2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
CONTENTS
PART A 5 General Information
PART B 26 Performance Information Pre Determined Objectives
PART C 75 Governance
PART D 107 Human Resource Management
PART E 139 Financial Information
A prosperous Free State through facilitation of sustainable infrastructure 1 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 CONTENTS PART A: GENERAL INFORMATION
DEPARTMENT GENERAL INFORMTION 5
LIST OF ABBREVIATIONS 5
FOREWORD BY THE MEC 6
REPORT OF THE ACCOUNTING OFFICER 7
STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY 23 FOR THE ANNUAL REPORT
STRATEGIC OVERVIEW 24
Vision 24
Mission 24
Values 24
LEGISLATIVE AND OTHER MANDATES 24
ORGANISATIONAL STRUCTURE 25
PART B: PERFORMANCE INFORMATION
AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES 29
OVERVIEW OF DEPARTMENTAL PERFORMANCE
Service Delivery Environment 29
Service Delivery Improvement Plan 30
Organisational environment 34
Key policy developments and legislative changes 36
STRATEGIC OUTCOME ORIENTED GOALS 37
PERFORMANCE INFORMATION BY PROGRAMME 46
Programme 1:Administration 46
Programme 2: Public Works Infrastructure 48
Programme 3: Expanded Public Works Programme 57
TRANSFER PAYMENTS 62
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CONDITIONAL GRANTS 62
Conditional grants and earmarked funds paid
Conditional grants and earmarked funds received
CAPITAL INVESTMENT
Capital investment, maintenance and asset management plan
PART C: GOVERNANCE
INTRODUCTION 75
RISK MANAGEMENT 75
FRAUD AND CORRUPTION 94
MINIMISING CONFLICT OF INTEREST 94
CODE OF CONDUCT 94
HEALTH SAFETY AND ENVIRONMENTAL ISSUES 95
PORTFOLIO COMMITTEES (SCOPA) 96
PRIOR MODIFICATIONS TO AUDIT REPORTS 99
INTERNAL CONTROL UNIT 100
INTERNAL AUDIT AND AUDIT COMMITTEES 100
AUDIT COMMITTEE REPORT 102
PART D: HUMAN RESOURCE MANAGEMENT
INTRODUCTION 107
OVERVIEW OF HUMAN RESOURCES 107
HUMAN RESOURCES OVERSIGHT STATISTICS 110
PART E: FINANCIAL INFORMATION
REPORT OF THE AUDITOR GENERAL 139 ANNUAL FINANCIAL STATEMENTS 143
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CONTENTS
Department General Information 5
List of Abbreviations 5
Foreword by the Member of the Executive Council 6
Report of the Accounting Officer 7
Statement of Responsibility and 23 Confirmation of Accuracy for the Annual Report
Strategic Overview 24
Vision 24
Mission 24
Values 24
Legislative and Other Mandates 24
Organisational Structure 25
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PART A: GENERAL INFORMATION 1. DEPARTMENT GENERAL INFORMATION
PHYSICAL ADDRESS: Lebohang Building Corner St Andrews and Markgraff Streets Bloemfontein 9301
POSTAL ADDRESS: P.O. Box 7551 BLOEMFONTEIN 9301
TELEPHONE NUMBER: 051 405 5051
FAX NUMBER: 086 622 3283
EMAIL ADDRESS: [email protected]
WEBSITE ADDRESS: www.publicworks.fs.gov.za
2. LIST OF ABBREVIATIONS
AFS Annual Financial Statements AGSA Auditor-General of South Africa BAS Basic Accounting System B-BBEE Broad Based Black Economic Empowerment C-AMP Custodian Asset Management Plan CFO Chief Financial Officer CGICTPF Corporate Governance Of Information And Communication Technology Policy Framework. CIDB Construction Industry Development Board CoGTA Corporate Governance and Traditional Affairs CPIX Consumer Price Index DORA Division of Revenue Act. DPSA Department of Public Service and Administration EPWP Expanded Public Works Programme EXCO Executive Council FOHOD Forum of Heads of Departments FSIDMS Free State Infrastructure Delivery Management System FTE Full Time Equivalent GIAMA Government Immovable Asset Management Act HOA Home Owners Allowance HOD Head of Department HS Human Settlements IDMS Infrastructure Delivery Management System LAN Local Area Network LOGIS Logistical Information System MEC Member of Executive Council MPAT Management Performance Assessment Tool MTEF Medium Term Expenditure Framework NDPW National Department of Public Works NYS National Youth Service OHS Occupational Health and Safety OSD Occupation Specific Dispensation PFMA Public Finance Management Act PMIS Project Management Information System PSETA Public Service Sectorial and Training Authority RPL Recognition of Prior Learning SASSA South African Social Security Agency SCM Supply Chain Management SDIP Service Delivery Improvement Plan SITA State Information Technology Agency SHERQ Safety, Health, Environment, Risk and Quality SLA Service Level Agreement SMME Small Micro Medium Enterprises SMS Senior Management Services SONA State of the Nation Address SOPA State of the Province Address TR Treasury Regulations U-AMPs User Asset Management Plans
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3. FOREWORD BY THE MEMBER OF THE EXECUTIVE COUNCIL
The 2013/2014 policy budget speech, tabled in March 2013 as informed by the Annual Performance Plan 2013/2014, outlined the Department’s goal to deliver on a number of priority focal areas. We take this opportunity to reflect on some of the progress achieved linked to the priorities identified:
Departmental Capacity
In addressing the Departmental capacity, the Department appointed 140 suitably qualified personnel in the fields of works infrastructure, property management, expanded public works programme, supply chain management, finance, information communication technology and security management to create and sustain a working environment that is conducive to improve service delivery.
These appointments enhanced leadership and improved operational efficiency within the department, whilst we simultaneously exceeded the2% threshold on disability. The department employs 41 disabled personnel, which is 2, 2% of the departmental workforce. We however still have a challenge of disabled personnel on Deputy Director Level and above.
The Department made 23 appointments from the bursary programme and the provincial database of unemployed youth qualified in the following fields: Civil Engineering, Quantity Surveying, Building Studies, Mechanical Engineering, Electrical Engineering, Information Technology and Commerce.
Infrastructure Delivery
Working with client departments, the Department successfully completed 38 capital projects inclusive of social and economic infrastructure in terms of new and special schools, hospitals, libraries, community halls and paving of township streets.
Municipal Services
Total Expenditure on municipal services amounted to R250.627million and expenditure on Rates & Taxes was R 279.925million.
Rentals
A total rental expenditure awarded to the 21 black landlords for the 2013/2014 financial year is R56. 973million. The Department rents property from the black landlords in an effort to assist them to enter the fixed property industry which is by far dominated by Previously Advantaged Individuals.
Expanded Public Works Programme (EPWP)
EPWP has created 59 790 work opportunities which translates to 17 878 Fulltime Equivalent jobs from 1 248 projects amounting to R303.849 million. These work opportunities were generated through relevant public bodies within the Free State Province.
A total of 126 participants were trained through National Youth Service Programme in the Hygiene and Cleaning Learnership and are now employed as permanent employees of the Department, with effect from 01 April 2014 as part of the exit strategy.
Significantly, this report heralds the end of the five year term of the fourth democratic government. We have over the last five years, worked to improve the quality of life of our communities.
Informed by the National Development Plan (NDP), the performance of the Department clearly focused on the strategic outputs to eradicate poverty and unemployment towards the creation of communities with equal and ever improving living conditions.
We trust that the path on which we have embarked will enable us to secure the future we seek to build. It is encouraging to note man- agement high levels of commitment and collective responsibility for this journey. The Department will do everything in its control to ensure that collaboration and partnership are nurtured to walk this journey as a Province, not just as a Department.
E.S. Mabe Member of the Executive Council: Department of Public Works Date: 31 May 2014
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4. REPORT OF THE ACCOUNTING OFFICER
4.1. Overview of the Operations of the Department
The Department of Public Works is responsible for the construction and maintenance of buildings management of provincial owned and rented properties including the provision of office accommodation, payment of municipal services and provisioning of security services as well as coordination, monitoring and implementation of Expanded Public Works Programme. The De- partment committed itself to delivering this mandate and 2013/2014 noteworthy successes are briefly highlighted as details are covered in relevant sections throughout this report.
4.1.1. Filling of Critical funded posts
In addressing Departmental capacity, 140 appointments were made with suitably qualified personnel in the fields of works infrastructure, property management, expanded public works programme, supply chain management, finance, information communication technology and security management to create and sustain a working environment that is conducive towards improved service delivery. The Department made 23 appointments from the bursary programme and the provincial database of unemployed youth qualified in the following fields: civil engineering, quantity surveying, building studies, mechanical engineering, electrical engineering, information communication technology, and commerce.
4.1.2. Accelerated Infrastructure Delivery
In collaboration with the client departments, the Department has successfully completed 38 capital projects inclusive of socio-economic infrastructure in terms of new and special schools, hospitals, libraries, community halls, paving of township streets and others.
4.1.3. Property Transformation
The Department rents property from the black landlords in an effort to assist them to enter the fixed property industry which is by far dominated by previously advantaged individuals. A total rental expenditure awarded to the 21 black landlords for the period under review is R56.973 million.
4.1.4. Timely payment of Municipal Utilities, Rates and Taxes
The Department of Public Works is responsible for the payment of services on all provincially owned and rented properties for all provincial departments (excluding electricity and water for section 20 and 21 schools). Total expenditure on municipal services amounted to R250.627 million and expenditure on rates & taxes equals R279.925 million.
4.1.5. Job Creation
Work opportunities created by Provincial EPWP equals 59 790 and this translates to 17 878 Fulltime Equivalent jobs. These work opportunities were created by various public bodies from 1 248 projects amounting to R303.849 million. The breakdown of work opportunities created is as follows:
National Departments & Community Work Programme 30 019
Non State sector 5 474
Provincial Department 15 466
Municipalities 8 831
Total 59 790
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Breakdown for vulnerable groups is as follow:
• Women: 38 266
• Youth: 34 678
• People living with disabilities: 424
Initiatives employed to realise these work opportunities include the Cemetery Maintenance Programme, Food for Waste Pro- gramme, Community Halls Renovation Programme, Township Revitalisation Programme and the Community Work Programme.
4.2. Challenges
• The limited availability of registered and experienced professionals in the labour market poses a challenge with regards to the re- cruitment and retention of technical and professional staff. 36 Professionals were registered within the relevant built environment council and occupation specific dispensation is also utilised for the retention of these scarce skills. In addition, works inspectors’ rank will be translated into construction project managers and register at a relevant council to further strengthen project manage- ment on infrastructure projects.
• Late infrastructure execution due to incapacity by contractors to execute the allocated projects as a result of lack of financial resources, appropriate skills and in some instances, over commitment by the contractor. Project monitoring by regional manag- ers and project managers being intensified coupled with on-site monitoring by professional service providers. Furthermore, the Department will implement the balancing of the bill of quantities as well as perform the due diligence on technical and commercial to assess financial viability of the contractor.
• Insufficient budget to implement EPWP in-house projects resulting in failure to create jobs and accredited training for participants. The continuous consultations with Treasury, and National Public Works on national skills fund and political intervention being solicited as well as involvement of the private sector
4.3. Overview of the Financial Results of the Department
4.3.1 Departmental Receipts
2013/2014 2012/2013
Actual Actual (Over)/Under (Over)/Under Departmental Receipts Estimate Amount Estimate Collection Amount Collection Collected Collected
R’000 R’000 R’000 R’000 R’000 R’000
Sale of goods and services other than 31 961 36 986 (5 025) 21 130 32 340 (11 210) capital assets
Transfers received ------
Fines, penalties and forfeits ------
Interest, dividends and rent on land 57 142 (85) 54 97 (43)
Sale of capital assets - - - 1 700 240 1 460
Financial transactions in assets and 382 353 29 486 681 (195) liabilities
Total 32 400 37 481 (5 081) 23 370 33 358 (9 988)
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4.3.2. Plans for collecting Departmental Revenue.
Revenue generation initiatives for 2013/2014 implemented in line with the Departmental Revenue Strategy include:
• Approval to advertise on government buildings for a request for proposals from interested parties was granted.
• The Executive Council granted approval to dispose buildings, such as resorts, tuck shops and unused schools through leasing to interested parties.
• A policy for outdoor advertising being consulted on.
4.3.3. Tariffs charged by the Department
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) as provided in the final Budget Allocation Letter received from Provincial Treasury. The tariffs for residential and commercial properties are mostly market related.
4.3.4. Free services rendered by the Department
The provision of office space to Provincial Departments is centralised within the Department of Public Works and forms part of the annual appropriation. The Department provided office accommodation to the following client departments listed below. No value for this service can be attributed to this transaction.
4.3.4.1. Free State Department of Agriculture and Rural Development (ABSA Building Bloemfontein)
No. Districts Towns Common Asset Description Current Use
1 Xhariep Smithfield Office Extension Services
2 Xhariep Petrusburg Office Extension Services
3 Xhariep Fauriesmith Office Extension Services
4 Motheo Thaba-Nchu Office Extension Services
5 Motheo Thaba-Nchu Office Veterinary Laboratory Veterinary Services
6 Motheo Bloemfontein Office Vetinary Laboratory Veterinary Services
7 Motheo Bloemfontein Office Glen Extension Services
8 Lejweleputswa Welkom Office Extension Services
9 Lejweleputswa Ventersburg Office Extension Services
10 Lejweleputswa Hoopstad Office Extension Services
11 Lejweleputswa Bultfontein Office Extension Services
12 Lejweleputswa Boshof Office Extension Services
13 Fezile Dabi Kroonstad Office Extension Services
14 Fezile Dabi Kroonstad Office Veterinary Laboratory Veterinary Services
15 Fezile Dabi Heilbron Office Extension Services
16 Thabo Mofutsanyana Makoane Office Extension Services
17 Thabo Mofutsanyana Thaba- Bosiu Office Extension Services
18 Thabo Mofutsanyana Mangaung Office Extension Services
19 Thabo Mofutsanyana Makeneng Office Extension Services
20 Thabo Mofutsanyana Tseseng Office Extension Services
21 Thabo Mofutsanyana Monontsha Office Extension Services
22 Thabo Mofutsanyana Qwa-Qwa Office Vetinary Laboratory Veterinary Services
23 Thabo Mofutsanyana Weltevrede Farm Office Extension Services
24 Thabo Mofutsanyana Vrede Office Extension Services
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4.3.4.1. Free State Department of Agriculture and Rural Development (ABSA Building Bloemfontein)
25 Thabo Mofutsanyana Bethlehem Office Extension Services
26 Thabo Mofutsanyana Ficksburg Office Extension Services
27 Lejweleputswa Odendaalsrus Office Extension Services
28 Motheo Tweespruit Office Extension Services
29 Thabo Mofutsanyana Clocolan Office Extension Services
30 Thabo Mofutsanyana Phuthaditjhaba Stores and Workshop -
31 Thabo Mofutsanyana Mphatlalatsane Training Centre and Houses -
4.3.4.2. Co-operative Governance and Traditional Affairs
No Districts Towns Common Asset Description Current Use
1 Motheo Bloemfontein Lebohang Building Offices
District Office, Mora House; Erf 2 Fezile Dabi Sasolburg Offices No. 5,
Fezile Dabi District Office, No. 6 3 Fezile Dabi Kroonstad Offices Station Street
Provincial Disaster Manage- 4 Motheo Bloemfontein ment Centre MANCOFS (Pelo- Offices nomi Hospital)
LM Building: No. 7 Elizabeth 5 Motheo Bloemfontein Offices Street
Xhariep District offices, House 6 Xhariep Trompsburg No. 25 Fontein Street, Tromps- Offices burg
District Offices Kopano Com- 7 Lejweleputswa Welkom Offices plex & Musicon
Thabo Mofutsanyana District 8 Thabo Mofutsanyana Phuthaditjhaba Offices Office, Naledi Mall
Bakoena Traditional Council Traditional Council 9 Thabo Mofutsanyana Qwa-Qwa Offices & Batlokoa Traditional Offices Council Offices
Makholokoe Traditional Council Traditional Council 10 Thabo Mofutsanyana Harrismith Office: No. 1878 Randfontein Offices Farm in Glenlenny Tshiame
Batlokoa Ba Mokgalong Tradi- Traditional Council 11 Thabo Mofutsanyana Vrede tional Council Offices: No. 3 De Offices Jagger Street
Barolong Ba Seleka Traditional Traditional Council 12 Motheo Thaba-Nchu Council Offices: Ratlou Offices
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4.3.4.3. Human Settlement
No. District Town Common Asset Description Current Use
Department of Cooperative Governance & Traditional 1 Motheo Bloemfontein Affairs (CoGTA), and Offices Department of Human Settlements (HS)
2 Fezile Dabi Sasolburg Fezile Dabi District Offices Offices
3 Fezile Dabi Kroonstad Fezile Dabi District Offices Offices
Provincial Disaster 4 Motheo Bloemfontein Offices Management Centre
CoGTA & Motheo District 5 Motheo Bloemfontein Offices Offices
6 Xhariep Trompsburg Xhariep District Offices Offices
7 Lejweleputswa Welkom Lejweleputswa District Offices Offices
Thabo Mofut- Thabo Mofutsanyana District 8 Phuthaditjhaba Offices sanyana Office
Bakoena Traditional Council Thabo Mofut- Traditional Council 9 Qwa-Qwa Offices & Batlokoa Traditional sanyana Offices Council Offices
Thabo Mofut- Makholokoe Traditional Council Traditional Council 10 Harrismith sanyana Office Offices
Thabo Mofut- Batlokoa Ba Mokgalong Traditional Council 11 Vrede sanyana Traditional Council Offices Offices
Barolong Bo Seleka Traditional Traditional Council 12 Motheo Thaba ‘Nchu Council Offices Offices
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4.3.4.4. Department of Economic Development, Tourism and Environmental Affairs
No. District Town Common Asset Description Current Use
1 Xhariep Koffiefontein Kalkfontein Dam Nature Reserve Offices/ Staff Accommodation/ Stores
2 Xhariep Gariep-Dam Gariep Fish Hatchery Offices/ Staff Accommodation/ Stores
3 Xhariep Gariep-Dam Gariep Nature Reserve Offices/Chalets/ Stores
Tussen-Drie-Riviere Nature Re- 4 Xhariep Bethulie Offices/ Staff Accommodation/ Stores serve
5 Motheo Wepener Caledon Nature Reserve Offices/ Staff Accommodation/ Stores
6 Lejweleputswa Hoopstad Sandveld Nature Reserve Office/ Staff Accommodation/ Chalets/ Stores
7 Lejweleputswa Theunissen Erfnisdam Nature Reserve Office/ Staff Accommodation/ Chalets/ Stores
8 Lejweleputswa Ventersburg Willem Pretorius Nature Reserve Office/ Staff Accommodation/ Chalets/ Stores
Environmental Awareness and 9 Lejweleputswa Welkom Office SMME
10 Fezile Dabi Koppies Koppies Dam Nature Reserve Office/ Staff Accommodation/ Chalets/ Stores
Thabo Mofut- 11 Memel Seekoeivlei Nature Reserve Offices/Chalets/ Stores sanyana
Thabo Mofut- 12 Harrismith Sterkfontein Dam Nature Reserve Office/ Staff Accommodation/ Chalets/ Stores sanyana
Thabo Mofut- 13 Frankfort Jim Fouche Resort Office/ Staff Accommodation/ Chalets/ Stores sanyana
Thabo Mofut- 14 Phuthaditjhaba Fika Patso Resort Office/ Staff Accommodation/ Chalets/ Stores sanyana
15 Motheo Botshabelo Rust-fontein Dam Nature Reserve Office/ Staff Accommodation/ Chalets/ Stores
16 Motheo Bloemfontein Bathurst Nature Reserve Offices/ Staff Accommodation/ Stores
17 Motheo Bloemfontein Philip Sanders Resort Office/ Staff Accommodation/ Chalets/ Stores
18 Motheo Bloemfontein Karee Nursery Offices/ Staff Accommodation/ Stores
19 Motheo Bloemfontein Soetdoring Nature Reserve Office/ Staff Accommodation/ Chalets/ Stores
20 Motheo Bloemfontein Maria Moroka Nature Reserve Office/ Staff Accommodation/ Chalets/ Stores
4.3.4.5. Free State Department of Education
No. District Town Common Asset Description Current Use
Free State Provincial Government 1 Motheo Bloemfontein Offices (Head Office) Building
2 Motheo Bloemfontein Tempe Warehouse Complex Offices (Head Office)
3 Fezile Dabi Sasolburg Old Cedar School Complex Offices (District)
Kahobotjha-Sakhubusha School 4 Fezile Dabi Sasolburg Offices (District) Complex
Thabo Mofut- “De Bult” Government Buildings 5 Phuthaditjhaba Offices (District) sanyana Qwa-Qwa - 2 Blocks
Thabo Mofut- Truida Kestell School Complex 6 Bethlehem Offices (District) sanyana (Sub-District)
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4.3.4.6. Free State Department of Health (1 Academic Hospital, 1 Psychiatric Hospital, 5 Regional Hospitals, 24 District Hospitals, 227 Clinics and 10 Community Health Centre’s )
No. District Towns Common Asset Description Current Use
1 Motheo Bloemfontein District Office Office
2 Motheo Bloemfontein Xhariep District Office Office
3 Motheo Bloemfontein Corporate Office Office
4 Motheo Bloemfontein Ombudsman- Sinodale Office
5 Fezile Dabi Kroonstad Office Office
6 Fezile Dabi Sasolburg District Office Office
7 Lejweleputswa Welkom District Office Office
Thabo Mofutsan- 8 Bethlehem Roads Offices Office yana
Thabo Mofutsan- 9 Phuthaditjhaba District Office-Ombudsman Office yana
10 Xhariep Koffiefontein Sub-District Office-De Beers Office
11 Xhariep Springfontein Sub-District Office-Transnet Office
12 Xhariep Trompsburg Sub-District Office Office
13 Xhariep Phillipolis Sub-District Office- Environmental Office
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4.3.4.7. Free State Department of Police, Roads and Transport (Medfontein Building, Lengau Testing Station and PERM Building Bloemfontein)
No. District Towns Common Asset Description Current Use
1 Thabo Mofutsanyana Bethlehem Roads Office Office
2 Thabo Mofutsanyana Bethlehem Civil Beth Dihlabeng -
3 Thabo Mofutsanyana Bethlehem Revenue Traffic &Thabo Mofutsanyana Office
4 Thabo Mofutsanyana Ficksburg Testing Station Office
5 Thabo Mofutsanyana Harrismith Roads, Traffic & Revenue Office
6 Thabo Mofutsanyana Qwa-Qwa Roads Office
7 Thabo Mofutsanyana Qwa-Qwa Testing Station Office
8 Thabo Mofutsanyana Qwa-Qwa Thabo Mofutsanyana Warehouse Office
9 Xhariep Bethulie Xhariep DC Revenue Office
10 Motheo Bloemfontein Roads Infrastructure Office
11 Motheo Bloemfontein Roads Infrastructure Office
12 Motheo Bloemfontein Xhariep/Motheo Warehouse Office
13 Lejweleputswa Boshof Roads Office Office
14 Motheo Boshof Registration Administration office Office
15 Lejweleputswa Bothaville Roads Office Office
16 Lejweleputswa Bothaville Registration Administration Office Office
17 Lejweleputswa Bothaville Weighbridge Office
18 Lejweleputswa Brandfort Registration Administration Office Office
19 Motheo Botshabelo Motheo DC Revenue Office
20 Lejweleputswa Bultfontein Roads Camp Office
21 Lejweleputswa Bultfontein Registration Office Office
22 Thabo Mofutsanyana Clocolan Traffic Office Office
23 Xhariep Dealesville Registration Administration Office Office
24 Motheo Dewetsdorp Roads Infrastructure Office
25 Motheo Dewetsdorp Motheo DC Revenue Office
26 Xhariep Edenburg Xhariep DC Revenue Office
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4.3.4.7. Free State Department of Police, Roads and Transport (Medfontein Building, Lengau Testing Station and PERM Building Bloemfontein) (Continuation)
No. District Towns Common Asset Description Current Use
27 Xhariep Edenville Registration and Traffic Offices Office
28 Motheo Excelsior Motheo DC Revenue Office
29 Xhariep Fauriesmith Roads Infrastructure Office
30 Xhariep Fauriesmith Xhariep DC Revenue Office
31 Fezile Dabi Frankfort Roads Office Office
32 Fezile Dabi Frankfort Registration and Traffic Offices Office
33 Fezile Dabi Heilbron Roads Office Office
34 Fezile Dabi Heilbron Registration and Traffic Offices Office
35 Lejweleputswa Henneman Welkom Roads Camp Office
36 Lejweleputswa Henneman Registration Office Office
37 Lejweleputswa Hertzogville Roads Camp Office
38 Lejweleputswa Hertzogville Registration Administration Office Office
39 Lejweleputswa Hoopstad Roads Office Office
40 Lejweleputswa Hoopstad Registration Administration Office Office
41 Xhariep Jacobsdal Xhariep DC Revenue Office
42 Xhariep Koffiefontein Xhariep DC Revenue Office
43 Fezile Dabi Koppies Registration and Traffic Offices Office
44 Fezile Dabi Kroonstad Regional Roads Camp Office
45 Fezile Dabi Kroonstad Roads Office Office
46 Fezile Dabi Kroonstad Area Offices Office
47 Fezile Dabi Kroonstad Training Centre Office
48 Fezile Dabi Kroonstad S.P.I Offices Office
49 Fezile Dabi Kroonstad Warehouse Office
50 Fezile Dabi Kroonstad Registration and Traffic Offices Office
51 Fezile Dabi Kroonstad Weighbridge Office
52 Motheo Ladybrand Roads Infrastructure Office
53 Motheo Ladybrand Motheo DC Revenue Office
54 Motheo Bloemfontein Registration and Traffic Offices Office
55 Lejweleputswa Odendaalsrus Registration office Office
56 Fezile Dabi Parys Registration and Traffic Offices Office
57 Xhariep Petrusburg Roads Infrastructure Office
58 Xhariep Petrusburg Xhariep DC Revenue Office
59 Xhariep Philippolis Xhariep DC Revenue Office
60 Xhariep Reddersburg Xhariep DC Revenue Office
61 Xhariep Rouxville Roads Infrastructure Office
62 Xhariep Rouxville Xhariep DC Revenue Office
63 Fezile Dabi Sasolburg Registration and Traffic Offices Office
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4.3.4.7. Free State Department of Police, Roads and Transport (Medfontein Building, Lengau Testing Station and PERM Building Bloemfontein) (Continuation)
No. District Towns Common Asset Description Current Use
64 Fezile Dabi Sasolburg DLTC Offices Office
65 Motheo Thaba -Nchu (Selosesha) Roads Office Office
66 Thabo Mofutsanyana Senekal Roads Office Office
67 Thabo Mofutsanyana Senekal Traffic Office Office
68 Thabo Mofutsanyana Senekal Weighbridge Office
69 Xhariep Smithfield Xhariep DC Revenue Office
70 Xhariep Springfontein Xhariep DC Revenue Office
4.3.4.7. Free State Department of Police, Roads and Transport (Medfontein Building, Lengau Testing Station and PERM Building Bloemfontein) (Continuation)
No. District Towns Common Asset Description Current Use
71 Fezile Dabi Steynsrus Registration and Traffic Offices Office
72 Motheo Thaba Nchu Motheo DC Revenue Office
73 Lejweleputswa Theunissen Registration Office Office
74 Xhariep Trompsburg Roads Infrastructure Office
75 Xhariep Trompsburg Xhariep DC Revenue Office
76 Lejweleputswa Ventersburg Registration Office Office
77 Fezile Dabi Viljoenskroon Registration and Traffic Offices Office
78 Thabo Mofutsanyana Villiers Registration and Traffic Offices Office
79 Lejweleputswa Virginia Registration Office Office
80 Thabo Mofutsanyana Vrede Testing Station Office
81 Fezile Dabi Vredefort Registration and Traffic Offices Office
82 Lejweleputswa Welkom Registration Offices Office
83 Lejweleputswa Welkom Traffic Office Office
84 Motheo Wepener Motheo DC Revenue Office
85 Lejweleputswa Wesselsbron Registration Administration Office Office
86 Lejweleputswa Winburg Area and Regional Office Office
87 Lejweleputswa Winburg Roads Office Office
88 Lejweleputswa Winburg Registration Administration Office Office
89 Lejweleputswa Winburg Warehouse Office
90 Xhariep Zastron Xhariep DC Revenue Office
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4.3.4.8. Free State Department of the Premier (Lebohang Building and Free State Provincial Government Building Bloem- fontein)
Free state Department of Social Development (Thusanong Building Bloemfontein)
No. District Town Common Asset Description Current Use
1 Thabo Mofutsanyana Bethlehem Sederhof Building Offices
2 Fezile Dabi Frankfort Frankfort Office Offices
3 Motheo Bloemfontein Thusanong Office Offices
4 Xhariep Jagersfontein Jagersfontein Office Xhariep Sub Office
5 Xhariep Koffiefontein Xhariep District Office District Office
6 Xhariep Smithfield Smithfield Office Xhariep sub district Office
Lejweleputswa Sub District 7 Lejweleputswa Boshof Boshof Sub Office Office
8 Thabo Mofutsanyana Kroonstad KGI Building Fezile- Dabi District Office
Sub Offices for Thabo 9 Thabo Mofutsanyana Qwa-Qwa Makoane Youth Centre Mofutsanyana
4.3.4.9. Free State Department of Sport, Arts, Culture and Recreation (Business Partners Building Bloemfontein)
No. District Town Common Asset Description Current Use
1 Motheo Bloemfontein 64 Oos Burger Street Library: District Offices
2 Motheo Bloemfontein 36 Zastron Street Offices & Storage
3 Lejweleputswa Welkom 8366 Constantia Offices/Miscellaneous
4 Fezile Dabi Sasolburg 6095 Chris Hani Offices/Miscellaneous
5 Motheo Bloemfontein First Avenue Offices/Miscellaneous
6 Motheo Thaba-Nchu 103 -104 Market Square Offices/Miscellaneous
4.3.4.10. Free State Department of Provincial Treasury (Free State Provincial Government Building Bloemfontein)
4.3.4.11. Free State Legislature (4th Raadzaal – Bloemfontein)
4.3.4.12. Transversal Operating Systems
The Department of Provincial Treasury paid for the use of the transversal operating systems (BAS, PERSAL and LOGIS) on behalf of the Department of Public Works to SITA. No value for this service can be attributed to this transaction.
4.3.4.13. Services rendered on the Administration of Infrastructure Contracts
The Department of Public Works rendered services on the administration of infrastructure contracts, free of charge to the Departments listed below. No value for this service can be attributed to this transaction.
• The Department of Public Works rendered services on the administration of infrastructure contracts, free of charge to the Departments listed below. No value for this service can be attributed to this transaction
o Free State Department of Agriculture and Rural Development o Free State Department of Economic Development, Tourism and Environmental Affairs o Free State Department of Education o Free State Department of Health o Free State Department of the Premier o Free State Department of Social Development o Free State Department of Sport, Arts, Culture & Recreation o Free State Legislature
A prosperous Free State through facilitation of sustainable infrastructure 17 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.3.5. Bad debts written off
The total debt that was written off by the end of March 2014 was R437 206.55 inclusive of interest to the amount of R100 066.78.
As bad debts constitute a loss, the Department must have savings before writing off any debt.
4.3.6. Over collection of revenue
The Department finalised the lease agreement with Medical Provisioning Administration System, during the 2013/2014 financial year. SITA paid outstanding rent from the 2008 financial year and therefore the over collection.
4.3.7. Contingent asset/liability note to the Annual Financial Statement on the PILIR matter.
The implementation of the Policy and Procedure on Incapacity Leave and Ill-health Retirement (PILIR) was suspended for part of the financial year. PILIR provides for the appointment of a Panel of Accredited Health Risk Managers by the Department of Public Service and Administration, as service providers available to a Department to investigate and assess the applications made by employees. All nine incapacity leave cases from November 2013 onwards have been dealt with in terms of PILIR. The under mentioned cases all which emanate prior to 01 November 2013 have been reported to the Department of the Premier who forwarded them to the DPSA. The appointment of these service providers was delayed due to a legal challenge brought to the High Court against the appointment process. Therefore for the first half of the financial year no timeous decision could be made on the validity of the incapacity and/or ill-health retirement applications received from employees. Although the panel was formally established on 1 November 2013 there is a possibility that amounts paid to employees on incapacity and/or ill-health retirement may be recoverable if the applications, made in the first part of the financial year, are not subsequently recommended by the service providers. The Department has nine cases that still need to be investigated.
4.4. Programme Expenditure
Summary of actual expenditure in comparison to the adjusted appropriation for both 2013/2014 and 2012/2013 is reflected in the table below:
2013/2014 2012/2013
Programme Name Final Actual (Over)/ Un- Final Actual (Over)/Un- Appropriation der Expen- Appropriation der Expen- Expenditure diture Expenditure diture
R’000 R’000 R’000 R’000 R’000 R’000
Administration 94 213 93 984 729 88 519 85 345 3 174
Public Works Infrastructure 1 110 128 1 106 768 3 360 1 030 287 1 018 255 12 032
Expanded Public Works 198 612 198 443 169 159 118 151 652 7 466 Programme
Total 1 402 953 1 398 695 4 258 1 277 924 1 255 252 22 672
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Reasons for under expenditure
• Programme 1 Administration underspent with R0.729 million (0.8%) of the allocated budget. The under expenditure is mainly due to the outstanding payment of advertisements for tenders, the purchasing of computer programs/systems which unfor- tunately did not meet departmental requirements, and settlement pertaining to accommodation for unemployed graduates at Tshwane University of Technology. The payment has since been concluded.
• Programme 2 Public Works Infrastructure underspent with R3 360million (0.3%) as a result of a delay on invoices received for outsourced maintenance and the late awarding of an infrastructure project with a duration of 12 months as well as outstanding work on infrastructure projects.
• Programme 3 Expanded Public Works Programme underspent with R0.169m (0.1%) as a result of outstanding invoice for finance leases.
4.4.1. Virements
The Department experienced the following shortfalls in the 2013/2014 financial year:
• Public Works Infrastructure experienced shortfall of R112,000,000 under goods and services on municipal services and operating leases.
• Expanded Public Works Programme experienced a shortage under Goods and Services for stipends to be paid to beneficia- ries under their non-infrastructure projects and training for the Contractor Development Programme.
The virement ensured that expenditure reflect against sufficiently budgeted line items, thus mitigating over-expenditure by the Department and avoiding unauthorised expenditure.
4.4.2. Reasons for unauthorised, fruitless and wasteful expenditure
Steps taken to address and prevent a recurrence
• Deviation from Supply Chain Management (SCM) procedures for e.g. Ex Post Facto approvals are no longer permitted un- less within prescripts.
• Checklists are implemented by Supply Chain Management.
• Departmental policies are distributed.
Future plans of the Department
Ensure compliance with all policies, procedures and National Guidelines.
Public Private Partnership
• None
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4.4.3. Amounts for Irregular Expenditure for the 2013/2014 financial year
Amounts and incidences of irregular expenditure for 2013/2014 financial year include are reflected in the table below:
Date reported to Ac- Incident Description counting Officer/Chief Investigating Report Outcome Financial Officer
Amount of R456 515.05 paid / Should be R200 000 / Treasury approval need- ed / investigation were completed. Doc- umentation delivered to Internal Audit 25 Condoned – Jul’ 2011 (due date 19 Oct’ 2011) - feed- MEC Budget Speech: 2011.06.06 back - be referred to Provincial Treasury Khemano Consortium Provincial Treasury dd. / Condoned by Acting Head of Provin- 2013.07.08 (R256 515.05) cial Treasury 08 Jul’ 2013. Circular 17 of 2013 was signed by the Head of Depart- ment - Finincial Management circular, dd 23/12/2013 (Instruct note 1 of 2013).
Appointed of Consultants : Condoned –
- A roster-system not in place HOD: Public Works Appointment of Consul- 2004 - 2014 - System of awarding contracts to Con- 2012.10.31 (Batsumi) & tants (Archi-M-Studio / sultants was not transparent Corrie Roux Architects / HOD: PW & Rural Develop- Batsumi Consulting ) Condonement until completion of all ment projects concerned for client depart- ments including the departmental 2011.03.31 (Archi-M-Studio / projects Corrie Roux)
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4.4.4. Future plans of the Department to curb Irregular Expenditure
The Flow Diagram/chart of the procurement process explains processes in place to curb future irregular expenditure
Receipt of submission/request for procurement from End-user to Demand
Verification/Checking whether Motivation on why the required goods/services/ goods/services/ works are in the Annual works are not planned for. (Not Procurement Plan (APP) or No Demand Management Plan on APP and DMP) (DMP) Linking needs to budget Once motivation is (Demand Management) approved
Yes
Sitting of Bid Specification Committee (BSC)
Draft specifications, draft Special conditions of contracts
Bid/Tender Market and commodity analysis 80/20 Preference Quotation point system up to R500 000 and above to determine R30 000 – R500 000 R1 million procurement strategy 80/20 Preference Decide whether 90/10 Preference point system point system above tender or quotation R1 million
Invitation for Quotation Evaluation of quotations From as many after 21 days of END of Appointment of prospective suppliers/ successful service advertisement service providers Quotation (Quotations can Process provider/ supplier as possible from be advertised for a the database, period less than 21 however minimum Tender Process Tender days) of threequotations is acceptable
Adjudication of Approval of Advertisement of Evaluation the Bid/Tender by the BAC’s Submission sent HOD’s the Bid/Tender for of the Bid/ Bid Adjudication Recommendations to BAC for BAC’s Approval to 21 day and Closing Tender by Bid Committee (BAC) by the HOD and recommendation advertise after 21 days of Evaluation Recommendation is subsequently for HOD’s (Signed advertisement Committee done on the successful appointment of the approval to submission) (Advertisement in the (BEC) bidder (BAC’s Report successful bidder Advertise Tender Bulletin/other Evaluation and Minutes) (Appointment media) Report) Letter)
END of Tender Process
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4.4.5. Public Private Partnerships
None.
4.4.6. Discontinued activities/activities to be discontinued
None
4.4.7. Supply Chain Management
4.4.7.1. Unsolicited bid proposals concluded during 2013/2014
None concluded.
4.4.7.2. SCM processes and systems in place to prevent irregular expenditure
Yes, SCM processes and systems are in place to prevent irregular expenditure.
4.4.7.3. Challenges experienced in SCM and measures in place to resolve
• During the 2013/2014 financial year there was one instance whereby a bidder claimed that the contract awarded to an other bidder was not legitimate as it was supposed to be awarded to him. The bidder was invited for debriefing and was taken through the procedure that was followed to arrive at the final award. He was then happy with the outcome.
• Prolonged turnaround times for soliciting quotations and tenders. A Service Delivery Improvement plan will be developed to reduce turnaround times.
• Skilled workforce in SCM. Ensure that skilled and knowledgeable workforce is recruited and retained in SCM.
• Late receipt of invoices from service providers leading to late payments. Implemented centralised receipt of invoices to the SCM Office.
4.4.8. Gifts and Donations received in kind from non-related parties
The Department received a donation for the National Employee’s Health and Wellness Tournament held in September 2013 in Mafikeng from Price Waterhouse Coopers. The donation was in the form of tracksuits, golf shirts and netball kits to the value of R100 000.
M.W. Seoke
Accounting Officer
Department of Public Works
31 May 2014
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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 Annual Report are consistent.
• The 2013/2014 Annual Report is complete, accurate and is free from any omissions.
• The 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 hasbeen designed to provide reasonable assurance as to the integrity and reliability of the Performance Information, Human Resources Information and the Annual Financial Statements.
• The external auditors were engaged to express an independent opinion on the Annual Financial Statements.
In my opinion, the 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 2014.
Yours faithfully
M.W. Seoke
Accounting Officer
Department of Public Works
31 May 2014
A prosperous Free State through facilitation of sustainable infrastructure 23 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
6. STRATEGIC OVERVIEW
6.1. Vision
A prosperous Free State through facilitation of sustainable infrastructure. 6.2. Mission
Coordination, provision, promotion of infrastructure and sound management of assets. 6.3. Values
• Commitment
• People-Centred
• Teamwork
• Responsiveness
• Fairness
• Transparency
• Integrity and Honesty
• Respect.
7. LEGISLATIVE AND OTHER MANDATES
The legislative and policy directives that guide the functions of the Department include:
• Constitution of the Republic of South Africa (Act 108 of 1996). • Public Finance Management Act, 1999 (Act No. 1 of 1999) as amended by Public Finance Management Amendment Act, 1999 (Act No. 29 of 1999) and related Treasury Regulations. • Public Service Regulations 2001 (as amended) • Annual Division of Revenue Act • Promotion of Access to Information Act, 2000 (Act No. 2 of 2000) • Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000) • Skills Development Act, 2003 (Act No. 31 of 2003) • Local Government Demarcation Act, 1998 (Act No. 27 of 1998) • Local Government Municipal Structures Act, 1998 (Act No. 117 of 1998) • 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 Act, 1998, (Act 88 of 1998) • The Expropriation Act, 1975 (Act No. 63 of 1975) • The National Veld and Forest Fire Act, 1998 (Act No. 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)
24 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
8. ORGANISATIONAL STRUCTURE The diagram below represent the macro structure of the Department
MEMBER OF EXECUTIVE COUNCIL E. S. Mabe
HEAD OF DEPARTMENT M. W. Seoke
Research Monitoring Public Works, Property Internal & Evaluation & EPWP Branch Audit Strategic Planning, Directorate DDG Directorate Enterprise Risk Management & Service S. Mthembu R. Mocwaledi Delivery Improvement (Vacant) Directorate
N. Mphumela
Works Design, Property Management Construction EPWP Chief & Housekeeping Chief Maintenance Chief Directorate Directorate Directorate M. Mgemane Chief Financial Corporate (Vacant) Officer M. Thebe Services T. Kometsi Chief Directorate Sector Coordination S. Mtolo Public Works Strategic & Compliance Infrastructure Design Immovable Asset Monitoring and Client Services Management Directorate Education & Sports, Directorate Finance Management Arts, Culture & J. Motsie Directorate Recreation M. Seetsi Human Resource (Vacant) Management Directorate (Vacant) EPWP Community S. Diakos Development Directorate Facilities & Real Supply Chain and Public Works Estate (Property (Vacant) Assets Management Infrastructure Design Portfolio) Directorate and Client Services Directorate Health & Social Corporate M. Mashiloane Development Information & Vacant Communication Technology A. Geldenhuys PMU Directorate Operational EPWP Innovation B. Ntombela Property & Empowerment Sub - Directorate Works Construction and Management (Facility) Maintenance A. Raboroko
M. Ndlebe P. Malgas Legal Service Directorate
(Vacant) Security Services
M. Mofokeng
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ANNUAL REPORT 2013/14 Department of Public works Annual Report A prosperous Free State through facilitation of sustainable infrastructure
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PART B: Performace Information Predetermined Objectives
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CONTENTS PART B: PERFORMANCE INFORMATION 29
AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES 29
OVERVIEW OF DEPARTMENTAL PERFORMANCE 29
Service Delivery Environment 29
Service Delivery Improvement Plan 30
Organisational environment 34
Key policy developments and legislative changes 36
STRATEGIC OUTCOME ORIENTED GOALS 37
PERFORMANCE INFORMATION BY PROGRAMME 46
Programme 1: Administration 46
Programme 2: Public Works Infrastructure 48
Programme 3: Expanded Public Works Programme 57
TRANSFER PAYMENTS 62
CONDITIONAL GRANTS 63
Conditional grants and earmarked funds paid 63
Conditional grants and earmarked funds received 65
CAPITAL INVESTMENT 66
Capital investment, maintenance and asset management plan 00
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PART B: PERFORMANCE INFORMATION: PREDETERMINED OBJECTIVES
This section of the annual report focuses on key performance information that demonstrates the Department’s achievements against performance indicators and targets. 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES
The Auditor General of South Africa performed certain audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the predetermined objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.
Refer to page 139 of the Report of the Auditor General, published as Part E: Financial Information. 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE
The overview of the Departmental performance incorporates the performance of the Department as detailed in the paragraphs below.
2.1. Service Delivery Environment
Service delivery environment denotes the successes and challenges encountered in implementing the annual performance plan’s predetermined strategic objectives as well as the remedial actions taken in dealing with such challenges.
2.1.1. Programme 2: Public Works Infrastructure
2.1.1.1. Planning Sub-Programme
Integrated Leasing Strategy
This strategy aims to optimise office accommodation utilisation, enhance rental expenditures, recommend properties to be disposed of and identify new property development opportunities mainly targeted at the proposed decentralisation nodes (Trompsburg, Qwa- Qwa, Parys, Welkom and Thaba-Nchu). The goal of creating an integrated leasing strategy and office accommodation plan are in line with the Property Sector Transformation Charter’s objectives. The Department rents property from black landlords in an effort to assist them to enter the fixed property industry which is by far dominated by the previously advantaged individuals. A total rental expenditure awarded to the 21 black landlords for the period under review amounts to R56.973 million.
2.1.1.2. Design, Construction and Maintenance Sub-Programmes
Accelerated Infrastructure Delivery
Socio-economic infrastructure is essential to unlock economic opportunities, expand investment and create jobs. The aim is to ensure that socio-economic physical infrastructure is developed in the form of capital works projects, maintained and upgraded towards sus- taining physical infrastructure quality for long-term utilisation.
In collaboration with the client departments, the Department has successfully completed 38 social and economic infrastructure capital projects in terms of new schools, special schools, school hostels, hospitals, libraries, community halls and township revitalisation proj- ects involving upgrading of low volume roads from gravel to paved roads.
The breakdown of completed per own and client department is depicted in the table below:
Departments No. of Projects Completed
Public Works 19
Health 2
Education 13
Economic Development, Tourism and Environmental Affairs 1
Agriculture and Rural Development 1
Sport, Arts, Culture and Recreation 2
Total 38
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The Free State Infrastructure Delivery Management System was approved in 2013 to streamline infrastructure planning, cost- ing and execution over the Medium Term Expenditure Framework as well as dealing with non-payment of contractors and reprioritisation against planned funded annual projects by client departments. Service Level Agreements are being signed with various client departments to agree on implementation strategies and roles to ensure harmonious execution of projects.
The Free State Executive Council resolved that a task team be established to overcome the establishment of Works Infrastructure Units in client departments with a view to achieve government transformation objectives in construction and property industries as well as to massify job creation.
2.1.1.3. Immovable Asset Management Sub-Programme
Immovable Asset Register Enhancement
The Department embarked on an immovable asset register enhancement process which amongst other entails physical verification of government owned properties including perception condition rating. Records were reconciled and rectified to reflect only Free State registered properties to assist the Department in prioritising facilities that require technical condition assessments to determine their maintenance needs. Physical verification has been conducted on 3 649 government owned properties. Condition assessments and physical verification for all leased-in properties have been completed.
Despite these achievements, the Department has limited resources to do physical verification and technical condition as- sessments on all provincial government owned properties. The lack of a property management system poses challenges to effectively manage operations such as lease contracts, acquisitions, disposals, etc. The Department will be migrating to the National Department of Public Works’ asset register system “iE-Works” in 2014/2015. iE-Works is a web-based and an integrated asset management system to cater for the whole asset life cycle to achieve a GIAMA compliant asset manage- ment system.
2.1.1.4. Expanded Public Works Programme Sub-Programme
Job Creation Initiatives
The Provincial EPWP has created 59 790 work opportunities and 17 878 full time equivalent jobs across all spheres of govern- ment during the period under review. Community based initiatives such as Township Revitalization, Cemetery Maintenance, Food for Waste, Community Work Programme, Contractor Development Programme and National Youth Service Programme are some of the EPWP programmes that contributed to the realisation of jobs created. Challenges include low expenditure of the incentive grant due to poor reporting resulting in non-achievement of work opportunities. Intervention measures such as support from EXCO, Executive Mayors and Municipal Managers as well as involvement of Chief Financial Officers implored.
2.2. Service Delivery Improvement Plan
The 2013/2014 Service Delivery Improvement Plan provided a focused approach towards improving infrastructure delivery as well as ensuring proper allocation of resources required for implementation of the socio-economic works infrastructure on behalf of client departments. It aimed at addressing the infrastructure delivery gaps experienced in delivering schools, health care facilities, libraries and other works infrastructure to citizens timeously. The tables below highlight the achievements on the implementation of Service Delivery Improvement initiatives geared towards continuous built infrastructure delivery initiatives:
30 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Main Services provided and Quantity Standards
Key Service 2013/2014 De- Beneficia- to be im- sired Quantity Actual Achievements ries proved Standards
Department of Public Works: • Harrismith Testing Station upgrading
• Township Revitalisation Projects: upgrading and paving of 12.2km township streets in 14 towns namely, Arlington, Virginia, Odendaalsrus, Vredefort, Parys, Marabastad, Jagersfontein, Cornelia, Thaba Nchu, Petrusburg, Allanridge, Henneman. Batho Provincial and Heilbron. Departments: Department of Education: Five new/additional facilities: 19 classrooms at • Wesselsbron: Iphateleng • three schools namely, Public Three new schools at Phase II Works • Memel: • Parys: Sindekile • Thaba Nchu: Boitumelong • Esizibeni Sec- Educa- Primary School, Special School tion ondary School 7 classrooms • Parys: Ntshwephe- • Ficksburg Meqheleng • Health pha Primary Secondary School: New • Harrismith School and Admin Block, • Agricul- Vulindlela 6 New 95% of 38 con- ture and Classrooms and • Viljoenskroon: • Excelsior: Mahlatswetsa struction projects Rural Mahlabatheng Primary School new Admin completed within • Warden Delivery of Devel- Primary School. block and Primary School: Government opment time and budget 6 Classrooms Infrastructure • Bultfontein: Ntuthuzelo • Eco- Primary School Phase III. nomic • One new ablution block at Brandfort Monamodi Primary School Devel- • One new Girls hostel at Christiaan De Wet School at Dewetsdorp opment, Department of Health Tourism • Construction of Mantsopa new hospital at Ladybrand. and Environ- • Kroonstad: Boitumelo Contract 10 upgrading of New emergency section, mental family medicine & training centre. Affairs Department of Sport, Arts Culture and Recreation • Jacobsdal Ratanang New Library and Philippolis renovations of museum • Sport, completed Arts, Department of Agriculture Culture • Bloemfontein: Glen Agricultural College upgrading of existing accommodation. and Phase III (Admin block & cheese factory). Recre- Department of Economic Development, Tourism & Environmental Affairs ation • Bloemfontein Soetdoring: Nature Reserve New completion of new electricity cable lines.
A total of 34 construction projects were completed for client departments as well as for the Department of Public Works within time, cost and quality for the 2013/2014 financial year.
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Main Services provided and Quality Standards
Key Ser- 2012/2013 2013/2014 Desired Quality vice to be Beneficiaries Quality Actual Achievements Standards improved Standards
Projects monitoring on-site by regional manag- Project execution 100% com- ers, project managers and professional service pliant with legal prescripts: providers conducted continuously to ensure that: • South African National • National Building Regulations and Standards Standards including Act are applied to all infrastructure projects National Building to ensure that quality social and economic Project Regulations infrastructure is delivered. Delivery execution in Provincial of Gov- accordance • Adherence to Occupation Health and Safety Departments ernment with South • Occupation Health and prescripts by the contractor constantly Infrastruc- African Safety monitored by project and district managers ture National to all projects. Standards Free State Infrastructure Delivery Management System is aligned to the CIDB to ensure com- • Construction Industry pliance with standards and uniformity on the Development Board implementation of infrastructure with an aim to (CIDB). transform the role of construction industry for sus- tainable growth, improved delivery, performance and value to public.
Consultation Arrangements with Customers
Type of Actual Cus- Potential Arrange- Actual Achievement tomers Customers ment
Monthly Provincial De- Monthly meetings are being held with client departments as scheduled to: bilateral partments: project • Provide progress on site, challenges and action plan to overcome. meetings • Public with client Works • Ensure compliance with conditions of contract around payments, budgets depart- and projects completion. • ments. Education • Planning and implementation of projects to be in accordance with the IDMS • Health framework to ensure acceleration of infrastructure delivery.
• Agricul- ture and Rural Develop- Fortnight- ment Citizens ly site and technical • Economic meetings Develop- Fortnightly site and technical meetings are held for all projects to: with con- ment, • Monitor and report on project progress, programmes and cash flow tractors, Tourism consul- and Envi- • All technical and design issues are discussed to ensure projects are imple- tants and ronmental mented as per specifications and approved drawings. internal Affairs project leaders. • Sport, Arts, Cul- ture and Recre- ation.
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Access Strategy
Access Strategy Actual achievements
Access provided to client departments on in-house web based project Introduce and pilot project tracking system for easy ac- management system to obtain project details and project progress cess to project information. reports.
Consultation arrangements with customers
Type of Actual Potential Customers Actual achievement Arrangement Customers
Monthly bilateral Provincial Citizens • Support is provided to Provincial Treasury infrastructure project meetings with Departments unit, FOHOD, EXCO and the Department of the Pre- client departments. mier including other department) in relation to provincial infrastructure coordination meetings.
• Monthly bilateral meetings are being held with client departments as scheduled to
o Provide progress on site, challenges and action plan to overcome.
o Ensure compliance with conditions of contract around payments, budgets and completion targets.
o Planning and implementation of projects to be in accordance with the IDMS framework to ensure acceleration of service delivery
Service Information Tool
Types of Information tool Actual achievements
• The procurement of all infrastructure projects is advertised via iTender, local newspapers and the government tender bulletin for openness Introduce a platform of sharing information with client and transparency. departments. • Quarterly reports on project implementation are provided to the oversight institutions namely, Provincial Treasury, Provincial Legislature as well as the Audit Committee
Complaints Mechanism
Complaints Mechanism Actual achievements
Monthly bilateral project meetings with client depart- ments. • Monthly and adhoc meetings are being held with client departments to provide progress on site, challenges and action plan to overcome.
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2.3. Organisational Environment This section entails a description of significant developments internal to the Department that have assisted the Department to de- liver on its mandate. Challenges experienced during the period under review as well as intervention strategies are also highlighted.
2.3.1. Programme 1: Administration
Recruitment and Human Capital Development
Appointment of key personnel namely, the Chief Financial Officer, Director Information Communication Technology, Director EPWP Innovation and Empowerment, Director EPWP Coordination and Compliance Monitoring, Director Immovable Asset Management and the Director Construction and Maintenance is amongst the appointments made in core skills during the period under review. These appointments assisted in closing gaps in management and technical fields.
The absorption of bursary holders in engineering related fields and the appointment of unemployed youth from the provincial database mitigated the scarcity of skills. Various training interventions namely, internships, the bursary programme, profes- sional registration at relevant engineering councils, recognition of prior learning programme aimed increasing the artisan skill base as well as generic skills interventions were employed to continually strengthen leadership and personnel development. However the cost to continuously train new recruits remain high.
The use of consultants to sign-off completed work, where registered professionals are in short supply, has proven costly. Continual professional development; the maintenance of professional registration and pipeline succession in these areas are continually strengthened as indicated in the tables below:
Professional Development
Anticipated Date: Full Registration (Candidate Professionals) Professional Occupation 2013/14 2014/15 2015/16 2016/17 2017/18
Civil Engineering - - 2 4 3
Electrical Engineering - 2 1 - -
Mechanical Engineering - - 3 2 1
Architecture - - 1 - -
Quantity Surveying - 1 3 4 -
Construction Project Management - - 1 1 1
Total - 3 11 11 5
Work Inspectors in the Department
Categories Numbers Capacitation Levels
Electrical 33 90%
Building 14 50%
Mechanical 11 50%
Civil 7 35%
Total 65
Enterprise Risk Management
The Department entrenched enterprise risk management to assist with the achievement of predetermined strategic objec- tives with minimum risk. The Departmental Risk Management Committee meets on quarterly basis to enhance the support function to oversee that management account for their delegated responsibilities in respect of risk management. The Commit- tee Reports are tabled for discussion at the quarterly Audit Committee meetings on work done and actions taken by manage- ment to address identified areas for improvement.
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Risk Management awareness campaigns have been conducted amongst Senior and Middle Managers including operational employees in all business areas to ensure that risk management activities are fully integrated into strategic planning, daily management of programme activities, monitoring and reporting processes.
The uniqueness of challenges such as limited resources and competing objectives, together with stakeholders and public expectations of service delivery, escalates the need for risk-averse decision making. With the implementation of Enterprise- wide Risk Management within the Department, appropriate capabilities are being created.
Improvement in Internal Controls
The Internal Audit Directorate assisted the Department to accomplish its objectives by improving the effectiveness of risk management, internal control, governance processes and follow ups on AG findings. Audits were performed at IT, Finance, Supply Chain Management, Monitoring and Evaluation, Public Works & Infrastructure, Security Administration (Physical Se- curity & Compliance with OHSA in Government Buildings) and EPWP.
Assurance that internal controls are appropriate and effective is being provided at the quarterly Audit Committee meetings. This assurance is achieved by means of risk management processes as well as the identification of corrective actions and suggested enhancement to control processes.
The Audit Committee noted significant progress being made to improve the internal control system in the Department. It also noted that management implemented adequate control in most areas within the Department to provide reasonable assurance that all major inherent risks are appropriately identified; managed and applicable legislation is adhered to.
Infrastructure Procurement from the Historically Disadvantaged Individuals
The Department is bound by policy and legislation to implement measures aimed at redressing the imbalances of the past. Amongst the key issues is the expectation that the Department should consider the Broad Black Based Empowerment in contracting service providers in its delivery of services.
The Department has made a considerable effort in making the procurement opportunities available to black contractors, women and youth owned enterprises. A total of 26 infrastructure bids have been awarded to the value of about R231.368 million during the 2013/2014 financial year as reflected in the table below:
Bids Awarded Amount awarded
Total bids awarded 26
Total Rand Value (R million) R231 368 394.32
Historically Disadvantaged Individuals
No. of bids awarded to HDI Companies 24
Amount to HDIs (R mil) R205 343 958.69
Percentage of bids awarded to HDIs 92%
Women
No. of bids awarded to Women Owned Companies 2
Amount to Women Owned Companies (R mil) R12 918 216.64
Percentage of bids awarded to Women Owned Compa- 7.7% nies
Youth
No. of bids awarded to Youth Companies 3
Amount to Youth Companies (R mil) R14 558 806.11
Percentage of bids awarded to Youth Companies 11.5%
A prosperous Free State through facilitation of sustainable infrastructure 35 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
2.3.2. Programme 2: Public Works Infrastructure
Acceleration of Infrastructure
Infrastructure development and maintenance is critical to unlock economic opportunities and expand investment and jobs in the economy to address the spatial imbalances and apartheid patterns of development in the Province. 38 Infrastructure proj- ects have been completed for the period under review. Challenges like incapacity by the contractor to execute the allocated project resulting from lack of financial resources, over commitment by the contractor, appropriate skill by contractor, inclement weather and unrest in the labour market. Measures to salvage these problems include:
• Project monitoring by regional managers and project managers.
• On-site monitoring by professional service providers.
• Implement the balancing of the bill of quantities.
• Due diligence on technical and commercial to assess financial viability of the contractor.
Transformation of the Property Industry
The property industry is an important branch of our economy and like the rest of the economy; it has to be transformed in line with our policies. Government owns and manages a considerable slice of property in the province, and has a potential to reconfigure property relations in keeping with our vision of social change. A total of R56.973million rental expenditure was awarded to 21 black landlords.
The Department finalised a strategic process to review all existing leased office accommodation with the intention of creating an integrated leasing strategy and accommodation plan whose objectives are in line with the Property Sector Transformation Charter. Phase II of property transformation comprising of a B-BBEE funding scheme and property education programme is be pursued. This will include the implementation of office accommodation plan and the decentralisation plan.
Timely payment of Municipal Utilities, Rates and Taxes
The Department of Public Works is responsible for the payment of services on all provincially owned and rented properties for all provincial departments (excluding electricity and water for Section 20 and 21 schools).
Total Expenditure on municipal services amounted to R231.820million and expenditure on Rates & Taxes equals R205.347million.
2.3.3. Programme 3: Expanded Public Works Programme
The Expanded Public Works Programmes (EPWP) is one of the main strategies that the Free State Department of Public Works has passionately implemented, coordinated and monitored as a vehicle to alleviate poverty through creation of labour- intensive work opportunities. The Provincial EPWP created 59 790 work opportunities and 17 878 full time equivalent jobs across all spheres of government.
Of these, 24 297 work opportunities and 8 501 full time equivalent jobs were created by Municipalities and implementing provincial departments.
2.4. Key Policy Development and Legislative changes:
• Corporate Governance of Information and Communication Technology Policy Framework, 2012. This Act ensure adher- ence to the Department of Public Service and Administration Corporate Governance of ICT Policy Framework demands more effective accountability from the Executive Authority and Accounting Officer on matters relating to ICT.
• Construction Regulations, 2014, regulations states that an agent contemplated in sub regulations must manage the health and safety on a construction project for the client and be registered with a statutory body approved by the Chief Inspector qualified to perform the required functions
36 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
3. STRATEGIC OUTCOME ORIENTED GOALS
The passages below provide progress made towards the achievement of the Departmental Annual Performance Plan’s strategic outcome oriented goals per programme namely:
• A working environment geared towards improved service delivery
• An effective construction industry that promotes government’s objectives
• Effective property management and acceleration of property industry transformation.
• Massification of Expanded Public Works Programme to create jobs
Significant achievements are also highlighted with regard to the:
• National Development Plan priorities focusing on job creation, disposal of the state owned immovable non-strategic assets.
• Medium Term Strategic Framework outcomes aiming at decent employment through inclusive economic growth (Outcome 4); sustainable human settlements and an improved quality of household life (Outcome 8) and an efficient, effective and devel- opment oriented public service (Outcome 12), a skilled and capable workforce (Outcome 5) and the creation of an efficient, competitive and responsive economic infrastructure network.
3.1. Strategic Outcome Oriented Goal 1: A working environment geared towards improved service delivery
Fling of Critical Posts and Personnel Development
The Department filled critical funded posts to fulfil its goal in creating and sustaining a working environment conducive to improved ser- vice delivery. In total, 140 suitably qualified personnel were appointed during the period under review in the fields of works infrastructure, property management, expanded public works programme, supply chain management, finance, information communication technol- ogy and security management. These appointments enhanced leadership and improved operational efficiency in line with Outcome 12 aimed at creating an efficient, effective and development oriented public service.
Of the 140 appointments, 16 disabled employees were appointed after a concerted recruitment drive effort to meet the 2% threshold of the Department of Public Service and Administration (DPSA) target for the appointment of disabled employees. Consequently, the Department exceeded the 2% threshold on disability. Currently, 41 personnel with disabilities are in the estab- lishment of the Department, which equals to 2,2% of the Departmental workforce.
In addition, the Department made 23 appointments from the bursary programme and the provincial database of unemployed youth qualified in the following fields: Civil Engineering, Quantity Surveying, Building Studies, Mechanical Engineering, Electrical Engineering, Information Technology, and Commerce.
These critical appointments include:
Works Construction and Maintenance Sub-Programme
• Candidate Engineers X4
• Candidate Quantity Surveyor
• Works Inspector
• Learner/Apprentice Artisan
• Works Inspector X 2
• Artisan Production X 3
• Control Works Inspector (Works)
A prosperous Free State through facilitation of sustainable infrastructure 37 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Immovable Asset Management Sub-Programme
• Interns X 15
• Senior Administration Clerks X 5 (Property)
• Administration Officer (Property)
• Works Inspectors X3 (Property)
Facility Operations Sub-Programme
• Senior Security X 6
• Security Officers X 14
• Casual Security X 33 (Kopano Complex)
• Gardeners X 9 (new contract)
• Cleaner X 2
Expanded Public Works Programme
• Deputy Director
• Assistant Director
• Community Liaison Officers X 2
• Data Capturers X 2
Corporate Support Sub-Programme
• Assistant Network Controller
• Senior Supply Chain Management Practitioner
• Human Resources Management Officer
• Messenger
• Supply Chain Management Clerk
• Senior Administration Clerk X 7
• Senior Supply Chain Management
• Clerks Supply Chain Management (Internship) X 7
• Personal Assistant
• Deputy Director: Client Services
• Administration Clerk X 6 (new contracts)
• Personal Assistant (new contracts)
• Switchboard Operator
• Deputy Director: HOD Office
• Driver Messenger: SCM
38 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
The following training interventions were offered in 2013/2014 to ensure a skilled and capable workforce (Outcome 5) namely:
• Department of Public Service and Administration (DPSA) Compulsory Training Compulsory Induction Programme offered to new appointees to understand how the Public Service works.
• Recognition of Prior Learning targeting existing tradesman aids to become fully fledged artisans.
• Professional Registration aimed at assisting 36 professionals to register with the relevant professional engineering councils.
• Generic Training interventions mainly for support staff included: Performance Development Management System in-house train- ing for Supply Chain Management, Security Services and Finance practitioners. Basic Computer Skills, Public Administration Justice Act (PAJA) and Advanced Personal Assistant & Secretaries Development.
• Internship Programme
15 interns appointed from unemployed youth database have been placed at various private companies as Student Interns for practical experience. Public Service Sectorial and Training Authority (PSETA) is paying monthly stipends:
Surname Initials Fields Place Of Experiential Training.
1) Mosia A.A. Civil Engineering Lekwa Construction Newcastle
2) Mohlonoko S.W. Civil Engineering Lekwa Construction Alberton
3) Taunyane T.T. Civil Engineering Smec Engineers Bloemfontein
4) Maphalala M.A. Land Surveyor Mohlatole & Associates Midrand
5) Phumo T.M. Mechanical Engineering UDTrucks Rosslyn
6) Kau M.M. Mechanical Engineering UDTrucks Rosslyn
7) Molefe R.M. Mechanical Engineering UDTrucks Rosslyn
8) Gxabela D.M. Mechanical Engineering UDTrucks Rosslyn
9) Mokhati K.T. Mechanical Engineering UDTrucks Rosslyn
10) Kebautlwile T.P. Mechanical Engineering Bloemfontein Centlec
11) Majoro S.W. Electrical Engineering Bloemfontein Centlec
12) Mofokeng R.R. Electrical Engineering Bloemfontein Centlec
13) Maduna D.J. Electrical Engineering Bloemfontein Centlec
14) Mopeli N.P. Electrical Engineering Bloemfontein Centlec
15) Kimbili P.J. Electrical Engineering Bloemfontein Centlec
Bursary Programme
115 Part-time bursaries were approved of which 59 (52%) accepted the offer and are currently registered at tertiary institutions.
Mentorship Programme
24 existing technical professionals in various engineering fields are mentored at private companies to obtain full qualification.
A prosperous Free State through facilitation of sustainable infrastructure 39 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
3.2. Strategic Outcome Oriented Goal 2: An effective construction industry that promotes government’s objectives
Acceleration of infrastructure Delivery
To successfully contribute to the economic growth of the Province, infrastructure delivery as a cross-cutting priority needs to be accel- erated.” This statement was aligned with the diagnostic report and consequent objectives of the National Development Plan. As part of achieving Outcomes 6 goal of an efficient, competitive and responsive economic infrastructure network, the Department delivered quality infrastructure projects, on time and within budget during the period under review. The MEC’s budget speech emphasised that building and revamping the province’s infrastructure will become the Department’s key priority for the 2013/2014 financial year. Sub- sequently, 38 Infrastructure projects were completed in 2013/2014 for the following departments:
Department of Public Works
A total of 19 projects were completed inclusive of 15 projects in construction and 4 in maintenance.
Construction projects comprises of the upgrading of Harrismith Testing Station as well as the upgrading and paving of 12.2km township streets in 14 towns namely, Arlington, Virginia, Odendaalsrus, Vredefort, Parys, Marabastad, Jagersfontein, Cornelia, Thaba Nchu. Petrusburg, Allanridge, Henneman, Batho and Heilbron.
The four (4) completed maintenance projects consists of Welkom Kopano Complex Public Works Offices, Welkom SASSA Offices, Bloemfontein Lengau Testing Station and Thaba Nchu Public Works Offices.
Department of Education
The completion of 13 construction projects includes:
• 19 classrooms at three schools namely,
o Memel: Esizibeni Secondary School 7 classrooms
o Harrismith Vulindlela 6 New Classrooms and
o Warden Primary School: 6 Classrooms
• Three new schools at
o Parys: Sindekile Primary School,
o Parys: Ntshwephepha Primary School and
o Viljoenskroon: Mahlabatheng Primary School.
• Five new/additional facilities:
o Wesselsbron: Iphateleng Phase II
o Thaba Nchu: Boitumelong Special School
o Ficksburg Meqheleng Secondary School: New Admin Block,
o Excelsior: Mahlatswetsa Primary School new Admin block and
o Bultfontein: Ntuthuzelo Primary School Phase III.
• One new Girls hostel at Christiaan De Wet School at Dewetsdorp
• One new ablution block at Brandfort Monamodi Primary School.
40 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Department of Health
As part of ensuring that the Department of Public Works delivers quality infrastructure projects, construction of Mantsopa Hospital Complex in Ladybrand was completed.
This hospital provided temporary and permanent work to approximately 900 people during its several construction stages. Hospital capacity consists of 72 beds, an administration block, staff housing for doctors and nurses, male and female wards, specialist services such as obstetrics, paediatrics, emergency medical services, rehabilitation and occupational therapy unit, a pharmaceutical service, X-ray department, two operating theatres as well as a mortuary.
The Mantsopa Hospital is part of the Free State Provincial Government’s plan to improve access of health services in the Mantsopa Local Municipality while creating much needed jobs, will greatly expand access to quality health care to the community of Ladybrand and surrounding areas. For instance, the hospital has a maternity ward that will come as a much-needed relief for expectant local women while patients that need specialist care will no longer have to travel long distances to Bloemfontein
Boitumelo Hospital in Kroonstad Contract 10 also completed: New emergency section, family medicine & training centre
Department of Sport, Arts Culture and Recreation
Construction of Jacobsdal Ratanang: New Library and Philippolis Renovations of museum completed.
Department of Agriculture
Upgrading of Bloemfontein Glen Agricultural College existing accommodation, Phase III admin block and cheese factory completed.
Department of Economic Development, Tourism & Environmental Affairs
Bloemfontein Soetdoring: Nature Reserve completion of new electricity cable lines.
A prosperous Free State through facilitation of sustainable infrastructure 41 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
3.3. Strategic Outcome Oriented Goal 3: Effective property management and acceleration of property industry transformation
Implementation of the Government Immovable Asset Management Act.
As a major custodian of state immovable assets in the province, the Department of Public Works is responsible for planning, acquisi- tion, management and disposal of state-owned immovable properties vested in the Free State Province. This exercise was fundamen- tal for the elimination of historical duplications that reflect on the asset register, assessing whether the properties are being optimally utilised as well as the feasibility of keeping some properties on the Government Immovable Asset Register. The verification of 3 649 immovable assets was fast-tracked in order to realise a complete Immovable Asset Register.
Payment of Rates and Taxes
The total of 279.925 449.77 for rates & taxes was paid to municipalities for the financial year:
Municipality Total Paid Budget Under/Over Spending
Mangaung M 51 399 396.33 51 390 000.00 (9 396.33)
Letsemeng LM 1 409 045.38 1 410 000.00 954.62
Kopanong LM 3 423 710.42 3 424 000.00 289.58
Mohokare LM 10 639.12 11 000.00 360.88
Naledi LM 596 373.15 597 000.00 626.85
Masilonyana LM 2 423 622.69 2 424 000.00 377.31
Tokologo LM 236 398.35 237 000.00 601.65
Tswelopele LM 1 323 910.50 1 324 000.00 89.50
Matjhabeng LM 35 788 540.68 35 789 000.00 459.32
Nala LM 516 173.94 517 000.00 826.06
Setsoto LM 12 284 467.89 12 285 000.00 532.11
Dihlabeng LM 7 823 422.70 7 824 000.00 577.30
Nketoana LM 6 918 420.42 6 919 000.00 579.58
Maluti-A-Phofung LM 129 914 833.07 129 915 000.00 166.93
Phumelela LM 1 022 147.83 1 023 000.00 852.17
Mantsopa LM 412 573.68 413 000.00 426.32
Moqhaka LM 6 457 652.73 6 458 000.00 347.27
Ngwathe LM 4 592 145.74 4 593 000.00 854.26
Metsimaholo LM 6 299 134.41 6 300 000.00 865.59
Mafube LM 7 072 840.74 7 073 000.00 159.26
Total 279 925 449.77 279 926 000.00 550.23
Projected % Spending to date 100%
Actual % Spending to date 100%
42 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Payment of Municipal Services
For the 2013/2014 financial year, the Department paid the amount of R250.627million for municipal services namely, sanitation, refuse removal, electricity and water on all provincially owned and leased properties depending on the lease agreement.
Provision of a safe and secure environment
Security service in terms of access control is still maintained in all identified sites. On the job coaching is continually provided by su- pervisors at security service points to ensure adherence to security standards.
Access requirements and the Service Charter have been displayed at service points. Vehicle stop and search exercises are con- ducted. Parking discs are inspected for access compliance.
Revenue generation according to Departmental Revenue Strategy
Revenue to the amount of R36.043 million was collected which is 9% higher than the planned target of R31 000 million from rental settlements by the Government Entities.
3.4. Strategic Outcome Oriented Goal 4: Massification of Expanded Public orksW Programme to create jobs.
3.4.1. Job Creation
The Expanded Public Works Programme is one of government’s interventions aimed at drawing a significant number of un- employed and relatively unskilled South Africans, including people with disabilities, into productive work while providing them with the requisite skills that will ultimately increase their capacity to earn an income. The Expanded Public Works Programmes (EPWP) is one of the main strategies that the Free State Public Works has passionately implemented, coordinated and moni- tored as a vehicle to alleviate poverty through creation of labour-intensive work opportunities by responding to Outcome 4 aimed at decent employment through inclusive growth.
59 790 Work opportunities were created of which 17 878 were full time work opportunities.
Initiatives employed to realise this was the Cemetery Maintenance Programme, Food for Waste Programme, Community Halls Renovation Programme, Township Revitalisation Programme and the Community Works Programme.
3.4.2. Intensifying National Youth Service (NYS) Programme:
• Fifty (50) National Youth Service Electrical Apprenticeship learners were recruited and are currently undergoing Electrical Apprenticeship program training at CENTLEC Training and Development Centre for the period of three years. 29 learners have completed Phase 1: theoretical classes in July 2013 and were placed at various sections within Centlec for practical training for the period of eleven months. The remaining 21 learners are continuing with the theoretical classes for the Phase 1: Modular training.
• 130 beneficiaries were recruited for Hygiene and Cleaning learnership programme, and these beneficiaries are placedinall Provincial Departments buildings and districts regional offices for work placement. One hundred and twenty six (126) beneficiaries have successfully completed their learnership training and were found competent in Hygiene and cleaning NQF level 1 at the end of February 2014
• Fifty (50) beneficiaries were recruited for Construction Carpentry Learnership Programme, and participants completed Skills Programme in Carpentry related courses which were conducted for 6 weeks and continued with Building and Civil (specialising in Construction Carpentry) Learnership theoretical training. The programme is based on construction related learning where learners are able to manufacture wood products, constructing and finishing buildings and structural elements using wood and other related materials.
• Seventy (70) beneficiaries were selected from EPWP Cemetery cleaning programme in Heilbron and Frankfort in orderto participate in NYS Ornamental horticulture and landscaping programme. These serves as an exit strategy for young people who have been working in this programme.
• These beneficiaries have successfully completed both theoretical and practical training on the 31st March 2014.
A prosperous Free State through facilitation of sustainable infrastructure 43 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
3.4.3. Contractor Development Programme (CDP)
• Contractor Development Programme is being implemented within different Public Bodies in the Free State. It is a structured formal Learning Programme that will transfer skills to participating contractors through a structured learning programme which will be monitored by the Construction Sectorial Education and Training Authority.
• Fifty (50) learner contractors were recruited to participate in the programme which intends to develop emerging contractors into sustainable construction entities, able to execute labour intensive projects.
• Beneficiaries on this programme have completed a Skills Programme in Civil & Building and continued with theoretical training in Construction Contracting NQF Level 2.
• Participants are currently attending theoretical training at various sites and thereafter will be placed on projects for work placement. The Department is in the process of soliciting projects for learner contractors as part of their practical training.
• The following workshops and seminars were conducted by different stakeholders for enhancement and reskilling of these participants:
ORGANISATION SEMINAR TARGETED AUDIENCE DATE
ABSA Enterprise Education Session for Youth CDP beneficiaries 03 June 2013
Enterprise Development Value ABSA CDP beneficiaries 04 June 2013 preposition
CIDB Procurement delivery systems session CDP Coordinators 31 July 2013
Construction Contract Management CIDB, ABSA & NHBRC CDP beneficiaries 15 & 16 August 2013 Workshop
SEDA Pre In-Corporation workshop CDP beneficiaries 04 September 2013
• The Department has partnered with ABSA, Small Enterprise Development Agency (SEDA), National Home Builder Registration Council (NHBRC), Construction Industry Development Board (CIDB), National Department of Public Works and Construction Education and Training Authority (CETA) to ensure the successful implementation of the programme.
The following provincial departments qualified for the EPWP Incentive Grant Allocations for the 2013/14 Financial Year:
2013/2014 2013/2014 Provincial Departments Expenditure (‘000) Incentive Grant Allocations
Public Works 7 102 R7 102
Police, Roads and Transport 3 000 R3 000
Health 3 249 R2 509
Education 3 000 R1 710
Agriculture and Rural Development 550 R550
Sport, Arts, Culture and Recreation 550 R550
Economic Development & Environmental Affairs 550 R496
Total 18 001 R15 448
Municipalities
Metropolitan: Mangaung 3 896 3 398 2 023
44 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
2013/2014 2013/2014 Provincial Departments Expenditure (‘000) Incentive Grant Allocations
Districts:
2. Xhariep 1 000 1 000 1 000
3. Lejweleputswa 1 000 0 1 000
4. Thabo Mofutsanyana 1 000 1 000 1 000
5. Fezile Dabi 1 000 0 0
Local Municipalities 0 0
6. Letsemeng 1 000 1 547 1 000
7. Kopanong 1 000 259 259
8. Mohokare 1 000 49 570
9. Naledi 1 000 637 175
10. Masilonyana 1 000 765 637
11. Tokologo 1 000 486
12. Tswelopele 1 000 475 1 000
13. Matjhabeng 1 000 400 475
14. Nala 1 000 1 736 986
15. Setsoto 1 750 0 1 750
16. Dihlabeng 1 000 545 1 000
17. Nketoane 1 000 10 028 712
18. Mantsopa 1 000 461
18. Maluti a Phofung 10 210 461 10 210
19. Phumelela 1 000 10
21. Moqhaka 1 000 0 396
22. Ngwathe 1 000 324 500
23. Metsimaholo 1 000 0 0
24. Mafube 1 000 0
Total 36 856 25 650
3.4.4. The Township Revitalisation Programme (TRP)
The Department strives to apply strategies that make it possible to implement and monitor its Flagship Programmes in a bid to ensure that they have the desired impact.The Programme is a joint urban regeneration project between the Provincial and Local government that involves upgrading of low volume roads from gravel to paving as well as the replacement of old infrastructure to enhance the im- age of infrastructure in the townships.
TRP is currently in the Phase III of implementation and has been rolled out to fourteen (14) towns to date, including Arlington, Virginia, Odendaalsrus, Vredefort, Parys, Marabastad, Jagersfontein, Cornelia, Thaba Nchu. Petrusburg, Allanridge, Henneman, Batho and Heilbron. The project was recently awarded the best branded project nationwide for 2013/2014 by the National Department of Public Works at their annual awards excellence and best practices EPWP Kamoso Awards for 2013/2014.
A prosperous Free State through facilitation of sustainable infrastructure 45 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Progress is as follows:
Towns BudgetR (000) Length of roads paved Total Jobs created
1. ALLANRIDGE: Nyakallong. R9 000 904m 134
2. ARLINGTON: Leratswana. R8 000 706m 232
3. ODENDAALSRUS: Kutlwanong. R7 000 700m 79
4. PARYS: Tumahole. R18 529 1 590m 281
5. VIRGINA: Meloding. R11 368 775m 210
6. VREDEFORT: Mokwallo. R9 000 998m 256
7. CORNELIA: Ntswanatsatsi. R5 000 850m 201
8. KROONSTAD: Marabastad. R8 000 1 270m 163
9. JAGERSFONTEIN: Itumeleng. R9 000 950m 145
10. HENNEMAN: Phomolong. R5 000 961m 112
11. BLOEMFONTEIN: Batho. R7 000 789m 173
12. THABA NCHU: Selosesha. R14 557 805m 65
13. HEILBRON: Phiritona R9 000 775m 25
14. PETRUSBURG: Petrusburg. R9 000 700m 82
Total 12 777m
4. PERFORMANCE INFORMATION BY PROGRAMME
4.1. Programme 1: Administration 4.1.1. Purpose
The Administration Programme aims to provide the Department with administrative, strategic management, financial and corpo- rate support service in order to ensure that it delivers on its mandate in an integrated, efficient, effective and sustainable manner.
4.1.2. Sub-Programmes
The programme consists of the following Sub-Programmes:
• Office of the MEC
• Management of Department
• Corporate Support
4.1.3. Strategic Objective
Create and sustain a working environment through recruiting 200 people to reduce the vacancy rate by 2016.
46 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.1.4. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objective 1.1: Create and sustain a working environment through recruiting 200 people to reduce the vacancy rate by 2016.
Actual Deviation Planned Actual Achieve- from planned Performance Target Achievement ment target to Actual Comment on Deviations Indicator 2012/2013 Achievement 2013/2014 2013/2014 for 2013/2014
Number of 185 80 140 75% 80 Critical positions were filled. people appointed to reduce the va- The additional 60 appointments are broken cancy rate. down as follows:
• 33 are Security Interns.
• 15 are interns appointed to alleviate short-term work pressures.
• 12 appointments based on unforeseen natural attrition.
Reason for Deviation Strategy to overcome areas of over performance
The security interns were appointed through a policy de- cision and are paid stipends, through in-sourcing from private security companies.
Unforeseen circumstances occurred during the implementation period and there was a need to deviate in order to ensure that the Department There was also a need to appoint 15 interns. continue to deliver on its mandate.
Turnover was also higher due to natural attrition (trans- fers, death, and employment elsewhere).
A prosperous Free State through facilitation of sustainable infrastructure 47 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.1.5. Linking Performance with Budgets – Sub-Programme Expenditure
The table below provides a summary of Programme 1 Sub Programmes’ actual expenditure in in comparison with the adjusted appropriation for 2013/2014 and 2012/2013.
2012/2013 2013/2014
Actual Final Actual Final Under Expen- Under Ex- Sub-Programme Appropria- Appropria- diture Expendi- penditure tion Expenditure tion ture
R’000 R’000 R’000 R’000 R’000 R’000
Office of the MEC 10 882 10 724 158 7 855 7 831 24
Management of Depart- 4 332 4 238 94 11 289 11 255 64 ment
Corporate Support 73 305 70 383 2 922 75 069 74 428 641
Total 88 519 85 345 3 174 94 213 93 484 729
4.1.6. Description on how expenditure contributed to achievement of outputs.
Programme 1 underspent with R0.729million (0.8%) of the allocated budget. The under expenditure is mainly due to outstanding payments of advertisements for tenders, the purchasing of information communication technology systems and settlement pertaining to accommodation for unemployed graduates at Tshwane University of Technology. Payment has been concluded.
4.2. Programme 2: Public Works Infrastructure
4.2.1 Purpose
The programme aims to provide a balanced and equitable provincial government building infrastructure by promoting ac- cessibility that is sustainable, integrated and environmentally sensitive which supports economic development and social empowerment.
4.2.2. Sub-Programmes
The Programme consists of the following Sub-Programmes:
• Planning
• Design
• Construction
• Maintenance
• Immovable Asset Management
• Facility Operations:
o Operational Property and Housekeeping Sub sub-programme
o Security Services Sub sub-programme
4.2.3. Planning Sub-Programme
4.2.3.1 Purpose
The Sub-Programme is responsible to manage the demand for infrastructure by developing, monitoring and enforcing built sector and property management norms and standards.
48 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.2.3.2. Strategic Objective
Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset Management Act prescripts.
4.2.3.3. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objective 3.2: Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset Management Act prescripts.
Deviation Actual Planned from planned Achieve- Actual Achieve- Target target to Performance Indicators ment Comment on Deviations ment 2012/2013 Actual 2013/2014 Achievement 2013/2014 for 2013/2014
The 2014/2015 Custodian Im- movable Asset Management Compiled and submit- Plan was approved. ted compliant Custodian Immovable Asset Man- This plan was submitted to New 1 1 0% agement Plan as per re- Provincial Treasury for con- quirement of Provincial sideration of budget allocation Treasury. in terms of new office accom- modation and building mainte- nance requirements.
The planned annual target was Number of condition as- achieved. The condition of 10 sessments conducted on New 10 10 0% prestige houses was assessed state-owned buildings. to determine maintenance needs.
4.2.4. Design Sub-Programme
4.2.4.1. 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.
4.2.4.2. Strategic Objective
Facilitate and promote sustainable infrastructure by completing all construction and maintenance projects within contract time and budget in accordance with built sector norms and standards.
A prosperous Free State through facilitation of sustainable infrastructure 49 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.2.4.3. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objective 2.1: Facilitate and promote sustainable infrastructure by completing all construction and maintenance projects within contract time and budget in accordance with built sector norms and standards.
Actual Deviation from Planned Actual Achieve- planned target Performance Target Achievement ment to Actual Comment on Deviations Indicator 2012/2013 Achievement 2013/2014 2013/2014 for 2013/2014
The following five designs have been completed, advertised and contracts were awarded:
• Thaba Nchu Public Works Offices.
• Bloemfontein: Provincial Govern- Number of detailed ment Building Revolving Restau- designs completed New 5 5 0% rant. for implementation. • Bloemfontein: Lebohang Building Upgrade.
• Bloemfontein: Lengau Testing Sta- tion.
• Provincial Government Building.
4.2.5. Construction Sub-Programme
4.2.5.1 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. The Department of Public Works remains the implementing agent of the other provincial departments with regard to construction and maintenance of provincial infrastructure, therefore their infrastruc- ture budgets are shown at their relevant departmental votes.
4.2.5.2. Strategic Objective
Facilitate and promote sustainable infrastructure by completing all construction and maintenance projects within contract time and budget in accordance with built sector norms and standards.
50 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.2.5.3. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objective 2.1:Facilitate and promote sustainable infrastructure by completing all construction and maintenance projects within contract time and budget in accordance with built sector norms and standards
Deviation Actual Planned Actual from planned Achieve- Target Achievement Performance Indicators target to Actual Comment on Deviations ment Achievement 2012/2013 2013/2014 2013/2014 for 2013/2014
Number of projects com- 15 projects completed inclu- pleted within the contract - 5 15 200% sive of: Harrismith Testing period. Station and Phase III Town- ship Revitalisation Projects aimed at upgrading and paving of 12.2km township streets. 14 towns completed included Arlington, Virginia, Number of projects complet- - 5 15 200% Odendaalsrus, Vredefort, ed within budget. Parys, Marabastad, Jagers- fontein, Cornelia Thaba Nchu. Petrusburg, Allan- ridge, Henneman, Batho and Heilbron.
R113 938 222.70 is the value of awards to all Town- Value of contracts award- ship Revitalisation projects ed to HDI contractors ex- including the construction of pressed as a percentage of - R3m R113 938 222.70 3 697% the Botshabelo community the total value of contracts hall allocated to Historically awarded. Disadvantaged Individual companies.
Awarding of advertised bids Value of contracts awarded to Women Own Enterprises to Women Own Enterprise’s depends on whether bid- expressed as a percentage - R1.5m - -100% ders were received from of the total value of contracts this group and whether they awarded. met the necessary require- ments.
Reason for deviations Strategy to overcome areas of over performance
Constant consultations with all relevant stakeholders.
Monitor project execution against the conditions set out in Service Consultation with municipalities to identify streets were fast Level Agreements. tracked to ensure that the streets are upgraded and paved to benefit communities in terms of job creation and access. Performance Indicators on value of contracts awarded were debat- ed at National Public Works Sector meetings and will no longer be included because the market dictates, thus the Department does not have control over it.
A prosperous Free State through facilitation of sustainable infrastructure 51 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.2.6. Maintenance Sub-Programme
4.2.6.1. Purpose
The Sub-Programme is responsible for the following maintenance activities namely, routine maintenance, scheduled main- tenance and alterations.
4.2.6.2. Strategic Objective
Facilitate and promote sustainable infrastructure by completing all construction and maintenance projects within contract time and budget in accordance with built sector norms and standards.
4.2.6.3. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objective 2.1: Facilitate and promote sustainable infrastructure by completing all construction and maintenance projects within contract time and budget in accordance with built sector norms and standards.
Deviation Actual Actual Planned from planned Achieve- Achieve- Target target to Performance Indicators ment Comment on Deviations ment Actual 2012/2013 2013/2014 Achievement 2013/2014 for 2013/2014 The following maintenance projects were completed as a ratio to the number of The number of mainte- planned maintenance projects: nance projects completed • Lengau Testing Station. as a ratio to the number of - 4/4 4/4 0% • Thaba Nchu Public Works Offices planned maintenance proj- Upgrade. ects. • Welkom Kopano Complex, Works Offices. • Welkom SASSA Offices. The following projects were awarded:
• Bloemfontein Lengau Testing Station. • Number of maintenance Thaba Nchu Works Offices. - 3 4 25% • Bloemfontein Revolving Restaurant. projects awarded. • Thaba Nchu Boiketlo Old Age Home. Initially Thaba Nchu Boiketlo Old Age Home was planned to be done in-house, but advertised due to capacity challenges. The following scheduled maintenance projects were completed within the contract period. Number of scheduled maintenance projects com- • Lengau Testing Station. - 4 4 0% pleted within the contract • Thaba Nchu Public Works Offices period. Upgrade. • Welkom Kopano Complex, Works Offices. • Welkom SASSA Offices. The following scheduled (planned) maintenance projects completed within agreed budget. Number of scheduled maintenance projects com- • Lengau Testing Station. - 4 4 0% pleted within agreed bud- • Thaba Nchu Public Works Offices get. Upgrade. • Welkom Kopano Complex, Works Offices. • Welkom SASSA Offices.
52 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.2.7. Immovable Asset Management Sub-Programme
4.2.7.1. Purpose
The Sub-Programme is responsible to manage the property portfolio of the province; establish and manage the provincial strategic and infrastructure plan; provide accommodation for all provincial departments and other institutions:
• Acquiring and disposal of properties.
• Manage leasing in of properties and leasing out of government properties.
• Revenue generation.
• Management of the asset register.
4.2.7.2. Strategic Objective
Create an enabling environment for the development of B-BBEE landlords in the property market by ensuring that 50% of the total value of lease expenditure is awarded to B-BBEE landlords by 2016.
4.2.7.3. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objective 3.1: Create an enabling environment for the development of B-BBEE landlords in the property market by ensuring that 50% of the total value of lease expenditure is awarded to B-BBEE landlords by 2016
Actual Deviation Actual Planned Achieve- from planned Performance Achieve- Target ment target to Actual Comment on Deviations Indicator ment Achievement 2012/2013 2013/2014 2013/2014 for 2013/2014
Achievement of the set target was sub- Amount of ject to the finalisation of the accommoda- lease expendi- tion plan. This plan is intended to assist ture awarded R36.713m R62.6m R53.7m -14% with options whether to go out on tender to B-BBEE or negotiate with previously advantaged landlords. landlords to renew contract including joint ventures.
Reason for deviations Strategy to overcome areas of over performance
Accommodation Plan inclusive of the B-BBEE implementation strat- Achieving the set targets are subject to the finalisation of egy to address the transformation of property industry was completed the accommodation plan. during March 2014 for implementation in the 2014/2015 financial year.
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Strategic Objective 3.2. Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset Management Act prescripts
Devia- Actual tion from Actual Planned Achieve- planned tar- Achieve- Target Performance Indicators ment get to Actual Comment on Deviations ment Achieve- 2012/2013 2013/2014 2013/2014 ment for 2013/2014
This performance indicator refers to Number of erf data the number of properties physically checked for completeness verified. The verification of immov- to the total number of erven able assets was fast-tracked in or- New 1 397 3 649 161% in Asset Register (30%). der to address the audit queries that emanated from the 2012/2013 fi- nancial year in relation to the incom- plete Immovable Asset Register.
The budgeted amount of R4.500 million was surrendered to Provin- Number of assets acquired. - 1 - -100% cial Treasury for payment of bursa- ries.
Reason for deviations Strategy to overcome areas of over performance
This process was managed through a collective effort be- Targeted recruitment will be biased towards property management. tween Property Management officials and Works Construc- tion and Maintenance team. Acquisition policy is in place to expedite the procurement process.
4.2.8. Facility Operations Sub Programme
4.2.8.1. Operational Property and Housekeeping Sub sub-Programme
4.2.8.2. Purpose
The Sub-Programme is responsible to manage operations of buildings including facilities management, cleaning, greening, beautification and interior decoration.
4.2.8.3. Strategic Objective
Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset Man- agement Act prescripts.
54 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.2.8.3. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objective 3.2. Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset Management Act prescripts.
Devia- Actual tion from Planned Actual Achieve- planned tar- Target Performance Indicators Achievement ment get to Actual Comment on Deviations 2012/2013 Achieve- 2013/2014 2013/2014 ment for 2013/2014
Offices are serviced on daily basis. Level of cleanliness has improved. Number of properties receiving facilities - 35 35 0% Training on housekeeping norms management services. and service standards has been done and still continuing.
Gardens are frequently serviced.
Difference identified was due Amount of revenue to payment received from the R31 739 000 R31 000 000 R36 043 000 16.26% collected. Department of Health of R 2 157 3737.24.
Reason for deviations Strategy to overcome areas of over performance
The process of signing new lease agreements with the said The deviation is as a result of arrear rental settlements by entities has started. Government Entities such as SITA who paid outstanding rent from the 2008 financial year.
4.2.9. Changes to planned targets
The initial target for the Amount of revenue collected was R10 000 000 and it was adjusted by R21 000 000 during the period under review.
4.2.9.1. Security Services Sub sub-Programme
4.2.9.2. Purpose
The mandate of this Sub-sub-Programme is to provide a safe and secure environment at government buildings occupied by more than one department.
4.2.9.3. Strategic Objective
Provide a safe and secure environment in 35 government buildings by 2016.
A prosperous Free State through facilitation of sustainable infrastructure 55 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.2.9.4. Strategic objectives, performance indicators, planned targets and actual achievements
Strategic Objective 3.3: Provide a safe and secure environment in 35 government buildings by 2016
Devia- tion from Planned Actual Actual planned Target Achievement Performance Indicator Achievement target to Ac- Comment on Deviations 2012/2013 tual Achieve- 2013/2014 2013/2014 ment for 2013/2014
All 35 sites are guarded with physical security. Number of properties re- ceiving facilities manage- - 35 35 0% Services provided at these ment services. sites vary from access control, guarding and vehicle search- es.
4.2.10. Linking performance with budgets
The table below provide a summary of the actual expenditure in comparison to the adjusted appropriation for 2013/2014 and 2012/2013.
Sub-programme expenditure
2012/2013 2013/2014
(Over)/ Final Actual Programme 2: Public Works Under Final Actual (Over)/Under Appro- Infrastructure Expendi- Appropriation Expenditure Expenditure priation Expenditure ture
R’000 R’000 R’000 R’000 R’000 R’000
Programme Support 3 810 3 735 75 3 827 3 805 22
Planning 7 639 7 516 123 6 838 6 812 26
Design 18 415 18 209 206 20 056 20 030 26
Construction 59 259 52 779 6 480 92 043 91 502 541
132 Maintenance 129 970 2 850 138 489 135 902 2 587 820
Immovable Asset 667 666 917 1 027 719 126 719 056 70 Management 944
140 Facility Operations: 139 129 1 271 129 749 129 661 88 400
• Operational Property and 65 359 64 678 681 - 51 333 - Housekeeping
• Security Services 75 039 74 449 590 - 78 328 -
Total 1 030 287 1 018 255 12 032 1 110 128 1 106 768 3 360 000
1.1.1. Description on how expenditure contributed to achievement of outputs
Programme 2 Public Works Infrastructure underspend with R3.360 million (0.3%) as a result of a delay on invoices received for out- sourced maintenance and the late awarding of an infrastructure project with a duration of 12 months and outstanding work on infra- structure projects.
56 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.3. Programme 3: Expanded Public Works Programme 4.3.1. Purpose
The Expanded Public Works Programme (EPWP) is responsible to manage the implementation of programmes and strategies that leads to the development and empowerment of communities and contractors. This includes the provincial management and co-ordination of the Expanded Public Works Programme.
4.3.2. EPWP Sub Programmes
The programme consists of the following Sub-Programmes:
4.3.2.1. Community Development Sub Programme
4.3.2.2. Innovation and Empowerment Sub Programme
4.3.2.3. Coordination and Compliance Monitoring Sub Programme
Strategic Objectives
• Promote and create 9 800 decent work opportunities through the provision of accredited training and implementa- tion of community development initiatives
• Create an enabling environment for emerging enterprises and address skills shortage in the construction industry through development of emerging contractors and youth.
• Coordinate all stakeholders towards the successful implementation of the EPWP within the Province by creating 150 000 work opportunities by 2016
Strategic objectives, performance indicators, planned targets and actual achievements
4.3.2.1.1. Community Development Sub-Programme
4.3.2.1.2. Purpose
The Sub programme is responsible for the development and empowerment of impoverished communities.
A prosperous Free State through facilitation of sustainable infrastructure 57 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Strategic Objective 4.1: Promote and create 9 800 decent work opportunities through the provision of accred- ited training and implementation of community development initiatives.
Deviation Planned Preliminary Actual from planned Target Achievement Performance Indicators Achievement target to Ac- Comment on Deviations 2012/2013 tual Output for 2013/2014 2013/2014 2013/2014 Number of EPWP work 3 130 work opportunities opportunities created by the created from 57 projects with 3 890 3 800 3 130 -17.63% Provincial Department of Public an expenditure of R410 708 Works. 000. Number of Full Time Equivalent Other programmes were long (FTE) jobs created by the 1 143 250 1 357 442.8% term hence overachievement Department of Public Works. in the realisation of FTEs. The target was achieved on following initiatives in re- lation to Cemetery Main- Number of community 5 4 4 0% tenance, Food for Waste, development initiatives. Community Halls Main- tenance and Township Revitalisation.
Reason for all Deviation Strategy to overcome areas of over / under performance Beneficiaries left the projects when they get permanent Ensure proper programme management (inclusive of “hidden costs” for employment elsewhere. protective clothing) and compliance of stipend payment.
4.3.2.2. Innovation and Empowerment Sub-Programme
4.3.2.2.1. Purpose
The sub-programme is responsible to develop contractor empowerment, development of new programmes and training.
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
Deviation Planned Actual Actual from planned Target Achievement Performance Indicator Achievement target to Actual Comment on Deviations 2012/2013 Achievement 2013/2014 2013/2014 for 2013/2014
Contractor Development Number of Programme and NYS Beneficiary programme are continuing 3 - - 0% Empowerment from the 2012/2013 financial Interventions. year. There was no budget to commence with new initiatives.
4.3.2.3. Coordination and Compliance Monitoring Sub-Programme
4.3.2.3.1 Purpose
This sub-programme includes the management and coordination of expenditure on the Expanded Public Works Programme.
58 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Strategic Objective 4.3: Coordinate all stakeholders towards the successful implementation of the EPWP within the Province by creating 150 000 work opportunities by 2016
Deviation from Planned Preliminary Actual planned Performance Target Achievement Achievement target to Actual Comment on Deviations Indicator 2012/2013 Achievement for 2013/2014 2013/2014 2013/2014
Number of work op- 58 872 48 124 24 297 -49.5% Work opportunities created by portunities created Public Bodies: by the province. • Implementing Provincial Number of Full 11 246 22 893 8 501 -62.9% Departments= 15 466 Time Equivalents (FTE) created by • Municipalities = 8 831 the province. Total 1 April 2013 – March 2014 Number of work 1 268 962 64 -93.3% = 24 297 opportunities cre- ated for people with The Department is responsible disabilities by the to coordinate implementation of province (2%). EPWP projects from the public Number of work 27 527 19 249 11 563 -39.9% bodies namely, implementing opportunities cre- Provincial Departments and 24 ated for youth by municipalities, thus it is difficult the province (40%). to hold the public bodies ac- countable. Provincial Performance Indicator
Number of work op- 33 557 26 470 13 200 -50.1% portunities created for women by the province (55%).
A prosperous Free State through facilitation of sustainable infrastructure 59 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Reason for all Deviation Strategy to overcome areas of over/under performance
• 2014/2015 Project lists endorsed by EXCO to be implemented by Departments and Municipalities.
• Chief Financial Officers to ensure compliance of report- ing to National Department of Public Works, Provincial Department of Public Works, Provincial and National Trea- The Department does not have direct control over the reporting sury monthly on in-year monitoring (IYM). by public bodies because they capture their information directly on the MIS and Integrated Reporting System and submit directly • Establishing of Data Management Centre. to National Public Works. • Alignment of tender documents to Labour Intensive Construction Methods.
• The above indicators have been discussed at the National Department of Public Works and will no longer be assessed in the new Annual Performance Plan (APP).
60 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Linking performance with budgets
The table below provide a summary of the actual expenditure in comparison to the adjusted appropriation for 2013/2014 and 2012/2013.
Sub-programme expenditure
2012/2013 2013/2014
Programme 3: Ex- Actual Actual Final (Over)/Under Final (Over)/Under panded Public Works Appropriation Expenditure Appropriation Expenditure Programme Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000
Programme Support 13 672 12 833 839 13 043 12 954 89
Community - - - 151 947 151 886 61 Development
Innovation and 22 174 19 945 2 229 33 622 33 603 19 Empowerment
EPWP Co-ordination and Compliance 123 272 118 874 4 398 - - - Monitoring
Total 159 118 151 652 7 466 198 443 198 443 169 000
Description on how expenditure contributed to achievement of outputs.
Programme 3 Expanded Public Works Programme under spend with R0.169 million (0.1%) as a result of outstanding invoice for finance leases.
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5. TRANSFER PAYMENTS
5.1. Transfer payments to municipalities for payments of rates and taxes. The table below reflects the transfer payments made for the period 1 April 2013 to 31 March 2014 in compliance with Section 38 (1) (j) of the PFMA:
Amount trans- Purpose for which ferred Name of transferee Type of organisation the funds were to be used (R’000)
Dihlabeng Municipality Rates & Taxes 7 823
Kopanong Municipality Rates & Taxes 3 424
Letsemeng Municipality Rates & Taxes 1 409
Mafube Municipality Rates & Taxes 7 073
Maluti-A-Phofung Municipality Rates & Taxes 129 915
Mangaung Municipality Rates & Taxes 51 399
Mantsopa Municipality Rates & Taxes 413
Masilonyana Municipality Rates & Taxes 2 424
Matjhabeng Municipality Rates & Taxes 35 789
Metsimaholo Municipality Rates & Taxes 6 299
Mohokare Municipality Rates & Taxes 11
Moqhaka Municipality Rates & Taxes 6 458
Nala Municipality Rates & Taxes 516
Naledi Municipality Rates & Taxes 596
Ngwathe Municipality Rates & Taxes 4 592
Nketoana Municipality Rates & Taxes 6 918
Phumelela Municipality Rates & Taxes 1 022
Setsoto Municipality Rates & Taxes 12 284
Tokologo Municipality Rates & Taxes 236
Tswelopele Municipality Rates & Taxes 1 324
SUB-TOTAL 279 925
Sector Education Training Construction SETA Training 408 Authority
Sector Education Training Public Sector SETA Training 662 Authority
TOTAL 280 995
62 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
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 Department of Public Works transferred
For the utilisation of infrastructure projects and cemetery maintenance projects in line with EPWP Principles. Purpose of the grant
The EPWP Integrated Grant to Provinces for infrastructure of R7.102 million will Expected outputs of the grant be utilized for infrastructure projects in line with EPWP principles.
Creation of decent jobs and increase in the Gross Domestic Product (GDP) of Actual outputs achieved respective towns.
Amount per amended Division of Revenue R7.102 million. Act (DORA)
Amount transferred (R’000) R7.102 million
Reasons if amount as per DORA not None. transferred
Amount spent by the Department (R’000) R7.102 million
Reasons if amount as per Division of Decentralisation of Community Liaison Offices to the districts for close monitor- Revenue Act (DORA) not transferred ing by Sector Coordinators.
Amount spent by the Department (R’000) None.
6.2. Earmarked funds paid
6.2.1. Earmarked funds: Infrastructure Enhancement Allocation
Department to whom the grant has been transferred Department of Public Works
Purpose of the grant Infrastructure Enhancement Allocation.
For the promotion of the physical components of interrelated Expected outputs of the grant systems providing commodities and services essential to en- able, sustain, or enhance societal living conditions.
Creation of decent jobs, Increase in the Economy Gross Do- Actual outputs achieved mestic Product (GDP) and sustainability.
Amount per amended Division of Revenue Act (DORA) R187.151 million.
Amount transferred (R’000) R187.151 million.
Reasons if amount as per Division of Revenue Act (DORA) None. not transferred
Amount spent by the Department (R’000) R186.856 million
Reasons for the funds unspent by the entity Delay in invoices from suppliers.
Quality progress reports to Provincial Treasury and various Monitoring mechanism by the transferring Department stake holders
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6.2.2. Earmarked funds: Property Rates and Taxes Allocation
Municipality to whom the grant has been transferred Department of Public Works
The allocation will be utilised for the payment of Property Rates Purpose of the Allocation & Taxes Enhancement Allocation.
Ensure that rates and taxes are paid on all government proper- Expected outputs of the grant ties.
The total budget was spent on rates and taxes was paid on all Actual outputs achieved properties known to the Department.
Amount per amended Division of Revenue Act (DORA) R279.926 million.
Amount transferred (R’000) R279.926 million.
Reasons if amount as per Division of Revenue Act (DORA) Not Applicable. not transferred
Amount spent by the Department (R’000) The total expenditure for 2013/2014 was R279.925 million.
Reasons for the funds unspent Not Applicable.
Municipalities are requested to invoice the Department on time Monitoring mechanism by the transferring Department to ensure timeous transfer of funds.
6.2.3. Earmarked funds: Revenue Enhancement Allocation
Department to whom the grant has been transferred Department of Public Works
An initial amount of R6.607 million was received for Revenue Purpose of the grant Enhancement Allocation
To improve the status of immovable assets. Therefore the Expected outputs of the grant Department will be able to charge market related rent.
The project started and will be completed in the 2014/2015 Actual outputs achieved financial year.
Amount per amended Division of Revenue Act (DORA) R5.407 million.
Amount transferred (R’000) R5.407 million.
Reasons if amount as per Division of Revenue Act (DORA) The initial allocation could not be used as the scope of work not transferred proved to be bigger than anticipated.
Amount spent by the Department (R’000) R2 688 million.
The under expenditure is due to the late award of an infrastruc- Reasons for the funds unspent ture project with a duration of 12 months.
Monitoring mechanism by the transferring Department Quarterly progress reports to Provincial Treasury.
64 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
6.3. Earmarked funds received The table below details the conditional grant received during for the period 1 April 2013 to 31 March 2014.
6.3.1. Conditional Grant: EPWP Integrated Grant to Provinces
Department who transferred the grant Provincial Treasury
For the utilisation of infrastructure projects and cemetery main- tenance projects in line with EPWP Principles. Purpose of the grant
Expected outputs of the grant Work opportunities created through EPWP initiatives.
3 130 work opportunities were created by the Department of Actual outputs achieved Public Works in 2013/2014.
Amount per amended Division of Revenue Act (DORA) R7.102 million.
Amount received (R’000) R7.102 million.
Reasons if amount as per Division of Revenue Act (DORA) Not applicable. was not received
Amount spent by the Department (R’000) R7.102 million.
Reasons for the funds unspent by the entity Not applicable.
Reasons for deviations on performance No deviations.
Decentralisation of Community Liaison Offices to the districts Measures taken to improve performance for close monitoring and mentoring by Sector Coordinators.
The Department of Public Works reports to Provincial Treasury Monitoring mechanism by the receiving Department on the expenditure of the grant.
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7. CAPITAL INVESTMENT
Progress on implementing the capital, investment and asset management Plan
7.1. Infrastructure projects completed in 2013/2014
The Department of Public Works completed the following 38 projects in 2013/2014 financial year as implementing agent for client departments:
Departments Projects in Construction Completed
• Harrismith Testing Station upgrading
• Township Revitalisation Projects: upgrading and paving of 12.2km township streets in 14 towns namely, Arlington, Virginia, Odendaalsrus, Vredefort, Parys, Marabastad, Jagersfontein, Cornelia, Thaba Nchu, Pe- trusburg, Allanridge, Henneman. Batho and Heilbron. Department of Public Maintenance projects completed include: Works = 19. • Lengau Testing Station.
• Thaba Nchu Public Works Offices Upgrade.
• Welkom Kopano Complex, Works Offices.
• Welkom SASSA Offices.
The completion of 13 construction projects includes:
Five new/additional facilities: 19 classrooms at three schools Three new schools at • Wesselsbron: Iphateleng Phase namely, II • Parys: Sindekile Primary • Memel: Esizibeni Second- School, • Thaba Nchu: Boitumelong Spe- ary School 7 classrooms cial School • Parys: Ntshwephepha • Harrismith Vulindlela 6 Department of Educa- Primary School and • Ficksburg Meqheleng Second- New Classrooms and tion = 13 ary School: New Admin Block, • Viljoenskroon: Mahlaba- • Warden Primary School: 6 theng Primary School. • Excelsior: Mahlatswetsa Prima- Classrooms ry School new Admin block and
• Bultfontein: Ntuthuzelo Primary School Phase III.
• One new ablution block at Brandfort Monamodi Primary School.
• One new Girls hostel at Christiaan De Wet School at Dewetsdorp
• Construction of Mantsopa new hospital at Ladybrand. Health = 2 • Kroonstad: Boitumelo Contract 10 upgrading of New emergency section, family medicine & training centre.
Department of Sport, Arts Culture and Rec- • Construction of Jacobsdal Ratanang New Library and Philippolis renovations of museum completed. reation = 2
Department of Agri- • Bloemfontein: Glen Agricultural College upgrading of existing accommodation. Phase III (Admin block culture = 1 & cheese factory).
Department of Eco- nomic Development, • Bloemfontein Soetdoring: Nature Reserve New completion of new electricity cable lines. Tourism & Environ- mental Affairs = 1
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Progress in comparison to what was planned at the beginning of the 2013/2014 and reasons for material variances
Department Projects Description – Multi-Year Projects Completion Date Reasons for Material Variances
Trompsburg Hospital: New District Hospital, 72 Increase in scope for security instal- Health - 3 beds, Administration, Male - and Female Wards September 2013 lation Maternity, Staff Housing.
Bloemfontein: Pelonomi Perimeter fencing & 01 Apr 2013 Contractor abandoned site loading zone.
Bloemfontein: Functional changes to Intensive Contractor non-performance. New 06 Nov 2013 Care Unit (ICU), Block F1, and Lodger Mothers. contractor on-site
Sasolburg: Kahobotjha Sakubusha Phase 2: 23 Jun 2013 Admin Block.
Sasolburg: Kopanelang Thuto Phase 2: Admin building, Media Centre, Activity Centre, School 01 Jun 2013 Hall, book store and feeding scheme kitchen. Contract terminated due to contrac- Education - 8 Cornelia: Ntswanatsatsi Primary School new admin tor non-performance. New contrac- 30 Sep 2013 block. tors on site
Kroonstad: New School at Johan Slabbert 20 Nov 2013 Special School.
Sasolburg: Fakkel Special School: General 30 Jun 2013 Renovations and additional facilities.
Thaba Nchu: Bartimea Special School additional 14 May 2014 facilities.
Ficksburg Marallaneng Secondary School: New 18 Oct 2013 Hall.
Qwa-Qwa: Matsikeng Primary School (Unaccept- 07 Sep 2013 able structures).
Department Projects Description – Multi-Year Projects Completion Date Reasons for Material Variances
Sport, Arts, Culture Bloemfontein: Restaurant for Free State and Recreation - 2 Sports Science Institute (FSSSI) renovations. 18 Oct 2013 Inadequate funding Odendaalsrus: Sipho Mmutsi upgrade. 13 Sep 2013
Department of Eco- nomic Development, Thaba Nchu: Maria Moroka Construction Contractor experienced cash flow Tourism & Environ- of 5 chalets alterations to main building and 18 Aug 2013 problems mental Affairs infrastructure.
7.2. Infrastructure projects in progress
Infrastructure projects that are currently in progress for the Department of Public Works include:
Projects Description Expected Completion Date
Construction Projects
Bloemfontein Lebohang Building Upgrade: Foyers, Bathroom and Roofs August 2014
Bloemfontein: Sand du Plessis Lifts April 2014
Botshabelo: Community Hall March 2015
7.3. Plans to close down or down-grade any current facilities
The Department does not have any plans to close down or down grade any facilities
A prosperous Free State through facilitation of sustainable infrastructure 67 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
7.4. Progress made on the maintenance of infrastructure
The funds available for unplanned day to day maintenance of Provincial buildings are limited as the budget increased with less than inflation.
A general maintenance backlog across all categories has developed and grown because of insufficient budgets in previous years. Efforts to reverse this situation can only be made possible with sufficient maintenance budget allocation, which is still a challenge to date.
The information below provides progress made with regards to completion of maintenance projects in 2013/2014 financial year
• Welkom: Kopano Complex Works Offices: Phase II
• Bloemfontein: Lengau Testing Station
• Thaba Nchu: Public Works Offices
• Welkom SASSA Offices.
7.5. Details as to how asset holdings have changed over the period under review,
Immovable Asset Register
The status of the immovable asset register as at 01 April 2013 was standing at 3 649 properties. During the process of physi- cal verification of all properties and reconciliation with the Deeds register, a number of 109 properties were identified not to be registered in the name of the Free State Provincial Government and these were removed from the Department’s register.
As at 31 March 2014, the Immovable Asset Register consisted of 3 649 properties registered in the name of the Free State Provincial Government. These include Department of Human Settlement properties (including RDP houses) amounting to 2 519 and these are in the process of being transferred to the Department of Human Settlement.
Disposals
A portfolio of Provincial properties is being considered for disposal to accelerate the release of land for, amongst other, human settlements. The main reasons for disposal are cited as unsuitable in terms of accessibility and poor condition of buildings and related engineering equipment, where the refurbishment cost is estimated to be far higher than the construction of a new pur- pose built facility; wrong geographical location in relation to the current health service platform and historical buildings which do not fit the functional requirement of a modern and efficient health facility.
The Custodian has also identified all superfluous properties in the province for disposal purposes through sale and concluding of long term leases to interested parties of the public. These were submitted to the Provincial Executive Council for approval and approval was subsequently granted in 2013 for disposal of vacant land and sites, residential properties, vacant schools, resorts and buildings.
Number of Properties for disposal Properties Properties
Vacant and unused resorts 1 • Jim Fouché in Orangeville
• Filling Station in Qwa-Qwa Vacant buildings 2 • Pietersdal Building in Clarens
• Saaihoek Secondary School Vacant and unused schools 2 • Seroali Secondary School in Qwa-Qwa
Residential properties 71 • Residential Properties in various towns
Charlesville residential properties 60 • Residential Properties at Charlesville
Vacant sites 78 • Vacant sites
Total 214
68 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
7.6. Measures taken to ensure that the department’s asset register remained up-to-date during the period under review
The Department performed physical verifications on all properties registered in the name of the Free State Provincial Gov- ernment. 3 012 properties have been verified in order to complete the minimum fields of the immovable asset register i.e. property description, physical address, ERF number, condition, etc.
The Department also identified and gathered information on 2519 human settlement properties (including RDP houses) which are on the Department of Public Works’ asset register. A process has been embarked on to transfer these properties to the Department of Human Settlement to facilitate the final transfer of the same properties to the applicable beneficiaries.
As at 31 March 2014 the number of properties recorded in the Immovable Asset Register amounted to 3 649.
The Department also intensified its engagements with the Provincial Treasury and National Public Works for intervention where assistance and guidance was required.
The Department developed a fair value model to guide the valuation of properties on the asset register.
Policy guidelines were also developed and approved for the transfer of improvement work performed by User Departments on properties in compliance to Section 42 of the Public Finance Management Act (PFMA).
7.7. The current state of the department’s capital assets, for example what percentage is in good, fair or bad condition
The Government Immovable Asset Management Act (GIAMA) requires all user departments to annually rate the condition of the buildings they use. All Provincial buildings have to be assessed (condition assessment), in detail on a five year cycle. The first cycle commenced on 1 April 2010 and ends on 31 March 2015.
The Department has performed perception condition assessment on 1 795 properties registered in the name of the Free State Provincial Government (excluding vacant land and human settlement properties) and the findings were as follows:
Condition of State – owned properties Number of Properties Confirmed
Good / Excellent 122
Average / Fair 1 522
Poor / very poor 151
Priority and budget allocation has been given to these prestige properties for maintenance in the 2014/2015 financial year in order to improve their conditions.
7.8. Major maintenance projects that have been undertaken during the period under review
• Bloemfontein: Psychiatric Complex Houses.
• Heilbron: Phiritona and Sandersville Community Halls.
• Welkom: Kopano Complex Works Offices: Phase 2.
• Welkom: South African Social Security Agency (SASSA) Offices.
• Bloemfontein: Lengau Testing Station.
• Thaba Nchu: Public Works Offices.
• Thaba Nchu: Boiketlo Old Age Home.
• Bloemfontein: Provincial Government Building (PGB) - Revolving Restaurant.
• Bloemfontein: Lebohang Building Carports.
7.9. Progress made in addressing the maintenance backlog during the period under review:
The Department developed a maintenance strategy on how to address the maintenance backlog. Perception condition as- sessments have been conducted on
1 795 Free State owned properties. This exercise assisted the Department to categorise conditions of properties in terms of
A prosperous Free State through facilitation of sustainable infrastructure 69 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Good (122), fair (1 522) and poor/ very poor (151).
The Department plans to perform technical condition assessments on properties that have been identified to be in a poor and very poor condition in order to determine the maintenance and disposal requirements. This will inform the amount of budget required to maintain these properties in order to put them in a good state.
During the year, technical condition assessments were performed on 10 prestige properties in order to determine the mainte- nance and disposal requirements. Budget has been allocated in 2014/2015 financial year to perform the maintenance require- ments identified in order to improve the condition of these properties.
7.10. Maintenance backlog status
The maintenance backlog identified by client departments in their User Asset Management Plans (U-AMPs) was equated to R655 809 million. Limited maintenance budget allocation results in increased maintenance backlog since properties continue to deteriorate due to lack of regular maintenance performed in terms of property life-cycle plan.
7.11. Maintenance progress compared to the maintenance plan
No, large backlogs in maintenance of buildings continue due to a shortfall in the condition assessment budget.
7.12. Reason for slow progress
The budget to perform technical condition assessments on all properties registered in the name of the Free State Provincial Government is not enough.
7.13. The following measures were taken by the Department of Public Works to keep on track in the 2013/2014 financial year.
The funds available for unplanned day to day maintenance of Provincial buildings are limited as the budget increased with less than inflation. For the current year, only Revolving Restaurant (PGB) and Psychiatric Complex houses were funded through the Revenue Enhancement Allocation. The Department was left with no option, but to fund the completion of the following properties with its own maintenance budget meant for unplanned day to day maintenance. These properties are: Bethlehem houses, Welkom SASSA office and Roth Avenue (All of these projects were previously funded through the Revenue Enhance- ment Allocation).
70 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
The table below sets out the 2013/2014 financial year maintenance expenditure compared to maintenance expenditure for the 2012/2013 financial year.
2012/2013 2013/2014
Final Appro- (Over)/Under Final Appropria- (Over)/Under Actual Actual Infrastructure priation Expenditure tion Expenditure projects Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000
New and replacement 34 419 28 295 -6 124 64 188 63 942 246 assets
Existing 141 527 130 984 10 543 176 354 173 348 3 006 infrastructure assets
Upgrades and additions 134 543 121 799 12 744 169 174 166 176 2 998
Rehabilitation, renovations and ------refurbishments
Maintenance and 6 984 9 185 -2 201 7 180 7 172 8 repairs
Infrastructure 175 946 159 279 16 667 240 542 237 290 3 252 Transfer
Capital 168 962 150 094 18 868 233 362 230 118 3 244
Current 6 984 9 185 -2 201 7 180 7 172 8
Total 351 892 318 558 21 086 481 084 474 580 6 504
A prosperous Free State through facilitation of sustainable infrastructure 71 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
ANNUAL REPORT 2013/14 Department of Public works Annual Report A prosperous Free State through facilitation of sustainable infrastructure
72 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
PART C: Governance
A prosperous Free State through facilitation of sustainable infrastructure 73 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
CONTENTS
Introduction 75
Risk Management 75
Fraud and Corruption 94
Minimising Conflict of Interest 94
Code of Conduct 94
Health Safety and Environmental issues 95
Portfolio Committees 95
Prior Modifications to Audit Reports 99
Internal Control Unit 100
Internal Audit and Audit Committees 100
Audit Committee Report 102
74 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
1. INTRODUCTION
The Department is committed to maintain the highest governance standards which are fundamental to the management of public finances and resources. Good governance is essentially about effective leadership. In this regard, the Department has the following good governance structures in place to effectively, efficiently and economically utilise resources. Currently, the Department is in the process of a fully capacitating its Internal Audit Directorate, has fully functional Risk Management and Audit Committee, a working performance management system, financial, personnel as well as procurement delegations.
The Departmental Risk Management Committee has been established to enhance the support function as described in the Departmental Risk Charter. In carrying out this mandate, the Committee is authorised to have full, free and unrestricted access to all Departmental activities and staff. In addition, the Committee has the requisite authority to request management to account for their delegated responsibilities in respect of risk management. The Committee Reports are tabled for discussion at the quarterly Audit Committee meetings on work done and actions taken by management to address identified areas for improvement.
Risk Management awareness campaigns have been conducted amongst Senior and Middle Managers including operational employees in all business areas to ensure that risk management activities are fully integrated into strategic planning, daily management of programme activities, monitoring and reporting processes. Control measures to mitigate the impact of risks on strategic objectives were monitored on a quarterly basis.
2. RISK MANAGEMENT
It is the Departmental policy to ensure that informed decisions are made with regards to service delivery activities, by appropriately considering both risks and opportunities:
• The Public Finance Management Act Section 38 (1) (a) (i) and section 51 (1) (a) (i) state that the Accounting Officer of the Department must ensure that the Department has and maintains: Effective, efficient and transparent systems of financial, risk management and internal control. • Treasury Regulation, 2005 Part 3 (3.2.1) stipulates that the Accounting Officer must ensure that the risk assessment is conducted regularly to identify emerging risks of the Department. • The Department is committed to effective risk management and treatment thereof in order to achieve its objectives. It is the responsibility of all officials to manage these risks. • Effective risk management is imperative for the Department in order to fulfil its vision, mission as well as to deliver on service delivery expectations. To this effect, all budget programmes/sub programmes work together in a consistent and integrated manner with the overall objective of reducing risk to acceptable and manageable levels. • The Departmental Risk Management Strategy, an essential element of strategic planning, describes the processes that the Department will put in place to identify, assess, manage, review and report on risks. This strategy was compiled according to Public Sector Risk Management Framework as informed by the Public Finance Management Act 1 of 1999 (As amended) and Treasury Regulations as amended. The Annual Performance Plan which includes the Departmental strategic objectives and risk assessment provides the framework for the management of risks that may hamper the achievement of these strategic objectives. • The Department conducts risk assessments for all budget programmes and sub-programmes on an annual basis in conjunction with the annual performance planning processes on quarterly basis with the production of the first, second and final Annual Performance Plan. • The Department’s progress with regards to the implementation of Risk Management is improving. This is observed with swift responses by management to risk management reports to address the concerns within their respective business areas. Some of the items become standing items in the Risk Management Committee until they are resolved. The following are challenges in implementing risk management:
A prosperous Free State through facilitation of sustainable infrastructure 75 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Finding Root Cause Impact Recommendations
1. Risk is Risk management is not a No continuity in reporting Programme Managers must assign an official perceived as core function for officials. impacts on quality of to champion risk management. an add-on Reports are compiled by reports submitted. function by different officials. This responsibility should be included as a Programme Key Responsibility Area in the Performance Managers. Agreement of such an official.
No justice made in treating The Risk Management Unit must be invited to key risks lead to a reactive directorates’ monthly meetings to: rather than proactive • Educate officials on Risk Management. approach. • Assist in identifying emerging risks and providing direction in the discussion of Controls cannot be risk management. adequately assessed to evaluate accuracy.
2. No transversal Oversight. Focus was Directorates perceived Conduct transversal risk assessments during risks for the on the risk for specific some risks residing in other in the first semester of 2014/15. Department. directorates. units, while implementation is actually with them, Utilise Annual Procurement Plan as guide. e.g. budget over/under- spending.
3. Incidents of The risk is only associated The true picture with regard Transversal risks assessment must be done in fraud and with finance and SCM. to fraud and corruption is the first quarter of 2014/2015. corruption. Some fraud and corruption not reflected. activities are perceived small and are not reported.
4. Increase in Breach of security risks has Increase in incidents of theft Increase inspections at security operations. security risks. increased. in areas the Department Performance of security guard service points Appointment of security personnel for funded officers. resulting in reputational posts. Increase in vacancy rate. risks.
5. Costs of Cost of controls is not Recurring risks that could The cost of controlling risks in a Directorate controlling always known. be resolved occurs. must be understood and applicable solutions risks implemented. 6. Under/over • Interpretation of budget Affects planning and Encourage and practise integrated performance v/s performance monitoring. planning, communication and monitoring of by directorates targets. performance. • Working in silos while Negative findings by ones’ Directorate oversight authorities. performance impact on other directorates. Service protests by • Changing priorities. communities. • Reprioritising of budget.
7. Delayed- Funds used for other Reputation risks for the Review the process of consulting for client payment of priorities. Department of Public departments and apply the procedures that contractors Works as contractors will be helpful to the Department, contractors by client accuse this Department. and client departments. departments continue.
76 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: HRM has a well-functioning registry that is meticulously controlled by a suitably qualified supervisor and run in accordance with archiving principles. Furthermore Persal contains all relevant data in respect of each and every employee which is updated on an annual basis. Comments: policies, business All business units’ process and standard manuals implementation plans must be up loaded on the Intranet. Risk Mitigate Response Date 2013 Target Target 30 Sep Measures Corrective Develop policies, business processes and standard operating procedure manuals and implementation plans for each programme. Utilisation of electronic hard-drives Codified information Handover reports. 25 Rating 5 RL 5 RI Key Existing Controls Standard frameworks from National Department used. Retention strategy Training programmes. 25 Rating 5 IL II 5 Lack of proper records and document management system. Information/ standard operating procedures not codified. No proper hand over process. Lack of policies, business processes, procedural manuals, implementation plans for programmes. Risk Description Loss of institutional memory Root Cause: • • • • 1 Ref Human Resources Management Progress on the 2013/2014 Risk Assessment Plan Progress on the 2013/2014 Risk Strategic Objective 1.1: Create and sustain a working environment through recruiting 200 people to reduce the vacancy rate by 2016 - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
A prosperous Free State through facilitation of sustainable infrastructure 77 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: 50 new part-time bursaries were 2014. January commence to approved Another 37 applications are currently being considered for approval. 24 technical professionals participating in mentorship programs at private companies. 15 interns have been placed at various private companies as Student is paying monthly Interns. PSETA stipends Comments: The Department programmes are adequate regarding training and development to acquire requisite skills. Risk Mitigate Response Date 2014 Target Target 31 Mar Measures Corrective Develop skills through bursary programmes, register professionals and recognition of prior learning (artisans). Embark on an internship programme. 12 Rating 3 RL 4 RI Key Existing Controls Bursaries Interact Recruitment and retention plans in place. are offered and internally externally for core business. with other departments to attract technical and professional staff. 20 Rating 4 IL 5 II Risk Description Limited skilled staff in core Limited skilled staff business. Root Cause Limited supply of suitable skilled, experienced and registered professionals. 2 Ref Human Resources Management IL - Inherent likelihood, II - Inherent Impact, RL - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
78 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: The target was that not more than 10 officials should be discharged due to ill health; only 1 official was discharged. Comments: Based on the progress provided above, the Department is performing well as this is well within the 0.5% benchmark. The utilisation of sick leave should also be assessed as to increase or reduce in comparison with the previous financial year. Risk Mitigate Response 16 Risk Final Rating Residual Date Target Target 31 Mar 2014 Measures Corrective Intensify health awareness campaigns. 16 Rating 4 RL 4 RI Controls Existing Key Wellness Wellness and HIV/Aids Programmes in place. 25 Rating 5 IL 5 II Risk Description Condition on human capital and impact of Aids HIV & Root Cause Stress related. human behavior. 3 Ref Information Communication Technology Special Programmes/Employee Wellness Special Programmes/Employee Wellness IL - Inherent likelihood, II - Inherent Impact, RL - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
A prosperous Free State through facilitation of sustainable infrastructure 79 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: Delays in the procurement of a service provider to implement SharePoint. Responses to the RFQ were higher than estimated, therefore additional funding is required. to Held meeting with SITA discuss setting up a Disaster Recovery Site for transversal use. All required CGICTPF Phase 1 policies have been developed and approved by the Head of Department. Security The post for ICT The Specialist was advertised. been has Executive Audit Chief nominated for the post of ICT Governance Champion. Comments: The Department has achieved phased 1 as required by the Corporate Governance Of Information and Communication Policy Framework. Technology The Disaster recovery site is not yet in place Risk Mitigate Response 25 Risk Final Rating Residual Date Target Target 31 Mar 2014 Measures Corrective Create a central backup system for all Departmental documents. Establish remote Disaster Recovery site. Develop Business Continuity Plan. 25 Rating 5 RL 5 RI Controls Existing Key Disaster recovery plan and other IT documents in place Routine backup 25 Rating 5 IL 5 II Risk Description Loss of information Root Cause System failure. Deliberate destruction (Sabotage). No remote disaster recovery site. equipment/ Old IT software 4 Ref IL - Inherent likelihood, II - Inherent Impact, RL - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
80 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: All required CGICTPF Phase 1 policies have been developed and approved by the Head of Department. Security The post for ICT Specialist was advertised. Comments: The Department has achieved phased 1 as required by the Corporate Governance Of Information And Technology Communication Policy Framework. No remote disaster recovery site Progress: Only six cases of fraud relating to Subsistence and allowance occurred Travelling in 2013/2014. Four officials’ services were ended and two were suspended. Comments: The risk is only associated with Finance and Supply Chain Management. Some fraud and corruption acts are perceived small and does not require The result is that reporting. the true picture with regard to fraud and corruption is not reflected. Risk Mitigate Mitigate Response 20 16 Risk Final Rating Residual Date 2013 Target Target 30 Sept. 31 Mar 2014 Measures Corrective Develop and implement approved Department IT Governance Strategy Conduct employee perception survey on fraud related matters. Functional compliance unit in place at Supply Chain Management. 20 16 Rating 4 4 RL 5 4 RI Controls Existing Key Information Implementation of action plan on Auditor General Management Letter. session on Code of Conduct to all employees. Utilisation of Provincial Treasury Reporting Models. Fraud awareness campaigns. 25 20 Rating 5 5 IL 5 4 II
Risk Description Occurrence of fraud and corruption. Root cause: Fraudulent Non-compliance to governance e.g. ICT Security. IT Root Cause Lack of capacity and accountability. behaviour. Fronting. 6 5 Ref Finance IL - Inherent likelihood, II - Inherent Impact, RL - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
A prosperous Free State through facilitation of sustainable infrastructure 81 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: There were no new cases of fruitless expenditures. Comments: The performance Department’s in this regard is adequate. Progress: The process to condone the irregular expenditure was in progress and is Treasury approval by requested. Comments: There were new cases of irregular expenditure in the current financial The training on the year. Supply Chain Management process on this must be performed in 2014/2015 financial year to all relevant officials including those that utilises petty cash. Risk Response Mitigate Mitigate 15 15 Risk Final Rating Residual Date Target Target Quarterly Quarterly Measures Corrective Adherence to Adherence policies and delegations. Functional compliance unit in place at Supply Chain Management In-service- training of Chief-Users and Cost Centre Managers. 15 15 Rating 5 5 RL 3 3 RI Controls Existing Key Monthly supplier payment report. Order received before the service is rendered. Chief-Users approve invoices Condonement by Provincial Treasury. 20 20 Rating 5 5 IL 4 II 4 Risk Description Fruitless and wasteful expenditure Root Cause: Interest paid due to delays in paying suppliers after 30 days. Duplicate payments. Inappropriate Supply Chain Management processes. Irregular expenditure Root Cause: SCM regulations are not always adhered to. 7.1 7.2 Ref Supply Chain Management IL - Inherent likelihood, II - Inherent Impact, RL - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
82 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Construction work Tripartite Apprenticeship Agreements Cession of Memorandums Lease Agreements Agreements Official Parking
Progress: Legal Services keep all original contacts. All 2257contracts went through Legal Services Directorate. It was for • • • • • The tracking system is been developed and will be rolled-out for implementation Comments: It is encouraging to find that the Department has reduced the risk The report for new contracts. does not provide the progress with regard to the old contracts Therefore that are still running. the risk remains high. Risk Share Response 25 Risk Final Rating Residual Date Target Target 31 Mar 2014 Measures Corrective Introduce contract management system. 25 Rating RL 5 RI 5 Controls Existing Key Legal Services provides legal opinion on requests. All contracts must be submitted to Legal Services and be signed-off by HOD 25 Rating IL 5 II 5 Risk Description Poor management of contracts Root Cause: No centralized unit to manage contracts 8 Ref Legal Services IL - Inherent likelihood, II - Inherent Impact, RL - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
A prosperous Free State through facilitation of sustainable infrastructure 83 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
All U-AMPs for 2014/15 are in place. for 2014/15 was finalised and The C-AMP Treasury. submitted to Provincial The condition assessment annual target of 10 was achieved.
• • • Comments: The maintenance backlog remains a high risk and only a draft maintenance plan is in place. asset The draft is linked to the Department’s register (which is required for costing and availing of budget). Progress: The following is progress made: Share 25 31 Mar 2014 Introduce and implement Develop Custodian Asset Management Plan which incorporate building life cycle costing plan (maintenance plan) 25 5 5 Conduct condition assessment. Facilitate development of U-AMPs. 25 5 5 3.2: Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset and leased immovable assets government owned effectively 3.2: Manage provincial in terms of Government Immovable Dependent on client Lack of condition Late submission of departments assessments UAMP’s Absence of C-AMP Absence of C-AMP to inform the development of costed maintenance, disposal, office accommodation and acquisition plans. Root Cause Ownership and transfer of erven. 9 Planning Management Act prescripts Strategic Objective - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
84 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: IDMS framework has been approved by EXCO in 2013. to be finalized in due SLA course. Comments: provided was progress same The The tedious through out. processes in construction resulted in this risk. Risk Response Share 20 Risk Final Rating Residual Date Target Target 30 Sep 2013 Measures Corrective Assist client- departments to develop Infrastructure Project Management Plans. Service Level Agreements signed by client departments. 20 Rating 4 RL 5 RI Key Existing Controls Appointment of Construction Project Managers (consultants) to improve planning, monitoring and evaluation Project Management Unit to provide technical assistance to improve project planning & design with client departments. 25 Rating 5 IL II 5 2.1: Facilitate and promote sustainable infrastructure by completing all construction and maintenance projects within contract time and maintenance projects within and construction all completing infrastructure by sustainable promote and 2.1: Facilitate Risk Description Late execution of projects. Root Cause Late submission of Infrastructure Project Management Plans Alteration of project scope by client Dependency on client departments. 10 Ref Works Infrastructure Design, Construction and Maintenance Works budget in accordance with built sector norms and standards. Strategic Objective - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
A prosperous Free State through facilitation of sustainable infrastructure 85 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: Bilateral meeting with client departments are being held to track progress. Quarterly feedbacks on progress Treasury. to Provincial Comments: Poor performance by contractors and non-payment of contractors are the main root causes. Progress: Accounting officers required to approve submissions on variation as and when they arise. Comments: The risk is inherent to the Department but is also aggravated by poor performance of contractors and non-payment of contractors are the main root causes. Risk Response Mitigate/ share Mitigate 20 20 Risk Final Rating Residual Date Target Target 31 Mar 2014 31 Mar 2014 Measures Corrective Improve project monitoring. Involve Provincial Treasury. Approval of variation orders by Accounting Officers Rating 20 15 RL 5 5 RI 4 4 Key Existing Controls Appointment of Construction Project Managers to improve planning, monitoring and evaluation. Bi-weekly technical site meetings. Monthly bilateral meetings are held with client departments. Haylett formula used to mitigate inflation. Rating 25 20 IL 5 5 II 5 4 Risk Description Late completion of projects. Root Cause Late contractors’ payments by client departments. Dependency on client departments. Alteration of project scope by client departments. Inclement weather. Late supply of material for maintenance projects. Project amount exceed the contract value especially for multi- year projects. Root Cause Escalation of building material cost. 11 12 Ref IL - Inherent likelihood, II - Inherent Impact, RL - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
86 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Two contracts have been Two recommended to a 100% target group company which will increase the expenditure for 2013/2014 financial year. The consultations with user departments were conducted Accommodation Plan and the was compiled and has been submitted and the information is incorporated in the C-AMPS for the 2014/2015 financial year.
Progress: · · Comments : The target group does not own sufficient properties in Mangaung Metro where there is huge expenditure on leasing by Public The EXCO resolution Works. on decentralisation will assist in achieving the targeted expenditure. Risk Response Mitigate 25 Risk Final Rating Residual Date Target Target 31 Mar 2014 Measures Corrective Develop BBBEE Implementation Plan and BBBEE Funding Scheme. Develop Skills Development Programme focusing on Property Incubation Programme Rating 25 RL 5 RI 5 Controls Existing Key Database established on interested BBBEE landlords. Property audits on leased in properties have been conducted to enhance joint ventures. Rating 25 IL 5 II 5 3.1: Create an enabling environment for the development of B-BBEE landlords in the property market by ensuring that 50% of the total the 50% of that ensuring property market by the in B-BBEE landlords of development the for environment enabling Create an 3.1: Risk Description Insufficient number of properties from B-BBEE. funding for office accommodation Root Cause: Huge amounts of business properties are still owned by previously advantaged groups. 13 Ref Immovable asset Management Strategic Objective - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL value of lease expenditure is awarded to B-BBEE landlords by 2016.
A prosperous Free State through facilitation of sustainable infrastructure 87 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: Condition assessments have been conducted on 10 Prestige Houses which informs maintenance required. Comments : In the current financial year physical verification was complete and the asset register updated. The maintenance backlog remains high risk and only a draft maintenance plan is in place. Risk Response Mitigate 25 Risk Final Rating Residual Date Target Target 30 Sept 2013 Measures Corrective Conduct condition assessment to inform the maintenance plan. Implement internship programme. Rating 25 RL 5 RI 5 Controls Existing Key Ad hoc maintenance was done based on urgency. Rating 25 IL 5 II 5 3.2. Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset 3.2. Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable
Risk Description Increase in maintenance backlog in immovable assets Root Cause Lack of maintenance plan and funding. condition Technical assessment not done Lack of technical skills. 14 Ref Management Act prescripts Strategic Objective
88 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: total number 3 649 property A physical verifications were completed and the asset register was updated. departments All 11 submitted their U-AMPs to the Department of Public (Custodian) as well Works Treasury as to Provincial A for costing purposes. 2014/2015 Custodian Asset Management Plan (C-AMP) This plan will is in place. contribute to the development of a costed maintenance, disposal, acquisition and accommodation plans. Comments: The maintenance backlog remains high risk and only a draft maintenance plan is in The servicing of fire place. equipment is not performed according to Occupational Act standards Health Safety due to inadequate budget on This might result maintenance. in litigations and penalties. Risk Response Mitigate 20 Risk Final Rating Residual Date Target Target 31 Mar 2014 Measures Corrective Implementation of Government Immovable Asset Management Act (GIAMA) requirements. Reconcile erf data for completeness to the total number of erven in the asset register. Rating 20 RL 4 RI 5 Controls Existing Key Reconciliation with Deeds office, Surveyor General, rolls. Valuation Physical asset verification in progress. Rating 25 IL 5 II 5 Risk Description Partial implementation of Government Asset Immovable Act Management (GIAMA). Root Cause Asset Immovable management register is incomplete. Inadequate physical verification No Custodian Asset immovable Management (strategic plan) to inform acquisition, disposal, accommodation and maintenance plans 15 Ref
A prosperous Free State through facilitation of sustainable infrastructure 89 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: All properties are serviced on daily basis. Implementation of EPWP Learnership programmes assist with daily cleaning which increased capacity in Operational Property Housekeeping. on implementation of Training cleaning norms and service standards has been done and still continuing for officials where the standard is compromised. Meeting with clients representatives and monthly spot checks have increased awareness of Occupational Health and Safety. Comments: The servicing of fire equipment is not performed according to Act Occupational Health Safety standards due to inadequate budget on maintenance. Security Services held an awareness session on the Disaster Management Plan, Occupation Health and Safety procedure at Head investigation’s Office in Mangaung Metro. It is recommended that this exercise be extended to wider number of employees in the Department including the regions. Risk Response Mitigate 12 Risk Final Rating Residual Date Target Target 31 Mar 2014 Measures Corrective Awareness campaigns on health and safety, cleaning norms and standards. Establish Occupational Health and Safety unit. Fill funded cleaning vacancies. Rating 12 RL 4 RI 3 Controls Existing Key Hold regular in- house training sessions. Frequent disinfecting. Implementation of cleaning norms and standards. Rating 20 IL 4 II 5 3.2. Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable Asset 3.2. Manage provincial government owned and leased immovable assets effectively in terms of Government Immovable
Risk Description Non-compliance to Occupational Health and Safety Act. Root Cause Lack of capacity in terms of workforce, cleaning equipment and material No designated unit dealing with Occupational Health and Safety Act implementation. 16 Ref Facility Operations
Management Act prescripts Strategic Objective - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
90 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Reconciliation are done on a monthly basis on debtor’s accounts. The credit control worthiness will be applied when new contracts are signed.
Progress: Revenue to the amount of R33.886million were collected which is 9% higher than the planned target which is a result of arrear rental settlements by Government Entities. · · Comments: The Department exceeded the income targeted in 2013/2014 The Revenue financial year. Management strategy will be drafted from the first quarter of 2014 and approved by 30 September 2014. Risk Response Mitigate 20 Risk Final Rating Residual Date Target Target 31 Mar 2014 Measures Corrective Reconcile amounts received with contracts. Assess credit control for new tenants. Facilitate lockout and eviction of defaulters. Intensify contract management (legalise occupancy) Rating 20 RL 4 RI 5 Controls Existing Key Review and update rental revenue strategy. Renewal of expired contracts. Persal deductions. Invoicing. Rating 20 IL 4 II 5 Risk Description Under collection of revenue. Root Cause Non-compliance to Division of Act, Revenue Treasury and PFMA Regulations Data integrity (e.g. outstanding payments). Inadequate maintenance. Inaccuracy of revenue estimates. Inadequate monitoring of lease contracts. Ref 17
IL - Inherent likelihood, II - Inherent Impact, RL - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
A prosperous Free State through facilitation of sustainable infrastructure 91 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Vehicles are being searched. Vehicles Patrols of floors after hours and during weekends have been intensified. Scanners are used to scan metal at identified entrances in Lebohang and the Provincial Government Building but due to shortages, scanners are used. not effectively Progress: The Security Master plan is in place and the training unit has started rolling it out focusing on the Code of Conduct. Code of conduct training to security Access cards personnel is continuing. remain a requirement for entrance from officials and visitors are requested to produce green Identity Documents and sign the visitor’s registers. 50 per cent of security officers has been trained on the Code of Conduct Physical Security measures are in place as egress and access control are performed. • • • Comments: Breach of security risks has increased. The Security Services held an awareness session on Disaster Management Plan, Occupation Health and Safety investigation procedure at Head Office in Mangaung Metro. It is recommended that this exercise be extended to a wider number of employees in the Department including the regions. Risk Response Mitigate 20 Risk Final Rating Residual Date Target Target Quarterly Measures Corrective Physical security at all access points. Access cards. Green ID Documents. Registers. Develop a Security Master Plan /SDIP and roll-out implementation plan. Rating 20 RL 4 RI 5 Key Existing Controls Boom gates and access cards for officials at access points. Producing of green ID book for visitors. Rating 25 IL 4 II 5 Risk Description Breach of security. (Unauthorized entry in the premises resulting in life threatening situations that may result in loss of life.) Root Cause Inadequate controls at access points. Lack of capacity (staff, requisite skill and equipment). Ref Security Services 18 Strategic Objective 3.3: Provide a safe and secure environment in 35 government buildings by 2016. - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
92 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Progress Progress: The Data Management Unit has been established. Proof of evidence is submitted with progress reported. The District Steering Committees were resuscitated (It is an institutional arrangement between coordinating Departments EPWP and Municipalities) to assist the Province to coordinate and align the The District implementation of EPWP. Steering Committee meetings were conducted in all districts, action logs have been compiled and resolutions are implemented. The compliance and reporting of projects have been a standing agenda This has item in the DSC forums. improved credibility of data reported and variance between preliminary data reported and validated. Comments: The risk come as a result of people, systems and processes at different entry points where the Department does not have total of Public Works The risk will be included in the control. Operational Risk Register in the new financial year. Risk Response Mitigate 20 Risk Final Rating Residual Date Target Target 30 Sept 2013 Measures Corrective Intensify coordination through EPWP Provincial and District Coordination Committees. Rating 20 RL 4 RI 5 Controls Existing Key Capturing of data and validation on Management Information System and based Web reporting. Awareness workshops with sectors and municipalities. Rating 25 IL 5 II 5 4.3: Coordinate all stakeholders towards the successful implementation of the EPWP within the Province by creating 150 000 within work 4.3: Coordinate all stakeholders towards the successful implementation of the EPWP Credibility of information. Root Cause Incomplete capturing of information. Under reporting by some public bodies. turnover Staff in implementing public bodies. Validation process takes long (Period between preliminary progress information and validation takes long). Risk Description Ref Coordination and Compliance Monitoring 19 opportunities by 2016 Strategic Objective - Residual Likelihood, RI Impact - Inherent likelihood, II Impact, RL IL
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3. FRAUD AND CORRUPTION
3.1. Progress made in implementing the fraud prevention plan The Department has an approved fraud prevention plan which outlines the Department’s approach to curtail the likelihood of fraud occurring, its prevention as well as the early detection thereof. The plan also includes the treatment of fraud risk management by the Department including the roles and responsibilities by all stakeholders. New employees were screened before being appointed in accordance with the fraud prevention requirements. The Department is currently busy with the vetting of senior management and key employees in Supply Chain Management, Security Services, Internal Audit and Human Resources Management.
The Department held a number of awareness sessions on fraud related matters. Apart from fraud prevention awareness sessions, the Department also had information sessions on Internal Audit, Human Resources specifically, the Code of Conduct and Legal Services.
3.2. Mechanisms in place to report fraud The Department has an approved whistle blowing policy and is promoting the national and departmental hotline on Departmental posters. The telephone numbers of the Chief Audit Executive appears for officials and the public to report fraud. In addition, anonymous letters as well as e-mails are forwarded if a person wishes to report in that manner.
3.3. Action taken on reported cases Internal Audit will investigate the allegations and issue a report to the Head of the Department. Depending on the outcome of the investigation, Internal Audit will make certain recommendations. Recommendations include for instance that an alleged offender be suspended from service, charged with acts of misconduct or the matter referred to the South African Police Services (for criminal action purposes), Receiver of Revenue etc. Furthermore, Internal Audit also notifies management on the issue and will recommend certain actions/control measures to prevent recurrence of similar types of fraud/corruption.
4. MINIMISING CONFLICT OF INTEREST
4.1. Mechanisms to minimise conflict of interest The Department, in its quest to minimise conflict of interest, implemented the following control measures: 4.1.1. Issue the declaration of interest form (SBD4) with each bid, including quotations, whereby the bidders are requested to declare their interests. The information is then sent to Provincial Treasury to assist with PERSAL searching for Government Employees. In the case where one of the members/directors/ shareholders is employed by the state, the Department will not award to such bidder. 4.1.2. The declaration of interest is a standing agenda item of meetings of bid committees whereby members are expected to declare their interest at every sitting. 4.1.3. All Supply Chain Management Practitioners sign the Code of Conduct at the beginning of each financial year. 4.1.4. Supply Chain Management Practitioners are expected to declare any gift, hospitality and sponsorships received from suppliers in the gift register.
4.2. Process followed in cases of conflict of interest The Department will not award the bid to the recommended bidder where conflict of interest has been identified.All declarations made by members of the bid committees are minuted for audit purposes.
5. CODE OF CONDUCT
5.1. Description and nature of the Code of Conduct/Ethics Below follows a description and nature of the Code of Conduct /ethics and the effect it has on the Department.
The Code of Conduct for the Public Service is depicted in Chapter 2 of the Public Service Regulations. It guides the performance of duties, personal conduct as well as private interests. It is regularly communicated to officials in the Department and provides practical examples on conduct to ensure that employees exercise professionalism in their daily duties. Topics addressed include among others, relationships with: • Legislature and the Executive, • The Public, • Other employees. The implementation of the Code of Conduct for the Public Service has contributed to a culture of effective leadership based on honesty, loyalty and professionalism. These contributed to good governance and ethical behaviour that is beneficial to the interests of citizens. In instances where employees contravene acceptable norms and standards, disciplinary codes and procedures as applicable for the Public Service are invoked.
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6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES A brief description and nature of Health Safety and Environmental issues and its effect on the Department is provided in the table below.
• Fire Extinguishers are serviced bi-annually. • Emergency escape are kept clear. • Physical disable toilets are in working condition in the Lebohang and Medfontein buildings. • Upgrading of lifts in Lebohang building has started.
If the environment is compliant to OHSA the risk of litigations against the Department will be limited. OHSA compliance Effect
Fire extinguisher Fires can be controlled quickly.
Emergency escape route sign Officials can escape safely.
Ventilation Building is ventilated.
Physical disable toilets Physical disable people can have access to the toilets.
Lifts Physically disable people can have access to the building.
7. PORTFOLIO COMMITTEES The meeting dates of The Portfolio Committee for 2013/2014 financial year were: • 18 September 2013 • 15 November 2013 • 22 November 2013 • 14 March 2014
The following were matters raised by the Portfolio Committee and The Departments responses to address these matters
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8. STANDING COMMITTEE ON PUBLIC ACCOUNTS (SCOPA) RESOLUTIONS
Resolution Resolved Subject Details Response by the department No. (Yes/No)
The Portfolio Committee was The Department of Public Works has concerned that the Accounting requested User Departments to submit a Officer could not resolve the list of properties to be transferred in terms following audit findings. of Section 42 with the necessary supporting • Immovable Tangible Capital documents. Assets. 10/2013 Asset • Insufficient appropriate audit The Department of Public Works received No Management evidence for current year transfers from client departments to assess adjustments to prior year which transfers will be accepted. balances. Policy Guidelines are in place for the Capitalisation of Expenditure on Immovable Assets and PFMA Section 42 Transfers.
Resolution Resolved Subject Details Response by the department No. (Yes/No)
Sufficient appropriate audit evidence • All 3 649 properties were could not be obtained that the verified in terms of its department implemented processes location and condition. and procedures to identify unused No owned and leased buildings to prevent ineffective/ underutilization/ non-utilization of office and/or other accommodation.
Lack of an immovable asset All 11 User Departments finalised and management plan as required by submitted their User Asset Management section 6(1) (a) of the Government Plans (U-AMPs). Immovable Asset Management Act of The Custodian Asset Management Plan No 2007. (C-AMP) was finalised and submitted to Provincial Treasury. The accommodation plan was also finalised. Asset 10/2013 Effective physical verification of • All 3 649 properties were Management immovable assets. verified in terms of its No location and condition.
Valuation not compliant with Financial The Department of Public Works has Reporting Framework. requested User Departments to submit a list of properties to be transferred in terms of Section 42 with the necessary supporting documents.
The Department of Public Works received transfers from client departments to No assess which transfers will be accepted.
Policy Guidelines are in place for the Capitalisation of Expenditure on Immovable Assets and PFMA Section 42 Transfers.
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Resolution Resolved Subject Details Response by the department No. (Yes/No)
The Portfolio Committee was extremely Progress on the residential properties concerned that the Accounting Officer utilised by User Departments’ officials is as did not ensure that appropriate follows; processes were implemented Department of Economic Development to provide for the identification, Tourism and Environmental Affairs collection, recording, reconciliation and 131 Contracts were submitted to the safeguarding of information related Department of Economic Development Departmental to revenue as required by TR 7.2.1. Tourism and Environmental Affairs to Revenue 10/2013 Furthermore, sufficient appropriate facilitate the signing of contracts by No audit evidence could not be obtained officials. that immovable state property was let at Of these, 103 Contracts were signed. market-related tariffs, as required by TR Agriculture 16A 7.4. 92 Contracts were drafted and submitted to the Department of Agriculture which officials refused to sign due to the fact that these houses are not maintained.
Resolution Resolved Subject Details Response by the department No. (Yes/No)
The Portfolio Committee was Health extremely concerned that the 46 lease contracts were submitted to the No Accounting Officer did not ensure Department of Health. that appropriate processes were implemented to provide Residential Properties for the identification, collection, Category: recording, reconciliation and 76 properties were identified on the rental safeguarding of information register for possible renewal of contracts and are related to revenue as required by as follow: TR 7.2.1. Furthermore, sufficient • 63 residential houses. appropriate audit evidence could • 13 plots. not be obtained that immovable 46 properties were valuated and contract state property was let at market- negotiations are underway of which 14 have related tariffs, as required by TR Departmental debt owed to the Department. Revenue 16A 7.4. 10/2013 Tenants were informed of the valuation amount of the properties Acknowledgement letters for debt owed were delivered to the 14 occupants. No The two under mentioned properties will be transferred back to the Free State Provincial Government. • Former Qwa-Qwa Filling Station is registered in the name of Maluti-A-Phofung Local Municipality. • Industrial Court is registered in the name of Maluti-A-Phofung Local Municipality. It will be allocated to Department of Sport, Arts, Culture and Recreation. No contract will be concluded for this property.
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Resolution Resolved Subject Details Response by the department No. (Yes/No)
The Portfolio Committee resolved The Department has attached a lease register Departmental that the Accounting Officer must for state owned residential and commercial Revenue provide a complete list of revenue properties. Yes generated with the status of the rental agreement for each building.
5 Ensure that the financial section A Chartered Accountant acted on the post of of the Department is sufficiently Director Finance to avoid the finalisation of capacitated by skilled officials to Annual Financial Statements being outsourced. Capacity ensure that financial functions are The CFO was appointed as Chief Executive Yes properly executed. Officer for Provincial Treasury on 01 October 2013. He has been replaced with the CFO from the Department of the Premier.
Implement control measures Employees on salary level 9 and above were to ensure that all employees verified. Eight new employees were screened, declare their own, spouses and which includes checking of their business other close relatives interest in interests. companies or closed corporations New cases identified are been followed up tendering, providing quotations or with the employees concerned and they have Declaration of 2/2010 doing business with departments submitted requests with reasons in writing. interest Yes The Special Investigation Unit must do an investigation into all unauthorised, irregular and fruitless and wasteful expenditure at the Department of Public Works
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9. PRIOR MODIFICATIONS TO AUDIT REPORTS
Discussion mechanisms put in place by the Accounting Officer to resolve the matters reported by the AGSA in the previous financial year.
Nature of qualification, disclaimer, adverse opinion Financial year in which it first Progress made in clearing / resolving the matter and matters of non- arose compliance
The Department has undertaken a process to physically verify all its properties on the asset register. To date, all 3 649 properties registered in the name of the Free State Province have been verified. Verifications of other properties not registered in the name of the province but within the province Immovable tangible capital 2008/2009 are still under way. assets
The Department has also developed a Fair Value model to value its properties. The model has been sent to the Auditor General and well as Provincial and National Treasury for comments.
The physical verification of assets will also impact this qualification area due to the fact that the Department will determine which of its properties require contracts. Those properties will then also be valued to ensure that a market Receivables for departmental 2008/2009 related rental amount is charged for them. Progress have revenue been made in ensuring that all officials who are occupying state property, due to the nature of their job, enter into a contract with the Department. Valuations have also been done on commercial properties.
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10. INTERNAL CONTROL UNIT
The internal control unit was not yet established in the Department.
11. INTERNAL AUDIT AND AUDIT COMMITTEES
a. Key activities and objectives of Internal Audit The Internal Audit unit assists 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.
b. Specify summary of audit work done The following audits and follow up audits were performed for the 2013/14 financial year: 1. Follow up on AG findings 2. Follow up on IT audit 3. First quarter Interim Financial Statements 4. Second quarter Interim Financial Statements 5. Third quarter Interim Financial Statements 6. Annual Financial Statements 7. Finance 8. Division of Revenue Act 9. Supply Chain Management follow up 10. Monitoring and Evaluation 11. Public Works and Infrastructure 12. Security Administration (Physical Security & Compliance with OHSA in Government Buildings) 13. EPWP
c. Key activities and objectives of the audit committee; The Internal Audit unit reports functionally to the Audit Committee. The Audit Committee consists of external members who are in terms of the PFMA and Treasury Regulations responsible for providing oversight over the Department on, amongst others, the following areas: a) the effectiveness of internal control systems; b) the effectiveness of the internal audit function; c) the risk areas of the institution’s operations to be covered in the scope of internal and external audits; d) the adequacy, reliability and accuracy of the financial information provided to management and other users of such information; e) any accounting and auditing concerns identified as a result of internal and external audits; f) the institution’s compliance with legal and regulatory provisions.
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d. Attendance of audit committee meetings by audit committee members.
The table below discloses relevant information on the audit committee members.
If internal, Internal No. of position Date Date Name Qualifications or Meetings in the appointed Resigned external attended department
B Com Degree Post Graduate Diploma in Engineering Business Management P Mateta Post Graduate Certificate in External N/A 25/01/2011 N/A 3 of 4 Compliance Management Post Graduate Certificate in Corporate Governance
Masters in Business Leadership Masters in Financial Management Bachelor of Science (QS) A Mahlalutye Diploma in company direction External N/A 25/01/2011 N/A 4 of 4 Certificate on Development and Management of Non-Governmental Organisations
Bachelor of Law (LLB ) Bachelor of Law (B Juris) C Weapond B Tech Policing/ investigations External N/A 25/01/2011 N/A 3 of 4 Diploma in Education Certificate in Policing
Masters in Business Administration (MBA) Bachelor of Science in Education L Shabe External N/A 25/01/2011 N/A 4 of 4 B Tech B Admin Diploma in Bookkeeping Certificate in Business Leadership
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12. AUDIT COMMITTEE REPORT
REPORT OF THE AUDIT COMMITTEE
We are pleased to present our report for the financial year ended 31 March 2014.
Audit Committee Members and Attendance
The Audit Committee consists of the members listed hereunder and meets at least four (4) times per annum as per its approved Audit Committee Charter. During the current year, four (4) meetings were held.
Member Number of meetings attended
Ms. P Mateta (Interim Chairperson) 3 out of 4 (a x 1)
Mr.LT Shabe 4 out of 4
Mr. JC Weapond 3 out of 4 (a x 1)
Mr A Mahlalutye 4 out of 4
a = member tendered an apology for the meeting [s]
Dates of Audit Committee meeting
28 May 2013; 22 August 2013; 08 November 2013; and 11 March 2014
Audit Committee Responsibility
The Audit Committee reports that it has complied with its responsibility arising from section 38(1) (a) of PFMA and Treasury Regula- tions 3.1, adopted appropriate terms of reference as its charter and has regulated its affairs in accordance with the Audit Committee Charter that is reviewed annually to ensure its relevance.
The Effectiveness of Internal Control
In line with the PFMA, Treasury Regulations and the King III Report on Corporate Governance requirements, Internal Audit Provides the Audit Committee and management with the assurance that the internal controls are appropriate and effective. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancement to the controls and processes. Based on the various reports by Internal Audit, the Audit Report on the Annual Financial Statements and the manage- ment report of the Auditor General, It was noted that matters were reported indicating deficiencies in the system of internal control.
Accordingly, we can report that the system of internal control for the period under review was inadequate. The Audit Committee noted significant progress being made to improve the internal control system in the Department. It also noted that management has imple- mented adequate controls in most areas within the Department to provide reasonable assurance that all major inherent risks are ap- propriately identified, managed and applicable legislation is adhered to.
The Audit Committee is satisfied with the contents and quality of in year and quarterly reports prepared and issued by the Accounting Officer of the Department of Public Works in terms of PFMA and the Division of Revenue Act during the year under review.
The Audit Committee is satisfied with the contents and quality of the Auditor-General Management Report as well as the management response thereof.
Evaluation of Financial Statements
The Audit Committee has:
• Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report, with the Auditor General and the Accounting Officer;
• Reviewed changes in accounting policies and practices
• Reviewed the information on the predetermined objectives to be included in the Annual Report;
• Reviewed the quality and timeliness of the financial information availed to the Audit Committee during the year such as interim financial statements; and
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• Reviewed the entity compliance with legal and regulatory provisions.
The Audit committee concurs with and accepts the Auditor General’s conclusions 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. The Audit Committee has also noted that there were no significant adjustments which resulted from the audit.
Internal Audit
The Audit Committee received and reviewed quarterly internal audit reports and concur that internal audit has addressed risk pertinent to the Department in its internal audit reviews. The Audit Committee is satisfied that internal audit function is operating effectively.
Auditor General South Arica
The Audit Committee has met with Auditor-General South Africa to ensure that there are no unresolved issues.
______.
Ms P. Mateta
Interim Chairperson of the Audit Committee
Date: 31 July 2013
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ANNUAL REPORT 2013/14 Department of Public works Annual Report A prosperous Free State through facilitation of sustainable infrastructure
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PART D: Human Recource Management
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CONTENTS
Introduction 107
Overview of Human Recources 107
Human Recources Oversight Statistics 110
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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 THE HUMAN RESOURCES
2.1 The status of human resources in the Department.
The Department of Public Works with its staff members appointed on a permanent, contract and temporary basis is divided into three budget programmes, reflected in the table below:
Table 2.1.1: Budget Programmes and Percentage Personnel Distribution:
Budget Programmes Percentage
Program 1: Administration 10%
Program 2: Public Works 88%
Program 3: EPWP 2%
TOTAL 100%
An approved macro structure, designed to meet the strategic mandate of the Department, exists. The status of the key management posts is reflected below: • Accounting Officer: Filled • Chief Financial Officer: Filled • Chief Audit Executive: Filled • Chief Risk Officer: Filled • Director Finance: Advertised. Closing date 7 March 2014 • Director Supply Chain Management: Filled • Head: Corporate Services: Filled • Head: Strategic Planning: Filled • Head: ICT: Filled
Table 2.1.2: Equity Distribution
Gender Gender Percentage Disabled Percentage
Male 53% 1%
Female 47% 1%
TOTAL 100% 2%
The technical professions and artisan occupations have historically been the domain of males. Departmentally females have embraced these occupations and small gains in respect of gender representivity have been made. Females constitute 14% of the qualified technical/artisan workforce.
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2.2. Human resource priorities for 2013/2014 financial year and the impact of these. During the 2013/2014 financial year, the Department of Public Works successfully implemented the under-mentioned human resources priorities:
2.2.1. Ensure that the Department attracts, develops and retains the skills necessary for service delivery. The unavailability of critical skills invariably impacts on service delivery. In line with national trends, the demand for infrastructure/technical related skills in the Province has been phenomenal. Over the past few years, the public sector has suffered skill losses due to higher salaries paid in the private sector and due to emigration to developed economies. When the human resources plan was developed, the Department of Public Works was experiencing skill deficits in professional, technical and artisan fields. This shortage particularly affected, among others, professionally registered mechanical and electrical engineers, technologists, technicians, quantity surveyors, architects and construction project managers, risk management personnel and artisans. The Occupation-Specific Dispensation (OSD) was pursued to address disparities within the scarce occupations and also provides for career progression through grade advancement based on experience. Since the implementation of the OSD, a definite reduction in staff turnover has been observed. Recruitment of full-registered professionals in quantity surveying, construction project management, architecture, mechanical engineering, and electrical engineering remains a challenge. Recruitment interventions have however revealed that a larger number of candidates are applying for posts. This trend is in line with the statistics published in the annual reports of the different built environment councils.
2.2.1.1. Develop a capable and skilled workforce that is striving towards service excellence. People development is important because it will ensure that employees possess the necessary competencies to deliver services. Skilled employees will contribute to improved service delivery and mobility as per career development needs. Required leadership skills and competencies are identified and interventions are developed to drive leadership enhancement. The Departmental need for appropriately skilled human capital is embedded in its core mandate and is necessary to support the legislative framework as follows: • Skills Development Act determines the framework for enhancement of skills. • Competency assessments for Senior Management Service (SMS) as determined by Minister of Public Service and Administration. • Human Resource Management and Development Strategy provides for provincial staff provisioning and skills requirements. • Implementation of HR Connect project (personnel HR profiling data base) as directed by the Minister of the DPSA. • Chapter 10 (Section 195) of the Constitution deals with the basic values and principles governing public administration. • The National Development Plan categorically outlines capacity requirements for the country.
2.2.1.2 Ensure that all HR processes and procedures are in line with good corporate governance practices. The creation of an environment maximising the performance of personnel focusing on resources, processes, policies, structures and skills is necessary. A positive environment will determine how much and how well the Department achieves its objectives. Effective processes, policies and procedures coupled with empowered competent staff that is representative of the demographics will minimise the risk of audit qualifications and negative audit report, thereby contributing to Operation Clean Audit by 2014. The Department has introduced measures to ensure compliance as a minimum to the norms and standards provided for and will systematically implement systems to grow and develop public administration as outlined.
2.2.2. Workforce planning and key strategies to attract and recruit a skilled and capable workforce. To address human capital development requirements, various capacity building initiatives are in place. The key initiatives are registration of staff to become registered built-environment professionals, and the programme of Recognition of Prior Learning (RPL) for Tradesman Aids to become artisans. The initiatives above will go a long way to increase capacity within the technical and artisan fields and in particular to address the shortcoming of professional registration within mechanical engineering, electrical engineering, quantity surveying and project management. To address the shortage of artisans, the Department as mentioned above commenced with implementation of the recognition of prior learning training programme (RPL). 121 Employees participated in six trades namely: Bricklaying, Carpentry, Painting, Plastering, Plumbing and Welding. Of these, 61 have met the standards to write trade tests and they will on successful completion be appointed as fully fledged artisans in the 2014/2015 financial year. Of the 61 participants that met the standards, 20 are women, 15 in painting, 4 plastering and 1 bricklaying. 14 Participants have already successfully concluded the theoretical assessment. Indlela Training Centre has been requested for dates for to conclude the trade tests. During the period of this implementation report, 8 artisans (3 electricians, 4 carpenters and 1 painting and decoration) have as a result of Departmental skills development initiatives qualified and been appointed asArtisans. The Department has already successfully trained Safety and Security Sector Education and Training Authority (SASSETA) compliant Facilitators, Moderators, and Assessors to conduct security training. The SASSETA on 28 June 2013 granted accreditation for the Department to conduct accredited security training.
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In order to enhance professional capacity, the Department is growing its own timber and investing in professional registration within civil, electrical, and mechanical engineering, quantity surveying, architecture, and construction project management. Great strides have been made in this regard.
2.2.3. Employee Performance Management. Performance management is aimed at improving performance by directing attention to key areas of activity, which are identified through strategic planning processes. It seeks to establish clear links between organizational development and culture change, the delivery of quality services and the personal and professional development of jobholders at work.
The Department has 2 approved performance management systems, namely: • Senior Management Service (SMS) PDMS • Performance management for employees on salary levels 1-12
2.2.4. Employee Wellness Programmes. Four interventions health and wellness intervention programmes are in place namely: • Health and Productivity Management, • Wellness Management, • HIV/AIDS and TB management and • Safety, Health, Environment, Risk and Quality (SHERQ). The following significant achievements were made as follows: Four information sessions on reasonable accommodation in the workplace for disabled persons were held and 189 officials attended. The objective of the information session was to promote and educate employees within the Department more specifically the disabled persons (officials) about their rights to be presented with working devices that accommodate their needs in order to execute/perform their duties diligently. However the employees were also encouraged to disclose their information in terms of disability. • Health awareness information sessions on audiometry screening were conducted at all five districts. Total number of attendees 254. Interventions on psychosocial issues were also conducted for 22 officials. • A total number of 218 employees attended the Men’s Health Presentation and Screening across all the Districts. • Trauma session conducted in Thaba Nchu, Peer Educator sessions in Bloemfontein, Candle Light Memorial Event, Women’s Day in Qwaqwa and Ophthalmology presentation and screening sessions. • Financial Wellness Session presented by Standard Bank to employees regarding the garnishee orders, budgeting and loans. • Departmental wellness day held at Tempe Military Base, Peer Educators Sessions, Team Building Sessions and Kidney Disease Awareness Sessions where there was a person giving testimony as a kidney disease survivor (a kidney was donated and transplanted on him).
2.2.5. Highlight achievements and challenges faced by the Department, as well as future human resource goals.
2.2.5.1. Achievements Departmentally 2% disability ratio has been achieved for salary levels 1-10 2.2.5.2. Challenges faced by the Department • 46% Of staff is 50 and older whilst 21% constitute youth. Statistics demonstrate a 2% increase in youth, and a 2% decrease in staff older than 50 years. • Departmentally the 2% ratio for levels 11 to 15 for disabled has not been met. • Appointment of registered professionals in mechanical/electrical engineering and quantity surveying is a challenge.
2.2.5.3. Future Human Resource Goals Key targets to meet current and future human capital requirements on the medium term as envisaged in the approved human resources plan are: • Maintain disability representivity to 2% of the workforce, • Increase gender representivity on levels 9-14 to 50%, • Increase gender representivity in technical fields to 20%, • Transform the workforce age statistics by targeting youth, • Adjusting policies and systems to address the norms and standards of Management Performance Assessment Tool where relevent, • Mentorship of budding professionals; and • Enhance capacity in key areas of scarce skills, through recruitment and skills interventions.
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3. HUMAN RESOURCES OVERSIGHT STATISTICS
3.1. Personnel related Expenditure
The following tables summarises the final audited personnel related expenditure that is, amount spent on salaries, overtime, homeowner’s allowances, medical aid and personnel by programme and by salary bands.
Table 3.1.1 Personnel expenditure by programme for the period 1 April 2013 to 31 March 2014
Professional Personnel Average Total Personnel Training and special expenditure personnel Programme expenditure expenditure expenditure services as a % cost per (R’000) (R’000) (R’000) expenditure of total employee (R’000) expenditure (R’000)
Administration 93 484 63 248 1 976 - 5% 362
Public Works Infrastructure 1 106 768 264 837 - - 19% 175
EPWP 198 443 11 022 - - 1% 324
Total 1 398 695 339 107 1 976 - - 197
Table 3.1.2 Personnel costs by salary band for the period 1 April 2013 to 31 March 2014
Average Personnel % of total No. of personnel cost Salary band expenditure personnel employees per employee (R’000) cost (R’000)
Lower skilled (Levels 1-2) 77 746 23% 468 157
Skilled (Levels 3-5) 118 123 35% 838 142
Highly skilled production (levels 6-8) 70 504 21% 272 270
Highly skilled supervision (levels 9-12) 52 801 16% 113 473
Senior and Top management (levels 13-16) 19 933 6% 24 781
Total 339 107 - 1 715 197
Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2013 to 31 March 2014
Home Owners Salaries Overtime Medical Aid Allowance
Salaries Overtime HOA as Medical aid Programme Amount as a % of Amount as a % of Amount a % of Amount as a % of (R’000 personnel (R’000) personnel (R’000) personnel (R’000) personnel costs costs costs costs
Administration 58 637 19% 33 1% 1 941 11% 2 637 12%
Public Works 227 388 77% 3 834 99% 14 478 87% 19 136 87% Infrastructure
EPWP 10 492 4% - - 263 2% 267 1%
Total 296 517 - 3 867 - 16 682 - 22 040 -
110 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2013 to 31 March 2014
Overtime Home Owners Salaries Medical Aid Allowance
Salaries Overtime HOA as Medical aid Salary band Amount as a % of Amount as a % of Amount a % of Amount as a % of (R’000 personnel (R’000) personnel (R’000) personnel (R’000) personnel costs costs costs costs
Skilled (Levels 66 819 23% 211 5% 4 501 27% 5 891 27% 1-2)
Skilled (Levels 96 107 32% 2 868 74% 7 982 48% 10 674 49% 3-5)
Highly skilled production (Levels 63 177 21% 772 20% 2 508 15% 3 752 17% 6-8)
Highly skilled supervision 50 155 17% 16 - 1 011 6% 1 408 6% (Levels 9-12
Senior management 20 259 7% 0 - 680 4% 315 1% (Levels 13-16)
Total 296 517 - 3 867 - 16 682 - 22 040 -
3.2. Employment and Vacancies
The tables in this section summarise the position with regard to employment and vacancies. Table 3.2.1 Employment and vacancies by programme as on 31 March 2014
Number of Number of employees posts on Number of Programme Vacancy Rate additional to the approved posts filled establishment establishment
Administration 276 197 29% 26
EPWP 1 005 987 2% 953
Public works infrastructure 1 890 1 622 14% 112
TOTAL *3 171 2 806 12% 1 091
*Include 1 091 additional posts (EPWP Beneficiaries). PERSAL used as a payment tool
A prosperous Free State through facilitation of sustainable infrastructure 111 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.2.2 Employment and vacancies by salary band as on 31 March 2014
Salary Bands Number of posts Number of Vacancy Number of employees on approved posts filled Rate additional to the establishment establishment
Lower skilled (Levels 1-2) 1 469 1 364 7% 974
Skilled (Levels 3-5) 879 794 10% -
Highly skilled production (Levels 6-8) 345 250 28% -
Highly skilled supervision (Levels 9-12) 180 107 41% -
Senior management (Levels 13-16) 27 20 26% -
Contract (Levels 1-2) 186 186 - 108
Contract (Levels 3-5) 51 51 - 7
Contract (Levels 6-8) 22 22 - -
Contract (Levels 9-12) 7 7 - 1
Contract (Levels 13-16) 5 5 - 1
Total *3 171 2 806 12% 1 091
*Include 1 091 additional posts (EPWP Beneficiaries). PERSAL used as a payment tool
Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2014
Number of posts Number of employees Number of Vacancy Critical occupation on approved additional to the posts filled Rate establishment establishment
All artisans in the building machinery etc. 1 067 1 058 1% 953
Architects 3 1 67% -
Artisan project and related superintendents 9 5 44% -
Binding and related workers 2 2 - -
Computer programmers. 3 1 67% -
Electrical and electronics engineering 12 6 50% - technicians
Engineering sciences related 12 4 67% -
Engineers and related professionals 21 15 29% -
Finance and economics related 6 5 17% -
Financial and related professionals 16 8 50% -
Inspectors of apprentices works 88 69 22% -
Quantity surveyors & related professionals not 8 8 - - class elsewhere
Risk management and security services 4 3 25% -
Road workers 13 13 - -
Senior Managers 26 19 27% -
Total 1 290 1 217 6% 953
112 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
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 2014
Total Total number number of % of SMS Total number of % of SMS posts SMS Level of funded SMS posts posts filled SMS posts vacant vacant SMS posts filled
Head of Department 1 1 100% - -
Salary Level 16 1 1 100% - -
Salary Level 15 1 - - 1 100%
Salary Level 14 6 5 83% 1 17%
Salary Level 13 18 14 78% 4 22%
Total 27 21 78% 6 22%
Table 3.3.2 SMS post information as on 30 September 2013
Total Total number of number of % of SMS Total number of % of SMS posts SMS Level funded SMS SMS posts posts filled SMS posts vacant vacant posts filled
Head of Department 1 1 100% - -
Salary Level 16 1 1 100% - -
Salary Level 15 1 - - 1 100%
Salary Level 14 6 5 83% 1 17%
Salary Level 13 18 13 72% 5 28%
Total 27 20 74% 7 26%
Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2013 to 31 March 2014
Total Total number number of % of SMS Total number of % of SMS posts SMS Level of funded SMS posts posts filled SMS posts vacant vacant SMS posts filled
Head of Department - - - - -
Salary Level 16 - - - - -
Salary Level 15 - - - - -
Salary Level 14 1 - - 1 100%
Salary Level 13 7 5 71% 2 29%
Total 8 5 62% 3 100%
A prosperous Free State through facilitation of sustainable infrastructure 113 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2013 to 31 March 2014
Reasons for vacancies not advertised within 12 months • Chief Director Property Management: Post became vacant on 1 October 2013. This post was advertised during December 2013 (within 6 months of becoming vacant). Recruitment did not attract suitable applicants • The post of Director Finance could not be filled within 6 months, due to the successful candidate declining the employment offer. The post was re-advertised.
Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2013 to 31 March 2014
Reasons for vacancies not advertised within six months
Not applicable
Reasons for vacancies not filled within six months
Not applicable
3.4. Job Evaluation
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 Salary band for the period 1 April 2013 to 31 March 2014
Number of % of posts Posts Upgraded Posts downgraded Number posts on evaluated Salary band of Jobs % of % of approved by salary Evaluated Number posts Number posts establishment bands evaluated evaluated
Lower Skilled (Levels1-2) *1 655 ------
Skilled (Levels 3-5) 935 ------
Highly skilled production 367 8 2% 3 38% - - (Levels 6-8)
Highly skilled supervision 187 1 1% 2 200% - - (Levels 9-12)
Senior Management 17 1 6% - - - - Service Band A
Senior Management 7 ------Service Band B
Senior Management 1 - - 1 100% - - Service Band C
Senior Management 2 ------Service Band D
Total *3 171 10 6 60% - -
*Include 1 091 additional posts (EPWP Beneficiaries). PERSAL used as a payment tool
114 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded.
Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2013 to 31 March 2014
Gender African Asian Coloured White Total
Female 4 - - - 4
Male 2 - - - 2
Total 6 - - - 6
Employees with a disability -
The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case.
Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2013 to 31 March 2014
Number of Job evaluation Remuneration Occupation Reason for deviation employees level level
Director: Supply Chain Management 1 13 14 Regulation V.C.6
Deputy Director: Supply Chain Management 1 11 12 Regulation V.C.6
Total number of employees whose salaries exceeded the level determined by job evaluation 2
Percentage of total employed 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 salary levels higher than those determined by job evaluation for the period 1 April 2013 to 31 March 2014
Gender African Asian Coloured White Total
Female 1 - - - 1
Male 1 - - - 1
Total 2 - - - 2
Employees with a disability - - - - -
Total number of Employees whose salaries exceeded the grades determine by job evaluation 2
A prosperous Free State through facilitation of sustainable infrastructure 115 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
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
Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2013 to 31 March 2014
Number of Appointments Terminations employees at and transfers and transfers Turnover Salary band beginning of period into the out of the rate - 1 April 2013 department department
Lower skilled ( Levels 1-2) 1 071 284 805 75%
Skilled (Levels 3-5) 772 16 44 6%
Highly skilled production (Levels 6-8) 262 1 21 8%
Highly skilled supervision (Levels 9-12) 99 9 2 2%
Senior Management Service Bands A 13 1 1 8%
Senior Management Service Bands B 4 - 2 50%
Senior Management Service Bands C 1 - - -
Senior Management Service Bands D 1 - - -
Contract (Levels 1-2) 61 42 117 192%
Contract (Levels 3-5) 29 22 12 4%
Contract (Levels 6-8) 16 8 3 19%
Contract (Levels 9-12) 8 1 1 13%
Contract (Band A) 4 - 1 25%
Contract (Band B) 1 - 1 100%
Contract (Band C) 1 - - -
Contract (Band D) 1 - - -
Total 2 344 384 1 010 43%
116 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2013 to 31 March 2014
Number of Appointments Terminations employees at and transfers and transfers Critical occupation Turnover rate beginning of period into the out of the - April 2013 department department
All artisans in the building environment 701 255 761 109%
Architects 1 - - -
Artisan project and related superintendents 5 - - -
Electrical and electronics engineering technicians 6 - 1 17%
Engineering sciences related 5 - 1 20%
Engineers and related professionals 11 4 - -
Finance and economics related 4 - - -
Inspectors of apprentices works and vehicles 70 5 9 13%
Quantity surveyors & related professional not 7 1 1 14% class elsewhere
Risk management and security services 3 - - -
Senior managers 22 1 4 18%
TOTAL 835 266 777 93%
Table 3.5.3 Reasons why staff left the Department for the period 1 April 2013 to 31 March 2014
Termination Type Number Percentage of Total Resignations
Death 34 3%
Resignation 22 2%
Expiry of contract *891 88%
Transfers 1 1%
Dismissal-misconduct 7 1%
Retirement 55 5%
TOTAL 1 010 100%
Total number of employees who left as a % of total employment 43%
*Include expiry of contracts of EPWP Beneficiaries. PERSAL used as a payment tool
A prosperous Free State through facilitation of sustainable infrastructure 117 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.5.4 Promotions by critical occupation for the period 1 April 2013 to 31 March 2014
Employment Salary Level Progressions Notch Promotions at Beginning Promotions to another progressions Occupation to another of Period as a % of Notch within as a % of Salary Level (April 2013) Employment Salary Level Employment
All artisans in the building environment 701 - - 81 12%
Architects 1 - - 1 100%
Artisan project and related 5 - - 1 20% superintendents
Electrical and electronics engineering 6 - - - - technicians
Engineering sciences related 5 - - 1 20%
Engineers and related professionals 11 - - 6 55%
Finance and economics related 4 2 50% 2 50%
Inspectors of apprentices works 70 - - 41 59%
Quantity surveyors & related professionals 7 - - 5 71% not class elsewhere
Risk management and security services 3 - - 2 67%
Senior Managers 22 1 5% 8 36%
Total 835 3 - - 18%
Table 3.5.5 Promotions by salary band for the period 1 April 2013 to 31 March 2014
Salary bands Notch Progressions Promotions promotions progression as a Employees to another Salary Band to another as a % of % of 1 April 2013 notch within a salary level employees by employees by salary level salary level salary bands
Lower skilled (Levels 1-2) *1 071 - - 176 16%
Skilled (Levels 3-5) 772 1 - 534 69%
Highly skilled production 262 1 - 153 58% (Levels 6-8)
Highly skilled supervision 99 3 3% 62 63% (Levels 9-12)
Senior management 19 3 16% 7 37% (Levels 13-16)
Contract (Levels 1-2) 61 - - 11 18%
Contract (Levels 3-5) 29 - - 10 34%
Contract (Levels 6-8) 16 - - 4 25%
Contract (Levels 9-12) 8 - - 2 25%
Contract (Levels 13-16) 7 - - 1 14%
TOTAL *2 344 8 - 960 41% *Include 895 EPWP beneficiaries, employed additional to the post establishment. PERSAL used as a payment tool
118 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
3.6. Employment Equity
Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2014
Male Female Occupational category Total African Coloured Indian White African Coloured Indian White
Senior officials and 11 - - 3 6 - - - 20 managers
Senior officials and 25 - - 10 20 - - 5 60 managers
Professionals 42 - - 9 48 3 - 11 113
Technicians and associate 53 2 - 7 101 4 - 26 193 professionals
Clerks 295 17 - 8 172 4 - 3 499
Service and sales workers 536 6 - 20 569 3 - - 1 134
Plant and machine 17 - - - 1 - - - 18 operators and assemblers
Elementary occupations 331 4 - 1 427 5 - 1 769
Total 1 310 29 - 58 1 344 19 - 46 *2 806
Employees with disabilities 23 - - 1 12 - - 3 39
*Include EPWP Beneficiaries. PERSAL used as a payment tool
A prosperous Free State through facilitation of sustainable infrastructure 119 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as at 31 March 2014
Male Female Total Occupational Bands African Coloured Indian White African Coloured Indian White Total
Top Management - - - - 1 - - - 1
Senior Management 10 - - 2 7 - - - 19
Professionally qualified and experienced specialists and 47 - - 16 37 2 - 5 107 mid-management
Skilled technical and academically qualified workers, junior 112 8 - 35 56 1 - 38 250 management, supervisors, foremen
Semi-skilled and discretionary decision 445 15 - 3 320 8 - 3 794 making
Unskilled and defined 561 6 - - 790 7 - - 1 364 decision making
Contract (Top 1 - - 1 - - - - 2 Management)
Contract (Senior 3 ------3 Management)
Contract (Professionally 4 - - 1 2 - - - 7 qualified)
Contract (Skilled technical) 12 - - - 10 - - - 22
Contract (Semi-skilled) 23 - - - 27 1 - - 51
Contract (Unskilled) 92 - - - 94 - - - 186
TOTAL 1 310 29 - 58 1 344 19 - 46 *2 806
*Include EPWP Beneficiaries. PERSAL used as a payment tool
120 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.6.3 Recruitment for the period 1 April 2013 to 31 March 2014
Male Female Occupational Bands Total African Coloured Indian White African Coloured Indian White
Senior Management, 1 ------1
Professionally qualified and experienced 5 - - - 4 - - - 9 specialists and mid- management
Skilled technical and academically qualified workers, - 1 ------1 junior management, supervisors, foremen
Semi-skilled and discretionary decision 11 - - - 5 - - - 16 making
Unskilled and defined 137 2 - - 144 1 - - 284 decision making,
Contract (Professionally - - - - 1 - - - 1 qualified)
Contract (Skilled 4 - - - 4 - - - 8 technical)
Contract (Semi-skilled) 11 - - - 10 1 - - 22
Contract (Unskilled) 14 - - - 28 - - - 42
TOTAL 183 3 - 0 196 2 - - 384
Employees with 8 - - - 5 - - - 13 disabilities
A prosperous Free State through facilitation of sustainable infrastructure 121 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.6.4 Promotions for the period 1 April 2013 to 31 March 2014
Male Female Occupational Bands Total African Coloured Indian White African Coloured Indian White
Senior Management 5 - - - 5 - - - 10
Professionally qualified and experienced 27 - - 9 22 2 - 5 65 specialists and mid- management
Skilled technical and academically qualified workers, 92 2 - 15 36 1 - 8 154 junior management, supervisors, foremen
Semi-skilled and discretionary decision 306 12 - 1 208 5 - 3 535 making
Unskilled and defined 73 1 - - 100 2 - - 176 decision making
Contract (Top 1 ------1 Management)
Contract (Professionally 1 - - 1 - - - - 2 qualified)
Contract (Skilled 3 - - - 1 - - - 4 technical)
Contract (Semi-skilled) 6 - - - 4 - - - 10
Contract (Unskilled) - - - - 11 - - - 11
TOTAL 514 15 - 26 387 10 - 16 968
Employees with 9 - - 1 2 - - 1 13 disabilities
122 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.6.5 Terminations for the period 1 April 2013 to 31 March 2014
Male Female Occupational Bands Total African Coloured Indian White African Coloured Indian White
Senior Management 3 ------3
Professionally qualified and experienced 1 - - 1 - - - - 2 specialists and mid- management
Skilled technical and academically qualified workers, 14 - - 4 - - - 3 21 junior management, supervisors, foremen
Semi-skilled and discretionary decision 28 - - - 16 - - - 44 making
Unskilled and defined 388 5 - - 408 4 - - 805 decision making
Contract (Senior 1 - - - 1 - - - 2 Management)
Contract (Professionally 1 ------1 qualified)
Contract (Skilled 2 - - - 1 - - - 3 technical)
Contract (Semi-skilled) 5 - - - 7 - - - 12
Contract (Unskilled) 69 - - - 48 - - - 117
TOTAL 512 5 - 5 481 4 - 3 1 010
Employees with 1 ------1 Disabilities
Table 3.6.6 Disciplinary action for the period 1 April 2013 to 31 March 2014
Male Female Disciplinary Action Total African Coloured Indian White African Coloured Indian White
Cases Handled 4 - - - 4 - - - 8
A prosperous Free State through facilitation of sustainable infrastructure 123 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.6.7 Skills development for the period 1 April 2013 to 31 March 2014
Number of Training provided within the reporting period Employees Occupational Category Gender as Skills Programmes at 1 Apr Learnerships & other Short Other Total 2013 Courses
Female 31 - 7 - 7 Senior officials & Managers Male 49 - 9 - 9
Female 62 - - - - Professionals Male 51 - 7 - 7
Female 131 - 13 - 13 Technicians & Associate professions Male 62 - 20 - 20
Female 179 - 16 - 16 Clerks Male 320 - 35 - 35
Female 572 - 44 - 44 Service & Sales Workers Male 562 - 32 - 32
Female 1 - - - - Plant & Machine Operators Male 17 - 2 - 2
Female 433 - 25 - 25 Elementary Occupations Male 336 - 8 - 8
Female 1 409 - 105 - 105 SUB-TOTALS Male 1 397 - 113 - 113
Total 2 806 - 218 - 218
3.7. Signing of Performance Agreements by SMS Members
All members of the SMS have concluded and signed performance agreements within specific timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here.
Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2013 Total number Signed performance Total number Total number of signed agreements as % of SMS Level of funded SMS of SMS performance total number of SMS posts members agreements members
Head of Department 1 1 1 100%
Salary Level 16 - - - -
Salary Level 15 4 4 4 100%
Salary Level 14 1 1 1 100%
Salary Level 13 17 10 10 100%
Total 23 16 16 100%
*One employee on salary level 13 is on precausionary suspension and was not required to submit.
124 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 May 2013
Reasons
Not applicable, all performance agreements submitted with the exception of one designated employee who was already on suspension
Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2013
Reasons
Not applicable, all performance agreements submitted. (see reason above)
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
Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2013 to 31 March 2014
Beneficiary Profile Cost
Race & Gender Number of Number of % of total Cost Average Cost Beneficiaries Employees within group (R’000) per Employee (R’000)
African 567 1 801 31 3 839 7
Male 252 901 28 1 871 7
Female 315 900 35 1 968 6
Asian - - - - -
Male - - - - -
Female - - - - -
Coloured 19 25 76 136 7
Male 6 10 60 37 6
Female 13 15 87 99 8
White 100 124 81 1 224 12
Male 40 52 77 538 13
Female 60 72 83 686 11
Total 686 1 950 35 5 199 8
A prosperous Free State through facilitation of sustainable infrastructure 125 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2013 to 31 March 2014
Beneficiary Profile Cost Total cost as a % of total Total Average cost % of the total Number of Number of within Salary Band Cost per employee personnel beneficiaries employees salary (R’000) (R’000) expenditure bands
Lower Skilled (Levels 1-2) 114 1 364 8% 439 4 9%
Skilled (Levels 3-5) 288 794 36% 1 384 5 27%
Highly skilled production 144 250 58% 1 620 11 32% (Levels 6-8)
Highly skilled supervision 61 107 57% 1 540 25 30% (Levels 9-12)
Contract (Levels 1-2) 11 186 6% 38 3 1%
Contract (Levels 3-5) 4 51 8% 24 6 -
Contract (Levels 6-8) - 22 - - - -
Contract (Levels 9-12) 1 7 14% 22 22 -
Total 623 2 781 22% 5 067 8
Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2013 to 31 March 2014
Average cost Number of Number of % of total within Total Cost Critical Occupations per employee Beneficiaries employees occupation (R’000) R
All artisans in the building environment 30 1 058 3% 239 8
Architects - 1 - - -
Artisan project and related 1 5 20% 10 10 superintendents
Computer programmers. 1 1 100% 8 8
Electrical and electronics engineering - 6 - - - technicians
Engineering sciences related 2 4 50% 50 25
Engineers and related professionals 3 15 20% 81 27
Finance and economics related 3 5 60% 59 20
Inspectors of apprentices works and 18 69 26% 195 11 vehicles
Quantity surveyors & rela prof not class 2 8 25% 36 18 elsewhere
Risk management and security services 3 3 100% 70 23
Senior managers - 19 - - -
Total 63 1 194 5% 748 12
126 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2013 to 31 March 2014
Beneficiary Profile Cost Total cost as a % of total % of the total Number of Number of Total Cost Average cost Salary band within salary personnel beneficiaries employees (R’000) per employee bands expenditure
Band A 1 17 6% 28 28 100%
Band B - 5 - - - -
Band C - 1 - - - -
Band D - 2 - - - -
Total 1 25 4% 28 28 100%
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 workers by salary band for the period 1 April 2013 to 31 March 2014
01 April 2013 31 March 2014 Change Salary band Number % of total Number % of total Number % Change
Lower skilled ------
Highly skilled production (Levels 6-8) ------
Highly skilled supervision (Levels 1-2) - - 1 33% 1 33%
Contract (Levels 9-12) - - 1 33% 1 33%
Contract (Levels 13-16) - - 1 34% 1 34%
Total - - 3 100% 3 100%
Table 3.9.2 Foreign workers by major occupation for the period 1 April 2013 to 31 March 2014
Major occupation 01 April 2013 31 March 2014 Change
Number % of total Number % of total Number % Change
Elementary occupations 1 33% 1 33% - -
Professionals and managers 2 67% 2 67% - -
TOTAL 3 100% 3 100% - -
A prosperous Free State through facilitation of sustainable infrastructure 127 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
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.
Table 3.10.1 Sick leave for the period 1 January 2013 to 31 December 2013
Salary Band Total Days % Days with Number of % of Total Average Estimated Medical Employees Employees Days per Cost Certification using Sick using Sick Employee (R’000) Leave Leave
Lower skilled (Levels 1-2) 2 321 95% 255 22% 9 664
Skilled (Levels 3-5) 4 687 94% 527 40% 9 1 637
Highly skilled production (Levels 6-8) 1 848 90% 196 17% 9 1 266
Highly skilled supervision (Levels 9-12) 711 91% 64 6% 11 1 129
Senior management (Levels 13-16) 86 87% 14 1% 6 260
Contract (Levels 1-2) 300 87% 66 6% 5 76
Contract (Levels 3-5) 94 89% 19 2% 5 35
Contract (Levels 6-8) 38 75% 8 1% 5 21
Contract (Levels 9-12) 9 100% 1 - 9 16
Contract (Levels 13-16) 12 100% 2 - 6 43
TOTAL 10 106 93% 1 152 100% 9 5 147
Table 3.10.2 Disability leave (temporary and ) for the period 1 January 2013 to 31 December 2013
Number of % of total % Days Employees employees Average with Estimated Salary band Total days using using days per Medical Cost (R’000) disability disability employee certification leave leave
Lower skilled (Levels 1-2) 7 100% 1 14% 7 2
Skilled (Levels 3-5) 230 100% 3 43% 77 72
Highly skilled production (Levels 193 100% 2 29% 97 143 6-8)
Highly skilled supervision (Levels 46 100% 1 14% 46 46 9-12)
Senior management (Levels 13------16)
Total 476 100% 7 100% 68 263
128 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the Public Service Coordinating Bargaining Councel of 2 000 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 January 2013 to 31 December 2013
Number of Average days per Salary Bands Total Days Taken Employees who Employee took leave
Lower skilled (Levels 1-2) 12 134 462 26
Skilled (Levels 3-5) 22 060 832 27
Highly skilled production (Levels 6-8) 7 046 267 26
Highly skilled supervision (Levels 9-12) 2 453 106 23
Senior management (Levels 13-16) 404 19 21
Contract (Levels 1-2) 1 281 119 11
Contract (Levels 3-5) 441 33 13
Contract (Levels 6-8) 315 17 19
Contract (Levels 9-12) 80 7 11
Contract (Levels 13-16) 114 6 19
TOTAL 46 329 1 868 25
Table 3.10.4 Capped leave for the period 1 January 2013 to 31 December 2013
Total days Number of Average number Average capped Salary band of capped Employees using of days taken leave per employee leave taken capped leave per employee as on 31 March 2014
Lower skilled (Levels 1-2) 37 4 9 48
Skilled Levels 3-5) 71 11 6 56
Highly skilled production (Levels 6-8) 22 6 4 48
Highly skilled supervision(Levels 9-12) 22 3 7 54
Senior management (Levels 13-16) - - - -
Total 152 24 6 52
The following table summarise payments made to employees as a result of leave that was not taken.
Table 3.10.5 Leave payouts for the period 1 April 2013 to 31 March 2014
Total amount Number of Average per employee Reasons (R’000) employees (R’000)
Leave pay-out for 2013/2014 due to non-utilisation of leave - - - for the previous cycle
Capped leave pay-outs on termination of service for 3 151 101 31 2013/2014
Current leave pay-out on termination of service for 340 23 15 2013/2014
Total 3 491 124 28
A prosperous Free State through facilitation of sustainable infrastructure 129 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
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 risk of contracting Key steps taken to reduce the risk HIV & related diseases
Health awareness programmes, prevention and Employees VHCT promotions.
Table 3.11.2: Details of Health Promotion and HIV/AIDS Programmes
Question Yes Details, if yes 1. Has the department designated a member of the SMS to Stan Diakos: Director Human Resource Management implement the provisions contained in Part VI E of Chapter 1 Yes of the Public Service Regulations, 2001? If so, provide her/his name and position. 2. Does the department have a dedicated unit or has it designated Employee Health and Wellness Unit. Two (2) specific staff members to promote the health and well-being of employees. your employees? If so, indicate the number of employees who Yes Maphuti Marogoa are involved in this task and the annual budget that is available Pakiso Makatla for this purpose. 3. Has the department introduced an Employee Assistance (a) Need analysis is done or Health Promotion Programme for your employees? If so, (b) Health programmes are aligned with National indicate the key elements/services of this Programme. Health Calendar Yes (c) Awareness, presentations and screenings are done. (d) EAP- assists with psychosocial challenges to employees and their immediate families. 4. Has the department established (a) committee(s) as Peer Educators are nominated in Districts for contemplated in Part VI E.5 (e) of Chapter 1 of the Public the smooth running of Health and Wellness Service Regulations, 2001? If so, please provide the names of programmes. the members of the committee and the stakeholder(s) that they 1. Mokoena J.D represent. 2. Nyamati T.E Yes 3. Moeti M.M 4. Seapi T.M 5. Tsheba T.P 6. Mlangeni M.M 7. Mokoena M.M 5. Has the department reviewed its employment policies and (a)HIV/AID and TB Policy practices to ensure that these do not unfairly discriminate (b) Health and Productivity Management Policy against employees on the basis of their HIV status? If so, list the Yes (c)Wellness Management Policy employment policies/practices so reviewed. All the mentioned policies do not discriminate against employees on the basis of their HIV status. 6. Has the department introduced measures to protect HIV- The policy states clearly how the Department deals positive employees or those perceived to be HIV-positive from Yes with such incidence. discrimination? If so, list the key elements of these measures. 7. Does the department encourage its employees to undergo VHCT is conducted with the help of Department of Voluntary Counselling and Testing? If so, list the results that you Yes Health periodically and confidentiality of results are have you achieved. safeguarded. 8. Has the Department developed measures/indicators to monitor These were only developed for Ophthalmology, HCT & evaluate the impact of its health promotion programme? If so, Yes and Tuberculosis. list these measures/indicators.
130 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
3.12. Labour Relations
Table 3.12.1 Collective agreements for the period 1 April 2013 and 31 March 2014
Subject matter Date
None Not applicable
Total number of Collective agreements None
The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review.
Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2013 to 31 March 2014
Outcomes of disciplinary hearings Number % of total
Correctional counselling - -
Verbal warning - -
Written warning - -
Final written warning 1 25%
Suspended without pay - -
Fine - -
Demotion - -
Dismissal 3 75%
Not guilty - -
Case withdrawn - -
Total 4 100%
Total number of Disciplinary hearings finalised 4
Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2013 to 31 March 2014
Type of misconduct Number % of total
Gross Insubordination / Gross Neglect of duties 1 13%
Gross negligence / Breach of SCM Policies 1 13%
Fraud / Misrepresentation 1 13%
Fraud 3 38%
Housing grants claim 1 13%
Misuse alcohol / Assault supervisor 1 13%
Total 8 100%
Table 3.12.4 Grievances logged for the period 1 April 2013 to 31 March 2014
Grievances Number % of Total
Number of grievances resolved 6 75%
Number of grievances not resolved 2 25%
Total number of grievances lodged 8 100%
A prosperous Free State through facilitation of sustainable infrastructure 131 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.12.5 Disputes logged with Councils for the period 1 April 2013 to 31 March 2014
Disputes Number % of Total
Number of disputes upheld 1 20%
Number of disputes dismissed 4 80%
Total number of disputes lodged 5 100%
Table 3.12.6 Strike actions for the period 1 April 2013 to 31 March 2014
Total number of persons working days lost None
Total costs working days lost None
Amount recovered as a result of no work no pay (R’000) None
Table 3.12.7 Precautionary suspensions for the period 1 April 2013 to 31 March 2014
Number of people suspended 6
Number of people whose suspension exceeded 30 days 6
Average number of days suspended 330
Cost of suspension(R’000) 1 218
Note: • Cost of Suspensions (SMS) – R937 388.00 • Cost of Suspensions (Official on salary level 3 till 11) – R280 612.00
132 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
3.13. Skills development
This section highlights the efforts of the Department with regard to skills development.
Table 3.13.1 Training needs identified for the period 1 April 2013 to 31 March 2014
Training provided within Number of the reporting period Occupational Gender Employees as Category Skills Programmes at 1 Apr 2013 Learnerships Other Total & other Short Courses
Senior officials & Female 31 - 10 - 10 Managers Male 49 - 11 - 11
Female 62 - 3 - 3 Professionals Male 51 - 7 - 7
Technicians & Female 131 - 15 - 15 associate professions Male 62 - 23 - 23
Female 179 - 18 - 18 Clerks Male 320 - 20 - 20
Service & Female 572 - 36 - 36 Sales Workers Male 562 - 25 - 25
Plant & Machine Female 1 - 25 - 25 Operators Male 17 - 25 - 25
Elementary Female 433 - 60 - 60 occupations Male 336 - 53 - 53
Female 1 409 - 167 - 167 SUB-TOTALS Male 1 397 - 164 - 164
Total 2 806 - 331 - 331
A prosperous Free State through facilitation of sustainable infrastructure 133 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.13.2 Training provided for the period 1 April 2013 to 31 March 2014
Training provided within Number of the reporting period Occupational Employees Gender Skills Category as Programmes Learnerships Other Total at 1 Apr 2013 & other Short Courses
Senior officials & Female 31 - 7 - 7 Managers Male 49 - 9 - 9
Female 62 - - - - Professionals Male 51 - 7 - 7
Technicians & Female 131 - 13 - 13 associate professions Male 62 - 20 - 20
Female 179 - 16 - 16 Clerks Male 320 - 35 - 35
Service & Female 572 - 44 - 44 Sales Workers Male 562 - 32 - 32
Plant & Machine Female 1 - - - - Operators Male 17 - 2 - 2
Elementary Female 433 - 25 - 25 occupations Male 336 - 8 - 8
Female 1 409 - 105 - 105 Sub Totals Male 1 397 - 113 - 113
Total 2 806 - 218 - 218
3.14. Injury on duty
The following tables provide basic information on injury on duty.
Table 3.14.1 Injury on duty for the period 1 April 2013 to 31 March 2014
Nature of injury on duty Number % of total
Required basic medical attention only 2 20%
Temporary Total Disablement 7 70%
Disablement - -
Fatal 1 10%
Total 10 100%
3.15. Utilisation of Consultants
The following tables relate 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 hoc basis any of the following professional services to a department against remuneration received from any source:
• The rendering of expert advice; • The drafting of proposals for the execution of specific tasks; and • The execution of a specific task which is of a technical or intellectual nature, but excludes an employee of a department.
134 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2013 to 31 March 2014
Total number of consultants Duration Contract value in Project title that worked on project (work days) Rand
Health Risk Manager 5 12 months R193 392
Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2013 to 31 March 2014 Number of consultants Percentage ownership Percentage management Project title from HDI groups that by HDI groups by HDI groups work on the project
Health Risk Manager 60% 60% 3
Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2013 to 31 March 2014
Total Number of consultants Duration Donor and contract value Project title that worked on project (Work days) in Rand
Not applicable - - -
Total Total number of projects Total individual consultants duration Total contract value in Rand Work days
Not applicable - - -
Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2013 to 31 March 2014
Number of consultants Percentage ownership by Percentage management Project title from HDI groups that HDI groups by HDI groups work on the project
Not applicable - - -
3.16. Severance Packages
Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2013 to 31 March 2014
Number of Number of Number of Number of applications applications packages Salary band applications referred to the supported by approved by received MPSA MPSA Department
Lower skilled (Levels 1-2) - - - -
Skilled Levels (Levels 3-5) - - - -
Highly skilled production (Levels 6-8) - - - -
Highly skilled supervision (Levels 9-12) - - - -
Senior management (Levels 13-16) - - - -
Total - - - -
A prosperous Free State through facilitation of sustainable infrastructure 135 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
ANNUAL REPORT 2013/14 Department of Public works Annual Report A prosperous Free State through facilitation of sustainable infrastructure
136 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
PART E: Financial Information
A prosperous Free State through facilitation of sustainable infrastructure 137 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
CONTENTS
Appropriation Statement 143
Notes to the Appropriation Statement 153
Statement of Financial Performance 155
Statement of Financial Position 156
Statement of Changes in Net Assets 157
Cash Flow Statement 158
Notes to the Annual Financial Statements (including Accounting policies) 165
Annexures (Unaudited Supplementary Information) 165
138 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
REPORT OF THE AUDITOR-GENERAL TO THE FREE STATE LEGISTATURE ON VOTE NO. 9: DEPARTMENT OF PUBLIC WORKS REPORT ON THE FINANCIAL STATEMENTS
Introduction
1. I have audited the financial statements of the Department of Public orksW set out on pages 143 to 152 which comprise the appropriation statement, the statement of financial position as at 31 March 2014, 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, comprising a summary of significant accounting policies and other explanatory information.
Accounting officer’s responsibility for the financial statements
2. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with the Modified Cash Standard (MCS) prescribed by the National Treasury, 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, 2013 (Act No. 2 of 2013) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-general’s responsibility
3. My responsibility is to express an opinion on the financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Public Works as at 31 March 2014 and its financial performance and cash flows for the year then ended, in accordance with the MCS and the requirements of the PFMA and DoRA.
Emphasis of matters
7. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Irregular expenditure 8. As disclosed in note 23 to the financial statements, the department incurred irregular expenditure of R72 017 000 (2013: R71 373 000). The irregular expenditure was as a result of payments on expired lease contracts and procurement processes not being followed for the appointment of consultants. In addition, the full extent of the irregular expenditure is still in the process of being determined.
Environmental rehabilitation liability
9. An environmental rehabilitation liability of R3 978 400 000 (2013: R3 758 243 000) is disclosed in note 17 of the financial statements. The environmental rehabilitation liability relates to quarries that the department is required to rehabilitate in future.
A prosperous Free State through facilitation of sustainable infrastructure 139 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Financial sustainability 10. Included in the accruals disclosed in note 19 to the financial statements is an amount of R102 459 000 relating to municipal services. During the current year, the department incurred expenditure of R250 627 000 for these services. The 2014-15 budget reflects an amount of R298 861 000 for the payment of municipal services, however, after taking the above shortfall into ac- count, the remaining balance of R196 402 000 will not be sufficient to settle the municipal commitments for the next financial year. This condition indicates material uncertainties related to events or conditions which may cause significant doubt upon the department’s ability to meet its financial obligations as they fall due and achievement of service delivery as outlined in the an- nual performance plan.
Restatement of corresponding figures
11. As disclosed in note 30 to the financial statements, the corresponding figures for 31 March 2013 have been restated as a result of an error discovered during the 2013-14 financial year in the financial statements of the Department of Publicorks W at, and for the year ended, 31 March 2013.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
12. In accordance with the PAA and the general notice issued in terms thereof, I report the following findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report, compliance with legislation as well as internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.
Predetermined objectives
13. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected programmes presented in the annual performance report of the department for the year ended 31 March 2014: • Programme 2: Public works infrastructure (on pages 48 to 56) • Programme 3: Expanded public works programme (on pages 57 to 61). 14. I evaluated the reported performance information against the overall criteria of usefulness and reliability.
15. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned programmes. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, mea- surable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).
16. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
17. The material findings in respect of the selected programmes are as follows:
Programme 2: Public works infrastructure Usefulness of reported performance information 18. The FMPPI requires the performance indicators must be verifiable, meaning that it must be possible to validate the processes and systems that produced the indicator. A total of 24% of the indicators were not verifiable. This was because officials respon- sible for the day-to-day execution of work were not involved in formulating performance indicators and the related technical descriptions. Programme 3: Expanded public works programme Usefulness of reported performance information
19. The FMPPI requires performance indicators must be verifiable, meaning that it must be possible to validate the processes and systems that produced the indicator. A total of 22% of the indicators were not verifiable. This was because officials responsible for the day-to-day execution of work were not involved in formulating performance indicators and the related technical descrip- tions.
140 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Additional matters 20. I draw attention to the following matters:
Achievement of planned targets 21. Refer to the annual performance report on pages 47 to 59 for information on the achievement of the planned targets for the year. This information should be considered in the context of the material findings on the usefulness of the reported perfor- mance information for the selected programmes reported in paragraphs 18 and 19 of this report.
Adjustment of material misstatements
22. I identified material misstatements in the annual performance report submitted for auditing on the reported performance infor- mation for the selected programmes. As management subsequently corrected the misstatements, I did not raise any material findings on the reliability of the reported performance information.
Compliance with legislation
23. I performed procedures to obtain evidence that the department had complied with applicable legislation regarding financial matters, financial management and other related matters. My findings on material compliance with specific matters in key legis- lation, as set out in the general notice issued in terms of the PAA, are as follows:
Expenditure management
24. Effective steps were not taken to prevent irregular expenditure, as required by section 38(1)(c)(ii) of the PFMA and treasury regulation 9.1.1.
Revenue management
25. Sufficient appropriate audit evidence could not be obtained that immovable state property was let at market-related tariffs, as required by treasury regulation 16A7.4.
Procurement and contract management
26. Contracts were awarded to bidders based on preference points that were not calculated in accordance with the requirements of the Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000) and its regulations.
Annual financial statements
27. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework, as required by section 40(1)(a) of the PFMA. Material misstatements of disclosure items identified by the auditors in the submitted financial statement were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.
Strategic planning and performance management
28. Effective, efficient and transparent systems of risk management and internal control with respect to performance information and management was not maintained as required by section 38(1)(a)(i) of the PFMA.
Internal control
29. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on the annual performance report and the findings on compliance with legislation included in this report. Leadership
30. A portion of the irregular expenditure was as a result of payments on expired lease contracts. Due to a slow response by man- agement, the department did not enter into new long-term lease contracts because it is engaged in a transformation process to seek alternative accommodation. Appropriate controls were not implemented to ensure that the necessary approval was obtained on a month-to-month basis.
31. Although advertisements for the filling of the key position of the chief director of property management have been placed, a suitable candidate has not been identified, resulting in this position being vacant since June 2013.The critical importance of
A prosperous Free State through facilitation of sustainable infrastructure 141 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
the position in the department is not realised by management. If not addressed, an unqualified audit opinion may not be sus- tainable in years to come.
Financial and performance management 32. Material adjustments were made to the financial statements, mainly as a result of the incorrect interpretation of the MCS by management regarding the valuation of immovable assets.
33. Insufficient controls over the planning process resulted in the officials involved in day-to-day execution of work not being in- volved in formulating indicators and their technical description, as a result, the definition of the technical indicators are incom- plete and ambiguous. Consequently, the performance of the department as outlined in the annual performance plan was not measurable.
OTHER REPORTS Performance audits 34. The report of the Auditor-General of South Africa on the readiness of government to report on its performance will be tabled dur- ing 2014. The Free State Department of Public Works was one of the 61 institutions audited during this audit. The performance audit focused on the following:
• The systems and processes that government departments have put in place to report on their performance
• The performance reporting guidance and oversight government departments received.
Bloemfontein
31 July 2014
142 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - 426 363 956
2 653 R’000 81 903 55 85 345 692 163 270 136 018 255
1 Actual Expenditure - - 2012/13 460 446
3 276 R’000 84 783 63 88 519 696 627 270 214 030 287
1 Final Appropriation - - % 97.7% 73.1% 99.7% 96.3% 99.2% 100.0% 100.0% 100.0% final as % of Expenditure appropriation 3 37 (4) 295 794 401 729 (98)
(339) 3 360 3 R’000 Variance 98 339 979
1 574 2 157 R’000 87 89 655 93 484 735 416 283 034 106 768
1 Actual Expenditure - - 651
1 611 2 951 R’000 89 91 380 94 213 110 128 110 735 711 283 037
1 Final Appropriation Appropriation per programme - - 12 125 (12) (125) 1 501 1 364 2013/14 R’000 (3 596) (3 733) Virement ------867
867)
5 R’000 (5 Funds Shifting of - - 388
1 623 3 076 R’000 93 247 85 97 946 283 025 740 214 108 627
1 Adjusted Appropriation Transfers and Transfers subsidies Payment for capital assets Payment for financial assets Transfers and Transfers subsidies Payment for capital assets Payment for financial assets Current payment Public Administration
2. Infrastructure Works Current payment 1.
A prosperous Free State through facilitation of sustainable infrastructure 143 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 R’000 39 949 111 703 111 255 252 255 252 255 252 151 652
1 1 1 Actual Actual Expenditure Expenditure 2012/13 2012/13
R’000 41 460 277 924 277 924 117 658 117 159 118 277 924
1 1 1 Final Final Appropriation Appropriation % 99.9% 99.9% 99.7% 99.9% final as % of Expenditure appropriation 91 78 169 4 258 R’000 Variance 569
R’000 2013/14 53 398 695 144 874 198 443
1 Actual 398 695 398 695
1 1 Actual Expenditure Expenditure 647 965
R’000 53 402 953 144 198 612
1 Final 402 953 402 953
1 1 Final Appropriation Appropriation per programme - - Appropriation 232
2 2 232 2013/14 R’000 Virement
- - 110 (110) R’000 Funds Shifting of 525 855
R’000 51 402 953 144 196 380
1 Adjusted Appropriation Public Works Public Works Programme Current payment 3. Expanded TOTAL (brought forward) TOTAL Actual amounts per statement of financial performancerevenue) (total Reconciliation with statement of financial performance Actual amounts per statement of financial performanceexpenditure) (total Payment for capital assets TOTAL
144 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - 2 363 2 527 11 500 11 313 992 255 252 500 020 158 813 268 035
R’000 1 Actual expenditure - - - 3 2012/13
2 628 13 185 314 339 277 924 508 528 171 195 268 046
1 Final R’000 Appropriation - 99.7% 99.7% 98.6% 99.9% 79.9% 98.9% 100.3% 100.0% 100.0% % Expenditure as % of final appropriation - - 1 1 38 144)
(437) 4 258 1 513 3 244 1 042 (1 R’000 Variance - 51 437 1 070 4 137 3 562 398 695 339 107 539 533 230 873 279 925
1 R’000 Actual Expenditure - - 51
1 071 5 179 3 600 234 117 402 953 337 963 541 046 279 926
1 Final R’000 Appropriation ------894)
1 894 2013/14 (1 Appropriation per economic classification R’000 Virement - - - - 51 50 468 421)
(556) (101) 5 509 (5 R’000 Funds Shifting of - - - 4 711 1 071 3 550 544 573 402 953 340 413 280 027 228 608
1 R’000 Adjusted Appropriation Goods and services Current payments Compensation of employees Interest and rent on land Transfers and Transfers subsidies Provinces and municipalities Machinery and equipment Payments for financial assets Payments for capital assets Buildings and other fixed structures Total Departmental agencies and accounts Public corporations and private enterprises Households
A prosperous Free State through facilitation of sustainable infrastructure 145 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - 98 130 363 426 2 425 4 140 10 594 67 169 85 345 R’000 Actual expenditure - - - 2012/13 160 460 121
4 211 2 995 10 722 69 850 88 519 Final R’000 Appropriation - 99.8% 90.4% 99.2% 71.3% 97.4% 99.7% 88.3% 100.0% 100.1% 100.0% % Expenditure as % of final appropriation - - 7 17 37 38 26 729 761 (59) (98) R’000 Variance 20 66 98 185 196 7 745 1 895 1 369 71 066 93 484 10 844 R’000 Actual Expenditure - 20 73 185 222
7 762 2 656 1 406 71 007 94 213 10 882 Final R’000 Appropriation - - - 153 134 (30) (116) (882) (125) (2 867) (3 733) R’000 2013/14 Virement - - - 3 50 79 (82) (50) 362)
(949) 2 311 (1 R’000 Funds Programme 1: Administration - Appropriation per sub-programme Administration - Programme 1: Shifting of - - 70 101 143 6 333 1 522 2 863 11 678 11 97 946 75 236 R’000 Adjusted Appropriation Department Current payment Transfers and subsidies Transfers Payment for capital assets Transfers and subsidies Transfers Current payment Payment for capital assets Payment for financial assets Total Current payment Detail per sub-programme 1.1 Office of the MEC Transfers and subsidies Transfers 1.2 Management/Head of Payment for capital assets 1.3 Corporate Support
146 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - 2 30 99 396 363 2 554 28 902 52 999 85 345 R’000 Actual expenditure - - - 3 32 2012/13 428 107
3 169 31 718 53 062 88 519 Final R’000 Appropriation - - 99.9% 95.6% 92.6% 71.7% 99.2% 102.0% 100.0% 100.0% % Expenditure as % of final appropriation - - - - 1 36 794 729 (98) 211)
1 207 (1 R’000 Variance - - 51 98 453 142 1 070 2 015 26 407 63 248 93 484 R’000 Actual Expenditure - - - 51 489 071 142
1 2 809 27 614 62 037 94 213 Final R’000 Appropriation ------(12) 813)
(125) 2013/14 (1 783) (1 (3 733) R’000 Virement ------8 50 51 (8) (101) R’000 Funds Programme 1: Administration - Appropriation per economic classification Administration - Programme 1: Shifting of - - - 451 150 101 1 071 2 926 29 397 63 850 97 946 R’000 Adjusted Appropriation Programme 1 Per Economic classification Households Public corporations and private enterprises Interest and rent on land Goods and services Payments for capital assets Buildings and other fixed structures Current payments Compensation of employees Transfers and subsidies Transfers Provinces and municipalities Departmental agencies and accounts Machinery and equipment Payment for financial assets Total
A prosperous Free State through facilitation of sustainable infrastructure 147 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - - 70 16 14 105 7 446 6 158 3 721 18 088 46 621 R’000 Actual expenditure - - - 17 17 2012/13 105 131
7 534 3 793 6 251 18 267 53 008 Final R’000 Appropriation - 99.8% 99.9% 99.5% 79.2% 98.3% 85.9% 86.4% 99.9% 99.4% 100.0% 100.0% % Expenditure as % of final appropriation - - - 1 3 8 12 16 18 10 14 533 R’000 Variance - 38 59 85 19 130 470 6 774 3 727 7 591 19 815 83 441 R’000 Actual Expenditure - 48 60 99 22 130 470
6 790 3 745 7 599 19 827 83 974 Final R’000 Appropriation ------(8) (4) (10) (212) R’000 Virement 2013/14 - - - - 271 (11) (26) (42) (44) 385)
(378) (262) (2 R’000 Funds Shifting of - Programme 2: Public Works Infrastructure - Appropriation per sub-programme Infrastructure - Programme 2: Public Works 48 71 64 99 156 514 4 131 7 865 9 185 19 768 83 974 R’000 Adjusted Appropriation Current payment Transfers and subsidies Transfers Transfers and subsidies Transfers Payment for capital assets Transfers and subsidies Transfers Payment for capital assets Current payment Payment for capital assets Current payment Current payment Transfers and subsidies Transfers Payment for capital assets Economic classification 2.1 Programme Support Office 2.3 Design 2.4 Construction 2.2 Planning
148 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - 164 889 1 226 1 209 7 773 018 255 398 748 127 535 268 005 130 467
1 R’000 Actual expenditure - 2012/13 231 927
1 256 1 606 8 348 030 287 399 699 129 958 268 014 131 125
1 Final R’000 Appropriation - 99.7% 68.2% 99.9% 99.9% 58.0% 100.0% 100.0% 100.0% 100.0% 126.2% % Expenditure as % of final appropriation - 1 1 27 42 55 159 (71) (339) 3 360 2 870 R’000 Variance 90 790 342 339 1 660 3 964 106 768 439 041 129 939 279 925 128 529
1 R’000 Actual Expenditure - 132 790 271
1 661 6 834 110 128 110 439 068 129 994 279 926 128 688
1 Final R’000 Appropriation - - - - - 12 125 (322) (779) 2 699 1 501 2013/14 R’000 Virement - - - 50 90 31 (48) 671) 643)
4 201 5 867 (4 (2 R’000 Funds Shifting of - 42 Programme 2: Public Works Infrastructure - Appropriation per sub-programme (Continued) Infrastructure - Programme 2: Public Works 747 842 319 1 611 134 987 108 627 279 926 125 266 439 012
1 R’000 Adjusted Appropriation Management Current payment Transfers and Transfers subsidies Transfers and Transfers subsidies Payment for capital assets Current payment Transfers and Transfers subsidies Payment for capital assets Payment for capital assets Payment for financial assets Current payment Economic classification 2.5 Maintenance 2.7 Facility Operations Total 2.6 Immoveable Asset
A prosperous Free State through facilitation of sustainable infrastructure 149 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - 131 952
2 8 47 004 268 005 018 255 442 208 249 955
1 R’000 Actual expenditure - 2012/13 200 946
2 9 53 500 030 287 268 014 446 863 249 764
1 Final R’000 Appropriation - 96.4% 99.9% 99.7% 99.9% 90.3% 100.0% 100.0% % Expenditure as % of final appropriation 1 2 49 247 210 (339) 3 190 3 360 R’000 Variance 339 109 962 578
3 1 86 018 279 925 106 768 470 264 837
1 R’000 Actual Expenditure - 111 172
3 2 89 208 110 128 110 279 926 470 825 264 886
1 Final R’000 Appropriation - - - 12 400 125 (36)
1 501 1 R’000 2013/14 Virement - - - - 460 311)
(556) 5 407 (5 R’000 Funds Shifting of - Programme 2: Public Works Infrastructure - Appropriation per economic classification Infrastructure - Programme 2: Public Works 099 587 736 926
3 1 83 801 108 627 474 279 265 478
1 R’000 Adjusted Appropriation Economic classification Total Households Transfers and subsidies Transfers Provinces and municipalities Payment for capital assets Buildings and other fixed structures Payments for financial assets Machinery and equipment Current payments Compensation of employees Goods and services
150 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - - - 10 823 962 (17)
7 164 12 19 111 710 111 151 652 R’000 Actual expenditure - - - - - 70 2012/13 602 174
5 684 13 22 117 588 117 159 118 Final R’000 Appropriation - - - - - 99.9% 80.8% 99.6% 99.9% 99.9% 100.0% % Expenditure as % of final appropriation - - - - - 8 53 38 51 19 169 R’000 Variance - - - - - 160 794 603
7 172 12 33 144 714 198 443 R’000 Actual Expenditure - - - - - 198 845 622
7 180 12 33 144 767 198 612 Final R’000 Appropriation ------68 230 (66)
2 232 2 R’000 2013/14 Virement ------10 (8) 110 (112) R’000 Funds Shifting of - - - - - 198 919 504 Programme 3: Expanded Public Works Programme - Appropriation per sub-programme Programme - Programme 3: Expanded Public Works
7 102 12 31 144 657 196 380 R’000 Adjusted Appropriation Empowerment and Compliance Monitoring Current payment Payment for capital assets Current payment Transfers and subsidies Transfers Current payment Total Payment for capital assets Current payment Transfers and subsidies Transfers Payment for capital assets Payment for capital assets Economic classification 3.1 Programme Support 3.3 Innovation and 3.2 Community development 3.4 EPWP Co-ordination 3.4 EPWP
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11 038 11 28 111 710 111 151 652 R’000 Actual expenditure 70 2012/13 947
11 513 11 29 117 588 117 159 118 Final R’000 Appropriation 99.9% 99.9% 99.8% 80.8% 100.0% % Expenditure as % of final appropriation 59 54 18 38 169 R’000 Variance 548 713 160
11 022 11 42 144 198 443 R’000 Actual Expenditure 607 198
11 040 11 42 144 767 198 612 Final R’000 Appropriation - - 277 (45)
2 2 232 R’000 2013/14 Virement - - - 110 (110) R’000 Funds Shifting of 440 085 198
11 40 Programme 3: Expanded Public Works Programme - Appropriation per economic classification Programme - Programme 3: Expanded Public Works 144 657 196 380 R’000 Adjusted Appropriation Economic classification Current payments Compensation of employees Payment for capital assets Buildings and other fixed structures Machinery and equipment Total Goods and services
152 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
1. Detail of transfers and subsidies as per Appropriation Act (after Virement):
Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-E) to the Annual Financial Statements.
2. Detail of specifically and exclusively appropriated amounts voted (after irement):V
Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.
3. Detail on payments for financial assets
Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.
4. Explanations of material variances from Amounts Voted (after Virement):
4.1 Per programme Variance as Final Actual a % of Final Appropriation Expenditure Variance Appropriation
R’000 R’000 R’000 %
Programme 1: Administration 94 213 93 484 729 0.8%
The under expenditure relate to the non-payment of advertisement of tenders, training and computer equipment.
Programme 2 : Public Works Infrastructure 1 110 128 1 106 768 3 360 0.3%
The under expenditure is as a result of a delay on invoices received for outsourced maintenance, the late award of an infrastructure project with a duration of 12 months and outstanding work on infrastructure projects.
Programme 3 : EPWP 198 612 198 443 169 0.1%
The under expenditure is as a result of outstanding invoices for finance leases.
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Variance as Final Actual 4.2 Per economic classification Variance a % of Final Appropriation Expenditure Appropriation
R’000 R’000 R’000 %
Current payments
Compensation of employees 337 963 339 107 (1 144) (0.3)%
Goods and services 541 046 539 533 1 513 0.3%
Transfers and subsidies
Provinces and municipalities 279 926 279 925 1 0.0%
Departmental agencies and accounts 1 071 1 070 1 0.1%
Households 51 51 - 0.0%
Gifts and donations 3 600 3 562 38 1.1%
Payments for capital assets
Buildings and other fixed structures 234 117 230 873 3 244 1.4%
Machinery and equipment 5 179 4 137 1 042 20.1%
Payments for financial assets - 437 (437) -
The under expenditure is due to: 1) Non-payment of advertisements of tenders, training and computer equipment. 2) Delay on invoices received for outsourced maintenance, the late award of an infrastructure project with a duration of 12 months.
Variance as Final Actual 4.3 Per conditional grant Variance a % of Final Appropriation Expenditure Appropriation
R’000 R’000 R’000 %
Prop Rate &Tax Enhancement Allocation 279 926 279 925 1 0.0%
EPWP Integrated Grant to Provinces 7 102 7 102 - 0.0%
Revenue enhancement allocation 5 407 2 688 2 719 50.3%
Infrastructure enhancement allocation 187 151 186 856 295 0.2%
The under expenditure is a result of the late award of an infrastructure project with a duration of 12 months and outstanding work on infrastructure projects.
154 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Note 2013/14 2012/13
R’000 R’000
REVENUE
Annual appropriation 1 1 402 953 1 277 924
Departmental revenue 2 - -
TOTAL REVENUE 1 402 953 1 277 924
EXPENDITURE
Current expenditure
Compensation of employees 3 339 107 313 992
Goods and services 4 539 533 500 020
Interest and rent on land 5 - 2
Total current expenditure 878 640 814 014
Transfers and subsidies 7 284 608 270 562
Expenditure for capital assets
Tangible assets 8 235 010 170 313
Total expenditure for capital assets 235 010 170 313
Payments for financial assets 6 437 363
TOTAL EXPENDITURE 1 398 695 1 255 252
SURPLUS/(DEFICIT) FOR THE YEAR 4 258 22 672
Reconciliation of Net Surplus/(Deficit) for the year
Voted funds 4 258 22 672
Annual appropriation 1 243 16 683
Conditional grants 3 015 5 989
Unconditional grants - -
SURPLUS/(DEFICIT) FOR THE YEAR 4 258 22 672
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Note 2013/14 2012/13
R’000 R’000
ASSETS
Current assets 13 859 27 178
Cash and cash equivalents 9 11 375 12 817
Prepayments and advances 10 15 1 615
Receivables 11 2 469 12 746
TOTAL ASSETS 13 859 27 178
LIABILITIES
Current liabilities 12 960 25 750
Voted funds to be surrendered to the Revenue Fund 12 4 258 22 672
Departmental revenue and NRF Receipts to be surrendered to the 13 8 700 3 070 Revenue Fund
Payables 14 2 8
TOTAL LIABILITIES 12 960 25 750
NET ASSETS 899 1 428
Represented by:
Recoverable revenue 899 1 428
TOTAL 899 1 428
156 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Note 2013/14 2012/13
R’000 R’000
Recoverable revenue
Opening balance 1 428 671
Transfers: (529) 757
Irrecoverable amounts written off 6.2 - (109)
Debts revised (27) (8)
Debts recovered (included in departmental receipts) (651) (339)
Debts raised 149 1 213
TOTAL 899 1 428
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Note 2013/14 2012/13
R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 1 440 434 1 311 042
Annual appropriated funds received 1.1 1 402 953 1 277 924
Departmental revenue received 2 37 339 33 021
Interest received 2.2 142 97
Net (increase)/decrease in working capital 11 871 (10 127)
Surrendered to Revenue Fund (54 523) (55 478)
Current payments (878 640) (814 012)
Interest paid 5 - (2)
Payments for financial assets (437) (363)
Transfers and subsidies paid (284 608) (270 562)
Net cash flow available from operating activities 15 234 097 160 498
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 8 (235 010) (170 313)
Proceeds from sale of capital assets 2.3 - 240
Net cash flows from investing activities (235 010) (170 073)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in net assets (529) 320
Net cash flows from financing activities (529) 320
Net increase/(decrease) in cash and cash equivalents (1 442) (9 255)
Cash and cash equivalents at beginning of period 12 817 22 072
Cash and cash equivalents at end of period 16 11 375 12 817
158 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
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.
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.
Basis of preparation 1 The financial statements have been prepared in accordance with the Modified Cash Standard.
Going concern 2 The financial statements have been prepared on a going concern basis.
Presentation currency
3 Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.
Rounding 4 Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).
Current year comparison with budget
5 A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.
6 Revenue
Appropriated funds
Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).
6.1 Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective.
The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.
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Departmental revenue
Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid 6.2 into the relevant revenue fund, unless stated otherwise.
Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.
Accrued 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; 6.3 and • the amount of revenue can be measured reliably.
The accrued revenue is measured at the fair value of the consideration receivable.
Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.
7 Expenditure
7.1 Compensation of employees
Salaries and wages 7.1.1 Salaries and wages are recognised in the statement of financial performance on the date of payment.
Social contributions
Social contributions made by the department in respect of current employees are recognised in the statement of financial 7.1.2 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.
Other expenditure
7.2 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.
Accrued expenditure payable
Accrued expenditure payable is recorded in the notes to the financial statements when the goods are received or, in the 7.3 case of services, when they are rendered to the department.
Accrued expenditure payable is measured at cost.
160 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
7.4 Leases
Operating leases
Operating lease payments made during the reporting period are recognised as current expenditure in the statement of 7.4.1 financial performance on the date of payment.
The operating lease commitments are recorded in the notes to the financial statements.
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.
The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions. 7.4.2
Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:
• cost, being the fair value of the asset; or
• the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest.
Cash and cash equivalents Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position. 8 For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.
Prepayments and advances Prepayments and advances are recognised in the statement of financial position when the department receives or 9 disburses the cash. Prepayments and advances are initially and subsequently measured at cost.
Loans and receivables 10 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.
Impairment of financial assets
11 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.
Payables 12 Loans and payables are recognised in the statement of financial position at cost.
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13 Capital Assets
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 is measured at fair value as at the date of acquisition. Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used. 13.1 All assets acquired prior to 1 April 2005 are recorded at R1. 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.
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. Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are measured at 13.2 fair value and where fair value cannot be determined; the movable assets are measured at R1. Movable 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 movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.
Intangible assets Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project. 13.3 Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured 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.
14 Provisions and Contingents
Provisions Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation 14.1 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.
Contingent liabilities Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises 14.2 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.
Contingent assets
14.3 Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department.
162 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Commitments
14.4 Commitments 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.
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. 15 Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery. Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.
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. 16 Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery or not condoned and is not recoverable.
Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.
Related Party Transactions The department has processes and controls in place to aid in the identification of related parties. A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control (falling under the MEC’s portfolio), or joint control.
A close family member of a person that has control over the department or is a member of the management of the department or its executive authority is also determined to be a related party of the department. Related party relationships where control exists (falling under the MEC’s control) are disclosed regardless of whether any transactions took place 17 between the parties during the reporting period.
Where transactions occurred between the Department and any one or more related parties, and those transactions were not within:
• normal supplier and/or client/recipient relationships on terms and conditions no more or less favourable than those which it is reasonable to expect the entity to have adopted if dealing with that individual entity or person in the same circumstances; and
• terms and conditions within the normal operating parameters established by the reporting entity’s legal mandate.
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Key Management Personnel Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the department. All officials from level 14 and above are considered to be key management personnel. Employees on level 13 or below acting for key management of level 14 and above during the financial year 18 are also included in the note. Remuneration paid to key management personnel includes short-term employee benefits, post-employment benefits, other long term employee benefits and termination benefits. Remuneration paid to close family members ofkey management personnel is also disclosed in the note.
Prior period errors Note 23 – Irregular Expenditure been restated with R1.825 million. This amount relates to expenditure included as Irregular Expenditure that does not meet the definition of Irregular Expenditure. Note 22 – Accrued Departmental Revenue has been restated with R3.703 million. Amounts were incorrectly recorded as debt. Note 18 – Commitments have been restated with R4.070 million due to the incorrect classification of expenditure. Note 20 – Leave Entitlement has restated with R0.002 million due to a change in the leave credits. 19 Note 27 – Movable Assets has been adjusted with R1.279 million in order to align the annual financial statement disclosure with the asset register.
Note 27.4 – Minor Assets has been adjusted with R0.705 million in order to align the annual financial statement disclosure with the asset register. Note 29 – Immovable Assets – Non-residential buildings has been adjusted with R20.641 billion. This adjustment is in line with the Modified Cash Standard where immovable assets can be valued at Cost, R1 or Fair Value. All assets acquired prior to 1 April 2005 are recorded at R1. Note 29 – Immovable Assets – Other fixed structures has been adjusted with R203.293 million in order to align the annual financial statement disclosure with the asset register.
Non-adjusting events after the reporting date 20 There are no non-adjusting events after the reporting date.
164 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
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:
2013/14 2012/13
Funds not Actual Appropriation Final requested/ Funds received Appropriation not received Received
R’000 R’000 R’000 R’000
Administration 94 218 94 218 - 88 519
Public Works Infrastructure 1 110 123 1 110 123 - 1 030 287
Expanded Public Works Programme 198 612 198 612 - 159 118
Total 1 402 953 1 402 953 - 1 277 924
1.2. Conditional grants
Note 2013/14 2012/13
R’000 R’000
Total grants received 31 479 586 397 265
Provincial grants included in Total Grants received 472 484 123 067
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2. Departmental revenue
Note 2013/14 2012/13
R’000 R’000
Sales of goods and services other than capital assets 2.1 36 986 32 340
Interest, dividends and rent on land 2.2 142 97
Sales of capital assets 2.3 - 240
Transactions in financial assets and liabilities 2.4 353 681
Total revenue collected 37 481 33 358
Less: Own revenue included in appropriation 13 37 481 33 358
Departmental revenue collected - -
2.1. Sales of goods and services other than capital assets Note 2013/14 2012/13
2 R’000 R’000
Sales of goods and services produced by the department 36 883 32 339
Sales by market establishment 36 040 31 739
Other sales 843 600
Sales of scrap, waste and other used current goods 103 1
Total 36 986 32 340
2.2. Interest, dividends and rent on land Note 2013/14 2012/13
2 R’000 R’000
Interest 142 97
Total 142 97
2.3. Sale of capital assets Note 2013/14 2012/13
2 R’000 R’000
Tangible assets - 240
Buildings and other fixed structures 29.2 - 240
Total - 240
2.4. Transactions in financial assets and liabilities
Note 2013/14 2012/13
2 R’000 R’000
Receivables 283 450
Other Receipts including Recoverable Revenue 70 231
Total 353 681
166 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
3. Compensation of employees
3.1. Salaries and Wages
Note 2013/14 2012/13
R’000 R’000
Basic salary 225 695 207 998
Performance award 5 199 4 280
Service Based 935 575
Compensative/circumstantial 6 978 4 634
Periodic payments 42 -
Other non-pensionable allowances 51 030 48 744
Total 289 879 266 231
3.2. Social contributions
Note 2013/14 2012/13
R’000 R’000
Employer contributions
Pension 27 078 25 300
Medical 22 040 22 351
Bargaining council 110 110
Total 49 228 47 761
Total compensation of employees 339 107 313 992
Average number of employees 2 246 2 311
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4. Goods and services
Note 2013/14 2012/13
R’000 R’000
Administrative fees 91 127
Advertising 1 198 1 905
Minor assets 4.1 394 766
Bursaries (employees) 1 213 1 407
Catering 581 588
Communication 3 954 3 828
Computer services 4.2 2 881 2 634
Consultants, contractors and agency/outsourced services 4.3 51 003 42 590
Entertainment 98 164
Audit cost – external 4.4 7 065 5 965
Fleet services 6 337 6 443
Inventory 4.5 3 192 2 236
Consumables 4.6 2 188 1 958
Operating leases 184 316 171 266
Property payments 4.7 262 869 244 082
Rental and hiring 2 -
Transport provided as part of the departmental activities 418 142
Travel and subsistence 4.8 10 787 10 591
Venues and facilities 89 174
Training and development 763 2 944
Other operating expenditure 4.9 94 210
Total 539 533 500 020
It is noted to the reader of the Annual Financial Statements that the comparative amount regarding kilometer charges for Government Garage vehicles were reclassified from Travel and Subsistence to Fleet Services.
4.1. Minor assets
Note 2013/14 2012/13
4 R’000 R’000
Tangible assets 394 766
Machinery and equipment 394 766
Total 394 766
168 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
4.2. Computer services
Note 2013/14 2012/13
4 R’000 R’000
SITA computer services 926 883
External computer service providers 1 955 1 751
Total 2 881 2 634
4.3. Consultants, contractors and agency/outsourced services
Note 2013/14 2012/13
4 R’000 R’000
Business and advisory services 6 215 7 568
Infrastructure and planning - 15
Legal costs 1 104 907
Contractors 43 673 34 081
Agency and support/outsourced services 11 19
Total 51 003 42 590
4.4. Audit cost – External
Note 2013/14 2012/13
4 R’000 R’000
Regularity audits 7 065 5 965
Total 7 065 5 965
4.5. Inventory
Note 2013/14 2012/13
4 R’000 R’000
Clothing material and accessories 981 782
Materials and supplies 2 211 1 454
Total 3 192 2 236
It is noted to the reader or the Annual Financial Statements that the comparative figures for Inventory and Consumables have been adjusted. R1 957 558.25 was reclassified from Inventory to Consumables. Goods purchased and held specifically for executing the service delivery mandate of the department should be classified as Inventory and the rest as Consumables.
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4.6. Consumables
Note 2013/14 2012/13
4 R’000 R’000
Consumable supplies 405 716
Household supplies 25 13
IT consumables 317 631
Other consumables 63 72
Stationery, printing and office supplies 1 783 1 242
Total 2 188 1 958
It is noted to the reader or the Annual Financial Statements that the comparative figures for Inventory and Consumables have been adjusted. R1 957 558.25 was reclassified from Inventory to Consumables. Goods purchased and held specifically for executing the service delivery mandate of the department should be classified as Inventory and the rest as Consumables.
4.7. Property payments
Note 2013/14 2012/13
4 R’000 R’000
Municipal services 250 626 224 503
Other 12 243 19 579
Total 262 869 244 082
4.8. Travel and subsistence
Note 2013/14 2012/13
4 R’000 R’000
Local 10 465 10 055
Foreign 322 536
Total 10 787 10 591
4.9. Other operating expenditure
Note 2013/14 2012/13
4 R’000 R’000
Professional bodies, membership and subscription fees 5 -
Resettlement costs 80 199
Other 9 11
Total 94 210
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5. Interest and rent on land Note 2013/14 2012/13
R’000 R’000
Interest paid - 2
Total - 2
6. Payments for financial assets Note 2013/14 2012/13
R’000 R’000
Other material losses written off 6.1 - 110
Debts written off 6.2 437 253
Total 437 363
6.1. Other material losses written off Note 2013/14 2012/13
6 R’000 R’000
Nature of losses
Losses - 110
Total - 110
6.2. Debts written off Note 2013/14 2012/13
6 R’000 R’000
Recoverable Revenue Written-off
Leave without pay / Leave Gratuity - 13
Salary deduction - 1
Salary overpayment - 56
Creditors Debt(Suppliers) - 39
Total - 109
Other debt written off
Leave without pay 11 55
Salary deduction 2 7
Salary overpayment 119 72
Telephone Debt 3 2
Tax 7 7
Subsidised Vehicle - 1
Bursaries/Deductions 295 -
Total 437 144
Total debt written off 437 253
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7. Transfers and subsidies
2013/14 2012/13
R’000 R’000
Note
Provinces and municipalities 32, Annex 1A 279 925 268 005
Departmental agencies and accounts Annex 1B 1 070 -
Households Annex 1C 3 542 2 527
Gifts, donations and sponsorships made Annex 1E 71 30
Total 284 608 270 562
8. Expenditure for capital assets
Note 2013/14 2012/13
R’000 R’000
Tangible assets 235 010 170 313
Buildings and other fixed structures 29.1 230 873 158 813
Machinery and equipment 27.1 4 137 11 500
Total 235 010 170 313
8.1. Analysis of funds utilised to acquire capital assets – 2013/14
Voted Aid assistance Total funds
R’000 R’000 R’000
Tangible assets 235 010 - 235 010
Buildings and other fixed structures 230 873 - 230 873
Machinery and equipment 4 137 - 4 137
Total 235 010 - 235 010
8.2. Analysis of funds utilised to acquire capital assets – 2012/13
Voted Aid assistance Total funds
R’000 R’000 R’000
Tangible assets 170 313 - 170 313
Buildings and other fixed structures 158 813 - 158 813
Machinery and equipment 11 500 - 11 500
Total 170 313 - 170 313
172 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
8.3. Finance lease expenditure included in Expenditure for capital assets
Note 2013/14
R’000
Tangible assets 2 208
Machinery and equipment 2 208
Total 2 208
9. Cash and cash equivalents
Note 2013/14 2012/13
R’000 R’000
Consolidated Paymaster General Account 11 275 12 724
Cash on hand 100 93
Total 11 375 12 817
There are no significant cash and cash equivalent balances held by the department that are not available for use. There are no undrawn borrowing facilities available for the future operating activities or to settle capital commitments.
10. Prepayments and advances
Note 2013/14 2012/13
R’000 R’000
Travel and subsistence 15 46
Prepayments - 1 569
Total 15 1 615
A prosperous Free State through facilitation of sustainable infrastructure 173 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
11. Receivables 2013/14 2012/13
R’000 R’000 R’000 R’000 R’000
Less than One to three Older than Total Total one year years three years Note
Claims 11.1, 187 - - 187 9 783 recoverable Annex 3
Recoverable 11.2 184 - - 184 158 expenditure
Staff debt 11.3 530 779 789 2 098 2 805
Total 901 779 789 2 469 12 746
It is noted to the reader or the Annual Financial Statements that the comparative figure for Other Debtors has been restated with R437 930.19. The amount was reclassified to the Statement of Changes in Net Assets.
11.1. Claims recoverable Note 2013/14 2012/13
11 R’000 R’000
National departments - 2
Provincial departments 119 8 993
Public entities 68 788
Total 187 9 783
11.2. Recoverable expenditure (disallowance accounts) Note 2013/14 2012/13
11 R’000 R’000
Tax in arrears-over-/Under recovery of tax deducted from officials’ 1 1 salaries
LBS and site deducted from employees salary to be transferred 183 157 to SARS
Total 184 158
11.3. Staff debt Note 2013/14 2012/13 11 R’000 R’000 State guarantee debt 12 13 Telephone debt 1 2 Ex-employee debt 1 044 1 133 Employee debt 380 364 Losses/Damages debt 52 435 Subsidised vehicle debt - 6 Breach of contract debt 609 852 Total 2 098 2 805
174 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
11.4. Impairment of receivables Note 2013/14 2012/13
R’000 R’000
Estimate of impairment of receivables 1 236 2 380
Total 1 236 2 380
12. Voted funds to be surrendered to the Revenue Fund
Note 2013/14 2012/13
R’000 R’000
Opening balance 22 672 19 130
Transfer from statement of financial performance (as restated) 4 258 22 672
Paid during the year (22 672) (19 130)
Closing balance 4 258 22 672
13. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
Note 2013/14 2012/13
R’000 R’000
Opening balance 3 070 6 060
Own revenue included in appropriation 2 37 481 33 358
Paid during the year (31 851) (36 348)
Closing balance 8 700 3 070
14. Payables – current
Note 2013/14 2012/13
R’000 R’000
Advances received 14.1 - 8
Clearing accounts 14.2 2 -
Total 2 8
14.1. Advances received Note 2013/14 2012/13
14 R’000 R’000
Public entities Annex 7 - 8
Total - 8
A prosperous Free State through facilitation of sustainable infrastructure 175 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
14.2. Clearing accounts Note 2013/14 2012/13
14 R’000 R’000
Pension fund contributions deducted from employees’ salaries to be paid over to the respective pension funds 2 -
Total 2 -
15. Net cash flow available from operating activities
Note 2013/14 2012/13
R’000 R’000
Net surplus/(deficit) as per Statement of Financial 4 258 22 672 Performance
Add back non cash/cash movements not deemed operating 229 839 137 826 activities
(Increase)/decrease in receivables – current 10 277 (9 776)
(Increase)/decrease in prepayments and advances 1 600 30
Increase/(decrease) in payables – current (6) (381)
Proceeds from sale of capital assets - (240)
Expenditure on capital assets 235 010 170 313
Surrenders to Revenue Fund (54 523) (55 478)
Own revenue included in appropriation 37 481 33 358
Net cash flow generated by operating activities 234 097 160 498
16. Reconciliation of cash and cash equivalents for cash flow purposes
Note 2013/14 2012/13
R’000 R’000
Consolidated Paymaster General account 11 275 12 724
Cash on hand 100 93
Total 11 375 12 817
176 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
17. Contingent liabilities and contingent assets
Note 2013/14 2012/13
R’000 R’000
Liable to
Claims against the department Annex 2 51 210 50 881
Environmental rehabilitation liability Annex 2 3 978 400 3 758 243
Total 4 029 610 3 809 124
The Environmental Rehabilitation Liability for the 2013/2014 financial year has been created based on the rehabilitation cost of R399 124.95, per hectare. An environmental expert, EnviroWorks, calculated the cost per hectare. No legal fees were included in the claims against the Department, as the legal fees cannot be reliably estimated. Due to the sensitive nature of the claims, the probability of the outcome cannot be disclosed. The implementation of the Policy and Procedure on Incapacity Leave and Ill-health Retirement (PILIR) was suspended for part of the financial year. PILIR provides for the appointment of a Panel of Accredited Health Risk Managers, by the Department of Public Service and Administration, as service providers available to a department to investigate and assess the applications made by employees. The appointment of these service providers was delayed due to a legal challenge brought to the High Court against the appointment process. Therefore for the first half of the financial year no timeous decision could be made on the validity of the incapacity and/or ill-health retirement applications received from employees. Although the Panel was formally established on 1 November 2013 there is a possibility that amounts paid to employees on incapacity and/or ill-health retirement may be recoverable if the applications, made in the first part of the financial year, are not subsequently recommended by the service providers. The Department has nine cases that still need to be investigated.
18. Commitments Note 2013/14 2012/13
R’000 R’000
Current expenditure
Approved and contracted 3 734 26 137
Approved but not yet contracted 27 311
3 761 26 448
Capital expenditure
Approved and contracted 112 583 204 319
Approved but not yet contracted - 47
112 583 204 366
Total Commitments 116 344 230 814
Included in the above is a total of R101 116 000 that relates to long-term works projects. This amount represents the total commitments for these long-term projects payable within the next year and beyond. It is noted to the reader of the Annual Financial Statements that the comparative figure for commitments has been restated with R4.070 million due to the incorrect classification of expenditure.
A prosperous Free State through facilitation of sustainable infrastructure 177 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
19. Accruals and payables not recognised 2013/14 2012/13
R’000 R’000
Listed by economic classification
30 Days 30+ Days Total Total
Goods and services 34 360 75 099 109 459 44 402
Interest and rent on land - - - -
Transfers and subsidies 128 661 789 10 222
Capital assets 126 60 186 13 191
Other - - - -
Total 34 614 75 820 110 434 67 815
Note 2013/14 2012/13
R’000 R’000
Listed by programme level
Programme 1: Administration 1 134 2 181 Programme 2: Public Works Infrastructure 109 295 65 621 Programme 3: Expanded Public Works Programme 5 13
Total 110 434 67 815
R102 459 590.90 of the Accruals relates to Municipal Accounts that were outstanding at year-end.
Note 2013/14 2012/13
R’000 R’000
Annex Confirmed balances with other departments - 160 4
Total - 160
178 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
20. Employee benefits Note 2013/14 2012/13
R’000 R’000
Leave entitlement 14 857 15 054
Service bonus (Thirteenth cheque) 9 230 8 867
Capped leave commitments 21 816 22 338
Other - 3 771
Total 45 903 50 030
It should be noted to the reader of the Annual Financial Statements that the current year figure for leave entitlement includes a negative amount of R463 990.93 (2012/2013: R528 820.30) that relates to negative leave balances that existed as at 31 March 2014. The prior year figure for capped leave commitments includes a negative amount of R635.54 that relates to negative leave balances that existed as at 31 March 2013. It is noted to the reader or the Annual Financial Statements that the comparative figure for Leave Entitlement has been restated with R2 075.10.
21. Lease commitments
21.1. Operating leases expenditure Buildings and Machinery and other fixed Total equipment 2013/14 structures
Not later than 1 year 100 644 3 366 104 010
Later than 1 year and not later than 5 years 319 792 4 114 323 906
Later than five years 163 556 - 163 556
Total lease commitments 583 992 7 480 591 472
Buildings and Machinery and other fixed Total equipment 2012/13 structures
Not later than 1 year 96 771 3 773 100 544
Later than 1 year and not later than 5 years 317 591 6 724 324 315
Later than five years 150 073 50 150 123
Total lease commitments 564 435 10 547 574 982
The Department rents 105 office buildings as part of its mandate to provide accommodation to other Departments in the Province. The escalation rate applicable to these leases range from 7.5% to 10%. The Department rents 3 photo copy machines over a lease term of 36 months. It is noted to the reader or the Annual Financial Statements that the comparative figure for Operating Leases – Machinery & Equipment has been restated with R1.293 million. The prior year figure for the vehicles rented from Fleet Management was determined by calculating the commitment using the Present Value factor. No asset is sub-leased at fair value. All buildings are provided to Provincial Government Departments to occupy free of charge.
A prosperous Free State through facilitation of sustainable infrastructure 179 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
21.2. Finance leases expenditure Buildings and Machinery and other fixed Total equipment 2013/14 structures
Not later than 1 year - 1 848 1 848
Later than 1 year and not later than 5 years - 599 599
Later than five years - - -
Total lease commitments - 2 447 2 447
Buildings and Machinery and other fixed Total equipment 2012/13 structures
Not later than 1 year - 1 891 1 891
Later than 1 year and not later than 5 years - 2 357 2 357
Later than five years - - -
Total lease commitments - 4 248 4 248
The Department rents 36 photo copy machines over a lease term of 36 months. 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.
21.3. Operating lease revenue
Buildings and Machinery and other fixed Total equipment 2013/14 structures
Not later than 1 year 7 892 - 7 892
Later than 1 year and not later than 5 years 26 072 - 26 072
Later than five years 1 - 1
Total operating lease revenue receivable 33 965 - 33 965
Buildings and Machinery and other fixed Total equipment 2012/13 structures
Not later than 1 year 521 - 521
Later than 1 year and not later than 5 years 94 - 94
Later than five years 1 - 1
Total operating lease revenue receivable 616 - 616 22. Accrued departmental revenue
180 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
Note 2013/14 2012/13
R’000 R’000
Interest, dividends and rent on land 6 371 6 270
Total 6 371 6 270
It is noted that the current year figure for Property Receivables include a negative amount of R82 681.29 (2012/2013: R140 676.40) that relates to negative balances that existed as at 31 March 2014. It is noted to the reader or the Annual Financial Statements that the comparative figures for Accrued Departmental Revenue has been restated with R3.703 million in order to align the Annual Financial Statements disclosure with the Receivables Age Analysis.
22.1. Analysis of accrued departmental revenue Note 2013/14 2012/13
R’000 R’000
Opening balance 6 270 19 146
Less: amounts received (32 221) (20 022)
Add: amounts recognised 34 676 25 732
Less: amounts written-off/reversed as irrecoverable 22.2 (2 354) (18 586)
Closing balance 6 371 6 270
22.2. Accrued department revenue written off Note 2013/14 2012/13
22.1 R’000 R’000
Nature of losses
Write-off of outstanding balances - Thaba Nchu Traffic Training - 346 College Kitchen
Write-off of debt in respect of Prefabricated Houses - 1 725
Write-off of outstanding debt 2 354 11 937
Write-off of outstanding debt and SAIMR - 4 578
Total 2 354 18 586
Outstanding debt is written-off when the delegated official is convinced that: • Recovery of the debt is uneconomical. • Recovery would 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.
A prosperous Free State through facilitation of sustainable infrastructure 181 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
22.3. Impairment of accrued departmental revenue Note 2013/14 2012/13
R’000 R’000
Estimate of impairment of accrued departmental revenue 2 303 2 325
Total 2 303 2 325
23. Irregular expenditure
23.1. Reconciliation of irregular expenditure
Note 2013/14 2012/13
R’000 R’000
Opening balance 24 677 125 340
Add: Irregular expenditure – relating to prior year - -
Add: Irregular expenditure – relating to current year 23.2 72 017 71 373
Less: Prior year amounts condoned 23.3 (257) (166 936)
Less: Current year amounts condoned - -
Less: Amounts recoverable (not condoned) - -
Less: Amounts not recoverable (not condoned) - (5 100)
Irregular expenditure awaiting condonation 96 437 24 677
Analysis of awaiting condonation per age classification
Current year 72 017 21 021
Prior years 24 420 3 656
Total 96 437 24 677
It is noted to the reader of the Annual Financial Statements that the 2012/2013 opening balance for Irregular Expenditure has been restated with R1.482 million. This amount relates to expenditure included in the opening balance that does not meet the definition of Irregular Expenditure. It is noted to the reader of the Annual Financial Statements that the Irregular Expenditure incurred during the 2012/2013 financial year has been restated with R0.343 million. This amount relates to expenditure included as Irregular Expenditure that does not meet the definition of Irregular Expenditure.
182 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
23.2. Details of irregular expenditure – current year
Incident Disciplinary steps taken/criminal proceedings 2013/14
R’000
Rentals on expired property lease contracts Submitted for Condonement by National Treasury 66 835
Tarfix – Court Case Under Investigation 593
Cost Containment – Accommodation Under Investigation 19
Cost Containment - Travel Claims Under Investigation 748
Expired Contracts - 3G & Cell Phones Under Investigation 411
Appointment of Consultants Under Investigation 378
Appointment of Contractors Under Investigation 3 033
Total 72 017
23.3. Details of irregular expenditure condoned
Incident Condoned by (condoning authority) 2013/14
R’000
MEC Budget Speech Acting CEO: Provincial Treasury (8/7/2013) (257)
Total (257)
23.4. Details of irregular expenditures under investigation
Incident 2013/14
R’000
PPP points not awarded: DMZ Construction (Completed - SCM officials to be held accountable. 83 Referred to HR) Three quotations not obtained: Scoreprops (Completed - Official to be held accountable. 297 Referred to HR) Cleaning (Completed - Disciplinary steps to be taken. Referred to HR) 21 Catering (Completed - Follow up of misconduct. Referred to HR) 4 Non-comp of SCM regulations (Completed - Misconduct. Referred to HR) 495 Procurement & contract management / 3 quotations not obtained 25 Cheque payment exceed R2 000 without Prov TR approval (Completed - normal remedial 20 proses) Operating leases - procurement process (Further handling) 1 495 Overpayment / Appointment: Bultfontein Airstrip 3 415 Pre-payments: Mendelow-Jacobs Trust/Tarfix (completed - court case) 593 Cost Containment - Accommodation 19 Cost Containment - Travel Claims 748 Expired Contracts - 3G & Cell Phones 411 Appointment of Consultants 378 Appointment of Contractors 3 033 Total 11 037
A prosperous Free State through facilitation of sustainable infrastructure 183 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
24. Fruitless and wasteful expenditure
24.1. Reconciliation of fruitless and wasteful expenditure
Note 2013/14 2012/13
R’000 R’000
Opening balance 88 1 063
Fruitless and wasteful expenditure – relating to current year - 13
Less: Amounts resolved - (988)
Fruitless and wasteful expenditure awaiting resolution 88 88
24.2. Analysis of awaiting resolution per economic classification 2013/14 2012/13
R’000 R’000
Current 88 88
Total 88 88
25. Key management personnel
No. of 2013/14 2012/13 Individuals
R’000 R’000
Political office bearers 1 (1) 1 726 1 677
Officials:
Level 15 to 16 2 (3) 2 430 1 822
Level 14 7 (7) 5 276 5 078
Family members of key management personnel 1 (0) 199 -
Total 9 631 8 577
26. Non-adjusting events after reporting date
2013/14
Nature of event R’000
No non-adjusting events after reporting date -
Total -
184 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
27. Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Curr Year Adjustments Opening to prior year Closing balance balances Additions Disposals Balance
R’000 R’000 R’000 R’000 R’000
HERITAGE ASSETS 96 - - - 96
Heritage assets 96 - - - 96
MACHINERY AND EQUIPMENT 31 728 1 279 1 929 63 34 873
Transport assets - 15 - - 15
Computer equipment 15 208 402 1 498 32 17 076
Furniture and office equipment 11 846 672 413 - 12 931
Other machinery and equipment 4 674 190 18 31 4 851
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 31 824 1 279 1 929 63 34 969
At the reporting date, 324 movable tangible capital assets with a carrying value R4,044 million are under investigation. It is noted to the reader of the Annual Financial Statements that the opening balance for movable tangible capital assets has been adjusted with R1.279 million, in order to align the annual financial statement disclosure with the asset register.
A prosperous Free State through facilitation of sustainable infrastructure 185 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
27.1. Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
(Capital Work Received in Progress current, not current paid costs and (Paid current finance lease year, received Cash Non-cash payments) prior year) Total
R’000 R’000 R’000 R’000 R’000
HERITAGE ASSETS - - - - -
Heritage assets - - - - -
MACHINERY AND EQUIPMENT 4 137 - (2 208) - 1 929
Transport assets - - - - -
Computer equipment 1 498 - - - 1 498
Furniture and office equipment 2 621 - (2 208) - 413
Other machinery and equipment 18 - - - 18
TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 4 137 - (2 208) - 1 929
27.2. Disposals
DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Transfer out or Cash destroyed or Received Sold for cash scrapped Total disposals Actual
R’000 R’000 R’000 R’000
HERITAGE ASSETS - - - -
Heritage assets - - - -
MACHINERY AND EQUIPMENT 24 39 63 1
Transport assets - - - -
Computer equipment - 32 32 -
Furniture and office equipment - - - -
Other machinery and equipment 24 7 31 1
TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 24 39 63 1
186 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
27.3. Movement for 2012/13 MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013 Curr Year Adjustments Opening to prior year Closing balance balances Additions Disposals Balance
R’000 R’000 R’000 R’000 R’000
HERITAGE ASSETS 22 74 - - 96
Heritage assets 22 74 - - 96
MACHINERY AND EQUIPMENT 23 539 (1 090) 10 268 989 31 728
Transport assets - - - - -
Computer equipment 13 836 (439) 2 081 270 15 208
Furniture and office equipment 6 433 (486) 6 437 538 11 846
Other machinery and equipment 3 270 (165) 1 750 181 4 674
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 23 561 (1 016) 10 268 989 31 824
27.4. Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Machinery Intangible Heritage and Total assets Assets equipment
R’000 R’000 R’000 R’000
Opening balance - 15 14 331 14 346
Curr Year Adjustments to Prior Year balances 3 12 690 705
Additions - - 394 394
Disposals - - 85 85
TOTAL MINOR ASSETS 3 27 15 330 15 360
Machinery Intangible Heritage and Total assets Assets equipment
Number of R1 minor assets - 7 1 279 1 286
Number of minor assets at cost 1 22 11 698 11 721
TOTAL NUMBER OF MINOR ASSETS 1 29 12 977 13 007
At the reporting date, 1 292 movable tangible capital assets with a carrying value R1.482 million are under investigation. It is noted to the reader of the Annual Financial Statements that the opening balance for Minor Assets has been adjusted with R0.705 million, in order to align the annual financial statement disclosure with the asset register.
A prosperous Free State through facilitation of sustainable infrastructure 187 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Machinery Intangible Heritage and Total assets assets equipment
R’000 R’000 R’000 R’000
Opening balance 1 19 15 498 15 518
Curr Year Adjustments to Prior Year balances (1) (4) (835) (840)
Additions - - 783 783
Disposals - - 1 115 1 115
TOTAL MINOR ASSETS - 15 14 331 14 346
Machinery Intangible Heritage and Total assets assets equipment
Number of R1 minor assets - 1 956 957
Number of minor assets at cost - 11 11 306 11 317
TOTAL NUMBER OF MINOR ASSETS - 12 12 262 12 274
27.5. Movable assets written off
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2014
Machinery Intangible Heritage and Total assets assets equipment
R’000 R’000 R’000 R’000
Assets written off - - 39 39
TOTAL MOVABLE ASSETS WRITTEN OFF - - 39 39
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED 31 MARCH 2013
Machinery Intangible Heritage and Total assets assets equipment
R’000 R’000 R’000 R’000
Assets written off - - - -
TOTAL MOVABLE ASSETS WRITTEN OFF - - - -
188 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
28. Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Current Year Opening Adjust-ments Closing Additions Disposals balance to prior year Balance balances
R’000 R’000 R’000 R’000 R’000
SOFTWARE 260 - - - 260
TOTAL INTANGIBLE CAPITAL 260 - - - 260 ASSETS
28.1. Additions
ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Received (Develop- current year, ment work in not paid Cash Non-Cash Total progress – (Paid current current costs) year, received prior year)
R’000 R’000 R’000 R’000 R’000
SOFTWARE - - - - -
TOTAL ADDITIONS TO INTANGIBLE - - - - - CAPITAL ASSETS
28.2. Disposals
DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Transfer out Cash Sold for cash or destroyed Total disposals Received or scrapped Actual
R’000 R’000 R’000 R’000
SOFTWARE - - - -
TOTAL DISPOSALS OF INTANGIBLE CAPITAL - - - - ASSETS
A prosperous Free State through facilitation of sustainable infrastructure 189 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
28.3. Movement for 2012/13
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Current Year Opening Adjust-ments Closing Additions Disposals balance to prior year Balance balances
R’000 R’000 R’000 R’000 R’000
SOFTWARE 1 067 (807) - - 260
TOTAL INTANGIBLE CAPITAL 1 067 (807) - - 260 ASSETS
29. Immovable Tangible Capital Assets
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Curr Year Opening Adjust-ments Closing Additions Disposals balance to prior year Balance balances
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED 60 149 049 (20 843 937) 326 856 - 39 631 968 STRUCTURES
Dwellings - - - - -
Non-residential buildings 23 093 886 (20 640 644) 326 856 - 2 780 098
Other fixed structures 37 055 163 (203 293) - - 36 851 870
TOTAL IMMOVABLE TANGIBLE 60 149 049 (20 843 937) 326 856 - 39 631 968 CAPITAL ASSETS
It is noted to the reader of the Annual Financial Statements that the opening balance for immovable tangible capital assets has been adjusted with R20 843 937 445.71. This adjustment is in line with the Modified Cash Standard where immovable assets can be valued at Cost, R1 or Fair Value. All assets acquired before 1 April 2005 are valued at R1.
190 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
29.1. Additions
ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
(Capital Work Received in Progress current, not current paid Cash Non-cash Total costs and (Paid current finance lease year, received payments) prior year)
R’000 R’000 R’000 R’000 R’000
BUILDING AND OTHER FIXED 230 873 326 856 (230 873) - 326 856 STRUCTURES
Dwellings - - - - -
Non-residential buildings 230 873 326 856 (230 873) - 326 856
Other fixed structures - - - - -
TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL 230 873 326 856 (230 873) - 326 856 ASSETS
Non-cash additions represent S.42 transfers by Departments for improvements to provincial buildings. This represents 13 projects / improvements that have been accepted for transfer relating to capacity improvement to provincial buildings that are in the name of the province and the Department is the designated custodian as at 31 March 2014. It also includes projects completed in the current financial year by the Department.
29.2. Disposals
DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Transfer out Cash Total Sold for cash or destroyed Received disposals or scrapped Actual
R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED - - - - STRUCTURES
Dwellings - - - -
Non-residential buildings - - - -
Other fixed structures - - - -
TOTAL DISPOSALS OF IMMOVABLE - - - - TANGIBLE CAPITAL ASSETS
A prosperous Free State through facilitation of sustainable infrastructure 191 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
29.3. Movement for 2012/13
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Curr Year Opening Adjust-ments Closing Additions Disposals balance to prior year Balance balances
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED 42 583 765 17 454 611 110 685 12 60 149 049 STRUCTURES
Dwellings - - - - -
Non-residential buildings 11 300 200 11 684 106 109 592 12 23 093 886
Other fixed structures 31 283 565 5 770 505 1 093 - 37 055 163
TOTAL IMMOVABLE TANGIBLE 42 583 765 17 454 611 110 685 12 60 149 049 CAPITAL ASSETS
29.4. Immovable assets valued at R1
IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2014
Buildings and Heritage Land and other fixed Total assets subsoil assets structures
R’000 R’000 R’000 R’000
R1 Immovable assets 3 942 - 417 4 359
TOTAL 3 942 - 417 4 359
IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2013
Buildings and Heritage Land and Total other fixed assets subsoil structures assets
R’000 R’000 R’000 R’000
R1 Immovable assets 11 - - 11
TOTAL 11 - - 11
192 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
30. Prior period errors
30.1. Correction of prior period error for secondary information Note 2012/13
R’000
The comparative amounts in Note 23 were restated as follows: 23
Irregular expenditure – Opening Balance (1 482)
Irregular expenditure – relating to current year (343)
Net effect on the note (1 825)
Irregular Expenditure has been restated with R1.825 million. This amount relates to expenditure included as Irregular Expenditure that does not meet the definition of Irregular Expenditure.
The comparative amounts in Note 22 were restated as follows: 22
Accrued Departmental Revenue – Interest, dividends and rent on land (3 703)
Net effect on the note (3 703)
Accrued Departmental Revenue has been restated with R3.703 million. Amounts were incorrectly recorded as debt.
The comparative amounts in Note 18 were restated as follows: 18
Capital Expenditure – Approved and Contracted 4 070
Net effect on the note 4 070
Commitments have been restated with R4.070 million due to the incorrect classification of expenditure.
The comparative amounts in Note 20 were restated as follows: 20
Employee Benefits – Leave Entitlement 2
Net effect on the note 2
Leave Entitlement has restated with R0.002 million due to a change in the leave credits.
The comparative amounts in Note 27 were restated as follows: 27
Major Assets – Machinery and Equipment 1 279
Net effect on the note 1 279
Movable Assets has been adjusted with R1.279 million in order to align the annual financial statement disclosure with the asset register.
A prosperous Free State through facilitation of sustainable infrastructure 193 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
30. Prior period errors (Continued)
30.1. Correction of prior period error for secondary information (Continued)
Note 2012/13
R’000
The comparative amounts in Note 27.4 were restated as follows: 27.4
Minor Assets 705
Net effect on the note 705
Minor Assets has been adjusted with R0.705 million in order to align the annual financial statement disclosure with the asset register.
The comparative amounts in Note 29 were restated as follows: 29
Immovable Assets – Non-residential buildings (20 640 644)
Immovable Assets – Other fixed structures (203 293)
Net effect on the note (20 843 937)
Immovable Assets – Non-residential buildings has been adjusted with R20.641 billion. This adjustment is in line with the Modified Cash Standard where immovable assets can be valued at Cost, R1 or Fair Value.
Immovable Assets – Other fixed structures has been adjusted with R203.293 million in order to align the annual financial statement disclosure with the asset register.
194 A prosperous Free State through facilitation of sustainable infrastructure 2013
Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
1 966 1
5 377 5
115 928 115
391 276 391
268 005 268
R’000
Amount
by spent
department
2012/13
2 800 2
6 184 6
of
Act
R’000
397 265 397
268 014 268
120 267 120
Division
Revenue
49.7%
99.8%
%
100.0%
100.0%
of %
funds
by spent
available available
department
-
1
295
3 015 3
2 719 2
R’000
SPENT
Under / / Under
(Overspending)
2 688 2
7 102 7
476 571 476
279 925 279
186 856 186
R’000
Amount
by spent
department
5 407 5
7 102 7
by
479 586 479
279 926 279
187 151 187
R’000
Amount
received
department
926 926
5 407 5
7 102 7
Total
479 586 479
R’000
279
187 151 187
Available
-
-
-
-
-
R’000
Other Other
Adjustments
-
-
178)
200)
978)
(4
(1
(2
R’000
DORA
Adjustments
GRANT ALLOCATION GRANT
-
-
-
-
-
Roll
R’000
Overs
6 607 6
7 102 7
of
Act/ Act/
483 764 483
282 904 282
187 151 187
R’000
Grants
Division Division
Revenue Revenue
Provincial
ST
NAME OF OF NAME
Allocation
Enhancement Enhancement
Revenue Revenue
allocation allocation
enhancement enhancement
rates and tax tax and rates
Property Property
Allocation
Enhancement Enhancement
Infrastructure Infrastructure
Grant
DEPARTMENT
Public Works Works Public
Expanded Expanded
31. RECEIVED GRANTS CONDITIONAL OF ATEMENT
A prosperous Free State through facilitation of sustainable infrastructure 195 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 ------R’000 or National Department Re-allocations by National Treasury National Treasury ------R’000 Funds TRANSFER Withheld 11 516 596 236 413 4 592 6 918 1 324 7 823 3 424 6 458 1 022 1 409 7 073 6 299 2 424 12 284 51 399 35 789 279 925 129 915 R’000 Actual Transfer 11 597 237 517 413 4 593 6 919 1 324 7 824 3 424 6 458 1 023 1 410 7 073 6 300 2 424 12 285 51 390 35 789 279 926 129 915 Total R’000 Available ------5 (1) 632 316 187 (21) (14) (118) (133) 14 039 (4 775) (10 117) R’000 Adjustments ------GRANT ALLOCATION Roll R’000 Overs 597 237 692 517 427 129 1 411 7 819 4 593 6 919 1 044 3 108 6 591 6 886 6 300 2 424 12 285 56 165 45 906 115 876 115 279 926 of Act R’000 Division Revenue NAME OF MUNICIPALITY ST
Dihlabeng FS 192 Naledi FS 171 Ngwathe FS 203 Nketoana FS 193 Phumelela FS195 Tokologo FS183 Tokologo Tswelopele FS183 Tswelopele Kopanong FS 162 Letsemeng FS 161 Moqhaka FS201 Nala FS185 Setsoto FS191 Mafube FS 205 Maluti-a-Phofung FS194 Mangaung MAN Mantsopa FS196 Metsimaholo FS204 Mohokare FS163 Masilonyana FS181 Matjhabeng FS184 32. MUNICIPALITIES TO GRANTS PAID OF CONDITIONAL/UNCONDITIONAL ATEMENT
196 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 129 570 927 265 356 6 542 4 482 5 904 1 318 4 571 4 501 2 142 6 965 2 014 2 135 1 134 of 35 537 16 629 51 149 Act 120 744 268 014 R’000 2012/13 Division Revenue 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% % % of funds spent by available municipality 11 596 516 236 413 6 918 4 592 6 458 7 073 1 409 6 299 3 424 7 823 1 324 2 424 1 022 35 789 12 284 51 399 129 915 279 925 R’000 SPENT Amount spent by municipality 11
596 516 236 413 6 918 4 592 6 458 7 073 1 409 6 299 3 424 7 823 1 324 2 424 1 022 35 789 12 284 51 399 129 915 279 925 by R’000 Amount received municipality ------R’000 or National Department Re-allocations by National Treasury National Treasury ------TRANSFER R’000 Funds Withheld 11 596 516 236 413 1 022 6 918 4 592 6 458 7 073 1 409 6 299 3 424 7 823 1 324 2 424 51 399 35 789 12 284 R’000 Actual 129 915 279 925 Transfer 11 597 517 237 413 1 023 6 919 4 593 6 458 7 073 1 410 6 300 3 424 7 824 1 324 2 424 51 390 35 789 12 285 Total R’000 129 915 279 926 Available ------5 (1) 187 316 632 (21) (14) (118) (133) 14 039 (4 775) (10 117) R’000 Adjustments ------Roll R’000 Overs GRANT ALLOCATION 597 517 129 692 237 427 1 411 1 044 6 919 4 593 6 591 6 886 6 300 7 819 3 108 2 424 of 56 165 45 906 12 285 Act 115 876 115 279 926 R’000 Division Revenue NAME OF MUNICIPALITY Phumelela FS195 Nketoana FS 193 Ngwathe FS 203 Naledi FS 171 Nala FS185 Mangaung MAN Moqhaka FS201 Maluti-a-Phofung Maluti-a-Phofung FS194 Mafube FS 205 Mohokare FS163 Letsemeng FS 161 Metsimaholo Metsimaholo FS204 Dihlabeng FS 192 Kopanong FS 162 Matjhabeng FS184 Tswelopele FS183 Tswelopele Masilonyana FS181 Masilonyana Tokologo FS183 Tokologo Mantsopa FS196 Setsoto FS191 ANNEXURE 1A MUNICIPALITIES TO GRANTS PAID OF CONDITIONAL STATEMENT
A prosperous Free State through facilitation of sustainable infrastructure 197 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - - - R’000 Appro- 2012/13 priation Act - % 99.8% 100.0% % of funds Available Available Transferred - 408 662 TRANSFER 1 070 R’000 Actual Transfer - 408 663 1 071 R’000 Total Available - - 422 (422) R’000 ments Adjust- - - - - R’000 Roll Overs TRANSFER ALLOCATION 408 241 422 1 071 R’000 Appro- priation Adjusted Construction SETA Public Sector SETA DEPARTMENT/ AGENCY/ ACCOUNT DEPARTMENT/ Safety & Security Sector SETA ANNEXURE 1B ACCOUNTS AND AGENCIES DEPARTMENTAL OF TRANSFERS TO STATEMENT
198 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
23 2 605 2 628 Act R’000 2012/13 Appropriation - 99.8% % % of funds Available Available Transferred - EXPENDITURE 3 542 3 542 R’000 Actual Transfer - 3 550 3 550 Total R’000 Available - - - R’000 Adjustments - - - Roll R’000 Overs TRANSFER ALLOCATION -
3 550 3 550 Act R’000 Adjusted Appropriation
HOUSEHOLDS Total Transfers Household claims Employee social benefits ANNEXURE 1C HOUSEHOLDS OF TRANSFERS TO STATEMENT
A prosperous Free State through facilitation of sustainable infrastructure 199 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - 8 10 10 10 332 350 360 R’000 2012/13 - - - - - 100 100 100 R’000 2013/14 NATURE OF GIFT, DONATION OR SPONSORSHIP DONATION OF GIFT, NATURE Departmental sports teams participated in the national departmental the towards 000 R10 donated Ruwacon 2012. October 6 – 3 from tournament employee’s health and wellness sports teams. 2 500 Bottles of bottled water – National Employee’s health and wellness tournament 2 500 Bottles of bottled water – National Employee’s Venue for memorial service of MEC Ngubentombi and Sergeant Motaung Venue Marquee tent, flooring, tables, chairs for the burial of Sergeant Motaung Tracksuits, Golf Shirts, Soccer and Netball kits including balls(National Employee’s Health Golf Shirts, Soccer and Netball kits including balls(National Employee’s Tracksuits, held From 25-28 Sep 2013 in Mafikeng). Tournament and Wellness NAME OF ORGANISATION Received in cash Ruwacon Subtotal Received in kind BloemWater Central University of Technology, Free State Technology, Central University of C-Squared PriceWaterhouseCoopers Subtotal TOTAL ANNEXURE 1D AND SPONSORSHIPS RECEIVED OF GIFTS, DONATIONS STATEMENT
200 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - 30 12 42 12 30 R’000 2012/13 - - - 51 71 20 71 R’000 2013/14 . beneficiary Provincial Education Motivational Awareness event (01 October 2013) Sundry payment to Mahube. Awareness Provincial Education Motivational TOTAL NATURE OF GIFT, DONATION OR SPONSORSHIP DONATION OF GIFT, NATURE (Group major categories but list material items including name of organisation Paid in cash event (29 September 2012) Awareness Provincial Education Motivational Donations for funeral expenses to the father of deceased EPWP Subtotal Subtotal Made in kind 81 houses in Charlesville (Xhariep District) to pensioners and unemployed individual ANNEXURE 1E ACT OF GRACE AN AS MADE AND PAYMENTS AND REMMISSIONS, REFUNDS AND SPONSORSHIPS MADE OF GIFTS, DONATIONS STATEMENT
A prosperous Free State through facilitation of sustainable infrastructure 201 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
51 210 51 210 978 400 978 400 029 610
3 3 4 2014 R’000 Closing Balance 31 March
- - - - -
R’000 details (Provide Liabilities hereunder) recoverable - -
172) 172) 172)
(4 (4 (4 year R’000 reduced Liabilities during the paid/cancelled/
4 501 4 501
220 157 220 157 224 658
R’000 the year Liabilities incurred during
50 881 50 881
758 243 758 243 809 124
3 3 3 R’000 Balance Opening 1 April 2013
Subtotal Liability to rehabilitate the borrow pits Other claims (Court Cases) Environmental Liability Subtotal TOTAL Nature of Liability Claims against the department ANNEXURE 2 31 MARCH 2014 AT AS OF CONTINGENT LIABILITIES STATEMENT
202 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - - 2 788 788 8993 9 783 8 995 R’000 31/03/2013 - - Total 4 11 64 68 119 187 108 R’000 31/03/2014 ------R’000 31/03/2013 - - - - - 4 68 64 68 outstanding Unconfirmed balance R’000 31/03/2014 - - - 2 788 9 783 8 995 8 993 R’000 788 31/03/2013
- - - - - 11 119 119 108 outstanding Confirmed balance R’000 31/03/2014 t Independent Development Trust Independent Development Free State Gambling Board TOTAL Government Entity Fleet Management Free State Department of Health Other Government Entities Free State Department of Police, Roads and Transport Free State Department of Police, Roads and Departmen Affairs Department of Home ANNEXURE 3 CLAIMES RECOVERABLE
A prosperous Free State through facilitation of sustainable infrastructure 203 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 10 160 150 R’000 31/03/2013 - - - TOTAL R’000 31/03/2014 - - - R’000 31/03/2013 - - - R’000 31/03/2014 Unconfirmed balance outstanding 10 150 160 R’000 31/03/2013 - - - R’000 Confirmed balance outstanding 31/03/2014 DEPARTMENTS Current Free State Department of the Premier Free State Department of Education GOVERNMENT ENTITY INTERGOVERNMENTAL TOTAL ANNEXURE 4 INTER-GOVERNMENT PAYABLES
204 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - 3 (4) 137 367)
4 214 6 445 (2 R’000 - - 9 1 27 44 2012/13 (1) (26) Quantity - - 10 (6) 528)
1 293 4 214 3 603 (6 R’000 - - - 1 21 27 37 2013/14 (44) Quantity Note Inventory Adjustments Add/(Less): Add/(Less): Adjustments to prior year balance Add/(Less): Closing balance Opening balance Additions/Purchases - Cash Add: Add: Additions - Non-cash Add: (Less): Disposals (Less): Issues ANNEXURE 5 INVENTORY
A prosperous Free State through facilitation of sustainable infrastructure 205 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - - 574 835 574 835 574 835 R’000 Closing balance - - 56 853 56 853 56 853 R’000 Completed Assets - - 230 873 230 873 230 873 WIP R’000 Current Year Capital Current Year April 2013.
- - 400 815 400 815 400 815 R’000 Opening balance BUILDINGS AND OTHER FIXED STRUCTURES BUILDINGS MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2014 WORK IN PROGRESS FOR THE MOVEMENT IN CAPITAL The work in progress opening balance has been restated to better reflect the actual amounts as at 1 Dwellings Non-residential buildings Other fixed structures TOTAL ANNEXURE 6 WORK IN PROGRESS MOVEMENT IN CAPITAL
206 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 - 8 8 8 R’000 31/03/2013 - - - - TOTAL R’000 31/03/2014 - - - - R’000 31/03/2013 - - - - R’000 31/03/2014 Unconfirmed balance outstanding - 8 8 8 R’000 31/03/2013 - - - - R’000 Confirmed balance outstanding 31/03/2014 Current Non-current PUBLIC ENTITIES Current (Tender Bothaville Weightbridge Deposit) ENTITY TOTAL ANNEXURE 7 RECEIVED ADVANCES INTER-ENTITY
A prosperous Free State through facilitation of sustainable infrastructure 207 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
ANNEXURE 8 IMMOVABLE ASSETS ADDITIONAL DISCLOSURE
1. Un-surveyed land (4 e)
There are no land parcels that were un-surveyed at year-end.
2. Deemed vested (4 d)
Land parcels 42
Facilities per function:
Library 3
Unutilised agriculture farm/plot 21
School 2
Clinic 3
Unutilised house 5
Unutilised land 4
Roads reserve 3
Old age home 1
Total 42
3. Facilities on land not surveyed (4 g)
There were no facilities built on land that is not surveyed.
4. Facilities on land where a right to use exist (4 h)
The Department does not have any properties built on land where right of use exists.
5. Agreement of custodianship reached (4 i)
Where an agreement of custodianship has been reached the properties were transferred in accordance with the requirements of Section 42 of the Public Finance Management Act. The reconciliation is reflective of the movement regarding these properties during the financial year:
Section 42 transferred
Item 28 (1) still to Transfers In Item 28(1) requested Item 28(1) issued request Transfers out
27 - 11 16 -
208 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
5. Agreement of custodianship reached (4 i) (Continued)
Item 28 (1) Certificates
Item 28 (1) awaited at New request during the Item 28 (1) awaited at end Issued during the year beginning of year year of year
- - - -
Item 28 (1) Certificates
Item 28 (1) Item 28 (1) to be Transfers in during Transfers out during Item 28 (1) requested requests requested at beginning year the year during year remaining at year of year end
- 27 - - 16
There were 29 projects transferred to the department in terms of Section 42 of the PFMA. 3 of these transfers in were constructed at one location at different times. Therefore only 27 locations were affected by the transfers in.
6. Surveyed but unregistered land (4 f)
The following properties have been surveyed but not yet registered in the Deeds Registry.
Surveyed but unregistered land parcels
Estimated date for Diagram Town name Area (HA) Parcel Portion submission for reference registration
HARRISMITH 100.63 1880 11 535/2010 2014/15
HARRISMITH 278.52 1981 - 946/2010 2014/15
HARRISMITH 411.93 1984 - 947/2010 2014/15
HARRISMITH 2.27 199 25 521/2003 2014/15
HARRISMITH 0.89 933 11 1305/2009 2014/15
THABA’NCHU 434.20 125 1 1061/2003 2014/15
THABA’NCHU 4.92 125 2 380/2003 2014/15
THABA’NCHU 82.18 125 3 381/2003 2014/15
THABA’NCHU 57.11 125 4 382/2003 2014/15
THABA’NCHU 103.72 404 26 367/1999 2014/15
THABA’NCHU 27.48 404 40 1088/2010 2014/15
THABA’NCHU 9.58 548 1 389/2003 2014/15
THABA’NCHU 4.33 58 3 1058/2003 2014/15
THABA’NCHU 7.40 58 4 1059/2003 2014/15
A prosperous Free State through facilitation of sustainable infrastructure 209 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
6. Surveyed but unregistered land (4 f) (Continued)
Surveyed but unregistered land parcels
Estimated date for Diagram Town name Area (HA) Parcel Portion submission for reference registration
THABA’NCHU 91.31 58 5 374/2003 2014/15
THABA’NCHU 204.840 58 6 375/2003 2014/15
THABA’NCHU 0.84 58 7 376/2003 2014/15
THABA’NCHU 1.14 58 8 377/2003 2014/15
THABA’NCHU 67.54 58 9 378/2003 2014/15
THABA’NCHU 25.92 904 15 991/2005 2014/15
THABA’NCHU 26.94 904 16 1497/2005 2014/15
THABA’NCHU 18.84 904 9 1523/2004 2014/15
THABA’NCHU 25.31 908 6 160/2005 2014/15
THABA’NCHU 15.60 921 - 1442/2004 2014/15
THABA’NCHU 50.02 929 - 1241/2005 2014/15
THABA’NCHU 24.82 931 - 1622/2005 2014/15
HARRISMITH 13981.82 1815 - 944/2010 2014/15
HARRISMITH 49.46 1815 1 1021/2010 2014/15
HARRISMITH 3.66 1901 1 528/2003 2014/15
HARRISMITH 0.02 1903 151 1490/2003 2014/15
HARRISMITH 1.96 1909 5 1503/2003 2014/15
HARRISMITH 0.42 1926 20 526/2003 2014/15
HARRISMITH 1.58 1926 21 527/2003 2014/15
HARRISMITH 0.23 1926 22 533/2003 2014/15
HARRISMITH 1.70 1926 23 534/2003 2014/15
HARRISMITH 1.06 1926 24 535/2003 2014/15
HARRISMITH 2.10 1926 25 536/2003 2014/15
HARRISMITH 0.39 1926 26 537/2003 2014/15
HARRISMITH 6.24 1926 275 1396/2005 2014/15
HARRISMITH 8.84 1926 276 77/2006 2014/15
HARRISMITH 20.75 1926 277 79/2006 2014/15
HARRISMITH 5.68 1926 278 81/2006 2014/15
HARRISMITH 83.33 1926 279 83/2006 2014/15
HARRISMITH 2.00 1926 28 539/2003 2014/15
HARRISMITH 0.66 1926 29 540/2003 2014/15
HARRISMITH 1.95 1926 30 541/2003 2014/15
HARRISMITH 1.65 1926 31 542/2003 2014/15
HARRISMITH 1.25 1926 33 544/2003 2014/15
210 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014
6. Surveyed but unregistered land (4 f) (Continued)
Surveyed but unregistered land parcels
Estimated date for Diagram Town name Area (HA) Parcel Portion submission for reference registration
HARRISMITH 1.42 1926 36 547/2003 2014/15
HARRISMITH 1.87 1926 42 1495/2003 2014/15
HARRISMITH 1.25 1926 43 1497/2003 2014/15
HARRISMITH 1.01 1947 - 76/2003 2014/15
HARRISMITH 1.39 383 1 1514/2003 2014/15
HARRISMITH 1.32 469 5 1502/2003 2014/15
HARRISMITH 4.48 932 4 1507/2003 2014/15
HARRISMITH 0.96 932 5 1508/2003 2014/15
HARRISMITH 0.32 932 6 1509/2003 2014/15
HARRISMITH 3.39 932 7 1510/2003 2014/15
HARRISMITH 2.01 933 2 1513/2003 2014/15
HARRISMITH 1.28 934 1 1511/2003 2014/15
HARRISMITH 2.68 934 2 1512/2003 2014/15
HARRISMITH 4.82 934 6 1392/2005 2014/15
HARRISMITH 2.02 935 5 1505/2003 2014/15
HARRISMITH 1.87 1903 133 282/1998 2014/15
HARRISMITH 0.33 1926 290 299/2013 2014/15
HARRISMITH 2242.86 1903 102 914/1996 2014/15
HARRISMITH 139.24 1903 103 914/1996 2014/15
Surveyed land parcels submitted for registration
Surveyed unregistered at Submitted for registration Parcels awaiting submission Surveys during the year beginning of year during year for registration at year end
67 - - 67
Surveyed land parcels registered during the year
Awaiting registration at New submissions during the Registration during the Awaiting registration at beginning of year year year end of year
- - - -
7. Contingent assets (4 l)
The Department does not have any contingent assets relating to immovable property as at 31 March 2014.
A prosperous Free State through facilitation of sustainable infrastructure 211 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 Notes
212 A prosperous Free State through facilitation of sustainable infrastructure