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 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. 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 unemployment towards the creation of communities with equal and ever improving living conditions. I would like to thank the Executive Council, under the leadership of the Premier for the support, words of encouragement and team work. I also thank honourable members of the Legislature, particularly, members of the Portfolio Committee on Public Works and Infrastructure, Roads and Transport and Human Settlements for their constructive and progressive oversight role. Thank you to the Head of Department for his leadership, dedication and commitment to his responsibilities and all the officials and general staff in the Department for your loyalty, commitment to your work and increase in your efficiency in discharging your responsibilities. With this basic perspective on our performance and challenges, I therefore table this 2016/2017 annual report as yet another tool for shaping ourselves as we surge ahead with the responsibilities that we have been entrusted with. 4. REPORT OF THE ACCOUNTING OFFICER Overview of the operations of the Department: The overview of the Annual Report for the 2016/2017 financial year provides a synopsis of key deliverables of the Department in the year under review. Achieving the highest standards of good governance and accountability depends largely on the value, commitment and dedication of human capital. The Department continues to manage its employees' wellness and continuous capacity building through various skills development initiatives and z awarding bursaries. 0 With regards to its finances, the Department has carefully - monitored its budget in line with the province's austerity measures and ensured compliance with PFMA regulatory requirements. Regarding internal controls and risk management, the Department has strengthened its internal control measures to minimise risk and implement !ci: early warning system. :E Throughout its performance the Department responded to the priorities of the National 0::: Development Plan and 2014-2019 Medium Term Strategic Framework Outcomes which are:- 0 • 3: All people in South Africa are and feel safe, LL. • 4: Decent employment through inclusive economic growth, • 5: A skilled and capable workforce to support an inclusive growth path, z • - 6: An efficient, competitive and responsive economic infrastructure network, • 8: Sustainable Human Settlements and Improved Quality of Household Life, ...J • 12: An efficient, effective and development-oriented public service and • 14: Nation Building and Social Cohesion. Results, challenges, significant events and projects for the year. I.LIz Successes C) • • During the past financial year, the Department due to good corporate governance practices was awarded the second place (silver award) at the National Bathe Pele Excellence Awards for the The Department committed itself to implement health and wellness programmes to promote work-life balance to accommodate work, personal and family needs. Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 A wellness day was held in February 2017 with the theme, "A healthy lifestyle for a healthy living, we can you can." Officials exercised in the outdoors, played games and had their blood groups, cholesterol level, blood pressure, body mass index, glucose, voluntary HIV & AIDS tested for optimal functioning. The upgrade of the new telephone system to Voice over Internet Protocol (VOiP) was completed in the Department. This has reduced telephone expenditure by 70% per month. The Department continues to increase the revenue streams of government in the province and has exceeded its annual target by R6.666 million. Programme 2 Public Works Infrastructure: As an implementing agent for infrastructure delivery in the province, the Department has completed 38 infrastructure projects for the 2016/2017 financial year. A total of 68 projects were under implementation which consist of our own 41 projects, one for Department of Health, 23 for the Department of Education, one for Department of Social Development, one for Department of Economic, Small Business Development, Tourism and Environmental Affairs and one for the Department of Sport, Arts, Culture & Recreation. In addition to capital projects, seven maintenance projects were also completed to address the growing maintenance backlog. The Department has also conducted condition assessments on 20 identified properties which will inform the maintenance plan. Programme 3 Expanded Public Works Programme: As coordinating Department for EPWP in the Province, we contributed 3 964 work opportunities through implementation of massification programmes such as the Township Revitalization Programme, Cleaning and Greening Programme, Community Work Programme and renovation of community halls. The Province had a target of 61 022 work opportunities in the 2016/2017 financial year for all public bodies participating on EPWP within the Province. As at 31 March 2017 the province managed to create 58 218 work opportunities. In pursuit of the development of emerging contractors, the Department resuscitated its Contractor Development Programme in partnership with the Department of Police, Roads and Transport. Thirty-eight learner contractors participated in the theoretical training which was completed at the end of February 2017. Significantevents Under the Artisan Development Programme, 33 artisans qualified since 2013. One qualified electrician who was trade tested under this programme currently owns a company. The Ratlou Complex for Home Affairs Offices in Thaba Nchu was officially handed-over and opened on 13 July 2016, to render much needed social services to the community of Thaba Nchu. The Department executed this renovation work through its in-house capacity utilising its own certified artisans, tradesmen support and project managers. Work and training opportunities were also created for 20 participants of the Expanded Public Works Programme from unskilled people in the community of Thaba Nchu. Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 The Property Management Helpdesk is operational with the main objective to manage and resolve all related incidents that are geared towards the Property Portfolio, quicker and effectively. Challenges Completion of projects on behalf of client departments remains a challenge because the Department receive project lists late. Furthermore, the budget is with the client departments allowing them to stop contracts or not pay contractors on time and this hampers completion of the project on time and within budget. z 0 Annually the C-AMP is compiled, approved and submitted to Provincial Treasury. Information - on the state of properties under the custodianship of the Department is contained in this Custodian- Immovable Asset Management Plan. Unfortunately, no funding has been received to implement the plan and it also contributes to the backlog in maintaining !ci: government owned buildings in the province. :E 0::: The Department experienced a shortfall of R305.418 million on utility payments and R92.389 0 million on rates & taxes. The shortfall is due to the high annual tariff increases and the LL. inadequate budget allocated for the purpose. However, in assisting municipalities to sustain service delivery, a total amount of R230.167 million in water and electricity bills and z R273.839 million in municipal rates and taxes has been paid as at the end of financial year. - ...J Overview of the financial results of the department: 2015/2016 2016/2017 Actual (Over)/ Actual (Over)/ I.LIz Amount Under Amount Under Estimate Collected Collection Estimate Collected Collection Departmental receipts R'000 R'000 R'000 R'000 R'000 R'000 C) Sale of goods and services • • 38 566 40 438 (1 872) 44 497 43 680 817 other than capital assets Interest, dividends and rent Plans for collecting departmental revenue Revenue generation initiatives for 2016/2017 were as follows: • Advertising on government buildings. • Disposal of unutilised and redundant buildings. • Rental of antenna space for Vodacom, MTN and Cell C in the CBD. • Maximising revenue on parking space available. • Maximising revenue on rental of office space. Reasons for over collection of revenue and new measures instituted during 2016/2017 to raise additional revenue Over collection was the result of extra effortthat the Department put in place to collect. Tariffscharged by the Department The Department generates revenue mainly from rentals of state properties and parking spaces. The Department annually submits before April, a request to increase tariffs to Provincial Treasury. The tariff increase is in line with the Consumer Price Index (CPIX) and is market related as provided in the final Budget Allocation letter received from Provincial Treasury. The tariffs for residential and commercial properties are mostly market related. Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free services rendered by the Department Free State Department of Agriculture and Rural Department Accommodation Currently Occupied by User State Owned Buildings District Street Address Asset Type Fezile Dabi Heilbron 80 Steyn Street Office 2 Fezile Dabi Koppies Fifth Street no 40 Office 3 Fezile Dabi Kroonstad 4 Station Street Office z 4 Fezile Dabi Kroonstad End of the Brand street Offices and Vet 0 Laboratory - 5 Lejweleputswa Glen: Admin Building Toggekregen Road Head Office Glen 6 Lejweleputswa Glen: Boiler Room Toggekregen Road Head Office !ci: Building Glen :E 7 Lejweleputswa Glen: Chemistry Building Toggekregen Road Head Office Glen 0::: 8 Lejweleputswa Glen: H-block Building Toggekregen Road Head Office Glen 0 9 Lejweleputswa Glen: House no 1 Toggekregen Road Head Office LL. (College) Glen 10 Lejweleputswa Glen: House no 2 Toggekregen Road Head Office z (Farmer Settlement) Glen 11 Lejweleputswa Glen: House no 4 Toggekregen Road Head Office (Economics) Glen ...J 12 Lejweleputswa Glen: House no 5 Toggekregen Road Head Office (Economics) Glen 23 Lejweleputswa Bultfontein 3 Diamant Street Office 24 Lejweleputswa Hoopstad 7 Hoodfs Street Office 25 Lejweleputswa Odendaalsrus 26 Kalkkuile & Maree Office Avenue Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free State Department of Agriculture and Rural Department Accommodation Currently Occupied by User State Owned Buildings District Street Address Asset Type 26 Lejweleputswa Ventersburg 6 Dalia Street Office 27 Lejweleputswa Welkom c/o Long road & Mullen District Office Street 28 Lejweleputswa Brandfort 37 Duke Street Office 29 Mangaung Metro Bloemfontein 36 A Dan Pienaar Drive Offices and Vet Laboratory 30 Mangaung Metro Thaba Nchu 40 Van Riebeck Street Office 31 Mangaung Metro Thaba Nchu 23 Neuwelheidsig Offices and Veterinary Street Clinic 32 Mangaung Metro Bloemfontein 36 A Dan Pienaar Drive Animal Health Building 33 Mangaung Metro Tweespruit Old Traffic Department Office 34 Thabo Mofutsanyana Bethlehem 36 Louw Street Office 35 Thabo Mofutsanyana Ficksburg 57 Fontein Street Office 36 Thabo Mofutsanyana Makeneng Makeneng Village Office 37 Thabo Mofutsanyana Makoane Makoane Village Office 38 Thabo Mofutsanyana Phuthaditjhaba Mangaung Village Office 39 Thabo Mofutsanyana Memel 12 Voortrekker Street Office 40 Thabo Mofutsanyana Monontsha Monontsha Village Office 41 Thabo Mofutsanyana Phuthaditjhaba Old QwaQwa Vet Clinic Government complex 42 Thabo Mofutsanyana Phuthaditjhaba Old QwaQwa Vet Clinic Government complex 43 Thabo Mofutsanyana Phuthaditjhaba Old QwaQwa District Office Government complex 44 Thabo Mofutsanyana Thaba Bosiu Thaba Bosiu Village Office 45 Thabo Mofutsanyana Tseseng Tseseng Village Office 46 Thabo Mofutsanyana Vrede 54 Botha Street Office 47 Thabo Mofutsanyana Clocolan 3rd Laan Oos no. 36 Office 48 Thabo Mofutsanyana Kestell 27 Botha Street Office 49 Thabo Mofutsanyana QwaQwa Phuthaditjhaba Office 50 Thabo Mofutsanyana Harrismith Old Traffic Department Office Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free State Department of Agriculture and Rural Department Accommodation Currently Occupied by User State Owned Buildings District Street Address Asset Type 51 Mangaung Metro Dewetsdorp 2 Brand Street Office 52 Xhariep Fauresmith Veld Reserve Office 53 Xhariep Petrusburg 27 President Street Office z 54 Xhariep Smithfield 5 Roux Street Office 0 Smithfield - 55 Xhariep Xhariep Dam Gariep Dam Fish Office Hatchery 56 Xhariep Xhariep Dam 35 Tink Tinkie Street Office !ci: Free State Department of Agriculture and Rural Department 0::: Accommodation Currently Occupied by User Leased 0 District Street Address Asset Type -z Lejweleputswa Bothaville SA Graan Building Van Office der Lingen Street ...J Bothaville 2 Thabo Mofutsanyana Fouriesburg 48 Robertson Street Office 4 Thabo Mofutsanyana Kestell 36 Blighnaut Street Office 9860 I.LIz 5 Xhariep Koffiefontein Municipality Building Office Groottreker Street 9986 C) 6 Thabo Mofutsanyana Ladybrand Fomosa Centre 18 Office • • Church Street 9745 7 Thabo Mofutsanyana Lindley 2 Market Street 9630 Office 12 Xhariep Smithfield Hourse Dou Roux Vet clinic Street 7 9966 13 Lejweleputswa Theunissen 27 Le Roux Street Office 14 Thabo Mofutsanyana Warden 18 Park Street Office Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free State Department of Agriculture and Rural Department Accommodation Currently Occupied by User Leased District Street Address Asset Type 15 Xhariep Reddersburg 5 Van Riebeck Street Office 16 Fezile Dabi Sasolburg Chris Building 18 NJ Office V/D Merwe Street 17 Xhariep Trompsburg Molen Street 35 Office 9913 18 Mangaung Metro Thaba Nchu 10 Rietz Street Office (Bokamoso House) 19 Mangaung Metro Botshabelo House 139 Block H Office Botshabelo Free State Department of Cooperative Governance and Traditional Affairs Accommodation Currently Occupied by User State Owned Buildings No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein OR Tambo Building Cooperative Cnr Markgraaff & St. Governance and Andrew Traditional Affairs & Human Settlements Offices 2 Mangaung Metro Bloemfontein MANCOFS (Pelonomi Provincial Disaster Hospital) Management Centre 3 Xhariep Trompsburg 25 Fontein Street Xhariep District Offices 4 Lejweleputswa Welkom Kopano Complex Lejweleputswa District Offices 5 Fezile Dabi Kroonstad No. 6 Station Street Fezile Dabi District Offices Free State Department of Human Settlements Accommodation Currently Occupied by User State Owned Buildings No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein Cnr. St Andrew & OR Tambo House Markgraaf Streets 2 Thabo Mofutsanyana QwaQwa Mampoi Street FDC Building Naledi Mall 3 Fezile Dabi Kroonstad 26 Station Street Fezile Dabi District Office 4 Xhariep Trompsburg 25 Fontein Street Works Offices 5 Lejweleputswa Welkom Templest Street, Kopano Complex and Welkom Musicon Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free State Department of Cooperative Governance and Traditional Affairs and Human Settlements Accommodation Currently Occupied by User Leased No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein LM Building No. 7 Local Government Elizabeth Street Branch I COGTA & Districts Offices 2 Mangaung Metro Bloemfontein Old Sanlam Building Free State House of No.71 Maitland Street Traditional Leaders & HS Offices 3 Thabo Mofutsanyana Phuthaditjhaba FDC Building Mampoi Thabo Mofutsanyana Street, Naledi Mall District Offices z 4 Fezile Dabi Sasolburg Mora House Erf No. 15 Fezile Dabi District Sasolburg CBD Offices 0- Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs Accommodation Currently Occupied by User State Owned Buildings !ci: No. District Town Street Address Asset Type :E 1 Xhariep Fauresmith Kalkfonteindam Kalkfonteindam Nature 0::: Reserve 0 2 Xhariep Gariepdam Gariepdam Gariep Fish Hatchery LL. 3 Xhariep Gariepdam Gariepdam Gariep Nature Reserve z 4 Xhariep Bethulie Tussen Die Riviere Tussen-Die-Riviere - Nature Reserve ...J 5 Mangaung Metro Wepener Caledon Nature Caledon Nature Reserve Reserve 17 Mangaung Metro Bloemfontein Bathurst Bathurst Nature Reserve Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs Accommodation Currently Occupied by User State Owned Buildings District Street Address Asset Type 18 Mangaung Metro Bloemfontein Mockes Dam Philip Sanders Resort 19 Mangaung Metro Bloemfontein Lessing Avenue, Karee Nursery Estoire 20 Mangaung Metro Bloemfontein Soetdoring Soetdoring Nature Reserve 21 Mangaung Metro Bloemfontein Maria Moroka Maria Moroka Nature Reserve Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs Accommodation Currently Occupied by User Leased No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein Bojanala Offices 34 Markqraaff Street 2 Mangaung Metro Bloemfontein Fountain Towers Offices C/o Markgraaff & Zastron Street 3 Mangaung Metro Bloemfontein Agriculture Building Offices North 98 Zastron Street 4 Mangaung Metro Bloemfontein Agriculture Building Offices South 98 Zastron Street 5 Thabo Mofutsanyana Phuthaditjhaba FDC Building 31 Offices Blue Street 6 Mangaung Metro Thaba Nchu Ratlou Complex Offices J.S Moroka Street Free State Department of Education Accommodation Currently Occupied by User State Owned Buildings No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein Elizabeth Street, Offices (Head Office) 2 Mangaung Metro Bloemfontein DF Malherbe Road Offices (Head Office) 3 Fezile Dabi Sasol burg Totius Street Offices (District) 4 Fezile Dabi Sasol burg Totius Street Offices (District) 5 Thabo Mofutsanyana Phuthaditjhaba Parliament Road Offices (District) 6 Thabo Mofutsanyana Phuthaditjhaba Parliament Road Offices (District) 7 Thabo Mofutsanyana Bethlehem High Street Offices (District) 8 Mangaung Metro Bloemfontein Lombard Street New Printing and Packaging facility Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Education Accommodation Currently Occupied by User State Owned No. District Town Street Address Asset Type 9 Mangaung Metro Ladybrand Ladybrand Satellite (Motheo) 10 Mangaung Metro Bloemfontein Aliwal Street, Child Guidance Clinic Bloemfontein 11 Fezile Dabi Kroonstad Senekal Street, Child Guidance Clinic Kroonstad 12 Fezile Dabi Sasolburg Totius Street, Child Guidance Clinic z Sasolbur 13 Thabo Mofutsanyana Bethlehem High Street, Child Guidance Clinic 0- 14 Lejweleputswa Welkom Heidelaan, Welkom Child Guidance Clinic 15 Thabo Mofutsanyana Phuthaditjhaba Phuthaditjhaba ERC !ci: :E 16 Fezile Dabi Kroonstad Kroonstad ERC 0::: 17 Mangaung Metro Thaba Nchu Thaba Nchu ERC 0 LL. Free State Department of Education z Accommodation Currently Occupied by User Leased - No. District Town Street Address Asset Type ...J 1 Thabo Mofutsanyana Bethlehem Murry Street (portion of Erf Offices 16 Mangaung Metro Bloemfontein Murry Street (portion of Erf Offices 162) Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free State Department of Health Accommodation Currently Occupied by User State Owned Buildings No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein Cnr Charlotte Office building Maxheke and Harvey Streets 2 Mangaung Metro Bloemfontein Kolbe Street, Office component of Willows training facility 3 Mangaung Metro Bloemfontein 7m Roth Avenue, Office building Willows 4 Mangaung Metro Bloemfontein St Andrews Street Office building 5 Mangaung Metro Bloemfontein St. Andrew Street Office building centre, CBD 6 Mangaung Metro Thaba Nchu J.S. Moroka Hospital District Hospital, Offices 7 Mangaung Metro Thaba Nchu No 2 Station Road Office building 8 Fezile Dabi Kroonstad Hospital Road Old Hospital converted to: Offices, Accommodation, Vehicle Workshop, Parking Government vehicles, Emergency Medical Services 9 Fezile Dabi Sasolburg 17 Fichardt Street Office building 10 Lejweleputswa Welkom Kopano Grounds, Office Building Long road 11 Thabo Mofutsanyana Bethlehem No 2 Station Road Office Complex 12 Thabo Mofutsanyana Phuthaditjhaba Mampoi Street Office Complex 13 Mangaung Metro Bloemfontein Rhodes Ave, District offices, Free State Oranjesig Psychiatric complex 14 Xhariep Koffiefontein 100 Jacobsdal Road Offices 15 Xhariep Springfontein Site 480 Offices 16 Xhariep Trompsburg Access road from Office building N1 17 Xhariep Zastron 1 Reichenberg District Hospital, Offices Street Free State Department Of Health Accommodation Currently Occupied By User: Leased No. District Town Street Address Asset Type Mangaung Metro Bethlehem Nie Alberts Building Office 2 Thabo Mofutsanyana Ladybrand Marseilles Office 3 Fezile Dabi Sasolburg UBS ABSA Building Office 4 Xhariep Springfontein Site 480 Office 5 Mangaung Metro Bloemfontein Maitland Str Office 6 Thabo Mofutsan ana Senekal Noorde Str Senekal Office 7 Mangaung Metro Bloemfontein 137 St Andrew Office Street Bloemfontein Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Police, Roads And Transport Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 1 Thabo Mofutsanyana Bethlehem Kestel Road Civil T/Mofutsanyana 2 Thabo Mofutsanyana Bethlehem Kestel Road Civil Beth Dihlabeng 3 Thabo Mofutsanyana Bethlehem Kestel Road Revenue T/Mofutsanyana z 4 Thabo Mofutsanyana Kestell Kestel Road Traffic T/Mofutsanyana 0 5 Thabo Mofutsanyana Ficksburg Van Jaarsveld Testing Station 6 Thabo Mofutsanyana Harrismith Lindley Street Office 7 Thabo Mofutsanyana QwaQwa Industrial area QwaQwa M/Phofung :E 0::: 8 Thabo Mofutsanyana QwaQwa Industrial area Testing Station 0 9 Thabo Mofutsanyana QwaQwa Industrial area T/Mofutsanyana LL. Warehouse 10 Xhariep Bethulie Street address if Xhariep DC Revenue z applicable - 11 Mangaung Metro Bloemfontein 26 Hartley Street Roads Infrastructure ...J 12 Mangaung Metro Bloemfontein 28 Hartley Street Roads Infrastructure 17 Lejweleputswa Bothaville Skoupad Registration 21 Lejweleputswa Bultfontein Street address if Roads Camp applicable 22 Lejweleputswa Bultfontein Joubert Street Registration office 23 Thabo Mofutsanyana Clocolan Mulutisingel Street Traffic Office 24 Xhariep Dealesville Market Street Registration Administration office 25 Mangaung Metro Dewetsdorp Stasieweg Roads Infrastructure Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free State Department of Police, Roads and Transport Accommodation Currently Occupied by User: State Owned Buildings No. District Town Street Address Asset Type 26 Mangaung Metro Dewetsdorp Station Street Motheo DC Revenue 27 Xhariep Edenburg Reitz Steyn Street Xhariep DC Revenue 28 Xhariep Edenville RIA Police Station Registration and Traffic Grounds Offices 29 Mangaung Metro Excelsior Fourie Street Motheo DC Revenue 30 Xhariep Fauriesmith 1 Piet Retief Street Roads Infrastructure 31 Xhariep Fauriesmith 60 Voortrekker Street Xhariep DC Revenue 32 Fezile Dabi Frankfort 22 Viljoenstraat Road Office 33 Fezile Dabi Frankfort 22 Viljoenstraat Registration and Traffic Offices 34 Fezile Dabi Heilbron 80 Steilstraat Road Office 35 Fezile Dabi Heilbron 80 Steyn Street Registration and Traffic Offices 36 Lejweleputswa Hennenman Next to Correctional Welkom Roads Camp Service 37 Lejweleputswa Hennenman 12 Hertzog Street Registration office 38 Lejweleputswa Hertzogville Street address if Roads Camp applicable 39 Lejweleputswa Hertzogville 514 van Niekerk Registration Street Administration office 40 Lejweleputswa Hoopstad Prins George Street Roads Office Hoopstad 41 Lejweleputswa Hoopstad Kruger Ave Registration Administration office 42 Xhariep Jacobsdal Hoop Street Xhariep DC Revenue 43 Xhariep Koffiefontein 1 Edward Ave Xhariep DC Revenue 44 Fezile Dabi Koppies RIA cnr 1 s, and Registration and Traffic Station Street Offices 45 Fezile Dabi Kroonstad 1 0" Avenue lndustria Regional Roads Office 46 Fezile Dabi Kroonstad 1 0'" Avenue lndustria Roads Office 47 Fezile Dabi Kroonstad 1 0'" Avenue lndustria Area Offices 48 Fezile Dabi Kroonstad 1 0'" Avenue lndustria Training Centre 49 Fezile Dabi Kroonstad 1 0'" Avenue lndustria S.P.I Offices 50 Fezile Dabi Kroonstad 1 0" Avenue Industrial Warehouse Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Police, Roads and Transport Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 51 Fezile Dabi Kroonstad 10 Opern Street Registration and Traffic Offices 52 Fezile Dabi Kroonstad Next to Ultra City on Weighbridge N1 53 Mangaung Metro Ladybrand Voortrekker Street Roads Infrastructure z 54 Mangaung Metro Ladybrand Voortrekker Avenue Motheo DC Revenue 0 55 Mangaung Metro Bloemfontein 301 Church Street Registration and Traffic Offices 56 Lejweleputswa Odendaalsrus Elizabeth Street Registration office !ci: 57 Fezile Dabi Parys RIA King Street Registration and Traffic :E Offices 0::: 58 Xhariep Petrusburg 1 Barnard Street Roads Infrastructure 0 59 Xhariep Petrusburg Allen Street Xhariep DC Revenue z 60 Xhariep Philippollis Colesberg Road Xhariep DC Revenue - 61 Xhariep Reddersburg Brand Street Xhariep DC Revenue 64 Fezile Dabi Sasolburg Cnr Havinga and Registration and Traffic z Zeven Street Offices I.LI 65 Fezile Dabi Sasolburg 1 s Floor Pres DLTC Offices Building Fichardt C) Street • • 66 Mangaung Metro Thaba Nchu (Selosesha) 3079 Tshabang Roads Office Street 69 Xhariep Springfontein C/O Settlers and Piet Xhariep DC Revenue Retief 70 Fezile Dabi Steynsrus 1 King Edward Street Registration and Traffic Offices 71 Mangaung Metro Thaba Nchu Station Street Motheo DC Revenue 72 Lejweleputswa Theunissen Woltemade Street Registration office 73 Xhariep Trompsburg 14 Jan Street Roads Infrastructure 74 Xhariep Trompsburg Jan Street Xhariep DC Revenue Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Police, Roads and Transport Accommodation Currently Occupied by User: State Owned District Street Address Asset Type 75 Lejweleputswa Ventersburg Jappie Fourie Street Registration office 76 Fezile Dabi Viljoenskroon RIA 3 Viel Street Registration and Traffic South Offices 77 Thabo Mofutsanyana Villiers RIA de Beer Street Registration and Traffic Offices 78 Lejweleputswa Virginia 57 Highlands Street Registration office 79 Thabo Mofutsanyana Vrede 16 Brand Street Testing Station 80 Fezile Dabi Vredefort RIA Water Street Registration and Traffic Offices 81 Lejweleputswa Welkom Heerens Street Registration Offices 82 Lejweleputswa Welkom Heerens Street Traffic Office 83 Mangaung Metro Wepener Bergend Street Motheo DC Revenue 84 Lejweleputswa Wesselsbron Second Ave Registration Administration office 85 Lejweleputswa Winburg Old Ventersburg road Area and Regional Office 86 Lejweleputswa Winburg Old Ventersburg road Roads Office 87 Lejweleputswa Winburg 1 Leech Street Registration Administration office 88 Lejweleputswa Winburg Old Ventersburg road Warehouse 89 Xhariep Zastron Magaleen Bridge Xhariep DC Revenue Street Free State Department of Police, Roads and Transport Accommodation Currently Occupied By User: Leased No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein 45 Maitland Street Perm Building 2 Mangaung Metro Bloemfontein Cnr Nelson Mandela Anchor Building & East Burger Street 3 Fezile Dabi Sasolburg Berjan Building Sasolburg Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Public Works and Infrastructure Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein Cnr. St Andrew & OR Tambo House Markgraaf Streets 2 Mangaung Metro Bloemfontein Elizabeth Street Fidel Castro building 3 Mangaung Metro Bloemfontein St Andrew Street Medfontein 4 Mangaung Metro Bloemfontein 18 Hartley Street, Hamilton / Old Hamilton Furniture Factory z 5 Mangaung Metro Bloemfontein 103 Aliwal Street, Strydom House: Arboretum 0 6 Fezile Dabi Kroonstad 63 Orange Street, Works Offices - Kroonstad 7 Fezile Dabi Kroonstad 22 Botha Street, Works Offices Kroonstad !ci: 8 Lejweleputswa Welkom Templest Street, Kopano Hospital, Welkom Works Offices :E 9 Xhariep Trompsburg 15 Dawid Street, Security Offices 0::: Trompsburg 10 Thabo Mofutsanyana QwaQwa 1 Mampoi Street Old Government 0 Building LL. 11 Thabo Mofutsanyana QwaQwa Mampoi Street Works Offices z 12 Thabo Mofutsanyana QwaQwa Mampoi Street House Keeping Offices - ...J 13 Thabo Mofutsanyana Bethlehem 4 Johan Blignaut Works Offices Street Free State Department of Social Development Accommodation Currently Occupied by User: State Owned District Street Address Asset Type Fezile Dabi Frankfort 4 7 41 Seabata Sub Offices Section, Namahadi Townshi 2 Fezile Dabi Kroonstad 20 Cross Street District Offices 3 Fezile Dabi Kroonstad Station Road 37 Parkings 4 Lejweleputswa Boshoff 13 Wessels Street Sub Offices 5 Mangaung Metro Thaba-Nchu 830 Poloko Street Community Centre 6 Mangaung Metro Bloemfontein 31 Dr. Belcher Street District Offices 7 Thabo Mofutsanyana Bethlehem Johan Blignaut Drive Sub Offices 8 Thabo Mofutsanyana Bethlehem Kestell Road Sub Offices 9 Thabo Mofutsanyana QwaQwa Makoane Youth Youth Centre Centre 10 Thabo Mofutsanyana Vrede Phumelela Offices / Containers Munici alit 11 Thabo Mofutsanyana Senekal Boerbok/Kichner Str Sub Offices 12 Xhariep Jagersfontein 2" Avenue Sub Offices Charlesville 13 Xhariep Koffiefontein De Beers Mine 01 Du Block B and Block F Preez Avenue District Offices 14 Xhariep Koffiefontein House No. 44 Gordon Sub Offices Street 15 Xhariep Smithfield 50 Voortrekker Street Sub Offices 16 Mangaung Metro Thaba-Nchu 4701 Poloko Street Old Age Home 17 Mangaung Metro Botshabelo 432 Block A- Old Age Home Botshabelo 18 Thabo Mofutsanyana QwaQwa 6065 Phatsoane Old Age Home Street 19 Mangaung Metro Bloemfontein Old Railway Hostel Children's Home 20 Thabo Mofutsanyana QwaQwa 1809 Mokgethi Street Children's Home 21 Fezile Dabi Tweeling 2" Street Children's Home 22 Fezile Dabi Kroonstad Plot 39 Smaldeel Secure Care Centre Road 23 Mangaung Metro Bloemfontein 28 Drente Road Secure Care Centre Erlich ark 24 Thabo Mofutsanyana QwaQwa Mampoi Street- New Secure Care Phuthadifhaba Centre 25 Mangaung Metro Bloemfontein 28 Drente Road Child Justice Centre Erlich ark 26 Thabo Mofutsanyana QwaQwa Mampoi Road Child Justice Centre 27 Mangaung Metro Bloemfontein 03 Roth Street Victim Empowerment Willows Centre 28 Thabo Mofutsanyana QwaQwa Elizabeth Ross Tshepong 2 Victim Hospital Empowerment Centre Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free State Department of Social Development Accommodation Currently Occupied By User: Leased No. District Town Street Address Asset Type 1 Fezile Dabi Sasolburg N.J. V/D Merwe Office Crescent 2 Lejweleputswa Welkom High Park Building Office 3 Mangaung Metro Botshabelo Industrial area Office 4 Mangaung Metro Bloemfontein Civilia Building Office 5 Mangaung Metro Bloemfontein Phetoho Centre, Gate 8 CYCC z Lovedale Rd, Batho Location, Manqaunq 0 6 Thabo Mofutsanyana Ficksburg 3 Fontein street Office - 7 Thabo Mofutsanyana Phuthaditjhaba Cnr Setai St & Office Motlounq St !ci: 8 Xhariep Rouxville Piet Retief Street (Town Office Hall) :E 9 Xhariep Bethulie 36 Voortrekker Street Office 10 Mangaung Metro Bloemfontein African Life Building St Office 0::: Andrews Street 11 Mangaung Metro Bloemfontein African Life Building St Office 0 Andrews Street LL. 12 Mangaung Metro Bloemfontein Standard Bank Office West Burqer z 13 Mangaung Metro Thaba Nchu Ratlou Complex, J.S Office - Moroka ...J 2 Mangaung Metro Bloemfontein Pres. Brand Street Museum/Offices - C) Presidency • • 3 Xhariep Bethulie 1 Voortrekker Street Museum/Offices 7 Xhariep Smithfield Douglas Street Museum/Offices - Smithfield Caledon River 8 Lejweleputswa Winburg Voortrekker Museum/Offices - Monument Pioneer 9 Mangaung Metro Glen Glen College Museum/Offices - Glen Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Sports, Arts and Culture Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 10 Mangaung Metro Bloemfontein Pres. Brand Street Museum/Offices 11 Lejweleputswa Welkom 8366 Constantia Offices/Miscellaneous 12 Fezile Dabi Sasolburg 6095 Chris Hani Offices/Miscellaneous 13 Mangaung Metro Bloemfontein First Avenue Offices/Miscellaneous 14 Mangaung Metro Thaba-Nchu 103-104 Market Offices/Miscellaneous Square 15 Thabo Mofutsanyane QwaQwa QwaQwa Museum/Offices 16 Mangaung Metro Bloemfontein 37 Elizabeth Street Records Center / Repository 17 Mangaung Metro Bloemfontein 29 Badenhorst Repository Street, Universitas 18 Lejweleputswa Allanridge c/o Caledon & Library Lauchan Street 19 Lejweleputswa Allanridge Stand 30 Nyakallong Library 20 Thabo Mofutsanyana Arlington 813 Arlington Library 21 Mangaung Metro Bloemfontein Boerneef Street, Library Langenhovenpark 22 Thabo Mofutsanyana Bethlehem Pres Boshoff Street Library 23 Thabo Mofutsanyana Bethlehem c/o President Boshoff Library & Cambridge Street 24 Xhariep Bethulie Joubert Street Library 25 Xhariep Bethulie Jim Fouche Street, Library Lephoi 26 Mangaung Metro Bloemfontein 36 Zastron Street Office & Storage 27 Mangaung Metro Bloemfontein 145 Benade Avenue, Library Fichardtpark 28 Mangaung Metro Bloemfontein 18921 Moshoeshoe Library Road, MANGAUNG 29 Mangaung Metro Bloemfontein Preller Plein Vacant Site (library not yet built} 30 Lejweleputswa Boshoff c/o Sen van Niekerk Library & Voortrekker Street 31 Lejweleputswa Bothaville 20 Preller Street Library 32 Mangaung Metro Botshabelo 151 BA Hospital Library Road Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Sports, Arts and Culture Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 33 Mangaung Metro Botshabelo Site 2158, Block E Library 34 Lejweleputswa Brandfort Mothupi Street, Library Majwemaseu 35 Lejweleputswa Brandfort 78 Voortrekker Street Library 36 Lejweleputswa Bultfontein c/o Market & Bosman Library Street 37 Lejweleputswa Bultfontein Basia Street, Phahameng Library z 38 Thabo Mofutsanyana Clocolan Andries Pretorius Street Library 0 39 Thabo Mofutsanyana Clocolan Hlohlolwane Library 40 Lejweleputswa Dealesville Potlaki St, Tshwaranang Library 41 Fezile Dabi Deneysville Refengkgotso Library :E 0::: 42 Fezile Dabi Deneysville c/o Island & Main Street Library 0 43 Xhariep Dewetsdorp Brand Street Library LL. 44 Xhariep Dewetsdorp Morojaneng Library z Xhariep - 45 Edenburg 16 Church Street Library ...J 46 Fezile Dabi Edenville Ngwathe Township Library 56 Xhariep Gariep 17 Hydropark Library 57 Thabo Mofutsanyana Harrismith 62 Warden Street Library 58 Thabo Mofutsanyana Harrismith 2227 Ntshingila Drive, Library lntabazwe 59 Fezile Dabi Heilbron c/o Pierce & Voortrekker Library 60 Fezile Dabi Heilbron Konape St, Phiritona Library Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Sports, Arts and Culture Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 61 Lejweleputswa Hennenman c/o Kerk & Isabella Street Library 62 Lejweleputswa Hennenman 1123 Molefi Street, Library Phomolong 63 Lejweleputswa Hertzogville Pretorius Street Library 64 ThaboMofutsanyana Hobhouse Site 524 Dipalaneng Library 65 Lejweleputswa Hoopstad Buiten Street Library 66 Lejweleputswa Hoopstad 540 MMMasiu St, Library Tikwana 67 Xhariep Jacobsdal Ratanang Library 68 Xhariep Jagersfontein c/o Kerr & Central street Library 69 Xhariep Jagersfontein Seekoei Street, Library ltumeleng 70 ThaboMofutsanyana Kestell Blignaut Street Library 71 Xhariep Koffiefontein 29 Groot Trek Street Library 72 Xhariep Koffiefontein Boitumelong Street, Library Dithlake 73 Fezile Dabi Koppies Dirkie Uys Street Library 74 Fezile Dabi Koppies 1284 New Location, Library Kwakwatsi 75 Fezile Dabi Kroonstad c/o Steyn and Hill Street Library 76 Fezile Dabi Kroonstad Hennie Ludick Street, Library Maokeng 77 Fezile Dabi Kroonstad c/o Koekoe & Louw Library Streets, Maokeng 78 ThaboMofutsanyana Ladybrand c/o Joubert & Voortrekker Library Street 79 ThaboMofutsanyana Ladybrand Matlele Drive, Library Manyatseng 80 ThaboMofutsanyana Lindley 16 A Kerk Street Library 81 ThaboMofutsanyana Lindley 914 Sisula Park, Ntha Library 82 Xhariep Luckhoff Site 121, Relebohile Library 83 ThaboMofutsanyana Mamafubedu Potgieter Street, Library Mamafubedu 84 ThaboMofutsanyana Marquard President Swart Plein/ Library Unie St 85 ThaboMofutsanyana Marquard 846Moemaneng Library Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Sports, Arts and Culture Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 86 Thabo Mofutsanyana Memel Site 461/1 Library 87 Lejweleputswa Odendaalsrus c/o Kerk & Steyn Street Library 88 Lejweleputswa Odendaalsrus Pompey Street Library Kutlwanong 89 Fezile Dabi Oranjeville Site 1113, Oranjeville Ext Library 1 z 90 Fezile Dabi Parys c/o Philip & Schilbach Library Street 0- 91 Fezile Dabi Parys 13 Alan Street Library 92 Fezile Dabi Parys c/o 3ra Avenue & 5m Library !ci: Street, Schonkenville 93 Thabo Mofutsanyana Paul Roux Site 416, Fateng Tse Library :E Ntsho 0::: 94 Xhariep Petrusburg 29 Oas Street Library 0 LL. 95 Xhariep Petrusburg Site 1756, Bolakanang Library z 96 Xhariep Philippollis Voortrekker Street Library - 97 Thabo Mofutsanyana Phuthaditjhaba Mampoi Street (next to Library ...J Community Hall) 107 Thabo Mofutsanyana Senekal John Stone St, Library Matwabeng 108 Xhariep Smithfield c/o Genl. Hertzog & Library Brand Street 109 Xhariep Smithfield 118 Burcher Street Library 110 Lejweleputswa Soutpan lkgomotseng Library Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Sports, Arts and Culture Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 111 Xhariep Springfontein 24 Christian Strauss Library Street 112 Fezile Dabi Steynrus Matlwangtlwang Library 113 Lejweleputswa Theunissen c/o Pienaar & Kerk Street Library 114 Lejweleputswa Theunissen Joel Park Masilo Library 115 Xhariep Trompsburg c/o 78 Voortrekker & Library David Street 116 Thabo Mofutsanyana Tsiame Tsiame Library 117 Fezile Dabi Tweeling 5 Tenth Street Library 118 Thabo Mofutsanyana Tweespruit 5 Peper Street Library 119 Lejweleputswa Venters burg c/o Voortekker & Library Vanandel Streets 120 Lejweleputswa Venters burg Extension Voortekker St, Library Mmamahabane 121 Lejweleputswa Verkeerdevlei Site 23, Tshepong Library 122 Fezile Dabi Viljoenskroon c/o Engelbrecht and Library Mahen Street 123 Fezile Dabi Viljoenskroon Rammolotsi Library 124 Fezile Dabi Villiers 23A Main Street (Hoofd Library Street 125 Fezile Dabi Villiers Mofokeng St, Qalabotjha Library 126 Lejweleputswa Virginia Virginia Gardens Library 127 Lejweleputswa Virginia Meloding Street, Library Meloding 128 Thabo Mofutsanyana Vrede 47 Kuhn Street Library 129 Thabo Mofutsanyana Vrede 1463 Kalifman St, Library Thembalihle 130 Fezile Dabi Vredefort c/o Slabbert and Library Meerholz Streets 131 Thabo Mofutsanyana Warden 8 Agste Street Library 132 Thabo Mofutsanyana Warden Main Street, Ezenzeleni Library 133 Lejweleputswa Welkom 5 Tulbach Street Library 134 Lejweleputswa Welkom 15589c/o Mike Offices & stores Chaotsane & Buick Tshabalala Streets, Motse-Thabon Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Free State Department of Sports, Arts and Culture Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 135 Lejweleputswa Welkom Kopano Complex, Long Library Street, Welkom 136 Xhariep Wepener De Wet Street Library 137 Xhariep Wepener Minnaar Street Library 138 Lejweleputswa Wesselsbron Erwee Street Library z 139 Lejweleputswa Wesselsbron 2353 Motloenya Street, Library 0 MONYAKENG - 140 Xhariep Jacobsdal Jacobsdal Library 141 Xhariep Luckhoff Luckhoff Library !ci: 142 Xhariep Gariepdam Gariep Library :E 143 Xhariep Hydro park Hydro park Library 0::: 144 Fezile Dabi Sasolburg 10 Corner Klasie House 0 Havenga & Meads Street LL. 145 Mafube Frankfort 1213 Municipal Offices Library z Namahadi - 146 Lejweleputswa Welkom 64 Bok Street Library Goldenheights ...J 147 Xhariep Kopanong Trompsburg 55 Voortrekker Street Library Free State Department of Premier Accommodation Currently Occupied by User: State Owned No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein Cnr. St Andrew & Markgraaf Offices ground floor Streets 2 Mangaung Metro Bloemfontein Cnr. St Andrew & Markgraaf Offices 2"u floor Streets 3 Mangaung Metro Bloemfontein Cnr. St Andrew & Markgraaf Offices 3ra floor Streets 4 Mangaung Metro Bloemfontein Cnr. St Andrew & Markgraaf Offices 4"' floor Streets 5 Mangaung Metro Bloemfontein Cnr. St Andrew & Markgraaf Offices 5'" Floor Streets 6 Mangaung Metro Bloemfontein Cnr. St Andrew & Markgraaf Offices 6'" floor Streets 7 Mangaung Metro Bloemfontein Cnr Elizabeth Street and Offices 9"' floor Markgraaf 8 Mangaung Metro Thaba Nchu Old Training Teaching College Main building, ground floor 9 Xhariep Zastron Multipurpose Centre Main building, ground floor 10 Xhariep Trompsburg Booysen Street Main building, ground floor 11 Thabo Mofutsanyana QwaQwa - Tseki Mampoi Street Main building, ground (Phuthaditjhaba) floor 12 Thabo Mofutsanyana QwaQwa - Namahadi Charles Mopedi Stadia Street Main building, ground floor 13 Lejweleputswa Hertzogville Municipal Building Main building, ground floor 14 Lejweleputswa Winburg Municipal Building Main building, ground floor 15 Lejweleputswa Welkom Long Road Kopano Hospital 5'" floor 16 Fezile Dabi Sasol burg Old FNB Building Old FNB Building Free State Department of Premier Accommodation Currently Occupied By User: Leased No. District Town Street Address Asset Type 1 Mangaung Metro Bloemfontein 124 Nelson Mandela Drive Brahman Building 2 Mangaung Metro Botshabelo 1230 E Section 9781 Multifunctional Centre 3 Thabo Mofutsanyana Harrismith 45 Piet Retief Street IT Hub Centre Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Free State Department of Treasury Accommodation Currently Occupied By User: State Owned Buildings No. District Town Street Address Asset Type Mangaung Metro Bloemfontein Elizabeth Street, Bloemfontein Provincial Government Building (Floors 4 to 14 and 20) Free State Department of Treasury z Accommodation Currently Occupied By User: Leased 0 District Street Address Asset Type - Mangaung Metro Bloemfontein St Andrews Street, Office Block Bloemfontein !ci: :E Programme Expenditure 0::: 2015/2016 2016/2017 0 Programme Name Final Actual (Over)/ Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure LL. R'000 R'000 R'000 R'000 R'000 R'000 z Administration 111 214 110 937 277 108 100 107 873 227 - Public Works 1207 288 1206 682 606 1 216 291 1216248 43 Infrastructure ...J Expanded Public 185 793 185 736 57 162 181 162 141 40 Unauthorised, fruitless and wasteful expenditure The Department did not incur unauthorised expenditure during the year, however fruitless and wasteful expenditure amounting to R467 273.36 was incurred during the current financial year. Future plans of the department Infrastructure projects for the Departments of Health and Education will be managed by the Department of Public Works and Infrastructure. Public Private Partnerships The Department did not enter or participate in any PPP for the period under review. Irregular expenditure The Department did not incur any irregular expenditure during the current year under review. Discontinued activities / activities to be discontinued The Department did not discontinue any of its activities during 2016/2017 financial year. New or proposed activities None Supply Chain Management Unsolicitedbid proposals There were no unsolicited bid proposals during the 2016/2017 financial year. SCM processes and systems in place to prevent irregular expenditure All SCM processes and procedures were followed and no form of any irregularities was detected by SCM officeregarding non-compliance. Challenges experiencedin SCM and how theywere resolved The delayed payment of invoices to suppliers posed challenges for payments of within 30 days. Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Gifts and Donations received in kind from non-related parties Name of Organisation Nature of Gift, Donation or Sponsorship 2016/17 R'OOO National Batho Pele Awards - Joined 2nd in the category "Best Ethical Capitec Bank 5 and Professional De artment". The De artment received R5 000. li'i"F.TH":lIii] I :mti Donation of blankets to the communitv. 100 Donation of Provincial Government Properties. 5 398 Donation of food parcels to destitute families. 617 z Exemptions and deviations received from the National Treasury 0 There were no exemptions or deviations received from National Treasury. - Events afterthe reporting date !ci: The Mofomo Construction cc and the Department concluded a settlement agreement on 1 :E June 2017 for the amount of R10 361 249. 01. The Department disclosed R6 million as provision at year-end (Note 25 of the AFS) and the difference of R4.361 million as a non 0:::: adjusting event after the reporting date under Note 26 of the AFS. 0 LL. Financial Sustainability z The Department is contractually bound to pay escalation in rental contracts and increased - tariffs by Municipalities. However, with the high increases in electricity and 10 percent in ...J rental amounts, the Department could not afford the full basket of services and will therefore M?w.Se Accounting Officer Department of Public Works and Infrastructure Date: 31 May 2017 Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT To the best of my knowledge and belief, I confirm the following: All information and amounts disclosed throughout the 2016/2017 Annual Report are consistent. The 2016/2017 Annual Report is complete, accurate and is free from any omissions. The 2016/2017 Annual Report has been prepared in accordance with the guidelines on the Annual Report as issued by National Treasury. The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury. The Accounting Officer is responsible for the preparation of the Annual Financial Statements and for the judgements made in this information. The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the Annual Financial Statements. The external auditors are engaged to express an independent opinion on the Annual Financial Statements. In my opinion, the 2016/2017 Annual Report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the Department for the financial year ended 31 March 2017. Yours faithfully Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 6. STRATEGIC OVERVIEW 6.1 Vision A prosperous Free State through facilitation of sustainable built infrastructure. 6.2 Mission z Coordination, provision, promotion of built infrastructure and sound management of assets. 0- Values 6.3 !ci: The core values below guides the employee's ethical behaviour towards achieving the :E Department's predetermined strategic objectives: 0::: Core Values Description Commitment We will perform tasks purposefullv within available resources to deliver aualitv service. 0 People-Centred Putting "People First" will be our priority aimed at improving service deliveryto citizens. LL. Teamwork We will collaborate as a team and together assist with the realization of government priorities. z Responsiveness All tasks will be attended to timeously and diligently. - Fairness The Department will implement its strategy as planned and serve the citizens without bias and prejudice. ...J Transparency We will provide the citizens with reliable information about decisions and performance of the Department. • Occupational Health and Safety Act, 1993 (Act No. 85 of 1983) • Free State Land Administration Act, 1998 (Act No. 1 of 1998) • Construction Industry Development Board (CIDB) Act, 2000 (Act No. 38 of 2000) • Compensation for Occupational Injuries and Disease Act, 1993 (Act No. 130 of 1993) • Preferential Procurement Policy Framework Act (PPPFA), 2000 (Act No. 5 of 2000) • Broad Based Black Economic Empowerment Act 2003, (Act No. 53 of 2003) • State Information Technology Agency, 1998 (Act No. 88 of 1998) • The Expropriation Act, 1975 (Act No. 63 of 1975) • The Mineral Act, 1991 (Act No. 50 of 1991) • The National Veld and Forest Fire Act, 1998 (Act No. 101 of 1998) • Policy document on the Statutory Regulation of the Built Environment Professionals, 1999 • White Paper: Public Works towards the 21st Century, 1997 • Control of Access to Public Premises and Vehicles Act, 1985 (Act No. 53 of 1985) • Government Immovable Asset Management Act, 2007 (Act No. 19 of 2007) Macro- Structure of the Department co MEMBER OF EXECUTIVE COUNCIL 0 '1, ;;o I HEAD OF DEPARTMENT I )> I z "'� I I I I - "' Corporate en 8" Internal & Human nl" Audit Legal Service Information Resource Directorate Directorate Communication Management � Technology Directorate " RMocwaledl Adv KMoletse Directorate S Diakos 0 B Ntombela z "'� )> r- .g, I I I I I en C: Chief Financial Strategic Works Design, Property ,., & EPWP -I Officer Planning, Monitoring Construction Management and Evaluation Chief ;;o � Chief Chief Maintenance Housekeeping Directorate "' Directorate Chief Directorate Chief Directorate � Directorate C: " M Tshabalala :, J Maphlsa S Mtolo M Ndlebe MG Zake 0 I -I I C: � I I ;;o m C: C: Strategic Sector Research Project Management Immovable & Coordination & Monitoring Unit Assets - Compliance Finance - Management 1 c:, Monitoring Management Evaluation Directorate Directorate - AR Geldenhuys Directorate Directorate - MANtllane c:, J Motsle PG Maslteng N Jordaan " Infrastructure Client Strategic Services & :, Planning, & Facllltles Real EPWP C: Service MP Mofokang Estate (Property Community Supply Chain Delivery - Portfolio) Development Management Improvement - Directorate - (Resigned 6 March Directorate Directorate Directorate 2017) - (Vacant) I de Beer J Seetsl ,.... And advertised KRadebe Works Construction nl" and Maintenance "' Operational (Vacant) - EPWP SCM Assets Property 1- Innovation & And advertised Management Management 1- Empowennent S Magashule Sub- Directorate Directorate L Khumalo (Vacant) And advertised Security Services 1- M. Mofokeng PART A: GENERAL INFORMATION FreeState Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vote 9 PART B: PERFORMANCE INFORMATION Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vote 9 CONTENTS 1. AUDITOR GENERAL'S REPORT: PREDETERMINED OBJECTIVES 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 2.1 Service Delivery Environment 2.2 Service Delivery Improvement Plan 2.3 Organisational environment 2.4 Key policy development and legislative changes 3. STRATEGIC OUTCOME ORIENTED GOALS 4. PERFORMANCE INFORMATION BY PROGRAMME 4.1 Programme 1: Administration 4.2 Programme 2: Public Works Infrastructure 4.3 Programme 3: Expanded Public Works Programme 5. TRANSFER PAYMENTS 5.1 Transfer payments to municipalities 6. CONDITIONAL GRANTS 83 6.1 Conditional Grants 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 management plan 86 Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 1. AUDITOR GENERAL'S REPORT: PREDETERMINED OBJECTIVES The AGSA currently performs certain audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. AGSA did not identify any material findings on the usefulness and reliability of the reported performance information for Programmes 2 and 3. Refer to page 154 of the Report of the Auditor General, published as Part E: Financial Information. 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 2.1 Service Delivery Environment The environment which the Department of Public Works and Infrastructure functions is discussed below. 2. 1.1 Programme 2: Public Works Infrastructure 2. 1.1. 1 Planning Sub-Programme As custodian for Provincial Government owned properties the Department facilitated the development of the User Immovable Asset Management Plans (U-AMPs) in the Province and this information was utilised to develop the Custodian Immovable Asset Management Plan (C-AMP). Client Departments submitted their needs which were included in the C-AMP to request funding for office accommodation as well as maintenance of government buildings. 2.1.1.2 Design, Construction and Maintenance Sub-Programme The mandate of the Department of Public Works and Infrastructure includes the delivery of social infrastructure which supports quality life and the foundation of a healthy economy. In collaboration with client departments, 68 projects were executed and the Department has successfully completed 34 of these for the financial year under review, inclusive of four schools and the upgrading of gravel roads in various townships across the Province. The breakdown of completed projects for own and client department is depicted in the table below: Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 2. 1.1.3 Immovable Asset Management Sub-Programme Leasing of office accommodation will form part of overall accommodation strategy where there is no viable government accommodation alternative and the Department will only lease office buildings that are ideally located and positioned in order to facilitate optimal service delivery by User Departments in line with the objectives of GIAMA and as outlined in the U-AMPs of User Departments. In line with this, the Department must respond to the countries transformation objectives which is very difficult given the fact that the province has a limited number of black landlords to lease office accommodation. In order to address the Provinces' maintenance backlog, condition assessments have been conducted on 20 government owned buildings to inform maintenance needs of these buildings. The maintenance of the properties is however dependant on the budget allocated for the financial year. Disposal of 12 residential properties of which 6 through sale and 6 were donated. With regards to acquisition, the Department of Public Works and Infrastructure has initiated the process of transferring the Industrial Court into the name of the Free State Provincial Government. 2. 1. 1.4 Facility Operations Sub-Programme The Department planned to render security services at 21 buildings occupied by more than one department but due to unforeseen circumstances during the financial year the target was exceeded by 23. Therefore security services were rendered at 44 buildings. However, 14 sites were transferred to the Department of Police, Roads and Transport with effect from 1 October 2016 and the additional 9 sites (mostly infrastructure projects) were rendered with security services on an adhoc basis. 2.1.2 Programme3: Expanded Public Works Programme This Programme involves provincial management and coordination of the Expanded Public Works Programme. It is responsible to coordinate the implementation of programmes and strategies that leads to the development and empowerment of communities and emerging contractors. Emphasis is on unskilled labour that will be trained to enable these unskilled and impoverished communities' self-sufficiency once the Programme is completed. The Provincial EPWP has created 58 218 work opportunities and 23 302 full time equivalent jobs across all spheres of government during the period under review. The Department has created 3 964 work opportunities through the implementation of five community development initiatives, namely: Cash for Waste, Community Work Programme, Cleaning and Greening, Township Revitalisation Programme and Community Halls Maintenance. The Department has embarked on National Youth Service Programme and it managed to recruit 124 young people for the 2016/2017 financial year. Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 This programme focuses on equipping the young and unemployed youth with technical skills required in the built environment. Through this National Youth Service Programme, the Department also facilitated Artisan Development Programme under Electrical Apprenticeship, six (6) learners were trade tested and were found competent as fully qualified Artisans in May 2016. This achievement has now accumulated to 33 qualified Artisans since the recruitment in 2013. The Department resuscitated its Contractor Development Programme in partnership with the Department of Police, Roads and Transport where thirty-eight (38) Leaner Contractors are participating and 21 of them are women. This programme has been short-listed as a finalist in the category of the Most Innovative Women Training Programme Award for the 5th Annual Women in Construction Awards. 2.2 Service Delivery Improvement Plan The Departmental Service Delivery Improvement Plan is a three year plan covering the MTEF period 2015 - 2018. The Department receives client department's projects lists and act as implementing agent for provincial departments. Budgets for client projects are under the different Department's votes. The Department liaise with client departments, contractors and consultants on a regular basis to try and resolve threats that will hamper completion of projects within time. Common problems during implementation of infrastructure projects include projects stopped due to litigation between contractor and employer, contractors placed in mora when progress is too slow, inclement weather, rising in material costs. Four projects were completed within time and budget. Main services and standards Main services Beneficiaries Current/actual Desired standard Actual achievement standard of service of service Delivery of Client Departments 96% of projects to be 96% of projects to Four projects were Government completed within budget be completed within completed on behalf of the Infrastructure. and contract time. budget and contract Department of Education time. which is one of the provincial client departments. These projects are: • QwaQwa Matsikeng School • Cornelia Ntswanatsatsi Primary School • Memel Umcebo New Primary School • Sasolburg Kopanelang Thuto Primary School Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 Batho Pele arrangements with beneficiaries (Consultation access etc.) Bilateral project meetings with client Bilateral project meetings with client Two Bilateral meetings were held. departments. departments. Fortnightly site and technical meetings Fortnightly site and technical meetings Monthly site meetings held with with contractors, consultants and with contractors, consultants and implemented projects. internal project leaders. internal project leaders. Done in the Bilateral meetings and if Done in the Bilateral meetings and if There were no issues raised to be there is no solutions, complaints are there is no solutions, complaints are reported for the 2016/2017 financial escalated to the Head of Department. escalated to the Head of Department. year...... All stakeholders must have a All stakeholders must have a Variation orders are approved by comprehensive analysis of any comprehensive analysis of any relevant Heads of Departments. Proof variations from the original variations from the original is kept and projects are implemented specification and any particular specification and any particular as such. reasons that require extension of the reasons that require extension of the original contract duration period. original contract duration period. Service deliveryinformation tool Current/actual information tools Desired information tools Actual achievements 2016/2017 Service Delivery Charter. Evaluated progress report to ensure Progress reports were monitored on improved standards are maintained as on a quarterly basis and presented at the Charter. the Departmental Quarterly Progress Review meetings. A complaint was lodged for payment of maintenance into a personal bank account by an official from the Department of Justice. A response was given within 2 days as it was an unfair request not allowed by Provincial Treasury. 2016/2017 Service Standards. All officials informed on Batho Pele 222 officials were informed in the 1------l Batho Pele Change Management Change Management Engagement 2016/2017 financial year. Engagement Programme. Programme. Complaints mechanism Current/actual complaints Desired complaints mechanism Actual achievements mechanism Complaints and queries are handled by • Receipt of the complaint must be Only one complaint was received and the Service Delivery Improvement Sub acknowledged within three working resolved. directorate. days. Ways of lodging complaints can be • Queries handled and feedback done: provided within 7 working days of • In person reporting. • In Writing • If complainant is not satisfied with • Telephonically the outcome, the office of the Head • E-mail of the Department's contact details is provided on the Service Charter. Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 2.3 Organisational environment Challengesand Successes The posts forthe two line function Programme Managers (Works Design, Construction & Maintenance and Expanded Public Works Programme) were filled in July 2016. Also 197 Security Learners were transferred from 1 October 2016 to the Department of Police, Roads and Transport. No serious system failures were experienced and the upgrade of the Telephone System to Voice over Internet Protocol (VOiP) was completed for 12 sites. Communication systems in the Department were up and running for the year. In-house Contract Management System was developed and implemented. 2.4 Key policy developments and legislative changes • Public Service Regulations 2016 came into effect on 1 August 2016 as an amendment to the Public Service Regulations of 2001. • Amendment to the Labour Relations Act (LRA} of 1995 Section 198 (B) Regulation of non-standard employment and EPWP (Reduced cases of entitlement to permanent employment). • Preferential Procurement Regulations 2017 issued in terms of the Preferential Procurement Policy Framework Act (PPPFA), 2000. Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 3. STRATEGIC OUTCOME ORIENTED GOALS The table below covers information on progress on the Department's four strategic outcome oriented goals and its relationship to the NDP chapters and the 14 MTSF. Strategic Outcome Oriented A working environment geared towards improved service delivery Goal 1: National MTSF. Ou come P.rogress (2015/2016-2016/2017} Cha tel'. 13: Building a capable state Outcome 4: Decent employment The Department appointed 121 officials in vacant throu h inclusive rowth. osts. 9: Improving education, Outcome 5: A skilled and capable In line with planned Workplace Skills Plan (WSP), innovation workforce to support an inclusive four training interventions were facilitated, growth path. inclusive of Compulsory Induction Programme and training (CIP) for new appointees and 51 professional re istration. Outcome 12: An efficient, effective From the 121 appointments made, 43 were of and development oriented Public technical nature and the representation of women Service. at Senior Management Services comprises of 50%. Representation of differently abled staff at Senior Mana ement level remains a challen e. 15: Transforming society and Outcome 14: Transforming society Information sessions on the following were uniting the country and uniting the country. facilitated to empower vulnerable groups: The following was dealt with by the HRC: Sexual harassment in the Workplace, gender issues, eradication of forced labour, attainment of equality in the workplace, human dignity for workers and racism and xenophobia. SARS also facilitated an information session in terms of benefits for le with disabilities. 4: Economic Infrastructure 6: An efficient, competitive and 65 Projects were completed. responsive economic infrastructure network. 6: An integrated and Inclusive 7: Vibrant, equitable, sustainable rural Township revitalisation has been done in 20 towns rural econom communities. within the Free State. 13: Building a capable state 12: An efficient, effective and Professional registration of 51 officials within the development oriented public service. Department. 13: Building a capable state 12: An efficient, effective and Nine black landlords were appointed for office development oriented public service. accommodation. 8: Transforming Human 8: Sustainable human settlements The Department assisted the Department of Settlements and improved quality of household Human Settlements with the building of 16 houses life. in Ficksbur . 3: Economy and Employment 4: Decent employment through 6 488 work opportunities were created by the >------< inclusive growth. De artment. 9: Improving education, A total of 605 participants completed training on innovation and training Skill programme through Township Revitalisation Programme. 127 NYS participants are still continuin with RPL trainin . 3: Economy and Employment Facilitation of 111 933 work opportunities that are created within the Province. Free State Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vate 9 4. PERFORMANCE INFORMATION BY PROGRAMME 4.1. PROGRAMME 1: ADMINISTRATION Purpose The aim of Programme 1: Administration is to provide the Department with administrative, strategic management, financial management and corporate services in order to ensure that the department delivers on its mandate in an integrated, efficient, effective and sustainable manner. The Programme is subdivided into the following Sub- Programmes: • Office of MEC • Management of the Department *Sub-sub-programme Internal Audit Sub-sub-programme Enterprise Risk Management Sub-sub-programme Internal Control • Corporate Support: Sub Programme Sub-sub-programme Corporate Services Sub-sub-programme Special programmes Sub-sub-programme Research, Monitoring and Evaluation Sub-sub-programme Information Communication Technology Sub-sub-programme Finance Sub-sub-programme Legal Services * Sub-sub-programme InternalAudit - discussed under Corporate Support Sub-Programme Strategic objectives Strategic Objectives Sub-Programme/Sub sub-programme 1.1. Create and sustain a supportive working environment Human Resource Management through filling 315 funded vacancies to meet human capital requirements by 2020. 1.2. Strengthen leadership by developing personnel through Human Resource Development relevant training interventions. 1.3. Provide programmes for healthy, dedicated, responsive and Employee Health & Wellness productive employees within the public service. 1.4. Ensurecompliance to principles of good governance. Finance Internal Audit Legal Services 1.5. Fostering of an enabling environment that translates Special Programmes constitutional obligations, legislation, policies and frameworks into the realisation of human rights, empowerment, equality and human dignity for women, children and people living with disabilities. 1.6. Create and sustain a performance culture within the Department Research, Monitoring and Evaluation by ensurina reliable proaress information by 2020. 1.7. Evaluate the efficiency and effectiveness of business processes and interventions in the Department by conducting studies on areaswhere aaps were identified. 1.8. Implement Corporate Governance of Information Information Communication Technology Communication Technology (CGICT). 1.9. Render effective internal and external communications in the Department. Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 4.1.1 Corporate Services Sub-sub-programme Purpose The Sub sub-programme is responsible for managing the human resources strategies and polices and career development strategies to improve Department efficiency. Strategic objectives. performance indicators. planned targets and actual achievements Strategic Objective 1.1: Create and sustain a supportive working environment through filling 315 funded vacancies to meet human capital requirements by 2020 Programme 1: Administration Strategic objective Actual Planned Actual Deviation from Comment on Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Cor orate Services: Strate ic ob"ective Annual Tar et. 1.1. Create and 70 50 51 2% The over sustain a achievement of 2% supportive emanates from working unforeseen natural environment attrition. through filling 315 funded vacancies to meet human capital requirements b 2020 Strategic Objective 1.2: Strengthen leadership by developing personnel through relevant training interventions Programme 1: Administration Strategic objective Actual Planned Actual Deviation from Comment on Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Cor orate Services: Str te ic olfective Annual Tar et. 1.2. Strengthen 4 4 4 0% leadership by developing personnel through relevant training interventions Strategic Objective 1.3: Provide programmes for healthy, dedicated, responsive and productive employees within the public services. Programme 1: Administration Strategic objective Actual Planned Actual Deviation from Comment on Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Cor ora e Services: S ra e ic o6"ective �nnual Tar e . 1.3. Provide 4 4 4 0% programmes for healthy, dedicated, responsive and productive employees within the ublic services. Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 Performance indicators Strategic objectives 1.1: Create and sustain a supportive working environment through filling 315 funded vacancies to meet human capital requirements by 2020 Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Non-Cus omised i>eiformance indicato� Number of 50 51 2% The over achievement people of 2% emanates from appointed in unforeseen natural funded attrition. vacancies. Strategic Objective 1.2: Strengthen leadership by developing personnel through relevant training interventions Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Non-Cus omised l)eiformance indica o� Number of 4 4 4 0% training interventions implemented. Strategic Objective 1.3: Provide programmes for healthy, dedicated, responsive and productive employees within the public services. Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Non-Customised l)erformance indicato� Number of 4 4 4 0% wellness interventions implemented. Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 4.1.2 Special Programmes Sub-sub-programme Purpose Advocate, monitor and coordinate Departmental policies related to adherence of frameworks pertaining to the vulnerable groups namely, elderly, women, youth, people living with disability and children. Strategic objectives. performance indicators. planned targets and actual achievements Strategic Objective 1.5: Fostering of an enabling environment that translates constitutional obligations, legislation, policies and frameworks into the realisation of human rights, empowerment, equality and human dignity for women, children and people living with disabilities Programme 1: Administration Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievemen Target Achievemen from planned deviations Indicator t 2015/2016 2016/2017 t target to 2016/2017 Actual Achievement for 2016/2017 1.5. Fostering of an Empowered 864 870 360 -59% Officials only enabling vulnerable attend sessions of environment groups interest to them. that translates E.g. gender constitutional mainstreaming obligations, sessions are better attended by legislation, women. policies and frameworks into the realisation of human rights, empowerment, equality and human dignity for women, children and people living with disabilities. Sessions are attended according to the interest The unit will engage with heads of directorates to encourage them of employees. to release their employees to attend planned sessions within the department and perhaps provide names in advance of officials who will be released to form art of the sessions. Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 Strategic Objective 1.5: Fostering of an enabling environment that translates constitutional obligations, legislation, policies and frameworks into the realisation of human rights, empowerment, equality and human dignity for women, children and people living with disabilities Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Non-Customised �erformance indicator Number of 17 18 20 11% The reasons for over interventions in performance are as place for follows: vulnerable groups. The event on Woman to Woman hosted by a local based woman-owned company, Sisonke Communications whereby 50 Departmental female employees participated was not anticipated. However, the event presented the Department with an opportunity to address objective 'Change attitudes and behaviour in relation to gender issues and xenophobia'. Due to changes at SARS in terms of benefits for people with disabilities that necessitated an information session for people with disabilities. Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 4.1.3 Research, Monitoring and Evaluation Sub-sub-programme Purpose The Sub sub-programme is responsible for facilitating the development of the Departmental strategic plan, service delivery improvement initiatives, performance monitoring and reporting as well as evaluating Departmental performance in relation to achievements of predetermined strategic objectives. Strategic objectives. performance indicators. planned targets and actual achievements Strategic Objective 1.6: Create and sustain a performance culture within the Department by ensuring reliable progress information by 2020 Programme 1: Administration Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievement Target Achievement from planned deviations Indicator 2015/2016 2016/2017 2016/2017 target to Actual Achievement for 2016/2017 1 .6. Create and Citizen- 8 9 7 -22% Due to sustain a oriented pressing performance frontline unplanned culture offices priorities some within the Department offices could by ensuring not attend on reliable dates progress scheduled. information b 2020. Reasons fordeviations � Due to pressing unplanned priorities some offices could Agree with programme or office managers to come up not attend on dates scheduled. with alternative dates when a session cannot take place. Reminders from 2 days before session to confirm lo istics. Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 Strategic Objective 1. 7: Evaluate the efficiencyand effectiveness of business processes and interventions in the Department by conducting studies on areas where gaps were identified. Programme 1: Administration Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievement Target Achievement from planned deviations Indicator 2015/2016 2016/2017 2016/2017 target to Actual Achievement for 2016/2017 1.7. Evaluate the Service 3 3 2 -33% Capacity efficiency Delivery gaps constraints. and identified Only one effectiveness dedicated of business processes official and currently in the interventions Research and in the Development Department Sub by directorate. conducting studies on areas where gaps were identified. Target was lowered according to changed 2017/2018 financial ear. Strategic Objective 1.6: Create and sustain a performance culture within the Department by ensuring reliable progress information by 2020 Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on deviations Indicator Achievement Target Achievement planned target to 2015/2016 2016/2017 2016/2017 Actual Achievement for 2016/2017 Non-Customisecl r:>eiformance inclicator Number of 603 220 222 0.9% Officials who could not Officials attend previous sessions informed on were nominated to attend Batho Pele the last session. Sessions Change Management are done in-house with no engagement financial implications. pro ramme. Strategic Objective 1. 7: Evaluate the efficiencyand effectiveness of business processes and interventions in the Department by conducting studies on areas where gaps were identified. Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on deviations Indicator Achievement Target Achievement planned target to 2015/2016 2016/2017 2016/2017 Actual Achievement for 2016/2017 Non-Customisecl r:>eiformance inclica or Number of 2 2 0% completed evaluation re arts Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 4.1.4 Finance Sub-sub-programme Purpose Responsible for strategically managing finance related matters with regard to development of efficient and effective procurement, financial management systems including budgetary controls Strategic objectives, performance indicators,planned targets and actual achievements Strategic objective 1.4: Ensure compliance to principles of good governance. Programme 1: Administration Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievement Target Achievement from deviations Indicator 2015/2016 2016/2017 2016/2017 planned target to Actual Achievement for 2016/2017 F.inance: Strategic objective Annual iTarget. 1.4. Ensure Departmental R1.321m R1.894m R4.461m 135.5% The Department compliance revenue collected more to principles generated. revenue due to of good payment received governance. from: • DIRCO = R387 156.78 • Insurance Claim (Centlec) = R234 950.87 • Fleet Management (Credit Note) = R549 034.89 • Revenue received (Injury on Duty Claims)= R1 236 841.93 and R170 597.22 Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 Strategic objective 1.4: Ensure compliance to principles of good governance. Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Non-Customisecl fJenormance inclicator Amount of R3.282m R1.894m R4.461m 135.5% The Department Revenue(Finance collected more income) collected revenue due to payment received from: • DIRCO = R387 156.78 • Insurance Claim (Centlec) = R234 950.87 • Fleet Management (Credit Note) = R549 034.89 • Revenue received {Injury on Duty Claims) = R1 236 841.93 and R170 597.22 4.1.5 Information Communication Technology Sub-sub-programme Purpose Render effective, efficient and professional Information and Communication Technology (ICT) services to the department with excellent people, processes and technology to optimise service delivery by the Department of Public Works and Infrastructure Strategic objectives. performance indicators. planned targets and actual achievements Strategic objectives 1.8: Implement Corporate Governance of Information Communication Technology (CGICT). Programme 1: Administration Strategic Strategic Actual Planned Actual Deviation from Comment Objective Objective Achievement Target Achievement planned target on Indicator 2015/2016 2016/2017 2016/2017 to Actual deviations Achievement for 2016/2017 Information Communication iTechnology: Strategic objective Annual Target. 1.8. Implement Improved ICT 2 0% Corporate in the Governance of Department. Information Communication Technology CGICT . Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 Strategic objectives 1.9: Render effective internal and external communications in the Department. Programme 1: Administration Strategic Strategic Actual Planned Actual Deviation from Comment Objective Objective Achieveme Target Achieveme planned target on Indicator nt 2016/2017 nt to Actual deviations 2015/2016 2016/2017 Achievement for 2016/2017 Communication: Strategic objective Annual iTarget 1.9. Render effective Improved 0% internal and Communications external Systems in the communications Department in the Department. Strategic objectives 1.8: Implement Corporate Governance of Information Communication Technology (CGICT). Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation Comment on deviations Indicator Achievement iTarget Achievement from 2015/2016 2016/2017 2016/2017 planned target to Actual Achievement for 2016/2017 Non-Customisecl performance inclicator Number Deliverables developed in line with the Corporate governance of ICT Policy Framework Number of 2 -50% The implementation of Information Automation of Key Control Systems Matrix (KCM) has been Implemented in deferred to 2017/2018 support of the financial year due to the Department's prioritised additional Mandate information systems as part of the Provincial ICT Shared Services (Provincial e-leave system and Works Infrastructure e-Filing System) as well as the invoice tracking system. Reasons fordeviations � Prioritised additional information systems as part of the The implementation of Automation of Key Control Matrix Provincial ICT Shared Services (Provincial e-leave (KCM) has been deferred to 2017/2018 financial year. s stem and Works Infrastructure e-Filin S stem . Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 Strategic objectives 1.9: Render effective internal and external communications in the Department. Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Non-Customised erformance indicator Number of 4 4 -75% The execution of the Departmental project has been buildings with suspended due to improved re prioritisation of signage funds. The allocated funds were used for the payment of the Free State Global Investors Tradebridge and the project has been deferred to 2017/2018. Reasons for deviations to overcome areas of under Funds were used for the payment of the The project has been deferred to 2017/2018. Global Investors Tradebrid e. 4.1.6 Internal Audit Sub-sub-programme Purpose Responsible for assisting the Department to accomplish its objectives by applying a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal control and governance processes. Strategic objectives. performance indicators. planned targets and actual achievements Strategic objectives 1.4: Ensure compliance to principles of good governance. Programme 1: Administration Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievement Target Achievement from planned deviations Indicator 2015/2016 2016/2017 2016/2017 target to Actual Achievement for 2016/2017 1.4. Ensure Risk areas in 5 8 14 75% The compliance the Department's to principles Department strategic risks of good reduced. decreased governance. from 30 to 16 risks at the end of the financial ear. Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 Strategic objectives 1.4: Ensure compliance to principles of good governance. Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Non-Customisecl eiformance inclica or Number of audits 14 21 21 0% performed, including risk based audit reviews, compliance audits and mandatory uarterl assessments. 4.1.7 Legal Services Sub-sub-programme Purpose Provide legal expertise and opinion regarding legislation, policies and contracts relevant and applicable to the Department. Strategic objectives. performance indicators. planned targets and actual achievements Strategic objectives 1.4: Ensure compliance to principles of good governance. Programme 1: Administration Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievement Target Achievement from planned deviations Indicator 2015/2016 2016/2017 2016/2017 target to Actual Achievement for 2016/2017 C:egal Services: Strategic o6jective �nnual Target. 1.4. Ensure Contracts 200 170 210 24% Legal compliance managed to Services is a to principles protect the support and of good Department demand governance. against driven litigation service. It does not plan, manage or execute contracts. Free State Department af Public Warksand Infrastructure 2016/2017 Annual Repart, Vate 9 Strategic objectives 1.4: Ensure compliance to principles of good governance. Programme 1: Corporate Support Sub programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievemen planned target deviations 2015/2016 2016/2017 t to Actual 2016/2017 Achievement for 2016/2017 Non-Customisecli:,eiformance inclica or Number of 306 100 84 -16% The residential contracts underperformance signed by both was as a result of parties. some outstanding contracts from the Departments of Health and Agriculture and Rural Development. Number of New 2 25 1 150% There were more construction\ requests for drafting maintenance and facilitation of contracts signed by contracts than both parties. anticipated as the target is dependent on external variables. Reasons for deviations � Legal Services drafts, facilitate signing of contracts Legal Services will continuously engage with relevant upon requests from various Directorates within the Directorate(s) to ensure that the planned target is De artment. achieved. Linking performancewith budget Sub-programme expenditure 2015/2016 2016/2017 Sub- Final Actual (Over)/Under Final Actual (Over)/Under Programme Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure Name R'000 R'000 R'000 R'000 R'000 R'000 Corporate 91 422 91166 256 87404 87275 129 Suooort Total 91 422 91 166 256 87404 87275 129 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.2 PROGRAMME 2: PUBLIC WORKS INFRASTRUCTURE Purpose The programme is aimed at providing a balanced, equitable provincial government building infrastructure by promoting accessibility that is sustainable, integrated and environmentally sensitive and supports economic development and social empowerment. Programme 2 consists of the following Sub-Programmes: • Sub Programme Planning, • Sub Programme Design, • Sub Programme Construction, • Sub Programme Maintenance, • Sub Programme Immovable Asset Management, • Sub Programme Facility Operations; Sub sub-programme Operational Property and Housekeeping Sub sub-programme Security Services Strategic Objective Strategic Objectives Sub-Programme/Sub sub-programme 2.1. Complete 100% approved infrastructure designs in Design accordance with built sector norms and standards. 2.2. Facilitate and promote sustainable infrastructure by Construction completing 95% of approved construction and maintenance projects within contract time and budget Maintenance in accordance with built sector norms and standards. 3.1. Manage provincial government owned and leased Planning immovable assets effectively in terms of Government Immovable Asset Manaqement Immovable Asset Management Act prescripts. Facility Operations: Operational Property and Housekeeping 3.2. Provide a safe and secure environment in 35 Facility Operations: Security Services government buildings. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.2.1. Planning Sub-Programme Purpose The Sub-Programme is responsible for managing the demand for infrastructure by developing; monitoring and enforcing built sector and property management norms and standards. Strategic objectives.performance indicators. planned targets and actual achievements Strategic Objective 3.1: Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset Management Act prescripts. Programme Name: Sub-Programme Planning Strategic Actual Planned Actual Deviation from Comment on Objective Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 3.1: Manage 0% provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset Management Act rescri ts. PerformanceIndicator Programme Name: Sub-Programme Planning Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Customisecl Performancelnclicators submitted to the relevant Treasury in accordance with GIAMA 2015/2016 2016/2017 Final Actual (Over)/Under Final Actual (Over) Appropriation Expenditure Expenditure Appropriation Expenditure /Under Expenditure --R'000 R'000 R'000 �--R'000 R'000 R'000 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.2.2. Design Sub-Programme Purpose The Sub-Programme is responsible for the design of new and upgrading of building infrastructure by focusing on project inception, concept design, design development and project documentation. Strategic objectives.performance indicators. planned targets and actual achievements Strategic Objective 2.1: Complete 100% approved infrastructure designs in accordance with built sector norms and standards. Design Sub-Programme Strategic Actual Planned Actual Deviation from Comment on objective Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 2.1 Complete 6 2 2 100% approved infrastru ctu re designs in accordance with built sector norms and standards. Design Sub-Programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Cus omised Performance lndica ors Number 6 2 2 Infrastructure designs ready for tender Sub-programme expenditure Sub- 2015/2016 2016/2017 Programme Final Actual (Over)/Under Final Actual (Over)/Under Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R'000 R'000 R'000 R'000 R'000 R'000 Total 18 330 18 291 39 20 875 20 868 7 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.2.3. Construction Sub-Programme Purpose The Sub-Programme is responsible for new construction, upgrading and refurbishment of infrastructure by focusing on construction period, contract administration and projects close out and debriefing. Strategic objectives.perlormance indicators.planned targets and actual achievements Strategic objective 2.2: Facilitate and promote sustainable infrastructure by implementing 95% of approved construction and maintenance project within contract time and budget in accordance with built sector norms and standards Construction Sub-programme Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievement Target Achievement from deviations Indicator 2015/2016 2016/2017 2016/2017 planned target to Actual Achievement for 2016/2017 2.2 Facilitate Construction 9 19 4 -78.9% Under and promote of Projects achievement sustainable for Clients is due to the i nfrastructu re Departments. fact that the by completing Department 95% of does not have approved control of the construction clients and department's maintenance budget to projects within ensure contract time completion of and budget in projects within accordance contract time with built sector and budgets. norms and standards. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Performance Indicator Construction Sub-programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2015/2016 Customisecl Performance lnclicators Number of capital 18 28 24 -14.2% Under performance is Infrastructure projects as a result of the completed within the following: agreed time period. • Unresolved l------+------1------+------+------l Number of Capital 18 28 24 -14.2% SARS issues by infrastructure projects the contractor at completed within Botshabelo agreed budget Community Hall. • Reprioritisation of Tweeling Township Revitalisation and Lengau Testing Station. • Lack of funding for final payment for Sasolburg Zamdela Municipal Offices Number of New 3 0 -100% Budget was government owned suspended by buildings fitted with Provincial Treasury, project to be solar rooftop plants. executed in 1------+------+------+------+------< 2017/2018 financial Number of New 2 0 -100% year. government owned buildings retrofitted with energy saving light bulbs and tubes. The projects will be executed in 2017/2018 financial year throu h a shared service contract. Sub-programme expenditure Sub- Programme 2015/2016 2016/2017 Name 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 Total 56253 55 824 429 70 554 70 418 136 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.2.4. Maintenance Sub-Programme Purpose The Sub-Programme's responsibilities include the following four maintenance activities: • Routine maintenance. • Scheduled maintenance. • Condition assessment of all buildings. • * Alterations. *Alterations refer to changes that are required for reasons other than maintaining the asset, e.g. changes to interior walls. Strategic objectives, performance indicators, planned targets and actual achievements Strategic objective 2.2: Facilitate and promote sustainable infrastructure by implementing 95% of approved construction and maintenance project within contract time and budget in accordance with built sector norms and standards Maintenance Sub-Programme Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievement Target Achievement from deviations Indicator 2015/2016 2016/2017 2016/2017 planned target to Actual Achievement for 2016/2017 Main enance Su6-P.rogramme: S rategic o6jective �nnual iTarget. 2.2 Facilitate Maintaining 12 30 12 -60% Client Departments and promote Provincial remained responsible sustainable Infrastructure for their own infrastructure maintenance projects by that were supposed to implementing be transferred to the 95% of Department of Public approved Works and construction Infrastructure. and maintenance projects within contract time and budget in accordance with built sector norms and standards Against to what was planned, the Department only A provincial directive was given that all infrastructure related maintained Public Works Own Buildings. projects be transferred to the Department of Public Works and Infrastructure in the 2017/2018 financial ear. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Performance Indicator Maintenance Sub-Programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Customisecl P.erformance lnclica ors Number of 5 0 0 0% planned maintenance projects awarded. Number of 2 7 7 0% The target was planned achieved as planned, maintenance five projects were projects implemented in- completed house through within the massification agreed contract methodology. The period. other two were done through the tendering process. Number of 2 7 7 0% The target was planned achieved as maintenance planned, five projects projects were completed implemented in- within agreed house through budget. massification methodology. The other two were done through the tendering process. Sub-12.rog_ramme ex12.enditure Sub- 2015/2016 2016/2017 Programme Final Actual (Over)/Under Final Actual (Over)/Under Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R'000 R'000 R'000 R'000 R'000 R'000 Total 159 611 159 582 29 164 408 164 742 335 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.2.5. Immovable Asset Management Sub Programme Purpose To manage the property portfolio of the province; to establish and manage the provincial strategic and infrastructure plan; to provide accommodation for all provincial departments and other institutions; to acquire and dispose of accommodation in terms of the plan and in terms of the Western Cape Land Administration Act, 1998 (Act 6 of 1998) which entails: • Acquiring and disposal of properties. • Manage leasing in of properties. • Managing leasing out of government properties. • Revenue generation and collection. • Management of the immovable asset register. • Monitor the utilisation of provincial government facilities. • Management of utilities. Note that the Free State Land Administration Act (No 1 of 1998) furthermore guides the operations of the Sub Programme. Strategic objectives, performance indicators, planned targets and actual achievements Strategic Objective 3.1: Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset Management Act prescripts. Immovable Asset Management Sub Programme Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievement Target Achievement from deviations Indicator 2015/2016 2016/2017 2016/2017 planned target to Actual Achievement for 2016/2017 lmmova6Ie �sset Management: Strategic o6jective �nnual iTarget. 3.1 Manage Enhance 0 0 -100% The funds (R2.5 million) provincial the asset has been reprioritised for other functions within the government base of the Chief Directorate. owned and Province leased through 39 More properties were immovable acquisitions added to the Free State assets Provincial Government after verification process effectively in thereby growing the terms of asset base of the Government province from 4 800 to Immovable 4 839. Asset Management Act prescripts. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 PerformanceIndicator Immovable Asset Management Sub Programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Cus omised Performance lndicato� Number of 4 811 4 800 4 839 0.8% Over achievement is immovable due to properties assets verified added to the Free in the State Provincial Immovable Asset Register Government after (IAR) in verification process. accordance with the mandatory requirements of National Treasu Sub-programme expenditure Sub- 2015/2016 2016/2017 Programme Final Actual (Over)/Under Final Actual (Over)/Under Name Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO Immovable Asset 805472 805 396 76 796 787 796 707 80 Management Total 805472 805396 76 796787 796707 80 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.2.6. Facility Operations Sub Programme Purpose The Sub-Programme is responsible to manage the operations of buildings including facilities management, cleaning, greening, beautification, interior decoration, designs and day to day preventative maintenance of electronic, electrical and mechanical equipment. It refers to all services related to managing a building. *Note that the actual implementation cost of the projects will captured under the appropriate sub-sub programmes, including Security Services. 4.2.6.1. Operational Property & Housekeeping Sub sub-programme Purpose The Sub sub-programme is responsible to manage operations of buildings including facilities management, cleaning, gardening/ greening, beautification and interior decoration. Strategic objectives, performance indicators, planned targets and actual achievements Strategic Objective 3.1: Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset Management Act prescripts. Operational Property & Housekeeping Sub sub-programme Strategic Strategic Actual Planned Actual Deviation Comment on Objective Objective Achievement Target Achievement from deviations Indicator 2015/2016 2016/2017 2016/2017 planned target to Actual Achievement for 2016/2017 OP-erational eroP-ert� &: HousekeeP-ing: Strategic ol>jective Annual iTarget 3.1: Manage Maintenance 5 140% provincial of assets government owned and leased immovable assets effectively in terms of Government Immovable Asset Management Act prescripts Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Performance Indicator Operational Property& Housekeeping Sub sub-programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Customisecl Performance lnclicato� Number of 10 20 20 0% condition assessments conducted on state-owned buildings. Amount of R41.574m R42.212m R49.889m 18% The over revenue performance was collected. due to intensified revenue collected from property dis osals. Number of New 40 40 0% properties receiving facility management services (Cleaning and gardening services. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.2.6.2. Security Services Sub sub-Programme Purpose The Sub sub-programme provides a safe and secure environment at government buildings occupied by more than one department and facilitate management of electronic security equipment. Strategic objectives, performance indicators,planned targets and actual achievements Strategic objectives 3.2: Provide a safe and secure environment in 35 government buildings Security Services Sub sub-Programme Strategic Actual Planned Actual Deviation from Comment on deviations Objective Achievement Target Achievement planned target 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Securi y Services: S rategic objec ive Annual iTarget. 3.2. Provide a 41 21 44 109.5% Over performance emanates safe and from 14 sites transferred to the secure Department of Police Roads & Transport at the end of Q2 and environment the 7 properties guarded on an in 35 adhoc basis: government QwaQwa Monontsha Hall buildings. QwaQwa Bonamelo College QwaQwa Tshitso Primary School Oranjeville Jim Fouche Holiday Resort Kroonstad ZR Mahabane House Bloemfontein MEC 2 Residence Bloemfontein Lerno Mall Furthermore the Department rendered the security patrolling services at Wepener Library & Rouxville Clinic. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Performance Indicator Security Services Sub sub-Programme Performance Actual Planned Actual Deviation from Comment on deviations Indicator Achievement Target Achievement planned target 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Non-Cus omised F'enormance lndica or Number of 41 21 44 109.5% Over performance emanates properties from 14 sites transferred to receiving the Department of Police Roads & Transport at the facilities end of Q2 and the 7 management properties guarded on an services adhoc basis: (Physical QwaQwa Monontsha Security). Hall QwaQwa Bonamelo College QwaQwa Tshitso Primary School Oranjeville Jim Fouche Holiday Resort Kroonstad ZR Mahabane House Bloemfontein MEC 2 Residence Bloemfontein Lerno Mall Furthermore the Department rendered the security patrolling services at Wepener Library & Rouxville Clinic. Sub-programme expenditure Sub- Programme 2015/2016 2016/201 7 Name 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 p Total 154999 154971 28 1493 70 149234 136 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.3. PROGRAMME 3 EXPANDED PUBLIC WORKS PROGRAMME Purpose To manage the implementation of programmes and strategies that lead to the development and empowerment of communities and contractors. This includes the provincial management and co-ordination of the Expanded Public Works Programme. The Programme consists of the following Sub-Programmes: • Community Development Sub Programme. • Innovation and Empowerment Sub Programme. • Coordination and Compliance Monitoring Sub Programme. The objective of EPWP Phase Ill is to provide work opportunities and income support to poor and unemployed people through the labour-intensive delivery of public and community assets and services, thereby contributing towards elimination of poverty, reduction of inequality and creation of employment. Strategic Objectives Strategic Objectives Sub-Programme/Sub sub-programme 4.1. Promote and create work opportunities through the provision Community Development of accredited training and implementation of five community development initiatives. 4.2. Create an enabling environment for emerging enterprises and Innovation and Empowerment address skills shortage in the construction industry through Development of emeroinq contractors and vouth. 4.3. Coordinate 33 stakeholders towards the successful Coordination and Compliance Monitoring implementation of the EPWP within the Province. 4.3.1. Community Development Sub-Programme Purpose The Sub programme is responsible for the development and empowerment of impoverished communities. Strategic obiectives. performance indicators.planned targets and actual achievements Strategic objectives 4.1: Promote and create work opportunities through the provision of accredited training and implementation of five community development initiatives. Programme Name: : Expanded Public Works Programme Strategic Actual Planned Actual Deviation from Comment on Objective Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Community Develo�ment Sub erogramme: Strategic objective Annual iTarget. 4.1. Promote and 2 524 2 350 3 964 68.6% The over create work performance is due opportunities to expansion on through the Community Works provision of Programme and accredited Cleaning & Greening training and Pro ramme. implementation 1 737 850 1 504 The over of five 76.9% community performance is due development to expansion on initiatives. Community Works Programme and Cleaning & Greening Programme. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 PerformanceIndicator Programme 3: Expanded Public Works Programme Performance Actual Planned Actual Deviation from Comment on Indicator Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Cus omised Performance Indicate� Number of 2 524 2 350 3 964 68.6% The over EPWP work performance is due opportunities to expansion on created by the Community Works Programme and Provincial Cleaning & Greening Department of Programme. Public Works and Infrastructure. Number of Full 1 737 850 1 504 76.9% Time Equivalents (FTE's) created by the Provincial Department of Public Works and Infrastructure Sub-programme expenditure Sub- Programme 2015/2016 2016/2017 Name 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 143 077 143 073 4 137 983 137 980 3 Development Total 143 077 143 073 4 137983 137980 3 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.3.2 Innovation and Empowerment Sub programme Purpose The sub-programme is responsible to oversee contractor empowerment, training and development including learnerships, and providing SMME support and development. Strategic obiectives. performance indicators.planned targets and actual achievements Strategic Objective 4.2: Create an enabling environment for emerging enterprises and address skills shortage in the construction industry through Development of emerging contractors and youth. Asset Management Act prescripts. Programme Name: : Expanded Public Works Programme Strategic Actual Planned Actual Deviation from Comment on Objective Achievement Target Achievement planned target deviations 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Innovation ancl Em�owermen Su6 P.rogramme: Stra egic o6jec ive �nnual iTarge . 4.2. Create an 0 3 3 0% enabling environment for emerging enterprises and address skills shortage in the New 0% construction industry through development of emerging contractors and outh. Performance Indicator Number of 0% training interventions. Sub-programme expenditure Sub- Programme 2015/2016 2016/2017 Name 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 Innovation and 27759 27756 3 9665 9664 1 Empowerment Total 27759 27756 3 9665 9664 1 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 4.3.3 Coordination and Compliance Monitoring Sub-Programme Purpose This sub-programme is responsible for coordination, monitoring EPWP implementation and the management of Incentive Grant Expenditure to all public bodies implementing EPWP in the province. NB. This Sub-Programme is entrusted with the provincial management and coordination of all stakeholders towards the successful implementation of the EPWP targets within the Province in relation to the creation of work opportunities. The projects/initiatives and budgets arecontrolled by the public bodies (provincial departments and municipalities). Strategic obiectives. performance indicators. planned targets and actual achievements Strategic objectives 4.3: Coordinate 33 stakeholders towards the successful implementation of the EPWP within the Province. Programme Name: : Expanded Public Works Programme Strategic Actual Planned Actual Deviation from Comment on deviations Objective Achievement Target Achievement planned target 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Cus omised P.e ormance lndica OI'. 4.3. Coordinate 33 32 33 32 -3% Fezile Dabi District stakeholders Municipality did not report on towards the work opportunities created successful due to non-implementation implementation s. of the EPWP 1------+------+------+---�----+-o_ fE_ _P_WP_ _p_ro_ je_ ct_ _ _ ------, within the 5 5 6 20% The Provincial Incentive Province. Grant Workshop on the 14th April 2016 initiated by NDPW. 4.3. Coordinate 33 53 715 61 022 58 218 -4.5%% Under-reporting, stakeholders reprioritisation of budgets, towards the 20 418 32 178 23 302 -27.5% projects put on hold and successful delays in procurement during implementation the financial ear. of the EPWP 36 054 33 562 40 570 20.8% The over achievement is as within the a result of sectors such as Province. Non-State, Social and CoGTA that attract more women participants due to the nature and the scope of the programme. 28 168 33 562 29 082 -13.3% Poor participation of young people under social sector. 763 1 220 715 -41.3% The Province under performed as the intake depends on the interest of people with disabilities to participate in the programme. Most of the projects are infrastructure in nature and are not conducive for people with disabilities. Reasons fordeviations to overcome areas of under Fezile Dabi did not implement EPWP projects and therefore Meeting held with the Municipal manager of Fezile Dabi where a could not access rant fundin . romise was made for artici ation. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Programme 3: Expanded Public Works Programme Performance Actual Planned Actual Deviation from Comment on deviations Indicator Achievement Target Achievement planned target 2015/2016 2016/2017 2016/2017 to Actual Achievement for 2016/2017 Customisecl Performancelnclicato� Number of 33 32 -3% Fezile Dabi District public bodies Municipality did not report on reporting on work opportunities created due EPWP targets to non-implementation of within the Province. EPWP projects. Number of 5 5 6 20% The Provincial Incentive Grant interventions Workshop on the 14th April implemented to 2016 initiated by NDPW. support public bodies in the creation of targeted number of work opportunities in the rovince. Number of work 53 715 61 022 58 218 -4.5%% Under-reporting, opportunities reprioritisation of budgets, created by the projects put on hold and delays in procurement during province. f------+------f------+------+------1 the financial year. Number of FTE 20 418 32 178 23 302 -27.5% jobs created by the province. Number of work 36 054 33 562 40 570 20.8% The over achievement is as a opportunities result of sectors such as Non created for State, Social and CoGTA that women by the attract more women province (55%). participants due to the nature and the scope of the programme. Number of work 28 168 33 562 29 082 -13.3% Poor participation of young opportunities people under the social sector created for youth by the province (55%). Number of work 763 1 220 715 -41.3% The Province under performed opportunities as the intake depends on the created for interest of people with people with disabilities to participate in the disabilities by programme. Most of the the province projects are infrastructure in (2%). nature and are not conducive for people with disabilities. Linking performancewith budget Projects reported under Coordination and Compliance Monitoring Sub-Programme are implemented through public bodies own funds. The Department of Public Works and Infrastructure provides coordination and technical support. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 5. TRANSFER PAYMENTS 5.1. Transfer payments to municipalities The table below depicts the transfer payments made for the period of 01 April 2016 to 31 March 2017: Name of Municipality Services rendered Amount Amount spent by *Achievements of by the Municipality transferred to the the Municipality the Municipality Municipality Dihlabeng FS192 Rates & Taxes Kopanong FS162 3 841 Letsemeng FS161 Rates & Taxes 1 963 Mafube FS205 Rates & Taxes 7 065 Maluti a Phofung FS194 Rates & Taxes 87 796 87 796 Mangaung Rates & Taxes 117 617 117 617 Mantsopa FS196 Rates & Taxes 585 Masilonyana FS181 Rates & Taxes 3 638 Matjhabeng FS184 Rates & Taxes 48 390 Metsimaholo FS 204 Rates & Taxes 8 283 Mohokare FS163 Rates & Taxes 258 Moqhaka FS201 Rates & Taxes 7 723 Nala FS185 Rates & Taxes 4207 Naledi FS16 Rates & Taxes Ngwathe FS203 Rates & Taxes 8 997 Nketoana FS193 Rates & Taxes 6 002 Phumelela FS195 Rates & Taxes 1 466 Setsoto FS191 Rates & Taxes 9 816 Tokologo FS183 Rates & Taxes 480 Tswelopele FS183 Rates & Taxes 1 582 *The Department is not responsible to monitor achievements of municipalities. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 6. CONDITIONAL GRANTS 6.1. Conditional grants and earmarked funds paid The table below describes each of the conditional grants and earmarked funds paid by the department. Conditional Grant: EPWP Integrated Grant to Provinces Department to whom the grant has been transferred Public Works and Infrastructure Purpose of the grant For the utilisation of Infrastructure and cleaning and greening projects in line with EPWP principles. Expected outputs of the grant The grant will be utilized for infrastructure and cleaning and greening projects in line with EPWP principles and to create more work opportunities based on the full time equivalent jobs. Actual outputs achieved Creation of decent jobs and increase in the GDP of respective towns. Amount per amended DORA R 6.530 million Amount transferred (R'000) R 6.530 million Reasons if amount as per DORA not transferred The entire DORA allocation was received Amount spent by the departmenUmunicipality (R'000) R 6.528 million Reasons for the funds unspent by the entity Funds was fully spent Monitoring mechanism by the transferring department Decentralisation of Community Liaison Officers to the districts for close scrutiny. Submission of monthly conditional grant expenditure report to Provincial Treasury with explanatory information. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Earmarked Funds Paid: Property Rates and TaxesAllocation Municipality to whom the grant has been transferred Public Works and Infrastructure Purpose of the allocation For the payments of municipal property rates and taxes on all provincially owned properties (registered, unregistered or incorrectly registered) Expected outputs of the allocation Payment on receipt of valid property rates and taxes invoices from municipalities Actual outputs achieved Payments of rates and taxes made within 30 days upon receipt of the invoice from municipalities Amount per amended DORA R 329.177 million Amount transferred (R'000) R 329.177 million Reasons if amount as per DORA not transferred The entire DORA allocation was received Amount spent by the Department (R'000) R 329.168 million Reasons forthe funds unspent by the Department Funds was fully spent Monitoring mechanism by the transferring Department Payment of property rates to be captured on BAS and reconciled to Rates and Taxes register Infrastructure Enhancement Allocation Department to whom the grant has been transferred Public Works and Infrastructure Purpose of the grant Assist in acceleration of construction, maintenance and rehabilitation of new and existing infrastructure. Enhance capacity to deliver on infrastructure exclusively for provincial related projects Expected outputs of the grant Number of buildings and facilities constructed and maintained Actual outputs achieved 20 project were completed Amount per amended DORA R 146.346 million Amount transferred (R'000) R 146.346 million Reasons if amount as per DORA not transferred The entire DORA allocation was received Amount spent by the Department (R'000) R 146.341 million Reasons forthe funds unspent by the Department Unforeseen delays and late submission of invoices Monitoring mechanism by the transferring department Submission of detail monthly reports and quarterly reports both internally and to Provincial Treasury (budget, expenditure and outputs achieved) Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Revenue Enhancement Allocation Department to whom the grant has been transferred Public Works and Infrastructure Purpose of the grant Optimising / enhance revenue generation and improve revenue collection methods in the province. Expected outputs of the grant Establishment of effective revenue collection systems, develop an efficient debt collection mechanism and repair and u rade rovincial facilities. Actual outputs achieved One projects completed. Amount per amended DORA Amount transferred (R'000) Reasons if amount as per DORA not transferred The entire DORA allocation was received. Amount spent by the Department (R'000) Reasons forthe funds unspent by the Department Unforeseen delays in identifyingof another facility. Monitoring mechanism by the transferringdepartment Conduct regular site visits with Provincial Treasury. 7. DONOR FUNDS 7. 1. Donor Funds Received No donor funds were received by the Department during 2016/2017 financial year. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 8. CAPITAL INVESTMENT 8.1. Capital investment, maintenance and asset management plan Progressmade on implementing the capital, investment and asset management plan: • Infrastructureprojects completed in the 2016/2017 financialyear The Department of Public Works and Infrastructure as implementing agent for client departments has completed 38 projects in 2016/2017 financial year as depicted on the table below: Provincial Department Completed Project Name Public Works and Infrastructure = 34 • Allanridge: Township Revitalisation Programme • Batho: Township Revitalisation Programme • Botshabelo: Township Revitalisation Programme • Cornelia: Township Revitalisation Programme • Dewetsdorp: Township Revitalisation Programme • Excelsior: Township Revitalisation Programme • Heilbron: Township Revitalisation Programme • Hennenman: Township Revitalisation Programme • Hertzogville: Township Revitalisation Programme • Jagersfontein: Township Revitalisation Programme • Marabastad: Township Revitalisation Programme • Odendaalsrus: Township Revitalisation Programme • Parys: Township Revitalisation Programme • QwaQwa: Township Revitalisation Programme • Thaba Nchu: Township Revitalisation • Tweespruit: Township Revitalisation Programme • Tshiame: Township Revitalisation Programme • Vredefort: Township Revitalisation Programme • Wepener: Township Revitalisation Programme • Winburg: Township Revitalisation Programme • Sasolburg: Zamdela: Municipal Offices • Bloemfontein Hamilton Regional Offices upgrade • Bloemfontein: Access Control Booms • Bloemfontein: Medfontein Upgrade • Sasolburg Testing Station • Virginia Testing Station • Cornelia Municipality Office • Tweeling Municipal Offices • QwaQwa Bonamelo College • Kroonstad Regional Office • Kroonstad Voortrekker Hospital Security Division • QwaQwa: Mbeki Section New Community Hall. Earthworks Phase 1 • QwaQwa: Lusaka Section New Community Hall Earthworks Phase 1 • Rouxville: New Clinic Phase 1: Bulk Earthworks. Education = 4 • Memel: Umcebo New Primary School. • Sasolburg: Kopanelang Thuto Phase 2 • Cornelia: Ntswanatsatsi Primary School • QwaQwa: Matsikeno Primary School Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 • The progress in comparison to what was planned at the beginning of the 2016/2017 and reasons for material variances (2% variance) 1. Botshabelo: New Community Hall 10 Jan2014 30 Nov 2016 75% Contractor SARS issues 2. Bloemfontein: MPL Houses 11 Aug2015 31 Mar2017 68% No access to houses u rade 3. QwaQwa: Mbeki Section New 1 Jun 2016 31 Aug2016 68% Slow progress on site Community Hall 4. QwaQwa: Lusaka Section New 1 Jun 2016 31 Aug2016 65% Slow progress on site Community Hall 5 Theunissen: Masilonyana 10 Nov2015 31 Mar2017 94% Shortage of material on site Community Hall 6. Thaba Nchu: (Ratlou Complex) 16 Feb2016 31 Mar2017 45% Delays caused due to Phase2 Artisans deployed to other urgent projects 7. Bloemfontein FSPG (C.R. Swart) 1 Dec 2014 15 Aug2016 99% Payment outstanding Building renovations and upgrades: kitchen's and ablution facilities 8. Soutpan: lkgomotseng Comm 30 Jun2016 31 Jan 2017 85% Procurement material was Hall: Completion of dilapidated still in progress Hall 9. Tweeling Township Revitalisation Project reprioritized Programme 10 . Lengau Testing Station Project reprioritized 11. Kroonstad: Boitumelo Contract12 : 28 Jui 2011 28 Nov 2014 95% The project has stopped, Revitalization of Block H, SSD, there is litigation between the Kitchen, Mortuary & Medical contractor and the Waste Block client/employer 12. Sasol burg: Bekezela (Amelia) 17 May2015 31 Aug2016 58% Late payments to services New Primary school providers 13 . Hertzogville: Malebogo New 20 July2015 16 Mar2017 38% Late payments to services Primary School providers 14 . Welkom: Adelaide Tambo 19 May2015 31 Aug2016 32% Late payments to services (Albertina Sisulu) New Secondary providers School 15. Bloemfontein: Grassland New 5 June 2015 6 July2016 62% Late payments to services Secondary School providers 16. Bethlehem: Rehopotswe 5 Mar2015 31 July2016 69% Late payments to services (Bohlokong) New Primary School providers Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Projects Project Name & Description Project Duration Progress Reasons formaterial variances . . 17. Bloemfontein: New Thuto Ke 21 July 2015 17 Mar 2017 47% Late payments to services Thebe Primary School (Phase 7 providers Caleb Motshabi Primary School) 18. Bloemfontein: Matla Phase 2: 27 Jun 2011 22 Nov 2016 92% Contractor did not perform Admin building, media Centre, and Contract was terminated school hall, Book and Garden Store, Activity Centre 19. Kroonstad: New School at Johan 25 Feb 2015 28 Feb 2017 99% Late request for water due to Slabbert Special School availability of water in the district. 20. Thaba Nchu: Bartimea Special 7 Jun 2011 14 Jun 2014 49% Contractor did not perform School additional facilities and Contract was terminated 21. QwaQwa: Tshitso Secondary 25 Mar 2011 19 June 2014 97% Contractor did not perform School admin block renovations and Contract was terminated �-r.r.tF-11/11:;,1.•�- • "" · r.t 22. Botshabelo: Free State 23 Feb 2016 11 Nov 2016 22% Labour Strikes over unpaid Substance Abuse Dependency wages by sub-contractors. Treatment Centre ...fJIJfU�fI �= •..... __ 11:.J. ••, A IJ& 1.,1,,, t .-, '1'�16.tllllll. ,,..:•-�� 23. Bloemfontein: Soetdoring Nature 20 Oct 2014 20 June 2016 99% Late payment of Client Res: Upgrade of Train Bush Department Camp, construction of water SUDDIY line �- ,.:..J(;.\r�· ..i,:.r.uu 24. Wepener: Qibing New Library 13 Feb 2013 14 Aug 2014 70% Non-performance of appointed service providers Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Infrastructureprojects that are currently in progress and expected completion dates Provincial Department Project Name Expected Completion Date Public Works and Rouxville: New Clinic Phase 2: Foundations 31 May 2017 Infrastructure= 11 Rouxville: New Clinic Phase 3: Super Structure 31 Mar 2018 Bloemfontein: OR Tambo & Fidel Castro Phase 3. HVAC 30 June 2017 Botshabelo: New Community Hall 30 Nov 2016 Bloemfontein: MPL Houses Upgrade 31 Mar 2017 QwaQwa: Mbeki Section New Community Hall 31 Aug 2016 QwaQwa: Lusaka Section New Community Hall 31 Aug 2016 Theunissen: Masilonyana Community Hall 31 Mar 2017 Thaba Nchu: (Ratlou Complex) Phase 2 31 Mar 2017 Bloemfontein: FSPG (C.R. Swart) Building renovations 15 Aug 2016 and upQrades: kitchen's and ablution facilities Soutpan: lkgomotseng Comm Hall: Completion of 31 Jan 2017 Dilapidated Hall Health= 1 Kroonstad: Boitumelo Contract 12: Revitalization of Block 28 Nov 2014 H, SSD, Kitchen, Mortuary & Medical Waste Block Education = 19 Hoopstad: GM Polori School 15 Aug 2017 Vrede: Thembalihle School 14 Dec 2017 Warden: Silindukuhle School 14 Dec 2017 Zastron: Mooifontein School 14 June 2017 Clocolan: Ruang Tsebo School 18Oct 2018 Bloemfontein:Old Eureka Hostel 08Oct 2017 Welkom: New Chris Hani Primary School. 15Oct 2017 Bloemfontein: Grassland New Primary School 26 May 2017 Sasolburg: Bekezela (Amelia) New Primary school. 31 Aug 2016 Hertzogville: Malebogo New Primary School 16 Mar 2017 Education Welkom: Adelaide Tambo (Albertina Sisulu) New 31 Aug 2016 Secondary School Botshabelo: Tlholo New Primary School 18 April 2017 Bloemfontein: Grassland New Secondary School. 6 July 2016 Bethlehem: Rehopotswe (Bohlokong) New Primary 31 July 2016 School. Bloemfontein: New Thuto Ke Thebe Primary School 17 Mar 2017 (Phase 7 Caleb Motshabi Primary School), Bloemfontein: Matla Phase 2: Admin building, media 22 Nov 2016 Centre, school hall, Book and Garden Store, Activity Centre Kroonstad: New School at Johan Slabbert Special 28 Feb 2017 School. Thaba Nchu: Bartimea Special School additional facilities 14 Jun 2014 QwaQwa: Tshitso Secondary School admin block 19 June 2014 renovations Social Development = 1 Botshabelo: Free State Substance Abuse Dependency 11 Nov 2016 Treatment Centre Economic, Small Bloemfontein: Soetdoring Nature Res: Upgrade of Train 20 June 2016 Business Development, Bush Camp, construction of water supply line Tourism and Environmental Affairs= 1 Sports, Arts, Culture & Wepener: Qibing New Library 14 Aug 2014 Recreation = 1 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Plans to close or downgrade any current facilities No facilities were downgraded in 2016/2017. Progress made on themaintenance of infrastructure The Department of Public Works and Infrastructure managed to complete the following maintenance projects during 2016/2017 financial year: - Sasolburg Testing Station - Virginia Testing Station - Cornelia Municipality Office - Tweeling Municipal Offices - QwaQwa Bonamelo College - Kroonstad Regional Office - Kroonstad Voortrekker Hospital Security Division Developments relating to the above that are expected to impact on the department's current expenditure. Purchasing of material, payment of EPWP participants and Subsistence and Travelling costs for artisans are costs incurred when maintaining infrastructure. Details as to how asset holdings have changed over the period under review, including information on disposals, scrapping and loss due to theft Immovable Asset Register The number of assets recorded on the assets register was 4 800 at the beginning of 2016/2017 financial year. At the end of the 2016/2017 financial year, 4 839 properties were recorded on the Immovable Asset Register. Disposals (donation/sale) Type of Property Name of property and town Disposal Method Residential Erf 10122 Kenzietown Donation Residential Erf 10097 Kenzietown Donation Residential Erf 10103 Kenzietown Donation Residential Erf 1011 Kenzietown Donation Residential Erf 157 Charlesville Donation Residential Erf 64 Beirut Sale Residential Erf 465 Odendaalsrus Sale Residential Erf 24 7 Ficksburi:i Sale Residential Erf 66 Beirut Sale Residential Erf 218 Charlesville Sale Residential Erf 212 Ladybrand Sale Confiscating valuable items ceased from offices found unlocked during patrols and together with the Investigation Unit engaging Senior Managers from affected departments. Physically contacting occupied offices after hours and complementing the signing of the after hours register. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Measures taken to ensure that the department's asset register remained up-to date during the periodunder review The Department continuously do reconciliations, using different sources to update the Asset Register regularly. The sources are as follows: National Public Works' Asset Register to ensure that there are no duplicates which will prevent double disclosure. The Deeds office to confirm ownership. The surveyor Generals office to ensure that properties exist and also to determine the locations of properties to be captured. Reconciliations are also done with the Department's Rates Register on a quarterly basis. Physical verifications are also done when a property is added to the Immovable Asset Register. The current state of the department's capital assets. Condition of Status Condition Rating Number of Properties Bad 1 25 2 92 Fair 3 1 197 Good 4 117 5 25 Major maintenance projects that have been undertaken during the period under review Sasolburg: Testing Station Virginia: Testing Station Soutpan: lkgomotseng Community Hall Cornelia: Mafube Local Municipality Offices Tweeling: Mafube Local Municipality Offices QwaQwa: Bonamelo College Kroonstad: Regional Office Kroonstad: Voortrekker Hospital Security Division Virginia: Meloding Community Hall Theunissen: Masilo Community Hall Bloemfontein: MPL Houses Thaba Nchu: Ratlou Complex Phase 2 Progress made in addressing themaintenance backlog The maintenance budget is not enough to maintain all the buildings. The backlog is growing however seven buildings were renovated compared to the two that was done in 2015/2016. The backlog has grown because the properties on the immovable asset register increased and too little properties get maintained. The transfer of all infrastructure projects, inclusive of maintenance projects and their budget will enable the Department to plan and execute more maintenance projects. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 Infrastructure 2015/2016 2016/2017 Projects Final Actual Under Final Actual Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R'000 R'000 R'000 R'000 R'000 R'000 New and replacement 6634 6 631 3 10 737 10 732 5 assets Existing infrastructure 176 522 176 111 411 175 936 175 804 132 assets - Upgrades and 176 522 176 111 411 175 936 175 804 132 additions - Rehabilitation, renovations and refurbishments - Maintenance 1 179 1179 - 8007 7944 63 and repairs Infrastructure transfer - Current - Capital mrn:J � � fm �l!l''li"l:111 rnnmm fI[i] FreeState Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vote 9 Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 CONTENTS 1. INTRODUCTION 2. RISK MANAGEMENT 3. FRAUD AND CORRUPTION 4. MINIMISING CONFLICT OF INTEREST 5. CODE OF CONDUCT 99 6. HEALTH 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 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 1. INTRODUCTION Commitment by the department to maintain the highest standards of governance is fundamental to the management of public finances and resources. Users want assurance that the department has good governance structures in place to effectively, efficiently and economically utilize the state resources, which is funded by the tax payer. 2. RISK MANAGEMENT Public Finance Management Act Section 38 (1) (a) state "The accounting officer of the department must ensure that the department has and maintains: Effective, efficient and transparent systems of financial and risk management and internal control." The Accounting Officer has committed the Department of Public Works and Infrastructure to a process of risk management that is aligned to the principles of good corporate governance. The Risk Management Policy and Risk Management Strategy have been approved and are being implemented. Treasury Regulation, 2005 Part 3 (3.2.1) stipulates that the accounting officer must ensure that risk assessment is conducted regularly to identify emerging risks of institution. The Department is committed to the effective risk management and treatment of risk in order to achieve its objectives. The management of risks is the responsibility of all the Senior Managers and employees. The Department conducts strategic risk assessments on an annual basis with a review or a re-assessment of the risks conducted on a continuous basis to all programmes and sub-programmes. The Risk Management Committee held four meetings as planned. The Quarterly Risk Management Reports from the Committee were submitted to Head of Department. Upon receipt of report, the HOD acted and all recommendations from the Committee were implemented. Risk management is the standing item in quarterly Audit Committee Meetings whereby the quarterly risk management reports as well as Departmental progress reports (financial and non-financial) are discussed and resolutions taken. Progress in the management of risks, this has transmitted into improvements in the Department's performance. The Department applied the Enterprise Risk management (ERM) module, which is the application of risk management throughout the Department rather than only in selected business areas or disciplines. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 The implementation progress on the Strategic and Operational risks is provided below: a) Strategic Risks The table below depicts residual risks from beginning to end of the financial year. 35 30 29 29 30 25 ■ High 20 D Medium 15 ■ Low ■ Total 10 5 I.LI 0 Qtr 2nd Qtr 3rd Qtr 4th Qtr u 1st z The Department's strategic risks moved from 30 to 16 risk at the end of the financial c::c year. The difference is twofold: z • 13 risks were as a result of effective management of strategic risks, therefore, c:::: were transferred to operational level. I.LI • 1 risk was removed from the register as it was a policy initiative. (Poor economic transformation). > 0 Number of Risk areas where the ratings decrease for 2016/2017 t., Beginning End 31 March • • Risk Description 1 April 2016 2017 Comments II1 Conditions on human capital and impact Low The rating decreased u of HIV/Aids. from 3rd quarter. 2 Irregular expenditure. Medium The rating decreased I from 2nd quarter. C:::: 3 Limitation of scope. Medium The rating decreased from 4th quarter. .... 4 Leaking of information. High Medium The rating decreased from 2nd quarter. 5 Unauthorized disclosure of Departmental High Medium The rating decreased information internally and externally. from 2nd quarter. 6 Under collection of Revenue from High The rating decreased properties. from 4th quarter. 7 Inability to achieve work opportunity High Medium The rating decreased targets. from 3rd quarter. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 b} Operational Risks The table below depicts residual risks from beginning and end of the financial year. 300 253 266 250 200 ■ High D Medium 150 ■ Low 100 ■ Total 50 0 Beginning 1 April 2016 End 31 1\/larch 2017 The results of the operational risks assessment; the Department's operational risks moved from 253 to 266. The difference of 13 risks was as a result of effective management of strategic risks; therefore, these risks were transferred to operational level. 3. FRAUD AND CORRUPTION The Fraud Prevention Plan was developed in terms of Treasury Regulation Section 3.2.1 to effectively combat fraud activities in the Department. Fraud Management Committee assists in monitoring fraud reports and recommends corrective measures to avoid repetition. Fraud Prevention Plan must be reviewed annually by risk management committee and for approval by the Accounting Officer. As instances of fraud remain a constant threat to public trust and confidence, it becomes essential to recognise fraud risk management as an integral part of strategic management and the Institution is therefore adopting a comprehensive approach to the management of fraud risks. Reporting procedures and resolution of Reported incidents - Employees • It is the responsibility of all employees to immediately report all allegations or incidents of fraud and corruption to their immediate manager and/or the Director: Human Resources Management. • All managers are responsible for the detection, prevention and investigation of fraud and corruption and must report all incidents and allegations of fraud and corruption to the Director: Human Resources Management. The Director: Human Resources Management will initiate an investigation into the matter, in consultation with Senior Management. • Should employees wish to report allegations of fraud and corruption anonymously, they can contact any member of senior management, the Director: Human Resources Management or the Chairperson of the Risk Management Committee and National Anti-Fraud and Corruption Hotline 0800 701 701. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Reporting procedures and resolution of reported Incidents - Public or Service Providers • The Department encourages members of the public or providers of goods and/or services who suspect fraud and corruption to contact the Director: Human Resources Management or any other member of management. • Should employees wish to report allegations of fraud and corruption anonymously, they can contact any member of senior management, the Director: Human Resources Management or the Chairperson of the Risk Management Committee and National Anti-Fraud and Corruption Hotline 0800 701 701. Action taken for any fraud and corruption. Any fraud and corruption committed by an employee or any other person will be pursued by thorough investigation and to the full extent of the law, including (where appropriate) consideration of: • In case of employees, taking disciplinary action within a reasonable period of time I.LI after the incident; • Instituting civil action to recover losses; u • Initiating criminal prosecution by reporting the matter to the SAPS. z c::c 4. MINIMISING CONFLICT OF INTEREST z c:::: All members of the Senior Management Service disclose their financial interest in terms of I.LI the Public Service Regulations. This disclosure is forwarded to the Public Service Commission by 31 May. All Senior Managers disclosed as required. In addition, the > Department conducts an annual CIPC search for all levels to establish any conflict of 0 interests exists. t., • • The Public Service Regulations, 2016 which came into effect on 1 August 2016 also u provides that the Minister for the Public Service and Administration (MPSA) may identify other salary levels that should disclose their financial interest. The Minister determined that I employees on Deputy Director level and staff employed in the professions (OSD) on these C:::: levels and all levels within Supply Chain Management and Finance should also declare. This process in terms of the directive should be completed, depending on salary level, by 31 August 2017 for the first time. Prior to any Bid Committee, members disclose interests and where appropriate recuse themselves from adjudication. A similar approach is followed at the Audit Committee and Risk Management meetings chaired by external stakeholders. The Department is satisfied that sufficient measures are in place to minimise conflict of interests. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 5. CODE OF CONDUCT Public Service employees are required in terms of section 195 of the Constitution of the Republic of South Africa, 1996 to exercise the highest ethical standards and adhere to the Code of Conduct as they are entrusted with the duty and responsibility of serving a broader society. During the past financial year, the Department due to good corporate governance practices was awarded the second place (silver award) at the prestigious National Batho Pele awards for the most ethical and professional Department in the country. The aforesaid reiterates and confirms the huge strides made by the Department of Public Works and Infrastructure under the current political leadership and dispensation. Staff are work-shopped regularly on the code of conduct, and are expected to abide by the contents thereof. In addition to the above, the Accounting Officer has designated the Risk Management Committee as Ethics Committee in terms of Regulation 23(1) of the Public Service Regulations, 2016. Furthermore, the Department follows a proactive approach to entrench ethical conduct and thereby contributes to minimizing fraud, corruption and non compliance. Key areas that have been implemented are: • Directive by MPSA on the remunerative work outside the employee's employment in the relevant Department as contemplated in Section 30 of the Public Service Act, 1994 dated 1 November 2016. • Directive by MPSA on Conducting Business with an Organ of State dated 27 January 2017. • Determination on other categories of designated employees to disclosure their financial interests and Directive on the form, date and financial interests to be disclosed issued by the Minister for Public Service and Administration dated 16 March 2017 (continue into 2017/2018 Financial Year). As far as financial disclosures for Senior Management Service (SMS) are concerned, the department achieved 100% compliance in 2015/2016 and 2016/2017. 6. HEAL TH SAFETY AND ENVIRONMENTAL ISSUES Any employer of choice is measured against the success of the employee health and wellness programme. Departmentally this programme which relies on close co-operation with line management seeks to achieve a healthy and productive workforce. Occupational Health and Safety is central to a healthy workforce, clients and customers and service providers. The Department has an OHS committee that deals with matters which are related to Health and Safety of the employees. The committee meets on a quarterly basis and implement OHS. Meetings are being chaired by a middle manager from the Security Services Unit of the Department. The OHS plan has been approved by the Head of the Department. All contractors appointed must submit a health and safety plan which is monitored by technical staff of the Department. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 7. PORTFOLIO COMMITTEES The meeting dates of The Portfolio Committee for 2016/2017 financial year were as follows: • 25 May 2016 • 13 October 2016 • 8 November 2016 • 15 February 2017 The key concern from the Portfolio Committee was the lack of funding for the payment of municipal services. I.LI u z c::c z c:::: I.LI > 0 t., u• • I C:::: � Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 8. SCOPA RESOLUTIONS Resolution Subject Details Response by the department Resolved No. (Yes/No) 9/2016, 1 (a) Effectiveness and Develop an action plan The Internal Control Unit is still in Still in compliance with the that includes measures to progress to finalizing the Internal progress Internal Control ensure that the Internal Control Framework action plan to be Framework as issued by Control Framework is implemented. National Treasury. fully implemented. 9/2016, 2 (a) Non-compliance with Take the necessary steps The investigations are still in progress Still in procurement processes against those officials that and are not yet completed. The progress for appointing contractors transgressed the investigations are being handled by under the EPWP requirements. Adv. Moletse at this stage. The request programme. to appoint inter alia an external chairperson is currently receiving attention. 9/2016, 2 (b) Non-compliance with Implement sufficient Proper procurement processes are Yes procurement processes monitoring controls to always followed except in the case of for appointing contractors ensure that proper Contractor Development Program under the EPWP procurement processes (2015/2016) where Supply Chain programme. are followed for the Management was not involved. This is the closed bidding of reason why action will be taken against contractors on the defaulters. Contractor Development Programme. 9/2016, 3 Records Management Processes to improve the The Department has implemented an Yes processes. records management of approved policy and checklist for all contracts. contracts. Contracts are now centralised. All original contracts are kept at Legal Services for safekeeping and control. Minutes of all Bid Committee meetings are available. 11/2015 1 (a) Financial and Ensure that creditors The department of Public Works and Yes Performance are paid within 30 days, Infrastructure pays and exhausts its Management. unless determined allocated budget for payment of otherwise in a contract municipal services, rates and taxes. or other agreement. The increase in municipal tariffs is not accommodated in the allocated budget which leads to invoices not being paid within 30 days. Department Budget allocation is not sufficient to cover municipal expenditure every year. 11/20151(b) Financial and Reach an agreement The Province has established an Inter Still in Performance with municipalities in Governmental Debt Steering Committee progress Management. regard to outstanding (GBDS) in August 2011. The meeting are rates and taxes. held on a quarterly basis, primarily to monitor progress and address challenges relating to the payment of municipal debts. The Department has developed a Payment Schedule which will be signed off by both Accounting Officer of the Department and relevant Municipalities. Any Shortfall realised in the previous financial year will normally be cleared in the new financial vear. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Resolution Subject Details Response by the department Resolved No. (Yes/No) 11/20151(c) Financial and Continue with The department engages both National Yes Performance discussions with National and Provincial Treasury for budget Management. Treasury and other increase allocations during the budget oversight bodies in adjustments period. regard of the lack of adequate budget to pay A cabinet memo highlighting progress on for municipal services. the verification of government debt for rates, taxes and other municipal services payables to Municipalities by National and Provincial Departments. 11/20151(d) Financial and Ensure that immovable The Department of Public Works and Still in Performance assets are valued in line Infrastructure managed to convert all R1 progress Management. with the Accounting values to Municipal values. Framework and that - The Department has also completed vesting as well as verifications of all properties. verification of list Band C VESTING: assets are finalized - There are currently 206 properties before31 March 2016. subject to a vesting process or transferprocess. I.LI - Progress will also be monitored through the Free State Provincial u Vesting committee on a monthly basis. z 11/20151(e) Financial and Implement controls to • The Department of Public Works Yes Performance ensure compliance with and Infrastructure submits c::c Management. cost containment Annexure C83 on a quarterly basis measures to prevent to Provincial Treasury. According z the re-occurrence of to the 3rd quarter feedback from irregular expenditure. Provincial Treasury, there were no c:::: findings on the cost containment I.LI measures. • The cost containment measures circular was distributed to all > officials, no new irregular expenditure has been incurred 0 thus far. • The Internal Control unit is t., monitoring the adherence to cost • • containment measures. • The Department has a zero u tolerance to non-comoliance. I C:::: � Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Resolution Subject Details Response by the department Resolved No. (Yes/No) 11/2015 1 (f) Financial and Review the annual • All prior errors were corrected with the Yes Performance financial statements submission of Interim Financial Management. and correction of prior Statements. period errors to ensure • The Department prepared an action high quality financial plan on the preparation of Annual statements are Financial Statements. submitted. • The Chief Directorate: Finance has held a meeting to discuss the implementation of Instruction Note 51 from Provincial Treasury with regard to the preparation of Annual Financial Statements. • The CFO reviews the Annual Financial Statements before they are submitted to Provincial Treasury and to Internal Audit unit. Input on feedback from both Provincial Treasury and Internal Audit unit is taken into account when the draft Annual Financial Statements are prepared. 11/2015 1 (g) Financial and Use an automated It was agreed that the office of the Still in Performance system to record and Premier will be responsible for the progress Management manage infrastructure development and maintenance of a projectsand ensure that web-based project management condition assessments system. The system must be available are performed. for viewing by Sector Departments and also for reporting purposes. Updating of the system in terms of progress made with project implementation is the responsibility of Public Works and Infrastructure. The Sector Departments will be responsible to update any sector specific information systems prescribed by the respective National Sector Departments. The Department is doing a market research to establish which system will be best suitable to be used. And also, the CFO will be meeting with National Public Works to discuss this matter further. 9. PRIOR MODIFICATIONS TO AUDIT REPORTS Nature of qualification, disclaimer, adverse Financial year in Progress made in clearing / resolvingthe opinion and matters of non-compliance which it first arose matter Procurement and contract management: 2015/2016 Consequence management to be Correct Supply Chain Management (SCM) implemented for all involved in irregular process not followed for contracts under the awarding of CDP contracts. EPWP Programme. Review internal controls to prevent recurrence. Procurement and contract management: 2015/2016 SCM to keep evidence of all adverts. IT will Advertisement not placed. be requested not to remove the adverts from the website. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Natureof qualification, disclaimer, adverse Financial year in Progress made in clearing / resolving opinion and mattersof non-compliance which it firstarose the matter Procurement and contract management: 2015/2016 All Bid Specification Committee minutes Deficiencies noted regarding bid are approved and filed accordingly specifications and evaluations thereof. Irregular expenditure: Cost containment 2015/2016 Controls are in place to ensure measures not adhered to. adherence to cost containment measures. Irregular expenditure: Transversal contract 2015/2016 OTP to confirm that SCM processes are with Premier. followed before any payments or commitment is made. Sector Audit: Insufficient budget allocated to 2015/2016 Additional funding requested from PT. address maintenance backlog. NT must allocate funds for maintenance as per approved C-AMP. I.LI Sector Audit: Infrastructure projects not 2015/2016 Liaisons with client departments to completed on time. ensure payments to contractors are u done timely. z Sector Audit: Property leased not fully 2015/2016 The department has drafted a plan to c::c utilised. ensure that office accommodation provided to user departments is z optimally utilised. To date 100% leased c:::: buildings have been inspected. I.LI Findings identified during inspection are forwarded to contract management as well as client department. In instances > where there is unutilised space the 0 department informs the landlord as well as contract management for adjustment t., of the lease payments. Currently there • • are no under-utilised buildings. u I C:::: � Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Nature of qualification, disclaimer, adverse Financial yearin Progress made in clearing / resolving opinion and matters of non-compliance which it firstarose the matter Leased commitments: Month to month 2015/2016 The Department has 65 expired leases. extension of expired lease contracts. A submission was prepared and submitted for approval to negotiate for renewal of 11 relay stations with current landlords. The submission is at the final stage of being approved. An action plan has been prepared for the renewal of the remaining 54 expired leases for buildings through procurement processes. Advertisements for 10 expired leases were published in the tender bulletin on 31 March 2017. The department has appointed landlords for 5 expired leases. The signing of lease contracts is now delegated to the MEC of Public Works and Infrastructure. This will expedite the finalisation of contracts. Immovable assets: Missing fields in property 2015/2016 The Department is continuously meeting register. with User Departments, in an attempt to obtain additional information on missing fields. Also, consulting with the surveyor general's office and deeds office. Immovable assets: Properties not recorded 2015/2016 Regular update and review of IAR is in the asset register. done continuously. Identified differences have been addressed and adjustments made. Operating expenditure: Travel and 2015/2016 Relevant SCM officials attended SCOA subsistence transactions incorrectly classified. training. Financial Managers sign on the request memo's to ensure correct classification. Operating expenditure: Discrepancies on 2015/2016 Site visit checklist has been developed, EPWP cash for waste and community works which contains participants details and projects. signatures. It is completed on a monthly basis as a head count tool for participants against the attendance and payment registers. Operating expenditure: Expenditure 2015/2016 The invoice tracking system developed payments not made within 30 days. by National Treasury called "REA PATALA" is effective and as from the 1 st April 2017, it should be fully functional and this will ensure timely payments of invoices (if cash is available). Shortfall on municipal payments to continue being reported to PT and NT through various forums. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 Nature of qualification,disclaimer, adverse Financial yearin Progress made in clearing / resolving opinion and matters of non-compliance which it firstarose the matter Predetermined objectives: AOPO - APP 2015/2016 No action required. Correspondence AND Strat Plan submitted 3 days instead of from Legislature was received late. 10 days prior to budget vote discussion to Legislature. Predetermined objectives: AOPO: No set 2015/2016 There is no target for a strategic indicator for strategic objectives reported in objective. Targets are only for the annual report and APP. performance indicators. Predetermined objectives: AOPO: Indicator 2015/2016 The indicator has now been re-defined in the AR is not well defined. (re-phrased). ICT: Security Management (IT.1). 2015/2016 The firewall has been configured and included in the DR Plan. ICT: User Access Controls (IT.2). 2015/2016 The Department has updated all User Controls as per recommendations of the AGSA. I.LI ICT: IT service continuity (IT.3). 2015/2016 The DR Facility has been established in Welkom. Testing of the DR site was u done on 22 March 2017 with live deployment envisaged for 31 March z 2017. c::c z c:::: I.LI 10. INTERNAL CONTROL UNIT > The purpose of the Internal Control Unit is to provide reasonable assurance regarding the achievement of Departmental objectives in the following categories: 0 • Effectiveness and efficiency of operations t., • Reliability of financial reporting; and • • • Compliance with applicable laws and regulations u The unit carries out the following functions: • To establish and nurture financial management policies and procedures; I • Ensure that all delegations exist and are updated annually and also ensure that they are C:::: approved by the Head of Department; • Check all payments for completeness and accuracy before final authorization on the � system; • Consolidate monthly and quarterly KCM (Key Control Matrix) reports and ensure that all supporting documents are available and filed accordingly; • Consolidate all input on action plan and audit findings; • Ensure that all inputs on PROPAC Resolutions are captured timeously; • To implement the administrative controls to ensure that policies and objectives are implemented in an efficient and effective manner, and to perform spot checks on subsistence and travelling payments; • Review of samples of financial transactions processed for accuracy and completeness, and the accurate interpretation of policy directives; • Oversee the effectiveness and use of movable assets and resources allocated. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 11. INTERNAL AUDIT AND AUDIT COMMITTEES Internal Audit Function In the period under review, the Internal Audit Function (IAF) of the Free State Department of Public Works and Infrastructure continued to fulfil its mandate to provide an independent, objective assurance and consulting activity that is designed to add value and improve the Department's operations; in line with the PFMA, Treasury Regulations and the King Report on Corporate Governance requirements. The IAF assisted the Department to accomplish its objectives by bringing a systematic and disciplined approach by evaluating and assisting in improving the effectiveness of risk management, control and governance within the Department. The function is a fully in-house function and operates in accordance with the approved Internal Audit Charter, Treasury Regulations and the International Standard of the Professional Practice of Internal Auditing (ISPPIA). The IAF is further guided by a fully functional Audit Committee which operates in terms of an approved Audit Committee Charter and the Treasury Regulations. Internal Audit Responsibilities The IAF through engagement with internal stakeholders formulated a comprehensive three year rolling plan, incorporating an annual plan that was approved by the Audit Committee. The annual audit plan of planned audits was fully executed during the year under review. The IAF also performed various consulting activities, and relationships with management improved as evidenced by the increase in management requested engagements, in turn, indicating that management acknowledges the value of the IAF within its system of governance. Furthermore, the head of the IAF has complete access and a direct reporting line to the Audit Committee and reports at each audit committee meeting on control weaknesses and other internal audit activities. The IAF coordinated the Combined Assurance Model with the guidance from the Audit Committee and Provincial Treasury. The following list constitutes the internal audit work completed during the period of review: • Review of the Departmental Annual Financial Statements • Review of the Departmental Annual Report • Legal Services - Poor management of contracts • Finance - Fruitless and wasteful expenditure • Works Design, Construction and Maintenance - Late completion of projects • Immovable Asset Management and Facility Operations - Ineffective immovable asset management • Risk Management • Facility Operations - Under collection of Revenue • Information Communication and Technology - Disaster Recovery and Business Continuity Free State Department of Public Warks and Infrastructure 2016/2017 Annual Report, Vote 9 • Expanded Public Works Programme - Follow-up • Expanded Public Works Programme - DORA Integrated Grant • Human Resources Management - Incapacity Leave • Supply Chain Management - Follow-up • Information Communication and Technology - Corporate Communications Other engagements completed included quarterly mandated as well as management requested assignments. These are: 5 nd rd • Review of the quarterly Interim Financial Statements (1 \ 2 and 3 Quarters) 5 nd rd • Review of the quarterly Performance Information (1 \ 2 and 3 Quarters) • Review on the Identification of employees possibly performing remunerative work outside of public service • Review of the 3rd draftof the 2017/18 Annual Performance Plan. The following table provides details of Audit Committee members for the 2016/17 financial year: Name Qualifications Internal or If internal, Date No. of external position in appointed Meetings the attended I.LI Department Maleho Nkomo BCom External N/A 01 September 4 of 5 u Honours BCom 2014 z MCom Andile Mahlalutye BSc Quantity Surveying External N/A Initial 2 of 5 <( Diploma in Company Direction Appointment: z Masters in Business Leadership 01 March 2011 Masters in Financial Management a::: Certificate in Development and Management of Re-appointment: I.LI Non-Governmental Organisation 01 September 2014 > Priscilla Mateta B Com Accounting External N/A Initial 4 of 5 0 Post Graduate Diploma in Engineering Business Appointment: Management 01 March 2011 t., Post GraduateCertificate in Compliance • • Management Re-appointment: Post GraduateCertificate in Corporate Governance 01 September u Post GraduateCertificate in Environmental Law 2014 Collen Weapond LLB External N/A Initial 5 of 5 l B Juris Appointment: a::: Certificate in Policing 01 March 2011 B Tech Policing/Investigations Diploma in Education Re-appointment: B. Com Honours ( IT) 01 September Postgraduate Diploma in Computer Forensic ( 2014 Course work) Diploma in Business Management Diploma in Compliance Management Programme in Fraud Management Masters in Business System (Course work Completed) George Motloi* B Com in Accounting External N/A 01 September 4 of 4 • Management Development Programme (MOP) 2014 Sibusiso Majola BCom External N/A 01 September 5 of 5 Certificatein Theory of Accounting 2014 B Com Accounting (Hons) Certified Internal Auditor *The member's services were terminated by Provincial Treasuryduring November 2016 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 12. AUDIT COMMITTEE REPORT We are pleased to present our report for the financial year ended 31 March 2017. Audit Committee Responsibility The Audit Committee reports that it has complied with its responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1.13. The Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein, except that we have not reviewed changes in accounting policies and practices. The Effectiveness of Internal Control Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the Department revealed certain weaknesses, which were then raised with the Department. The following were areas of concern: • The significant progress towards addressing the findings of the Auditor General is noted and continuous improvement in the internal control environment is encouraged to ensure that the Department moves towards a clean administration. • Attention is drawn to the growing shortfall over the payment of municipal services that accrues year on year without any solid intervention to resolve the matter. In-Year Management and Quarterly Report The Audit Committee is satisfied with the contents and quality of the Department's quarterly reports issued during the year under review and submitted to the Provincial Treasury as required by the PFMA. Evaluation of Financial Statements The Audit Committee has: • Reviewed and discussed the Annual Financial Statements included in the Annual Report, with the Accounting Officer; • Reviewed the information on the Predetermined Objectives included in the Annual Report;and • Reviewed the Department's compliance with legal and regulatory provisions. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 Auditor-General's Report We have reviewed the Department's management report for audit issues raised for the financial year audited and we are satisfied by management's implementation of the recommendations of the Auditor-General South Africa, as the number of repeat findings had declined. The Audit Committee concurs and accepts the conclusions of the Auditor-General South Africa on the annual 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. I.LI Mrs Maleho Nkomo u Chairperson of the Shared Audit Committee z Free State Department of Public Works and Infrastructure 31 July 2017 c::c z c:::: I.LI > 0 t., u• • I C:::: � F e Stat De�fj/jc-Warks-- and Infrastructure 2016/2017 An 1. INTRODUCTION 2. OVERVIEW OF HUMAN RESOUR8ES 3. HUMAN RESOURCES OVERSIGl:-lli STATISTICS Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 1. INTRODUCTION The information contained in this part of the annual report has been prescribed by the Minister for the Public Service and Administration for all departments in the public service. 2. OVERVIEW OF HUMAN RESOURCES Provide commentary on the following: • The status of human resources in the Department. • Human resource priorities for the year under review and the impact of these. • Workforce planning and key strategies to attract and recruit a skilled and capable workforce. • Employee performance management. • Employee wellness programmes. • Highlight achievements and challenges faced by the Department, as well as future human resource plans /goals. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 3. HUMAN RESOURCES OVERSIGHT STATISTICS 3.1. Personnel related expenditure The following tables summarises the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following: • amount spent on personnel • amount spent on salaries, overtime, homeowner's allowances and medical aid. Table 3. 1.1 Personnel expenditure by programme for the period1 April 2016 to 31 March 2017 Programme Total Personnel Training Professional Personnel Average expenditure expenditure expenditure and special expenditure personnel {R'000) {R'000) {R'000) services as a% of cost per expenditure total employee {R'000) expenditure {R'000) ADMINISTRATION 107 873 74 823 3 325 621 5 36 EPWP 1216 248 314 555 3 805 21 150 PUBLIC WORKS 161 141 13 205 762 6 INFRASTRUCTURE Table 3.1.2 Personnel costs by salaryband for the period1 April2016 to 31 March 2017 Salary band Personnel % of total No. of Average expenditure {R'000) personnel employees personnel cost cost per employee {R'000) Lower skilled (Levels 1-2) 42 661 11.00 286 149 Skilled (level 3-5) 164 994 40.98 862 191 Highly skilled production (levels 6-8) 73 451 18.24 220 334 Highly skilled supervision (levels 9-12) 75 116 18.66 134 561 Senior and Top management (levels 13-16) 24 017 5.97 21 1 144 Other: Learnerships 10 133 2.52 186 54 Periodical Remunerations 296 0.07 6 49 Contract (Levels 1-2) 1 614 0.04 14 115 Contract (Levels 3-5) 410 0.10 2 205 Contract (Levels 6-8) 1 374 0.34 5 275 Contract (Levels 9-12) 2 495 0.62 4 624 Contract (Levels 13-16) 6 022 1.50 5 1 204 'iMtfi l!iElffiiJ {[iiiXiii} Ofl:'@ � Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 .. , ., .., , , ,, . . , . ,, Overtime Home Owners Medical Aid Allowance Programme Amount Salaries Amount Overtime Amount HOA as a Amount Medical (R'OOO as a% of (R'OOO) as ao/oof (R'OOO) % of (R'OOO) aid as a personnel personnel personnel %of costs costs costs personnel costs Administration 51 505 13 26 1 942 3 265 Public Works Infrastructure 211 724 53 1 205 17 767 4 24 415 6 Table 3.1.4 Salaries. Overtime. Home OwnersAllowance and MedicalAid by salaryband for the period1 April 2016 to 31 March 2017 Salaries Overtime Home Owners Medical Aid Salary band Allowance Amount Salaries Amount Overtime Amount HOA as a Amount Medical (R'OOO as a% of (R'OOO) as ao/oof (R'OOO) % of (R'OOO) aid as a personnel personnel personnel %of costs costs costs personnel costs Skilled (level 1-2) 26 661 7 86 3 958 4 939 Skilled (level 3-5) 102 595 25 831 11 655 3 16 524 4 Highly skilled production (levels 6-8) 49 022 12 376 2 758 4 263 Highly skilled supervision (levels 9-12 54 887 14 25 1 229 1 983 Senior management (level 13-16) 18 862 5 377 243 Other: Learnershi s 9 988 2 3 Contract Levels 1-2 1 482 11 20 399 1 132 25 50 2 175 16 5100 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 3.2. Employment and Vacancies The tables in this section summarise the position with regard to employment and vacancies. The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment. This information is presented in terms of three key variables: • programme • salary band • critical occupations (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. Table 3.2.1 Employmentand vacancies by programme as on 31 March 2017 Programme Number of Number of Vacancy Rate Number of employees posts on posts filled additional to the approved establishment establishment Administration 205 172 16.10 2 EPWP 35 28 20 0 Public Works Infrastructure 1 665 1 539 7.57 *186 .. *Security Learners Table 3.2.2 Employmentand vacancies by salaryband as on 31 March 2017 Salary band Number of Number of Vacancy Rate Number of posts on posts filled employees approved additional to the establishment establishment Security Learnership 186 186 0 186 Lower skilled ( 1-2) 325 300 7.69 0 Skilled(3-5) 931 864 7.0 0 Highly skilled production (6-8) 280 225 10 2 Highly skilled supervision (9- 12) 153 138 9.8 1 Senior management (13-16) 30 26 13.33 0 ™Ml lj]filit'] ii� � mm Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 Table3.2.3 Employment and vacancies by critical occupations as on 31 March 2017 Critical occupation Number of Number of Vacancy Number of posts on posts filled Rate employees approved additional to establishment the establishment All Artisans In The Building Metal Machinery Etc. 126 111 11.90 0 Architects Town And Traffic Planners 4 3 25 0 Artisan Project And Related Superintendents 4 3 25 0 Electrical And Electronics EnQineerinQ Technicians 5 4 20 0 EnQineerinQ Sciences Related 8 8 0 0 EnQineers And Related Professionals 20 18 10 0 Inspectors Of Aoorentices Works And Vehicles 78 65 16.67 1 Quantity Surveyors & Rela Prof Not Class Elsewhere 10 10 0 0 Senior ManaQers 25 20 20 0 � Fr:Yil Fm mm {I Notes • The CORE classification, as prescribed by the Department of Public Service and Administration (DPSA), should be used for completion of this table. • Critical occupations are defined as occupations or sub-categories within an occupation - (a) 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; (b) 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; (c) where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and (d) in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 3.3. 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 SMS Level Total Total % of SMS Total number of % of SMS posts number of number of posts filled SMS posts vacant vacant funded SMS posts SMS posts filled Director-General/ Head of 100 0 0 Department Salary Level 16 0 0 0 0 0 Salary Level 15 0 0 0 0 0 Salary Level 14 5 5 100 0 0 Salary Level 13 20 16 80 4 20 Table3.3.2 SMS post information as on 30 September 2016 SMS Level Total Total % of SMS Total number of % of SMS posts number of number of posts filled SMS posts vacant vacant funded SMS posts SMS posts filled Director-General/ Head of 100 0 0 Department Salary Level 16 0 0 0 0 0 Salary Level 15 0 0 0 0 0 Salary Level 14 5 5 100 0 0 Salary Level 13 20 17 85 3 15 . , . , , Filling of Posts Number of Number of Number of vacancies per level vacancies per SMS Level _ vacancies per level advertised in 6 months of becoming level not filled in 6 filled in 6 months of vacant months but filled becoming vacant in 12 months Director-General/ 0 0 0 Head of Department Salary Level 16 0 0 0 Salary Level 15 0 0 0 Salary Level 14 2 2 0 Salary Level 13 0 0 0 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 Table3.3.4 Reasons for not havingcomplied with the fillingoffunded vacant SMS - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April2016 to 31 March 2017 Not applicable Not applicable Notes • In terms of the Public Service Regulations Chapter 1, Part VII C.1A.3, departments must indicate good cause or reason for not having complied with the filling of SMS posts within the prescribed timeframes. Table 3.3.5 Disciplinarysteps taken for not complying with the prescribed timeframes for fillingSMS posts within 12 months for the period 1 April2016 to 31 March 2017 Not applicable Not applicable Notes • In terms of the Public Service Regulations Chapter 1, Part VII C.1A.2, departments must indicate good cause or reason for not having complied with the filling of SMS posts within the prescribed timeframes. In the event of non-compliance with this regulation, the relevant executive authority or head of department must take appropriate disciplinary steps in terms of section 16A (1) or (2) of the Public Service Act. Note: This template is still referring to the Public Service Regulations, 2001. Public Service Regulations, 2016 came into effect on 1 August 2016. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 3.4. 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. Table 3.4.1 Job Evaluation by Salaryband forthe period 1 April2016 to 31 March 2017 Salary band Number of Number %of Posts Upgraded Posts downgraded posts on of Jobs posts Number % of Number % of approved Evaluated evaluated posts posts establishment by salary evaluated evaluated bands Lower Skilled (Levels1-2) 325 0 0 0 0 0 0 Skilled (Levels 3-5) 930 1 0.11 15 1.500 0 0 Highly skilled production (Levels 6-8) 280 0 0 50 0 0 0 Highly skilled supervision (Levels 9-12) 153 2 1.34 6 300 0 0 Senior Management Service Band A 22 2 10.53 2 100 0 0 Senior Management Service Band B 1 0 0 0 0 0 0 Senior Management Service Band C 1 0 0 0 0 0 0 Senior Management Service Band D 2 0 0 0 0 0 0 Other: Interns 186 0 0 0 0 0 0 \0El.l lj]� (;1 mlml � ffl!Iiii] m (i] The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant. Table 3.4.2 Profile of employees whosepositions were upgraded due to theirposts being upgraded forthe period 1 April2016 to 31 March2017 I 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. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 Table 3.4.3 Employees with salarylevels higher than those determined by iob evaluation by occupation for the period 1 April 2016 to 31 March 2017 Occupation Number of Job evaluation Remuneration Reason for deviation employees level level Internal Auditor 2 7 8 Staff retention. Regulation V.C3 PSR 2001 Total number of employees whose salaries exceeded the level determined by job 2 evaluation Percentage of total employed 0.1 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 salarylevels higher than those determined by iob evaluation for the period 1 April 2016 to 31 March 2017 i:it®M..,.,,.-rriiilif 114-:rrrti Notes • If there were no cases wherethe salary levels werehigher 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 None evaluation Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 3.5. 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). Table 3.5.1 Annual turnover rates by salaryband for the period 1 April 2016 to 31 March 2017 Salary band Number of Appointments Terminations Turnover rate employees at and transfers and transfers beginning of period-1 into the out of the April 2016 department department Lower skilled ( Levels 1-2) 623 1 10 1.61 Skilled (Levels 3-5) 756 10 72 9.52 Highly skilled production (Levels 6-8) 222 3 14 6.31 Highly skilled supervision (Levels 9-12) 111 2 3 2.70 Senior Management Service Bands A 18 0 2 11.11 Senior Management Service Bands B 3 1 0 0.00 Senior Management Service Bands C 2 0 1 50.00 Senior Management Service Bands D 1 0 0 0.00 Other (Learnersrship) 251 0 65 25.90 Contracts 32 4 3 13.04 'i.EEll �[!W � ill!) t;lsffi Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2016 to 31 March 2017 Critical occupation Number of Appointments Terminations Turnover rate employees at and transfers and transfers beginning of into the out of the period-April 2016 department department All Artisans In The Building Metal Machinerv Etc. 112 0 7 6.25 Architects Town and Traffic Planners 2 1 0 0.00 Artisan Project and Related Superintendents 3 0 0 0.00 Electrical and Electronics Engineering Technicians 6 0 0 0.00 EnQineerinQ Sciences Related 8 0 0 0.00 Engineers and Related Professionals 17 0 1 5.88 Inspectors Of Apprentices Works and Vehicles 72 0 2 2.78 Quantity Surveyors & Rela Prof not class elsewhere 10 0 0 0.00 Senior Managers 20 1 2 10.00 'll!lt;l!:i ttl!J fJ � Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 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 - (a) 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; (b) 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; (c) where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature and (d) 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 whystaff left the department forthe period 1 April 2016 to 31 March 2017 Termination Type Number % of Total Resignations Death 28 16.47 Resignation 24 14.12 Expiry of contract 62* 36.47 Dismissal - misconduct 2 1.18 Discharged due to ill-health 3 1.76 Retirement 51 30.00 *Securitylearners on contract. Theyassumed duty at Police, Roads and Transport on 1 October 2016 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 , , . , . , , , , , , , , , , . , . ,, , , I • , I Occupation Employees Promotions Salary level Progressions Notch 1 April to another promotions as to another progression as a 2016 salary level a %of notch within a % of employees employees by salary level by occupation occupation All Artisans in the Building Metal Machine Etc. 112 1 0.89 84 75.00 Artisan Project and Related Su erintendents 3 0 0.00 2 66.67 Electrical and Electronics Engineering Technicians 6 0 0.00 4 66.67 Engineering Sciences Related 8 0 0.00 3 37.50 Engineers and Related Professionals 17 3 17.65 11 64.71 Inspectors Of Apprentices Works and Vehicles 72 0 0.00 45 62.50 Quantity Surveyors & Rela Prof not class elsewhere 10 2 20.00 5 50.00 Senior Managers 1 1 5.00 11 55.00 Table 3.5.5 Promotions by salaryband forthe period 1 April 2016 to 31 March 2017 Salary Band Employees Promotions Salary bands Progressions Notch progression 1 April to another promotions as to another as a% of 2016 salary level a %of notch within a employees by salary employees by salary level bands salary level Lower skilled ( Levels 1-2) 623 0 0 146 23.43 Skilled (Levels3-5) 756 0 0 866 114.55 Highly skilled production (Levels 6-8) 222 3 1.35 130 58.56 Highly skilled supervision (Levels 9- 12) 111 11 9.91 78 70.27 Senior Management (Level 13-16) 24 1 4.17 14 58.33 Other: Learnership 251 0 0 0 0 Contracts 32 0 0 11 34.37 I Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 3.6. Employment Equity Table 3. 6. 1 Total number of employees (includingemployees with disabilities) in each of the followingoccupational categories as on 31 March 2017 Occupational Male Female Total category African Coloured Indian White African Coloured Indian White Legislators, 9 1 0 2 7 1 0 1 21 senior officials and managers Professionals 28 1 0 13 22 3 0 4 71 Technicians and 41 0 0 7 52 4 0 11 115 associate professionals Clerks 40 2 0 5 99 3 0 18 167 Service and 223 13 0 5 253 3 0 3 500 sales workers Skilled 0 0 0 0 0 0 0 0 0 agriculture and fishery workers Craft and related 127 1 0 17 34 0 0 0 179 trades workers Plant and 7 0 0 0 1 0 0 0 8 machine operators and assemblers Elementary 260 4 0 1 407 5 0 1 678 occupations � � m ID Ifill E:m g;J [i} gJ:] �mi) L3u1,j",.. ,:.i- [\.1,,&,Ll,1,1 r."";i_""+-°hTillIT�� m (i] rn � m (] rn � a] Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 Table 3.6.2 Total number of employees (includingemployees with disabilities) in each of the followingoccupational bands as on 31 March 2017 Occupational Male Female Total band African Coloured Indian White African Coloured Indian White Top 1 0 0 1 0 1 0 0 3 Management Senior 8 1 0 3 9 1 0 1 23 Management Professionally 61 1 0 16 50 4 0 6 138 qualified and experienced specialists and mid-management Skilled technical 102 6 0 27 60 2 0 29 225 and academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and 424 12 0 3 417 6 0 2 864 discretionary decision making Unskilled and 93 2 0 0 187 5 0 0 300 defined decision making Other: Learners 47 0 0 0 139 0 0 0 186 � 'iii;) FE (i) g.) !':m m rn � lj]iil:] Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 Table3.6.3 Recruitment for the period 1 April 2016 to 31 March 2017 Occupational Male Female Total band African Coloured Indian White African Coloured Indian White Top 0 0 0 0 0 0 0 0 0 Manaaement Senior 1 0 0 0 1 0 0 0 2 Management Professionally 2 0 0 4 2 0 0 1 9 qualified and experienced specialists and mid-management Skilled technical 5 0 0 1 7 0 0 1 14 and academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and 13 0 0 0 10 0 0 0 23 discretionary decision making Unskilled and 0 0 0 0 3 0 0 0 3 defined decision makina � m Cil [i] ,@ � m m .fJ m L3_u],j",,;.i- .. r\1,&,Ll,1,1 �illlll'"!:' [i] Cil [i] Cil � [i] [i] [i) lj] Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 Table 3. 6. 4 Promotions forthe period 1 April2016 to 31 March 2017 Occupational Male Female Total band African Coloured Indian White African Coloured Indian White Top Manaqement 0 0 0 0 0 0 0 0 0 Senior 6 0 0 2 7 0 0 1 15 Management Professionally 46 0 0 11 31 0 0 3 89 qualified and experienced specialists and mid-management Skilled technical 68 3 0 12 40 1 0 9 133 and academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and 422 9 0 0 429 5 0 2 866 discretionary decision making Unskilled and 41 1 0 0 107 4 0 0 153 defined decision making mm} � m m � � ml ID ™ liffiil ,..., 1ll•JL•l · • ,t.t.!...,_ t --,.._-: 11/IHr•:T.� gij [i] [i] � ffi] � (i) � f1;\ Table 3.6.5 Terminations for the period 1 April 2016 to 31 March 2017 Occupational band Male Female Total African Coloured Indian White African Coloured Indian White Top Management 0 0 0 0 1 0 0 0 1 Senior Management 2 0 0 0 0 0 0 0 2 Professionally 2 0 0 1 0 0 0 0 3 qualified and experienced specialists and mid- management Skilled technical and 7 0 0 1 4 0 0 3 14 academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and 38 1 0 0 33 0 0 0 72 discretionary decision making Unskilled and defined 5 0 0 0 7 0 0 0 10 decision making Other: Learner 37 0 0 0 28 0 0 0 65 irilr-" l!Jil ii [I] fl 00 [I] [i] � � rl•J I � ·- I ;;JITJ• fl.•J llrr�- 1Tl n iT-T� � [i} [i] (i) [i] [i] [i] � Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 Table 3.6.6 Disciplinaryaction for theperiod 1 April2016 to 31 March 2017 Disciplinary action Male Female Total African Coloured Indian White African Coloured Indian White Tampering with matric certificate/ misrepresented Biology symbols obtained. 1 0 0 0 0 0 0 0 1 Absenteeism 1 0 0 0 0 0 0 0 1 Theft of state property 1 0 0 0 0 0 0 0 1 Petrol card fraud 2 0 0 0 0 0 0 0 2 Table 3.6. 7 Skills development for the period 1 April 2016 to 31 March 2017 Occupational Male Female Total category African Coloured Indian White African Coloured Indian White Legislators, senior officials 1 0 0 0 1 0 0 0 2 and manaqers Professionals 13 0 0 7 3 1 0 3 27 Technicians and associate 14 0 0 3 7 3 0 7 34 professionals Clerks 0 0 0 0 5 3 0 8 16 Service and 74 8 0 0 119 3 0 0 204 sales workers Skilled agriculture and 0 0 0 0 0 0 0 0 0 fishery workers Craft and related trades 10 0 0 5 2 0 0 0 17 workers Plant and machine 0 0 0 0 0 operators and 0 0 0 0 assemblers Elementary 112 2 0 0 170 5 0 0 289 occupations . . I I I I : .. -1•!:.f;,j;}.� I I I . I [IIL'"+:leJll••r�� Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote9 3.7. 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 Signingof PerformanceAgreements by SMS members as on 31 May 2016 SMS Level Total number of Total number of Total number of Signed performance funded SMS SMS members signed agreements as% of Director-General/ posts1 1 performance1 total number4 of SMS Head of agreements members Department Salary Level 16 0 0 0 0 Salary Level 15 0 0 0 0 Salary Level 14 5 5 5 21 Salary Level 13 20 17 17 74 iE.Ell � � � l:.l:.l 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 2017. Table 3. 7.2 Reasons for not havingconcluded Performance agreements for all SMS members as on 31 March2017 � fotM ·11f FNot appll= Notes � • The reporting date in the heading of this table should be aligned with that of Table 3.7.1. Table 3. 7.3 Disciplinarysteps taken against SMS members for not havingconcluded Performance agreements as on 31 March 2017 �d¥M·1,b FNot appll= Notes � • The reporting date in the heading of this table should be aligned with that of Table 3.7.1. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 3.8. 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 disabilityfor the period 1 April 2016 to 31 March 2017 Beneficiary Profile Cost Race and Gender Number of Number of % of total Cost Average beneficiaries employees within group (R'000) cost per employee African Female 209.00 860.00 24.30 1,868.43 8,939.86 Male 200.00 712.00 28.09 2,055.02 10,275.08 Asian Female 0.00 0.00 0.00 0.00 0.00 Male 0.00 0.00 0.00 0.00 0.00 Coloured Female 6.00 18.00 33.33 56.23 9,372.13 Male 9.00 22.00 40.91 60.34 6,704.62 White Female 26.00 35.00 74.29 375.69 14,449.57 Male 26.00 49.00 53.06 582.12 22,389.34 Employees with a disability 8.00 43.00 18.60 90.70 11,337.57 iE.fill �t:Hlllll �III] mcoo .l�i/H:t:U.""iel "illlL""fikU.·HJ Table 3.8.2 Performance Rewards by salaryband forpersonnel below Senior Management Service for the period 1 April2016 to 31 March2017 Beneficiary Profile Cost Total cost as a Salary band Number of Number of % of total Total Cost Average cost % of the total beneficiaries employees within salary (R'000) per employee personnel bands expenditure Lower Skilled (Levels 1-2) 75.00 286.00 26.22 310.77 4,143.63 Skilled (level 3-5) 225.50 862.00 26.16 1,326.35 5,881.81 Highly skilled production (level 6-8) 103.50 220.00 47.05 1,254.40 12,119.84 Highly skilled supervision (level 9-12) 68.00 134.00 50.75 1,926.17 28,326.04 Other: Learners 0.00 186.00 0.00 0.00 0.00 10 Contract (Levels 1-2) 6.00 14.00 42.86 23.98 3,997.28 11 Contract (Levels 3-5) 0.00 2.00 0.00 0.00 0.00 12 Contract (Levels 6-8) 1.00 5.00 20.00 9.57 9,570.90 13 Contract (Levels 9-12) 0.00 4.00 0.00 0.00 0.00 moom � ram � � Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 Table3.8.3 Performance Rewardsby critical occupation for the period 1 April 2016 to 31 March 2017 Beneficiary Profile Cost Critical occupation Number of Number of % of total Total Cost Average cost beneficiaries employees within (R'000) per employee occupation All Artisans in the Building Metal Machinery etc. 29 111 26.13 331.26 11,422.75 Architects Town and Traffic Planners 0 3 0 0 0 Artisan Project and Related Superintendents 2 3 66.67 31.36 15,679.80 Electrical and Electronics EnQineerinQ Technicians 2 4 50 22.00 10,999.20 Engineering Sciences Related 2 8 25 74.02 37,010.40 Engineers and Related Professionals 5 18 27.78 170.41 34,082.69 Inspectors of Apprentices Works and vehicles 18 65 27.69 260.21 14,456.26 Quantity Surveyors & Rela Prof not class elsewhere 3 10 30 87.25 29,084.22 Senior ManaQers 4 20 20 191.67 47,918.18 ,,-r.nrn f.l;'1 � ff;lITT lj_JWI:l(I:l � 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 - (a) 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; (b) 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; (c) where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and (d) in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees; Table 3.8.4 Performance related rewards (cash bonus). by salaryband for Senior Management Service for the period 1 April2016 to 31 March 2017 Beneficiary Profile Cost Total cost as a Salary Number of Number of % of total Total Cost Average cost % of the total band beneficiaries employees within salary (R'000) per employee personnel bands expenditure Band A 4 17 23.53 183.86 45,964.09 19,890.26 Band B 6 16.67 53.43 53,428.20 6,330.19 Band C 0 0 0 0 2,027.60 Band D 0 Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 3.9. 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 workersby salary band for the period 1 April 2016 to 31 March 2017 Salary band 01 April 2016 31 March 2017 Change Number % of total Number % of total Number % Change Lower skilled 0 0 0 0 0 0 Skilled production 1 50 2 50 1 50 (Lev. 3-5) Highly skilled production 0 0 0 0 0 0 {Lev. 6-8) Highly skilled 0 0 0 0 0 supervision 0 {Lev. 9-12) Contract 1 50 2 50 1 50 (level 9-12) Contract 0 0 0 0 0 0 (level 13-16) "ir.rnll � Wiil a Wiil � lffiii] Table 3.9.2 Foreign workersbymaioroccupation forthe period 1 April 2016 to 31 March2017 Major 01 April 2016 31 March 2017 Change occupation Number % of total Number % of total Number % Change Elementary occu ations 50 2 50 50 Professionals and 2 50 11 3.10. 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. Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 Table 3.10.1 Sick leave for the period 1January 2016 to 31 December 2017 Salary band Total %Days Number of % of total Average Estimated days with Employees employees days per Cost Medical using sick using sick employee (R'OOO) certification leave leave Lower Skills {Level 1- 2) 2 372 61.8 268 21.35 8.85 1 083.00 Skilled {levels 3-5) 5801 64.91 693 55.22 8.37 3 497.00 Highly skilled production (levels 6-8) 1 682 60.05 170 13.55 9.89 2 010.00 Highly skilled supervision {levels 9 - 12) 861 58.3 99 7.89 8.7 1 835.00 Top and Senior management {levels 13-16) 92 44.57 15 1.2 6.13 336.00 Contract (Levels 1-2) 30 23.33 4 .32 7.5 13.00 Contract (Levels 6-8) 17 64.71 4 .32 4.25 17.00 Contract {Levels 13- 16) 8 50 2 .16 4 31.00 't1eil'ill 'UOOIOO � 0� Will [:I:fil Jar:i' I.i, I TI) . , - I • . , , , . . , , - , - , - ,, I • , •- - , - I Salary band Total %Days Number of % of total Average Estimated days with Employees employees days per Cost Medical using using employee (R'OOO) certification disability disability leave leave Lower skilled (Levels 1-2) 28 100 6.25 28 12.00 Skilled (Levels 3-5) 497 100 8 50 62.13 319.00 Highly skilled production {Levels 6- 8) 491 100 5 31.25 98.2 587.00 Highly skilled supervision {Levels 9- 12) 82 100 2 12.5 41 157.00 Senior management (Levels 13-16) 0 0 0 0 0 0 Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote 9 The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service. Table 3.10.3 Annual Leave for the period 1 January2016 to 31 December 2017 Salary band Total days taken Number of Employees Average per using annual leave employee Lower skilled (Levels 1-2) 6 529 385 16.96 Skilled Levels 3-5) 23 665 1 054 22.45 Highly skilled production (Levels 6-8) 5 581 249 22.41 Highly skilled supervision(Levels 9-12) 3 071 146 21.03 Senior management (Levels 13-16) 482 25 19.28 Contract (Levels 1-2) 215 13 16.54 Contract (Levels 13-16) 77 5 15.4 Contract (Levels 3-5) 32 2 16 Contract (Levels 6-8) 52 7 7.43 Contract (Levels 9-12) 65 4 16.25 'ilmrn � lj]f:ITTi] � Table 3.10.4 Capped leave for the period 1 January2016 to 31 December 2017 Salary band Total days Number of Average number Average capped of capped Employees of days taken leave per leave taken using capped per employee employee as on 31 leave March 2017 Lower skilled (Levels 1-2 0 0 0 0.17 Skilled Levels 3-5 51 16 3.19 52.54 Highly skilled roduction Levels 6-8 17 5 3.4 49.33 Highly skilled supervision(Levels 9- 12 8.5 5 1.7 60.66 1 1 35.68 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 April2016 to 31 March 2017 Reason Total amount (R'000) Number of Average per employees employee (R'000) Leave payout for 2016/17 due to non- RO 0 0 utilisation of leave for the previous cycle Capped leave payouts on termination of R2 004 381 .46 62 R32 328.73 service for 2016/17 Current leave payout on termination of R1 111 417.01 84 R12 231.15 service for 2016/17 Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote 9 3.11. HIV/AIDS & Health Promotion Programmes Table 3. 11. 1 Steps taken to reduce the risk of occupational exposure Units/categories of employees identified to be at high Key steps taken to reduce the risk risk of contracting HIV & related diseases (if any) Employees Awareness programmes, prevention and VHCT promotions. 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 es 1. Has the department designated a member YES Stan Diakos: Director Human Resource of the SMS to implement the provisions Management contained in Part VI E 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 Employee Health and Wellness Unit. or has it designated specific staff members YES Presently the unit has 1 employee, with to promote the health and well-being of your the second post advertised employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose. 3. Has the department introduced an YES (a) Need analysis is done Employee Assistance or Health Promotion {b) Health programmes are aligned Programme for your employees? If so, with National Health Calendar indicate the key elements/services of this (c) Awareness, presentations and Programme. screenings are done. {d) EAP- assists with psychosocial challenges to employees and their immediate families. 4. Has the department established (a) YES Peer Educators are nominated in committee(s) as contemplated in Part VI E.5 Districts for the smooth running of (e) of Chapter 1 of the Public Service Health and Wellness programmes. Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent. 5. Has the department reviewed its YES (a) HIV/AIDS and TB Policy employment policies and practices to ensure (b)Health and Productivity Management that these do not unfairly discriminate Policy against employees on the basis of their HIV (c ) Wellness Management Policy status? If so, list the employment All the mentioned policies do not policies/practices so reviewed. discriminate against employees on the basis of their HIV status. 6. Has the department introduced measures to YES The policy states clearly how the protect HIV-positive employees or those Department deals with such incidence. perceived to be HIV-positive from discrimination? If so, list the key elements of these measures. 7. Does the department encourage its YES VHCT is conducted with the help of employees to undergo Voluntary DoH periodically and confidentiality of Counselling and Testing? If so, list the results are safeguarded. results that you have you achieved. 8. Has the department developed NO measures/indicators to monitor & evaluate the impact of its health promotion programme? If so, list these measures/indicators. Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 3.12. Labour Relations Notes • If there were no agreements, keep the heading and replacethe table with the following: I Total number of collective agreements I None The following table summarises the outcome of disciplinary hearings conducted within the department forthe year under review. Table 3. 12. 2 Misconductand disciplinaryhearings finalised forthe period 1 April 2016 to 31 March 2017 Outcomes of disciplinary hearings Number % of total Correctional counselling 0 0 Verbal warning 0 0 Written warning (Informal disciplinary action) 1 12.5 % Final written warning (Informal disciplinary action) 3 37.5 % Suspended without pay + Final written warning (Formal 1 12.5 % Hearing) Suspended without pay 1 12.5 % Demotion 0 0 Dismissal (Formal Hearing) 2 25% Not guilty 0 0 Case withdrawn 0 0 � (:) 'i.I!I!Jfl! Notes • If there were no agreements, keep the heading and replacethe table with the following: I Total number of Disciplinary hearings finalised 4 Table 3. 12. 3 Types of misconduct addressed at disciplinaryhearings for the period 1 April 2016 to 31 March 2017 Type of misconduct Number % of total Tampering with matric certificate/ misrepresented Biology symbols 1 25% obtained. Absenteeism 1 25% Theft of state property 1 25% Possible petrol card fraud 1 25% 'lGEU G U!l!J� Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 Number of grievances resolved 16 100% Number of grievances not resolved 0 Table 3. 12. 5 Disputes logged with Councils for the period 1 April2016 to 31 March 2017 Disputes Number % of Total Number of disputes upheld 0 0 Number of disputes dismissed 0 0 Table 3 12 6 Strike actions for the oeriod 1 Aoril2016 to 31 March 2017 Total number of persons working days lost 0 Total costs working days lost 0 Amount recovered as a result of no work no pay (R'000) 0 Table 3. 12. 7 Precautionarvsusoensions for the oeriod 1 Aoril2016 to 31 March 2017 Number of people suspended 6 Number of people who's suspension exceeded 30 6 days Average number of days suspended 12 months Cost of suspension(R'000) R1 398 000.00 Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 3.13. Skills development This section highlights the efforts of the Department with regard to skills development. Table 3. 13. 1 Trainingneeds identified for the period 1 April 2016 to 31 March 2017 Training needs identified at start of the reporting period Occupational category Gender Skills Programmes & Other forms Learnerships Total other short courses of training Legislators, senior officials Female 0 0 7 7 and managers Male 0 5 5 10 Female Professionals 0 15 10 25 Male 0 23 12 35 Technicians and associate Female 0 20 0 20 professionals Male 0 20 0 20 Female Clerks 0 60 0 60 Male 0 80 0 80 Female Service and sales workers 0 100 0 100 Male 0 90 0 90 Female Skilled agriculture and 0 0 0 0 fishery workers Male 0 0 0 0 Craft and related trades Female 0 15 0 15 workers Male 0 15 0 15 Plant and machine Female 0 0 0 0 operators and assemblers Male 0 0 0 0 Female Elementary occupations 0 150 0 150 Male 0 150 0 150 Female Sub Total 0 360 17 377 Male 0 383 17 400 . . I Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 . . . • • • • •• • ... •• , . I • • I Training Provided Number of Occupational Skills Gender employees as Other category Programmes & at 1 April 2016 Learnerships forms of Total other short training courses Legislators, senior Female officials and 8 0 0 5 5 mana ers Male 13 0 4 5 9 Female Professionals 25 0 15 9 24 Male 38 0 23 12 35 Technicians and Female associate 71 0 24 4 28 professionals Male 53 0 20 6 26 Female Clerks 126 0 69 0 69 Male 46 0 81 0 81 Service and sales Female 336 0 101 0 101 workers Male 373 0 78 0 78 Craft and related Female 33 0 15 0 15 trades workers Male 155 0 21 0 21 Plant and machine Female operators and 0 0 0 0 assemblers Male 9 0 0 0 0 Elementary Female 448 0 169 0 169 occupations Male 288 0 159 0 159 Female Sub Total 1 048 0 393 18 411 Male 975 0 386 23 409 3.14. Injury on duty The following tables provide basic information on injury on duty. Table 3.14.1 lniurvon duty for the period1 April 2016 to 31 March 2017 Nature of injury on duty Number % of total Required basic medical attention only 1 11.1 Temporary Total Disablement 7 77.8 Permanent Disablement 1 11.1 Fatal 0 0 1Elfil.l ID U!.l!J Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 3.15. Utilisation of Consultants The following tables relate to information on the utilisation of consultants in the department. In terms of the Public Service Regulations "consultant' means a natural or juristic person or a partnership who or which provides in terms of a specific contract on an ad hoe basis any of the following professional services to a department against remuneration received from any source: (a) The rendering of expert advice; (b) The drafting of proposals for the execution of specific tasks; and (c) The execution of a specific task which is of a technical or intellectual nature, but excludes an employee of a department. Table3. 15. 1 Reporton consultant appointments using appropriatedfunds for the period 1 April 2016to 31 March 2017 Project title Total number of Duration Contract value in consultants that (work Rand worked on project days) Health Risk Manager {Thandile) 1 12 Months R214 514.52 Lebea Attorneys 1 12 Months R406 230.15 Mthembu Attorneys 1 12 Months R155 325.00 ML Mashego Attorneys 1 12 Months R339 473.00 Total number of projects Total individual consultants Total Total contract value in duration Rand - -�Work days Table 3.15.2 Analysis of consultant appointments using appropriated funds. in terms of HistoricallyDisadvantaged Individuals (HDls) forthe period 1 April 2016 to 31 March 2017 Project title Percentage ownership Percentage Number of consultants by HDI groups management by HDI from HDI groups that groups work on the project Table 3. 15.3 Report on consultant appointments using Donor funds for the period 1 April 2016 to 31 March 2017 Project title Total Number of Duration Donor and contract value consultants that worked (Work in Rand on project days) Total number of projects Total individual Total Total contract value in consultants duration Rand Work days Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 Table 3. 15.4 Analysis of consultant appointments usingDonor funds. in terms of HistoricallyDisadvantaged Individuals (HDls) for the period 1 April 2016 to 31 March 2017 Project title Percentage ownership Percentage Number of consultants by HDI groups management by HDI from HDI groups that groups work on the project 3.16. Severance Packages Table 3. 16. 1 Grantingof employee initiated severance packages for the period 1 April 2016 to 31 March 2017 Salary band Number of Number of Number of Number of applications applications applications packages received referred to the supported by approved by MPSA MPSA department Lower skilled {Levels 1-2) 0 0 0 0 Skilled Levels 3-5) 0 0 0 0 Highly skilled production {Levels 6-8) 0 0 0 0 Highly skilled supervision{Levels 9-12) 0 0 0 0 Senior management (Levels 13-16) 0 0 0 0 U:lEll (l) (!) (!) (!) FreeState Department af Public Worksand Infrastructure 2016/2017 Annual Report, Vote 9 FreeState Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 CONTENTS 1. REPORT OF THE AUDITOR GENERAL 2. ANNUAL FINANCIAL STATEMENTS Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 1. REPORT OF THE AUDITOR-GENERAL TO THE FREE STATE LEGISLATURE ON VOTE NO. 9: DEPARTMENT OF PUBLIC WORKS AND INFRASTRUCTURE I Report on the audit of the financial statements Opinion 1. I have audited the financial statements of the Department of Public Works and Infrastructure set out on pages 154 to 237, which comprise the appropriation statement, statement of financial position as at 31 March 2017, 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, the financial statements present fairly, in all material respects, the financial position of the Department of Public Works and Infrastructure as at 31 March 2017, 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, 2016 (Act No. 3 of 2016) (DoRA). Basis for opinion 3. 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 my report. 4. 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. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Material uncertainty related to going concern 6. I draw attention to note 18 in the financial statements, which indicates that the department had significant accruals of R26 002 000 and payables not recognised of R395 566 000 as at 31 March 2017. A significant portion of these balances relates to amounts due for municipal services of R397 807 000. These events or conditions, along with other matters set forth in note 18, indicate that a material uncertainty exists that may cast significant doubt on the Department's ability to Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 meet its financial obligations as they fall due and achieve service delivery as outlined in the annual performance plan. My opinion is not modified in respect of this matter. Emphasis of matter 7. I draw attention to the matter below. My opinion is not modified in respect of this matter. Restatement of corresponding figures z 8. As disclosed in note 30 to the financial statements, the corresponding figures for 0 31 March 2016 have been restated as a result of errors in the financial - statements of the department at, and for the year ended, 31 March 2017. Other matter ::E 9. I draw attention to the matter below. My opinion is not modified in respect of this a::: matter. 0 LL. Management of infrastructure projects -z 10. The Department of Public Works and Infrastructure is the technical implementing agent of the provincial departments with regards to construction and maintenance ...J of provincial infrastructure. The department monitors the progress on projects c:c and certifies that the work performed by contractors is satisfactory, thus making - the certificate eligible for payment by the client departments as the budgets for u these projects are included in relevant departmental budget votes. z 11. During the 2016/17 financial year, one of the projects being monitored by the c:c Department of Public Works and Infrastructure is the construction of Hani Park z Primary School. This project commenced in May 2013 with a planned completion - date of November 2015. A delay in completing the project in time was LL. experienced due to various reasons, including poor quality of work, and was later • • ceded to another contractor. As a result thereof the revised anticipated completion date changed to 30 November 2017. Most structures had to be demolished although the Department of Public Works and Infrastructure certified the work performed as of good quality and that Department of Education could proceed with the payment. Responsibilities of the 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 the 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 the financial statements that are free from material misstatement, whether due to fraud or error. Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 13. In preparing the financial statements, the accounting officer is responsible for assessing the Department of Public Works and Infrastructure'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 intention is to liquidate the department or cease operations, or there is 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 the 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 the auditor's report. I 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 2017: Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 Programmes Pages in the Annual Performance Report Programme 2 -PUBLIC WORKS INFRASTRUCTURE 64-76 Programme 3 -EXPANDED PUBLIC WORKS PROGRAMME 77 - 81 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 z performance information to determine whether it was valid, accurate and 0 complete. - 20. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes: ::E Programme 2 - public works infrastructure a::: Programme 3 - expanded public works programme. 0 LL. Other matter 21. I draw attention to the matter below. -z Achievement of planned targets ...J 22. Refer to the annual performance report on pages 64 to 81 for information on the -c:c achievement of planned targets for the year and explanations provided for the u under- and overachievement of a significant number of targets. z c:c I Report on audit of compliance with legislation -z Introduction and scope LL. • • 23. 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. 24. The material finding in respect of the compliance criteria for the applicable subject matter is as follows: Expenditure management 25. Contractual obligations and money owed by the department were not met and settled within 30 days, as required by section 38(1)(f) of the PFMA and treasury regulation 8.2.3. FreeState Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 I Other information 26. The Department of Public Works and Infrastructure's 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 thereon and those selected programmes presented in the annual performance report that have been specifically reported on in the auditor's report. 27. 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. 28. 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. If, based on the work I have performed on the other information obtained prior to the date of this auditor's report, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. I Internal control deficiencies 29. 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 thereon. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on compliance with legislation included in this report. 30. Payments to third parties were not made within 30 days of receipt of invoices due to the budgetary constraints experienced by the department during the financial year under review. The significant portion of the invoices not settled within 30 days related to money owed to municipalities. Bloemfontein 31 July 2017 _-..... ·.., . ... L ....' 7» AU DI TOR- GENERAL SOUT H AF RICA Auditing to build public confidence Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote 9 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 Department of Public Works and Infrastructure's compliance with respect to the selected subject matters. Financial statements z 2. In addition to my responsibility for the audit of the financial statements, as 0 described in the 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 ::E sufficient and appropriate to provide a basis for my opinion. The risk of not a::: detecting a material misstatement resulting from fraud is higher than for one 0 resulting from error, as fraud may involve collusion, forgery, intentional LL. omissions, misrepresentations or the override of internal control. -z • 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 ...J the purpose of expressing an opinion on the effectiveness of department's c:c internal control. u- • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by z the accounting officer. c:c z • conclude on the appropriateness of the accounting officer's use of the going LL.- 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 Department of Public Works and Infrastructure'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 the auditor's report. However, future events or conditions may cause the department to cease operating 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. Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote 9 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. FreeState Departmentof Public Worksand Infrastructure2016/2017 Annual Report, Vote9 ANNUAL FINANCIAL StAlEMEN�S .....C-'. L-A .... FOR THE YEAR ENDED 31 MARCH 2017 FreeState Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Appropriation per programme 2016/17 2015/16 Expenditure as% of Adjusted Shifting of Final Actual final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation Expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ,it Programme � 1. Administration 117 409 - (9 309) 108 100 107 873 22 7 99.8% 111214 110 937 � 2. Public Works Infrastructure 1 201217 - 15 074 1216 291 1216 248 43 100.0% 1207288 1206 682 � 3. Expanded Public Works .Q, 16 7 946 - (5 76 5) 162 181 162 141 40 100.0% 185 793 185 736 Proaramme §.. � TOTAL 1486572 - - 1486572 1486 262 310 100.0% 1504295 1503 355 Reconciliation with statement of financial performance � � :," ADD � � Departmental receipts - - - - 2 NRF Receipts 2: Aid assistance - - Actual amounts per statement of financial performance (total revenue) 1486572 1504295 � " ):,. :, ADD :, Aid assistance - - C: Prior year unauthorised expenditure approved without funding - - ..,0 ,... Actual amounts per statement of financial performance (total expenditure) 1486 262 1503 355 � "',it APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Appropriation per economic classification 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Economic classification Current payments 947 429 (159) 12 115 959 385 958 204 1 181 99.9% 962 824 962 116 � Compensation of employees 402 058 74 967 403 099 402 583 516 99.9% 402 863 402 532 � Salaries and wages 339 038 1 438 439 340 915 340 789 126 100.0% 340 822 340 586 l Social contributions 63 020 (1 364) 528 62 184 61 794 390 99.4% 62 041 61 946 .Q, Goods and services 545 371 (233) 11 148 556 286 555 621 665 99.9% 559 961 559 584 Administrative fees 391 16 (39) 368 354 14 96.2% 272 252 � Advertising 1 082 (45) (2) 1 035 1 033 2 99.8% 936 934 � C Minor assets 1 168 (354) 401 1 215 975 240 80.2% 978 955 ::, Audit costs: External 8 900 (1 620) (1 502) 5 778 5 778 - 100.0% 7 634 7 633 �i3 Bursaries: Employees 3 018 (104) (561) 2 353 2 353 - 100.0% 1 819 1 819 Catering: Departmental 684 69 (35) 718 711 7 99.0% 1 184 1 174 activities Communication 5 731 (907) (604) 4 220 4203 17 99.6% 6 878 6 846 Computer services 4 321 505 10 4 836 4 832 4 99.9% 3483 3 478 Consultants: Business and " 4427 (998) 1 000 4429 4427 2 100.0% 5 181 5177 ),. advisory services ::, ::, Legal services 1 194 272 (446) 1 020 1 019 1 99.9% 1 137 1 136 Contractors 37 356 (2 004) (5 148) 30 204 30 193 11 100.0% 37 174 37 164 Agency and support/ 0 36 (1) (2) 33 33 - 100.0% 33 32 ,...... outsourced services � Entertainment 56 (9) (1) 46 42 4 91.3% 64 55 ;;; IO Fleet services 6 545 (625) (148) 5 772 5 753 19 99.7% 6 415 6 406 PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Appropriation per economic classification (Continued) 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 @" Inventory: Clothing material 1 471 (940) (500) 31 31 - 100.0% 427 426 i and supplies � Inventory: Materials and 1 842 (85) (239) 1 518 1 509 9 99.4% 2 546 2 535 � supplies .Q, Inventory: Other supplies 2 351 431 - 2 782 2 781 1 100.0% 2 022 2 022 §. Consumable supplies 1 117 81 (51) 1 147 1 130 17 98.5% 880 915 � Consumable: Stationery, 2 924 (260) (47) 2 617 2 586 31 98.8% 2 373 2 328 � printing and office supplies � ::," Operating leases 195 766 7 640 22 822 226 228 226 154 74 100.0% 208 958 208 948 Property payments 248 822 (4 603) 338 244 557 244 449 108 100.0% 255 575 255 528 �i:l Transport provided: 496 12 (15) 493 492 1 99.8% 693 692 Departmental activity Travel and subsistence 12 729 (95) (864) 11 770 11 686 84 99.3% 11 271 11 122 Training and development 1 281 1 537 (1 084) 1 734 1 734 - 100.0% 1 124 1 122 Operating payments 1 452 1 897 (2 732) 617 601 16 97.4% 842 825 � Venues and facilities 211 597 765 762 3 99.6% 62 60 " (43) ):,. ::, ::, Transfers and subsidies 333 012 195 (304) 332 903 332 892 11 100.0% 345 752 345 735 Provinces and municipalities 329 177 - - 329 177 329 168 9 100.0% 342 409 342 401 ..," Municipalities 329 177 - - 329 177 329 168 9 100.0% 342 409 342 401 � Municipal bank 329 177 - - 329 177 329 168 9 100.0% 342 409 342 401 @" accounts I.O Departmental agencies and 9 51 (22) 38 37 1 97.4% 3 1 accounts APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Appropriation per economic classification (Continued) 2016/17 2015 /16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Departmentalagencies and � 9 51 (22) 38 37 1 97.4% 3 1 accounts � Households 3 826 144 (282) 3 688 3 687 1 100.0% 3 340 3 333 l Social benefits 3 578 140 (30) 3 688 3 687 1 100.0% 3 191 3186 .Q, Other transfers to 248 4 (252) - - - - 149 147 households � � Payments for capital assets 206131 (36) (11 811 ) 194 284 194130 154 99.9% 195 71 9 195 226 C ::, Buildings and other fixed 199 991 (1 715) (10 997) 187 279 187 141 138 99.9% 190 487 190 071 structures �i3 Buildings 82 267 (1 715) (10 997) 69 555 69 417 138 99.8% 58 323 57 907 Other fixed structures 117 724 - - 117 724 117 724 - 100.0% 132 164 132 164 Machinery and equipment 5 848 1 679 (814) 6 713 6 697 16 99.8% 4 656 4 580 Other machinery and 5 848 1 679 (814) 6 713 6 697 16 99.8% 4 656 4 580 equipment � Intangible assets 292 - - 292 292 - 100.0% 576 575 " ),, ::, ::, Payments for financial assets -- -- 1 036 (1 036) - - 278 0... TOTAL 1486572 - - 1486572 1486 262 310 100.0% 1504 295 1503 355 ,..... � ;;; IO PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Programme 1: Administration 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 iil" Sub programme � 1. Office of the MEC 9 015 (2) (602) 8 411 8 348 63 99.3% 7 761 7 805 � 2. Management of the i 12 668 (176) (207) 12 285 12 250 35 99.7% 12 031 11 966 .Q, Department 3. Corporate Support 95 726 178 (8 500) 87 404 87 275 129 99.9% 91 422 91 166 Total for sub programmes 117 409 - (9 309) 108 100 107 873 227 99.8% 111 214 110 937 � � C ::, Economic classification �i3 Current payments 112 766 - (8 526) 104 240 103 905 335 99.7% 104 503 104 142 Compensation of employees 75 889 - (964) 74 925 74 823 102 99.9% 70 584 70 451 Salaries and wages 64 755 925 (787) 64 893 64 824 69 99.9% 61 203 61 139 Social contributions 11 134 (925) (177) 10 032 9 999 33 99.7% 9 381 9 312 Goods and services 36 877 - (7 562) 29 315 29 082 233 99.2% 33 919 33 691 � Administrative fees 285 48 (28) 305 296 9 97.0% 229 214 " ):,. ::, Advertising 1 082 (45) (2) 1 035 1 033 2 99.8% 936 934 ::, Minor assets 428 (599) 358 187 180 7 96.3% 409 396 Audit costs: External 8 900 (1 620) (1 502) 5 778 5 778 - 100.0% 7 634 7 633 0.., Bursaries: Employees 3 018 (104) (561) 2 353 2 353 - 100.0% 1 819 1 819 ,..,. Catering: Departmental � 556 64 (27) 593 588 5 99.2% 1 112 1105 iil" activities IO Communication 3 924 (566) (522) 2 836 2 827 9 99.7% 4 556 4 540 Computer services 4 321 505 10 4 836 4 832 4 99.9% 3 481 3 477 APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Programme 1: Administration (Continued) 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure ril" R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 % � Consultants: Business and 882 (261) - 621 621 - 100.0% 652 648 advisory services � Legal services 1 194 272 (446) 1 020 1 019 1 99.9% 1 137 1 136 � .Q, Contractors 293 151 (3) 441 437 4 99.1% 2 144 2142 Agency and support / 36 (1) (2) 33 33 - 100.0% 33 32 outsourced services � Entertainment 30 (5) (1) 24 21 3 87.5% 40 35 � Fleet services 733 (100) (84) 549 534 15 97.3% 673 667 ::," Inventory: Materials and 71 3 - 74 71 3 95.9% 23 18 � supplies a Consumable supplies 900 (54) (51) 795 786 9 98.9% 486 476 Consumable: Stationery, 1 802 (284) (30) 1 488 1 466 22 98.5% 1 566 1 535 printing and office supplies Operating leases 1 383 (73) 22 1 332 1261 71 94.7% 1 721 1 715 � Property payments 11 (8) - 3 2 1 66.7% 2 1 " Transport provided: ):, 496 12 (15) 493 492 1 99.8% 693 692 ::, Departmental activity ::, Travel and subsistence 4 270 (515) (645) 3 110 3 052 58 98.1% 3 221 3136 Training and development 1 280 1 011 (1 319) 972 972 - 100.0% 1 105 1 103 0 ,...... Operating payments 858 2 229 (2 703) 384 377 7 98.2% 230 221 � Venues and facilities 124 (60) (11) 53 51 2 96.2% 17 16 "'ril" PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Programme 1: Administration (Continued) 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ril" - Transfers and subsidies 937 (419) 518 516 2 99.6% 330 325 � Departmental agencies and 9 50 (22) 37 36 1 97.3% 2 accounts � Departmental agencies 9 50 (22) 37 36 1 97.3% 2 - � .Q, Households 928 (50) (397) 481 480 1 99.8% 328 325 §.. Social benefits 680 (52) (147) 481 480 1 99.8% 259 257 � Other transfers to 248 2 (250) - - - - 69 68 � households � ::," Payments for capital assets 3 706 - (364) 3 342 3 333 9 99.7% 6 381 6 315 � Buildings and other fixed � ------2 720 2 720 structures 2 2: Buildings ------2 720 2 720 Machinery and equipment 3 414 - (364) 3 050 3 041 9 99.7% 3 085 3 020 Other machinery and � 3 414 - (364) 3 050 3 041 9 99.7% 3 085 3 020 equipment " ),. Intangible assets 292 - - 292 292 - 100.0% 576 575 ::, ::, C: Payments for financial assets -- -- 119 (119) - - 155 ..,0 ,... TOTAL 117 409 - (9 309) 108 100 107 873 227 99.8% 111 214 110 937 � "'ril" APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 1.1: Office of the MEC 2016/1 7 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 nl" Current payments 8 940 (1) (752) 8187 8125 62 99.2% 7 728 7 707 � Compensation of employees 5 267 - 83 5 350 5 345 5 99.9% 4 451 4447 Goods and services 3 673 (1) (835) 2 837 2 780 57 98.0% 3277 3 260 � i .Q, Transfers and subsidies 1 - (1) -- -- 1 - Departmental agencies and 1 - (1) - - - - 1 - accounts � � C Payments for capital assets 74 (1) 151 224 223 1 99.6% 32 32 ::, Machinery and equipment 74 (1) 151 224 223 1 99.6% 32 32 �a Payments for financial assets ------66 TOTAL 9 015 (2) (602) 8 411 8348 63 99.3% 7 761 7 805 � " ):,. ::, ::, 0 ,..,..., � nl" \0 PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 1.2 Management of the Department 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 iil" Current payments 12 503 (153) (189) 12 161 12 126 35 99.7% 11 838 11 772 � Compensation of employees 10 794 167 (93) 10 868 10 856 12 99.9% 10 619 10 607 Goods and services 1 709 (320) (96) 1 293 1 270 23 98.2% 1 219 1 165 � � - .Q, Transfers and subsidies 1 21 (1) 21 20 1 95.2% 1 §. Provinces and municipalities � Departmental agencies and 1 - - 1 - 1 - 1 - � accounts "� Households - 21 (1) 20 20 - 100.0% - - ::, � Payments for capital assets 164 (44) (17) 103 102 1 99.0% 192 181 � Machinery and equipment 164 (44) (17) 103 102 1 99.0% 192 181 Payments for financial assets -- -- 2 (2) - - 13 � " TOTAL 12 668 (176) (207) 12 285 12 250 35 99.7% 12 031 11 966 )> ::, ::, ".., ,... � iil" Sub-programme: 1.3 Corporate Support 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 @" Current payments 91 323 154 (7 585) 83 892 83 654 238 99.7% 84 937 84 663 i Compensation of employees 59 828 (167) (954) 58 707 58 622 85 99.9% 55 514 55 397 Goods and services 31 495 321 (6 631) 25 185 25 032 153 99.4% 29 423 29 266 � � .Q, Transfers and subsidies 935 (21) (417) 497 496 1 99.8% 328 325 §. Departmental agencies and � 7 50 (21) 36 36 - 100.0% - - accounts � Households 928 (71) (396) 461 460 1 99.8% 328 325 � ::," Payments for capital assets 3 468 45 (498) 3 015 3 008 7 99.8% 6157 6102 �cl Buildings and other fixed ------2 720 2 720 structures Machineryand equipment 3 176 45 (498) 2 723 2 716 7 99.7% 2 861 2 807 Intangible assets 292 - - 292 292 - 100.0% 576 575 � Payments for financial assets -- -- 117 (117) - - 76 " ):,, ::, ::, TOTAL 95 726 178 (8 500) 87 404 87 275 129 99.9% 91 422 91 166 ,....,0 � @" I.O PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Programme2: Public Works Infrastructure 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ,it Sub programme � 1. Programme Support 4 282 206 (11 ) 4477 4 459 18 99.6% 4 163 4 156 � 2. Planning 9 543 (6) 283 9 820 9 819 1 100.0% 8 460 8462 � .Q, 3. Design 20 655 (5) 225 20 875 20 868 7 100.0% 18 330 18 291 §.. 4. Construction 79 661 (102) (9 005) 70 554 70 418 136 99.8% 56 253 55 824 � � 5. Maintenance 167 572 (2 034) (1 130) 164 408 164 743 (335) 100.2% 159 611 159 582 � 6. Immovable Asset :," 771 473 2 629 22 685 796 787 796 707 80 100.0% 805 472 805 396 Management � 7. Facility Operations 148 031 2 027 149 370 149 234 136 99.9% 154 999 154 971 � (688) 2 Total for sub programmes 1 201217 - 15 074 1 216291 1216248 43 100.0% 1207288 1206 682 2: Economic classification � Current payments 784 647 (59) 26215 810 803 810 02 7 776 99.9% 808 609 808 337 " ),. :, Compensation of employees 312 323 74 2 538 314 935 314 555 380 99.9% 318 899 318 728 :, C: Salaries and wages 261 852 501 1 828 264 181 264 134 47 100.0% 267 648 267 495 Social contributions 50 471 (427) 710 50 754 50 421 333 99.3% 51 251 51 233 ..,0 Goods and services 472 324 (133) 23 677 495 868 495 472 396 99.9% 489 710 489 609 ,... Administrative fees 87 (32) (6) 49 47 2 95.9% 33 29 � ,it Minor assets 684 232 (5) 911 685 226 75.2% 479 471 "' Catering: Departmental 62 (17) - 45 44 1 97.8% 6 4 activities Communication 1 573 (331) (38) 1 204 1 197 7 99.4% 1 956 1 946 APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Programme 2: Public Works Infrastructure (Continued) 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure iil" R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 % � Computer services ------2 1 Consultants: Business and � 3 545 (737) 1 000 3 808 3 806 2 99.9% 4 529 4 529 advisory services � .Q, Contractors 2 872 (744) (33) 2 095 2 092 3 99.9% 148 146 §. Entertainment 18 (2) - 16 15 1 93.8% 18 14 � Fleet services 5 613 (498) - 5 115 5 111 4 99.9% 5 544 5 541 � Inventory: Clothing material � 971 (940) - 31 31 - 100.0% 427 426 and supplies "::, Inventory: Materials and 1 771 (89) (239) 1 443 1 438 5 99.7% 2 521 2 516 � supplies � Inventory: Other supplies 2 351 431 - 2 782 2 781 1 100.0% 2 022 2 022 Consumable supplies 214 134 - 348 341 7 98.0% 393 438 Consumable: Stationery, 991 27 - 1 018 1 014 4 99.6% 753 743 printing and office supplies � Operating leases 194 223 7 713 22 812 224 748 224 746 2 100.0% 207 077 207 073 " )> Property payments 248 811 (4 595) 338 244 554 244 447 107 100.0% 255 573 255 527 ::, ::, Travel and subsistence 7 912 (383) (152) 7 377 7 363 14 99.8% 7 559 7 521 Training and development 1 ( 1) - - - - - 19 19 Operating payments 542 (320) - 222 213 9 95.9% 606 599 ".., ,... Venues and facilities 83 19 - 102 101 1 99.0% 45 44 � iil" PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Programme2: Public Works Infrastructure (Continued) 2016/17 2015 /16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ril" Transfers and subsidies 332 07 5 195 115 33238 5 332 376 9 100.0% 345 422 345 410 i Provinces and municipalities 329 177 - - 329 177 329 168 9 100.0% 342 409 342 401 � Municipalities 329 177 - - 329 177 329 168 9 100.0% 342 409 342 401 � Municipal bank 329 177 - - 329 177 329 168 9 100.0% 342 409 342 401 .Q, accounts Departmental agencies and - 1 - 1 1 - 100.0% 1 1 accounts � Departmental agencies - 1 - 1 1 - 100.0% 1 1 "� Households 2 898 194 115 3 207 3 207 - 100.0% 3 012 3 008 ::, Social benefits 2 898 192 117 3 207 3 207 - 100.0% 2 932 2 929 �i:l Other transfers to - 2 (2) - - - - 80 79 households Payments for capital assets 84 495 (13 6) (11 25 6) 73 103 72 95 9 144 99.8% 53 25 7 52 83 3 Buildings and other fixed � 82 267 (1 715) (10 997) 69 555 69 417 138 99.8% 51 812 51 397 structures " ):,. Buildings 82 267 (1 715) (10 997) 69 555 69 417 138 99.8% 51 812 51 397 ::, ::, Machinery and equipment 2 228 1 579 (259) 3 548 3 542 6 99.8% 1 445 1 436 Other machinery and 2 228 1 579 (259) 3 548 3 542 6 99.8% 1 445 1 436 equipment ..," ,... � ril" Payments for financial assets -- -- 886 (886) - - 102 \0 TOTAL 1201 217 - 15 07 4 1216291 1216248 43 100.0% 1207 288 1206 682 APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 2.1 Programme Support 2016 /17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure ril" Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 � Current payments 4107 164 16 4287 4270 17 99.6% 4 077 4056 � Compensation of employees 3 620 267 39 3 926 3 916 10 99.7% 3 653 3 644 � Goods and services 487 (103) (23) 361 354 7 98.1% 424 412 .Q, §.. � Transfers and subsidies - 42 8 50 50 - 100.0% -- � Households - 42 8 50 50 - 100.0% - - � ::," o - Payments f r capital assets 175 (3 5) 14 0 13 9 1 99.3% 86 84 � Machinery and equipment 175 - (35) 140 139 1 99.3% 86 84 � 2 2: Payments for financial assets ------16 TOTAL 4282 206 (11) 4477 4459 18 99.6% 416 3 4156 � " ),. ::, ::, C: ..,0 ,... � "'ril" PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 2.2 Planning 2016/17 2015 /16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 iil" Current payments 9 493 (6) 284 9 771 9 762 9 99.9% 8423 8409 � Compensation of employees 8 966 (17) 284 9 233 9 226 7 99.9% 8 018 8 013 Goods and services 527 11 - 538 536 2 99.6% 405 396 � � .Q, Transfers and subsidies 2 - - 2 2 - 100.0% 2 2 §. Households 2 - - 2 2 - 100.0% 2 2 � � Payments for capital assets 48 - (1) 47 47 - 100.0% 35 35 � "::, Machinery and equipment 48 - (1) 47 47 - 100.0% 35 35 � � Payments for financial assets -- -- 8 (8) - - 16 TOTAL 9 543 (6) 283 9 820 9 819 1 100.0% 8460 8462 � " )> ::, ::, ".., ,... � iil" Sub-programme: 2.3 Design 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ril" Current payments 20 588 (51) 225 20 762 20 755 7 100.0% 17 889 17 852 � Compensation of employees 18 958 210 266 19 434 19 430 4 100.0% 16 290 16 259 Goods and services 1 630 (261) (41) 1 328 1 325 3 99.8% 1 599 1 593 � � .Q, Transfers and subsidies 3 46 - 49 49 - 100.0% 376 375 Households 3 46 - 49 49 - 100.0% 376 375 � Payments for capital assets 64 - - 64 64 - 100.0% 65 64 � :," Machineryand equipment 64 - - 64 64 - 100.0% 65 64 � � TOTAL 20 655 (5) 225 20 875 20 868 7 100.0% 18 330 18 291 2 2: � " ),. :, :, C: ..,0 ,... � "'ril" PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 2.4 Construction 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ril" Current payments 4 818 173 (193) 4798 4 794 4 99.9% 4426 4 413 Compensation of employees 2 207 (134) (192) 1 881 1 878 3 99.8% 4 056 4 050 i Goods and services 2 611 307 (1) 2 917 2 916 1 100.0% 370 363 � � .Q, Payments for capital assets 74 843 (275) (8 812) 65 756 65 618 138 99.8% 51 827 51 411 Buildings and other fixed 74 843 (768) (8 812) 65 263 65 126 137 99.8% 51 767 51 352 structures � Machinery and equipment - 493 - 493 492 1 99.8% 60 59 � ::," Payments for financial assets -- -- 6 (6) - -- �i:l TOTAL 79 661 (102) (9 005) 70 554 70 418 136 99.8% 56 253 55 824 � " ):,. ::, ::, §_ ..," ,... � ril" \0 APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 2.5 Maintenance 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ril" Current payments 165 045 (2 205) (1 258) 161 582 161 173 409 99.7% 157 252 157 202 � Compensation of employees 142 023 (1 128) 125 141 020 140 740 280 99.8% 136 802 136 782 Goods and services 23 022 (1 077) (1 383) 20 562 20 433 129 99.4% 20 450 20 420 � � - .Q, Transfers and subsidies 1 933 6 49 1 988 1 988 100.0% 1 838 1 837 §.. Households 1 933 6 49 1 988 1 988 - 100.0% 1 838 1 837 � � Payments for capital assets 594 165 79 838 837 1 99.9% 521 519 � :," Buildings and other fixed 15 - - 15 15 - 100.0% - - structures � Machinery and equipment 579 165 823 822 1 99.9% 521 519 � 79 2 Intangible assets 2: Payments for financial assets -- -- 745 (745) - - 24 � " TOTAL 167 572 (2 034) (1 130) 164 408 164 743 (335) 100.2% 159 611 159 582 ),. :, :, C: ..,0 ,... � "'ril" PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 2.6 Immovable Asset Management 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 iil" Current payments 439 421 2 629 25 386 467 436 467 367 69 100.0% 462 999 462 932 Compensation of employees 10 842 266 146 11 254 11 244 10 99.9% 8 909 8 900 Goods and services 428 579 2 363 25 240 456 182 456 123 59 100.0% 454 090 454 032 � � .Q, Transfers and subsidies 329 177 - - 329 177 329 168 9 100.0% 342 409 342 401 Provinces and municipalities 329 177 - - 329 177 329 168 9 100.0% 342 409 342 401 � Payments for capital assets 2 875 - (2 701) 174 172 2 98.9% 64 63 � "::, Buildings and other fixed 2 581 - (2 581) ------structures � Machinery and equipment 294 - (120) 174 172 2 98.9% 64 63 � TOTAL 771 473 2 629 22 685 796 787 796 707 80 100.0% 805 472 805 396 � " ),. ::, ::, ".., ,... � "'iil" APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 2.7 Facility Operations 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ril" Current payments 141 175 (763) 1 755 142 167 141 906 261 99.8% 153 543 153 473 Compensation of employees 125 707 610 1 870 128 187 128 121 66 99.9% 141 171 141 080 i Goods and services 15 468 (1 373) (115) 13 980 13 785 195 98.6% 12 372 12 393 � � .Q, Transfers and subsidies 960 101 58 1 119 1 119 - 100.0% 797 795 Departmental agencies and - 1 - 1 1 - 100.0% 1 1 accounts � Households 960 100 58 1 118 1 118 - 100.0% 796 794 � ::," Payments for capital assets 5 896 (26) 214 6 084 6 082 2 100.0% 659 657 �i3 Buildings and other fixed 4 828 (947) 396 4 277 4 276 1 100.0% 45 45 structures Machineryand equipment 1 068 921 (182) 1 807 1 806 1 99.9% 614 612 Payments for financial assets -- -- 127 (127) - - 46 � 'J ):,. ::, TOTAL 148 031 (688) 2 027 149 370 149 234 136 99.9% 154 999 154 971 ::, ..," ,... � ril" IC PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Programme 3: Expanded Public Works Programme 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ril" Sub programme i 1. Programme Support 15 531 - (998) 14 533 14 497 36 99.8% 14 957 14 907 � 2. Community Development 142 473 - (4 490) 137 983 137 980 3 100.0% 143 077 143 073 � .Q, 3. Innovation and Empowerment 9 942 - (277) 9 665 9 664 1 100.0% 27 759 27 756 Total for sub programmes 167 946 - (5 765) 162 181 162 141 40 100.0% 185 793 185 736 f "� Economic classification ::, Current payments 50 016 (100) (5 574) 44 342 44 272 70 99.8% 49 712 49 637 �cl Compensation of employees 13 846 - (607) 13 239 13 205 34 99.7% 13 380 13 353 Salaries and wages 12 431 12 (602) 11 841 11 831 10 99.9% 11 971 11 952 Social contributions 1 415 (12) (5) 1 398 1 374 24 98.3% 1 409 1 401 Goods and services 36 170 (100) (4 967) 31 103 31 067 36 99.9% 36 332 36 284 Administrative fees 19 - (5) 14 11 3 78.6% 10 9 � Minor assets 56 13 48 117 110 7 94.0% 90 88 'J ):,. ::, Catering: Departmental ::, 66 22 (8) 80 79 1 98.8% 66 65 activities Communication 234 (10) (44) 180 179 1 99.4% 366 360 ..," Contractors 34 191 (1 411) (5 112) 27 668 27 664 4 100.0% 34 882 34 876 ,... Entertainment 8 (2) - 6 6 - 100.0% 6 6 � ril" Fleet services 199 (27) (64) 108 108 - 100.0% 198 198 \Q Inventory: Clothing material 500 - (500) ------and supplies APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Programme 3: Expanded Public Works Programme (Continued) 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure iil' R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 � Inventory: Materials and - 1 - 1 - 1 - 2 1 supplies � - � Consumable supplies 3 1 4 3 1 75.0% 1 1 .Q, Consumable: Stationery, 131 (3) (17) 111 106 5 95.5% 54 50 §. printing and office supplies � Operating leases 160 - (12) 148 147 1 99.3% 160 160 � Travel and subsistence 547 803 (67) 1 283 1 271 12 99.1% 491 465 "� Training and development - 527 235 762 762 - 100.0% - - ::, Operating payments 52 (12) (29) 11 11 - 100.0% 6 5 � Venues and facilities 4 (2) 608 610 610 - 100.0% - - � Payments for capital assets 117 930 100 (191) 117 839 117 838 1 100.0% 136 081 136 078 Buildings and other fixed 117 724 - - 117 724 117 724 - 100.0% 135 955 135 954 structures � Buildings ------3 791 3 790 " )> ::, Other fixed structures 117 724 - - 117 724 117 724 - 100.0% 132 164 132 164 ::, Machinery and equipment 206 100 (191) 115 114 1 99.1% 126 124 Other machinery and 206 100 (191) 115 114 1 99.1% 126 124 equipment ".., ,... � iil' Payments for financial assets -- -- 31 (31) - - 21 TOTAL 167 946 - (5 765) 162 181 162 141 40 100.0% 185 793 185 736 PART E: FINANCIAL INFORMATION APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 3.1 Programme Support 2016117 2015116 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ril" Current payments 15 325 (100) (807) 14 418 14 352 66 99.5% 14 831 14 762 Compensation of employees 13 846 - (607) 13 239 13 205 34 99.7% 13 380 13 353 i Goods and services 1 479 (100) (200) 1 179 1 147 32 97.3% 1 451 1 409 � � .Q, Payments for capital assets 206 100 (191) 115 114 1 99.1% 126 124 Machinery and equipment 206 100 (191) 115 114 1 99.1% 126 124 � Payments for financial assets -- -- 31 (31) - - 21 � ::," 0. - TOTAL 15 531 (998) 14 533 14 497 36 99.8% 14 957 14 907 �i3 � 'J ):,. ::, ::, [ ..," ,... � ril" IC APPROPRIATIONSTATEMENT for theyear ended 31 March 2017 Sub-programme: 3.2 Community Development 2016/17 2015/16 Expenditure Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 ril" Current payments 24 749 - (4 490) 20 259 20 256 3 100.0% 7122 7 119 � Goods and services 24 749 - (4 490) 20 259 20 256 3 100.0% 7122 7 119 � � Payments for capital assets 117 724 - - 117 724 117 724 - 100.0% 135 955 135 954 .Q, Buildings and other fixed 117 724 - - 117 724 117 724 - 135 955 §.. structures 100.0% 135 954 � � TOTAL 142 473 - (4 490) 137 983 137 980 3 100.0% 143 077 143 073 � ::," � Sub-programme: 3.3 Innovation and Empowerment � 2016/17 2015/16 2 Expenditure 2: Adjusted Shifting of Final Actual as% of final Final Actual Appropriation Funds Virement Appropriation Expenditure Variance appropriation Appropriation expenditure � Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 " ),. Current payments 9 942 - (277) 9 665 9 664 1 100.0% 27 759 27 756 ::, ::, Goods and services 9 942 - (277) 9 665 9 664 1 100.0% 27 759 27 756 TOTAL 9 942 - (277) 9 665 9 664 1 100.0% 27 759 27 756 ..,0 ,... � ril" \0 PART E: FINANCIAL INFORMATION Free State Department of Public Warksand Infrastructure 2016/2017 Annual Report, Vote 9 NOTES TO THE APPROPRIATION STATEMENT forthe year ended 31 March 2017 1. Detail of transfers and subsidies as per Appropriation Act (afterVirement): Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements. 2. Detail of specifically and exclusively appropriated amounts voted (afterVirement): Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements. 3. Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements. 4. Explanations of material variances from Amounts Voted (after Virement): Variance as a Final Actual Variance % of Final 4.1 Per programme Appropriation Expenditure R'000 Appropriation Programme 1 108 100 107 873 227 0.2% Programme 2 1 216 291 1 216 248 43 0.0% Programme 3 162 181 162 141 40 0.0% TOTAL 1486572 1486 262 310 0.0% There were no material variances between the final appropriation and actual expenditure. Variance as a 4.2 Per economic Final Actual % of Final classification Appropriation Expenditure Variance Appropriation R'000 R'000 R'000 R'000 Current payments Compensation of employees 403 099 402 583 516 0.1% Goods and services 556 286 555 621 665 0.1% Transfers and subsidies Provinces and municipalities 329 177 329 168 9 0.0% Departmental agencies and 38 37 2.6% accounts Households 3 688 3 687 0.0% Payments for capital assets Buildings and other fixed 187 279 187 141 138 0.1% structures Machinery and equipment 6 713 6 697 16 0.2% Intangible assets 292 292 Payments for financial 1 036 (1 036) assets TOTAL 1486572 1486 262 310 0.0% Free State Department of Public Warksand Infrastructure 2016/2017 Annual Report, Vote 9 NOTES TO THE APPROPRIATION STATEMENT forthe year ended 31 March 2017 There were no material variances between the final appropriation and actual expenditure. Variance as a Final Actual % of Final 4.3 Per conditional grant Appropriation Expenditure Variance Appropriation R'OOO R'OOO R'OOO R'OOO z EPWP Incentive Grant for 6 530 6 528 2 0.0% 0 Provinces - TOTAL 6 530 6 528 2 0.0% !cc ::E There were no material variances between the final appropriation and actual expenditure. a::: 0 -zLL. c:c...J u- z c:c z LL.- • • Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 STATEMENT OF FINANCIAL PERFORMANCE for theyear ended 31 March 2017 Note 2016/17 2015/16 R'000 R'000 REVENUE 1 Annual appropriation 1486 57 1 504 29 2. � I � I Departmental revenue TOTAL REVENUE 1486572 1504 295 EXPENDITURE Current expenditure 1 Compensation of employees 402 584 402 53 2 1 Goods and services 555621 559 584 Total current expenditure 958 205 962 116 Transfers and subsidies §_ 332 89 1 345 735 Expenditure for capital assets z Tangible assets 193 8381 194 651 I Intangible assets z 29 2 575 Total expenditure for capital assets 194 130 195 226 Payments for financial assets 9. 1 036 278 TOTAL EXPENDITURE 1486 262 1503 355 SURPLUSFO RTHEYEAR 310 940 Reconciliation of Net Surplus for the year Voted funds 310 940 Annual appropriation 30 94 � I � I Conditional grants SURPLUSFO RTHEYEAR 310 940 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 STATEMENT OF FINANCIAL POSITION as at 31 March 2017 Note 2016/17 2015/16 R'000 R'000 ASSETS Current assets 3493 2 755 Cash and cash equivalents 1 968 Prepayments and advances 12 z Receivables 1 513 0 Non-current assets 275 412 - Receivables 10 412 I TOTAL ASSETS 3 768 3167 :E LIABILITIES a::: Current liabilities 3 084 2115 0 Voted funds to be surrendered to the Revenue Fund 11 940 LL. Departmental revenue and NRF Receipts to be 12 1 175 z surrendered to the Revenue Fund - Payables ...J TOTAL LIABILITIES 3 084 2115 - STATEMENT OF CHANGESIN NET ASSETS for the year ended 31 March 2017 Note 2016/17 2015/16 R'000 R'000 Recoverable revenue Opening balance 1 052 961 Transfers: (368) 91 Irrecoverable amounts written off (123) (25) Debts revised (211) (134) Debts recovered (included in departmental (395) (276) receipts) Debts raised 361 526 Closing balance 684 1 052 TOTAL 684 1 052 Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 CASHFLOW STATEMENT forthe year ended 31 March 2017 Note 2016/17 2015/16 R'000 R'000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 1 534 118 1 546 651 Annual appropriated funds received 1 486 572 1 504 295 Departmental revenue received 47 218 42 277 Interest received 328 79 z Net (increase)/decrease in working capital 1 227 (387) 0 Surrendered to Revenue Fund (53 700) (52 307) - Current payments (958 205) (962 116) Payments for financial assets (1 036) (278) Transfers and subsidies paid (332 891) (345 735) Net cash flow available from operating activities 189 513 185 828 :E a::: CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets z (194 130) (195 226) 0 Proceeds from sale of capital assets 2.3 6 804 2 500 LL. Net cash flows from investing activities (187 326) (192 726) -z CASH FLOWS FROM FINANCING ACTIVITIES lncrease/(decrease) in net assets (368) 91 ...J Net cash flows from financing activities (368) 91 - ACCOUNTING POLICIES for the year ended 31 March 2017 Summary of significant accounting policies 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 Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act. 1 Basis of preparation The financial statements have been prepared in accordance with the Modified Cash Standard. 2 Going concern The financial statements have been prepared on a going concern basis. 3 Presentation currency Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department. 4 Rounding Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R'000). 5 Comparative information 5.1 Prior period comparative information 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. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 ACCOUNTING POLICIES for the year ended 31 March 2017 5.2 Current year comparison with budget A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement. 6 Revenue z 6.1 Appropriated funds 0- Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation). !cc :E Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments a::: budget process are recognised in the statement of financial performance on the date the 0 adjustments become effective. zLL. 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. ...J 6.2 Departmental revenue - 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. Write-offs are made according to the department's debt write-off policy. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 ACCOUNTING POLICIES for the year ended 31 March 2017 7 Expenditure 7.1 Compensation of employees 7.1.1 Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment. 7.1.2 Social contributions Social contributions made by the department in respect of current employees are recognised in the statement of 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. 7.2 Other expenditure Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of 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. 7.3 Accruals and payables not recognised Accruals and payables not recognised are recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the department or in the case of transfers and subsidies when they are due and payable. Accruals and payables not recognised are measured at cost. 7.4 Leases 7.4.1 Operating leases Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment. The operating lease commitments are recorded in the notes to the financial statements. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 ACCOUNTING POLICIES for the year ended 31 March 2017 7.4.2 Finance 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. z The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions. 0- Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of: !cc • cost, being the fair value of the asset; or :E • the sum of the minimum lease payments made, including any payments made to a::: acquire ownership at the end of the lease term, excluding interest. 0 8 Cash and cash equivalents zLL. Cash and cash equivalents are stated at cost in the statement of financial position. - ...J Bank overdrafts are shown separately on the face of the statement of financial position as a current liability. - 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-offsare made according to the department's write-offpolicy. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 ACCOUNTING POLICIES forthe year ended 31 March 2017 11 Financial assets 11.1 Financial assets (not covered elsewhere) A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial. 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. 11.2 Impairment of financial assets 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. 12 Payables Loans and payables are recognised in the statement of financial position at cost. 13 Capital Assets 13.1 Immovable capital assets Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Where the cost of immovable capital assets cannot be determined reliably, the immovable capital assets are measured at fair value for recording in the asset register. Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department. Free State Department af Public Warks and Infrastructure 2016/2017 Annual Repart, Vate9 ACCOUNTING POLICIES forthe year ended 31 March 2017 13.2 Movable 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. z Where the cost of movable capital assets cannot be determined reliably, the movable 0 capital assets are measured at fair value and where fair value cannot be determined; the - movable assets are measured at R1. !cc All assets acquired prior to 1 April 2005 may be recorded at R1. ::E a::: Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. 0 LL. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the z end of the capital project unless the movable asset is recorded by another - department/entity in which case the completed project costs are transferred to that ...J department. c:c 13.3 Intangible assets - Intangible assets are initially recorded in the notes to the financial statements at cost. u Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. z c:c Internally generated intangible assets are recorded in the notes to the financial z statements when the department commences the development phase of the project. LL.- 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 2005 may be recorded at R1. Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department. Free State Department af Public Warks and Infrastructure 2016/2017 Annual Repart, Vate9 ACCOUNTING POLICIES forthe year ended 31 March 2017 14 Provisions and Contingents 14.1 Provisions Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits 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. 14.2 Contingent liabilities 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. 14.3 Commitments 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 raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash. 15 Fruitless and wasteful expenditure 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- offas irrecoverable. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 ACCOUNTING POLICIES for the year ended 31 March 2017 16 Irregular expenditure 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. z Irregular expenditure is removed from the note when it is either condoned by the relevant 0 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 !cc recoverable and are de-recognised when settled or subsequently written-off as :E irrecoverable. a::: 17 Changes in accounting policies, accounting estimates and errors 0 LL. 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 z 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 ...J assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable. - 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. 19 Departures from the MCS requirements Management has concluded that the financial statements present fairly the department's primary and secondary information. Free State Department of Public Works and Infrastructure 2016/2017 Annual Report, Vote 9 ACCOUNTING POLICIES for the year ended 31 March 2017 20 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 Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off. 21 Related party transactions 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 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, directing and controlling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements. 22 Employee benefits The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is disclosed in the Employee benefits note. Free State Department af Public Warks and Infrastructure 2016/2017 Annual Report, Vote9 NOTES TO THEANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 1. Annual Appropriation 1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted Funds) and Provincial Departments: 2016/17 2015/16 Funds not z Final Actual Funds requested/not Final Appropriation Appropriation Received received Appropriation received 0 R'000 R'000 R'000 R'000 R'000 - Administration 108 100 108 100 111214 111214 Public Works 1216 291 1 216 291 1207288 1207288 Infrastructure :E Expanded Public 162 181 162 181 185 793 185 793 a:: Works Programme Total 1486 572 1486 572 1504295 1504295 0 zLL. The Department requested I received allfunds appropriated. - 1.2 Conditional grants ...J Note 2016/17 2015/16 2.1 Sales of goods and services other than capital assets Note 2016/17 2015/16 2 R'000 R'000 Sales of goods and services produced by the department 43 658 40 412 43 39 Sales by market establishment 0891 0871 Other sales 56 9 1 32 5 Sales of scrap, waste and other used current goods 22 26 Total 43 680 40 438 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 2.2 Interest, dividends and rent on land Note 2016/17 2015/16 2 R'000 R'000 Interest 328 79 Total 328 79 2.3 Sale of capital assets Note 2016/17 2015/16 2 R'000 R'000 Tangible assets 6 804 2 500 Buildings and other fixed structures 28.2 6 80 2 4 Machinery and equipment 26.2 � I �: I Total 6 804 2 500 2.4 Transactions in financial assets and liabilities Note 2016/17 2015/16 2 R'000 R'000 Receivables 514 300 Other Receipts including Recoverable Revenue 3 024 1 539 Total 3 538 1 839 3. Compensation of employees 3.1 Salaries and Wages 2016/17 2015/16 R'000 R'000 Basic salary 272 313 273 212 Performance award 5 396 5293 Service Based 1 171 435 Compensative/circumstantial 5 891 5269 Other non-pensionable allowances 56 019 56 377 Total 340 790 340 586 3.2 Social contributions 2016/17 2015/16 R'000 R'000 Employer contributions Pension 33 601 33 906 Medical 28 061 27 895 Bargaining council 132 145 Total 61 794 61 946 Total compensation of employees 402 584 402 532 Average number of employees 1 882 2 083 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 4. Goods and services Note 2016/17 2015/16 R'000 R'000 Administrative fees 354 252 Advertising 1 033 934 Minor assets 4 976 955 Bursaries (employees) 2 353 1 819 Catering 710 1 174 Communication 4 203 6 846 Computer services 4.2 4 832 3 478 Consultants: Business and advisory services 4 426 5177 z Legal services 1 019 1 136 0 Contractors 30 193 37 164 - Agency and support/ outsourced services 33 32 Entertainment 42 55 Audit cost - external 4.3 5 778 7 633 Fleet services 5 754 6 406 ::E Inventory 4.4 4 322 4 983 a::: Consumables 4.5 3 716 3 243 Operating leases 226 156 208 948 0 Property payments 4.6 244 448 255 528 LL. Transport provided as part of the departmental activities 492 692 z Travel and subsistence 4.7 11 685 11 122 - Venues and facilities 761 60 Training and development 1 734 1 122 ...J Other operating expenditure 4.8 601 825 c:c Total 555 621 559 584 u- 4.1 Minor assets z Note 2016/17 2015/16 c:c 4 R'000 R'000 z Tangible assets - Machinery and equipment 976 955 LL. Total 976 955 • • I.LI 4.2 Computer services I- Note 2016/17 2015/16 a::: 4 R'000 R'000 SITA computer services 1 086 1 046 External computer service providers 3 746 2432 � Total 4 832 3 478 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 4.3 Audit cost - External Note 2016/17 2015/16 4 R'000 R'000 Regularity audits 5 778 7 633 Total 5 778 7 633 4.4 Inventory Note 2016/17 2015/16 4 R'000 R'000 Clothing material and accessories 31 426 Materials and supplies 1 510 2 535 Other supplies 4.4.1 2 781 2 022 Total 4322 4983 4.4.1 Other supplies Note 2016/17 2015/16 4.4 R'000 R'000 Other 2 781 2 022 Total 2 781 2 022 4.5 Consumables Note 2016/17 2015/16 4 R'000 R'000 Consumable supplies 1 130 915 Household supplies 782 443 Building material and supplies 30 28 IT consumables 3 Other consumables 318 441 Stationery, printing and office supplies 2 586 2 328 Total 3 716 3243 4.6 Property payments Note 2016/17 2015/16 4 R'000 R'000 Municipal services 235 318 247 185 Property management fees Property maintenance and repairs 6 856 6438 Other 2 274 1 905 Total 244 448 255 528 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 4.7 Travel and subsistence Note 2016/17 2015/16 4 R'000 R'000 Local 11 291 10 516 Foreign 394 606 Total 11 685 11 122 4.8 Other operating expenditure Note 2016/17 2015/16 z 4 R'000 R'000 0 Professional bodies, membership and subscription fees 139 67 - Resettlement costs 48 462 Other 414 296 !ci Total 601 825 :E Payments for financial assets a:: 5. 0 Note 2016/17 2015/16 LL. R'000 R'000 Other material losses written off 5.1 94 136 z Debts written off 5.2 - 942 142 Total 1 036 278 ...J NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 Note 2016/17 2015/16 5 R'000 R'000 Other debt written off Leave Without Pay 4 Losses 37 Salary Overpayments 375 88 Communication 2 Leave Gratuity 14 Tax 7 11 Fruitless & Wasteful 45 Salary Deductions 1 Breach of Contract 340 12 Total 819 117 Total debt written off 942 142 6. Transfers and subsidies 2016/17 2015/16 R'000 R'000 Note Provinces and municipalities 31 329 168 342 401 Departmental agencies and accounts Annex 1B 36 Households Annex 1G 3 687 3 333 Total 332 891 345 735 7. Expenditure for capital assets Note 2016/17 2015/16 R'000 R'000 Tangible assets 193 838 194 651 Buildings and other fixed structures 28.1 187 141 190 071 Machinery and equipment 26.1 6 697 1 4 580 1 Intangible assets 292 575 Software 27.1 292 I 575 I Total 194 130 195 226 The following amounts have been included as project costs in Expenditure for capital assets Goods and services 12 747 8 523 Total 12 747 8 523 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 7.1 Analysis of funds utilised to acquire capital assets - 2016117 Voted funds Aid assistance Total R'000 R'000 R'000 Tangible assets 193 838 193 838 Buildings and other fixed structures 187 141 ____18 I I I ; ; : �; 1 Machinery and equipment 6 697. �-----:� � ____ Intangible assets 292 292 z Software 0 Total 194130 194130 - 7.2 Analysis of funds utilised to acquire capital assets - 2015116 Voted funds Aid assistance Total :E R'000 R'000 R'000 et: Tangible assets 194 651 194 651 0 Buildings and other fixed structures 190 071 190 071 LL. Machinery and equipment 4 580 I � I I 4 580 I -z Intangible assets 575 575 I I ...J Software 575 575 c:c Total 195 226 195 226 - 7.3 Finance lease expenditure included in Expenditure for capital assets z 2016117 2015116 c:c R'000 R'000 z Tangible assets LL.- Machinery and equipment 2 561 1 662 Total 2 561 1 662 • • 8. Cash and cash equivalents 2016117 2015116 R'000 R'000 Consolidated Paymaster General Account 1 828 Disbursements 9 Cash on hand 140 140 Total 1 968 149 There are no significant cash and cash equivalent balances held by the Department that are not available for use. The Department does not have any undrawn borrowing facilities. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 9. Prepayments and advances 2016/17 2015/16 R'000 R'000 Travel and subsistence 12 Total 12 10. Receivables 2016/17 2015/16 Non- Non- Current current Total Current current Total Note R'000 R'000 R'000 R'000 R'000 R'000 Claims recoverable 10.1 54 54 330 330 Recoverable 10.2 218 218 217 217 expenditure Staffdebt 10.3 1 241 275 1 516 2 018 412 2430 Fruitless and wasteful 10.4 41 41 expenditure Total 1 513 275 1 788 2 606 412 3 018 10.1 Claims recoverable Note 2016/17 2015/16 10 and Annex 4 R'000 R'000 National departments 4 61 Provincial departments 50 269 Total 54 330 10.2 Recoverable expenditure (disallowance accounts) Note 2016/17 2015/16 10 R'000 R'000 LBS and SITE deducted from employees salary to be 218 215 transferred to SARS Tax Debt 2 Total 218 217 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 10.3 Staffdebt Note 2016117 2015116 10 R'000 R'000 Salary Overpayment Debt 534 962 Breach of Contract Debt 656 983 Losses / Damages Debt 74 75 Communication Debt 29 30 Leave Without Pay Debt 91 117 Deduction Salary Debt 46 35 z Government Motor Transport Accident Debt 48 55 Tax Debt 14 29 0 State Guarantee Debt 9 - Other Debt (Legal Claims, Subsistence & Travel Claims, 24 135 Housing Allowance, Irregular Expenditure, Leave Gratuity, Traffic Fines) ::E Total 1 516 2430 a::: 10.4 Fruitless and wasteful expenditure 0 LL. Note 2016117 2015/16 10 R'000 R'000 z Opening balance 41 - Less amounts recovered (105) ...J Less amounts written off (45) c:c Transfers from note 32 Fruitless and Wasteful Expenditure 105 41 - Interest 4 Total 41 z 10.5 Impairment of receivables c:c z 2016117 2015116 - R'000 R'000 LL. Estimate of impairment of receivables 938 1 386 • • Total 938 1 386 The estimate is calculated based on all debt older than two years for which there is no payment arrangement. Outstanding debt will be written-offwhen the delegated official is convinced that: ► Recoveryof the debt is uneconomical. ► Recoverywould cause undue hardship to the debtor or his/her dependents. ► It would be to the advantage of the state to issue a waiver on the claim. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 11. Voted funds to be surrendered to the Revenue Fund 2016/17 2015/16 R'000 R'000 Opening balance 940 2 662 Prior period error As restated 940 2 662 Transfer from statement of financial performance (as restated) 310 940 Paid during the year (940) (2 662) Closing balance 310 940 12. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 2016/17 2015/16 R'000 R'000 Opening balance 1 175 5 964 Prior period error As restated 1 175 5 964 Own revenue included in appropriation 54 350 44 856 Paid during the year (52 760) (49 645) Closing balance 2 765 1175 13. Payables - current 2016/17 2015/16 R'000 R'000 Amounts owing to other entities 9 Total 9 14. Net cash flow available from operating activities 2016/17 2015/16 R'000 R'000 Net surplus/(deficit) as per Statement of Financial Performance 310 940 Add back non cash/cash movements not deemed operating 189 203 184 888 activities (Increase )/decrease in receivables 1 230 (415) (lncrease)/decrease in prepayments and advances (12) 28 lncrease/(decrease) in payables - current 9 Proceeds from sale of capital assets (6 804) (2 500) Expenditure on capital assets 194 130 195 226 Surrenders to Revenue Fund (53 700) (52 307) Own revenue included in appropriation 54 350 44 856 Net cash flow generated by operating activities 189 513 185 828 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 15. Reconciliation of cash and cash equivalents for cash flow purposes 2016117 2015116 R'000 R'000 Consolidated Paymaster General account 1 828 Disbursements 9 Cash on hand 140 140 Total 1 968 149 z 16. Contingent liabilities and contingent assets 0- 16.1 Contingent liabilities Note 2016117 2015116 R'000 R'000 ::E Liable to Nature a::: Claims against the department Annex3B 91 76 95 80 6 0 Total 91 3376 95806 LL. No legal fees were included in the claims against the Department, as the legal fees cannot be reliablyestimated. -z Due to the sensitive nature of the claims, the probabilityof the outcome cannot be disclosed. ...J 17. Commitments -c:c 2016117 2015116 R'000 R'000 Current expenditure 2 987 z Approved and contracted 2 98 c:c Approved but not yet contracted � I � I -z Capital expenditure 117 012 33 397 LL. Approved and contracted 11701 9 • • Approved but not yet contracted �1 33 3 � I Total Commitments 119 999 33 397 The Department does not have long term commitments. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 18. Accruals and payables not recognised 18.1 Accruals 2016117 2015116 R'000 R'000 Listed by economic classification 30 Days 30+ Days Total Total Goods and services 10 293 8 003 18 296 6 919 Transfers and subsidies 1 62 657 Capital assets 7 353 352 7 705 5 839 Total 17 647 8 355 26 002 75 415 2016117 2015116 R'000 R'000 Listed by programme level Programme 1: Administration 2 695 3 285 Programme 2: Public Works Infrastructure 23 213 72 037 Programme 3: Expanded Public Works Programme 94 93 Total 26 002 75 415 R13.362 million (2015/2016: R65.561 million) of the Accrualsrelates to Municipal Accounts that were outstanding at year-end. The Department experienced budget constraints due to the fact that municipal service increases are higher than the Departmentalbudget increase. The accounts could therefore not be settled at year-end. The extent of accruals may impact on the Department's ability to meet its financial obligations as they fall due and achievement of service delivery as outlined in the annual performance plan, as the accruals decreases the budget available for spendinqin the next financial year. 18.2 Payables not recognised 2016117 2015116 R'000 R'000 Listed by economic classification 30 Days 30+ Days Total Total Goods and services 18 209 274 728 292 937 123 460 Transfers and subsidies 92 397 92 397 Capital assets 10 144 88 10 232 2 197 Total 120 750 274 816 395 566 125 657 2016117 2015116 R'000 R'000 Listed by programme level Programme 1: Administration 639 112 Programme 2: Public Works Infrastructure 394 794 125 334 Programme 3: Expanded Public Works Programme 133 211 Total 395 566 125 657 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 Note 2016117 2015116 Included in the above totals are the following: R'000 R'000 Confirmed balances with other departments Annex5 574 Total 574 R384.445 million (2015/2016: R123.239 million) of the Payables not recognised relates to Municipal Accounts that were outstanding at year-end. The Department experienced budget constraints due to the fact that municipal service increases are higher than the Departmental budget increase. The accounts could therefore not be settled at year end. z The extent of payables not recognised may impact on the Department's ability to meet its financial obligations as 0 they fall due and achievement of service delivery as outlined in the annual performance plan, as payables not - recoaniseddecreases the budaet available forspendina in the next financial vear. 19. Employee benefits ::E 2016117 2015116 R'000 R'000 a::: Leave entitlement 18 000 16 109 0 Service bonus (Thirteenth cheque) 11 359 11 746 LL. Performance awards 6 021 6 031 z Capped leave commitments 20437 21 868 - Other 488 1 223 ...J Total 56 305 56 977 -c:c It should be noted to the reader of theAnnual Financial Statements that the current year figure for leave entitlement u includes a negative amount of R413 316.30 (2015/2016: R555 966.50 ) that relates to negative leave balances that existed as at 31 March2017. z c:c Other Employee Benefits constitute Long ServiceAwards payable during the 2017/2018 financial year. At this stage z the Department is not able to reliably measure the long term portion of the long service award. LL.- 20. Lease commitments • • 20.1 Operating leases expenditure Buildings and other fixed Machinery structures and 2016117 equipment Total R'OOO R'OOO R'OOO Not later than 1 year 90 655 5 895 96 550 Later than 1 year and not later than 5 years 284 587 8 035 292 622 Later than five years 253 122 21 253 143 Total lease commitments 628 364 13 951 642 315 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 Buildings and other fixed Machinery structures and 2015116 equipment Total R'000 R'000 R'000 Not later than 1 year 121 804 5 419 127 223 Later than 1 year and not later than 5 years 254 20 5 4 90 7 259 112 Later than five years 225 776 244 226 020 Total lease commitments 601 785 10 570 612 355 The Department rents 90 office buildings as part of its mandate to provide office accommodation to other Departments in the Province. There are currently 18 fixed term lease contracts that ranges between 5 to 15 years and 70 month-to-month contracts. The escalation rate applicable to these fixed term lease contracts range from 7.5% to 10% per annum. The Department currently lease 90 vehicles from Fleet Management for a period between 3 and 7 years. No asset is sub-leased at fair value. All buildings are provided to Provincial Government Departments to occupy free of charge. 20.2 Finance leases expenditure Machinery and 2016 117 equipment Total R'000 R'000 Not later than 1 year 2403 2403 Later than 1 year and not later than 5 years 1 642 1 642 Later than five years Total lease commitments 4045 4045 Machinery and 2015116 equipment Total R'000 R'000 Not later than 1 year 2 204 2 204 Later than 1 year and not later than 5 years 2 696 2 696 Later than five years Total lease commitments 4900 4900 The Department leases 39 photocopy machines over a lease term of 36 months. The Department has 38 cellular phone contracts (24 fixed term and 14 month-to-month contracts). There is no escalation applicable to these leases. The Department has 96 data contracts (44 fixed term and 52 month-to-month contracts). There is no escalation applicable to these leases. The Department does not sub-lease any of the assets. The Department does not have any renewal or purchase options. There are no restrictions imposed on the Department through any lease agreement. The Department does not have any sale and leaseback arrangements. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 20.3 Operating lease revenue Buildings and other fixed 2016/17 structures Total R'000 R'000 Not later than 1 year 7 717 7 717 Later than 1 year and not later than 5 years 14 642 14 642 Later than five years 1 1 Total operating lease revenue receivable 22 360 22 360 z Buildings and 0 other fixed - 2015/16 structures Total R'000 R'000 Not later than 1 year 9 768 9 768 Later than 1 year and not later than 5 years 12 423 12 423 ::E Later than five years 1 a::: Total operating lease revenue receivable 22 192 22 192 0 LL. The Department rents out 233 properties to various lessees. There are currently 89 fixed term contracts that escalate between 7% and 8% per annum and 144 month to month contracts. -z 21. Accrued Departmental revenue ...J Note 2016/17 2015/16 -c:c R'000 R'000 Sales of goods and services other than capital assets 21.1 6 541 7 606 Total 6 541 7 606 z c:c It is noted that the current year figure for Accrued Departmental Revenue include a negative amount of z R585 458.36 (2015/2016:R316 025.25) that relatesto negative balancesthat existed as at 31 March 2017. LL.- 21.1 Analysis of accrued departmental revenue • • Note 2016/17 2015/16 21 R'000 R'000 Opening balance 7 606 6 867 Less: amounts received (36 131) (33 307) Add: amounts recognised 37 194 34 631 Less: amounts written-off/reversed as irrecoverable 21.2 (2 128) (585) Closing balance 6 541 7 606 21.2 Accrued department revenue written off Note 2016/17 2015/16 R'000 R'000 Write-offoutstanding debt 21.1 2 128 585 Total 2128 585 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 Outstanding debt is written-offwhen the delegated official is convinced that: ► Recoveryof the debt is uneconomical. ► Recovery would cause undue hardship to the debtor or his/herdependents. ► It would be to the advantage of thestate to issue a waiver on the claim. 21.3 Impairment of accrued departmental revenue 2016/17 2015/16 R'000 R'000 Estimate of impairment of accrued departmental revenue 4 330 4 300 Total 4330 4300 22. Irregular expenditure 22.1 Reconciliation of irregular expenditure Note 2016/17 2015/16 R'000 R'000 Opening balance 1 721 227 Prior period error 72 As restated 1 721 299 Add: Irregular expenditure - relating to prior year 22.2 Add: Irregular expenditure - relating to current year 9 1 538 Less: Prior year amounts condoned Less: Current year amounts condoned 22.3 Less: Amounts not condoned and recoverable (32) 1 22.4 ( ) Less: Amounts not condoned and not recoverable (199) (115) Closing balance 1 499 1 721 Analysis of awaiting condonation per age classification Current year 1 537 1 Prior years 1 49� I 184 Total 1 499 1 721 22.2 Details of irregular expenditure - added current year (relating to current and prior years) 2016/17 Incident Disciplinary steps taken/criminal proceedings R'000 Procurement outside Transversal To be investigated 9 Contract Total 9 22.3 Details of irregular expenditure recoverable (not condoned) 2016/17 Incident R'000 Cost Containment Measures: Not condoned - Recovered from the responsible official. Total 32 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 22.4 Details of irregular expenditure not recoverable (not condoned) 2016117 Incident Not condoned by {condoning authority) R'000 Cost Containment Measures Not condoned by the Accounting Officer 111 Cost Containment Measures Not condoned by the Accounting Officer 88 Total 199 The above cases were investigated and it was determined that the responsible official cannot be held liable in law. Value for money was however obtainedand the Department did not incura loss. The amount was written-offin line with the irregular expenditureguideline. z 0 22.5 Prior period error - 2016117 R'000 Nature of prior period error ::E Relating to 2013/14 72 a::: Department of the Premier - Interdepartmental Claim 0 LL. Relating to 2015/16 196 Department of the Premier - Interdepartmental Claim -z Total prior period errors 268 c:c...J The Department of the Premier did further investigations into the Irregular Expenditure identified in the previous - financial year. Theprior year amount needs to be adjusted based on the outcome of the investigation. z 23. Fruitless and wasteful expenditure c:c 23.1 Reconciliation of fruitless and wasteful expenditure -z Note 2016/17 2015116 LL. R'000 R'000 • • Opening balance 105 Prior period error As restated 105 Fruitless and wasteful expenditure - relating to prior year 59 Fruitless and wasteful expenditure - relating to current year 467 146 Less: Amounts resolved (21) Less: Amounts transferred to receivables for recovery 10.4 (105) (41) Closing balance 505 105 23.2 Analysis of awaiting resolution per economic classification 2016117 2015116 R'000 R'000 Current 505 105 Total 505 105 Free State Department of Public Warksand Infrastructure 2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 23.3 Analysis of Current year's fruitless and wasteful expenditure 2016/17 Incident Disciplinary steps taken/criminal proceedings R'000 Cancellation of Accommodation None 21 Travel Agent: Overcharges of service To be investigated 4 charges Interest paid to supplier To be investigated 442 Total 467 23.4 Prior period error 2016/17 R'000 Nature of prior period error Relating to 2015/16 (88) Department of the Premier (Amount Adjustment after (88) Investigation) 1 Total prior period errors (88) The Department of the Premier did further investigations into the Fruitless & Wasteful Expenditure identified in the previous financialy ear. The prior year amount needs to be adjusted based on the outcome of theinvestigation. 23.5 Details of fruitless and wasteful expenditure under investigation (not included in the main note) Expenditure related to travel agents areunder investigation. 24. Key management personnel No. of Individuals 2016/17 2015/16 R'000 R'000 Political office bearers 1 (2) 1 902 1 851 Officials: Level 15 to 16 2 (2) 2 256 3486 Level 14 (incl. CFO if at a lower level) 5 (5) 5 659 4 567 Family members of key management personnel - (1) 151 Total 9 817 10 055 25. Provisions Note 2016/17 2015/16 R'000 R'000 Mofomo Construction CC 25.1 6 000 Total 6 000 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 25.1 Reconciliation of movement in provisions - 2016/17 Note Mofomo Construction Total cc provisions R'000 R'000 Opening balance 25 Increase in provision 6 000 6 000 Closing balance 6 000 6 000 z 26. Non-adjusting events after reportingdate 0 2016117 - Nature of event R'000 Mofomo Construction CC - Unverified amount claimed by Mofomo Construction at year-end. 4 361 !cc Settlement agreement was signed on 1 June 2017. Total 4 361 a::: 27. Movable Tangible Capital Assets 0 LL. MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017 z Opening Value Closing - balance adjustments Additions Disposals Balance R'000 R'000 R'000 R'000 R'000 c:c MACHINERY AND 37458 4177 (240 9) 39 226 - EQUIPMENT u Transport assets 15 15 z Computer equipment 18 536 1 088 (1 039) 18 585 Furniture and office 14 037 557 (281) 14 313 c:c equipment z Other machinery and 4 870 2 532 (1 089) 6 313 - equipment LL. • • TOTAL MOVABLE 37458 4177 (240 9) 39 226 I.LI TANGIBLE CAPITAL ASSETS Movable Tangible Capital Assets under investigation a::: Number Value R'000 � Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation: Machinery and equipment 10 169 The assets could not be verified during the asset counts and after the investigation is concluded, it will be handed over to loss control. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 27 .1 Additions ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017 (Capital Received Work in current, not Progress paid current costs (Paid current and finance year, lease received Cash Non-cash payments) prior year) Total R'000 R'000 R'000 R'000 R'000 MACHINERY AND 6 733 (2 561) 5 4177 EQUIPMENT Transport assets Computer equipment 1 088 1 088 Furniture and officeequipment 552 5 557 Other machinery and equipment 5 093 (2 561) 2 532 TOTAL ADDITIONS TO 6 733 (2 561) 5 4177 MOVABLE TANGIBLE CAPITAL ASSETS The R37 121.49 difference between note 6.1 and the cash additions reported above relates to computer equipment reported as losses and registered for recovery. 27 .2 Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017 Cash Non-cash Received Sold for cash disposal Total disposals Actual R'000 R'000 R'000 R'000 MACHINERY AND 1 557 852 2409 4 EQUIPMENT Transport assets Computer equipment 578 461 1 039 Furniture and officeequipment 172 109 281 Other machinery and equipment 807 282 1 089 2 TOTAL DISPOSAL OF 1 557 852 2409 4 MOVABLE TANGIBLE CAPITAL ASSETS Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 27.3 Movement for 2015/16 MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Opening Prior period Closing balance error Additions Disposals Balance R'000 R'000 R'000 R'000 R'000 MACHINERY AND 36 918 2 918 (2 378) 37 458 EQUIPMENT z Transport assets 15 15 0 Computer equipment 18 186 277 1 942 (1 869) 18 536 - Furniture and office equipment 13 397 564 529 (453) 14 037 Other machinery and equipment 5 320 (841) 447 (56) 4 870 TOTAL MOVABLE TANGIBLE 36 918 2 918 (2 378) 37 458 CAPITAL ASSETS :E a:: 27.3.1 Prior period error 0 2015/2016 LL. R'000 -z Relating to 2015/16 260 Movable Assets written-off during the previous financial 260 ...J I year found in the current financial year. Opening balance 3 16 103 16 106 Value adjustments Additions 976 976 TOTALDisposals MINOR ASSETS 3 (115 805} 274 (115 805} 277 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 Intangible Machinery and assets equipment Total Number of R1 minor assets 5 5 Number of minor assets at cost 11 877 11 878 TOTAL NUMBER OF MINOR ASSETS 1 11 882 11 883 Minor Capital Assets under investigation Number Value R'000 Included in the above total of the minor capital assets per the asset register are assets that are under investigation: Machinery and equipment 131 125 The assets could not be verified during the asset counts and after the investigation is concluded, it will be handed over to loss control. MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2016 Machinery Intangible and assets equipment Total R'000 R'000 R'000 Opening balance 3 16 842 16 845 Prior period error Additions 955 955 Disposals (1 694) (1 694) TOTAL MINOR ASSETS 3 16103 16106 Machinery Intangible and assets equipment Total Number of R1 minor assets 5 5 Number of minor assets at cost 12 641 12 642 TOTAL NUMBER OF MINOR ASSETS 1 12 646 12 647 27 .4.1 Prior period error 2015116 R'000 Nature of prior period error Relating to 2015/16 Movable Assets written-off during the previous financial 189 1 year found in the current financial year. Total prior period errors 189 It is noted to the reader of the Annual Financial Statements that the opening balance for movable tangible capital assets has been adjusted with RO. 189 million, in order to align the annual financialstatements with the asset register. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 27 .5 Movable assets written off MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2017 Machinery and equipment Total R'000 R'000 Assets written off 584 584 TOTAL MOVABLE ASSETS WRITTEN OFF 584 584 MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2016 z Machinery and equipment Total 0 R'000 R'000 - Assets written off 942 942 TOTAL MOVABLE ASSETS WRITTEN OFF 942 942 ::E 28. Intangible Capital Assets a::: MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 0 31 MARCH 2017 LL. Opening Value Closing balance adjustments Additions Disposals Balance z R'000 R'000 R'000 R'000 R'000 - ...J Software 1 013 292 1 305 -c:c TOTAL INTANGIBLE 1 013 292 1 305 CAPITAL ASSETS u z 28.1 Additions c:c ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED z 31 MARCH 2017 LL.- Received current year, • • (Develop-ment not paid work in (Paid current progress - year, received Cash Non-Cash current costs) prior year) Total R'000 R'000 R'000 R'000 R'000 Software 292 292 TOTAL ADDITIONS TO 292 292 INTANGIBLE CAPITAL ASSETS Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 28.2 Disposals DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017 Non-cash Total Cash Received Sold for cash disposal disposals Actual R'000 R'000 R'000 R'000 Software TOTAL DISPOSALS OF INTANGIBLE CAPITAL ASSETS 28.3 Movement for 2015/2016 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Opening Prior period Closing balance error Additions Disposals Balance R'000 R'000 R'000 R'000 R'000 Software 438 575 1 013 TOTAL INTANGIBLE 438 575 1 013 CAPITAL ASSETS Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 29. Immovable Tangible Capital Assets MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017 Opening Value balance adjustments Additions Disposals Closing Balance R'000 R'000 R'000 R'000 R'000 BUILDINGS AND 3 097 605 5 438 007 207 020 (696) 8 741 936 OTHER FIXED z STRUCTURES Dwellings 38 782 379 924 559 (696) 418 569 0 Non-residential buildings 3 058 823 5 058 083 206 461 8 323 367 - Other fixed structures LAND AND SUBSOIL 99 445 621 827 11 083 (4 873) 727 482 ASSETS ::E Land 99 445 621 827 11 083 (4 873) I 121482 I a::: 0 Capital Work-in- 655 395 187 141 (656 373) 186 163 LL. progress z TOTAL IMMOVABLE 3 852 445 6 059 834 405 244 (661 942) 9 655 581 - TANGIBLE CAPITAL ...J ASSETS c:c Value adjustments comprise the adjustment of carrying values of properties to reflect municipal values where land - parcels could be linked to municipal valuation rolls, in line with theAccounting Manual for Departments, Chapter 11, u which permits the application of fair values (in this case municipal values) as the revised deemed cost of such assets given the absence of historical cost information. In the current year, Municipal Valuation Rolls were used to z determine the deemed cost I fair value of properties previously valued at R1. This adjustment amounted to R6.060 billion. c:c z LL.- • • Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 29.1 Additions ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017 (Capital Received Work in current, not Progress paid current costs (Paid current and finance year, lease received Cash Non-cash payments) prior year) Total R'000 R'000 R'000 R'000 R'000 BUILDING AND OTHER FIXED 187 141 199 828 (179 949) 207 020 STRUCTURES Dwellings 559 559 Non-residential buildings 69 417 199 269 (62 225) 206 461 Other fixed structures 117 724 (117 724) LAND AND SUBSOIL ASSETS 11 083 11 083 Land 11 083 -I 11 083 I TOTAL ADDITIONS TO 187 141 210 911 (179 949) 218 103 IMMOVABLE TANGIBLE CAPITAL ASSETS Additions consisted of Sec 42 transfers amounting to R166.056 million received in terms of the PFMA from user departments, properties transferred into the name of the Free State Provincial Government amounting to R36. 175 million and own projects capitalised amounting to R15.872 million. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 29.2 Disposals DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2017 Cash Non-cash Total Received Sold for cash disposal disposals Actual R'OOO R'OOO R'OOO R'OOO BUILDINGS AND 171 525 696 1 964 OTHER FIXED z STRUCTURES 0 Dwellings 5 - Non-residential buildings 171 2 o � • Other fixed structures � I I LAND AND SUBSOIL 4 873 4 873 ::E ASSETS a::: Land 4 873 I 4 873 I - I 0 TOTAL DISPOSALS OF 171 5398 5 569 1 964 LL. IMMOVABLE TANGIBLE z CAPITAL ASSETS - ...J During the 2016/2017 year, the Free State Department of Public Works & Infrastructure sold seven residential c:c properties to individuals for cash amounting to R1.964 million and furthermore eight residential properties (R0.525 - million) were donated to private individuals and one vacant land property to a Municipality (R4.873 million). R5 u million included in the R6.8 million in note 2.3 relate to a property that was sold in instalments, the change of ownership will only occur when the final amount is received by the Department. R0.208 million was received in the z 2015/2016 financial year, however the registrationprocess was finalised in the 2016/2017 financial year. c:c z LL.- • • Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 29.3 Movement for 2016/17 MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016 Opening Prior period Closing balance error Additions Disposals Balance R'000 R'000 R'000 R'000 R'000 BUILDINGS AND 2 929 541 59 922 109 885 (1 743) 3 097 605 OTHER FIXED STRUCTURES Dwellings 38 603 1 842 80 (1 743) 38 782 Non-residential buildings 2 890 938 58 080 109 805 3 058 823 Other fixed structures LAND AND SUBSOIL 84 273 10 891 4 281 99 445 ASSETS Land 84 273 10 891 4 281 -I 99 445 I TOTAL IMMOVABLE 3 013 814 70 813 114 166 (1 743) 3 197 050 TANGIBLE CAPITAL ASSETS 29.4 Prior period error 2015/16 R'000 Nature of prior period error Relating to 2014/15 70 813 Additional properties identified during the process of aligning 70 813 the immovable asset register of Free State Department of Public Works and Infrastructure with the requirements of GIAMA and the Sector Specific Guide for Immovable Assets. Total prior period errors 70 813 29.5 Immovable assets valued at R1 IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2017 Buildings and other fixed Heritage Land and structures assets subsoil assets Total R'000 R'000 R'000 R'000 R1 Immovable assets TOTAL Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2016 Buildings and other fixed Heritage Land and structures assets subsoil assets Total R'000 R'000 R'000 R'000 R1 Immovable assets 1 029 658 1 687 TOTAL 1 029 658 1 687 29.6 S42 Immovable assets z Assets subjected to transfer in terms of S42 of the PFMA - 2016/17 0- Number of Value of assets assets R'OOO :E BUILDINGS AND OTHER FIXED STRUCTURES a:: Dwellings 234 0 Non-residential buildings 5128 LL. Other fixed structures 104 838 z TOTAL 14 110 200 - ...J 29.7 Immovable assets additional information - Facilities Schools 73 84 Clinics 1 1 Hospitals 1 Office buildings 13 7 Dwellings 16 18 Storage facilities 1 1 Other 10 14 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 2016/17 2015/16 Note c) Facilities on unsurveyed Duration of Annexure 9 Number Number land use Schools Clinics Hospitals Office buildings Dwellings Storage facilities Other d) Facilities on right to use Duration of Annexure 9 Number Number land use Schools 767 768 Clinics 187 187 Hospitals Office buildings 21 13 Dwellings Storage facilities Other 72 74 e) Agreement of Annexure 9 Number Number custodianship Land parcels Facilities Schools 6 Clinics Hospitals Office buildings 28 Dwellings 1 Storage facilities Other 9 30. Prior period errors 30.1 Correction of prior period errors Note 2015/16 R'OOO Assets: Movable Tangible Capital Assets - Please refer to note 26.3.1 26.3.1 260 Movable Tangible Capital Assets - Please refer to note 26.4.1 26.4.1 189 Immovable Tangible Capital Assets - Please refer to note 28.4 28.4 70 813 Net effect 71 262 Movable Assets written-offduring the previous financial year found in the current financial year. Additional properties identified during the process of aligning the immovable asset register of Free State Department of Public Works and Infrastructure with the requirements of GIAMA and the Sector Specific Guide for Immovable Assets. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 Note 2015/16 R'OOO Other: Irregular Expenditure - Please refer to note 22.5 22.5 268 Fruitless & Wasteful Expenditure - Please refer to note 23.4 23.4 (88) Net effect 180 The Department of the Premier did further investigations into the Irregular Expenditure and Fruitless and Wasteful Expenditure identified in the previous financial year. The prior year amount needs to be adjusted based on the z outcome of the investigation. 0- !ci :E et: 0 -zLL. c:c...J u- z c:c z LL.- • • NOTES TO THE ANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 31. STATEMENT OF CONDITIONAL GRANTS RECEIVED GRANT ALLOCATION SPENT 2015/16 %of Division of Amount available Revenue received Amount funds Division nl" Act/ DORA Other by spent by Under / spent by of Amount Provincial Roll Adjust- Adjust- Total depart- depart- (Overs pen depart- Revenue spent by � NAME OF Grants Overs ments ments Available ment ment ding) ment Act department DEPARTMENT ; R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 � .Q, §. EPWP 6 530 6 530 6 530 6 528 2 100.0% 6 034 6 034 � INCENTIVE � GRANT FOR � C ::, PROVINCES c. 6 530 6 530 6 530 6 528 2 6 034 6 034 � a � ...... ):,. ::, ::, §_ C ,..,..... � nl" \0 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 32. STATEMENT OF CONDITIONAL GRANTS AND OTHER TRANSFERS PAID TO MUNICIPALITIES GRANT ALLOCATION TRANSFER Re-allocations by National Treasury or ril" DoRA and other Roll Total Actual National � transfers Overs Adjustments Available Transfer Funds Withheld Department NAME OF MUNICIPALITY R'000 R'000 R'000 R'000 R'000 R'000 % � � DIHLABENG FS192 9 946 (487) 9459 9 459 .Q, KOPANONG FS162 4 905 (1 063) 3 842 3 841 §.. LETSEMENG FS161 2106 (143) 1 963 1 963 � MAFUBE FS205 9 756 (2 690) 7 066 7 065 � MALUTI-A-PHOFUNG FS194 101 349 (13 552) 87 797 87 796 "� MAN MANGAUNG 84 859 32 758 117 617 117 617 :, MANTSOPA FS196 539 46 585 585 � � MASILONYANA FS181 3 737 (99) 3 638 3 638 2 MATJHABENG FS184 56 262 (7 871) 48 391 48 390 2: METSIMAHOLO FS204 8 393 (110) 8 283 8 283 MOHOKARE FS163 192 67 259 258 MOQHAKA FS201 7 978 (255) 7 723 7 723 " NALA FS185 2 389 1 818 4 207 4 207 ):,. :, :, NALEDI FS16 C: NGWATHE FS203 8 657 341 8 998 8 997 NKETOANA FS193 6 848 (846) 6 002 6 002 ..,0 PHUMELELA FS195 1 317 150 1 467 1 466 ,... � SETSOTO FS191 17 956 (8 140) 9 816 9 816 ril" TOKOLOGO FS183 311 170 481 480 "' TSWELOPELE FS183 1 677 {94} 1 583 1 582 TOTAL 329177 329177 329168 PART E: FINANCIAL INFORMATION ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 ANNEXURE1A STATEMENT OF CONDITIONAL GRANTS AND OTHER TRANSFERS PAID TO MUNICIPALITIES GRANT ALLOCATION TRANSFER SPENT 2015/16 Re- allocations Amount %of DoRA by National received available Division cil" and Treasury or by Amount funds of � other Roll Adjust- Total Actual Funds National munici- spent by spent by Revenue � transfers Overs ments Available Transfer Withheld Department pality municipality municipality Act NAME OF MUNICIPALITY i R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 % R'000 .Q, DIHLABENG FS192 9 946 (487) 9459 9459 9459 0.0% 8 867 KOPANONG FS162 4 905 (1 063) 3 842 3 841 3 841 0.0% 3 412 LETSEMENG FS161 2106 (143) 1 963 1 963 1 963 0.0% 1 790 � � MAFUBE FS205 9 756 (2 690) 7 066 7 065 7 065 0.0% 7 125 C ::, MALUTI-A-PHOFUNG FS194 101 349 (13 552) 87 797 87 796 87 796 0.0% 65 919 MAN MANGAUNG 84 859 32 758 117 617 117 617 117 617 0.0% 170 867 �a MANTSOPA FS196 539 46 585 585 585 0.0% 445 MASILONYANA FS181 3 737 (99) 3 638 3 638 3 638 0.0% 3 302 MATJHABENG FS184 56 262 (7 871) 48 391 48 390 48 390 0.0% 32 861 METSIMAHOLO FS204 8 393 (110) 8 283 8 283 8 283 0.0% 7 659 MOHOKARE FS163 192 67 259 258 258 0.0% 275 " MOQHAKA FS201 7 978 (255) 7 723 7 723 7 723 0.0% 7 374 )s ::, NALA FS185 2 389 1 818 4 207 4 207 4 207 0.0% 3 587 ::, NALEDI FS16 909 NGWATHE FS203 8 657 341 8 998 8 997 8 997 0.0% 8 034 0 ,..,..., NKETOANA FS193 6 848 (846) 6 002 6 002 6 002 0.0% 5 664 � PHUMELELA FS195 1 317 150 1 467 1 466 1 466 0.0% 1 273 cil" IO SETSOTO FS191 17 956 (8 140) 9 816 9 816 9 816 0.0% 11 223 TOKOLOGO FS183 311 170 481 480 480 0.0% 331 TSWELOPELE FS183 1 677 (94} 1 583 1 582 1 582 0.0% 1 492 TOTAL 329 177 329 177 329 168 329 168 342 409 ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 ANNEXURE1B STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS TRANSFER ALLOCATION TRANSFER 2015/16 %of Adjusted Available Appro- Roll Total Actual funds Appro- iil" priation Overs Adjust-ments Available Transfer Transferred priation Act DEPARTMENT/AGENCY/ACCOUNT R'000 R'000 R'000 R'000 R'000 % R'000 � � .Q, COM:LICENCES 9 38 94.7% 3 29 36 §. � TOTAL 9 38 3 29 36 -----::� � � "::, "- � � � 8" ):,. ::, ::, §_ " ,....., � iil" \Q PART E: FINANCIAL INFORMATION ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 ANNEXURE1G STATEMENT OF TRANSFERS TO HOUSEHOLDS TRANSFER ALLOCATION EXPENDITURE 2015/16 cil' %of Adjusted Available � Appropriation Roll Total Actual funds Appropriation � Act Overs Adjustments Available Transfer Transferred Act i HOUSEHOLDS .Q, R'000 R'000 R'000 R'000 R'000 % R'000 Transfers Household - Claims 248 (248) 83 � � Employee Social Benefit 3 578 110 3 688 3 687 100.0% 3 191 C ::, Donations 66 c. �a TOTAL 3 826 (138) 3 688 3 687 3 340 � " ):,. ::, ::, [ ,..0.., � cil' IO ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 ANNEXURE1H STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED 2016/17 2015/16 ril" � NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP R'000 R'000 � � Received in cash .Q, Capitec Bank National Batho Pele Awards - Joined 2nd in the category "Best Ethical and Professional 5 §. Department". The Department received R5 000. � � � Subtotal 5 ::," � Received in kind � Sue Geiken Trust Gala Dinner for the National Government Immovable Asset Management Implementation 10 2 Technical Committee meeting held on 19 November 2015. 2: Subtotal 10 � " ),. ::, TOTAL 5 10 ::, C: ..,0 ,... � "'ril" PART E: FINANCIAL INFORMATION ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 ANNEXURE1J STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE 2016/17 2015/16 ril" NATURE OF GIFT, DONATION OR SPONSORSHIP � R'000 R'000 (Group maior cateaories but list material items includina name of oraanisation � � Made in kind .Q, Donation of blankets to the community. 100 170 Donation of sanitary towels for school children. 10 Donation of Provincial Government properties. 5 398 1 123 � � Donation of food parcels to destitute families. 617 199 :," Donation of movable assets to Mafube Municipality, Mangaung Municipality and Dawiesville Primary School. 124 � � TOTAL 6115 1 626 2 2: � " ):,. :, :, C: ..,0 ,... � "'ril" ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 ANNEXURE3B STATEMENT OF CONTINGENT LIABILITIES AS AT31 MARCH 2017 Opening Liabilities Liabilities Balance Closing Balance Liabilities paid/cancelled/re recoverable iil" incurred during duced during the (Provide details 1 April 2016 the year year hereunder) 31 March 2017 � Nature of Liability R'000 R'000 R'000 R'000 R'000 � Claims against the department i .Q, Seatile Building Architectural and Civil Construction BK 2 851 2 851 Shawshank Construction 5 554 5 554 Afeng Consulting Engineers CC 867 867 � DL Duma 343 343 � C LF Manko 297 297 ::, Fortress Income 5 (Pty) Ltd 420 420 � Worldfocus 469 CC /Refela Trading JV 1 022 1 022 i3 Mangaung Urban Renewal Company (Pty) Ltd 32 791 32 791 Aurecon South Africa (Pty) Ltd and another 1 916 1 916 Nedbank Limited 4 501 4 501 Sango Menye 39 39 � Phela Umsebenzi Trading 48 CC 5473 5473 " )s ::, Lezmin 2815 CC Ua lkaheng Developers & Plant Hire 21 157 21 157 ::, Notice in terms of section 7(4) and (5) of the Public Protector, 13 145 13 145 Act 1994 (Claim of land) Mofomo Construction CC 4430 (4 430) ,..0.., Motshwane M & N Construction 983 983 � iil" Kroon Pannelbeaters 17 17 IO TOTAL 95806 (4 430) 91 376 PART E: FINANCIAL INFORMATION ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 ANNEXURE 4 CLAIMS RECOVERABLE Confirmed balance Unconfirmed balance Cash in transit at year end @" outstanding outstanding Total 2016/17 Receipt date i up to six (6) � Government Entity working � days after .Q, 31/03/2017 31/03/2016 31/03/2017 31/03/2016 31/03/2017 31/03/2016 vear end Amount §. R'OOO R'000 R'000 R'000 R'000 R'000 R'000 � Department � � Police, Roads and Transport 1 1 ::," Social Development 31 99 31 99 05/04/2017 31 COGTA 150 150 �i:l Education 19 19 19 19 National Public Works 4 4 4 4 Subtotal 50 273 4 54 273 31 � " Other Government Entities ):,. ::, ::, State Security Agency 36 36 GEPF 21 21 ..," � Subtotal 21 36 57 @" I.O TOTAL 50 294 4 36 54 330 31 ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 ANNEXURE 5 INTER-GOVERNMENT PAYABLES Confirmed balance Unconfirmed balance Cash in transit at year end outstanding outstanding TOTAL 2015/16 Payment date up to ril" GOVERNMENT ENTITY six (6) � working days before � 31/03/2017 31/03/2016 31/03/2017 31/03/2016 31/03/2017 31/03/2016 year end Amount � .Q, R'000 R'000 R'000 R'000 R'000 R'000 R'000 DEPARTMENTS Current � Premier 574 574 i:;' ::," TOTAL 574 574 �a 8 � " ):, ::, ::, 0 ,..,..... � "'ril" PART E: FINANCIAL INFORMATION ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS for theyear ended 31 March 2017 ANNEXURE 6 INVENTORIES Note Quantit 2016117 Quantit 2015116 Inventory R'000 R'000 Opening balance 11 401 301 16 542 696 ril" Addl{Less): Adjustments to prior year balance (7 622) (589) i Add: Additions/Purchases - Cash 111 571 14 323 8259 6 685 � Add: Additions - Non-cash (80) 1 311 � (Less): Disposals (3 880) (200) (165) (3) .Q, {Less): Issues (106 263) (14 065) (7 138) (6 650) Add/(Less): Adjustments 8 267 332 1 525 162 � � Closing balance 21 016 2 002 11 401 301 ::," � During the 2016/2017 financial year, the Department opened a store in QwaQwa. The Department is still in the process of classifying the ICN's between Inventory i:l and Consumables on LOGIS. This process resulted in the difference between the cash additions on BAS and LOGIS. Cash additions under goods and services � amount to R4.322 millionand under projects R9.940 million (Total: R14.262 million). � � " ):,. ::, ::, §_ ..," ,... � ril" \0 Free State Department of Public Worksand Infrastructure 2016/2017 Annual Report, Vote9 ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 ANNEXURE 7 MOVEMENT IN CAPITAL WORK IN PROGRESS MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2017 Current Year Opening Capital Completed Closing balance WIP Assets balance R'000 R'000 R'000 R'000 z 0 BUILDINGS AND OTHER FIXED STRUCTURES 655 395 187 141 (656 373) 186 163 - Non-residential buildings 217 401 69 417 (100 655) 186 163 Other fixed structures 437 994 117 724 555 718 !cc TOTAL 655 395 187 141 (656 373) 186 163 ::E Number of projects 2016/17 a::: Age analysis on ongoing projects Planned, Planned, 0 Construction Construction Total LL. not started started R'000 z 0 to 1 Year 4 13 657 - 1 to 3 Years 7 46 131 3 to 5 Years 8 126 375 ...J Longer than 5 Years c:c Total 19 186 163 u- I No projects longer than 5 years. z MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2016 c:c Current z Prior Year LL.- Opening period Capital Completed Closing balance error WIP Assets balance • • R'000 R'000 R'000 R'000 R'000 I.LI BUILDINGS AND OTHER FIXED 743 085 (277 585) 190 071 (176) 655 395 I- STRUCTURES Non-residential buildings 611 845 (452 175) 57 907 (176) 217 401 a::: Other fixed structures 131 240 174 590 132 164 437 994 � TOTAL 743 085 (277 585) 190 071 (176) 655 395 The prioryear amount was restated due to more accurate information that was available. Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 ANNEXURES TO THEANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 ANNEXURE 9 IMMOVABLE ASSETS ADDITIONAL DISCLOSURE 1. Deemed vested Properties deemed to vest in the province in terms of the Constitution, but for which the vesting process has not been completed are not included in the asset register of the department, but a separate register, as title has not been endorsed as yet. However as a result of the provincial function, the properties are managed by the provincial government and include the following: 2016/17 2015/16 Properties deemed vested Number Number Land parcels 92 311 Facilities Schools 73 84 Clinics and care centres 1 1 Hospitals 1 Office buildings 13 7 Dwellings 16 18 Storage facilities 1 1 Other 10 14 2. Facilities on land not surveyed The Free State Department of Public Works and Infrastructure is not aware of any facilities on unsurveyed land. 3. Facilities on land where a right to use exist The following service delivery facilities were constructed on the land parcels of other custodians. 2016/17 2015/16 Facilities on right to use land Number Number Schools 767 768 Clinics and care centres 187 187 Hospitals (Health Facilities) 1 1 Office buildings 21 13 Dwellings Storage facilities Other 72 74 Free State Department of Public Worksand Infrastructure2016/2017 Annual Report, Vote 9 ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS forthe year ended 31 March 2017 4. Agreement of custodianship reached Where agreement of custodianship has been reached the properties were transferred in accordance with the requirements of Section 42 of the Public Finance Management Act. 2016/17 2015/16 Agreement of custodianship Number Number Land parcels Facilities Schools 6 Clinics and care centres Hospitals Office buildings 28 Dwellings 1 Storage facilities Other 9 5. Contingent assets The Free State Department of Public Works and Infrastructure is not aware of any contingent assets. 6. Properties registered in the name of Free State Provincial Government belonging to other custodians These land parcels are not disclosed in the Free State Department of Public Works and Infrastructure's immovable asset register as Human Settlement properties these properties are disclosed as inventory in terms of the Sector Specific Guide and are in the process of being transferred to the relevant custodian in terms of applicable legislation. 2016/17 Properties of other custodians Number Human Settlement 2 602 Higher Education 18 2015/16 Properties of other custodians Number Human Settlement 2 611 Higher Education 18 NOTES NOTES NOTES NOTES