MPUMALANGA PROVINCIAL GOVERNMENT Department of Public Works, Roads and Transport Vote No

Annual Report

MPUMALANGA PROVINCIAL GOVERNMENT Department of Public Works, Roads and Transport Vote No. 08 ANNUAL REPORT 2014/15 FINANCIAL YEAR

DPWRT Annual Report 2014-15.indb 1 2015/08/18 12:44:29 PM Annual Report

CONTENTS PART A: GENERAL INFORMATION...... 3 1. DEPARTMENT’S GENERAL INFORMATION...... 4 2. LIST OF ABBREVIATIONS/ACRONYMS...... 5 3. FOREWORD BY THE MEC...... 7 4. REPORT OF THE ACCOUNTING OFFICER...... 9 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORT...... 15 6. STRATEGIC OVERVIEW...... 16 6.1. Vision...... 16 6.2. Mission...... 16 6.3. Values...... 16 7. LEGISLATIVE AND OTHER MANDATES...... 16 8. ORGANISATIONAL STRUCTURE...... 17 PART B: PERFORMANCE INFORMATION...... 19 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES...... 20 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE...... 20 2.1. Service Delivery Environment...... 20 2.2. Service Delivery Improvement Plan...... 20 2.3. Organisational Environment...... 22 2.4. Key Policy Developmentents and Legislative Changes...... 22 3. STRATEGIC OUTCOME ORIENTED GOALS...... 23 4. PERFORMANCE INFORMATION BY PROGRAMME...... 24 4.1. Programme 1: Administration...... 24 4.2. Programme 2: Public Works Infrastructure...... 26 4.3. Programme 3: Transport Infrastructure...... 29 4.4. Programme 4: Transport Operations...... 32 4.5. Programme 5: Community Based Programmes...... 34 5. TRANSFER PAYMENTS...... 37 5.1. Transfer payments to all organisations other than public entities...... 37 6. CONDITIONAL GRANTS...... 37 6.1. Conditional grants and earmarked funds received...... 37 7. CAPITAL INVESTMENT...... 38 7.1. Capital investment, maintenance and asset management plan...... 38 PART C: GOVERNANCE...... 57 1. INTRODUCTION...... 58 2. RISK MANAGEMENT...... 58 3. FRAUD AND CORRUPTION...... 58 4. MINIMISING CONFLICT OF INTEREST...... 58 5. CODE OF CONDUCT...... 58 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES...... 58 7. PORTFOLIO COMMITTEES...... 59 8. SCOPA RESOLUTIONS...... 61 9. PRIOR MODIFICATIONS TO AUDIT REPORTS...... 63 10. INTERNAL CONTROL UNIT...... 63 11. INTERNAL AUDIT AND AUDIT COMMITTEES...... 63 12. AUDIT COMMITTEE REPORT...... 65 PART D: HUMAN RESOURCE MANAGEMENT...... 67 1. INTRODUCTION...... 68 2. OVERVIEW OF HUMAN RESOURCES...... 68 3. HUMAN RESOURCES OVERSIGHT STATISTICS...... 69 PART E: FINANCIAL INFORMATION...... 99 1. REPORT OF THE AUDITOR GENERAL...... 100 2. ANNUAL FINANCIAL STATEMENTS...... 103

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GENERAL PART A INFORMATION

DPWRT Annual Report 2014-15.indb 3 2015/08/18 12:44:36 PM Annual Report 1. DEPARTMENT’S GENERAL INFORMATION PHYSICAL ADDRESS : Department of Public Works, Roads and Transport Building No. 7 Riverside Government Complex Government Boulevard Mbombela 1200 POSTAL ADDRESS : Mpumalanga Provincial Government Department of Public Works, Roads and Transport Private Bag X 11302 Mbombela 1200 TELEPHONE NUMBER : +27 13 766 6696 FAX NUMBER : +27 13 766 8453 WEBSITE ADDRESS : dpwrt.mpg.gov.za EMAIL ADDRESS : [email protected]

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AFS Annual Financial Statements AGSA Auditor General of South Africa AO Accounting Officer APP Annual Performance Plan CAMP Custodian Asset Management Plan CBO Community Base Organisation CBD Central Business District CFO Chief Financial Officer CHC Community Health Centre CIDB Construction Industry Development Board CRDP Comprehensive Rural Development Programme DCSSL Department of Community Safety, Security and Liaison DCSR Department of Culture, Sports and Recreation DEDET Department of Economic Development, Environment and Tourism DoE Department of Education DoH Department of Health DORA Division of Revenue Act DPSA Department of Public Service and Administration DPWRT Department of Public Works, Roads and Transport DSD Department of Social Development EPWP Extended Public Works Programme Eskom Electricity Supply Commission EWP Employee Wellness Programme EXCO Executive Council FPP Fraud Prevention Plan FTE Full Time Equivalent GIAMA Government Immovable Asset Management Act HDI Historical Disadvantaged Individual HIV/ Aids Human Immune-Deficiency Virus/ Acquired Immune-Deficiency Syndrome HOA Home Owners Allowance HOD Head of Department HRM Human Resource Management HRU&CD Human Resource Utilisation and Capacity Development IAR Immovable Asset Register ICT Information Communication Technology IDMS Infrastructure Delivery Management System IDP Integrated Development Plan IDT Independent Development Trust IPIP Infrastructure Project Implementation Plans IPMP Implementation Project Management Plan IPTN Integrated Public Transport Network IRMA Integrated Rural Mobility and Accessibility IT Information Technology JOC Joint Operations Committee LTPS Land Transport Permit System MANCO Management Committee MEC Member of Executive Council MIMP Mpumalanga Infrastructure Master Plan MMS Maintenance Management System MPAT Management Performance Assessment Tool MTEF Medium Term Expenditure Framework MTSF Medium Term Strategic Framework MOU Memorandum of Understanding NDP National Development Plan

DPWRT Annual Report 2014-15.indb 5 2015/08/18 12:44:36 PM Annual Report NGO Non-Governmental Organisation NMT Non-Motorised Transport NUMSA National Union of Metalworkers of South Africa NYS National Youth Services OLAS Operating Licence Administrative System OSD Occupation Specific Dispensation OTP Office of the Premier PAIA Promotion of Access to Information Act, 2000 PFMA Public Finance Management Act, 1999 PMC Palabora Mining Company PMU Project Management Unit POMM Project Operations Management Meeting PPICC Premier’s Provincial Infrastructure Committee PTOG Public Transport Operations Grant PWD People With Disabilities PSCBC Public Service Coordinating Bargaining Council RAMS Road Asset Management System RGC Riverside Government Complex RIU Rapid Implementation Unit SAPS South African Police Service SARS South African Revenue Service SBD Standard Bidding Document SCM Supply Chain Management SCOPA Select Committee on Public Accounts SITA State Information Technology Agency SOP Standard Operating Procedure TB Tuberculoses TBC To Be Confirmed TMH Technical Methods for Highways TR Treasury Regulations UAMP User Asset Management Plans VAT Value Added Tax VCI Visual Condition Index VO Variation Order WOE Women Owned Enterprise

DPWRT Annual Report 2014-15.indb 6 2015/08/18 12:44:36 PM Annual Report 3. FOREWORD BY THE MEC

Ms Dumisile Goodness Nhlengethwa (MPL) MEC: Department of Public Works, Roads and Transport The 2014/15 financial year has finally come and re-prioritisation in their infrastructure plans due gone, but the achievements thereof will stay to persistent budget shortfalls. We will therefore with us. The financial year had its highs and lows continue to make the best possible capital works in service delivery which is fully described in this investment decisions to optimise our road and report. The annual report seeks to account for building infrastructure and ensure that they meet the progress made by the Department of Public the current and future needs of the Province. Works, Roads and Transport (DPWRT) in delivering its mandates. In the previous financial year, DPWRT continued to provide support for implementation of the In the next pages, we will showcase DPWRT’s National Rural Transport Strategy. The Department contribution to the Government’s commitment to managed to complete four (4) Integrated Rural deliver an efficient, competitive and responsive Mobility Access (IRMA) projects. Our review of this economic infrastructure network. We will also program reveals that road safety has improved in highlight our contribution towards building an these areas since pedestrians no longer walk efficient, effective and development-oriented on the road but use the available sidewalks. public service as part of a developmental state. The rollout of IRMA projects puts us on track to Moreover, we will indicate how this moved us realize the objective of providing improved access closer to realization of the priorities espoused in and movement of people and goods to facilitate the National Development Plan (NDP). the promotion of economic activities and access to public amenities in rural communities. Amidst a complex and dynamic project environment, the Department strived to ensure The combined effect of population growth and that the dividends of service delivery are achieved increased travel patterns has resulted in an upward and that the mandates and objectives of its client trend on the demand for an integrated transport departments are realized. In this regard, the system over recent years. As a Department, Department completed a total of 108 building we are mandated to develop relevant policy projects in the 2014/15 financial year. This includes frameworks for the future development of a repairs and renovations of storm damaged transport system that serves the needs of a rapidly schools, new Grade R centres, construction of growing population and enhances the Province’s enviroloos and refurbishments. Worth to mention competitiveness. To realise this, we work closely is the state of the art Emakhazeni Boarding School. with municipalities and other stakeholders in planning for Mpumalanga’s future transport More than R2,3 billion was spent on improving needs. The capital investment on Moloto Rail the Provincial road network of which R1,3 billion Development Corridor and the Mbombela went to rehabilitation and maintenance of the Integrated Public Transport Network highlights coal haulage network. In addition, the municipal Government’s commitment to provide a safe, support program delivered safety, capacity reliable and affordable transport system. and infrastructure regeneration and renewal upgrades at various municipalities. These roads The current administration intends to create six link rural communities and farmlands to areas of (6) million work opportunities by 2019 through the socio-economic importance and thus support Expanded Public Works Programme (EPWP). traditional agriculture and tourism industries. The Provincial contribution is 300 918 work opportunities. During the year of reporting, the Notwithstanding these achievements, there are EPWP created 50 467 work opportunities and the many challenges facing infrastructure as they main beneficiaries of these opportunities were continue to directly or indirectly play a role in young people and women. This programme influencing the delivery outcomes of the Provincial assisted the unemployed to gain skills and infrastructure agenda. In 2014/15, DPWRT experience to work in the various sectors. and its client departments made significant

DPWRT Annual Report 2014-15.indb 7 2015/08/18 12:44:37 PM Annual Report The Department also supported the development • Fiscal discipline is required to deal with the of small businesses and cooperatives through current constraints. its Sakh’abakhi programme and other public • Efficiencies will need to be improved going employment programmes such as the National forward. Youth Service (NYS). • Adherence to stringent cost curtailment measures is non-negotiable. Going forward, DPWRT will build on the • Revised spending plans across the whole achievements of 2014/15 and continue its focus Department, aimed at greater efficiency, on delivering Government’s priorities. However, reduced waste and an improved composition the weak performance of the economy prescribes of spending. that the following actions be undertaken in the • A consolidation of the Department’s personnel 2015/16 financial year: numbers.

______Ms DG Nhlengethwa (MPL) MEC: Department of Public Works, Roads and Transport 31 July 2015

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KM Mohlasedi Head of Department 4.1 OVERVIEW OF THE OPERATIONS OF THE DEPARTMENT I am pleased to present the annual report of the In 2014/15, we successfully completed condition Department of Public Works, Roads and Transport assessment on 600 state-owned buildings. We for the 2014/15 financial year. This report presents were also able to develop and submit the a chance for the Department to show the public Custodian Asset Management Plan (CAMP) as how it has lived up to its commitments and plans required by the Government Immovable Asset over the past year. By 31 March 2015, Management Act (GIAMA). The Department the Department had managed to achieve 78% is now able to determine its property portfolio (45 of 58) of its set targets. comprising of 5 349 buildings, develop informed maintenance plans and confirm the User Summary of the Department’s Performance Departments occupying state properties. Programme Performance Achieved Not Last year, we continued to work with our Indicators Achieved 1. Administration 12 9 3 stakeholders including the other levels of government to improve transport outcomes for 2. Public Works 10 8 2 Mpumalanga. Mbombela commenced with the Infrastructure expansion of specific roads within the CBD as part 3. Transport 10 8 2 of government investment in the Integrated Public Infrastructure Transport Network (IPTN). On the other hand, 4. Transport 16 13 3 we continued to strive for the provision of efficient Operations and effective scholar transport services on behalf 5. Community 10 7 3 of the Department of Education. Most learners Based were able to be in class on time thus improving Programmes access to basic education. TOTAL 58 45 13 Key Challenges Key Achievements We had weaknesses too, but we are fixing them. 2014/15 was started on a back foot due In the past year, the public was able to utilise major to the budget shortfall of R411 million under the new components of the Provincial infrastructure Transport Infrastructure Programme. During the portfolio. We managed to complete 108 building budget adjustment period, the Department infrastructure, 9 transport infrastructure and received a capital injection of R47.9 million from 4 Integrated Rural Mobility Access (IRMA) projects. Treasury. Though welcomed, the additional These are just some of the many projects that are funding made minimal impact on the budget improving the quality of life of Mpumalanga’s shortfall. Notwithstanding this, the Programme still citizens. managed to achieve 8 of its 10 planned targets at year end. In addition to our focus on delivering social and economic infrastructure, we also made significant There are other numerous challenges facing progress towards preservation of the existing infrastructure delivery across South Africa which infrastructure. The scope and magnitude of this cannot be limited to sporadic climate change, investment required participation of a number of natural disasters, rapid changing demographic consultants and contractors to deliver essential trends, unstable global economy, brain drain, etc. infrastructure within required timeframes. These factors cannot be divorced from the local This proved to be a catalyst for the creation of problems facing infrastructure as they continue to 50 467 job opportunities and supported the directly or indirectly play a role in influencing the development of emerging contractors. delivery outcomes of the Provincial infrastructure agenda. 9

DPWRT Annual Report 2014-15.indb 9 2015/08/18 12:44:38 PM Annual Report As a Department, there will be a need in the Also during the year of reporting, DPWRT completed future to further study cost drivers with the aim of its Strategic Plan: 2015 - 2020 and Annual Performance establishing standard market rates and defining Plan: 2015/16. Past trends, spending patterns and acceptable minimum and maximum thresholds. organizational lessons from the previous MTSF: This will help limit the possibility of price collusion 2009 - 2014 were instrumental in the compilation of (if any) by industry practitioners. Furthermore, more these plans. Furthermore, inputs from municipalities’ innovative and efficient infrastructure solutions Integrated Development Plans (IDPs), various should be explored. Building in-house technical interest groups and other stakeholders were taken capacity to reduce over reliance on consultancy into consideration during the planning processes. services will have cost savings. These key accountability documents were tabled to Legislature on 24 March 2015. The Infrastructure Delivery Management System (IDMS) provides a guideline for seamless and In tabling of her Policy and Budget Speech for integrated service delivery planning and a lot of the previous year, the MEC promised to convene the current hiccups encountered will be minimized a Provincial Expanded Public Works Programme should the IDMS be institutionalized as a best (EPWP) Summit. The event was held from 28 practice in all departments. The Province has also to 29 August 2014 where EPWP practitioners established various Infrastructure Governance from different sectors and from all spheres of Structures to enhance oversight on infrastructure government shared experiences, lessons learnt delivery. Amongst these, is the Premier’s Provincial and encouraged an integrated approach. Infrastructure Coordinating Committee (PPICC), Emanating from this event was the signing of Joint Operations Committee (JOC) and Project protocols by all Mayors in the Province and Operations Management Meeting (POMM). the adoption of the Programme of Action for implementation of EPWP III. The down time of the Operating License Administration System (OLAS) led to the delay in The Transport Month was officially launched at printing of operating licenses for public transport eMalahleni on 07 October 2014. The primary operators. Consequently, there were protests focus of the celebrations was to highlight the and sit-ins around some areas of the Province as importance of transport infrastructure giving operators expressed their frustrations. We are in credence to assertion that transport is the the process of resuscitating the old Land Transport heartbeat of the economy. Also, a number of road Permit System (LTPS) so that it is in use during the safety campaigns were conducted at targeted down time of OLAS. Our Information Technology hot spot areas during the month. These were joint (IT) team is working around the clock to ensure traffic operations between national, provincial that the matter is resolved. and local government. We have also noted with concern the spate of Mpumalanga shown bright at the National taxi violence that has erupted in Mbombela, Kamoso Awards held on 26 November 2014. Middelburg, KwaMhlanga and other areas. The Province scooped six (6) awards which The lack of respect for, and enforcement of the included the Best Local Municipality (Infrastructure law cannot be tolerated. We are working with all Sector) and the Best Innovative Social Sector stakeholders to defuse the situation. The MEC has Project. Also significant during the year, was the also set up an internal commission to investigate commencement of the impact assessment study and make recommendations on all related for EPWP II. This is in line with the Framework for matters (e.g. route ownership). Monitoring and Evaluation of EPWP and the study is envisaged to be completed during the second We also recognise that some weaknesses may quarter of 2015/16 financial year. be attributable to lack of internal capacity. The implementation of our capacity building initiatives in 2014/15 provided opportunities for 108 tertiary graduates and 50 learners to gain assistance and experience for future employment. In addition, a total of 2 395 employees were trained on various capacity building interventions. Significant Events for the Year South Africa began a new phase of its democratic transition when voters went to the polls for the fifth general election on 07 May 2014. On 23 July 2014, Cabinet adopted the Medium Term Strategic Framework (MTSF): 2014 - 2019 to be used as the principal guide for the five - year implementation phase of the National Development Plan (NDP) and the commitments in the governing party’s election manifesto. The MTSF also provides a framework for the other plans of national, provincial and local government.

DPWRT Annual Report 2014-15.indb 10 2015/08/18 12:44:40 PM Annual Report 4.2 OVERVIEW OF THE FINANCIAL RESULTS OF THE DEPARTMENT DEPARTMENTAL RECEIPTS

Departmental receipts 2014/2015 2013/2014 Estimate Actual (Over)/Under Estimate Actual (Over)/Under R’000 Amount Collection R’000 Amount Collection Collected R’000 Collected R’000 R’000 R’000 Sale of goods and 9,004 10,385 (1,381) 8,566 10, 045 (1,479) services other than capital assets Fines, penalties and 9,085 8,285 800 8,644 5,590 3,054 forfeits Interest, dividends and 838 2,051 (1,213) 797 1,637 (840) rent on land Sale of capital assets 1,577 1,316 261 1,501 3,283 (1,782) Financial transactions in 799 1,801 (1,002) 760 3,415 (2,655) assets and liabilities TOTAL 21,303 23,838 (2,535) 20,268 23,970 (3,702) The projected revenue for the 2014/15 financial Reasons for the better than anticipated year was R21, 303 million. However, the Department performance (Over Collection) managed to collect R23,838 million, thus resulting in an over collection by R2,535 million. This was The Department received interest on its bank mainly from the sale of goods and services other accounts which was not part of the set target. than capital assets and transactions in financial The rental of capital assets and issuing of fines by assets and liabilities. the Transport Inspectorate further led to the over collection of revenue. Determination of tariffs Reasons for sale of capital assets The tariffs charged by the Department for fees that are not governed by any act are determined The Department sold capital assets which were annually with the approval of the Provincial redundant and unserviceable. Treasury. However, fees charged in terms of the National Land Transport Act were gazetted for public comments before implementation. Free services rendered There were no free services rendered by the Department during the financial year under review. Bad debts written off In the financial year 2014/15, the Department wrote off debtors to the amount of R1,091 million which were deemed irrecoverable and uneconomical to recover.

PROGRAMME EXPENDITURE Programme name 2014/2015 2013/2014 Final Actual (Over)/ under Final Actual (Over)/ under appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000 Administration 227,406 227,405 1 220,541 220,541 0 Public Works 590,620 590,618 2 592,522 592,511 11 Infrastructure Transport Infrastructure 2,369,864 2,369,864 0 2,049,131 2,048,655 476 Transport Operations 994,334 993,908 426 1,017,846 1,017,846 0 Community Based 59,367 59,366 1 68,170 67,600 570 Programmes TOTAL 4,241,591 4,241,161 430 3,948,210 3,947,153 1,057

DPWRT Annual Report 2014-15.indb 11 2015/08/18 12:44:41 PM Annual Report The table in the previous page provides a summary The Department will also pursue partnerships with of expenditure per Programme. The Department the private sector in an attempt to increase work spent 99.9% of its adjusted budget for the 2014/15 opportunities created through public employment financial year which is consistent with the previous programmes (e.g. Siyatentela, National Youth financial year, in terms of percentages. The details Service (NYS), Sakh’abakhi, etc). To achieve its are disclosed in the Appropriation Statement. plans, the Department requires a capable and Notwithstanding Transport Operations underspent skilled workforce that will ensure efficient and on the grant allocation of public transport effective delivery of services. subsidies. VIREMENTS/ ROLLOVERS

The following virements were made after the 2014/15 budget adjustment appropriation:

Transfer from Amount R’000 Transfer to Amount R’000 Administration 6,549 Transport Infrastructure 6,549 Total 6,549 6,549 Public Works Infrastructure 36,079 Transport Infrastructure 36,079 Total 36,079 36,079 Transport Operations 73,390 Transport Infrastructure 70,622 Community Based Programmes 2,768 Total 73,390 73,390 OVERALL TOTAL 116,018 116,018 Reason for the virements Public Private Partnerships The Department had to apply for virements to The Department of Public Works, Roads and defray anticipated over expenditure in the Public Transport (DPWRT) signed a Memorandum Works Infrastructure and Transport Infrastructure of Understanding (MOU) and entered into a Programmes. The reasons for the virements are as Public Private Partnership with Palabora Mining follows: Company (PMC) Limited. PMC agreed to carry out • Payments of contractual obligations, relating the rehabilitation and reconstruction of Provincial to maintenance of property and upgrading road D2690 from the intersection with Provincial of the air conditioning systems. road P17/6 to intersection D636 at Yaverland and • Over commitments on capital projects, D812 at Plaston. and maintenance of flood damaged roads infrastructure. Discontinued activities/ activities to be discontinued Request for rollovers Amongst the key policy directives emanating The Department requested a rollover amount from the budget consultation process for 2015/16, of R1,021 million for Programme 4: Transport procurement of coal and diesel will no longer Operations which was approved by Treasury. be budgeted by DPWRT. The items will now be The reason for the unspent amount was due budgeted by the Department of Health thus to delay in the delivery of goods (bicycles for relieving almost R65 million of the equitable Shova’kalula programme). share. These funds will be used to cover part of the budget shortfall in Programme 3: Transport Reasons for unauthorised, fruitless and wasteful Infrastructure, which is expected to go beyond expenditure and the amounts involved as well as the current financial year. steps taken to address and prevent a recurrence New or proposed activities The Department has not incurred any unauthorised, fruitless and wasteful expenditure in the 2014/15 In giving effect to Treasury’s call to reduce financial year. dependency on consultants, the Budget and Finance Committee directed the Department to Future plans of the Department do 50% of its transport infrastructure designs in-house. The Department was further directed to DPWRTs future plans are centred around fulfilling conduct condition assessment of state - owned its mandate as an implementing agent for the buildings internally. Other key policy decisions Provincial social and economic infrastructure. relate to Transport Infrastructure developing a The Department will continue to engage with concept paper on establishment of Maintenance local municipalities in its effort to regulate transport Units in all regions. This concept should be operations and provide an integrated transport modelled against the Roads Construction Units system. The mandate to coordinate EPWP III that were disbanded in 2009. requires all stakeholders to take the resolutions of the EPWP Summit seriously and its monitoring compliance thereof.

DPWRT Annual Report 2014-15.indb 12 2015/08/18 12:44:41 PM Annual Report SUPPLY CHAIN MANAGEMENT • Deviations from normal procurement processes (procurement without inviting competitive List all unsolicited bid proposals concluded for bids) are approved by Accounting Officer. the year under review These are recorded and reported to both the Provincial Treasury and the Auditor General. No unsolicited bid proposals were concluded • The completeness of SBD 4, 8 and 9 is checked during the 2014/15 financial year. to ensure compliance with SCM prescripts. • VAT registration of suppliers is verified on the SCM processes and systems to prevent irregular SARS website to ensure that service providers expenditure who claim VAT are duly registered. • The CIDB grading status of service providers is • Procurement of goods and services is done verified on the CIDB website to ensure that it is in accordance to the prescribed threshold active prior to awards. values set by National Treasury. • Contract documents are kept safe to ensure a • Procurement delegations are done at the paper trail in accordance to the requirements begining of the financial year and monitored of SCM legislation and prescripts. regularly. • Transaction checklists are monitored to ensure • Competitive bids are invited for goods compliance to SCM prescripts. and services above R500 000 and above R1000 000 for construction works to ensure that Gifts and Donations received in kind from non equal opportunities are given to all suppliers to related parties compete. • An electronic system (ProQuote) is The Department did not receive any gifts and implemented to invite quotations from the donations for the financial year under review. Departmental supplier database.

Challenges experienced in SCM and how they were resolved No. Challenges Action taken to resolve challenges 1. Misuse of Government owned vehicles after working • Vehicle tracking devices were installed on hours and during weekends. government white fleet. 2. Poor safekeeping of contract records. In the • A contract management unit was established. case where Government officials are identified, • A contract management register was Government Institutions have been requested to developed and managed. ensure that disciplinary action is taken against those • Client departments were provided with copies officials. of contract documents. 3. Failure to declare conflict of interest by service • Completeness of SBD4, SBD8 and 9 was checked providers. and verified. • ID numbers of company directors were checked on PERSAL to ensure that members were not government employees. • Service providers who failed to complete the prescribed declaration forms (SBD 4) were disqualified. • Contracts of service providers whose directors are government employees were cancelled. • Contracts of service providers whose names appear on the National Treasury Database of Restricted Suppliers were cancelled. 4. Lack of an electronic system to detect government • The Provincial Treasury was requested to source officials doing business with the Department such a system. However, it was indicated that especially those working for Local Government, only Auditor General is currently having access SAPS, Correctional Services, etc. to the system. • The Department has since requested the Auditor General to assist in availing the system. • In the case where Government officials are identified, the relavent Government Institutions have been requested to ensure that disciplinary action is taken against those officials. 5. Invalid VAT numbers on received invoices. • VAT registration of suppliers was checked on SARS website.

Exceptions and Deviations received from National Treasury There were no exemptions and deviations Statements. The Annual Financial Statements set received from National Treasury on the compilation out on pages 103 to 192 have been approved by of the 2014/15 financial year’s Annual Financial the Accounting Officer.

DPWRT Annual Report 2014-15.indb 13 2015/08/18 12:44:41 PM Annual Report Events after the reporting date The Department processed invoices to the value I am also exceptionally proud of the hard work of R233 898 million during April and May 2014 and dedication of team Public Works, Roads which relate to the 2014/15 financial year. and Transport – none of our projects or outcomes These payments however do not form part of could be delivered without them. A word of the 2014/15 financial year’s expenditure and appreciation is further extended to the Audit are disclosed as note number 19 of the Annual Committee, Treasury, Macro Policy and Portfolio Financial Statements. The Department will Committee for their oversight and guidance. implement cost curtailment measures and adjust the Annual Performance Plan during 2015/16 Conclusion financial year in order to address these accruals. Our financial performance indicates that we Acknowledgements continue to strive for financial prudence. We have also managed our fiscal responsibility in I attribute these achievements to the sterling a manner that resulted in the delivery of most of leadership of the MEC, DG Nhlengethwa and her our set outputs. continued support.

Approval and Sign off

______KM MOHLASEDI Accounting Officer Department of Public Works, Roads and Transport Date: 31 July 2015

DPWRT Annual Report 2014-15.indb 14 2015/08/18 12:44:42 PM Annual Report 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm The Accounting Officer is responsible for the following: establishing, and implementing a system of internal control that has been designed to All information and amounts disclosed throughout provide reasonable assurance as to the integrity the annual report are consistent. and reliability of the performance information, the human resources information and the annual The annual eport is complete, accurate and is financial statements. free from any omissions. The external auditors were engaged to express The annual report has been prepared in an independent opinion on the annual financial accordance with the guidelines on the annual statements. report as issued by National Treasury. In my opinion, the annual report fairly reflects the The Annual Financial Statements (Part E) have operations, the performance information, the been prepared in accordance with the modified human resources information and the financial cash standard and the relevant frameworks and affairs of the Department for the financial year guidelines issued by the National Treasury. ended 31 March 2015. The Accounting Officer is responsible for the preparation of the Annual Financial Statements and for the judgements made in this information.

Yours faithfully,

______KM MOHLASEDI Accounting Officer Department of Public Works, Roads and Transport Date: 31 July 2015

DPWRT Annual Report 2014-15.indb 15 2015/08/18 12:44:42 PM Annual Report 6. STRATEGIC OVERVIEW The vision, mission and values of the Department 6.3 VALUES as per the Strategic Plan: 2010/11-2014/15 and the Annual Performance Plan: 2014/15 are as follows: Service An exceptional service delivery is Excellence required to attain the goals of the 6.1 VISION Department. Innovation Is required to ensure that the An integrated transport system and infrastructure processes utilised remain state of that promotes socio - economic development. the art and allows the Department to attain its goals. 6.2 MISSION Accountability Being answerable and responsible for its actions to the public. To effectively and efficiently implement all Integrity Being honest, truthful and mandates relating to - straightforward in dealing with the community and acting in a • traffic management*, manner beyond reproach. • asset and property management; Diversity Accepting and acknowledging • public and freight transport; and the cultural mix of its community. • roads and building infrastructure to the benefit Team Work Continuously cooperating and of all end-users. collaborating with all spheres of * The mandate relating to traffic management is being implemented Government and stakeholders. by the Department of Community Safety, Security and Liaison as of Best Practice Applying international best November 2011. practice methods and good corporate governance in dealings. Loyalty Expressing allegiance to community, central Government and the people of South Africa. Value for Money All the customers paying for the real value attained.

7. LEGISLATIVE AND OTHER MANDATES • Architectural Profession Act, 2000 (Act No. 44 • Mpumalanga Roads Act, 2008 of 2000) • Mpumalanga Road Traffic Act, 1998 (Act No. • Basic Conditions of Employment Act, 1997 4 of 1998) (Act No. 75 of 1997) • National Archives of South Africa Act, 1996 • Broad-Based Black Economic Empowerment (Act No. 43 of 1996) Act, 2003 (Act No. 53 of 2003) • National Building Regulations and Building • Compensation for Occupational Injuries and Standards Amendment Act, 1995 (Act No. 49 Diseases Act, 1993 (Act No. 130 of 1993) of 1995) • Constitution of the Republic of South • National Environmental Management, 2008 Africa,1996 (Act No. 62 of 2008) • Construction Industry Development Board • National Heritage Council Act, 1999 (Act No. Act, 2000 (Act No. 38 of 2000) 11 of 1999) • Council for the Built Environment Act, 2000 • National Heritage Resources Act, 1999 (Act (Act No. 43 of 2000) No. 25 of 1999) • Criminal Procedure Act, 1977 (Act No. 51 of • National Land Transport Transition Act, 2009 1977) (Act No. 5 of 2009) • Deeds Registries Act, 1997 (Act No. 47 of 1997) • National Road Traffic Act, 1996 (Act No. 93 of • Division of Revenue Act, 2008 (Act No. 2 of 1996) 2008) • National Waste Management Act, 1996 (Act • Electronic Communications Act, 2005 No. 59 of 2008) • Electronic Communications and Transition • Occupational Health and Safety Act, 1993 Act, 2002 (Act No. 25 of 2002) (Act No. 85 of 1993) • Electronic Communications Security (PTY)LTD • Preferential Procurement Policy Framework Act, 2002 (Act No. 68 of 2002) Act, 2000 (Act No. 5 of 2000) • Employment Equity Act, 1998 (Act No. 55 of • Prevention and Combating of Corrupt 1998) Activities Act, 2004 (Act No. 12 of 2004) • Engineering Profession Act, 2000 (Act No. 46 • Project and Construction Management of 2000) Professions Act, 2000 (Act No. 48 of 2000) • Environment Conservation Act, 1989 (Act No. • Promotion of Administrative of Justice Act, 73 of 1989) 2000 (Act No. 3 of 2000) • Firearm Control Act, 2000 (Act No. 60 of 2000) • Promotion of Access to Information Act, 2000 • Government Immovable Asset Management (Act No. 2 of 2000) Act, 2007 (Act No. 19 of 2007) • Property Valuers Profession Act, 2000 (Act No. • Labour Relations Act, 1995 (Act No. 66 of 1995) 47 of 2000) • Landscape Architectural Profession Act, 2000 • Public Finance Management Act,1999 (Act (Act No. 45 of 2000) No. 1 of 1999)

DPWRT Annual Report 2014-15.indb 16 2015/08/18 12:44:42 PM Annual Report • Public Service Act, 1994 (Proclamation No. • South African Schools Act, 1996 (Act No. 84 of 103 of 1994) 1996) • Quantity Surveying Profession Act, 2000 (Act • State Information Technology Agency Act, No. 49 of 2000) 1998 (Act No. 88 of 1998) • Road Transportation Act, 1977 (Act No. 74 of • Town and Regional Planning Act, 2002 (Act 1977) No. 36 of 2002) • Skills Development Act, 1998 (Act No. 97 of • Transport Appeal Tribunal Act, 1998 (Act No. 1998) 39 of 1998) • Skills Development Levies Act, 1999 (Act No. • Transvaal Roads Ordinance, 1957 (Ordinance 9 of 1999) No. 22 of 1957) • South African Qualifications Authority Act, 1995 (Act No. 58 of 1995) 8. ORGANISATIONAL STRUCTURE

Top Structure of the Department

DG Nhlengethwa MEC of the Department

KM Mohlasedi Head of Department L16

PM Khoza Vacant MC Morolo Acting DDG:Corporate Strategy Transport Management DDG: Public Infrastructure Branch L15 Branch L15 Branch L15 • Internal Audit • Transport Operations • Programme Management • Communications • Building Infrastructure • Legal Services • Property Management • Security Services • Transport Infrastructure • Government Motor Transport • Community Based Programmes HN Mdaka • District Services Acting Chief Financial Officer • Integrated Planning • Human Resources Management Branch L14 and Development • Management Accounting • Supply Chain Management • Financial Accounting • Risk Management • Asset Management 17

DPWRT Annual Report 2014-15.indb 17 2015/08/18 12:44:49 PM Annual Report

DPWRT Annual Report 2014-15.indb 18 2015/08/18 12:44:58 PM Annual Report

PERFORMANCE PART B INFORMATION

DPWRT Annual Report 2014-15.indb 19 2015/08/18 12:45:04 PM Annual Report 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES The AGSA currently performs the necessary audit on the received Infrastructure Programme procedures on the performance information to Management Plans (IPMPs). For various reasons provide reasonable assurance in the form of an (mainly budget related), the plans were revised audit conclusion. The audit conclusion on the during the year. Amidst this, DPWRT managed to performance against predetermined objectives complete 108 projects at year end. is included in the report to management, with material findings being reported under the Transport Infrastructure Demands Predetermined Objectives heading in the Report on other legal and regulatory requirements DPWRT is expected to prioritise the improvement section of the auditor’s report. and expansion of the road network across the Province. However, the baseline for infrastructure Refer to page 100 of the Report of the Auditor budget allocation continues to be outweighed General, published as Part E: Financial Information. by the demand. Given the government’s limited finances, private funding will need to be sourced for some of these investments, and policy 2. OVERVIEW OF DEPARTMENTAL planning and decision-making will require trade- PERFORMANCE offs between competing national goals. 2.1 SERVICE DELIVERY ENVIRONMENT Natural Disasters The 2014/15 financial year has come and gone, Mpumalanga has been on the receiving end but the achievements thereof will stay with us. of the global effect of climate change. This has As expected, the financial year had its highs and been seen through the sporadic changes in lows which are summarised below. rainfall patterns and flood levels. Flood and storm damaged infrastructure has become a yearly Building Infrastructure Programme occurrence in the Province leading to retrogression of developmental gains. DPWRT was allocated As an implementing agent and custodian of R35.7 million during the budget adjustment period the Mpumalanga Provincial Government’s as part of the disaster relief funding. However, this immovable asset portfolio, DPWRT has the was inadequate thus creating a backlog on the responsibility of planning and managing the repair program for storm damaged infrastructure. delivery processes of infrastructure and its related services. Subsequently, infrastructure plans 2.2 SERVICE DELIVERY IMPROVEMENT PLAN and project lists were received from the client departments for implementation in the 2014/15 The tables below highlight the service delivery financial year. A total of 214 projects were listed standards and the performance against these.

Main services and standards Main services Beneficiaries Current/actual Desired standard of Actual achievement standard of service service Surfaced road Motorists and truck 89 473m2 of reported 89 473m2 of reported 138 980m2 of patching drivers potholes fixed potholes to be fixed the identified or reported potholes were fixed during the year under review. Fixing of 100 % of More than 100% potholes within 72 of the potholes on hours after being Provincial roads reported were fixed within 168 hours after being identified or reported. Processing of Taxi and bus 250 Applications 250 Applications for 214 Applications for applications for operators processed operating licenses operating licenses transport operations processed were processed. Registration of 78 Registration of taxi None. (There was taxi associations associations done an amendment in done within 12 within 90 days the NLTTA 22 of 2000 months to NLTA 5 of 2009. No registration is required in terms of the NLTA 5 of 2009).

DPWRT Annual Report 2014-15.indb 20 2015/08/18 12:45:04 PM Annual Report Batho Pele arrangements with beneficiaries (Consultation access etc.) Current/actual arrangements Desired arrangements Actual achievements Surfaced Road Patching

Weekly, monthly and quarterly Weekly meetings between district Weekly meetings were held meetings undertaken with all relevant offices between Head Office and stakeholders. Regional Offices and PMU. Monthly meetings with Meetings with municipalities were municipalities held as and when required. Quarterly meetings with road Monthly and quarterly meetings users (local roads boards) for transport, commuters and freight forums were held. Processing of Applications for Transport Operations Public Transport Imbizo undertaken Quarterly Public Transport Imbizo No Public Transport Imbizos were held due to budgetary constraints. However, consultation was done through transport and commuter forums during the Transport Month. Service delivery information tools Current/actual information tools Desired information tools Actual achievements Surfaced Road Patching and processing of applications for Transport Operations Telephones and e-mails Telephones and e-mails All Departmental offices are equipped with switchboards, telephones and e-mails to receive customers enquiries and complaints. Front line personnel Front line personnel / officials Frontline staff are trained on trained on customer care customer relations. Monthly newsletters published and Monthly newsletters published 30 000 Quarterly newsletters were distributed at departmental events and distributed at Departmental printed and distributed to the events public. The publications covered Departmental programmes and projects. Annual Performance Plan (APP) Budget and targets reflected in Budget and targets of the two the Annual Performance Plan main services were reflected in the APP: 2014/15. Monthly, quarterly and annual reports Monthly, quarterly and annual Performance on these two services reports were reported on monthly, quarterly and annual reports that were submitted to relevant oversight authorities as part of accountability. Radio talkshows 48 Radio talkshows 48 Radio talkshows were held on Ikwekwezi FM and Ligwalagwala FM and these covered news on provincial road works and transport operations. Suggestion boxes Suggestion boxes placed at head Suggestion boxes were placed at office and district offices head office and all district offices. Departmental Website Departmental website Departmental website was updated on regular basis.

Complaints mechanism Current/actual complaints mechanism Desired complaints mechanism Actual achievements Correspondences Correspondences The Department received and responded to various correspondences in a form of letters, petitions, summonses, PAIA request etc. Switchboards Switchboards Switchboard operators and frontline staff are trained on customer relations. This includes responding to customer queries and dispatching of calls to relevant sections. Head office, regional and district offices Head office, regional and district Customers can visit any of the offices Department’s offices to register their complaints.

DPWRT Annual Report 2014-15.indb 21 2015/08/18 12:45:04 PM Annual Report 2.3 ORGANISATIONAL ENVIRONMENT Appointment of Key Personnel In building a capable workforce, a total of 60 posts (10 SMS) were filled during the reporting period. Running parallel to this exercise was the process of aligning the organogram which saw it being endorsed by the Department of Public Service and Administration (DPSA). The structural reform followed an intensive and comprehensive review of the Department’s core business, implementation model, functions, services, workforce and budget. Introduction of the Provincial moratorium on filling of posts in March 2015 has necessitated another review of the organizational structure. Capacity Building Programmes Investment in technical skills development is crucial 2.4 KEY POLICY DEVELOPMENTS AND LEGISLATIVE to the delivery of the infrastructure mandate. CHANGES To unlock potential and attract required skills, a range of capacity building initiatives (e.g. Young There were no changes to the policy or Professionals Programme, Internship, Learnership, legislation mandates of the Department. However, etc) have been developed to optimize the the following policies were developed or reviewed attraction and recruitment of targeted groups. as part of enhancing internal controls and improving The implementation of this capacity building good governance. initiatives in 2014/15 provided opportunities for 108 tertiary graduates and 50 learners to gain • The following policy was developed and assistance and experience for future employment. approved in the 2014/15 financial year:

Cost Curtailment Measures o Notice Board Significant re-prioritisation had to be done during • The following policies were reviewed in the the year due to the budget pressures from the 2014/15 financial year: Transport Infrastructure Programme. To this regard, major interventions with minimal impact on service o Overtime delivery were introduced during the financial year. o Travel and Subsistence Amongst these, was cost curtailment measures o Risk Management and streamlining of the Department’s operations o Fraud Prevention to eliminate redundancies and wastage. o Recruitment o Procurement of Goods and Services Information and Communication Technology (ICT) o Whistle Blowing o Telephone and Cellphone ICT systems are critical enablers for DPWRT to achieve its outcomes. Therefore these systems should be adaptive and responsive to the Department’s emerging and ongoing needs. To enhance ICT Governance, an ICT Steering Committee was established in accordance with the ICT Charter. Furthermore, the Road Asset Management System (RAMS) change management procedure manual and RAMS backup procedure manual were approved during the year under review. Maintenance Management System (MMS) The Department continued to improve governance of transport infrastructure by implementing more efficient project planning, scheduling and program management initiatives. This year saw completion of the computerized Maintenance Management System (MMS) and commencement of the related training. This system gives the Department more effective and efficient roads maintenance productivity and also complements the RAMS. Combined, these systems support evidence-based transport infrastructure planning.

DPWRT Annual Report 2014-15.indb 22 2015/08/18 12:45:07 PM Annual Report 3. STRATEGIC OUTCOME ORIENTED GOALS The table below describes the Department’s strategic outcome oriented goals as reflected in the Strategic Plan and the progress made towards the achievement of these goals.

Goal Progress by 31 March 2015 To manage resources prudently • 99.9% of the budget allocation was spent. • 99.9% of invoices were paid within 30 days of receipt. • 98.0% of performance agreements were signed. To provide, manage and maintain building and road • 3 Infrastructure Project Implementation Plans (IPIPs) infrastructure were developed for Department of Education, Health and Social Development. • Planning and design of 43 building and 6 roads infrastructure projects was finalised. • Completed 108 buildings and 9 road infrastructure projects. • Updated the provincial immovable assets with 2 500 assets. To ensure effective traffic, public and freight transport • 6 Bus operators were subsidised to enable affordable management and accessible public transport. • Financial assistance (R7million) was provided to the Provincial Taxi Council. • 111 Operators were contracted to transport learners 11 811 446 learners. • 4 Infrastructure projects were completed in support of improving rural access and mobility. To co-ordinate the implementation of EPWP 2 in the • 50 467 work opportunities were created. province • 16 NYS co-operatives benefited through the building maintenance programme. • 40 Emerging contractors were mentored on the Sakh’abakhi Programme. To continually improve our systems and procedures • An Audit Action Plan was developed to address the issues raised by Auditor General. • A Risk register was developed and monitored on a monthly basis. • 1 Policy was developed and 8 policies were reviewed. Progress towards achievement of National Outcomes and National Development Plan Priorities DPWRT’s mandate has evolved to take cognizance In order for the priorities espoused in the of the 14 National Outcomes and the Department election manifesto, NDP, MP Vision 2030 and MTSF has a responsibility to oversee the implementation (2014 - 2019) to be realized, key mechanisms must of National Outcome 6: an efficient, competitive be in place. A capable, efficient, effective and and responsive economic infrastructure network. development oriented public service is required In line with this priority, 09 transport infrastructure, to play a supportive role in pursuance of the main 4 IRMA and several maintenance projects were strategic priorities of government. The reforms completed during the reporting period. and initiatives that were introduced during the year, sought to ensure efficiency in the delivery The Department also supports implementation of of services. other national outcomes e.g. 1, 2, 3, 4, 13 and 14. In this regard, DPWRT acted as an implementing agent of infrastructure projects for 6 client departments. To this regard, the Department delivered 108 projects in a manner that promotes its vision of providing infrastructure that supports socio-economic development. The current administration has committed to ensuring 6 million (300 918 provincial target) public employment work opportunities by 2019. This target is in line with outcome 4 and the National Development Plan. At 31 March 2015, Mpumalanga had created 50 467 work opportunities against a target of 51 135, thus indicating a 99% achievement. The Province is on track to meeting its work opportunity target by 2019.

DPWRT Annual Report 2014-15.indb 23 2015/08/18 12:45:09 PM Annual Report 4. PERFORMANCE INFORMATION BY PROGRAMMES 4.1 PROGRAMME 1: ADMINISTRATION Purpose Strategic objectives The purpose of this Programme is to provide • To optimally utilise financial and physical the Department with administrative, strategic, resources financial and corporate support services in order • To provide integrated communication services to ensure that it delivers on its mandate in an • To improve risk management, control and integrated, efficient, effective and sustainable good governance manner. Strategic objectives, performance indicators, Sub-programmes planned targets and actual achievements • Office of the MEC This Programme played a supportive role in • Management of the Department pursuit of the Department’s vision to provide an • Corporate Support integrated transport system and infrastructure that promotes socio-economic development. In pursuit of this vision, new opportunities were identified to improve service delivery, governance and accountability. Preformance on strategic objectives Strategic Actual Planned target Actual Deviation Comment on objectives achievement 2014/15 achievement from planned deviations 2013/14 2014/15 target to actual achievement for 2014/15 To optimally 99.9% 100% 99.9% -0.1% None. utilise financial Expenditure Expenditure Expenditure Expenditure and physical resources To provide 50 000 30 000 30 000 None. None. integrated Newsletters Newsletters Newsletters communication services To improve risk Unqualified audit Clean audit Unqualified audit There were An audit action management, opinion opinion opinion minimal matters plan will be control of emphasis. developed to and good address these governance matters. Reasons for deviations There were minimal matters of emphasis raised by the Auditor-General which resulted in an unqualified audit opinion. Performance indicators Performance Actual Planned target Actual Deviation Comment on indicator achievement 2014/15 achievement from planned deviations 2013/14 2014/15 target to actual achievement for 2014/15 Sub-Programme: Employee Health and Wellness Programme % of Women in 37.5% 50% 38.0% -12% Women will be SMS positions prioritised once the moratorium on filling of posts is uplifted. % of Persons 2.1% 2% 2.2% 0.2% None. with disabilities employed in the Department % of Persons 2.08% 2% 2.0% None. None. with disabilities employed in SMS positions

DPWRT Annual Report 2014-15.indb 24 2015/08/18 12:45:09 PM Annual Report Performance Actual Planned target Actual Deviation Comment on indicator achievement 2014/15 achievement from planned deviations 2013/14 2014/15 target to actual achievement for 2014/15 Sub-Programme: Human Resource Utilisation and Capacity Development % of 99.8% 100% 98.0% -2% • Non- Performance compliance by agreements 19 officials signed • 50 Newly appointed Transport Inspectors and 1 SMS member have not yet signed their agreements. Number of 107 100 108 8 More interns interns enrolled were enrolled to address the shortage of scarce skills. Number of 50 50 50 None. None. learners enrolled Sub-Programme: Integrated Planning Annual 1 1 1 None. None. Performance Plan approved Annual Report 1 1 1 None. None. compiled Strategic Plan New indicator 1 1 None. None. approved Evaluation New indicator 1 0 -1 The study has studies commenced conducted and it will be completed in the next financial year. Sub-Programme: Financial Management % of Invoices 99% 100% 99.9% -0.1% Late payment of received and 4 invoices due to paid within 30 inactive supplier days banking details on the system and LOGIS system error. Total amount R 23.97 million R21 million R23.8 million R2.8 million More revenue of revenue was generated collected from auctions.

Reasons for deviations and strategy to overcome • Evaluation study conducted area(s) of under performance There was a delay in the appointment of the service provider. However, the evaluation • % of Women in SMS positions study has commenced and it is envisaged 10 of the 16 Senior Management posts to be completed in the 2nd quarter of the advertised were finalised of which 2 women 2015/16 financial year. were appointed. Women will be prioritised once the moratorium on filling of posts is Changes to planned targets uplifted. The Programme did not make any in year changes • % of Performance agreements signed to its planned targets that are contained in the All officials in a Department are required tabled APP. to sign a performance agreement with their respective supervisor at the beginning Linking performance with budgets of each financial year. Newly appointed officials have 3 months to conclude their The Programme managed to spend 99.9% of its agreements as per the Public Service Act. budget. In doing so, it was able to achieve 9 of Disciplinary action was taken against the its 12 (75%) indicators for the year under review. 19 non-complying officials. The 51 newly The under-achievement is not linked to the appointed officials were still within the 3 expenditure outcome but to other various reasons months period as stipulated in the Public as mentioned above. Service Act. 25

DPWRT Annual Report 2014-15.indb 25 2015/08/18 12:45:09 PM Annual Report Sub-programme expenditure Sub- 2014/15 2013/14 programme Final Actual (Over)/ under Final Actual (Over)/ under name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000 Office of the 6,251 6,250 1 7,640 7,640 0 MEC Management 3,950 3,950 0 4,546 4,546 0 of the Department Corporate 217,205 217,205 0 208,355 208,355 0 Support TOTAL 227,406 227,405 1 220,541 220,541 0

4.2 PROGRAMME 2: PUBLIC WORKS INFRASTRUCTURE Purpose The purpose of this Programme is to provide a • To provide project planning and design balanced and equitable provincial government services building infrastructure by promoting accessibility • To provide effective infrastructure that is sustainable, integrated and environmentally implementation sensitive which supports economic development • To maintain Provincial immovable assets and and social empowerment. equipment • To manage the immovable property and Sub-programmes facility portfolio • Programme Support • Design Strategic objectives, performance indicators, • Construction planned targets and actual achievements • Maintenance • Property Management The Department managed to complete 108 building projects during the year under review. Strategic objectives As an implement agent, DPWRT has continued to maintain and sustain intergovernmental • To provide effective infrastructure programme relation in order to nurture the support required for management services infrastructure development and broader strategic objectives. Preformance on strategic objectives Strategic Actual Planned Actual Deviation Comment on objectives achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 To provide 3 IPMPs 4 IPMPs 3 IPMPs -1 IPMP Non-submission effective by DCSR. infrastructure programme management services To provide 59 Designs 40 Designs 43 Designs 3 Designs Revision of project planning plans by client and design departments. services To provide 30 Projects 79 Projects 82 Projects 3 Projects Revision of effective registered registered registered registered plans by client infrastructure departments. implementation To maintain 5 524 Immovable 5 527 Immovable 5 349 Immovable -178 Immovable Closure of 74 provincial assets assets assets assets farm schools, immovable whilst 104 assets assets and were transfered equipment to National Government. To manage Asset register Updated assets Asset register None None. the immovable updated register updated property and facility portfolio

DPWRT Annual Report 2014-15.indb 26 2015/08/18 12:45:10 PM Annual Report Reasons for deviations • Submission of IPMPs • Immovable Asset Management The Department of Culture, Sports and The number of assets in the Immovable Asset Recreation (DCSR) did not submit an IPMP for Register have decreased due to the closure the 2015/16 financial year due to capacity of 74 farm schools by DOE, whilst 104 assets constraints. were transferred to National Government.

Performance indicators Performance Actual Planned Actual Deviation Comment on indicator achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 Sub-programme: Planning CAMP compiled 1 1 1 None. None. and submitted to Provincial Treasury in accordance with GIAMA Sub-programme: Design Number of DoE=32 DoE=24 DoE=32 8 Revision by detailed designs the client out on tender department. DoH=16 DoH=8 DoH=8 None. None. DSD=5 DSD=4 DSD=2 -2 Revision by the client department. DCSR=5 DCSR=4 DCSR=1 -3 Challenges relating to budget constraints, change in scope of work, and identification of a suitable site. Sub-programme: Construction Number DoE=60 DoE=88 DoE=58 -30 Late payments, of projects DoH=8 DoH=33 DoH=2 -31 poor performing completed contractors, within the DSD =2 DSD =3 DSD=0 -3 labour and the agreed time DCSR=0 DCSR=6 DCSR=1 -5 re-prioritisation of period projects by client Number DoE=72 DoE=88 DoE=79 -9 departments See reasons for of projects DoH=13 DoH=33 DoH=22 -11 completed deviation in the within agreed DSD =2 DSD =3 DSD =3 None. next page. budget DCSR=2 DCSR=6 DCSR=3 -3 Value of 99% 85% 100% 15% More bids were contracts received from awarded to HDI contractors. HDI contractors expressed as a percentage of the total value of contracts awarded Value of 59% 30% 83% 53% More bids were contracts received from awarded Women Owned to WOE’s Enterprises contractors (WOEs). expressed as a percentage of the total value of contracts awarded

DPWRT Annual Report 2014-15.indb 27 2015/08/18 12:45:10 PM Annual Report Performance Actual Planned Actual Deviation Comment on indicator achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 Sub-Programme: Immovable Asset Management Number of New indicator 2 500 2 500 None. None. immovable assets recorded in the IAR in accordance with the mandatory requirements of National Treasury Sub-Programme: Facilities Operations Number of 9 9 9 None. None. properties receiving facilities management services Sub-Programme: Building Maintenance Number of 0 600 600 None. None. condition assessments conducted on state-owned buildings Sub-Programme: Real Estate Services Number of leases 45 19 19 None. None. concluded in respect of office accommodation Reasons for deviations and strategy to overcome area(s) of under performance • Number of detailed designs out on tender • Projects completed within the contract The Department of Social Development period and budget (DSD) requested that planning for the 2 The reasons for under performance range outstanding projects i.e. Belfast Branch from poor/slow performance by contractors, Office and Ehlanzeni Secure Care Center be unaccepted quality of works, use of rolled over to the 2015/16 financial year due unsuitable material, termination of contractor to unconfirmed site land and revised designs appointments, community disputes, pending respectively. approval of variation orders, conflict between the contractor and principal agent, cash 4 Designs could not be completed for the flow problems etc. Penalties were applied Department of Culture, Sports and Recreation on some of the delayed projects which will (DCSR) due to the following reasons: now be completed in the 2015/16 financial - Acornhoek Library could not be finalized year. due to the delay in confirmation of the preferred project design. As a result of the above, the contractors - Kanyamazane Library could not be on the following projects were replaced: completed as the confirmed project Piet Retief Mortuary, Sinqobile Clinic, site was too small for the proposed Malibongwe Primary School, Ubuhle Buzile project. Secondary School and Ilanga Secondary - Planning for the High Altitude Training School. The process of re-appointment led Center has been stalled due to to loss of original planned time. Several budgetary constraints. infrastructure governance structures have - The scope of work for the Cultural Hub been put in place to enhance oversight on was reduced hence final designs were the delivery of building infrastructure (e.g not concluded. PPICC, Monthly POMM, JOC meetings, etc).

DPWRT Annual Report 2014-15.indb 28 2015/08/18 12:45:10 PM Annual Report Changes to planned targets Linking performance with budgets The Programme did not make any in year changes The Programme spent all its budget allocation for to its planned targets that are contained in the the year under review. The capital budget for most tabled APP. However, eight (8) storm damaged of the projects implemented by this Programme schools were added in the project list whilst the is allocated to the various client departments construction of Sabie Hospital, Mugena, Tekwane and therefore the expenditure outcomes are North and Mathibela High Schools was brought not directly linked to most of the Programme’s forward to commence in the 2014/15 financial performance outputs. year. Sub-programme expenditure Sub- 2014/15 2013/14 programme Final Actual (Over)/under Final Actual (Over)/under Name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000 Programme 3,101 3,100 1 2,948 2,948 0 Support Design 16,505 16,505 0 16,257 16,257 0 Construction 24,074 24,074 0 18,955 18,955 0 Maintenance 13,251 13,251 0 15,243 15,232 11 Property 533,689 533,688 1 539,118 539,118 0 Management TOTAL 590,620 590,618 2 592,521 592,510 11

4.3 PROGRAMME 3: TRANSPORT INFRASTRUCTURE Purpose Strategic objectives The purpose of this Programme is to promote • To provide project planning and design accessibility and the safe, affordable movement services of people, goods and services through the delivery • To provide effective infrastructure and maintenance of transport infrastructure that implementation is sustainable, integrated and environmentally sensitive, and which supports and facilitates social Strategic objectives, performance indicators, empowerment and economic growth. planned targets and actual achievements Sub-programmes In support of government priorities, the Department delivered better roads across the Province. • Programme Support In addition to investing in roads construction and • Infrastructure Planning maintenance, the Department also delivered • Design eight (8) design concepts and planning tools • Construction (e.g. MMS) to improve the transport delivery • Maintenance infrastructure value chain. Performance on strategic objectives Strategic Actual Planned Actual Deviation Comment on objectives achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 To provide 13 Designs 6 Designs 6 Designs None None. project planning and design services To construct and 30km of gravel 20km of gravel 32km of gravel 12km of gravel Additional maintain roads roads upgraded roads upgraded roads upgraded roads upgraded funds received infrastructure to surface roads to surface roads to surface roads to surface roads to offset budget shortfall and good performance by contractors. 132 lane- 154 lane-km 162 lane-km 8 lane-km Good km of roads of roads of roads of roads performance rehabilitated rehabilitated rehabilitated rehabilitated by contractors on multi-year projects.

DPWRT Annual Report 2014-15.indb 29 2015/08/18 12:45:10 PM Annual Report Reasons for deviations The targets were based on the budget allocation received from Treasury which was insufficient to fund all ongoing projects from the previous financial year. Some sub-programmes made funds available to off-set the budget shortfall, hence more work could be completed. The Programme requested additional funding for upgrade projects and only R35.7 million was received during the budget adjustment period.

Performance indicators Performance Actual Planned Actual Deviation Comment on indicator achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 Sub-programme: Infrastructure Design Number of 13 6 6 None. None. Infrastructure designs completed Sub-programme: Infrastructure Construction Number of 30 20 32 12 Additional kilometers of funds received gravel roads to offset upgraded to budget shortfall surfaced roads and good performance by contractors. Sub-programme: Maintenance Number of 132 154 162 8 Good lane-km of performance surfaced roads by contractors rehabilitated on multi-year projects. Number of 387 387 533 019 807 113 274 094 Reseal was square meters of prioritised on surfaced roads coal haulage resealed roads. Number of 119 113 122 9 The output kilometers of surpassed the gravel roads target due re-gravelled to extended Municipal Support Programme. Number of 235 535 89 473 138 980 49 507 High demand square meters due to poor road of blacktop condition. patching (including pothole repairs) Number of 28 878 32 571 27 066 -5 505 Reprioritisation kilometers of of budget to do gravel roads more patching bladed and support commitments on Siyatentela Programme. Number of 5 349 5 100 5 475 375 Road assessment kilometers of was focused on surfaced roads surfaced roads assessed (VCI’s than gravel completed as roads. per TMH12)

DPWRT Annual Report 2014-15.indb 30 2015/08/18 12:45:12 PM Annual Report Performance Actual Planned Actual Deviation Comment on indicator achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 Number of 3 053 2 180 2 066 -114 Road assessment kilometers of was focused on gravel roads surfaced roads assessed (VCI’s than gravel completed as roads. per TMH9) Number of New indicator 7 280 7 541 261 None. kilometers of road infrastructure assessed Reasons for deviations and strategy to overcome area(s) of under performance • Blading of gravel roads Some of the allocated budget for blading was reprioritised to do more patching and support commitments on Siyatentela Programme. The Department will continue to introduce operational efficiencies that will enable achievement of all planned targets for the year. • Kilometers of gravel roads assessed The focus of the visual road assessment was on surfaced roads. This was done to address the identified information gaps on RAMS. However, this challenge is not expected to recur in the upcoming financial years. Changes to planned targets The Programme did not make any in year changes to its planned targets that are contained in the tabled APP. Linking performance with budgets This Programme managed to achieve 8 of its 10 (80%) planned targets during the year under review. At the time of planning, the Department anticipated a positive response from Treasury on the requested additional funding for priority rural access roads. However, only R35.7 million was received hence the reprioritisation according to the available budget. The Programme spent all its allocated budget for the year under review.

Sub-programme expenditure Sub- 2014/15 2013/14 programme Final Actual (Over)/under Final Actual (Over)/ under Name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000 Programme 1,410 1,410 0 2,124 2,124 0 Support Infrastructure 64,596 64,596 0 60,944 60,944 0 Planning Design 19,170 19,170 0 33,008 33,008 0 Construction 1,275,798 1,275,798 0 1,071,031 1,071,031 0 Maintenance 1,008,890 1,008,890 0 882,024 881,548 476 TOTAL 2,369,864 2,369,864 0 2,049,131 2,048,655 476

DPWRT Annual Report 2014-15.indb 31 2015/08/18 12:45:14 PM Annual Report 4.4 PROGRAMME 4: TRANSPORT OPERATIONS Purpose Strategic objectives The purpose of this Programme is to plan, regulate • To manage scholar transport and facilitate the provision of integrated land • To provide integrated transport planning transport services through co-ordination and co- • To develop and maintain public infrastructure operation with national planning authorities, CBOs, • To manage public transport operations NGOs and the private sector in order to enhance • To regulate public transport the mobility of all communities particularly those currently without or with limited access. Strategic objectives, performance indicators, planned targets and actual achievements Sub-programmes The achievement of this Programme’s indicators • Programme Support encourages public transport as part of an • Public Transport Services integrated land use and transport system. DPWRT • Transport Safety and Compliance also supported education priorities through • Transport Systems provision of scholar services and the Shov’kalula • Infrastructure Operations programme. Performance on strategic objectives Strategic Actual Planned Actual Deviation Comment on objectives achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 To manage 66 613 14 122 380 11 811 446 -2 310 934 Under scholar transport Learners Learners Learners Learners performance was due to reconfiguration of routes and public holidays that included the national elections. To provide None ▪Provincial ▪Draft Provincial ▪Approved Stakeholder integrated Land Transport Land Transport Provincial consultation still transport Framework Framework Land Transport in progress. planning ▪Provincial Land ▪Draft Provincial Framework Transport Policy Land Transport ▪Approved Policy Provincial Land Transport Policy To develop and 7 IRMA projects 5 IRMA projects 4 IRMA projects -1 IRMA project Late maintain public appointment of infrastructure service provider. To manage 11 202 Operators 11 500 Operators 9 656 Operators -1 844 Operators Actual output public transport registered registered registered registered is dependent operations on the number of applications received. 400 Transport 350 Transport 0 Transport -350 Transport Training was operators trained operators trained operators trained operators trained not done due to budgetary constraints. To regulate 336 Operating 250 Operating 214 Operating -36 Operating Actual output public transport licenses licenses licenses licenses is dependent on the number of applications received. 1 928 1 800 2 165 365 There was Roadblocks Roadblocks Roadblocks Roadblocks increased enforcement and special scholar transport operations. Reasons for deviations • Transport operators trained The appointment of a service provider for • Permits converted to operating licenses training of transport operators could not The actual output is a dependable variable be done due to budget pressures in other and therefore is influenced by a number of programmes. However, operators were inputs beyond the control of the Department. identified for training in the 2015/16 financial year.

DPWRT Annual Report 2014-15.indb 32 2015/08/18 12:45:14 PM Annual Report Changes to planned targets The Programme did not make any in year changes to its planned targets that are contained in the tabled APP. Performance indicators Performance Actual Planned Actual Deviation Comment on indicator achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 Sub-programme: Public Transport Services Number of vehicles 567 567 567 None. None. subsidised Number of routes 154 154 154 None. None. subsidised Number of 25 738 518 27 075 476 27 079 808 4 332 Introduction of vehicle kilometers high occupancy subsidised vehicles Kilometers operated 45 394 47 752 47 760 8 lead to more per vehicle passengers being Passengers per 95 055 104 748 110 045 5 297 transported. vehicle However, this Passengers per trip 68.5 71.3 75.4 4.1 did not have an operated impact on the Staff per vehicle 2.2 2.2 2.2 None. budget since it was ring fenced Number of 48 050 838 52 761 489 55 239 401 2 477 912 as per the grant subsidised allocation. passengers Number of 5 875 873 6 631 833 7 201 147 569 314 unsubsidized passengers Number of trips 786 250 833 040 828 877 -4 163 Less trips were subsidised operated due to service delivery strike and national elections. Sub-programme: Scholar Transport Number of scholar 111 111 111 None. None. transport operators contracted Number of scholar 1 561 1 364 1 375 11 None. transport routes monitored Number of learners 66 613 14 122 380 11 811 446 -2 310 934 Under transported performance was due to reconfiguration of routes and public holidays that included the national elections. Sub-programme: Transport Infrastructure Number of projects 7 5 4 -1 Late completed appointment of service provider. Number of square New indicator 360 263 -97 The remaining meters non- project was at motorised transport 90% completion facility constructed at year end. Sub-programme: Regulation and Control Number of 1 928 1 800 2 165 365 There was roadblocks increased conducted enforcement and special scholar transport operations.

DPWRT Annual Report 2014-15.indb 33 2015/08/18 12:45:14 PM Annual Report Reasons for deviations and strategy to overcome • Square meters of non-motorised transport area(s) of under performance facility constructed The appointment of a service provider for • Trips subsidised Ronaldsey Footbridge was delayed due to the The Department subsidised less trips during the budget shortfall in the Transport Infrastructure year due to the service delivery strike that was Programme. However, the project has held in Nkomazi area in September 2014 and commenced and it will be completed in the the national elections that were declared a 2015/16 financial year. public holiday after the Departmental plans were finalised. Changes to planned targets • Learners transported The Programme did not make any in year changes Scholar transport routes were reconfigured to its planned targets that are contained in the as a result of new schools opening and/ tabled APP. or closing. The number of public holidays, which included the national elections, also Linking performance with budgets contributed to the under-performance. DPWRT will work closely with the Department The Programme underspent on the Public of Education to improve planning on this Transport Services sub-programme due to under indicator. utilisation of the Public Transport Operations Grant (PTOG). Sub-programme expenditure Sub- 2014/15 2013/14 programme Final Actual (Over)/ under Final Actual (Over)/ under name appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000 Programme 1,914 1,914 0 1,866 1,866 0 Support Public 934,467 934,041 426 951,369 951,369 0 Transport Services Transport 30,226 30,226 0 22,673 22,673 0 Safety and Compliance Transport 12,703 12,703 0 16,332 16,332 0 Systems Infrastructure 15,024 15,024 0 25,607 25,607 0 Operation TOTAL 994,334 993,908 426 1,017,847 1,017,847 0

4.5 PROGRAMME 5: COMMUNITY BASED PROGRAMMES Purpose Strategic objectives, performance indicators, planned targets and actual achievements The purpose of this Programme is to manage the implementation of programmes and strategies In line with achieving EPWP imperatives, that lead to the development and empowerment this Programme continued with the coordination of communities and contractors. This includes the of job creation across the Province. In order to provincial management and co-ordination of the create work opportunities in a short period of time, Expanded Public Works Programme. public sector budgets were used to introduce or expand labour intensive methods in the four main Sub-programmes sectors namely: Infrastructure, Environment and Culture, Social and Non - State. • Programme support • Community development • Innovation and empowerment • EPWP coordination and monitoring Strategic objectives • To coordinate the successful implementation of EPWP 2 • To facilitate and implement the Enterprise Development Programme • To facilitate and implement the National Youth Service

DPWRT Annual Report 2014-15.indb 34 2015/08/18 12:45:17 PM Annual Report Performance on strategic objectives Strategic Actual Planned Actual Deviation Comment on objectives achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 To coordinate 66 520 Jobs 51 135 Jobs 50 467 Jobs -668 Jobs Late the successful created created created created implementation implementation of Environment of EPWP and Culture sector projects. To facilitate 40 Emerging 40 Emerging 40 Emerging None. None. and implement Contractors Contractors Contractors the Enterprise Development Programme To facilitate and 350 Work 350 Work 350 Work None. None. implement the opportunities opportunities opportunities National Youth created for NYS created for NYS created for NYS Service beneficiaries beneficiaries beneficiaries Reasons for deviation The under achievement on job creation was as a result of late implementation of Environment and Culture sector projects hence overall target was not achieved. Performance indicators Performance Actual Planned Actual Deviation Comment on indicator achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 Sub-programme: Community Development Number of 8 279 13 039 16 577 3 538 Over EPWP work achievement opportunities was due to created by increased the Provincial employment in Department of the Siyatentela Public Works/ programme. Roads Number of Full 4 400 4 252 5 953 1 701 Over Time Equivalents achievement (FTEs) created by was due to the Department increased of Public Works/ employment in Roads the Siyatentela programme. Sub-programme: Innovation and Empowerment Number of 3 3 3 None. None. Beneficiary Empowerment Interventions Number of New indicator 31 31 None. None. public bodies reporting on EPWP targets within the Province Number of New indicator 4 4 None. None. interventions implemented to support public bodies in the creation of targeted number of work opportunities in the Province

DPWRT Annual Report 2014-15.indb 35 2015/08/18 12:45:17 PM Annual Report Performance Actual Planned Actual Deviation Comment on indicator achievement target achievement from planned deviations 2013/14 2014/15 2014/15 target to actual achievement for 2014/15 Sub-programme: EPWP Co-ordination and Monitoring Number of jobs 66 520 51 135 50 467 -668 Late created implementation of Environment and Culture sector projects. Number of Full 24 515 20 214 22 798 2 584 The duration of Time Equivalents projects across (FTEs) all sectors were for a longer period. Number of 36 019 28 124 26 544 -1 580 Low number youths employed of youth (18-35) employment on infrastructure and social sector projects. Number 41 377 28 124 32 887 4 763 More women of women were employed employed on social sector projects. Number of 1 040 1 023 75 -948 Most people people living with disability are with disabilities receiving social grants. Reasons for deviations and strategy to overcome area(s) of under performance

• Number of jobs created • People with disabilities The under achievement was as a result of late The under achievement is due to the fact implementation of Environment and Culture that most of the disable persons are receiving sector projects hence overall target not social grants. The Department will engage achieved. One on one meetings will be held the Provincial Disability Desk to encourage with relevant public bodies with emphasis participation of this target group in EPWP on the commitments made during the EPWP across all public bodies. Summit that was held in August 2014. All stakeholders signed declarations to pursue Changes to planned targets the job creation targets that were set for the Province. The Programme did not make any in year changes to its planned targets that are contained in the • Number of youths employed tabled APP. The under achievement on youth employed was due to the social sector programmes Linking performance with budgets which attracted more adult women on projects such as Home Community based care The budget for this Programme is mainly for the services. There were also less young people coordination of EPWP. However, the budgets appointed on infrastructure programmes due for implementation of projects are allocated to to the experience requirements and their various implementing public bodies across all intense engagements. One on one meetings spheres of government and non-state entities. will be held with relevant public bodies and sectors to strengthen participation of youth in government programmes. Sub-programme expenditure Sub- programme 2014/15 2013/14 name Final Actual (Over)/ under Final Actual (Over)/ under appropriation expenditure expenditure appropriation expenditure expenditure R’000 R’000 R’000 R’000 R’000 R’000 Programme Support 1,357 1,356 1 1,609 1,609 0 Community 33,375 33,375 0 40,493 40,493 0 Development Innovation and 13,144 13,144 0 15,180 14,610 570 Empowerment EPWP Co-Ordination 11,491 11,491 0 10,888 10,888 0 and Monitoring TOTAL 59,367 59,366 1 68,170 67,600 570

DPWRT Annual Report 2014-15.indb 36 2015/08/18 12:45:17 PM Annual Report 5. TRANSFER PAYMENTS

5.1 TRANSFER PAYMENTS TO ALL ORGANISATIONS OTHER THAN PUBLIC ENTITIES The table below reflects the transfer payments made for the period 1 April 2014 to 31 March 2015.

Name of Type of Purpose for Did the dept. Amount Amount spent Reasons for transferee organisation which the comply with transferred by the entity the funds funds were S38(1) (j) of (R’000) unspent by used the PFMA the entity Bus Public Bus subsidies Yes R514,519 R514,095 N/A companies transport and funding Mpumalanga Taxi operators Provincial Taxi Council All provincial Municipalities Rates and Yes R111,131 R111,131 N/A local taxes municipalities Households Employees Injury on duty, Yes R17,749 R17,749 N/A leave gratuity and claims against the state (cash)

6. CONDITIONAL GRANTS 6.1 CONDITIONAL GRANTS AND EARMARKED FUNDS RECEIVED The Department of Public Works, Roads and Transport received three conditional grants from National Treasury amounting to R 2,099,056 million. The Department managed to spend R2,098,721 million by the end of the financial year (99.99%). The table below describes each of the conditional grants and earmarked funds received by the Department. Road Maintenance Infrastructure Grant Department who transferred the grant National Treasury. Purpose of the grant To supplement provincial roads investments and support preventative, routine and emergency, maintenance on provincial road networks. Ensure provinces implement and maintain road asset management systems. Promote the use of labour-intensive methods in road maintenance. Repair roads and bridges damaged by floods. Expected outputs of the grant Improvement of the Provincial roads infrastructure. Actual outputs achieved Improvement of the Provincial roads infrastructure. Amount per amended DORA 1,594,840 Amount received (R’000) 1,594,839 Reasons if amount as per DORA was Not applicable. not received Amount spent by the department 1,594,839 (R’000) Reasons for the funds unspent by the Not applicable. entity Reasons for deviations on Not applicable. performance Measures taken to improve Not applicable. performance Monitoring mechanism by the Monthly monitoring contract meeting and physical monitoring. receiving department Public Transport Operations Grant Department who transferred the grant National Treasury. Purpose of the grant To provide supplementary funding towards public transport services provided by the provincial department. Expected outputs of the grant To provide access to transport facilities for the citizens of the Province. Actual outputs achieved Provision of access to transport facilities for the citizens of Mpumalanga Province. Amount per amended DORA 491, 418 Amount received (R’000) 491, 418

DPWRT Annual Report 2014-15.indb 37 2015/08/18 12:45:17 PM Annual Report Reasons if amount as per DORA was Not applicable. not received Amount spent by the department 491, 087 (R’000) Reasons for the funds unspent by the Not applicable. entity Reasons for deviations on Not applicable. performance Measures taken to improve Not applicable. performance Monitoring mechanism by the Monthly monitoring contract meeting and physical monitoring. receiving department Expanded Public Works Incentive Grant Department who transferred the grant National Treasury. Purpose of the grant Performance based grant for job creation. Expected outputs of the grant EPWP Incentive Grant. Actual outputs achieved EPWP Incentive Grant. Amount per amended DORA 12,798 Amount received (R’000) 12,798 Reasons if amount as per DORA was Not applicable. not received Amount spent by the department 12,795 (R’000) Reasons for the funds unspent by the Not applicable. entity Reasons for deviations on Not applicable. performance Measures taken to improve Not applicable. performance Monitoring mechanism by the Monthly monitoring contract meetings and physical monitoring done. receiving department Reporting done according to the prescribed template from DORA.

7. CAPITAL INVESTMENT 7.1 CAPITAL INVESTMENT, MAINTENANCE AND ASSET MANAGEMENT PLAN Progress made on implementing the capital, investment and asset management plan. The Department of Public Works, Roads and for these projects remain with the client departments Transport (DPWRT) is responsible for implementation who are responsible for payment of invoices after of building and transport infrastructure projects verification by DPWRT. These assets/ projects remain relating to Provincial Government. The building on the asset registers of the client departments until projects are implemented as per the Infrastructure they are completed and thereafter transferred to Project Management Plans (IPMPs) received the DPWRT. annually from client departments. The budget Infrastructure projects which have been completed in the 2014/15 financial year: Project name Scope of work Targeted completion Actual completion Reasons for variance date date Department of Education 1. Tegwan’s Nest Repairs and 01-Apr-14 01-Apr-14 None. Combined renovations of storm School damaged school. 2. Sitfokotile Repairs and 11-Apr-14 04-Apr-14 None. Secondary renovations of storm School damaged school. 3. Phumalanga Repairs and 11-Apr-14 04-Apr-14 None. Primary School renovations of storm damaged school. 4. Takeleni Primary Repairs and 11-Apr-14 04-Apr-14 None. School renovations of storm damaged school. 5. Enzani Primary Repairs and 11-Apr-14 04-Apr-14 None. School renovations of storm damaged school.

DPWRT Annual Report 2014-15.indb 38 2015/08/18 12:45:17 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date 6. Siyamukela Repairs and 11-Apr-14 07-Apr-14 None. Primary School renovations of storm damaged school. 7. Lekazi Primary Repairs and 11-Apr-14 07-Apr-14 None. School renovations of storm damaged school. 8. Magodongo Repairs and 11-Apr-14 07-Apr-14 None. Primary School renovations of storm damaged school. 9. Inyeti Primary Repairs and 11-Apr-14 08-Apr-14 None. School renovations of storm damaged school. 10. Bonani primary Repairs and 11-Apr-14 10-Apr-14 None. School renovations of storm damaged school. 11. Thorisong Primary Repairs and 11-Apr-14 10-Apr-14 None. School renovations of storm damaged school. 12. Hoërskool Repairs and 11-Apr-14 10-Apr-14 None. Middelburg renovations of storm damaged school. 13. Laerskool Repairs and 11-Apr-14 10-Apr-14 None. Kragveld renovations of storm damaged school. 14. Matikwana Repairs and 11-Apr-14 11-Apr-14 None. Primary School renovations of storm damaged school. 15. Sidhlasonke Repairs and 11-Apr-14 11-Apr-14 None. Secondary renovations of storm School damaged school. 16. Phanagela Repairs and 11-Apr-14 11-Apr-14 None. Primary School renovations of storm damaged school. 17. Mathupha Repairs and 15-Apr-14 14-Apr-14 None. Primary School renovations of storm damaged school. 18. Methula Completion of work 15-Apr-14 15-Apr-14 None. Secondary school 19. Mayflower Completion of work. 15-Apr-14 15-Apr-14 None. secondary School 20. Arnot Colliery Construction of 9 16-Apr-14 16-Apr-14 None. Primary School classrooms, admin (Phase 2) block, ablution blocks, computer centre, multipurpose hall, grade R and general site works. 21. Esithembisweni Renovations of 19-Aug-13 22-Apr-14 Delay in issuing Primary School stormed damaged permission to school. commence with additional works i.e. enviro-loo. 22. Mayisha Repairs and 22-Apr-14 22-Apr-14 None. Secondary renovations of storm School damaged school. 23. Nganana Repairs and 25-Apr-14 24-Apr-14 None. Primary School renovations of storm damaged school.

DPWRT Annual Report 2014-15.indb 39 2015/08/18 12:45:17 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date 24. Freddy Sithole Repairs and 25-Apr-14 25-Apr-14 None. High School renovations of storm damaged school. 25. Ezakheni Repairs and 36-May-14 26-May-14 None. Combined renovations. Boarding School 26. Malatse Repairs and 27-May-14 27-May-14 None. Secondary renovations of storm School damaged school. 27. Seruane Repairs and 27-May-14 27-May-14 None. Secondary renovations of storm School damaged school. 28. Kwashuku Construction of 2 05-Aug-13 27-May-14 None. Secondary classrooms, fencing, School water, electricity and 4 toilet blocks. 29. Mathethe Repairs and 02-Jun-14 02-Jun-14 None. Primary school renovations of storm damaged school. 30. Shobiyane Completion of work. 13-Jun-14 06-Jun-14 None. Secondary school 31. Mzimhlophe Demolish and 25-Aug-14 09-Jun-14 Good performance Secondary construct 14 by contractor. school unsafe classrooms, administration block, library, laboratory, kitchen, electricity, fence, school hall, rails and ramps, and the renovation of an ablution block. 32. Frank Construction of 10 31-Jul-14 18-Jun-14 None. Maghinyane classrooms, admin Secondary block, laboratory. school library, computer centre, kitchen, school hall, 28 toilets, 3 sports grounds and car park. 33. Tsakane Special Construction of 10 04-Jul-14 30-Jul-14 None. School new classrooms with supporting facilities, admin block, media centre hall, 4 new workshops, guard house, fencing, water, electricity, 2 garages, 2 sport grounds and 5 toilets. 34. Berbice Primary Construction of 05-Aug-13 12-Aug-14 Protracted outcome School 2 classrooms, 1 of variation order Grade R, classroom, application fencing and water. for electrical connections. 35. Samuel Mhlanga Demolition and 18-Aug-14 18-Aug-14 None. Primary School construction of new (Phase 1) school.

DPWRT Annual Report 2014-15.indb 40 2015/08/18 12:45:17 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date 36. Seabe High Construction of 03-Jun-14 18-Aug-14 None. School 10 classrooms, administration block, laboratory, library, fence , electricity, water, ablution blocks, kitchen and guard house. 37. Rorobhani Completion of 15-Jan-14 21-Oct-14 Outstanding works, Primary School outstanding works. additional works and late payment. 38. Vulamehlo Repairs and 17-May-14 07-Nov-14 Poor workmanship Primary School renovations to storm leading to reworks. damage school. 39. Sesete Primary Construction of new 11-Oct-14 11-Nov-14 None. School Grade R centre. 40. Manyeleti Construction of new 11-Sep-14 11-Nov-14 Late delivery of Primary School Grade R centre. material caused by the NUMSA strike. 41. Umlambo Construction of new 12-Sep-14 13-Nov-14 Slow progress as the Combined Grade R centre. contractor struggled School to finance project at the current contractual rates. 42. Mayflower Refurbishment of 21-Nov-14 21-Nov-14 None. Secondary one laboratory. School 43. Luthango Repairs and 17-Apr-14 21-Nov-14 Change in Primary School renovations of storm foundation design. damaged school. 44. Tiyane Primary Repairs and 28-Nov-14 21-Nov-14 None. School renovations of storm damaged school. 45. Pugishe Primary Repairs and 28-Nov-14 21-Nov-14 None. School renovations of storm damaged school. 46. Nembe Mhlabe Repairs and 28-Nov-14 21-Nov-14 None. School renovations of storm damaged school. 47. Luka High School Repairs and 28-Nov-14 21-Nov-14 None. renovations of storm damaged school. 48. Ximoyi Khosa Repairs and 28-Nov-14 21-Nov-14 None. Secondary renovations of storm School damaged school. 49. Khayelihle Repairs and 28-Nov-14 21-Nov-14 None. Primary School renovations of storm damaged school. 50. Pulane High Repairs and 28-Nov-14 21-Nov-14 None. School renovations of storm damaged school. 51. Tsakane Special Repairs and 28-Nov-14 21-Nov-14 None. School renovations of storm damaged school. 52. Suikerland Refurbishment of 20-Nov-14 25-Nov-14 None. Secondary laboratory. School 53. Jacob Mdluli Refurbishment of 20-Nov-14 08-Dec-14 Slow performance Secondary laboratory. by contractor. School

DPWRT Annual Report 2014-15.indb 41 2015/08/18 12:45:17 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date 54. Ezakheni Construction of 3 20-Mar-14 17-Dec-14 Late delivery of Boarding School Grade R centres. material (steel) caused by the NUMSA strike. 55. Emakhazeni Construction of 28-Nov-14 16-Jan-15 Delayed due to Boarding School 24 classrooms the upgrading of including integrated the existing water walkways, treatment plant and administration Block, payments. 35 toilets, computer centre, library block, science laboratory guard house and refuse area, kitchen, dining hall, water, sewer, electrical bulk infrastructure, fencing, paving, parking facilities, sports facilities (incl. 3 toilets and change room facilities), ramps and rails, landscaping, Grade R boys and girls sleeping units boarding house (x8). 56. Entokozweni Construction of 16 15-Jan-15 15-Jan-15 None. Secondary enviro-loo toilets. School 57. Tekwane North Erection of fence. 14-Jan-15 19-Jan-15 None. Combined 58. New Coronation Construction of 07-Sep-13 19-Jan-15 Suspension of works Secondary 28 classrooms, by contractor due to School administrative non-payment. block, science laboratory, library, computer center, hall, 40 toilets, fence, electricity, water, kitchen, rail and ramps, 3 school grounds and covered parking. 59. Mkhutshwa Construction of 8 07-Jan-15 20-Jan-15 Slow performance Secondary enviro-loo toilets and by contractor. School demolish 8 pit toilets. 60. Schulzendal Substitution of 15 25-Mar-14 22-Jan-15 Non-payment and Primary School unsafe classrooms, instruction to slow construction of down productivity in administration block, the 2013/14 financial library, computer year. center, fence, water, grade R center with 4 toilets and fencing, 22 toilets, kitchen, 2 sports grounds and car park.

DPWRT Annual Report 2014-15.indb 42 2015/08/18 12:45:17 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date 61. Manyeleti Construction of 22 15-Feb-15 27-Jan-15 Extension of time Primary School enviro-loo toilets and approved. demolition of 12 pit toilets. 62. Amersfoort Demolishing and 14-Nov-14 30-Jan-15 Outstanding external Primary School construction of 6 works and electrical classrooms and 8 connection. toilets. 63. Shanke Construction of 30 28-Feb-15 11-Feb-15 None. Secondary enviro-loo toilets. School 64. Volksrust Primary Erection of steel 27-Feb-15 12-Feb-15 None. School palisade fence. 65. Motseleng Construction of 14 20-Feb-15 27-Feb-15 None. Primary School enviro-loo toilets and demolish 16 pit toilets. 66. MD Covadia Construction of 16 23-Feb-15 23-Feb-15 None. Combined enviroloo toilets and School water borne toilets. 67. Sabeka Primary Construction of 4 x 27-Feb-15 25-Feb-15 None. School 3 classroom blocks, Grade R classroom block, administration block, library, computer center, kitchen, 20 toilets, gate house and perimeter fence. 68. Nwa Mahumana Construction of 14 28-Feb-15 26-Feb-15 None. Primary School enviro-loo toilets and demolish 7 pit toilets. 69. Machaye Construction of 12 28-Feb-15 27-Feb-15 None. Secondary enviro-loo toilets. School 70. Saselani Construction of 32 15-Feb-15 28-Feb-15 Extension of time Combined enviro-loo toilets and was approved. School demolition of 31 pit toilets. 71. Hlalisanani Demolish and 02-Apr-14 09-Mar-15 Late payments Primary School construct 2 x Grade delayed the project R Centres with 2 x and EOT’s were 4 toilets and fence, applied for and 18 classrooms; approved until admin block; library; August 2014. The computer centre; contractor was kitchen; rails and on penalties from ramps; 27 toilets; 3 August 2014 until sports grounds; car project completion. park and fence. 72. Mgcobaneni Substitution of 19 16-Jul-14 11-Mar-15 Poor workmanship Primary School unsafe structures and non (classrooms) and cooperation by the construction of a contractor. library; computer centre; kitchen; 28 toilets; Grade R facility with 4 toilets; fencing; administration block; 3 sports fields and parking.

DPWRT Annual Report 2014-15.indb 43 2015/08/18 12:45:17 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date 73. Matlushe Higher Construction of 14 28-Feb-15 16-Mar-15 Extension of time Primary School enviro-loo toilets and approved. demolition of 12 pit toilets. 74. Ilanga Construction of 6 28-Feb-14 18-Mar-15 Poor performance Secondary classrooms; 8 toilets; by the contractor School fence; electricity; and delay water and kitchen. in electricity connection. 75. Kufakwezwe Construction of 17 28-Feb-15 19-Mar-15 Poor performance Secondary enviro-loo toilets by contractor. School and demolish 12 pit toilets. 76. Chueu Primary Demolition of 14 30-Sep-14 20-Mar-15 Extension of time School existing classrooms, approved. construction of 10 classrooms, 15 toilets, administrative block, fence, library, grade R center with 4 toilets and fence, 3 sport grounds and car park. 77. Zacheus Malaza Refurbishment of 1 21-Jan-15 23-Mar-15 Late delivery of Secondary laboratory. furniture. School 78. Nederlands Construction of 05-Jan-15 24-Mar-15 Delayed payments Park Secondary 28 classrooms, affected progress. School administrative block, science laboratory, library, computer center, school hall, 40 toilets, fencing, electricity, water, kitchen, rail and ramps, 3 sport grounds and cover parking. 79. Umzimvelo Construction of 4x 26-Apr-15 27-Mar-15 None. Agricultural enviro-loo toilets, Combined completion of School 1 enviro-loo for disabled persons and demolishing of existing pit toilets. Department of Health 1. Mmamethlake Upgrading of bulk 30-Sep-14 13-May-14 Good performance Hospital civil engineering by contractor. services. 2. KaNyamazane Repairs to clinic. 11-Dec-13 14-May-14 Slow performance Clinic by contractor. 3. Glenmore Clinic Renovation to clinic. 10-Mar-14 28-May-14 Payment delays resulted in cash flow problems for contractor 4. Vlakplaas Clinic Renovation to clinic. 11-Mar-14 28-May-14 Contractor cash (NHI) flows resulting mainly from late delay payment. 5. Hartebeeskop Renovation to clinic. 11-Mar-14 28-May-14 Slow performance Clinic (NHI) by contractor.

DPWRT Annual Report 2014-15.indb 44 2015/08/18 12:45:18 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date 6. Ermelo Hospital Renovations of male 23-Feb-14 03-Jun-14 Pending approval of and female wards. variation order. 7. Middelburg Paving. 27-Feb-14 19-Jun-14 Slow performance Hospital by contractor. 8. Diepdale Clinic Renovations of 10-Mar-14 25-Jun-14 Poor workmanship (NHI) clinic. resulting to rework and payment delays resulted in cash flow problems for contractor. 9. Betty’s Goed Renovations of 10-Mar-14 25-Jun-14 Poor workmanship Clinic (NHI) clinic. resulting to rework and payment delays resulted in cash flow problems for contractor. 10. Dundonald Clinic Renovations of 10-Mar-14 25-Jun-14 Poor workmanship (NHI) clinic. resulting to rework and payment delays resulted in cash flow problems for contractor. 11. Fernie 1 Clinic Maintenance and 10-Mar-14 25-Jun-14 Slow performance (NHI) repairs. by contractor. 12. Tjakastad Clinic Maintenance and 10-Mar-14 26-Jun-14 Poor workmanship (NHI) repairs. and lack of capacity by contractor. 13. Nhlazatje Clinic Maintenance and 10-Mar-14 26-Jun-14 Slow performance (NHI) repairs. and delayed payment. 14. Tweefontein G Construction of a 01-Jun-13 27-Jun-14 Omission of some Community new community items by contractor Health Centre health centre. compromised the functionality of the facility which was not accepted by the client department. 15. Kwa-Mhlanga Construction of new 10-Mar-14 23-Jul-14 Poor workmanship Hospital guard house and resulting in rework. erection of new concrete fence. 16. Kwa-Mhlanga Construction of 21-Oct-12 08-Aug-14 Poor performing Hospital Casualty; ICU contractor, delayed and upgrading payments and of theatres and litigation issues. admissions. 17. Emthonjeni Clinic Plumbing and 29-Mar-14 01-Sep-14 Late (EPWP) paving. commencement of works due to unavailability of material. 18. Naas Clinic Renovations of the 14-Aug-14 10-Sep-14 Poor performing existing clinic. contractor and NUMSA strike. 19. Ntunda Construction of 24-Apr-14 11-Dec-14 Delayed due to Community community health NUMSA strike and Health Centre center and 2 x 2 water connection accommodation issues unit.

DPWRT Annual Report 2014-15.indb 45 2015/08/18 12:45:18 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date 20. Rob Ferreira Upgrading and 30-Sep-12 12-Dec-14 Delay is attributed Hospital (Phase renovations: to completion of 4D, Part A) Rehabilitation works on snag list, Center. additional and remedial works. 21. Shongwe Repairs and 31-Jul-14 27-Jan-15 Delayed payments Hospital extensions at the resulting in de- mortuary. establishment of contractor from site. 22. Dundonald Provision of entrance 30-Mar-15 16-Mar-15 Delays in issuance Community paving. of material and/or Health Centre quality test results. Department of Social Development 1. Daggakraal Construction of 10 10-Jan-13 07-Apr-14 Numerous site Social office block. challenges Development e.g. electricity Offices connections, revised fence design and outstanding earthworks. 2. Marite Construction of new 18-May-14 07-Oct-14 Slow performing Social block of 16 offices contractor and Development with 2 garages. delays due to Offices NUMSA strike. 3. Amsterdam Construction of 03-Aug-14 01-Dec-14 Slow performing Social social development contractor, delay Development offices (20 offices, due to NUMSA strike Offices 2 garages and a and labour due guard house). to non- payment of workers by contractor. Department of Culture, Sport and Recreation 1. Driefontein Completion of a 14-Apr-14 15-Jul-14 Contractor’s Library library. appointment was terminated due to slow and poor performance. 2. Umjindi Library Construction of a 16-May-14 21-Jul-14 Delayed due to new library. additional work on site and variation order approval. 3. Klarinet Library Completion of a 31-Oct-14 13-Oct-14 Contractor’s library. appointment was terminated due to slow and poor performance. Department of Economic Development, Environment and Tourism 1. Donkerhoek Construction of 11-Jan-13 19-Jun-14 Delays due to Farm Water Bottling Plant. importation of specialized equipment and hydro-geological location of potable water.

DPWRT Annual Report 2014-15.indb 46 2015/08/18 12:45:18 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date Transport Infrastructure 1. Rural access Upgrading from 31-Dec-14 08-Dec-14 None. road D2976 gravel to surfaced between road. Daantjie and Mpakeni (incl. 2nd Contract) (9.3km) 2. Rural access Upgrading from 15-Feb-15 21-Jan-15 None. road D545 gravel to surfaced (Kruisfontein road. road) between Dullstroom and Kruisfontein (15km) 3. Bridge over Construction of a 21-Mar-14 03-Sep-14 Relocation of Komati river bridge. households to on road D2952 provide sufficient between road reserve. Masibekela and Sibange 4. Construction of Construction of 21-Mar-14 14-Nov-14 Land acquisition Bethal Traffic weighbridge and from National Control Centre access roads. Department of (Weighbridge) Public Works and additional requirements from SANRAL. 5. Coal haul road Rehabilitation and 21-Jan-15 01-Aug-14 Base course material P120/1 from improvement of supply constraints. eMalahleni to paved road. D914 (15km) (km 5.0 - 19.0) 6. Road D2969 Rehabilitation of 25-Nov-14 09-Sep-14 Good performance between paved road. by contractor. Manzini and Swalala (6.8km) 7. Coal haul road Rehabilitation of 09-Jan-15 09-Dec-14 None. P127/2 between paved road. Duvha Power Station (D914) and N4 (21km) 8. Coal haul road Rehabilitation of 26-Dec-14 25-Feb-15 None. P182/1 (R542) paved road. between P120/1 (van Dyksdrift) and R35 (15km) (Phase 1) 9. Road D797 Rehabilitation of 12-Aug-14 03-Mar-15 Base course material between D2940 paved road. supply constraints. (Tonga) and R571 Naas (14km) Transport Operations 1. Construction of Construction 01-Oct-14 30-Sept-14 None. bus shelters at of foundation, Mbombela installation of pre- cast bus shelters and paving.

DPWRT Annual Report 2014-15.indb 47 2015/08/18 12:45:18 PM Annual Report Project name Scope of work Targeted completion Actual completion Reasons for variance date date 2. Construction of Construction 01-Oct-14 30-Oct-14 Service provider box culvert at of foundation, appointed later than Ntunda 2 installation of pre- planned. cast culvert and wing walls. 3. Construction of Construction 01-Oct-14 25-Mar-15 Service provider box culvert at of foundation, appointed later than Ntunda1 installation of pre- planned. cast culvert and wing walls. 4. Construction of Construction 01-Nov-14 25- Mar-15 Service provider bus shelters in of foundation, appointed later than Simotlasi installation of pre- planned. cast bus shelters and paving. The following projects were not completed in the 2014/15 financial year: Project name Scope of work Targeted completion Revised completion Reasons for the date date delays Department of Education 1. Mbombela Complete Dec-15 Dec-15 Project on hold Circuit Office replacement of as per instruction roof and upgrading from the client of storm water department. drainage. 2. Mabombe To be confirmed. Apr-14 TBC Project on hold Primary School as per instruction from the client department. 3. Sasizani Primary To be confirmed. Mar-15 TBC Project on hold School as per instruction from the client department. 4. Gedlembane Completion of 8 Nov-14 Jun-15 Poor performance Secondary new classrooms, 1 by the contractor. School computer centre, library, laboratory, 18 toilets and construction of new school hall, administration block and renovation of existing 20 classrooms and demolishing of administration block and toilets and fencing. 5. Ubuhle Construction of Mar-15 Jun-15 Contractor was Secondary 28 classrooms, terminated due to School administration block, poor performance. laboratory, library, A new contractor computer centre, was appointed. school hall, 40 toilets , fence, electricity, water, kitchen, rails and ramps, 3 sports grounds and car park.

DPWRT Annual Report 2014-15.indb 48 2015/08/18 12:45:18 PM Annual Report Project name Scope of work Targeted completion Revised completion Reasons for the date date delays 6. Malibongwe Construction of 2 Sep -14 Dec-15 Contractor was Primary School classroom blocks, terminated due to ablution block, poor performance. septic tank, paving, A new contractor fence and play was appointed. area. 7. Osizweni Constructions Oct-14 Jun-15 Poor performance Special School of 8 classrooms, by the contractor. administration block, media centre, school hall, 4 workshops, guard house, fencing, water and electricity. 8. Mbhandule Construction of Nov -14 Jun-15 Poor performance Primary School new secondary by the contractor. (Phase 1) school phase one comprising administration block, 8 classrooms, toilets, fence, guardhouse, water and electricity. 9. Bhekimfundo To be confirmed. Nov-14 TBC Project was Primary School cancelled as per instruction from the client department. 10. Lindzalokuhle Construction of 16 Jan-15 Apr -15 Project awarded Primary School enviro-loo toilets. late. 11. Etshando To be confirmed. TBC TBC Project was Primary School cancelled as per instruction from the client department. 12. Ngilandi Repairs to storm Dec-14 Sep-15 Project was put Secondary water damaged on hold by client School facilities. department. 13. Boschrand To be confirmed. Mar-14 TBC Project put on hold Primary School due to review of scope of work. 14. Tekwane South Construction of Apr-14 Jun-15 Late approval Secondary 28 classrooms, of the Variation School administration block, Order delayed the laboratory, library, completion of the computer centre, project. school hall, 40 toilets, fence, electricity, water, kitchen, rails and ramps, 3 sports fields and a car park. Department of Health 1. Ermelo Hospital Construction Aug-14 Jun-15 Poor performance of new supply by contractor. chain stores and provision of parking for government vehicles. 2. Piet Retief Construction of a Feb-14 Jun-15 Contractor Mortuary new mortuary. terminated and new contractor appointed.

DPWRT Annual Report 2014-15.indb 49 2015/08/18 12:45:18 PM Annual Report Project name Scope of work Targeted completion Revised completion Reasons for the date date delays 3. Mapulaneng Renovations Sep-14 TBC The project was Hospital and additions to placed on hold due (Phase 1) existing TB ward. to the proposed Construction of relocation of the storage and helipad. hospital. 4. Sinqobile Clinic Construction of Aug-13 Sep-15 Poor performance a Community by contractor. Health Centre; 2 x 2 accommodation facilities, a guard house, electrical installation and external works. 5. Wakkerstroom Construction of a Feb-14 Jun-15 Contractor Community 24-hour facility with terminated and Health Centre guard house and new contractor public ablution appointed. facilities. Department of Social Development 1. Hendrina Offices Construction of new Feb-15 Jun-15 Poor performance branch office block by contractor. of 16 offices. Department of Culture, Sport and Recreation 1. Glenmore Library Construction of the Mar -15 Jun-15 Poor performance new library. by contractor. Transport Infrastructure: Construction 1. Upgrading of Upgrading from Feb-15 May-15 Community unrest, rural access gravel to surfaced 2014 NUMSA strike road D3970 Jim road and bridge and inclement Brown – Marite construction. weather. (8.32km) and bridge on Marite River 2. Upgrading of Upgrading from Feb-15 Jun-15 Budget constraints. road D2908 gravel to surfaced between D2909 road. junction (Morwe) and paved end (Dikwale) (2.88km) 3. Rehabilitation Rehabilitation of Nov-14 Jul-15 Community of road D3928 road and repair of unrest, inclement between Green flood damaged weather, contractor Valley and bridge. performance. Moloro (incl. Repair of flood damaged bridge) 4. Reconstruction Reconstruction of Dec-14 Aug-15 Water use licence of Flood flood damaged application damaged bridge. and contractor bridge on road performance. D2945 between Boschfontein and Gomora

DPWRT Annual Report 2014-15.indb 50 2015/08/18 12:45:18 PM Annual Report Project name Scope of work Targeted completion Revised completion Reasons for the date date delays 5. Upgrading of Upgrading from Mar-15 Oct-15 Budget constraints. Road D2967 gravel to surfaced Revised completion (including 0.5km road and bridge subject to budget section on road construction. availability. D2969) and improvement of bridge structure between Manzini and Mgcobaneni (6.5km) Transport Operations 1. Ronaldsey Construction of Feb-15 May-15 Delay in the Footbridge footbridge. appointment of the service provider due to budget constraints. The following are multi-year projects that are currently in progress and will be completed in the next financial year(s): Project Name Scope of Work Targeted Completion Date Department of Education 1. Mpisana Primary Demolition of unsafe structures. Construction of 16 Jun-15 School classrooms with supporting facilities, ablution, Grade R facilities, administration block, computer centre, library, gate house, kitchen, fence, parking, covered walkways and upgrading of water and electricity. 2. Moses Mnisi Demolition of existing structures and construction of 28 new Jun-15 Secondary School classrooms, administration block, science laboratory, library, computer centre, hall, kitchen, 45 toilets, water, fencing, guard house, car parking, electricity and 3 sports fields. 3. Zinikilele Technical Construction of 1 new civil workshops and refurbishment of 3 Sep-15 School workshops. 4. Middelburg Substitution of 42 classrooms, 30 toilets and Grade R facility. Sep-15 Combined School 5. DD Mabuza Technical Construct 3 new technical workshops and refurbishment of 1 Dec-15 School workshop. 6. Highveld Construction of 1 new civil workshop and refurbishment of 3 Dec-15 Comprehensive workshops. School 7. Hazyview Technical Construction of 2 new technical workshops and refurbishment Dec-15 High School of 2 workshops. Department of Health 1. Inpungwe Hospital Upgrading of Bulk services: sewer, water and electricity: May-15 Phase 1 2. Naas Community Construction of new community health centre and 2 x 2 Aug-15 Health Centre accommodation units. 3. Sabie Hospital Site establishment, demolition of asbestos structures and Jan-16 construction of wards. Department of Social Development 1. Jerusalem Offices Construction of 20 offices and supporting facilities. Jun-15 2. Glenmore Offices Construction of 16 offices. Oct-15 3. Swartfontein Planning, design and architectural supervision of phase 1 Oct-15 Treatment Centre consisting of: 5 female house units for 10 residents each, administration block, laundry, TV room and guardhouse. Department of Culture, Sport and Recreation 1. Emthonjeni Library The construction of the new library. Apr-15

DPWRT Annual Report 2014-15.indb 51 2015/08/18 12:45:18 PM Annual Report Project Name Scope of Work Targeted Completion Date 2. Mgobodzi Library Construction of a new community library, guard house, Aug-15 fencing, electricity, water and associated external works. Department of Community Safety, Security and Liaison 1. Traffic Training Construction of perimeter concrete palisade fencing. May-15 College (Phase 2B) 2. Traffic Training Construction of main buildings and site reticulation. Oct-16 College (Phase 2C) Transport Infrastructure 1 Upgrading of a rural Upgrading from gravel to surfaced road. May-15 access road D3970 Jim Brown - Marite (8.32 km) & Bridge on Marite river 2 Upgrading of a rural Upgrading from gravel to surfaced road. Jun-15 access road D2908 between D2909 junction (Morwe) and paved end (near Dikwale) (2.88km). 3 Upgrading of rural Upgrading from gravel to surfaced road. Aug-15 access road D2908 between Pieterskraal and Madubaduba Rd (via Majakaneng) (near KwaMhlanga (6 km) 4 Upgrading of road Upgrading from gravel to surfaced road. Oct-15 D2967 (including 0.5km section on Road D2969) and improvement of bridge structure between Manzini and Mgcobaneni 5 Upgrading of a Upgrading from gravel to surfaced road. Mar-16 rural access road D3968 between R40 Junction (near Bushbuckridge) and Merry Pebble (Phase 1) (10 km) 6 Reconstruction of Reconstruction and repair of flood damaged culvert. Jul-15 a flood damaged culvert on road D2973 between Gutswakop and Clau - Clau. 7 Reconstruction of Reconstruction and repair of flood damaged culvert. Aug-15 a flood damaged bridge on road D2945 between Boschfontein and Gomora. 8 2 New bridges on Construction of new bridges. Oct-15 coal haul road D622 (Eskom designed) 9 Reconstruction of Reconstruction and repair of flood damaged culvert. Dec-15 a flood damaged bridge on road D4392 in Dumphries

DPWRT Annual Report 2014-15.indb 52 2015/08/18 12:45:18 PM Annual Report Project Name Scope of Work Targeted Completion Date 10 Rehabilitation of Rehabilitation of road, drainage, pedestrian Sep-15 road P17/6 (R538) accommodation and road protection issues on entire road. Jerusalem to R40 at Casterbridge, km 20km 35 (14 km). 11 Rehabilitation of Rehabilitation of road. Oct-15 road D481 between Embuleni Hospital towards Ekulindeni (Phase 1 - 12 km) 12 Rehabilitation of Rehabilitation of road. Dec-15 road P95/1 between Limpopo Border and Verena (Phase 1) (25.7 km) 13 Rehabilitation of Rehabilitation of road. Jan-16 sections of road P8/1 (km 18 - 28) between Mashishing and Bambi (Phase 1) (10km) 14 Rehabilitation Rehabilitation of road. Feb-16 of road P154/4 between Middelburg and Wonderfontein, from km 12.73 to km 21.73 at D1433 (9km) 15 Rehabilitation of coal Rehabilitation of coal haulage road. Apr-16 haul road D686 from Leeuwfontein past Kendal Power Station over R555 (P95/1) to N12 (14km) 16 Rehabilitation of Rehabilitation of coal haulage road. Apr-16 coal haul road P29/1 between Ogies and Kendal (10 km) 17 Rehabilitation of Rehabilitation of coal haulage road. Oct-16 coal haul Road P30/3 between Tutuka Power Station and Standerton (16.1km) (km 22.5 - 38.6) 18 Rehabilitation of Rehabilitation of coal haulage road. Jan-17 coal haul road P26/4 from N17 near Ermelo to Breyten (19.5 km)

DPWRT Annual Report 2014-15.indb 53 2015/08/18 12:45:21 PM Annual Report Maintenance Plans to close down or down-grade any current Transport Infrastructure facilities There has been increased pressure on the 74 Farm schools were closed down by the Department’s limited capital budget as there Department of Education. These schools were are growing needs for sustainable infrastructure located on private land and have since been development. Although the Department is in removed from the Department’s Asset Register. receipt of the Provincial Roads Maintenance Grant, the increasing backlog partly attributed Progress made on the maintenance of to flood damages and deterioration of the coal infrastructure haulage road network poses a major challenge. Public Works Changes in the Asset Holdings The Department received R25 million for security Opening Balance R 333, 691 upgrades of Riverside Government Complex Adjustments R 4 (RGC) to ensure compliance with the National Disposals (R 3, 012) Keypoint Act of 102 0f 1980. Notwithstanding the Additions R 14, 464 limited budget, DPWRT continues to do day to TOTAL R 345, 147 day routine maintenance to this facility. On the other hand, emergency repairs and maintenance Of the R345,147 million the Department spent is undertaken as and when required in the R14,464 million to acquire the following movable respective cost centres and shared government additional assets (R’000): office buildings, namely: Kwamhlanga, Piet Koornhof, Batho Pele, Jerry van Vuuren, Elukwatini, Transport Assets R 6, 003 Anderson Street, Riverside Government Complex, Computer Equipment R 3, 306 Louieville and Middleburg. Furniture & Office Equipment R 2, 806 Other machinery & Equipment R 2, 349 Transport Infrastructure TOTAL R 14, 464 As the Province tries to manage trade-offs Disposal of assets between its ever growing maintenance backlog and resource constraints, DPWRT continues to Three (3) auctions were held during the financial maintain the operations required to sustain the year: functionality and structural integrity of its road Region Month Amount network. Maintenance operations embarked upon were mainly upgrade, rehabilitation, Ermelo October 2014 R 215,356.30 routine and preventative maintenance. Middelburg November 2014 R 1,158,270.61 Critically, the development of the computerized Maintenance Management System (MMS) Nelspruit December 2014 R 44,106.45 gives the Department more effective and government efficient roads maintenance productivity. garage The system complements the existing Roads Asset TOTAL R 1,417,733.36 Management System (RAMS) and combined these systems will support evidence-based The Department has not disposed any immovable transport infrastructure planning. assets (property) during the period under review. Developments relating to the above that are Material losses expected to impact on the Department’s current expenditure Material losses to the value of R 0,162 million were recorded for the 2014/15 financial year. Public Works Measures taken to ensure that the Department’s There is still an amount of R39 million required to asset register remained up-to-date during the finalise security upgrades at RGC. On the other period under review hand, the Executive Council has approved the Department’s request for client departments to All the Department’s assets were recorded in the pay a user charge on the government buildings Asset Register. Measures taken to update the that they occupy. Interactions with Provincial register include bar coding, physical verification Treasury and the respective departments have and reconciliation of all assets according to commenced, however the funding was not the Asset Management Policy. Performance available to supplement the maintenance asset inspections on buildings are undertaken funding of the Department. on a monthly basis. Planned inspections are undertaken on provincially owned property. User Departments are also required to inspect and report on the buildings under their control in their User Asset Management Plans (UAMPs).

DPWRT Annual Report 2014-15.indb 54 2015/08/18 12:45:21 PM Annual Report The current state of the Department’s capital Progress made in addressing the building assets, for example what percentage is in good, maintenance backlog fair or bad condition Name Good Fair Poor The annual budget allocated for the maintenance of buildings owned by the Department of Public Computers 60% 20% 20% Works, Roads and Transport is inadequate to Furniture 50% 30% 20% make a positive impact on the maintenance Vehicles 50% 35% 15% backlog. The Department continues to do day to Other Machinery and 60% 25% 15% day maintenance on buildings due to insufficient Equipments funds. Provincial Property Progress made in addressing the transport infrastructure maintenance backlog Overall, the maintenance backlog is widening C4 as there is a dire need to increase the baseline 9% for transport infrastructure. Great strides have been achieved thus far with the completion of the study on the Department’s maintenance modus operandi. Solutions and best practices will be offered and a series of training courses are scheduled for technical teams throughout the Province in the up coming financial year. The • In terms of condition rating, 1% of the assets computerized MMS has been finalised with the are not fit for occupation any longer. completion of the user specifications, functional These assets have severe structural defects specifications and business analysis. With the full and are not operational. Risk Index: implementation of the MMS, the Department Accommodation is unusable, immediate seeks to achieve more effective and efficient high risk to security, health and safety or maintenance productivity. property. Significant cost impact. • 58% of the assets have deteriorated badly, The Department has been in consultation with with some structural problems. General all municipalities in the Province to finalise the appearance is poor with eroded protective Municipal Support Programme. DPWRT has coatings; elements are broken, services are succeeded in jointly identifying priority areas in interrupted; significant number of major need of intervention and have put together a defects exists. Risk Index: Many disruptions comprehensive implementation programme to service capability, some risk to health & in this regard. Through this Programme, DPWRT safety or property. High cost implication. endeavours not only to intervene in areas where • 32% of the assets are in average condition, municipalities are falling short in delivering roads deteriorated surfaces require attention; infrastructure services, but to also build internal services are functional but require capacity through providing skills training and attention, backlog maintenance work formalising standards for roads maintenance. To exists. Risk Index: Frequent inconvenience this end, a process is underway to indentify training to operations. Some risk to health and safety needs of municipal operators in pursuance of or property. Medium cost implications. maximising maintenance output. • 9% of the assets exhibit superficial wear and tear, with minor defects and minor DPWRT, together with municipalities recently signs of deterioration to surface finishes. Risk undertook the Yellow Fleet census in an Index: Intermittent, minor inconvenience attempt to establish capacity of Mpumalanga. to operations. Probability of risk to health This process has been very productive and has & safety or property is slight. Low cost assisted in informing Yellow Fleet deployment implication. within the Province. • 0% of the assets have no apparent defects. Appearance is as new. Risk Index: No effect The table below shows the actual expenditure on service capability. No risk. incurred for maintenance related Programmes: Summary of maintenance expenditure Infrastructure projects 2014/15 2013/14 Final Actual (Over)/ Final Actual (Over)/ Appropriation Expenditure Under Appropriation Expenditure Under R’000 R’000 Expenditure R’000 R’000 Expenditure R’000 R’000 New & replacement assets 40,013 47,157 (7,144) 62,782 98,735 (35,953) Existing infrastructure assets 1,702,573 1,759,032 (56,459) 1,495,440 1,404,336 91,105 - Upgrades & additions 163,027 408,166 (245,139) 346,450 238,636 107,814 - Rehabilitation, 919,024 828,019 91,005 741,452 880,343 (138,891) renovations & refurbishments - Maintenance & repairs 620,522 522,847 97,675 407,538 285,357 122,182 TOTAL 1,764,261 1,832,043 (67,782) 1,558,222 1,503,071 55,152

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DPWRT Annual Report 2014-15.indb 56 2015/08/18 12:45:29 PM Annual Report

PART C GOVERNANCE

DPWRT Annual Report 2014-15.indb 57 2015/08/18 12:45:40 PM Annual Report 1. INTRODUCTION Commitment by the Department to maintain the The Department has an approved whistle blowing highest standards of governance is fundamental policy. The aim of the policy is to provide procedures to the management of public finances and in terms of which an official can report suspected resources. Users want assurance that the fraud. Cases of fraud can also be reported to the Department has good governance structures in fraud and corruption hotline, Public Protector, place to effectively, efficiently and economically Presidential Hotline, Public Service Commission. utilize the state resources, which is funded by the These processes are explained in detail during the tax payer. fraud awareness workshops. How these cases are reported and what action is 2. RISK MANAGEMENT taken The Department recognises that it has a responsibility to manage both internal and Most cases are reported through the National external risks as a key component of good Anti-Corruption Hotline and Public Service corporate governance. DPWRT is further Commission. The hotline administrators screen the committed to embedding risk management into information and send the cases to the Premier’s its daily operations. Effective risk management will Office (Integrity Unit) for further investigation. help the Department achieve its objectives and provide better services. 4. MINIMISING CONFLICT OF INTEREST Risk management strategies to identify risks and To minimise conflict of interest within Supply Chain manage the risks Management, all practitioners sign the code of conduct. There are four committees within DPWRT has an approved Risk Management Policy the Supply Chain Management, Specification and Risk Management Strategy. Risk assessments Committee, Evaluation Committee, Adjudication are conducted annually for all Programmes Committee and Finance Committee. In each to identify possible risks that can hamper the committee sitting, all members are expected to achievement of their objectives. The identified declare their interest on record and also sign the risks are then evaluated and an action plan declaration forms to this regard. The disciplinary is developed to mitigate/ manage these risks. process followed where conflict has been Progress on the implementation of the action plan identified is found in Resolution 1 of 2003 ofthe is monitored on a monthly and quarterly basis. The PSCBC (i.e. against employees at level 1 to 12) progress reports are then presented to the Risk and Chapter 7 of the SMS Handbook. Management Committee, Management and Audit Committee. 5. CODE OF CONDUCT 3. FRAUD AND CORRUPTION: The Code of Conduct contains issues of personal conduct, accountability, transparency and private The Department’s Fraud Prevention Plan (FPP) and interests. All employees in the Department have the progress made in implementing the fraud an obligation to understand the application of the prevention plan procedures contained in the Code of Conduct. This means that the employees who breach the The FPP of the Department was developed based Code of Conduct are subject to disciplinary on the risks identified during the Risk Identification action. The requirements for disciplinary action in and Rating Project. The plan is aimed at creating the context of the Code of Conduct are found a culture which is intolerant to fraud, detecting, in Resolution 1 of 2003 of the PSCBC (i.e. against preventing and investigating fraud, and taking employees at level 1 to 12) and Chapter 7 of the appropriate action against fraudsters. The main SMS Handbook. principles of the plan is to: 6. HEALTH SAFETY AND ENVIRONMENTAL • Create a culture which is intolerant to fraud ISSUES • Deterrence of fraud • Prevention of fraud which cannot be deterred DPWRT focuses on the safety, health and wellbeing • Detection of fraud of its employees. In 2014/15, we continued our • Improving the culture of ethical behaviour strong commitment to the Zero Harm philosophy – a vision that aspires to achieve an incident and The Department also conducts fraud awareness injury-free work environment where every person workshops to develop a culture of ethical comes to work and goes home again safely. behaviour and encourages employees to report To underpin this philosophy, the Department has fraudulent activities. assigned every worker with certain roles and responsibilities to ensure their safety and the safety Mechanisms in place to report fraud and of everyone else in their area. This includes senior corruption and how these operate. e.g: Whistle management, line supervisors and employees. blowing. The need for officials to make confidential disclosure about suspect fraud and corruption

DPWRT Annual Report 2014-15.indb 58 2015/08/18 12:45:40 PM Annual Report 7. PORTFOLIO COMMITTEES Portfolio Committees have a mandate in terms of Legislature, to oversee the performance of the section 114(2) of the Constitution of the Republic Department and hold it accountable through of South Africa, 1996 read with rule 124(b) of the various measures. Rules and Orders of the Mpumalanga Provincial Portfolio Committee Meetings with DPWRT: 01 April 2014 - 31 March 2015 Name of Report Date Budget Vote 8: 2014/15 15 July 2014 Budget Appropriation Bill, 2014 07 August 2014 Annual Report: 2013/14 30 October 2014 Quarterly Performance Report: 1st Quarter 21 August 2014 Quarterly Performance Report: 2nd Quarter 12 March 2015 Quarterly Performance Report: 3rd Quarter 12 March 2015 As part of its oversight function, the Portfolio and quarterly performance. The Department also Committee on Public Works, Roads and Transport; presented progress reports on implementation of Community Safety, Security and Liaison met the resolutions emanating from previous resolutions. Department on several occasions during the year The information below outlines key matters raised of reporting. The focus of these meetings were by the Committee in 2014/15 and how were these the Departmental plans, budget, annual report addressed during the year. Budget Vote 8: 2014/15 Resolution Progress made 1. The Department must follow • The Office of the Premier (OTP) gave suggestions and advice on the up with the Office of the previous organogram that was submitted. Premier and ensure that the • The Department revised and re-submitted the document to OTP. new organisational structure is • OTP then submitted the revised organogram to DPSA which concurred approved and implemented with the changes in November 2014. before the end of the reporting period. 2. The Department must put • The budget for new projects are an estimated budget prior to an open measures in place to prevent tender, however, the market sometimes dictates otherwise. It should be the under-budgeting on noted that most projects are multi year. The budget allocation required infrastructure projects to ensure for the outer years will then be based on actual budget required and that planned cost and actual not estimates, which can be adequately provided. cost after completion of the project correspond. 3. The Department must ensure • A service provider was appointed to conduct condition assessment that the strategy for the disposal of assets in the immovable asset register. This process will assist the of redundant provincial Department in identification of redundant property. government property be • The User Asset Management Plans (UAMPs) of client departments are finalised and implemented in still used to identify properties for disposal, including the actual and the reporting period. planned utilisation of all their properties. • The Department implements the Immovable Asset Disposal Policy developed by the National Department of Public Works for disposal of properties. 4. The Department must finalise • The Department only received R25 million for building maintenance and implement the strategy which was utilised mainly for security upgrade of the Riverside of User Charges on provincial Government Complex as a National Keypoint. government property to ensure • R96.7 million has been allocated for building maintenance in the 2015/16 that buildings occupied by financial year. provincial departments are properly maintained. 5. The Department must compile • The Department has completed condition assessment on 600 state and implement a strategy to - owned buildings. The outcomes of this exercise will assist in the follow up on a regular basis on identification of unoccupied government buildings. the occupancy of provincial • The Department has also developed an Inspection Plan that will further government buildings. assist in the identification of unused space. • Each user department is further required to inspect and report on the status of its buildings in the their User Asset Management Plans (UAMPs).

DPWRT Annual Report 2014-15.indb 59 2015/08/18 12:45:41 PM Annual Report Resolution Progress made 6. The Department must improve • The Department has appointed data capturers to assist public bodies on its implementation of with reporting of work opportunities. incentive grants; and that it • A Provincial EPWP Summit was held from 28 to 29 August 2014 to review meets the criteria as per the this strategic Programme. All public bodies signed and adopted a guidelines of the relevant declaration to support the provincial government in pursuit of its job grants. creation targets and to maximise its eligibility for the EPWP Incentive Grant which led to an over achievement in our plan for the year. • The Department spent 99.9% of its grant allocation for the 2014/15 financial year (R12,8 million). • The grant allocation for the 2015/16 financial year has increased by 25% from R12,798 million to R16,038 million. Budget Appropriation Bill, 2014 Resolution Progress made 1. The Department must The Department spent 99.99% on its conditional grants as at the 31 March improve on its spending 2015. and implementation on its conditional grants. 2. The Department must submit • EXCO resolved that the Department should revise the work schedules of a progress report on the its road infrastructure projects and slow down some projects to deal with outcome of the formal request the over commitment of R411 million. forwarded to the PMC, EXCO • As a result, the projected budget shortfall was revised to R193 million. and Budget and Finance Committee relating to the envisaged shortfall for the 2014/15 financial year. 3. The Department must ensure • Two circulars on cost curtailment were issued in the 2014/15 financial the strict implementation of its year. cost curtailment measures. • Savings realised from this intervention were used to mitigate against accruals and the budget shortfall on road infrastructure projects. 4. The Department must ensure The Department spent 99.99% of its total budget of R4,2 billion. In doing so, spending strictly in terms it was able to achieve 45 (78%) of the 58 planned targets for the year. of their approved Annual Performance Plan for 2014/15. Annual Report: 2013/14 Resolution • Progress made 1. Improve on the reliability of • The Department submitted supporting documents for performance the performance information indicators in the APP, some of which were considered unreliable. This was provided to ensure that there mainly due to poor filing in certain Programmes. is no finding in this regard in • The Department will continue to review its internal controls in order to future Auditor-General reports. enhance accountability and reliability of performance information. To this regard, Standard Operating Procedures (SOPs) for the Building Infrastructure have since been developed. This document has been circulated to all Programmes as a referral. • In addition to SOPs, a Performance Information Plan was developed and circulated to all employees. • The Department has also received training on performance information from Auditor General. • Several critical posts were filled in order to increase internal capacity on programme implementation, reporting and performance management. 2. Ensure that the financial • The Department will continue to review its internal controls in order to management and internal minimize the likelihood of contraventions of regulations, irregularities and controls are strengthened wasteful acts. High risk areas have been identified and by looking into to make sure that no future these “red flags” will not only detect irregularities, it will prevent them from findings will be made by occurring in the first place because an environment of accountability will the Auditor-General on the have been established. contravention of Treasury • A number of internal controls (e.g. policies) have been developed to Regulations. enhance governance and accountability within the Department. These Furthermore that the necessary controls, systems and processes are continuously reviewed to ensure measures should be taken compliance to existing prescripts. to address the findings in the • The findings in the current Auditor General report are addressed in the current Auditor-General audit Audit Action Plan. report.

DPWRT Annual Report 2014-15.indb 60 2015/08/18 12:45:41 PM Annual Report Resolution • Progress made 3. Provide a detailed breakdown • A breakdown of the irregular expenditure incurred during the year under of the irregular expenditure review was submitted to the Committee. amounting to R442 563 000.00 • The Department will continue to review its internal controls in order to in the period under review; minimize the likelihood of irregularities and wasteful acts. High risk areas and that relates mainly to have been identified and by looking into these “red flags” will not only the lack of proper contracts detect irregularities, it will prevent them from occurring in the first place in place for the scholar because an environment of accountability will have been established. In transport, acting allowances, the event of discovery, irregular expenditures will be reported to Provincial supply chain management Treasury and disclosed as such in the Annual Financial Statements. and official doing business with government. Furthermore, strengthen its financial management controls to ensure that no irregular expenditure relating to non-compliance with the procurement laws and regulations; will be incurred in the future. 4. Ensure that the project • The general constraints resulting to poor project management are due to monitoring functions are the lack of capacity within DPWRT. strengthened to prevent poor • However, there are other common problems that have affected workmanship by contractors. the quality and timely completion of projects e.g. slow contractor performance, social protests resulting to disruption of works; changes on scope of work; delayed payments and poor planning. • A Standard Operating Procedure Manual was developed for Building Infrastructure to improve overall project management within the Department. • The manual stipulates the roles and responsibilities of project managers as well as the route map for infrastructure delivery. • Several infrastructure governance structures have been put in place to enhance oversight on the delivery of building infrastructure (e.g PPICC, Monthly POMM, JOC meetings, etc) 5. Improve on the planning for • The Infrastructure Delivery Management System (IDMS) has been projects to ensure that the introduced to complement the Infrastructure Delivery Improvement service delivery is actual and Programme (IDIP) and to enhance the infrastructure delivery value chain. visible to communities. • In terms of the IDMS, planning for infrastructure projects should be done 2 years in advance. st 6. Ensure that all the projects • The transfer of all IDT projects to DPWRT was finalised on the 31 October, taken over from IDT are 2014 following an intense verification of site; budget and expenditure. properly managed and the • DPWRT and IDT concluded the signing of a cession agreement. status of projects properly • Implementation of all former IDT projects was monitored on a monthly verified against value for basis through the various established infrastructure governance structures money. e.g. PPICC, POMM and JOC. 8. SCOPA RESOLUTIONS The Select Committee on Public Accounts (SCOPA) that there were no resolutions relating to met with the Department on the following dates: the 2013/14 Annual Report. However, the • 16 October 2014, and Department has received preliminary questions • 25 February 2015 and is still awaiting the final resolutions for implementation. The table below outlines the The purpose of the meetings was to deliberate on progress made towards implementation of the the Annual Report: 2012/13. It should be noted resolutions taken: Resolution No. Subject Resolution Progress made 3.1. Achievement The Accounting Officer The Department endeavours to achieve all (i) of planned must ensure that all planned planned targets as contained in the APP. targets targets as contained in the However, unforeseen circumstances such as Annual Performance Plan are accruals, revision of project lists, labour unrests achieved. and inclement weather may result in the Department not achieving 100% of its planned targets. Notwithstanding this, the Department managed to achieve 58% of its planned targets for 2013/14 which was an improvement from the 51% attained in 2012/13. (ii) The Accounting Officer must The official is employed by the SAPS (South furnish the Committee with African Police Services). A letter was written to a detailed report of the the employer (SAPS) of the implicated official. outcomes of the investigation The matter is currently under investigation and in progress, with regards to the outcome is still pending from SAPS. Abomndeni Construction. 61

DPWRT Annual Report 2014-15.indb 61 2015/08/18 12:45:41 PM Annual Report Resolution No. Subject Resolution Progress made 3.6.3 Employees The Accounting Officer must • No money has been collected yet but the (i) Doing furnish the Committee with a Department cancelled all the contracts Work with progress report indicating the of service providers that had directors as Government amount of money collected government officials. by the Department from those • All the cases were referred to the Departments officials who were found to where such officials are employed and that be doing business with the the Accounting Officers of those Departments. Department. • With regard to officials of DPWRT, the matter was referred to Internal Audit and Legal Services for further management. A progress report will be submitted as soon as it is made available. (ii) The Accounting Officer must • The Department will continue to review its ensure that all measures internal controls in order to minimize the put in place are effectively likelihood of awarding contracts to employees implemented and monitored of the state. and consider taking • This matter is still with the state attorneys. Once disciplinary actions against finalised, where monies have been paid, officials who failed to execute due process will be followed to recover the their duties effectively in order money and disciplinary action taken against to prevent this finding from implicated officials. recurring. 3.7 Service (i) The Accounting Officer A report was submitted to the Committee as (i) Delivery- must furnish the Committee requested. Public Works with a report regarding the registration of these project managers with the South African Council for the Project and Construction Profession after the process has been finalised. (ii) The Accounting Officer must • There were no officials implicated in this ensure that all measures instance since the job titles were translated as put in place are effectively per the OSD guidelines. implemented and monitored • The Department will continue to review and consider taking its internal controls in order to enhance disciplinary actions against accountability and data integrity. To this officials who failed to execute regard, Standard Operating Procedures (SOPs) their duties effectively in order for Building Infrastructure have since been to prevent this finding from developed. This document has been made recurring. available to all Programmes as reference. 3.9.2 Non- The Accounting Officer must Two Senior Managers are being disciplined on (i) compliance consider taking disciplinary this matter. with actions against Members Applicable of Senior Management for Laws and failing to ensure compliance Regulations with applicable laws and regulations within their respective sections/divisions. (ii) The Executive Authority must Advice is being sought from Treasury because ensure that the Accounting such a register would cut across all Programmes. Officer constantly monitors In the meantime, the Accounting Officer compliance with laws and monitors compliance to laws and regulations regulations and a compliance through various governance structures (e.g. register be submitted to the Risk Management Committee, Budget and Committee. Programme Managers Forum, Audit Committee, etc.). 3.10 Governance The Accounting Officer must The SAPS investigation is still ongoing and a (i) furnish the Committee with a report will be submitted to the committee once copy of the outcomes of the the matter is finalized. investigation after it has been concluded.

DPWRT Annual Report 2014-15.indb 62 2015/08/18 12:45:41 PM Annual Report 9. PRIOR MODIFICATIONS TO AUDIT REPORTS There were no prior modifications to audit reports. However, the Auditor General did raise matters The Department received an unqualified on non-compliance that the Department is audit opinion in the previous financial year. addressing in its Audit Action Plan.

Nature of qualification, disclaimer, adverse opinion Progress made in clearing / resolving the matter and matters of non-compliance Misstatements on the Annual Financial Statements • An Annual Report Committee has been appointed to oversee the quality of financial and non-financial information. • Annual Financial Statements were submitted to Internal Audit and Audit Committee for quality assurance. • Financial Reporting Unit was established. Inadequate portfolio of evidence to support • A Performance Information Plan is in place and it is achievements against predetermined objectives evaluated on a monthly basis by the Monitoring and Evaluation Unit. • Programme performance reviews are done on a monthly and quarterly basis. Related corrective action plans are discussion at sectional meetings, MANCO and Audit Committee. • Standard Operating Procedures have been developed or reviewed to enhance management performance at Programme level. Non-compliance to laws and regulations Compliance to laws and regulations is monitored through various governance structures (e.g. Risk Management Committee, Budget and Programme Managers Forum, Audit Committee, etc). Notwithstanding this, the Department continues to review its internal controls in order to minimize the likelihood of contraventions of laws and regulations. Inadequate ICT Governance The Department has approved an ICT charter to ensure the institutionalization of ICT governance as part of corporate governance. This ICT charter has given rise to the following structures, to ensure among others, the alignment of Departmental business and ICT strategy, development and implementation of IT controls and maximum return on investment made on ICT projects: • ICT Champion • ICT steering committee • ICT forum

10. INTERNAL CONTROL UNIT The Department does not have an Internal Key activities and objectives of the internal audit Control Unit. The Internal Audit Unit, however, has reviewed and evaluated the adequacy Internal Audit evaluates and contributes to and effectiveness of internal controls during the the improvement of risk management, internal various audits conducted as per the risk based controls and governance processes and systems annual operational plan. such as: • Information system environment 11. INTERNAL AUDIT AND AUDIT • Reliability and integrity of financial and operational information COMMITTEES • The effectiveness of operations • Safeguarding of assets Internal Audit provides an independent and • objective assurance service to the Accounting Compliance with laws, regulations and Officer and Management of the Department, controls thereby assisting them to achieve the broad objectives of the Department. Summary of audit work done The audit committee plays an important role Internal Audit conducts performance and in ensuring that the Department functions compliance audits, as well as a review of the according to good governance, accounting and annual financial statements and non-financial audit standards. It also monitors the adoption of reports. Refer to the Audit Committee Report in appropriate risk management arrangements. the next section for a list of audits completed for the year.

DPWRT Annual Report 2014-15.indb 63 2015/08/18 12:45:41 PM Annual Report Key activities and objectives of the audit committee The Audit Committee assists management in • Financial, Management and other reporting carrying out its responsibilities as they relate to the practices; Department: • Internal controls and management of risks; • Compliance with laws, regulations and ethics. Attendance of audit committee meetings by audit committee members: Name Qualifications Internal or If internal, Date appointed Date resigned external position in the member Department IT • BTECH (Public External. None. 01-Aug-13 N/A Ranape Management & Administration • N Higher Diploma IPublic Management & Administration • Diploma in State Finance FA Keyser • Senior Certificate External. None. 01-Aug-13 N/A NA • B.COM External. None. 01-Aug-13 N/A Dzuguda • B.COM (Hons) • Certificate in Taxation MA • LLM – Labour Law 1&2 External. None. 01-Aug-13 N/A Mashego • LLM – Company Law • LLB • Hons. B Commerce • B. Commerce • Diploma in State Finance & Accounting

DPWRT Annual Report 2014-15.indb 64 2015/08/18 12:45:42 PM Annual Report 12. AUDIT COMMITTEE REPORT We are pleased to present our report for the . Inadequate maintenance and control of financial year ended 31 March 2015. government vehicles in certain districts; . Delay in management response to audit Audit Committee Members and Attendance findings raised; . Lack of understanding of audit processes by The Audit Committee should meet on a quarterly internal officials. basis as per the approved terms of reference. Seven (7) meetings were held in the period under The Audit Committee discussed with the Member review. The Audit Committee consists of the of the Executive Council, matters that were following listed members who attended as follows: brought to our attention through Internal Audit and other management reports. Name No. of meetings attended In-Year Management and Monthly/Quarterly IT Ranape (Chairperson) 7 Reports NA Dzuguda 7 FA Keyser 6 The Audit Committee reviewed the quality of MA Mashego 6 the monthly and quarterly reports submitted by the Head of the Department during the period In the period under review, there were neither under review. The committee is of the view that new appointments nor resignations. substantial improvement has taken place in respect of the preparation of these reports. Audit Committee Responsibility The Committee remains concerned about The Audit Committee has complied with its performance targets that are determined by responsibilities arising from Section 38 (1) (a) (ii) of National Departments, for example on EPWP. The the Public Finance Management Act (PFMA) and Committee is of the opinion that these targets Treasury Regulation (TR) 3.1. The Audit Committee are impractical to implement at provincial level has for the period under review adopted formal and affects the performance percentage of the terms of reference by way of an Audit Committee Department negatively. Charter, has regulated its affairs in compliance with the charter and has discharged its responsibilities Evaluation of Financial Statements as contained therein. The Audit Committee reviewed and discussed the The Effectiveness of Internal Control mid-tem interim financial statement with the Head of Department and Management. The Committee The Audit Committee reviewed the audit findings highlighted the following improvements: raised by Internal Audit, based on an approved annual risk based operational plan. The findings . Reduction of accruals; revealed certain weaknesses that impact on . Payment of creditors within 30 days; the system of internal control applied by the . Limited unauthorised expenditure for the Department. The following internal audit work was period under review; completed during the year under review: . Improved rate of expenditure. . Performance Management Systems and The Audit Committee also reviewed and discussed annual performance reviews; the unaudited Annual Financial Statements and . Performance information review; information on the predetermined objectives to . Building infrastructure; be included in the annual report with the Head of . Follow up- Asset Management; Department and Management. The Committee . Interim Financial statement reviews; highlighted the following concerns: . Transport infrastructure; . Accuracy of leave disclosures; . Follow up- Evaluation of internal controls; . Reduction of Other Debtors; . Supply chain management; . Senior Management vacancy rate; . Security management; . Poor implementation of performance . Financial accounting; management system; . Follow up- AG management letter. . Compliance with procurement processes. The following were areas of concern: Internal Audit . Late submission of required documentation by divisions/ programmes hence delay in finalizing The Committee is satisfied that the internal some audits; audit function is operating effectively and has . Incomplete and non availability of lease addressed the risks of the department in its audits. agreements; It was however noted that, not all the planned . Poor implementation of internal controls in audits were executed during the year under some divisions due to staff shortage; review including audits that are prescribed by . Lack of segregation of duties due to vacant law. There are however vacant positions in the positions in revenue management in the district unit that needs to be filled due to the size of the offices; Department.

DPWRT Annual Report 2014-15.indb 65 2015/08/18 12:45:42 PM Annual Report Auditor General’s Report We have reviewed the department’s We concur with and accept the Auditor General’s implementation plan in respect of audit issues conclusion on the annual financial statements. raised in the 2013/14 financial year and we are satisfied that the matters have been adequately Appreciation resolved except for the following: I would like to take this opportunity to thank . Compliance with certain prescripts on supply my fellow Audit Committee members for their chain management; outstanding commitment during the year under . Non achievement of some planned targets. review. I also thank the Head of Department and his Management team for their input and support The Audit Committee also reviewed the Auditor during the period under review, particularly, the General report for 2014/15 annual financial manner in which they executed the 2014/15 statements and the opinion thereof. external audit.

______Ms TI Ranape Chairperson of the Audit Committee Department of Public Works, Roads and Transport 31 July 2015

DPWRT Annual Report 2014-15.indb 66 2015/08/18 12:45:42 PM Annual Report

HUMAN RESOURCE PART D MANAGEMENT

DPWRT Annual Report 2014-15.indb 67 2015/08/18 12:45:54 PM Annual Report 1. INTRODUCTION The information contained in this part of the ii. Continuous development of employees, annual report has been prescribed by the Minister which would provide the Department with for the Public Service and Administration for all a competent workforce, departments in the public service. iii. Attraction and retention of technical skills to support delivery of the Provincial 2. OVERVIEW OF HUMAN RESOURCES infrastructure agenda. 2.1 STATUS OF HUMAN RESOURCES IN THE 2.4 EMPLOYEE PERFORMANCE MANAGEMENT DEPARTMENT The Department has a Human Resource Utilization The Human Resources Management and and Capacity Development (HRU & CD) unit Development programme is responsible for which deals with the proper implementation of the provision of efficient and effective human performance management and development capital, management practice, administrative system. The aim of performance management services and development. The Human Resource is to optimize every employee’s output in terms Management and Development programme of quality and quantity thereby improving the comprises of the following sections: overall performance of the Department and i. Human Resources Practices and ensure service delivery. Employees who qualify for Administration performance bonuses are assessed by moderation ii. Human Resource Utilisation and Capacity committees, who then examine the evidence Development provided by supervisors. Personal Development iii. Employee Health and Wellness Plans are also completed to ensure that under iv. Organisational Design performing employees are offered training and v. Employee Relations development programmes that will assist them to close any performance gaps. The Department managed to fill 60 posts during the 2014/15 financial year which includes 10 2.5 EMPLOYEE WELLNESS PROGRAMMES SMS. At 31 March 2015, the vacancy rate in the Department was at 12.25% which means that One of the key aspects of human resource 3559 of the 4056 posts on the organisational management in any organization revolves around establishment were filled. employee health and wellness. The Department has established fully-fledged unit aimed at 2.2 HUMAN RESOURCE PRIORITIES FOR THE YEAR promoting employee wellness programme and UNDER REVIEW AND THE IMPACT OF THESE consistently seek to reach its entire workforce through specific targeted programmes. One of In determining the Human Resource policy these programmes involves keeping in shape priorities for the Department, the following priorities by participating in different sporting activities. were agreed upon: Another significant programme includes initiatives to manage HIV and AIDS and Occupational, HR Priorities Health and Safety programmes. 1. Organisational Structure 2. Budget 2.6 HIGHLIGHTS OF ACHIEVEMENTS AND 3. Recruitment and Selection CHALLENGE FACED BY THE DEPARTMENT, AS WELL AS FUTURE HUMAN RESOURCE PLANS/ 4. Employee Health and Wellness GOALS 5. Performance Management & Development System Achievements 6. Training and Development 7. HR Information The Department has successfully achieved the 8. Retention following objectives in the 2014/15 financial year: • The Successive Employment Equity Plan for 9. Succession Planning and Career Management 2013 – 2018 financial years was approved. 10. Employment Equity/ Diversity Management • A total of 10 Senior Management positions 11. Compensation and Conditions of Service where filled in 2014/2015 financial year. 12. Culture and Ethics • The Department maintained the +36% of 13. Labour Relations female Senior Managers. • The Department has maintain the 2% of 2.3 WORKFORCE PLANNING AND KEY STRATEGIES persons with disabilities, TO ATTRACT AND RECRUIT A SKILLED AND • A total of 2395 employees were trained on CAPABLE WORKFORCE various training interventions in the financial year. After analysing the current workforce profile and • 108 internship learners were recruited for the future demand, the following HR key strategies Internship Programme and 50 learners were were identified to deal with the challenges: recruited for various learnership programmes. i. A new functional organisational structure • 98% of employees signed performance that would result in the Department agreements with their immediate supervisors. meeting its strategic objectives. • A number of awareness programmes (Employment Equity, PMDS, Health & Wellness) were facilitated across the Department (i.e. Districts and Head Office). 68

DPWRT Annual Report 2014-15.indb 68 2015/08/18 12:45:54 PM Annual Report • 01 Human Resource Management policy around this matter. To counter this, quarterly was reviewed. moderations were introduced and 93 PMDS • Consultation processes were facilitated with workshops conducted as part of apprising all all relevant stakeholders on Service Delivery employees about the main objectives of this Charter, Service Standards and Service tool. Delivery Improvement Plan. • The slow recovery of the economy has forced • Injury On Duty (IOD) cases decreased from government to review its public sector wage 37 to 31. More importantly, there were bill. In compliance to the DPSA directive, no fatalities, permanent disablement or the number of unfunded posts within the permanent disablement amongst these Department were removed from PERSAL. cases. Future HR plans /goals Challenges In pursuance of the outcome to develop an • The Department continues to face a serious efficient, effective and development-oriented challenge of shortage of skilled personnel public service, the Department will implement the especially in the light of the massive following future plans/goals: infrastructure roll out expected in the • DPWRT will be engaged on the rationalization Province. This challenge of skills shortage is process incompliance with the Provincial not unique to the Public Sector only. Budget Committee’s resolution on To unlock potential and attract required skills, moratorium in the filling of all vacant funded a range of capacity building initiatives have positions. been developed to optimize the attraction • The Annual Adjusted HR Plan is to be adopted and recruitment of targeted groups. as the guiding documents in integrating • Employees still view incentive bonuses as all human capital plans for the upcoming entitlements. As a result most labour actions financial year. undertaken during the year were centred 3. HUMAN RESOURCES OVERSIGHT STATISTICS 3.1 PERSONNEL RELATED EXPENDITURE

The following tables summarises the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following: • amount spent on personnel • amount spent on salaries, overtime, homeowner’s allowances and medical aid. Table 3.1.1 Personnel expenditure by programme for the period 1 April 2014 and 31 March 2015 Programme Total Personnel Training Professional Personnel Average expenditure expenditure expenditure and special expenditure personnel cost (R’000) (R’000) (R’000) services as a % of total per employee expenditure expenditure (R’000) (R’000) Administration 227,405 151,715 292 4,686 66.7 43 Public Works 590,617 253,078 235 8,242 42.8 71 Infrastructure Transport 2,369,864 356,173 7,535 64,260 15.0 100 Infrastructure Transport 993,908 49,213 0 7,385 5.0 14 Operations Community 59,367 29,038 14,736 6,047 48.9 43 Based Programmes TOTAL 4,241,161 839,217 22,798 90,620 19.8 236

Table 3.1.2 Personnel costs by salary band for the period 1 April 2014 and 31 March 2015 Salary band Personnel % of total personnel No. of employees Average personnel expenditure (R’000) cost cost per employee (R’000) Lower skilled 118,375 14.1 773 153,1 (Levels 1-2) Skilled (level 3-5) 261,923 31.2 1,700 154,1 Highly skilled 197,239 23.5 667 295,7 production (levels 6-8) Highly skilled 196,559 23.4 369 532,7 supervision (levels 9-12)

DPWRT Annual Report 2014-15.indb 69 2015/08/18 12:45:54 PM Annual Report Salary band Personnel % of total personnel No. of employees Average personnel expenditure (R’000) cost cost per employee (R’000) Senior and Top 65,121 7.8 50 1,302,4 management (levels 13-16) Total 839,217 100 3 559 235,8

Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2014 and 31 March 2015 Salaries Overtime Home Owners Medical Aid Allowance Programme Amount Salaries Amount Overtime Amount HOA as Amount Medical aid (R’000 as a % of (R’000) as a % of (R’000) a % of (R’000) as a % of personnel personnel personnel personnel costs costs costs costs Administration 102,077 67.3 2,227 1.5 4,916 3.2 6,596 4.3 Public Works 168,819 66.7 4,,976 2.0 12,487 4.9 12,396 4.9 Infrastructure Transport 236,283 66.3 2,076 0.6 21,314 6.0 27,890 7.8 Infrastructure Transport 31,987 65.0 2,401 4.9 1,763 3.6 2,584 Operations 5.3 Community 16,510 56.9 0 0 607 2.1 835 2.9 Based Programmes Total 555,676 66.2 11,680 1.4 41,087 4.9 50,301 6.0

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2014 and 31 March 2015 Salaries Overtime Home Owners Medical Aid Salary band Allowance Amount Salaries Amount Overtime Amount HOA as Amount Medical aid (R’000 as a % of (R’000) as a % of (R’000) a % of (R’000) as a % of personnel personnel personnel personnel costs costs costs costs Lower skilled 72,768 63 1,193 1 9,383 8.1 13,382 11.6 (Levels 1-2) Skilled 156,327 65 3,700 1.4 17,399 6.6 19,425 7.3 (Levels 3-5) Highly skilled 128,137 62.5 4,979 2.4 6,449 3.1 10,185 5 production (Levels 6-8) Highly skilled 137,585 60.9 1,745 0.8 5,042 2.2 6,043 2.7 supervision (Levels 9-12) Senior 46,174 66.7 0 0 2,719 3.9 1,053 1.5 management (Levels 13-16) Contract (Levels 2,924 97.2 25 0.8 0 0 0 0 1-2) Contract (Levels 1,702 74.5 38 1.7 43 1.9 88 3.9 3-5) Contract (Levels 3,520 85.9 0 0 17 0.4 64 1.6 6-8) Contract (Levels 1,901 73.2 0 0 35 1.3 39 1.5 9-12) Contract (Levels 4,638 78.4 0 0 0 0 22 0.4 13-16) Periodical 555,676 57.4 11,680 1.1 41,087 4.0 50,301 4.9 Remuneration Abnormal 72,768 63 1,193 1 9,383 8.1 13,382 11.6 Appointment Total 156,327 65 3,700 1.4 17,399 6.6 19,425 7.3

DPWRT Annual Report 2014-15.indb 70 2015/08/18 12:45:55 PM Annual Report 3.2 EMPLOYMENT AND VACANCIES The tables in this section summarise the position with regard to employment and vacancies. The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment. This information is presented in terms of three key variables: • programme • salary band • critical occupations (see definition in notes below). Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled. Table 3.2.1 Employment and vacancies by programme as on 31 March 2015 Programme Number of posts Number of posts Vacancy Rate Number of on approved filled employees establishment additional to the establishment Administration 518 386 25.48 5 Public Works 1 166 1 017 12.78 0 Infrastructure Transport 2 110 1 932 8.43 11 Infrastructure Transport Operations 209 178 14.83 0 Community Based 53 46 13.20 0 Programmes Total 4 056 3 559 12.25 16 Table 3.2.2 Employment and vacancies by salary band as on 31 March 2015 Salary band Number of posts Number of posts Vacancy Rate Number of on approved filled employees establishment additional to the establishment Lower skilled 889 773 13.05 0 (1-2) Skilled(3-5) 1 914 1700 11.18 2 Highly skilled 742 667 10.10 9 production (6-8) Highly skilled 425 369 13.18 3 supervision (9-12) Senior management 86 50 41.86 2 (13-16) Total 4 056 3 559 12.25 16

Table 3.2.3 Employment and vacancies by critical occupations as on 31 March 2015 Critical occupation Number of posts Number of posts Vacancy Rate Number of on approved filled employees establishment additional to the establishment Administrative 236 200 15.3 12 related, Permanent Agriculture related, 1 1 0 0 Permanent All artisans in the 258 198 23.3 0 building metal machinery etc., Permanent Architects town 5 5 0 0 and traffic planners, Permanent Artisan project 23 19 17.4 0 and related superintendents, Permanent

DPWRT Annual Report 2014-15.indb 71 2015/08/18 12:45:55 PM Annual Report Critical occupation Number of posts Number of posts Vacancy Rate Number of on approved filled employees establishment additional to the establishment Auxiliary and related 31 31 0 0 workers, Permanent Boiler and related 71 67 5.6 0 operators, Permanent Building and other 11 10 9.1 0 property caretakers, Permanent Bus and heavy 14 14 0 0 vehicle drivers, Permanent Cartographers 1 1 0 0 and surveyors, Permanent Cartographic 8 8 0 0 surveying and related technicians, Permanent Civil engineering 13 13 0 0 technicians, Permanent Cleaners in offices 169 148 12.4 0 workshops hospitals etc., Permanent Client inform 3 3 0 0 clerks(switchb recept inform clerks), Permanent Communication and 2 2 0 0 information related, Permanent Electrical and 1 1 0 0 electronics engineering technicians, Permanent Engineering sciences 54 43 20.4 1 related, Permanent Engineers and 40 34 15 0 related professionals, Permanent Farm hands 48 46 4.2 0 and labourers, Permanent Finance and 20 15 25 0 economics related, Permanent Financial and 45 37 17.8 0 related professionals, Permanent Financial clerks and 169 156 7.7 0 credit controllers, Permanent Head of 1 1 0 0 department/chief executive officer, Permanent Human resources & 12 10 16.7 0 organisat developm & relate prof, Permanent Human resources 76 69 9.2 0 clerks, Permanent Human resources 120 39 67.5 0 related, Permanent

DPWRT Annual Report 2014-15.indb 72 2015/08/18 12:45:55 PM Annual Report Critical occupation Number of posts Number of posts Vacancy Rate Number of on approved filled employees establishment additional to the establishment Information 7 7 0 0 technology related, Permanent Inspectors of 18 17 5.6 0 apprentices works and vehicles, Permanent Language 1 1 0 0 practitioners interpreters & other comm, Permanent Legal related, 4 4 0 0 Permanent Library mail and 20 20 0 0 related clerks, Permanent Light vehicle drivers, 22 21 4.5 1 Permanent Logistical support 6 6 0 0 personnel, Permanent Material-recording 7 7 0 0 and transport clerks, Permanent Mechanical 5 5 0 0 engineering technicians, Permanent Messengers porters 5 4 20 0 and deliverers, Permanent Motor vehicle 15 13 13.3 0 drivers, Permanent Motorised farm 2 2 0 0 and forestry plant operators, Permanent Natural sciences 5 5 0 0 related, Permanent Other admin & 146 139 4.8 1 related clerks and organisers, Permanent Other administrative 8 8 0 0 policy and related officers, Permanent Other machine 1 0 100 0 operators, Permanent Other occupations, 14 13 7.1 1 Permanent Quantity surveyors 11 8 27.3 0 & related prof not class elsewhere, Permanent Regulatory 137 122 10.9 0 inspectors, Permanent Risk management 4 3 25 0 and security services, Permanent Road 73 64 12.3 0 superintendents, Permanent Road trade workers, 10 9 10 0 Permanent

DPWRT Annual Report 2014-15.indb 73 2015/08/18 12:45:55 PM Annual Report Critical occupation Number of posts Number of posts Vacancy Rate Number of on approved filled employees establishment additional to the establishment Road workers, 1567 1443 8 0 Permanent Secretaries & other 136 124 8.8 0 keyboard operating clerks, Permanent Security guards, 2 2 0 0 Permanent Senior managers, 55 39 29.1 0 Permanent Trade labourers, 285 250 12.3 0 Permanent Trade quality 12 11 8.3 0 controllers, Permanent Trade related, 3 3 0 0 Permanent Water plant and 43 38 11.6 0 related operators, Permanent Total 4 056 3 559 12.25 16 Notes • The CORE classification, as prescribed by the DPSA, should be used for completion of this table. • Critical occupations are defined as occupations or sub-categories within an occupation – (a) in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; (b) for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; (c) where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and (d) in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees. 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 2015 SMS Level Total number of Total number of % of SMS posts Total number of % of SMS posts funded SMS posts SMS posts filled filled SMS posts vacant vacant Director- 1 1 100 0 0 General/ Head of Department Salary Level 16 1 1 100 0 100 (MEC) Salary Level 15 3 1 33.33 2 66.67% Salary Level 14 7 7 100 0 0 Salary Level 13 46 40 86.95 6 13.04 Total 58 50 86.20 8 13.79

Table 3.3.2 SMS post information as on 30 September 2014 SMS Level Total number of Total number of % of SMS posts Total number of % of SMS posts funded SMS posts SMS posts filled filled SMS posts vacant vacant Director- 1 1 100 0 100 General/ Head of Department Salary Level 16 1 1 100 0 100 MEC

DPWRT Annual Report 2014-15.indb 74 2015/08/18 12:45:55 PM Annual Report SMS Level Total number of Total number of % of SMS posts Total number of % of SMS posts funded SMS posts SMS posts filled filled SMS posts vacant vacant Salary Level 15 3 1 33.33 2 66.67 Salary Level 14 7 6 85.71 1 14.28 Salary Level 13 46 31 67.39 15 32.61 Total 58 40 68.96 18 31.04

Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2014 and 31 March 2015 SMS Level Total number of Total number of % of SMS posts Total number of % of SMS posts funded SMS posts SMS posts filled filled SMS posts vacant vacant Director- 1 1 100 0 0 General/ Head of Department Salary Level 16 1 1 100 0 100 Salary Level 15 3 1 33.33 2 66.67 Salary Level 14 7 7 100 0 0 Salary Level 13 46 40 86.95 6 13.04 Total 58 50 86.20 8 13.79 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 2014 and 31 March 2015 Reasons for vacancies not advertised within six months All posts where advertised within 12 months period.

Reasons for vacancies not filled within twelve months Appointments needing approval by the Executive Council, budget pressures and shortage of technical skills in the market. Notes • In terms of the Public Service Regulations Chapter 1, Part VII C.1A.3, departments must indicate good cause or reason for not having complied with the filling of SMS posts within the prescribed timeframes. Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2015 and 31 March 2015 Reasons for vacancies not advertised within six months Not applicable.

Reasons for vacancies not filled within twelve months Not applicable. Notes • In terms of the Public Service Regulations Chapter 1, Part VII C.1A.2, departments must indicate good cause or reason for not having complied with the filling of SMS posts within the prescribed timeframes. In the event of non-compliance with this regulation, the relevant executive authority or head of department must take appropriate disciplinary steps in terms of section 16A(1) or (2) of the Public Service Act. 3.4 JOB EVALUATION Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are filled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.

DPWRT Annual Report 2014-15.indb 75 2015/08/18 12:45:55 PM Annual Report Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2014 and 31 March 2015 Salary band Number of Number % of posts Posts Upgraded Posts downgraded posts on of Jobs evaluated Number % of posts Number % of posts approved Evaluated by salary evaluated evaluated establishment bands Lower Skilled 889 0 0 0 0 0 0 (Levels1-2) Skilled 1914 0 0 0 0 0 0 (Levels 3-5) Highly skilled 742 0 0 0 0 0 0 production (Levels 6-8) Highly skilled 425 19 0.22 0 0 0 0 supervision (Levels 9-12) Senior 64 4 0.16 0 0 0 0 Management Service Band A Senior 14 1 0.14 0 0 0 0 Management Service Band B Senior 6 0 0 0 0 0 0 Management Service Band C Senior 2 0 0 0 0 0 0 Management Service Band D Total 4 056 24 1.69 0 0 0 0 The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant. Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2014 and 31 March 2015 Gender African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0

Employees with a disability 0 The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case. Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2014 and 31 March 2015 Occupation Number of Job evaluation level Remuneration level Reason for deviation employees 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total number of employees whose salaries exceeded the level determined by job 0 evaluation Percentage of total employed 0

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 2014 and 31 March 2015 Gender African Asian Coloured White Total Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0 Employees with a disability 0 0 0 0 0

DPWRT Annual Report 2014-15.indb 76 2015/08/18 12:45:55 PM Annual Report Notes • If there were no cases where the salary levels were higher than those determined by job evaluation, keep the heading and replace the table with the following:

Total number of Employees whose salaries exceeded the grades determine None. by job evaluation 3.5 EMPLOYMENT CHANGES This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations (see definition in notes below). Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2014 and 31 March 2015 Salary band Number of Appointments and Terminations and Turnover rate employees at transfers into the transfers out of the beginning of Department Department period:1 April 2014 Lower skilled ( Levels 1-2) 924 0 15 1.6 Skilled (Levels3-5) 1684 0 120 7.1 Highly skilled production 621 53 27 4.3. (Levels 6-8) Highly skilled supervision 359 1 13 3.6 (Levels 9-12) Senior Management 46 3 3 6.5 Service Bands A Senior Management 11 0 1 9.1 Service Bands B Senior Management 4 0 0 0 Service Bands C Senior Management 1 1 1 100 Service Bands D Contracts 114 17 94 7.17 Total 3 764 75 274 7.3 Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2014 and 31 March 2015 Critical occupation Number of Appointments and Terminations and Turnover rate employees at transfers into the transfers out of the beginning of Department Department period-April 2014 Administrative related, 216 2 12 5.6 Permanent Agriculture related, 1 1 0 0 Permanent All artisans in the building 208 0 14 6.7 metal machinery etc., Permanent Architects town and traffic 2 0 0 0 planners, Permanent Artisan project and related 23 0 3 13 superintendents, Permanent Auxiliary and related workers, 30 0 0 0 Permanent Boiler and related operators, 33 0 4 12.1 Permanent Building and other property 13 0 2 15.4 caretakers, Permanent Bus and heavy vehicle 14 0 0 0 drivers, Permanent Cartographers and surveyors, 1 0 0 0 Permanent Cartographic surveying 9 0 0 0 and related technicians, Permanent Civil engineering technicians, 6 0 0 0 Permanent

DPWRT Annual Report 2014-15.indb 77 2015/08/18 12:45:55 PM Annual Report Critical occupation Number of Appointments and Terminations and Turnover rate employees at transfers into the transfers out of the beginning of Department Department period-April 2014 Cleaners in offices workshops 158 10 23 14.6 hospitals etc., Permanent Client inform clerks(switchb 3 0 0 0 recept inform clerks), Permanent Communication and 2 0 0 0 information related, Permanent Electrical and electronics 1 0 0 0 engineering technicians, Permanent Engineering sciences related, 54 0 3 5.6 Permanent Engineers and related 17 0 1 5.9 professionals, Permanent Farm hands and labourers, 49 0 1 2 Permanent Finance and economics 15 0 0 0 related, Permanent Financial and related 38 0 0 0 professionals, Permanent Financial clerks and credit 165 0 7 4.2 controllers, Permanent General legal administration 1 0 1 100 & rel. professionals, Permanent Head of department/chief 2 0 0 0 executive officer, Permanent Human resources & organisat 11 0 0 0 developm & relate prof, Permanent Human resources clerks, 70 0 3 4.3 Permanent Human resources related, 111 1 74 66.7 Permanent Information technology 7 0 0 0 related, Permanent Inspectors of apprentices 21 0 0 0 works and vehicles, Permanent Language practitioners 1 0 0 0 interpreters & other commun, Permanent Legal related, Permanent 3 0 0 0 Library mail and related 21 0 0 0 clerks, Permanent Light vehicle drivers, 23 1 2 8.7 Permanent Logistical support personnel, 6 0 0 0 Permanent Material-recording and 8 0 1 12.5 transport clerks, Permanent Mechanical engineering 9 0 0 0 thechnicians, Permanent Messengers porters and 5 0 0 0 deliverers, Permanent Motor vehicle drivers, 14 0 1 7.1 Permanent Motorised farm and forestry 2 0 0 0 plant operators, Permanent Natural sciences related, 5 0 0 0 Permanent

DPWRT Annual Report 2014-15.indb 78 2015/08/18 12:45:55 PM Annual Report Critical occupation Number of Appointments and Terminations and Turnover rate employees at transfers into the transfers out of the beginning of Department Department period-April 2014 Other administrat & related 132 2 5 3.8 clerks and organisers, Permanent Other administrative 8 0 0 0 policy and related officers, Permanent Other machine operators, 1 0 1 100 Permanent Other occupations, 14 1 1 7.1 Permanent Quantity surveyors & rela 9 0 0 0 prof not class elsewhere, Permanent Regulatory inspectors, 74 52 3 4.1 Permanent Risk management and 3 0 0 0 security services, Permanent Road superintendents, 69 0 5 7.2 Permanent Road trade workers., 9 0 0 0 Permanent Road workers, Permanent 1547 0 68 4.4 Secretaries & other keyboard 153 0 15 9.8 operating clerks, Permanent Security guards, Permanent 3 0 0 0 Senior managers, Permanent 37 5 6 16.2 Trade labourers, Permanent 271 0 14 5.2 Trade quality controllers, 11 0 0 0 Permanent Trade related, Permanent 3 0 0 0 Water plant and related 42 0 4 9.5 operators, Permanent Total 3 764 75 274 7.3 Notes • The CORE classification, as prescribed by the DPSA, should be used for completion of this table. • Critical occupations are defined as occupations or sub-categories within an occupation – (a) in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; (b) for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; (c) where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and (d) in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees.

The table below identifies the major reasons why staff left the department. Table 3.5.3 Reasons why staff left the department for the period 1 April 2014 and 31 March 2015 Termination Type Number % of Total Resignations Death 38 13.28 Resignation 46 16.08 Expiry of contract 85 29.72 Dismissal – operational changes 0 0 Dismissal – misconduct 3 1.05 Dismissal – inefficiency 0 0 Discharged due to ill-health 0 0 Retirement 102 35.67 Transfer to other Public Service Departments 12 4.20

DPWRT Annual Report 2014-15.indb 79 2015/08/18 12:45:56 PM Annual Report Termination Type Number % of Total Resignations Other 0 0 Total number of employees who left as a % of total 286 100 employment Table 3.5.4 Promotions by critical occupation for the period 1 April 2014 and 31 March 2015 Occupation Employees 1 Promotions to Salary level Progressions to Notch April 2014 another salary promotions as a another notch progression as a level % of employees within a salary % of employees by occupation level by occupation Administrative 216 5 2.3 147 68.1 related Agriculture 1 0 0 0 0 related

All artisans in the 208 1 0.5 142 68.3 building metal machinery etc. Architects town 2 1 50 0 0 and traffic planners Artisan project 23 0 0 21 91.3 and related superintendents Auxiliary and 30 0 0 28 93.3 related workers Boiler and 33 0 0 65 197 related operators Building and 13 0 0 9 69.2 other property caretakers Bus and heavy 14 0 0 12 85.7 vehicle drivers Cartographers 1 0 0 0 0 and surveyors Cartographic 9 0 0 7 77.8 surveying and related technicians Civil engineering 6 0 0 6 100 technicians Cleaners in 158 0 0 128 81 offices workshops hospitals etc. Client inform 3 0 0 3 100 clerks(switchb recept inform clerks) Communication 2 0 0 1 50 and information related Electrical and 1 0 0 0 0 electronics engineering technicians Engineering 54 0 0 40 74.1 sciences related Engineers 17 0 0 10 58.8 and related professionals Farm hands and 49 0 0 46 93.9 labourers Finance and 15 0 0 14 93.3 economics related Financial 38 0 0 31 81.6 and related professionals

DPWRT Annual Report 2014-15.indb 80 2015/08/18 12:45:56 PM Annual Report Occupation Employees 1 Promotions to Salary level Progressions to Notch April 2014 another salary promotions as a another notch progression as a level % of employees within a salary % of employees by occupation level by occupation Financial clerks 165 2 1.2 136 82.4 and credit controllers General legal 1 0 0 1 100 administration & rel. professionals Head of 2 0 0 2 100 department/ chief executive officer Human resources 11 1 9.1 10 90.9 & organisat developm & relate prof Human resources 70 0 0 60 85.7 clerks Human resources 111 2 1.8 25 22.5 related Information 7 0 0 5 71.4 technology related Inspectors of 21 1 4.8 17 81 apprentices works and vehicles Language 1 0 0 1 100 practitioners interpreters & other commun Legal related 3 0 0 2 66.7 Library mail and 21 0 0 17 81 related clerks Light vehicle 23 0 0 11 47.8 drivers Logistical support 6 0 0 4 66.7 personnel Material- 8 0 0 5 62.5 recording and transport clerks Mechanical 9 0 0 7 77.8 engineering technicians Messengers 5 0 0 2 40 porters and deliverers Motor vehicle 14 0 0 8 57.1 drivers Motorised farm 2 0 0 2 100 and forestry plant operators Natural sciences 5 0 0 5 100 related Other administrat 132 1 0.8 112 84.8 & related clerks and organisers Other 8 0 0 5 62.5 administrative policy and related officers Other machine 1 0 0 1 100 operators Other 14 0 0 11 78.6 occupations

DPWRT Annual Report 2014-15.indb 81 2015/08/18 12:45:56 PM Annual Report Occupation Employees 1 Promotions to Salary level Progressions to Notch April 2014 another salary promotions as a another notch progression as a level % of employees within a salary % of employees by occupation level by occupation Quantity 9 0 0 8 88.9 surveyors & rela prof not class elsewhere Regulatory 74 3 4.1 54 73 inspectors Risk 3 0 0 2 66.7 management and security services Road 69 0 0 53 76.8 superintendents Road trade 9 0 0 7 77.8 workers. Road workers 1547 9 0.6 1213 78.4 Secretaries & 153 0 0 114 74.5 other keyboard operating clerks Security guards 3 0 0 2 66.7 Senior managers 37 6 16.2 18 48.6 Trade labourers 271 0 0 228 84.1 Trade quality 11 0 0 5 45.5 controllers Trade related 3 0 0 3 100 Water plant and 42 0 0 41 97.6 related operators Total 3 764 32 0.9 2 907 77.2 Table 3.5.5 Promotions by salary band for the period 1 April 2014 and 31 March 2015 Salary Band Employees 1 Promotions to Salary bands Progressions to Notch April 2014 another salary promotions as a another notch progression as a level % of employees within a salary % of by salary level level employees by salary bands Lower skilled 924 0 0 695 75.2 (Levels 1-2), Permanent Skilled (Levels 1684 9 0.5 1448 86 3-5), Permanent Highly skilled 621 5 0.8 463 74.6 production (Levels 6-8), Permanent Highly skilled 359 10 2.8 259 72.1 supervision (Levels 9-12), Permanent Senior 62 8 12.9 38 61.3 management (Levels 13-16), Permanent Contract (Levels 77 0 0 0 0 1-2), Permanent Contract (Levels 16 0 0 1 6.3 3-5), Permanent Contract (Levels 15 0 0 1 6.7 6-8), Permanent Contract (Levels 2 0 0 1 50 9-12), Permanent Contract 4 0 0 1 25 (Levels 13-16), Permanent Total 3 764 32 0.9 2 907 77.2

DPWRT Annual Report 2014-15.indb 82 2015/08/18 12:45:56 PM Annual Report 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 2015 Occupational Male Female Total category African Coloured Indian White African Coloured Indian White Legislators, 29 0 0 2 18 0 1 0 50 senior officials and managers Professionals 116 0 0 11 76 1 0 0 204 Technicians 127 1 2 8 126 0 0 5 269 and associate professionals Clerks 210 2 0 3 288 2 0 13 518 Service and 77 0 0 0 50 0 0 0 127 sales workers Skilled 0 0 0 0 0 0 0 0 0 agriculture and fishery workers Craft and 237 0 0 38 44 0 0 0 319 related trades workers Plant and 113 0 0 5 36 0 0 4 158 machine operators and assemblers Elementary 1116 1 0 20 777 0 0 0 1914 occupations Total 2 025 4 2 87 1415 3 1 22 3 559 Employees 36 1 0 5 36 0 0 1 79 with disabilities Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2015 Occupational Male Female Total band African Coloured Indian White African Coloured Indian White Top 2 0 0 0 1 0 0 0 3 Management Senior 27 0 0 2 17 0 1 0 47 Management Professionally 107 1 2 11 49 1 0 5 176 qualified and experienced specialists and mid- management Skilled 210 0 0 32 107 0 0 5 354 technical and academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and 539 1 0 41 432 2 0 12 1027 discretionary decision making Unskilled and 1140 2 0 1 809 0 0 0 1952 defined decision making Total 2 025 4 2 87 1415 3 1 22 3 559

DPWRT Annual Report 2014-15.indb 83 2015/08/18 12:45:56 PM Annual Report Table 3.6.3 Recruitment for the period 1 April 2014 and 31 March 2015 Occupational Male Female Total band African Coloured Indian White African Coloured Indian White Top 0 0 0 1 0 0 1 Management Senior 4 0 0 1 0 0 5 Management Professionally 2 0 0 0 0 0 2 qualified and experienced specialists and mid- management Skilled 34 0 0 21 0 0 55 technical and academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and 1 0 0 0 11 0 0 0 12 discretionary decision making Unskilled and 0 0 0 0 0 0 0 0 0 defined decision making Total 41 0 0 0 34 0 0 0 75 Employees with 0 0 0 0 0 0 0 0 0 disabilities Table 3.6.4 Promotions for the period 1 April 2014 and 31 March 2015 Occupational Male Female Total band African Coloured Indian White African Coloured Indian White Top 1 0 0 2 0 0 0 1 4 Management Senior 21 0 0 3 17 0 1 0 42 Management Professionally 162 0 1 16 84 1 0 5 269 qualified and experienced specialists and mid- management Skilled 232 0 0 17 207 1 0 11 468 technical and academically qualified workers, junior management, supervisors, foremen Semi- 899 1 0 21 534 1 0 1 1457 skilled and discretionary decision making Unskilled 331 1 0 0 363 0 0 0 695 and defined decision making, Contract 0 0 0 1 0 0 0 0 1 (Senior Management), Permanent Contract 0 0 0 0 0 0 0 1 1 (Professionally qualified), Permanent

DPWRT Annual Report 2014-15.indb 84 2015/08/18 12:45:56 PM Annual Report Occupational Male Female Total band African Coloured Indian White African Coloured Indian White Contract 1 0 0 0 0 0 0 0 1 (Skilled technical), Permanent Contract 1 0 0 0 0 0 0 0 1 (Semi-skilled), Permanent Total 1648 2 1 60 1205 3 1 19 2939 Employees with 0 0 0 0 0 0 0 0 0 disabilities Table 3.6.5 Terminations for the period 1 April 2014 and 31 March 2015 Occupational Male Female Total band African Coloured Indian White African Coloured Indian White Top 0 0 0 0 1 0 0 0 1 Management Senior 3 0 0 0 1 0 0 0 4 Management Professionally 9 0 0 1 3 0 0 0 13 qualified and experienced specialists and mid- management Skilled 17 0 0 2 6 0 0 2 27 technical and academically qualified workers, junior management, supervisors, foremen Semi- 80 0 0 2 38 0 0 0 120 skilled and discretionary decision making Unskilled 6 0 0 0 9 0 0 0 15 and defined decision making Contract 2 0 0 0 0 0 0 0 2 (Senior Management) Contract 2 0 0 0 1 0 0 0 3 (Skilled technical) Contract 2 0 0 0 12 0 0 0 14 (Semi-skilled) Contract 32 0 0 0 43 0 0 0 75 (Unskilled) Total 153 0 0 5 114 0 0 2 274 Employees with 0 0 0 0 0 0 0 0 0 Disabilities Table 3.6.6 Disciplinary action for the period 1 April 2014 and 31 March 2015 Disciplinary Male Female Total action African Coloured Indian White African Coloured Indian White 26 0 0 0 8 0 0 0 34 Table 3.6.7 Skills development for the period 1 April 2014 and 31 March 2015 Occupational Male Female Total category African Coloured Indian White African Coloured Indian White Legislators, 194 2 0 13 210- 0 0 9 428 senior officials and managers

DPWRT Annual Report 2014-15.indb 85 2015/08/18 12:45:56 PM Annual Report Occupational Male Female Total category African Coloured Indian White African Coloured Indian White Professionals 101 0 0 4 38 0 0 4 147 Technicians 275 0 0 16 331 0 0 8 630 and associate professionals Clerks 25 0 0 0 51 0 0 1 77 Service and 57 0 0 2 91 0 0 0 150 sales workers Skilled 71 0 0 1 22 0 0 0 94 agriculture and fishery workers Craft and 140 0 0 2 109 0 0 0 251 related trades workers Plant and 186 0 0 3 21 0 0 0 210 machine operators and assemblers Elementary 298 0 0 1 109 0 0 0 408 occupations Total 1 347 2 0 42 982 0 0 22 2395 Employees 2 0 0 0 0 0 0 0 2 with disabilities 3.7 SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS

All members of the SMS must conclude and sign performance agreements within specific timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here. Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2014 SMS Level Total number of Total number of SMS Total number of Signed performance funded SMS posts members signed performance agreements as % of agreements total number of SMS members Director-General/ 1 1 1 100 HOD Salary Level 16 1 1 0 0 Salary Level 15 1 1 1 100 Salary Level 14 5 5 5 100 Salary Level 13 36 36 36 100 Total 44 44 43 98 Notes • In the event of a National or Provincial election occurring within the first three months of a financial year all members of the SMS must conclude and sign their performance agreements for that financial year within three months following the month in which the elections took place. For example if elections took place in April, the reporting date in the heading of the table above should change to 31 July 2014. Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2015. Reasons Not applicable.

Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2015. Reasons Not applicable.

DPWRT Annual Report 2014-15.indb 86 2015/08/18 12:45:56 PM Annual Report 3.8 PERFORMANCE REWARDS To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations (see definition in notes below). Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2014 and 31 March 2015 Beneficiary Profile Cost Race and Gender Number of Number of % of total within Cost (R’000) Average cost beneficiaries employees group per employee African, Female 897 1 383 64.9 6,184 6,894 African, Male 1366 1 989 68.7 9,771 7,081 Asian, Female 0 1 0 0 0 Asian, Male 0 2 0 0 0 Coloured, Female 2 3 66.7 36 18,148 Coloured, Male 1 3 33.3 10 10,060 Total Blacks, Female 899 1 387 64.8 6,221 6,920 Total Blacks, Male 1 367 1 994 68.6 9,683 7,083 White, Female 20 21 95.2 300 15,017 White, Male 68 82 82.9 859 12,628 Employees with a 58 75 77.3 396 6,823 disability Total 2 412 3 559 67.8 17, 557 7,238 Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2014 and 31 March 2015 Beneficiary Profile Cost Total cost as a Salary band Number of Number of % of total Total Cost Average cost % of the total beneficiaries employees within salary (R’000) per employee personnel bands expenditure Lower skilled 463 776 59.66 1,776 3,836 0.21 (Levels 1-2) Skilled (Levels 1247 1 684 74.05 5,997 4,809 0.71 3-5) Highly skilled 442 651 67.90 4,158 9,407 0.49 production (Levels 6-8) Highly skilled 241 345 69.86 4,878 20,241 0.58 supervision (Levels 9-12) Contract 0 2 0.00 0 0 0.0 (Levels 1-2) Contract 2 13 15.38 12 6,000 0.0014 (Levels 3-5) Contract 2 14 14.29 21 10,500 0.0025 (Levels 6-8) Contract 0 6 0.00 0 0 0.00 (Levels 9-12) Periodical 0 21 0 0 0 0 remuneration Total 2 397 3 512 68.25 16,842 54,793 2.00

Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2014 and 31 March 2015 Critical occupation Beneficiary Profile Cost Number of Number of % of total within Total Cost Average cost beneficiaries employees occupation (R’000) per employee Administrative 123 199 61.8 1,995 16,220 related Agriculture related 0 1 0 0 0 All artisans in the 153 198 77.3 1,236 8,078 building metal machinery etc. Architects town and 3 5 60 107 35,667 traffic planners

DPWRT Annual Report 2014-15.indb 87 2015/08/18 12:45:57 PM Annual Report Critical occupation Beneficiary Profile Cost Number of Number of % of total within Total Cost Average cost beneficiaries employees occupation (R’000) per employee Artisan project 15 19 78.9 212 14,133 and related superintendents Auxiliary and related 21 31 67.7 101 4,810 workers Boiler and related 48 67 71.6 223 4,646 operators Building and other 7 10 70 29 4,143 property caretakers Bus and heavy 12 14 85.7 57 4,750 vehicle drivers Cartographers and 0 1 0 0 0 surveyors Cartographic 7 8 87.5 81 11,571 surveying and related technicians Civil engineering 8 13 61.5 137 17,125 technicians Cleaners in offices 89 146 61 367 4,124 workshops hospitals Client inform 2 3 66.7 12 6,000 clerks(switchb recept inform clerks) Communication and 2 2 100 18 9,000 information related Electrical and 0 1 0 0 0 electronics engineering technicians Engineering sciences 32 43 74.4 663 20,719 related Engineers and 22 34 64.7 717 32,591 related professionals Farm hands and 10 46 21.7 39 3,900 labourers Finance and 13 15 86.7 243 18,692 economics related Financial and related 26 37 70.3 447 17,192 professionals Financial clerks and 114 157 73.1 1,063 9,325 credit controllers General legal 1 0 0 34 34,000 administration & rel. professionals Head of department/ 1 1 100 27 27,000 chief executive officer Human resources & 9 10 90 176 19,556 organisat developm & relate prof Human resources 58 69 84.1 441 7,603 clerks Human resources 26 39 66.7 355 13,654 related Information 5 7 71.4 60 12,000 technology related Inspectors of 9 17 52.9 123 13,667 apprentices works and vehicles Language 1 1 100 9 9,000 practitioners interpreters & other commun Legal related 2 4 50 68 34,000 Library mail and 17 20 85 115 6,765 related clerks

DPWRT Annual Report 2014-15.indb 88 2015/08/18 12:45:57 PM Annual Report Critical occupation Beneficiary Profile Cost Number of Number of % of total within Total Cost Average cost beneficiaries employees occupation (R’000) per employee Light vehicle drivers 15 21 71.4 72 4,800 Logistical support 4 6 66.7 40 10,000 personnel Material-recording 2 7 28.6 14 7,000 and transport clerks Mechanical 2 5 40 33 16,500 engineering technicians Messengers porters 4 4 100 21 5,250 and deliverers Motor vehicle drivers 9 13 69.2 43 4,778 Motorised farm 1 2 50 4 4,000 and forestry plant operators Natural sciences 2 5 40 12 6,000 related Other administrat & 92 139 66.2 737 8,011 related clerks and organisers Other administrative 5 8 62.5 74 14,800 policy and related officers Other occupations 9 13 69.2 109 12,111 Quantity surveyors 5 8 62.5 152 30,400 & rela prof not class elsewhere Rank: Unknown 0 5 0 0 0 Regulatory inspectors 44 122 36.1 430 9,773 Risk management 1 3 33.3 9 9,000 and security services Road superintendents 61 64 95.3 499 8,180 Road trade workers. 7 9 77.8 64 9,143 Road workers 948 1440 65.8 4,140 4,266 Secretaries & other 93 124 75 531 5,710 keyboard operating clerks Security guards 0 2 0 0 0 Senior managers 5 39 12.8 171 34,200 Trade labourers 216 250 86.4 915 4,236 Trade quality 9 11 81.8 105 11,667 controllers Trade related 1 3 33.3 14 14,000 Water plant and 41 38 107.9 213 5,195 related operators Total 2 412 3 559 67.8 17,557 7,239 Notes • Critical occupations are defined as occupations or sub-categories within an occupation- (a) in which there is a scarcity of qualified and experienced persons currently or anticipated in the future, either because such skilled persons are not available or they are available but do not meet the applicable employment criteria; (b) for which persons require advanced knowledge in a specified subject area or science or learning field and such knowledge is acquired by a prolonged course or study and/or specialised instruction; (c) where the inherent nature of the occupation requires consistent exercise of discretion and is predominantly intellectual in nature; and (d) in respect of which a department experiences a high degree of difficulty to recruit or retain the services of employees;

DPWRT Annual Report 2014-15.indb 89 2015/08/18 12:45:57 PM Annual Report Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2014 and 31 March 2015 Beneficiary Profile Cost Total cost as a Salary band Number of Number of % of total within Total Cost Average cost % of the total beneficiaries employees salary bands (R’000) per employee personnel expenditure Band A 11 50 22 390 35,455 52,386 Band B 1 11 9.1 51 51,000 12,855 Band C 3 4 75 175 58,333 6,165 Band D 0 2 0 0 0 0 Total 15 67 22.4 616 41,067 71,406 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 2014 and 31 March 2015 Salary band 01 April 2014 31 March 2015 Change Number % of total Number % of total Number % Change Lower skilled 1 16.7 1 16.7 0 0 (Levels 1-2) Skilled 2 33.3 2 33.3 0 0 (Levels 3-5) Senior 1 16.7 2 16.7 1 50 management (Levels 13-16) Contract 0 0 1 0 1 50 (Levels 13-16) Abnormal 2 33.3 2 33.3 0 0 Appointment Total 6 100 8 100 2 100 Table 3.9.2 Foreign workers by major occupation for the period 1 April 2014 and 31 March 2015 Major 01 April 2014 31 March 2015 Change occupation Number % of total Number % of total Number % Change Drivers 2 33.3 2 25 0 0 operators and ships crew Elementary 3 50 3 37.5 0 0 occupations Professionals 1 16.7 3 37.5 2 100 and managers TOTAL 6 100 8 100 2 100 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 2014 to 31 December 2014 Salary band Total days % Days with Number of % of total Average Estimated Medical Employees employees days per Cost (R’000) certification using sick using sick employee leave leave Lower skilled (Levels 4,199 84.6 515 25.5 8 1,769 1-2) Skilled 7,019 87.2 961 47.6 7 3,719 (Levels 3-5) Highly skilled 2,324 86.7 334 16.5 7 2,400 production (Levels 6-8)

DPWRT Annual Report 2014-15.indb 90 2015/08/18 12:45:57 PM Annual Report Salary band Total days % Days with Number of % of total Average Estimated Medical Employees employees days per Cost (R’000) certification using sick using sick employee leave leave Highly skilled 942 90.1 159 7.9 6 1,785 supervision (Levels 9-12) Senior management 204 92.6 28 1.4 7 708 (Levels 13-16) Contract 56 80.4 18 0.9 3 12 (Levels 1-2) Contract 4 75 1 0 4 3 (Levels 3-5) Contract 4 75 2 0.1 2 4 (Levels 6-8) Contract 6 100 3 0.1 2 28 (Levels 13-16) Total 14,758 86.6 2 021 100 7 10,428 Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2014 to 31 December 2014 Salary band Total days % Days with Number of % of total Average days Estimated Cost Medical Employees employees per employee (R’000) certification using disability using disability leave leave Skilled (Levels 54 100 6 75 9 26 3-5) Highly skilled 13 100 2 25 7 13 production (Levels 6-8) Total 67 100 8 100 8 39 The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service. Table 3.10.3 Annual Leave for the period 1 January 2014 to 31 December 2014 Salary band Total days taken Number of Employees Average per employee using annual leave Lower skilled (Levels 1-2) 16 691.15 791 21 Skilled (Levels 3-5) 44 908.38 1757 26 Highly skilled production 14 031.3 608 23 (Levels 6-8) Highly skilled supervision 7 882 352 22 (Levels 9-12) Senior management 1476 64 23 (Levels 13-16) Contract (Levels 1-2) 525 59 9 Contract (Levels 3-5) 52 5 10 Contract (Levels 6-8) 117 12 10 Contract (Levels 9-12) 55 5 11 Contract (Levels 13-16) 51 5 10 Total 85 788.83 3 658 23 Table 3.10.4 Capped leave for the period 1 January 2014 to 31 December 2014 Salary band Total days of Number of Average number Average capped capped leave taken Employees using of days taken per leave per employee capped leave employee as on 31 December 2014 Lower skilled (Levels 3 1 3 38 1-2) Skilled (Levels 3-5) 169 27 6 74 Highly skilled 10 2 5 83 production (Levels 6-8)

DPWRT Annual Report 2014-15.indb 91 2015/08/18 12:45:57 PM Annual Report Salary band Total days of Number of Average number Average capped capped leave taken Employees using of days taken per leave per employee capped leave employee as on 31 December 2014 Highly skilled 3 1 3 71 supervision (Levels 9-12) Senior management 30 2 15 75 (Levels 13-16) Total 215 33 7 74 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 2014 and 31 March 2015 Reason Total amount (R’000) Number of Average per employees employee (R’000) Leave payout for 2014/15 due to non- 33 1 33 utilisation of leave for the previous cycle Capped leave payouts on termination of 5 757 155 37,142 service for 2014/15 Current leave payout on termination of 222 25 8, 880 service for 2014/15 Total 6 012 181 33, 215 3.11 HIV/AIDS & HEALTH PROMOTION PROGRAMMES Table 3.11.1 Steps taken to reduce the risk of occupational exposure Units/categories of employees identified to be at high Key steps taken to reduce the risk risk of contracting HIV & related diseases (if any) Women, Youth, transport officers, field workers and HIV&AIDS mainstreaming into the core mandate management of the Department, Training of peer educators Condom distribution, HCT, awareness workshops, commemoration of calendar events and campaigns Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information) Question Yes No Details, if yes 1. Has the department designated a Y Mr S.T Lukhele Senior Manager: Employee member of the SMS to implement Health and Wellness the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position. 2. Does the department have a dedicated Y There are 6(six) professional social workers unit or has it designated specific staff and 3 Support staff with a budget of R members to promote the health and 400.000 for HIV&AIDS and TB management well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose. 3. Has the department introduced an Y The focus is on the individual wellness: Employee Assistance or Health Promotion physical( promote good nutrition, Programme for your employees? If so, health diet and weight control) and indicate the key elements/services of psychosocial( economical, intellectual, this Programme. spiritual, emotional and social wellness, organizational wellness and work life balance 4. Has the department established (a) Y In all the Districts there are representatives committee(s) as contemplated in Part of the different cost centres. VI E.5 (e) of Chapter 1 of the Public Ms Monica Mahlangu: Nkangala Service Regulations, 2001? If so, please Ms Smangele Nkosi: Ehlanzeni provide the names of the members of Mr Oupa Nhleko: Gert Sibande the committee and the stakeholder(s) Mr Sam Silinda: Bohlabela that they represent. 5. Has the department reviewed its Y • The HIV and AIDS and TB Management employment policies and practices policy to ensure that these do not unfairly • The Wellness management policy discriminate against employees on • The Sports policy the basis of their HIV status? If so, list the employment policies/practices so reviewed.

DPWRT Annual Report 2014-15.indb 92 2015/08/18 12:45:57 PM Annual Report Question Yes No Details, if yes 6. Has the department introduced measures Y Through the reviewed HIV and AIDS and TB to protect HIV-positive employees or management policy. those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures. 7. Does the department encourage its Y Employees are encouraged to undergo employees to undergo Voluntary HCT during the awareness workshops, Counselling and Testing? If so, list the campaigns and wellness days. The results that you have you achieved. results have been very positive. A lot of employees know their status and doing their best to live healthy life style and adhering to treatment. 8. Has the department developed Y Evaluation of Programmes implemented is measures/indicators to monitor & done on annual basis. evaluate the impact of its health promotion programme? If so, list these measures/indicators.

3.12 LABOUR RELATIONS Table 3.12.1 Collective agreements for the period 1 April 2014 and 31 March 2015 Subject matter Date None. N/A

Notes • If there were no agreements, keep the heading and replace the table with the following: 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 2014 and 31 March 2015 Outcomes of disciplinary hearings Number % of total Correctional counselling 1 2.9 Verbal warning 10 29.4 Written warning 8 23.5 Final written warning 6 17.6 Suspended without pay 2 5.9 Fine 0 0 Demotion 0 0 Dismissal 3 8.8 Not guilty 0 0 Case withdrawn 4 11.7 Total 34 100 Notes • If there were no agreements, keep the heading and replace the table with the following: Total number of Disciplinary hearings finalised None. Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2014 and 31 March 2015 Type of misconduct Number % of total Absenteeism, Forgery, Corruption, Misuse of fire-arm, 8 100 Gross Insubordination & Irregular Expenditure Total 8 100 Table 3.12.4 Grievances logged for the period 1 April 2014 and 31 March 2015 Grievances Number % of Total Number of grievances resolved 406 92.9 Number of grievances not resolved 31 7.1 Total number of grievances lodged 437 100

DPWRT Annual Report 2014-15.indb 93 2015/08/18 12:45:57 PM Annual Report Table 3.12.5 Disputes logged with Councils for the period 1 April 2014 and 31 March 2015 Disputes Number % of Total Number of disputes upheld 0 0 Number of disputes dismissed 2 40 Total number of disputes lodged 2 40 Table 3.12.6 Strike actions for the period 1 April 2014 and 31 March 2015 Total number of persons working days lost N/A Total costs working days lost Amount recovered as a result of no work no pay (R’000) Table 3.12.7 Precautionary suspensions for the period 1 April 2014 and 31 March 2015 Number of people suspended 6 Number of people who’s suspension exceeded 30 days 6 Average number of days suspended 817 Cost of suspension(R’000) 540 405,53 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 2014 and 31 March 2015 Occupational Gender Number of Training needs identified at start of the reporting period category employees as Learnerships Skills Other forms of Total at 1 April 2014 Programmes training & other short courses Legislators, Female 19 0 19 0 19 senior Male 33 0 32 0 32 officials and managers Professionals Female 83 0 41 0 41 Male 132 0 36 0 36 Technicians Female 134 0 62 0 62 and associate Male 142 0 105 0 105 professionals Clerks Female 307 0 55 0 55 Male 214 0 55 0 55 Service and Female 55 0 18 0 18 sales workers Male 82 0 9 0 9 Skilled Female 2 0 4 0 4 agriculture Male 0 0 78 0 78 and fishery workers Craft and Female 59 0 5 0 5 related trades Male 306 0 44 0 44 workers Plant and Female 39 0 27 0 27 machine Male 129 0 30 0 30 operators and assemblers Elementary Female 846 0 174 0 174 occupations Male 1 182 0 666 0 666 Sub Total Female 1 544 19 405 0 424 Male 2 220 31 1 055 0 1 086 Total 3 764 50 1 460 0 1 510

DPWRT Annual Report 2014-15.indb 94 2015/08/18 12:45:57 PM Annual Report Table 3.13.2 Training provided for the period 1 April 2014 and 31 March 2015 Occupational Gender Number of Training provided within the reporting period category employees as Learnerships Skills Other forms of Total at 1 April 2014 Programmes training & other short courses Legislators, Female 19 0 219 0 219 senior Male 33 0 209 0 209 officials and managers Professionals Female 83 0 42 0 42 Male 132 0 105 0 105 Technicians Female 134 0 339 0 339 and associate Male 142 0 293 0 293 professionals Clerks Female 307 0 52 0 52 Male 214 0 25 0 25 Service and Female 55 0 91 0 91 sales workers Male 82 0 59 0 59 Skilled Female 2 0 22 0 22 agriculture Male 0 0 72 0 72 and fishery workers Craft and Female 59 0 109 0 109 related trades Male 306 0 142 0 142 workers Plant and Female 39 0 21 0 21 machine Male 129 0 189 0 189 operators and assemblers Elementary Female 846 0 109 0 109 occupations Male 1 182 0 297 0 297 Sub Total Female 1 544 19 658 0 677 Male 2 220 31 1 391 0 1 422 Total 3 764 50 2 395 0 2 445 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 2014 and 31 March 2015 Nature of injury on duty Number % of total Required basic medical attention only 31 100 Temporary Total Disablement 0 0 Permanent Disablement 0 0 Fatal 0 0 Total 31 100 3.15 UTILISATION OF CONSULTANTS The following tables relates 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: (a) The rendering of expert advice; (b) The drafting of proposals for the execution of specific tasks; and (c) The execution of a specific task which is of a technical or intellectual nature, but excludes an employee of a department.

DPWRT Annual Report 2014-15.indb 95 2015/08/18 12:45:57 PM Annual Report Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2014 and 31 March 2015 Project title Total number of Duration Contract value in consultants that (work days) Rand - R’000 worked on project Programme 2: Public Works Infrastructure Department of Education Projects 1. Middelburg Combined School 4 270 5 982 2. Mathibela High School 4 180 6 290 3. Mugena High School (Additional Project) 4 180 6 002 4. Malibongwe Primary School 4 330 914 5. DD Mabuza Technical School 4 240 1 945 6. Hazyview Combined School 4 240 1 831 7. Highveld Comprehensive Technical School 4 240 1 983 8. Zinikeleni Technical School 4 240 1 831 9. Tsandzanani Primary School 5 180 1 640 10. Panyana Primary School 4 180 1 184 11. Tekwane North High School (Additional 5 150 7 952 Project) 12. Mugena Secondary School 5 60 323 13. Hlomani Secondary School 4 60 323 14. Ezakheni Boarding School Phase 2 6 270 3 796 15. Manyeleti Primary School 4 240 962 16. Sesete Primary School 4 240 706 17. Umlambo Combined School 4 240 942 18. Volksrust Primary School 1 60 1 043 19. Shobiyana Secondary School 4 60 518 Department of Health Projects 1. Themba Hospital (X-rays and Other wards) 4 60 12 440 2. Naas Community Health Centre 5 330 4 700 3. Sabie Hospital 5 60 9 010 4. Piet Retief Hospital 6 120 3 091 5. Sinqobile Community Health Centre 4 150 1 305 6. Impungwe Hospital (bulk sewer, water and 5 390 5 071 Electricity) 7. Naas Community Health Centre - 4 60 372 Renovations to existing structure Department of Social Development 1. Jerusalem Branch Office 4 360 4 263 2. Swartfontein Treatment Center Phase 1 4 360 5 207 3. Glenmore Branch Office 5 360 3 702 Department of Culture, Sport and Recreation 1. Emthonjeni Library 4 300 992 2. Mgobodzi Library 5 180 2 298 3. Klarinet Library 4 360 189 4. Glenmore Library 5 360 7 705 Department of Community Safety, Security and Liaison 1. Mpumalanga Traffic College Phase 2B 4 180 1 412 2. Mpumalanga Traffic College Phase 2C 4 210 42 840 3. Mpumalanga Traffic College Phase 2D 4 150 12 600 Programme 2: Property and Facilities 1. Condition assessment of state owned 1 730 18 931 buildings Programme 3: Transport Infrastructure 1. Design Review: Selective Rehabilitation of 3 126 6 000 Coal Haul Road P26/4 between Ermelo and Breyten (19.5km) 2. Design Review: Rehabilitation of Coal Haul 3 126 4 500 Road P29/1 between Ogies and Kendal (11 km)

DPWRT Annual Report 2014-15.indb 96 2015/08/18 12:45:58 PM Annual Report Project title Total number of Duration Contract value in consultants that (work days) Rand - R’000 worked on project 3. Design: Selective Rehabilitation of Coal 3 126 5 000 Haul Road P30/3 between Tutuka Power Station and Standerton (16.1 km) (km 22.5 - 38.6) 4. Design: Rehabilitation of Road P8/1 3 126 4 000 between Mashishing and Bambi (Phase 1) (15 km) 5. Design: The reconstruction of a flood 3 126 8 474 damaged culvert and drainage structures on Road D2944 near Magogeni, Mpumalanga Province 6. Upgrading of Rural Access Road D2976 4 189 125 952 between Daantijie and Mpakeni (9.3 km) 7. Upgrading of a Rural Access Road 4 252 171 497 D3968 between R40 Junction (near Bushbuckridge) and Merry Pebble (Phase 1) (10 km) 8. Upgrading of Rural Access Road D2908 4 252 82 685 between Pieterskraal and Madubaduba Rd (via Majakaneng) (Near KwaMhlanga (6 km) 9. Upgrade of D2967 (Including 0.5 km 4 252 55 755 Section on Road D2969 and Improvement of a Bridge Structure between Manzini and Mgcobanweni (6.5 km) 10. Upgrading of of a Rural Access Road 4 252 160 454 D3970 Jim Brown - Marite (8.32 km) & Bridge on Marite river 11. Upgrading of a Rural Access Road D545 4 252 87 590 (the Kruisfontein Road) between Dullstroom and Kruisfontein (15km). 12. Upgrading of a Rural Access Road D2908 4 252 32 627 between D2909 Junction (Morwe) and Paved End (near Dikwale) (2.88 km). 13. Rehabilitation of Road D797 between 4 105 147 052 D2940 (Tonga) and R571 Naas (14km) 14. Rehabilitation of Road P95/1 between 4 252 301 978 Limpopo Border and Verena (25.7 km) Phase 1 15. Rehabilitation of road P17/6 (R538) 4 252 185 915 Jerusalem to R40 at Casterbridge, km 20-km 35 (14 km). Also address drainage, pedestrian accommodation and road protection issues on entire road. 16. Rehabilitation of road D3928 between 4 252 89 232 Green Valley and Moloro (6.8 km) (Including Repair of Flood damaged Bridge) 17. Rehabilitation of road D2969 between 4 0 43 243 Manzini and Swalala (6.8 km) 18. Rehabilitation of sections of road P8/1 4 252 145 353 between Mashishing and Bambi (Phase 1) (10 km) 19. Selective rehabilitation of coal haul road 4 42 200 033 P30/3 between Tutuka Power Station and Standerton (16.1 km) (km 22.5-38.6) 20. Rehabilitation of coal haul road P120/1 4 252 266 482 from eMalahleni to D914 (15 km) (km 5.0 - 19.0) 21. Selective rehabilitation of coal haul road 4 42 292 870 P26/4 between Ermelo and Breyten (19.5 km) 22. Rehabilitation of coal haul road P29/1 4 42 170 432 between Ogies and Kendal (10 km) 23. Rehabilitation of road P154/4 between 4 42 120 168 Middelburg and Wonderfontein, from km 12.73 to km 21.73 at D1433 (9 km)

DPWRT Annual Report 2014-15.indb 97 2015/08/18 12:45:58 PM Annual Report Project title Total number of Duration Contract value in consultants that (work days) Rand - R’000 worked on project 24. Rehabilitation of coal haul road P182/1 4 189 215 031 (R542) between P120/1 (van Dyksdrift) and R35 (15km) (Phase 1) 25. Rehabilitation of coal haul road P127/2 4 252 221 361 between Duvha Power Station (D914) and N4 (21 km) 26. Rehabilitation of coal haul road D686 4 42 171 714 from Leeuwfontein past Kendal Power Station over R555 (P95/1) to N12 (14 km) (km 14 - 28) 27. Upgrading of access road between 4 84 110332 Sibange and Masibekela (2 km) and Bridge across Komati River (CRDP) 28. Reconstruction of a flood damaged 4 21 19 378 culvert on road D2973 between Guytswakop and Clau -Clau 29. Reconstruction of a flood damaged bridge 4 168 18 526 on road D2945 between Boschfontein and Gomora 30. Reconstruction of a flood damaged bridge 4 21 28 372 on road D4392 (Near Dumphries) 31. New bridge M6535 (“Bridge 1”) on D622 4 32 90 200 (Eskom designed) (at km 21.4) Programme 4: Transport Operations 1. Construction of Ntunda1 Culvert 2 90 450 2. Construction of Ntunda 2 Culvert 2 90 450 3. Construction of Ronaldsey footbridge 4 240 1,473

Total number of projects Total individual consultants Total duration Total contract value in Rand - Work days R’000 71 282 13473 3764576 3.16 SEVERANCE PACKAGES Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2014 and 31 March 2015 There were no severance packages granted during the year under review.

DPWRT Annual Report 2014-15.indb 98 2015/08/18 12:46:01 PM Annual Report

FINANCIAL PART E INFORMATION

DPWRT Annual Report 2014-15.indb 99 2015/08/18 12:46:03 PM Annual Report REPORT OF THE AUDITOR GENERAL Report of the Auditor-General to the Mpumalanga Provincial Legislature on Vote no. 8 Department of Public Works, Roads and Transport REPORT ON THE FINANCIAL STATEMENTS the overall presentation of the financial statements. Introduction 5. I believe that the audit evidence I have 1. I have audited the financial statements of obtained is sufficient and appropriate to the Department of Public Works, Roads and provide a basis for my audit opinion. Transport set out on pages 103 to 192 which comprise the appropriation statement, Opinion the statement of financial position as at 31 March 2015, the statement of financial 6. In my opinion, the financial statements present performance, statement of changes in net fairly, in all material respects, the financial assets and cash flow statement for the year position of the Department of Public Works, then ended, as well as the notes, comprising Roads and Transport as at 31 March 2015 and a summary of significant accounting policies its financial performance and cash flows for and other explanatory information. the year then ended, in accordance with the Modified Cash Standard as prescribed by the Accounting officer’s responsibility for the financial National Treasury and the requirements of the statements PFMA and DoRA.

2. The accounting officer is responsible for the Emphasis of matter preparation and fair presentation of these financial statements in accordance with 7. I draw attention to the matter below. the modified cash standard prescribed by My opinion is not modified in respect of this national treasury and the requirements of the matter. Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA), and Payables the Division of Revenue Act of South Africa, 2014 (Act No. 10 of 2014) (DoRA), and for 8. Payables that exceed the payment term of 30 such internal control as the accounting days as required in Treasury Regulation 8.2.3 officer determines is necessary to enable the amount to R57 905 000. This amount, in turn, preparation of financial statements that are exceeds the voted funds to be surrendered free from material misstatement, whether due of R430 000 as per the statement of financial to fraud or error. performance by R57 475 000. The amount of R57 475 000 would therefore have constituted Auditor-General’s responsibility unauthorised expenditure had the amounts due been paid in a timely manner. 3. My responsibility is to express an opinion on these financial statements based on my Restatement of corresponding figures audit. I conducted my audit in accordance with International Standards on Auditing. 9. As disclosed in note 18 to the financial Those standards require that I comply with statement, the corresponding figures for 31 ethical requirements, and plan and perform March 2014 have been restated as a result of the audit to obtain reasonable assurance an error discovered during the year ended 31 about whether the financial statements are March 2015 in the financial statements of the free from material misstatement. department at, and for the year ended, 31 March 2014. 4. An audit involves performing procedures to obtain audit evidence about the amounts Report on other legal and regulatory requirements and disclosures in the financial statements. The procedures selected depend on the 10. In accordance with the Public Audit Act of auditor’s judgement, including the assessment South Africa, 2004(Act No.25 of 2004) and of the risks of material misstatement of the the general notice issued in terms thereof, financial statements, whether due to fraud I have a responsibility to report findings on the or error. In making those risk assessments, the reported performance information against auditor considers internal control relevant to predetermined objectives for selected the entity’s preparation and fair presentation programmes presented in the annual of the financial statements in order to design performance report, non-compliance with audit procedures that are appropriate in the legislation as well as internal control. circumstances, but not for the purpose of The objective of my tests was to identify expressing an opinion on the effectiveness reportable findings as described under each of the entity’s internal control. An audit also subheading but not to gather evidence includes evaluating the appropriateness to express assurance on these matters. of accounting policies used and the Accordingly, I do not express an opinion or reasonableness of accounting estimates conclusion on these matters. made by management, as well as evaluating 100

DPWRT Annual Report 2014-15.indb 100 2015/08/18 12:46:03 PM Annual Report Predetermined objectives the reliability of the reported performance information for the selected programmes 11. I performed procedures to obtain evidence reported in paragraph 16 of this report. about the usefulness and reliability of the reported performance information for the Compliance with legislation following selected programmes presented in the annual performance report of the 19. I performed procedures to obtain evidence department for the year ended 31 March 2015: that the department had complied with • Programme 2: Public Works on pages 26 applicable legislation regarding financial to 29 matters, financial management and other • Programme 3: Transport Infrastructure on related matters. My findings on material pages 29 to 31 non-compliance with specific matters in key • Programme 4: Transport Operations on legislation, as set out in the general notice pages 32 to 34 issued in terms of the PAA, are as follows: • Programme 5: Community Based Programmes on pages 34 to 36 Annual Financial Statements, performance and Annual Report 12. I evaluated the reported performance information against the overall criteria of 20. The financial statements submitted for auditing usefulness and reliability. were not prepared in accordance with the prescribed financial reporting framework 13. I evaluated the usefulness of the reported as required by section 40(1) (b) of the performance information to determine Public Finance Management Act. Material whether it was presented in accordance misstatements of disclosure items identified with the National Treasury’s annual reporting by the auditors in the submitted financial principles and whether the reported statement were subsequently corrected, performance was consistent with the resulting in the financial statements receiving planned programmes. I further performed an unqualified audit opinion. tests to determine whether indicators and targets were well defined, verifiable, specific, Internal audit measurable, time bound and relevant, as required by the National Treasury’s Framework 21. The internal audit function did not submit for managing programme performance reports, detailing the performance against information (FMPPI). the annual internal audit plan, to the audit committee every quarter, as required by 14. I assessed the reliability of the reported Treasury Regulation 3.2.7(d). performance information to determine whether it was valid, accurate and complete. 22. The internal audit function did not assess the operational procedure and monitoring 15. The material findings in respect of the selected mechanisms over all transfers made and programmes are as follows: received, including transfers in terms of the annual Division of Revenue Act, as required Programme 5: Community Based Programmes by Treasury Regulation 3.2.8. Reliability of reported performance information Procurement and contract management

16. The FMPPI requires auditees to have 23. Goods and services of a transaction value appropriate systems to collect, collate, above R500 000 were procured without verify and store performance information inviting competitive bids, as required by to ensure valid, accurate and complete Treasury Regulations 16A6.1. reporting of actual achievements against planned objectives, indicators and targets. 24. Persons in service of the department whose Adequate and reliable corroborating close family members, partners or associates evidence could not be provided for 37% had a private or business interest in contracts of the targets, to assess the reliability of the awarded by the department failed to reported performance information. This was disclose such interest, as required by Treasury because the department could not provide Regulation 16A8.4. sufficient appropriate evidence in support of the reported performance. Expenditure management Additional matter 25. Effective steps were not taken to prevent irregular expenditure, as required by section 17. I draw attention to the following matter: 38(1)(c)(ii) of the Public Finance Management Act and Treasury Regulation 9.1.1. Achievement of planned targets Consequence management 18. Refer to the annual performance report on pages 24 to 36 for information on the 26. Effective and appropriate disciplinary steps achievement of the planned targets for the were not taken against officials who made year. This information should be considered and/or permitted irregular expenditure as in the context of the material findings on required by section 38(1)(h)(iii) of the Public 101

DPWRT Annual Report 2014-15.indb 101 2015/08/18 12:46:03 PM Annual Report Finance Management Act and Treasury Financial and performance management Regulation 9.1.3. 32. The department did not have a proper record 27. Allegations of improper conduct and failure to management to maintain information that comply with the supply chain management supported the reported performance in the system against officials and role player in annual performance report. This included the supply chain management system were information that related to the collection, not investigated, as required by Treasury collation, verification, storing and reporting of Regulation 16A9.1(b). actual performance information. Internal control 33. The financial statements contained a material misstatement that were corrected. 28. I considered internal control relevant to my audit of the financial statements, annual 34. Non-compliance with laws and regulations performance report and compliance with could have been prevented had compliance legislation. The matters reported below are been properly reviewed and monitored. limited to the significant internal control deficiencies that resulted in the findings on the Governance annual performance report and the findings on compliance with legislation included in this 35. The internal audit function did not conduct all report. of the planned audits or reviews of information systems. Leadership Other reports 29. Management established a formal code of conduct that addressed appropriate ethical Investigations and moral behaviour, but staff was not trained to properly understand the code and 36. South African Police Service (SAPS) is implement it. investigating the unauthorised change of bank details for one of the department’s 30. The department did not effectively address suppliers by officials who allegedly irregularly and monitor the controls in place to timeously transferred money to private bank accounts. address issues raised by internal as well The investigation is still in progress and the external auditors. date when it will be concluded has not yet been communicated. 31. Key positions in financial and performance management were vacant for more than 12 months.

Mbombela 31 July 2015

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DPWRT Annual Report 2014-15.indb 102 2015/08/18 12:46:04 PM Annual Report

MPUMALANGA PROVINCIAL GOVERNMENT Department of Public Works, Roads and Transport Vote No. 08 ANNUAL FINANCIAL STATEMENTS 2014/15 FINANCIAL YEAR

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DPWRT Annual Report 2014-15.indb 103 2015/08/18 12:46:05 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Annual Financial Statements for the year ended 31 March 2015

TABLE OF CONTENTS

Appropriation Statement 105

Notes to the Appropriation Statement 148

Statement of Financial Performance 149

Statement of Financial Position 150

Statement of Changes in Net Assets 151

Cash Flow Statement 152

Notes to the Annual Financial Statements (including Accounting policies) 153

Annexures 177

104

DPWRT Annual Report 2014-15.indb 104 2015/08/18 12:46:05 PM Annual Report 1,735 1,735 R’000 67,600 Actual 218,806 592,511 2,048,655 1,017,846 3,947,153 3,945,418 Expenditure 2013/14 tion Final 1,735 1,735 R’000 68,170 218,806 592,522 2,049,131 1,017,846 3,948,210 3,946,475 Appropria -

% 99.9% 99.9% 99.9% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% as % of priation final appro - Expenditure - - - 1 1 2 426 430 430 R’000 Variance 1,813 1,813 R’000 59,366 Actual 225,592 590,618 993,908 2,369,864 4,241,161 4,239,348 Expenditure tion Final 1.813 1,813 R’000 59,367 590,620 225,593 994,334 2,369,864 4,241,591 4,239,778 Appropria - - 109 (109) (109) 2,768 R’000 (6,440) 113,250 (36,079) (73,390) Mpumalanga Province Appropriation Statement Virement Appropriation per programme 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of 1,922 1,922 R’000 56,599 232,033 626,699 2,256,614 1,067,724 4,241,591 4,239,669 propriation Adjusted Ap - Adjusted perations frastructure Members’ remuneration Statutory Appropriation Subtotal Administration Public Works Infrastructure Transport In Transport O Community Based

Total 1. 2. 3. 4. 5. Programmes Programme

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DPWRT Annual Report 2014-15.indb 105 2015/08/18 12:46:05 PM Annual Report R’000 Actual 3,947,153 3,947,153 Expenditure 2013/14 Final R’000 23,970 3948,210 3,972,180 Appropriation 2014/15 R’000 Actual 4,241,161 4,241,161 Expenditure Final 2,535 R’000 4241,591 4,244,126 Appropriation Mpumalanga Province Appropriation Statement for the year ended 31 March 2015

Department of Public Works, Roads and Transport TOTAL (brought forward) Reconciliation with statement of financial performance ADD Departmental receipts NRF Receipts Aid assistance revenue) (total performance financial of statement per amounts Actual ADD Aid assistance Prior year unauthorised expenditure approved without funding Actual amounts expenditure) per statement of financial performance (total

106

DPWRT Annual Report 2014-15.indb 106 2015/08/18 12:46:06 PM Annual Report 465 163 9,955 2,667 3,668 9,840 4,109 R’000 41,795 59,688 80,406 16,113 16,462 Actual 227,263 119,468 685,366 804,834 1,247,599 2,052,433 expenditure 50 2013/14 tion Final 8,875 7,441 3,476 4,202 3,785 R’000 40,222 47,431 82,099 14,656 19,188 11,142 268,074 124,957 679,878 804,835 1,284,754 2,089,589 Appropria - - % tion 99.9% 83.1% 99.3% 94.7% 99.9% 95.9% 95.4% 83.6% 103.3% 121.9% 100.9% 106.3% 119.2% 103.0% 100.3% 100.0% 100.2% appropria - as % of final Expenditure 7 4 308 914 778 196 (85) (103) (208) (720) 1,425 1,068 R’000 25,223 (1,064) (3,850) (4,134) (4,130) (19,594) Variance 208 8,963 7,002 3,198 4,462 1,002 2,949 R’000 43,179 64,921 21,237 16,172 Actual 109,007 453,162 122,156 717,061 839,217 1,414,320 2,253,537 Expenditure - tion Final 8,970 8,427 3,095 3,742 1,198 2,864 R’000 43,487 89,413 61,071 22,151 16,950 478,385 121,092 718,129 839,221 1,410,186 2,249,407 Appropria - - - (889) (358) (347) (130) (281) (984) 2,104 R’000 39,421 (3,535) (4,661) (1,775) (19,830) (14,136) (78,653) (23,365) Mpumalanga Province Virement (102,018) Appropriation Statement 2014/15 ------for the year ended 31 March 2015 ------R’000 Funds Shifting of Department of Public Works, Roads and Transport - tion 8,970 9,316 3,453 3,872 1,479 3,848 R’000 41,383 49,992 75,207 26,812 18,725 478,732 124,627 737,959 862,586 Adjusted 1,488,839 2,351,425 Appropria - - - Audit costs: External Minor assets Advertising Administrative fees Fleet services Agency and support / out sourced services Contractors Social contributions Legal services Salaries and wages Infrastructure and plan ning services Computer services Consultants: Business and advisory services Communication Catering: Departmental activities Goods and services Compensation of employees Economic classification Current payments Appropriation per economic classification

107

DPWRT Annual Report 2014-15.indb 107 2015/08/18 12:46:06 PM Annual Report - - 7,372 3,604 2,104 5,852 2,300 R’000 88,883 30,557 61,048 56,792 29,516 59,972 Actual 140,106 140,106 427,005 469,961 469,961 621,689 140,106 expenditure - 2 2013/14 tion Final 9,039 3,209 2,175 2,675 1,082 R’000 87,707 31,630 55,710 36,508 31,710 54,643 140,106 140,106 458,023 469,961 469,961 621,689 140,106 Appropria - - - % tion 97.1% 98.1% 97,2% 75.2% 80.7% 59.5% 99.9% 99.9% 99.9% 101.3% 100.0% 119.1% 100.0% 106.9% 102.6% 149.1% 102.0% 100.0% appropria - as % of final Expenditure - - - - (1) 543 389 235 426 426 426 (95) (789) 2,229 1,812 5,456 R’000 (7,048) (1,743) (2,554) (6,859) Variance - 1 345 5,508 7,752 1,468 R’000 74,751 27,854 13,389 62,024 43,991 22,797 67,616 Actual 351,362 111,131 111,131 514,095 514,095 642,975 111,131 Expenditure - - 580 tion Final 7,320 5,198 1,373 R’000 76,980 28,397 13,778 61,235 36,943 28,253 65,873 344,503 111,131 111,131 514,521 514,521 111,131 643,401 Appropria - - - - 349 (81) (923) 1,856 1,690 2,256 2,256 1,154 R’000 (4,333) (1,598) (1,202) (7,067) (7,067) (2,927) (7,067) (59,302) (30,146) Mpumalanga Province Virement Appropriation Statement 2014/15 ------for the year ended 31 March 2015 ------R’000 Funds Shifting of Department of Public Works, Roads and Transport - - tion 7,320 3,342 1,503 1,024 R’000 32,730 15,376 62,437 37,024 31,180 64,183 403,805 107,126 118,198 118,198 512,265 512,265 118,198 642,247 Adjusted Appropria - - - - Municipal bank ac - counts Transport provided: De partmental activity Property payments Operating leases Private enterprises Consumable: Stationery, printing and office supplies Consumable supplies Inventory: Fuel, oil and gas Inventory: Materials and supplies Municipalities Inventory: Farming supplies Operating payments Venues and facilities Rental and hiring Inventory: Clothing mate rial and supplies Training and development Travel and subsistence Public corporations and pri vate enterprises Provinces and municipalities Transfers and subsidies

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DPWRT Annual Report 2014-15.indb 108 2015/08/18 12:46:06 PM Annual Report - 7,757 3,865 1,013 1,790 R’000 42,086 44,193 11,622 86,279 Actual 469,961 1,183,949 1,183,949 3,947,153 1,271,241 expenditure - 2013/14 tion Final 5,064 6,558 1,013 1,297 1,790 R’000 48,883 11,622 50,180 469,961 1,183,949 1,183,949 3,948,210 1,235,142 Appropria - - % tion 99.3% 99.9% 89.7% 99.9% 99.7% 91.0% 100.0% 118.6% 100.6% 100.1% 100.1% 100.0% 100.0% appropria - as % of final Expenditure - - - - (7) 250 426 430 (250) 5,950 5,943 4,134 R’000 (1,809) (1,809) Variance - 8,319 9,430 8,461 1,091 R’000 11,535 51,755 60,216 17,749 Actual 514,095 1,271,807 1,283,342 4,241,161 1,343,558 Expenditure - tion Final 9,726 8,569 9,180 8,454 1,091 R’000 57,705 66,159 17,749 514,521 1,271,807 1,281,533 4,241,591 1,347,692 Appropria - - - 12 9,300 5,923 2,256 1,091 5,965 R’000 99,773 (8,287) 113,679 122,979 (14,919) (23,206) Mpumalanga Province Virement Appropriation Statement 2014/15 ------for the year ended 31 March 2015 ------R’000 Funds Shifting of Department of Public Works, Roads and Transport - - 426 tion 2,616 9,168 R’000 23,373 65,992 89,365 11,784 512,265 Adjusted 1,158,128 1,158,554 4,241,591 1,247,919 Appropria - - - Other transfers to pri vate enterprises Buildings Other fixed structures Social benefits Other transfers to house holds Other machinery and equipment Transport equipment Machinery and equipment Buildings and other fixed structures Households Heritage assets Total Payments for capital assets Payments for financial assets

109

DPWRT Annual Report 2014-15.indb 109 2015/08/18 12:46:06 PM Annual Report - 1,735 1,735 1,735 R’000 Actual expenditure - 2013/14 tion Final 1,735 1,735 1,735 R’000 Appropria - - % tion 100.0% 100.0% 100.0% appropria - as % of final Expenditure - - - - R’000 Variance - 1,813 1,813 1,813 R’000 Actual Expenditure - tion Final 1,813 1,813 1,813 R’000 Appropria - - (109) (109) (109) R’000 Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 - - - - R’000 Statutory Appropriation per economic classification Funds Department of Public Works, Roads and Transport Shifting of - tion 1,922 1,922 1,922 R’000 Adjusted Appropria - Goods and services Interest and rent on land Compensation of employees Economic classification Current payments Payments for financial assets Total

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DPWRT Annual Report 2014-15.indb 110 2015/08/18 12:46:06 PM Annual Report 22 615 145 5,905 4,546 1,047 9,955 1,856 1,758 1,367 R’000 19,473 68,340 Actual 208,355 126,703 218,806 214,516 146,176 expenditure - 2013/14 421 271 tion Final 5,905 4,546 2,160 8,875 2,448 1,831 1,890 R’000 18,888 68,340 208,355 127,288 218,806 214,516 146,176 Appropria - - % tion 96.4% 82.6% 99.8% 99.9% 11.5% 65.7% 65.5% 100.0% 100.0% 100.0% 100.0% 111.6% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure - - - - - 1 7 1 28 32 192 369 707 651 (32) (208) (233) R’000 Variance 48 756 911 208 4,437 3,950 2,245 1,357 8,963 1,234 R’000 19,373 70,903 Actual 217,205 130,529 225,592 220,805 149,902 Expenditure - 784 417 tion Final 1,103 4,438 3,950 2,012 2,064 8,970 1,885 R’000 19,405 70,903 217,205 130,497 225,593 220,805 149,902 Appropria - - - - 66 (3) (251) (188) (515) (296) 1,074 1,140 R’000 (2,244) (1,717) (2,479) (6,440) (6,583) (7,723) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - 784 605 tion 6,682 5,667 2,579 8,970 2,015 2,181 1,354 R’000 19,339 78,626 219,684 129,423 232,033 227,388 148,762 Adjusted Appropria - - Consultants: Business and advisory services Salaries and wages Catering: Departmental activities Audit costs: External Administrative fees Advertising Minor assets Social contributions Communication Computer services Office of the MEC Management of the De Corporate Support partment

Compensation of employees Goods and services Total for sub programmes 1. 2. 3. Programme 1: Administration Economic classification Current payments Sub programme

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DPWRT Annual Report 2014-15.indb 111 2015/08/18 12:46:06 PM Annual Report - - - 8 64 385 327 452 333 970 (773) 4,528 2,471 8,704 3,258 1,864 R’000 18,300 10,684 Actual expenditure - - 2 20 18 50 2013/14 807 447 566 422 456 tion Final 4,863 2,116 6,475 2,950 1,094 9,181 R’000 20,977 Appropria ------% tion 97.7% 78.6% 89.8% 37.5% 91.7% 70.0% 42.9% 99.4% 180.1% 122.4% 216.6% 105.4% 480.5% appropria - as % of final Expenditure - - - - 22 10 53 (2) 307 543 125 205 (900) (111) (720) 1,830 R’000 (1,140) (1,735) Variance - - - - 6 39 111 193 292 154 2,024 2,000 3,930 2,118 8,926 2,191 R’000 12,950 20,247 Actual Expenditure - - - - - 16 37 215 417 359 978 456 tion Final 2,543 3,210 8,979 1,124 R’000 13,257 22,077 Appropria ------1 (34) (962) (787) (168) (142) (892) (116) R’000 (3,370) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - - - - - 16 37 451 214 527 456 tion 3,330 3,210 1,120 9,871 1,240 R’000 14,219 25,447 Adjusted Appropria ------Consumable: Stationery, printing and office sup plies Operating leases Property payments Transport provided: De partmental activity Travel and subsistence Legal services Agency and support / outsourced services Operating payments ment Training and develop Contractors Fleet services Rental and hiring Venues and facilities Inventory: Farming sup plies Inventory: Clothing mate rial and supplies Consumable supplies Inventory: Fuel, oil and gas Inventory: Materials and supplies

112

DPWRT Annual Report 2014-15.indb 112 2015/08/18 12:46:07 PM Annual Report - - - - 62 59 62 508 858 917 917 508 1,013 1,790 1,583 R’000 Actual 218,806 expenditure - - - - - 62 62 2013/14 508 917 917 917 508 tion Final 1,013 1,790 1,583 R’000 218,806 Appropria ------% tion 99.9% 91.7% 99.9% 99.9% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------1 1 1 1 1 (1) R’000 Variance ------11 1,458 2,227 1,458 2,238 1,091 2,238 1,458 R’000 Actual 225,592 Expenditure ------12 tion Final 1,459 2,226 1,459 2,238 1,091 2,238 1,459 R’000 225,593 Appropria ------12 388 400 400 1,091 R’000 (1,348) (1,348) (6,440) (1,348) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------tion 2,807 1,838 2,807 1,838 1,838 2,807 R’000 232,033 Adjusted Appropria - - - Other fixed structures Transport equipment Other machinery and equipment Other transfers to house holds Social benefits Buildings Machinery and equipment Heritage assets Transfers and subsidies Payments for financial assets Provinces and municipalities Public corporations and pri vate enterprises Households Payments for capital assets Buildings and other fixed structures Total

113

DPWRT Annual Report 2014-15.indb 113 2015/08/18 12:46:07 PM Annual Report - - - - - 7 7 30 30 2,038 3,830 5,868 5,905 R’000 Actual expenditure - - - - - 7 7 30 30 2013/14 tion Final 2,038 3,830 5,868 5,905 R’000 Appropria ------% tion 98.4% 98.4% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------1 1 1 R’000 Variance ------60 60 1,325 3,052 4,377 4,437 R’000 Actual Expenditure ------61 61 tion Final 1,325 3,052 4,377 4,438 R’000 Appropria ------(14) (14) R’000 (1,227) (1,003) (2,230) (2,244) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------75 75 tion 2,552 4,055 6,607 6,682 R’000 Adjusted Appropria - - Machinery and equipment Heritage assets Goods and services Compensation of employees Provinces and municipalities Public corporations and pri vate enterprises Households Buildings and other fixed structures 1.1 Office of the MEC Economic classification Payments for financial assets Current payments Total Transfers and subsidies Payments for capital assets

114

DPWRT Annual Report 2014-15.indb 114 2015/08/18 12:46:07 PM Annual Report ------32 32 3,168 1,346 4,546 4,514 R’000 Actual expenditure ------32 32 2013/14 tion Final 3,168 1,346 4,546 4,514 R’000 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance ------595 3,355 3,950 3,950 R’000 Actual Expenditure ------595 tion Final 3,355 3,950 3,950 R’000 Appropria ------(875) (742) (100) (100) R’000 (1,717) (1,617) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------100 100 tion 1,470 4,097 5,667 5,567 R’000 Adjusted Appropria - - Heritage assets Goods and services Compensation of employees Provinces and municipalities Public corporations and pri vate enterprises Households Buildings and other fixed structures Machinery and equipment 1.2 Management of the Department Payments for financial assets Total Economic classification Current payments Transfers and subsidies Payments for capital assets

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DPWRT Annual Report 2014-15.indb 115 2015/08/18 12:46:07 PM Annual Report - - - - 508 910 1,013 1,790 1,521 R’000 64,956 Actual 139,178 208,355 204,134 expenditure - - - - 2013/14 508 910 tion Final 1,013 1,790 1,521 R’000 64,956 139,178 208,355 204,134 Appropria - - - - - % tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance - - - - 1,398 2,238 1,091 2,238 1,398 R’000 68,983 Actual 143,495 217,205 212,478 Expenditure - - - - tion Final 1,398 2,238 1,091 2,238 1,398 R’000 68,983 143,495 217,205 212,478 Appropria - - - - - 400 400 2,885 1,091 R’000 (1,234) (5,621) (2,479) (2,736) (1,234) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - - - - - tion 2,632 1,838 1,838 2,632 R’000 74,604 140,610 219,684 215,214 Adjusted Appropria - - Heritage assets Machinery and equipment Compensation of employees Goods and services Provinces and municipalities Public corporations and pri vate enterprises Buildings and other fixed structures Households 1.3 Corporate Support Payments for financial assets Total Economic classification Current payments Transfers and subsidies Payments for capital assets

116

DPWRT Annual Report 2014-15.indb 116 2015/08/18 12:46:07 PM Annual Report - 18 317 363 256 2,948 R’000 16,258 18,954 15,243 32,689 Actual 205763 539,108 202,739 592,511 441,191 235,428 expenditure - 50 2013/14 317 845 249 tion Final 2,948 R’000 16,258 18,954 15,243 33,752 539,119 201,676 592,522 441,202 235,428 205,774 Appropria - - - % tion 96.6% 99.6% 99.1% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.9% 100.0% 100.0% appropria - as % of final Expenditure ------1 1 1 2 1 11 (1) 1,811 1,810 R’000 Variance - - 65 315 108 3,100 R’000 16,505 24,074 13,251 34,402 Actual 533,688 218,676 590,618 461,812 253,078 208,734 Expenditure - - 65 326 107 tion Final 3,101 R’000 16,505 24,074 13,251 34,402 533,689 218,677 590,620 463,623 253,079 210,544 Appropria - - - (85) (320) (127) 1,162 R’000 (1,272) (1,107) (6,807) (1,011) (1,243) (1,328) (28,055) Mpumalanga Province (36,079) (39,317) (37,989) Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - - 385 234 tion 4,373 1,337 R’000 15,343 25,181 20,058 34,487 561,744 219,920 626,699 502,940 254,407 248,533 Adjusted Appropria - Minor assets Audit costs: External Salaries and wages Social contributions Advertising Administrative fees Catering: Departmental activities Programme Support Design Public Works Construction Public Works Maintenance Public Works Property Management

Compensation of employees Goods and services Total for sub programmes Programme 2: Public Works Infrastructure 1. 2. 3. 4. 5. Economic classification Current payments Sub programme

117

DPWRT Annual Report 2014-15.indb 117 2015/08/18 12:46:07 PM Annual Report - - - 5 432 813 410 101 1,293 1,605 1,380 8,797 3,910 1,591 R’000 45,840 25,750 80,123 13,936 18,893 Actual expenditure - 5 55 2013/14 530 113 140 721 106 tion Final 1,357 1,252 1,365 9,430 4,967 2,150 R’000 42,667 27,214 81,205 15,948 15,043 Appropria - - - - - % tion 98.0% 97.2% 98.8% 100.0% 100.6% 100.8% 100.0% 100.0% 100.0% 100.0% 100.1% 101.2% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------1 3 92 (2) (4) (24) (26) (404) 2,164 R’000 Variance - - - - 48 342 459 234 532 138 2,273 7,529 1,234 7,572 R’000 50,488 25,854 74,636 13,957 22,950 Actual Expenditure - - - - 49 340 459 234 532 138 tion Final 2,247 7,621 1,234 7,575 R’000 50,084 25,854 76,800 13,953 22,926 Appropria - - - - (2) 349 (30) (102) (894) (163) (130) (146) (249) 5,516 1,521 R’000 (3,546) (1,051) (2,122) (5,297) (30,146) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - - - 51 30 442 397 726 110 662 tion 7,767 1,483 2,260 R’000 50,978 29,400 15,004 17,410 12,872 106,946 Adjusted Appropria ------Inventory: Fuel, oil and gas Inventory: Materials and supplies Consumable supplies Consumable: Stationery, printing and office sup plies Operating leases Property payments Transport provided: De partmental activity Communication Travel and subsistence Computer services Contractors ment Training and develop Operating payments Fleet services Inventory: Clothing mate rial and supplies Agency and support / outsourced services Consultants: Business and advisory services Infrastructure and plan ning services Legal services

118

DPWRT Annual Report 2014-15.indb 118 2015/08/18 12:46:07 PM Annual Report ------2,933 6,050 2,171 8,221 6,050 2,171 2,933 R’000 Actual 140,106 140,106 143,099 140,106 592,511 expenditure ------45 2013/14 tion Final 2,993 6,050 2,171 8,221 6,050 2,171 2,993 R’000 140,106 140,106 143,099 140,106 592,522 Appropria ------% tion 118.6% 100.0% 100.0% 100.0% 100.0% 113.2% 118.6% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------2 R’000 (1,809) (1,809) (1,809) Variance ------4,007 2,133 4,007 2,133 R’000 11,535 15,542 11,535 Actual 111,131 111,131 113,264 111,131 590,618 Expenditure ------tion Final 9,726 4,007 2,133 9,726 4,007 2,133 R’000 13,733 111,131 111,131 113,264 111,131 590,620 Appropria ------(39) (350) (350) 9,300 1,355 8,950 9,300 1,355 R’000 (7067) (7,067) (5,712) (7,067) Mpumalanga Province (36,079) Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------39 426 778 426 778 tion 4,357 4,783 4,357 R’000 118,198 118,198 118,976 118,198 626,699 Adjusted Appropria - - - Municipal bank ac - counts Other transfers to house holds Venues and facilities Buildings Other fixed structures Rental and hiring Transport equipment Other machinery and equipment Municipalities Social benefits Buildings and other fixed structures Machinery and equipment Provinces and municipalities Public corporations and pri vate enterprises Households Payments for capital assets Transfers and subsidies Payments for financial assets Total

119

DPWRT Annual Report 2014-15.indb 119 2015/08/18 12:46:07 PM Annual Report ------513 2,435 2,948 2,948 R’000 Actual expenditure ------2013/14 513 tion Final 2,435 2,948 2,948 R’000 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------1 1 1 R’000 Variance ------20 20 402 2,678 3,080 3,100 R’000 Actual Expenditure ------20 20 402 tion Final 2,679 3,081 3,101 R’000 Appropria ------(59) (59) (593) (620) R’000 (1,213) (1,272) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------79 79 995 tion 3,299 4,294 4,373 R’000 Adjusted Appropria - - Machinery and equipment Heritage assets Goods and services Provinces and municipalities Compensation of employees Public corporations and pri vate enterprises Households Buildings and other fixed structures 2.1 Programme Support Economic classification Payments for financial assets Transfers and subsidies Current payments Total Payments for capital assets

120

DPWRT Annual Report 2014-15.indb 120 2015/08/18 12:46:08 PM Annual Report - - - - - 17 45 45 17 2,288 R’000 13,908 16,258 16,196 Actual expenditure - - - - - 17 45 45 17 2013/14 tion Final 2,288 R’000 13,908 16,258 16.196 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance ------107 107 2,394 R’000 14,004 16,505 16,398 Actual Expenditure ------107 107 tion Final 2,394 R’000 14,004 16,505 16,398 Appropria ------62 62 324 776 1,162 1,100 R’000 Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------45 45 tion 2,070 R’000 13,228 15,343 15,298 Adjusted Appropria - - Heritage assets Machinery and equipment Provinces and municipalities Goods and services Public corporations and pri vate enterprises Compensation of employees Households Buildings and other fixed structures 2.2 Design Public Works Payments for financial assets Total Transfers and subsidies Economic classification Current payments Payments for capital assets

121

DPWRT Annual Report 2014-15.indb 121 2015/08/18 12:46:08 PM Annual Report - - - - - 59 59 142 142 3,564 R’000 15,189 18,954 18,753 Actual expenditure - - - - - 59 59 2013/14 142 142 tion Final 3,564 R’000 15,189 18,954 18,753 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance - - - - - 20 20 260 260 7,203 R’000 16,591 24,074 23,794 Actual Expenditure - - - - - 20 20 260 260 tion Final 7,203 R’000 16,591 24,074 23,794 Appropria ------98 20 20 (211) (916) (211) R’000 (1,014) (1,107) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------471 471 tion 8,217 R’000 16,493 25,181 24,710 Adjusted Appropria - - Heritage assets Machinery and equipment Goods and services Provinces and municipalities Compensation of employees Public corporations and pri vate enterprises Households Buildings and other fixed structures 2.3 Construction Public Works Payments for financial assets Total Economic classification Current payments Transfers and subsidies Payments for capital assets

122

DPWRT Annual Report 2014-15.indb 122 2015/08/18 12:46:08 PM Annual Report ------22 22 2,183 R’000 13,038 15,243 15,221 Actual expenditure ------22 22 2013/14 tion Final 2,183 R’000 13,038 15,243 15,221 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance ------43 43 2,298 R’000 10,910 13,251 13,208 Actual Expenditure ------43 43 tion Final 2,298 R’000 10,910 13,251 13,208 Appropria ------(62) (62) R’000 (3,486) (3,259) (6,807) (6,745) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------105 105 tion 5,557 R’000 14,396 20,058 19,953 Adjusted Appropria - - Heritage assets Machinery and equipment Goods and services Compensation of employees Provinces and municipalities Public corporations and pri vate enterprises Households Buildings and other fixed structures 2.4 Maintenance Public Works Payments for financial assets Economic classification Total Current payments Transfers and subsidies Payments for capital assets

123

DPWRT Annual Report 2014-15.indb 123 2015/08/18 12:46:08 PM Annual Report - - - 6,050 2,012 2,867 8,062 R’000 Actual 201,713 186,360 140,106 539,108 388,073 142,973 expenditure - - - 2013/14 tion Final 6,050 2,012 2,867 8,062 R’000 201,713 186,371 140,106 539,119 388,084 142,973 Appropria - - - - % tion 99.0% 99.6% 118.6% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 113.6% appropria - as % of final Expenditure ------1 1,810 1,810 R’000 (1,809) (1,809) Variance - - - 3,577 2,113 R’000 11,535 15,112 Actual 217,507 187,825 111,131 533,688 405,332 113,244 Expenditure - - - tion Final 3,577 9,726 2,113 R’000 13,303 189,635 217,507 111,131 533,689 407,142 113,244 Appropria - - - - (80) 1,677 9,300 1,335 9,220 R’000 (7,067) (5,732) (33,220) Mpumalanga Province (28,055) (31,543) Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - - - 426 778 tion 3,657 4,083 R’000 222,855 215,830 118,198 561,744 438,685 118,976 Adjusted Appropria - - Machinery and equipment Heritage assets Goods and services Compensation of employees Public corporations and pri vate enterprises Provinces and municipalities Buildings and other fixed structures Households 2.5 Property Management Payments for financial assets Total Economic classification Current payments Transfers and subsidies Payments for capital assets

124

DPWRT Annual Report 2014-15.indb 124 2015/08/18 12:46:08 PM Annual Report - - 42 254 2,124 1,595 R’000 60,944 33,008 57,982 Actual 881,548 294,269 836,557 352,251 484,306 1,071,031 2,048,655 expenditure - - 2013/14 125 300 tion Final 2,124 1,049 R’000 60,944 33,008 63,021 882,024 289,230 837,032 352,251 484,781 1,071,031 2,049,131 Appropria - - - - % tion 4.8% 99.6% 100.0% 100.0% 100.0% 100.0% 100.0% 101.9% 268.5% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------130 (792) 1,095 1,074 R’000 (1,095) Variance - - - 54 1,410 1,262 R’000 64,596 19,170 58,395 Actual 297,778 356,173 732,722 1,275,798 1,008,890 2,369,864 1.088,895 Expenditure - - 470 130 tion Final 1128 1,410 R’000 64,596 19,170 57,300 298,873 356,173 732,722 1,275,798 1,008,890 2,369,864 1,088,895 Appropria - - - - (86) (228) (100) 3,860 7,776 R’000 17,343 30,293 (3,630) 108,826 113,250 (16,551) (18,887) (22,517) Mpumalanga Province Virement Appropriation Statement 2014/15 ------for the year ended 31 March 2015 R’000 Funds Shifting of Department of Public Works, Roads and Transport - - 556 230 tion 1,638 1,128 R’000 60,736 35,721 60,930 991,547 317,760 378,690 702,429 Adjusted 1,166,972 2,256,614 1,081,119 Appropria - Salaries and wages Social contributions Audit costs: External Minor assets Administrative fees Catering: Departmental activities Advertising Programme Support Infrastructure Planning Design Roads Construction Roads Maintenance Roads

Compensation of employees Goods and services Programme 3: Transport Infrastructure 1. 2. 3. 4. 5. Total for sub programmes Economic classification Current payments Sub programme

125

DPWRT Annual Report 2014-15.indb 125 2015/08/18 12:46:08 PM Annual Report - - - - 50 56 849 553 1,608 7,782 3,604 9,851 2,336 R’000 12,009 31,010 56,238 78,820 58,135 Actual 217,004 expenditure - - - 3 27 2013/14 263 600 tion Final 1,595 7,537 9,112 3,204 1,048 2,300 6,289 R’000 30,934 35,929 80,038 44,948 258,922 Appropria - - - - - % tion 2.2% 58.6% 75.2% 70.3% 94.5% 95.8% 78.9% 94.6% 99.3% 110.6% 133.6% 114.7% 106.4% 122.3% 4200.0% appropria - as % of final Expenditure - - - 4 81 176 171 515 134 255 (93) (205) 5,331 1,812 R’000 25,109 (3,579) (5,311) (3,850) (19,605) Variance - - - - 4 91 970 210 192 500 7,535 5,508 8,895 R’000 14,236 41,435 64,260 34,249 Actual 443,392 107,449 Expenditure - - - 5 95 877 273 180 634 171 tion Final 7,320 9,410 R’000 10,657 12,866 36,124 60,410 87,844 34,504 468,501 Appropria ------(4) (58) (346) 3,000 R’000 39,744 (11,769) Mpumalanga Province Virement Appropriation Statement 2014/15 ------for the year ended 31 March 2015 R’000 Funds Shifting of Department of Public Works, Roads and Transport - - - 5 95 877 273 180 692 171 tion 7,320 9,410 R’000 11,003 12,870 36,124 72,179 48,100 31,504 468,501 Adjusted Appropria - - - - Travel and subsistence Inventory: Fuel, oil and gas Transport provided: Depart mental activity Training and development Inventory: Clothing mate rial and supplies Inventory: Materials and supplies Infrastructure and planning services Consumable supplies Operating leases Legal services Consumable: Stationery, printing and office supplies Property payments Communication Computer services Contractors Consultants: Business and advisory services Agency and support / out sourced services Entertainment Fleet services

126

DPWRT Annual Report 2014-15.indb 126 2015/08/18 12:46:08 PM Annual Report ------850 3,790 1,660 6,821 3,753 7,543 7,543 R’000 39,585 46,406 Actual 1,158,149 1,204,555 1,158,149 2,048,655 expenditure ------46 2013/14 419 139 985 tion Final 6,558 7,543 7,543 R’000 46,361 46,407 1,158,149 1,204,556 1,158,149 2,049,131 Appropria ------% tion 62.5% 99.8% 92.9% 100.0% 232.9% 100.3% 102.7% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------7 30 (1) (7) 251 (251) R’000 (1,386) Variance - - - - - 1 50 2,429 2,098 3,634 3,283 9,419 5,732 R’000 12,702 12,702 Actual 1,262,535 1,268,267 1,262,535 2,369,864 Expenditure ------80 tion Final 1,043 2,091 3,641 3,534 9,168 5,732 R’000 12,702 12,702 1,262,535 1,268,267 1,262,535 2,369,864 Appropria ------(18) (70) 3,534 3,534 3,534 R’000 (3,399) 118,826 101,940 118,826 113,250 (13,487) (16,886) Mpumalanga Province Virement Appropriation Statement 2014/15 ------for the year ended 31 March 2015 R’000 Funds Shifting of Department of Public Works, Roads and Transport ------150 tion 1,061 7,040 9,168 9,168 9,168 R’000 15,578 22,618 Adjusted 1,143,709 1,166,327 1,143,709 2,256,614 Appropria - - - - Buildings Operating payments Other fixed structures Rental and hiring Venues and facilities Other machinery and equipment Transport equipment Social benefits Other transfers to house holds Buildings and other fixed struc tures Machinery and equipment Heritage assets Provinces and municipalities Public corporations and pri vate enterprises Total Households Payments for capital assets Transfers and subsidies Payments for financial assets

127

DPWRT Annual Report 2014-15.indb 127 2015/08/18 12:46:08 PM Annual Report ------855 1,269 2,124 2,124 R’000 Actual expenditure ------2013/14 855 tion Final 1,269 2,124 2,124 R’000 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance ------14 14 237 1,159 1,410 1,396 R’000 Actual Expenditure ------14 14 237 tion Final 1,159 1,410 1,396 R’000 Appropria ------14 14 (27) (215) (228) (242) R’000 Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------452 tion 1,186 1,638 1.638 R’000 Adjusted Appropria - - Machinery and equipment Compensation of employees Goods and services Provinces and municipalities Public corporations and pri vate enterprises Households Buildings and other fixed structures 3.1 Programme Support Payments for financial assets Total Economic classification Transfers and subsidies Current payments Payments for capital assets

128

DPWRT Annual Report 2014-15.indb 128 2015/08/18 12:46:09 PM Annual Report ------9,453 R’000 51,491 60,944 60,944 Actual expenditure ------2013/14 tion Final 9,453 R’000 51,491 60,944 60,944 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance ------32 32 R’000 10,737 53,827 64,564 64,596 Actual Expenditure ------32 32 tion Final R’000 10,737 53,827 64,564 64,596 Appropria ------32 32 1,784 2,044 3,828 3,860 R’000 Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------tion 8,953 R’000 51,783 60,736 60,736 Adjusted Appropria - - Machinery and equipment Heritage assets Compensation of employees Goods and services Provinces and municipalities Public corporations and pri vate enterprises Households Buildings and other fixed structures 3.2 Infrastructure Planning Economic classification Payments for financial assets Current payments Total Transfers and subsidies Payments for capital assets

129

DPWRT Annual Report 2014-15.indb 129 2015/08/18 12:46:09 PM Annual Report - - - - - 67 67 152 152 4,579 R’000 28,210 33,008 32,789 Actual expenditure - - - - - 67 67 2013/14 152 152 tion Final 4,579 R’000 28,210 33,008 32,789 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance ------40 40 5,355 R’000 13,775 19,170 19,130 Actual Expenditure ------40 40 tion Final 5,355 R’000 13,775 19,170 19,130 Appropria ------8 8 R’000 (2,868) (13,691) Mpumalanga Province (16,551) (16,559) Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------32 32 tion 8,223 R’000 27,466 35,721 35,689 Adjusted Appropria - - Machinery and equipment Heritage assets Goods and services Compensation of employees Provinces and municipalities Public corporations and pri vate enterprises Households Buildings and other fixed structures 3.3 Design Roads Payments for financial assets Economic classification Total Current payments Transfers and subsidies Payments for capital assets

130

DPWRT Annual Report 2014-15.indb 130 2015/08/18 12:46:09 PM Annual Report - - - - 14 876 876 1,192 R’000 13,136 14,328 Actual 1,055,813 1,071,031 1,055,827 expenditure - - - - 14 2013/14 876 876 tion Final 1,192 R’000 13,136 1,055,813 1,071,031 1,055,827 Appropria - 14,328 - - - - - % tion 100% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance - - - - - 79 79 665 R’000 14,705 15,370 Actual 1,260,349 1,275,798 1,260,349 Expenditure - - - - - 79 79 665 tion Final R’000 14,705 15,370 1,260,349 1,275,798 1,260,349 Appropria ------79 79 Mpumalanga Province Appropriation Statement (589) R’000 (7,454) (8,043) 116,790 108,826 116,790 Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------1,254 R’000 22,159 23,413 Appro - priation Adjusted 1,143,559 1,166,972 1,143,559 - Heritage assets Machinery and equipment Buildings and other fixed structures Households Compensation of employees Public corporations and pri vate enterprises Goods and services Provinces and municipalities 3.4 Construction Roads Total Payments for financial assets Current payments Economic classification Payments for capital assets Transfers and subsidies

131

DPWRT Annual Report 2014-15.indb 131 2015/08/18 12:46:09 PM Annual Report - - - - 6,600 6,600 R’000 46,240 Actual 102,336 323,814 402,558 881,548 726,372 148,576 expenditure - - - - 2013/14 tion Final 6,600 6,600 R’000 46,241 102,336 323,814 403,033 882,024 726,847 148,577 Appropria - - - - - % tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance - - - - 5,678 2,186 7,864 R’000 12,591 12,591 Actual 324,217 664,218 988,435 1,008,890 Expenditure - - - - tion Final 5,678 2,186 7,864 R’000 12,591 12,591 324,217 664,218 988,435 1,008,890 Appropria - - - - - Mpumalanga Province Appropriation Statement 3,423 2,036 3,423 R’000 42,744 17,343 28,792 (16,908) (13,952) (14,872) Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - - - - 150 9,168 9,168 R’000 22,586 22,736 Appro - 338,169 621,474 991,547 959,643 priation Adjusted - Machinery and equipment Heritage assets Households Compensation of employees Public corporations and pri vate enterprises Goods and services Provinces and municipalities Buildings and other fixed structures Total Payments for financial assets 3.5 Maintenance Roads Current payments Payments for capital assets Economic classification Transfers and subsidies

132

DPWRT Annual Report 2014-15.indb 132 2015/08/18 12:46:09 PM Annual Report - - - 19 38 130 242 6,364 1,865 R’000 38,308 22,673 16,332 25,607 44.672 Actual 951,369 446,331 491,003 1,017,846 expenditure - - - 23 2013/14 145 345 tion Final 6,065 6,653 1,865 R’000 38,020 22,673 16,332 25,607 44,673 951,369 482,430 527,103 1,017,846 Appropria - - - - - % tion 99.9% 99.9% 99.9% 100.0% 100.0% 100.0% 100.0% 101.4% 100.0% 100.0% 100.0% 101.6% 101.4% 100.0% appropria - as % of final Expenditure ------6 3 2 (1) (3) 426 426 R’000 (5,944) (5,942) Variance - - - - 113 213 6,549 6,751 1,914 R’000 30,226 12,703 15,024 42,462 49,213 Actual 934,041 372,223 993,908 421,436 Expenditure - - - - 113 210 tion Final 6,555 6,750 1,914 R’000 12,703 15,024 30,226 42,465 49,215 934,467 366,279 994,334 415,494 Appropria - - - - 369 Mpumalanga Province (20) (59) (88) Appropriation Statement (161) (175) (158) R’000 (3,531) (5,570) (2,424) (2,483) (64,043) (63,770) (73,390) (66,253) Virement for the year ended 31 March 2015 2014/15 ------* R’000 Funds Department of Public Works, Roads and Transport Shifting of - - - 20 274 385 6,186 6,809 2,002 R’000 30,384 16,234 20,594 44,889 51,698 Appro - 998,510 430,049 481,747 priation Adjusted 1,067,724 - - Minor assets Advertising Administrative fees Social contributions Catering: Departmental ac tivities Communication Computer services Audit costs: External Salaries and wages Programme Support Public Transport Subsidies Transport Safety and Compli Transport Systems Infrastructure Operations ance

Goods and services Compensation of employees 1. 2. 3. 4. 5. Programme 4: Transport Operations Total for sub programmes Economic classification Current payments Sub programme

133

DPWRT Annual Report 2014-15.indb 133 2015/08/18 12:46:09 PM Annual Report ------31 16 83 (5) 363 736 463 125 5,885 R’000 11,577 Actual 426,628 expenditure ------6 87 67 2013/14 975 126 322 tion (89) Final 1,711 8,994 5,650 R’000 458,003 Appropria ------% tion 90.6% - 100.0% 101.9% 100.5% 100.0% 100.0% 100.1% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------(1) (4) 712 R’000 (6,654) Variance ------4 4 23 20 185 316 523 519 6,862 5,740 R’000 Actual 351,152 Expenditure ------4 4 23 20 184 316 523 519 tion Final 7,574 5,736 R’000 344,498 Appropria ------23 20 (4) 155 208 Mpumalanga Province (56) Appropriation Statement (568) (113) (245) R’000 (1,401) (2,500) (59,302) Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------8 60 752 429 768 311 8,975 2,500 5,581 R’000 Appro - 403,800 priation Adjusted - - - Transport provided: Depart mental activity Property payments Consumable: Stationery, printing and office supplies Operating leases Consumable supplies Infrastructure and planning services Consultants: Business and advisory services Training and development Travel and subsistence Contractors Legal services Laboratory services Operating payments Venues and facilities Inventory: Materials and sup pliers Fleet services Entertainment Agency and support / out sourced services Rental and hiring

134

DPWRT Annual Report 2014-15.indb 134 2015/08/18 12:46:09 PM Annual Report - - 16 53 69 199 R’000 19,242 37,372 19,242 37,571 56,813 Actual 469,961 469,961 470,030 4698,961 1,017,846 expenditure - - - 69 69 2013/14 220 tion Final 1,251 1,471 R’000 19,242 19,242 20,713 469,961 469,961 469,961 470,030 1,017,846 Appropria - - - - % tion 89.0% 99.9% 99.9% 89.1% 99.9% 99.9% 99.9% 90.7% 100.0% 100.2% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------(1) 426 426 426 426 426 5,943 5,942 5,942 R’000 Variance - - - 499 485 485 9,272 9,272 R’000 48,121 48,620 57,892 Actual 514,095 514,095 993,908 514,095 514,580 Expenditure - - - 498 485 485 tion Final 9,272 9,272 R’000 54,064 54,562 63,834 514,521 514,521 994,334 514,521 515,006 Appropria - - - - 157 485 485 Mpumalanga Province Appropriation Statement 2,256 2,256 2,256 2,741 R’000 (5,147) (4,888) (5,147) (4,731) (9,878) (73,390) Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - - - - - 341 R’000 14,419 58,952 14,419 59,293 73,712 Appro - 512,265 512,265 512,265 512,265 priation Adjusted 1,067,724 - - Other transfers to private enterprises Other fixed structures Transport equipment Other machinery and equip ment Private enterprises Social benefits Other transfers to households Buildings and other fixed struc tures Machinery and equipment Public corporations and private enterprises Provinces and municipalities Households Total Payments for financial assets Transfers and subsidies Payments for capital assets

135

DPWRT Annual Report 2014-15.indb 135 2015/08/18 12:46:09 PM Annual Report ------387 1,478 1,865 1,865 R’000 Actual expenditure ------2013/14 387 tion Final 1,478 1,865 1,865 R’000 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance ------16 16 333 1,565 1,914 1,898 R’000 Actual Expenditure ------16 16 333 tion Final 1,565 1,914 1,898 R’000 Appropria ------86 Mpumalanga Province (24) (88) (24) (64) Appropriation Statement (150) R’000 Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------40 40 483 1,479 2,002 1,962 R’000 Appro - priation Adjusted - Machinery and equipment Heritage assets Buildings and other fixed structures Households Public corporations and pri vate enterprises Provinces and municipalities Goods and services Compensation of employees 4.1 Programme Support Total Payments for financial assets Payments for capital assets Transfers and subsidies Current payments Economic classification

136

DPWRT Annual Report 2014-15.indb 136 2015/08/18 12:46:10 PM Annual Report - - - - 7,118 R’000 36,131 36,131 Actual 438,159 469,961 951,369 469,961 445,277 expenditure - - - - 31 31 2013/14 tion Final 7,118 R’000 474,259 469,961 951,369 469,961 481,377 Appropria - - - - - % tion 88.7% 99.9% 99.9% 99.9% 88.7% 100.0% 101.7% 101.6% appropria - as % of final Expenditure - - - - 2 426 426 426 5,942 5,942 R’000 (5,944) (5,942) Variance - - - - 7,609 R’000 46,758 46,758 Actual 365,579 514,095 934,041 514,095 373,188 Expenditure - - - - tion Final 7,611 R’000 52,700 52,700 359,635 514,521 934,467 541,521 367,246 Appropria - - - - - Mpumalanga Province Appropriation Statement 2,256 2,256 R’000 (1,022) (3,370) (3,370) (61,907) (64,043) (62,929) Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - - - - 8,633 R’000 56,070 56,070 Appro - 421,542 512,265 998,510 512,265 430,175 priation Adjusted - Heritage assets Goods and services Provinces and municipalities Public corporations and pri vate enterprises Compensation of employees Machinery and equipment Buildings and other fixed structures Households Total Payments for financial assets 4.2 Public Transport Services Transfers and subsidies Current payments Economic classification Payments for capital assets

137

DPWRT Annual Report 2014-15.indb 137 2015/08/18 12:46:10 PM Annual Report - - - - - 27 27 487 487 3,629 R’000 18,530 22,673 22,159 Actual expenditure - - - - - 27 27 2013/14 487 487 tion Final 3,629 R’000 18.530 22,673 22,159 Appropria - - - - - % tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance - - - - 2 2 614 1,751 3,045 2,365 R’000 24,814 30,226 27,859 Actual Expenditure - - - - 2 2 614 tion Final 1,751 3,045 2,365 R’000 24,814 30,226 27,859 Appropria - - - - - 2 2 14 213 944 Mpumalanga Province Appropriation Statement (158) 1,157 R’000 (1,331) (1,317) Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------600 3,082 2,101 3,682 R’000 24,601 30,384 26,702 Appro - priation Adjusted - Machinery and equipment Heritage assets Households Compensation of employees Public corporations and pri vate enterprises Goods and services Provinces and municipalities Buildings and other fixed structures Total Payments for financial assets 4.3 Transport Safety and Compliance Current payments Economic classification Transfers and subsidies Payments for capital assets

138

DPWRT Annual Report 2014-15.indb 138 2015/08/18 12:46:10 PM Annual Report - - - - - 45 42 42 45 3,438 R’000 12,807 16,332 16,245 Actual expenditure - - - - - 45 42 42 45 2013/14 tion Final 3,438 R’000 12,807 16,332 16,245 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance - - - - - 95 95 458 458 1,941 R’000 10,209 12,703 12,150 Actual Expenditure - - - - - 95 95 458 458 tion Final 1,941 R’000 10,209 12,703 12,150 Appropria ------(6) (6) 458 458 Mpumalanga Province Appropriation Statement R’000 (1,717) (2,266) (3,531) (3,983) Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------101 101 4,207 R’000 11,926 16,234 16,133 Appro - priation Adjusted - Machinery and equipment Heritage assets Households Compensation of employees Public corporations and pri vate enterprises Goods and services Provinces and municipalities Buildings and other fixed structures 4.4 Transport Systems Total Payments for financial assets Current payments Economic classification Transfers and subsidies Payments for capital assets

139

DPWRT Annual Report 2014-15.indb 139 2015/08/18 12:46:10 PM Annual Report ------908 718 4,739 5,457 R’000 19,242 25,607 20,150 Actual expenditure ------2013/14 908 717 tion Final 4,740 5,457 R’000 19,242 25,607 20,150 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance - - - - - 25 25 8,658 5,016 1,325 8,658 6,341 R’000 15,024 Actual Expenditure - - - - - 25 25 tion Final 8,658 5,016 1,325 8,658 6,341 R’000 15,024 Appropria ------25 25 Mpumalanga Province (43) Appropriation Statement (391) (434) R’000 (5,161) (5,570) (5,161) Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------5,059 1,716 6,775 R’000 13,819 20,594 13,819 Appro - priation Adjusted - Machinery and equipment Heritage assets Households Buildings and other fixed structures Public corporations and pri vate enterprises Provinces and municipalities Compensation of employees Goods and services Total Payments for financial assets 4.5 Infrastructure Operations Payments for capital assets Current payments Economic classification Transfers and subsidies

140

DPWRT Annual Report 2014-15.indb 140 2015/08/18 12:46:10 PM Annual Report - - - 370 291 2,707 1,609 R’000 21,865 40,493 14,610 10,888 42,859 67,600 67,431 24,572 Actual expenditure - - 2013/14 511 135 388 tion Final 2,390 1,609 R’000 22,182 40,493 15,180 10,888 43,429 68,170 68,001 24,572 Appropria - - - % tion 99.1% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 3600.0% appropria - as % of final Expenditure ------1 1 1 1 1 1 (35) R’000 Variance - - 36 109 888 2,988 1,356 R’000 33,375 13,144 11,491 26,050 29,738 59,366 58,776 29,038 Actual Expenditure - - 1 110 888 tion Final 2,988 1,357 R’000 26,051 33,375 13,144 11,491 29,738 59,367 58,777 29,039 Appropria - - - 85 207 536 Mpumalanga Province (95) (59) Appropriation Statement (257) (922) 1,725 2,304 1,643 2,768 2,468 1,932 R’000 Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of - - 60 205 803 2,781 1,614 R’000 24,326 31,071 12,413 11,501 29,202 56,599 56,309 27,107 Appro - priation Adjusted - Catering: Departmental activities Audit costs: External Minor assets Advertising Administrative fees Social contributions Salaries and wages Programme Support Community Development Innovation and Empower EPWP: Co-ordination and Monitoring ment

Goods and services Compensation of employees 1. 2. 3. 4. Programme 5: Community Based Total for sub programmes Economic classification Current payments Sub programme

141

DPWRT Annual Report 2014-15.indb 141 2015/08/18 12:46:10 PM Annual Report ------3 11 260 446 364 927 165 4,885 4,609 8,793 R’000 21,380 Actual expenditure ------1 4 11 2013/14 119 796 405 tion Final (851) 5,436 4,236 8,924 1,100 R’000 21,805 Appropria ------% tion 99.2% 93.3% 99.7% 100.0% 100.0% 100.5% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------1 1 34 (2) R’000 Variance ------14 301 413 268 298 4,443 6,047 2,048 R’000 14,736 Actual Expenditure ------15 301 411 268 299 tion Final 4,477 6,047 2,048 R’000 14,736 Appropria ------(2) 287 Mpumalanga Province (79) (66) (94) Appropriation Statement (265) (226) (195) (202) 2,037 R’000 Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------2 81 380 124 463 393 4,742 4,010 2,250 R’000 14,962 Appro - priation Adjusted - - - - Travel and subsistence ment Inventory: Materials and supplies Transport provided: De partmental activity Training and develop Fleet services Consumable supplies Property payments Operating payments Consumable: Stationery, printing and office sup plies Operating leases Communication Computer services Consultants: Business and advisory services Contractors Agency and support / outsourced services Entertainment Legal services Laboratory services Infrastructure and plan ning services

142

DPWRT Annual Report 2014-15.indb 142 2015/08/18 12:46:10 PM Annual Report ------69 69 69 100 355 100 100 R’000 67,600 Actual expenditure ------69 69 69 2013/14 100 409 100 100 tion Final R’000 68,170 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------1 R’000 Variance ------399 191 137 399 191 399 191 R’000 59,366 Actual Expenditure ------399 191 137 399 191 399 191 tion Final R’000 59,367 Appropria ------109 191 109 109 191 191 Mpumalanga Province Appropriation Statement (590) 2,768 R’000 Virement for the year ended 31 March 2015 2014/15 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------290 727 290 290 R’000 56,599 Appro - priation Adjusted - - Other machinery and equipment Transport equipment Social benefits Other transfers to house holds Venues and facilities Rental and hiring Machinery and equipment Buildings and other fixed structures Heritage assets Households Public corporations and pri vate enterprises Provinces and municipalities Total Payments for financial assets Payments for capital assets Transfers and subsidies

143

DPWRT Annual Report 2014-15.indb 143 2015/08/18 12:46:10 PM Annual Report ------216 1,393 1,609 1,609 R’000 Actual expenditure ------2013/14 216 tion Final 1,393 1,609 1,609 R’000 Appropria ------% tion 99.9% 99.9% 99.9% 100.0% appropria - as % of final Expenditure ------1 1 1 R’000 Variance ------179 1,177 1,356 1,356 R’000 Actual Expenditure ------179 tion Final 1,178 1,357 1,357 R’000 Appropria ------(61) (196) (257) (257) R’000 Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------240 tion 1,374 1,614 1,614 R’000 Adjusted Appropria - - Machinery and equipment Heritage assets Goods and services Provinces and municipalities Compensation of employees Public corporations and pri vate enterprises Households Buildings and other fixed structures 5.1 Programme Support Economic classification Payments for financial assets Transfers and subsidies Current payments Total Payments for capital assets

144

DPWRT Annual Report 2014-15.indb 144 2015/08/18 12:46:10 PM Annual Report ------36 36 R’000 12,057 28,400 40,493 40,457 Actual expenditure ------36 36 2013/14 tion Final R’000 12,057 28,400 40,493 40,457 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance ------373 373 R’000 15,546 17,456 33,375 33,002 Actual Expenditure ------373 373 tion Final R’000 15,546 17,456 33,375 33,002 Appropria ------143 143 (192) 2,353 2,304 2,161 R’000 Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------230 230 tion R’000 13,193 17,648 31,071 30,841 Adjusted Appropria - - Heritage assets Machinery and equipment Compensation of employees Goods and services Provinces and municipalities Public corporations and pri vate enterprises Households Buildings and other fixed structures Payments for financial assets 5.2 Community Development Total Economic classification Current payments Transfers and subsidies Payments for capital assets

145

DPWRT Annual Report 2014-15.indb 145 2015/08/18 12:46:11 PM Annual Report - - - - - 33 33 100 100 4,243 R’000 10,234 14,477 14,610 Actual expenditure - - - - - 33 33 2013/14 100 100 tion Final 4,243 R’000 10,804 15,047 15,180 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance ------11 11 8,698 4,435 R’000 13,133 13,144 Actual Expenditure ------11 11 tion Final 8,698 4,435 R’000 13,133 13,144 Appropria ------(49) (49) (307) 1,999 1,692 1,643 R’000 Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------60 60 tion 6,699 4,742 R’000 11,441 11,501 Adjusted Appropria - - Machinery and equipment Heritage assets Goods and services Compensation of employees Provinces and municipalities Public corporations and pri vate enterprises Households Buildings and other fixed structures 5.3 Innovation and Empowerment Economic classification Payments for financial assets Current payments Total Transfers and subsidies Payments for capital assets

146

DPWRT Annual Report 2014-15.indb 146 2015/08/18 12:46:11 PM Annual Report ------4,009 6,879 R’000 10,888 10,888 Actual expenditure ------2013/14 tion Final 4,009 6,879 R’000 10,888 10,888 Appropria ------% tion 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% appropria - as % of final Expenditure ------R’000 Variance - - - - - 15 15 191 191 3,405 7,880 R’000 11,491 11,285 Actual Expenditure - - - - - 15 15 191 191 tion Final 3,405 7,880 R’000 11,491 11,285 Appropria ------15 82 15 191 191 (922) R’000 (1,210) (1,128) Mpumalanga Province Appropriation Statement Virement 2014/15 for the year ended 31 March 2015 ------R’000 Funds Department of Public Works, Roads and Transport Shifting of ------tion 4,615 7,798 R’000 12,413 12,413 Adjusted Appropria - - Heritage assets Machinery and equipment Goods and services Provinces and municipalities Compensation of employees Public corporations and pri vate enterprises Households Buildings and other fixed structures 5.4 EPWP: Co-ordination and Monitoring Payments for financial assets Economic classification Total Transfers and subsidies Current payments Payments for capital assets

147

DPWRT Annual Report 2014-15.indb 147 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes to the Appropriation Statement for the year ended 31 March 2015 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-H) to the Annual Financial Statements. 2. Detail of specifically and exclusively appropriated amounts voted (after Virement): Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements. 3. Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements. 4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme Final Actual Variance Variance as Appropriation Expenditure R’000 a % of Final Appropriation Administration 227,406 227,405 1 0% Public Works Infrastructure 590,620 590,618 2 0% Transport Infrastructure 2,369,864 2,369,864 - 0% Transport Operations 994,334 993,908 426 0% Community Based Programmes 59,367 59,366 1 0%

4.2 Per economic classification Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 R’000 Current payments Compensation of employees 839,221 839,217 4 0% Goods and services 1,410,186 1,414,320 (4,134) 0%

Transfers and subsidies Provinces and municipalities 111,131 111,131 0 0% Public corporations and private 514,521 514,095 426 0% enterprises Households 17,749 17,749 0 0%

Payments for capital assets Buildings and other fixed structures 1,281,532 1,283,342 (1,810) 0% Machinery and equipment 66,160 60,216 5,944 9%

Payments for financial assets 1,091 1,091 0 0%

4.3 Per conditional grant Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 R’000

Provincial Roads Maintenance 1,594,840 1,594,839 1 0% Grant Public Transport Operations Grant 491,418 491,087 331 0.1% Expanded Public Works 12,798 12,795 3 0% Programme Incentive Grant Provincial Disaster Grant 35,750 35,749 1 0%

148

DPWRT Annual Report 2014-15.indb 148 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Statement of Financial Performance for the year ended 31 March 2015

Note 2014/15 2013/14 R’000 R’000 REVENUE

Annual appropriation 1 4,239,778 3,946,475 Statutory appropriation 2 1,813 1,735 Departmental revenue 3 2,535 23,970

TOTAL REVENUE 4,244,126 3,972,180

EXPENDITURE

Current expenditure Compensation of employees 4 839,217 804,835 Goods and services 5 1,414,320 1,245,383

Total current expenditure 2,253,537 2,050,218

Transfers and subsidies Transfers and subsidies 7 642,975 621,689

Total transfers and subsidies 642,975 621,689

Expenditure for capital assets Tangible assets 8 1,343,558 1,271,242

Total expenditure for capital assets 1,343,558 1,271,242

Unauthorised expenditure approved without 9 - 2,214 funding

Payments for financial assets 6 1,091 1,790

TOTAL EXPENDITURE 4,241,161 3,947,153

SURPLUS/(DEFICIT) FOR THE YEAR 2,965 25,027

Reconciliation of Net Surplus/(Deficit) for the year

Voted funds 430 1,057 Annual appropriation 94 1,021 Conditional grants 336 36 Departmental revenue and NRF Receipts 12 2,535 23,970 SURPLUS/(DEFICIT) FOR THE YEAR 2,965 25,027

149

DPWRT Annual Report 2014-15.indb 149 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Statement of Financial Position for the year ended 31 March 2015

Note 2014/15 2013/14 R’000 R’000 ASSETS

Current assets 7,179 8,779

Receivables 10 7,179 8,779

Non-current assets 17,286 17,957

Receivables 10 17,286 17,957

TOTAL ASSETS 24,465 26,736

LIABILITIES

Current liabilities 19,216 20,716

Voted funds to be surrendered to the Revenue 11 430 1,057 Fund Departmental revenue and NRF Receipts to be 12 1,863 1,665 surrendered to the Revenue Fund Bank overdraft 13 14,957 17,462 Payables 14 1,966 532

TOTAL LIABILITIES 19,216 20,716

NET ASSETS 5,249 6,020

Note 2014/15 2013/14 R’000 R’000

Represented by: Capitalisation reserve - - Recoverable revenue 5,249 6,020

TOTAL 5,249 6,020

150

DPWRT Annual Report 2014-15.indb 150 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Statement of Changes in Net Assets for the year ended 31 March 2015

Note 2014/15 2013/14 R’000 R’000

Recoverable revenue Opening balance 6,020 6,911 Transfers: (771) (891) Debts revised - (175) Debts recovered (included in departmental receipts) (897) (1,420) Debts raised 126 704 Closing balance 5,249 6,020

TOTAL 5,249 6,020

151

DPWRT Annual Report 2014-15.indb 151 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Cash Flow Statement for the year ended 31 March 2015

Note 2014/15 2013/14 R’000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 4,264,113 3,968,897 Annual appropriated funds received 1.1 4,239,778 3,946,475 Statutory appropriated funds received 2 1,813 1,735 Departmental revenue received 3 20,471 19,050 Interest received 3.3 2,051 1,637

Net (increase)/decrease in working capital 3,705 3,399 Surrendered to Revenue Fund (24,697) (30,009) Current payments (2,253,537) (2,052,432) Payments for financial assets (1,091) (1,790) Transfers and subsidies paid (642,975) (621,689) Net cash flow available from operating activities 15 1,345,518 1,266,376

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 8 (1,343,558) (1,271,242) Proceeds from sale of capital assets 3.4 1,316 3,283 Net cash flows from investing activities (1,342,242) (1,267,959)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase/(decrease) in net assets (771) (891) Net cash flows from financing activities (771) (891)

Net increase/(decrease) in cash and cash 2,505 (2,474) equivalents

Cash and cash equivalents at beginning of period (17,462) (14,988)

Cash and cash equivalents at end of period 16 (14,957) (17,462)

152

DPWRT Annual Report 2014-15.indb 152 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Accounting Policies for the year ended 31 March 2015 Summary of significant accounting policies 5.2 Current year comparison with budget The financial statements have been prepared in A comparison between the approved, accordance with the following policies, which final budget and actual amounts for each have been applied consistently in all material programme and economic classification is aspects, unless otherwise indicated. included in the appropriation statement.

The historical cost convention has been used, 6 Revenue except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are 6.1 Appropriated funds based on the best information available at the time of preparation. Appropriated funds comprises of departmental allocations as well as direct Where appropriate and meaningful, additional charges against the revenue fund (i.e. information has been disclosed to enhance the statutory appropriation). usefulness of the financial statements and to comply with the statutory requirements of the Appropriated funds are recognised in Public Finance Management Act (PFMA), Act 1 the statement of financial performance of 1999 (as amended by Act 29 of 1999), and the on the date the appropriation becomes Treasury Regulations issued in terms of the PFMA effective. and the annual Division of Revenue Act. Adjustments made in terms of the adjustments budget process are 1 Basis of preparation recognised in the statement of financial performance on the date the adjustments The financial statements have been become effective. prepared in accordance with the Modified Cash Standard. The net amount of any appropriated funds due to / from the relevant revenue fund 2 Going concern at the reporting date is recognised as a payable / receivable in the statement of The financial statements have been financial position. prepared on a going concern basis. 6.2 Departmental revenue 3 Presentation currency Departmental revenue is recognised in the Amounts have been presented in the statement of financial performance when currency of the South African Rand (R) received and is subsequently paid into which is also the functional currency of the the relevant revenue fund, unless stated department. otherwise.

4 Rounding Any amount owing to the relevant revenue fund at the reporting date is recognised Unless otherwise stated financial figures as a payable in the statement of financial have been rounded to the nearest one position. thousand Rand (R’000). 6.3 Accrued departmental revenue 5 Comparative information Accruals in respect of departmental revenue (excluding tax revenue) are 5.1 Prior period comparative information recorded in the notes to the financial statements when: Prior period comparative information • it is probable that the economic has been presented in the current year’s benefits or service potential associated financial statements. Where necessary with the transaction will flow to the figures included in the prior period financial department; and statements have been reclassified to • the amount of revenue can be ensure that the format in which the measured reliably. information is presented is consistent with the format of the current year’s financial The accrued revenue is measured at the statements. fair value of the consideration receivable.

153

DPWRT Annual Report 2014-15.indb 153 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Accounting Policies for the year ended 31 March 2015 Accrued tax revenue (and related interest 7.4.2 Finance leases and / penalties) is measured at amounts receivable from collecting agents. Finance lease payments made during the reporting period are recognised as capital 7 Expenditure expenditure in the statement of financial performance on the date of payment. The finance lease commitments are 7.1 Compensation of employees recorded in the notes to the financial statements and are not apportioned 7.1.1 Salaries and wages between the capital and interest portions. Finance lease assets acquired at the Salaries and wages are recognised in the end of the lease term are recorded and statement of financial performance on measured at the lower of: the date of payment. • cost, being the fair value of the asset; or 7.1.2 Social contributions • the sum of the minimum lease payments made, including any payments made Social contributions made by the to acquire ownership at the end of the department in respect of current lease term, excluding interest. employees are recognised in the statement of financial performance on 8 Cash and cash equivalents the date of payment. Cash and cash equivalents are stated at Social contributions made by the cost in the statement of financial position. department in respect of ex-employees Bank overdrafts are shown separately are classified as transfers to households in on the face of the statement of financial the statement of financial performance position. on the date of payment. For the purposes of the cash flow 7.2 Other expenditure statement, cash and cash equivalents comprise cash on hand, deposits held, Other expenditure (such as goods and other short-term highly liquid investments services, transfers and subsidies and and bank overdrafts. payments for capital assets) is recognised in the statement of financial performance 9 Loans and receivables on the date of payment. The expense is classified as a capital expense if the Loans and receivables are recognised total consideration paid is more than the in the statement of financial position at capitalisation threshold. cost plus accrued interest, where interest is charged, less amounts already settled 7.3 Accrued expenditure payable or written-off. (In terms of write-offs the departmental policy applied paragraph Accrued expenditure payable is recorded 11.4 of the Treasury Regulations together in the notes to the financial statements with section 76 (1) (e) and 76 (4) (a) of the when the goods are received or, in the Public Finance Management Act) case of services, when they are rendered to the department. 10 Payables Accrued expenditure payable is measured Loans and payables are recognised in the at cost. statement of financial position at cost.

7.4 Leases 11 Capital Assets

7.4.1 Operating leases 11.1 Immovable capital assets Operating lease payments made during Immovable capital assets are initially the reporting period are recognised as recorded in the notes to the financial current expenditure in the statement of statements at cost. Immovable capital financial performance on the date of assets acquired through a non-exchange payment. transaction is measured at fair value as at the date of acquisition. The operating lease commitments are recorded in the notes to the financial statements. 154

DPWRT Annual Report 2014-15.indb 154 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Accounting Policies for the year ended 31 March 2015 Where the cost of immovable capital assets Internally generated intangible assets cannot be determined accurately, the are recorded in the notes to the financial immovable capital assets are measured statements when the department at R1 unless the fair value of the asset has commences the development phase of been reliably estimated, in which case the the project. fair value is used. Where the cost of intangible assets All assets acquired prior to 1 April 2002 (or cannot be determined accurately, the a later date as approved by the OAG) intangible capital assets are measured may be recorded at R1. at fair value and where fair value cannot be determined; the intangible assets are Immovable capital assets are subsequently measured at R1. carried at cost and are not subject to depreciation or impairment. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) Subsequent expenditure that is of a may be recorded at R1. capital nature is added to the cost of the asset at the end of the capital project Intangible assets are subsequently carried unless the immovable asset is recorded at cost and are not subject to depreciation by another department in which case the or impairment. completed project costs are transferred to that department. 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 11.2 Movable capital assets intangible asset is recorded by another department/entity in which case the Movable capital assets are initially completed project costs are transferred to recorded in the notes to the financial that department. statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at 12 Provisions and Contingents the date of acquisition. 12.1 Provisions Where the cost of movable capital assets cannot be determined accurately, the Provisions are recorded in the notes to movable capital assets are measured at the financial statements when there is a fair value and where fair value cannot present legal or constructive obligation be determined; the movable assets are to forfeit economic benefits as a result measured at R1. of events in the past and it is probable that an outflow of resources embodying All assets acquired prior to 1 April 2002 (or economic benefits or service potential a later date as approved by the OAG) will be required to settle the obligation may be recorded at R1. and a reliable estimate of the obligation can be made. The provision is measured Movable capital assets are subsequently as the best estimate of the funds required carried at cost and are not subject to to settle the present obligation at the depreciation or impairment. reporting date.

Biological assets are subsequently carried 12.2 Contingent liabilities at fair value. Contingent liabilities are recorded in the Subsequent expenditure that is of a capital notes to the financial statements when nature is added to the cost of the asset at there is a possible obligation that arises the end of the capital project unless the from past events, and whose existence will movable asset is recorded by another be confirmed only by the occurrence or department/entity in which case the non-occurrence of one or more uncertain completed project costs are transferred to future events not within the control of the that department. department or when there is a present obligation that is not recognised because 11.3 Intangible assets it is not probable that an outflow of resources will be required to settle the Intangible assets are initially recorded in obligation or the amount of the obligation the notes to the financial statements at cannot be measured reliably cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. 155

DPWRT Annual Report 2014-15.indb 155 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Accounting Policies for the year ended 31 March 2015 12.3 Contingent assets 15 Irregular expenditure Contingent assets are recorded in the Irregular expenditure is recorded in the notes to the financial statements when a notes to the financial statements when possible asset arises from past events, and confirmed. The amount recorded is equal whose existence will be confirmed by the to the value of the irregular expenditure occurrence or non-occurrence of one or incurred unless it is impracticable to more uncertain future events not within determine, in which case reasons therefor the control of the department are provided in the note. Irregular expenditure is removed from the note when it is either condoned by 12.4 Commitments the relevant authority, transferred to receivables for recovery or not condoned Commitments are recorded at cost in the and is not recoverable. notes to the financial statements when there is a contractual arrangement or an Irregular expenditure receivables are approval by management in a manner measured at the amount that is expected that raises a valid expectation that the to be recoverable and are de-recognised department will discharge its responsibilities when settled or subsequently written-off as thereby incurring future expenditure that irrecoverable. will result in the outflow of cash 16 Changes in accounting policies, 13 Unauthorised expenditure accounting estimates and errors Unauthorised expenditure is recognised Changes in accounting policies that are in the statement of financial position until effected by management have been such time as the expenditure is either: applied retrospectively in accordance • approved by Parliament or the with MCS requirements, except to the Provincial Legislature with funding and extent the related funds are received; or • approved by Parliament or the that it is impracticable to determine the Provincial Legislature without period-specific effects or the cumulative funding and is written off against the effect of the change in policy. In such appropriation in the statement of instances the department shall restate the financial performance; or opening balances of assets, liabilities and • transferred to receivables for recovery. net assets for the earliest period for which retrospective restatement is practicable. Unauthorised expenditure is measured at the amount of the confirmed unauthorised Changes in accounting estimates are expenditure. applied prospectively in accordance with MCS requirements. 14 Fruitless and wasteful expenditure Correction of errors is applied Fruitless and wasteful expenditure is retrospectively in the period in which the recorded in the notes to the financial error has occurred in accordance with statements when confirmed. The amount MCS requirements, except to the extent recorded is equal to the total value of that it is impracticable to determine the the fruitless and or wasteful expenditure period-specific effects or the cumulative incurred. effect of the error. In such cases the department shall restate the opening Fruitless and wasteful expenditure is balances of assets, liabilities and net removed from the notes to the financial assets for the earliest period for which statements when it is resolved or transferred retrospective restatement is practicable. to receivables for recovery. 17 Events after the reporting date Fruitless and wasteful expenditure Events after the reporting date that are receivables are measured at the amount classified as adjusting events have been that is expected to be recoverable accounted for in the financial statements. and are de-recognised when settled or The events after the reporting date that subsequently written-off as irrecoverable. are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.

156

DPWRT Annual Report 2014-15.indb 156 2015/08/18 12:46:11 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 18 Recoverable revenue 19 Related party transactions Amounts are recognised as recoverable A related party transaction is a transfer of revenue when a payment made in resources, services or obligations between a previous financial year becomes the reporting entity and a related party. recoverable from a debtor in the current financial year. Amounts are either Related party transactions are recorded in transferred to the National/Provincial the notes to the financial statements when Revenue Fund when recovered or are the transaction is not at arm’s length. transferred to the statement of financial performance when written-off.

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:

2014/15 2013/14 Funds not Appropriation Final Actual Funds requested/ received Appropriation Received not received R’000 R’000 R’000 R’000 Administration 225,593 225,593 - 218,806 Public Works 590,620 590,620 - 592,521 Infrastructure Transport 2,369,864 2,369,864 - 2,049,131 Infrastructure Transport 994,334 994,334 - 1,017,847 Operations Community 59,367 59,367 - 68,170 Based Programmes Total 4,239,778 4,239,778 - 3,946,475

1.2 Conditional grants Note 2014/15 2013/14 R’000 R’000 Total grants received 30 2,134,806 1,973,010

Provincial grants included in Total Grants 2,134,806 1,973,010 received 2. Statutory Appropriation 2014/15 2013/14 R’000 R’000 Members’ remuneration 1,813 1,735 Total 1,813 1,735

Actual Statutory Appropriation received 1,813 1,735

157

DPWRT Annual Report 2014-15.indb 157 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 3. Departmental revenue Note 2014/15 2013/14 R’000 R’000 Sales of goods and services other than capital 3.1 10,385 10,045 assets Fines, penalties and forfeits 3.2 8,285 5,590 Interest, dividends and rent on land 3.3 2,051 1,637 Sales of capital assets 3.4 1,316 3,283 Transactions in financial assets and liabilities 3.5 1,801 3,415 Total revenue collected 23,838 23,970 Less: Own revenue included in appropriation 15 21,303 - Departmental revenue collected 2,535 23,970 3.1 Sales of goods and services other than capital assets Note 2014/15 2013/14 3 R’000 R’000 Sales of goods and services produced by the 10,385 9,914 department Sales by market establishment 3,812 3,822 Administrative fees 1,969 1,739 Other sales 4,604 4,353 Sales of scrap, waste and other used current 131 goods Total 10,385 10,045 3.2 Fines, penalties and forfeits Note 2014/15 2013/14 3 R’000 R’000 Penalties 8,285 5,590 Total 8,285 5,590 3.3 Interest, dividends and rent on land Note 2014/15 2013/14 3 R’000 R’000 Interest 2,051 1,637 Total 2,051 1,637 3.4 Sale of capital assets Note 2014/15 2013/14 3 R’000 R’000 Tangible assets Machinery and equipment 27.2 1,316 3,283 Total 1,316 3,283 3.5 Transactions in financial assets and liabilities Note 2014/15 2013/14 3 R’000 R’000 Receivables 1,165 1,922 Stale cheques written back 16 248 Other Receipts including Recoverable Revenue 620 1,245 Total 1,801 3,415

158

DPWRT Annual Report 2014-15.indb 158 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 4 Compensation of employees 4.1 Salaries and Wages Note 2014/15 2013/14 4 R’000 R’000 Basic salary 555,676 528,056 Performance award 17,557 12,622 Service Based 47,402 47,921 Compensative/circumstantial 16,566 21,118 Periodic payments 8,962 4,594 Other non-pensionable allowances 70,898 71,056 Total 717,061 685,367 4.2 Social contributions Note 2014/15 2013/14 4 R’000 R’000 Employer contributions Pension 71,620 68,522 Medical 50,300 50,705 UIF - 14 Bargaining council 236 227 Total 122,156 119,468

Total compensation of employees 839,217 804,835

Average number of employees 3,559 3,724 5. Goods and services Note 2014/15 2013/14 R’000 R’000 Administrative fees 208 145 Advertising 3,198 2,686 Minor assets 5.1 7,002 465 Catering 2,949 4,106 Communication 16,172 16,461 Computer services 5.2 1,002 1,047 Consultants: Business and advisory services 21,237 24,906 Infrastructure and planning services 64,921 78,198 Legal services 4,462 3,667 Contractors 8,422 3,614 Agency and support / outsourced services 109,007 59,688 Audit cost – external 5.3 8,963 9,955 Fleet services 43,179 41,791 Inventory 5.4 50,967 62,487 Consumables 5.5 75,413 68,429 Operating leases 27,854 30,557 Property payments 5.6 519,491 312,534 Rental and hiring 1 - Transport provided as part of the departmental 351,362 247,005 activities Travel and subsistence 5.7 67,616 59,972 Venues and facilities 345 2,301 Training and development 22,797 29,517 Other operating expenditure 5.8 7,752 5,852 Total 1,414,320 1,245,383

159

DPWRT Annual Report 2014-15.indb 159 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 5.1 Minor assets Note 2014/15 2013/14 5 R’000 R’000 Tangible assets Machinery and equipment 7,002 465 Total 7,002 465 5.2 Computer services Note 2014/15 2013/14 5 R’000 R’000 SITA computer services 900 792 External computer service providers 102 255 Total 1,002 1,047 5.3 Audit cost – External Note 2014/15 2013/14 5 R’000 R’000 Regularity audits 8,963 9,955 Total 8,963 9,955 5.4 Inventory Note 2014/15 2013/14 5 R’000 R’000 Clothing material and accessories 1,468 2,103 Fuel, oil and gas 5,508 3,604 Materials and supplies 43,991 56,780 Total 50,967 62,487 5.5 Consumables Note 2014/15 2013/14 5 R’000 R’000 Consumable supplies 62,023 61,057 Uniform and clothing 6,927 5,451 Household supplies 40,741 38,388 Building material and supplies 7,251 8,168 IT consumables 41 125 Other consumables 7,063 8,925 Stationery, printing and office supplies 13,390 7,372 Total 75,413 68,429 5.6 Property payments Note 2014/15 2013/14 5 R’000 R’000 Property maintenance and repairs 444,740 223,651 Other 74,751 88,883 Total 519,491 312,534 5.7 Travel and subsistence Note 2014/15 2013/14 5 R’000 R’000 Local 67,514 59,972 Foreign 102 - Total 67,616 59,972

160

DPWRT Annual Report 2014-15.indb 160 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 5.8 Other operating expenditure Note 2014/15 2013/14 5 R’000 R’000 Professional bodies, membership and subscription fees 211 130 Resettlement costs 306 - Other 7,235 5,722 Total 7,752 5,852 6. Payments for financial assets Note 2014/15 2013/14

R’000 R’000 Debts written off 6.1 1,091 1,790 Total 1,091 1,790 6.1 Debts written off Note 2014/15 2013/14 6 R’000 R’000 Other debt written off Irrecoverable debts written off 1,091 1,790 Total debt written off 1,091 1,790 7. Transfers and subsidies 2014/15 2013/14 R’000 R’000 Note Provinces and municipalities Annex 1A 111,131 140,106 Public corporations and private enterprises Annex 1B 514,095 469,961 Households Annex 1C 17,749 11,622 Total 642,975 621,689 8. Expenditure for capital assets Note 2014/15 2013/14 R’000 R’000 Tangible assets 1,343,558 1,271,242 Buildings and other fixed structures 28.1 1,283,342 1,183,949 Machinery and equipment 27.1 60,216 87,293 Total 1,343,558 1,271,242 8.1 Analysis of funds utilised to acquire capital assets – 2014/15 Voted Funds Total

R’000 R’000 Tangible assets 1,343,558 1,343,558 Buildings and other fixed structures 1,283,342 1,283,342 Machinery and equipment 60,216 60,216 Total 1,343,558 1,343,558 8.2 Analysis of funds utilised to acquire capital assets – 2013/14 Voted Funds Total R’000 R’000 Tangible assets 1,271,242 1,271,242 Buildings and other fixed structures 1,183,949 1,183,949 Machinery and equipment 87,293 87,293 Total 1,271,242 1,271,242

161

DPWRT Annual Report 2014-15.indb 161 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 8.3 Finance lease expenditure included in Expenditure for capital assets Tangible assets Machinery and equipment 46,680 36,100 Total 46,680 36,100 9. Unauthorised expenditure 9.1 Reconciliation of unauthorised expenditure Note 2014/15 2013/14 9 R’000 R’000 Opening balance - 2,214 Less: Amounts approved by Parliament/ Legislature without funding - (2,214) Current - (2,214) Unauthorised expenditure awaiting authorisation / written off - - 10. Receivables 2014/15 2013/14 R’000 R’000 R’000 R’000 R’000 Less than One to Older one year three than Note years three Total Total years Claims recoverable 10.1 4,170 168 1,739 6,077 9,390 Annex3 Staff debt 10.2 257 12 20 289 387 Other debtors 10.3 2,752 370 14,977 18,099 16,959 Fruitless and 10.4 - - - - - wasteful expenditure Total 7,179 550 16,736 24,465 26,736 10.1 Claims recoverable Note 2014/15 2013/14 10 R’000 R’000 National departments - 50 Provincial departments 6,077 9,340 Total 6,077 9,390 10.2 Staff debt Note 2014/15 2013/14 10 R’000 R’000 Employees 289 387 Total 289 387

162

DPWRT Annual Report 2014-15.indb 162 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 10.3 Other debtors Note 2014/15 2013/14 10 R’000 R’000 Suppliers 6,316 6,351 Rental (Business and Housing 5,221 5,956 Other Debtors 4,052 4,052 Ex- Employees 452 541 Recoverable funds: Mbombela Services 1,282 - Inter-departmental claims 64 - Sal: Tax Debts 69 28 Sal: Reversal Control: CA 603 28 Sal: Deduction Disallowance: CA 35 3 Sal: Medical Aid: CL 2 - Sal: Pension Fun: CL 3 - Total 18,099 16,959 10.4 Fruitless and wasteful expenditure Note 2014/15 2013/14 10 R’000 R’000 Opening balance - 4,052 Transfers from the statement of financial position to note 10: Receivables (Other Debtors) - (4,052) Total - - 11. Voted funds to be surrendered to the Revenue Fund Note 2014/15 2013/14 R’000 R’000 Opening balance 1,057 4,399 Transfer from statement of financial performance 430 1,057 Paid during the year (1,057) (4,399) Closing balance 430 1,057 12. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund Note 2014/15 2013/14 R’000 R’000 Opening balance 1,665 3,305 Transfer from Statement of Financial Performance 2,535 23,970 Own revenue included in appropriation 21,303 - Paid during the year (23,640) (25,610) Closing balance 1,863 1,665

13. Bank Overdraft Note 2014/15 2013/14 R’000 R’000 Consolidated Paymaster General Account (14,957) (17,462) Total (14,957) (17,462) 14. Payables – current Note 2014/15 2013/14 R’000 R’000

Amounts owing to other entities Clearing accounts 14.1 52 375 Other payables 14.2 1,914 157 Total 1,966 532

163

DPWRT Annual Report 2014-15.indb 163 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 14.1 Clearing accounts Note 2014/15 2013/14 14 R’000 R’000 Sal: Income Tax: CL 43 350 Sal: ACB Recall: CA 9 16 Sal: Pension Fund - 9 Total 52 375 14.2 Other payables Note 2014/15 2013/14 14 R’000 R’000 Wesbank Refunds 76 157 Development of Artisan Programme 551 - Other payables 1,287 - Total 1,914 157 15. Net cash flow available from operating activities Note 2014/15 2013/14 R’000 R’000 Net surplus/(deficit) as per Statement of Financial Performance 2,965 25,027 Add back non cash/cash movements not deemed operating activities 1,342,553 1,241,349 (Increase)/decrease in receivables – current 2,271 1,051 (Increase)/decrease in other current assets - 2,214 Increase/(decrease) in payables – current 1,434 134 Proceeds from sale of capital assets (1,316) (3,283) Expenditure on capital assets 1,343,558 1,271,242 Surrenders to Revenue Fund (24,697) (30,009) Own revenue included in appropriation 21,303 - Net cash flow generated by operating activities 1,345,518 1,266,376 16. Reconciliation of cash and cash equivalents for cash flow purposes Note 2014/15 2013/14 R’000 R’000 Consolidated Paymaster General account (14,957) (17,462) Total (14,957) (17,462) 17. Contingent liabilities and contingent assets 17.1 Contingent liabilities Note 2014/15 2013/14 R’000 R’000 Liable to Nature Housing loan guarantees Employees Annex - 3,251 2A Claims against the department Annex 233,495 295,574 2B Total 233,495 298,825

164

DPWRT Annual Report 2014-15.indb 164 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 18. Commitments Note 2014/15 2013/14 R’000 R’000 Current expenditure Approved and contracted 533,567 914,465

Capital expenditure Approved and contracted 3,126,511 3,442,241

Total Commitments 3,660,078 4,356,706

Current Expenditure: Scholar Transport- (Not later than a year- R359,960 million) (Later than a year but not later than 5 years – R94,537 million) Riverside Government Complex Maintenance- (Not later than a year: R46,891 million) (Later than a year but not later than 5 years: R30,685 million) Capital Expenditure: Infrastructure projects for Department of Public Works, Roads and Transport amounting to R1,984,959 billion Infrastructure projects for Department of Education amounting to R341,593 million Infrastructure projects for Department of Social Development amounting to R313,128 million Infrastructure projects for Department of Community Safety, Security and Liaison amounting to R296,937 million Infrastructure projects for Department of Health amounting to R181,810 million Infrastructure projects for Department of Culture, Sports and Recreation amounting to R8,084 million

165

DPWRT Annual Report 2014-15.indb 165 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 19. Accruals and payables not recognised 2014/15 2013/14 R’000 R’000 Listed by economic classification 30 Days 30+ Days Total Total Other 391 17 408 721 Goods and services 96,605 13,333 109,938 17,744 Transfers and subsidies 2,708 17,623 20,331 - Capital assets 76,289 26,932 103,221 113 Total 175,993 57,905 233,898 18,578

Note 2014/15 2013/14 R’000 R’000 Listed by programme level Administration 12,364 8,723 Public Works Infrastructure 40,721 1,468 Transport Infrastructure 107,552 7,766 Transport Operations 70,277 336 Community Based Programmes 2,984 285 Total 233,898 18,578

Note 2014/15 2013/14 R’000 R’000 Confirmed balances with other departments Annex 4 1,659 604 Total 1,659 604 20 Employee benefits Note 2014/15 2013/14

R’000 R’000 Leave entitlement 48,679 46,838 Service bonus (Thirteenth cheque) 24,620 23,438 Performance awards 17,557 12,622 Capped leave commitments 80,838 80,740 Other 2,635 - Total 174,329 163,638

1. Leave entitlement disclosed is inclusive of the negative leave credits amounting to R0,494 million. 2. Capped leave commitments disclosed are inclusive of the negative capped leave credits amounting to R0,299 million. 3. Performance awards amount disclosed is expenditure of R17,557 for the 2014/2015 financial year. 4. The Other disclosed is for long service awards commitment of 20, 30 and 40 years of service respectively for 2015/16 financial year.

166

DPWRT Annual Report 2014-15.indb 166 2015/08/18 12:46:12 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 21. Lease commitments 21.1 Operating leases expenditure Buildings and other Machinery fixed and 2014/15 structures equipment Total Not later than 1 year 100,303 1,018 101,321 Later than 1 year and not later than 5 years 187,076 945 188,021 Later than five years - - - Total lease commitments 287,379 1,963 289,342

Buildings and other Machinery fixed and 2013/14 structures equipment Total Not later than 1 year 85,702 1,029 86,731 Later than 1 year and not later than 5 years 186,393 961 187,354 Later than five years - - - Total lease commitments 272,095 1,990 274,085 21.2 Finance leases expenditure

Machinery and 2014/15 equipment Total Not later than 1 year 47,002 47,002 Later than 1 year and not later than 5 years 14,332 14,332 Later than five years - - Total lease commitments 61,334 61,334

Machinery and 2013/14 equipment Total Not later than 1 year 41,312 41,312 Later than 1 year and not later than 5 years 113,313 113,313 Later than five years - - Total lease commitments 154,625 154,625 22 Irregular expenditure

22.1 Reconciliation of irregular expenditure Note 2014/15 2013/14 22 R’000 R’000 Opening balance 443,728 442,337 Add: Irregular expenditure – relating to prior year - 1,165 Add: Irregular expenditure – relating to current 4,665 226 year Closing balance 448,393 443,728

Analysis of awaiting condonation per age classification Current year 4,665 226 Prior years 443,728 442,337 Total 448,393 442,563

167

DPWRT Annual Report 2014-15.indb 167 2015/08/18 12:46:13 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 22.2 Details of irregular expenditure - current year

Incident Disciplinary steps taken/ 2014/15 criminal proceedings R’000 Value of contract exceeded limit without None 2,391 authorisation Non-declaration of interest None 1,898 Non-submission of tax clearance None 115 certificate Expired tax clearance certificate None 261 submitted Total 4,665 23. Fruitless and wasteful expenditure 23.1 Reconciliation of fruitless and wasteful expenditure Note 2014/15 2013/14 23 R’000 R’000 Opening balance 5,568 5,447 Fruitless and wasteful expenditure – relating to - 121 current year Fruitless and wasteful expenditure awaiting 5,568 5,568 resolution

23.2 Analysis of awaiting resolution per economic classification Note 2014/15 2013/14 23 R’000 R’000 Current 5,568 5,568 Total 5,568 5,568 24. Related party transactions During the financial year under review, the department provided free accommodation to the following departments. 1. Vote 1: Office of the Premier 2. Vote 2: Provincial Legislature 3. Vote 3: Finance 4. Vote 4: Co-operative Governance and Traditional Affairs 5. Vote 5: Agriculture, Rural Development and Land Administration 6. Vote 6: Economic Development, Environment and Tourism. 7. Vote 7: Education 8. Vote 9: Safety, Security and Liaison 9. Vote 10: Health 10. Vote 11:Culture, Sports and Recreation 11. Vote 12: Social Development 12. Vote 13: Human Settlement

168

DPWRT Annual Report 2014-15.indb 168 2015/08/18 12:46:13 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 25. Key management personnel No. of 2014/15 2013/14 Individuals R’000 R’000 Political office bearers (MEC) 2 1,813 1,735 Officials: Level 15 to 16 5 4,491 5,029 Level 14 (incl. CFO if at a lower level) 9 6,285 6,405 Total 12,589 13,169 26. Public Private Partnership 2014/15 2013/14 R’000 R’000 Contract fee received - - Palabora Mining Company Limited - -

The department entered into the Public Private Partnership with the Palabora Mining Company Limited, the latter is responsible for all project costs. During the 2014/2015 financial year, the latter procured goods and services for the project. The department co-operated and assisted in providing relevant information as well as documentation for the implementation of the project.

27. Movable Tangible Capital Assets MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015

Opening Additions Disposals Closing balance Balance R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 329,155 14,442 (2,906) 340,691 Transport assets 133,505 5,981 (1,289) 138,197 Computer equipment 22,074 3,306 (965) 24,415 Furniture and office 18,874 2,806 (16) 21,664 equipment Other machinery and 154,702 2,349 (636) 156,415 equipment

SPECIALISED MILITARY ASSETS 4,540 - (106) 4,434 Specialised military assets 4,540 - (106) 4,434

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 333,695 14,442 (3,012) 345,125

169

DPWRT Annual Report 2014-15.indb 169 2015/08/18 12:46:13 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 27.1 Additions ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Cash Non-cash (Capital Received Total Work in current, not Progress paid current (Paid costs and current finance year, lease received payments) prior year) R’000 R’000 R’000 R’000 R’000

MACHINERY AND 60,216 (46,680) 906 14,442 EQUIPMENT Transport assets 51,755 - (46,680) 906 5,981 Computer equipment 3,306 - - - 3,306 Furniture and office 2,806 - - - 2,806 equipment Other machinery and 2,349 - - - 2,349 equipment

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL 60,216 - (46,680) 906 14,442 ASSETS 27.2 Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Sold for Transfer Total Cash cash out or disposals Received destroyed Actual or scrapped R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT (2,906) - (2,906) 1,316 Transport assets (1,289) - (1,289) 290 Computer equipment (965) - (965) 2 Furniture and office (16) - (16) 2 equipment Other machinery and (636) - (636) 1,022 equipment

SPECIALISED MILITARY ASSETS - (106) (106) - Specialised military assets - (106) (106) -

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL (2,906) (106) (3,012) 1,316 ASSETS

170

DPWRT Annual Report 2014-15.indb 170 2015/08/18 12:46:13 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 27.3 Movement for 2013/14 MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 285,974 137 51,368 (8,234) 329,155 Transport assets 129,157 - 8,094 (3,746) 133,505 Computer equipment 22,734 (23) 1,728 (2,365) 22,074 Furniture and office 17,659 58 1,474 (317) 18,874 equipment Other machinery and 116,424 102 40,072 (1,896) 154,702 equipment

SPECIALISED MILITARY ASSETS 4,540 - - - 4,540 Specialised military assets 4,540 - - - 4,540

BIOLOGICAL ASSETS 330 - - (330) - Biological assets 330 - - (330) -

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 290,844 137 51,368 (8,654) 333,695 27.3.1 Prior period error Note 2013/14 27.3 R’000 Nature of prior period error Relating to 2013/14 Computer Equipment (23) Furniture and Office Equipment 58 Other Machinery and Equipment 102 Total 137 27.4 Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2015 Machinery Total and equipment R’000 R’000

Opening balance 32,578 32,578 Additions 7,079 7,079 Disposals (6,649) (6,649) TOTAL MINOR ASSETS 33,008 33,008

Machinery Total and equipment Number of R1 minor assets 8,501 8,501 Number of minor assets at 33,799 33,799 cost TOTAL NUMBER OF MINOR ASSETS 42,300 42,300

171

DPWRT Annual Report 2014-15.indb 171 2015/08/18 12:46:13 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2014

Machinery and Total equipment R’000 R’000 33,043 33,043

Opening balance - - Prior period error 508 508 Additions Disposals (973) (973) TOTAL MINOR ASSETS 32,578 32,578 Machinery Total and equipment Number of R1 minor assets 8,360 8,360 Number of minor assets at cost 27,643 27,643 TOTAL NUMBER OF MINOR ASSETS 36,003 36,003 28. Immovable Tangible Capital Assets MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Opening Additions Disposals Closing balance Balance R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 46,007,914 1,193,952 - 47,201,866 Dwellings 12,121 78 - 12,199 Non-residential buildings 1,233,596 107,933 - 1,341,529 Other fixed structures 44,762,197 1,085,941 - 45,848,138

LAND AND SUBSOIL ASSETS 12,901 - - 12,901 Land 12,901 - - 12,901

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 46,020,815 1,193,952 - 47,214,767

172

DPWRT Annual Report 2014-15.indb 172 2015/08/18 12:46:13 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes of the Annual Financial Statements for the year ended 31 March 2015 28.1 Additions ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015 Cash Non-cash (Capital Received Total Work in current, not Progress paid current (Paid costs and current finance year, lease received payments) prior year) R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES 1,283,342 1,182,712 (1,272,102) - 1,193,952 Dwellings 78 - - - 78 Non-residential buildings 11,162 96,771 - - 107,933 Other fixed structures 1,272,102 1,085,941 (1,272,102) - 1,085,941

HERITAGE ASSETS - - - - - TOTAL ADDITIONS TO IMMOVABLE TANGIBLE 1,283,342 1,182,712 (1,272,102) - 1,193,952 CAPITAL ASSETS 28.2 Movement for 2013/14 MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014 Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 44,664,063 - 1,343,851 - 46,007,914 Dwellings 12,108 - 13 - 12,121 Non-residential buildings 935,254 - 298,342 - 1,233,596 Other fixed structures 43,716,701 - 1,045,496 - 44,762,197

LAND AND SUBSOIL ASSETS 1 - 12,900 - 12,901 Land 1 - 12,900 - 12,901

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 44,664,064 - 1,356,751 - 46,020,815

173

DPWRT Annual Report 2014-15.indb 173 2015/08/18 12:46:13 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes to the Annual Financial Statements for the year ended 31 March 2015 28.3 Immovable assets valued at R1 IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2015 Buildings Land and Total and other subsoil as- fixed struc- sets tures

R1 Immovable assets 13,506 686 14,192 TOTAL 13,506 686 14,192

IMMOVABLE ASSETS VALUED AT R1 IN THE ASSET REGISTER AS AT 31 MARCH 2014 Buildings Land and Total and other subsoil fixed assets structures

R1 Immovable assets 13,645 492 14,137 TOTAL 13,645 492 14,137 28.4 Immovable assets additional information 2014/15 2013/14 Note

a) Properties deemed vested Annexure 8 Number Number Land parcels Facilities Schools 14 31 Clinics 6 6 Hospitals 2 4 Office buildings 6 7 Dwellings 39 78 Storage facilities 3 2 Other 31 51

b) Facilities on unsurveyed land Duration of Annexure 8 Number Number use Schools 675 1,074 Clinics 106 159 Hospitals 6 7 Office buildings 70 84 Dwellings 102 347 Storage facilities 3 3 Other 8 137

c) Facilities on right to use land Duration of Annexure 8 Number Number use Schools 407 560 Clinics 18 24 Hospitals 3 4 Office buildings 7 21 Dwellings 48 49 Storage facilities - 1 Other 6 8

174

DPWRT Annual Report 2014-15.indb 174 2015/08/18 12:46:13 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Notes to the Annual Financial Statements for the year ended 31 March 2015 29 Prior period error 29.1 Correction of prior period errors Assets: 2013/14 R’000 Receivables Receivables Current (17,957) Receivables Non- Current 17,957 Net effect -

Movable tangible capital assets Computer Equipment (23) Computer and Office Equipment 58 Other Machinery and Equipment 102 Net effect 137

175

DPWRT Annual Report 2014-15.indb 175 2015/08/18 12:46:13 PM Annual Report - R’000 20,691 462,919 Amount 1,489,364 spent by 1,972,974 department

- of 2013/14 Act R’000 20,691 462,926 Division Revenue 1,489,393 1,973,010

% % of 100% 100% 100% 100% funds 99.9% spent by available department 1 1 3 331 336 R’000 (Over - Under / SPENT spending) R’000 35,749 12,795 491,087 Amount 1,594,839 spent by 2,134,470 department by R’000 35,750 12,798 491,418 Amount received 1,594,840 2,134,806 department

Total R’000 35,750 12,798 491,418 1,594,840 2,134,806 Available Mpumalanga Province - - - - R’000 for the year ended 31 March 2015 35,750 35,750 justments Other Ad Notes to the Annual Financial Statements

- - - - - Department of Public Works, Roads and Transport R’000 DORA Adjustments

- - - - - GRANT ALLOCATION Roll R’000 Overs

- - cial R’000 12,798 Grants 491,418 Revenue 1,594,840 2,099,056 Division of Act/ Provin - STATEMENT OF CONDITIONAL GRANTS RECEIVED

NAME OF GRANT Total Provincial Roads Mainte - nance Grant Public Trans - port Opera tions Grant Social Sec - tor EPWP Grant for Provinces Provincial Disaster Grant 1.

176

DPWRT Annual Report 2014-15.indb 176 2015/08/18 12:46:13 PM Annual Report

of 372 986 Act 1,165 7,692 2,208 1,867 5,872 6,180 5,843 7,141 1,758 1,343 R’000 12,065 10,087 14,984 Division Revenue 2013/14

% % of 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% funds spent by available municipality

757 3,929 2,049 1,120 3,239 9,408 8,859 3,796 9,738 8,630 9,674 3,704 6,965 1,381 2,154 R’000 Amount spent by SPENT municipality by 757 3,929 2,049 1,120 3,239 9,408 8,859 3,796 9,738 8,630 9,674 3,704 6,965 1,381 2,154 R’000 Amount received municipality ------% Re-allo - National National cations by Treasury or Department ------held R’000 TRANSFER Funds With -

757 6,965 3,929 2,049 1,120 3,239 9,408 8,859 3,796 9,738 8,630 9,674 3,704 1,381 2,154 R’000 Actual Transfer Mpumalanga Province

757 Total 6,965 3,929 2,049 1,120 3,239 9,408 8,859 3,796 9,738 8,630 9,674 3,704 1,381 2,154 for the year ended 31 March 2015 Available

Department of Public Works, Roads and Transport (3) (1) 324 401 674 (53) (58) (296) (297) (491) (408) (934) 1,014 4,350 5,534 R’000 Adjustments

------Roll R’000 Overs GRANT ALLOCATION Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements

of 760 980 Act 7,261 2,102 1,417 2,915 2,915 5,058 8,688 4,638 3,325 3.797 1,480 R’000 10,229 10,082 Division Revenue - - Nkomazi Mkhondo Dipaliseng Umjindi Pixley Ka- Seme Lekwa Emalahleni NAME OF MUNICIPAL ITY Tsh - Steve wete Albert Lu - Albert thuli Govan Mbeki Emakhazeni Msukalikwa Thembisile Thembisile Hani Dr JS Mo roka Victor Kh - Victor anye ANNEXURE 1A STATEMENT OF UNCONDITIONAL GRANTS PAID TO MUNICIPALITIES

177

DPWRT Annual Report 2014-15.indb 177 2015/08/18 12:46:13 PM Annual Report

of Act 4,855 R’000 32,388 22,800 140,106 Division Revenue 2013/14

% % of 100% 100% 100% 100% funds spent by available municipality

5,819 5,466 R’000 24,443 111,131 Amount spent by SPENT municipality by 5,819 5,466 R’000 24,443 111,131 Amount received municipality - - - - % Re-allo - National National cations by Treasury or Department - - - - held R’000 TRANSFER Funds With -

5,819 5,466 R’000 24,443 Actual 111,131 Transfer Mpumalanga Province

Total 5,819 5,466 for the year ended 31 March 2015 24,443 111,131 Available

Department of Public Works, Roads and Transport (34) (287) R’000 (7,067) (16,502) Adjustments

- - - - Roll R’000 Overs GRANT ALLOCATION Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements

of Act 5,500 R’000 24,730 22,321 118,918 Division Revenue - - NAME OF MUNICIPAL ITY Mbombela Total Thaba Thaba Chweu Bushbuck ridge ANNEXURE 1A (Continues) STATEMENT OF UNCONDITIONAL GRANTS PAID TO MUNICIPALITIES

178

DPWRT Annual Report 2014-15.indb 178 2015/08/18 12:46:14 PM Annual Report R’000 469,961 469,961 tion Act 2013/14 Appro-pria -

R’000 Current 514,095 514,095

- - R’000 Capital % % of funds 99.9% EXPENDITURE 99.9% Available Transferred

R’000 Actual 514,095 514,095 Transfer

Total R’000 514,519 514,519 Available

101 101 R’000 Mpumalanga Province Adjustments for the year ended 31 March 2015 - - Roll R’000 Overs Department of Public Works, Roads and Transport TRANSFER ALLOCATION R’000 514,418 514,418 tion Act Adjusted Appropria - Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements -

Subsidies Private Enterprises Total NAME OF PUBLIC CORPORATION/PRIVATE EN TERPRISE ANNEXURE 1B STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

179

DPWRT Annual Report 2014-15.indb 179 2015/08/18 12:46:14 PM Annual Report 266 Act tion 7,491 3,865 R’000 11,622 2013/14 Appro-pria - % 97% 98% % of 103% 100% funds Available Transferred

446 7,873 9,430 R’000 EXPENDITURE 17,749 Actual Transfer

457 Total 8,112 9,180 R’000 17,749 Available

12 7,334 5,965 R’000 (1,381) Adjust-ments

- - - - Roll R’000 Overs TRANSFER ALLOCATION 778 Act tion 1,838 9,168 R’000 11,784 Mpumalanga Province Adjusted Appropria - for the year ended 31 March 2015 Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Employee Social Benefit: Leave Gratuity Transfers Employee Social Benefit: Injury on duty Claims against the state (Cash) Total HOUSEHOLDS ANNEXURE 1C STATEMENT OF TRANSFERS TO HOUSEHOLDS

180

DPWRT Annual Report 2014-15.indb 180 2015/08/18 12:46:14 PM Annual Report 2 1 5 6 4 7 2 5 3 5 4 3 5 4 5 5 5 85 24 14 10 102 102 408 R’000 2013/14 ------R’000 2014/15 Mpumalanga Province for the year ended 31 March 2015 Department of Public Works, Roads and Transport NATURE OF GIFT, DONATION OR SPONSORSHIP Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Mandela Day Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements NAME OF ORGANISATION Received in kind Bitiquip Madonsela Construction Atile Investment Big Rock Construction City Marking MM Coal Takitsi Buicalwesi Electrical Ukubila Happy Sound Copano Mordecai Sepatake Travel Belrock Samollo Shirdo Muhawini and Isihlabane Ramotila Coal Finish Line Isihlabathi Your Trade Les Properties Mozmas Total ANNEXURE 1D STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED

181

DPWRT Annual Report 2014-15.indb 181 2015/08/18 12:46:14 PM Annual Report 30 30 30 30 30 30 30 30 30 30 30 330 R’000 2013/14 ------R’000 2014/15 Mpumalanga Province for the year ended 31 March 2015 Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements NATURE OF GIFT, DONATION OR SPONSORSHIP (Group major categories but list material items including name of organisation Made in kind Phantom Athena Karel Jester Bloeisel Impi Nikita Jarich Kallie Prince Khalipha TOTAL ANNEXURE 1E STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE

182

DPWRT Annual Report 2014-15.indb 182 2015/08/18 12:46:14 PM Annual Report ------R’000 paid out Realised losses not i.e. claims recoverable ------R’000 2015 31 March interest for year ended Guaranteed ------R’000 2015 Closing balance 31 March ------R’000 Revaluations (52) (48) (29) (245) (324) (651) (346) (735) (274) (222) R’000 year released reduced/ during the cancelled/ Guarantees repayments/ ------R’000 year during the Guarantees draw downs ------Mpumalanga Province

R’000 for the year ended 31 March 2015 balance Opening 1 April 20YY

Department of Public Works, Roads and Transport 52 48 29

245 324 651 346 735 274 222 R’000 capital amount Original guaranteed Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Housing Housing Housing Housing Housing Housing Housing Housing Housing Housing Guarantee in respect of Firstrand Bank Limited (FNB FORME) Peoples Bank Limited(Forma FBC) Old Mutual Finance Limited Company Unique Finance Pty Ltd ABSA Firstrand Bank Nedbank Limited Standard Bank of S.A. Limited VBS Mutual Bank Old Mutual Bank Div of Nedbank Guarantor institution ANNEXURE 2A STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2015 – LOCAL

183

DPWRT Annual Report 2014-15.indb 183 2015/08/18 12:46:14 PM Annual Report - - - R’000 paid out Realised losses not i.e. claims recoverable - - - R’000 2015 31 March interest for year ended Guaranteed - - - R’000 2015 Closing balance 31 March - - - R’000 Revaluations (112) (213) R’000 (3,251) year released reduced/ during the cancelled/ Guarantees repayments/ - - - R’000 year during the Guarantees draw downs - - - Mpumalanga Province

R’000 for the year ended 31 March 2015 balance Opening 1 April 20YY

Department of Public Works, Roads and Transport

112 213 3,251 R’000 capital amount Original guaranteed Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Housing Housing Guarantee in respect of Total Northern Province Development Co Mpumalanga Housing Finance Guarantor institution ANNEXURE 2A (Continues) STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2015 – LOCAL

184

DPWRT Annual Report 2014-15.indb 184 2015/08/18 12:46:14 PM Annual Report

233,495 233,495

R’000 Closing Balance 31 March 2015 - -

R’000 details (Provide Liabilities hereunder) recoverable

(107,932) (107,932)

year R’000 reduced during the cancelled/ Liabilities paid/ Liabilities

45,853 45,853 year R’000 incurred Liabilities during the

295,574 295,574

R’000 Balance Opening 1 April 2014 Mpumalanga Province for the year ended 31 March 2015 Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Nature of Liability Total Claims against the department ANNEXURE 2B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2015

185

DPWRT Annual Report 2014-15.indb 185 2015/08/18 12:46:14 PM Annual Report - - 6 60 85 40 353 375 581 1,956 3,275 1,523 1,079 9,390 R’000 31/03/2014 - 8 Total 42 418 380 196 230 589 118 379 175 2,054 1,508 6,077 R’000 31/03/2015 - - 6 60 85 40 353 375 581 3,275 1,956 1,079 1,523 9,390 R’000 31/03/2014 ------380 196 230 118 2,054 1,508 4,486 outstanding R’000 Unconfirmed balance 31/03/2015 Mpumalanga Province ------for the year ended 31 March 2015 R’000 31/03/2014 Department of Public Works, Roads and Transport ------8 22 418 589 175 379 1,591 outstanding Confirmed balance R’000 31/03/2015 Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Total Finance Social Development Culture, Sports and Recreation National Department of Transport Health Office of the Premier Provincial Legislature Education Human Settlement Co-Operative Governance and Traditional Affairs Safety and Security Economic Development Government Entity Departmen t Agriculture and Land Administration ANNEXURE 3 CLAIMS RECOVERABLE

186

DPWRT Annual Report 2014-15.indb 186 2015/08/18 12:46:14 PM Annual Report - - 604 604 R’000 31/03/2014 TOTAL 484 128 1,175 1,787 R’000 31/03/2015 - - - - R’000 31/03/2014 - - 128 128 outstanding R’000 Unconfirmed balance 31/03/2015 Mpumalanga Province - - 604 604 for the year ended 31 March 2015 R’000 31/03/2014 Department of Public Works, Roads and Transport - 484 1,175 1,659 outstanding Confirmed balance R’000 31/03/2015 Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Total

DEPARTMENTS Current Justice and Constitutional Development Department of Community Safety, Security and Liaison GOVERNMENT ENTITY Government Printing Works ANNEXURE 4 INTER-GOVERNMENT PAYABLES

187

DPWRT Annual Report 2014-15.indb 187 2015/08/18 12:46:14 PM Annual Report - 217 (115) 9,458 5,937 (1,717) 201,443 (203,349) R’000 2013/14 - 60 1,945 60,856 102,665 (15,561) 1,240,864 (1,269,117) Quantity - - (4) (410) 5,937 5,130 212,663 (213,056) R’000 2014/15 - - 60,856 48,681 (3,047) (1,613) 1,337,629 (1,345,144) Quantity Note Mpumalanga Province for the year ended 31 March 2015 Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Add/(Less): Adjustments to prior year balance Opening balance Inventory Add: Additions/Purchases - Cash Add/(Less): Adjustments Add: Additions - Non-cash (Less): Disposals (Less): Issues Closing balance ANNEXURE 5 INVENTORIES

188

DPWRT Annual Report 2014-15.indb 188 2015/08/18 12:46:14 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements for the year ended 31 March 2015 ANNEXURE 6 MOVEMENT IN CAPITAL WORK IN PROGRESS MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2015 Opening Current Completed Closing balance Year Assets balance Capital WIP R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 41,741 46,680 - 88,421 Transport assets 41,741 46,680 - 88,421

BUILDINGS AND OTHER FIXED STRUCTURES 1,404,655 1,272,102 (1,085,941) 1,590,816 Dwellings Non-residential buildings Other fixed structures 1,404,655 1,272,102 (1,085,941) 1,590,816

Total 1,446,396 1,318,782 (1,085,941) 1,679,237

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2014 Opening Prior period Current Completed Closing balance error Year Assets balance Capital WIP R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT - 41,741 - - 41,741 Transport assets - 41,741 - - 41,741

BUILDINGS AND OTHER FIXED STRUCTURES 1,266,215 - 1,183,936 (1,045,496) 1,404,655 Other fixed structures 1,266,215 - 1,183,936 (1,045,496) 1,404,655

Total 1,266,215 41,741 1,183,936 (1,045,496) 1,446,396

189

DPWRT Annual Report 2014-15.indb 189 2015/08/18 12:46:14 PM Annual Report Mpumalanga Province Department of Public Works, Roads and Transport Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements for the year ended 31 March 2015 ANNEXURE 7 IMMOVABLE ASSETS ADDITIONAL DISCLOSURE 2014/15 2013/14 Note

Properties deemed vested 28.4 Number Number Land parcels Facilities Schools 14 31 Clinics 6 6 Hospitals 2 4 Office buildings 6 7 Dwellings 39 78 Storage facilities 3 2 Other 31 51

Facilities on unsurveyed land Duration of 28.4 Number Number use Schools 675 1,074 Clinics 106 159 Hospitals 6 7 Office buildings 70 84 Dwellings 102 347 Storage facilities 3 3 Other 8 137

Facilities on right to use land Duration of 28.4 Number Number use Schools 407 560 Clinics 18 24 Hospitals 3 4 Office buildings 7 21 Dwellings 48 49 Storage facilities - 1 Other 6 8

190

DPWRT Annual Report 2014-15.indb 190 2015/08/18 12:46:14 PM Annual Report 601 Only newly surveyed properties will be vested and those that are discovered during research. Number of land parcels excluded from vesting (acquired post 27 April 1994, Housing Board, Model C ) Item 28(1) remaining at year end

45 596 608 Mpumalanga Province Item 28(1) Still To Request Item 28(1) awaited at end of year Item 28(1) to be requested during the year 15 for the year ended 31 March 2015 234 1,529 Department of Public Works, Roads and Transport Item 28(1) Issued Issued during the year Transfers out during the year 48 1,843 none Item 28(1) Requested

New request during the year Transfers in during the year 12 88 Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements 2,451 Item 28(1) Certificates Number of land parcels that must be vested excluding un-surveyed land Item 28(1) Awaited at the Beginning of Year Item 28(1) Certificates Item 28(1) to be requested at beginning of Year ANNEXURE 7 (Continues) IMMOVABLE ASSETS ADDITIONAL DISCLOSURE Vesting Information

191

DPWRT Annual Report 2014-15.indb 191 2015/08/18 12:46:14 PM Annual Report Estimated date for submission registration Mpumalanga Province for the year ended 31 March 2015 Department of Public Works, Roads and Transport Date submitted for registration The Department tried to vest the newly surveyed but unregistered assets application was rejected. There is still confusion whether such assets should be vested or transfer directly to MPG by RDLR. Engagements with Department of Rural Development and Land Reform in this regard are ongoing. Diagram reference

Annexures (Unaudited Supplementary Schedules) to the Annual Financial Statements Date surveyed

SURVEYED BUT UNREGISTERED LAND PARCELS Description of property (Including Extent) ANNEXURE 7 (Continues) IMMOVABLE ASSETS ADDITIONAL DISCLOSURE Surveyed but not registered State Land

192

DPWRT Annual Report 2014-15.indb 192 2015/08/18 12:46:14 PM Annual Report Notes: ______

193

DPWRT Annual Report 2014-15.indb 193 2015/08/18 12:46:14 PM Annual Report Notes: ______

194

DPWRT Annual Report 2014-15.indb 194 2015/08/18 12:46:14 PM