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Department of Public Works and Infrastructure Province of Free State Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 DEPARTMENT OF PUBLIC WORKS AND INFRASTRUCTURE PROVINCE OF FREE STATE VOTE NO. 09 ANNUAL REPORT 2016/2017 FINANCIAL YEAR Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 CONTENTS PART A: GENERAL INFORMATION 3 1 DEPARTMENT GENERAL INFORMATION 5 2 LIST OF ABBREVIATIONS/ACRONYMS 6 3. FOREWORD BY THE MEC 8 4. REPORT OF THE ACCOUNTING OFFICER 10 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 39 6. STRATEGIC OVERVIEW 40 6.1 Vision 40 6.2 Mission 40 6.3 Values 40 7. LEGISLATIVE AND OTHER MANDATES 40 8. ORGANISATIONAL STRUCTURE 42 PART B: PERFORMANCE INFORMATION 43 1. AUDITOR GENERAL'S REPORT: PREDETERMINED OBJECTIVES 45 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 45 2.1 Service Delivery Environment 45 2.2 Service Delivery Improvement Plan 47 2.3 Organisational environment 49 2.4 Key Policy developments and legislative changes 49 3. STRATEGIC OUTCOME ORIENTED GOALS 50 4. PERFORMANCE INFORMATION BY PROGRAMME 51 4.1 Proaramme 1: Administration 51 4.2 Proaramme 2: Public Works Infrastructure 64 4.3 Proaramme 3: Expanded Public Works Proaramme 77 5. TRANSFER PAYMENTS 82 5.1 Transfer payments to municipalities 82 6. CONDITIONAL GRANTS 83 6.1 Conditional arants and earmarked funds paid 83 7. DONOR FUNDS 85 7.1 Donor funds received 85 8 CAPITAL INVESTMENT 86 8.1 Capital investment, maintenance and asset manaaement plan 86 ....., .. e\TJ����M� 1. INTRODUCTION 95 2. RISK MANAGEMENT 95 3. FRAUD AND CORRUPTION 97 4. MINIMISING CONFLICT OF INTEREST 98 5. CODE OF CONDUCT 99 6. HEAL TH SAFETY AND ENVIRONMENTAL ISSUES 99 7. PORTFOLIO COMMITTEES 100 8. SCOPA RESOLUTIONS 101 9. PRIOR MODIFICATIONS TO AUDIT REPORTS 103 10. INTERNAL CONTROL UNIT 106 11. INTERNAL AUDIT AND AUDIT COMMITTEES 107 12. AUDIT COMMITTEE REPORT 109 -�•1·•-• ■:1■11,,.,,1,,■:"1':... e1■ •1- =•h'i �,i."r_•1�::::lh'Jl::::ll1."I , ... 1. INTRODUCTION 113 2. OVERVIEW OF HUMAN RESOURCES 113 3. HUMAN RESOURCES OVERSIGHT STATISTICS 114 ......... 1.,r., ... - ..., .1 .. ,1:::re 1 :-11,,,,.,11111•1 ,r, ... 1. REPORT OF THE AUDITOR GENERAL 145 2. ANNUAL FINANCIAL STATEMENTS 152 FreeState Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vote 9 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 CONTENTS 1. DEPARTMENT GENERAL INFORMA�l0N 5 2. 6 3. FOREWORD BY THE MEG 8 4. 10 5. ANNUAL REPORT 6. STRATEGIC OVERVIEW 6.1 Vision 6.2 Mission 6.3 Values 7. LEGISLATIVE AND OTHER MANDA�ES 8. ORGANISATIONAL STRUCTURE Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 1. DEPARTMENT GENERAL INFORMATION PHYSICAL ADDRESS: 3rd Floor Room 310 OR Tambo House Corner St Andrew and Markgraaf Streets Bloemfontein 9301 POSTAL ADDRESS: P.O. Box 7551 Bloemfontein 9300 TELEPHONE NUMBER/S: 051 492 3909/ 3787 FAX NUMBER: 086 597 3044 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.publicworks.fs.gov.za Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 2. LIST OF ABBREVIATIONS/ACRONYMS AR Annual Report AFS Annual Financial Statements AGSA Auditor General of South Africa AO Accountinq Officer AOPO Audit of Predetermined Objectives APP Annual Performance Plan BAS Basic Accountinq System BBBEE Broad Based Black Economic Empowerment z C-AMP Custodian-Immovable Asset Manaqement Plan 0 CDP Contractor Development Proqramme - CEO Chief Executive Officer CFO Chief Financial Officer !ci: CGICT Corporate Governance of Information Communication Technoloqy CIP CompulsoryInduction Programme :E CIPC Companies and Intellectual Property Commission 0::: CPIX Consumer Price Index DORA Division of Revenue Act 0 DPSA Department of Public Service and Administration LL. ERC Education Resource Centre z EPWP Expanded Public Works Programme - ERM Enterprise Risk Management FSPG Free State Provincial Government ...J GIAMA Government Immovable Asset Management Act <C HOD Head of Department 0::: HR Human Resources I.LI HRC Human Rights Commission IAF Internal Audit Function z IAR Immovable Asset Reqister I.LI ICT Information and Communication Technology IESBA International Ethics Standards Board for Accountants C) ISA International Standards on Auditinq • • ISPPIA International Standard of the Professional Practice of Internal Auditing IYM In-Year-Monitoring <C KCM Key Control Matrix LRA Labour Relations Act t­ MCS Modified Cash Standard o:: MEC Member of Executive Council MPL Member of the Provincial Legislature MPSA Minister for the Public Service and Administration .f MTEF Medium Term Expenditure Framework MTSF Medium Term Strategic Framework NDP National Development Plan NDPW National Department of Public Works NYS National Youth Service OHS Occupational Health and Safety OSD Occupation Specific Dispensation OTP Office of the Premier PAA Public Audit Act Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 PFMA Public Finance Manaqement Act PPP Public Private Partnerships PPPFA Preferential Procurement Policy Framework Act PROPAC Provincial Public Accounts Committee PSCBC Public Service Coordinating Bargaining Council RPL Recoqnition of Prior Learninq SARS South African Revenue Service SMME Small Medium and Micro Enterprises SMS Senior Manaqement Service SCM Supply Chain Management SCOA Standard Chart of Accounts SCOPA Standinq Committee on Public Accounts SITA State Information Technoloqy Aqencv SDIP Service Delivery Improvement Plan TR Treasury Requlations U-AMPs User-Immovable Asset Manaqement Plans VOiP Voice over Internet Protocol WO Work Opportunities WSP Workplace Skills Plan Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 3. FOREWORD BY THE MEMBER OF EXECUTIVE COUNCIL This year, as we present the 2016/2017 Annual Report to the people of the Free State, we are also marking the centenary of the birth of Oliver Reginald Tambo, one of our most outstanding revolutionaries of the National Liberation Movement. Oliver Reginald Tambo fought for freedom and equality, a champion for peace and unity. We continue to be inspired by the ideals of this revolutionary and other great revolutionaries as we know the responsibility we owe to our people to lead them along a path that leads to a "Better life for all", to deliver on our promises. This Annual Report reflects just how z much the Department of Public Works and Infrastructure has performed in its mandate of 0 infrastructure development, Property Management and coordination of the Expanded Public - Works Programme (EPWP). !ci: During the past financial year, the Department, due to good corporate governance practices :E was awarded the second place (silver award) at the prestigious National Batho Pele Excellence awards for the Most Ethical and Professional Department in the country. The 0::: aforesaid reiterates and confirms the huge strides made by the Department of Public Works 0 and Infrastructure under the current government. zLL. Capacity building of our Department is one of the ways to ensure that we will be able to - respond to our mandate; therefore 51 officials were appointed of which, 25 were technical ...J personnel who will assist to execute our infrastructure mandate. <C Furthermore, as an equal opportunity employer we have in terms of our approved strategy, 0::: employment equity and human resources plans achieved 50% representation of women at I.LI senior management level, whilst we exceeded the 2% disability target, by having 2.53% differently abled staff members. We still have a challenge of representation of differently I.LIz abled staff at Senior Management level. The Department also managed to appoint six women on levels 9-14 and 27 youth. C) • • Adding to the provincial revenue base, the Department has over collected revenue. The target was R42.212 million and an amount of R49.889 million was collected. <C t­ In the financial year ending 31 March 2017, the Department successfully completed 38 infrastructure projects, inclusive of four projects for the Department of Education. o:: Aside from Property Management and infrastructure development, the Department is also .f responsible for the coordination and implementation of the Expanded Public Works Programme. To date the Department has created 3 964 work opportunities and for the first time, the target for the Full-Time Equivalent has been over achieved by 77%. We are also pleased that 32 public bodies are reporting on EPWP in the province. In our endeavours to improve and enhance the skills base in the province, projects are implemented in line with the EPWP labour intensive principles. Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 The Department has embarked on the National Youth Service Programme and it managed to recruit 124 young people for the 2016/2017 financial year. This programme focuses on equipping the young and unemployed youth with technical skills required in the built environment The Department verified ownership of 4 839 properties on the immovable asset register of the Department for the year ending 31 March 2017. The Department experienced a shortfall of R305.418 million on utility payments and R92.389 million on rates & taxes. In addition, the Departments allocation for maintenance is not sufficient to complete the entire maintenance needs. The Department informed by the National Development Plan (NOP), clearly focused on the strategic outputs to contribute to the fight against poverty and
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