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Contents Part a Part B Part C Part D Part E 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 2 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 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 A prosperous Free State through facilitation of sustainable infrastructure 3 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 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 4 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 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 A prosperous Free State through facilitation of sustainable infrastructure 5 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 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 the 2% 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 6 A prosperous Free State through facilitation of sustainable infrastructure 2013 Department of Public Works Annual Report 2013 / 2014 - Vote 9 2014 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
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