the main building. However it was discovered that the floor was grossly uneven, and the allowed for screed would not suffice. Therefore a new bed had to be cast to even the floor out.

64 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Department 74/2017 TRANSVERSAL: REGRESSING Noting that: A full report was submitted to the PERFORMANCE ON EPWP GRANTS committee ACROSS DEPARTMENTS 1. Many departments’ allocation for the EPWP grant has been reduced by National Treasury.

2. This is indicative of under expenditure or poor reporting on the grant performance to National Treasury or both.

3. National Treasury grant allocations are incentive based and dependent on the expenditure and reporting of grants by the departments.

The Committee resolves that:

Accounting Officers should:

(a) Ensure that EPWP grants are spent in full.

(b) Ensure that EPWP grants are accounted for in line with National Treasury rules and regulations.

(d) Consider imposing punitive measures to officials who fail to discharge their duties of managing the expenditure of EPWP grants effectively.

AnnuAl RepoRt | 2017 - 2018 65 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Department 75/2017 TRANSVERSAL: AMENDMENT OF Noting that: § The department notes the RESOLUTION 105 OF 2016 SHIFTS amendment of Resolution AND VIREMENTS 1. Resolution 105/2016 105/2016. regarding shifts and § Virements will be amended The department also notes as it is in conflict with the the resolution that Portfolio PFMA. Committees must monitor all shifts and Virements and 2. Many departments continue hereby commits to comply to undertake a lot of shifts with the instruction. and Virements after their annual budgets have been passed by legislature. 3. Departments do not notify their relevant Portfolio Committees when they undertake shifts and Virements. 4. Shifts and Virements are effectively amendments to the departments’ budgets. 5. Shifts and Virements may be a reflection of poor planning by departments.

The Committee resolves that:

Resolution 105/2016 is hereby amended as follows: a) Accounting Officers must ensure that Portfolio Committees are notified of all shifts and Virements that have been submitted to the Provincial Treasury. b) Portfolio Committees must monitor all shifts and Virements. 114/2017 TRANSPORT: LEARNER TRANSPORT Noting that: The Department hereby confirms FUNCTION TO GO BACK TO DoE that the learner transport The Learner Transport function function will be transferred to the is being reverted back to the Department of Education as from 1 Department of Education. April 2018.

The Committee resolves as Please see attached as Annexure A follows: the formal agreement approved by the Executive Council. The Accounting Officer must provide a report by 30 November 2017 on the following:

1. When will the Department of Transport move the budget for Learner Transport to the Department of Education?

2. A report on whether a formal agreement in this regard, signed by both parties, has been submitted to Provincial Treasury.

66 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Department 115/2017 TRANSPORT: PROJECTS DELAYED BY Noting that: COMMUNITY PROTESTS Some projects of the department could not be implemented due to community protests.

The Committee resolves that:

The Accounting Officer must provide a report by 30 November 2017 on the following:

1. Whether the delayed projects will resume in 2017/18 financial year.

2. What plan has the department put in place to ensure that local community contractors are involved in project implementation?

AnnuAl RepoRt | 2017 - 2018 67 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Department 116/2017 TRANSPORT: CANCELLED Noting that: SuBjECT: CoNSTRuCTioN CONTRACTS DUE TO POOR pERfoRMANCE iNDiCAToR foR PERFORMANCE AND POOR The department cancelled 2016/17 fiNANCiAL yEARS WORKMANSHIP some contracts due to poor workmanship, poor performance, 1. NuMBER of M2 of liquidation or abandonment of SuRfACED RoADS projects by service providers. REHABiLiTATED

The Committee resolves that: Number of lane-km of surfaced roads rehabilitated is the total The Accounting Officer must number of lane-km of surfaced provide a report by 30 November roads rehabilitated (reconstruction 2017 indicating what the of road layers). Rehabilitation is department is doing to hold non- the re-engineering of an existing performing and under-performing deteriorated surfaced road in order contractors accountable and to to bring its condition similar to its ensure that projects progress to original design and specification. completion. The rehabilitation is a capital intensive and expensive process but will result in an increase in the useful life of the road. The outputs is recorded complete when the road studs and line markings have been finalised.

68 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution No. Subject Details Response by the Department 119/2017 TRANSVERSAL: SLOW PROGRESS Noting that: A report showing posts applied IN FILLING OF VACANT CRITICAL to provincial treasury and Office POSTS (a) Many departments have had of the Premier for approval to fill, vacant critical posts for more date of application to Provincial than a year and these posts Treasury and Office of the Premier remain unfilled. and current status of such posts. (b) These critical posts include Head of Departments, Chief Financial Officer, Chief Directors and Directors. (c) Some departments say the cause of the slow progress in filling critical vacant posts is partly caused by delays in the Provincial Treasury and the Office of the Premier. (d) Both Treasury and Office of the Premier deny that they delay the processes of filling critical vacant posts in departments.

The Committee resolves that: 1. A special meeting will be convened by the Portfolio Committee on Finance with both the Provincial Treasury and the Office of the Premier in the 2017/18 financial year, together with all the affected departments to try and find a lasting solution that will help expedite the process of filling of vacant critical posts.

2.The Provincial Treasury and Office of the Premier must submit reports listing the applications for approval of posts received from 2016/17 financial year to date showing when the applications were received and the current status of the posts that were approved.

3. All departments that have applied to the Provincial Treasury and the Office of the Premier for approval to fill critical posts in 2016/17 financial year to date must provide reports showing the posts, date of application to the Provincial Treasury and Office of the Premier and the current status of those posts.

AnnuAl RepoRt | 2017 - 2018 69 Part C GovERNANCE Part C GovERNANCE

SCOPA RESOLUTIONS SCOPA Meetings were held on the following dates:

Resolution Subject Details Response by the Department No. 144/2016 PERFORMANCE Noting that: In relation to the 2015/16 financial year: AGREEMENTS FOR THE 2015/16 (a) The Public Service Regulations Performance Agreements for all Senior Management Service AND THE 2016/17 (2001) provide that Departments (SMS) members were signed. FINANCIAL YEARS must manage performance to enhance organisational efficiency 6 Performance Agreements for employees below SMS level and effectiveness and to achieve were not signed. There were various reasons for non- compliance as follows: results. • Employees on extended leave of absence (sick (b) The Regulations further provide leave / temporary incapacity leave / injury on that all members of the SMS duty leave) (2 employees) must enter into a performance agreement and that the • Employees on suspension (3 employees) performance of other employees must also be managed. • Challenges over placement of an employee who had to be transferred due to a Labour (c) The Regulations also provide that Court ruling and therefore a performance the Head of Department must agreement could not be entered into (1 ensure that employees comply employee) with the Regulations and must deal immediately and effectively No steps can be taken against those employees who are on an with any breach. extended leave of absence or suspension. The non-completion of a performance agreement for the employee who was (d) The 2001 Regulations are transferred was no fault of the employee and therefore no applicable to performance steps are required to be taken. The employee did complete a management agreements for performance agreement for the 2016/17 financial year after both the 2015/16 and the the placement challenges were resolved (Attached as Annexure 2016/17 financial years (the A) new Regulations having only commenced on the 1 August 2. In relation to the 2016/17 financial year: 2016). Performance Agreements for all Senior Management Service (SMS) members were signed. The Committee resolves:- 56 Performance Agreements for employees below SMS 1. In relation to the 2015/16 financial level were not signed. There were various reasons for non- year:- compliance as follows:

That all Departments provide a • Employees failed to submit a performance breakdown to the Committee by agreement (34 employees) 31 January 2017 of all performance agreements for the 2015/16 financial year that were not signed, the reasons • Employees on extended leave of absence (sick for the non-compliance, the steps taken leave / temporary incapacity leave / injury on against officials who did not sign and if duty leave) (6 employees) no steps were taken, the reasons. • Employees on suspension (3 employees) 2. In relation to the 2016/17 financial year:- • Disputes over job description resulting in performance agreement not being able to be That all Departments provide a entered into (13 employees) breakdown to the Committee by 31 January 2017 of all performance Disciplinary action is to be instituted against the employees agreements for the 2016/17 financial who failed to submit a performance agreement. No steps can year that have not yet been signed, the be taken against those employees who are on an extended reasons for non-compliance, the steps leave of absence or suspension. The mediation process is taken against officials who have not yet still ongoing for those employees with disputes over their job signed and if no steps have been taken, descriptions. (Attached as Annexure B). the reasons.

70 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 146/2016 DEPARTMENT Noting that: Commitments OF TRANSPORT: AUDIT The Department presented a Limitation of scope (spreadsheet attached) IMPROVEMENT comprehensive Audit Improvement STRATEGY Strategy • The Auditor-General indicated that SCM documents relating to thirty one (31) orders were not submitted for The Committee resolves: audit.

1. That the Accounting Officer • All information relating to the above have been obtained ensures that the plan and reviewed. All requested documentation is now is implemented by the available for audit. Department and a progress report is submitted to the Retention Monies on Construction Contracts Committee by 31 January • 2017. The department has developed a Retentions’ spreadsheet which is being updated on a monthly basis. Updating of December retentions withheld is in progress. 2. That the Committee will invite the Department to present its • Validation and completeness checks are being done on an progress report to the follow- ongoing basis to ensure the accuracy and completeness of up hearings in February 2017. the schedule.

SCM Centralisation at Head Office

• Centralisation of the SCM function at the Head Office precinct is currently being implemented.

• The centralisation process has been supported by the CFO and approved by the HOD

• The review and confirmation of BAS commitments is still in progress. Out of 5600 transactions identified 2500 or 45% of the transactions were reviewed from Mid- November up to the end of December 2016. The review process is still in progress.

• Contract management issues are currently being addressed with SCM collecting documentation relating to major contracts, adjudication reports and orders issued (commitments).

Expenditure for tangible capital assets

• Twenty four orders amounting to R272 million were identified with payments for materials on site. These payments were for Rehabilitation and Upgrade projects on our roads network.

• The Auditor-General has agreed that in order to clear this qualification the department would need to provide evidence of the utilisation of the materials in the construction or rehabilitation of the road network.

• Nineteen orders have been verified as complete with certification from the engineers. These are also supported with pictures and Transfers of Rights certificates for the materials utilised.

• The evidence relating to the five outstanding are currently being obtained from the contractors and the relevant engineers.

• d a discussion document detailing the concerns with the immovable asset data of the department.

AnnuAl RepoRt | 2017 - 2018 71 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 16/2017 DEPARTMENT Noting that: 1. In relation to the 2015/16 financial year: OF TRANSPORT: PERFORMANCE (a) For 2015/2016, six employees All 6 cases have been resolved as follows: AGREEMENTS below SMS level did not sign FOR THE performance agreements. Of these, - The disciplinary hearings took time to be finalised 2015/2016 AND three employees have been on for the 3 employees on suspension and all 3 THE 2016/2017 paid suspension since 2011, one employees then lodged an Appeal on the dismissal FINANCIAL YEARS sanction. The Appeals process has subsequently (RELATING TO has been on extended sick leave for been finalised and 2 of the employees were RESOLUTION an unspecified period and one on 144/2016) temporary incapacity leave since dismissed from service with effect from 18-08- 2014. 2017 and the 3rd employee was dismissed from service with effect from 08-09-2017. (b) For 2016/2017, 56 employees below SMS level did not sign - 1 Employee was transferred due to Labour Court performance agreements. Of these, ruling and there were challenges regarding her 34 employees failed to submit a placement which resulted in her not being able to performance agreement, 6 were conclude a performance agreement. on extended sick leave, 3 on paid suspension and 13 involved - 2 Employees who were on extended sick leave disputes over their job descriptions. (incapacity leave) / injury on duty leave – steps Disciplinary action is to be instituted were taken to ensure that such employees signed against the 34 employees who a performance agreement. The matter is resolved failed to submit a performance in the sense that the employees have now signed agreement. The mediation process a performance agreement. is still ongoing for the 13 employees with disputes over their job 2. In relation to the 2016/2017 financial year:- descriptions. All 56 cases have been resolved as follows: The Committee resolves that: - 28 Employees had in fact signed performance 1. In relation to the 2015/2016 agreements timeously but such had not been financial year:- received for capturing on PERSAL by the respective Human Resource component or had been That the Accounting Officer submit a mislaid. The performance agreements for the 28 detailed report by 30 June 2017, stating employees have subsequently been captured on the reasons for the matters being so PERSAL. long outstanding, the steps taken to resolve the matters and the expected - 13 Employees had a dispute over their job timeframes for bringing the matters to description. Following a mediation process conclusion. / consultation process, the performance agreements for all 13 employees have been signed 2. In relation to the 2016/2017 and captured on PERSAL. financial year:- - 3 Employees who did not submit / submitted That the Accounting Officer submit a late – disciplinary action was taken against 2 report by 30 June 2017 on:- of the employees and the 3rd employee retired whilst disciplinary action was being taken. The · Disciplinary steps taken against the performance agreements for all 3 employees have 34 employees who did not submit been signed and captured on PERSAL. performance agreements; - 3 Employees on suspension - the disciplinary · Progress made regarding mediation hearings took time to be finalised and all 3 for those employees with disputes employees then lodged an Appeal on the dismissal over their job descriptions; and sanction. The Appeals process has subsequently · Steps taken to resolve the matters been finalised and 2 of the employees were dismissed from service with effect from 18-08- pertaining to the 6 employees being rd on extended sick leave and the 3 2017 and the 3 employee was dismissed from employees on paid suspension. service with effect from 08-09-2017. - 9 Employees who were on extended sick leave (incapacity leave) / injury on duty leave – steps were taken to ensure that such employees signed a performance agreement. The matter is resolved in the sense that the employees have now signed a performance agreement.

72 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 17/2017 DEPARTMENT Noting that: The review of BAS commitments OF TRANSPORT: AUDIT The progress report of the Department • This exercise has been finalised and all information IMPROVEMENT on the implementation of its audit submitted to the Auditor-General; STRATEGY improvement strategy. (RELATING TO • The department is continuing to conduct quarterly RESOLUTION The Committee resolves that: reviews of the Commitment data in the new financial 146/2016) year; 1. That the Accounting Officer submit a further progress report • These matters were cleared during the 2016/17 audit. on outstanding matters by 30 June 2017, in particular on : The verification of the 5 remaining orders pertaining to the utilisation of materials in construction of roads • The review of BAS commitments • The remaining five orders were obtained and provided to • The verification of the 5 remaining the Auditor-General for audit; orders pertaining to the utilisation of materials in the construction of • In total all twenty four orders amounting to R272 million roads. for payments for materials on site, were obtained and provided for audit. • The immovable assets register; and • A forensic investigation as recommended by the Auditor- • Verification of irregular expenditure. General was undertaken and completed.

• The forensic audit concluded that the department acted correctly in terms of the contractual conditions in processing these payments. The investigation did however identify certain acts of fraud and negligence and these matters will be further subjected to criminal investigation in Phase 2.

• This matter of materials on site, was assessed by the Auditor-General and was cleared during the audit.

The immovable Assets register

• The department in consultation with the Provincial Treasury specialist immovable asset consultant developed a discussion document detailing the concerns with the immovable asset data of the department.

• This discussion document was prepared to allow the discussion of the issues faced by the department and the possible solutions the department could implement to resolve this qualification.

• The department required guidance to be provided by the National Treasury to resolve the specific challenges being faced by the department.

• A meeting between the MEC Transport, Community Safety and Liaison and the MEC Finance was held to escalate the outstanding accounting guidance required from National Treasury. The MEC Finance agreed to escalate the matter to the National Minister of Finance.

• A submission setting out the problems being experienced was drafted to be sent to the National Minister of Finance for signature by the two MECs, however this was not sent as a response was obtained from National Treasury prior to signature.

AnnuAl RepoRt | 2017 - 2018 73 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 90/2017 DEPARTMENT Noting that: The Audit Improvement Strategy for the Department was OF TRANSPORT: submitted to the committee AUDIT The Department has received a qualified IMPROVEMENT audit opinion for the third consecutive PLAN year.

The Committee resolves:-

That the Accounting Officer must submit an Audit Improvement Plan to the Committee by 31 January 2018.

91/2017 DEPARTMENT Noting that: (1) In order to prevent the recurrence of irregular OF TRANSPORT: expenditure with regards to SCM the department has QUALIFICATION a) The Department did not disclose put in place an SCM Policy and Procedure Manual. The MATTER: the full extent of irregular department through centralization of SCM in Head Office expenditure for payments made in has introduces addition checks to prevent the recurrence. EXPENDITURE contravention of SCM prescripts as The BAC has also added additional checks on tender MANAGEMENT: required by Section 40(3) (b)(i) of documents to ensure that there is full compliance on SCM IRREGULAR EXPENDITURE the PFMA . processes b) Consequently the full extent of The Department undertook an extensive process in identifying the understatement of irregular irregular expenditure throughout all the regions and head expenditure stated at R4,48 office and consolidated the registers to provide a final billion in note 26 to the financial disclosure to the Auditor-General. statements, cannot be determined . The department submitted an irregular expenditure schedule to the AG for prior years (2014/15 and 2015/16) as well as the c) Irregular expenditure has increased 2016/2017 financial year. from R527,14 million in 2015/16 to R4,48 billion in 2016/2017 . The primary focus of the department was to disclose all identified irregular expenditure and thus the disclosure of the d) Effective steps were not taken to R4,48 billion of irregular expenditure in the 2016/2017 year . prevent irregular expenditure. The increase in Irregular Expenditure can be largely attributed e) The irregular expenditure is in to the multi –year projects that the department has. This in contravention of Section 38(1)(c)(ii) effect means that any order that may have been irregular in the of the PFMA and treasury regulation initial year will result in increasing Irregular Expenditure for the 9.1.1 subsequent years. It must also be noted that the department had a backlog of identifying the Irregular Expenditure and The Committee resolves: therefore the discovery that an irregular transaction had occurred, had actually occurred after the expenditure had been That the Accounting Officer reports to incurred. the Committee by 31 January 2018 on: With the centralization of the SCM processes at head office and (1) The measures that have been the approval of the departmental SCM policy and procedure instituted by the Department to manual, the occurrence of irregular expenditure has decreased. prevent a recurrence of irregular The department had also undertaken to terminate all month to expenditure and to create effective month contracts that also resulted in irregular expenditure. internal control in respect of laws and regulations. (2) The Department does not have the capacity to address the backlog of investigation which span across three (2) That a report be submitted on financial years and therefore has requested capacity from action taken against those officials Provincial Treasury. It is the intention of the department who did not take effective steps to to establish a division that will coordinate all processes prevent irregular expenditure. that affect the treatment of irregular expenditure. This division will also address the backlog of investigations. Capital Assets and progress towards the development of an accurate and The appointed team would assist and contribute by ensuring complete asset register. compliance, completeness and accurate reporting at year-end in the department’s financial statements.

To date, irregular expenditure incurred for the 2017/2018 year would have arisen from the previous year’s irregular expenditure orders and any new irregular will be identified and investigated when reported. Disciplinary steps will follow thereafter.

74 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 92/2017 DEPARTMENT Noting that: A process has been put in place to monitor accruals and OF TRANSPORT: payables where the approval of invoices has been centralised. QUALIFICATION (a) Accruals and payables are stated at Treasury has appointed a specialist to assist in improving the MATTER: R752,87 million in note 22 to the system to manage accruals and payables these specialists ACCRUALS AND financial statements. will also review and provide inputs on the system during the PAYABLES interim financial statement submission. (b) The Department did not maintain an adequate system to disclose all invoices for work done at year-end as accruals and payables.

(c) It is therefore impractical to determine the full extent of the understatement of accruals and payables not recognised.

The Committee resolves:-

That the Accounting Officer reports to the Committee by 31 January 2018on the action plan to develop an adequate system to disclose all invoices for work done at year-end as accruals and payables. 93/2017 DEPARTMENT Noting that: The Department was granted authority by the Premier to fill OF TRANSPORT: 262 critical vacant funded posts. The status of the advertising HUMAN There has been an overall improvement and filling thereof is as follows: RESOURCE in the vacancy rate in the Department MANAGEMENT: Filled = 50 FILLING OF The vacancy rate for the current year VACANT POSTS stands at 8%, Advertised and in various stages of the selection process = 167

The senior management vacancy rate for Still to be advertised = 45 the current year stands at 29%.

The Committee resolves:-

That the Accounting Officer reports 31by january 2018 on progress made in the filling of vacant funded posts. 94/2017 DEPARTMENT Noting that: The Department is awaiting the schedule of the above- OF TRANSPORT: mentioned cases from the Auditor- General as this was not CONSEQUENCE 47 Suppliers submitted false declarations formally communicated during the audit. MANAGEMENT of interest with an amount of R84 502 281 million being involved. The finding relates to where the department awarded business to persons in service of other state institutions. Should it result The Committee resolves:- in an outcome where that official obtained the necessary permissions through the” Remunerative work outside Public That the Accounting Officer reports by service” policy , the respective state institutions will have no 31 January 2018 on what investigations further action to take. have been instituted against the transgressions ,what measures have The Department will begin the process to restrict the supplier been introduced to prevent repeat once this information is received. transgressions, and what actions have been taken against those who The Department in the previous year received a similar finding transgressed. for 22 cases with a value of R82 477 086. The investigations have resulted in 16 cases where no further action was required as there was no direct relationship with the affected company performing work for the Department. The value of these cases that required no further action is R80 892 373.

AnnuAl RepoRt | 2017 - 2018 75 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 95/2017 DEPARTMENT Noting that: In order to prevent the recurrence of irregular expenditure OF TRANSPORT: with regards to SCM the department has put in place an PROCUREMENT (a) Goods and services with a value SCM Policy and Procedure Manual. The department through AND CONTRACT below R500 000 were procured centralization of SCM in Head Office has introduces addition MANAGEMENT without obtaining the required checks to prevent the recurrence. The BAC has also added price quotations. additional checks on tender documents to ensure that there is full compliance on SCM processes. (b) The procurement of some goods and services with a transaction value above R 500 000 was not subject to competitive bidding.

The Committee resolves:

1. That the Accounting Officer reports by 31 January 2018 on action taken to ensure that the above findings are addressed and that further such findings do not occur in the next audit.

2. That the above report specifies the sanctions that will be implemented against those responsible for the transgressions listed.

96/2017 DEPARTMENT Noting that: A action plan was submitted to the department OF TRANSPORT: PREDETERMINED That the Auditor-General in reviewing OBJECTIVES AND performance information and auditing ACHIEVEMENT OF the information presented in the PLANNED TARGETS Department’s annual performance report, found that the Department’s performance information for Programmes 2, 3 and 4 was unreliable.

The Committee resolves:

That the Accounting Officer reports by 31 January 2018 on an action plan to develop an adequate performance management system to maintain records and ensure that sufficient and appropriate audit evidence is available so that no further findings on predetermined objectives occur in the next audit.

76 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 97/2017 DEPARTMENT Noting that: A meeting between National Treasury, the Auditor-General OF TRANSPORT: Provincial Treasury, Public Works and the department has been AUDIT (a) The Department did not recognise scheduled for 27 February 2018. QUALIFICATION the value of all road infrastructure ON IMMOVABLE assets that it had gained ownership TANGIBLE CAPITAL of through expropriation, as ASSETS required by the Modified Cash Standards (MCS) on Capital Assets prescribed by National Treasury;

(b) The Auditor-General could not determine the full extent of the understatement of immovable tangible capital assets;

The Committee resolves:

That the Department meet with National and Provincial Treasury, the Auditor- General and the Department of Public Works to resolve the issue and to report progress to the Committee by 31 January 2018.

AnnuAl RepoRt | 2017 - 2018 77 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 111/2017 TRANSVERSAL Noting that: (1) The Department undertook an extensive process in IRREGULAR identifying irregular expenditure throughout all the EXPENDITURE (a) The total amount of irregular regions and head office and consolidated the registers to expenditure across departments provide a final disclosure to the Auditor-General. and public entities of provincial government remains unacceptably The department submitted an irregular expenditure schedule high in the 2016/2017 financial year. to the AG for prior years (2014/15 and 2015/16) as well as the 2016/2017 financial year. (b) This indicates that serious problems exist in departments and public The primary focus of the department was to disclose all identified irregular expenditure and thus the disclosure of the entities in complying with the R 4,48 billion of irregular expenditure in the 20162017 year . provisions of the Public Finance Management Act, adhering The guideline on irregular expenditure issued by National to Supply Chain Management Treasury details the treatment of irregular expenditure which processes and detecting and includes in the process a detailed investigation to confirm disclosing irregular expenditure. amounts involved, liability and whether the state suffered any loss or damage. (c) In terms of section 38(1)(h)(iii) and section 51(1)€(iii) of the The Department does not have the capacity to address the PFMA , it is the responsibility of backlog of investigation which span across three financial years the Accounting Officer and the and therefore has requested capacity from Provincial Treasury. Accounting Authority respectively It is the intention of the department to establish a division to take effective and appropriate that will coordinate all processes that affect the treatment of irregular expenditure. This division will also address the disciplinary steps against any official backlog of investigations. in the service of the department or public entity who makes or permits The appointed team would assist and contribute by ensuring Irregular Expenditure. compliance, completeness and accurate reporting at year-end in the department’s financial statements. The Committee resolves: The Accounting Officer has however written disciplinary letters That the Accounting Officers of the to the Branch Heads to begin the process of investigating all departments and Accounting Authorities cases raised in the AG Management Report. of the public entities report to the Committee by 31 January 2018 on: Written warning letters have been issued to officials where the case is clear and ownership of responsibility can be held. 1. What disciplinary steps have been taken by the Accounting Officers (2) There is no forensic investigation that is currently in terms of section 51(1)(e)(iii) of conducted into the irregular expenditure that was the PFMA against those people incurred during 2016/17 Financial Year. responsible for the irregular expenditure. If no disciplinary action However, there is a forensic investigation that is completed has been taken, the Accounting from the irregular expenditure that was incurred in 2015/16 Officers and Accounting Authorities on potential irregularities in the payments made for the must provide reasons for this. construction contracts during the February and March 2016 (Material on site). The money spent during the review period of February and March 2016 amounts to R1.6 billion.

2. Whether any forensic or internal Investigation looked into 86 payments in excess of R4 million that were made during February/March 2016 as well as the audit investigations are being Tender documents. The investigation proved that the contracts conducted into the irregular were in terms of the GCC 2010, which forms part of the expenditure which was incurred contractual arrangements between the supplier and KZN DoT during the 2016/2017 financial year. and therefore these prepayments were allowed.

However, criminal activities and an element of fraud was noted on documentation that was used to support a contractor’s invoice relating to materials on site. A second phase of the investigation has been initiated to investigate these criminal activities and a criminal case has been registered.

78 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 112/2017 DEPARTMENT Noting that: The payments as identified by the Auditor-General are OF TRANSPORT listed next page:- (VOTE 12): a) Financial statements, accruals SETTLEMENT and payables not recognised OF PAYMENT exceeded the payment term of TO CREDITORS 30 days, as required in Treasury WITHIN 30 DAYS Regulations 8.2.3.

b) Most departments do not comply with the 30 days’ payment policy and the amounts incurred would therefore have constituted unauthorised expenditure had the amount due been paid in a timely manner.

The Committee resolves:

That the Accounting Officers of the relevant departments report by 31 January 2018 on:

1. The names of service providers owed and not paid on time.

2. The amount owed to those service providers.

3. The due date for payment.

4. The officials responsible for making payment to service providers.

AnnuAl RepoRt | 2017 - 2018 79 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 113/2017 TRANSVERSAL: Noting that: According to AG, 9 officials were identified to have been OFFICIALS DOING doing business with organs of the state. Department has been BUSINESS WITH a) That a portion of the irregular liaising with the relevant state organs to receive confirmation GOVERNMENT expenditure incurred in the of work done, the period as well as the amount paid to such Departments in the 2016/2017 companies. All investigations have been completed. financial year was due to employees conducting business with the · 07 cases of the completed investigations are regards as government without approval. closed due to such companies having been found to either have: b) That the report of the Auditor- General on this matter indicates - Been confirmed by relevant state organs to that there were a number of have not conducted any business with these employees doing business with the companies or if any business was done, it was government. prior the year under review;

The Committee resolves: - The CSD report confirmed no connection of the employee with the referred company; and That the Accounting Officers and Accounting Authorities report by - The remunerative work was performed prior 31 January 2018 on the number of to appointment as permanent employee of the employees conducting business with Department of Transport. government, and where any irregularities have occurred, what action is being/has In 02 cases, the completed investigations have confirmed that been taken against the employee in each these companies have indeed done business with organs of the case. state as identified by AG. Responsibility managers have been advised to implement consequence management.

80 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 114/2017 TRANSVERSAL: Noting that: 1. Investigation INVESTIGATIONS (a) Most departments have · All forensic investigations are conducted by Provincial investigations that have been Treasury. Currently Provincial Treasury has 17 forensic completed or are in progress. coinvestigations in progress.

(b) Investigations are either referred · There are 15 forensic investigations case that have been to Provincial Treasury or an completed. There following is the list of completed cases. independent firm is appointed. FR24/2010 FR26/2012 FR20/2015 (c) Most investigations have been going on for the past years without being FR37/2010 FR29/2012 FR46/2015A/B finalised. FR12/2011 FR08/2013 FR25/2016

The Committee resolves: FR05/2012 A/B FR38/2014 FR05/2012 C FR39/2014 1. That the Accounting Officers of FR19/2012 FR40/2014 departments and Accounting Authorities of public entities report 2. Copies of the forensic reports are obtainable from to the Committee by 31 January Provincial Treasury. 2018 on the following: 3. In terms of the 15 completed cases, the Department has · What investigations are currently implemented recommendations of 6 cases. There is an underway in the departments and official that has been dismissed and on the other hand public entities and what deadline there are officials that have been issued with the written has been set for these to be warnings. completed? There Department has been experiencing some challenges · What investigations have been regarding the appointment of presiding officers who kept completed in the 2015/16 and quitting this appointments. To address this the Department has 2016/17 financial years? therefore taken a resolution of utilising the Labour Relations staff within the National Departments to assist with the Disciplinary 2. The Committee be provided with processed. Engagements are ongoing with the presiding officers copies of the reports on completed and Chairpersons that have been appointed. investigations by 31 January 2018. There was one civil recovery where assets worth 3. That the Accounting Officers of R543 328 962.62 seized from the property of the dismissed Official and several service providers who reportedly received Departments and Accounting millions in kickbacks from plant hire companies that were Authorities of public entities report awarded contracts to repair KZN’s ailing road infrastructure. on action taken to implement the recommendations contained Payments were procured by official for nonexistence service in the reports on investigations, providers. The amount of R231 010.00 was paid into and account disciplinary cases that may have of an official. On 20 December 2017, the official pleaded guilty been initiated, criminal cases and in Pietermaritzburg Regional Court 8. The official was sentenced recovery of money by way of civil to 5 years imprisonment wholly suspended on condition that she proceedings. pays R50 000. 00 as a down payment to the Department and the date of conviction and R2000.00 per month for the period of five years. The amount of R61 010.00 must be paid as a once off payment anytime during the period suspension into the account of the Department.

Payments where procured by officials of none existing service providers. The amount of R388 750.32 was paid to FNB account. The official pleaded guilty on the 17 Many 2017 in Pietermaritzburg Court 1. She was sentenced to 8 year imprisonment wholly suspended on condition that she pays R170 000.00 as down payment to the Department on date of conviction and thereafter R3 700.00 per month.

Internally, the Department is currently initiating another civil recovery amounting to R632 527.50 through legal services.

AnnuAl RepoRt | 2017 - 2018 81 Part C GovERNANCE Part C GovERNANCE

Response by the Department

The payments as identified by the Auditor-General are listed below:-

payment Supplier Name Amount invoice receipt payment No. of Days person no. R date Date outst. Responsible

1444528 Queensburg equipment rental 106 306 01/04/2016 25/05/2016 54 Mr. L Mtambo

1470966 TEKEWENI CIVILS 489 623 23/11/2016 17/01/2017 55 Mr. S Mbhele

UMYEZANE CONTRACTIVE AND 1468068 217 120 09/11/2016 12/12/2016 33 Mr. L Mtambo TRADING

1472151 MIDMAR PLANT HIRE 488 048 14/12/2016 20/01/2017 37 Ms. B Ntombela

1470433 Mediamark (Pty) Ltd 319 150 2016/12/13 2017/01/13 31 Mr. N Sukazi

1476921 Eyethu Engineers Cc 1 129 610 2017/01/25 2017/03/07 41 Ms. K Sibiya

1461947 Smec South Africa (Pty) Ltd 815 676 2016/07/08 2016/10/26 110 Ms. K Sibiya

1473334 Eyamathenjwa Projects 500 000 2017/01/09 2017/02/15 37 Mr. N Sukazi

1460132 Crossmoor Transport 3 930 478 2016/09/06 2016/10/10 34 Ms. S Nkosi

1472715 Raubex KZN (Pty) Ltd 2 432 712 2016/12/14 2017/01/31 48 Ms. K Sibiya

1472118 Emhlungwini Trading & Constr. 34 899 2016/11/02 2017/01/26 85 Mr. V Chetty

1473673 Pholile Business Solutions 136 521 2016/11/07 2017/02/08 93 Ms. B Nogwanya

Nqabayamafa Constr. & 1471650 17 655 2016/07/01 2017/01/24 207 Mr. V Chetty Services

1454579 Pholile Business Solutions 113 216 2016/07/11 2016/08/24 44 Mr. V Chetty

1462618 Siyejabula Security Solutions 87 196 2016/08/02 2016/10/31 90 Mr. V Chetty

1450000 DT Risk Management 85 454 2016/04/30 2016/07/14 75 Mr. V Chetty

1441800 Ithembalethu Security Services 59 600 2016/03/31 2016/05/04 34 Mr. V Chetty

1455107 Bafana Bami General Trading 30 000 2016/07/11 2016/08/30 50 Ms. T Mabaso

82 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 115/2017 TRANSVERSAL: Noting that: A report .was submitted to the Committee CONSEQUENCE MANAGEMENT (a) Effective disciplinary steps were not taken against officials who committed transgressions of the PFMA and Treasury regulations.

The Committee resolves:

That the Accounting Officers report to the Committee by 31 January 2018 on actions taken against officials who transgressed the provisions of the PFMA as well as reasons for not taking action against officials who committed transgressions.

AnnuAl RepoRt | 2017 - 2018 83 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 116/2017 TRNAVERSAL: Noting that: Financial statements are prepared and submitted to Provincial MATERIAL Treasury on a quarterly basis and are reviewed by both MISSTATEMENTS (a) That the audit finding on material Internal Audit and Financial Reporting at Provincial Treasury. AND OMISSIONS misstatements and omissions in In addition, the Provincial Treasury has appointed a team to IN SUBMITTED the Annual Financial Statements assess the department’s processes and assist to improve these ANNUAL submitted to the Auditor-General processes where necessary. FINANCIAL for audit purposes has been STATEMENTS reoccurring in the majority of departments and certain public entities over a number of years.

(b) That the audit outcomes of these departments and public entities would have been qualified if the adjustments had not been made by the Auditor-General.

(c) That it is the responsibility of the Accounting Officer in terms of Section 40(1)(b) of the Public Finance Management Act to prepare the financial statements for each financial year in accordance with generally recognised accounting practice and that failing to do so constitutes misconduct in terms of Section 81(1)(a) of the Act.

(d) That the Public Accounts Standing Committee is very concerned at the recurring findings of the Auditor- General on this matter over a number of years which indicates a lack of proper financial accounting and financial management skills within these departments and public entities.

The Committee resolves:-

1. That in compliance with Section 40(1)(b) of the Public Finance Management Act, Accounting Officers be requested to ensure that financial statements are prepared regularly during the financial year and that due diligence is exercised to ensure that the financial statements are correct in all respects and that the financial statements are submitted to Internal Audit and the Provincial Audit and Risk Committee timeously.

2. That all Accounting Officers report by 31 January 2018 on action taken in terms of resolution (1) above to resolve this audit issue

84 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 117/2017 TRANSVERSAL: Noting that: N/A 2016/2017 FRUITLESS AND That some provincial departments and WASTEFUL public entities incurred fruitless and EXPENDITURE wasteful expenditure in the 2016/2017 financial year.

The Committee resolves:

That the Accounting Officers of Departments and Accounting Authorities of public entities report by 31 January 2018 on the following:

1. The reasons for the fruitless and wasteful expenditure being incurred in the 2016/2017 financial year.

2. Action taken against those officials responsible for incurring the fruitless and wasteful expenditure.

3. Recovery of money from those responsible and;

4. Measures put in place to ensure that fruitless and wasteful expenditure does not occur in future.

AnnuAl RepoRt | 2017 - 2018 85 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 118/2017 TRANSVERSAL: Noting that: 1. A list of the vacant Senior Management Service posts HUMAN is attached. RESOURCES (a) The high number of vacancies MATTERS – which exist in Senior Management 2. 4 of the 10 vacant Senior Management Service FUNDED VACANT positions within departments and posts on the Departments approved Structure POSTS NOT public entities and the adverse have been advertised and are in the various stages FILLED WITHIN 12 effect this is having on the findings of the selection process (e.g. scheduling / short- MONTHS of the Auditor-General particularly listing / interviews / security screening). Of the in the financial and performance remaining 6 posts, 3 are awaiting the finalisation of management, compliance with laws the review of the organisational structure before and regulations, leadership and they can be submitted for job evaluation, 1 post is governance. awaiting sign-off on the draft advert and 2 posts are awaiting further instruction regarding the filling as (b) That certain departments and no suitable candidate was found. Monthly reports public entities were experiencing on the progress of filling SMS posts are submitted to difficulties in their recruitment EXCO and the Office of the Premier which enables processes, including delays due to Management to monitor the progress made and take verification of qualifications and action where necessary. vetting of applicants and having to advertise posts a number of times 3. The department will provide relevant reports to the due to applicants not being suitable Transport Portfolio Committee as required. for the position.

The Committee resolves:

That the Accounting Officers of the relevant departments report by 31 January 2018 on the following:

1. A list of vacant senior management posts in their respective departments.

2. What action is being taken in the departments and public entities to address the findings of the Auditor- General with regard to the filling of vacancies in senior management positions?

3. That the Portfolio Committees be requested to monitor filling of all vacant funded posts in departments, especially key positions and senior management positions.

86 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 119/2017 DEPARTMENT Noting that: The Auditor General did not raise an Audit Finding on movable OF TRANSPORT tangible capital assets in its 2016/17 Audit Report. (VOTE 12): ASSETS a) That the Standing Committee on REGISTER Public Accounts is very concerned at audit findings relating to movable tangible capital assets and minor assets.

b) That the auditor was unable to obtain sufficient appropriate evidence that management had properly accounted for movable tangible capital assets and minor assets due to the status of the accounting records and inadequate information in support of the assets mentioned.

c) That the reconciliations and reviews of the Fixed Asset register to the physical assets were not adequately performed.

d) The monthly monitoring and updates were not in place to ensure that the discrepancies are timeously identified and addressed.

The Committee resolves:

That the Accounting Officers of the relevant departments report by 31 January 2018 on:

5. Departmental asset management policy which will address weaknesses identified by the Auditor General.

6. The completeness of the department’s asset registers.

What action will be taken against those who do not comply with the policy.

AnnuAl RepoRt | 2017 - 2018 87 Part C GovERNANCE Part C GovERNANCE

Resolution Subject Details Response by the Department No. 120/2017 TRANSVERSAL: The Committee resolves: 1. This is to confirm that the Accounting Officer and PERFORMANCE all Senior Managers of the Department have signed AGREEMENTS That the MECs of the Departments be performance agreements for the 2017/2018 cycle. requested to report by 31 January 2018 on: 2. This Department utilises the performance agreement 1. Whether the Accounting Officers template issued by the Department of Public Service and and Senior Managers in their Administration. Item 8 of the performance agreement departments have all signed template makes provision for actions to be taken to performance agreements and if not, address poor/non-performance which must be based on the reasons for non-compliance in Chapter 4 of the SMS this regard. 3. Not all the performance agreements of Senior 2. Whether performance agreements Management Service Members include the general clearly set out the consequences responsibilities to prevent unauthorised expenditure, for non-performance and under- irregular expenditure or fruitless and wasteful expenditure performance on responsibilities as a key performance indicator. The SMS Handbook does set out in the agreements and not make it mandatory for such to be included and this financial mismanagement and the Department is also not aware of any other directive for sanctions which will be imposed this to be set out in the performance agreement. in the event of non-performance, However, this requirement is specifically covered in the annual under-performance or financial appointment letter from the HOD appointing the Senior mismanagement Management Service Member as a responsibility manager. Whether performance agreement include as a key performance indicator the general responsibilities of the Accounting Officers and Senior Managers to prevent unauthorised expenditure, irregular expenditure or fruitless and wasteful expenditure.

88 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

REpoRT of THE AuDiT & RiSK CoMMiTTEE oN

voTE 12 – TRANSpoRT

The Committee reports that it has complied with its responsibilities arising from the Public Finance Man- agement Act, No.1 of 1999 (PFMA), Treasury Regulations 3.1, including all other related prescripts, and is pleased to present its report for the financial year ended 31 March 2018.

The Provincial Audit and Risk Committee (PARC) is the shared audit and risk committee for the provincial departments, and is further sub-divided into three Cluster Audit & Risk Committees (CARC’s) that provide oversight of key functions to the KZN Provincial Government Departments. The Department of Transport is served by the Economic Cluster Audit & Risk Committee.

The Committee has adopted appropriate formal terms of reference contained in its Audit and Risk Commit- tee Charter and has regulated its affairs in compliance with this charter; and reports that it has discharged all of its responsibilities as contained therein.

1. Audit Committee Members and Attendance

The PARC and Economic CARC consists of the members listed hereunder who have met as reflected below, in line with the approved terms of reference.

# Name of Member PARC Meetings Economic CARC Attended Meetings Attended 1. Mr S Simelane (Acting Chairman of PARC and Economic CARC) 7 of 7 4 of 4 2 Mr V Ramphal 7 of 7 4 of 4 3. Mr P Christianson 7 of 7 3 of 4 4. Ms T Njozela 6 of 7 2 of 4 5. Mr D O’Connor 7 of 7 N/A* 6. Ms N Sithole (Appointed 01 May 2018) N/A N/A* 7. Mr M Tarr (Appointed 01 May 2018) N/A 1 of 4 * refers to PARC members who did not serve on the Economic CARC 2. The Effectiveness of Internal Controls

The Committee has reviewed the reports of the Provincial Internal Audit Service (PIAS), the Audit Report on the Annual Financial Statements and Management Report of the Auditor General of South Africa (AGSA) and has noted with concern, the weaknesses in controls in the following areas: • Road Infrastructure Maintenance • S&T Travelling Expenditure • Supply Chain Management • Performance Information • Bus Subsidy • Immovable Tangible Assets

The Committee noted with concern the number of control deficiencies identified by the auditors, both internal and external. Although management interventions on certain control weaknesses were considered by the Committee, the Accounting Officer is urged to urgently implement strategies that will prevent any further regression on audit outcomes.

AnnuAl RepoRt | 2017 - 2018 89 Part C GovERNANCE Part C GovERNANCE

3. Effectiveness of Internal Audit

The PIAS performed effectively during the period under review. The Committee has, through the PARC and CARC monitoring processes assessed the both the PIAS and its audit reports on the assessment of the adequacy and effectiveness of controls designed to mitigate the risks associated with the operational and strategic activities of the Department. These audit reports were tabled at quarterly CARC meetings.

The PIAS planned to conduct fourteen (14) audit assignments for the period under review, of which thir- teen (13) were finalised and one (1) was carried over to the 2018/19 financial year with the approval of the Audit Committee.

The PIAS performed effectively during the period under review; notwithstanding concerns raised by the Committee in respect of the financial and human resource limitations imposed upon the unit. The Com- mittee will monitor the progress made by the PIAS against its operational plans in order to ensure that it continues to fulfil its mandate and add value to the department.

4. Risk Management

The responsibilities of the Committee with respect to risk management are formally defined in its Charter. For the period under review, the Committee’s responsibilities have been focused, amongst other things, on the quarterly review of the department’s risk register and monitoring progress against the Risk Manage- ment Operational Plan. As at the end of this financial year, the department’s risk register status was as follows:

Risk Grouping Total Critical Major Moderate Minor Insignificant Number of Identified Risks 6 6 16 14 10 52 Number of Identified Action Plans 17 20 46 3314 130 Number of Completed Action Plans. 10 13 28 22 11 84

The department has made significant progress in implementing its risk mitigation plans, however the Com- mittee still emphasizes paying close attention to the critical and major risk categories. The Committee further advises the department to review and update its risk register on a regular basis (quarterly) and urges the department to implement the outstanding risk mitigation plans.

The Committee is also concerned about slow progress in resolving the department’s poor maturity relating to Business Continuity and Occupational Health and Safety and again urges the department to improve its performance in these areas during the 18/19 financial year. The department is also requested to ensure that the Risk Management Function and OHS Function are properly capacitated and co-ordinated through the Internal Risk Committee.

90 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

5. Quality of in year management and monthly/quarterly reports

The Committee was satisfied with the content and quality of quarterly reports in respect of in year management and quarterly performance prepared and issued by the Accounting Officer of the Department submitted in terms of the PFMA and the Division of Revenue Act during the year under review. However, the Committee notes that the annual financial statements contained material misstatements. The Committee also notes with concerns the deficiencies identified in the usefulness and reliability of reported performance information due to the failure of the Department to implement adequate systems to collect, collate, verify and retain performance related data. The management of the Department has been urged to urgently implement appropriate improvement strategies in order to address the identified shortcomings.

6. Evaluation of Financial Statements

The Committee has: • Reviewed and discussed the Annual Financial Statements, including the audit report, with the Audi- tor General and the Accounting Officer; • Reviewed the Auditor General’s Management Report. • Reviewed the Department’s processes for compliance with legal and regulatory provisions, where concerns have been noted with procurement and contract management and the failure to prevent irregular expenditure as a result of non-compliance with supply chain management prescripts. • Reviewed the qualified conclusion on the reliability of performance information resulting from the audit of the Department. The Committee notes with concern that significantly important targets were not reliably reported when compared to the source information or portfolio of evidence provided.

7. Forensic Investigations

During the 2017/2018 financial year, the Committee noted that there were thirty two (32) forensic investigations, all relating to alleged conflict of interest, supply chain management and procurement irregularities, mismanagement of funds, motor licensing irregularities, nepotism which the department has referred to the PIAS for investigation. Seventeen (17) of these investigations were completed and fifteen (15) are in-progress.

The Committee further noted that: • Ten (10) matters are currently under criminal investigation by the South African Police Service (SAPS); • For two (2) of the completed investigations, criminal proceedings were recommended which must be actioned by the Accounting Officer; • In seven (7) of the completed investigations, disciplinary proceedings had commenced of which five (5) were finalised; and • For a further seven (7) of the completed investigations whereby disciplinary actions were recommended, disciplinary proceedings must be instituted by the Accounting Officer.

The department and the PIAS are urged to promptly finalize the outstanding investigations, and work together to implement recommendations made in the finalised investigations.

AnnuAl RepoRt | 2017 - 2018 91 Part C GovERNANCE Part C GovERNANCE

8. Auditor-General’s Report

The Committee has monitored the implementation of corrective action plans to address the audit issues raised by the Auditor General in the prior year. The Committee has met with the Auditor General of South Africa to discuss and evaluate the major issues that emanated from the current regulatory audit. The Com- mittee will ensure that corrective actions in respect of the detailed findings emanating from the current regulatory audit continue to be monitored on a quarterly basis through the CARC processes.

The Committee concurs and accepts the conclusion of the Auditor General’s qualified opinion on the An- nual Financial Statements, and is of the opinion that the Audited Annual Financial Statements be accepted and read together with the report of the Auditor General.

9. Appreciation

The Committee wishes to express its appreciation to the Management of the Department, the Auditor General of South Africa, and the Provincial Internal Audit Services for the co-operation and support they have provided to enable us to compile this report.

______Mr SP Simelane Acting Chairman: Provincial Audit and Risk Committee 06 August 2018 MEC for Transport Community Safety and Liaison Mxolisi Kaunda together with Amajuba Distric Municipality Mayor Cllr Musa Ngubane and Traditional Leaders officially opening P296 Road in the Nyayadu area outside Newcastle.

P296 Road located outside Newcastle was one of the infrastrucural projects completed in 2017/18 financial year Photos: Mbuyiselo Ndlovu 92 AnnuAl RepoRt | 2017 - 2018 Part C GovERNANCE Part C GovERNANCE

MEC for Transport Community Safety and Liaison Mxolisi Kaunda together with Amajuba Distric Municipality Mayor Cllr Musa Ngubane and Traditional Leaders officially opening P296 Road in the Nyayadu area outside Newcastle.

P296 Road located outside Newcastle was one of the infrastrucural projects completed in 2017/18 financial year Photos: Mbuyiselo Ndlovu AnnuAl RepoRt | 2017 - 2018 93 Part D HuMAN RESouRCES

MEC for Transport Community Safety and Liaison Mxolisi Kaunda interacting with Umngungundlovu Region employees during his regional visit, Photo:Mbuyiselo Ndlovu pART D Human Resources

94 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES

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

iNTRoDuCTioN The status of Human Resources in the department The Human Resource Management Chief Directorate is responsible for the provision of efficient human resource management practices and administration services. It is also responsible for the development of human resource strategies, human resources development, provision of harmonious employer-employee relations and ensuring the effective utilisation of resources. Beyond this, the unit has tomonitorand advocate for employment equity within the Department. In terms of the latter, women at Senior Management Service (SMS) level made up 52.77% compared to men, who accounted for 47.23% of the total 36 posts filled. The number of persons with disabilities was 47 (1.20%), up from last year’s figure of 27 (0.71%).

Human Resource Priorities for the year The filling of identified critical and funded vacancies remained a key priority, because it is critical to improving service delivery.

Workforce Planning and Strategies to Attract a Skilled Workforce The department continues to implement the Occupational Specific Dispensation (OSD) for engineers and related professionals to assist in managing career paths of existing employees in these occupations. This is also manifested through the provision of grade and accelerated grade progression, such as automatic promotion to a higher grade after serving the required number of years.

Employee performance Management Employee Performance Management is aimed at planning, managing and improving employee performance. The aim of performance management is to optimise every employee’s output in terms of quality and quantity, thereby improving the department’s overall performance and service delivery. The primary orientation of performance management is to be developmental while allowing for effective response to consistently inadequate performance and for recognising outstanding performance. Chapter 4 of the Senior Management Service (SMS) Handbook provides a framework for the management of performance for employees on remuneration band A to D (salary levels 13 to 16). The departmental EPMDS Policy provides a standardised framework for employee performance management on salary levels 1 to 12, which is inclusive of employees covered by an OSD and employees in elemen- tary occupations in the department. It shares similarities and must be linked with the SMS PMDS, as is a distinct policy framework and system. Employee performance management is not applicable to departmental, component or team performance management or assessment but is linked to individual performance, thus promoting individual growth and development, as well as impacting on career-pathing.

Challenges The department faces a challenge of a relatively high number of employees accessing incapacity leave, which is sitting at 122 (3.03%) out of 4015 employees in the year under review.

AnnuAl RepoRt | 2017 - 2018 95 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

future Human Resource plans The department will focus on the challenge of filling critical, vacant and funded posts in the new performance year, as well as to achieve the employee equity targets. It will also focus on improving the time taken to fill vacant and funded posts. The filling of vacant, critical and funded posts remains a priority.

HuMAN RESouRCE DEvELopMENT 1. HUMAN RESOURCE DEVELOPMENT STRATEGY The HRDS Strategic Framework Vision 2015 is an initiative by the DPSA aimed at developing and enhancing Human Resource Development practices to respond to the growing demands on the Public Service for efficient and effective service delivery. Public institutions, therefore, have to adopt strategies that respond to skills development and the transfer of knowledge, skills and experience which ultimately improves performance and enhances service delivery. Achievements HRD compiled and submitted the Annual HRDS Implementation Plan for 2017/18 financial year to DPSA timeously (before 31 May 2017). The Monitoring Tool for 2016/17 was submitted to DPSA timeously (before 31 May 2017). Implementation of HRD related programmes planned for 2017/18 as per related objectives set out in the HRD Strategy have been implemented and are ongoing. The programmes are reported below. The Training and Development Component has welcomed the appointment of the Assistant Director: Train- ing and Development. This will provide smooth sailing of processes within the HRD directorate.

2. ADuLT EDuCATioN AND TRAiNiNG pRoGRAMME (AET) The AET Programme is being implemented in the department to provide an opportunity for employees who were previously disadvantaged and are semi-literate or illiterate to be able to access education and improve their economic status. Achievements During 2017/18, there were 115 AET learners in the Programme from all Regions (AET Levels 1 – 4). Exam- inations were written in October/November 2017. The overall results are as follows:

Region No. of learners No. of learners No. of learners No. of learners No. of learners No. completed the registered wrote passed failed absent GETC

LADySMiTH 11 11 4 7 0 0 DuRBAN 17 17 14 2 0 3 EMpANGENi 52 41 23 18 11 1 pMB 14 13 12 1 1 0 ToTAL 94 82 53 28 12 4

In 2017/18, 4 learners have successfully completed AET Level 4 and qualify for the General Education and Training Certificate (GETC) / NQF Level 1 qualification.

Constraints There is still a delay by the Department of Education with the generation of the certificates resulting in learners not being able to persue further qualifications.

96 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

3. WoRKpLACE SKiLLS pLAN In terms of the Skills Development Act No. 97 of 1998, as amended, all departments are required to submit an Annual Training Report (ATR) and Workplace Skills Plan (WSP) on an annual basis to the relevant SETAs affiliated with the respective departments. The department is mandated to submit to Public Services Sector Education and Training Authority (PSETA) and the line function SETA i.e. Construction Education and Training Authority (CETA). The WSP is a plan, which reflects the training needs of the department in order to improve performance, enhance service delivery and to meet the objectives and goals of the department. Achievements The Workplace Skills Plan 2017/18 and Annual Training Report 2016/17 was compiled and submitted timeously to PSETA. An amount of R23 713 923.53 was expended on all programmes (short courses, skills programmes, conferences, seminars, apprenticeships, internships, AET, bursaries for employees and prospective employees) during the financial year 2017/18. The PSETA Quarterly Monitoring Reports for all four (4) quarters of the 2017/18 financial year was compiled and submitted to PSETA timeously for onward reporting to Department of Higher Education and Training. Constraints In 2017/18 the implementation of cost-cutting measures still continued resulting in a great variance between the planned and achieved training. Most training conducted was through the Office of the Premier (Public Services Training Academy), internal training through the Traffic Training College and Technology Transfer Directorate and specialised technical training was implemented through external training providers.

4. WoRK iNTEGRATED LEARNiNG pRoGRAMME (WiL) Work Integrated Learning (WIL) is a structured programme for students who require practical work experience in areas relevant to their qualification for a specified duration in order to complete their qualifications. Achievements In 2016, the department received R900 000 from PSETA for the implementation of the WIL Programme. A total of 25 WIL learners commenced the programme in April 2016 for a period of 18 months which ended in September and October 2017. The Department was also given a discretionary grant of R 924 000 from Transport Education and Training Authority (TETA) to place 20 TVET learners for a period of 18 months. The programme commenced in July 2017 and is still progressing. One (1) learner has been appointed by the Department in a permanent post.

5. GRADuATE iNTERNSHip pRoGRAMME The Graduate Internship Programme is a structured programme that runs for 12 months in which graduates receive skills training in relevant areas as per their qualifications in order to become employable in the industry and broader economy and across sectors. Achievements A total of 130 Graduate Interns were appointed in 2017/18. Of these, 119 interns completed the programme at the end of March 2017. Some Interns have exited the programme to take up employment in the private and public sectors. One (1) Graduate Intern was appointed in a permanent post in the Department.

AnnuAl RepoRt | 2017 - 2018 97 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

6. SKiLLS pRoGRAMME: uNiT STANDARDS ExTRACTED fRoM THE NATioNAL CERTifiCATE: CoNSTRuC- TioN SupERviSioN Construction Sector and Education Authority (CETA) awarded a discretionary grant of R202 500 to train 15 employees on unit standards extracted from the National Certificate in Construction Supervision. 12 Employ- ees have commenced the programme on 26th March 2018.

7. LEARNERSHip: CoNSTRuCTioN RoADWoRKS Construction Sector and Education Authority (CETA) awarded a discretionary grant of R3 600 000 to implement a 1 year Learnership: National Certificate in Construction Roadworks. A total of 100 young people throughout KZN have been targeted for the programme. In 2017 all recruitment processes were finalized including the appointment of a Training Provider by CETA. Due to the lack of top-up funding for accommo- dation, venue etc., the programme only commenced in May 2018. This programme is ran by the Transport Infrastructure and Regional Services Branch (TIRS).

8. AppRENTiCESHip pRoGRAMME: BRiCKLAyiNG Construction Sector and Education Authority (CETA) awarded a discretionary grant of R2 500 000 to implement a 3 year Apprenticeship Programme in Bricklaying. There are 50 young people throughout KZN who have been targeted for the programme. In 2017 all recruitment processes were finalised. The appointment of the Training Provider by CETA was only confirmed in May 2018. The Programme will commence in second quarter of 2018/19 financial year. This programme is also ran by TIRS.

9. AppRENTiCESHip pRoGRAMME The Heavy Earthmoving Mechanical Apprenticeship Programme was implemented in the department due to the scarcity of skills required to maintain and repair earthmoving equipment.

Achievements The Heavy Earthmoving Mechanical Apprenticeship Programme commenced in April and July 2015. A total of 24 apprentices are currently on the programme, which is progressing successfully. Apprentices attend institutional learning through Bell Equipment and on-the-job training through Bell Equipment, Babcock, departmental workshops and Komatsu.

Apprentices have also been attending TVET Colleges to complete the N courses in the mechanical field. Transport Education and Training Authority (TETA) is partially funding the programme and payments have been received by the department. The apprentices are reaching the final stages of their training, as they will be attempting their trade tests later in the year. Constraints One Apprentice was terminated from the Earthmoving Mechanical Apprenticeship Programme because of abscondment.

98 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

10. ARTiSAN DEvELopMENT pRoGRAMME

Achievements There were three employees who were granted approval to attend courses in plumbing, welding and carpen- try at Majuba College in December and were found competent in 2017. Two of those employees who are pursuing plumbing and welding will be attending pre-assessment, brush-up and trade testing at the Artisan Development Academy in the second quarter. Constraints It is important to note that although they will be artisans by profession, but they will still be tradesman aid until such a time that they apply and are found suitable for vacant artisan post within the department. They cannot be upgraded.

11. BuRSARy pRoGRAMME (EMpLoyEES) The objective of the department’s Bursary Programme for Employees is to build capacity and competence, enhance the employees’ performance, improve service delivery and assist in career progression. Achievements The following achievements were obtained: There are 23 new internal bursaries that have been awarded in various academic fields for the 2018 academic year, broken down in terms of gender as follows: • 8 African females • 15 African males

There are four employees who completed their qualifications - and they include 3 National Diploma: Metro- politan Policing and 1 Bachelor of Law: • 2 Indian males • 1 African male • I coloured female

TETA has awarded the Department a Discretionary Grant of R852 000 targeting four (4) female employees in the following fields: • Bachelor of Commerce: Supply Chain Management (X2) • Bachelor of Commerce: Human Resource Management • Bachelor of Commerce: Administration

AnnuAl RepoRt | 2017 - 2018 99 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

12. BuRSARy pRoGRAMME (ExTERNAL) The department has identified skills that are scarce, hence bursaries are provided in order to create a pool of technical skills in order to meet the skills demand. Achievements Below are students who have completed their studies: • 1 Indian female BSc: Mechanical Engineering • 2 African males BSc: Civil Engineering • 2 African males BTech: Civil Engineering CETA awarded the Department a grant to fund BSc Civil Engineering students. We currently have 13 students on this grant with a funding of R60 000.00 per student. • 12 African males • 1 Indian female

Constraints No external bursaries were awarded by the Department for the 2018 academic year.

Hiv/AiDS & HEALTH pRoMoTioN pRoGRAMMES Table 3.11.1 Steps taken to reduce the risk of occupational exposure

Units/categories of employees identified to Key steps taken to reduce the risk be at high risk of contracting HIV & related diseases (if any) All Employees All employees have been exposed to educational campaigns such as the importance of testing and knowing their status as well as on the risks of contracting HIV/AIDS. HIV and TB training has been conducted to employees and this is ongoing. All Employees Condom containers have been purchased and put up in strategic points in all Regions within the Department. Office services maintain the filling of these containers with condoms on a regular basis and the EAP Component monitors this. Some Employees The Employee Health and Wellness Committee members were trained on HIV/AIDS and TB management training by the Employee Health and Wellness Component.

Table 3.11.2 Details of Health Promotion and HIv/AIDS Programmes (tick the applicable boxes and provide the required information)

Question Yes No Details, if yes 1. Has the department designated a member of the YES DDG for Corporate Services: Ms. S Ngubo and SMS to implement the provisions contained in Part VI E Chief Director: HRM : Ms. C Zwane of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position. 2. Does the department have a dedicated unit or YES “The EHWP Component was initiated in 2001 and has it designated specific staff members to promote is headed by an Assistant Director and the Senior the health and well-being of your employees? If so, Employee Practitioner is assisting the Component. indicate the number of employees who are involved The allocated budget is R4, 706.976. in this task and the annual budget that is available for this purpose. 3. Has the department introduced an Employee YES Professional Counselling, Assessment, Debriefing, Assistance or Health Promotion Programme for your Crisis intervention, Referrals, prevention employees? If so, indicate the key elements/services of programmes and Consultation. this Programme.

100 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

4. Has the department established (a) committee(s) YES The Department has formed the EHWP committee as contemplated in Part VI E.5 (e) of Chapter 1 of the members in all Regions and it comprises of Public Service Regulations, 2001? If so, please provide two or three members within each Region. The the names of the members of the committee and the functions of the Committee members are to act stakeholder(s) that they represent. as a referral agent to the Departmental employee wellness programme, take initiatives to implement awareness activities, make condoms available at the workplace and assist employees with their day to day health and wellness issues.

5. Has the department reviewed its employment YES All four Strategic Frameworks for EH&W have been policies and practices to ensure that these do not approved by the Head of the Department and all unfairly discriminate against employees on the basis were adopted as departmental policies. of their HIV status? If so, list the employment policies/ practices so reviewed. 6. Has the department introduced measures to protect YES All services offered are treated as strictly HIV-positive employees or those perceived to be confidential and any discrimination whatsoever HIV-positive from discrimination? If so, list the key will be dealt with via the disciplinary process. elements of these measures. Employees within the EHWP Component sign a confidentiality form informing them of what is expected of them and why.

7. Does the department encourage its employees to YES The Department has initiated the Wellness clinic undergo Voluntary Counselling and Testing? If so, list whereby the Voluntary Testing is encouraged, the results that you have you achieved. there is an increased number of officials wanting to know their status. With the help of our in house Doctor a number of employees are being treated for Chronic Illnesses at work.

All type of counselling (Pre- counselling and Post counselling) are done for our employees when they are coming for HIV testing. All staff are counselled before agreeing to any tests. Should the employee test positive then they are referred to government clinics or hospitals for further help and given Immune Boosters as well, monitoring of their CD 4 count is done by the Doctor in our clinics. 8. Has the department developed measures/indicators YES There is an increase in number for employees to monitor & evaluate the impact of its health attending clinics. Formal referral by supervisors promotion programme? If so, list these measures/ also increase, and supervisors notice decrease with indicators. regards to absenteeism since the in- house clinics are operational within the department.

AnnuAl RepoRt | 2017 - 2018 101 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

HuMAN RESouRCES ovERSiGHT STATiSTiCS

The department must provide the following key information on its human resources, and all the financial amounts must agree with the amounts disclosed in the annual financial statements. It must also provide reasons for any variances.

3.1 Personnel Related Expenditure

The following tables summarise the final, audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the amount spent on personnel, salaries, overtime, homeowner’s allowances and medical aid.

Table 3.1.1 Personnel expenditure by programme for the period 1 April 2017 and 31 March 2018

professional and personnel Average personnel Training expenditure Total expenditure Special Services expenditure personnel cost programme expenditure (R’000) expenditure as a % of total per employee (R’000) (R’000) (R’000) expenditure (R’000)

Administration 436 010 137 462 0.00 0.00 31.50 3 Community Based 61 251 7 769 0.00 0.00 12.70 Programme Transport 7 033 191 689 296 0.00 0.00 9.80 14 Infrastructure Transport 1 510 365 36 066 0.00 0.00 2.40 1 Operations Transport 789 893 590 323 0.00 0.00 74.70 12 Regulation Z=Total as on 9 832 234 1 460 817 0.00 0.00 14.90 29 financial Systems (BAS)

Table 3.1.2 Personnel costs by salary band for the period 1 April 2017 and 31 March 2018

personnel expenditure % of total personnel Average personnel cost per Salary band No. of employees cost employee (R’000) (R’000) Lower skilled (Levels 1-2) 51898 3.00 357 145 373 Skilled (Levels 3-5) 349 641 20.20 1 497 233 561 Highly skilled production (Levels 6-8) 597 270 34.40 1 439 415 059 Highly skilled supervision (Levels 9-12) 175 152 10.10 255 686 871 Senior management (Levels 13-16) 57 949 3.30 50 1 158 980 Contract (Levels 1-2) 369 0.00 Contract (Levels 13-16) 3 033 0.20 1 3 033 000 Contract (Levels 3-5) 6 612 0.40 40 165 300 Contract (Levels 6-8) 68 212 3.90 198 344 505 Contract (Levels 9-12) 11 610 0.70 20 580 500 Contract Other 9 205 0.50 144 63 924 Periodical Remunerations 21 552 1.20 1 148 18 774 Abnormal Appointment 349 521 20.10 44637 7 830 ToTAL 1 702 025 98.10 49786 34 187

102 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2017 and 31 March 2018

Salaries Overtime Home owners Allowance Medical Aid Amount Salaries Amount Overtime Amount HOA as a % Amount Medical aid (R’000 as a % of (R’000) as a % of (R’000) of personnel (R’000) as a % of personnel personnel costs personnel programme costs costs costs Administration 117 777 80 1 206 0.8 3 482 2.40 6 847 4.60

Community Based 13 040 159.80 19 0.10 215 3.30 520 8.60 Programme

Transport 787 826 155.90 11 741 1.30 23 322 2.50 31 592 8.20 Infrastructure

Transport 376 645 63.50 100 883 17 19 694 3.30 40 918 6.90 Operations

Transport 48 018 83.10 0 0 778 1.30 1898 3.30 Regulation

ToTAL 1 343 306 77.40 113 850 6.60 47 492 2.70 81 775 4.70

AnnuAl RepoRt | 2017 - 2018 103 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2017 and 31 March 2018

Salaries Overtime Home owners Allowance Medical Aid Overtime Medical aid Salaries as a % HOA as a % Salary band Amount Amount as a % of Amount Amount as a % of of personnel of personnel (R’000 (R’000) personnel (R’000) (R’000) personnel costs costs costs costs Lower skilled 37 780 72.50 639 1.20 3 975 7.60 4 874 9.40 (Levels 1-2) Skilled (Levels 255 836 72.70 9 422 2.70 20 684 5.90 29 140 8.30 3-5) Highly skilled 396 588. 65.50 92 219 15.20 19 989 3.30 39 930 6.60 production (Levels 6-8) Highly skilled 138 314 73.70 10 329 5.50 2 556 1.40 6 437 3.40 supervision (Levels 9-12) Senior 51 174 81.20 32 0.10 242 0.40 1 119 1.80 anagement (Levels 13-16) Contract (Levels 360 97.60 0 0 1 0.30 3 0.80 1-2) Contract (Levels 6 444 90.70 11 0.20 30 0.40 37 0.50 3-5) Contract (Levels 66 898 95.50 985 1.40 15 0 92 0.10 6-8) Contract (Levels 11 108 88.10 0 0 0 0 100 0.80 9-12) Contract (Levels 2 762 85.90 0 0 0 0 42 1.30 13-16) Contract Other 8 992 97.60 213 2.30 0 0 0 0 Periodical 17 539 78.10 0 0 0 0 0 0 munerations

Abnormal 349 511 100 0 0 0 0 0 0 Appointment ToTAL 1 343 306 77.40 113 850 6.60 47 492 2.70 81 775 4.70

Employment and Vacancies

The tables in this section summarise the position with regard to employment and vacancies. They also summarise the number of posts in the establishment, the number of employees, the vacancy rate, and whether there are any staff that are “additional to the establishment” or ATE. This information is presented in terms of three key variables: programme, salary band and critical occupations (see definition in notes below).

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

104 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.2.1 Employment and vacancies by programme as on 31 March 2018

Number of posts Number of employees Number of programme on approved vacancy Rate additional to the posts filled establishment establishment Administration 513 439 14.40 148 Community Based 30 22 52.7 0 Programme Transport Infrastructure 2 313 2 022 45.80 212 Transport Operations 1 572 1 439 8.50 2 Transport Regulation 86 79 8.10 10 ToTAL 4513 4001 11.30 372

A total of 130 graduate interns were appointed in 2017/18. Some interns have exited the programme to take up employment in the private and public sectors pHoTo: Mbuyiselo Ndlovu

AnnuAl RepoRt | 2017 - 2018 105 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.2.2 Employment and vacancies by salary band as on 31 March 2018

Number of posts Number of employees Salary band on approved Number of posts filled vacancy Rate additional to the establishment establishment

Lower skilled (Levels 1-2), 387 357 7.80 0 Permanent

Skilled (Levels 3-5), 1 715 1 497 12.70 0 Permanent

Highly skilled production 1 615 1 439 10.90 0 (Levels 6-8), Permanent

Highly skilled supervision 328 255 22.30 0 (Levels 9-12), Permanent

Senior management (Levels 64 50 21.90 0 13-16), Permanent

Other Permanent 145 144 0.70 144

Contract (Levels 3-5), 40 40 0 17 Permanent

Contract (Levels 6-8), 198 198 0 194 Permanent

Contract (Levels 9-12), 20 20 0 17 Permanent

Contract (Levels 13-16), 1 1 0 0 Permanent TOTAL 4 513 4 001 11.30 372

Head of Department Sibusiso Gumbi chairing a MANCO meeting Photo: ZiNgisA hlAthi

106 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2017

Number of Number of posts on Number of posts employees Critical occupation vacancy Rate approved establishment filled additional to the establishment

ADMINISTRATIVE RELATED, Permanent 183 136 25.70 3

ALL ARTISANS IN THE BUILDING METAL 127 103 18.90 3 MACHINERY ETC., Permanent

ARTISAN PROJECT AND RELATED 23 17 26.10 0 SUPERINTENDENTS, Permanent

AUXILIARY AND RELATED WORKERS, 33 29 12.10 0 Permanent

BUILDING AND OTHER PROPERTY 11 6 45.50 0 CARETAKERS, Permanent

BUS AND HEAVY VEHICLE DRIVERS, 8 6 25 1 Permanent

CARTOGRAPHIC SURVEYING AND 7 7 0 4 RELATED TECHNICIANS, Permanent

CIVIL ENGINEERING TECHNICIANS, 294 255 13.30 201 Permanent

CLEANERS IN OFFICES WORKSHOPS 121 109 9.90 0 HOSPITALS ETC., Permanent

CLIENT INFORM CLERKS(SWITCHB 28 26 7.10 0 RECEPT INFORM CLERKS), Permanent

COMMUNICATION AND INFORMATION 5 4 20 0 RELATED, Permanent

ENGINEERING SCIENCES RELATED, 24 17 29.20 0 Permanent

ENGINEERS AND RELATED 56 44 21.40 0 PROFESSIONALS, Permanent

FINANCE AND ECONOMICS RELATED, 5 4 20 0 Permanent

FINANCIAL AND RELATED 14 8 42.90 1 PROFESSIONALS, Permanent

FINANCIAL CLERKS AND CREDIT 12 10 16.70 0 CONTROLLERS, Permanent

FOOD SERVICES AIDS AND WAITERS, 19 19 0 0 Permanent

GENERAL LEGAL ADMINISTRATION & 1 1 0 0 REL. PROFESSIONALS, Permanent

HEAD OF DEPARTMENT/CHIEF 1 1 0 0 EXECUTIVE OFFICER, Permanent

HUMAN RESOURCES & ORGANISAT 25 21 16 0 DEVELOPM & RELATE PROF, Permanent

HUMAN RESOURCES CLERKS, Permanent 87 77.00 11.50 0

HUMAN RESOURCES RELATED, 16 13 18.80 0 Permanent

LANGUAGE PRACTITIONERS 9 8 11.10 1 INTERPRETERS & OTHER COMMUN, Permanent

LEGAL RELATED, Permanent 2 2 0 0

AnnuAl RepoRt | 2017 - 2018 107 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

LIBRARIANS AND RELATED 1 1 0 0 PROFESSIONALS, Permanent

LIBRARY MAIL AND RELATED CLERKS, 2 2 0 0 Permanent

LIGHT VEHICLE DRIVERS, Permanent 10 6 40 0

LOGISTICAL SUPPORT PERSONNEL, 1 1 0 0 Permanent

MECHANICAL ENGINEERING 2 2 0 2 THECHNICIANS, Permanent

MESSENGERS PORTERS AND 79 56 29 0. DELIVERERS, Permanent

MOTOR VEHICLE DRIVERS, Permanent 385 320 16.90 0

OTHER ADMINISTRAT & RELATED CLERKS 1 031 972 5.70 152 AND ORGANISERS, Permanent

OTHER ADMINISTRATIVE POLICY AND 227 180 20.70 3 RELATED OFFICERS, Permanent

OTHER INFORMATION TECHNOLOGY 2 2 0 0 PERSONNEL., Permanent

OTHER OCCUPATIONS, Permanent 2 2 0 0

REGULATORY INSPECTORS, Permanent 776 743 4.30 0

ROAD SUPERINTENDENTS, Permanent 13 13 0 0

ROAD TRADE WORKERS., Permanent 150 139 7.30 0

ROAD WORKERS, Permanent 500 463 7.40 0

SAFETY HEALTH AND QUALITY 2 2 0 0 INSPECTORS, Permanent

SECRETARIES & OTHER KEYBOARD 36 31 13.90 1 OPERATING CLERKS, Permanent

SECURITY GUARDS, Permanent 33 25 24.20 0

SECURITY OFFICERS, Permanent 5 5 0 0

SENIOR MANAGERS, Permanent 48 34 29.20 0

TRADE LABOURERS, Permanent 96 78 18.80 0

TRADE TRAINERS, Permanent 1 1 0 0

ToTAL 4 513 4 001 11.30 372

NOTES The CORE classification, as prescribed by the DPSA, should be used for completion of this table.

Critical occupations are defined as occupations or sub-categories within an occupation in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.

108 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Filling of SMS posts

The tables in this section provide information on employment and vacancies as it relates to members of the Senior Management Service by salary level. It also provides information on advertising and filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken.

Table 3.3.1 SMS post information as on 31 March 2017

Total Total number Total number number of % of SMS % of SMS posts SMS Level of SMS posts of SMS posts funded SMS posts filled vacant filled vacant posts Head of Department 1 1 100 0 0 Salary Level 15 4 3 75 1 25 Salary Level 14 12 8 67 4 33 Salary Level 13 32 23 72 9 28 Total 49 35 71 14 29

Table 3.3.2 SMS post information as on 30 September 2017

Total Total number Total number number of % of SMS % of SMS posts SMS Level of funded of SMS posts SMS posts posts filled vacant SMS posts vacant filled Head of Department 1 1 100 0 0 Salary Level 15 4 3 75 1 25 Salary Level 14 12 8 67 4 33 Salary Level 13 33 24 73 9 28 Total 50 36 72 13 26

JOB EVALUATION

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

AnnuAl RepoRt | 2017 - 2018 109 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2017 and 31 March 2018

% of posts Posts Upgraded Posts downgraded Number of posts Number evaluated % of Salary band on approved of Jobs % of posts by salary Number posts Number establishment Evaluated evaluated bands evaluated 01 Lower Skilled 387 282 72.90 33 100 13 100 (Levels 1-2) 02 Skilled (Levels 3-5) 1 715 1 293 75.40 735 96.73 34 100 03 Highly Skilled 1 615 1 262 78.10 670 98.81 6 100 Production (Levels 6-8) 04 Highly Skilled 328 214 65.20 87 100 5 100 Supervision (Levels 9-12) 05 Senior 45 26 57.80 1 100 0 0 Management Service Band A 06 Senior 14 9 64.30 0 0 0 0 Management Service Band B 07 Senior 4 2 50 0 0 0 0 Management Service Band C 08 Senior 1 0 0 0 0 0 0 Management Service Band D 09 Other 145 1 0.70 36 100 0 0 11 Contract (Levels 40 31 77.50 1 100 0 0 3-5) 12 Contract (Levels 198 3 1.50 1 0 0 0 6-8) 13 Contract (Levels 20 3 15 0 0 0 0 9-12) 14 Contract Band A 17 Contract Band D 1 1 100 0 0 0 0 ToTAL 4 513 3 127 69.30 1 564 97.89 58 100

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

110 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2017 and 31 March 2018

Gender African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0

Employees with a disability 0

The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case.

Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2017 and 31 March 2018

Occupation Number of employees Job evaluation level Remuneration level Reason for deviation NoNE Total number of employees whose salaries exceeded the level determined by job evaluation Percentage of total employed

The following table summarises the beneficiaries of the above in terms of race, gender, and disability.

Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2017 and 31 March 2018

Gender African Asian Coloured White Total NONE

Employees with a disability

NOTES

If there were no cases where the salary levels were higher than those determined by job evaluation, keep the heading and replace the table with the following:

Total number of Employees whose salaries exceeded the grades determine by job evaluation None

Employment Changes

This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations (see definition in notes below).

AnnuAl RepoRt | 2017 - 2018 111 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2016 and 31 March 2017

Number of Appointments Terminations employees at and transfers and transfers Salary band beginning of Turnover rate into the out of the period-April department department 2015 01 Lower Skilled (Levels 1-2) Permanent 417 9 5 1.20 02 Skilled (Levels 3-5) Permanent 1 651 18 90 5.50 03 Highly Skilled Production (Levels 6-8) 1 370 8 42 3.10 Permanent 04 Highly Skilled Supervision (Levels 9-12) 214 1 10 4.70 Permanent 05 Senior Management Service Band A 34 0 0 0 Permanent 06 Senior Management Service Band B 9 0 0 0 Permanent 07 Senior Management Service Band C 3 0 0 0 Permanent 08 Senior Management Service Band D 1 0 0 0 Permanent 09 Other Permanent 50 152 184 368 10 Contract (Levels 1-2) Permanent 32 0 0 0 11 Contract (Levels 3-5) Permanent 10 17 8 80 12 Contract (Levels 6-8) Permanent 197 25 33 16.80 13 Contract (Levels 9-12) Permanent 17 5 4 23.50 14 Contract Band A Permanent 1 0 1 100 17 Contract Band D Permanent 1 0 0 0 ToTAL 4 007 235 377 9.40

112 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2017 and 31 March 2018

Number of Terminations employees at Appointments and and transfers Critical occupation beginning of transfers into the Turnover rate out of the period-April department department 2015 ADMINISTRATIVE RELATED Permanent 137 0 5 3.60 ALL ARTISANS IN THE BUILDING METAL 98 9 4 4.10 MACHINERY ETC. Permanent ARTISAN PROJECT AND RELATED 15 0 0 0 SUPERINTENDENTS Permanent AUXILIARY AND RELATED WORKERS 32 0 3 9.40 Permanent BUILDING AND OTHER PROPERTY 8 0 2 25 CARETAKERS Permanent BUS AND HEAVY VEHICLE DRIVERS 8 0 2 25 Permanent CARTOGRAPHIC SURVEYING AND 5 4 0 0 RELATED TECHNICIANS Permanent CIVIL ENGINEERING TECHNICIANS 261 38 39 14.90 Permanent CLEANERS IN OFFICES WORKSHOPS 120 0 11 9.20 HOSPITALS ETC. Permanent CLIENT INFORM CLERKS(SWITCHB 26 0 0 0 RECEPT INFORM CLERKS) Permanent COMMUNICATION AND INFORMATION 3 0 0 0 RELATED Permanent ENGINEERING SCIENCES RELATED 16 1 1 6.30 Permanent ENGINEERS AND RELATED 40 1 3 7.50 PROFESSIONALS Permanent FINANCE AND ECONOMICS RELATED 3 0 0 0 Permanent FINANCIAL AND RELATED PROFESSIONALS 9 1 3.00 33.30 Permanent FINANCIAL CLERKS AND CREDIT 10 0 0 0 CONTROLLERS Permanent FOOD SERVICES AIDS AND WAITERS 18 0 0 0 Permanent GENERAL LEGAL ADMINISTRATION & REL. 1 1 2 200 PROFESSIONALS Permanent HEAD OF DEPARTMENT/CHIEF EXECUTIVE 1 0 0 0 OFFICER Permanent HUMAN RESOURCES & ORGANISAT 22 0 0 0 DEVELOPM & RELATE PROF Permanent HUMAN RESOURCES CLERKS Permanent 76 3 3 3.90 HUMAN RESOURCES RELATED Permanent 12 1 0 0 LANGUAGE PRACTITIONERS INTERPRETERS & 8 0 0 0 OTHER COMMUN Permanent LEGAL RELATED Permanent 2 1 0 0 LIBRARIANS AND RELATED PROFESSIONALS 1 0 0 0 Permanent LIBRARY MAIL AND RELATED CLERKS Permanent 2 0 0 0 LIGHT VEHICLE DRIVERS Permanent 8 0 0 LOGISTICAL SUPPORT PERSONNEL Permanent 1 0 0 0 MECHANICAL ENGINEERING THECHNICIANS 1 1 0 0 Permanent

AnnuAl RepoRt | 2017 - 2018 113 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

MESSENGERS PORTERS AND DELIVERERS 58 0 5 8.60 Permanent MOTOR VEHICLE DRIVERS Permanent 346 1 26 7.50 OTHER ADMINISTRAT & RELATED CLERKS AND 887 161 203 22.90 ORGANISERS Permanent OTHER ADMINISTRATIVE POLICY AND RELATED 183 2 6 3.30 OFFICERS Permanent OTHER INFORMATION TECHNOLOGY PERSONNEL. 2 0 0 0 Permanent OTHER OCCUPATIONS Permanent 1 0 0 0 REGULATORY INSPECTORS Permanent 755 0 13 1.70 ROAD SUPERINTENDENTS Permanent 13 0 0 0 ROAD TRADE WORKERS. Permanent 145 0 7 4.80 ROAD WORKERS Permanent 481 9 24 5 SAFETY HEALTH AND QUALITY INSPECTORS 2 0 0 0 Permanent SECRETARIES & OTHER KEYBOARD OPERATING 32 1 1 3.10 CLERKS Permanent SECURITY GUARDS Permanent 31 0 6 19.40 SECURITY OFFICERS Permanent 5 0 0 0 SENIOR MANAGERS Permanent 34 0 1 2.90 TRADE LABOURERS Permanent 87 0 7 8 TRADE TRAINERS Permanent 1 0 0 0 ToTAL 4 007 235 377 9.40

NOTES

The CORE classification, as prescribed by the DPSA, should be used for completion of this table.

Critical occupations are defined as occupations or sub-categories within an occupation in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; or which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.

The table below identifies the major reasons why staff left the department. Table 3.5.3 Reasons why staff left the department for the period 1 April 2016 and 31 March 2017

Termination Type Number % of Total Resignations Death, Permanent 29 7.70 Resignation, Permanent 49 13 Expiry of contract, Permanent 208 55.20 Transfers, Permanent 1 0.30 Discharged due to ill health, Permanent 3 0.80 Dismissal-misconduct, Permanent 3 0.80 09 Retirement, Permanent 84 22.30 TOTAL 377 100 Total number of employees who left as a % of total 9.42% employment(4001)

114 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.5.4 Promotions by critical occupation for the period 1 April 2017 and 31 March 2018

Employment Promotions to Salary Level progressions to Notch progressions at Beginning of Occupation another Salary Promotions as a % another Notch as a % of period (April Level of Employment within Salary Level Employment 2016) ADMINISTRATIVE RELATED 137 4 2.90 83 60.60 ALL ARTISANS IN THE BUILDING 98 0 0 78 79.60 METAL MACHINERY ETC. ARTISAN PROJECT AND RELATED 15 2 13.30 8 53.30 SUPERINTENDENTS AUXILIARY AND RELATED 32 0 0 21 65.60 WORKERS BUILDING AND OTHER PROPERTY 8 0 0 6 75 CARETAKERS BUS AND HEAVY VEHICLE 8 0 0 4 50 DRIVERS CARTOGRAPHIC SURVEYING AND 5 0 0 5 100 RELATED TECHNICIANS CIVIL ENGINEERING TECHNICIANS 261 2 0.80 135 51.70 CLEANERS IN OFFICES 120 0 0 84 70 WORKSHOPS HOSPITALS ETC. CLIENT INFORM CLERKS(SWITCHB 26 0 0 21 80.80 RECEPT INFORM CLERKS) COMMUNICATION AND 3 0 0 1 33.30 INFORMATION RELATED ENGINEERING SCIENCES RELATED 16 0 0 7 43.80

ENGINEERS AND RELATED 40 6 15 21 52.50 PROFESSIONALS

FINANCE AND ECONOMICS 3 1 33.30 1 33.30 RELATED

FINANCIAL AND RELATED 9 1 11.10 3 33.30 PROFESSIONALS

FINANCIAL CLERKS AND CREDIT 10 0 0 5 50 CONTROLLERS

FOOD SERVICES AIDS AND 18 0 0 11 61.10 WAITERS

GENERAL LEGAL 1 0 0 0 0 ADMINISTRATION & REL. PROFESSIONALS HEAD OF DEPARTMENT/CHIEF 1 0 0 0 0 EXECUTIVE OFFICER

HUMAN RESOURCES & 22 1 4.50 15 68.20 ORGANISAT DEVELOPM & RELATE PROF HUMAN RESOURCES CLERKS 76 1 1.30 62 81.60

HUMAN RESOURCES RELATED 12 0 0 6 50

AnnuAl RepoRt | 2017 - 2018 115 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

LANGUAGE PRACTITIONERS 8 0 0 7 87.50 INTERPRETERS & OTHER COMMUN LEGAL RELATED 2 0 0 1 50 LIBRARIANS AND RELATED 1 0 0 0 0 PROFESSIONALS LIBRARY MAIL AND RELATED 2 0 0 0 0 CLERKS LIGHT VEHICLE DRIVERS 8 0 0 3 37.50 LOGISTICAL SUPPORT PERSONNEL 1 0 0 0 0 MECHANICAL ENGINEERING 1 0 0 1 100 THECHNICIANS MESSENGERS PORTERS AND 58 0 0 35 60.30 DELIVERERS MOTOR VEHICLE DRIVERS 346 0 0 228 65.90 OTHER ADMINISTRAT & RELATED 887 0 0 598 67.40 CLERKS AND ORGANISERS OTHER ADMINISTRATIVE POLICY 183 1 0.50 129 70.50 AND RELATED OFFICERS OTHER INFORMATION 2 0 0 2 100 TECHNOLOGY PERSONNEL. OTHER OCCUPATIONS 1 0 0 0 0 REGULATORY INSPECTORS 755 0 0 533 70.60 ROAD SUPERINTENDENTS 13 0 0 5 38.50 ROAD TRADE WORKERS. 145 0 0 125 86.20 ROAD WORKERS 481 0 0 299.00 62.20 SAFETY HEALTH AND QUALITY 2 0 0 2 100 INSPECTORS SECRETARIES & OTHER KEYBOARD 32 0 0 7 21.90 OPERATING CLERKS SECURITY GUARDS 31 0 0 24 77.40 SECURITY OFFICERS 5 0 0 1 20 SENIOR MANAGERS 34 1 2.90 23 67.60 TRADE LABOURERS 87 0 0 59 67.80 TRADE TRAINERS 1 0 0 1 100 ToTAL 4 007 20 0 2 660 66.40

116 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.5.5 Promotions by salary band for the period 1 April 2017 and 31 March 2018

Notch Salary bands progressions to progression as a Promotions to Employees 1 promotions as a % another notch % of Salary Band another salary April 2015 of employees by within a salary level salary level level employees by salary bands 01 Lower Skilled (Levels 1-2), 417 0 0 149 35.70 Permanent 02 Skilled (Levels 3-5), Permanent 1 651 0 0 1 222 74 03 Highly Skilled Production (Levels 1 370 3 0.20 959 70 6-8), Permanent 04 Highly Skilled Supervision (Levels 214 16 7.50 135 63.10 9-12), Permanent 05 Senior Management (Levels 13-16), 47 1 2.10 28 59.60 Permanent 09 Other, Permanent 50 0 0 0 0 10 Contract (Levels 1-2), Permanent 32 0 0 0 0 11 Contract (Levels 3-5), Permanent 10 0 0 34 340 12 Contract (Levels 6-8), Permanent 197 0 0 126 64 13 Contract (Levels 9-12), Permanent 17 0 0 7 41 14 Contract (Levels 13-16), Permanent 2 0 0 0 0 ToTAL 4 007 20 0.50 2 660 66.40

EMPLOYMENT EQUITY

Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2018

Occupational Male Female Total category African Coloured Indian White African Coloured Indian White 01 - SENIOR OFFICIALS 15 0 1 3 18 0 1 0 38 AND MANAGERS

02 - PROFESSIONALS 40 0 10 12 50 2 4 7 125 03 - TECHNICIANS 236 11 32 23 243 6 33 26 610 AND ASSOCIATE PROFESSIONALS 04 - CLERKS 186 9 41 9 685 27 94 67 1118 05 - SERVICE SHOP AND 354 27 92 37 211 11 28 13 773 MARKET SALES WORKERS 07 - CRAFT AND RELATED 164 4 21 21 63 0 0 0 273 TRADE WORKERS 08 - PLANT AND MACHINE 302 0 0 2 28 0 0 0 332 OPERATORS AND ASSEMBLERS 09 - LABOURERS AND 429 1 2 2 295 1 2 0 732 RELATED WORKERS ToTAL 1 726 52 199 109 1593 47 162 113 4001

AnnuAl RepoRt | 2017 - 2018 117 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2018

Male female Occupational band Total African Coloured indian White African Coloured indian White 01 Top Management, 2 0 0 11 0 0 04 Permanent 02 Senior Management, 11 0 3 7 23 0 1146 Permanent 03 Profesionally 92 9 24 23 85 2 13 7 255 qualified and experienced specialists and mid-management, Permanent 04 Skilled technical 5526 32 129 70 474 27 82 99 1439 and academically qualified workers, junior management, supervisors, foremen, Permanent 05 Semi-skilled and 767 10 34 6 595 18 61 6 1497 discretionary decision making, Permanent 06 Unskilled and defined 117 0 11237 0 1 0 357 decision making, Permanent 07 Not Available, 54 0 1 0 89 0 0 0 144 Permanent 08 Contract (Top 1 0 000 0 001 Management), Permanent 10 Contract 10 0 305 0 2 0 20 (Professionaly Qualified), Permanent 11 Contract (Skilled 123 0 4 1 69 0 1 0 198 Technical), Permanent 12 Contract (Semi- 23 1 0 0 15 0 1 0 40 Skilled), Permanent ToTAL 1726 52 199 109 1593 47 162 113 4001

118 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.6.3 Recruitment for the period 1 April 2017 to 31 March 2018

Male female Occupational band African Coloured indian White African Coloured indian White Total 03 Professionally qualified and experienced specialists and mid-management, Permanent 1 0 00 0 00 00 04 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 3 0 00 3 0 1 1 8 05 Semi-skilled and discretionary decision making, Permanent 10 1 00 6 0 1 0 18 06 Unskilled and defined decision making, Permanent 7 0 00 2 00 09 07 Not Available, Permanent 57 0 1 0 94 00 0 152 10 Contract (Professionally qualified), Permanent 2 0 00 3 00 05 11 Contract (Skilled technical), Permanent 14 0 0 0 10 0 1 0 25 12 Contract (Semi- skilled), Permanent 12 0 1 0 4 00 0 17 ToTAL 106 120 122 0 3 1 235 Employees with disabilities 1 0 00 2 00 03

Table 3.6.4 Promotions for the period 1 April 2017 to 31 March 2018

Male Female Occupational band Total African Coloured Indian White African Coloured Indian White

01 Top Management, 2 001 0 00 0 3 Permanent 02 Senior Management, 6 0 1 3 14 0 1126 Permanent 03 Professionally qualified and 50 5 15 15 55 2 5 4 151 experienced specialists and mid-management, Permanent 04 Skilled technical and 379 18 65 28 376 17 43 36 962 academically qualified workers, junior management, supervisors, foremen, Permanent 05 Semi-skilled and 596 9 30 4 512 16 51 4 1222 discretionary decision making, Permanent 06 Unskilled and defined 41 0 0 0 108 0 0 0 149 decision making, Permanent

AnnuAl RepoRt | 2017 - 2018 119 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Male Female Occupational band Total African Coloured Indian White African Coloured Indian White

10 Contract (Professionally 4 020 0 0 1 07 qualified), Permanent 11 Contract (Skilled technical), 73 0 3 0 50 0 0 0 126 Permanent 12 Contract (Semi-skilled), 19 1 0 0 13 0 1 0 34 Permanent ToTAL 1170 33 116 51 1128 35 102 45 2 680 Employees with disabilities 4 0 1 3 7 02 1 18

Table 3.6.5 Terminations for the period 1 April 2017 to 31 March 2018

Male female Occupational band African Coloured indian White African Coloured indian White Total

03 Professionally 3 0 11 5 0 0 0 10 qualified and experienced specialists and mid-management, Permanent 04 Skilled technical 18 1 24 8 0 4 5 42 and academically qualified workers, junior management, supervisors, foremen, Permanent 05 Semi-skilled and 76 0 1 0 13 0 0 0 90 discretionary decision making, Permanent 06 Unskilled and defined 1 0 1 03 0 0 05 decision making, Permanent 07 Not Available, 74 0 1 0 109 0 0 0 184 Permanent 09 Contract (Senior 1 000 0 0 001 Management), Permanent

10 Contract 1 000 3 0 0 04 (Professionally qualified), Permanent 11 Contract (Skilled 21 0 0 0 12 0 0 0 33 technical), Permanent 12 Contract (Semi- 6 000 2 0 0 08 skilled), Permanent ToTAL 201 1 6 5 155 0 4 13 294 Employees with 10 002 0 0 03 disabilities

120 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Signing of Performance Agreements by SMS Members

All members of the SMS must conclude and sign performance agreements within specific timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here.

Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2018

Total Signed number Total Total number performance of number of signed agreements SMS Level funded of SMS performance as % of total SMS members agreements number of SMS posts members Head of Department 11 1 100 Salary Level 15 43 3 100 Salary Level 14 12 7 7 100 Salary Level 13 33 25 23 92 Total 50 36 34 94

NOTES In the event of a National or Provincial election occurring within the first three months of a financial year all members of the SMS must conclude and sign their performance agreements for that financial year within three months following the month in which the elections took place. For example if elections took place in April, the reporting date in the heading of the table above should change to 31 July 20ZZ.

performance Rewards

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

Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2016 to 31 March 2017

Beneficiary Profile Cost % of Race and Gender Number of Number of total Cost Average cost beneficiaries employees within (R’000) per employee group African, Female 411 1 574 26.10 5 731.40 13 945 African, Male 309 1 709 18.10 4 566 14 777 Asian, Female 78 158 49.40 1 379.93 17 691 Asian, Male 74 197 37.60 1 615.75 21 834 Coloured, Female 23 47 48.90 314.71 13 683 Coloured, Male 16 52 30.80 343.99 21 499 White, Female 57 111 51.40 1 106.19 19 407 White, Male 46 105 43.80 1 146.24 24 918 Employees with a disability 12 48 25 321.41 26 784 ToTAL 1 026 4 001 25.60 16 525.62 16 107

AnnuAl RepoRt | 2017 - 2018 121 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2016 to 31 March 2017

Beneficiary Profile Cost

Salary band Number of Number of % of total within Total Cost Average cost per beneficiaries employees salary bands (R’000) employee

01 Lower Skilled (Levels 1-2) 63 357 17.60 39,1.65 6,217.00 02 Skilled (Levels 3-5) 380 1497 25.40 3,652.94 9,613.00 03 Highly Skilled Production 417 1439 29.00 7,124.48 17,085.00 (Levels 6-8) 04 Highly Skilled Supervision 131 255 51,40 4,718.40 36,018.00 (Levels 9-12) 09 Other 0 144 0 0 0 11 Contract (Levels 3-5) 8 40 20 73.12 9,140.00 12 Contract (Levels 6-8) 22 198 11.10 329.80 14,991.00 13 Contract (Levels 9-12) 2 20 10 49.03 24,513.00 ToTAL 1023 3950 25.90 16,339.42 15,972

Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2016 to 31 March 2017

Beneficiary Profile Cost Number of Number of % of total within Total Cost Average cost per Critical occupation beneficiaries employees occupation (R’000) employee FINANCIAL CLERKS AND CREDIT 9,00 10,00 90,00 119,97 13 330,00 CONTROLLERS HUMAN RESOURCES CLERKS 21,00 77,00 27,30 224,26 10 679,00 SECURITY OFFICERS 4,00 5,00 80,00 43,72 10 930,00 MESSENGERS PORTERS AND 24,00 56,00 42,90 195,12 8 130,00 DELIVERERS HUMAN RESOURCES & ORGANISAT 5,00 21,00 23,80 101,45 20 290,00 DEVELOPM & RELATE PROF ALL ARTISANS IN THE BUILDING 20,00 103,00 19,40 318,64 15 932,00 METAL MACHINERY ETC. ROAD TRADE WORKERS. 21,00 139,00 15,10 236,99 11 285,00 SAFETY HEALTH AND QUALITY 0,00 2,00 0,00 0,00 0,00 INSPECTORS FINANCE AND ECONOMICS RELATED 2,00 4,00 50,00 96,54 48 269,00 LOGISTICAL SUPPORT PERSONNEL 1,00 1,00 100,00 19,90 19 902,00 OTHER ADMINISTRAT & RELATED 319,00 972,00 32,80 3 767,45 11 810,00 CLERKS AND ORGANISERS AUXILIARY AND RELATED WORKERS 11,00 29,00 37,90 159,02 14 457,00 OTHER OCCUPATIONS 0,00 2,00 0,00 0,00 0,00 LEGAL RELATED 1,00 2,00 50,00 31,38 31 382,00 FINANCIAL AND RELATED 6,00 8,00 75,00 264,62 44 104,00 PROFESSIONALS BUILDING AND OTHER PROPERTY 4,00 6,00 66,70 33,15 8 288,00 CARETAKERS ADMINISTRATIVE RELATED 78,00 136,00 57,40 2 853,23 36 580,00 COMMUNICATION AND 2,00 4,00 50,00 66,24 33 122,00 INFORMATION RELATED SECRETARIES & OTHER KEYBOARD 20,00 31,00 64,50 325,43 16 271,00 OPERATING CLERKS

122 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

CLEANERS IN OFFICES WORKSHOPS 38,00 109,00 34,90 266,54 7 014,00 HOSPITALS ETC. LIBRARY MAIL AND RELATED CLERKS 2,00 2,00 100,00 34,08 17 041,00 HUMAN RESOURCES RELATED 5,00 13,00 38,50 186,79 37 358,00 HEAD OF DEPARTMENT/CHIEF 0,00 1,00 0,00 0,00 0,00 EXECUTIVE OFFICER TRADE LABOURERS 21,00 78,00 26,90 146,23 6 963,00 LANGUAGE PRACTITIONERS 6,00 8,00 75,00 82,30 13 717,00 INTERPRETERS & OTHER COMMUN ROAD SUPERINTENDENTS 2,00 13,00 15,40 37,15 18 577,00 REGULATORY INSPECTORS 138,00 743,00 18,60 2 400,34 17 394,00 GENERAL LEGAL ADMINISTRATION & 0,00 1,00 0,00 0,00 0,00 REL. PROFESSIONALS CARTOGRAPHIC SURVEYING AND 4,00 7,00 57,10 88,10 22 025,00 RELATED TECHNICIANS CIVIL ENGINEERING TECHNICIANS 35,00 255,00 13,70 663,58 18 959,00 TRADE TRAINERS 1,00 1,00 100,00 9,78 9 780,00 ROAD WORKERS 52,00 463,00 11,20 334,44 6 431,00 OTHER ADMINISTRATIVE POLICY AND 73,00 180,00 40,60 1 504,34 20 607,00 RELATED OFFICERS ARTISAN PROJECT AND RELATED 7,00 17,00 41,20 154,52 22 075,00 SUPERINTENDENTS BUS AND HEAVY VEHICLE DRIVERS 1,00 6,00 16,70 8,81 8 812,00 SENIOR MANAGERS 0,00 34,00 0,00 0,00 0,00 CLIENT INFORM CLERKS(SWITCHB 18,00 26,00 69,20 331,95 18 442,00 RECEPT INFORM CLERKS) ENGINEERS AND RELATED 22,00 44,00 50,00 663,69 30 168,00 PROFESSIONALS OTHER INFORMATION TECHNOLOGY 1,00 2,00 50,00 14,99 14 994,00 PERSONNEL. LIGHT VEHICLE DRIVERS 0,00 6,00 0,00 0,00 0,00 ENGINEERING SCIENCES RELATED 7,00 17,00 41,20 365,36 52 195,00 MOTOR VEHICLE DRIVERS 30,00 320,00 9,40 257,84 8 595,00 SECURITY GUARDS 2,00 25,00 8,00 17,61 8 804,00 FOOD SERVICES AIDS AND WAITERS 12,00 19,00 63,20 73,92 6 160,00 MECHANICAL ENGINEERING 0,00 2,00 0,00 0,00 0,00 THECHNICIANS LIBRARIANS AND RELATED 1,00 1,00 100,00 26,12 26 122,00 PROFESSIONALS TOTAL 1 026,00 4 001,00 25,60 16 525,62 16 107,00

NOTES

The CORE classification, as prescribed by the DPSA, should be used for completion of this table.

AnnuAl RepoRt | 2017 - 2018 123 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2017 to 31 March 2018

Beneficiary Profile Cost % of total % of SMS Wage Salary band Number of Number of Average cost per within salary Total Cost (R’000) Bill beneficiaries employees employee bands Band A 1 36 2.80 72.91 72 908.40 0.20 Band B 2 10 20 113.30 56 648.40 0.90 Band C 0 3 0 0 0 0 Band D 0 2 0 0 0 0 ToTAL 3 51 5.90 186.21 62 068.40 0.30

FOREIGN WORKERS

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

Table 3.9.1 Foreign workers by salary band for the period 1 April 2017 and 31 March 2018

Salary band 01 April 2016 31 March 2017 Change Number % of total Number % of total Number % Change Highly skilled production (Levels 6-8) 1 25 1 50 0 0

Highly skilled supervision (Levels 1 25 1 50 0 0 9-12) Other 1 25 0 0 -1 50 Skilled (Levels 3-5) 1 25 0 0 -1 50 ToTAL 4 100 2 100 -2 100

Table 3.9.2 Foreign workers by major occupation for the period 1 April 2017 and 31 March 2018

Major Occupation 01 April 2015 31 March 2016 Change Number % of total Number % of total Number % Change Administrative office workers 1 25 0 0 -1 50

Other occupations 1 25 0 0 -1 50

Professionals and managers 2 50 2 100 0 0 ToTAL 4 100 2 100 -2 100

LEAVE UTILISATION

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

124 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES Part D HuMAN RESouRCES

Table 3.10.1 Sick leave for the period 1 January 2017 to 31 December 2017

Number of % Days with % of total Average Employees Estimated Salary band Total days Medical employees days per using sick Cost (R’000) certification using sick leave employee leave

Contract (Levels 1-2) 8 87.50 1 0.00 8 4 Contract (Levels 13-16) 2 100 1 0.00 2 7 Contract (Levels 3-5) 98 81.60 24 0.80 4 70 Contract (Levels 6-8) 560 74.60 104 3.50 5 707 Contract (Levels 9-12) 47 85.10 7 0.20 7 105 Contract Other 445 51.50 139 4.60 3 128 Highly skilled production 106577 74.10 1203 40.10 9 12823 (Levels 6-8) Highly skilled 1186 73 187 6.20 6 2777 supervision (Levels 9-12) Lower skilled (Levels 1848 87.30 246 8.20 8 905 1-2) Senior management 247 77.30 38 1.30 7 994 (Levels 13-16) Skilled (Levels 3-5) 8577 80.30 1053 35.10 8 6594 ToTAL 23675 77 3003 100 8 25114

Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2017 to 31 December 2017

% of total % Days with Number of employees Average days Estimated Cost Salary band Total days Medical Employees using using disability per employee (R’000) certification disability leave leave Contract (Levels 6-8) 29 100 1 0.90 29 35 Highly skilled production (Levels 1898 100 64 55.20 30 2367 6-8) Highly skilled supervision (Levels 105 100 3 2.60 35 199 9-12) Lower skilled (Levels 1-2) 138 100 7 6 20 66 Skilled (Levels 3-5) 1342 100 41 35.30 33 1342 ToTAL 3512 100 116 100 30 3707

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

AnnuAl RepoRt | 2017 - 2018 125 Part D HuMAN RESouRCES

Table 3.10.3 Annual Leave for the period 1 January 2017 to 31 December 2017

Number of Average per Salary band Total days taken Employees using employee annual leave Contract (Levels 1-2) 78 15 5 Contract (Levels 13-16) 27 3 9 Contract (Levels 3-5) 519 42 12 Contract (Levels 6-8) 3369 199 17 Contract (Levels 9-12) 190 15 13 Contract Other 1938 229 8 Highly skilled production (Levels 6-8) 35092 1466 24 Highly skilled supervision (Levels 9-12) 6031 260 23

Lower skilled (Levels 1-2) 7380.92 391 19 Senior management (Levels 13-16) 1214 56 22 Skilled (Levels 3-5) 35452.28 1617 22 ToTAL 91091.20 4293 21

Table 3.10.4 Capped leave for the period 1 January 2017 to 31 December 2017

Total days of Number of Average number Average capped leave Salary band capped leave Employees using of days taken per per employee as at 31 taken capped leave employee December 2017 Highly skilled production (Levels 6-8) 81 20 4 59 Highly skilled supervision (Levels 9-12) 26 8 3 70 Lower skilled (Levels 1-2) 4.32 3 1 22 Senior management (Levels 13-16) 0 00 106 Skilled (Levels 3-5) 37 10 4 63 ToTAL 148.32 41 4 62

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

Table 3.10.5 Leave payouts for the period 1 April 2017 and 31 March 2018

Number of Average per Reason Total amount (R’000) employees employee (R’000) Capped leave payouts on termination of service for current financial year 8 939 143 62 510 Current leave payout on termination of service for current financial year 34 2 17 000 ToTAL 8 973 145 61 883

SEVERANCE PACKAGES

Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2017 and 31 March 2018

Number of Number of applications Number of applications Number of packages approved Salary band applications referred to the MpSA supported by MpSA by department received NoNE NoNE NoNE NoNE NoNE

126 AnnuAl RepoRt | 2017 - 2018 Part D HuMAN RESouRCES

Transport, Community Safety and Liaison MEC Mxolisi Kaunda pictured with Driver Operator Bonisiwe Mbatha from LadysmithTransport, Area Community Office Safetyduring aand handover Liaison MECof new Mxolisi graders Kaunda in the picturedregion. P hotowith Driver: ZiNgisA Operator hlAthi Bonisiwe Mbatha from Photo: ZiNgisA hlAthi Ladysmith Area Office during a handover of new graders in the region. AnnuAl RepoRt | 2017 - 2018 127 Part E Part E REPORT OF THE AUDITOR - GENERAL

pART E Financial Information

voTE 12 FOR THE YEAR ENDED 31 MARCH 2018

TABLE of CoNTENTS pAGE Report of the Auditor-General 130 Report of the Accounting Officer 138 Appropriation Statement 147 Notes to the Appropriation Statement 166 Statement of Financial Performance 168 Statement of Financial Position 169 Statement of Changes in Net Assets 170 Cash Flow Statement 171 Accounting Policies 172 Notes to the Annual Financial Statements 181 Disclosure Notes to the Annual Financial Statements 200 Annexures 219

128 AnnuAl RepoRt | 2017 - 2018 Part E Part E REPORT OF THE AUDITOR - GENERAL

DEPARTMENT OF TRANSPORT AUDIT REPORT FOR THE YEAR ENDED 31 MARCH 2018

Passing out parade of 34 traffic officers who had been training at the Traffic Training College. The officers have been employed by various local traffic authorities around the province Photo: Mbuyiselo Ndlovu AnnuAl RepoRt | 2017 - 2018 129 Part E REPORT OF THE AUDITOR - GENERAL Part E REPORT OF THE AUDITOR - GENERAL

Report of the auditor-general to the KwaZulu-Natal provincial Legislature on vote no. 12: Department of Transport Report on the audit of the financial statements opinion 1. I have audited the financial statements of the KwaZulu-Natal Department of Transport set out on pages 147 to 218, which comprise the appropriation statement, the statement of financial position as at 31 March 2018, the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies. 2. In my opinion, except for the possible effects of the matters described in the basis for qualified opinion section of this auditor’s report, the financial statements present fairly, in all material respects, the financial position of the KwaZulu-Natal Department of Transport as at 31 March 2018, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standard (MCS) prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2017 (Act No. 3 of 2017) (Dora).

Basis for qualified opinion immovable tangible capital assets 3. The department did not recognise the value of all road infrastructure assets and completely account for all items of road infrastructure assets under construction as required by the MCS on Capital As- sets. Consequently, I was unable to determine the full extent of the understatement of immovable tangible capital assets stated at R32,09 billion (2017: R31,52 billion) in note 41 to the financial statements, as it was impractical to do so. Additionally, the accounting policy adopted by the department was inappropriate as it is not in accordance with the MCS chapter on Capital Assets. I was unable to determine the impact on the closing balance of immovable tangible capital assets.

Irregular expenditure 4. The department did not correctly disclose irregular expenditure due to inaccurate underlying records. Additionally, the department did not disclose the full extent of irregular expenditure for payments made in contravention of the supply chain management prescripts, as required by section 40(3)(b)(i) of the PFMA. Consequently, I was unable to determine whether any further adjustments were necessary to irregular expenditure stated at R9,96 billion in note 31 to the financial statements.

Context for the opinion 5. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report. 6. I am independent of the department in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) and the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code. 7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion.

130 AnnuAl RepoRt | 2017 - 2018 Part E REPORT OF THE AUDITOR - GENERAL Part E REPORT OF THE AUDITOR - GENERAL

Emphasis of matter 8. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Material underspending of the budget 9. As disclosed in the appropriation statement, the department materially underspent the budget on Programme 2: Transport Infrastructure to the amount of R250 million. R200 million relates to delays with the implementation of flood damage projects. The department was unable to spend R50 million relating to the construction of crime fighting structure between South Africa and Mozambique as the required memorandum of agreement was not signed by the relevant stakeholders.

Other matter 10. I draw attention to the matter below. My opinion is not modified in respect of this matter.

unaudited supplementary schedules 11. The supplementary information set out on pages 219 to 232 does not form part of the financial statements and is presented as additional information. We have not audited these schedules.

Responsibilities of accounting officer for the financial statements 12. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with MCS and the requirements of the PFMA and Dora, and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 13. In preparing the financial statements, the accounting officer is responsible for assessing the KwaZu- lu-Natal Department of Transport’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the accounting officer either intends to liquidate the department or to cease operations, or has no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements 14. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 15. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

AnnuAl RepoRt | 2017 - 2018 131 Part E REPORT OF THE AUDITOR - GENERAL Part E REPORT OF THE AUDITOR - GENERAL

Report on the audit of the annual performance report Introduction and scope 16. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance. 17. My procedures address the reported performance information, which must be based on the approved performance planning documents of the department. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters. 18. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2018:

programmes pages in the annual performance report Programme 2 – Transport infrastructure 30 –32 Programme 3 – Transport operations 32 –33 Programme 4 – Transport regulations 33

19. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 20. The material findings in respect of the usefulness and reliability of the selected programmes are as follows: programme 2 – transport infrastructure Number of square metres of non-motorised transport facility constructed 21. The achievement for target 25000 square metres reported in the annual performance report was 53981 square metres. However, the supporting evidence provided did not agree to the reported achievement and indicated an estimated achievement of 45984 square metres leading to an unexplained difference.

Kilometres maintained by Zibambele contractors 22. I was unable to obtain sufficient appropriate audit evidence to validate the existence of systems and processes that enable reliable reporting of actual service delivery against the indicator. This was due to an inadequacy of technical indicator description. I was unable to validate the existence of systems and processes by alternative means. 23. The reported achievement of 21357 kilometres for target 21095 kilometres is not reliable as the department did not have an adequate performance management system to maintain records to enable reliable reporting on achievement of targets. As a result, I was unable to obtain sufficient appropriate audit evidence in some instances while in other cases the supporting evidence provided did not agree to the reported achievement. Based on the supporting evidence that was provided, the estimated achievement was 18969 kilometres, but I was unable to further confirm the reported achievement by alternative means. Consequently, I was unable to determine whether any further adjustments were required to the reported achievement.

132 AnnuAl RepoRt | 2017 - 2018 Part E REPORT OF THE AUDITOR - GENERAL Part E REPORT OF THE AUDITOR - GENERAL

Programme 3 – transport operations Number of operating licences issued 24. The achievement for target 4800 reported in the annual performance report was 4823. However, the supporting evidence provided did not agree to the reported achievement and indicated an estimated achievement of 6967 leading to an unexplained difference.

Programme 4 – transport regulations 25. I did not raise any material findings on the usefulness and reliability of the reported performance information for Programme 4 – transport regulations. Other matters 26. I draw attention to the matter below.

Achievement of planned targets 27. The annual performance report on pages 30 to 44 contains information on the achievement of planned targets for the year and explanations are also provided for the under and overachievement of a significant number of targets. This information should be considered in the context of the material findings on the usefulness and reliability of the reported performance information in paragraphs 20 to 28 of this report.

Adjustment of material misstatements 28. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of Programme 2 – transport infrastructure, Programme 3 – transport operations and Programme 4 – transport regulations. I raised material findings on the usefulness and reliability of the reported performance information as management subsequently corrected only some of the misstatements. Those that were not corrected are reported above.

Report on the audit of compliance with legislation Introduction and scope 29. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the department with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance. 30. The material findings on compliance with specific matters in key legislation are as follows:

Annual financial statements 31. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework, as required by section 40(1)(a) of the PFMA. Material misstatement of commitments identified by the auditors in the submitted financial statements were corrected, but the uncorrected material misstatements resulted in the financial statements receiving a qualified opinion. Expenditure management 32. Effective and appropriate steps were not taken to prevent irregular expenditure, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation 9.1.1. As reported in the basis for qualified opinion the full extent of the irregular expenditure could not be quantified. The majority of the irregular expenditure disclosed in the financial statements was caused by a lack of contract management. 33. In some instances, payments were not made within 30 days or an agreed period after receipt of an invoice, as required by treasury regulation 8.2.3

AnnuAl RepoRt | 2017 - 2018 133 Part E REPORT OF THE AUDITOR - GENERAL Part E REPORT OF THE AUDITOR - GENERAL

procurement and contract management 34. Bids relating to Vukuzakhe awards were not adjudicated by a bid adjudication committee as required by treasury regulations 16A6.2 (a). 35. The preference point system was not applied in some of the procurement of goods and services above R30 000 as required by section 2(a) of the PPPFA and treasury regulations 16A6.3(b). Similar non-compliance was also reported in the prior year.

Other information 36. The accounting officer is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report. 37. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. 38. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. 39. If, based on the work I have performed, I conclude that there is a material misstatement in this other information, I am required to report that fact. I have nothing to report in this regard.

Internal control deficiencies 40. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. 41. The matters reported below are limited to the significant internal control deficiencies that resulted in the basis for the qualified opinion, the findings on the annual performance report and the findings on compliance with legislation included in this report.

Leadership 42. Decisive leadership and monitoring over the financial, performance and compliance was not effective to ensure the objectives of transparent, credible and reliable reporting.

financial and performance management 43. Management did not adequately maintain and review underlying schedules to support financial statement disclosures and reported performance information. Non-compliance could have been pre- vented, had management updated and regularly monitored adherence with legislation.

Governance 44. The risk assessment processes and reviews were not adequate to ensure that risks relating to financial and performance reporting including the non-compliance with key legislation were mitigated and responded to in good time by management.

134 AnnuAl RepoRt | 2017 - 2018 Part E REPORT OF THE AUDITOR - GENERAL Part E REPORT OF THE AUDITOR - GENERAL

other reports 45. I draw attention to the following engagements conducted by various parties that had, or could have, an impact on the matters reported in the department’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation. 46. At the request of the department, the provincial treasury conducted thirty-two investigations relating to various procurement irregularities and fraudulent payments made to suppliers and employees. Seventeen investigations were completed and fifteen were still in progress at year-end. The accounting officer commenced with legal and disciplinary action against officials in fifteen of the finalised investigations. 47. In terms of proclamation number R23 of 2016, Government Gazette 39935 of 15 April 2016, the Special Investigating Unit is investigating various irregularities at the department relating to motor vehicle ownership and licensing details. This investigation was still in progress at year end. 48. In terms of proclamation number 14 of 2018, Government Gazette 41650 of 25 May 2018, the Special Investigating Unit is investigating various irregularities at the department relating to sale of properties and rental collections. This investigation was still in progress at the date of this report.

Pietermaritzburg 31 July 2018

AnnuAl RepoRt | 2017 - 2018 135 Part E REPORT OF THE AUDITOR - GENERAL

Annexure – Auditor-general’s responsibility for the audit 1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programmes and on the department’s compliance with respect to the selected subject matters.

financial statements 2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also: • identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control • obtain an understanding of internal control relevant to the audit 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 department’s internal control • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer • conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the KwaZulu-Natal Department of Transport’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. How- ever, future events or conditions may cause a department to cease continuing as a going concern • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation Communication with those charged with governance 3. I communicate with the accounting officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. 4. I also confirm to the accounting officer that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards.

136 AnnuAl RepoRt | 2017 - 2018 Part E REPORT OF THE AUDITOR - GENERAL

MEC for Transport, Community Safety and Liaison Mxolisi Kaunda pictured with the Head of Department Sibusiso Gumbi during a Road Safety Workshop in Cedara outside Pmb. Photo: Mbuyiselo Ndlovu

AnnuAl RepoRt | 2017 - 2018 137 REpoRT By THE ACCouNTiNG offiCER REpoRT By THE ACCouNTiNG offiCER Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

REPORT BY THE ACCOUNTING OFFICER TO THE EXECUTIVE AUTHORITY AND PROVINICIAL LEGISLATURE OF THE PROVINCE OF KWAZULU-NATAL, REPUBLIC OF SOUTH AFRICA

1. GENERAL REviEW of THE STATE of fiNANCiAL AffAiRS. 1.1. iMpoRTANT poLiCy DECiSioNS AND STRATEGiC iSSuES fACiNG THE DEpARTMENT • The Department continued to adhere to the expanded cost-cutting measures, as reissued by Pro- vincial Treasury in 2017/18, in conjunction with National Treasury Instruction 01 of 2013/14: Cost contained measures. • The National and Provincial Treasury’s reduction of the Department’s budget has also impacted on our targeted delivery for construction and maintenance programmes. For the Department of Trans- port this equates to a budget reduction of R247.355 million for the 2017/18 financial year. Since the inception of the cost-cutting measures the cumulative budget cuts total R1.180 billion. • In 2017/18, the department received R195.300 million toward learner transport services. The number of learners benefiting from the learner transport services is 47 747 from 3120 schools. The increase in demand for the services placed tremendous pressures on the 2017/18 budget, and the department over-spent against the allocation at year-end by R85.844 million. However, the pressures were offset through internal reprioritisation.

1.2 SpENDiNG TRENDS pRoGRAMME 1: ADMiNiSTRATioN NiL The department fully spent its allocation against this programme.

pRoGRAMME 2: TRANSpoRT iNfRASTRuCTuRE uNDER-ExpENDiTuRE R 250 million The under-expenditure of R250 million against this Programme is as follows: • R200 million relates to delays with the implementation of flood damage projects. The department was allocated R200 million during the 2017/18 Adjustments Estimate toward disaster relief in respect of the flood damage that occurred in the province on 10 October 2017, around the eThekwini Metro and Ugu District Municipality. The department managed to fast-track the process and the contracts were awarded in February 2018. All projects and work were well underway by year-end and the department has requested a roll-over in this regard. • R50 million relates to the construction of the cross-border crime fighting structure between South Af- rica and Mozambique. The department was allocated R2 million in 2016/17 for the planning aspect of the project and R48 million in 2017/18 for the construction of the structure. The condition for the allocation was that the department must sign a MOA with respective stakeholders (such as the Depart- ments of Home Affairs and Defence) responsible for national security. This is in order for the province to be reimbursed for the expenses incurred. Thus, without a signed MOA for reimbursement by the

138 AnnuAl RepoRt | 2017 - 2018 REpoRT By THE ACCouNTiNG offiCER REpoRT By THE ACCouNTiNG offiCER Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

relevant stakeholders, the department was unable to spend these funds. The department engaged the Office of the Premier who was responsible for facilitating the engagements with the relevant stakeholders in this regard, however, no MOA was signed by year-end and, as such, the department was not able to spend the funds though they completed the tender process and are waiting for the MOA to be signed, in order to award the contract. The department has requested for a roll-over in this regard.

pRoGRAMME 3: TRANSpoRT opERATioNS NiL The department fully spent its allocation against this programme.

pRoGRAMME 4: TRANSpoRT REGuLATioN NIL The department fully spent its allocation against this programme.

pRoGRAMME 5: CoMMuNiTy BASED pRoGRAMMES NiL The department fully spent its allocation against this programme.

1.3 viREMENTS Virements that have taken place during the 2017/18 financial year were as a result of savings identified between programmes and used to defray expenditure pressures against other programmes. The purpose of these virements was to ensure service delivery and alignment to the Department’s mandated objectives. The department hereby confirms that these virements remain within the stipulated eight percent under each main division.

The virements that were applied in the 2017/18 Annual Financial Statements are as per the below:

2017/2018 Adjusted programme Name virements Final Appropriation Actual Expenditure variance Appropriation R’000 R’000 R’000 R’000 R’000 Administration 347 052 (18 925) 328 127 328 127 - Transport Infrastructure 7 405 129 (53 272) 7 351 857 7 101 857 250 000 Transport Operations 1 437 403 72 962 1 510 365 1 510 365 - Transport Regulation 849 447 193 849 640 849 640 - Community Based 35 239 (958) 34 281 34 281 - Programme Total 10 074 270 - 10 074 270 9 824 270 250 000

AnnuAl RepoRt | 2017 - 2018 139 REpoRT By THE ACCouNTiNG offiCER REpoRT By THE ACCouNTiNG offiCER Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2. SERviCES RENDERED By THE DEpARTMENT 2.1 LiST of SERviCES The services rendered by the Department are outlined in the various programmes below:

pRoGRAMME 1: ADMiNiSTRATioN The purpose of Programme 1 is to provide the department with the overall management and administrative, strategic, financial and corporate support services (including human resource management, labour relations and legal services) in order to ensure that it delivers on its mandate in an integrated, efficient, effective and sustainable manner. The programme consists of four sub-programmes in line with the sector specific budget format, namely: Of- fice of the MEC, Management, Corporate Support, and Department Strategy.

pRoGRAMME 2: TRANSpoRT iNfRASTRuCTuRE The purpose of Programme 2 is to promote accessibility and safe and affordable movement of people, goods and services through the delivery and maintenance of transport infrastructure that is sustainable, integrated and environmentally sensitive, and which supports and facilitates social empowerment and economic growth. Programme 2 is aimed at determining the needs for the development of road, freight and public transport infrastructure, implementing maintenance programmes, providing access roads for communities to unlock economic potential, and promoting community development and eco-tourism. The programme consist of five sub-programmes in line with the sector specific budget format, namely: Sup- port Infrastructure, Infrastructure Planning, Infrastructure Design, Construction and Maintenance.

pRoGRAMME 3: TRANSpoRT opERATioNS The purpose of Programme 3 is to plan, regulate and facilitate the provision of integrated land transport services through co-ordination and co-operation with national planning authorities, non-government organisations (NGOs) and the private sector to enhance the mobility of all communities, especially those without or with limited access, and to implement road safety education and awareness programmes. The programme consists of three sub-programmes largely in line with the sector specific budget format, namely: Programme Support Operations, Public Transport Services and Transport Safety and Compliance. The main functions include the development of policies and plans for public and freight transport service and supporting infrastructure, the regulation of public and freight transport services, ant the enforcement of legislation in respect of public transport.

pRoGRAMME 4: TRANSpoRT REGuLATioN The purpose of this programme is to ensure the provision of a safe road environment through the regulation of traffic on public infrastructure, law enforcement and the registration and licensing of vehicles and drivers. The programme consists of four sub-programmes, in line with the sector specific budget format, namely: Programme Support Regulation, Transport Administration and Licensing, Operator Licence and Permits and Law Enforcement.

140 AnnuAl RepoRt | 2017 - 2018 REpoRT By THE ACCouNTiNG offiCER REpoRT By THE ACCouNTiNG offiCER Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

pRoGRAMME 5: CoMMuNiTy BASED pRoGRAMME The purpose of this programme is to direct and manage the implementation of programmes and strategies that lead to the development and empowerment of communities. These include the following: • The strategic planning and monitoring of programmes to further BBBEE. • Programmes to bring about the development and empowerment of impoverished communities. • The co-ordination of EPWP in the province. The programme consists of four sub programmes in line with the sector specific budget format, namely: Programme Support Community Based, Community Development, Innovation and Empowerment and EPWP Co-ordination and Monitoring.

2.2 DEpARTMENTAL REvENuE The Department determines the tariff adjustment taking into account the current inflation rate, and fee increases in other provinces. These increases are approved by the department in consultation with the Pro- vincial Treasury.

2017/2018 2016/2017 Actual Adjusted Actual Amount (over) / under Adjusted (over) /under Departmental Receipts Amount Appropriation Collected Collection Appropriation Collection Collected R’000 R’000 R’000 R’000 R’000 R’000 Tax Receipts

- Motor vehicle licences 1 597 163 1 658 031 (60 868) 1 535 734 1 599 609 (63 875)

Sale of goods and services 145 088 106 378 38 710 136 756 106 267 30 489 other than capital assets

Fines, penalties and forfeits 40 948 38 164 2 784 38 341 47 014 (8 673) Interest, dividends and rent 254 54 200 304 229 75 on land

Sale of capital assets 5 132 5 034 98 4 805 27 204 (22 399)

Financial transactions in 2 176 25 677 (23 501) 2 038 1 810 228 assets and liabilities

Total 1 790 761 1 833 338 (42 577) 1 717 978 1 782 133 (64 155)

The actual revenue collected was higher than the 2017/18 Adjusted Appropriation by R42.577 million. The reasons for variances between projections compared to actual collections below relate to the overall financial year: • Motor vehicle licenses over-collected by R60.868 million against the allocated budget due to higher than anticipated applications for new and renewals of motor vehicle licenses. • Sale of goods and services other than capital assets was under-collected by R38.710 million. This can be attributed to lower than anticipated collections mainly against abnormal loads licences, drivers licence application fees, applications for learners’ licences, drivers’ licence issuance and renewal, and conversion of drivers’ licences. • Fines, penalties and forfeits under-collected by R2.784 million resulting from fines paid being lower than anticipated. • Interest, dividends and rent on land under-collected by R200 000 due to lower than anticipated revenue generated from interest on staff debts.

AnnuAl RepoRt | 2017 - 2018 141 REpoRT By THE ACCouNTiNG offiCER REpoRT By THE ACCouNTiNG offiCER Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

• Sale of capital assets under-collected its allocation by R98 000 due to lower than anticipated proceeds from auction sales. Revenue from this source is mainly derived from the sale of obsolete assets. • Transactions in financial assets and liabilities over-collected its allocation by R23.501 million ascribed to recoveries from staff debts as well as unallocated credits that are higher than anticipated. Revenue from this category is difficult to project due to its unpredictable nature.

2.3 fREE SERviCES The Department does not render any free services that would have yielded significant revenue had a tariff been charged.

2.4 iNvENToRiES The inventory on hand at 31 March 2018 is R32 003 000. Details of the inventory movements are included in Annexure 6 to the Annual Financial Statements.

3. CApACiTy CoNSTRAiNTS financial Constraints The current condition of the road network is negatively impacting on the economic growth of historically disadvantaged areas. The backlog in maintenance must be addressed to facilitate economic growth in the second economy, job creation and poverty alleviation. The Department, together with Provincial Treasury have initiated a Maintenance Task Team working on finding alternate sources of funding to address the budget shortfall. Whilst addressing the backlog in maintenance it is vital that the ongoing maintenance programme continues. This ensures that newly constructed and upgraded roads do not deteriorate unduly. The annual need for this ongoing maintenance exceeds the budged allocated. The backlog cannot therefore be adequately addressed. The capacity of the Department to deliver efficiently and effectively on its mandate is dependent on the availability of a skilled and experienced workforce. The scarcity of certain skills in the South African labour market negatively affects the KwaZulu-Natal Department of Transport and its service delivery initiatives. This situation is exacerbated by the more competitive salaries offered by the private sector and municipalities for technicians and engineers. One of the major constraints on the Department is the impact of HIV/AIDS on the workforce. Loss of skilled workers through sickness and death is not only a human tragedy but also negatively impacts on service delivery. In order to address this constraint the Department has implemented HIV/AIDS awareness and education programmes in order to reduce the impact of this pandemic on Departmental staff both personally and professionally. The Department has also implemented an Employee Wellness Programme which provided free medical testing and referral services to staff for all medical conditions, not just HIV/AIDS. The programme also provides counselling and lifestyle advice for staff in order to improve wellness. For staff with HIV/AIDS, the Department provided free nutritional supplementation packs.

4. uTiLiSATioN of AiD ASSiSTANCE The detail of aid assistance received is tabled in Annexure 1H of the annual financial statements. 5. TRADiNG ENTiTiES AND puBLiC ENTiTiES The Department has no trading entities and public entities reporting to it.

142 AnnuAl RepoRt | 2017 - 2018 REpoRT By THE ACCouNTiNG offiCER REpoRT By THE ACCouNTiNG offiCER Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

6. oRGANiSATioNS To WHoM TRANSfER pAyMENTS HAvE BEEN MADE During 2017/18 the department made transfers payments to the Construction Education and Training Au- thority (CETA) levies in terms of the Skills Development Act, which is linked to the department’s salary costs and fluctuates according to the department’s salary bill.

7. puBLiC pRivATE pARTNERSHipS (ppp) No Public Private Partnerships have been entered into by the Department during the financial year under review.

8. CoRpoRATE GovERNANCE ARRANGEMENTS The Department operates in compliance with the Constitution of the Republic of South Africa, the Public Financial Management Act, the Public Service Act and all other relevant legislation governing its operations. The Department’s Senior Management Team is committed to the principles of sound Corporate Governance and is aware of their responsibilities and accountability in respect to this. A risk assessment was conducted by the department, in conjunction with the Provincial Internal Audit Unit and the department has been able to compile a risk register that has enabled management to identify and effect control measures that will reduce or mitigate risks that may occur as the department moves towards the achievement of its strategic objectives.

9. DiSCoNTiNuED ACTiviTiES/ACTiviTiES To BE DiSCoNTiNuED The function of providing Learner Transport is to be transferred to the Department of Education (DOE) with effect from 1 April 2018 together with the specifically allocated funding relating to this function. The department is continuing to provide transitional support to Department of Transport over the first half of the 2018/19 financial year in order to assist DOE whilst they are finalising their tender processes.

10. NEW/pRopoSED ACTiviTiES There are no new/proposed activities during the financial year under review.

11. SuppLy CHAiN MANAGEMENT List of unsolicited bid proposals concluded for the year under review Any unsolicited bids received would have been dealt with in terms of the National Treasury Practice Note on unsolicited bids, however there were no unsolicited bids received during this reporting period. List whether SCM processes are in place to prevent irregular expenditure The Department has finalised the approved SCM Policy and Procedure Manual and workshopped it across all Regional Offices and Head Office. Challenges experienced in SCM and how they were resolved Human Resource Structure shortcomings were noted in Head Office as well as Regional and Cost Centre offices. The department has finalised the organisational restructuring process and this has been forwarded to the Office of the premier for approval. The post of Director: Supply Chain Management continued to be vacant during the financial year however an Acting Director was in place for the full year. The process of filling the post is progressing well with interviews scheduled for June 2018.

AnnuAl RepoRt | 2017 - 2018 143 REpoRT By THE ACCouNTiNG offiCER REpoRT By THE ACCouNTiNG offiCER Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

12. GifTS AND DoNATioNS RECEivED iN KiND fRoM NoN-RELATED pARTiES The Department did not receive any donations during the period under review.

13. ASSET MANAGEMENT All assets have been recorded on the Department’s asset management system (HARDCAT) and an asset register was extracted as at 31 March 2018. The minimum requirements for the completion of the asset register and all asset management reforms and milestones have been complied with. In addition to the normal day-to-day administration and management of the department’s asset register, the department’s Asset Management unit undertook key activities to improve the overall asset management environment of the department. These activities are as follows: • Asset Verification – The Asset Management unit continued to co-ordinate the asset verification process. The focus of the 2017/18 annual asset verification is to ensure that all departmental assets are accounted for and to identify redundant and obsolete assets for disposal. • Asset Disposal – During the 2017/18 financial year the department managed to dispose redundant and obsolete assets through a donation (mostly computer equipment), sale of scrap, auction sale (motor vehicles and plant). During the process, revenue amounting to R5.034 million was collected on the sale of capital and minor assets.

14. EvENTS AfTER THE REpoRTiNG DATE There are no significant events that occurred after the reporting date which will influence the interpretation of the results under review.

15. pERfoRMANCE iNfoRMATioN The Department has clearly defined service delivery outputs which are managed by the appointed respective components and report in the prescribed format as defined by the treasury guideline document. Responsi- bility Managers reported on a quarterly basis on the progress made with regard to programme delivery and measurable objectives, as contained in the Department’s Strategic Plan and the Annual Performance Plan.

16. SCopA RESoLuTioNS During the year under review all resolution that were raised by SCOPA were tabled and debated with sat- isfactory responses provided. The department continually monitors and updates the progress on the audit improvement plan to ensure issues raised are resolved. There are no outstanding resolutions for the period under review.

17. pRioR MoDifiCATioNS To AuDiT REpoRTS 2015/16 Qualified Audit Opinion 2016/17 Qualified Audit Opinion 2017/18 Qualified Audit Opinion Comments on the 2017/18 audit opinion • In respect of the qualification relating to immovable assets, the basis of the qualification is non-compliance with the Modified Cash Standard (MCS) on Capital Assets. The department believes it has fully complied with the MCS, the accounting manual on Capital Assets together with the Immovable Assets Guide by National Treasury for the recognition, measurement, recording, presentation and disclosure of Immovable Assets. The disclosures made and accounting policies applied by the department are consistent with the prior financial year, after correcting for the prior audit qualification matter on ex-

144 AnnuAl RepoRt | 2017 - 2018 REpoRT By THE ACCouNTiNG offiCER REpoRT By THE ACCouNTiNG offiCER Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

propriated properties. The Provincial Treasury has indicated that, via discussion with the National Treasury, the department needs to disclose roads that are built on state owned properties at cost or fair value, and other roads on non-state owned property in a narrative and the department has complied with these disclosures.

• In respect of the non-compliance finding relating to the Vukuzakhe programme, the basis of the non-compliance is recorded as non-compliance with Treasury Regulation 16A6.2(a). The Vukuzakhe Emerging Contractor Development Programme is currently implemented in terms of an approval granted by the Accounting Officer on 30 September 2015. This approval deviates from procurement processes in order to allow the department to target the development of black contractors through an emerging contractor development programme and complies with the requirements of Treasury Regu- lation 16A6.4. The policy sets out the specific case of Vukuzakhe and the other means of procurement to be implemented by the department in applying this policy. Compliance with Treasury Regulation 16A6.2 is not required for transactions undertaken in terms of Treasury Regulation 16A6.4, this results in the transactions in questions being in compliance with the Treasury Regulations read as a whole.

18. ExEMpTioNS AND DEviATioNS RECEivED fRoM THE NATioNAL TREASuRy The National Treasury has exempted the department from complying with certain sections of the Govern- ment Immovable asset management Act, No 19 of 2007. In particular the department is exempted from the following: • The disclosure of building and other fixed structures in the disclosure notes for the tangible assets for the current and prior year. • The use of fair value to value assets, which is referred to in the asset management policy set by the National Treasury.

No conditions apply to these exemptions for the year ended 31 March 2018.

19. iNTERiM fiNANCiAL STATEMENTS Interim financial statements were prepared quarterly for the financial year that depicted a true and fair view of the financial performance, financial position, changes to net assets and cash flows of the department at the end of each quarter. The interim financial statements were prepared on a modified cash basis of accounting and the National Treasury – determined Framework as prescribed in the PFMA and Treasury Regulations and the relevant guidelines issued by the National Treasury.

20. oTHER There is no other material fact or circumstances, which may have an effect on the understanding of the financial state of affairs that is not addressed elsewhere in this department.

21. AppRovAL The attached Annual Financial Statements have been approved by the Accounting Officer.

………………………………………………….. MR. BS GuMBi ACCouNTiNG offiCER: TRANSpoRT

AnnuAl RepoRt | 2017 - 2018 145 AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018

The Department of Tranpsort completed P451 in Hluhluwe under the The Big 5 False Local Municipality

146 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018

- 10 320 Actual 9 560 011 Expenditure Expenditure

- - -

2016/17 final 9 577 620 9 549 691 9 577 620 9 549 691 1 784 229 11 361 849 Appropriation Appropriation

97,5% 97,5% R’000 R’000 as % of final Expenditure Expenditure appropriation

- - - 100,0% 32 497 32 497 - - 100,0% 100,0% 1 370 460 1 370 460 778 062 778 062 - 100,0% 314 310 314 310

% variance variance

- 1 127 9 825 397 R’000 Actual Expenditure Expenditure

- - - final 1 833 338 2017/18 11 907 608 Appropriation Appropriation

- 10 074 270 9 824 270 250 000 - 10 074 270 9 824 270 250 000 - ioN pER pRoGRAMME irement v irement

R’000 R’000 R’000 Shifting of funds AT AppRopRi

- - 35 239 - (958) 34 281 34 281 849 447 - 193 849 640 849 640 347 052 - (18 925) 328 127 328 127 1 437 403 - 72 962 1 510 365 1 510 365 7 405 129 - (53 272) 7 351 857 7 101 857 250 000 96,6% 7 082 291 7 054 362 10 074 270 - 10 074 270 - R’000 Adjusted Adjusted Appropriation Appropriation uRE ioN L TA programme sub total programme Statutory Appropriation Statutory CoMMuNiTy BASED pRoGRAMME BASED CoMMuNiTy TRANSpo RT opERATioNS LAT REGu TRANSpoRT CT TRANSpo RT iNfRASTRu Aid assistance Aid assistance ADMiNiSTRATioN NRF Receipts NRF Receipts Aid assistance Departmental receipts receipts Departmental 5. 4. 2. 3. 1. To

Reconciliation with Statement of Financial Performance Performance of Financial with Statement Reconciliation

Add: Add:

Actual amounts per Statement of financial performance of financial performance per Statement Actual amounts Expenditure Revenue) (Total of financial performance per Statement Actual amounts

AnnuAl RepoRt | 2017 - 2018 147 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

- - - - Actual Expenditure Expenditure

- - - - 188 188 929 929 588 588 657 657 2016/17 final 4 799 234 4 797 234 Appropriation Appropriation

96,0% R’000 R’000 as % of final Expenditure Expenditure appropriation

- - - 100,0% 37 511 37 511 - 100,0% - - - 100,0% 7 861 7 861 - - - 100,0% 71 846 71 846 - - - 100,0% 9 795 9 795 - 100,0% 27 965 27 965 - 100,0% - - - 100,0% 229 477 227 477 - 100,0% 66 214 66 214 - 100,0% 38 669 38 669 - - - 100,0% - 100,0% 100,0% 7 420 100,0% 5 900 7 420 4 582 5 900 4 582 - 100,0% 7 855 7 855 - 100,0% 7 314 7 314 - 100,0% 168 622 168 622 - 100,0% 1 094 212 1 094 212 - 100,0% 1 262 834 1 262 834 % variance variance

- - - - - 289 618 1 025 7 921 8 438 3 096 8 023 5 812 7 012 io N R’000 Actual Expenditure Expenditure

- - - - - 289 618 final 2017/18 Appropriation Appropriation oNoMiC oNoMiC CLASSifi CAT

- - - - EC 39 1 025

ER p irement v irement io N

opRi AT R’000 R’000 R’000 Shifting of funds

------App R 190 - (190) 986 - 545 - (256) 9 966 - 46 855 56 821 56 821 6 283 - (471) 5 812 1 124 - (506) 8 153 - (130) 8 023 8 674 - (1 662) 7 012 1 727 - 21 013 22 740 22 740 10 807 - (2 886) 7 921 80 844 - 78 150 158 994 158 994 14 917 - (6 479) 8 438 22 426 - (7 629) 14 797 14 797 66 691 - 60 393 127 084 127 084 35 408 - (2 228) 33 180 33 180 12 912 - (9 816) 3 096 114 318 - 166 436 280 754 278 754 2 000 99,3% 82 629 82 629 181 581 - (37) 181 544 181 544 2 117 930 - (69 610) 2 048 320 1 848 320 200 000 90,2% 2 198 989 2 198 989 3 548 139 - 158 112 3 706 251 3 504 251 202 000 94,5% 3 536 400 3 534 400 1 363 092 - (204 031) 1 159 061 1 159 061 1 544 673 - (204 068) 1 340 605 1 340 605 5 092 812 - (45 956) 5 046 856 4 844 856 202 000 R’000 Adjusted Adjusted Appropriation Appropriation Inventory: Learner and teacher Learner and teacher Inventory: support material Inventory: Fuel, oil and gas Inventory: Inventory: Food and food supplies and food Food Inventory: Inventory: Farming supplies Farming Inventory: Inventory: Clothing material and Clothing material Inventory: accessories Housing Fleet servicesFleet (including transport) motor government Entertainment Agency and support / outsourced and support / outsourced Agency services Contractors Legal services Legal Scientific and technological services technological and Scientific Laboratory services Laboratory Infrastructure and planning servicesInfrastructure 210 317 - (184 929) 25 388 25 388 Consultants: Business and advisory Consultants: services Computer services Computer Catering: Departmental activities Departmental Catering: Audit costs: External Audit costs: Employees Bursaries: (G&S) Communication Minor assets Advertising Administrative fees Administrative Goods and services Social contributions Salaries and wages Compensation of employees Compensation

payments Current

148 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

------Actual Expenditure Expenditure

------2016/17 5 093 5 093 final 1 033 393 1 033 393 Appropriation Appropriation

100,0% R’000 R’000 as % of final Expenditure Expenditure appropriation

- - - - - 100,0% 3 986 3 986 - - - 100,0% 3 986 3 986 ------100,0% - 100,0% 5 093 5 093 - 100,0% 5 093 5 093 ------100,0% 142 406 142 406 - 100,0% 9 460 9 460 - 100,0% 5 019 5 019 - 100,0% 7 987 7 987 - 100,0% 73 234 73 234 - 100,0% 244 492 244 492 - 100,0% 126 997 126 997 - 100,0% 33 173 33 173 - 100,0% 17 001 17 001 - 100,0% 6 449 6 449 - 100,0% % variance variance

------19 4 493 4 493 5 896 5 896 5 896 9 841 4 077 7 895 io N R’000 Actual Expenditure Expenditure

------19 final 2017/18 Appropriation Appropriation oNoMiC oNoMiC CLASSifi CAT

------EC 19 (6) 4 493 (6) 4 493

ER p irement v irement io N

opRi AT R’000 R’000 R’000 Shifting of funds

------App R 4 499 - 4 499 - 4 986 - 910 5 896 4 986 - 910 5 896 4 986 - 910 5 896 7 855 - (3 778) 4 077 6 912 - 4 489 11 401 11 401 7 700 - 195 7 895 12 512 - (2 671) 9 841 70 357 - (11 835) 58 522 58 522 35 984 - 203 973 239 957 239 957 17 328 - 4 264 21 592 21 592 208 684 - (191 617) 17 067 17 067 251 233 - 34 320 285 553 285 553 117 507 - 58 209 175 716 175 716 1 100 816 - 37 430 1 138 246 1 138 246 R’000 Adjusted Adjusted Appropriation Appropriation Foreign governments and governments Foreign organisations international Higher education institutions Higher education Departmental agencies (non- agencies Departmental business entities) Social security funds Departmental agencies and agencies Departmental accounts Municipal agencies and funds Municipal agencies Municipal bank accounts Provincial agencies and funds agencies Provincial Municipalities Provincial Revenue Funds Revenue Provincial Provinces Provinces and municipalities Provinces Rent on land Rent Interest (Incl. interest on unitary on unitary (Incl. interest Interest (PPP)) payments Interest and rent on land and rent Interest Rental and hiring Rental Venues and facilities Venues Operating payments Operating Training and development Training Travel and subsistence Travel Transport provided: Departmental Departmental provided: Transport activity Property payments Property Operating leases Operating Consumable: Stationery, printing printing Consumable: Stationery, and office supplies Consumable supplies Inventory: Other supplies Inventory:

and subsidies Transfers

AnnuAl RepoRt | 2017 - 2018 149 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

------Actual Expenditure Expenditure

------2016/17 6 901 6 901 final 9 577 620 9 549 691 3 738 092 3 712 163 Appropriation Appropriation

97,5% 98,8% 100,0% R’000 R’000 as % of final Expenditure Expenditure appropriation

- - 100,0% 1 342 1 342 ------100,0% 37 403 37 403 - 100,0% 142 692 142 692 - 100,0% 180 095 180 095 - - - 100,0% 2 751 2 751 - 100,0% 10 478 10 478 - 100,0% 13 229 13 229 - - - 100,0% 1 011 085 1 011 085 - - - 100,0% 1 011 085 1 011 085 % variance variance

------ioN 934 371 2 219 R’000 Actual Expenditure Expenditure

------934 371 final 2017/18 Appropriation Appropriation

- 10 074 270 9 824 270 250 000 ------irement v irement ioN pER ECoNoMiC CLASSifi CATioN pER ECoNoMiC

R’000 R’000 R’000 Shifting of funds

------795 - 139 1 317 - (946) 4 055 - (1 836) 2 219 18 234 - 73 003 91 237 91 237 13 972 - (1 561) 12 411 12 411 18 027 - (3 397) 14 630 14 630 160 365 - (51 646) 108 719 108 719 178 599 - 21 357 199 956 199 956 AT AppRopRi 3 699 931 - (12 024) 3 687 907 3 639 907 48 000 98,7% 3 556 655 3 530 726 3 879 847 - 8 387 3 888 234 3 840 234 48 000 1 073 304 - 39 923 1 113 227 1 113 227 1 073 304 - 39 923 1 113 227 1 113 227 10 074 270 - R’000 Adjusted Adjusted Appropriation Appropriation

Software and other intangible and other intangible Software assets financial assets for Payment Land and sub-soil assets Biological assets Biological Specialised military assets Specialised military Heritage assets Heritage Other machinery and equipment Transport equipment Transport Machinery and equipment Other fixed structures Other fixed Buildings Buildings and other fixed structures Buildings and other fixed 3 699 931 - (12 024) 3 687 907 3 639 907 48 000 98,7% 3 556 655 3 530 726 Other transfers to households to Other transfers Social benefits Households Non-profit institutions Non-profit Other transfers to private private to Other transfers enterprises Subsidies on products and on products Subsidies (pe) production Private enterprises Private

assets capital for payments

150 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

- - - - - Actual Expenditure Expenditure

- - - - - 657 505 657 505 431 431 2016/17 279 772 279 772 314 310 314 310 final R’000 R’000 Appropriation Appropriation

100,0% 100,0% % as % of final Expenditure Expenditure appropriation

- - - 100,0% 3 558 3 558 - - - 100,0% 5 350 5 350 - 100,0% 7 368 7 368 - 100,0% 10 658 10 658 ------100,0% 12 345 12 345 - 100,0% 56 545 56 545 - 100,0% 16 423 16 423 - - - 100,0% 100,0% 100,0% 5 496 5 496 - 100,0% 1 016 1 016 - 100,0% 3 961 3 961 - 100,0% - 100,0% 152 842 152 842 - 100,0% 16 558 16 558 - 100,0% 110 372 110 372 - 100,0% 126 930 126 930 - - - 100,0% 21 117 21 117 - 100,0% 264 993 264 993 - 100,0% 14 690 14 690 - 100,0% 13 510 13 510 variance variance

- - - - - 519 618 653 572 3 507 6 787 9 734 7 766 3 109 1 076 R’000 R’000 Actual Expenditure Expenditure N iNiSTRATio

- - - - - 519 618 653 572 final 2017/18 1: ADM Appropriation Appropriation

- - - - 67 7 766 GRAMME o irement v irement pR

- - (1 852) 3 507 - - (7 602) - (2 576) 6 787 - (3 370) 9 734 - - - (318) - 8 292 20 587 20 587 - 23 999 77 521 77 521 - 5 461 18 072 18 072 - - (506) (107) - - (1 191) - (1 983) 3 109 - 755 1 076 - (7 240) 172 063 172 063 - (168) 17 875 17 875 - (3 954) 119 539 119 539 - (4 122) 137 414 137 414 - (11 362) 309 477 309 477 - 379 26 726 26 726 - (19 110) 275 227 275 227 - 510 12 226 12 226 - (704) 13 948 13 948 ER p R’000 R’000 R’000 Shifting of funds

- - - - 318 760 321 5 359 8 121 9 363 1 124 7 699 1 763 5 092 13 104 12 295 53 522 12 611 18 043 26 347 11 716 14 652 179 303 123 493 141 536 320 839 347 052 - (18 925) 328 127 328 127 294 337 i DETA R’000 Adjusted Adjusted Appropriation Appropriation

Housing Fleet servicesFleet (including transport) motor government Entertainment Agency and support / outsourced and support / outsourced Agency services Contractors Legal services Legal Scientific and technological services technological and Scientific Laboratory services Laboratory Infrastructure and planning services Infrastructure Consultants: Business and advisory Consultants: services Computer services Computer Bursaries: Employees Bursaries: activities Departmental Catering: (G&S) Communication Audit costs: External Audit costs: Minor assets Advertising Administrative fees Administrative Goods and services Social contributions Salaries and wages Compensation of employees Compensation DEpARTMENTAL STRATEGy DEpARTMENTAL CoRpoRATE Suppo RT CoRpoRATE MANAGEMENT offiCE of THE MEC 4. 3. 2. 1.

payments Current

Detail per sub-programmes Economic classification Economic

Sub programme

AnnuAl RepoRt | 2017 - 2018 151 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 ------Actual Expenditure Expenditure ------369 369 369 369 369 369 791 495 500 791 495 500 294 294 901 901 2016/17 188 188 512 512 8 253 8 253 final Appropriation Appropriation 100,0% as % of final Expenditure Expenditure appropriation - - - 100,0% 3 977 3 977 - - - - 100,0% - - - - 100,0% ------100,0% ------100,0% - 100,0% - 100,0% - 100,0% 13 570 13 570 - 100,0% 5 410 5 410 - 100,0% 1 026 1 026 - 100,0% 3 126 3 126 - - 100,0% 100,0% 1 716 1 716 ------100,0% - - - - - 100,0% variance variance ------77 77 77 94 21 707 634 4 493 8 559 1 137 2 281 9 318 1 038 3 439 1 646 1 227 Actual Expenditure Expenditure N iNiSTRATio ------77 77 77 94 21 707 634 final 2017/18 1: ADM Appropriation Appropriation - 4 493 ------43 3 439 21 93 GRAMME o irement v irement pR - - - - (15) - - (1 329) 8 559 - - - (15) - - (15) - - - - - (75) (493) - 414 1 137 - (251) 1 038 - (12 833) 2 281 - (13 299) 9 318 - (238) 1 227 - - 1 457 1 646 - - (958) - - - - (190) - - ER p Shifting of funds LS ------92 92 92 782 587 723 189 958 190 541 4 493 9 888 1 289 1 465 3 396 15 114 22 617 i DETA Adjusted Adjusted Appropriation Appropriation

Departmental agencies and agencies Departmental accounts Social security funds Provinces and municipalities Provinces and funds Municipal agencies Provinces Municipal bank accounts Transfers and subsidies Transfers Provincial Revenue Funds Revenue Provincial and funds agencies Provincial Municipalities Rent on land Rent Interest (Incl. interest on unitary on unitary (Incl. interest Interest (PPP)) payments Interest and rent on land and rent Interest Operating payments Operating and facilities Venues and hiring Rental Training and development Training Transport provided: Departmental Departmental provided: Transport activity Travel and subsistence Travel Property payments Property Consumable: Stationery, printing printing Consumable: Stationery, and office supplies Operating leases Operating Consumable supplies Inventory: Other supplies Inventory: Inventory: Medicine Inventory: interface Medsas inventory Inventory: Medical supplies Medical Inventory: Inventory: Learner and teacher Learner and teacher Inventory: support material and supplies Materials Inventory: Inventory: Fuel, oil and gas Inventory: Inventory: Food and food supplies and food Food Inventory:

Detail per sub-programmes

152 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 ------6 Actual Expenditure Expenditure ------6 2016/17 4 940 4 940 21 345 21 345 314 310 314 310 final Appropriation Appropriation 100,0% 100,0% as % of final Expenditure Expenditure appropriation ------100,0% 21 339 21 339 - - - 100,0% 21 339 21 339 ------100,0% 2 620 2 620 - 100,0% 1 287 1 287 - 100,0% 3 907 3 907 ------variance variance ------2 168 1 821 3 989 Actual Expenditure Expenditure N iNiSTRATio ------final 2017/18 1: ADM Appropriation Appropriation ------GRAMME o irement v irement pR ------(234) 10 091 10 091 - (6 000) - (6 234) 10 091 10 091 - - - - (6 234) 10 091 10 091 - (1 556) 2 168 - 242 1 821 - (1 314) 3 989 ------ER p Shifting of funds LS ------6 000 3 724 1 579 5 303 10 325 16 325 16 325 347 052 - (18 925) 328 127 328 127 i DETA Adjusted Adjusted Appropriation Appropriation

Payment for financial assets for Payment

Software and other intangible and other intangible Software assets Land and sub-soil assets Biological assets Biological Specialised military assets Specialised military Heritage assets Heritage Other machinery and equipment Transport equipment Transport Machinery and equipment Other fixed structures Other fixed Buildings Buildings and other fixed structures Buildings and other fixed payments for capital assets capital for payments Other transfers to households to Other transfers Social benefits Households Non-profit institutions Non-profit Other transfers to private private to Other transfers enterprises Subsidies on products and on products Subsidies (pe) production Private enterprises Private Other transfers to public to Other transfers corporations Subsidies on products and on products Subsidies (pc) production Public corporations Public corporations and private and private Public corporations enterprises Foreign governments and governments Foreign organisations international

Detail per sub-programmes

AnnuAl RepoRt | 2017 - 2018 153 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

- - - Actual Expenditure Expenditure

- - - 70 70 744 744 588 588 354 354 2016/17 final 7 082 291 7 054 362 3 387 045 3 385 045 R’000 R’000 Appropriation Appropriation

96,6% 94,2% % as % of final Expenditure Expenditure appropriation

- 100,0% 34 374 34 374 - - - 100,0% 3 259 3 259 - 100,0% - - 100,0% 100,0% 224 641 222 641 - - - 100,0% 2 244 2 244 - 100,0% 10 536 10 536 - 100,0% - 5 810 100,0% 5 810 - - 100,0% 100,0% - - 5 908 1 148 5 908 1 148 - 100,0% - 100,0% 69 570 69 570 - 100,0% 463 683 463 683 - 100,0% 533 253 533 253 - 100,0% 37 140 37 140 - 100,0% 21 118 21 118 RE u CT variance variance

- - - 269 289 231 245 7 913 5 901 2 055 1 562 R’000 R’000 Actual u iNfRASTR Expenditure Expenditure

- - - 269 289 231 245 final 2017/18 Appropriation Appropriation

- - - 2: TRANS po RT 2: irement v irement

- 79 139 117 108 117 108 - - 2 539 7 913 - - (631) (97 842) 1 985 263 1 785 263 200 000 89,9% 2 169 903 2 169 903 - (256) - - (184 478) 24 895 24 895 - 177 331 215 672 213 672 2 000 99,1% 16 160 16 160 - 33 945 39 922 39 922 - (5 110) 5 901 - - 145 - (7 577) 2 055 - (190) - - - 99 795 19 677 2 914 286 761 20 280 2 712 286 1 562 202 000 20 280 93,1% 2 853 792 2 851 792 - 1 135 76 094 76 094 - (169 979) 492 939 492 939 - (168 844) 569 033 569 033 - (69 049) 3 483 319 3 281 319 202 000 - (12 024) 3 687 907 3 639 907 48 000 98,7% 3 556 655 3 530 726 - (68 815) 3 303 360 3 103 360 200 000 93,9% 3 207 708 3 207 708 - (8 288) 33 354 33 354 - 1 039 29 649 29 649 - 34 816 297 587 295 587 2 000 99,3% 259 670 257 670 GRAMME o R’000 R’000 R’000 Shifting of funds

- - - 86 900 545 435 603 801 ER 5 374 5 977 9 632 p 37 969 38 341 11 011 74 959 41 642 28 610 209 373 662 918 737 877 262 771 2 083 105 2 814 491 7 405 129 - (53 272) 7 351 857 7 101 857 250 000 3 552 368 3 699 931 3 372 175 LS R’000 Adjusted Adjusted Appropriation Appropriation

i DETA uRE DESiGN uRE pLANNiNG ioN Fleet servicesFleet (including transport) motor government Entertainment Agency and support / outsourced and support / outsourced Agency services Legal services Legal Contractors Scientific and technological services technological and Scientific CT CoNSTRu MAiNTENANCE CT iNfRASTRu CT iNfRASTRu pRoGRAMME Suppo RT pRoGRAMME iNfRASTRuCuRE Laboratory services Laboratory Infrastructure and planning services Infrastructure Consultants: Business and advisory Consultants: services Computer services Computer Audit costs: External Audit costs: activities Departmental Catering: (G&S) Communication Administrative fees Administrative Advertising Minor assets Employees Bursaries: Goods and services Social contributions Salaries and wages Compensation of employees Compensation 4. 5. 3. 2. 1.

payments Current Economic classification Economic

Sub programme

154 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

------1 Actual Expenditure Expenditure

------1 10 10 2016/17 4 238 4 238 10 455 10 455 final Appropriation Appropriation

100,0% R’000 R’000 as % of final Expenditure Expenditure appropriation

------100,0% - 100,0% 4 238 4 238 - 100,0% 4 238 4 238 ------100,0% 138 228 138 228 - 100,0% - 100,0% 2 306 2 306 - 100,0% 5 666 5 666 - 100,0% 26 448 26 448 - 100,0% - 100,0% 86 489 86 489 - - 100,0% - 100,0% 100,0% 3 749 3 185 3 749 9 134 3 185 9 134 - 100,0% ------100,0% 62 784 62 784 - - - 100,0% 37 483 37 483 - - RE u % CT variance variance

------19 141 386 5 218 5 218 5 218 1 794 9 792 4 156 3 322 R’000 Actual u iNfRASTR Expenditure Expenditure

------19 141 386 final 2017/18 Appropriation Appropriation

------19 (1) (4) 2: TRANS po RT 2: irement v irement

- - - - - 1 148 5 218 - 1 148 5 218 - 1 148 5 218 - (452) 12 082 12 082 - - - - (186 429) 16 880 16 880 - 141 - (2 482) 1 794 - 5 354 9 792 - 6 436 32 253 32 253 - 275 - 27 482 81 182 81 182 - - - (113) (25) 208 790 4 156 218 341 3 322 218 341 - - - - - (22 536) 64 222 64 222 - - 46 867 56 812 56 812 - GRAMME o R’000 R’000 R’000 Shifting of funds pR

------4 1 111 ER 4 070 4 070 4 070 4 276 4 438 4 269 3 347 9 551 9 945 p 12 534 25 817 53 700 86 758 203 309 LS R’000 Adjusted Adjusted Appropriation Appropriation i DETA Provinces and municipalities Provinces Transfers and subsidies Transfers Rent on land Rent Interest (Incl. interest on unitary on unitary (Incl. interest Interest (PPP)) payments Interest and rent on land and rent Interest Rental and hiring Rental Venues and facilities Venues Operating payments Operating Training and development Training Travel and subsistence Travel Transport provided: Departmental Departmental provided: Transport activity Consumable supplies printing Consumable: Stationery, and office supplies leases Operating payments Property Inventory: Other supplies Inventory: Inventory: Medicine Inventory: interface Medsas inventory Inventory: Medical supplies Medical Inventory: Inventory: Materials and supplies Materials Inventory: Inventory: Learner and teacher Learner and teacher Inventory: support material Inventory: Fuel, oil and gas Inventory: Departmental agencies and accounts agencies Departmental Municipal agencies and funds Municipal agencies Municipal bank accounts Provincial agencies and funds agencies Provincial Municipalities Provincial Revenue Funds Revenue Provincial Provinces

AnnuAl RepoRt | 2017 - 2018 155 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

------29 Actual Expenditure Expenditure

------29 2016/17 final Appropriation Appropriation

R’000 R’000 as % of final Expenditure Expenditure appropriation

- - 100,0% 100,0% 6 216 6 187 6 216 6 187 ------100,0% - - 100,0% 100,0% 054 112 13 663 054 112 13 663 - - - 100,0% 125 717 125 717 - - 100,0% 100,0% 1 336 1 083 1 336 1 083 ------RE u % CT variance variance

------38 371 562 6 864 6 826 79 530 88 086 R’000 Actual u iNfRASTR Expenditure Expenditure

------38 371 562 6 864 6 826 final 2017/18 Appropriation Appropriation

------2 17 2: TRANS po RT 2: irement v irement

- - (1 599) (1 616) ------16 227 3 855 894 3 807 894 48 000 98,8% 3 683 708 3 657 779 - (12 024) 3 687 907 3 639 907 48 000 98,7% 3 556 655 3 530 726 - (12 024) 3 687 907 3 639 907 48 000 98,7% 3 556 655 3 530 726 - 75 922 79 530 - - (46 725) 88 086 - 29 197 167 616 167 616 - - (946) - - - - GRAMME o R’000 R’000 R’000 Shifting of funds pR

------21 560 ER 8 463 8 442 3 608 1 317 p 134 811 134 811 138 419 3 839 667 3 699 931 3 699 931 7 405 129 - (53 272) 7 351 857 7 101 857 250 000 96,6% 7 082 291 7 054 362 LS R’000 Adjusted Adjusted Appropriation Appropriation i DETA Payment for financial assets Public corporations and production on products Subsidies (pc) public corporations to Other transfers enterprises Private and production on products Subsidies (pe) enterprises private to Other transfers institutions Non-profit Households Social benefits households to Other transfers Payments for capital assets Public corporations and private and private Public corporations enterprises Buildings and other fixed structures Buildings Other fixed structures Other machinery and equipment Heritage assets Specialised military assets Transport equipment Transport Biological assets Machinery and equipment Land and sub-soil assets Software and other intangible assets

156 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 ------18 Actual Expenditure ------18 2016/17 345 345 304 304 Final R’000 R’000 Appropriation % as % of final appropriation - - - 100,0% - - - 100,0% 2 087 2 087 - - - 100,0% 10 550 10 550 - - - 100,0% 100,0% 100,0% 37 676 33 850 37 676 3 826 33 850 3 826 - 100,0% - - 29 271 100,0% 100,0% 29 271 73 155 1 370 460 73 155 1 370 460 - - 100,0% 100,0% 2 547 2 547 - - 100,0% 100,0% 3 614 1 689 3 614 1 689 - 100,0% 1 268 034 1 268 034 - 100,0% ------R’000 Variance Variance Expenditure ------9 330 724 433 882 3 693 2 277 4 868 32 373 36 066 28 389 84 576 24 949 1 050 96,0% 35 601 35 601 opERATioNS R’000 Actual Expenditure ------9 330 724 433 882 3 693 2 277 4 868 2017/18 R’000 Appropriation 3: TRANS po RT 3: ------92 Virement Virement Final GRAMME - - 186 - - (176) - 24 244 26 394 26 394 - (4 266) - 33 265 398 899 397 849 1 050 99,7% 359 180 359 180 - - (3 659) (411) 32 373 - 37 335 362 833 361 783 1 050 99,7% 321 504 321 504 - (4 070) 36 066 - - (196) (671) - - - (202) 7 639 28 389 84 576 - - (130) (873) - (8 718) 25 999 - 65 525 1 397 400 1 397 400 ------o pR R’000 R’000 Shifting of Funds ER ------p 680 238 247 176 4 104 2 473 4 998 1 597 2 150 5 148 LS 36 032 40 136 28 591 76 937 34 717 365 634 325 498 1 437 403 - 72 962 1 510 365 1 510 365 1 331 875 R’000 Adjusted Appropriation i DETA fETy AND CES SERvi iC TRANSpoRT Housing Fleet servicesFleet (including transport) motor government Entertainment Agency and support / outsourced and support / outsourced Agency services Contractors Current payments Salaries and wages Social contributions Goods and services Compensation of employees Legal services Legal pu BL TRANSpo RT SA CoMpLiANCE Advertising Minor assets Audit costs: External Administrative fees Bursaries: Employees Catering: Departmental activities Communication (G&S) Computer services Consultants: Business and advisory services pRoGRAMME Suppo RT pRoGRAMME opERATioNS Infrastructure and planning services Laboratory services Scientific and technological services 2. 3. 1.

Economic classification programme 3 Economic Classification Sub programme

AnnuAl RepoRt | 2017 - 2018 157 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 ------4 Actual Expenditure ------4 11 11 11 11 11 11 80 80 40 40 2016/17 445 445 254 254 129 335 129 335 1 011 202 1 011 202 Final R’000 R’000 Appropriation 100,1% % as % of final appropriation ------100,0% - 100,0% 8 094 8 094 - - 100,0% 100,0% 1 175 1 175 - 100,0% 9 638 9 638 - - 100,0% 100,0% 243 466 243 466 - - 100,0% 100,0% 1 025 1 025 - 100,0% ------100,0% - - R’000 Variance Variance Expenditure ------7 89 34 152 859 311 489 9 173 4 457 3 605 opERATioNS R’000 Actual Expenditure ------7 89 34 152 859 311 489 2017/18 R’000 Appropriation 3: TRANS po RT 3: ------(5) Virement Virement Final GRAMME - - - - (12) - - 39 906 1 111 418 1 112 468 (1 050) - - - - (12) - - (12) - - (576) - (1 174) 9 173 - (217) - (1 220) - (4 472) 4 457 - 31 908 281 741 281 741 - - - (91) (57) 3 498 3 605 - 330 ------(35) - o pR R’000 R’000 Shifting of Funds ER ------5 p 12 12 12 42 665 369 950 368 107 159 1 254 8 929 LS 10 347 249 833 1 071 512 R’000 Adjusted Appropriation i DETA Social security funds Departmental agencies and agencies Departmental accounts Provinces and municipalities Provinces and funds Municipal agencies Transfers and subsidies Transfers Provinces Municipal bank accounts Rent on land Rent Funds Revenue Provincial and funds agencies Provincial Municipalities Interest (Incl. interest on unitary on unitary (Incl. interest Interest (PPP)) payments Rental and hiring Rental on land and rent Interest Venues and facilities Venues Operating payments Operating Training and development Training Travel and subsistence Travel Transport provided: Departmental Departmental provided: Transport activity Consumable: Stationery, printing printing Consumable: Stationery, and office supplies leases Operating payments Property Consumable supplies Inventory: Other supplies Inventory: Medsas inventory interface Medsas inventory Inventory: Materials and supplies Materials Inventory: Medicine Inventory: Inventory: Learner and teacher Learner and teacher Inventory: support material supplies Medical Inventory: Inventory: Fuel, oil and gas Inventory:

programme 3 Economic Classification

158 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 ------Actual Expenditure ------78 78 78 78 78 78 2016/17 102 102 102 102 1 370 460 1 370 460 Final R’000 R’000 Appropriation 100,0% 100,0% % as % of final appropriation ------100,0% - - - 100,0% ------100,0% 100,0% 100,0% ------R’000 Variance Variance Expenditure ------48 48 48 56 43 13 opERATioNS R’000 Actual Expenditure ------48 48 48 56 43 13 2017/18 R’000 Appropriation 3: TRANS po RT 3: ------27 Virement Virement Final GRAMME ------(209) - - (209) ------(27) - (209) - - 39 923 1 111 362 1 112 412 (1 050) 100,1% 1 011 085 1 011 085 - - 39 923 1 111 362 1 112 412 (1 050) 100,1% 1 011 085 1 011 085 - - - - 39 923 1 111 362 1 112 412 (1 050) 100,1% 1 011 085 1 011 085 o pR R’000 R’000 Shifting of Funds ER ------p 56 40 16 257 257 257 LS 1 437 403 - 72 962 1 510 365 1 510 365 1 071 439 1 071 439 1 071 439 R’000 Adjusted Appropriation i DETA Payment for financial assets for Payment

Software and other intangible and other intangible Software assets Land and sub-soil assets Biological assets Biological Specialised military assets Specialised military Other machinery and equipment assets Heritage Machinery and equipment equipment Transport Other fixed structures Other fixed Buildings Buildings and other fixed structures Buildings and other fixed Households households to Other transfers Non-profit institutions Non-profit Social benefits assets capital for payments Other transfers to private private to Other transfers enterprises Subsidies on products and on products Subsidies (pe) production Private enterprises Private Other transfers to public to Other transfers corporations Subsidies on products and on products Subsidies (pc) production Public corporations Public corporations and private and private Public corporations enterprises

programme 3 Economic Classification

AnnuAl RepoRt | 2017 - 2018 159 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 - - - Actual Expenditure Expenditure

- - - 53 53 50 50 344 344 586 586 380 380 576 576 2016/17 740 750 740 750 778 062 778 062 final R’000 R’000 Appropriation Appropriation

100,0% 100,0% % as % of final Expenditure Expenditure appropriation

- 100,0% 2 371 2 371 - 100,0% 19 631 19 631 - 100,0% 5 394 5 394 - - - 100,0% - - 6 964 6 964 - 100,0% - 100,0% 7 122 7 122 - 100,0% 9 921 9 921 - 100,0% - 100,0% - - 100,0% 100,0% - - - 100,0% 188 581 188 581 - 100,0% 77 396 - 77 396 100,0% - 100,0% 474 773 474 773 - 100,0% 552 169 552 169 - - - 100,0% 598 673 598 673 - 100,0% 57 196 57 196 - 100,0% 119 822 119 822 io N variance variance

LAT - - - 34 58 12 u 493 834 460 8 760 3 912 8 965 8 474 R’000 R’000 Actual Expenditure Expenditure

- - - 34 58 12 493 834 460 final 2017/18 Appropriation Appropriation

4: TRANS po RT REG 4: - - - (7) 951 8 760 irement v irement GRAMME - (4 220) 19 092 19 092 - 638 3 912 - - - (133) - 2 521 10 322 10 322 - 1 773 8 965 - (1 566) 8 474 - (382) - (14) - - 348 (377) - - 27 621 232 422 232 422 - (594) - 83 035 83 035 - (24 979) 507 288 507 288 - (25 573) 590 323 590 323 - 2 048 822 745 822 745 - 18 749 655 540 655 540 - (7 244) 63 862 63 862 - (12 263) 121 478 121 478 o pR R’000 R’000 R’000 Shifting of funds

ER - - - p 72 19 626 416 486 837 7 809 3 274 7 801 7 192 LS 23 312 10 040 83 629 71 106 204 801 532 267 615 896 820 697 849 447 - 193 849 640 849 640 636 791 133 741 R’000 Adjusted Adjusted Appropriation Appropriation i DETA

RCEMENT ioN Minor assets u LAT Contractors Legal services Legal Scientific and technological services technological and Scientific Infrastructure and planning services Infrastructure services Laboratory Consultants: Business and advisory Consultants: services Computer services Computer Advertising Communication (G&S) Communication Catering: Departmental activities Departmental Catering: Administrative fees Administrative External Audit costs: Bursaries: Employees Bursaries: Goods and services Social contributions Salaries and wages Compensation of employees Compensation LAW EN fo LAW opERAToR LiCENSES AND pERMi TS LiCENSES opERAToR TRANSpoRT ADMiNiSTRATioN ADMiNiSTRATioN TRANSpoRT AND LiCENSiNG pRoGRAMME Suppo RT pRoGRAMME REG 4. 3. 2. 1.

payments Current

Detail per sub-programmes Economic classification Economic

160 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 ------Actual Expenditure ------28 58 28 58 2016/17 475 475 475 475 475 475 866 866 355 355 113 113 3 483 3 483 Final R’000 R’000 Appropriation 100,0% % as % of final appropriation ------100,0% 100,0% 100,0% ------100,0% 3 733 3 733 - 100,0% - - 100,0% 100,0% 1 906 1 906 - 100,0% 21 732 21 732 - 100,0% - 100,0% 35 018 35 018 - 100,0% 20 257 20 257 - 100,0% 11 034 11 034 - 100,0% 2 277 2 277 ------100,0% - - - 100,0% - - - 100,0% - - - 100,0% 5 526 5 526 - - R’000 io N Variance Variance Expenditure LAT ------9 98 29 49 u 601 601 601 433 426 104 4 322 1 388 1 604 4 827 R’000 Actual Expenditure ------9 98 29 49 601 601 601 433 426 104 2017/18 R’000 Appropriation 4: TRANS po RT REG 4: ------29 (6) (1) Virement Virement Final GRAMME - - - - - (211) (211) (211) - (695) 4 322 - - - - (4 612) - (937) 1 388 - - (71) (1 145) - (1 090) 17 270 17 270 - - 40 528 81 611 81 611 - (4 698) 17 821 17 821 - 4 618 16 179 16 179 - (1 479) 1 604 ------(12) - (37) - - (1 450) 4 827 - o pR R’000 R’000 Shifting of Funds ER ------1 p 21 86 812 812 812 497 110 5 017 4 710 2 325 1 578 3 083 6 277 LS 18 360 41 083 22 519 11 561 R’000 Adjusted Appropriation i DETA Provincial agencies and funds agencies Provincial Municipalities Provinces and municipalities Provinces Provinces Funds Revenue Provincial Transfers and subsidies Transfers Rent on land Rent Interest (Incl. interest on unitary on unitary (Incl. interest Interest (PPP)) payments Interest and rent on land and rent Interest Rental and hiring Rental Operating payments Operating Training and development Training and facilities Venues Travel and subsistence Travel Transport provided: Departmental Departmental provided: Transport activity Property payments Property Operating leases Operating Consumable: Stationery, printing printing Consumable: Stationery, and office supplies Consumable supplies Inventory: Other supplies Inventory: Medsas inventory interface Medsas inventory Inventory: Fuel, oil and gas Inventory: and supplies Materials Inventory: Medicine Inventory: Inventory: Food and food supplies and food Food Inventory: Inventory: Learner and teacher Learner and teacher Inventory: support material supplies Medical Inventory: Inventory: Farming supplies Farming Inventory: Inventory: Clothing material and Clothing material Inventory: accessories Housing

programme 3 Economic Classification

AnnuAl RepoRt | 2017 - 2018 161 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 ------4 Actual Expenditure ------4 2016/17 868 868 32 961 32 961 778 062 778 062 Final R’000 R’000 Appropriation 100,0% 100,0% 100,0% % as % of final appropriation ------100,0% 2 323 2 323 - 100,0% 30 638 30 638 - 100,0% 32 961 32 961 ------100,0% 100,0% 3 004 3 004 3 004 3 004 ------R’000 io N Variance Variance Expenditure LAT ------u 372 1 568 3 721 3 721 R’000 Actual Expenditure ------372 2017/18 R’000 Appropriation 4: TRANS po RT REG 4: ------Virement Virement Final GRAMME - 137 ------(2 376) 1 568 - 1 079 20 633 20 633 - (1 297) 22 201 22 201 - - - - (1 297) 22 201 22 201 - - - (484) (214) (270) 3 721 3 721 ------o pR R’000 R’000 Shifting of Funds ER ------p 235 270 3 944 4 205 3 935 LS 19 554 23 498 23 498 849 447 - 193 849 640 849 640 R’000 Adjusted Appropriation i DETA

Payment for financial assets for Payment Software and other intangible and other intangible Software assets Land and sub-soil assets Biological assets Biological Specialised military assets Specialised military Heritage assets Heritage Other machinery and equipment Transport equipment Transport Machinery and equipment Other fixed structures Other fixed Buildings Buildings and other fixed structures Buildings and other fixed payments for capital assets capital for payments Households Social benefits households to Other transfers Non-profit institutions Non-profit Other transfers to private private to Other transfers enterprises Subsidies on products and on products Subsidies (pe) production Private enterprises Private Other transfers to public to Other transfers corporations Subsidies on products and on products Subsidies (pc) production Public corporations Public corporations and private and private Public corporations enterprises Foreign governments and governments Foreign organisations international Higher education institutions Higher education Departmental agencies (non- agencies Departmental business entities) Social security funds

programme 3 Economic Classification

162 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

------Actual Expenditure Expenditure

------71 71 13 13 44 44 619 619 303 303 100 100 146 146 2016/17 4 492 4 4 492 32 487 32 487 32 497 32 497 final R’000 R’000 Appropriation Appropriation

103,2% 100,0% % as % of final Expenditure Expenditure appropriation

- - - - - 100,0% ------100,0% - - 100,0% 100,0% ------100,0% 100,0% - 100,0% 1 272 1 272 - 100,0% 11 534 11 534 - 100,0% 12 806 12 806 - - 100,0% 3 646 3 646 - 100,0% 6 638 6 638 variance variance GRAMME

------9 6 26 pRo 676 220 847 9 224 (1 050) 112,8% 11 559 11 559 6 922 7 769 4 248 8 313 (1 050) 114,5% 5 474 5 474 5 470 R’000 R’000 Actual ASED ASED Expenditure Expenditure B

------9 6 26 676 220 847 final 2017/18 Appropriation Appropriation MMuNiTy

------3 1 5: C irement v irement

- - - - 10 784 10 784 10 784 - - - - (12 990) 8 174 - 676 - (140) - - - - - (230) - 141 - 601 24 647 25 697 (1 050) 104,3% 19 681 19 681 - - (1 460) 6 922 - (1 459) 7 769 - (858) 32 416 33 466 (1 050) - (940) 17 300 16 250 1 050 93,9% 16 739 16 739 - (143) 4 248 - 1 271 7 263 - (1 146) 5 470 GRAMME R’000 R’000 R’000 Shifting of funds o

------pR 23 79 149 236 846 8 382 9 228 4 391 5 992 6 616 21 164 24 046 33 274 18 240 35 239 - (958) 34 281 34 281 ER p R’000 Adjusted Adjusted LS Appropriation Appropriation

i DETA ioN AND N AND EM poWERMENT ATio

Agency and support / outsourced and support / outsourced Agency services Entertainment Legal services Legal Contractors Scientific and technological services technological and Scientific Infrastructure and planning services Infrastructure services Laboratory Consultants: Business and advisory Consultants: services Catering: Departmental activities Departmental Catering: (G&S) Communication services Computer Bursaries: Employees Bursaries: Audit costs: External Audit costs: Minor assets Administrative fees Administrative Advertising Goods and services Social contributions Salaries and wages Compensation of employees Compensation iNN ov CoMMuNiTy DEvELopMENT CoMMuNiTy NATEpWp Co-oRDi MoNiToRiNG pRoGRAMME Suppo RT pRoGRAMME BASED CoMMuNiTy 3. 4. 2. 1.

payments Current

programme 5 Economic Economic classification Economic Classification

Sub programme

AnnuAl RepoRt | 2017 - 2018 163 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 ------Actual Expenditure ------58 58 41 41 2016/17 321 321 Final R’000 R’000 Appropriation 43,7% % as % of final appropriation ------100,0% - 100,0% - 100,0% 1 846 1 846 - 100,0% - - - - 100,0% 100,0% ------R’000 Variance Variance Expenditure GRAMME ------5 36 12 45 pRo 815 1 050 2 261 2 359 R’000 Actual ASED ASED Expenditure B ------5 36 12 45 2017/18 R’000 Appropriation MMuNiTy o ------1 865 ------12 5: C Virement Virement Final ------(67) - - 124 2 261 - 2 359 2 359 - - - (105) ------GRAMME R’000 R’000 Shifting of Funds o ------5 pR 103 150 1 865 2 137 ER p R’000 Adjusted LS Appropriation i DETA Municipal agencies and funds Municipal agencies Municipal bank accounts Municipalities Provincial agencies and funds agencies Provincial Provincial Revenue Funds Revenue Provincial Provinces Transfers and subsidies Transfers and municipalities Provinces Rent on land Rent Interest (Incl. interest on unitary on unitary (Incl. interest Interest (PPP)) payments Interest and rent on land and rent Interest Rental and hiring Rental Operating payments Operating and facilities Venues Training and development Training Travel and subsistence Travel Transport provided: Departmental Departmental provided: Transport activity Property payments Property Consumable: Stationery, printing printing Consumable: Stationery, and office supplies leases Operating Consumable supplies Inventory: Other supplies Inventory: Medsas inventory interface Medsas inventory Inventory: Medicine Inventory: Inventory: Medical supplies Medical Inventory: Inventory: Materials and supplies Materials Inventory: Inventory: Learner and teacher Learner and teacher Inventory: support material Inventory: Fuel, oil and gas Inventory: Inventory: Food and food supplies and food Food Inventory: Inventory: Farming supplies Farming Inventory:

programme 3 Economic Classification

164 AnnuAl RepoRt | 2017 - 2018 AppRopRiATioN STATEMENT AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018 ------Actual Expenditure ------10 10 2016/17 Final R’000 R’000 Appropriation % as % of final appropriation ------100,0% 32 497 32 497 ------R’000 Variance Variance Expenditure GRAMME ------pRo 815 1 050 43,7% 815 1 050 43,7% 815 1 050 43,7% R’000 Actual ASED ASED Expenditure B ------2017/18 R’000 Appropriation MMuNiTy o - - - - - 1 865 - - 1 865 - - - - - 1 865 ------(100) (100) 5: C Virement Virement Final ------(958) 34 281 34 281 ------(100) GRAMME R’000 R’000 Shifting of Funds o ------pR 100 100 100 1 865 1 865 1 865 ER 35 239 p R’000 Adjusted LS Appropriation i DETA Other transfers to households to Other transfers Social benefits Households Other transfers to private private to Other transfers enterprises institutions Non-profit Private enterprises Private and on products Subsidies (pe) production Software and other intangible assets Other transfers to public to Other transfers corporations Land and sub-soil assets Subsidies on products and on products Subsidies (pc) production Biological assets Other fixed structures Other fixed Public corporations and private and private Public corporations enterprises Public corporations Specialised military assets Buildings Foreign governments and governments Foreign organisations international Other machinery and equipment Heritage assets Buildings and other fixed structures Buildings and other fixed Higher education institutions Higher education Transport equipment Transport Machinery and equipment

Payment for financial assets for Payment programme 3 Economic Classification assets capital for payments

AnnuAl RepoRt | 2017 - 2018 165 NoTES To THE AppRopRiATioN STATEMENT NoTES To THE AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

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 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 to Payments for financial assets to the Annual Financial Statements. 4. Explanations of material variances from Amounts voted (after virement):

final Actual variance as a % per programme: variance Appropriation Expenditure of final Approp. 4,1 R’000 R’000 R’000 % Administration 328 127 328 127 0 100% Transport Infrastructure 7 351 857 7 101 857 250 000 97% Transport Operations 1 510 365 1 510 365 0 100% Transport Regulation 849 640 849 640 0 100% Community Base Programme 34 281 34 281 0 100%

10 074 270 9 824 270 250 000 97.5%

• R200 million relates to delays with the implementation of flood damage projects. The department was allocated R200 million during the 2017/18 Adjustments Estimate toward disaster relief in respect of the flood damage that occurred in the province on 10 October 2017, around the eThekwini Metro and Ugu District Municipality. The department managed to fast-track the process and the contracts were awarded in February 2018. All projects and work were well underway by year-end and the department has requested a roll-over in this regard. • R50 million relates to the construction of the cross-border crime fighting structure between South Africa and Mozambique. The department was allocated R2 million in 2016/17 for the planning aspect of the project and R48 million in 2017/18 for the construction of the structure. The condition for the allocation was that the department must sign a MOA with respective stakeholders (such as the Departments of Home Affairs and Defence) responsible for national security. This is in order for the province to be reimbursed for the expenses incurred. Thus, without a signed MOA for reimbursement by the relevant stakeholders, the department was unable to spend these funds. The department engaged the Office of the Premier who was responsible for facilitating the engagements with the relevant stakeholders in this regard, however, no MOA was signed by year-end and, as such, the department was not able to spend the funds though they completed the tender process and are waiting for the MOA to be signed, in order to award the contract. The department has requested for a roll-over in this regard

166 AnnuAl RepoRt | 2017 - 2018 NoTES To THE AppRopRiATioN STATEMENT NoTES To THE AppRopRiATioN STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

1. Detail of transfers and subsidies as per Appropriation Act (after virement): 4,2 Per economic classification:

Detail of these transactions can be viewed in the note on Transfers and subsidies and Annexure 1 (A-H) to variance the Annual Financial Statements. final Actual as a % variance Appropriation Expenditure of final 2. Detail of specifically and exclusively appropriated amounts voted (after virement): Approp. Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial R’000 R’000 R’000 % Statements. Current expenditure Compensation of employees 1 340 605 1 340 605 0 100% 3. Detail on payments for financial assets Goods and services 3 706 251 3 504 251 202 000 95% Detail of these transactions per programme can be viewed in the note to Payments for financial assets to Interest and rent on land 0 0 0 0% the Annual Financial Statements. Transfers and subsidies 4. Explanations of material variances from Amounts voted (after virement): Provinces and municipalities 5 896 5 896 0 100% Departmental agencies and accounts 4 493 4 493 0 100% Higher education institutions 0 0 0 0% Public corporations and private enterprises 1 113 227 1 113 227 0 100% final Actual variance as a % per programme: variance Foreign governments and international 0 0 0 0% Appropriation Expenditure of final Approp. organisations 4,1 Non-profit institutions 0 0 0 0% R’000 R’000 R’000 % Households 14 630 14 630 0 100% Administration 328 127 328 127 0 100% payments for capital assets Transport Infrastructure Buildings and other fixed structures 3 687 907 3 639 907 48 000 99% 7 351 857 7 101 857 250 000 97% Machinery and equipment 199 956 199 956 0 100% Transport Operations Heritage assets 0 0 0 0% 1 510 365 1 510 365 0 100% Specialised military assets 0 0 0 0% Transport Regulation Biological assets 0 0 0 0% 849 640 849 640 0 100% Land and subsoil assets 0 0 0 0% Community Base Programme 34 281 34 281 0 100% Software and other intangible assets 371 371 0 100% Payments for financial assets 934 934 0 100% 10 074 270 9 824 270 250 000 97.5% 10 074 270 9 824 270 250 000 97.5%

• R200 million relates to delays with the implementation of flood damage projects. The department was allocated R200 million Variance Final Actual as a % 4,3 Per conditional grant Variance during the 2017/18 Adjustments Estimate toward disaster relief in respect of the flood damage that occurred in the province Appropriation Expenditure of Final on 10 October 2017, around the eThekwini Metro and Ugu District Municipality. The department managed to fast-track the Approp. process and the contracts were awarded in February 2018. All projects and work were well underway by year-end and the R’000 R’000 R’000 % department has requested a roll-over in this regard. • R50 million relates to the construction of the cross-border crime fighting Provincial Roads Maintenance Grant 1 828 970 1 828 970 0 100% structure between South Africa and Mozambique. The department was allocated R2 million in 2016/17 for the planning aspect Public Transport Operations Grant 1 071 439 1 071 439 0 100% of the project and R48 million in 2017/18 for the construction of the structure. The condition for the allocation was that the EPWP Incentive Grant 33 645 33 645 0 100% department must sign a MOA with respective stakeholders (such as the Departments of Home Affairs and Defence) responsible for national security. This is in order for the province to be reimbursed for the expenses incurred. Thus, without a signed Explanation of variance MOA for reimbursement by the relevant stakeholders, the department was unable to spend these funds. The department engaged the Office of the Premier who was responsible for facilitating the engagements with the relevant stakeholders in this regard, however, no MOA was signed by year-end and, as such, the department was not able to spend the funds though they completed the tender process and are waiting for the MOA to be signed, in order to award the contract. The department has requested for a roll-over in this regard

AnnuAl RepoRt | 2017 - 2018 167 STATEMENT of fiNANCiAL pERfoRMANCE STATEMENT of fiNANCiAL poSiTioN Part E for the year ended 31 March 2018 Part E at 31 March 2018

2017/18 2016/17 Note R’000 R’000 REvENuE Annual appropriation 1 10 074 270 9 577 620 Statutory appropriation 2 - - Departmental revenue 3 1 833 338 1 784 229 NRF Receipts - - Aid assistance 4 - -

ToTAL REvENuE 11 907 608 11 361 849

ExpENDiTuRE Current expenditure Compensation of employees 5 1 344 934 1 262 832 Goods and services 6 3 661 546 3 528 608 Interest and rent on land 7 - - Aid assistance 4 1 127 10 320 Total current expenditure 5 007 607 4 801 760

Transfers and subsidies Transfers and subsidies 9 1 140 243 1 033 385 Aid assistance 4 - - Total transfers and subsidies 1 140 243 1 033 385

Expenditure for capital assets Tangible assets 10 3 656 706 3 710 430 Intangible assets 10 19 704 7 543 Total expenditure for capital assets 3 676 410 3 717 973

Unauthorised expenditure approved without funding 11 - - 4 545

Payments for financial assets 8 1 137 2 348

ToTAL ExpENDiTuRE 9 825 397 9 560 011

SuRpLuS/(DEfiCiT) foR THE yEAR 2 082 211 1 801 838

Reconciliation of Net Surplus/(Deficit) for the year Voted Funds 250 000 27 929 Annual appropriation 250 000 27 929 Conditional grants - - Departmental revenue and NRF Receipts 19 1 833 338 1 784 229 Aid assistance 4 (1 127) (10 320) SuRpLuS/(DEfiCiT) foR THE yEAR 2 082 211 1 801 838

168 AnnuAl RepoRt | 2017 - 2018 STATEMENT of fiNANCiAL pERfoRMANCE STATEMENT of fiNANCiAL poSiTioN Part E for the year ended 31 March 2018 Part E at 31 March 2018

2017/18 2016/17 2017/18 2016/17 Note R’000 R’000 Note R’000 R’000 REvENuE ASSETS Annual appropriation 1 10 074 270 9 577 620 Statutory appropriation 2 - - Departmental revenue 3 1 833 338 1 784 229 Current Assets 390 787 256 801 NRF Receipts - - Unauthorised expenditure 11 - - Aid assistance 4 - - Cash an cash equivalents 12 351 280 170 536 Other financial assets 13 - - ToTAL REvENuE 11 907 608 11 361 849 Prepayments and advances 14 815 816 ExpENDiTuRE Receivables 15 38 692 85 449 Current expenditure Loans 17 - - Compensation of employees 5 1 344 934 1 262 832 Aid assistance prepayments 4 - - Goods and services 6 3 661 546 3 528 608 Aid assistance receivable 4 - - Interest and rent on land 7 - - Aid assistance 4 1 127 10 320 Non-Current Assets 40 045 17 296 Total current expenditure 5 007 607 4 801 760 Investments 16 - - Receivables 15 40 045 17 296 Transfers and subsidies Loans 17 - - Transfers and subsidies 9 1 140 243 1 033 385 Other financial assets 13 - - Aid assistance 4 - - Total transfers and subsidies 1 140 243 1 033 385 TOTAL ASSETS 430 832 274 097 Expenditure for capital assets LIABILITIES Tangible assets 10 3 656 706 3 710 430 Intangible assets 10 19 704 7 543 Current Liabilities 427 448 271 675 Total expenditure for capital assets 3 676 410 3 717 973 Voted funds to be surrendered to the Revenue Fund 18 250 000 56 006 Unauthorised expenditure approved without Departmental revenue and NRF Receipts to be surrendered to the funding 11 - - 4 545 Revenue Fund 19 138 877 171 994 Bank overdraft 20 - - Payments for financial assets 8 1 137 2 348 Payables 21 21 067 25 044 Aid assistance repayable 4 - - Aid assistance unutilised 4 17 504 18 631 ToTAL ExpENDiTuRE 9 825 397 9 560 011

SuRpLuS/(DEfiCiT) foR THE yEAR 2 082 211 1 801 838 Non-Current Liabilities Payables 22 - - Reconciliation of Net Surplus/(Deficit) for the year Voted Funds 250 000 27 929 TOTAL LIABILITIES 427 448 271 675 Annual appropriation 250 000 27 929 Conditional grants - - Departmental revenue and NRF Receipts 19 1 833 338 1 784 229 NET ASSETS 3 384 2 422 Aid assistance 4 (1 127) (10 320) Represented by: SuRpLuS/(DEfiCiT) foR THE yEAR 2 082 211 1 801 838 Capitalisation reserve - - Recoverable revenue 3 384 2 422 Retained funds - - Revaluation reserves - - TOTAL 3 384 2 422

AnnuAl RepoRt | 2017 - 2018 169 STATEMENTS of CHANGES iN NET ASSETS CASH fLoW STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 Capitalisation Reserves Opening balance Transfers: Movement in Equity Movement in Operational Funds Other movements Closing balance

Recoverable revenue Opening balance 2 422 3 121 Transfers 962 (699) Irrecoverable amounts written off 8.3 (563) (1 747) Debts revised - - Debts recovered (included in departmental receipts) 561 273 Debts raised 964 775 Closing balance 3 384 2 422

Retained funds Opening balance Transferred from voted funds to be surrendered (Parliament/ Legislatures ONLY) Utilised during the year Other Closing balance

Revaluation Reserves Opening balance Revaluation adjustment (Housing departments) Transfers Other Closing balance

TOTAL 3 384 2 422

170 AnnuAl RepoRt | 2017 - 2018 STATEMENTS of CHANGES iN NET ASSETS CASH fLoW STATEMENT Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 11 902 544 11 334 616 Annual appropriated funds received 1.1 10 074 270 9 577 620 Statutory appropriated funds received 2 - - Departmental revenue received 3 1 828 250 1 756 812 Interest received 3.3 24 184 NRF Receipts - - Aid assistance received 4 - -

Net (increase)/ decrease in working capital 20 032 (43 774) Surrendered to Revenue Fund (1 922 461) (1 477 635) Surrendered to RDP Fund/Donor - - Current payments (5 007 607) (4 801 760) Interest paid 7 - - Payments for financial assets (1 137) (2 348) Transfers and subsidies paid (1 140 243) (1 033 385) Net cash flow available from operating activities 23 3 851 128 3 975 714

CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 10 (3 676 410) (3 722 518) Proceeds from sale of capital assets 3.4 5 034 27 205 (Increase)/ decrease in loans - - (Increase)/ decrease in investments - - (Increase)/ decrease in other financial assets - - Net cash flows from investing activities (3 671 376) (3 695 313)

CASH FLOWS FROM FINANCING ACTIVITIES Distribution/dividend received 30 28 Increase/ (decrease) in net assets 962 (699) Increase/ (decrease) in non-current payables - - Net cash flows from financing activities 992 (671)

Net increase/ (decrease) in cash and cash equivalents 180 744 279 730

Cash and cash equivalents at beginning of period 170 536 (109 194) Unrealised gains and losses within cash and cash equivalents - - Cash and cash equivalents at end of period 24 351 280 170 536

AnnuAl RepoRt | 2017 - 2018 171 ACCouNTiNG poLiCiES ACCouNTiNG poLiCiES Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation. Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Manage- ment Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparation [Financial Statement Presentation] The financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concern [Financial Statement Presentation] The financial statements have been prepared on a going concern basis.

3 Presentation currency [Financial Statement Presentation] Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

4 Rounding [Financial Statement Presentation] Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).

5 Foreign currency translation [Cash Flow Statement, Expenditure, Revenue] Cash flows arising from foreign currency transactions are translated into South African Rands using the spot exchange rates prevailing at the date of payment / receipt.

6 Comparative information 6.1 Prior period comparative information [Financial Statement Presentation] 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. 6.2 Current year comparison with budget [Appropriation Statement] A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.

172 AnnuAl RepoRt | 2017 - 2018 ACCouNTiNG poLiCiES ACCouNTiNG poLiCiES Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

7 Revenue 7.1 Appropriated funds [Revenue, General Departmental Assets and Liabilities] Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective. The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.

7.2 Departmental revenue [Revenue, General Departmental Assets and Liabilities] Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise. Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.

7.3 Accrued departmental revenue [General Departmental Assets and Liabilities] Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when: • it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and • the amount of revenue can be measured reliably. The accrued revenue is measured at the fair value of the consideration receivable. Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents. Write-offs are made according to the department’s debt write-off policy

8 Expenditure 8.1 Compensation of employees 8.1.1 Salaries and wages [Expenditure] Salaries and wages are recognised in the statement of financial performance on the date of payment.

8.1.2 Social contributions [Expenditure] Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment. Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.

AnnuAl RepoRt | 2017 - 2018 173 ACCouNTiNG poLiCiES ACCouNTiNG poLiCiES Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

8.2 Other expenditure [Expenditure] Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold.

8.3 Accruals and payables not recognised [General Departmental Assets and Liabilities] Accruals and payables not recognised are recorded in the notes to the financial statements at cost at the reporting date.

8.4 Leases 8.4.1 Operating leases [Leases] Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment. The operating lease commitments are recorded in the notes to the financial statements.

8.4.2 finance leases [Leases] Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment. The finance lease commitments are recorded in the notes to the financial statements and are not appor- tioned between the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of: • cost, being the fair value of the asset; or • the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest. 9 Aid Assistance 9.1 Aid assistance received [Revenue, General Departmental Assets and Liabilities] Aid assistance received in cash is recognised in the statement of financial performance when received. In- kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value. Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position. 9.2 Aid assistance paid [Expenditure, General Departmental Assets and Liabilities] Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.

174 AnnuAl RepoRt | 2017 - 2018 ACCouNTiNG poLiCiES ACCouNTiNG poLiCiES Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

10 Cash and cash equivalents [General Departmental Assets and Liabilities, Cash Flow Statement] Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position as a current liability. 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.

11 prepayments and advances [General Departmental Assets and Liabilities] Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash. Prepayments and advances are initially and subsequently measured at cost.

12 Loans and receivables [General Departmental Assets and Liabilities] Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. Write-offs are made according to the department’s write-off policy.

13 investments [General Departmental Assets and Liabilities] Investments are recognised in the statement of financial position at cost. 14 financial assets 14.1 financial assets (not covered elsewhere) [General Departmental Assets and Liabilities] A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial asset. At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or written-off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.

14.2 Impairment of financial assets [General Departmental Assets and Liabilities] Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements.

15 payables [General Departmental Assets and Liabilities] Payables recognised in the statement of financial position are recognised at cost.

AnnuAl RepoRt | 2017 - 2018 175 ACCouNTiNG poLiCiES ACCouNTiNG poLiCiES Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

16 Capital Assets 16.1 immovable capital assets [Capital Assets] Immovable assets reflected in the asset register of the department are recorded in the notes to the financial statements at cost or fair value where the cost cannot be determined reliably. Immovable assets acquired in a non-exchange transaction are recorded at fair value at the date of acquisition. Immovable assets are subsequently carried in the asset register at cost and are not currently subject to depreciation or impairment. Road segments as per the department’s GIS, are accounted for as immovable assets (road assets) and are recorded in accordance with the treatment prescribed for the majority (greater than 50%) of the land parcels relating to the road asset. Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use. Additional information on immovable assets not reflected in the assets register is provided in the notes to financial statements.

16.2 Movable capital assets [Capital Assets] Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1. Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Biological assets are subsequently carried at fair value. Subsequent expenditure that is of a capital nature forms part of the cost of the existing asset when ready for use.

16.3 intangible assets [Capital Assets] Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project. Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1. Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.

176 AnnuAl RepoRt | 2017 - 2018 ACCouNTiNG poLiCiES ACCouNTiNG poLiCiES Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

16.4 Project Costs: Work-in-progress [Capital Assets] Expenditure of a capital nature is initially recognised in the statement of financial performance at cost when paid. Amounts paid towards capital projects are separated from the amounts recognised and accumulated in

work-in-progress until the underlying asset is ready for use. Once ready for use, the total accumulated payments are recorded in an asset register. Subsequent payments to complete the project are added to the capital asset in the asset register. Where the department is not the custodian of the completed project asset, the asset is transferred to the custodian subsequent to completion.

17 Provisions and Contingents 17.1 provisions [Provisions and Contingents] Provisions are recorded in the notes to the financial statements when there is a present legal or construc- tive 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 or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.

17.2 Contingent liabilities [Provisions and Contingents] Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably.

17.3 Contingent assets [Provisions and Contingents] Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department.

17.4 Commitments [Provisions and Contingents] Commitments (other than for transfers and subsidies) are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that rais- es a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash.

AnnuAl RepoRt | 2017 - 2018 177 ACCouNTiNG poLiCiES ACCouNTiNG poLiCiES Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

18 Unauthorised expenditure [General Departmental Assets and Liabilities] Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either: • approved by Parliament or the Provincial Legislature with funding and the related funds are received; or • approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or • transferred to receivables for recovery. Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

19 Fruitless and wasteful expenditure [General Departmental Assets and Liabilities] Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery. Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

20 Irregular expenditure [General Departmental Assets and Liabilities] Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note. Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

21 Changes in accounting policies, accounting estimates and errors [Accounting Policies, Estimates and Errors] Changes in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable. Changes in accounting estimates are applied prospectively in accordance with MCS requirements. Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

178 AnnuAl RepoRt | 2017 - 2018 ACCouNTiNG poLiCiES ACCouNTiNG poLiCiES Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

22 Events after the reporting date [Events after the Reporting Date] Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements. 23 principal-Agent arrangements [Accounting by Principals and Agents] The department is party to a principal-agent arrangement for [include details here]. In terms of the arrangement the department is the [principal / agent] and is responsible for [include details here]. All related revenues, expenditures, assets and liabilities have been recognised or recorded in terms of the relevant policies listed herein. Additional disclosures have been provided in the notes to the financial statements where appropriate.

24 Departures from the MCS requirements [Preface to the Modified Cash Standard] 25 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. 26 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

27 Related party transactions [Related Party Disclosures] A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions within the Minister/MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length. Key management personnel are those persons having the authority and responsibility for planning, direct- ing and controlling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.

28 Inventories (Effective from date determined in a Treasury Instruction) [Inventories] At the date of acquisition, inventories are recognised at cost in the statement of financial performance. Where inventories are acquired as part of a non-exchange transaction, the inventories are measured at fair value as at the date of acquisition. Inventories are subsequently measured at the lower of cost and net realisable value or where intended for distribution (or consumed in the production of goods for distribution) at no or a nominal charge, the lower of cost and current replacement value.

AnnuAl RepoRt | 2017 - 2018 179 ACCouNTiNG poLiCiES NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

The cost of inventories is assigned by using the weighted average cost basis. 29 public-private partnerships [Financial Statement Presentation] Public Private Partnerships are accounted for based on the nature and or the substance of the partnership. The transaction is accounted for in accordance with the relevant accounting policies. A summary of the significant terms of the PPP agreement, the parties to the agreement, and the date of commencement thereof together with the description and nature of the concession fees received, the unitary fees paid, rights and obligations of the department are recorded in the notes to the financial statements.

30 Employee benefits [General Departmental Assets and Liabilities] [Provisions and Contingents] The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is disclosed in the Employee benefits note.

180 AnnuAl RepoRt | 2017 - 2018 ACCouNTiNG poLiCiES NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

1.1 2017/18 2016/17 funds not Annual Appropriation final Actual funds requested/ final Appropriation not Received received Appropriation Received programmes R’000 R’000 R’000 R’000 R’000 ADMINISTRATION 328 127 328 127 - 313 976 313 976 TRANSPORT INFRASTRUCTURE 7 351 857 7 351 857 - 7 058 234 7 058 234 TRANSPORT OPERATIONS 1 510 365 1 510 365 - 1 359 169 1 359 169 TRANSPORT REGULATION 849 640 849 640 - 811 743 811 743 COMMUNITY BASED PROGRAMME 34 281 34 281 - 34 498 34 498 Total 10 074 270 10 074 270 - 9 577 620 9 577 620

Provide an explanation for funds not requested/not received

2017/18 2016/17 Note R’000 R’000 1.2 Conditional grants**

Total grants received 47 2 934 054 2 992 478

Provincial grants included in Total Grants received - -

(** It should be noted that the Conditional grants are included in the amounts per the Final Appropriation in Note 1.1)

Statutory 2 Appropriation

Actual Statutory Appropriation received -

3 Departmental Revenue Tax revenue 1 658 031 1 599 531 Sales of goods and services other than capital assets 3.1 106 378 107 078 Fines, penalties and forfeits 3.2 38 164 47 257 Interest, dividends and rent on land 3.3 54 230 Sales of capital assets 3.4 5 034 27 205 Transactions in financial assets and liabilities 3.5 25 677 2 928 Transfer received 3.6 - - Total revenue collected 1 833 338 1 784 229 Less: Own revenue included in appropriation 19 - - Departmental revenue collected 1 833 338 1 784 229

AnnuAl RepoRt | 2017 - 2018 181 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 Sales of goods and services other than 3.1 capital assets 3 Sales of goods and services produced by the department 106 378 107 078 Sales by market establishment 6 224 6 459 Administrative fees 94 373 94 176 Other sales 5 781 6 443 Sales of scrap, waste and other used current goods - - Total 106 378 107 078

3.2 Fines, penalties and forfeits 3 Fines 38 164 47 257 Penalties - - Forfeits - - Total 38 164 47 257

interest, dividends and rent 3.3 on land 3 Interest 24 184 Dividends 30 28 Rent on land - 18 Total 54 230

3.4 Sales of capital assets 3 Tangible assets 5 034 27 205 Buildings and other fixed structures 41 - - Machinery and equipment 39 5 034 27 205 Heritage assets 39 - - Specialised military assets 39 - - Land and subsoil assets 41 - - Biological assets 39 - -

intangible assets - - Software 40 - - Mastheads and publishing titles 40 - - Patents, licences, copyright, brand names, trademarks 40 - - Recipes, formulae, prototypes, designs, models 40 - - Services and operating rights 40 - -

Total 5 034 27 205

182 AnnuAl RepoRt | 2017 - 2018 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 2017/18 2016/17 Note R’000 R’000 Note R’000 R’000 Sales of goods and services other than Transactions in financial assets and 3.1 capital assets 3 3.5 liabilities 3 Sales of goods and services produced by Loans and advances - - the department 106 378 107 078 Receivables - - Sales by market Forex gain - - establishment 6 224 6 459 Stale cheques written back 1 - Administrative fees 94 373 94 176 Other Receipts including Recoverable Other sales 5 781 6 443 Revenue 25 676 2 928 Sales of scrap, waste and other used Gains on GFECRA - - current goods - - Total 25 677 2 928 Total 106 378 107 078

4 Aid Assistance Opening Balance 18 631 28 951 Prior period error 3.2 Fines, penalties and forfeits 3 As restated 18 631 28 951 Fines 38 164 47 257 Transferred from statement of financial Penalties - - performance (1 127) (10 320) Forfeits - - Transferred to/from retained Total 38 164 47 257 funds - - Paid during the year - - Closing Balance 17 504 18 631 interest, dividends and rent Analysis of balance by 3.3 on land 3 4.1 source 4 Interest 24 184 Aid assistance from RDP - - Dividends 30 28 Aid assistance from other Rent on land - 18 sources 17 504 18 631 Total 54 230 CARA - - Closing Balance 17 504 18 631

3.4 Sales of capital assets 3 Tangible assets 5 034 27 205 4.2 Analysis of balance 4 Buildings and other fixed Aid assistance receivable - - structures 41 - - Aid assistance prepayments (Not expensed) - - Machinery and equipment 39 5 034 27 205 Aid assistance unutilised 17 504 18 631 Heritage assets 39 - - Aid assistance repayable - - Specialised military assets 39 - - Closing balance 17 504 18 631 Land and subsoil assets 41 - - Biological assets 39 - - Aid assistance not requested/not received - - 4.2.1 Aid assistance prepayments (expensed) - - intangible assets - - Software 40 - - Mastheads and publishing titles 40 - - Aid assistance expenditure per economic Patents, licences, copyright, brand names, 4.3 classification trademarks 40 - - Current 1 127 10 320 Recipes, formulae, prototypes, designs, Capital - - models 40 - - Transfers and subsidies - - Services and operating rights 40 - - Total aid assistance expenditure 1 127 10 320

Total 5 034 27 205

AnnuAl RepoRt | 2017 - 2018 183 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 R’000 R’000 5 Compensation of Employees 5.1 Salaries and wages Basic salary 830 280 769 518 Performance award 18 848 14 653 Service Based 2 544 2 980 Compensative/circumstantial 132 693 127 917 Periodic payments 28 703 29 312 Other non-pensionable allowances 149 762 149 831 Total 1 162 830 1 094 211

The department adjusted Zibambele compensasion to Goods and Services as a result of a change in the SCOA item classification

5.2 Social Contributions Employer contributions Pension 99 681 93 017 Medical 81 806 74 965 UIF 7 3 Bargaining council 320 289 Official unions and associations - - Insurance 290 347 Total 182 104 168 621

Total compensation of employees 1 344 934 1 262 832

Average number of employees 3 880 4 014

184 AnnuAl RepoRt | 2017 - 2018 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 6 Goods and services Administrative fees 22 738 7 315 Advertising 7 034 7 856 Minor assets 6.1 3 001 7 420 Bursaries (employees) 618 657 Catering 5 857 4 582 Communication 33 180 38 673 Computer services 6.2 107 270 60 012 Consultants: Business and advisory services 304 142 82 631 Infrastructure and planning services - 227 477 Laboratory services 271 588 Scientific and technological services - - Legal services 14 798 27 964 Contractors 2 257 443 2 343 853 Agency and support / outsourced services 8 438 9 794 Entertainment - - Audit cost – external 6.3 8 022 5 899 Fleet services 159 336 71 848 Inventory 6.4 130 149 110 283 Consumables 6.5 29 478 23 424 Housing - - Operating leases 22 162 26 389 Property payments 6.6 175 757 127 422 Rental and hiring 1 225 4 328 Transport provided as part of the departmental activities 285 554 244 492 Travel and subsistence 6.7 58 939 73 234 Venues and facilities 10 657 9 460 Training and development 11 400 7 987 Other operating expenditure 6.8 4 077 5 020 Total 3 661 546 3 528 608

6.1 Minor assets 6 Tangible assets 3 001 7 420 Buildings and other fixed structures - - Biological assets - - Heritage assets - - Machinery and equipment 3 001 7 420 Transport assets - - Specialised military assets - -

intangible assets - - Software - - Mastheads and publishing titles - - Patents, licences, copyright, brand names, trademarks - - Recipes, formulae, prototypes, designs, models - - Services and operating rights - - Total 3 001 7 420

AnnuAl RepoRt | 2017 - 2018 185 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoNoTESTES To TTHEo THE ANN ANNuALu ALfiNANC fiNANCiALi ALSTATEMENTS STATEMENTS Part E for the year ended 31 March 2018 Part Part E E for forthe the year year ended ended 31 March31 March 2018 2018

2017/18 2016/17 Note R’000 R’000 6.2 Computer services 6 SITA computer services 38 356 51 001 External computer service providers 68 914 9 011 Total 107 270 60 012

6.3 Audit cost – external 6 Regularity audits 7 251 5 031 Performance audits - - Investigations 257 404 Environmental audits - - Computer audits 514 464 Total 8 022 5 899

6.4 inventory 6 Clothing material and accessories 7 920 7 861 Farming supplies - - Food and food supplies 1 025 929 Fuel, oil and gas 56 820 37 511 Learning and teaching support material - 188 Materials and supplies 64 384 62 883 Medical supplies - - Medicine - 911 Medsas inventory interface - - Other supplies 6.4.1 - - Total 130 149 110 283

6.4.1 other Supplies Ammunition and security supplies - - Assets for distribution - - Machinery and equipment - - School furniture - - Sports and recreation - - Library material - - Other assets for distribution - - Other - - Total - -

6.5 Consumables 6 Consumable supplies 7 897 8 102 Uniform and clothing 2 519 1 406 Household supplies 4 036 2 427 Building material and supplies - 1 045 Communication accessories 17 1 679 IT consumables 958 1 390 Other consumables 367 155 Stationery, printing and office supplies 21 581 15 322 Total 29 478 23 424

186 AnnuAl RepoRt | 2017 - 2018 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTENoTES ToS ToTHE THE ANN ANNuALu ALfiNANC fiNANCiALi ALSTATEMENTS STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part Part E E for forthe the year year ended ended 31 March31 March 2018 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 6.6 property payments 6 Municipal services 39 661 37 823 Property management fees - - Property maintenance and repairs 82 848 27 984 Other 53 248 61 615 Total 175 757 127 422

6.7 Travel and subsistence 6 Local 58 831 73 222 Foreign 108 12 Total 58 939 73 234

6.8 Other operating expenditure 6 Professional bodies, membership and subscription fees - - Resettlement costs 475 404 Other 3 602 4 616 Total 4 077 5 020

7 interest and Rent on Land Interest paid - - Rent on land - - Total - -

8 Payments for financial assets Material losses through criminal conduct - - Theft 8.4 - - Other material losses 8.1 - - Purchase of equity - - Extension of loans for policy purposes - - Other material losses written off 8.2 371 601 Debts written off 8.3 766 1 747 Forex losses 8.5 - - Debt take overs - - Losses on GFECRA - - Total 1 137 2 348

AnnuAl RepoRt | 2017 - 2018 187 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 8.1 other material losses 8 Nature of other material losses (Group major categories, but list material items)

Disciplinary Steps taken/ Criminal incident proceedings

other material losses 8.2 written off 8 Nature of losses (Group major categories, but list material items) Claims by the state - Vehicle Removals 371 601 Total 371 601

8.3 Debts written off 8 Nature of debts written off (Group major categories, but list material items: (debt written off relating to irregular expenditure, debt written off relating to recoverable revenue and other debts written off must be listed.) Irregular expenditure written off Total - - Recoverable revenue written off Total - - Other debt written off Employee Debt 63 1 347 Tax Debt - 15 Zibambele 703 385 - - - - Total 766 1 747

Total debt written off 766 1 747

8.4 Details of theft 8 Nature of theft (Group major categories, but list material items) - - - - Total - -

8.5 Forex losses 8 Nature of losses (Group major categories, but list material items)

- - - - Total - -

188 AnnuAl RepoRt | 2017 - 2018 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 9 Transfers and Subsidies Provinces and municipalities 48.49 5 898 5 094 Departmental agencies and accounts ANNEXURE 1B 4 493 3 977 Higher education institutions ANNEXURE 1C - - Foreign governments and international organisations ANNEXURE 1E - - Public corporations and private enterprises ANNEXURE 1D 1 112 412 1 011 085 Non-profit institutions ANNEXURE 1F - - Households ANNEXURE 1G 17 440 13 229 Total 1 140 243 1 033 385

10 Expenditure for capital assets Tangible assets 3 656 706 3 710 430 Buildings and other fixed structures 41 3 457 397 3 530 779 Heritage assets 39 - - Machinery and equipment 39 199 309 179 651 Specialised military assets 39 - - Land and subsoil assets 41 - - Biological assets 39 - -

intangible assets 40 19 704 7 543 Software - - Mastheads and publishing titles - - Patents, licences, copyright, brand names, trademarks 19 704 7 543 Recipes, formulae, prototypes, designs, models - - Services and operating rights - -

Total 3 676 410 3 717 973

The following amounts have been included as project costs in Expenditure for capital assets: Compensation of employees - Goods and services 6 482 3 530 749 Total 6 482 3 530 749

AnnuAl RepoRt | 2017 - 2018 189 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

Analysis of funds utilised to acquire capital 10.1 assets - 2017/18 Aid voted funds assistance ToTAL R’000 R’000 R’000 Tangible assets 3 656 706 - 3 656 706 Buildings and other fixed structures 3 457 397 - 3 457 397 Heritage assets - - - Machinery and equipment 199 309 - 199 309 Specialised military assets - - - Land and subsoil assets - - - Biological assets - - -

intangible assets 19 704 - 19 704 Software - - - Mastheads and publishing titles - - - Patents, licences, copyright, brand names, trademarks 19 704 - 19 704 Recipes, formulae, prototypes, designs, models - - - Services and operating rights - - - -

Total 3 676 410 - 3 676 410

Analysis of funds utilised to acquire capital 10.2 assets - 2016/17 Aid voted funds assistance ToTAL R’000 R’000 R’000 Tangible assets 3 710 430 - 3 710 430 Buildings and other fixed structures 3 530 779 - 3 530 779 Heritage assets - - - Machinery and equipment 179 651 - 179 651 Specialised military assets - - - Land and subsoil assets - - - Biological assets - - - intangible assets 7 543 - 7 543 Software - - - Mastheads and publishing titles - - - Patents, licences, copyright, brand names, trademarks 7 543 - 7 543 Recipes, formulae, prototypes, designs, models - - - Services and operating rights - - - - -

Total 3 717 973 - 3 717 973

190 AnnuAl RepoRt | 2017 - 2018 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

Note 2017/18 2016/17 Finance lease expenditure included in Expenditure for 10.3 capital assets R’000 R’000 Tangible assets Buildings and other fixed structures - Heritage assets - Machinery and equipment - Specialised military assets - Land and subsoil assets - Biological assets -

Total - -

11 Unauthorised Expenditure Reconciliation of unauthorised 11.1 expenditure Opening balance - 5 609 Prior period error 11.5 As restated - 5 609 Unauthorised expenditure - discovered in the current year (as restated) - - Less: Amounts approved by Parliament/Legislature with funding - (1 064) Less: Amounts approved by Parliament/Legislature without funding and written off in the Statement of Financial Performance - (4 545) Current - - Capital - (4 545) Transfers and subsidies - - Less: Amounts transferred to receivables for recovery 15 - -

Closing balance - -

Analysis of closing balance Unauthorised expenditure awaiting authorisation - - Unauthorised expenditure approved without funding and not derecognised - - Total - -

Analysis of unauthorised expenditure awaiting authorisation per 11.2 economic classification Current - - Capital - - Transfers and subsidies - - Total - - Analysis of unauthorised expenditure awaiting 11.3 authorisation per type Unauthorised expenditure relating to overspending of the vote or a main division within the vote - - Unauthorised expenditure incurred not in accordance with the purpose of the vote or main division - - Total - -

AnnuAl RepoRt | 2017 - 2018 191 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

Details of unauthorised expenditure - 11.4 current year 2017/18 2016/17 Disciplinary steps taken/criminal incident proceedings R’000 R’000 11.5 prior period error

Nature of prior period error Relating to 20WW/XX (affecting the opening balance) - - Total - -

Unauthorised expenditure split into current and non- 11.6 current asset

Current Non-current Non- Total Details Total Current current R’000 R’000 R’000 R’000 R’000 R’000 - - - Total - - - - -

12 Cash and Cash Equivalents Consolidated Paymaster General Account 349 702 166 687 Cash receipts 1 586 3 821 Disbursements (36) - Cash on hand 28 28 Investments (Domestic) - - Investments (Foreign) - - Total 351 280 170 536

13 other financial Assets Current Local Total - -

foreign - - - - Total - -

Total Current other financial assets - -

192 AnnuAl RepoRt | 2017 - 2018 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 Non-Current Local - - - - - Total - -

Total Non-Current other financial assets - -

14 prepayments and Advances Staff advances - - Travel and subsistence 815 816 Prepayments (Not expensed) 14.2 - - Advances paid (Not expensed) 14.1 - - SOCPEN advances - - Total 815 816

Current Non-current Total Current Non- Total R’000 R’000 R’000 R’000 R’000 R’000

15 Receivables Claims recoverable 15.1 34 027 33 880 67 907 83 662 12 5 5 2 9 6 2 1 4 Trade receivables 15.2 - - - - - Recoverable expenditure 15.3 66 - 66 - - Staff debt 15.4 809 4 197 5 006 872 2 776 3 648 Fruitless and wasteful 15.5 expenditure - - - - - Other debtors 15.6 3 790 1 968 5 758 915 1 968 2 883 Total 38 692 40 045 78 737 85 449 17 296 102 745

15.1 Claims recoverable 15 National departments 11 746 11 907 Provincial departments 44 856 78 488 Foreign governments - - Public entities 11 305 5 819 Private enterprises - - Higher education institutions - - Households and non-profit institutions - - Local governments - - Total 67 907 96 214

AnnuAl RepoRt | 2017 - 2018 193 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 15.2 Trade receivables 15 (Group major categories, but list material items) Total - -

Recoverable expenditure (disallowance 15.3 accounts) 15 (Group major categories, but list material items) Salary Related Suspense Accounts 66 - - - Total 66 -

15.4 Staff debt 15 (Group major categories, but list material items) Breach of Contract 17 21 In-Service Debts 2 131 1 376 Out-of-Sesrvice Debt 1 725 1 268 Tax Debt 301 270 Private Entities 832 713 - - Total 5 006 3 648

15.5 other debtors 15 (Group major categories, but list material items) Dishonoured Cheque 172 39 Disallowance - Fraudulent payment 1 968 1 968 Salary ACB Recalls - - Salary Reversal - 518 Other 3 618 358 - - - - Total 5 758 2 883

fruitless and wasteful 15.6 expenditure 15 Opening balance - - Less amounts recovered - - Less amounts written off - - Transfers from note 32 Fruitless and Wasteful expenditure - - Interest - - Total - -

194 AnnuAl RepoRt | 2017 - 2018 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 2017/18 2016/17 Note R’000 R’000 Note R’000 R’000 15.2 Trade receivables 15 (Group major categories, but list 15.7 impairment of receivables material items) Estimate of impairment of receivables 1 968 - Total - - Total 1 968 -

20 This relates to a fraudulent payment that was made in 2005 where the possibility of recovery is very minimum. Recoverable expenditure (disallowance 15.3 accounts) 15

(Group major categories, but list material items) Salary Related Suspense Accounts 66 - 16 investments - - Non-Current Total 66 - Shares and other equity (List investments at cost) Sanlam Limited - - 15.4 Staff debt 15 - (Group major categories, but list material -- - items) - - Breach of Contract 17 21 Total - - In-Service Debts 2 131 1 376 Out-of-Sesrvice Debt 1 725 1 268 Tax Debt 301 270 Private Entities 832 713 Securities other than shares Annex 2A - - - (List investments at cost) - - Total 5 006 3 648 Total - - - Total non-current - -

15.5 other debtors 15 (Group major categories, but list material Analysis of non current investments - items) Opening balance - - Dishonoured Cheque 172 39 Additions in cash - - Disallowance - Fraudulent payment 1 968 1 968 Disposals for cash - - Salary ACB Recalls - - Non-cash movements - - Salary Reversal - 518 Closing balance - - Other 3 618 358 - - - - Total 5 758 2 883

voted funds to be Surrendered to the Revenue 18 fund Opening balance 56 006 (247 614) fruitless and wasteful Prior period error 18.2 - - 15.6 expenditure 15 As restated 56 006 (247 614) Opening balance - - Transfer from statement of financial performance (as Less amounts recovered - - restated) 250 000 27 929 Less amounts written off - - Add: Unauthorised expenditure for Transfers from note 32 Fruitless and Wasteful expenditure - - current year 11 - - Interest - - Voted funds not requested/not received 1.1 - - Total - - Transferred to retained revenue to defray excess expenditure (Parliament/Legislatures ONLY) 18.1 - - Paid during the year (56 006) 275 691 Closing balance 250 000 56 006

AnnuAl RepoRt | 2017 - 2018 195 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 18.1 Voted funds/(Excess expenditure) transferred to the retained funds (Parliament/Legislatures ONLY) 18 Opening balance - - Transfer from the statement of financial performance - - Transfer from Departmental Revenue to defray excess expenditure 19 - Closing balance - -

18.2 prior period error

Nature of prior period error 18 - - Relating to 20WW/XX (affecting the opening balance) - - Relating to 2016/17 - -

Total - -

Departmental revenue and NRf Receipts to be surrendered to the 19 Revenue fund Opening balance 171 994 141 091 Prior period error As restated 19. 1 171 994 141 091 Transfer from Statement of Financial Performance (as restated) 1 833 338 1 784 229 Own revenue included in appropriation - - Transfer from aid assistance 4 - - Transfer to voted funds to defray expenditure (Parliament/ Legislatures ONLY) 18.1 - - Paid during the year (1 866 455) (1 753 326) Closing balance 138 877 171 994

19.1 prior period error

Nature of prior period error 19 Relating to 20WW/XX (affecting the opening balance) - -

Relating to 2016/17 19 - -

Total - -

20 Bank Overdraft Consolidated Paymaster General Account - - Fund requisition account - - Overdraft with commercial banks (Local) - - Overdraft with commercial banks (Foreign) - - Total - -

196 AnnuAl RepoRt | 2017 - 2018 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 21 payables - current Amounts owing to other entities - - Advances received 21,1 9 180 5 857 Clearing accounts 21,2 - 8 193 Other payables 21,3 11 887 10 994 Total 21 067 25 044

21.1 Advances received 21

National departments Annex 8B - - Provincial departments Annex 8B - - Public entities Annex 8B 9 180 5 857 Other institutions Annex 8B - - Total 9 180 5 857

21.2 Clearing accounts 21 (Identify major categories, but list material amounts) Online Travel Control Account - 8 193 ------Total - 8 193

21.3 other payables 21 (Identify major categories, but list material amounts) Sal: Deduction Disall Acc - - Sal: ACB Recalls 1 655 4 Sal: Medical Aid 9 9 Sal: Income Tax 611 860 Traffic fines received from the court incorrectly paid to the department 9 224 9 761 Other 388 360 - - Total 11 887 10 994

AnnuAl RepoRt | 2017 - 2018 197 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 one to two Two to three More than years years three years Total Total Note R’000 R’000 R’000 R’000 R’000 22 payables – non-current Amounts owing to other entities - - - - - Advances received 22.1 - - - - - Other payables 22.2 - - - - - Total - - - - -

Note 22.1 Advances received 22

National departments Annex 8B - - Provincial departments Annex 8B - - Public entities Annex 8B - - Other institutions Annex 8B - - Total - -

22.2 other payables 22 (Identify major categories, but list material amounts) Total - -

23 Net cash flow available from operating activities Net surplus/(deficit) as per Statement of Financial Performance 2 082 211 1 801 838 Add back non cash/cash movements not deemed operating activities 1 768 917 2 173 876 (Increase)/decrease in receivables 24 008 (59 589) (Increase)/decrease in prepayments and advances 1 - (Increase)/decrease in other current assets - 5 609 Increase/(decrease) in payables – current (3 977) 10 206 Proceeds from sale of capital assets (5 034) (27 205) Proceeds from sale of investments (30) (28) (Increase)/decrease in other financial assets - - Expenditure on capital assets 3 676 410 3 717 973 Surrenders to Revenue Fund (1 922 461) (1 477 635) Surrenders to RDP Fund/Donor - Voted funds not requested/not received - - Own revenue included in appropriation - - Other non-cash items - 4 545 Net cash flow generated by operating activities 3 851 128 3 975 714

198 AnnuAl RepoRt | 2017 - 2018 NoTES To THE ANNuAL fiNANCiAL STATEMENTS NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 R’000 R’000 Reconciliation of cash and cash equivalents for cash 24 flow purposes Consolidated Paymaster General account 349 702 166 687 Fund requisition account - - Cash receipts 1 586 3 821 Disbursements (36) - Cash on hand 28 28 Cash with commercial banks (Local) - - Cash with commercial banks (Foreign) - - Total 351 280 170 536

AnnuAl RepoRt | 2017 - 2018 199 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Note R’000 R’000 25 Contingent liabilities and contingent assets 25.1 Contingent liabilities Liable to Nature Motor vehicle guarantees Employees Annex 3A - - Housing loan guarantees Employees Annex 3A 39 40 Other guarantees Annex 3A - - Claims against the Annex 3B department 144 877 137 766 Intergovernmental payables (unconfirmed Annex 5 balances) - 137 Environmental rehabilitation Annex 3B liability - - Other Annex 3B - - Total 144 916 137 943 Contingent assets Nature of contingent asset Civil Claim by the State - 7 124 Total - 7 124

26 Commitments Current expenditure Approved and contracted 3 325 488 1 905 944 Approved but not yet contracted 3 062 286 35 793

Capital Expenditure 6 387 774 1 941 737 Approved and contracted 5 103 369 7 867 712 Approved but not yet contracted 279 750 433 697 5 383 119 8 301 409 Total Commitments 11 770 893 10 243 146

Indicate whether a commitment is for longer than a year The department has commitments that are longer than a year.

27 Accruals and payables not recognised 27.1 Accruals Listed by economic classification 30 days 30+ days Total Total Goods and services 455 456 186 455 642 138 894 Interest and rent on land - - - Transfers and subsidies 75 288 75 288 - Capital assets 281 066 281 066 213 157 Other - - Total 811 810 186 811 996 352 051

Listed by programme level Administration 29 660 13 783 Transport Infrastructure 623 263 306 113 Transport Operations 116 138 17 861 Transport Regulations 40 348 12 468 Community Based Programme 2 587 1 826 Total 811 996 352 051

27.2 payables not recognised

200 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 R’000 R’000 Listed by economic classification 30 days 30+ days Total Total Goods and services 83 832 83 832 58 676 Interest and rent on land - - - Transfers and subsidies 22 459 22 459 75 911 Capital assets 136 047 136 047 274 022 Other - - Total 242 338 - 242 338 408 609

Listed by programme level Administration 11 078 30 826 Transport Infrastructure 191 259 273 441 Transport Operations 37 438 81 442 Transport Regulations 2 563 22 635 Community Based Programme - 265

Total 242 338 408 609

Included in the above totals are the following: Confirmed balances with departments Annex 5 6 349 - Confirmed balances with other government entities Annex 5 - - Total 6 349 -

28 Employee benefits Leave entitlement 64 975 61 729 Service bonus (Thirteenth cheque) 32 451 30 231 Performance awards - - Capped leave commitments 74 888 75 820 Other - 177 Total 172 314 167 957

At this stage the department is not able to reliably measure the long term portion of the long service awards.

29 Lease commitments 29.1 Operating leases Specialised Buildings and Machinery military other fixed and 2017/18 assets Land structures equipment Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - 67 2 594 3 950 6 611 Later than 1 year and not later than 5 years - 135 - 418 553 Later than five years - - - - - Total lease commitments - 202 2 594 4 368 7 164

Buildings Specialised and other Machinery military fixed and 2016/17 assets Land structures equipment Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - 59 2 468 15 284 17 811 Later than 1 year and not later than 5 years - 8 - 1 009 1 017 Later than five years - - - - - Total lease commitments - 67 2 468 16 293 18 828

AnnuAl RepoRt | 2017 - 2018 201 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

Note 2017/18 2016/17 R’000 R’000 Rental earned on sub-leased assets 3 - - Total - -

29.2 Finance leases ** Specialised Buildings and Machinery military other fixed and 2017/18 assets Land structures equipment Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 4 619 4 619 Later than 1 year and not later than 5 years - - - 1 056 1 056 Later than five years - - - - - Total lease commitments - - - 5 675 5 675

Specialised Buildings and Machinery military other fixed and 2016/17 assets Land structures equipment Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 1 626 1 626 Later than 1 year and not later than 5 years - - - 16 16 Later than five years - - - - - Total lease commitments - - - 1 642 1 642

** This note excludes leases relating to public private partnerships as they are separately disclosed to note no. 35.

Rental earned on sub-leased assets 3 - - Total - -

Operating lease future 29.3 revenue Specialised Buildings and Machinery military other fixed and 2017/18 assets Land structures equipment Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - - - Later than 1 year and not later than 5 years - - - - - Later than five years - - - - - Total operating lease revenue receivable - - - - -

Specialised Buildings and Machinery military other fixed and 2016/17 assets Land structures equipment Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - - - Later than 1 year and not later than 5 years - - - - - Later than five years - - - - - Total operating lease revenue receivable - - - - -

202 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 R’000 R’000 30 Accrued departmental revenue Tax revenue - - Sales of goods and services other than capital assets - - Fines, penalties and forfeits 42 710 48 130 Interest, dividends and rent on land - - Sale of capital assets - - Transactions in financial assets and liabilities - - Transfers received - - Other - - Total 42 710 48 130

This is calculated on a percentage of fines collected against fines recognised from 1 April 2016 to 31 March 2018 = 6.09%

30.1 Analysis of accrued departmental revenue Opening balance 48 130 47 400 Less: Amounts received - Add: Amounts recognised 701 312 701 607 Less: Amounts written-off/reversed as irrecoverable 706 732 700 877 Closing balance 42 710 48 130

30.2 Accrued department revenue written off Nature of losses (Group major categories, but list material items) - - Traffic Fines 706 732 700 877 - - Total 706 732 700 877

Fine are written off by the courts after one and a half years due to backlogs in the courts.

impairment of accrued departmental 30.3 revenue Estimate of impairment of accrued departmental revenue - - Total - -

31 Irregular expenditure 31.1 Reconciliation of irregular expenditure Opening balance 5 309 766 527 136 Prior period error - 661 757 As restated 5 309 766 1 188 893 Add: Irregular expenditure - relating to prior year 220 565 2 625 080 Add: Irregular expenditure - relating to current year 4 431 390 1 495 793 Less: Prior year amounts condoned - - Less: Current year amounts condoned - - Less: Amounts not condoned and recoverable - - Less: Amounts not condoned and not recoverable - - Irregular expenditure awaiting condonation 9 961 721 5 309 766

AnnuAl RepoRt | 2017 - 2018 203 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 R’000 R’000 Analysis of awaiting condonation per age classification Current year 4 431 390 1 495 793 Prior years 5 530 331 3 813 973 Total 9 961 721 5 309 766

Details of irregular expenditure – added current year (relating to current 31.2 and prior years) Disciplinary steps taken/criminal incident proceedings Current Year Contract Management Investigations in progress 4 369 155 SCM processes not followed Investigations in progress 56 308 Contravention of cost cutting measures Investigations in progress 5 172 Overtime exceeding 30% Investigations in progress 755 Prior Year Contract Management Investigations in progress 220 565 Total 4 651 955

31.3 Details of irregular expenditure condoned Condoned by (condoning incident authority) Total -

Details of irregular expenditure 31.4 recoverable (not condoned) Condoned by (condoning incident authority)

Total -

Details of irregular expenditure not recoverable (not 31.5 condoned) Not condoned by incident (condoning authority)

Total -

Details of irregular expenditure under investigation (not included in the 31.6 main note) incident Contract Management -

Total -

31.7 prior period error 2016/17 R’000 Nature of prior period error Relating to 2014 to 2017 661 757 Contract Management 661 757 Relating to 2016/17 168 873 Contract Management 168 873

Total 830 630

204 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

Note 2017/18 2016/17 Details of the non-compliance where an institution was not represented 31.8 in a bid committee for contracts arranged by other institutions R’000 R’000 incident SCM Process Evaluation 1 368 - Total 1 368 -

32 Fruitless and wasteful expenditure Reconciliation of fruitless and wasteful 32.1 expenditure Opening balance - 3 Prior period error - As restated - 3 Fruitless and wasteful expenditure – relating to prior year - - Fruitless and wasteful expenditure – relating to current year 19 - Less: Amounts resolved (3) Less: Amounts transferred to receivables for recovery 15,6 - - Closing balance 19 - Analysis of awaiting resolution per 32.2 economic classification Current - - Capital - - Transfers and subsidies - - Total - -

Analysis of Current year’s (relating to current & prior years) fruitless and 32.3 wasteful expenditure Disciplinary steps taken/criminal incident proceedings No show - Travel Bookings 19 Total 19

No. of 34 Key management personnel Individuals Political office bearers (provide detail below) 1 1 978 1 898 Officials: Level 15 to 16 4 6 907 6 435

Level 14 (incl CFO if at a lower level) 8 10 693 10 291

Family members of key management personnel 5 1 515 1 424 Total 21 093 20 048

No. of Individuals Key management personnel (parliament/ Legislatures) Speaker to Parliament/the Legislature - - Deputy Speaker to Parliament/the Legislature - - Secretary to Parliament/ the Legislature - - Deputy Secretary - - Chief Financial Officer - - Legal Advisor - - Other - - Total - - Total - -

AnnuAl RepoRt | 2017 - 2018 205 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 R’000 R’000 37 provisions Claim Against the State 28 77 Retention on Infrastructure Projects 24 690 136 983 ------Total 24 718 137 060

Reconciliation of movement in provisions 37.1 - 2017/18 Claims Against the Total State Retention on provision 3 provision 4 provisions R’000 R’000 R’000 R’000 R’000 Opening balance 77 136 983 - - 137 060 Increase in provision 28 - - - 28 Settlement of provision (77) (112 293) (112 370) Unused amount reversed - - - - - Reimbursement expected from third party - - - - - Change in provision due to change in estimation of inputs - - - Closing balance 28 24 690 - - 24 718

Reconciliation of movement in provisions - 2016/17 Claims Against the Total State Retention on provision 3 provision 4 provisions R’000 R’000 R’000 R’000 R’000 Opening balance 36 - - - 36 Increase in provision 77 136 983 - - 137 060 Settlement of provision (36) - - - (36) Unused amount reversed - - - - - Reimbursement expected from third party - - - - - Change in provision due to change in estimation of inputs - - - - - Closing balance 77 136 983 - - 137 060 Non-adjusting events after reporting 38 date Include an estimate of the financial effect of the subsequent non- adjusting events or a statement that such an estimate cannot be made.

Total -

206 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

39 Movable Tangible Capital Assets MovEMENT iN MovABLE TANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 value opening adjustments Closing balance Additions Disposals balance R’000 R’000 R’000 R’000 R’000 HERiTAGE ASSETS - - - - - Heritage assets - - - - - MACHiNERy AND EQuipMENT 1 219 219 - 199 817 34 057 1 384 979 Transport assets 788 774 - 109 437 32 334 865 877 Computer equipment 61 747 - 9 228 707 70 268 Furniture and office equipment 53 669 - 4 684 34 58 319 Other machinery and equipment 315 029 - 76 468 982 390 515

SpECiALiSED MiLiTARy ASSETS - - - - - Specialised military assets - - - - - BioLoGiCAL ASSETS - - - - - Biological assets - - - - -

ToTAL MovABLE TANGiBLE CApiTAL ASSETS 1 219 219 - 199 817 34 057 1 384 979

39.1 ADDiTioNS To MovABLE TANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 (Capital work- Received in-progress current, not current paid (paid costs and current year, finance lease received Cash Non-cash payments) prior year Total

R’000 R’000 R’000 R’000 R’000 HERiTAGE ASSETS - - - - - Heritage assets - - - - - MACHiNERy AND EQuipMENT 199 817 - - - 199 817 Transport assets 109 437 - - - 109 437 Computer equipment 9 228 - - - 9 228 Furniture and office equipment 4 684 - - - 4 684 Other machinery and equipment 76 468 - - - 76 468

SpECiALiSED MiLiTARy ASSETS - - - - - Specialised military assets - - - - -

BioLoGiCAL ASSETS - - - - - Biological assets - - - - -

ToTAL ADDiTioNS To MovABLE TANGiBLE CApiTAL ASSETS 199 817 - - - 199 817

AnnuAl RepoRt | 2017 - 2018 207 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

39.2 DiSpoSALS of MovABLE TANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 Cash Non-cash received Sold for cash disposal Total disposals Actual

R’000 R’000 R’000 R’000 HERiTAGE ASSETS - - - - Heritage assets - - - -

MACHiNERy AND EQuipMENT 32 334 1 723 34 057 5 034 Transport assets 32 334 - 32 334 5 034 Computer equipment - 707 707 - Furniture and office equipment - 34 34 - Other machinery and equipment - 982 982 -

SpECiALiSED MiLiTARy ASSETS - - - - Specialised military assets - - -

BioLoGiCAL ASSETS - - - - Biological assets - - -

ToTAL DiSpoSAL of MovABLE TANGiBLE CApiTAL ASSETS 32 334 1 723 34 057 5 034

39.3 Movement for 2016/17 MovEMENT iN MovABLE TANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2017 opening prior period Closing balance error Additions Disposals balance R’000 R’000 R’000 R’000 R’000

HERiTAGE ASSETS - - - - - Heritage assets - - - -

MACHiNERy AND EQuipMENT 1 112 825 - 179 208 72 814 1 219 219 Transport assets 718 751 - 141 524 71 501 788 774 Computer equipment 28 899 - 33 845 997 61 747 Furniture and office equipment 52 871 - 1 072 274 53 669 Other machinery and equipment 312 304 - 2 767 42 315 029

SpECiALiSED MiLiTARy ASSETS - - - - - Specialised military assets - - - - -

BioLoGiCAL ASSETS - - - - - Biological assets - - - - -

ToTAL MovABLE TANGiBLE CApiTAL ASSETS 1 112 825 - 179 208 72 814 1 219 219

208 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

prior period 39.3.1 error 2016/17 R’000 Nature of prior period error Relating to 2016/17 -

39.4 Total Minor assets -

MovEMENT iN MiNoR ASSETS pER THE ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 Specialised Machinery military intangible Heritage and Biological assets assets assets equipment assets Total R’000 R’000 R’000 R’000 R’000 R’000 Opening balance - - - 46 448 - 46 448 Value adjustments ------Additions ------Disposals ------ToTAL MiNoR ASSETS - - - 46 448 - 46 448

MovEMENT iN MiNoR ASSETS pER THE ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2017 Machinery Specialised intangible Heritage and Biological military assets assets assets equipment assets Total R’000 R’000 R’000 R’000 R’000 R’000 Opening balance - - - 46 448 - 46 448 Value adjustments ------Additions ------Disposals ------ToTAL MiNoR ASSETS - - - 46 448 - 46 448

40 intangible Capital Assets MovEMENT iN iNTANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 opening value Closing balance adjustments Additions Disposals balance

R’000 R’000 R’000 R’000 R’000

SofTWARE - - - -

MASTHEADS AND puBLiSHiNG TiTLES - - - -

pATENTS, LiCENCES, CopyRiGHT, BRAND NAMES, TRADEMARKS 37 289 19 704 - 56 993

RECipES, foRMuLAE, pRoToTypES, DESiGNS, MoDELS - - - -

SERviCES AND opERATiNG RiGHTS 4 - - 4

ToTAL iNTANGiBLE CApiTAL ASSETS 37 293 - 19 704 - 56 997

AnnuAl RepoRt | 2017 - 2018 209 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

40.1 ADDiTioNS To iNTANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 Received current, not (Development paid (paid work-in- current year, progress received Cash Non-cash current costs ) prior year Total

R’000 R’000 R’000 R’000 R’000

SofTWARE - - - - -

MASTHEADS AND puBLiSHiNG TiTLES - - - - -

pATENTS, LiCENCES, CopyRiGHT, BRAND NAMES, TRADEMARKS 19 704 - - - 19 704

RECipES, foRMuLAE, pRoToTypES, DESiGNS, MoDELS - - - - -

SERviCES AND opERATiNG RiGHTS - - - - -

ToTAL ADDiTioNS To iNTANGiBLE CApiTAL ASSETS 19 704 - - - 19 704 Disposals

40.2 DiSpoSALS of iNTANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 Cash Non-cash received Sold for cash disposal Total disposals Actual

R’000 R’000 R’000 R’000

SofTWARE - - - -

MASTHEADS AND puBLiSHiNG TiTLES - - - -

pATENTS, LiCENCES, CopyRiGHT, BRAND NAMES, TRADEMARKS - - -

RECipES, foRMuLAE, pRoToTypES, DESiGNS, MoDELS - - - -

SERviCES AND opERATiNG RiGHTS - - - -

ToTAL DiSpoSAL of iNTANGiBLE CApiTAL ASSETS - - - -

Include discussion here where deemed relevant

210 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

Movement for 2016/17 40.3 MovEMENT iN iNTANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2017 opening prior period Closing balance error Additions Disposals balance R’000 R’000 R’000 R’000 R’000

SofTWARE - - - - -

MASTHEADS AND puBLiSHiNG TiTLES - - - - -

pATENTS, LiCENCES, CopyRiGHT, BRAND NAMES, TRADEMARKS 29 746 - 7 543 - 37 289

RECipES, foRMuLAE, pRoToTypES, DESiGNS, MoDELS - - - - -

SERviCES AND opERATiNG RiGHTS - 4 - - 4

ToTAL iNTANGiBLE CApiTAL ASSETS 29 746 4 7 543 - 37 293

40.3.1 prior period error Note 2016/17 R’000 Nature of prior period error Relating to 204 to 2017 (affecting the opening balance) 4 - Right of use on Road Infrastructure 4

Relating to 2016/17 -

Total 4

41 immovable Tangible Capital Assets MovEMENT iN iMMovABLE TANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 opening value Closing balance adjustments Additions Disposals balance R’000 R’000 R’000 R’000 R’000 BuiLDiNGS AND oTHER fixED STRuCTuRES 31 519 275 - 575 301 - 32 094 576 Dwellings - - - - - Non-residential buildings - - - - - Other fixed structures 31 519 275 575 301 - 32 094 576 HERiTAGE ASSETS - - - - - Heritage assets - - - - - LAND AND SuBSoiL ASSETS - - - - - Land - - - - - Mineral and similar non-regenerative resources - - - - -

ToTAL iMMovABLE TANGiBLE CApiTAL ASSETS 31 519 275 - 575 301 - 32 094 576

immovable Tangible Capital Assets under investigation

AnnuAl RepoRt | 2017 - 2018 211 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

41.1 ADDiTioNS To iMMovABLE TANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 (Capital work- Received in-progress current, not current paid (paid costs and current year, finance lease received Cash Non-cash payments) prior year Total

R’000 R’000 R’000 R’000 R’000 BuiLDiNGS AND oTHER fixED STRuCTuRES 690 025 388 796 (503 520) - 575 301 Dwellings - Non-residential buildings - Other fixed structures 690 025 388 796 (503 520) 575 301

HERiTAGE ASSETS - - - - - Heritage assets - - - - -

LAND AND SuBSoiL ASSETS - - - - - Land - - - - - Mineral and similar non-regenerative resources - - - - -

ToTAL ADDiTioNS To iMMovABLE TANGiBLE CApiTAL ASSETS 690 025 388 796 (503 520) - 575 301

The road assets disclosed under note 41.1 include all road assets where the majority (more than 50%) of the land parcels relating to the road are either vested by title to the Province of KwaZulu-Natal or where an expropriation gazette has been published but where transfer of the title has not been formalised to the Province of KwaZulu-Natal. This treatment is in alignment with the most recent guidance provided to the department and has not yet been formalised in the MCS. Disposals 41.2 DiSpoSALS of iMMovABLE TANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2018 Cash Non-cash received Sold for cash disposal Total disposals Actual

R’000 R’000 R’000 R’000 BuiLDiNGS AND oTHER fixED STRuCTuRES - - - - Dwellings - - - - Non-residential buildings - - - - Other fixed structures - - - -

HERiTAGE ASSETS - - - - Heritage assets - - - -

LAND AND SuBSoiL ASSETS - - - - Land - - - - Mineral and similar non-regenerative resources - - - -

ToTAL DiSpoSAL of iMMovABLE TANGiBLE CApiTAL ASSETS - - - -

212 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

Movement for 2016/17 41.3 MovEMENT iN iMMovABLE TANGiBLE CApiTAL ASSETS pER ASSET REGiSTER foR THE yEAR ENDED 31 MARCH 2017 opening prior period Closing balance error Additions Disposals balance R’000 R’000 R’000 R’000 R’000 BuiLDiNGS AND oTHER fixED STRuCTuRES 1 429 370 29 755 449 334 456 - 31 519 275 Dwellings - - - - Non-residential buildings - - - - Other fixed structures 1 429 370 29 755 449 334 456 - 31 519 275

HERiTAGE ASSETS - - - - - Heritage assets - - - -

LAND AND SuBSoiL ASSETS - - - - - Land - - - - - Mineral and similar non-regenerative resources - - - - - ToTAL iMMovABLE TANGiBLE CApiTAL ASSETS 1 429 370 29 755 449 334 456 - 31 519 275

41.3.1 prior period error 2016/17 R’000 Nature of prior period error Relating to 2013 to 2017 29 755 449

Depreciated replacement value and capital expenditure on road inftrastructure on expropriated properties 29 755 449

Relating to 2016/17 334 456 Depreciated replacement value and capital expenditure on road inftrastructure on expropriated properties 334 456 Total 30 089 905

Capital Work-in-progress 41.4 CApiTAL WoRK-iN-pRoGRESS AS AT 31 MARCH 2018 Ready for use (Assets Closing Opening to the AR) Balance Balance Current Year / Contracts 31 March Note 1 April 2017 WIP terminated 2018 Annexure 7 R’000 R’000 R’000 R’000 Heritage assets - - Buildings and other fixed structures 882 995 690 025 575 302 997 718 Machinery and equipment - - - - Intangible assets - - - - TOTAL 882 995 690 025 575 302 997 718

AnnuAl RepoRt | 2017 - 2018 213 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Accruals and payables not recognised relating to Capital Wip R’000 R’000 [Amounts relating to progress certificates received but not paid at year end and therefore not included in capital work-in-progress] - - - - Total - -

CApiTAL WoRK-iN-pRoGRESS AS AT 31 MARCH 2017 Ready for use (Assets to the AR) Closing Opening Current Year / Contracts Balance Note Balance WIP terminated Annexure 7 R’000 R’000 R’000 R’000 Heritage assets - Buildings and other fixed structures 760 270 458 071 (335 346) 882 995 Machinery and equipment - Intangible assets - TOTAL 760 270 458 071 (335 346) 882 995

Immovable assets written off 41.5 iMMovABLE ASSETS WRiTTEN off foR THE yEAR ENDED 31 MARCH 2018 Buildings and other fixed Heritage Land and structures assets subsoil assets Total R’000 R’000 R’000 R’000 Immovable assets written off - - - - ToTAL iMMovABLE ASSETS WRiTTEN off - - - -

214 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

iMMovABLE ASSETS WRiTTEN off foR THE yEAR ENDED 31 MARCH 2017 Buildings and other fixed Heritage Land and structures assets subsoil assets Total R’000 R’000 R’000 R’000 Immovable assets written off - - - - ToTAL iMMovABLE ASSETS WRiTTEN off - - - -

41.6 S42 immovable assets Assets subjected to transfer in terms of S42 of the No of Value of pfMA - 2017/18 Assets Assets R’000 BUILDINGS AND OTHER FIXED STRUCTURES - - Dwellings Non-residential buildings Other fixed structures

HERITAGE ASSETS - - Heritage assets LAND AND SuBSoiL ASSETS - - Land Mineral and similar non- regenerative resources ToTAL - - Assets subjected to transfer in terms of S42 of No of value of the pfMA - 2016/17 Assets Assets R’000 BuiLDiNGS AND oTHER fixED STRuCTuRES - - Dwellings - - Non-residential buildings - - Other fixed structures - -

HERiTAGE ASSETS - - Heritage assets - -

LAND AND SuBSoiL ASSETS - - Land - - Mineral and similar non- regenerative resources - - ToTAL - -

AnnuAl RepoRt | 2017 - 2018 215 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

2017/18 2016/17 Immovable assets additional 41.7 information Note Estimated completion a unsurveyed land date Annexure 9 Area Area -

b Properties deemed vested Annexure 9 Number Number Land parcels Facilities Schools - - Clinics - - Hospitals - - Office buildings - - Dwellings - - Storage facilities - - Other - -

Duration of c Facilities on unsurveyed land use Annexure 9 Number Number Schools - - Clinics - - Hospitals - - Office buildings - - Dwellings - - Storage facilities - - Other - -

Duration of d Facilities on right to use land use Annexure 9 Number Number Schools - - Clinics - - Hospitals - - Office buildings - - Dwellings - - Storage facilities - - Other 4 345 5 183

e Agreement of custodianship Annexure 9 Number Number Land parcels - - Facilities - - Schools - - Clinics - - Hospitals - - Office buildings - - Dwellings - - Storage facilities - - Other - -

Include discussion here where deemed relevant

216 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Part E for the year ended 31 March 2018 Part E for the year ended 31 March 2018

42 principal-agent arrangements 2017/18 2016/17 42.1 Department acting as the principal fee paid R’000 R’000 Total - - 42.2 Department acting as the agent

42.2.1 Revenue received for agency activities 2017/18 2016/17 R’000 R’000 Total - - Reconciliation of funds and 42.2.2 disbursements - 2017/18

Expenditure Category of revenue/expenditure per Total funds incurred arrangement received against funds R’000 R’000

Total - - Reconciliation of carrying amount of receivables 42.2.3 and payables - 2017/18 Receivables Less: Cash Revenue Write-offs/ received opening principal is ettlements/ on behalf Closing balance entitled to waivers of principal balance R’000 R’000 R’000 R’000 R’000 Name of entity ToTAL - - - - -

payables Expenses incurred on Cash paid opening behalf of on behalf Closing balance principal of principal balance R’000 R’000 R’000 R’000 Name of entity - ToTAL - - - -

43 Change in accounting estimate During the year the following changes were made to the estimations employed in the accounting for transactions, assets, liabilities, events and circumstances value value derived derived R-value using the using the impact of original amended change in estimate estimate estimate Accounting estimate change 1: Provide a description of the change in estmate Line item 1 affected by the change Line item 2 affected by the change Line item 3 affected by the change Line item 4 affected by the change Line item 5 affected by the change

Provide a description of the estimated impact on future periods

AnnuAl RepoRt | 2017 - 2018 217 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Annexures to the Annual Financial Statements Part E for the year ended 31 March 2018 Part E for the year ended 31 march 2018

44 prior period errors 2016/17 Amount before error prior period Restated Note correction error amount 44.1 Correction of prior period errors R’000 R’000 R’000

Revenue: (e.g. Annual appropriation, Departmental revenue, Aid assistance, etc.) - Net effect - - -

Expenditure: (e.g. Compensation of employees, Goods and services, Tangible capital assets, etc.) - - Net effect - - - Assets: (e.g. Receivables, Investments, Accrued departmental revenue, Movable tangible capital assets, etc.) - - -

Net effect - - -

Liabilities: (e.g. Payables current, Voted funds to be surrendered, Commitments, Provisions, etc.) - - - Net effect - - -

Other:

Accruals 27.1 344 262 7 789 352 051 Irregular Expenditure 31 4 479 136 830 630 5 309 766 Immovable Assets 41.3 1 429 370 29 755 449 31 184 819 Intangable Immmovable Assets 40.3.1 - 4 4 Net effect 6 252 768 30 593 872 36 846 640

45 iNvENToRy (Effective from date determined in a Treasury instruction) 2017/18 2016/17 R’000 R’000 inventory Annexure 6 Opening balance - - 29 451 29 853 Add/(Less): Adjustments to prior year balances - - - - Add: Additions/Purchases - Cash - 57 914 78 513 Add: Additions - Non-cash - - - - (Less): Disposals - - - - (Less): Issues - - (55 361) (64 935) Add/(Less): Adjustments - - - (13 980) Closing balance - - 32 004 29 451

218 AnnuAl RepoRt | 2017 - 2018 DiSCLoSuRE NoTES To THE ANNuAL fiNANCiAL STATEMENTS Annexures to the Annual Financial Statements Part E for the year ended 31 March 2018 Part E for the year ended 31 march 2018 Amount Amount spent by by spent department 2016/17 R’000 R’000 56 055 56 055 1 925 378 1 925 378 1 011 045 1 011 045 2 992 478 2 992 478 Division of Revenue Act Revenue % 100% 100% 100% % of by dept by available available funds spent funds spent - - - - under / (overspending) SpENT Amount spent spent Amount by department by

Other: Amount Amount received by by received Accruals 27.1 344 262 7 789 352 051 department Irregular Expenditure 31 4 479 136 830 630 5 309 766 Immovable Assets 41.3 1 429 370 29 755 449 31 184 819

Intangable Immmovable Assets 40.3.1 - 4 4 Total Available

Net effect 6 252 768 30 593 872 36 846 640 ANNExuRRE 1A - 1 828 970 1 828 970 1 828 970 - 1 071 439 1 071 439 1 071 439 - 33 645 - 2 934 054 33 645 2 934 054 2 934 054 33 645 45 iNvENToRy (Effective from date determined in a Treasury instruction) 2017/18 2016/17 R’000 R’000 other inventory Annexure 6 Adjustments

Opening balance - - 29 451 29 853 ioN - - - - Add/(Less): Adjustments to prior year balances - - - - Add: Additions/Purchases - Cash - 57 914 78 513 oRA

Add: Additions - Non-cash - - - - Adjustments

(Less): Disposals - - - - CATGRANT ALLo (Less): Issues - - (55 361) (64 935) Add/(Less): Adjustments - - - (13 980) Closing balance - - 32 004 29 451 o versRoll D R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 1 828 970 - 1 071 439 - 2 934 054 - Grants provincial provincial Division of Revenue Act/ Revenue 47. STATEMENT of CoNDiTioNAL GRANTS RECEivED GRANTS of CoNDiTioNAL 47. STATEMENT

Provincial Roads Roads Provincial Grant Maintenance Public Transport Public Transport Grant Operations NAME of GRANT Grant EPWP Incentive Total 33 645 - Departments are reminded of the DORA requirement to certify that all transfers in terms of this Act were deposited into the primary bank account of the province or, where appropriate, into the CPD into where appropriate, or, of the province the primary bank account into terms of this Act were deposited in that all transfers certify to are reminded of the DORA requirement Departments of a province. account AnnuAl RepoRt | 2017 - 2018 219 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018 - Act 5 699 5 699 R’000 Appro- priation priation 2016/17

% 74% 74% % of Available % of Available funds transferred - 4 493 4 493 R’000 - 6 058 6 058 R’000 Total AvailableTotal Actual Transfer - - - R’000 Adjustments - - - ANNExuRE 1B Roll o vers Roll - ioN 6 058 6 058 R’000 R’000 Adjusted Adjusted appropriation CATTRANSfER ALLo TRANSfER ouNT ACC NTS AND ACCou AGENCiES DEpARTMENTAL To of TRANSfERS STATEMENT DEpARTMENT/AGENCy/ CETA Construction Total Safety and Security CETA and Security CETA Safety

220 AnnuAl RepoRt | 2017 - 2018 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018 - R’000 2016/17 Appro-priation Act Appro-priation - - 1 112 412 1 011 045 - 1 112 412 1 011 045 - 1 112 412 1 011 045 R’000 R’000 Capital Current - % 103,8% 103,8% 103,8% ExpENDiTuRE funds transferred % of Available % of Available - - Total AvailableTotal Actual Transfer - - 1 071 439 1 112 412 - 1 071 439 1 112 412 - 1 071 439 1 112 412 ANNExuRE 1C R’000 R’000 R’000 ioN Adjustments ioNS AND pRivATE ENTERpRi SES ioNS AND pRivATE Roll Roll CATTRANSfER ALLo o vers RATiC CoRpo - - R’000 R’000 o pu BL 1 071 439 - 1 071 439 - 1 071 439 - Adjusted Adjusted appropriation Act appropriation

ioN/ RATiC CoRpo iDi ESBS of TRANSfERS/Su T STATEMENT NAME of pu BL ENTERpRiSE pRivATE Public corporations Transfers Subsidies Subsidies Public Transport Operations Grant Grant Operations Public Transport Total Total

AnnuAl RepoRt | 2017 - 2018 221 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018 4 000 6 000 2 000 4 000 1 000 R’000 10 128 27 128 2016/17 Appro-priation Act Appro-priation % 1% 13% 59% 141% 480% 142% funds transferred ExpENDiTuRE % of Available % of Available 13 999 ioN 2 000 2 819 2 000 9 592 7 710 2 000 2 837 1 000 2 000 1 180 R’000 R’000 16 710 17 440 Total AvailableTotal Actual Transfer CATTRANSfER ALLo ------R’000 Adjustments ------ANNEXURE 1D R’000 Roll o vers Roll 2 000 2 000 7 710 2 000 1 000 2 000 R’000 16 710 Adjusted Adjusted appropriation Act appropriation Transfers Transfers Injury on Duty Benefits: Employee STATEMENT OF TRANSFERS TO HOUSEHOLDS OF TRANSFERS TO STATEMENT Employee Benefits: Leave Gratuity Gratuity Leave Benefits: Employee Claims Against the State - Cash the State Claims Against Refund & Rem-Act & Rem-Act Refund Total Donations & Gifts Donations (non employee) Bursaries

222 AnnuAl RepoRt | 2017 - 2018 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018 241 4 000 6 000 2 000 4 000 1 000 R’000 10 128 27 128 17 263 17 504 2016/17 R’000 Appro-priation Act Appro-priation CLoSiNG BALANCE CLoSiNG % 1% 13% 59% - - - 141% 480% 142% funds transferred MAR ExpENDiTuRE % of Available % of Available oN/By 31 oN/By pAiD BACK BACK pAiD - 13 999 1 127 1 127 R’000 R’000 xpENDi-TuRE - - - ioN 2 000 2 819 2 000 9 592 7 710 2 000 2 837 1 000 2 000 1 180 R’000 R’000 16 710 17 440 R’000 Total AvailableTotal Actual Transfer REvENu EE CATTRANSfER ALLo ------241 R’000 18 631 18 390 Adjustments R’000 BALANCE opENiNG ------ANNExuRE 1E ANNEXURE 1D R’000 Roll o vers Roll 2 000 2 000 7 710 2 000 1 000 2 000

R’000 16 710 Adjusted Adjusted puRpoSE appropriation Act appropriation Provincial Public Transport Infrastructure Public Transport Provincial Road Safety Improvement Programme Improvement Safety Road NAME of DoNoR in cash Received Municipality Ethekwini RTMC Total Transfers Transfers Injury on Duty Benefits: Employee STATEMENT OF TRANSFERS TO HOUSEHOLDS OF TRANSFERS TO STATEMENT RECEivED of AiD ASSiSTANCE STATEMENT Employee Benefits: Leave Gratuity Gratuity Leave Benefits: Employee Claims Against the State - Cash the State Claims Against Refund & Rem-Act & Rem-Act Refund Total Donations & Gifts Donations (non employee) Bursaries

AnnuAl RepoRt | 2017 - 2018 223 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018 14 14 R’000 - - R’000 2017/18 2016/17 ip ioN oR SpoNSo RSH o NAT ANNEXURE 1F uRE of Gif T, D KZN DEFENSIVE DRIVER TRAINING NAT

ipS RECEivED ioNS AND SpoNSo RSH ioN L TA To Received in kind Received KIA MOTORS SATNAME of oRGANi STATEMENT of GifTS, Do NAT of GifTS, STATEMENT

224 AnnuAl RepoRt | 2017 - 2018 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018

- R’000 claims paid out recoverable i.e. recoverable Realised losses not Realised

- 2018 R’000 Guaranteed Guaranteed interest for year year for interest ended 31 March ended 31 March ------39 23 16 Closing balance 31 March 2018 March ------Revaluations ------the year reduced/ reduced/ cancelled/ cancelled/ Guaranteed Guaranteed repayments/ repayments/ released during released ------year during the Guarantees Guarantees draw downs downs draw ANNExuRE 2A opening balance 1 April 2017 - 39 - 23 - - 16 ------R’000 R’000 R’000 R’000 R’000 R’000 capital capital amount original guaranteed guaranteed Total Housing Housing Housing Housing Housing Housing Housing Housing Housing

Guarantee in Guarantee of respect iTuTioN Old Mutual (Nedbank/ Permanent Old Mutual (Nedbank/ Permanent Bank FNB (Former Saambou Bank FNB (Former Limtied) Bank of South Africa Standard Limited Nedbank (NBS) Nedbank Limited Ithala Bank Limited FNB (A Division of First Rand Bank FNB (A Division of First Limited) People’s Bank FBC Fidelity LimitedPeople’s Housing ABSA Bank Limited ABSA

STATEMENT of fiNANCiAL GuARANTEES iSSuED AS AT 31 MARCH 2018 - LoCAL 31 MARCH iSSuED AS AT of fiNANCiAL GuARANTEES STATEMENT i NST GuARANToR

AnnuAl RepoRt | 2017 - 2018 225 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018 - 8 556 31 March 2018 31 March Closing balance

987 144 877 184 221 102 315 582 34 006 R’000 R’000 Liabilites Liabilites hereunder) recoverable recoverable (provide details details (provide

74 R’000 11 921 16 887 (5 040) the year cancelled/ cancelled/ reduced during reduced Liabilities paid/

1 019 4 361 R’000 14 639 20 019 the year Liabilities incurred during incurred

7 795 R’000 82 857 47 114 137 766 1 April 2017 o pening balance ANNExuRE 3 Civil Total Accidents Claims against the department Claims against potholes STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2018 AT AS OF CONTINGENT LIABILITIES STATEMENT

226 AnnuAl RepoRt | 2017 - 2018 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018 - - - - - 4 60 229 150 237 379 267 255 1 041 3 207 1 266 1 488 1 679 2 014 1 783 12 609 16 775 33 241 11 591 R’000 Total Total - - - 33 12 290 294 152 876 194 115 557 (100) (329) 1 970 1 020 1 700 3 314 3 713 2 890 1 015 18 278 15 490 11 402 R’000 - - 4 60 150 237 229 267 379 255 1 041 3 207 1 679 2 014 1 783 1 266 1 488 16 775 33 241 12 609 11 591 R’000 31/03/2017 31/03/2018 31/03/2017

4 33 294 290 152 194 876 989 115 557 (100) (329) 1 970 1 020 1 700 3 314 3 713 2 890 18 278 15 490 11 402 R’000 Unconfirmed balance outstanding balance outstanding Unconfirmed 31/03/2018

------ANNExuRE 4 R’000 ------8 26 Confirmed balance outstanding balance outstanding Confirmed R’000 31/03/2018 31/03/2017

ERNMENT ENTiTy SASSA Credits Unallocated Art & Culture and Liaison Community Safety Works Provincial Treasury Provincial Household Royal Agriculture Development Economic Education Health Human Settlement Premier Office of the Affairs &Traditional Gov Co-Operative Social Welfare Sport KZN provincial Departments KZN provincial Provincial Legislature Provincial Other National Transport National Credits Unallocated Justice Correctional Services Correctional DEpARTMENTS Departments National CLAIMS RECOVERABLE G ov

AnnuAl RepoRt | 2017 - 2018 227 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018 ------5 819 R’000 ------Total Total 11 305 R’000 - - 5 819 R’000 6 288 6 288 6 288 6 288 11 305 80 895 100 382 80 929 100 382 R’000 31/03/2018 31/03/2017 31/03/2018 31/03/2017 Unconfirmed balance outstanding balance outstanding Unconfirmed - - - - - ANNExuRE 4 R’000 31/03/2017 - - - - 34 Confirmed balance outstanding balance outstanding Confirmed R’000 31/03/2018 (Continue)

ERNMENT ENTiTy tional Public Entities Na Public Entities RBM Private Entity Private Maphumulo Municipality Ethekwini Municipality Ethekwini KZN Municipalities CLAiMS RECovERABLE G ov Total

228 AnnuAl RepoRt | 2017 - 2018 Annexures to the Annual Financial Statements Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E for the year ended 31 march 2018 ------137 137 R’000 Total Total ------R’000

- - - - 5 217 - - 1 132 137 137 6 349 R’000 31/03/2017 31/03/2018 31/03/2017

------Unconfirmed balance outstanding balance outstanding Unconfirmed R’000 31/03/2018

------R’000 31/03/2017

ANNEXURE 5 5 217 1 132 6 349 Confirmed balance outstanding balance outstanding Confirmed R’000 31/03/2018 ERNMENT ENTiTy ERNMENT ENTiTy OGTA DEpARTMENTS Current Departments provincial Premier Office of the Works and Liason Community Safety Health Treasury Provincial Education C Total INTER-GOVERNMENT PAYABLES G ov

AnnuAl RepoRt | 2017 - 2018 229 Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018

- - - R’000 78 513 29 853 29 451 (64 935) (13 980) - 2016/17 Quantity

- - - - 57 914 29 451 32 004 (55 361) R’000 - - 2017/18 Quantity

ANNExuRE 6 Note (Less): Issues (Less): Disposals Add: Additions/Purchases - Cash Add: Additions/Purchases Add: Additions - Non-cash i nventory Opening balance balances prior year to Add/(Less): Adjustments Add/(Less): Adjustments Closing balance

230 AnnuAl RepoRt | 2017 - 2018 Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 - - - R’000 906 796 906 796 906 796 906 796 678 290 228 506 Total Total R’000 2017/18 Closing balance

27 40 67 R’000 (666 224) (666 224) (666 224) planned, terminated terminated register) / Contract / Contract register) Ready for use (Asset use (Asset for Ready construction started construction

52 24 76 R’000 690 025 690 025 690 025 Number of projects Wip started planned, Current year Capital Capital year Current construction not construction

R THE yEAR ENDED 31 MARCH 2018 ENDED 31 MARCH R THE yEAR

R’000 ANNExuRE 7 882 995 882 995 882 995 iN-pRoGRESS fo iN-pRoGRESS opening balance RK- Wo EMENT iN CApiTAL

M ov ROGRESS -P

IN - u RES ORK W APITAL C IN

EMENT L TA MOv Dwellings 0 to 1 year 1 year 0 to 3 year(s) 1 to 5 years 3 to than 5 years Longer CT fixED STRu BuiLDiNGS AND oTHER buildings Non-residential Age analysis on ongoing projects on ongoing analysis Age Total Other fixed structures Other fixed Services and operating rights Services and operating To

AnnuAl RepoRt | 2017 - 2018 231 Annexures to the Annual Financial Statements Part E for the year ended 31 march 2018 Part E Notes - - - R’000 - Total Total 9 180 9 180 R’000 - - R’000

- - R’000

- - R’000 ANNExu RE 8

9 180 9 180 31/03/2018 31/03/2017 31/03/2018 31/03/2017 31/03/2018 31/03/2017 R’000 Confirmed balance outstanding Confirmed balance outstanding Unconfirmed )

note 21 ANd note 22 21 ANd note note iC ENTiTi ES iNTER-ENTiTy ADvANCES RECEivED ( RECEivED iNTER-ENTiTy ADvANCES ENTiTy

Subtotal pu BL Current Levies RTMC

232 AnnuAl RepoRt | 2017 - 2018 Part E Notes

AnnuAl RepoRt | 2017 - 2018 233 #MaSisulu100 #NM100 #BeTheLegacy

KwaZulu-Natal Department of Transport COMPILED BY: Communication Support, Department of Transport Inkosi Mhlabunzima Maphumulo House 172 Burger Street • Tel: 033 355 8624 Pietermaritzburg

PR252/2018 | ISBN: 978-0-621-46508-2 Email: [email protected] www.kzntransport.gov.za

ANNUAL REPORT 2017/2018

“Prosperity Through Mobility.”

https://www.facebook.com/ KZNTransport https://twitter.com/KZNTransport @KZNTransport Road Safety is our collective responsibility. 234 AnnuAl RepoRt | 2017 - 2018